###/###
``/`
We/P
're/V
strongly/R
recommending/V
that/I
anyone/N
who/W
has/V
eaten/V
in/I
the/D
cafeteria/N
this/D
month/N
have/V
the/D
shot/N
,/,
''/'
Mr./N
Mattausch/N
added/V
,/,
``/`
and/C
that/D
means/V
virtually/R
everyone/N
who/W
works/V
here/R
./.
###/###
I/P
was/V
appalled/V
to/T
read/V
the/D
misstatements/N
of/I
facts/N
in/I
your/P
Oct./N
13/C
editorial/N
``/`
Colombia/N
's/P
Brave/N
Publisher/N
./.
''/'
###/###
It/P
is/V
the/D
right-wing/J
guerrillas/N
who/W
are/V
aligned/V
with/I
the/D
drug/N
traffickers/N
,/,
not/R
the/D
left/J
wing/N
./.
###/###
This/D
information/N
was/V
gleaned/V
from/I
your/P
own/J
news/N
stories/N
on/I
the/D
region/N
./.
###/###
Past/J
Colombian/J
government/N
tolerance/N
of/I
the/D
``/`
narcotraficantes/F
''/'
was/V
due/J
to/T
the/D
drug/N
lords/N
'/P
history/N
of/I
wiping/V
out/R
leftists/N
in/I
the/D
hinterlands/N
./.
###/###
Mary/N
Poulin/N
Palo/N
Alto/N
,/,
Calif/N
./.
###/###
I/P
suggest/V
that/I
The/D
Wall/N
Street/N
Journal/N
-LRB-/-
as/R
well/R
as/I
other/J
U.S./N
news/N
publications/N
of/I
like/J
mind/N
-RRB-/-
should/M
put/V
its/P
money/N
where/W
its/P
mouth/N
is/V
:/:
Lend/V
computer/N
equipment/N
to/T
replace/V
that/I
damaged/V
at/I
El/N
Espectador/N
,/,
buy/V
ad/N
space/N
,/,
publish/V
stories/N
under/I
the/D
bylines/N
of/I
El/N
Espectador/N
journalists/N
./.
###/###
Perhaps/R
an/D
arrangement/N
could/M
be/V
worked/V
out/R
to/T
``/`
sponsor/V
''/'
El/N
Espectador/N
journalists/N
and/C
staff/N
by/I
paying/V
for/I
added/V
security/N
in/I
exchange/N
for/I
exclusive/J
stories/N
./.
###/###
Reward/V
El/N
Espectador/N
's/P
courage/N
with/I
real/J
support/N
./.
###/###
Douglas/N
B./N
Evans/N
###/###
COCA-COLA/N
Co/N
./.
-LRB-/-
Atlanta/N
-RRB-/-
--/:
Anton/N
Amon/N
and/C
George/N
Gourlay/N
were/V
elected/V
vice/N
presidents/N
of/I
this/D
soft-drink/N
company/N
./.
###/###
Mr./N
Amon/N
,/,
46/C
years/N
old/J
,/,
is/V
the/D
company/N
's/P
director/N
of/I
quality/N
assurance/N
;/:
most/R
recently/R
,/,
he/P
served/V
as/I
vice/N
president/N
,/,
operations/N
,/,
for/I
Coca-Cola/N
Enterprises/N
./.
###/###
Mr./N
Gourlay/N
,/,
48/C
,/,
is/V
manager/N
for/I
corporate/J
manufacturing/N
operations/N
;/:
he/P
was/V
assistant/J
vice/N
president/N
at/I
the/D
company/N
./.
###/###
In/I
the/D
wake/N
of/I
a/D
slide/N
in/I
sterling/N
,/,
a/D
tailspin/N
in/I
the/D
stock/N
market/N
,/,
and/C
a/D
string/N
of/I
problematic/J
economic/J
indicators/N
,/,
British/J
Chancellor/N
of/I
the/D
Exchequer/N
Nigel/N
Lawson/N
promised/V
gradual/J
improvement/N
in/I
the/D
U.K./N
economy/N
./.
###/###
In/I
a/D
speech/N
prepared/V
for/I
delivery/N
to/T
London/N
's/P
financial/J
community/N
,/,
Mr./N
Lawson/N
summed/V
up/R
current/J
economic/J
policy/N
as/I
a/D
battle/N
to/T
wring/V
inflation/N
out/I
of/I
the/D
British/J
economy/N
,/,
using/V
high/J
interest/N
rates/N
as/I
``/`
the/D
essential/J
instrument/N
''/'
to/T
carry/V
out/R
the/D
campaign/N
./.
###/###
Two/C
weeks/N
after/I
boosting/V
base/N
rates/N
to/T
15/C
%/N
,/,
he/P
pledged/V
that/I
``/`
rates/N
will/M
have/V
to/T
remain/V
high/J
for/I
some/D
time/N
to/T
come/V
./.
''/'
###/###
Mr./N
Lawson/N
also/R
made/V
it/P
clear/J
that/I
he/P
would/M
be/V
watching/V
exchange/N
rates/N
carefully/R
./.
###/###
A/D
sinking/V
pound/N
makes/V
imports/N
more/R
expensive/J
and/C
increases/V
businesses/N
'/P
expectations/N
of/I
future/J
inflation/N
,/,
he/P
argued/V
./.
###/###
In/I
an/D
apparent/J
warning/N
to/T
currency/N
traders/N
who/W
have/V
lately/R
been/V
selling/V
the/D
British/J
currency/N
,/,
he/P
stated/V
that/I
the/D
exchange/N
rates/N
will/M
have/V
a/D
``/`
major/J
role/N
in/I
the/D
assessment/N
of/I
monetary/J
conditions/N
./.
''/'
###/###
In/I
reaffirming/V
the/D
current/J
monetary/J
policy/N
of/I
using/V
high/J
interest/N
rates/N
to/T
fight/V
inflation/N
and/C
shore/V
up/I
the/D
pound/N
,/,
Mr./N
Lawson/N
dismissed/V
other/J
approaches/N
to/T
managing/V
the/D
economy/N
./.
###/###
He/P
said/V
he/P
monitors/V
the/D
money-supply/J
figures/N
,/,
but/C
does/V
n't/R
give/V
them/P
paramount/J
importance/N
,/,
as/I
some/D
private/J
and/C
government/N
economists/N
have/V
suggested/V
./.
###/###
Mr./N
Lawson/N
also/R
dismissed/V
the/D
possibility/N
of/I
imposing/V
direct/J
credit/N
controls/N
on/I
Britain/N
's/P
financial/J
system/N
./.
###/###
Mr./N
Lawson/N
's/P
speech/N
,/,
delivered/V
at/I
the/D
Lord/N
Mayor/N
of/I
London/N
's/P
annual/J
dinner/N
at/I
Mansion/N
House/N
,/,
came/V
on/I
the/D
heels/N
of/I
a/D
grueling/J
period/N
for/I
the/D
U.K./N
economy/N
./.
###/###
Two/C
weeks/N
ago/R
,/,
in/I
a/D
campaign/N
to/T
blunt/V
inflation/N
at/I
home/N
and/C
arrest/V
a/D
world-wide/J
plunge/N
in/I
the/D
pound/N
,/,
he/P
raised/V
base/N
rates/N
a/D
full/J
percentage/N
point/N
to/T
15/C
%/N
./.
###/###
Despite/I
the/D
increase/N
,/,
the/D
British/J
currency/N
slid/V
below/I
a/D
perceived/V
threshold/N
of/I
three/C
marks/N
early/R
last/J
week/N
./.
###/###
It/P
was/V
quoted/V
at/I
2.9428/C
marks/N
in/I
late/J
New/N
York/N
trading/N
Wednesday/N
./.
###/###
Leading/V
up/I
to/T
the/D
speech/N
was/V
a/D
drumroll/N
of/I
economic/J
statistics/N
suggesting/V
that/I
the/D
British/J
war/N
on/I
inflation/N
will/M
be/V
more/R
bruising/V
than/I
previously/R
assumed/V
./.
###/###
Unemployment/N
in/I
September/N
dropped/V
to/T
1,695,000/C
,/,
the/D
lowest/J
level/N
since/I
1980/C
./.
###/###
While/I
lower/J
joblessness/N
is/V
generally/R
good/J
news/N
,/,
the/D
hefty/J
drop/N
last/J
month/N
indicates/V
that/I
the/D
economy/N
is/V
n't/R
slowing/V
down/R
as/R
much/R
as/I
hoped/V
--/:
despite/I
a/D
doubling/N
of/I
interest/N
rates/N
over/I
the/D
last/J
16/C
months/N
./.
###/###
Meanwhile/R
,/,
average/J
earnings/N
in/I
Britain/N
were/V
up/R
8.75/C
%/N
in/I
August/N
over/I
the/D
previous/J
year/N
./.
###/###
Another/D
inflationary/J
sign/N
came/V
in/I
a/D
surge/N
in/I
building-society/J
lending/N
to/T
a/D
record/N
#/#
10.2/C
billion/C
-LRB-/-
$/$
16.22/C
billion/C
-RRB-/-
last/J
month/N
,/,
a/D
much/R
higher/J
level/N
than/I
economists/N
had/V
predicted/V
./.
###/###
In/I
a/D
separate/J
speech/N
prepared/V
for/I
delivery/N
at/I
the/D
dinner/N
,/,
Robin/N
Leigh-Pemberton/N
,/,
Bank/N
of/I
England/N
governor/N
,/,
conceded/V
that/I
``/`
demand/N
pressures/N
were/V
even/R
more/R
buoyant/J
than/I
had/V
been/V
appreciated/V
''/'
when/W
the/D
British/J
economy/N
was/V
heating/V
up/R
last/J
year/N
./.
###/###
He/P
added/V
that/I
``/`
there/E
's/V
no/D
quick-fix/J
solution/N
''/'
to/T
the/D
economic/J
woes/N
,/,
and/C
said/V
``/`
tight/J
monetary/J
policy/N
is/V
the/D
right/J
approach/N
./.
''/'
###/###
Discussing/V
the/D
recent/J
slide/N
in/I
stock/N
prices/N
,/,
the/D
central/J
bank/N
governor/N
stated/V
that/I
``/`
the/D
markets/N
now/R
appear/V
to/T
have/V
steadied/V
''/'
after/I
the/D
``/`
nasty/J
jolt/N
''/'
of/I
the/D
190.58-point/J
plunge/N
in/I
the/D
Dow/N
Jones/N
Industrial/N
Average/N
a/D
week/N
ago/R
./.
###/###
Although/I
the/D
New/N
York/N
market/N
plunge/N
prompted/V
a/D
70.5-point/J
drop/N
in/I
the/D
London/N
Financial/N
Times-Stock/N
Exchange/N
100/C
Share/N
Index/N
,/,
Mr./N
Leigh-Pemberton/N
declared/V
``/`
that/I
the/D
experience/N
owed/V
nothing/N
to/T
the/D
particular/J
problems/N
of/I
the/D
British/J
economy/N
./.
''/'
###/###
Specifically/R
,/,
he/P
pointed/V
out/R
that/I
compared/V
with/I
the/D
U.S./N
market/N
,/,
the/D
U.K./N
has/V
far/R
fewer/R
highly/R
leveraged/V
junk-bond/N
financings/N
./.
###/###
Discussing/V
future/J
monetary/J
arrangements/N
,/,
Mr./N
Lawson/N
repeated/V
the/D
Thatcher/N
government/N
's/P
commitment/N
to/T
join/V
the/D
exchange/N
rate/N
mechanism/N
of/I
the/D
European/N
Monetary/N
System/N
,/,
but/C
he/P
did/V
n't/R
indicate/V
when/W
./.
###/###
C./N
Olivetti/N
&/C
Co./N
,/,
claiming/V
it/P
has/V
won/V
the/D
race/N
in/I
Europe/N
to/T
introduce/V
computers/N
based/V
on/I
a/D
powerful/J
new/J
microprocessor/N
chip/N
,/,
unveiled/V
its/P
CP486/C
computer/N
yesterday/N
./.
###/###
The/D
product/N
is/V
the/D
first/J
from/I
a/D
European/J
company/N
based/V
on/I
Intel/N
Corp./N
's/P
new/J
32-bit/J
486tm/N
microprocessor/N
,/,
which/W
works/V
several/J
times/N
faster/R
than/I
previously/R
available/J
chips/N
./.
###/###
Hewlett-Packard/N
Co./N
became/V
the/D
first/J
company/N
world-wide/J
to/T
announce/V
a/D
product/N
based/V
on/I
the/D
chip/N
earlier/R
this/D
month/N
,/,
but/C
it/P
wo/M
n't/R
start/V
shipping/V
the/D
computers/N
until/I
early/J
next/J
year/N
./.
###/###
An/D
Olivetti/N
spokesman/N
said/V
the/D
company/N
's/P
factories/N
are/V
already/R
beginning/V
to/T
produce/V
the/D
machine/N
,/,
and/C
that/I
it/P
should/M
be/V
available/J
in/I
Europe/N
by/I
December/N
./.
###/###
``/`
What/W
this/D
means/V
is/V
that/I
Europeans/N
will/M
have/V
these/D
machines/N
in/I
their/P
offices/N
before/R
Americans/N
do/V
,/,
''/'
the/D
spokesman/N
said/V
./.
###/###
The/D
new/J
chip/N
``/`
is/V
a/D
very/R
big/J
step/N
in/I
computing/N
,/,
and/C
it/P
is/V
important/J
that/I
Olivetti/N
be/V
one/C
of/I
the/D
first/J
out/I
on/I
the/D
market/N
with/I
this/D
product/N
,/,
''/'
said/V
Patricia/N
Meagher/N
Davis/N
,/,
an/D
analyst/N
at/I
James/N
Capel/N
&/C
Co./N
in/I
London/N
./.
###/###
Executives/N
at/I
Olivetti/N
,/,
whose/W
earnings/N
have/V
been/V
steadily/R
sliding/V
over/I
the/D
past/J
couple/N
of/I
years/N
,/,
have/V
acknowledged/V
that/I
in/I
the/D
past/N
they/P
have/V
lagged/V
at/I
getting/V
new/J
technology/N
to/T
market/N
./.
###/###
Ms./N
Davis/N
said/V
the/D
new/J
machines/N
could/M
steal/V
some/D
sales/N
away/R
from/I
Olivetti/N
's/P
own/J
minicomputers/N
,/,
but/C
would/M
bring/V
new/J
sales/N
among/I
professionals/N
such/J
as/I
engineers/N
,/,
stockbrokers/N
and/C
medical/J
doctors/N
./.
###/###
Although/I
Olivetti/N
's/P
profits/N
tumbled/V
40/C
%/N
in/I
the/D
first/J
half/N
of/I
this/D
year/N
,/,
she/P
believes/V
Olivetti/N
's/P
restructuring/N
last/J
fall/N
and/C
its/P
introduction/N
of/I
new/J
products/N
will/M
begin/V
to/T
bear/V
fruit/N
with/I
an/D
earnings/N
rebound/N
next/J
year/N
,/,
especially/R
if/I
it/P
can/M
fulfill/V
its/P
promise/N
to/T
deliver/V
the/D
new/J
machines/N
by/I
December/N
./.
###/###
``/`
We/P
think/V
the/D
worst/J
is/V
over/R
''/'
in/I
the/D
European/J
information-technology/J
market/N
,/,
she/P
said/V
./.
###/###
Depending/V
on/I
the/D
type/N
of/I
software/N
and/C
peripherals/N
used/V
,/,
the/D
machines/N
can/M
serve/V
either/C
as/I
the/D
main/J
computer/N
in/I
a/D
network/N
of/I
many/J
terminals/N
-LRB-/-
a/D
role/N
usually/R
filled/V
by/I
a/D
minicomputer/N
-RRB-/-
,/,
as/I
a/D
technical/J
workstation/N
or/C
as/I
a/D
very/R
fast/J
personal/J
computer/N
./.
###/###
``/`
It/P
's/V
the/D
missing/J
link/N
''/'
in/I
Olivetti/N
's/P
product/N
line/N
between/I
small/J
personal/J
computers/N
and/C
higher-priced/J
minicomputers/N
,/,
the/D
Olivetti/N
spokesman/N
said/V
./.
###/###
He/P
added/V
that/I
Olivetti/N
will/M
continue/V
making/V
its/P
LSX/N
minicomputer/N
line/N
./.
###/###
The/D
machines/N
will/M
cost/V
around/R
$/$
16,250/C
on/I
average/N
in/I
Europe/N
./.
###/###
The/D
Intel/N
486/C
chip/N
can/M
process/V
15/C
million/C
instructions/N
per/I
second/N
,/,
or/C
MIPS/N
,/,
while/I
Intel/N
's/P
previous/J
386/C
chip/N
could/M
handle/V
only/R
3/C
to/T
6/C
MIPS/N
./.
###/###
Olivetti/N
also/R
plans/V
to/T
sell/V
the/D
CP486/N
computer/N
in/I
the/D
U.S./N
starting/V
next/J
year/N
through/I
Olivetti/N
USA/N
and/C
through/I
its/P
Ramo/N
unit/N
,/,
which/W
specializes/V
in/I
automating/V
bank-branch/J
networks/N
./.
###/###
Viatech/N
Inc./N
said/V
it/P
received/V
approval/N
from/I
the/D
French/J
government/N
for/I
its/P
proposed/V
$/$
44.7/C
million/C
acquisition/N
of/I
Ferembal/N
S.A/N
./.
###/###
The/D
approval/N
satisfies/N
the/D
remaining/J
conditions/N
of/I
the/D
purchase/N
,/,
which/W
is/V
expected/V
to/T
close/V
within/I
two/C
weeks/N
./.
###/###
erembal/N
,/,
the/D
second-largest/J
maker/N
of/I
food/N
cans/N
in/I
France/N
,/,
had/V
1988/C
sales/N
of/I
$/$
150/C
million/C
./.
###/###
Ferembal/N
has/V
930/C
workers/N
at/I
four/C
canning/N
manufacturing/N
plants/N
and/C
one/C
plastic/N
container/N
facility/N
./.
###/###
Viatech/N
makes/V
flexible/J
packaging/N
films/N
and/C
machinery/N
,/,
and/C
materials/N
for/I
the/D
food/N
and/C
pharmaceutical/J
industries/N
./.
###/###
Social/N
Security/N
benefits/N
will/M
rise/V
4.7/C
%/N
next/J
year/N
to/T
keep/V
pace/N
with/I
inflation/N
,/,
boosting/V
the/D
average/J
monthly/J
benefit/N
to/T
$/$
566/C
from/I
$/$
541/C
,/,
the/D
Department/N
of/I
Health/N
and/C
Human/N
Services/N
announced/V
./.
###/###
The/D
higher/J
payments/N
will/M
start/V
with/I
Social/N
Security/N
checks/N
received/V
on/I
Jan./N
3/C
,/,
1990/C
./.
###/###
Supplemental/N
Security/N
Income/N
payments/N
to/T
the/D
disabled/J
also/R
will/M
rise/V
4.7/C
%/N
,/,
starting/V
with/I
checks/N
received/V
on/I
Dec./N
29/C
,/,
1988/C
,/,
increasing/V
the/D
maximum/N
SSI/N
payment/N
to/T
$/$
386/C
from/I
$/$
368/C
a/D
month/N
./.
###/###
The/D
inflation/N
adjustment/N
also/R
means/V
that/I
the/D
maximum/N
annual/J
level/N
of/I
earnings/N
subject/J
to/T
the/D
wage/N
tax/N
that/W
generates/V
revenue/N
for/I
the/D
Social/N
Security/N
trust/N
fund/N
will/M
rise/V
to/T
$/$
50,400/C
in/I
1990/C
from/I
$/$
48,000/C
this/D
year/N
./.
###/###
As/I
mandated/V
by/I
law/N
,/,
the/D
tax/N
rate/N
will/M
rise/V
to/T
7.65/C
%/N
in/I
1990/C
from/I
7.51/C
%/N
and/C
wo/M
n't/R
rise/V
any/D
further/R
in/I
the/D
future/N
./.
###/###
This/D
means/V
that/I
the/D
maximum/N
yearly/J
Social/N
Security/N
tax/N
paid/V
by/I
workers/N
and/C
employers/N
each/D
will/M
rise/V
$/$
250.80/C
next/J
year/N
to/T
$/$
3,855.60/C
./.
###/###
Beneficiaries/N
aged/V
65/C
through/I
69/C
will/M
be/V
able/J
to/T
earn/V
$/$
9,360/C
without/I
losing/V
any/D
Social/N
Security/N
benefits/N
in/I
1990/C
,/,
up/I
from/I
$/$
8,880/C
this/D
year/N
./.
###/###
The/D
exempt/J
amount/N
for/I
beneficiaries/N
under/I
65/C
will/M
rise/V
to/T
$/$
6,840/C
from/I
$/$
6,480/C
./.
###/###
The/D
adjustments/N
reflect/V
the/D
increase/N
in/I
the/D
consumer/N
price/N
index/N
for/I
urban/J
wage/N
earners/N
and/C
clerical/J
workers/N
from/I
the/D
third/J
quarter/N
of/I
last/J
year/N
to/T
the/D
third/J
quarter/N
of/I
this/D
year/N
./.
###/###
Health-care/J
companies/N
should/M
get/V
healthier/R
in/I
the/D
third/J
quarter/N
./.
###/###
Medical-supply/J
houses/N
are/V
expected/V
to/T
report/V
earnings/N
increases/N
of/I
about/R
15/C
%/N
on/I
average/N
for/I
the/D
third/J
quarter/N
,/,
despite/I
sales/N
increases/N
of/I
less/J
than/I
10/C
%/N
,/,
analysts/N
say/V
./.
###/###
To/T
offset/V
sluggish/J
sales/N
growth/N
,/,
companies/N
have/V
been/V
cutting/V
staff/N
,/,
mostly/R
through/I
attrition/N
,/,
and/C
slowing/V
the/D
growth/N
in/I
research/N
and/C
development/N
spending/N
./.
###/###
Sales/N
growth/N
in/I
the/D
quarter/N
was/V
slowed/V
by/I
mounting/J
pressure/N
from/I
groups/N
of/I
buyers/N
,/,
such/J
as/I
hospitals/N
,/,
to/T
hold/V
down/R
prices/N
./.
###/###
Suppliers/N
were/V
also/R
hurt/V
by/I
the/D
stronger/J
U.S./N
dollar/N
,/,
which/W
makes/V
sales/N
abroad/R
more/R
difficult/J
./.
###/###
In/I
some/D
cases/N
,/,
competition/N
has/V
squeezed/V
margins/N
./.
###/###
Becton/N
,/,
Dickinson/N
&/C
Co./N
,/,
for/I
example/N
,/,
faces/V
stiff/J
competition/N
from/I
a/D
Japanese/J
supplier/N
in/I
the/D
important/J
syringe/N
market/N
./.
###/###
The/D
Franklin/N
Lakes/N
,/,
N.J./N
,/,
company/N
is/V
expected/V
to/T
report/V
sales/J
growth/N
of/I
only/J
5/C
%/N
to/T
6/C
%/N
,/,
but/C
should/M
still/R
maintain/V
earnings/N
growth/N
of/I
10/C
%/N
,/,
says/V
Jerry/N
E./N
Fuller/N
,/,
an/D
analyst/N
with/I
Duff/N
&/C
Phelps/N
Inc/N
./.
###/###
Among/I
the/D
first/J
of/I
the/D
group/N
to/T
post/V
results/N
,/,
Abbott/N
Laboratories/N
said/V
third-quarter/J
net/J
income/N
jumped/V
14/C
%/N
to/T
$/$
196/C
million/C
,/,
or/C
88/C
cents/N
a/D
share/N
,/,
from/I
$/$
172/C
million/C
,/,
or/C
76/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Sales/N
for/I
the/D
company/N
,/,
based/V
in/I
Abbott/N
Park/N
,/,
Ill./N
,/,
rose/V
8.3/C
%/N
to/T
$/$
1.31/C
billion/C
from/I
$/$
1.21/C
billion/C
./.
###/###
Baxter/N
International/N
Inc./N
yesterday/N
reported/V
net/J
climbed/V
20/C
%/N
in/I
the/D
third/J
period/N
to/T
$/$
102/C
million/C
,/,
or/C
34/C
cents/N
a/D
share/N
,/,
from/I
$/$
85/C
million/C
,/,
or/C
28/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Sales/N
for/I
the/D
Deerfield/N
,/,
Ill./N
,/,
company/N
rose/V
5.8/C
%/N
to/T
$/$
1.81/C
billion/C
from/I
$/$
1.71/C
billion/C
./.
###/###
But/C
not/R
every/D
company/N
expects/V
to/T
report/V
increased/V
earnings/N
./.
###/###
C.R./N
Bard/N
Inc./N
yesterday/N
said/V
third-quarter/J
net/J
plunged/V
51/C
%/N
to/T
$/$
9.9/C
million/C
,/,
or/C
18/C
cents/N
a/D
share/N
,/,
from/I
$/$
20/C
million/C
,/,
or/C
35/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Sales/N
fell/V
1.2/C
%/N
to/T
$/$
190.1/C
million/C
from/I
$/$
192.5/C
million/C
./.
###/###
The/D
Murray/N
Hill/N
,/,
N.J./N
,/,
company/N
said/V
full-year/J
earnings/N
may/M
be/V
off/J
33/C
cents/N
a/D
share/N
because/I
the/D
company/N
removed/V
a/D
catheter/N
from/I
the/D
market/N
./.
###/###
In/I
1988/C
,/,
the/D
company/N
earned/V
$/$
1.38/C
a/D
share/N
./.
###/###
The/D
Food/N
and/C
Drug/N
Administration/N
had/V
raised/V
questions/N
about/I
the/D
device/N
's/P
design/N
./.
###/###
Some/D
analysts/N
add/V
that/I
third-party/J
pressures/N
to/T
reduce/V
health/N
costs/N
will/M
continue/V
to/T
bedevil/V
companies/N
'/P
bottom/J
lines/N
./.
###/###
Takeover/N
speculation/N
,/,
which/W
has/V
been/V
buoying/V
stocks/N
of/I
supply/N
houses/N
,/,
may/M
also/R
ease/V
,/,
says/V
Peter/N
Sidoti/N
,/,
an/D
analyst/N
with/I
Drexel/N
Burnham/N
Lambert/N
Inc/N
./.
###/###
``/`
As/I
that/D
wanes/V
,/,
you/P
're/V
going/V
to/T
see/V
the/D
stocks/N
probably/R
wane/V
as/I
well/R
,/,
''/'
he/P
says/V
./.
###/###
Hospitals/N
companies/N
,/,
meanwhile/R
,/,
are/V
reporting/V
improved/V
earnings/N
./.
###/###
Bolstered/V
by/I
strong/J
performances/N
by/I
its/P
psychiatric/J
hospitals/N
,/,
National/N
Medical/N
Enterprises/N
Inc./N
,/,
Los/N
Angeles/N
,/,
reported/V
net/J
income/N
of/I
$/$
50/C
million/C
,/,
or/C
65/C
cents/N
a/D
share/N
,/,
for/I
the/D
first/J
quarter/N
ended/V
Aug./N
31/C
,/,
up/R
from/I
$/$
41/C
million/C
,/,
or/C
56/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Humana/N
Inc./N
,/,
Louisville/N
,/,
Ky./N
,/,
also/R
reported/V
favorable/J
results/N
,/,
with/I
net/J
income/N
of/I
$/$
66.7/C
million/C
,/,
or/C
66/C
cents/N
,/,
in/I
the/D
fourth/J
quarter/N
ended/V
Aug./N
31/C
,/,
up/R
from/I
$/$
58.2/C
million/C
,/,
or/C
59/C
cents/N
,/,
a/D
year/N
earlier/R
./.
###/###
Analysts/N
say/V
the/D
handful/N
of/I
hospital/N
companies/N
that/W
are/V
still/R
publicly/R
traded/V
are/V
benefiting/V
from/I
several/J
trends/N
./.
###/###
Most/R
important/J
,/,
hospital/N
admission/N
rates/N
are/V
stabilizing/V
after/I
several/J
years/N
of/I
decline/N
./.
###/###
Moreover/R
,/,
companies/N
have/V
sold/V
off/R
many/J
of/I
their/P
smaller/J
,/,
less-profitable/J
hospitals/N
and/C
have/V
completed/V
painful/J
restructurings/N
./.
###/###
Humana/N
's/P
revenues/N
,/,
for/I
example/N
,/,
are/V
being/V
boosted/V
by/I
large/J
increases/N
in/I
enrollments/N
in/I
the/D
company/N
's/P
health/N
maintenance/N
organizations/N
./.
###/###
Says/V
Todd/N
Richter/N
,/,
an/D
analyst/N
with/I
Dean/N
Witter/N
Reynolds/N
:/:
``/`
The/D
shakeout/N
in/I
the/D
publicly/R
traded/V
companies/N
is/V
over/R
./.
###/###
Initial/J
claims/N
for/I
regular/J
state/N
unemployment/N
benefits/N
rose/V
to/T
a/D
seasonally/R
adjusted/V
396,000/C
during/I
the/D
week/N
ended/V
Oct./N
7/C
from/I
334,000/C
the/D
previous/J
week/N
,/,
the/D
Labor/N
Department/N
said/V
./.
###/###
The/D
number/N
of/I
people/N
receiving/V
regular/J
state/N
benefits/N
in/I
the/D
week/N
ended/V
Sept./N
30/C
decreased/V
to/T
a/D
seasonally/R
adjusted/V
2,202,000/C
,/,
or/C
2.2/C
%/N
of/I
those/D
covered/V
by/I
unemployment/N
insurance/N
,/,
from/I
2,205,000/C
the/D
previous/J
week/N
,/,
when/W
the/D
insured/V
unemployment/N
rate/N
also/R
was/V
2.2/C
%/N
./.
###/###
Counting/V
all/D
state/N
and/C
federal/J
benefit/N
programs/N
,/,
the/D
number/N
of/I
people/N
receiving/V
unemployment/N
benefits/N
in/I
the/D
week/N
ended/V
Sept./N
30/C
fell/V
to/T
1,809,300/C
from/I
1,838,200/C
a/D
week/N
earlier/R
./.
###/###
These/D
figures/N
are/V
n't/R
seasonally/R
adjusted/V
./.
###/###
A/D
Labor/N
Department/N
spokesman/N
said/V
the/D
unusually/R
high/J
number/N
of/I
initial/J
claims/N
for/I
state/N
unemployment/N
benefits/N
reflects/V
the/D
impact/N
of/I
Hurricane/N
Hugo/N
on/I
southern/J
states/N
,/,
particularly/R
North/N
Carolina/N
and/C
South/N
Carolina/N
./.
###/###
The/D
figure/N
also/R
may/M
reflect/V
initial/J
claims/N
filed/V
by/I
striking/V
Nynex/N
Corp./N
workers/N
who/W
have/V
become/V
eligible/J
for/I
unemployment/N
benefits/N
,/,
the/D
official/N
said/V
./.
###/###
Digital/N
Equipment/N
Corp./N
reported/V
a/D
32/C
%/N
decline/N
in/I
net/J
income/N
on/I
a/D
modest/J
revenue/N
gain/N
in/I
its/P
fiscal/J
first/J
quarter/N
,/,
causing/V
some/D
analysts/N
to/T
predict/V
weaker/J
results/N
ahead/R
than/I
they/P
had/V
expected/V
./.
###/###
Although/I
the/D
second-largest/J
computer/N
maker/N
had/V
prepared/V
Wall/N
Street/N
for/I
a/D
poor/J
quarter/N
,/,
analysts/N
said/V
they/P
were/V
troubled/V
by/I
signs/N
of/I
flat/J
U.S./N
orders/N
and/C
a/D
slowdown/N
in/I
the/D
rate/N
of/I
gain/N
in/I
foreign/J
orders/N
./.
###/###
The/D
Maynard/N
,/,
Mass./N
,/,
company/N
is/V
in/I
a/D
transition/N
in/I
which/W
it/P
is/V
trying/V
to/T
reduce/V
its/P
reliance/N
on/I
mid-range/J
machines/N
and/C
establish/V
a/D
presence/N
in/I
workstations/N
and/C
mainframes/N
./.
###/###
Net/N
for/I
the/D
quarter/N
ended/V
Sept./N
30/C
fell/V
to/T
$/$
150.8/C
million/C
,/,
or/C
$/$
1.20/C
a/D
share/N
,/,
from/I
$/$
223/C
million/C
,/,
or/C
$/$
1.71/C
a/D
share/N
,/,
a/D
year/N
ago/R
./.
###/###
Revenue/N
rose/V
6.4/C
%/N
to/T
$/$
3.13/C
billion/C
from/I
$/$
2.94/C
billion/C
./.
###/###
Digital/N
said/V
a/D
shift/N
in/I
its/P
product/N
mix/N
toward/I
low-end/J
products/N
and/C
strong/J
growth/N
in/I
workstation/N
sales/N
yielded/V
lower/J
gross/J
margins/N
./.
###/###
A/D
spokesman/N
also/R
said/V
margins/N
for/I
the/D
company/N
's/P
service/N
business/N
narrowed/V
somewhat/R
because/I
of/I
heavy/J
investments/N
made/V
in/I
that/D
sector/N
./.
###/###
The/D
lack/N
of/I
a/D
strong/J
product/N
at/I
the/D
high/J
end/N
of/I
Digital/N
's/P
line/N
was/V
a/D
significant/J
drag/N
on/I
sales/N
./.
###/###
Digital/N
hopes/V
to/T
address/V
that/D
with/I
the/D
debut/N
of/I
its/P
first/J
mainframe-class/J
computers/N
next/I
Tuesday/N
./.
###/###
The/D
new/J
line/N
is/V
aimed/V
directly/R
at/I
International/N
Business/N
Machines/N
Corp/N
./.
###/###
``/`
Until/I
the/D
new/J
mainframe/N
products/N
kick/V
in/R
,/,
there/E
wo/M
n't/R
be/V
a/D
lot/N
of/I
revenue/N
contribution/N
at/I
the/D
high/J
end/N
,/,
and/C
that/D
's/V
hurt/V
us/P
,/,
''/'
said/V
Mark/N
Steinkrauss/N
,/,
Digital/N
's/P
director/N
of/I
investor/N
relations/N
./.
