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
{/(
offending/VBG
}/)
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
./.
(/(
During/IN
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
)/)
,/,
has/VBZ
sold/VBN
more/JJR
than/IN
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
)/)
by/IN
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
)/)
of/IN
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
(/(
though/IN
probably/RB
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
(/(
called/VBN
Marie/NNP
Latour/NNP
in/IN
the/DT
film/NN
)/)
was/VBD
not/RB
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
issues/NNS
,/,
is/VBZ
ushering/VBG
in/IN
a/DT
new/JJ
era/NN
of/IN
campaigns/NNS
without/IN
content/NN
./.
``/``
Now/RB
,/,
''/''
says/VBZ
Joseph/NNP
Napolitan/NNP
,/,
a/DT
pioneer/NN
in/IN
political/JJ
television/NN
,/,
``/``
the/DT
idea/NN
is/VBZ
to/TO
attack/VB
first/RB
,/,
last/RB
and/CC
always/RB
./.
''/''
A/DT
trend/NN
that/WDT
started/VBD
with/IN
the/DT
first/JJ
stirrings/NNS
of/IN
politics/NNS
,/,
accelerated/VBD
with/IN
the/DT
dawn/NN
of/IN
the/DT
television/NN
age/NN
and/CC
became/VBD
a/DT
sometimes-tawdry/JJ
art/NN
form/NN
in/IN
1988/CD
,/,
has/VBZ
reached/VBN
an/DT
entirely/RB
new/JJ
stage/NN
./.
``/``
To/TO
get/VB
people/NNS
's/POS
attention/NN
these/DT
days/NNS
,/,
''/''
says/VBZ
Douglas/NNP
Bailey/NNP
,/,
a/DT
political/JJ
consultant/NN
,/,
``/``
your/PRP$
TV/NN
ad/NN
needs/VBZ
to/TO
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
principal/JJ
fights/NNS
in/IN
the/DT
major/JJ
campaigns/NNS
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
with/IN
a/DT
small/JJ
,/,
tight/JJ
facial/JJ
shot/NN
of/IN
David/NNP
Dinkins/NNP
,/,
Democratic/JJ
candidate/NN
for/IN
mayor/NN
of/IN
New/NNP
York/NNP
City/NNP
./.
``/``
David/NNP
Dinkins/NNP
failed/VBD
to/TO
file/VB
his/PRP$
income/NN
taxes/NNS
for/IN
four/CD
straight/JJ
years/NNS
,/,
''/''
says/VBZ
a/DT
disembodied/JJ
male/NN
voice/NN
./.
And/CC
then/RB
this/DT
television/NN
commercial/NN
,/,
paid/VBN
for/RB
by/IN
Republican/NNP
Rudolph/NNP
Giuliani/NNP
's/POS
campaign/NN
and/CC
produced/VBN
by/IN
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$
campaign/NN
contributions/NNS
accurately/RB
,/,
hid/VBD
his/PRP$
links/NNS
to/TO
a/DT
failing/VBG
insurance/NN
company/NN
and/CC
paid/VBD
a/DT
convicted/VBN
kidnapper/NN
``/``
through/IN
a/DT
phony/JJ
organization/NN
with/IN
no/DT
members/NNS
,/,
no/DT
receipts/NNS
and/CC
no/DT
office/NN
./.
''/''
``/``
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
's/POS
issues/NNS
director/NN
,/,
``/``
designed/VBN
to/TO
prosecute/VB
a/DT
case/NN
of/IN
political/JJ
corruption/NN
that/WDT
simply/RB
does/VBZ
n't/RB
exist/VB
./.
''/''
Stung/VBN
by/IN
the/DT
Giuliani/NNP
ads/NNS
,/,
Mr./NNP
Dinkins/NNP
's/POS
TV/NN
consultants/NNS
,/,
Robert/NNP
Shrum/NNP
and/CC
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
two/CD
candidates/NNS
for/IN
mayor/NN
,/,
''/''
says/VBZ
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
he/PRP
's/VBZ
pro-choice/JJ
./.
The/DT
other/JJ
has/VBZ
opposed/VBN
a/DT
woman/NN
's/POS
right/NN
to/TO
choose/VB
./.
''/''
``/``
Funny/JJ
thing/NN
,/,
''/''
says/VBZ
the/DT
kicker/NN
,/,
``/``
both/DT
these/DT
candidates/NNS
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
's/VBZ
a/DT
classic/JJ
situation/NN
of/IN
ads/NNS
that/WDT
are/VBP
true/JJ
but/CC
not/RB
always/RB
fully/RB
accurate/JJ
./.
Mr./NNP
Dinkins/NNP
did/VBD
fail/VB
to/TO
file/VB
his/PRP$
income/NN
taxes/NNS
for/IN
four/CD
years/NNS
,/,
but/CC
he/PRP
insists/VBZ
he/PRP
voluntarily/RB
admitted/VBD
the/DT
``/``
oversight/NN
''/''
when/WRB
he/PRP
was/VBD
being/VBG
considered/VBN
for/IN
a/DT
city/NN
job/NN
./.
He/PRP
was/VBD
on/IN
the/DT
board/NN
of/IN
an/DT
insurance/NN
company/NN
with/IN
financial/JJ
problems/NNS
,/,
but/CC
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
in/IN
matching/JJ
funds/NNS
because/IN
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$
campaign/NN
paid/VBD
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
have/VB
members/NNS
./.