###/###
He/P
said/V
unfavorable/J
currency/N
translations/N
were/V
also/R
a/D
factor/N
in/I
the/D
quarter/N
./.
###/###
DEC/N
shares/N
rose/V
$/$
1.375/C
to/T
$/$
89.75/C
apiece/R
in/I
consolidated/J
New/N
York/N
Stock/N
Exchange/N
trading/N
yesterday/N
./.
###/###
But/C
analysts/N
said/V
that/I
against/I
the/D
backdrop/N
of/I
a/D
nearly/R
40-point/J
rise/N
in/I
the/D
Dow/N
Jones/N
Industrial/N
Average/N
,/,
that/W
should/M
n't/R
necessarily/R
be/V
taken/V
as/I
a/D
sign/N
of/I
great/J
strength/N
./.
###/###
Some/D
cut/V
their/P
earnings/N
estimates/N
for/I
the/D
stock/N
this/D
year/N
and/C
predicted/V
more/J
efforts/N
to/T
control/V
costs/N
ahead/R
./.
###/###
``/`
I/P
think/V
the/D
next/J
few/J
quarters/N
will/M
be/V
difficult/J
,/,
''/'
said/V
Steven/N
Milunovich/N
of/I
First/N
Boston/N
./.
###/###
``/`
Margins/N
will/M
remain/V
under/I
pressure/N
,/,
and/C
when/W
the/D
new/J
mainframe/N
does/V
ship/V
,/,
I/P
'm/V
not/R
sure/J
it/P
will/M
be/V
a/D
big/J
winner/N
./.
###/###
''/'
Mr./N
Milunovich/N
said/V
he/P
was/V
revising/V
his/P
estimate/N
for/I
DEC/N
's/P
current/J
year/N
from/I
$/$
8.20/C
a/D
share/N
to/T
``/`
well/R
below/I
$/$
8/C
,/,
''/'
although/I
he/P
has/V
n't/R
settled/V
on/I
a/D
final/J
number/N
./.
###/###
One/C
troubling/V
aspect/N
of/I
DEC/N
's/P
results/N
,/,
analysts/N
said/V
,/,
was/V
its/P
performance/N
in/I
Europe/N
./.
###/###
DEC/N
said/V
its/P
overseas/J
business/N
,/,
which/W
now/R
accounts/V
for/I
more/J
than/I
half/N
of/I
sales/N
,/,
improved/V
in/I
the/D
quarter/N
./.
###/###
It/P
even/R
took/V
the/D
unusually/R
frank/J
step/N
of/I
telling/V
analysts/N
in/I
a/D
morning/N
conference/N
call/N
that/I
orders/N
in/I
Europe/N
were/V
up/R
in/I
``/`
double/J
digits/N
''/'
in/I
foreign-currency/J
terms/N
./.
###/###
That/D
gain/N
probably/R
translated/V
into/I
about/R
5/C
%/N
to/T
7/C
%/N
in/I
dollar/N
terms/N
,/,
well/R
below/I
recent/J
quarters/N
'/P
gains/N
of/I
above/I
20/C
%/N
,/,
reckons/V
Jay/N
Stevens/N
of/I
Dean/N
Witter/N
Reynolds/N
./.
###/###
``/`
That/D
was/V
a/D
disappointment/N
''/'
and/C
a/D
sign/N
of/I
overall/J
computer-market/J
softness/N
in/I
Europe/N
,/,
Mr./N
Stevens/N
said/V
./.
###/###
Marc/N
Schulman/N
,/,
with/I
UBS/N
Securities/N
in/I
New/N
York/N
,/,
dropped/V
his/P
estimate/N
of/I
DEC/N
's/P
full-year/J
net/N
to/T
$/$
6.80/C
a/D
share/N
from/I
$/$
8/C
./.
###/###
Although/I
overall/J
revenues/N
were/V
stronger/J
,/,
Mr./N
Schulman/N
said/V
,/,
DEC/N
``/`
drew/V
down/R
its/P
European/J
backlog/N
''/'
and/C
had/V
flat/J
world-wide/J
orders/N
overall/J
./.
###/###
``/`
The/D
bottom/J
line/N
is/V
that/I
it/P
's/V
more/J
hand/N
to/T
mouth/N
than/I
it/P
has/V
been/V
before/R
,/,
''/'
he/P
said/V
./.
###/###
Mr./N
Schulman/N
said/V
he/P
believes/V
that/I
the/D
roll-out/N
of/I
DEC/N
's/P
new/J
mainframe/N
will/M
``/`
occur/V
somewhat/R
more/R
leisurely/J
''/'
than/I
many/J
of/I
his/P
investment/N
colleagues/N
expect/V
./.
###/###
He/P
said/V
current/J
expectations/N
are/V
for/I
an/D
entry/N
level/N
machine/N
to/T
be/V
shipped/V
in/I
December/N
,/,
with/I
all/D
of/I
the/D
more/R
sophisticated/J
versions/N
out/R
by/I
June/N
./.
###/###
For/I
reasons/N
he/P
would/M
n't/R
elaborate/V
on/I
,/,
he/P
said/V
he/P
's/V
sure/J
that/D
schedule/N
wo/M
n't/R
be/V
met/V
,/,
meaning/V
less/J
profit/N
impact/N
from/I
the/D
product/N
for/I
DEC/N
in/I
the/D
next/J
few/J
quarters/N
./.
###/###
John/N
R./N
Wilke/N
contributed/V
to/T
this/D
article/N
./.
###/###
Colgate/N
Palmolive/N
Co./N
reported/V
third-quarter/J
net/J
income/N
rose/V
27/C
%/N
,/,
bolstered/V
by/I
strong/J
sales/N
in/I
its/P
Latin/J
American/J
business/N
and/C
surprisingly/R
healthy/J
profits/N
from/I
U.S./N
operations/N
./.
###/###
Colgate/N
said/V
net/J
income/N
for/I
the/D
quarter/N
rose/V
to/T
$/$
76.7/C
million/C
,/,
or/C
$/$
1.06/C
a/D
share/N
,/,
on/I
sales/N
that/W
increased/V
6/C
%/N
to/T
$/$
1.3/C
billion/C
./.
###/###
In/I
the/D
year-earlier/J
period/N
,/,
Colgate/N
posted/V
net/J
income/N
of/I
$/$
60.2/C
million/C
,/,
or/C
88/C
cents/N
a/D
share/N
./.
###/###
Last/J
year/N
's/P
results/N
included/V
earnings/N
from/I
discontinued/V
operations/N
of/I
$/$
13.1/C
million/C
,/,
or/C
19/C
cents/N
a/D
share/N
./.
###/###
Reuben/N
Mark/N
,/,
chairman/N
and/C
chief/J
executive/J
officer/N
of/I
Colgate/N
,/,
said/V
earnings/N
growth/N
was/V
fueled/V
by/I
strong/J
sales/N
in/I
Latin/N
America/N
,/,
the/D
Far/N
East/N
and/C
Europe/N
./.
###/###
Results/N
were/V
also/R
bolstered/V
by/I
``/`
a/D
very/R
meaningful/J
increase/N
in/I
operating/N
profit/N
at/I
Colgate/N
's/P
U.S./N
business/N
,/,
''/'
he/P
said/V
./.
###/###
Operating/N
profit/N
at/I
Colgate/N
's/P
U.S./N
household/N
products/N
and/C
personal/J
care/N
businesses/N
,/,
which/W
include/V
such/J
well-known/J
brands/N
as/I
Colgate/N
toothpaste/N
and/C
Fab/N
laundry/N
detergent/N
,/,
jumped/V
more/R
than/I
40/C
%/N
,/,
the/D
company/N
said/V
./.
###/###
Mr./N
Mark/N
attributed/V
the/D
improvement/N
to/T
cost/N
savings/N
achieved/V
by/I
consolidating/V
manufacturing/V
operations/N
,/,
blending/V
together/R
two/C
sales/N
organizations/N
and/C
more/R
carefully/R
focusing/V
the/D
company/N
's/P
promotional/J
activities/N
./.
###/###
``/`
We/P
've/V
done/V
a/D
lot/N
to/T
improve/V
-LRB-/-
U.S/N
./.
-RRB-/-
results/N
and/C
a/D
lot/N
more/J
will/M
be/V
done/V
,/,
''/'
Mr./N
Mark/N
said/V
./.
###/###
``/`
Improving/N
profitability/N
of/I
U.S./N
operations/N
is/V
an/D
extremely/R
high/J
priority/N
in/I
the/D
company/N
./.
''/'
###/###
Colgate/N
's/P
results/N
were/V
at/I
the/D
high/J
end/N
of/I
the/D
range/N
of/I
analysts/N
'/P
forecasts/N
./.
###/###
The/D
scope/N
of/I
the/D
improvement/N
in/I
the/D
U.S./N
business/N
caught/V
some/D
analysts/N
by/I
surprise/N
./.
###/###
The/D
company/N
's/P
domestic/J
business/N
,/,
especially/R
its/P
household/N
products/N
division/N
,/,
has/V
performed/V
poorly/R
for/I
years/N
./.
###/###
Analysts/N
say/V
the/D
earnings/N
improvement/N
came/V
from/I
cutting/V
costs/N
rather/R
than/I
increasing/V
sales/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
net/J
increased/V
14/C
%/N
to/T
$/$
217.5/C
million/C
,/,
or/C
$/$
3.09/C
a/D
share/N
./.
###/###
Sales/N
rose/V
7/C
%/N
to/T
$/$
3.8/C
billion/C
./.
###/###
The/D
company/N
earned/V
$/$
191.1/C
million/C
,/,
or/C
$/$
2.79/C
a/D
share/N
,/,
in/I
the/D
year-earlier/J
period/N
./.
###/###
Colgate/N
's/P
1988/C
net/J
income/N
included/V
$/$
40.1/C
million/C
,/,
or/C
59/C
cents/N
a/D
share/N
,/,
from/I
discontinued/V
operations/N
./.
###/###
Colgate/N
sold/V
its/P
hospital/N
supply/N
and/C
home/N
health/N
care/N
business/N
last/J
year/N
./.
###/###
Separately/R
,/,
Colgate/N
Wednesday/N
finalized/V
an/D
agreement/N
with/I
MacroChem/N
Corp./N
,/,
a/D
tiny/J
dental/J
products/N
and/C
pharmaceutical/J
concern/N
based/V
in/I
Billerica/N
,/,
Mass./N
,/,
to/T
market/V
in/I
the/D
U.S./N
four/C
of/I
MacroChem/N
's/P
FDA-approved/J
dental/J
products/N
./.
###/###
The/D
products/N
--/:
sealants/N
and/C
bonding/N
materials/N
used/V
by/I
dentists/N
--/:
all/D
contain/V
fluoride/N
that/W
is/V
released/V
over/I
time/N
./.
###/###
The/D
move/N
is/V
part/N
of/I
a/D
drive/N
to/T
increase/V
Colgate/N
's/P
business/N
with/I
dentists/N
,/,
a/D
company/N
spokeswoman/N
said/V
./.
###/###
Terms/N
of/I
the/D
agreement/N
were/V
n't/R
given/V
./.
###/###
USACafes/N
Limited/N
Partnership/N
said/V
it/P
completed/V
the/D
sale/N
of/I
its/P
Bonanza/N
restaurant/N
franchise/N
system/N
to/T
a/D
subsidiary/N
of/I
Metromedia/N
Co./N
for/I
$/$
71/C
million/C
in/I
cash/N
./.
###/###
USACafes/N
,/,
which/W
is/V
nearly/R
half-owned/J
by/I
Sam/N
and/C
Charles/N
Wyly/N
of/I
Dallas/N
,/,
said/V
it/P
will/M
distribute/V
proceeds/N
from/I
the/D
sale/N
to/T
unit/N
holders/N
as/I
a/D
liquidating/N
dividend/N
as/R
soon/R
as/I
possible/J
./.
###/###
The/D
Bonanza/N
franchise/N
system/N
,/,
which/W
generates/V
about/R
$/$
600/C
million/C
in/I
sales/N
annually/R
,/,
represented/V
substantially/R
all/D
of/I
the/D
partnership/N
's/P
assets/N
./.
###/###
The/D
sale/N
of/I
the/D
system/N
has/V
been/V
challenged/V
in/I
a/D
class-action/J
suit/N
on/I
behalf/N
of/I
unit/N
holders/N
filed/V
last/J
week/N
in/I
a/D
Delaware/N
court/N
,/,
USACafes/N
said/V
./.
###/###
The/D
company/N
said/V
it/P
believes/V
the/D
suit/N
is/V
without/I
merit/N
./.
###/###
American/N
Telephone/N
&/C
Telegraph/N
Co./N
unveiled/V
a/D
sweetened/V
pension/N
and/C
early-retirement/J
program/N
for/I
management/N
that/I
it/P
hopes/V
will/M
enable/V
it/P
to/T
save/V
$/$
450/C
million/C
in/I
the/D
next/J
year/N
./.
###/###
AT&T/N
also/R
said/V
net/J
income/N
rose/V
19/C
%/N
in/I
the/D
third/J
quarter/N
./.
###/###
AT&T/N
said/V
its/P
amended/V
pension/N
program/N
will/M
nearly/R
double/V
to/T
34,000/C
the/D
number/N
of/I
managers/N
eligible/N
to/T
retire/V
with/I
immediate/J
pension/N
payments/N
./.
###/###
AT&T/N
said/V
that/I
based/V
on/I
studies/N
of/I
other/J
companies/N
that/W
have/V
offered/V
retirement/N
plans/N
,/,
it/P
expects/V
about/R
one-third/J
of/I
its/P
eligible/N
managers/N
to/T
retire/V
under/I
the/D
new/J
program/N
./.
###/###
AT&T/N
said/V
third-quarter/J
net/J
income/N
grew/V
,/,
despite/I
stiff/J
competition/N
in/I
all/D
of/I
the/D
company/N
's/P
markets/N
./.
###/###
Net/J
income/N
rose/V
to/T
$/$
699/C
million/C
,/,
or/C
65/C
cents/N
a/D
share/N
,/,
from/I
the/D
year-earlier/J
$/$
587/C
million/C
or/C
55/C
cents/N
a/D
share/N
./.
###/###
Revenue/N
edged/V
up/R
to/T
$/$
8.9/C
billion/C
from/I
$/$
8.81/C
billion/C
./.
###/###
The/D
latest/J
period/N
's/P
net/N
was/V
reduced/V
$/$
102/C
million/C
,/,
or/C
nine/C
cents/N
a/D
share/N
,/,
for/I
a/D
change/N
in/I
depreciation/N
method/N
and/C
concurrent/J
changes/N
in/I
estimates/N
of/I
depreciable/J
lives/N
and/C
net/J
salvage/N
for/I
certain/J
telecommunications/N
equipment/N
./.
###/###
The/D
results/N
roughly/R
matched/V
estimates/N
of/I
securities/N
analysts/N
,/,
who/W
were/V
encouraged/V
by/I
AT&T/N
increasing/V
its/P
operating/N
margin/N
to/T
13/C
%/N
from/I
11/C
%/N
a/D
year/N
ago/R
,/,
because/I
of/I
continued/V
cost-cutting/J
efforts/N
./.
###/###
Sales/N
of/I
long-distance/J
services/N
,/,
an/D
extremely/R
competitive/J
market/N
,/,
rose/V
6.4/C
%/N
./.
###/###
But/C
the/D
growth/N
was/V
partly/R
offset/V
by/I
lower/J
equipment/N
sales/N
and/C
rentals/N
and/C
price/N
cuts/N
on/I
some/D
products/N
./.
###/###
Under/I
the/D
amended/V
pension/N
program/N
,/,
AT&T/N
managers/N
who/W
have/V
at/I
least/J
five/C
years/N
of/I
service/N
will/M
have/V
five/C
years/N
added/V
to/T
their/P
age/N
and/C
length/N
of/I
service/N
for/I
pension/N
purposes/N
./.
###/###
Managers/N
who/W
retire/V
Dec./N
30/C
will/M
have/V
an/D
additional/J
15/C
%/N
added/V
to/T
their/P
monthly/J
pension/N
for/I
as/R
long/J
as/I
five/C
years/N
or/C
age/N
65/C
,/,
whichever/W
comes/V
earlier/R
./.
###/###
An/D
AT&T/N
spokeswoman/N
said/V
the/D
company/N
would/M
likely/R
replace/V
about/R
one-third/J
of/I
its/P
managers/N
who/W
choose/V
to/T
retire/V
with/I
new/J
employees/N
./.
###/###
Analysts/N
hailed/V
the/D
sweetened/V
pension/N
package/N
,/,
which/W
they/P
said/V
had/V
been/V
the/D
subject/N
of/I
rumors/N
for/I
several/J
months/N
./.
###/###
``/`
This/D
tells/V
you/P
AT&T/N
is/V
serious/J
about/I
continuing/V
to/T
manage/V
their/P
cost/N
structure/N
and/C
is/V
committed/V
to/T
20%-a-year/J
earnings/N
growth/N
,/,
''/'
said/V
Jack/N
Grubman/N
,/,
an/D
analyst/N
with/I
PaineWebber/N
Inc/N
./.
###/###
But/C
other/J
analysts/N
expressed/V
disappointment/N
that/I
the/D
cost-cutting/J
move/N
wo/M
n't/R
result/V
in/I
even/R
greater/J
earnings/N
growth/N
./.
###/###
``/`
This/D
is/V
a/D
good/J
move/N
,/,
but/C
it/P
only/R
gets/V
you/P
to/T
where/W
people/N
's/P
expectations/N
already/R
are/V
,/,
''/'
in/I
terms/N
of/I
earnings/N
growth/N
,/,
said/V
Joel/N
D./N
Gross/N
,/,
an/D
analyst/N
with/I
Donaldson/N
,/,
Lufkin/N
&/C
Jenrette/N
./.
###/###
Mr./N
Gross/N
said/V
he/P
had/V
hoped/V
that/I
a/D
cost/N
savings/N
of/I
$/$
450/C
million/C
would/M
result/V
in/I
even/R
greater/J
growth/N
than/I
the/D
20/C
%/N
annual/J
earnings/N
increase/N
AT&T/N
has/V
told/V
analysts/N
it/P
expects/V
in/I
the/D
future/N
./.
###/###
AT&T/N
said/V
the/D
special/J
retirement/N
option/N
will/M
increase/V
fourth-quarter/J
expenses/N
./.
###/###
But/C
the/D
company/N
said/V
the/D
amount/N
ca/M
n't/R
be/V
determined/V
until/I
it/P
knows/V
how/W
many/J
managers/N
opt/V
to/T
retire/V
./.
###/###
AT&T/N
said/V
the/D
expense/N
increase/N
will/M
be/V
largely/R
offset/V
by/I
a/D
gain/N
from/I
its/P
previously/R
announced/V
plan/N
to/T
swap/V
its/P
holdings/N
in/I
Ing/N
./.
C./N
Olivetti/N
&/C
Co./N
for/I
shares/N
in/I
Cie/N
./.
Industriali/N
Riunite/N
,/,
an/D
Italian/J
holding/V
company/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
AT&T/N
said/V
net/J
income/N
was/V
$/$
1.99/C
billion/C
,/,
or/C
$/$
1.85/C
a/D
share/N
,/,
up/R
19/C
%/N
from/I
$/$
1.67/C
billion/C
,/,
or/C
$/$
1.56/C
a/D
share/N
./.
###/###
Revenue/N
gained/V
3.1/C
%/N
to/T
$/$
26.81/C
billion/C
from/I
$/$
26/C
billion/C
./.
###/###
In/I
composite/J
trading/N
yesterday/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
,/,
AT&T/N
shares/N
closed/V
at/I
$/$
43.375/C
,/,
up/R
87.5/C
cents/N
./.
###/###
When/W
it/P
comes/V
to/T
buying/V
and/C
selling/V
shares/N
,/,
Westridge/N
Capital/N
Management/N
Inc./N
takes/V
a/D
back/J
seat/N
to/T
no/D
one/P
./.
###/###
Every/D
dollar/N
's/P
worth/N
of/I
stock/N
in/I
the/D
Los/N
Angeles/N
money/N
manager/N
's/P
portfolio/N
is/V
traded/V
seven/C
or/C
eight/C
times/N
a/D
year/N
,/,
the/D
firm/N
estimates/V
./.
###/###
That/D
makes/V
it/P
the/D
most/R
active/J
trader/N
among/I
all/D
the/D
nation/N
's/P
investment/N
advisers/N
,/,
according/V
to/T
Securities/N
and/C
Exchange/N
Commission/N
filings/N
./.
###/###
But/C
wait/V
a/D
second/N
./.
###/###
Westridge/N
Capital/N
is/V
an/D
index/N
fund/N
--/:
the/D
type/N
of/I
stolid/J
long-term/J
investor/N
whose/W
goal/N
is/V
to/T
be/V
nothing/N
more/J
than/I
average/J
./.
###/###
Westridge/N
Capital/N
's/P
frenetic/J
trading/N
reflects/V
the/D
changes/N
sweeping/V
through/I
the/D
previously/R
sleepy/J
world/N
of/I
indexing/N
./.
###/###
Indexing/N
for/I
the/D
most/J
part/N
has/V
involved/V
simply/R
buying/V
and/C
then/R
holding/V
stocks/N
in/I
the/D
correct/J
mix/N
to/T
mirror/V
a/D
stock/N
market/N
barometer/N
,/,
such/J
as/I
Standard/N
&/C
Poor/N
's/P
500-stock/J
index/N
,/,
and/C
match/V
its/P
performance/N
./.
###/###
Institutional/J
investors/N
have/V
poured/V
$/$
210/C
billion/C
into/I
stock/N
and/C
bond/N
indexing/N
as/I
a/D
cheap/J
and/C
easy/J
form/N
of/I
investment/N
management/N
that/W
promises/V
to/T
post/V
average/J
market/N
returns/N
./.
###/###
These/D
big/J
investors/N
have/V
flocked/V
to/T
indexing/N
because/I
relatively/R
few/J
``/`
active/J
''/'
stock/N
pickers/N
have/V
been/V
able/J
to/T
consistently/R
match/V
the/D
returns/N
of/I
the/D
S&P/N
500/C
or/C
other/J
bellwethers/N
,/,
much/R
less/R
beat/V
it/P
./.
###/###
And/C
the/D
fees/N
investors/N
pay/V
for/I
indexing/N
run/V
a/D
few/J
pennies/N
for/I
each/D
$/$
100/C
of/I
assets/N
--/:
a/D
fraction/N
of/I
the/D
cost/N
of/I
active/J
managers/N
./.
###/###
That/D
's/V
because/I
computers/N
do/V
most/J
of/I
the/D
work/N
,/,
and/C
low/J
trading/N
activity/N
keeps/V
a/D
lid/N
on/I
commission/N
costs/N
./.
###/###
But/C
today/N
,/,
indexing/N
is/V
moving/V
from/I
a/D
passive/N
investment/N
strategy/N
to/T
an/D
increasingly/R
active/J
one/C
./.
###/###
Because/I
index-fund/J
managers/N
are/V
no/R
longer/R
satisfied/V
with/I
merely/R
being/V
average/J
,/,
they/P
have/V
developed/V
``/`
enhanced/V
''/'
indexing/N
strategies/N
that/W
are/V
intended/V
to/T
outperform/J
the/D
market/N
as/R
much/J
as/I
three/C
percentage/N
points/N
./.
###/###
``/`
Indexing/N
has/V
been/V
the/D
most/R
single/J
successful/J
investment/N
concept/N
in/I
the/D
last/J
decade/N
,/,
but/C
the/D
index/N
money/N
has/V
been/V
just/R
sort/N
of/I
sitting/V
there/R
,/,
''/'
says/V
Seth/N
M./N
Lynn/N
,/,
president/N
of/I
Axe/N
Core/N
Investors/N
Inc./N
,/,
an/D
indexer/N
based/V
in/I
Tarrytown/N
,/,
N.Y/N
./.
###/###
``/`
Now/R
the/D
interest/N
is/V
in/I
what/W
else/R
can/M
I/P
do/V
with/I
that/D
money/N
./.
''/'
###/###
Among/I
the/D
souped-up/J
indexing/N
strategies/N
:/:
Indexed/J
portfolios/N
can/M
be/V
built/V
around/I
thousands/N
of/I
stocks/N
,/,
or/C
just/R
a/D
few/J
dozen/N
,/,
rather/R
than/I
being/V
restricted/V
to/T
the/D
S&P/N
500/C
companies/N
./.
###/###
They/P
can/M
ignore/V
the/D
S&P/N
500/C
stocks/N
altogether/R
and/C
focus/V
on/I
particular/J
types/N
of/I
stocks/N
,/,
such/J
as/I
smaller/J
companies/N
,/,
those/D
paying/V
high/J
dividends/N
or/C
companies/N
in/I
a/D
particular/J
industry/N
,/,
state/N
or/C
country/N
./.
###/###
With/I
today/N
's/P
computer-driven/J
program/N
trading/N
techniques/N
,/,
index/N
funds/N
can/M
trade/V
back/R
and/C
forth/R
between/I
stock-index/J
futures/N
and/C
the/D
actual/J
stocks/N
making/V
up/R
indexes/N
such/J
as/I
the/D
S&P/N
500/C
./.
###/###
Futures/N
and/C
options/N
also/R
make/V
it/P
possible/J
to/T
build/V
``/`
synthetic/J
''/'
index/N
funds/N
that/W
do/V
n't/R
actually/R
own/V
a/D
single/J
share/N
of/I
stock/N
,/,
but/C
can/M
produce/V
returns/N
that/W
match/V
or/C
exceed/V
the/D
broad/J
stock/N
market/N
./.
###/###
One/C
reason/N
for/I
these/D
hybrids/N
is/V
that/D
indexing/N
's/P
rapid/J
growth/N
is/V
slowing/V
,/,
particularly/R
for/I
those/D
``/`
plain/J
vanilla/N
''/'
funds/N
that/W
mirror/V
the/D
500/C
./.
###/###
``/`
There/E
is/V
n't/R
a/D
boatload/N
-LCB-/-
of/I
big/J
investors/N
-RCB-/-
out/R
there/R
still/R
waiting/V
to/T
get/V
into/I
indexing/N
,/,
''/'
says/V
P./N
James/N
Kartalia/N
,/,
vice/N
president/N
of/I
ANB/N
Investment/N
Management/N
Co./N
,/,
Chicago/N
,/,
which/W
offers/V
both/D
indexing/N
and/C
active/J
management/N
services/N
./.
###/###
After/I
tripling/V
in/I
size/N
in/I
the/D
past/J
five/C
years/N
,/,
index/N
funds/N
now/R
hold/V
about/R
20/C
%/N
of/I
the/D
stock/N
owned/V
by/I
pension/N
funds/N
./.
###/###
A/D
further/J
problem/N
is/V
razor-thin/J
profits/N
./.
###/###
Plain-vanilla/J
funds/N
have/V
become/V
so/R
commonplace/J
that/I
fees/N
they/P
can/M
charge/V
have/V
plunged/V
to/T
almost/R
nothing/N
,/,
and/C
in/I
some/D
cases/N
are/V
just/R
that/D
./.
###/###
To/T
land/V
customers/N
for/I
their/P
well-paying/J
stock/N
custodial/J
business/N
,/,
big/J
banks/N
sometimes/R
will/M
throw/V
in/R
basic/J
indexing/N
services/N
for/I
free/J
./.
###/###
``/`
It/P
's/V
like/I
getting/V
a/D
free/J
toaster/N
when/W
you/P
open/V
an/D
account/N
,/,
''/'
says/V
Axe/N
Core/N
's/P
Mr./N
Lynn/N
./.
###/###
As/I
a/D
result/N
,/,
indexers/N
have/V
been/V
looking/V
for/I
ways/N
to/T
give/V
investors/N
something/N
more/J
than/I
the/D
average/N
for/I
their/P
money/N
./.
###/###
And/C
many/J
have/V
been/V
successful/J
,/,
as/I
in/I
the/D
case/N
of/I
the/D
index/N
fund/N
operated/V
by/I
hyper-trader/N
Westridge/N
Capital/N
./.
###/###
Westridge/N
Capital/N
has/V
used/V
enhanced/J
indexing/N
techniques/N
to/T
beat/V
the/D
S&P/N
500/C
's/P
returns/N
by/I
2.5/C
to/T
3/C
percentage/N
points/N
over/I
the/D
past/J
four/C
years/N
,/,
with/I
the/D
same/J
risk/N
level/N
as/I
holding/V
the/D
S&P/N
500/C
stocks/N
,/,
according/V
to/T
James/N
Carder/N
,/,
the/D
firm/N
's/P
president/N
./.
###/###
Strategies/N
vary/V
for/I
Westridge/N
Capital/N
,/,
which/W
has/V
$/$
300/C
million/C
under/I
management/N
./.
###/###
The/D
firm/N
sometimes/R
buys/V
S&P/N
500/C
futures/N
when/W
they/P
are/V
selling/V
at/I
a/D
discount/N
to/T
the/D
actual/J
stocks/N
,/,
and/C
will/M
switch/V
back/R
and/C
forth/R
between/I
stocks/N
and/C
stock-index/J
futures/N
to/T
take/V
advantages/N
of/I
any/D
momentary/J
price/N
discrepencies/N
./.
###/###
Mr./N
Carder/N
also/R
goes/V
through/I
periods/N
when/W
he/P
buys/V
stocks/N
in/I
conjunction/N
with/I
options/N
to/T
boost/V
returns/N
and/C
protect/V
against/I
declines/N
./.
###/###
And/C
in/I
some/D
months/N
,/,
he/P
buys/V
stock-index/J
futures/N
and/C
not/R
stocks/N
at/I
all/D
./.
###/###
``/`
By/I
their/P
nature/N
,/,
our/P
trades/N
are/V
very/R
short-term/J
and/C
are/V
going/V
to/T
create/V
high/J
turnover/N
,/,
''/'
Mr./N
Carder/N
adds/V
./.
###/###
``/`
The/D
more/J
turnover/N
,/,
the/D
better/J
for/I
our/P
clients/N
./.
''/'
###/###
Big/J
indexer/N
Bankers/N
Trust/N
Co./N
also/R
uses/V
futures/N
in/I
a/D
strategy/N
that/I
on/I
average/N
has/V
added/V
one/C
percentage/N
point/N
to/T
its/P
enhanced/J
fund/N
's/P
returns/N
./.
###/###
J./N
Thomas/N
Allen/N
,/,
president/N
of/I
Pittsburgh-based/J
Advanced/N
Investment/N
Management/N
Inc./N
,/,
agrees/V
it/P
's/V
a/D
good/J
idea/N
to/T
jump/V
between/I
the/D
S&P/N
500/C
stocks/N
and/C
futures/N
./.
###/###
``/`
You/P
're/V
buying/V
the/D
S&P/N
,/,
and/C
you/P
always/R
want/V
to/T
hold/V
the/D
cheapest/J
form/N
of/I
it/P
,/,
''/'
he/P
says/V
./.
###/###
But/C
some/D
indexers/N
make/V
little/J
or/C
no/D
use/N
of/I
futures/N
,/,
saying/V
that/I
these/D
instruments/N
present/V
added/V
risks/N
for/I
investors/N
./.
###/###
``/`
If/I
the/D
futures/N
markets/N
have/V
a/D
problem/N
,/,
then/R
those/D
products/N
could/M
have/V
a/D
problem/N
,/,
''/'
says/V
John/N
Zumbrunn/N
,/,
managing/V
director/N
of/I
Prudential/N
Insurance/N
Co./N
of/I
America/N
's/P
Investment/N
Index/N
Technologies/N
Inc./N
unit/N
./.
###/###
Prudential/N
currently/R
is/V
seeking/V
approval/N
to/T
offer/V
a/D
new/J
fund/N
offering/V
a/D
return/N
equal/J
to/T
the/D
S&P/N
500/C
index/N
plus/I
of/I
a/D
percentage/N
point/N
./.
###/###
An/D
added/V
feature/N
is/V
that/I
the/D
slighty/N
improved/V
return/N
would/M
be/V
guaranteed/V
by/I
Prudential/N
./.
###/###
There/E
are/V
many/J
other/J
strategies/N
to/T
bolster/V
the/D
returns/N
of/I
index/N
funds/N
./.
###/###
They/P
include/V
:/:
###/###
LIMITED/J
RISK/N
FUNDS/N
:/:
These/D
guarantee/V
protection/N
against/I
stock/N
market/N
declines/N
while/I
still/R
passing/V
along/R
most/J
gains/N
./.
###/###
Here/R
a/D
fund/N
may/M
promise/V
to/T
pay/V
back/R
,/,
say/V
,/,
$/$
95/C
of/I
every/D
$/$
100/C
invested/V
for/I
a/D
year/N
,/,
even/R
if/I
the/D
market/N
goes/V
much/R
lower/R
./.
###/###
The/D
fund/N
could/M
invest/V
$/$
87/C
for/I
one/C
year/N
in/I
Treasury/N
bills/N
yielding/V
8/C
%/N
to/T
return/V
the/D
guaranteed/V
$/$
95/C
./.
###/###
That/D
leaves/V
$/$
13/C
,/,
which/W
could/M
be/V
used/V
to/T
buy/V
S&P/N
500/C
options/N
that/W
will/M
nearly/R
match/V
any/D
gain/N
in/I
the/D
S&P/N
index/N
./.
###/###
MANAGER/N
REPLICATION/N
FUNDS/N
:/:
Say/V
a/D
big/J
investor/N
is/V
interested/J
in/I
growth/N
stocks/N
./.
###/###
Instead/R
of/I
hiring/V
one/C
of/I
the/D
many/J
active/J
managers/N
specializing/V
in/I
growth/N
stocks/N
,/,
indexers/N
can/M
design/V
a/D
portfolio/N
around/I
the/D
same/J
stocks/N
;/:
the/D
portfolio/N
will/M
be/V
maintained/V
by/I
computer/N
,/,
reducing/V
both/D
fees/N
and/C
,/,
in/I
theory/N
,/,
risk/N
-LRB-/-
because/I
of/I
the/D
large/J
number/N
of/I
stocks/N
-RRB-/-
./.
###/###
``/`
We/P
see/V
a/D
lot/N
of/I
interest/N
in/I
those/D
kind/N
of/I
things/N
,/,
''/'
says/V
Frank/N
Salerno/N
,/,
a/D
vice/N
president/N
of/I
Bankers/N
Trust/N
./.
###/###
``/`
People/N
comfortable/J
with/I
the/D
passive/J
approach/N
are/V
using/V
them/P
for/I
other/J
strategies/N
./.
''/'
###/###
TILT/N
FUNDS/N
:/:
This/D
is/V
an/D
index/N
fund/N
with/I
a/D
bet/N
./.
###/###
Instead/R
of/I
replicating/V
the/D
S&P/N
500/C
or/C
some/D
other/J
index/N
exactly/R
,/,
some/D
stocks/N
are/V
overweighted/V
or/C
underweighted/V
in/I
the/D
portfolio/N
./.
###/###
One/C
simple/J
approach/N
is/V
to/T
exclude/V
S&P/N
500/C
companies/N
considered/V
bankruptcy/N
candidates/N
;/:
this/D
can/M
avoid/V
weak/J
sisters/N
,/,
but/C
also/R
can/M
hurt/V
when/W
a/D
company/N
like/I
Chrysler/N
Corp./N
rebounds/N
./.
###/###
Another/D
approach/N
:/:
An/D
investor/N
with/I
$/$
100/C
million/C
might/M
use/V
$/$
75/C
million/C
to/T
buy/V
the/D
S&P/N
500/C
index/N
and/C
spend/V
the/D
other/J
$/$
25/C
million/C
on/I
a/D
favorite/J
group/N
of/I
stocks/N
./.
###/###
SPECIALIZED/J
FUNDS/N
:/:
Indexes/N
can/M
be/V
constructed/V
to/T
serve/V
social/J
goals/N
,/,
such/J
as/I
eliminating/V
the/D
stocks/N
of/I
companies/N
doing/V
business/N
in/I
South/N
Africa/N
./.
###/###
Other/J
funds/N
have/V
been/V
designed/V
to/T
concentrate/V
on/I
stocks/N
in/I
a/D
geographic/J
area/N
in/I
order/N
to/T
encourage/V
local/J
investment/N
./.
###/###
Pennsylvania/N
State/N
Employees/N
Retirement/N
System/N
,/,
for/I
example/N
,/,
has/V
about/R
$/$
130/C
million/C
invested/V
in/I
a/D
fund/N
of/I
244/C
companies/N
that/W
are/V
either/D
Pennsylvania-based/J
or/C
have/V
25/C
%/N
of/I
their/P
work/N
forces/N
in/I
the/D
state/N
./.
###/###
Short/J
interest/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
declined/V
for/I
the/D
second/J
consecutive/J
month/N
,/,
this/D
time/N
4.2/C
%/N
,/,
while/I
the/D
American/N
Stock/N
Exchange/N
reported/V
its/P
third/J
consecutive/J
record/N
month/N
of/I
short/J
interest/N
./.
###/###
The/D
Big/N
Board/N
reported/V
that/D
short/J
interest/N
dropped/V
to/T
523,920,214/C
shares/N
as/I
of/I
Oct./N
13/C
from/I
547,347,585/C
shares/N
in/I
mid-September/N
./.
###/###
Amex/N
short/J
interest/N
climbed/V
3/C
%/N
to/T
53,496,665/C
shares/N
from/I
51,911,566/C
shares/N
./.
###/###
For/I
the/D
year-earlier/J
month/N
,/,
the/D
Big/N
Board/N
reported/V
461,539,056/C
shares/N
,/,
indicating/V
a/D
13.5/C
%/N
year-to-year/J
rise/N
,/,
while/I
the/D
Amex/N
reported/V
36,015,194/C
shares/N
,/,
a/D
48/C
%/N
leap/N
./.
###/###
Amex/N
short/J
interest/N
has/V
been/V
heading/V
upward/R
since/I
mid-December/N
,/,
with/I
increases/N
in/I
each/D
month/N
since/I
then/R
except/I
at/I
mid-July/N
./.
###/###
Traders/N
who/W
sell/V
short/J
borrow/V
stock/N
and/C
sell/V
it/P
,/,
betting/V
that/I
the/D
stock/N
's/P
price/N
will/M
decline/V
and/C
that/I
they/P
can/M
buy/V
the/D
shares/N
back/R
later/R
at/I
a/D
lower/J
price/N
for/I
return/N
to/T
the/D
lender/N
./.
###/###
Short/J
interest/N
is/V
the/D
number/N
of/I
shares/N
that/W
have/V
n't/R
yet/R
been/V
purchased/V
for/I
return/N
to/T
lenders/N
./.
###/###
Although/I
a/D
substantial/J
short/J
position/N
reflects/V
heavy/J
speculation/N
that/I
a/D
stock/N
's/P
price/N
will/M
decline/V
,/,
some/D
investors/N
consider/V
an/D
increase/N
in/I
short/J
interest/N
bullish/J
because/I
the/D
borrowed/V
shares/N
eventually/R
must/M
be/V
bought/V
back/R
./.
###/###
Fluctuation/N
in/I
short/J
interest/N
of/I
certain/J
stocks/N
also/R
may/M
be/V
caused/V
partly/R
by/I
arbitraging/V
./.
###/###
The/D
figures/N
occasionally/R
include/V
incomplete/J
transactions/N
in/I
restricted/J
stock/N
./.
###/###
The/D
level/N
of/I
negative/J
sentiment/N
measured/V
by/I
the/D
Big/N
Board/N
short/J
interest/N
ratio/N
slipped/V
to/T
3.36/C
from/I
last/J
month/N
's/P
3.38/C
./.
###/###
The/D
ratio/N
is/V
the/D
number/N
of/I
trading/N
days/N
,/,
at/I
the/D
exchange/N
's/P
average/J
trading/N
volume/N
,/,
that/W
would/M
be/V
required/V
to/T
convert/V
the/D
total/J
short/J
interest/N
position/N
./.
###/###
Some/D
analysts/N
suggest/V
,/,
however/R
,/,
that/I
the/D
ratio/N
has/V
weakened/V
in/I
value/N
as/I
an/D
indicator/N
because/I
options/N
and/C
other/J
products/N
can/M
be/V
used/V
to/T
hedge/V
short/J
positions/N
./.
###/###
Varity/N
Corp./N
led/V
the/D
Big/N
Board/N
list/N
of/I
largest/J
short/J
volumes/N
with/I
12,822,563/C
shares/N
./.
###/###
Varity/N
has/V
proposed/V
to/T
acquire/V
K-H/N
Corp./N
,/,
consisting/V
of/I
the/D
auto/N
parts/N
division/N
and/C
some/D
debt/N
of/I
Fruehauf/N
Corp./N
,/,
for/I
$/$
577.3/C
million/C
of/I
cash/N
and/C
securities/N
./.
###/###
Chemical/N
Waste/N
Management/N
posted/V
the/D
biggest/J
increase/N
in/I
short/J
volume/N
on/I
the/D
New/N
York/N
exchange/N
,/,
up/R
3,383,477/C
shares/N
to/T
5,267,238/C
./.
###/###
Bristol-Myers/N
Squibb/N
Co./N
,/,
the/D
entity/N
formed/V
from/I
the/D
recent/J
acquisition/N
of/I
Squibb/N
Corp./N
by/I
Bristol-Myers/N
Co./N
,/,
logged/V
the/D
largest/J
volume/N
decline/N
,/,
7,592,988/C
shares/N
,/,
to/T
12,017,724/C
./.
###/###
Short/J
interest/N
in/I
International/N
Business/N
Machines/N
Corp./N
plunged/V
to/T
1,425,035/C
shares/N
from/I
2,387,226/C
shares/N
a/D
month/N
earlier/R
./.
###/###
Also/R
closely/R
watched/V
is/V
Exxon/N
Corp./N
,/,
where/W
short/J
interest/N
slid/V
to/T
4,469,167/C
shares/N
from/I
5,088,774/C
./.
###/###
On/I
a/D
percentage/N
basis/N
,/,
Germany/N
Fund/N
Inc./N
led/V
the/D
gainers/N
,/,
leaping/V
to/T
67,972/C
shares/N
from/I
three/C
shares/N
./.
###/###
TransCanada/N
PipeLines/N
Ltd./N
led/V
the/D
percentage/N
decliners/N
,/,
dropping/V
to/T
59/C
shares/N
from/I
183,467/C
./.
###/###
The/D
Amex/N
short/J
interest/N
volume/N
leader/N
again/R
was/V
Texas/N
Air/N
Corp./N
,/,
rising/V
to/T
3,820,634/C
shares/N
from/I
3,363,949/C
./.
###/###
Bolar/N
Pharmaceutical/N
Co./N
posted/V
the/D
largest/J
volume/N
increase/N
,/,
552,302/C
shares/N
,/,
to/T
2,157,656/C
./.
###/###
The/D
company/N
is/V
under/I
an/D
investigation/N
concerning/V
procedures/N
to/T
gain/V
Food/N
and/C
Drug/N
Administration/N
approval/N
of/I
generic/J
drugs/N
./.
###/###
Bolar/N
has/V
denied/V
any/D
wrongdoing/N
./.
###/###
The/D
largest/J
volume/N
drop/N
--/:
down/R
445,645/C
shares/N
to/T
141,903/C
--/:
came/V
in/I
shares/N
represented/V
by/I
B.A.T/N
Industries/N
PLC/N
's/P
American/J
depositary/N
receipts/N
./.
###/###
The/D
company/N
is/V
facing/V
a/D
takeover/N
proposal/N
from/I
the/D
financier/N
Sir/N
James/N
Goldsmith/N
./.
###/###
First/N
Iberian/N
Fund/N
led/V
the/D
percentage/N
increases/N
,/,
rising/V
to/T
73,100/C
shares/N
from/I
184/C
./.
###/###
Nelson/N
Holdings/N
International/N
Ltd./N
dropped/V
the/D
most/J
on/I
a/D
percentage/N
basis/N
,/,
to/T
1,000/C
shares/N
from/I
255,923/C
./.
###/###
The/D
adjacent/J
tables/N
show/V
the/D
Big/N
Board/N
and/C
Amex/N
issues/N
in/I
which/W
a/D
short/J
interest/N
position/N
of/I
at/I
least/J
100,000/C
shares/N
existed/V
as/I
of/I
mid-October/N
or/C
in/I
which/W
there/E
was/V
a/D
short/J
position/N
change/N
of/I
at/I
least/J
50,000/C
shares/N
since/I
mid-September/N
./.
###/###
Your/P
Oct./N
12/C
editorial/N
``/`
Pitiful/N
,/,
Helpless/N
Presidency/N
?/.
''/'
correctly/R
states/V
that/I
I/P
was/V
critical/J
of/I
the/D
Bush/N
administration/N
's/P
failure/N
to/T
have/V
any/D
plan/N
in/I
place/N
to/T
respond/V
in/I
a/D
timely/J
fashion/N
to/T
the/D
opportunities/N
to/T
oust/V
Manuel/N
Noriega/N
presented/V
by/I
the/D
attempted/V
military/J
coup/N
on/I
Oct./N
3/C
./.
###/###
You/P
are/V
absolutely/R
wrong/J
,/,
however/R
,/,
in/I
opining/V
that/I
this/D
position/N
is/V
some/D
kind/N
of/I
``/`
flip-flop/J
,/,
''/'
something/N
newly/R
arrived/V
at/I
as/I
a/D
result/N
of/I
reading/V
the/D
opinion/N
polls/N
./.
###/###
My/P
position/N
is/V
one/C
founded/V
on/I
both/D
the/D
facts/N
and/C
the/D
law/N
./.
###/###
Although/I
you/P
may/M
have/V
forgotten/V
,/,
public/J
opinion/N
about/I
Gen./N
Noriega/N
is/V
where/W
it/P
is/V
in/I
large/J
measure/N
because/I
of/I
my/P
investigation/N
of/I
his/P
years/N
of/I
involvement/N
in/I
narcotics/N
smuggling/N
-LRB-/-
and/C
simultaneous/J
work/N
as/I
a/D
U.S./N
operative/N
-RRB-/-
./.
###/###
The/D
public/N
made/V
up/R
its/P
mind/N
about/I
Gen./N
Noriega/N
largely/R
as/I
a/D
result/N
of/I
the/D
hearings/N
I/P
chaired/V
in/I
the/D
Subcommittee/N
on/I
Terrorism/N
and/C
Narcotics/N
of/I
the/D
Foreign/N
Relations/N
Committee/N
on/I
Feb./N
8/C
,/,
9/C
,/,
10/C
and/C
11/C
,/,
1988/C
,/,
and/C
again/R
on/I
April/N
4/C
,/,
1988/C
./.
###/###
It/P
was/V
during/I
those/D
hearings/N
that/I
the/D
nation/N
first/R
learned/V
the/D
breadth/N
and/C
depth/N
of/I
Gen./N
Noriega/N
's/P
criminality/N
,/,
and/C
of/I
his/P
enduring/V
relationships/N
with/I
a/D
variety/N
of/I
U.S./N
government/N
agencies/N
./.
###/###
Those/D
hearings/N
also/R
highlighted/V
how/W
Gen./N
Noriega/N
was/V
able/J
to/T
use/V
his/P
relationships/N
with/I
these/D
agencies/N
to/T
delay/V
U.S./N
action/N
against/I
him/P
,/,
and/C
to/T
exploit/V
the/D
administration/N
's/P
obsession/N
with/I
overthrowing/V
the/D
Sandinistas/N
to/T
protect/V
his/P
own/J
drug-dealing/N
./.
###/###
As/I
former/J
Ambassador/N
to/T
Costa/N
Rica/N
Francis/N
J./N
McNeil/N
testified/V
before/I
the/D
subcommittee/N
,/,
the/D
Reagan/N
administration/N
knew/V
that/I
Gen./N
Noriega/N
was/V
involved/V
with/I
narcotics/N
,/,
but/C
made/V
a/D
decision/N
in/I
the/D
summer/N
of/I
1986/C
``/`
to/T
put/V
Gen./N
Noriega/N
on/I
the/D
shelf/N
until/I
Nicaragua/N
was/V
settled/V
./.
''/'
###/###
As/I
the/D
report/N
issued/V
by/I
the/D
subcommittee/N
concluded/V
,/,
``/`
Our/P
government/N
did/V
nothing/N
regarding/V
Gen./N
Noriega/N
's/P
drug/N
business/N
and/C
substantial/J
criminal/J
involvement/N
because/I
the/D
first/J
priority/N
was/V
the/D
Contra/N
war/N
./.
###/###
This/D
decision/N
resulted/V
in/I
at/I
least/J
some/D
drugs/N
entering/V
the/D
United/N
States/N
as/I
a/D
hidden/J
cost/N
of/I
the/D
war/N
./.
''/'
###/###
Unfortunately/R
,/,
this/D
problem/N
continued/V
even/R
after/R
Gen./N
Noriega/N
's/P
indictment/N
./.
###/###
Throughout/I
1988/C
and/C
this/D
year/N
,/,
I/P
and/C
others/N
in/I
Congress/N
have/V
pressed/V
the/D
U.S./N
to/T
develop/V
a/D
plan/N
for/I
pushing/V
this/D
``/`
narcokleptocrat/N
''/'
out/I
of/I
Panama/N
./.
###/###
Regrettably/R
,/,
two/C
administrations/N
in/I
a/D
row/N
have/V
been/V
unwilling/J
and/C
unable/J
to/T
develop/V
any/D
plan/N
,/,
military/J
or/C
economic/J
,/,
for/I
supporting/V
the/D
Panamanian/J
people/N
in/I
their/P
attempts/N
to/T
restore/V
democracy/N
./.
###/###
Sen./N
John/N
Kerry/N
-LRB-/-
D./N
,/,
Mass/N
./.
-RRB-/-
###/###
For/I
Vietnamese/N
,/,
these/D
are/V
tricky/J
,/,
often/R
treacherous/J
,/,
times/N
./.
###/###
After/I
years/N
of/I
hesitation/N
,/,
economic/J
and/C
political/J
reform/N
was/V
embraced/V
at/I
the/D
end/N
of/I
1986/C
,/,
but/C
ringing/V
declarations/N
have/V
yet/R
to/T
be/V
translated/V
into/I
much/J
action/N
./.
###/###
Vietnam/N
is/V
finding/V
that/I
turning/V
a/D
stagnant/J
socialist/J
order/N
into/I
a/D
dynamic/J
free/J
market/N
does/V
n't/R
come/V
easy/R
./.
###/###
Here/R
is/V
how/W
three/C
Vietnamese/N
are/V
coping/V
with/I
change/N
:/:
###/###
The/D
Tire/N
King/N
###/###
Nguyen/N
Van/N
Chan/N
is/V
living/V
proof/N
that/I
old/J
ways/N
die/V
hard/J
./.
###/###
Mr./N
Chan/N
used/V
to/T
be/V
an/D
oddity/N
in/I
Hanoi/N
:/:
a/D
private/J
entrepreneur/N
./.
###/###
His/P
business/N
success/N
made/V
him/P
an/D
official/J
target/N
in/I
pre-reform/J
days/N
./.
###/###
Mr./N
Chan/N
,/,
now/R
64/C
years/N
old/J
,/,
invented/V
a/D
fountain/N
pen/N
he/P
and/C
his/P
family/N
produced/V
from/I
plastic/J
waste/N
./.
###/###
Later/R
,/,
he/P
marketed/V
glue/N
./.
###/###
Both/D
products/N
were/V
immensely/R
popular/J
./.
###/###
For/I
his/P
troubles/N
,/,
Mr./N
Chan/N
was/V
jailed/V
three/C
times/N
between/I
1960/C
and/C
1974/C
./.
###/###
Though/I
his/P
operation/N
was/V
registered/V
and/C
used/V
only/J
scrap/N
,/,
he/P
was/V
accused/V
of/I
conducting/V
illegal/J
business/N
and/C
possessing/V
illegal/J
materials/N
./.
###/###
Once/R
he/P
was/V
held/V
for/I
three/C
months/N
without/I
being/V
charged/V
./.
###/###
Things/N
were/V
supposed/V
to/T
change/V
when/W
Vietnam/N
's/P
economic/J
reforms/N
gathered/V
pace/N
,/,
and/C
for/I
awhile/R
they/P
did/V
./.
###/###
After/I
years/N
of/I
experimenting/V
,/,
Mr./N
Chan/N
produced/V
a/D
heavy-duty/J
bicycle/N
tire/N
that/W
outlasted/V
its/P
state-produced/J
rival/N
./.
###/###
By/I
1982/C
,/,
he/P
was/V
selling/V
thousands/N
of/I
tires/N
./.
###/###
Newspapers/N
published/V
articles/N
about/I
him/P
,/,
and/C
he/P
was/V
hailed/V
as/I
``/`
the/D
tire/N
king/N
./.
''/'
###/###
His/P
efforts/N
earned/V
a/D
gold/J
medal/N
at/I
a/D
national/J
exhibition/N
--/:
and/C
attracted/V
renewed/V
attention/N
from/I
local/J
authorities/N
./.
###/###
District/N
police/N
in/I
1983/C
descended/V
on/I
his/P
suburban/J
home/N
,/,
which/W
he/P
and/C
his/P
large/J
family/N
used/V
as/I
both/D
residence/N
and/C
factory/N
,/,
and/C
demanded/V
proof/N
the/D
house/N
and/C
equipment/N
were/V
his/P
./.
###/###
He/P
produced/V
it/P
./.
###/###
``/`
That/D
was/V
the/D
first/J
time/N
they/P
lost/V
and/C
I/P
won/V
,/,
''/'
he/P
says/V
./.
###/###
He/P
was/V
further/R
questioned/V
to/T
determine/V
if/I
he/P
was/V
``/`
a/D
real/J
working/V
man/N
or/C
an/D
exploiter/N
./.
''/'
###/###
Says/V
Mr./N
Chan/N
:/:
``/`
When/W
I/P
showed/V
it/P
was/V
from/I
my/P
own/J
brain/N
,/,
they/P
lost/V
for/I
the/D
second/J
time/N
./.
''/'
###/###
But/C
a/D
few/J
days/N
later/R
the/D
police/N
accused/V
him/P
of/I
stealing/V
electricity/N
,/,
acquiring/V
rubber/N
without/I
permission/N
and/C
buying/V
stolen/V
property/N
./.
###/###
Warned/V
he/P
was/V
to/T
be/V
jailed/V
again/R
,/,
he/P
fled/V
to/T
the/D
countryside/N
./.
###/###
His/P
family/N
was/V
given/V
three/C
hours/N
to/T
leave/V
before/R
the/D
house/N
and/C
contents/N
were/V
confiscated/V
./.
###/###
With/I
only/R
the/D
clothes/N
they/P
were/V
wearing/V
,/,
family/N
members/N
moved/V
to/T
a/D
home/N
owned/V
by/I
one/C
of/I
Mr./N
Chan/N
's/P
sons/N
./.
###/###
After/I
six/C
months/N
on/I
the/D
run/N
,/,
Mr./N
Chan/N
learned/V
the/D
order/N
for/I
his/P
arrest/N
had/V
been/V
canceled/V
./.
###/###
He/P
rejoined/V
his/P
family/N
in/I
January/N
1984/C
and/C
began/V
the/D
long/J
struggle/N
for/I
justice/N
,/,
pressing/V
everyone/N
from/I
Hanoi/N
municipal/J
officials/N
to/T
National/N
Assembly/N
deputies/N
for/I
restoration/N
of/I
his/P
rights/N
./.
###/###
He/P
and/C
his/P
family/N
kept/V
afloat/R
by/I
repairing/V
bicycles/N
,/,
selling/V
fruit/N
and/C
doing/V
odd/J
jobs/N
./.
###/###
Mr./N
Chan/N
achieved/V
a/D
breakthrough/N
in/I
1987/C
--/:
and/C
became/V
a/D
minor/J
celebrity/N
again/R
--/:
when/W
his/P
story/N
was/V
published/V
in/I
a/D
weekly/J
newspaper/N
./.
###/###
In/I
1988/C
,/,
18/C
months/N
after/R
the/D
sixth/J
congress/N
formally/R
endorsed/V
family-run/J
private/J
enterprise/N
,/,
district/N
authorities/N
allowed/V
Mr./N
Chan/N
to/T
resume/V
work/N
./.
###/###
By/I
late/J
last/J
year/N
he/P
was/V
invited/V
back/R
as/I
``/`
the/D
tire/N
king/N
''/'
to/T
display/V
his/P
products/N
at/I
a/D
national/J
exhibition/N
./.
###/###
National/J
leaders/N
stopped/V
by/I
his/P
stand/N
to/T
commend/V
his/P
achievements/N
./.
###/###
Mr./N
Chan/N
now/R
produces/V
1,000/C
bicycle/N
and/C
motorbike/N
tires/V
a/D
month/N
and/C
1,000/C
tins/N
of/I
tire-patching/J
glue/N
in/I
the/D
son/N
's/P
small/J
house/N
./.
###/###
Eighteen/C
people/N
pack/V
the/D
house/N
's/P
two/C
rooms/N
--/:
the/D
Chans/N
,/,
four/C
of/I
their/P
10/C
children/N
with/I
spouses/N
,/,
and/C
eight/C
of/I
22/C
grandchildren/N
./.
###/###
Most/J
sleep/V
on/I
the/D
floor/N
./.
###/###
Come/V
daybreak/N
,/,
eight/C
family/N
members/N
and/C
two/C
other/J
workers/N
unroll/V
a/D
sheet/N
of/I
raw/J
rubber/N
that/W
covers/V
the/D
floor/N
of/I
the/D
house/N
and/C
spills/V
out/I
onto/I
the/D
street/N
./.
###/###
The/D
primitive/J
operations/N
also/R
burst/V
out/I
the/D
back/J
door/N
into/I
a/D
small/J
courtyard/N
,/,
where/W
an/D
ancient/J
press/N
squeezes/V
rubber/N
solution/N
into/I
a/D
flat/J
strip/N
and/C
newly/R
made/V
tires/N
are/V
cooled/V
in/I
a/D
bathtub/N
filled/V
with/I
water/N
./.
###/###
Mr./N
Chan/N
talks/V
optimistically/R
of/I
expanding/V
,/,
maybe/R
even/R
moving/V
into/I
the/D
import-export/J
field/N
./.
###/###
First/R
,/,
however/R
,/,
he/P
has/V
unfinished/J
business/N
./.
###/###
When/W
district/N
authorities/N
allowed/V
him/P
to/T
resume/V
manufacturing/V
,/,
they/P
released/V
only/R
one/C
of/I
his/P
machines/N
./.
###/###
They/P
did/V
n't/R
return/V
the/D
rubber/N
stocks/N
that/W
represent/V
his/P
capital/N
./.
###/###
Nor/C
did/V
they/P
return/V
his/P
house/N
and/C
contents/N
,/,
which/W
he/P
values/V
at/I
about/R
$/$
44,000/C
./.
###/###
He/P
wants/V
to/T
recover/V
more/J
than/I
just/R
his/P
property/N
,/,
though/R
./.
###/###
``/`
I/P
want/V
my/P
dignity/N
back/R
,/,
''/'
he/P
says/V
./.
###/###
Nguyen/N
Ngoc/N
seemed/V
an/D
obvious/J
choice/N
when/W
the/D
Vietnamese/N
Writers/N
Association/N
was/V
looking/V
for/I
a/D
new/J
editor/N
to/T
reform/V
its/P
weekly/J
newspaper/N
,/,
Van/N
Nghe/N
./.
###/###
After/I
the/D
sixth/J
congress/N
,/,
journalists/N
seized/V
the/D
opportunity/N
provided/V
by/I
the/D
liberalization/N
to/T
probe/V
previously/R
taboo/J
subjects/N
./.
###/###
Mr./N
Ngoc/N
,/,
57/C
years/N
old/J
,/,
had/V
solid/J
reformist/J
credentials/N
:/:
He/P
had/V
lost/V
his/P
official/J
position/N
in/I
the/D
association/N
in/I
he/P
early/R
1980s/N
because/I
he/P
questioned/V
the/D
intrusion/N
of/I
politics/N
into/I
literature/N
./.
###/###
Appointed/V
editor/N
in/I
chief/N
in/I
July/N
1987/C
,/,
Mr./N
Ngoc/N
rapidly/R
turned/V
the/D
staid/J
Van/N
Nghe/N
into/I
Vietnam/N
's/P
hottest/J
paper/N
./.
###/###
Circulation/N
soared/V
as/I
the/D
weekly/N
went/V
way/N
beyond/I
standard/J
literary/J
themes/N
to/T
cover/V
Vietnamese/J
society/N
and/C
its/P
ills/N
./.
###/###
Readers/N
were/V
electrified/V
by/I
the/D
paper/N
's/P
audacity/N
and/C
appalled/V
by/I
the/D
dark/J
side/N
of/I
life/N
it/P
uncovered/V
./.
###/###
One/C
article/N
recounted/V
a/D
decade-long/J
struggle/N
by/I
a/D
wounded/V
soldier/N
to/T
prove/V
,/,
officially/R
,/,
he/P
was/V
alive/J
./.
###/###
Another/D
described/V
how/W
tax-collection/J
officials/N
in/I
Thanh/N
Hoa/N
province/N
one/C
night/N
stormed/V
through/I
homes/N
and/C
confiscated/V
rice/N
from/I
starving/V
villagers/N
./.
###/###
The/D
newspaper/N
also/R
ran/V
a/D
series/N
of/I
controversial/J
short/J
stories/N
by/I
Nguyen/N
Huy/N
Thiep/N
,/,
a/D
former/J
history/N
teacher/N
,/,
who/W
stirred/V
debate/N
over/I
his/P
interpretation/N
of/I
Vietnamese/J
culture/N
and/C
took/V
a/D
thinly/R
veiled/V
swipe/N
at/I
writers/N
who/W
had/V
blocked/V
his/P
entry/N
into/I
their/P
official/J
association/N
./.
###/###
Van/N
Nghe/N
quickly/R
made/V
influential/J
enemies/N
./.
###/###
``/`
Those/D
who/W
manage/V
ideology/N
and/C
a/D
large/J
number/N
of/I
writers/N
reacted/V
badly/R
''/'
to/T
the/D
restyled/V
paper/N
,/,
says/V
Lai/N
Nguyen/N
An/N
,/,
a/D
literary/J
critic/N
./.
###/###
After/I
months/N
of/I
internal/J
rumblings/N
,/,
Mr./N
Ngoc/N
was/V
fired/V
last/J
December/N
./.
###/###
His/P
dismissal/N
triggered/V
a/D
furor/N
among/I
intellectuals/N
that/W
continues/V
today/N
./.
###/###
``/`
Under/I
Mr./N
Ngoc/N
,/,
Van/N
Nghe/N
protected/V
the/D
people/N
instead/R
of/I
the/D
government/N
,/,
''/'
says/V
Nguyen/N
Duy/N
,/,
a/D
poet/N
who/W
is/V
the/D
paper/N
's/P
bureau/N
chief/N
for/I
southern/J
Vietnam/N
./.
###/###
``/`
The/D
paper/N
reflected/V
the/D
truth/N
./.
###/###
For/I
the/D
leadership/N
,/,
that/W
was/V
too/R
painful/J
to/T
bear/V
./.
''/'
###/###
The/D
`/`
Billionaire/N
'/'
###/###
Nguyen/N
Thi/N
Thi/N
is/V
Vietnam/N
's/P
entrepreneur/N
of/I
the/D
1980s/C
./.
###/###
Her/P
challenge/N
is/V
to/T
keep/V
her/P
fledgling/N
empire/N
on/I
top/N
in/I
the/D
1990s/C
./.
###/###
Mrs./N
Thi/N
did/V
n't/R
wait/V
for/I
the/D
reforms/N
to/T
get/V
her/P
start/N
./.
###/###
She/P
charged/V
ahead/R
of/I
the/D
government/N
and/C
the/D
law/N
to/T
establish/V
Hochiminh/N
City/N
Food/N
Co./N
as/I
the/D
biggest/J
rice/N
dealer/N
in/I
the/D
country/N
./.
###/###
Her/P
success/N
,/,
which/W
included/V
alleviating/V
an/D
urban/J
food/N
shortage/N
in/I
the/D
early/J
1980s/C
,/,
helped/V
persuade/V
Hanoi/N
to/T
take/V
the/D
reform/N
path/N
./.
###/###
Her/P
story/N
is/V
becoming/V
part/N
of/I
local/J
folklore/N
./.
###/###
A/D
lifelong/J
revolutionary/N
with/I
little/J
education/N
who/W
fought/V
both/D
the/D
French/N
and/C
the/D
U.S.-backed/J
Saigon/N
regime/N
,/,
she/P
switched/V
effortlessly/R
to/T
commerce/N
after/I
the/D
war/N
./.
###/###
Her/P
instincts/N
were/V
capitalistic/J
,/,
despite/I
her/P
background/N
./.
###/###
As/I
she/P
rode/V
over/I
regulations/N
,/,
only/R
her/P
friendship/N
with/I
party/N
leaders/N
,/,
including/V
Nguyen/N
Van/N
Linh/N
,/,
then/R
Ho/N
Chi/N
Minh/N
City/N
party/N
secretary/N
,/,
kept/V
her/P
out/I
of/I
jail/N
./.
###/###
Following/V
Mr./N
Linh/N
's/P
appointment/N
as/I
secretary-general/J
of/I
the/D
party/N
at/I
the/D
sixth/J
congress/N
,/,
Mrs./N
Thi/N
has/V
become/V
the/D
darling/N
of/I
``/`
doi/F
moi/F
''/'
,/,
the/D
Vietnamese/J
version/N
of/I
perestroika/F
./.
###/###
The/D
authorities/N
have/V
steered/V
foreign/J
reporters/N
to/T
her/P
office/N
to/T
see/V
an/D
example/N
of/I
``/`
the/D
new/J
way/N
of/I
thinking/N
./.
''/'
###/###
Foreign/J
publications/N
have/V
responded/V
with/I
articles/N
declaring/V
her/P
Vietnam/N
's/P
richest/J
woman/N
./.
###/###
``/`
Some/D
people/N
call/V
me/P
the/D
communist/J
billionaire/N
,/,
''/'
she/P
has/V
told/V
visitors/N
./.
###/###
Actually/R
,/,
67-year-old/J
Mrs./N
Thi/N
is/V
about/R
as/R
poor/J
as/I
almost/R
everyone/N
else/R
in/I
this/D
impoverished/J
land/N
./.
###/###
She/P
has/V
indeed/R
turned/V
Hochiminh/N
City/N
Food/N
into/I
a/D
budding/V
conglomerate/N
,/,
but/C
the/D
company/N
itself/P
remains/V
state-owned/J
./.
###/###
She/P
manages/V
it/P
with/I
the/D
title/N
of/I
general-director/N
./.
###/###
The/D
heart/N
of/I
the/D
business/N
is/V
the/D
purchase/N
of/I
rice/N
and/C
other/J
commodities/N
,/,
such/J
as/I
corn/N
and/C
coffee/N
,/,
from/I
farmers/N
in/I
the/D
south/N
,/,
paying/V
with/I
fertilizer/N
,/,
farm/N
tools/N
and/C
other/J
items/N
./.
###/###
Last/J
year/N
,/,
Hochiminh/N
City/N
Food/N
says/V
it/P
bought/V
two/C
million/C
metric/J
tons/N
of/I
unhusked/V
rice/N
,/,
more/J
than/I
10/C
%/N
of/I
the/D
country/N
's/P
output/N
./.
###/###
The/D
company/N
operates/V
a/D
fleet/N
of/I
trucks/N
and/C
boats/N
to/T
transport/V
the/D
commodities/N
to/T
its/P
warehouses/N
./.
###/###
A/D
subsidiary/J
company/N
processes/V
commodities/N
into/I
foods/N
such/J
as/I
instant/N
noodles/N
that/W
are/V
sold/V
with/I
the/D
rice/N
through/I
a/D
vast/J
retail/J
network/N
./.