Mr./NNP
Giuliani/NNP
's/POS
campaign/NN
chairman/NN
,/,
Peter/NNP
Powers/NNP
,/,
says/VBZ
the/DT
Dinkins/NNP
ad/NN
is/VBZ
``/``
deceptive/JJ
./.
''/''
The/DT
other/JJ
side/NN
,/,
he/PRP
argues/VBZ
,/,
``/``
knows/VBZ
Giuliani/NNP
has/VBZ
always/RB
been/VBN
pro-choice/JJ
,/,
even/RB
though/IN
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$
gubernatorial/JJ
battle/NN
with/IN
Republican/JJ
Marshall/NNP
Coleman/NNP
with/IN
an/DT
abortion/NN
commercial/NN
produced/VBN
by/IN
Frank/NNP
Greer/NNP
that/IN
analysts/NNS
of/IN
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
on/IN
an/DT
American/JJ
flag/NN
,/,
an/DT
announcer/NN
talks/VBZ
about/IN
the/DT
``/``
strong/JJ
tradition/NN
of/IN
freedom/NN
and/CC
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
of/IN
Thomas/NNP
Jefferson/NNP
dissolves/VBZ
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
wants/VBZ
to/TO
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
--/:
which/WDT
said/VBD
Mr./NNP
Coleman/NNP
wanted/VBD
to/TO
take/VB
away/RB
the/DT
right/NN
of/IN
abortion/NN
``/``
even/RB
in/IN
cases/NNS
of/IN
rape/NN
and/CC
incest/NN
,/,
''/''
a/DT
charge/NN
Mr./NNP
Coleman/NNP
denies/VBZ
--/:
changed/VBD
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
and/CC
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
unpleasant/JJ
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
(/(
although/IN
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
}/)
into/IN
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
)/)
,/,
but/CC
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
}/)
is/VBZ
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
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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
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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
./.
)/)
praised/VBD
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
(/(
or/CC
so/RB
perceived/VBN
,/,
at/IN
any/DT
rate/NN
)/)
,/,
and/CC
with/IN
exceedingly/RB
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
)/)
,/,
rarefied/VBN
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
(/(
except/IN
for/IN
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
(/(
released/VBN
only/RB
in/IN
its/PRP$
10th/JJ
year/NN
)/)
is/VBZ
$/$
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
)/)
and/CC
comes/VBZ
from/IN
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
)/)
no/RB
,/,
the/DT
wine/NN
is/VBZ
too/RB
high/JJ
(/(
2/CD
responses/NNS
)/)
;/:
2/LS
)/)
yes/RB
,/,
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
}/)
or/CC
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
(/(
like/IN
Grgich/NNP
Hills/NNP
Chardonnay/NNP
,/,
now/RB
$/$
32/CD
)/)
just/RB
to/TO
slow/VB
down/RP
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
(/(
except/IN
Petrus/NNP
)/)
,/,
as/RB
well/RB
as/IN
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
)/)
in/IN
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
{/(
in/IN
the/DT
U.S/NNP
./.
}/)
to/TO
be/VB
more/RBR
aware/JJ
of/IN
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
}/)
,/,
as/RB
well/RB
as/IN
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
)/)
,/,
by/IN
not/RB
going/VBG
much/RB
beyond/IN
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
}/)
finds/VBZ
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
)/)
;/:
accept/VB
and/CC
hire/VB
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
}/)
is/VBZ
done/VBN
over/IN
here/RB
than/IN
in/IN
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
)/)
in/IN
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
./.
)/)
said/VBD
during/IN
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
./.
)/)
instead/RB
praised/VBD
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
./.
)/)
began/VBD
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
./.
(/(
See/VB
``/``
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
for/IN
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$
first/JJ
three/CD
weeks/NNS
of/IN
sleep/NN
deprivation/NN
,/,
you/PRP
're/VBP
scarcely/RB
in/IN
touch/NN
with/IN
reality/NN
any/DT
more/RBR
;/:
without/IN
psychiatric/JJ
treatment/NN
,/,
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
increased/VBN
number/NN
of/IN
men/NNS
and/CC
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
:/:
namely/RB
,/,
that/IN
mental/JJ
illness/NN
and/CC
substance/NN
abuse/NN
might/MD
be/VB
to/TO
some/DT
degree/NN
consequences/NNS
rather/RB
than/IN
causes/NNS
of/IN
homelessness/NN
./.
Your/PRP$
research/NN
stopped/VBD
when/WRB
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
for/IN
the/DT
homeless/NN
,/,
you/PRP
chose/VBD
to/TO
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
of/IN
Bricklayers/NNPS
and/CC
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
``/``
know/VBP
a/DT
good/JJ
thing/NN
when/WRB
they/PRP
see/VBP
it/PRP
,/,
''/''
and/CC
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
that/WDT
participated/VBD
in/IN
the/DT
march/NN
?/.