###/###
In/I
recent/J
years/N
,/,
Mrs./N
Thi/N
has/V
started/V
to/T
diversify/V
the/D
company/N
,/,
taking/V
a/D
20/C
%/N
stake/N
in/I
newly/R
established/V
,/,
partly/R
private/J
Industrial/N
and/C
Commercial/N
Bank/N
,/,
and/C
setting/V
up/R
Saigon/N
Petro/N
,/,
which/W
owns/V
and/C
operates/V
Vietnam/N
's/P
first/J
oil/N
refinery/N
./.
###/###
Mrs./N
Thi/N
says/V
Hochiminh/N
City/N
Food/N
last/J
year/N
increased/V
pretax/J
profit/N
60/C
%/N
to/T
the/D
equivalent/N
of/I
about/R
$/$
2.7/C
million/C
on/I
sales/N
of/I
$/$
150/C
million/C
./.
###/###
She/P
expects/V
both/D
revenue/N
and/C
profit/N
to/T
gain/V
this/D
year/N
./.
###/###
She/P
is/V
almost/R
cavalier/J
about/I
the/D
possibility/N
Vietnam/N
's/P
reforms/N
will/M
create/V
rivals/N
on/I
her/P
home/N
turf/N
./.
###/###
``/`
I/P
do/V
n't/R
mind/V
the/D
competition/N
inside/I
the/D
country/N
,/,
''/'
she/P
says/V
./.
###/###
``/`
I/P
am/V
only/R
afraid/J
that/I
with/I
Vietnam/N
's/P
poor-quality/J
products/N
we/P
ca/M
n't/R
compete/V
with/I
neighboring/J
countries/N
./.
###/###
The/D
earthquake/N
that/W
hit/V
the/D
San/N
Francisco/N
Bay/N
area/N
is/V
n't/R
likely/J
to/T
result/V
in/I
wholesale/J
downgrading/N
of/I
bond/N
ratings/N
,/,
officials/N
at/I
the/D
two/C
major/J
rating/N
agencies/N
said/V
./.
###/###
Standard/N
&/C
Poor/N
's/P
Corp./N
is/V
reviewing/V
debt/N
issued/V
by/I
12/C
California/N
counties/N
,/,
and/C
``/`
there/E
are/V
potential/J
isolated/V
problems/N
,/,
''/'
said/V
Hyman/N
Grossman/N
,/,
a/D
managing/V
director/N
./.
###/###
The/D
agency/N
is/V
preparing/V
a/D
report/N
,/,
to/T
be/V
issued/V
today/N
,/,
on/I
the/D
earthquake/N
's/P
impact/N
on/I
the/D
and/C
casualty-insurance/J
industry/N
./.
###/###
The/D
only/J
securities/N
so/R
far/R
to/T
be/V
singled/V
out/R
are/V
those/D
issued/V
by/I
Bay/N
View/N
Federal/N
Savings/N
&/C
Loan/N
./.
###/###
Moody/N
's/P
Investors/N
Service/N
Inc./N
said/V
it/P
is/V
reviewing/V
,/,
with/I
an/D
eye/N
toward/I
a/D
possible/J
downgrade/N
,/,
the/D
ratings/N
on/I
Bay/N
View/N
Federal/N
bonds/N
,/,
long-term/J
deposits/N
and/C
the/D
preferred-stock/J
rating/N
of/I
its/P
parent/N
company/N
,/,
Bay/N
View/N
Capital/N
Corp/N
./.
###/###
As/I
for/I
property/N
and/C
casualty/N
insurers/N
,/,
Moody/N
's/P
said/V
``/`
preliminary/J
estimates/N
suggest/V
that/I
losses/N
should/M
not/R
have/V
a/D
significant/J
impact/N
on/I
most/J
insurers/N
'/P
financial/J
condition/N
,/,
''/'
but/C
it/P
``/`
raises/V
concerns/N
about/I
potentially/R
substantial/J
risks/N
''/'
longer-term/J
./.
###/###
``/`
Losses/N
from/I
the/D
earthquake/N
are/V
expected/V
to/T
be/V
of/I
similar/J
magnitude/N
to/T
those/D
of/I
Hurricane/N
Hugo/N
,/,
''/'
according/V
to/T
Moody/N
's/P
./.
###/###
Your/P
Oct./N
5/C
editorial/N
``/`
A/D
Democratic/J
Tax/N
Cut/N
''/'
contained/V
an/D
error/N
./.
###/###
In/I
the/D
third/J
paragraph/N
it/P
referred/V
to/T
the/D
senators/N
seeking/V
loophole/N
suggestions/N
from/I
lobbyists/N
for/I
various/J
sectors/N
of/I
the/D
economy/N
./.
###/###
Among/I
them/P
,/,
``/`
banana/N
farmers/N
./.
''/'
###/###
The/D
only/J
significant/J
commercial/J
banana/N
farmers/N
in/I
the/D
U.S./N
are/V
in/I
Hawaii/N
./.
###/###
The/D
Hawaii/N
Banana/N
Industry/N
Association/N
,/,
to/T
which/W
nearly/R
all/D
of/I
them/P
belong/V
,/,
has/V
no/D
lobbyist/N
./.
###/###
Thomas/N
V./N
Reese/N
Sr/N
./.
###/###
Maui/N
Banana/N
Co/N
./.
###/###
Western/N
Digital/N
Corp./N
reported/V
a/D
net/J
loss/N
of/I
$/$
2.7/C
million/C
,/,
or/C
nine/C
cents/N
a/D
share/N
,/,
for/I
its/P
first/J
quarter/N
ended/V
Sept./N
30/C
,/,
citing/V
factors/N
as/R
varied/V
as/I
hurricane/N
damage/N
,/,
an/D
advance/N
in/I
graphics/N
technology/N
and/C
the/D
strengthening/J
dollar/N
./.
###/###
In/I
the/D
year-ago/J
period/N
,/,
the/D
company/N
earned/V
$/$
12.9/C
million/C
,/,
or/C
45/C
cents/N
a/D
share/N
,/,
on/I
sales/N
of/I
$/$
247/C
million/C
./.
###/###
Sales/N
for/I
the/D
just-ended/J
period/N
fell/V
to/T
about/R
$/$
225/C
million/C
,/,
the/D
maker/N
of/I
computer/N
parts/N
said/V
./.
###/###
Nonetheless/R
,/,
Chairman/N
Roger/N
W./N
Johnson/N
said/V
he/P
expects/V
the/D
company/N
to/T
be/V
profitable/J
in/I
the/D
current/J
quarter/N
./.
###/###
``/`
We/P
are/V
positioned/V
to/T
come/V
through/R
,/,
''/'
he/P
said/V
,/,
noting/V
that/I
the/D
company/N
's/P
backlog/N
was/V
up/R
from/I
the/D
previous/J
quarter/N
./.
###/###
In/I
its/P
second/J
quarter/N
last/J
year/N
,/,
Western/N
Digital/N
earned/V
$/$
12.7/C
million/C
,/,
or/C
44/C
cents/N
a/D
share/N
,/,
on/I
sales/N
of/I
$/$
258.4/C
million/C
./.
###/###
Mr./N
Johnson/N
said/V
Western/N
Digital/N
's/P
plant/N
in/I
Puerto/N
Rico/N
was/V
affected/V
by/I
Hurricane/N
Hugo/N
,/,
losing/V
three/C
days/N
'/P
production/N
because/I
of/I
the/D
storm/N
,/,
which/W
wrecked/V
much/J
of/I
the/D
Caribbean/J
island/N
's/P
infrastructure/N
./.
###/###
Although/I
the/D
plant/N
itself/P
was/V
n't/R
damaged/V
,/,
Mr./N
Johnson/N
said/V
millions/N
of/I
dollars/N
in/I
first-quarter/J
revenue/N
were/V
lost/V
./.
###/###
The/D
revenue/N
will/M
be/V
regained/V
in/I
the/D
current/J
period/N
,/,
he/P
added/V
./.
###/###
There/E
are/V
no/D
plans/N
to/T
initiate/V
a/D
common/J
stock/N
dividend/N
,/,
Mr./N
Johnson/N
said/V
,/,
explaining/V
that/I
the/D
board/N
continues/V
to/T
believe/V
shareholders/N
are/V
best/R
served/V
by/I
reinvesting/V
excess/J
cash/N
./.
###/###
Mr./N
Johnson/N
said/V
the/D
first-quarter/J
loss/N
also/R
heavily/R
reflected/V
a/D
rapid/J
change/N
in/I
graphics/N
technology/N
that/W
left/V
reseller/N
channels/N
with/I
too/R
many/J
of/I
the/D
old/J
computer/N
graphics/N
boards/N
and/C
too/R
few/J
new/J
monitors/N
compatible/J
with/I
the/D
new/J
graphics/N
boards/N
./.
###/###
Western/N
Digital/N
does/V
n't/R
make/V
the/D
monitors/N
./.
###/###
An/D
accelerating/J
move/N
by/I
personal/J
computer/N
manufacturers/N
'/P
to/T
include/V
advanced/V
graphics/N
capabilities/N
as/I
standard/J
equipment/N
further/R
dampened/V
reseller/J
purchases/N
of/I
Western/N
Digital/N
's/P
equipment/N
./.
###/###
``/`
The/D
other/J
areas/N
of/I
the/D
business/N
--/:
storage/N
and/C
microcomputers/N
--/:
were/V
very/R
good/J
,/,
''/'
Mr./N
Johnson/N
said/V
./.
###/###
He/P
said/V
Western/N
Digital/N
has/V
reacted/V
swiftly/R
to/T
the/D
movement/N
to/T
video/J
graphics/N
array/N
,/,
VGA/N
,/,
graphics/N
technology/N
from/I
the/D
old/J
enhanced/J
graphics/N
adapter/N
,/,
EGA/N
,/,
which/W
has/V
a/D
lower/J
resolution/N
standard/N
,/,
technology/N
and/C
now/R
is/V
one/C
of/I
the/D
leading/V
producers/N
of/I
these/D
newer/J
units/N
./.
###/###
Other/J
makers/N
of/I
video/J
controller/N
equipment/N
also/R
were/V
caught/V
in/I
the/D
EGA-VGA/J
shift/N
,/,
he/P
said/V
,/,
``/`
but/C
we/P
were/V
able/J
to/T
respond/V
much/R
more/R
quickly/R
./.
''/'
###/###
Still/R
,/,
Mr./N
Johnson/N
said/V
,/,
``/`
our/P
stock/N
is/V
grossly/R
undervalued/V
./.
''/'
###/###
He/P
said/V
the/D
company/N
has/V
cut/V
operating/N
expenses/N
by/I
about/R
10/C
%/N
over/I
the/D
last/J
few/J
quarters/N
,/,
while/I
maintaining/V
research/N
and/C
development/N
at/I
about/R
8/C
%/N
to/T
9/C
%/N
of/I
sales/N
./.
###/###
As/I
part/N
of/I
its/P
reorganization/N
this/D
week/N
,/,
Western/N
Digital/N
has/V
divided/V
its/P
business/N
into/I
two/C
segments/N
--/:
storage/N
products/N
,/,
including/V
controllers/N
and/C
disk/N
drives/N
;/:
and/C
microcomputer/J
products/N
,/,
which/W
include/V
graphics/N
,/,
communications/N
and/C
peripheral/J
control/N
chips/N
./.
###/###
Graphics/N
,/,
communications/N
and/C
peripheral/J
control/N
chips/N
were/V
combined/V
because/I
,/,
increasingly/R
,/,
multiple/J
functions/N
are/V
being/V
governed/V
by/I
a/D
single/J
chip/N
./.
###/###
Storage/N
,/,
which/W
includes/V
computer/N
controllers/N
and/C
3.5-inch/J
disk/N
drives/N
,/,
represents/V
nearly/R
two-thirds/N
of/I
the/D
company/N
's/P
business/N
./.
###/###
Disk/N
drives/N
,/,
which/W
allow/V
a/D
computer/N
to/T
access/V
its/P
memory/N
,/,
generated/V
38/C
%/N
more/J
revenue/N
in/I
the/D
most/R
recent/J
period/N
compared/V
with/I
the/D
fiscal/J
first/J
quarter/N
a/D
year/N
earlier/R
./.
###/###
Computer/N
parts/N
are/V
getting/V
ever/R
smaller/J
,/,
Mr./N
Johnson/N
said/V
,/,
a/D
shrinking/N
that/W
has/V
propelled/V
laptops/N
into/I
position/N
as/I
the/D
fastest-growing/J
segment/N
of/I
the/D
computer/N
business/N
./.
###/###
As/I
smaller/J
and/C
more/R
powerful/J
computers/N
continue/V
to/T
be/V
the/D
focus/N
of/I
the/D
industry/N
,/,
he/P
said/V
,/,
Western/N
Digital/N
is/V
strengthening/V
development/N
of/I
laptop/N
parts/N
./.
###/###
Next/J
year/N
Western/N
Digital/N
plans/V
to/T
consolidate/V
its/P
operations/N
from/I
11/C
buildings/N
in/I
Irvine/N
into/I
two/C
buildings/N
in/I
the/D
same/J
citya/N
new/J
headquarters/N
and/C
,/,
a/D
block/N
away/R
,/,
a/D
modern/J
$/$
100/C
million/C
silicon/N
wafer/N
fabrication/N
plant/N
./.
###/###
The/D
plan/N
will/M
help/V
the/D
company/N
in/I
its/P
existing/V
joint/N
manufacturing/N
agreement/N
with/I
AT&T/N
./.
###/###
About/I
half/N
of/I
Western/N
Digital/N
's/P
business/N
is/V
overseas/J
,/,
and/C
Mr./N
Johnson/N
expects/V
that/D
proportion/N
to/T
continue/V
./.
###/###
Plans/N
to/T
dissolve/V
many/J
of/I
the/D
trade/N
barriers/N
within/I
Europe/N
in/I
1992/C
creates/V
significant/J
opportunities/N
for/I
the/D
company/N
,/,
he/P
said/V
,/,
particularly/R
since/I
Western/N
Digital/N
already/R
manufactures/V
there/R
./.
###/###
Capitalizing/V
on/I
that/D
presence/N
,/,
Western/N
Digital/N
is/V
launching/V
a/D
major/J
effort/N
to/T
develop/V
the/D
embryonic/J
reseller/J
market/N
in/I
Europe/N
./.
###/###
Directors/N
of/I
state-owned/J
Banca/N
Nazionale/N
del/D
Lavoro/N
approved/V
a/D
two-step/J
capital-boosting/J
transaction/N
and/C
a/D
change/N
in/I
the/D
bank/N
's/P
rules/N
that/W
will/M
help/V
it/P
operate/V
more/R
like/I
a/D
private-sector/J
institution/N
./.
###/###
Until/I
now/R
,/,
BNL/N
's/P
top/J
managers/N
and/C
its/P
directors/N
have/V
been/V
appointed/V
by/I
a/D
Treasury/N
decree/N
./.
###/###
But/C
under/I
the/D
bank/N
's/P
proposed/V
statutes/N
,/,
an/D
assembly/N
of/I
shareholders/N
must/M
approve/V
board/N
members/N
./.
###/###
The/D
bank/N
's/P
chairman/N
and/C
director/N
general/N
,/,
who/W
also/R
sit/V
on/I
the/D
board/N
,/,
still/R
would/M
be/V
appointed/V
by/I
the/D
Treasury/N
./.
###/###
BNL/N
,/,
which/W
is/V
controlled/V
by/I
the/D
Italian/N
Treasury/N
,/,
was/V
rocked/V
by/I
the/D
disclosure/N
last/J
month/N
that/I
its/P
Atlanta/N
branch/N
extended/V
more/J
than/I
$/$
3/C
billion/C
in/I
unauthorized/J
credits/N
to/T
Iraq/N
./.
###/###
The/D
ensuing/V
scandal/N
,/,
in/I
which/W
the/D
bank/N
's/P
management/N
resigned/V
,/,
has/V
helped/V
renew/V
calls/N
for/I
privatization/N
,/,
or/C
at/I
least/J
an/D
overhaul/N
,/,
of/I
Italy/N
's/P
banking/N
system/N
,/,
which/W
is/V
about/R
80/C
%/N
state-controlled/J
./.
###/###
In/I
a/D
related/V
move/N
,/,
the/D
bank/N
also/R
proposed/V
that/I
board/N
representation/N
be/V
linked/V
more/R
closely/R
to/T
the/D
bank/N
's/P
new/J
shareholding/N
structure/N
./.
###/###
BNL/N
called/V
a/D
shareholders/N
'/P
assembly/N
meeting/N
in/I
December/N
to/T
vote/V
on/I
the/D
proposals/N
./.
###/###
BNL/N
has/V
about/R
75,000/C
nonvoting/J
shares/N
that/W
are/V
listed/V
on/I
the/D
Milan/N
Stock/N
Exchange/N
./.
###/###
The/D
shares/N
were/V
suspended/V
from/I
trading/N
following/V
disclosure/N
of/I
the/D
Atlanta/N
scandal/N
;/:
Consob/N
,/,
the/D
stock/N
exchange/N
regulatory/J
body/N
,/,
reportedly/R
will/M
decide/V
soon/R
whether/I
to/T
end/V
the/D
trading/N
suspension/N
./.
###/###
Switzerland/N
's/P
wholesale/J
price/N
index/N
increased/V
0.3/C
%/N
in/I
September/N
from/I
August/N
,/,
and/C
was/V
up/I
3.9/C
%/N
from/I
a/D
year/N
ago/R
,/,
marking/V
the/D
first/J
time/N
this/D
year/N
that/I
the/D
index/N
has/V
fallen/V
below/I
4/C
%/N
on/I
a/D
year-to-year/J
basis/N
,/,
the/D
government/N
reported/V
./.
###/###
The/D
government/N
attributed/V
the/D
0.3/C
%/N
month-to-month/J
rise/N
in/I
the/D
index/N
largely/R
to/T
higher/J
energy/N
prices/N
./.
###/###
In/I
August/N
,/,
the/D
index/N
was/V
up/R
0.2/C
%/N
from/I
the/D
previous/J
month/N
,/,
and/C
was/V
up/R
4.5/C
%/N
on/I
a/D
year-to-year/J
basis/N
./.
###/###
The/D
wholesale/J
price/N
index/N
,/,
based/V
on/I
1963/C
as/I
100/C
,/,
was/V
180.9/C
in/I
September/N
./.
###/###
American/N
Express/N
Co./N
posted/V
a/D
21/C
%/N
increase/N
in/I
third/J
quarter/N
net/J
income/N
despite/I
a/D
sharp/J
rise/N
in/I
reserves/N
for/I
Third/N
World/N
loans/N
at/I
its/P
banking/N
unit/N
./.
###/###
Aided/V
by/I
a/D
sharp/J
gain/N
in/I
its/P
travel/N
business/N
,/,
American/N
Express/N
said/V
net/J
rose/V
to/T
$/$
331.8/C
million/C
,/,
or/C
77/C
cents/N
a/D
share/N
,/,
from/I
$/$
273.9/C
million/C
,/,
or/C
64/C
cents/N
a/D
share/N
./.
###/###
The/D
year-earlier/J
figures/N
included/V
$/$
9.9/C
million/C
,/,
or/C
three/C
cents/N
a/D
share/N
,/,
in/I
income/N
from/I
discontinued/V
operations/N
./.
###/###
Income/N
from/I
continuing/V
operations/N
was/V
up/R
26/C
%/N
./.
###/###
Revenue/N
rose/V
24/C
%/N
to/T
$/$
6.5/C
billion/C
from/I
$/$
5.23/C
billion/C
./.
###/###
The/D
travel/N
,/,
investment/N
services/N
,/,
insurance/N
and/C
banking/N
concern/N
added/V
$/$
110/C
million/C
to/T
reserves/N
for/I
credit/N
losses/N
at/I
its/P
American/N
Express/N
Bank/N
unit/N
,/,
boosting/V
the/D
reserve/N
to/T
$/$
507/C
million/C
as/I
of/I
Sept./N
30/C
./.
###/###
The/D
bank/N
's/P
Third/N
World/N
debt/N
portfolio/N
totals/V
$/$
560/C
million/C
,/,
down/R
from/I
$/$
2.2/C
billion/C
at/I
the/D
end/N
of/I
1986/C
./.
###/###
The/D
bank/N
charged/V
off/R
$/$
53/C
million/C
in/I
loans/N
during/I
the/D
quarter/N
./.
###/###
At/I
the/D
American/N
Express/N
Travel/N
Related/N
Services/N
Co./N
unit/N
,/,
net/J
rose/V
17/C
%/N
to/T
a/D
record/N
$/$
240.8/C
million/C
on/I
a/D
19/C
%/N
revenue/N
increase/N
./.
###/###
The/D
figures/N
exclude/V
businesses/N
now/R
organized/V
as/I
American/N
Express/N
Information/N
Services/N
Co/N
./.
###/###
American/N
Express/N
card/N
charge/N
volume/N
rose/V
12/C
%/N
./.
###/###
Travel/N
sales/N
rose/V
11/C
%/N
,/,
led/V
by/I
gains/N
in/I
the/D
U.S/N
./.
###/###
At/I
IDS/N
Financial/N
Services/N
,/,
the/D
financial/J
planning/N
and/C
mutual/J
fund/N
unit/N
,/,
net/J
rose/V
19/C
%/N
to/T
a/D
record/N
$/$
47.6/C
million/C
on/I
a/D
33/C
%/N
revenue/N
gain/N
./.
###/###
Assets/N
owned/V
or/C
managed/V
rose/V
20/C
%/N
to/T
$/$
45/C
billion/C
,/,
and/C
mutual/J
fund/N
sales/N
rose/V
45/C
%/N
in/I
the/D
quarter/N
to/T
$/$
923/C
million/C
./.
###/###
American/N
Express/N
Bank/N
earnings/N
fell/V
50/C
%/N
to/T
$/$
21.3/C
million/C
from/I
$/$
42.5/C
million/C
despite/I
a/D
29/C
%/N
revenue/N
gain/N
./.
###/###
The/D
results/N
include/V
$/$
106/C
million/C
of/I
tax/N
benefits/N
associated/V
with/I
previous/J
years/N
'/P
Third/J
World/N
loan/N
activity/N
,/,
compared/V
with/I
$/$
15/C
million/C
a/D
year/N
earlier/R
./.
###/###
Profit/N
rose/V
38/C
%/N
at/I
American/N
Express/N
Information/N
Services/N
to/T
$/$
21.6/C
million/C
./.
###/###
Shearson/N
Lehman/N
Hutton/N
Holdings/N
Inc./N
,/,
as/R
previously/R
reported/V
,/,
had/V
net/J
of/I
$/$
65.9/C
million/C
,/,
reversing/V
a/D
$/$
3.5/C
million/C
loss/N
a/D
year/N
earlier/R
;/:
its/P
latest/J
results/N
include/V
a/D
$/$
37/C
million/C
gain/N
from/I
the/D
sale/N
of/I
an/D
institutional/J
money/N
management/N
business/N
./.
###/###
American/N
Express/N
's/P
share/N
of/I
Shearson/N
's/P
earnings/N
was/V
$/$
41/C
million/C
,/,
after/R
preferred/V
stock/N
dividends/N
;/:
it/P
owns/V
about/R
68/C
%/N
of/I
Shearson/N
's/P
common/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
American/N
Express/N
said/V
net/J
rose/V
11/C
%/N
to/T
$/$
899.8/C
million/C
,/,
or/C
$/$
2.09/C
a/D
share/N
,/,
from/I
$/$
807.5/C
million/C
,/,
or/C
$/$
1.89/C
a/D
share/N
./.
###/###
Revenue/N
rose/V
24/C
%/N
to/T
$/$
18.73/C
billion/C
from/I
$/$
15.09/C
billion/C
./.
###/###
Textron/N
Inc./N
,/,
hampered/V
by/I
a/D
slowdown/N
in/I
its/P
defense/N
sales/N
,/,
reported/V
an/D
8/C
%/N
decline/N
in/I
per-share/J
earnings/N
on/I
nearly/R
flat/J
revenue/N
for/I
its/P
third/J
quarter/N
./.
###/###
The/D
aerospace/N
and/C
financial/J
services/N
concern/N
said/V
net/J
income/N
fell/V
5/C
%/N
to/T
$/$
59.5/C
million/C
from/I
$/$
62.8/C
million/C
./.
###/###
Revenue/N
of/I
$/$
1.73/C
billion/C
was/V
almost/R
unchanged/J
from/I
last/J
year/N
's/P
$/$
1.72/C
billion/C
./.
###/###
Per-share/J
net/N
of/I
66/C
cents/N
,/,
down/R
from/I
72/C
cents/N
,/,
fell/V
by/I
more/J
than/I
overall/J
net/N
because/I
of/I
more/J
shares/N
outstanding/J
./.
###/###
The/D
company/N
said/V
that/I
improved/V
results/N
in/I
its/P
financial-services/J
sector/N
were/V
negated/V
by/I
increased/V
costs/N
in/I
its/P
government/N
contract/N
business/N
,/,
lower/J
operating/N
earnings/N
in/I
its/P
commercial-products/J
sector/N
and/C
soft/J
automotive/J
markets/N
./.
###/###
Net/J
was/V
aided/V
by/I
a/D
lower/J
income/N
tax/N
rate/N
./.
###/###
Profit/N
before/I
taxes/N
fell/V
17/C
%/N
to/T
$/$
84.4/C
million/C
from/I
$/$
101.4/C
million/C
./.
###/###
For/I
the/D
nine/C
months/N
,/,
Textron/N
reported/V
net/J
of/I
$/$
182.1/C
million/C
,/,
or/C
$/$
2.06/C
a/D
share/N
,/,
on/I
revenue/N
of/I
$/$
5.41/C
billion/C
./.
###/###
A/D
year/N
ago/R
,/,
net/N
was/V
$/$
170.4/C
million/C
,/,
or/C
$/$
1.93/C
a/D
share/N
,/,
on/I
revenue/N
of/I
$/$
5.3/C
billion/C
./.
###/###
The/D
nine-month/J
results/N
included/V
a/D
$/$
9.5/C
million/C
special/J
charge/N
in/I
1989/C
for/I
an/D
arbitration/N
settlement/N
related/V
to/T
past/J
export/N
sales/N
,/,
and/C
$/$
29.7/C
million/C
in/I
extraordinary/J
charges/N
in/I
1988/C
related/V
to/T
a/D
former/J
line/N
of/I
business/N
and/C
early/J
redemption/N
of/I
debt/N
./.
###/###
Textron/N
said/V
that/I
nine-months/N
'/P
results/N
do/V
n't/R
include/V
earnings/N
of/I
Avdel/N
PLC/N
,/,
a/D
British/J
maker/N
of/I
industrial/J
fasteners/N
,/,
but/C
do/V
include/V
interest/N
costs/N
of/I
$/$
16.4/C
million/C
on/I
borrowings/N
related/V
to/T
the/D
proposed/V
purchase/N
of/I
Avdel/N
./.
###/###
A/D
federal/J
judge/N
has/V
issued/V
a/D
preliminary/J
injunction/N
against/I
the/D
purchase/N
because/I
of/I
Federal/N
Trade/N
Commission/N
concerns/N
that/I
the/D
transaction/N
would/M
reduce/V
competition/N
in/I
the/D
production/N
of/I
two/C
kinds/N
of/I
rivets/N
./.
###/###
For/I
the/D
quarter/N
,/,
Textron/N
said/V
aerospace/N
revenue/N
,/,
including/V
Bell/N
helicopter/N
and/C
jet-engine/N
manufacture/N
,/,
declined/V
9.8/C
%/N
to/T
$/$
755.9/C
million/C
from/I
$/$
838.3/C
million/C
,/,
an/D
indication/N
of/I
slowing/V
government/N
defense/N
work/N
./.
###/###
As/I
the/D
Hunt/N
brothers/N
'/P
personal/J
bankruptcy/N
cases/N
sputter/V
into/I
their/P
second/J
year/N
,/,
Minpeco/N
S.A./N
has/V
proposed/V
a/D
deal/N
to/T
settle/V
its/P
huge/J
claim/N
against/I
the/D
troubled/V
Texas/N
oil/N
men/N
./.
###/###
But/C
the/D
plan/N
only/R
threatens/V
to/T
heighten/V
the/D
tension/N
and/C
confusion/N
already/R
surrounding/V
the/D
cases/N
that/W
were/V
filed/V
in/I
September/N
1988/C
./.
###/###
The/D
Peruvian/J
mineral/N
concern/N
's/P
$/$
251/C
million/C
claim/N
stems/V
from/I
1988/C
jury/N
award/N
in/I
a/D
case/N
stemming/V
from/I
the/D
brothers/N
'/P
alleged/V
attempts/N
to/T
corner/V
the/D
1979-80/C
silver/N
market/N
./.
###/###
Minpeco/N
now/R
says/V
it/P
is/V
willing/J
to/T
settle/V
for/R
up/I
to/T
$/$
65.7/C
million/C
from/I
each/D
brother/N
,/,
although/I
the/D
actual/J
amount/N
would/M
probably/R
be/V
much/R
less/J
./.
###/###
Although/I
the/D
proposal/N
must/M
be/V
approved/V
by/I
federal/J
Judge/N
Harold/N
C./N
Abramson/N
,/,
W./N
Herbert/N
Hunt/N
has/V
agreed/V
to/T
the/D
Peruvian/J
mineral/N
concern/N
's/P
proposal/N
./.
###/###
Nelson/N
Bunker/N
Hunt/N
is/V
considering/V
it/P
,/,
although/I
his/P
attorney/N
says/V
he/P
wo/M
n't/R
do/V
it/P
if/I
the/D
proposal/N
jeopardizes/V
a/D
tentative/J
settlement/N
he/P
has/V
reached/V
with/I
the/D
Internal/N
Revenue/N
Service/N
,/,
which/W
claims/V
the/D
brothers/N
owe/V
$/$
1/C
billion/C
in/I
back/J
taxes/N
and/C
is/V
by/I
far/R
the/D
biggest/J
creditor/N
in/I
both/D
cases/N
./.
###/###
The/D
tentative/N
agreement/N
between/I
the/D
IRS/N
and/C
Nelson/N
Bunker/N
Hunt/N
is/V
awaiting/V
U.S./N
Justice/N
Department/N
approval/N
./.
###/###
Under/I
it/P
,/,
the/D
former/J
billionaire/N
's/P
assets/N
would/M
be/V
liquidated/V
with/I
the/D
IRS/N
getting/V
80/C
%/N
of/I
the/D
proceeds/N
and/C
the/D
rest/N
being/N
divided/V
among/I
other/J
creditors/N
,/,
including/V
Minpeco/N
and/C
Manufacturers/N
Hanover/N
Trust/N
Co./N
,/,
which/W
is/V
seeking/V
repayment/N
of/I
a/D
$/$
36/C
million/C
loan/N
./.
###/###
A/D
similiar/J
proposal/N
has/V
been/V
made/V
in/I
the/D
W./N
Herbert/N
Hunt/N
case/N
although/I
he/P
and/C
the/D
IRS/N
are/V
at/I
odds/N
over/I
the/D
size/N
of/I
the/D
non-dischargable/J
debt/N
he/P
would/M
have/V
to/T
pay/V
to/T
the/D
government/N
from/I
future/J
earnings/N
./.
###/###
In/I
both/D
cases/N
,/,
Minpeco/N
and/C
Manufacturers/N
Hanover/N
have/V
been/V
fighting/V
ferociously/R
over/I
their/P
shares/N
of/I
the/D
pie/N
./.
###/###
With/I
support/N
from/I
the/D
IRS/N
,/,
Manufacturers/N
Hanover/N
has/V
filed/V
suit/N
asking/V
Judge/N
Abramson/N
to/T
subordinate/V
Minpeco/N
's/P
claim/N
to/T
those/D
of/I
Manufacturer/N
Hanover/N
and/C
the/D
IRS/N
./.
###/###
Minpeco/N
has/V
threatened/V
a/D
``/`
volcano/N
''/'
of/I
litigation/N
if/I
the/D
Manufacturers/N
Hanover/N
Corp./N
unit/N
attempts/V
to/T
force/V
such/J
a/D
plan/N
through/I
the/D
court/N
./.
###/###
Minpeco/N
said/V
it/P
would/M
n't/R
pursue/V
such/J
litigation/N
if/I
its/P
settlement/N
plan/N
in/I
the/D
W./N
Herbert/N
Hunt/N
case/N
is/V
approved/V
by/I
Judge/N
Abramson/N
,/,
who/W
will/M
consider/V
the/D
proposal/N
at/I
a/D
hearing/N
next/I
week/N
./.
###/###
Minpeco/N
attorney/N
Thomas/N
Gorman/N
decribed/V
the/D
plan/N
as/I
one/C
step/N
toward/I
an/D
overall/J
settlement/N
of/I
the/D
W./N
Herbert/N
Hunt/N
case/N
but/C
Hugh/N
Ray/N
,/,
attorney/N
for/I
Manufacturers/N
Hanover/N
,/,
called/V
it/P
``/`
silly/J
''/'
and/C
said/V
he/P
would/M
fight/V
it/P
in/I
court/N
./.
###/###
``/`
The/D
thing/N
is/V
so/R
fluid/J
right/R
now/R
that/I
there/E
's/V
really/R
no/D
way/N
to/T
say/V
what/W
will/M
happen/V
,/,
''/'
says/V
Justice/N
Department/N
attorney/N
Grover/N
Hartt/N
III/N
,/,
who/W
represents/V
the/D
IRS/N
in/I
the/D
case/N
./.
###/###
``/`
Developments/N
like/I
this/D
are/V
hard/J
to/T
predict/V
./.
###/###
Banc/N
One/C
Corp./N
said/V
it/P
agreed/V
in/I
principle/N
to/T
buy/V
five/C
branch/N
offices/N
from/I
Trustcorp/N
Inc./N
,/,
Toledo/N
,/,
Ohio/N
,/,
following/V
the/D
planned/V
merger/N
of/I
Trustcorp/N
into/I
Society/N
Corp./N
,/,
Cleveland/N
./.
###/###
The/D
five/C
offices/N
in/I
Erie/N
and/C
Ottawa/N
counties/N
in/I
northern/J
Ohio/N
have/V
total/J
assets/N
of/I
about/R
$/$
88/C
million/C
,/,
Banc/N
One/C
said/V
./.
###/###
The/D
purchase/N
price/N
will/M
be/V
established/V
after/I
Banc/N
One/C
has/V
an/D
opportunity/N
to/T
study/V
the/D
quality/N
of/I
the/D
assets/N
,/,
Banc/N
One/C
said/V
./.
###/###
Society/N
Corp./N
already/R
has/V
branches/N
in/I
the/D
area/N
,/,
and/C
selling/V
the/D
Trustcorp/N
offices/N
could/M
avoid/V
a/D
problem/N
with/I
regulators/N
over/I
excessive/J
concentration/N
of/I
banking/V
in/I
the/D
two/C
counties/N
after/I
the/D
merger/N
of/I
Trustcorp/N
into/I
Society/N
,/,
according/V
to/T
industry/N
sources/N
./.
###/###
The/D
merger/N
is/V
scheduled/V
to/T
take/V
place/N
in/I
the/D
1990/C
first/J
quarter/N
./.
###/###
Stock-market/N
fears/N
and/C
relatively/R
more/R
attractive/J
interest/N
rates/N
pushed/V
money-market/J
mutual/J
fund/N
assets/N
up/R
$/$
6.07/C
billion/C
in/I
the/D
latest/J
week/N
,/,
the/D
sharpest/J
increase/N
in/I
almost/R
two/C
years/N
./.
###/###
The/D
473/C
funds/N
tracked/V
by/I
the/D
Investment/N
Company/N
Institute/N
,/,
a/D
Washington-based/J
trade/N
group/N
,/,
rose/V
to/T
$/$
356.1/C
billion/C
,/,
a/D
record/N
./.
###/###
The/D
$/$
6.07/C
billion/C
increase/N
was/V
the/D
strongest/J
weekly/J
inflow/N
since/I
January/N
1988/C
./.
###/###
The/D
increase/N
was/V
spread/V
fairly/R
evenly/R
among/I
all/D
three/C
types/N
of/I
funds/N
./.
###/###
Individual/J
investors/N
,/,
represented/V
in/I
the/D
general-purpose/J
and/C
broker-dealer/J
fund/N
categories/N
,/,
pulled/V
money/N
from/I
the/D
stock/N
market/N
after/I
its/P
big/J
drop/N
last/J
Friday/N
and/C
put/V
the/D
money/N
into/I
funds/N
,/,
said/V
Jacob/N
Dreyer/N
,/,
vice/N
president/N
and/C
chief/J
economist/N
of/I
the/D
Institute/N
./.
###/###
``/`
Insitutional/J
investors/N
,/,
on/I
the/D
other/J
hand/N
,/,
reacted/V
to/T
the/D
steep/J
decline/N
in/I
yields/N
on/I
direct/J
money-market/J
instruments/N
following/V
the/D
stock-market/N
decline/N
last/J
Friday/N
,/,
''/'
Mr./N
Dreyer/N
said/V
./.
###/###
Yields/N
on/I
money/N
funds/N
dropped/V
in/I
the/D
week/N
ended/V
Tuesday/N
,/,
according/V
to/T
Donoghue/N
's/P
Money/N
Fund/N
Report/N
,/,
a/D
Holliston/N
,/,
Mass./N
,/,
newsletter/N
./.
###/###
The/D
average/J
seven-day/J
compounded/V
yield/N
fell/V
to/T
8.55/C
%/N
from/I
8.60/C
%/N
the/D
week/N
earlier/R
,/,
Donoghue/N
's/P
said/V
./.
###/###
At/I
the/D
auction/N
of/I
six-month/J
U.S./N
Treasury/N
bills/N
on/I
Monday/N
,/,
the/D
average/J
yield/N
fell/V
to/T
7.61/C
%/N
from/I
7.82/C
%/N
./.
###/###
Likewise/R
,/,
certificates/N
of/I
deposit/N
on/I
average/J
posted/V
lower/J
yields/N
in/I
the/D
week/N
ended/V
Tuesday/N
./.
###/###
The/D
142/C
institutional-type/J
money/N
funds/N
rose/V
$/$
2.23/C
billion/C
to/T
$/$
85.49/C
billion/C
./.
###/###
The/D
235/C
general-purpose/J
funds/N
increased/V
$/$
2.53/C
billion/C
to/T
$/$
116.56/C
billion/C
,/,
while/I
96/C
broker-dealer/J
funds/N
increased/V
$/$
1.3/C
billion/C
to/T
$/$
154.05/C
billion/C
./.
###/###
Domestic/J
lending/N
for/I
real/J
estate/N
and/C
property/N
development/N
was/V
the/D
source/N
of/I
Bank/N
Bumiputra/N
Malaysia/N
Bhd./N
's/P
most/R
recent/J
spate/N
of/I
financial/J
troubles/N
,/,
the/D
institution/N
's/P
executive/J
chairman/N
,/,
Mohamed/N
Basir/N
Ismail/N
,/,
said/V
./.
###/###
Speaking/V
to/T
reporters/N
this/D
week/N
after/I
Bank/N
Bumiputra/N
's/P
shareholders/N
approved/V
a/D
rescue/N
plan/N
,/,
Tan/N
Sri/N
Basir/N
said/V
heavy/J
lending/V
to/T
the/D
property/N
sector/N
rocked/V
the/D
bank/N
when/W
property/N
prices/N
in/I
Malaysia/N
plummeted/V
in/I
1984-85/C
./.
###/###
He/P
said/V
the/D
bank/N
could/M
n't/R
wait/V
any/D
longer/R
for/I
prices/N
to/T
recover/V
and/C
for/I
borrowers/N
to/T
service/V
their/P
loans/N
./.
###/###
So/I
the/D
bank/N
's/P
board/N
decided/V
to/T
make/V
1.23/C
billion/C
Malaysian/J
dollars/N
-LRB-/-
US$/$
457/C
million/C
-RRB-/-
in/I
provisions/N
for/I
interest/N
payments/N
from/I
loans/N
previously/R
recorded/V
as/I
revenue/N
but/C
never/R
actually/R
received/V
by/I
the/D
bank/N
,/,
and/C
to/T
submit/V
a/D
bailout/N
package/N
to/T
replenish/V
the/D
bank/N
's/P
paid-up/J
capital/N
./.
###/###
The/D
predicament/N
,/,
he/P
added/V
,/,
was/V
similar/J
to/T
the/D
Hong/N
Kong/N
1982-83/C
property-price/J
collapse/N
,/,
which/W
exposed/V
the/D
involvement/N
of/I
Bank/N
Bumiputra/N
's/P
former/J
subsidiary/N
in/I
the/D
colony/N
in/I
the/D
largest/J
banking/N
scandal/N
in/I
Malaysia/N
's/P
history/N
./.
###/###
The/D
subsidiary/N
,/,
Bumiputra/N
Malaysia/N
Finance/N
Ltd./N
,/,
was/V
left/V
with/I
M$/$
2.26/C
billion/C
in/I
bad/J
loans/N
made/V
to/T
Hong/N
Kong/N
property/N
speculators/N
./.
###/###
Both/D
episodes/N
wiped/V
out/R
Bank/N
Bumiputra/N
's/P
shareholders/N
'/P
funds/N
./.
###/###
Each/D
time/N
,/,
the/D
bank/N
's/P
90/C
%/N
shareholder/N
--/:
Petroliam/N
Nasional/N
Bhd./N
,/,
or/C
Petronas/N
,/,
the/D
national/J
oil/N
company/N
--/:
has/V
been/V
called/V
upon/I
to/T
rescue/V
the/D
institution/N
./.
###/###
In/I
five/C
years/N
,/,
Petronas/N
,/,
which/W
became/V
the/D
dominant/J
shareholder/N
in/I
a/D
1984/C
rescue/N
exercise/N
,/,
has/V
spent/V
about/R
M$/$
3.5/C
billion/C
to/T
prop/V
up/R
the/D
troubled/V
bank/N
./.
###/###
Tan/N
Sri/N
Basir/N
said/V
the/D
capital/N
restructuring/N
plan/N
has/V
been/V
approved/V
by/I
Malaysia/N
's/P
Capital/N
Issues/N
Committee/N
and/C
central/J
bank/N
./.
###/###
Malaysia/N
's/P
High/N
Court/N
is/V
expected/V
to/T
approve/V
the/D
plan/N
./.
###/###
Once/R
the/D
plan/N
is/V
approved/V
,/,
Tan/N
Sri/N
Basir/N
said/V
,/,
most/J
of/I
Bank/N
Bumiputra/N
's/P
nonperforming/V
loans/N
will/M
have/V
been/V
fully/R
provided/V
for/I
and/C
the/D
bank/N
will/M
be/V
on/I
track/N
to/T
report/V
a/D
pretax/J
profit/N
of/I
between/I
M$/$
160/C
million/C
and/C
M$/$
170/C
million/C
for/I
the/D
fiscal/J
year/N
ending/V
March/N
31/C
./.
###/###
For/I
the/D
previous/J
financial/J
year/N
,/,
the/D
bank/N
would/M
have/V
reported/V
a/D
pretax/J
profit/N
of/I
M$/$
168/C
million/C
if/I
it/P
had/V
n't/R
made/V
provisions/N
for/I
the/D
nonperforming/N
loans/N
,/,
he/P
said/V
./.
###/###
Malaysia/N
's/P
Banking/N
Secrecy/N
Act/N
prohibited/V
the/D
bank/N
from/I
identifying/V
delinquent/J
borrowers/N
,/,
said/V
Tan/N
Sri/N
Basir/N
./.
###/###
But/C
public/J
documents/N
indicate/V
10/C
%/N
or/C
more/J
of/I
the/D
bank/N
's/P
provisions/N
were/V
made/V
for/I
foregone/J
interest/N
on/I
a/D
M$/$
200/C
million/C
loan/N
to/T
Malaysia/N
's/P
dominant/J
political/J
party/N
,/,
the/D
United/N
Malays/N
National/N
Organization/N
,/,
to/T
build/V
its/P
convention/N
and/C
headquarters/N
complex/N
in/I
Kuala/N
Lumpur/N
./.
###/###
The/D
loan/N
to/T
UMNO/N
was/V
made/V
in/I
September/N
1983/C
./.
###/###
``/`
We/P
lent/V
a/D
lot/N
of/I
money/N
all/D
over/I
the/D
place/N
,/,
''/'
said/V
Tan/N
Sri/N
Basir/N
,/,
who/W
refused/V
to/T
discuss/V
the/D
bank/N
's/P
outstanding/J
loans/N
to/T
###/###
As/R
well/R
as/I
the/D
M$/$
1.23/C
billion/C
in/I
provisions/N
announced/V
on/I
Oct./N
6/C
,/,
the/D
restructuring/N
package/N
covers/V
an/D
additional/J
M$/$
450/C
million/C
in/I
provisions/N
made/V
in/I
earlier/J
years/N
but/C
never/R
reflected/V
in/I
a/D
reduction/N
of/I
the/D
bank/N
's/P
paid-up/J
capital/N
./.
###/###
At/I
the/D
end/N
of/I
the/D
exercise/N
,/,
the/D
cash/N
injection/N
from/I
Petronas/N
will/M
increase/V
the/D
bank/N
's/P
paid-up/J
capital/N
to/T
M$/$
1.15/C
billion/C
after/I
virtually/R
being/V
wiped/V
out/R
by/I
the/D
new/J
provisions/N
./.
###/###
Heidi/N
Ehman/N
might/M
have/V
stepped/V
from/I
a/D
recruiting/N
poster/N
for/I
young/J
Republicans/N
./.
###/###
White/J
,/,
24/C
years/N
old/J
,/,
a/D
singer/N
in/I
her/P
church/N
choir/N
,/,
she/P
symbolizes/V
a/D
generation/N
that/W
gave/V
its/P
heart/N
and/C
its/P
vote/N
to/T
Ronald/N
Reagan/N
./.
###/###
``/`
I/P
felt/V
kind/N
of/I
safe/J
,/,
''/'
she/P
says/V
./.
###/###
No/R
longer/R
./.
###/###
When/W
the/D
Supreme/N
Court/N
opened/V
the/D
door/N
this/D
year/N
to/T
new/J
restrictions/N
on/I
abortion/N
,/,
Ms./N
Ehman/N
opened/V
her/P
mind/N
to/T
Democratic/J
politics/N
./.
###/###
Then/R
a/D
political/J
novice/N
,/,
she/P
stepped/V
into/I
a/D
whirl/N
of/I
``/`
pro-choice/J
''/'
marches/N
,/,
house/N
parties/N
and/C
fund-raisers/N
./.
###/###
Now/R
she/P
leads/V
a/D
grassroots/N
abortion-rights/N
campaign/N
in/I
Passaic/N
County/N
for/I
pro-choice/J
Democratic/J
gubernatorial/J
candidate/N
James/N
Florio/N
./.
###/###
``/`
This/D
is/V
one/C
where/W
I/P
cross/V
party/N
lines/N
,/,
''/'
she/P
says/V
,/,
rejecting/V
the/D
anti-abortion/J
stance/N
of/I
Rep./N
Florio/N
's/P
opponent/N
,/,
Reagan-Republican/J
Rep./N
James/N
Courter/N
./.
###/###
``/`
People/N
my/P
age/N
thought/V
it/P
was/V
n't/R
going/V
to/T
be/V
an/D
issue/N
./.
###/###
Now/R
it/P
has/V
--/:
especially/R
for/I
people/N
my/P
age/N
./.
''/'
###/###
Polls/N
bear/V
out/R
this/D
warning/N
,/,
but/C
after/I
a/D
decade/N
of/I
increased/V
Republican/J
influence/N
here/R
,/,
the/D
new/J
politics/N
of/I
abortion/N
have/V
contributed/V
to/T
a/D
world/N
turned/V
upside/R
down/R
for/I
Mr./N
Courter/N
./.
###/###
Unless/I
he/P
closes/V
the/D
gap/N
,/,
Republicans/N
risk/N
losing/V
not/R
only/R
the/D
governorship/N
but/C
also/R
the/D
assembly/N
next/I
month/N
./.
###/###
Going/V
into/I
the/D
1990s/C
,/,
the/D
GOP/N
is/V
paying/V
a/D
price/N
for/I
the/D
same/J
conservative/J
social/J
agenda/N
that/I
it/P
used/V
to/T
torment/V
Democrats/N
in/I
the/D
past/N
./.
###/###
This/D
change/N
comes/V
less/R
from/I
a/D
shift/N
in/I
public/J
opinion/N
,/,
which/W
has/V
n't/R
changed/V
much/R
on/I
abortion/N
over/I
the/D
past/N
decade/N
,/,
than/I
in/I
the/D
boundaries/N
of/I
the/D
debate/N
./.
###/###
New/N
Jersey/N
's/P
own/J
highest/J
court/N
remains/V
a/D
liberal/J
bulwark/N
against/I
major/J
restrictions/N
on/I
abortion/N
,/,
but/C
the/D
U.S./N
Supreme/N
Court/N
ruling/N
,/,
Webster/N
vs./I
Missouri/N
,/,
has/V
engaged/V
voters/N
across/I
the/D
nation/N
who/W
had/V
been/V
insulated/V
from/I
the/D
issue/N
./.
###/###
Before/I
July/N
,/,
pro-choice/J
voters/N
could/M
safely/R
make/V
political/J
decisions/N
without/I
focusing/V
narrowly/R
on/I
abortion/N
./.
###/###
Now/R
,/,
the/D
threat/N
of/I
further/J
restrictions/N
adds/V
a/D
new/J
dimension/N
,/,
bringing/V
an/D
upsurge/N
in/I
political/J
activity/N
by/I
abortion-rights/J
forces/N
./.
###/###
A/D
recent/J
pro-choice/J
rally/N
in/I
Trenton/N
drew/V
thousands/N
,/,
and/C
in/I
a/D
major/J
reversal/N
,/,
Congress/N
is/V
defying/V
a/D
presidential/J
veto/N
and/C
demanding/V
that/I
Medicaid/N
abortions/N
be/V
permitted/V
in/I
cases/N
of/I
rape/N
and/C
incest/N
./.
###/###
``/`
If/I
Webster/N
had/V
n't/R
happened/V
,/,
you/P
would/M
n't/R
be/V
here/R
,/,
''/'
Linda/N
Bowker/N
tells/V
a/D
reporter/N
in/I
the/D
Trenton/N
office/N
of/I
the/D
National/N
Organization/N
for/I
Women/N
./.
###/###
``/`
We/P
could/M
have/V
shouted/V
from/I
the/D
rooftops/N
about/I
Courter.../:
and/C
no/D
one/P
would/M
have/V
heard/V
us/P
./.
''/'
###/###
New/N
Jersey/N
is/V
a/D
proving/N
ground/N
for/I
this/D
aggressive/J
women's-rights/J
movement/N
this/D
year/N
./.
###/###
The/D
infusion/N
of/I
activists/N
can/M
bring/V
a/D
clash/N
of/I
cultures/N
./.
###/###
In/I
Cherry/N
Hill/N
,/,
the/D
National/N
Abortion/N
Rights/N
Action/N
League/N
,/,
whose/W
goal/N
is/V
to/T
sign/V
up/R
50,000/C
pro-choice/J
voters/N
,/,
targets/V
a/D
union/N
breakfast/N
to/T
build/V
labor/N
support/N
for/I
its/P
cause/N
./.
###/###
The/D
league/N
organizers/N
seem/V
more/J
a/D
fit/N
with/I
a/D
convention/N
next/J
door/N
of/I
young/J
aerobics/N
instructors/N
in/I
leotards/N
than/I
the/D
beefy/J
union/N
leaders/N
;/:
``/`
I/P
wish/V
I/P
could/M
go/V
work/V
out/R
,/,
''/'
says/V
a/D
slim/J
activist/N
./.
###/###
A/D
labor/N
chief/N
speaks/V
sardonically/R
of/I
having/V
to/T
``/`
man/V
and/C
woman/N
''/'
Election/N
Day/N
phones/N
./.
###/###
No/D
age/N
group/N
is/V
more/R
sensitive/J
than/I
younger/J
voters/N
,/,
like/I
Ms./N
Ehman/N
./.
###/###
A/D
year/N
ago/R
this/D
fall/N
,/,
New/N
Jersey/N
voters/N
under/I
30/C
favored/V
George/N
Bush/N
by/I
56/C
%/N
to/T
39/C
%/N
over/I
Michael/N
Dukakis/N
,/,
according/V
to/T
a/D
survey/N
then/R
by/I
Rutgers/N
University/N
's/P
Eagleton/N
Institute/N
./.
###/###
A/D
matching/V
Eagleton-Newark/N
Star/N
Ledger/N
poll/N
last/J
month/N
showed/V
a/D
complete/J
reversal/N
./.
###/###
Voters/N
in/I
the/D
same/J
age/N
group/N
backed/V
Democrat/N
Florio/N
55/C
%/N
to/T
29/C
%/N
over/I
Republican/N
Courter/N
./.
###/###
Abortion/N
alone/R
ca/M
n't/R
explain/V
this/D
shift/N
,/,
but/C
New/N
Jersey/N
is/V
a/D
model/N
of/I
how/W
so/R
personal/J
an/D
issue/N
can/M
become/V
a/D
baseline/N
of/I
sorts/N
in/I
judging/V
a/D
candidate/N
./.
###/###
By/I
a/D
2-to-1/J
ratio/N
,/,
voters/N
appear/V
more/J
at/I
ease/N
with/I
Mr./N
Florio/N
's/P
stance/N
on/I
abortion/N
,/,
and/C
polls/N
indicate/V
his/P
lead/N
widens/V
when/W
the/D
candidates/N
are/V
specifically/R
linked/V
to/T
the/D
issue/N
./.
###/###
``/`
The/D
times/N
are/V
my/P
times/N
,/,
''/'
says/V
Mr./N
Florio/N
./.
###/###
The/D
Camden/N
County/N
congressman/N
still/R
carries/V
himself/P
with/I
a/D
trademark/N
``/`
I'm-coming-down-your-throat/J
''/'
intensity/N
,/,
but/C
at/I
a/D
pause/N
in/I
Newark/N
's/P
Columbus/N
Day/N
parade/N
recently/R
,/,
he/P
was/V
dancing/V
with/I
his/P
wife/N
in/I
the/D
middle/N
of/I
the/D
avenue/N
in/I
the/D
city/N
's/P
old/J
Italian-American/J
ward/N
./.
###/###
After/I
losing/V
by/I
fewer/J
than/I
1,800/C
votes/N
in/I
the/D
1981/C
governor/N
's/P
race/N
,/,
he/P
has/V
prepared/V
himself/P
methodically/R
for/I
this/D
moment/N
,/,
including/V
deciding/V
in/I
recent/J
years/N
he/P
could/M
no/R
longer/R
support/V
curbs/N
on/I
federal/J
funding/N
for/I
Medicaid/N
abortions/N
./.
###/###
``/`
If/I
you/P
're/V
going/V
to/T
be/V
consistent/J
and/C
say/V
it/P
is/V
a/D
constitutionally/R
protected/V
right/N
,/,
''/'
he/P
asks/V
,/,
``/`
how/W
are/V
you/P
going/V
to/T
say/V
an/D
upscale/J
woman/N
who/W
can/M
drive/V
to/T
the/D
hospital/N
or/C
clinic/N
in/I
a/D
nice/J
car/N
has/V
a/D
constitutional/J
right/N
and/C
someone/N
who/W
is/V
not/R
in/I
great/J
shape/N
financially/R
does/V
not/R
?/.
''/'
###/###
Mr./N
Courter/N
,/,
by/I
comparison/N
,/,
seems/V
a/D
shadow/N
of/I
the/D
confident/J
hawk/N
who/W
defended/V
Oliver/N
North/N
before/I
national/J
cameras/N
at/I
Iran-Contra/N
hearings/N
two/C
years/N
ago/R
./.
###/###
Looking/V
back/R
,/,
he/P
says/V
he/P
erred/V
by/I
stating/V
his/P
``/`
personal/J
''/'
opposition/N
to/T
abortion/N
instead/R
of/I
assuring/V
voters/N
that/I
he/P
would/M
n't/R
impose/V
his/P
views/N
on/I
``/`
policy/N
''/'
as/I
governor/N
./.
###/###
It/P
is/V
a/D
distinction/N
that/I
satisfies/N
neither/D
side/N
in/I
the/D
debate/N
./.
###/###
``/`
He/P
does/V
n't/R
know/V
himself/P
,/,
''/'
Kathy/N
Stanwick/N
of/I
the/D
Abortion/N
Rights/N
League/N
says/V
of/I
Mr./N
Courter/N
's/P
position/N
./.
###/###
Even/R
abortion/N
opponents/N
,/,
however/R
angry/J
with/I
Mr./N
Florio/N
,/,
ca/M
n't/R
hide/V
their/P
frustration/N
with/I
the/D
Republican/N
's/P
ambivalence/N
./.
###/###
``/`
He/P
does/V
n't/R
want/V
to/T
lead/V
the/D
people/N
,/,
''/'
says/V
Richard/N
Traynor/N
,/,
president/N
of/I
New/N
Jersey/N
Right/N
to/T
Life/N
./.
###/###
Moreover/R
,/,
by/I
stepping/V
outside/I
the/D
state/N
's/P
pro-choice/J
tradition/N
,/,
Mr./N
Courter/N
aggravates/V
fears/N
that/I
he/P
is/V
too/R
conservative/J
as/I
well/R
on/I
more/R
pressing/V
concerns/N
such/J
as/I
auto/N
insurance/N
rates/N
and/C
the/D
environment/N
./.
###/###
He/P
hurt/V
himself/P
further/R
this/D
summer/N
by/I
bringing/V
homosexual/J
issues/N
into/I
the/D
debate/N
;/:
and/C
by/I
wavering/V
on/I
this/D
issue/N
and/C
abortion/N
,/,
he/P
has/V
weakened/V
his/P
credibility/N
in/I
what/W
is/V
already/R
a/D
mean-spirited/J
campaign/N
on/I
both/D
sides/N
./.
###/###
Elected/V
to/T
Congress/N
in/I
1978/C
,/,
the/D
48-year-old/J
Mr./N
Courter/N
is/V
part/N
of/I
a/D
generation/N
of/I
young/J
conservatives/N
who/W
were/V
once/R
very/R
much/R
in/I
the/D
lead/N
of/I
the/D
rightward/J
shift/N
under/I
Mr./N
Reagan/N
./.
###/###
Like/I
many/V
of/I
his/P
colleagues/N
,/,
he/P
did/V
n't/R
serve/V
in/I
Vietnam/N
in/I
the/D
1960s/C
yet/C
embraced/V
a/D
hawkish/J
defense/N
and/C
foreign/J
policy/N
--/:
even/R
voting/V
against/I
a/D
1984/C
resolution/N
critical/J
of/I
the/D
U.S./N
mining/N
of/I
Nicaraguan/N
harbors/N
./.
###/###
Jack/N
Kemp/N
and/C
the/D
writers/N
Irving/N
Kristol/N
and/C
George/N
Gilder/N
were/V
influences/V
,/,
and/C
Mr./N
Courter/N
's/P
own/J
conservative/J
credentials/N
proved/V
useful/J
to/T
the/D
current/J
New/N
Jersey/N
GOP/N
governor/N
,/,
Thomas/N
Kean/N
,/,
in/I
the/D
1981/C
Republican/N
primary/N
here/R
./.
###/###
The/D
same/J
partnership/N
is/V
now/R
crucial/J
to/T
Mr./N
Courter/N
's/P
fortunes/N
,/,
but/C
the/D
abortion/N
issue/N
is/V
only/R
a/D
reminder/N
of/I
the/D
gap/N
between/I
his/P
record/N
and/C
that/I
of/I
the/D
more/R
moderate/J
,/,
pro-choice/J
Gov./N
Kean/N
./.
###/###
While/I
the/D
Warren/N
County/N
congressman/N
pursued/V
an/D
anti-government/N
,/,
anti-tax/J
agenda/N
in/I
Washington/N
,/,
Gov./N
Kean/N
was/V
approving/V
increased/V
income/N
and/C
sales/N
taxes/N
at/I
home/N
and/C
overseeing/V
a/D
near/J
doubling/N
in/I
the/D
size/N
of/I
New/N
Jersey/N
's/P
budget/N
in/I
his/P
eight/C
years/N
in/I
office/N
./.
###/###
Kean/N
forces/N
play/V
down/I
any/D
differences/N
with/I
Mr./N
Courter/N
,/,
but/C
this/D
history/N
makes/V
it/P
harder/R
for/I
the/D
conservative/J
to/T
run/V
against/I
government/N
./.
###/###
Mr./N
Courter/N
's/P
free-market/J
plan/N
to/T
bring/V
down/I
auto/N
insurance/N
rates/N
met/V
criticism/N
from/I
Gov./N
Kean/N
's/P
own/J
insurance/N
commissioner/N
./.
###/###
Mr./N
Courter/N
is/V
further/R
hobbled/V
by/I
a/D
record/N
of/I
votes/N
opposed/V
to/T
government/N
regulation/N
on/I
behalf/N
of/I
consumers/N
./.
###/###
Fluent/N
in/I
Spanish/N
from/I
his/P
days/N
in/I
the/D
Peace/N
Corps/N
,/,
Mr./N
Courter/N
actively/R
courts/V
minority/N
voters/N
but/C
seems/V
oddly/R
over/I
his/P
head/N
./.
###/###
He/P
is/V
warm/J
and/C
polished/V
before/I
a/D
Puerto/N
Rican/N
Congress/N
in/I
Asbury/N
Park/N
./.
###/###
Yet/R
minutes/N
after/I
promising/V
to/T
appoint/V
Hispanics/N
to/T
high/J
posts/N
in/I
state/N
government/N
,/,
he/P
is/V
unable/J
to/T
say/V
whether/I
he/P
has/V
ever/R
employed/V
any/D
in/I
his/P
congressional/J
office/N
./.
###/###
``/`
I/P
do/V
n't/R
think/V
we/P
do/V
now/R
,/,
''/'
he/P
says/V
./.
###/###
``/`
I/P
think/V
we/P
did/V
./.
''/'
###/###
Asked/V
the/D
same/J
question/N
after/I
his/P
appearance/N
,/,
Democrat/N
Florio/N
identifies/V
a/D
staff/N
member/N
by/I
name/N
and/C
explains/V
her/P
whereabouts/N
today/N
./.
###/###
When/W
he/P
is/V
presented/V
with/I
a/D
poster/N
celebrating/V
the/D
organization/N
's/P
20th/J
anniversary/N
,/,
he/P
recognizes/V
a/D
photograph/N
of/I
one/C
of/I
the/D
founders/N
and/C
recalls/V
time/N
spent/V
together/R
in/I
Camden/N
./.
###/###
Details/N
and/C
Camden/N
are/V
essential/J
Florio/N
./.
###/###
Elected/V
to/T
Congress/N
as/I
a/D
``/`
Watergate/N
baby/N
''/'
in/I
1974/C
,/,
he/P
ran/V
for/I
governor/N
three/C
years/N
later/R
./.
###/###
In/I
the/D
opinion/N
of/I
many/J
,/,
he/P
has/V
n't/R
stopped/V
running/V
since/I
,/,
even/R
though/I
he/P
declined/V
a/D
rematch/N
with/I
Gov./N
Kean/N
in/I
1985/C
./.
###/###
His/P
base/N
in/I
South/N
Jersey/N
and/C
on/I
the/D
House/N
Energy/N
and/C
Commerce/N
Committee/N
helped/V
him/P
sustain/V
a/D
network/N
of/I
political-action/J
committees/N
to/T
preserve/V
his/P
edge/N
./.
###/###
With/I
limited/V
budgets/N
for/I
television/N
in/I
a/D
high-priced/J
market/N
,/,
Mr./N
Florio/N
's/P
higher/J
recognition/N
than/I
his/P
rival/N
is/V
a/D
major/J
advantage/N
./.
###/###
More/R
than/I
ever/R
,/,
his/P
pro-consumer/N
and/C
pro-environment/N
record/N
is/V
in/I
sync/N
with/I
the/D
state/N
./.
###/###
Auto/N
insurance/N
rates/N
are/V
soaring/V
./.
###/###
A/D
toxic-waste-dump/J
fire/N
destroyed/V
part/N
of/I
an/D
interstate/J
highway/N
this/D
summer/N
./.
###/###
In/I
Monmouth/N
,/,
an/D
important/J
swing/N
area/N
,/,
Republican/N
freeholders/N
now/R
run/V
on/I
a/D
slogan/N
promising/V
to/T
keep/V
the/D
county/N
``/`
clean/J
and/C
green/J
./.
''/'
###/###
Mr./N
Florio/N
savors/N
this/D
vindication/N
,/,
but/C
at/I
age/N
52/C
,/,
the/D
congressman/N
is/V
also/R
a/D
product/N
of/I
his/P
times/N
and/C
losses/N
./.
###/###
He/P
speaks/V
for/I
the/D
death/N
penalty/N
as/I
if/I
reading/V
from/I
Exodus/N
21/C
;/:
to/T
increase/V
state/N
revenue/N
he/P
focuses/V
not/R
on/I
``/`
taxes/N
''/'
but/C
on/I
``/`
audits/N
''/'
to/T
cut/V
waste/N
./.
###/###
Hard-hitting/J
consultants/N
match/V
ads/N
with/I
Mr./N
Courter/N
's/P
team/N
,/,
and/C
Mr./N
Florio/N
retools/V
himself/P
as/I
the/D
lean/J
,/,
mean/J
Democratic/J
fighting/N
machine/N
of/I
the/D
1990s/C
./.
###/###
Appealing/V
to/T
a/D
young/J
audience/N
,/,
he/P
scraps/V
an/D
old/J
reference/N
to/T
Ozzie/N
and/C
Harriet/N
and/C
instead/R
quotes/V
the/D
Grateful/N
Dead/N
./.
###/###
The/D
lyric/N
chosen/V
--/:
``/`
long/J
strange/J
night/N
''/'
--/:
may/M
be/V
an/D
apt/J
footnote/N
to/T
television/N
spots/N
by/I
both/D
candidates/N
intended/V
to/T
portray/V
each/D
other/J
as/I
a/D
liar/N
./.
###/###
The/D
Democratic/J
lawmaker/N
fits/V
a/D
pattern/N
of/I
younger/J
reformers/N
arising/V
out/I
of/I
old/J
machines/N
,/,
but/C
his/P
ties/N
to/T
Camden/N
remain/V
a/D
sore/J
point/N
because/I
of/I
the/D
county/N
's/P
past/N
corruption/N
./.
###/###
His/P
campaign/N
hierarchy/N
is/V
chosen/V
from/I
elsewhere/R
in/I
the/D
state/N
,/,
and/C
faced/V
with/I
criticism/N
of/I
a/D
sweetheart/N
bank/N
investment/N
,/,
he/P
has/V
so/R
far/R
blunted/V
the/D
issue/N
by/I
donating/V
the/D
bulk/N
of/I
his/P
profits/N
to/T
his/P
alma/J
mater/N
,/,
Trenton/N
State/N
College/N
./.
###/###
Mr./N
Florio/N
's/P
forcefulness/N
on/I
the/D
abortion/N
issue/N
after/I
the/D
Webster/N
ruling/N
divides/V
some/D
of/I
his/P
old/J
constituency/N
./.
###/###
Pasquale/N
Pignatelli/N
,/,
an/D
unlikely/J
but/C
enthusiastic/J
pipe/N
major/N
in/I
an/D
Essex/N
County/N
Irish/J
bagpipe/N
band/N
,/,
speaks/V
sadly/R
of/I
Mr./N
Florio/N
./.
###/###
``/`
I/P
am/V
a/D
devout/J
Catholic/N
,/,
''/'
says/V
Mr./N
Pignatelli/N
,/,
a/D
40-year-old/J
health/N
officer/N
./.
###/###
``/`
I/P
ca/M
n't/R
support/V
him/P
because/I
of/I
abortion/N
./.
''/'
###/###
Bill/N
Wames/N
Sr./N
,/,
72/C
,/,
is/V
Catholic/N
too/R
,/,
but/C
unfazed/J
by/I
Mr./N
Florio/N
's/P
stand/N
on/I
abortion/N
./.