As/IN
for/IN
the/DT
findings/NNS
on/IN
the/DT
203/CD
Baltimore/NNP
homeless/NN
who/WP
underwent/VBD
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
put/VBD
them/PRP
out/IN
on/IN
the/DT
streets/NNS
,/,
to/TO
be/VB
deprived/VBN
for/IN
one/CD
month/NN
of/IN
their/PRP$
homes/NNS
,/,
families/NNS
and/CC
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
satisfactory/JJ
substitute/NN
for/IN
Chivas/NNP
Regal/NNP
and/CC
that/IN
their/PRP$
``/``
normal/JJ
''/''
phobias/NNS
,/,
anxieties/NNS
,/,
depressions/NNS
and/CC
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
dollars/NNS
(/(
US$/$
148.9/CD
million/CD
to/TO
$/$
153.3/CD
million/CD
)/)
through/IN
a/DT
private/JJ
placement/NN
of/IN
perpetual/JJ
preferred/VBN
shares/NNS
./.
Perpetual/JJ
preferred/VBN
shares/NNS
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
and/CC
telecommunications/NNS
concern/NN
said/VBD
the/DT
coupon/NN
rate/NN
has/VBZ
n't/RB
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
to/TO
discuss/VB
other/JJ
terms/NNS
of/IN
the/DT
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./.
The/DT
House/NNP
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designed/VBN
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easier/JJR
for/IN
the/DT
Transportation/NNP
Department/NNP
to/TO
block/VB
airline/NN
leveraged/JJ
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./.
The/DT
final/JJ
vote/NN
came/VBD
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the/DT
House/NNP
rejected/VBD
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weaken/VB
the/DT
bill/NN
and/CC
approved/VBD
two/CD
amendments/NNS
sought/VBN
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organized/VBN
labor/NN
./.
The/DT
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administration/NN
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threatened/VBN
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veto/VB
such/PDT
a/DT
bill/NN
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of/IN
what/WP
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,/,
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300-113/CD
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the/DT
potential/NN
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override/VB
a/DT
veto/NN
./.
The/DT
broader/JJR
question/NN
is/VBZ
where/WRB
the/DT
Senate/NNP
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./.
While/IN
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Commerce/NNP
Committee/NNP
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the/DT
House/NNP
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airline/NN
leveraged/JJ
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,/,
the/DT
measure/NN
has/VBZ
n't/RB
yet/RB
come/VBN
to/TO
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
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aimed/VBN
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giving/VBG
the/DT
Transportation/NNP
Department/NNP
the/DT
chance/NN
to/TO
review/VB
in/IN
advance/NN
transactions/NNS
financed/VBN
by/IN
large/JJ
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of/IN
debt/NN
./.
``/``
The/DT
purpose/NN
of/IN
the/DT
bill/NN
is/VBZ
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put/VB
the/DT
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airline/NN
acquisitions/NNS
that/WDT
would/MD
so/RB
load/VB
a/DT
carrier/NN
up/RP
with/IN
debt/NN
that/IN
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would/MD
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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
./.
)/)
said/VBD
./.
The/DT
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,/,
as/IN
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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
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block/VB
the/DT
buy-out/NN
if/IN
the/DT
acquisition/NN
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a/DT
carrier/NN
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that/IN
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would/MD
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;/:
its/PRP$
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
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;/:
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
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the/DT
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an/DT
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a/DT
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in/IN
the/DT
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of/IN
the/DT
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's/POS
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,/,
or/CC
their/PRP$
wages/NNS
or/CC
benefits/NNS
./.
Rep./NNP
James/NNP
Traficant/NNP
(/(
D./NNP
,/,
Ohio/NNP
)/)
,/,
said/VBD
the/DT
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,/,
which/WDT
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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
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the/DT
provision/NN
,/,
which/WDT
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a/DT
``/``
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''/''
amendment/NN
,/,
was/VBD
likely/JJ
to/TO
make/VB
the/DT
bill/NN
even/RB
more/RBR
controversial/JJ
./.
On/IN
Tuesday/NNP
,/,
the/DT
House/NNP
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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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a/DT
carrier/NN
had/VBD
run/VBN
two/CD
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that/WDT
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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
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,/,
called/VBN
the/DT
``/``
two-time-losers/JJ
''/''
amendment/NN
by/IN
its/PRP$
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apparently/RB
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Texas/NNP
Air/NNP
Corp./NNP
Chairman/NNP
Frank/NNP
Lorenzo/NNP
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attempting/VBG
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take/VB
over/RP
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./.
Follow-up/JJ
report/NN
:/:
You/PRP
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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
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broadcasting/VBG
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those/DT
130/CD
million/CD
people/NNS
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the/DT
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tune/VBP
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it/PRP
each/DT
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./.
You/PRP
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take/VB
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--/:
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,/,
for/IN
the/DT
Voice/NNP
folks/NNS
wo/MD
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look/VB
over/IN
your/PRP$
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--/:
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you/PRP
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./.
You/PRP
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do/VB
all/PDT
this/DT
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a/DT
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or/CC
a/DT
researcher/NN
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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
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./.
Until/IN
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,/,
you/PRP
as/IN
an/DT
ordinary/JJ
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this/DT
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right/NN
to/TO
see/VB
what/WP
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government/NN
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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
people/NNS
./.
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
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to/TO
support/VB
a/DT
viewpoint/NN
,/,
and/CC
the/DT
beauty/NN
of/IN
a/DT
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you/PRP
to/TO
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read/VB
every/DT
viewpoint/NN
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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
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absurd/JJ
:/:
An/DT
agency/NN
in/IN
the/DT
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business/NN
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being/VBG
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inform/VB
./.