###/###
A/D
security/N
guard/N
at/I
a/D
cargo/N
terminal/N
,/,
he/P
wears/V
a/D
Sons/N
of/I
Italy/N
jacket/N
and/C
cap/N
celebrating/V
``/`
The/D
US/N
1/C
Band/N
./.
''/'
###/###
``/`
I/P
still/R
think/V
the/D
woman/N
has/V
the/D
right/N
to/T
do/V
with/I
her/P
body/N
as/I
she/P
pleases/V
,/,
''/'
he/P
says/V
./.
###/###
``/`
If/I
you/P
want/V
more/J
opinions/N
ask/V
my/P
wife/N
./.
###/###
She/P
has/V
lots/N
of/I
opinions/N
./.
###/###
Consumer/N
prices/N
rose/V
a/D
surprisingly/R
moderate/J
0.2/C
%/N
in/I
September/N
,/,
pushed/V
up/R
mostly/R
by/I
a/D
jump/N
in/I
clothing/N
costs/N
,/,
the/D
Labor/N
Department/N
reported/V
./.
###/###
Energy/N
costs/N
,/,
which/W
drove/V
wholesale/J
prices/N
up/R
sharply/R
during/I
the/D
month/N
,/,
continued/V
to/T
decline/V
at/I
the/D
retail/J
level/N
,/,
pulling/V
down/R
transportation/N
and/C
helping/V
to/T
ease/V
housing/N
costs/N
./.
###/###
The/D
report/N
was/V
the/D
brightest/J
news/N
the/D
financial/J
markets/N
had/V
seen/V
since/I
before/R
the/D
stock/N
market/N
plunged/V
more/R
than/I
190/C
points/N
last/J
Friday/N
./.
###/###
The/D
Dow/N
Jones/N
Industrial/N
Average/N
rallied/V
on/I
the/D
news/N
,/,
closing/V
39.55/C
points/N
higher/R
at/I
2683.20/C
./.
###/###
Bond/N
prices/N
also/R
jumped/V
as/I
traders/N
appeared/V
to/T
read/V
the/D
data/N
as/I
a/D
sign/N
that/I
interest/N
rates/N
may/M
fall/V
./.
###/###
But/C
many/J
economists/N
were/V
not/R
nearly/R
as/I
jubilant/J
./.
###/###
The/D
climb/N
in/I
wholesale/J
energy/N
prices/N
is/V
certain/J
to/T
push/V
up/R
retail/J
energy/N
prices/N
in/I
the/D
next/J
few/J
months/N
,/,
they/P
warned/V
./.
###/###
They/P
also/R
said/V
the/D
dollar/N
is/V
leveling/V
off/R
after/I
a/D
rise/N
this/D
summer/N
that/W
helped/V
to/T
reduce/V
the/D
prices/N
of/I
imported/V
goods/N
./.
###/###
``/`
I/P
think/V
inflation/N
is/V
going/V
to/T
pick/V
up/R
through/I
the/D
fall/N
,/,
''/'
said/V
Joel/N
Popkin/N
,/,
a/D
specialist/N
on/I
inflation/N
who/W
runs/V
an/D
economic/J
consulting/N
firm/N
here/R
./.
###/###
``/`
It/P
has/V
been/V
in/I
what/W
I/P
would/M
describe/V
as/I
a/D
lull/N
for/I
the/D
past/J
several/J
months/N
./.
''/'
###/###
``/`
We/P
've/V
had/V
whopping/J
declines/N
in/I
consumer/N
energy/N
prices/N
in/I
each/D
of/I
the/D
past/J
three/C
months/N
,/,
and/C
at/I
the/D
wholesale/J
level/N
those/D
are/V
fully/R
behind/I
us/P
now/R
,/,
''/'
said/V
Jay/N
Woodworth/N
,/,
chief/J
domestic/J
economist/N
at/I
Bankers/N
Trust/N
Co./N
in/I
New/N
York/N
./.
###/###
Because/I
wholesale/J
energy/N
prices/N
shot/V
up/R
by/I
a/D
steep/J
6.5/C
%/N
last/J
month/N
,/,
many/J
analysts/N
expected/V
energy/N
prices/N
to/T
rise/V
at/I
the/D
consumer/N
level/N
too/R
./.
###/###
As/I
a/D
result/N
,/,
many/J
economists/N
were/V
expecting/V
the/D
consumer/N
price/N
index/N
to/T
increase/V
significantly/R
more/R
than/I
it/P
did/V
./.
###/###
But/C
retail/J
energy/N
prices/N
declined/V
0.9/C
%/N
in/I
September/N
./.
###/###
Though/I
analysts/N
say/V
competition/N
will/M
probably/R
hold/V
down/R
increases/N
in/I
retail/J
energy/N
prices/N
,/,
many/J
expect/V
some/D
of/I
the/D
wholesale/J
rise/N
to/T
be/V
passed/V
along/R
to/T
the/D
consumer/N
before/I
the/D
end/N
of/I
the/D
year/N
./.
###/###
Still/R
,/,
some/D
analysts/N
insisted/V
that/I
the/D
worst/J
of/I
the/D
inflation/N
is/V
behind/R
./.
###/###
``/`
It/P
increasingly/R
appears/V
that/I
1987-88/C
was/V
a/D
temporary/J
inflation/N
blip/N
and/C
not/R
the/D
beginning/N
of/I
a/D
cyclical/J
inflation/N
problem/N
,/,
''/'
argued/V
Edward/N
Yardeni/N
,/,
chief/J
economist/N
at/I
Prudential-Bache/N
Securities/N
Inc./N
in/I
New/N
York/N
./.
###/###
In/I
both/D
1987/C
and/C
1988/C
,/,
consumer/N
prices/N
rose/V
4.4/C
%/N
./.
###/###
A/D
run-up/N
in/I
world/N
oil/N
prices/N
last/J
winter/N
sent/V
consumer/N
prices/N
soaring/V
at/I
a/D
6.7/C
%/N
annual/J
rate/N
in/I
the/D
first/J
five/C
months/N
of/I
this/D
year/N
,/,
but/C
the/D
subsequent/J
decline/N
in/I
energy/N
prices/N
has/V
pulled/V
the/D
annual/J
rate/N
back/R
down/R
to/T
4.4/C
%/N
./.
###/###
Mr./N
Yardeni/N
predicted/V
that/I
world/N
business/N
competition/N
will/M
continue/V
to/T
restrain/V
prices/N
./.
###/###
``/`
The/D
bottom/J
line/N
is/V
,/,
it/P
seems/V
to/T
me/P
that/I
the/D
economic/J
environment/N
has/V
become/V
very/R
,/,
very/R
competitve/J
for/I
a/D
lot/N
of/I
businesses/N
,/,
''/'
he/P
said/V
./.
###/###
``/`
Back/R
in/I
1987-88/C
,/,
business/N
was/V
operating/V
at/I
fairly/R
tight/J
capacity/N
,/,
so/I
businesses/N
felt/V
they/P
could/M
raise/V
prices/N
./.
''/'
###/###
Now/R
,/,
he/P
said/V
,/,
a/D
slowdown/N
in/I
economic/J
activity/N
has/V
slackened/V
demand/N
./.
###/###
The/D
mild/J
inflation/N
figures/N
renewed/V
investors/N
'/P
hopes/N
that/I
the/D
Federal/N
Reserve/N
will/M
ease/V
its/P
interest-rate/N
stance/N
./.
###/###
The/D
steep/J
climb/N
in/I
producer/N
prices/N
reported/V
last/J
Friday/N
fostered/V
pessimism/N
about/I
lower/J
interest/N
rates/N
and/C
contributed/V
to/T
the/D
stock/N
market/N
's/P
6.9/C
%/N
plunge/N
that/D
day/N
./.
###/###
In/I
the/D
past/J
several/J
days/N
,/,
however/R
,/,
the/D
U.S./N
's/P
central/J
bank/N
has/V
allowed/V
a/D
key/J
interest/N
rate/N
to/T
fall/V
slightly/R
to/T
try/V
to/T
stabilize/V
the/D
markets/N
./.
###/###
Analysts/N
say/V
Fed/N
policy/N
makers/N
have/V
been/V
wary/J
of/I
relaxing/V
credit/N
too/R
much/R
because/I
they/P
were/V
still/R
uncertain/J
about/I
the/D
level/N
of/I
inflation/N
in/I
the/D
economy/N
./.
###/###
Excluding/V
the/D
volatile/J
categories/N
of/I
energy/N
and/C
food/N
--/:
leaving/V
what/W
some/D
economists/N
call/V
the/D
core/N
inflation/N
rate/N
--/:
consumer/N
prices/N
still/R
rose/V
only/R
0.2/C
%/N
in/I
September/N
./.
###/###
Transportation/N
costs/N
actually/R
fell/V
0.5/C
%/N
,/,
and/C
housing/N
costs/N
gained/V
only/R
0.1/C
%/N
./.
###/###
Apparel/N
prices/N
rocketed/V
up/R
1.7/C
%/N
,/,
but/C
that/D
was/V
after/I
three/C
months/N
of/I
declines/N
./.
###/###
Medical/J
costs/N
continued/V
their/P
steep/N
ascent/N
,/,
rising/V
0.8/C
%/N
after/I
four/C
consecutive/J
months/N
of/I
0.7/C
%/N
increases/N
./.
###/###
Car/N
prices/N
,/,
another/D
area/N
that/W
contributed/V
to/T
the/D
steep/J
rise/N
in/I
the/D
wholesale/J
index/N
last/J
month/N
,/,
still/R
showed/V
declines/N
at/I
the/D
consumer/N
level/N
./.
###/###
They/P
dropped/V
0.4/C
%/N
as/I
dealers/N
continued/V
to/T
offer/V
rebates/N
to/T
attract/V
customers/N
./.
###/###
Food/N
prices/N
rose/V
0.2/C
%/N
for/I
the/D
second/J
month/N
in/I
a/D
row/N
,/,
far/R
slower/R
than/I
the/D
monthly/N
rises/N
earlier/R
in/I
the/D
year/N
./.
###/###
Separately/R
,/,
the/D
Labor/N
Department/N
reported/V
that/I
average/J
weekly/J
earnings/N
rose/V
0.3/C
%/N
in/I
September/N
,/,
after/I
adjusting/V
for/I
inflation/N
,/,
following/V
a/D
0.7/C
%/N
decline/N
in/I
August/N
./.
###/###
All/D
the/D
numbers/N
are/V
adjusted/V
for/I
seasonal/J
fluctuations/N
./.
###/###
Here/R
are/V
the/D
seasonally/R
adjusted/V
changes/N
in/I
the/D
components/N
of/I
the/D
Labor/N
Department/N
's/P
consumer/N
price/N
index/N
for/I
September/N
./.
###/###
After/R
watching/V
interest/N
in/I
the/D
sport/N
plummet/V
for/I
years/N
,/,
the/D
ski/N
industry/N
is/V
trying/V
to/T
give/V
itself/P
a/D
lift/N
./.
###/###
Across/I
the/D
country/N
,/,
resorts/N
are/V
using/V
everything/N
from/I
fireworks/N
to/T
classical-music/J
concerts/N
to/T
attract/V
new/J
customers/N
./.
###/###
Some/D
have/V
built/V
health/N
spas/N
,/,
business/N
centers/N
and/C
shopping/N
villages/N
so/I
visitors/N
have/V
more/J
to/T
do/V
than/I
ski/V
./.
###/###
And/C
this/D
week/N
,/,
the/D
industry/N
's/P
efforts/N
will/M
go/V
national/J
for/I
the/D
first/J
time/N
when/W
it/P
unveils/V
a/D
$/$
7/C
million/C
advertising/N
campaign/N
./.
###/###
Such/J
efforts/N
--/:
unheard/J
of/R
only/R
a/D
few/J
years/N
ago/R
--/:
are/V
the/D
latest/J
attempts/N
to/T
revive/V
the/D
sagging/V
$/$
1.76/C
billion/C
U.S./N
ski/N
industry/N
./.
###/###
Since/I
the/D
start/N
of/I
the/D
decade/N
,/,
lift-ticket/J
sales/N
have/V
grown/V
only/R
3/C
%/N
a/D
year/N
on/I
average/N
,/,
compared/V
with/I
16/C
%/N
annual/J
growth/N
rates/N
in/I
the/D
'60s/N
and/C
'70s/N
./.
###/###
Last/J
season/N
,/,
lift-ticket/N
sales/N
fell/V
for/I
the/D
first/J
time/N
in/I
seven/C
years/N
./.
###/###
By/I
some/D
estimates/N
,/,
nearly/R
a/D
fourth/J
of/I
all/D
U.S./N
ski/N
areas/N
have/V
been/V
forced/V
to/T
shut/V
down/R
since/I
the/D
early/J
'80s/N
./.
###/###
Competition/N
and/C
mounting/V
insurance/N
and/C
equipment/N
costs/N
have/V
been/V
the/D
undoing/N
of/I
many/J
resorts/N
./.
###/###
But/C
another/D
big/J
problem/N
has/V
been/V
the/D
aging/N
of/I
baby/N
boomers/N
./.
###/###
Skiing/N
,/,
after/I
all/D
,/,
has/V
mainly/R
been/V
for/I
the/D
young/J
and/C
daring/J
and/C
many/J
baby/N
boomers/N
have/V
outgrown/V
skiing/N
or/C
have/V
too/R
many/J
family/N
responsibilities/N
to/T
stick/V
with/I
the/D
sport/N
./.
###/###
In/I
its/P
new/J
ad/N
campaign/N
,/,
created/V
by/I
D'Arcy/N
Masius/N
Benton/N
&/C
Bowles/N
Inc./N
,/,
Chicago/N
,/,
the/D
ski/N
industry/N
is/V
trying/V
to/T
change/V
its/P
image/N
as/I
a/D
sport/N
primarily/R
for/I
young/J
white/J
people/N
./.
###/###
One/C
60-second/J
TV/N
spot/N
features/V
a/D
diverse/J
group/N
of/I
skiers/N
gracefully/R
gliding/V
down/R
sun-drenched/J
slopes/N
:/:
senior/J
citizens/N
,/,
minorities/N
,/,
families/N
with/I
children/N
--/:
even/R
a/D
blind/J
skier/N
./.
###/###
``/`
Ski/N
school/N
is/V
great/J
,/,
''/'
cries/V
out/R
a/D
tot/N
,/,
bundled/V
in/I
a/D
snowsuit/N
as/I
he/P
plows/V
down/R
a/D
bunny/N
slope/N
./.
###/###
``/`
You/P
'll/M
never/R
know'til/V
you/P
try/V
,/,
''/'
says/V
a/D
black/J
skier/N
./.
###/###
``/`
We/P
used/V
to/T
show/V
some/D
hot-dog/J
skier/N
in/I
his/P
twenties/N
or/C
thirties/N
going/V
over/I
the/D
edge/N
of/I
a/D
cliff/N
,/,
''/'
says/V
Kathe/N
Dillmann/N
,/,
a/D
spokeswoman/N
for/I
the/D
United/N
Ski/N
Industries/N
Association/N
,/,
the/D
trade/N
group/N
sponsoring/V
the/D
campaign/N
./.
###/###
Ski/N
promotions/N
have/V
traditionally/R
avoided/V
the/D
touchy/J
issue/N
of/I
safety/N
./.
###/###
But/C
the/D
new/J
commercials/N
deal/V
with/I
it/P
indirectly/R
by/I
showing/V
a/D
woman/N
smiling/V
as/I
she/P
tries/V
to/T
get/V
up/R
from/I
a/D
fall/N
./.
###/###
``/`
We/P
wanted/V
to/T
show/V
it/P
's/V
okay/J
if/I
you/P
fall/V
,/,
''/'
says/V
Ms./N
Dillmann/N
./.
###/###
``/`
Most/J
people/N
think/V
if/I
you/P
slip/V
,/,
you/P
'll/M
wind/V
up/R
in/I
a/D
body/N
cast/N
./.
''/'
###/###
The/D
ad/N
campaign/N
represents/V
an/D
unusual/J
spirit/N
of/I
cooperation/N
among/I
resorts/N
and/C
ski/N
equipment/N
makers/N
;/:
normally/R
,/,
they/P
only/R
run/V
ads/N
hyping/V
their/P
own/J
products/N
and/C
facilities/N
./.
###/###
But/C
in/I
these/D
crunch/N
times/N
for/I
the/D
ski/N
industry/N
,/,
some/D
resorts/N
,/,
such/J
as/I
the/D
Angel/N
Fire/N
,/,
Red/N
River/N
and/C
Taos/N
ski/N
areas/N
in/I
New/N
Mexico/N
,/,
have/V
even/R
started/V
shuttle-busing/N
skiers/N
to/T
each/D
other/J
's/P
slopes/N
and/C
next/J
year/N
plan/V
to/T
sell/V
tickets/N
good/J
for/I
all/D
local/J
lifts/N
./.
###/###
Many/J
resorts/N
also/R
are/V
focusing/V
more/R
on/I
the/D
service/N
side/N
of/I
their/P
business/N
./.
###/###
Since/I
40/C
%/N
of/I
skiers/N
are/V
parents/N
,/,
many/J
slopes/N
are/V
building/V
nurseries/N
,/,
expanding/V
ski/J
schools/N
and/C
adding/V
entertainment/N
for/I
kids/N
./.
###/###
Vail/N
,/,
Colo./N
,/,
now/R
has/V
a/D
playland/N
that/W
looks/V
like/I
an/D
old/J
mining/N
town/N
;/:
kids/N
can/M
ski/V
through/I
and/C
pan/V
for/I
fool/N
's/P
gold/N
./.
###/###
For/I
$/$
15/C
,/,
they/P
can/M
enjoy/V
their/P
own/J
nightly/J
entertainment/N
,/,
with/I
dinner/N
,/,
without/I
mom/N
and/C
dad/N
./.
###/###
A/D
few/J
years/N
ago/R
,/,
parents/N
usually/R
had/V
to/T
hire/V
a/D
sitter/N
or/C
take/V
turns/N
skiing/V
while/I
one/C
spouse/N
stayed/V
with/I
the/D
children/N
./.
###/###
``/`
Most/J
parents/N
who/W
had/V
to/T
go/V
through/I
that/W
never/R
came/V
back/R
,/,
''/'
says/V
Michael/N
Shannon/N
,/,
president/N
of/I
Vail/N
Associates/N
Inc./N
,/,
which/W
owns/V
and/C
operates/V
the/D
Vail/N
and/C
nearby/J
Beaver/N
Creek/N
resorts/N
./.
###/###
To/T
make/V
skiing/N
more/R
convenient/J
for/I
time-strapped/J
visitors/N
,/,
several/J
resorts/N
are/V
buying/V
or/C
starting/V
their/P
own/J
travel/N
agencies/N
./.
###/###
In/I
one/C
phone/N
call/N
,/,
ski/N
buffs/N
can/M
make/V
hotel/N
and/C
restaurant/N
reservations/N
,/,
buy/V
lift/N
tickets/N
,/,
rent/V
ski/J
equipment/N
and/C
sign/V
up/R
for/I
lessons/N
./.
###/###
And/C
resorts/N
are/V
adding/V
other/J
amenities/N
,/,
such/J
as/I
pricey/J
restaurants/N
,/,
health/N
spas/N
and/C
vacation/N
packages/N
with/I
a/D
twist/N
./.
###/###
During/I
Winter/N
Carnival/N
week/N
,/,
for/I
example/N
,/,
visitors/N
at/I
Sunday/N
River/N
in/I
Maine/N
can/M
take/V
a/D
hot-air/J
balloon/N
ride/N
./.
###/###
``/`
People/N
these/D
days/N
want/V
something/N
else/R
to/T
do/V
besides/I
ski/V
and/C
sit/V
in/I
the/D
bar/N
,/,
''/'
says/V
Don/N
Borgeson/N
,/,
executive/J
director/N
of/I
Angel/N
Fire/N
,/,
N.M./N
's/P
Chamber/N
of/I
Commerce/N
./.
###/###
The/D
ski/N
industry/N
hopes/V
to/T
increase/V
the/D
number/N
of/I
skiers/N
by/I
3.5/C
million/C
to/T
about/R
21.7/C
million/C
in/I
the/D
next/J
five/C
years/N
with/I
its/P
latest/J
ads/N
and/C
promotions/N
./.
###/###
But/C
some/D
think/V
that/D
's/V
being/V
overly/R
optimistic/J
./.
###/###
For/I
one/C
thing/N
,/,
it/P
may/M
be/V
tough/J
to/T
attract/V
people/N
because/I
skiing/N
is/V
still/R
expensive/J
:/:
a/D
lift/N
ticket/N
can/M
cost/V
up/I
to/T
$/$
35/C
a/D
day/N
and/C
equipment/N
prices/N
are/V
rising/V
./.
###/###
And/C
most/J
vacationers/N
still/R
prefer/V
a/D
warm/J
climate/N
for/I
their/P
winter/N
excursions/N
./.
###/###
An/D
American/N
Express/N
Co./N
survey/N
of/I
its/P
travel/N
agents/N
revealed/V
that/I
only/R
34/C
%/N
believe/V
their/P
clients/N
will/M
pick/V
a/D
trip/N
this/D
winter/N
based/V
on/I
the/D
availability/N
of/I
winter/N
sports/N
,/,
as/I
opposed/V
to/T
69/C
%/N
who/W
think/V
that/I
warm-weather/J
sports/N
will/M
be/V
the/D
deciding/V
factor/N
./.
###/###
``/`
Even/R
if/I
they/P
could/M
bring/V
in/I
that/D
many/J
new/J
skiers/N
,/,
I/P
do/V
n't/R
know/V
if/I
-LCB-/-
the/D
industry/N
-RCB-/-
could/M
handle/V
that/D
kind/N
of/I
an/D
increase/N
,/,
''/'
says/V
I./N
William/N
Berry/N
,/,
editor/N
and/C
publisher/N
of/I
the/D
Ski/N
Industry/N
Letter/N
in/I
Katonah/N
,/,
N.Y/N
./.
###/###
``/`
Most/J
people/N
will/M
come/V
on/I
the/D
weekend/N
,/,
the/D
slopes/N
will/M
be/V
overcrowded/J
and/C
then/R
these/D
-LCB-/-
new/J
skiers/N
-RCB-/-
wo/M
n't/R
come/V
back/R
./.
###/###
They/P
did/V
n't/R
play/V
the/D
third/J
game/N
of/I
the/D
World/N
Series/N
on/I
Tuesday/N
night/N
as/I
scheduled/V
,/,
and/C
they/P
did/V
n't/R
play/V
it/P
on/I
Wednesday/N
or/C
Thursday/N
either/R
./.
###/###
But/C
you/P
knew/V
that/I
,/,
did/V
n't/R
you/P
?/.
###/###
They/P
are/V
supposed/V
to/T
play/V
the/D
game/N
next/I
Tuesday/N
,/,
in/I
Candlestick/N
Park/N
here/R
./.
###/###
The/D
theory/N
is/V
that/I
the/D
stadium/N
,/,
damaged/V
by/I
Tuesday/N
's/P
earthquake/N
,/,
will/M
be/V
repaired/V
by/I
then/R
,/,
and/C
that/I
people/N
will/M
be/V
able/J
to/T
get/V
there/R
./.
###/###
Like/I
just/R
about/I
everything/N
else/R
,/,
that/W
remains/V
to/T
be/V
seen/V
./.
###/###
Aftershocks/N
could/M
intervene/V
./.
###/###
But/C
,/,
at/I
least/J
,/,
the/D
law/N
of/I
averages/N
should/M
have/V
swung/V
to/T
the/D
favorable/J
side/N
./.
###/###
It/P
may/M
seem/V
trivial/J
to/T
worry/V
about/I
the/D
World/N
Series/N
amid/I
the/D
destruction/N
to/T
the/D
Bay/N
Area/N
wrought/V
by/I
Tuesday/N
's/P
quake/N
,/,
but/C
the/D
name/N
of/I
this/D
column/N
is/V
``/`
On/I
Sports/N
,/,
''/'
so/I
I/P
feel/V
obliged/V
to/T
do/V
so/R
./.
###/###
You/P
might/M
be/V
interested/V
to/T
know/V
that/D
baseball/N
,/,
not/R
survival/N
,/,
appeared/V
to/T
be/V
the/D
first/J
thought/N
of/I
most/J
of/I
the/D
crowd/N
of/I
60,000-odd/J
that/W
had/V
gathered/V
at/I
Candlestick/N
at/I
5:04/C
p.m./N
Tuesday/N
,/,
a/D
half-hour/N
before/I
game/N
time/N
,/,
when/W
the/D
quake/N
struck/V
./.
###/###
As/R
soon/R
as/I
the/D
tremor/N
passed/V
,/,
many/J
people/N
spontaneously/R
arose/V
and/C
cheered/V
,/,
as/I
though/I
it/P
had/V
been/V
a/D
novel/J
kind/N
of/I
pre-game/J
show/N
./.
###/###
One/C
fan/N
,/,
seated/V
several/J
rows/N
in/I
front/N
of/I
the/D
open/J
,/,
upper-deck/J
auxiliary/J
press/N
section/N
where/W
I/P
was/V
stationed/V
,/,
faced/V
the/D
assembled/V
newsies/N
and/C
laughingly/R
shouted/V
,/,
``/`
We/P
arranged/V
that/D
just/R
for/I
you/P
guys/N
''/'
I/P
thought/V
and/C
,/,
I/P
'm/V
sure/J
,/,
others/N
did/V
:/:
``/`
You/P
should/M
n't/R
have/V
bothered/V
./.
''/'
###/###
I/P
'd/M
slept/V
through/I
my/P
only/J
previous/J
brush/N
with/I
natural/J
disaster/N
,/,
a/D
tornado/N
15/C
or/C
so/R
summers/N
ago/R
near/I
Traverse/N
City/N
,/,
Mich./N
,/,
so/I
I/P
was/V
unprepared/J
for/I
one/C
reaction/N
to/T
such/J
things/N
:/:
the/D
urge/N
to/T
talk/V
about/I
them/P
./.
###/###
Perhaps/R
primed/V
by/I
the/D
daily/J
diet/N
of/I
radio/N
and/C
TV/N
reporters/N
thrusting/V
microphones/N
into/I
people/N
's/P
faces/N
and/C
asking/V
how/W
they/P
``/`
feel/V
''/'
about/I
one/C
calamity/N
or/C
another/D
,/,
fellow/J
reporters/N
and/C
civilians/N
who/W
spied/V
my/P
press/N
credential/N
were/V
eager/J
to/T
chat/V
./.
###/###
``/`
It/P
felt/V
like/I
I/P
was/V
on/I
a/D
station/N
platform/N
and/C
a/D
train/N
went/V
by/R
,/,
''/'
said/V
one/C
man/N
,/,
describing/V
my/P
own/J
reaction/N
./.
###/###
A/D
women/N
said/V
she/P
saw/V
the/D
park/N
's/P
light/J
standards/N
sway/V
./.
###/###
A/D
man/N
said/V
he/P
saw/V
the/D
upper/J
rim/N
undulate/V
./.
###/###
I/P
saw/V
neither/R
./.
###/###
Dictates/N
of/I
good/J
sense/N
to/T
the/D
contrary/N
not/R
withstanding/V
,/,
the/D
general/J
inclination/N
was/V
to/T
believe/V
that/I
the/D
disturbance/N
would/M
be/V
brief/J
and/C
that/D
ball/N
would/M
be/V
played/V
./.
###/###
``/`
I/P
was/V
near/I
the/D
top/N
of/I
the/D
stadium/N
,/,
and/C
saw/V
a/D
steel/N
girder/N
bow/V
six/C
feet/N
from/I
where/W
I/P
sat/V
,/,
but/C
I/P
stayed/V
put/V
for/I
10/C
or/C
15/C
minutes/N
,/,
''/'
confessed/V
a/D
friend/N
./.
###/###
``/`
I/P
guess/V
I/P
thought/V
,/,
`/`
This/D
is/V
the/D
World/N
Series/N
and/C
I/P
'm/V
not/R
gon/V
na/T
wimp/V
out/R
'/'
''/'
###/###
Here/R
in/I
the/D
Global/N
Village/N
,/,
though/R
,/,
folks/N
do/V
not/R
stay/V
uninformed/J
for/I
long/R
./.
###/###
Electrical/J
power/N
was/V
out/J
in/I
still-daylighted/J
Candlestick/N
Park/N
,/,
but/C
battery-operated/J
radios/N
and/C
television/N
sets/N
were/V
plentiful/J
./.
###/###
Within/I
a/D
few/J
minutes/N
,/,
the/D
true/J
extent/N
of/I
the/D
catastrophe/N
was/V
becoming/V
clear/J
./.
###/###
Its/P
Richter/N
Scale/N
measurement/N
was/V
reported/V
as/I
6.5/C
,/,
then/R
6.9/C
,/,
then/R
7.0/C
./.
###/###
A/D
section/N
of/I
the/D
Bay/N
Bridge/N
had/V
collapsed/V
,/,
as/I
had/V
a/D
part/N
of/I
Interstate/N
Highway/N
880/C
in/I
Oakland/N
./.
###/###
People/N
had/V
died/V
./.
###/###
At/I
5:40/C
p.m./N
,/,
scheduled/V
game/N
time/N
having/V
passed/V
,/,
some/D
fans/N
chanted/V
``/`
Let/V
's/P
Play/N
Ball/N
./.
''/'
###/###
No/D
longer/R
innocent/J
,/,
they/P
qualified/V
as/I
fools/N
./.
###/###
The/D
stadium/N
was/V
ordered/V
evacuated/V
soon/R
afterward/R
;/:
the/D
announcement/N
,/,
made/V
over/I
police/N
bullhorns/N
,/,
cited/V
the/D
power/N
outage/N
,/,
but/C
it/P
later/R
was/V
revealed/V
that/I
there/E
also/R
had/V
been/V
damage/N
of/I
the/D
sort/N
reported/V
by/I
my/P
friend/N
./.
###/###
Outside/J
,/,
I/P
spotted/V
two/C
young/J
men/N
lugging/V
blocks/N
of/I
concrete/N
./.
###/###
``/`
Pieces/N
of/I
Candlestick/N
,/,
''/'
they/P
said/V
./.
###/###
The/D
crowd/N
remained/V
good/J
natured/J
,/,
even/R
bemused/J
./.
###/###
TV/N
reporters/N
interviewed/V
fans/N
in/I
the/D
parking/N
lots/N
while/N
,/,
a/D
few/J
feet/N
away/R
,/,
others/N
watched/V
the/D
interviews/N
on/I
their/P
portable/J
TVs/N
./.
###/###
The/D
only/J
frenzy/N
I/P
saw/V
was/V
commercial/J
:/:
Booths/N
selling/V
World/N
Series/N
commemorative/J
stamps/N
and/C
dated/V
postmarks/N
were/V
besieged/V
by/I
fledgling/N
speculators/N
who/W
saw/V
future/J
profit/N
in/I
the/D
items/N
./.
###/###
The/D
traffic/N
jam/N
out/I
of/I
the/D
park/N
was/V
monumental/J
./.
###/###
It/P
took/V
me/P
a/D
half-hour/N
to/T
move/V
10/C
feet/N
from/I
my/P
parking/N
spot/N
in/I
an/D
outer/J
lot/N
to/T
an/D
aisle/N
,/,
and/C
an/D
additional/J
hour/N
to/T
reach/V
an/D
inner/J
roadway/N
a/D
half-block/N
away/R
./.
###/###
The/D
six-mile/J
trip/N
to/T
my/P
airport/N
hotel/N
that/W
had/V
taken/V
20/C
minutes/N
earlier/R
in/I
the/D
day/N
took/V
more/J
than/I
three/C
hours/N
./.
###/###
At/I
my/P
hotel/N
,/,
the/D
Westin/N
,/,
power/N
was/V
out/J
,/,
some/D
interior/J
plaster/N
had/V
broken/V
loose/J
and/C
there/E
had/V
been/V
water/N
damage/N
,/,
but/C
little/J
else/R
./.
###/###
With/I
Garpian/J
randomness/N
,/,
a/D
hotel/N
across/I
the/D
street/N
,/,
the/D
Amfac/N
,/,
had/V
been/V
hit/V
harder/R
:/:
A/D
large/J
sheet/N
of/I
its/P
concrete/J
facade/N
and/C
several/J
window/N
balconies/N
were/V
torn/V
away/R
./.
###/###
The/D
Westin/N
staff/N
had/V
,/,
kindly/R
,/,
set/V
out/R
lighted/V
candles/N
in/I
the/D
ballroom/N
,/,
prepared/V
a/D
cold-cuts/N
buffet/N
and/C
passed/V
around/R
pillows/N
and/C
blankets/N
./.
###/###
I/P
fell/V
asleep/J
on/I
the/D
lobby/N
floor/N
,/,
next/I
to/T
a/D
man/N
wearing/V
a/D
Chicago/N
Cubs/N
jacket/N
./.
###/###
I/P
expected/V
him/P
to/T
say/V
,/,
``/`
I/P
told/V
you/P
so/R
,/,
''/'
but/C
he/P
already/R
was/V
snoring/V
./.
###/###
The/D
journalistic/J
consensus/N
was/V
that/I
the/D
earthquake/N
made/V
the/D
World/N
Series/N
seem/V
unimportant/J
./.
###/###
My/P
response/N
was/V
that/I
sports/N
rarely/R
are/V
important/J
,/,
only/R
diverting/V
,/,
and/C
the/D
quake/N
merely/R
highlighted/V
that/D
fact/N
./.
###/###
Should/M
the/D
rest/N
of/I
the/D
Series/N
be/V
played/V
at/I
all/D
?/.
###/###
The/D
quake/N
and/C
baseball/N
were/V
n't/R
related/V
,/,
unlike/I
the/D
massacre/N
of/I
athletes/N
that/W
attended/V
the/D
1972/C
Olympics/N
./.
###/###
That/I
heavily/R
politicized/V
event/N
learned/V
nothing/N
from/I
the/D
horrifying/J
experience/N
,/,
and/C
seems/V
doomed/V
to/T
repeat/V
it/P
./.
###/###
Two/C
ironies/N
intrude/V
./.