In/IN
June/NNP
1988/CD
,/,
I/PRP
wrote/VBD
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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
agency/NN
to/TO
read/VB
but/CC
not/RB
copy/VB
either/DT
manually/RB
or/CC
by/IN
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
or/CC
program/NN
,/,
and/CC
print/VBP
it/PRP
in/IN
my/PRP$
newspaper/NN
?/.
``/``
Nor/CC
are/VBP
you/PRP
free/JJ
to/TO
reprint/VB
such/JJ
material/NN
,/,
''/''
I/PRP
was/VBD
advised/VBN
./.
That/WDT
sounded/VBD
a/DT
lot/NN
like/IN
censorship/NN
,/,
so/RB
after/IN
years/NNS
of/IN
letters/NNS
and/CC
conversations/NNS
that/WDT
went/VBD
nowhere/RB
,/,
I/PRP
sued/VBD
./.
A/DT
couple/NN
of/IN
weeks/NNS
ago/IN
,/,
I/PRP
lost/VBD
the/DT
case/NN
in/IN
federal/JJ
district/NN
court/NN
in/IN
Des/NNP
Moines/NNP
./.
At/IN
least/JJS
,/,
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
to/TO
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
funny/JJ
thing/NN
happened/VBD
on/IN
the/DT
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
key/JJ
points/NNS
./.
--/:
The/DT
USIA/NNP
said/VBD
that/IN
,/,
on/IN
reflection/NN
,/,
of/IN
course/NN
I/PRP
could/MD
print/VB
anything/NN
I/PRP
could/MD
get/VB
my/PRP$
hands/NNS
on/IN
./.
The/DT
word/NN
dissemination/NN
,/,
it/PRP
decided/VBD
,/,
referred/VBD
only/RB
to/TO
itself/PRP
./.
``/``
The/DT
USIA/NNP
officially/RB
and/CC
publicly/RB
declared/VBD
the/DT
absolute/JJ
right/NN
of/IN
everyone/NN
except/IN
the/DT
USIA/NNP
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disseminate/VB
agency/NN
program/NN
materials/NNS
in/IN
the/DT
United/NNP
States/NNPS
,/,
''/''
my/PRP$
lawyer/NN
,/,
the/DT
scholarly/JJ
Mark/NNP
McCormick/NNP
of/IN
Des/NNP
Moines/NNP
,/,
said/VBD
in/IN
a/DT
memo/NN
pointing/VBG
out/IN
the/DT
facts/NNS
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trying/VBG
to/TO
make/VB
me/PRP
feel/VB
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after/IN
the/DT
press/NN
reported/VBD
that/IN
I/PRP
had/VBD
lost/VBN
./.
The/DT
court/NN
noted/VBD
the/DT
new/JJ
USIA/NNP
position/NN
but/CC
,/,
just/RB
in/IN
case/NN
,/,
officially/RB
found/VBN
``/``
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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
could/MD
view/VB
the/DT
VOA/NNP
materials/NNS
,/,
not/RB
just/RB
the/DT
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,/,
scholars/NNS
,/,
researchers/NNS
and/CC
congressmen/NNS
who/WP
are/VBP
mentioned/VBN
in/IN
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
statutory/JJ
designations/NNS
,/,
because/IN
the/DT
USIA/NNP
has/VBZ
determined/VBN
that/IN
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will/MD
not/RB
check/VB
the/DT
credentials/NNS
of/IN
any/DT
person/NN
appearing/VBG
and/CC
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
declared/VBD
in/IN
the/DT
lawsuit/NN
that/IN
persons/NNS
who/WP
examine/VBP
the/DT
materials/NNS
may/MD
make/VB
notes/NNS
and/CC
,/,
while/IN
the/DT
agency/NN
position/NN
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may/MD
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take/VB
verbatim/JJ
notes/NNS
,/,
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
in/IN
effect/NN
that/IN
a/DT
right/NN
to/TO
print/VB
government/NN
information/NN
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
you/PRP
stuff/NN
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
)/)
need/VBP
to/TO
get/VB
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
material/NN
shall/MD
be/VB
available/JJ
to/TO
certain/JJ
of/IN
us/PRP
(/(
but/CC
now/RB
,/,
thanks/NNS
to/TO
the/DT
USIA/NNP
's/POS
new/JJ
position/NN
,/,
all/DT
of/IN
us/PRP
)/)
``/``
for/IN
examination/NN
only/RB
./.
''/''
If/IN
those/DT
words/NNS
were/VBD
n't/RB
there/RB
,/,
the/DT
nice/JJ
people/NNS
at/IN
the/DT
Voice/NNP
would/MD
be/VB
able/JJ
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
not/RB
a/DT
trivial/JJ
issue/NN
./.
``/``
You/PRP
have/VBD
.../:
raised/VBN
important/JJ
questions/NNS
which/WDT
ought/MD
to/TO
be/VB
answered/VBN
:/:
What/WP
does/VBZ
USIA/NNP
say/VB
about/IN
America/NNP
abroad/RB
;/:
how/WRB
do/VBP
we/PRP
say/VB
it/PRP
;/:
and/CC
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
team/NN
,/,
dividing/VBG
responsibilities/NNS
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
)/)
:/:
Posted/VBN
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
)/)
:/:
Posted/VBN
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
(/(
priced/VBN
at/IN
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
(/(
technically/RB
a/DT
limitation/NN
on/IN
legislative/JJ
power/NN
)/)
could/MD
be/VB
read/VBN
as/IN
placing/VBG
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
(/(
assuming/VBG
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
)/)
,/,
lost/VBD
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
(/(
such/JJ
as/IN
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
)/)
in/IN
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
)/)
reduced/VBN
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
)/)
if/IN
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
)/)
,/,
unsuccessfully/RB
opposed/VBD
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
)/)
said/VBD
during/IN
House/NNP
debate/NN
./.
But/CC
Rep./NNP
Don/NNP
Edwards/NNP
(/(
D./NNP
,/,
Calif/NNP
./.
)/)
responded/VBD
that/IN
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
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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
./.
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&/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
)/)
,/,
or/CC
16/CD
pence/NN
a/DT
share/NN
,/,
from/IN
#/#
94.8/CD
million/CD
(/(
$/$
149.9/CD
million/CD
)/)
,/,
or/CC
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
)/)
to/TO
prevent/VB
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
)/)
,/,
or/CC
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
)/)
of/IN
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
)/)
to/TO
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
./.
(/(
Fewer/JJR
said/VBD
conditions/NNS
wo/MD
n't/RB
change/VB
./.
)/)
In/IN
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
)/)
or/CC
deliver/VBP
(/(
for/IN
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
(/(
traded/VBN
on/IN
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
(/(
traded/VBN
on/IN
the/DT
chicago/NNP
Board/NNP
of/IN
Trade/NNP
)/)
;/:
and/CC
the/DT
S&P/NNP
100/CD
options/NNS
(/(
traded/VBN
on/IN
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
)/)
or/CC
sell/VB
(/(
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
./.
(/(
See/VB
related/VBN
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
)/)
will/MD
be/VB
fairly/RB
irrelevant/JJ
for/IN
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
)/)
up/RB
,/,
but/CC
if/IN
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
)/)
from/IN
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
)/)
,/,
at/IN
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
)/)
up/RB
from/IN
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
{/(
and/CC
}/)
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
)/)
and/CC
has/VBZ
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
(/(
now/RB
serving/VBG
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
)/)
are/VBP
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
)/)
,/,
wrote/VBD
in/IN
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
./.
(/(
See/VB
:/:
``/``
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
}/)
by/IN
conforming/VBG
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
(/(
though/IN
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
)/)
borrowing/NN
in/IN
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
)/)
to/TO
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
./.
(/(
See/VB
:/:
``/``
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
./.
)/)
And/CC
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
)/)
:/:
Posted/VBN
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
)/)
:/:
Posted/VBN
yields/NNS
on/IN
30/CD
year/NN
mortgage/NN
commitments/NNS
for/IN
delivery/NN
within/IN
30/CD
days/NNS
(/(
priced/VBN
at/IN
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
)/)
will/MD
let/VB
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
)/)
,/,
''/''
said/VBD
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
)/)
in/IN
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
)/)
,/,
to/TO
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
(/(
read/VB
interloping/VBG
)/)
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
(/(
try/VB
finding/VBG
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
)/)
have/VBP
swelled/VBN
from/IN
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
./.
(/(
So/RB
long/RB
as/IN
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
(/(
and/CC
novitiates/NNS
are/VBP
referred/VBN
to/TO
as/IN
virgins/NNS
)/)
began/VBD
at/IN
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
./.
)/)
In/IN
between/IN
came/VBD
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
)/)
and/CC
ride/VB
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
./.
)/)
said/VBD
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
{/(
in/IN
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
}/)
,/,
''/''
says/VBZ
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
in/IN
bottling/VBG
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
)/)
from/IN
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
)/)
has/VBZ
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
million/CD
calculations/NNS
called/VBD
floating-point/JJ
operations/NNS
every/DT
second/NN
./.
The/DT
machine/NN
can/MD
run/VB
software/NN
written/VBN
for/IN
other/JJ
Mips/NNP
computers/NNS
,/,
the/DT
company/NN
said/VBD
./.
Another/DT
fight/NN
is/VBZ
brewing/VBG
between/IN
Congress/NNP
and/CC
the/DT
Bush/NNP
administration/NN
over/IN
how/WRB
to/TO
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
and/CC
the/DT
Congressional/NNP
Budget/NNP
Office/NNP
,/,
which/WDT
both/DT
are/VBP
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
and/CC
the/DT
Congressional/NNP
Budget/NNP
Office/NNP
said/VBD
,/,
the/DT
RTC/NNP
should/MD
consider/VB
using/VBG
Treasury/NNP
debt/NN
,/,
which/WDT
is/VBZ
less/RBR
expensive/JJ
and/CC
subject/JJ
to/TO
oversight/NN
by/IN
Congress/NNP
./.