###/###
This/D
has/V
been/V
widely/R
dubbed/V
the/D
BART/N
Series/N
,/,
after/I
the/D
local/J
subway/N
line/N
,/,
and/C
the/D
Bay/N
Bridge/N
Series/N
./.
###/###
Flags/N
fly/V
at/I
half-staff/J
for/I
the/D
death/N
of/I
Bart/N
Giamatti/N
,/,
the/D
late/J
baseball/N
commissioner/N
,/,
and/C
now/R
the/D
Bay/N
Bridge/N
lies/V
in/I
ruins/N
./.
###/###
A/D
Series/N
that/W
was/V
shaping/V
up/R
as/I
the/D
dullest/J
since/I
the/D
one-sided/J
Detroit-over-San/J
Diego/J
go/N
of/I
1984/C
has/V
become/V
memorable/J
in/I
the/D
least/J
fortunate/J
way/N
./.
###/###
Still/R
,/,
its/P
edge/N
is/V
lost/V
./.
###/###
It/P
now/R
will/M
be/V
played/V
mostly/R
for/I
the/D
record/N
,/,
and/C
should/M
be/V
wrapped/V
up/R
as/R
quickly/R
as/I
possible/J
,/,
without/I
``/`
off/J
''/'
days/N
./.
###/###
And/C
I/P
will/M
never/R
again/R
complain/V
about/I
a/D
rainout/N
./.
###/###
The/D
disarray/N
in/I
the/D
junk-bond/N
market/N
that/W
began/V
last/J
month/N
with/I
a/D
credit/N
crunch/N
at/I
Campeau/N
Corp./N
has/V
offered/V
commercial/J
banks/N
a/D
golden/J
opportunity/N
to/T
play/V
a/D
greater/J
role/N
in/I
financing/N
billion-dollar/J
takeovers/N
./.
###/###
But/C
two/C
big/J
New/N
York/N
banks/N
seem/V
to/T
have/V
kicked/V
those/D
chances/N
away/R
,/,
for/I
the/D
moment/N
,/,
with/I
the/D
embarrassing/J
failure/N
of/I
Citicorp/N
and/C
Chase/N
Manhattan/N
Corp./N
to/T
deliver/V
$/$
7.2/C
billion/C
in/I
bank/N
financing/V
for/I
a/D
leveraged/V
buy-out/N
of/I
United/N
Airlines/N
parent/N
UAL/N
Corp/N
./.
###/###
For/I
more/J
than/I
a/D
decade/N
,/,
banks/N
have/V
been/V
pressing/V
Congress/N
and/C
banking/N
regulators/N
for/I
expanded/V
powers/N
to/T
act/V
like/I
securities/N
firms/N
in/I
playing/V
Wall/N
Street/N
's/P
lucrative/J
takeover/N
game/N
,/,
from/I
giving/V
mergers/N
advice/N
all/D
the/D
way/N
to/T
selling/V
and/C
trading/V
high-yield/J
junk/N
bonds/N
./.
###/###
Those/D
expanded/V
powers/N
reached/V
their/P
zenith/N
in/I
July/N
when/W
Bankers/N
Trust/N
New/N
York/N
Corp./N
provided/V
mergers/N
advice/N
,/,
an/D
equity/N
investment/N
and/C
bank/N
loans/N
for/I
the/D
$/$
3.65/C
billion/C
leveraged/V
buy-out/N
of/I
Northwest/N
Airlines/N
parent/N
NWA/N
Inc/N
./.
###/###
One/C
of/I
the/D
major/J
selling/N
points/N
used/V
by/I
Los/N
Angeles/N
financier/N
Alfred/N
Checchi/N
in/I
getting/V
the/D
takeover/N
approved/V
was/V
that/I
the/D
deal/N
did/V
n't/R
include/V
any/D
junk/N
bonds/N
./.
###/###
That/D
was/V
seen/V
as/I
an/D
advantage/N
in/I
lobbying/V
airline/N
employees/N
and/C
Washington/N
regulators/N
for/I
approval/N
of/I
the/D
contested/V
takeover/N
./.
###/###
All/D
$/$
3.35/C
billion/C
in/I
debt/N
for/I
the/D
deal/N
was/V
supplied/V
by/I
banks/N
./.
###/###
Charles/N
Nathan/N
,/,
co-head/N
of/I
mergers/N
and/C
acquisitions/N
at/I
Salomon/N
Brothers/N
Inc./N
,/,
says/V
it/P
is/V
natural/J
for/I
banks/N
to/T
try/V
to/T
expand/V
beyond/I
their/P
bread-and-butter/J
business/N
of/I
providing/V
senior/J
debt/N
for/I
buy-outs/N
./.
###/###
But/C
the/D
UAL/N
collapse/N
,/,
he/P
says/V
,/,
``/`
may/M
tell/V
you/P
it/P
's/V
not/R
going/V
to/T
work/V
that/R
easily/R
./.
''/'
###/###
David/N
Batchelder/N
,/,
a/D
mergers/N
adviser/N
in/I
La/N
Jolla/N
,/,
Calif./N
,/,
who/W
aided/V
Los/N
Angeles/N
investor/N
Marvin/N
Davis/N
on/I
the/D
bids/N
which/W
put/V
both/D
UAL/N
and/C
NWA/N
in/I
play/N
as/I
takeover/N
candidates/N
this/D
year/N
,/,
says/V
that/I
banks/N
have/V
been/V
``/`
preparing/V
to/T
play/V
a/D
larger/J
and/C
larger/J
role/N
in/I
acquisition/N
financing/N
./.
''/'
###/###
Mr./N
Batchelder/N
says/V
that/I
in/I
the/D
past/N
,/,
banks/N
would/M
normally/R
have/V
loaned/V
65/C
%/N
of/I
a/D
total/J
buy-out/N
price/N
,/,
with/I
the/D
loans/N
secured/V
by/I
the/D
target/N
company/N
's/P
assets/N
./.
###/###
Another/D
20/C
%/N
of/I
the/D
borrowed/V
funds/N
would/M
come/V
from/I
the/D
sale/N
to/T
investors/N
of/I
junk/N
bonds/N
,/,
which/W
offer/V
less/J
security/N
and/C
typically/R
carry/V
higher/J
yields/N
than/I
bank/N
loans/N
./.
###/###
Mr./N
Checchi/N
's/P
purchase/N
of/I
NWA/N
,/,
Mr./N
Batchelder/N
notes/V
,/,
``/`
was/V
probably/R
the/D
most/R
aggressive/J
to/T
date/V
,/,
''/'
with/I
bank/N
debt/N
at/I
85/C
%/N
of/I
the/D
purchase/N
price/N
./.
###/###
But/C
Mr./N
Batchelder/N
says/V
that/I
Citicorp/N
's/P
``/`
failure/N
to/T
deliver/V
''/'
on/I
its/P
promise/N
to/T
raise/V
the/D
UAL/N
bank/N
debt/N
for/I
a/D
labor-management/J
buy-out/N
group/N
``/`
is/V
very/R
distressing/J
to/T
potential/J
users/N
of/I
a/D
`/`
highly-confident/J
'/'
letter/N
from/I
commercial/J
banks/N
./.
''/'
###/###
His/P
client/N
,/,
Mr./N
Davis/N
,/,
used/V
just/R
such/J
a/D
letter/N
from/I
Citicorp/N
in/I
pursuing/V
UAL/N
;/:
Citicorp/N
later/R
agreed/V
to/T
work/V
with/I
a/D
competing/V
UAL/N
buy-out/N
group/N
./.
###/###
Executives/N
of/I
Citicorp/N
and/C
Chase/N
Manhattan/N
declined/V
to/T
comment/V
on/I
either/C
the/D
UAL/N
situation/N
,/,
or/C
on/I
the/D
changing/V
nature/N
of/I
banks/N
'/P
role/N
in/I
financing/V
takeovers/N
./.
###/###
In/I
the/D
wake/N
of/I
Campeau/N
's/P
problems/N
,/,
prices/N
of/I
junk/N
bonds/N
tumbled/V
,/,
throwing/V
into/I
doubt/N
the/D
ability/N
of/I
corporate/J
acquirers/N
to/T
finance/V
large/J
takeovers/N
with/I
the/D
help/N
of/I
junk/N
bond/N
sales/N
./.
###/###
Mark/N
Solow/N
,/,
senior/J
managing/V
director/N
at/I
Manufacturers/N
Hanover/N
Trust/N
Co./N
,/,
says/V
the/D
falloff/N
in/I
junk/N
bonds/N
may/M
yet/R
open/V
new/J
business/N
opportunities/N
to/T
banks/N
in/I
structuring/N
takeovers/N
./.
###/###
But/C
he/P
warns/V
that/I
banks/N
will/M
have/V
``/`
to/T
have/V
enough/J
discipline/N
''/'
not/R
to/T
make/V
loans/N
that/W
are/V
too/R
risky/J
./.
###/###
In/I
fact/N
,/,
Manufacturers/N
Hanover/N
said/V
in/I
its/P
third-quarter/J
earnings/N
report/N
that/I
fees/N
from/I
syndicating/V
loans/N
to/T
other/J
banks/N
dropped/V
48/C
%/N
,/,
to/T
$/$
21/C
million/C
./.
###/###
``/`
We/P
did/V
n't/R
take/V
part/N
in/I
a/D
lot/N
of/I
deals/N
because/I
their/P
credit/N
quality/N
was/V
poor/J
,/,
''/'
says/V
a/D
bank/N
spokesman/N
./.
###/###
James/N
B./N
Lee/N
,/,
head/N
of/I
syndications/N
and/C
private/J
placements/N
at/I
Chemical/N
Banking/N
Corp./N
,/,
said/V
he/P
believes/V
banks/N
can/M
still/R
make/V
a/D
credible/J
offer/N
of/I
one-stop/J
shopping/N
for/I
takeover/N
finance/N
./.
###/###
As/I
evidence/N
,/,
he/P
cites/V
yesterday/N
's/P
arrangement/N
for/I
the/D
final/J
financing/N
of/I
a/D
$/$
3/C
billion/C
bid/N
for/I
American/N
Medical/N
International/N
Inc./N
in/I
which/W
Chemical/N
served/V
as/I
both/D
the/D
lead/N
bank/N
and/C
an/D
equity/N
investor/N
./.
###/###
Beyond/I
the/D
current/J
weakness/N
in/I
the/D
junk/N
bond/N
market/N
,/,
banks/N
have/V
another/D
advantage/N
over/I
investment/N
banks/N
in/I
financing/V
contested/V
takeovers/N
./.
###/###
Arthur/N
Fleischer/N
Jr./N
,/,
a/D
takeover/N
lawyer/N
at/I
Fried/N
Frank/N
Harris/N
Shriver/N
&/C
Jacobson/N
,/,
notes/V
that/I
``/`
a/D
political/J
and/C
emotional/J
bias/N
''/'
has/V
developed/V
against/I
junk/N
bonds/N
./.
###/###
One/C
hostile/J
bidder/N
who/W
deliberately/R
avoided/V
using/V
junk/N
bonds/N
was/V
Paramount/N
Communications/N
Inc./N
in/I
its/P
initial/J
offer/N
to/T
acquire/V
Time/N
Inc./N
for/I
$/$
10.7/C
billion/C
,/,
or/C
$/$
175/C
a/D
share/N
./.
###/###
A/D
Paramount/N
spokesman/N
says/V
that/D
decision/N
was/V
based/V
on/I
the/D
financial/J
,/,
not/R
political/J
,/,
drawbacks/N
of/I
junk/N
bonds/N
./.
###/###
But/C
some/D
observers/N
believe/V
Paramount/N
Chairman/N
Martin/N
Davis/N
wanted/V
to/T
avoid/V
the/D
possible/J
taint/N
of/I
being/V
perceived/V
as/I
a/D
corporate/J
raider/N
in/I
his/P
controversial/J
bid/N
for/I
Time/N
./.
###/###
In/I
the/D
end/N
,/,
Mr./N
Davis/N
used/V
junk/N
bonds/N
so/R
that/I
he/P
could/M
raise/V
Paramount/N
's/P
bid/N
to/T
$/$
200/C
a/D
share/N
./.
###/###
Some/D
Monday-morning/J
quarterbacks/N
said/V
the/D
initial/J
lower/J
bid/N
,/,
without/I
junk/N
bonds/N
,/,
was/V
a/D
factor/N
in/I
his/P
losing/V
the/D
company/N
./.
###/###
Time/N
eluded/V
Paramount/N
by/I
acquiring/V
Warner/N
Communications/N
Inc/N
./.
###/###
The/D
success/N
of/I
the/D
NWA/N
financing/N
,/,
and/C
the/D
failure/N
of/I
the/D
UAL/N
deal/N
,/,
also/R
seem/V
to/T
highlight/V
the/D
important/J
new/J
role/N
in/I
takeover/N
financing/N
being/V
played/V
by/I
Japanese/J
banks/N
./.
###/###
Japanese/J
banks/N
accounted/V
for/I
50/C
%/N
of/I
the/D
NWA/N
bank/N
debt/N
,/,
according/V
to/T
a/D
report/N
by/I
Transportation/N
Secretary/N
Samuel/N
Skinner/N
./.
###/###
But/C
it/P
was/V
broad-scale/J
rejection/N
by/I
Japanese/J
banks/N
that/W
helped/V
seal/V
the/D
fate/N
of/I
the/D
attempt/N
to/T
buy/V
UAL/N
./.
###/###
Citicorp/N
and/C
Chase/N
are/V
attempting/V
to/T
put/V
together/R
a/D
new/J
,/,
lower/J
bid/N
./.
###/###
Takanori/N
Mizuno/N
,/,
chief/J
economist/N
of/I
the/D
Institute/N
for/I
Financial/N
Affairs/N
Inc./N
,/,
a/D
Tokyo/N
research/N
center/N
on/I
finance/N
and/C
economics/N
,/,
says/V
,/,
``/`
The/D
junk/N
bond/N
market/N
became/V
very/R
jittery/J
,/,
and/C
there/E
's/V
a/D
fear/N
of/I
a/D
coming/J
recession/N
and/C
the/D
possible/J
bankruptcy/N
of/I
LBO/N
companies/N
./.
###/###
Harley-Davidson/N
Inc./N
filed/V
suit/N
in/I
federal/J
court/N
here/R
,/,
alleging/V
that/I
a/D
group/N
that/W
holds/V
6.2/C
%/N
of/I
its/P
stock/N
made/V
``/`
false/J
,/,
deceptive/J
and/C
misleading/J
''/'
statements/N
in/I
recent/J
regulatory/J
filings/N
and/C
public/J
announcements/N
./.
###/###
Harley-Davidson/N
's/P
complaint/N
claims/V
that/I
the/D
group/N
,/,
led/V
by/I
investor/N
Malcolm/N
I./N
Glazer/N
,/,
violated/V
securities/N
laws/N
by/I
failing/V
to/T
disclose/V
plans/N
to/T
purchase/V
15/C
%/N
of/I
the/D
company/N
's/P
shares/N
outstanding/J
and/C
that/I
when/W
the/D
required/V
Hart-Scott-Rodino/J
filing/N
eventually/R
was/V
made/V
,/,
it/P
did/V
n't/R
disclose/V
the/D
group/N
's/P
alleged/J
earlier/J
violation/N
of/I
the/D
so-called/J
prior-notice/J
requirements/N
of/I
the/D
law/N
./.
###/###
Mr./N
Glazer/N
could/M
n't/R
immediately/R
be/V
reached/V
to/T
comment/V
./.
###/###
But/C
when/W
Harley/N
last/J
week/N
publicly/R
questioned/V
the/D
legality/N
of/I
the/D
group/N
's/P
filing/N
procedures/N
,/,
the/D
Rochester/N
,/,
N.Y./N
,/,
investor/N
said/V
``/`
we/P
complied/V
with/I
every/D
law/N
,/,
''/'
and/C
he/P
denied/V
any/D
wrongdoing/N
./.
###/###
The/D
Glazer/N
group/N
said/V
in/I
a/D
Securities/N
and/C
Exchange/N
Commission/N
filing/N
in/I
early/J
October/N
that/I
it/P
may/M
seek/V
a/D
controlling/N
interest/N
in/I
Harley-Davidson/N
,/,
or/C
seek/V
representation/N
on/I
the/D
company/N
's/P
board/N
./.
###/###
Harley/N
has/V
said/V
it/P
does/V
n't/R
intend/V
to/T
be/V
acquired/V
by/I
the/D
Glazer/N
group/N
or/C
any/D
other/J
party/N
./.
###/###
Inland/N
Steel/N
Industries/N
Inc./N
,/,
battered/V
by/I
lower/J
volume/N
and/C
higher/J
costs/N
,/,
posted/V
a/D
75/C
%/N
drop/N
in/I
third-quarter/J
earnings/N
./.
###/###
The/D
nation/N
's/P
fourth-largest/J
steelmaker/N
earned/V
$/$
18.3/C
million/C
,/,
or/C
43/C
cents/N
a/D
share/N
,/,
compared/V
with/I
$/$
61/C
million/C
,/,
or/C
$/$
1.70/C
a/D
share/N
,/,
a/D
year/N
earlier/R
,/,
when/W
the/D
industry/N
was/V
enjoying/V
peak/J
demand/N
and/C
strong/J
pricing/N
./.
###/###
Sales/N
fell/V
to/T
$/$
981.2/C
million/C
from/I
$/$
1.02/C
billion/C
./.
###/###
The/D
earnings/N
also/R
mark/V
a/D
significant/J
drop/N
from/I
the/D
second/J
quarter/N
's/P
$/$
45.3/C
million/C
or/C
$/$
1.25/C
a/D
share/N
./.
###/###
Moreover/R
,/,
the/D
earnings/N
were/V
well/R
below/I
analysts/N
'/P
expectations/N
of/I
about/R
$/$
1.16/C
a/D
share/N
./.
###/###
In/I
composite/J
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
,/,
Inland/N
closed/V
yesterday/N
at/I
$/$
35.875/C
a/D
share/N
,/,
down/R
$/$
1/C
./.
###/###
The/D
company/N
attributed/V
the/D
earnings/N
drop/N
to/T
lower/J
volume/N
related/V
to/T
seasonal/J
demand/N
and/C
the/D
soft/J
consumer/N
durable/J
market/N
,/,
especially/R
in/I
the/D
automotive/J
sector/N
./.
###/###
However/R
,/,
the/D
company/N
also/R
lost/V
orders/N
because/I
of/I
prolonged/V
labor/N
talks/N
in/I
the/D
second/J
quarter/N
./.
###/###
Third-quarter/J
shipments/N
slipped/V
7/C
%/N
from/I
the/D
year-ago/J
period/N
,/,
and/C
17/C
%/N
from/I
this/D
year/N
's/P
second/J
quarter/N
./.
###/###
Profit/N
of/I
steel/N
shipped/V
for/I
the/D
company/N
's/P
steel/N
segment/N
slid/V
to/T
$/$
26/C
a/D
ton/N
,/,
from/I
$/$
66/C
a/D
ton/N
a/D
year/N
earlier/R
and/C
$/$
57/C
a/D
ton/N
a/D
quarter/N
earlier/R
./.
###/###
Analysts/N
noted/V
that/I
the/D
disappointing/J
results/N
do/V
n't/R
reflect/V
lower/J
prices/N
for/I
steel/N
products/N
./.
###/###
Charles/N
Bradford/N
,/,
an/D
analyst/N
with/I
Merrill/N
Lynch/N
Capital/N
Markets/N
,/,
said/V
higher/J
prices/N
for/I
galvanized/J
and/C
cold-rolled/J
products/N
offset/V
lower/J
prices/N
for/I
bar/N
,/,
hot-rolled/J
and/C
structural/J
steel/N
./.
###/###
Structural/J
steel/N
,/,
which/W
primarily/R
serves/V
the/D
construction/N
market/N
,/,
was/V
especially/R
hurt/V
by/I
a/D
15/C
%/N
price/N
drop/N
,/,
Mr./N
Bradford/N
said/V
./.
###/###
The/D
company/N
said/V
its/P
integrated/V
steel/N
sector/N
was/V
also/R
hurt/V
by/I
higher/J
raw/J
material/N
,/,
repair/N
and/C
maintenance/N
,/,
and/C
labor/N
costs/N
./.
###/###
The/D
increased/V
labor/N
costs/N
became/V
effective/J
Aug./N
1/C
under/I
terms/N
of/I
the/D
four-year/J
labor/N
agreement/N
with/I
the/D
United/N
Steelworkers/N
union/N
./.
###/###
Meanwhile/R
,/,
the/D
company/N
's/P
service/N
center/N
segment/N
,/,
which/W
saw/V
operating/N
profit/N
drop/V
to/T
$/$
11.5/C
million/C
from/I
$/$
30.7/C
million/C
a/D
year/N
ago/R
,/,
experienced/V
much/J
of/I
the/D
same/J
demand/N
and/C
cost/N
problems/N
,/,
as/R
well/R
as/I
start-up/N
costs/N
associated/V
with/I
a/D
coil/N
processing/N
facility/N
in/I
Chicago/N
and/C
an/D
upgraded/V
computer/N
information/N
system/N
./.
###/###
Inland/N
Chairman/N
Frank/N
W./N
Luerssen/N
said/V
the/D
company/N
's/P
short-term/J
outlook/N
is/V
``/`
clouded/V
by/I
uncertainties/N
in/I
the/D
economy/N
and/C
financial/J
markets/N
./.
''/'
###/###
However/R
,/,
he/P
noted/V
that/I
steel/N
mill/N
bookings/N
are/V
up/R
from/I
early/J
summer/N
levels/N
,/,
and/C
that/I
he/P
expects/V
the/D
company/N
to/T
improve/V
its/P
cost/N
performance/N
in/I
the/D
fourth/J
quarter/N
./.
###/###
In/I
the/D
first/J
nine/C
months/N
,/,
profit/N
was/V
$/$
113/C
million/C
,/,
or/C
$/$
3.04/C
a/D
share/N
,/,
on/I
sales/N
of/I
$/$
3.19/C
billion/C
,/,
compared/V
with/I
$/$
204.5/C
million/C
,/,
or/C
$/$
5.76/C
a/D
share/N
,/,
on/I
sales/N
of/I
$/$
3.03/C
billion/C
,/,
a/D
year/N
earlier/R
./.
###/###
The/D
``/`
seismic/J
''/'
activity/N
of/I
a/D
financial/J
market/N
bears/V
a/D
resemblance/N
to/T
the/D
seismic/J
activity/N
of/I
the/D
earth/N
./.
###/###
When/W
things/N
are/V
quiet/J
-LRB-/-
low/J
volatility/N
-RRB-/-
,/,
the/D
structures/N
on/I
which/W
markets/N
stand/V
can/M
be/V
relatively/R
inefficient/J
and/C
still/R
perform/V
their/P
functions/N
adequately/R
./.
###/###
However/R
,/,
when/W
powerful/J
forces/N
start/V
shaking/V
the/D
market/N
's/P
structure/N
,/,
the/D
more/R
``/`
earthquake-resistant/J
''/'
it/P
is/V
,/,
the/D
better/J
its/P
chance/N
for/I
survival/N
./.
###/###
America/N
's/P
financial/J
markets/N
do/V
not/R
yet/R
have/V
all/D
the/D
required/V
modern/N
features/N
required/V
to/T
make/V
them/P
fully/R
``/`
aftershock-resistant/J
./.
''/'
###/###
Investors/N
lack/V
equal/J
access/N
to/T
the/D
markets/N
'/P
trading/N
arena/N
and/C
its/P
information/N
./.
###/###
That/D
structural/J
lack/N
is/V
crucial/J
because/I
investors/N
are/V
the/D
only/J
source/N
of/I
market/N
liquidity/N
./.
###/###
And/C
liquidity/N
is/V
what/W
markets/N
need/V
to/T
damp/V
quakes/N
and/C
aftershocks/N
./.
###/###
In/I
today/N
's/P
markets/N
,/,
specialists/N
-LRB-/-
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
-RRB-/-
and/C
``/`
upstairs/N
''/'
market/N
makers/N
-LRB-/-
in/I
the/D
over-the-counter/J
market/N
-RRB-/-
are/V
the/D
only/J
market/N
participants/N
allowed/V
to/T
play/V
a/D
direct/J
role/N
in/I
the/D
price-determination/J
process/N
./.
###/###
When/W
they/P
halt/V
trading/N
,/,
all/D
market/N
liquidity/N
is/V
gone/V
./.
###/###
And/C
when/W
any/D
component/N
of/I
the/D
market/N
--/:
cash/N
,/,
futures/N
or/C
options/N
--/:
loses/V
liquidity/N
,/,
the/D
price/N
discovery/N
system/N
-LRB-/-
the/D
way/N
prices/N
are/V
determined/V
-RRB-/-
becomes/V
flawed/J
or/C
is/V
lost/V
entirely/R
for/I
a/D
time/N
./.
###/###
Last/J
Friday/N
the/D
13th/J
-LRB-/-
as/R
well/R
as/I
two/C
years/N
ago/R
this/D
week/N
-RRB-/-
the/D
markets/N
became/V
unlinked/J
./.
###/###
When/W
that/D
happened/V
,/,
``/`
seismic/J
''/'
tremors/N
of/I
fear/N
--/:
much/R
like/I
the/D
shock/N
waves/N
created/V
by/I
an/D
earthquake/N
--/:
coursed/V
through/I
the/D
market/N
and/C
increased/V
the/D
market/N
's/P
volatility/N
./.
###/###
Lack/N
of/I
important/J
,/,
needed/V
information/N
can/M
cause/V
fear/N
./.
###/###
Fear/N
is/V
the/D
father/N
of/I
panic/N
./.
###/###
Panic/N
frequently/R
results/V
in/I
irrational/J
behavior/N
./.
###/###
And/C
in/I
financial/J
markets/N
,/,
irrational/J
behavior/N
is/V
sometimes/R
translated/V
into/I
catastrophe/N
./.
###/###
When/W
market/N
tremors/N
start/V
,/,
it/P
is/V
crucial/J
that/I
as/I
much/J
information/N
about/I
transaction/N
prices/N
and/C
the/D
supply-demand/J
curve/N
-LRB-/-
buy/V
and/C
sell/V
orders/N
at/I
various/J
prices/N
-RRB-/-
be/V
made/V
available/J
to/T
all/D
,/,
not/R
just/R
to/T
market/N
makers/N
./.
###/###
Because/I
of/I
a/D
lack/N
of/I
information/N
and/C
access/N
,/,
many/J
investors/N
--/:
including/V
the/D
very/J
ones/N
whose/W
buying/N
power/N
could/M
restore/V
stability/N
and/C
damp/V
volatility/N
--/:
are/V
forced/V
to/T
stand/V
on/I
the/D
sidelines/N
when/W
they/P
are/V
most/R
needed/V
,/,
because/I
of/I
their/P
ignorance/N
of/I
important/J
market/N
information/N
./.
###/###
To/T
add/V
aftershock-damping/J
power/N
to/T
America/N
's/P
markets/N
,/,
a/D
modern/J
,/,
electronic/J
trading/N
system/N
should/M
be/V
implemented/V
that/D
permits/V
equal/J
access/N
to/T
the/D
trading/N
arena/N
-LRB-/-
and/C
the/D
information/N
that/W
would/M
automatically/R
accompany/V
such/J
access/N
-RRB-/-
by/I
investors/N
--/:
particularly/R
institutional/J
investors/N
./.
###/###
Contrary/J
to/T
some/D
opinions/N
,/,
the/D
trading/N
activities/N
of/I
specialists/N
and/C
other/J
market/N
makers/N
do/V
not/R
provide/V
liquidity/N
to/T
the/D
market/N
as/I
a/D
whole/N
./.
###/###
What/W
market/N
makers/N
provide/V
is/V
immediacy/N
,/,
a/D
very/R
valuable/J
service/N
./.
###/###
Liquidity/N
is/V
not/R
a/D
service/N
./.
###/###
It/P
is/V
a/D
market/N
attribute/N
--/:
the/D
ability/N
to/T
absorb/V
selling/N
orders/N
without/I
causing/V
significant/J
price/N
changes/N
in/I
the/D
absence/N
of/I
news/N
./.
###/###
Market/N
makers/N
buy/V
what/W
investors/N
wish/V
to/T
sell/V
;/:
their/P
business/N
is/V
reselling/V
these/D
unwanted/J
positions/N
as/R
quickly/R
as/I
possible/J
to/T
other/J
investors/N
,/,
and/C
at/I
a/D
profit/N
./.
###/###
As/I
a/D
result/N
,/,
while/I
any/D
one/C
customer/N
may/M
purchase/V
immediacy/N
by/I
selling/V
to/T
a/D
market/N
maker/N
-LRB-/-
which/W
is/V
micro-liquidity/N
for/I
the/D
investor/N
-RRB-/-
,/,
the/D
market/N
as/I
a/D
whole/N
remains/V
in/I
the/D
same/J
circumstances/N
it/P
was/V
before/I
the/D
transaction/N
:/:
The/D
unwanted/J
position/N
is/V
still/R
an/D
unwanted/J
position/N
;/:
only/R
the/D
identity/N
of/I
the/D
seller/N
has/V
changed/V
./.
###/###
In/I
fact/N
it/P
can/M
be/V
argued/V
that/I
increasing/V
capital/N
commitments/N
by/I
market/N
makers/N
-LRB-/-
a/D
result/N
of/I
some/D
post-1987/J
crash/J
studies/N
-RRB-/-
also/R
increases/V
market/N
volatility/N
,/,
since/I
the/D
more/J
securities/N
are/V
held/V
by/I
market/N
makers/N
at/I
any/D
given/V
time/N
,/,
the/D
more/J
selling/N
pressure/N
is/V
overhanging/V
the/D
market/N
./.
###/###
In/I
an/D
open/J
electronic/J
system/N
,/,
any/D
investor/N
wishing/V
to/T
pay/V
for/I
real-time/J
access/N
to/T
the/D
trading/N
arena/N
through/I
a/D
registered/V
broker-dealer/N
would/M
be/V
able/J
to/T
see/V
the/D
entire/J
supply-demand/J
curve/N
-LRB-/-
buy/V
and/C
sell/V
orders/N
at/I
each/D
price/N
-RRB-/-
entered/V
by/I
dealers/N
and/C
investors/N
alike/R
,/,
and/C
to/T
enter/V
and/C
execute/V
orders/N
./.
###/###
Current/J
quotations/N
would/M
reflect/V
the/D
combined/V
financial/J
judgment/N
of/I
all/D
market/N
participants/N
--/:
not/R
just/R
those/D
of/I
intermediaries/N
who/W
become/V
extremely/R
risk-averse/J
during/I
times/N
of/I
crisis/N
./.
###/###
Investors/N
and/C
professionals/N
alike/R
would/M
compete/V
on/I
the/D
level/N
playing/N
field/N
Congress/N
sought/V
and/C
called/V
a/D
``/`
national/J
market/N
system/N
''/'
-LRB-/-
not/R
yet/R
achieved/V
-RRB-/-
almost/R
15/C
years/N
ago/R
when/W
it/P
passed/V
the/D
Securities/N
Reform/N
Act/N
of/I
1975/C
./.
###/###
Last/J
Friday/N
's/P
market/N
gyrations/N
did/V
not/R
result/V
in/I
severe/J
``/`
aftershocks/N
./.
''/'
###/###
Were/V
we/P
smart/J
or/C
just/R
lucky/J
?/.
###/###
I/P
'm/V
not/R
certain/J
./.
###/###
But/C
I/P
am/V
sure/J
we/P
need/V
to/T
maximize/V
our/P
``/`
earthquake/N
''/'
protection/N
by/I
making/V
certain/J
that/I
our/P
market/N
structures/N
let/V
investors/N
add/V
their/P
mighty/J
shock-damping/J
power/N
to/T
our/P
nation/N
's/P
markets/N
./.
###/###
Mr./N
Peake/N
is/V
chairman/N
of/I
his/P
own/J
consulting/N
company/N
in/I
Englewood/N
,/,
N.J/N
./.
###/###
NOW/R
YOU/P
SEE/V
IT/P
,/,
now/R
you/P
do/V
n't/R
./.
###/###
The/D
recession/N
,/,
that/D
is/V
./.
###/###
The/D
economy/N
's/P
stutter/N
steps/N
leave/V
investors/N
wondering/V
whether/C
things/N
are/V
slowing/V
down/R
or/C
speeding/V
up/R
./.
###/###
So/R
often/R
are/V
government/N
statistics/N
revised/V
that/I
they/P
seem/V
to/T
resemble/V
a/D
spinning/J
weather/N
vane/N
./.
###/###
For/I
the/D
past/J
seven/C
years/N
,/,
investors/N
have/V
had/V
the/D
wind/N
at/I
their/P
backs/N
,/,
in/I
the/D
form/N
of/I
a/D
generally/R
growing/V
economy/N
./.
###/###
Some/D
may/M
have/V
forgotten/V
--/:
and/C
some/D
younger/J
ones/N
may/M
never/R
have/V
experienced/V
--/:
what/W
it/P
's/V
like/J
to/T
invest/V
during/I
a/D
recession/N
./.
###/###
Different/J
tactics/N
are/V
called/V
for/I
,/,
as/I
losing/V
money/N
becomes/V
easier/J
and/C
making/V
money/N
becomes/V
tougher/J
./.
###/###
For/I
those/D
investors/N
who/W
believe/V
--/:
or/C
fear/V
--/:
that/D
1990/C
will/M
be/V
a/D
recession/N
year/N
,/,
many/J
economists/N
and/C
money/N
managers/N
agree/V
on/I
steps/N
that/W
can/M
be/V
taken/V
to/T
lower/V
the/D
risks/N
in/I
a/D
portfolio/N
./.
###/###
In/I
a/D
nutshell/N
,/,
pros/N
advise/V
investors/N
who/W
expect/V
a/D
slowdown/N
to/T
hold/V
fewer/J
stocks/N
than/I
usual/J
and/C
to/T
favor/V
shares/N
of/I
big/J
companies/N
in/I
``/`
defensive/J
''/'
industries/N
./.
###/###
A/D
heavy/J
dose/N
of/I
cash/N
is/V
prescribed/V
,/,
along/I
with/I
a/D
heavier-than-usual/J
allotment/N
to/T
bonds/N
--/:
preferably/R
government/N
bonds/N
./.