The/DT
spending/NN
could/MD
be/VB
exempted/VBN
from/IN
meeting/VBG
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
funds/NNS
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
be/VB
irresponsible/JJ
,/,
''/''
said/VBD
Rep./NNP
Fortney/NNP
Stark/NNP
(/(
D./NNP
,/,
Calif./NNP
)/)
,/,
who/WP
has/VBZ
introduced/VBN
a/DT
bill/NN
to/TO
limit/VB
the/DT
RTC/NNP
's/POS
authority/NN
to/TO
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
and/CC
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
n't/RB
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
it/PRP
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
}/)
or/CC
dump/VB
acquired/VBN
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
of/IN
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
natural/JJ
gas/NN
pipeline/NN
concern/NN
said/VBD
the/DT
500/CD
million/CD
cubic/JJ
feet/NNS
a/DT
day/NN
capacity/NN
pipeline/NN
would/MD
be/VB
built/VBN
by/IN
a/DT
proposed/VBN
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
and/CC
operate/VB
the/DT
system/NN
,/,
which/WDT
will/MD
connect/VB
the/DT
Arkoma/NNP
Basin/NNP
with/IN
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
with/IN
18/CD
years/NNS
'/POS
worth/NN
of/IN
recipes/NNS
held/VBN
together/RB
by/IN
rubber/NN
bands/NNS
,/,
was/VBD
in/IN
chef/NN
Lindsey/NNP
Shere/NNP
's/POS
purse/NN
when/WRB
it/PRP
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
's/POS
wallet/NN
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$
founder/NN
,/,
Alice/NNP
Waters/NNP
,/,
is/VBZ
considered/VBN
the/DT
inventor/NN
of/IN
the/DT
cooking/JJ
style/NN
known/VBN
as/IN
California/NNP
cuisine/NN
and/CC
whose/WP$
patrons/NNS
make/VBP
reservations/NNS
a/DT
month/NN
in/IN
advance/NN
,/,
has/VBZ
n't/RB
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
thing/NN
,/,
Ms./NNP
Shere/NNP
can/MD
draw/VB
on/IN
her/PRP
cookbook/NN
,/,
published/VBN
by/IN
Random/NNP
House/NNP
four/CD
years/NNS
ago/RB
,/,
which/WDT
is/VBZ
teeming/VBG
with/IN
recipes/NNS
for/IN
such/JJ
specialties/NNS
as/IN
kiwi/NN
sherbet/NN
,/,
gooseberry/NN
fool/NN
(/(
a/DT
creamy/JJ
dish/NN
made/VBN
with/IN
crushed/JJ
stewed/JJ
berries/NNS
)/)
and/CC
hazelnut/NN
``/``
oeufs/FW
a/FW
la/FW
neige/FW
./.
''/''
For/IN
another/DT
,/,
sympathetic/JJ
fans/NNS
have/VBP
sent/VBN
Ms./NNP
Shere/NNP
copies/NNS
of/IN
her/PRP$
recipes/NNS
clipped/VBN
from/IN
magazines/NNS
over/IN
the/DT
years/NNS
./.
Still/RB
,/,
the/DT
restaurant/NN
's/POS
ever-changing/JJ
menu/NN
of/IN
five-course/JJ
dinners/NNS
--/:
it/PRP
supposedly/RB
has/VBZ
n't/RB
repeated/VBN
a/DT
meal/NN
since/IN
opening/VBG
in/IN
1971/CD
--/:
requires/VBZ
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
kept/VBD
only/RB
one/CD
copy/NN
of/IN
such/JJ
valuable/JJ
notes/NNS
,/,
but/CC
she/PRP
has/VBZ
received/VBN
moral/JJ
support/NN
from/IN
Baker/NNP
's/POS
Dozen/NNP
,/,
a/DT
group/NN
of/IN
California/NNP
pastry/NN
chefs/NNS
that/WDT
meets/VBZ
regularly/RB
to/TO
discuss/VB
issues/NNS
like/VB
how/WRB
to/TO
keep/VB
meringues/NNS
from/IN
weeping/VBG
and/CC
how/WRB
bovine/JJ
eating/JJ
habits/NNS
affect/VBP
butter/NN
texture/NN
./.
Ms./NNP
Shere/NNP
has/VBZ
offered/VBN
a/DT
$/$
500/CD
reward/NN
for/IN
the/DT
book/NN
's/POS
return/NN
but/CC
figures/VBZ
she/PRP
'll/MD
have/VB
to/TO
reinvent/VB
many/JJ
recipes/NNS
from/IN
scratch/NN
./.
``/``
It/PRP
's/VBZ
an/DT
overwhelming/JJ
job/NN
,/,
''/''
she/PRP
says/VBZ
./.
``/``
There/EX
are/VBP
so/RB
many/JJ
possible/JJ
proportions/NNS
when/WRB
you/PRP
consider/VBP
how/WRB
many/JJ
things/NNS
are/VBP
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
company/NN
has/VBZ
declined/VBN
requests/NNS
to/TO
discuss/VB
the/DT
changes/NNS
,/,
but/CC
Mr./NNP
Weekes/NNP
has/VBZ
said/VBN
that/IN
Mr./NNP
Hollander/NNP
wanted/VBD
to/TO
have/VB
his/PRP$
own/JJ
team/NN
./.
Scott/NNP
Wakeman/NNP
was/VBD
named/VBN
president/NN
and/CC
chief/JJ
operating/VBG
officer/NN
of/IN
U.S./NNP
operations/NNS
,/,
titles/NNS
that/WDT
had/VBD
been/VBN
held/VBN
by/IN
Mr./NNP
Weekes/NNP
./.
Mr./NNP
Wakeman/NNP
was/VBD
vice/NN
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
operations/NNS
,/,
was/VBD
named/VBN
executive/NN
vice/NN
president/NN
and/CC
chief/JJ
operating/VBG
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
(/(
now/RB
his/PRP$
second/JJ
wife/NN
)/)
;/:
and/CC
maintained/VBD
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
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./.
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Many/JJ
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``/``
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./.
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:/:
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,/,
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Viewpoint/NN
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)/)
./.
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--/:
as/IN
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by/IN
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of/IN
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during/IN
the/DT
Armenian/JJ
earthquake/NN
--/:
as/IN
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metaphor/NN
for/IN
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U.S./NNP
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system/NN
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./.
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San/NNP
Francisco/NNP
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and/CC
the/DT
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the/DT
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charitable/JJ
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as/IN
metaphors/NNS
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the/DT
supremacy/NN
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./.
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./.
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read/VB
in/IN
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of/IN
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uses/VBZ
220,000/CD
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,/,
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recycled/JJ
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./.
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./.
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,/,
and/CC
with/IN
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,/,
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all/DT
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of/IN
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become/VB
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./.
The/DT
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is/VBZ
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excellent/JJ
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and/CC
must/MD
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)/)
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./.
Please/VB
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other/JJ
readers/NNS
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daily/JJ
purchase/NN
of/IN
your/PRP$
newspaper/NN
by/IN
raising/VBG
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environmental/JJ
standards/NNS
to/TO
your/PRP$
overall/JJ
impeccable/JJ
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,/,
and/CC
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./.
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declared/VBD
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special/JJ
dividend/NN
of/IN
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share/NN
of/IN
Class/NN
B/NNP
common/JJ
stock/NN
for/IN
each/DT
share/NN
of/IN
Class/NN
A/NNP
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,/,
payable/JJ
to/TO
holders/NNS
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record/NN
on/IN
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if/IN
the/DT
Securities/NNPS
and/CC
Exchange/NNP
Commission/NNP
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date/NN
of/IN
the/DT
registration/NN
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./.
Shareholders/NNS
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this/DT
second/JJ
class/NN
of/IN
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,/,
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
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said/VBD
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be/VB
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and/CC
other/JJ
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./.
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
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as/IN
compiled/VBN
by/IN
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:/:
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--/:
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was/VBD
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to/TO
yield/VB
12/CD
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%/NN
./.
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single-B-1/JJ
by/IN
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and/CC
single-B/JJ
by/IN
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&/CC
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,/,
the/DT
issue/NN
,/,
which/WDT
is/VBZ
non-callable/JJ
for/IN
five/CD
years/NNS
,/,
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be/VB
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led/VBN
by/IN
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&/CC
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./.
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--/:
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million/CD
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notes/NNS
,/,
due/JJ
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,/,
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,/,
was/VBD
priced/VBN
in/IN
a/DT
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./.
The/DT
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of/IN
the/DT
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was/VBD
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originally/RB
planned/VBN
$/$
350/CD
million/CD
./.
The/DT
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part/NN
,/,
consisting/VBG
of/IN
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151/CD
million/CD
of/IN
13/CD
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%/NN
senior/JJ
subordinated/JJ
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notes/NNS
,/,
was/VBD
priced/VBN
at/IN
99.75/CD
./.
The/DT
rate/NN
on/IN
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notes/NNS
will/MD
be/VB
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give/VB
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a/DT
market/NN
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101/CD
./.
However/RB
,/,
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./.
The/DT
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%/NN
./.
The/DT
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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
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rate/NN
./.
The/DT
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coupon/NN
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the/DT
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./.
The/DT
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is/VBZ
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single-B-3/JJ
by/IN
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single-B-plus/JJ
by/IN
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./.
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--/:
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Lynch/NNP
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./.
The/DT
group/NN
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bid/NN
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40.9/CD
million/CD
of/IN
wastewater/NN
treatment/NN
insured/JJ
bonds/NNS
,/,
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1989/CD
A/NNP
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produced/VBD
a/DT
7.0826/CD
%/NN
true/JJ
interest/NN
cost/NN
./.
The/DT
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1989/CD
A/NNP
bonds/NNS
are/VBP
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rated/VBN
triple-A/JJ
by/IN
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'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
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,/,
produced/VBD
a/DT
7.0808/CD
%/NN
true/JJ
interest/NN
cost/NN
./.
The/DT
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1989/CD
B/NNP
bonds/NNS
are/VBP
uninsured/JJ
and/CC
rated/VBN
double-A/JJ
by/IN
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's/POS
and/CC
S&P/NNP
./.
Both/DT
the/DT
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1989/CD
A/NNP
and/CC
Series/NNP
1989/CD
B/NNP
bonds/NNS
were/VBD
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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
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Navigation/NNP
District/NNP
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,/,
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--/:
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70.3/CD
million/CD
of/IN
pollution/NN
control/NN
revenue/NN
bonds/NNS
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Houston/NNP
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&/CC
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./.
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
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./.
The/DT
bonds/NNS
are/VBP
insured/JJ
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rated/VBN
triple-A/JJ
by/IN
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./.
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Home/NNP
Loan/NNP
Mortgage/NNP
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--/:
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securities/NNS
is/VBZ
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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
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Mac/NNP
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./.
Complete/JJ
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were/VBD
n't/RB
immediately/RB
available/JJ
./.
Lomas/NNP
Mortgage/NNP
Funding/NNP
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II/NNP
--/:
$/$
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million/CD
issue/NN
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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
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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
,/,
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and/CC
Fitch/NNP
Investors/NNPS
Service/NNP
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./.
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
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of/IN
the/DT
original/JJ
principal/JJ
balance/NN
of/IN
the/DT
loans/NNS
./.
J.C./NNP
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Co./NNP
--/:
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JCP/NNP
Master/NNP
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certificates/NNS
,/,
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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
./.
(/(
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)/)
--/:
$/$
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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
./.
(/(
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)/)
--/:
$/$
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
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./.
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
./.
(/(
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)/)
--/:
$/$
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
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./.
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./.
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dei/FW
Paschi/NNP
di/FW
Siena/NNP
,/,
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branch/NN
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Italian/JJ
parent/NN
)/)
,/,
via/IN
the/DT
Law/NNP
Debenture/NNP
Trust/NNP
Corp./NNP
--/:
10/CD
billion/CD
yen/NNS
(/(
$/$
70/CD
million/CD
)/)
of/IN
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
)/)
and/CC
employs/VBZ
about/IN
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
)/)
,/,
but/CC
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
)/)
from/IN
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
than/IN
once/RB
since/IN
Sony/NNP
announced/VBD
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
)/)
to/TO
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
(/(
in/IN
itself/PRP
a/DT
brilliant/JJ
innovation/NN
for/IN
spreading/VBG
a/DT
religion/NN
)/)
was/VBD
to/TO
create/VB
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
(/(
originally/RB
the/DT
News/NNP
World/NNP
)/)
,/,
and/CC
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
(/(
with/IN
David/NNP
G./NNP
Bromley/NNP
)/)
of/IN
``/``
`/``
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
)/)
,/,
was/VBD
approved/VBN
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
)/)
in/IN
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
)/)
,/,
marking/VBG
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
./.
)/)
and/CC
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
{/(
for/IN
clients/NNS
}/)
,/,
so/RB
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
{/(
for/IN
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
}/)
Mosbacher/NNP
and/CC
{/(
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
}/)
routinely/RB
in/IN
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
{/(
of/IN
magnetic/JJ
stimulators/NNS
}/)
would/MD
seem/VB
like/IN
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
)/)
annually/RB
in/IN
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
}/)
and/CC
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
)/)
and/CC
expenditures/VBZ
of/IN
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
)/)
from/IN
77.3/CD
billion/CD
rubles/NNS
(/(
US$/$
125/CD
billion/CD
)/)
as/RB
well/RB
as/IN
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
./.
)/)
is/VBZ
scheduled/VBN
to/TO
present/VB
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
./.
)/)
But/CC
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
}/)
cuts/VBZ
against/IN
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
)/)
on/IN
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
)/)
from/IN
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
./.
(/(
Indeed/RB
,/,
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
)/)
will/MD
do/VB
,/,
''/''
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
)/)
,/,
``/``
because/IN
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
./.
)/)
strongly/RB
resisted/VBD
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
./.
)/)
complained/VBD
that/IN
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
{/(
per/IN
share/NN
}/)
is/VBZ
well/RB
below/IN
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
)/)
from/IN
#/#
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
)/)
has/VBZ
used/VBN
as/IN
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
}/)
may/MD
believe/VB
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
./.
(/(
During/IN
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
)/)
and/CC
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
(/(
now/RB
assigned/VBN
to/TO
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
)/)
,/,
reflecting/VBG
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
./.
Democrats/NNPS
want/VBP
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
./.
)/)
of/IN
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
have/VBP
been/VBN
running/VBG
for/IN
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
(/(
when/WRB
the/DT
Dow/NNP
Jones/NNP
Industrial/NNP
Average/NNP
dropped/VBD
190/CD
points/NNS
)/)
are/VBP
still/RB
reverberating/VBG
./.
''/''
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
}/)
based/VBN
on/IN
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
{/(
of/IN
gold/NN
mining/NN
companies/NNS
}/)
is/VBZ
restricted/JJ
unless/IN
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
(/(
named/VBN
after/IN
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
)/)
and/CC
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
)/)
before/IN
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
)/)
on/IN
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
)/)
and/CC
#/#
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
./.
)/)
is/VBZ
capitalized/VBN
at/IN
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
)/)
,/,
to/TO
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
)/)
--/:
is/VBZ
such/JJ
that/IN
after/IN
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
)/)
,/,
splendidly/RB
translated/VBN
by/IN
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
)/)
,/,
or/CC
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
./.
)/)
But/CC
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
)/)
as/IN
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
./.
International/NNP
Business/NNP
Machines/NNPS
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
)/)
;/:
and/CC
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
)/)
,/,
retablos/FW
(/(
painted/JJ
tin/NN
votive/JJ
objects/NNS
)/)
and/CC
colorful/JJ
voodoo/NN
banners/NNS
(/(
handmade/JJ
of/IN
satin/NN
,/,
sequins/NNS
and/CC
beads/NNS
)/)
,/,
brought/VBN
here/RB
from/IN
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
)/)
and/CC
Laurie/NNP
Monahan/NNP
(/(
Melanto/NNP
)/)
,/,
with/IN
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
)/)
geared/VBN
up/RP
with/IN
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
(/(
including/VBG
off-balance/JJ
sheet/NN
requirements/NNS
)/)
and/CC
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
(/(
housing/NN
,/,
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
)/)
during/IN
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
}/)
jointly/RB
and/CC
even/RB
to/TO
market/VB
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
./.
(/(
During/IN
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
./.
(/(
See/VB
:/:
``/``
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
)/)
and/CC
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
)/)
and/CC
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
)/)
and/CC
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
(/(
Wis/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
./.