###/###
It/P
's/V
tempting/J
to/T
think/V
these/D
defensive/J
steps/N
can/M
be/V
delayed/V
until/I
a/D
recession/N
is/V
clearly/R
at/I
hand/N
./.
###/###
But/C
that/D
may/M
not/R
be/V
possible/J
,/,
because/I
recessions/N
often/R
take/V
investors/N
by/I
surprise/N
./.
###/###
``/`
They/P
always/R
seem/V
to/T
come/V
a/D
bit/N
later/R
than/I
you/P
expect/V
./.
###/###
When/W
they/P
do/V
hit/V
,/,
they/P
hit/V
fast/R
,/,
''/'
says/V
David/N
A./N
Wyss/N
,/,
chief/J
financial/J
economist/N
at/I
the/D
Data/N
Resources/N
division/N
of/I
McGraw-Hill/N
Inc/N
./.
###/###
Though/I
he/P
himself/P
does/V
n't/R
expect/V
a/D
recession/N
soon/R
,/,
Mr./N
Wyss/N
advises/V
people/N
who/W
do/V
that/I
``/`
the/D
best/J
thing/N
to/T
be/V
in/I
is/V
long/J
that/D
is/V
,/,
20-year/J
to/T
30-year/J
Treasury/N
bonds/N
./.
''/'
###/###
The/D
reason/N
is/V
simple/J
,/,
Mr./N
Wyss/N
says/V
:/:
``/`
Interest/N
rates/N
almost/R
always/R
decline/V
during/I
recession/N
./.
''/'
###/###
As/R
surely/R
as/I
a/D
seesaw/N
tilts/V
,/,
falling/V
interest/N
rates/N
force/V
up/R
the/D
price/N
of/I
previously/R
issued/V
bonds/N
./.
###/###
They/P
are/V
worth/J
more/J
because/I
they/P
pay/V
higher/J
interest/N
than/I
newly/R
issued/V
bonds/N
do/V
./.
###/###
That/D
effect/N
holds/V
true/J
for/I
both/D
short-term/J
and/C
long-term/J
bonds/N
./.
###/###
But/C
short-term/J
bonds/N
ca/M
n't/R
rise/V
too/R
much/R
,/,
because/I
everyone/N
knows/V
they/P
will/M
be/V
redeemed/V
at/I
a/D
preset/J
price/N
fairly/R
soon/R
./.
###/###
Long-term/J
bonds/N
,/,
with/I
many/J
years/N
left/V
before/I
maturity/N
,/,
swing/V
more/R
widely/R
in/I
price/N
./.
###/###
But/C
not/R
just/R
any/D
bonds/N
will/M
do/V
./.
###/###
Corporate/J
bonds/N
``/`
are/V
usually/R
not/R
a/D
good/J
bet/N
in/I
a/D
recession/N
,/,
''/'
Mr./N
Wyss/N
says/V
./.
###/###
As/I
times/N
get/V
tougher/J
,/,
investors/N
fret/V
about/I
whether/I
companies/N
will/M
have/V
enough/J
money/N
to/T
pay/V
their/P
debts/N
./.
###/###
This/D
hurts/V
the/D
price/N
of/I
corporate/J
bonds/N
./.
###/###
Also/R
,/,
he/P
notes/V
,/,
``/`
most/J
corporate/J
bonds/N
are/V
callable/J
./.
''/'
###/###
That/D
means/V
that/I
a/D
corporation/N
,/,
after/I
a/D
specified/V
amount/N
of/I
time/N
has/V
passed/V
,/,
can/M
buy/V
back/R
its/P
bonds/N
by/I
paying/V
investors/N
the/D
face/N
value/N
-LRB-/-
plus/C
,/,
in/I
some/D
cases/N
,/,
a/D
sweetener/N
-RRB-/-
./.
###/###
When/W
interest/N
rates/N
have/V
dropped/V
,/,
it/P
makes/V
sense/N
for/I
corporations/N
to/T
do/V
just/R
that/D
;/:
they/P
then/R
save/V
on/I
interest/N
costs/N
./.
###/###
But/C
the/D
investors/N
are/V
left/V
stranded/V
with/I
money/N
to/T
reinvest/V
at/I
a/D
time/N
when/W
interest/N
rates/N
are/V
puny/J
./.
###/###
If/I
corporate/J
bonds/N
are/V
bad/J
in/I
recessions/N
,/,
junk/N
bonds/N
are/V
likely/J
to/T
be/V
the/D
worst/J
of/I
all/D
./.
###/###
It/P
's/V
an/D
``/`
absolute/J
necessity/N
''/'
to/T
get/V
out/I
of/I
junk/N
bonds/N
when/W
a/D
recession/N
is/V
in/I
the/D
offing/N
,/,
says/V
Avner/N
Arbel/N
,/,
professor/N
of/I
finance/N
at/I
Cornell/N
University/N
./.
###/###
``/`
Such/J
bonds/N
are/V
very/R
sensitive/J
to/T
the/D
downside/N
,/,
and/C
this/D
could/M
be/V
a/D
disaster/N
./.
''/'
###/###
Municipal/J
bonds/N
are/V
generally/R
a/D
bit/N
safer/J
than/I
corporate/J
bonds/N
in/I
a/D
recession/N
,/,
but/C
not/R
as/R
safe/J
as/I
bonds/N
issued/V
by/I
the/D
federal/J
government/N
./.
###/###
During/I
an/D
economic/J
slump/N
,/,
local/J
tax/N
revenues/N
often/R
go/V
down/R
,/,
raising/V
the/D
risks/N
associated/V
with/I
at/I
least/J
some/D
municipals/N
./.
###/###
And/C
,/,
like/I
corporates/N
,/,
many/J
municipal/J
bonds/N
are/V
callable/J
./.
###/###
But/C
a/D
few/J
experts/N
,/,
going/V
against/I
the/D
consensus/N
,/,
do/V
n't/R
think/V
bonds/N
would/M
help/V
investors/N
even/R
if/I
a/D
recession/N
is/V
in/I
the/D
offing/N
./.
###/###
One/C
of/I
these/D
is/V
Jeffrey/N
L./N
Beach/N
,/,
director/N
of/I
research/N
for/I
Underwood/N
Neuhaus/N
&/C
Co./N
,/,
a/D
brokerage/N
house/N
in/I
Houston/N
,/,
who/W
thinks/V
that/I
``/`
we/P
're/V
either/C
in/I
a/D
recession/N
or/C
about/I
to/T
go/V
into/I
one/C
./.
''/'
###/###
What/W
's/V
more/J
,/,
he/P
thinks/V
this/D
could/M
be/V
a/D
nastier/J
recession/N
than/I
usual/J
:/:
``/`
Once/R
the/D
downturn/N
comes/V
,/,
it/P
's/V
going/V
to/T
be/V
very/R
hard/J
to/T
reverse/V
./.
''/'
###/###
Investors/N
,/,
he/P
advises/V
,/,
``/`
should/M
be/V
cautious/J
,/,
''/'
holding/V
fewer/J
stocks/N
than/I
usual/J
and/C
also/R
shunning/V
bonds/N
./.
###/###
Because/I
he/P
sees/V
``/`
5/C
%/N
to/T
6/C
%/N
base/N
rate/N
of/I
inflation/N
in/I
the/D
economy/N
,/,
''/'
he/P
doubts/V
that/I
interest/N
rates/N
will/M
fall/V
much/R
any/D
time/N
soon/R
./.
###/###
Instead/R
,/,
Mr./N
Beach/N
says/V
,/,
investors/N
``/`
probably/R
should/M
be/V
carrying/V
a/D
very/R
high/J
level/N
of/I
cash/N
,/,
''/'
by/I
which/W
he/P
means/V
such/J
so-called/J
cash/N
equivalents/N
as/I
money-market/J
funds/N
and/C
Treasury/N
bills/N
./.
###/###
Greg/N
Confair/N
,/,
president/N
of/I
Sigma/N
Financial/N
Inc./N
in/I
Allentown/N
,/,
Pa./N
,/,
also/R
recommends/V
that/I
investors/N
go/V
heavily/R
for/I
cash/N
./.
###/###
He/P
is/V
n't/R
sure/R
a/D
recession/N
is/V
coming/V
,/,
but/C
says/V
the/D
other/J
likely/J
alternative/N
--/:
reignited/V
inflation/N
--/:
is/V
just/R
as/R
bad/J
./.
###/###
``/`
This/D
late/J
in/I
an/D
expansion/N
,/,
''/'
the/D
economy/N
tends/V
to/T
veer/V
off/R
either/C
into/I
damaging/J
inflation/N
or/C
into/I
a/D
recession/N
,/,
Mr./N
Confair/N
says/V
./.
###/###
The/D
Federal/N
Reserve/N
Board/N
's/P
plan/N
for/I
a/D
``/`
soft/J
landing/N
,/,
''/'
he/P
says/V
,/,
requires/V
the/D
Fed/N
to/T
navigate/V
``/`
an/D
ever-narrowing/J
corridor/N
./.
''/'
###/###
A/D
soft/J
landing/N
is/V
n't/R
something/N
that/W
can/M
be/V
achieved/V
once/R
and/C
for/I
all/D
,/,
Mr./N
Confair/N
adds/V
./.
###/###
It/P
has/V
to/T
be/V
engineered/V
over/R
and/C
over/R
again/R
,/,
month/N
after/I
month/N
./.
###/###
He/P
believes/V
that/I
the/D
task/N
facing/V
Fed/N
Chairman/N
Alan/N
Greenspan/N
is/V
so/R
difficult/J
that/I
it/P
resembles/V
``/`
juggling/N
a/D
double-bladed/J
ax/N
and/C
a/D
buzz/N
saw/N
./.
''/'
###/###
And/C
,/,
in/I
a/D
sense/N
,/,
that/D
's/V
the/D
kind/N
of/I
task/N
individuals/N
face/V
in/I
deciding/V
what/W
to/T
do/V
about/I
stocks/N
--/:
the/D
mainstay/N
of/I
most/J
serious/J
investors/N
'/P
portfolios/N
./.
###/###
It/P
comes/V
down/R
to/T
a/D
question/N
of/I
whether/I
to/T
try/V
to/T
``/`
time/V
''/'
the/D
market/N
./.
###/###
For/I
people/N
who/W
can/M
ride/V
out/R
market/N
waves/N
through/I
good/J
times/N
and/C
bad/J
,/,
stocks/N
have/V
been/V
rewarding/J
long-term/J
investments/N
./.
###/###
Most/J
studies/N
show/V
that/I
buy-and-hold/C
investors/N
historically/R
have/V
earned/V
an/D
annual/J
return/N
from/I
stocks/N
of/I
9/C
%/N
to/T
10/C
%/N
,/,
including/V
both/D
dividends/N
and/C
price/N
appreciation/N
./.
###/###
That/D
's/V
well/R
above/I
what/W
bonds/N
or/C
bank/N
certificates/N
have/V
paid/V
./.
###/###
Moreover/R
,/,
because/I
no/D
one/P
knows/V
for/I
sure/J
just/R
when/W
a/D
recession/N
is/V
coming/V
,/,
some/D
analysts/N
think/V
investors/N
should/M
n't/R
even/R
worry/V
too/R
much/R
about/I
timing/N
./.
###/###
``/`
Trying/V
to/T
time/N
the/D
economy/N
is/V
a/D
mistake/N
,/,
''/'
says/V
David/N
Katz/N
,/,
chief/J
investment/N
officer/N
of/I
Value/N
Matrix/N
Management/N
Inc./N
in/I
New/N
York/N
./.
###/###
Mr./N
Katz/N
notes/V
that/I
some/D
economists/N
have/V
been/V
predicting/V
a/D
recession/N
for/I
at/I
least/J
two/C
years/N
./.
###/###
Investors/N
who/W
listened/V
,/,
and/C
lightened/V
up/R
on/I
stocks/N
,/,
``/`
have/V
just/R
hurt/V
themselves/P
,/,
''/'
he/P
says/V
./.
###/###
Mr./N
Katz/N
adds/V
that/I
people/N
who/W
jump/V
in/I
and/C
out/I
of/I
the/D
stock/N
market/N
need/V
to/T
be/V
right/J
about/R
70/C
%/N
of/I
the/D
time/N
to/T
beat/V
a/D
buy-and-hold/J
strategy/N
./.
###/###
Frequent/J
trading/N
runs/N
up/I
high/J
commission/N
costs/N
./.
###/###
And/C
the/D
in-and-outer/N
might/M
miss/V
the/D
sudden/J
spurts/N
that/W
account/V
for/I
much/J
of/I
the/D
stock/N
market/N
's/P
gains/N
over/I
time/N
./.
###/###
Still/R
,/,
few/J
investors/N
are/V
able/J
to/T
sit/V
tight/R
when/W
they/P
are/V
convinced/V
a/D
recession/N
is/V
coming/V
./.
###/###
After/I
all/D
,/,
in/I
all/D
five/C
recessions/N
since/I
1960/C
,/,
stocks/N
declined/V
./.
###/###
According/V
to/T
Ned/N
Davis/N
,/,
president/N
of/I
Ned/N
Davis/N
Research/N
Inc./N
in/I
Nokomis/N
,/,
Fla./N
,/,
the/D
average/J
drop/N
in/I
the/D
Dow/N
Jones/N
Industrial/N
Average/N
was/V
about/R
21/C
%/N
,/,
and/C
the/D
decrease/N
began/V
an/D
average/N
of/I
six/C
months/N
before/I
a/D
recession/N
officially/R
started/V
./.
###/###
By/I
the/D
time/N
a/D
recession/N
is/V
``/`
official/J
''/'
-LRB-/-
two/C
consecutive/J
quarters/N
of/I
declining/V
gross/J
national/J
product/N
-RRB-/-
,/,
much/J
of/I
the/D
damage/N
to/T
stocks/N
has/V
already/R
been/V
done-and/C
,/,
in/I
the/D
typical/J
case/N
,/,
the/D
recession/N
is/V
already/R
half/R
over/J
./.
###/###
About/R
six/C
months/N
before/I
a/D
recession/N
ends/V
,/,
stocks/N
typically/R
begin/V
to/T
rise/V
again/R
,/,
as/I
investors/N
anticipate/V
a/D
recovery/N
./.
###/###
The/D
average/J
recession/N
lasts/V
about/R
a/D
year/N
./.
###/###
Unfortunately/R
,/,
though/R
,/,
recessions/N
vary/V
enough/R
in/I
length/N
so/R
that/I
the/D
average/N
ca/M
n't/R
reliably/R
be/V
used/V
to/T
guide/V
investors/N
in/I
timing/V
stock/N
sales/N
or/C
purchases/N
./.
###/###
But/C
whatever/W
their/P
advice/N
about/I
timing/N
,/,
none/N
of/I
these/D
experts/N
recommend/V
jettisoning/V
stocks/N
entirely/R
during/I
a/D
recession/N
./.
###/###
For/I
the/D
portion/N
of/I
an/D
investor/N
's/P
portfolio/N
that/W
stays/V
in/I
stocks/N
,/,
professionals/N
have/V
a/D
number/N
of/I
suggestions/N
./.
###/###
Mr./N
Katz/N
advocates/V
issues/N
with/I
low/J
price-earnings/J
ratios/N
--/:
that/D
is/V
,/,
low/J
prices/N
in/I
relation/N
to/T
the/D
company/N
's/P
earnings/N
per/I
share/N
./.
###/###
``/`
Low/N
P-E/N
''/'
stocks/N
,/,
he/P
says/V
,/,
vastly/R
outperform/V
others/N
``/`
during/I
a/D
recession/N
or/C
bear/N
market/N
./.
''/'
###/###
In/I
good/J
times/N
,/,
he/P
says/V
,/,
they/P
lag/V
a/D
bit/N
,/,
but/C
overall/R
they/P
provide/V
superior/J
performance/N
./.
###/###
Prof./N
Arbel/N
urges/V
investors/N
to/T
discard/V
stocks/N
in/I
small/J
companies/N
./.
###/###
Small-company/J
shares/N
typically/R
fall/V
more/R
than/I
big-company/J
stocks/N
in/I
a/D
recession/N
,/,
he/P
says/V
./.
###/###
And/C
in/I
any/D
case/N
,/,
he/P
argues/V
,/,
stocks/N
of/I
small/J
companies/N
are/V
``/`
almost/R
as/R
overpriced/J
as/I
they/P
were/V
Sept./N
30/C
,/,
1987/C
,/,
just/R
before/I
the/D
crash/N
./.
''/'
###/###
For/I
example/N
,/,
Mr./N
Arbel/N
says/V
,/,
stocks/N
of/I
small/J
companies/N
are/V
selling/V
for/I
about/R
19/C
times/N
cash/N
flow/N
./.
###/###
Cash/N
flow/N
,/,
basically/R
earnings/N
plus/I
depreciation/N
,/,
is/V
one/C
common/J
gauge/N
of/I
a/D
company/N
's/P
financial/J
health/N
./.
-RRB-/-
###/###
That/I
ratio/N
is/V
dangerously/R
close/J
to/T
the/D
ratio/N
of/I
19.7/C
that/W
prevailed/V
before/I
the/D
1987/C
stock-market/N
crash/N
,/,
Mr./N
Arbel/N
says/V
./.
###/###
And/C
it/P
's/V
way/N
above/I
the/D
ratio/N
-LRB-/-
7.5/C
times/N
cash/N
flow/N
-RRB-/-
that/W
bigger/J
companies/N
are/V
selling/V
for/R
./.
###/###
Another/D
major/J
trick/N
in/I
making/V
a/D
portfolio/N
recession-resistant/J
is/V
choosing/V
stocks/N
in/I
``/`
defensive/J
''/'
industries/N
./.
###/###
Food/N
,/,
tobacco/N
,/,
drugs/N
and/C
utilities/N
are/V
the/D
classic/J
examples/N
./.
###/###
Recession/N
or/C
not/R
,/,
people/N
still/R
eat/V
,/,
smoke/V
,/,
and/C
take/V
medicine/N
when/W
they/P
're/V
sick/J
./.
###/###
George/N
Putnam/N
III/N
,/,
editor/N
of/I
Turnaround/N
Letter/N
in/I
Boston/N
,/,
offers/V
one/C
final/J
tip/N
for/I
recession-wary/J
investors/N
./.
###/###
``/`
Keep/V
some/D
money/N
available/J
for/I
opportunities/N
,/,
''/'
he/P
says/V
./.
###/###
``/`
If/I
the/D
recession/N
does/V
hit/V
,/,
there/E
will/M
be/V
some/D
great/J
investment/N
opportunities/N
just/R
when/W
things/N
seem/V
the/D
blackest/J
./.
''/'
###/###
Mr./N
Dorfman/N
covers/V
investing/N
issues/N
from/I
The/D
Wall/N
Street/N
Journal/N
's/P
New/N
York/N
bureau/N
./.
###/###
Some/D
industry/N
groups/N
consistently/R
weather/V
the/D
storm/N
better/R
than/I
others/N
./.
###/###
The/D
following/N
shows/V
the/D
number/N
of/I
times/N
these/D
industries/N
outperformed/V
the/D
Standard/N
&/C
Poor/N
's/P
500-Stock/N
Index/N
during/I
the/D
first/J
six/C
months/N
of/I
the/D
past/J
seven/C
recessions/N
./.
###/###
Bond/N
prices/N
posted/V
strong/J
gains/N
as/I
investors/N
went/V
on/I
a/D
bargain/N
hunt/N
./.
###/###
But/C
while/I
the/D
overall/J
market/N
improved/V
,/,
the/D
new-issue/J
junk-bond/J
market/N
continued/V
to/T
count/V
casualties/N
,/,
even/R
as/I
junk-bond/J
prices/N
rose/V
./.
###/###
Yesterday/N
,/,
Prudential-Bache/N
Securities/N
Inc./N
said/V
it/P
postponed/V
a/D
$/$
220/C
million/C
senior/J
subordinated/V
debenture/N
offering/N
by/I
York/N
International/N
Corp/N
./.
###/###
And/C
Donaldson/N
,/,
Lufkin/N
&/C
Jenrette/N
Securities/N
Corp./N
scrambled/V
to/T
restructure/N
and/C
improve/V
the/D
potential/J
returns/N
on/I
a/D
$/$
475/C
million/C
debenture/N
offering/N
by/I
Chicago/N
&/C
North/N
Western/N
Acquisition/N
Corp./N
that/W
was/V
still/R
being/V
negotiated/V
late/J
last/J
night/N
./.
###/###
The/D
issue/N
by/I
Chicago/N
&/C
North/N
Western/N
is/V
one/C
of/I
the/D
so-called/J
good/J
junk-bond/J
offerings/N
on/I
the/D
new-issue/J
calendar/N
./.
###/###
Some/D
analysts/N
said/V
the/D
restructuring/N
of/I
the/D
railroad/N
concern/N
's/P
issue/N
shows/V
how/W
tough/J
it/P
is/V
for/I
underwriters/N
to/T
sell/V
even/R
the/D
junk/N
bonds/N
of/I
a/D
company/N
considered/V
to/T
be/V
a/D
relatively/R
good/J
credit/N
risk/N
./.
###/###
Since/I
last/J
week/N
's/P
junk-bond/J
market/N
debacle/N
,/,
many/J
new/J
issues/N
of/I
high-yield/J
,/,
high-risk/J
corporate/J
bonds/N
have/V
either/R
been/V
scaled/V
back/R
,/,
delayed/V
or/C
dropped/V
./.
###/###
On/I
Wednesday/N
,/,
Drexel/N
Burnham/N
Lambert/N
Inc./N
had/V
to/T
slash/V
the/D
size/N
of/I
Continental/N
Airlines/N
'/P
junk-bond/J
offering/N
to/T
$/$
71/C
million/C
from/I
$/$
150/C
million/C
./.
###/###
Salomon/N
Brothers/N
Inc./N
has/V
delayed/V
Grand/N
Union/N
Co./N
's/P
$/$
1.16/C
billion/C
junk-bond/J
offering/N
while/I
it/P
restructures/V
the/D
transaction/N
./.
###/###
Last/J
week/N
,/,
the/D
Grand/N
Union/N
offering/N
was/V
sweetened/V
to/T
include/V
warrants/N
that/W
allow/V
bondholders/N
to/T
acquire/V
common/J
stock/N
./.
###/###
Prudential-Bache/N
said/V
the/D
York/N
issue/N
was/V
delayed/V
because/R
of/I
market/N
conditions/N
./.
###/###
``/`
Everything/N
is/V
going/V
through/I
firehoops/N
right/R
now/R
,/,
and/C
-LCB-/-
Chicago/N
&/C
North/N
Western/N
-RCB-/-
is/V
no/D
exception/N
,/,
''/'
said/V
Mariel/N
Clemensen/N
,/,
vice/N
president/N
,/,
high-yield/J
research/N
,/,
at/I
Citicorp/N
./.
###/###
Portfolio/N
managers/N
say/V
sweeteners/N
like/I
equity/N
kickers/N
and/C
stricter/J
protective/J
covenants/N
may/M
increasingly/R
be/V
required/V
to/T
sell/V
junk-bond/J
deals/N
./.
###/###
Dan/N
Baldwin/N
,/,
managing/V
director/N
of/I
high-yield/J
investments/N
at/I
Chancellor/N
Capital/N
Management/N
,/,
said/V
the/D
Chicago/N
&/C
North/N
Western/N
offering/N
was/V
restructured/V
in/I
part/N
because/I
``/`
several/J
large/J
insurance/N
buyers/N
right/R
now/R
are/V
demanding/V
equity/N
as/I
part/N
of/I
the/D
package/N
./.
###/###
If/I
you/P
're/V
going/V
to/T
take/V
the/D
risk/N
in/I
this/D
market/N
,/,
you/P
want/V
something/N
extra/J
./.
''/'
###/###
Mr./N
Baldwin/N
likes/V
the/D
offering/N
./.
###/###
But/C
several/J
mutual-fund/J
managers/N
,/,
nervous/J
about/I
the/D
deteriorating/V
quality/N
of/I
their/P
junk-bond/J
portfolios/N
and/C
shy/J
about/I
buying/V
new/J
issues/N
,/,
said/V
they/P
're/V
staying/V
away/R
from/I
any/D
junk/N
security/N
that/W
is/V
n't/R
considered/V
first/J
rate/N
for/I
its/P
class/N
./.
###/###
While/I
they/P
consider/V
the/D
Chicago/N
&/C
North/N
Western/N
issue/N
to/T
be/V
good/J
,/,
they/P
do/V
n't/R
view/V
it/P
as/I
the/D
best/J
./.
###/###
To/T
lure/V
buyers/N
to/T
the/D
Chicago/N
&/C
North/N
Western/N
bonds/N
,/,
portfolio/N
managers/N
said/V
Donaldson/N
Lufkin/N
sweetened/V
the/D
transaction/N
by/I
offering/V
the/D
bonds/N
with/I
a/D
resettable/J
interest/N
rate/N
and/C
a/D
10/C
%/N
equity/N
kicker/N
./.
###/###
The/D
bonds/N
are/V
expected/V
to/T
have/V
a/D
14/C
%/N
coupon/N
rate/N
./.
###/###
The/D
equity/N
arrangement/N
apparently/R
would/M
allow/V
bondholders/N
to/T
buy/V
a/D
total/N
of/I
10/C
%/N
of/I
the/D
stock/N
of/I
CNW/N
Corp./N
,/,
Chicago/N
&/C
North/N
Western/N
's/P
parent/N
company/N
./.
###/###
Donaldson/N
Lufkin/N
declined/V
to/T
comment/V
on/I
the/D
restructuring/N
./.
###/###
According/V
to/T
some/D
analysts/N
familiar/J
with/I
the/D
negotiations/N
,/,
the/D
10/C
%/N
of/I
equity/N
would/M
come/V
directly/R
from/I
Donaldson/N
Lufkin/N
and/C
a/D
fund/N
affiliated/V
with/I
the/D
investment/N
bank/N
Blackstone/N
Group/N
,/,
which/W
would/M
reduce/V
their/P
CNW/N
equity/N
holdings/N
by/I
5/C
%/N
each/D
./.
###/###
That/D
would/M
leave/V
the/D
Blackstone/N
fund/N
with/I
a/D
60/C
%/N
stake/N
and/C
Donaldson/N
Lufkin/N
with/I
15/C
%/N
./.
###/###
Despite/I
the/D
problems/N
with/I
new/J
issues/N
,/,
high-yield/J
bonds/N
showed/V
gains/N
in/I
the/D
secondary/J
,/,
or/C
resell/J
,/,
market/N
./.
###/###
Junk/N
bonds/N
ended/V
about/R
one-half/J
point/N
higher/R
with/I
so-called/J
high-quality/J
issues/N
from/I
RJR/N
Capital/N
Holdings/N
Corp./N
and/C
Petrolane/N
Gas/N
Service/N
Limited/N
Partnership/N
rising/V
one/C
point/N
./.
###/###
In/I
the/D
Treasury/N
market/N
,/,
the/D
benchmark/N
30-year/J
bond/N
rose/V
seven-eighths/J
point/N
,/,
or/C
$/$
8.75/C
for/I
each/D
$/$
1,000/C
face/N
amount/N
./.
###/###
The/D
gain/N
reflects/V
fresh/J
economic/J
evidence/N
that/D
inflation/N
is/V
moderating/V
while/I
the/D
economy/N
slows/V
./.
###/###
That/D
raised/V
hopes/N
that/I
interest/N
rates/N
will/M
continue/V
to/T
move/V
lower/R
./.
###/###
The/D
Labor/N
Department/N
reported/V
that/I
consumer/N
prices/N
rose/V
just/R
0.2/C
%/N
last/J
month/N
,/,
slightly/R
lower/J
than/I
some/D
economists/N
had/V
expected/V
./.
###/###
But/C
there/E
were/V
also/R
rumors/N
yesterday/N
that/I
several/J
Japanese/J
institutional/J
investors/N
were/V
shifting/V
their/P
portfolios/N
and/C
buying/V
long-term/J
bonds/N
while/I
selling/V
shorter-term/J
Treasurys/N
./.
###/###
Short-term/N
Treasury/N
securities/N
ended/V
narrowly/R
mixed/V
,/,
with/I
two-year/J
notes/N
posting/V
slight/J
declines/N
while/I
three-year/J
notes/N
were/V
slightly/R
higher/J
./.
###/###
Yesterday/N
,/,
the/D
Fed/N
executed/V
four-day/J
matched/V
sales/N
,/,
a/D
technical/J
trading/N
operation/N
designed/V
to/T
drain/V
reserves/N
from/I
the/D
banking/N
system/N
./.
###/###
The/D
move/N
was/V
interpreted/V
by/I
some/D
economists/N
as/I
a/D
sign/N
that/I
the/D
Fed/N
does/V
n't/R
want/V
the/D
federal/J
funds/N
rate/N
to/T
move/V
any/D
lower/R
than/I
the/D
8/C
%/N
at/I
which/W
it/P
has/V
been/V
hovering/V
around/R
during/I
the/D
past/J
week/N
./.
###/###
The/D
closely/R
watched/V
funds/N
rate/N
is/V
what/W
banks/N
charge/V
each/D
other/J
on/I
overnight/J
loans/N
./.
###/###
It/P
is/V
considered/V
an/D
early/J
signal/N
of/I
Fed/N
credit/N
policy/N
changes/N
./.
###/###
``/`
The/D
fact/N
that/I
they/P
did/V
four-day/J
matched/V
sales/N
means/V
they/P
are/V
not/R
in/I
a/D
mood/N
to/T
ease/V
aggressively/R
./.
###/###
They/P
are/V
telling/V
us/P
that/I
-LCB-/-
8/C
%/N
-RCB-/-
is/V
as/R
low/J
as/I
they/P
want/V
to/T
see/V
the/D
fed/N
funds/N
rate/N
,/,
''/'
said/V
Robert/N
Chandross/N
at/I
Lloyds/N
Bank/N
PLC/N
./.
###/###
The/D
benchmark/N
30-year/J
bond/N
was/V
quoted/V
late/R
at/I
a/D
price/N
of/I
101/C
to/T
yield/V
7.955/C
%/N
,/,
compared/V
with/I
100/C
to/T
yield/V
8.032/C
%/N
Wednesday/N
./.
###/###
The/D
latest/J
10-year/J
notes/N
were/V
quoted/V
late/R
at/I
100/C
to/T
yield/V
7.937/C
%/N
,/,
compared/V
with/I
99/C
to/T
yield/V
8.007/C
%/N
./.
###/###
Short-term/J
rates/N
rose/V
yesterday/N
./.
###/###
The/D
discount/N
rate/N
on/I
three-month/J
Treasury/N
bills/N
rose/V
to/T
7.56/C
%/N
from/I
7.51/C
%/N
Wednesday/N
,/,
while/I
the/D
rate/N
on/I
six-month/J
bills/N
rose/V
to/T
7.57/C
%/N
from/I
7.53/C
%/N
./.
###/###
Meanwhile/R
,/,
the/D
Treasury/N
sold/V
$/$
9.75/C
billion/C
of/I
52-week/J
bills/N
yesterday/N
./.
###/###
The/D
average/J
yield/N
on/I
the/D
bills/N
was/V
7.35/C
%/N
,/,
down/R
from/I
7.61/C
%/N
at/I
the/D
previous/J
52-week/J
bill/N
auction/N
Sept./N
21/C
./.
###/###
Yesterday/N
's/P
yield/N
was/V
the/D
lowest/J
since/I
7.22/C
%/N
on/I
July/N
27/C
./.
###/###
Here/R
are/V
details/N
of/I
the/D
auction/N
:/:
###/###
Rates/N
are/V
determined/V
by/I
the/D
difference/N
between/I
the/D
purchase/N
price/N
and/C
face/N
value/N
./.
###/###
Thus/R
,/,
higher/J
bidding/N
narrows/V
the/D
investor/N
's/P
return/N
while/I
lower/J
bidding/N
widens/V
it/P
./.
###/###
The/D
percentage/N
rates/N
are/V
calculated/V
on/I
a/D
360-day/J
year/N
,/,
while/I
the/D
coupon-equivalent/J
yield/N
is/V
based/V
on/I
a/D
365-day/J
year/N
./.
###/###
Junk/N
bond/N
price/N
climbed/V
yesterday/N
despite/I
skittishness/N
in/I
the/D
new-issue/J
market/N
for/I
high-yield/J
securities/N
./.
###/###
Dealers/N
said/V
junk/N
bond/N
issues/N
on/I
average/N
were/V
up/R
by/I
to/T
point/N
with/I
so-called/J
quality/N
issues/N
from/I
RJR/N
Capital/N
Holdings/N
Corp./N
and/C
Petrolane/N
Gas/N
Service/N
Limited/N
Partnership/N
posting/V
one-point/J
gains/N
./.
###/###
Petrolane/N
Gas/N
Service/N
's/P
13/C
%/N
debentures/N
traded/V
at/I
102/C
,/,
after/I
trading/V
around/I
par/N
earlier/R
this/D
week/N
,/,
and/C
RJR/N
's/P
13/C
%/N
subordinated/V
debentures/N
of/I
2001/C
were/V
at/I
101/C
after/I
trading/V
at/I
below/I
par/N
earlier/R
this/D
week/N
./.
###/###
Investment-grade/J
bonds/N
were/V
unchanged/J
./.
###/###
Activity/N
was/V
brisk/J
in/I
the/D
high-grade/J
general/J
obligation/N
market/N
,/,
as/I
a/D
series/N
of/I
sell/N
lists/N
hit/V
the/D
Street/N
and/C
capped/V
upward/J
price/N
movement/N
in/I
the/D
sector/N
./.
###/###
Traders/N
estimated/V
that/I
more/J
than/I
$/$
140/C
million/C
of/I
high-grade/J
bonds/N
was/V
put/V
up/R
for/I
sale/N
via/I
bid-wanted/J
lists/N
circulated/V
by/I
a/D
handful/N
of/I
major/J
brokers/N
./.
###/###
There/E
was/V
speculation/N
that/I
the/D
supply/N
was/V
coming/V
from/I
a/D
commercial/J
bank/N
's/P
portfolios/N
./.
###/###
According/V
to/T
market/N
participants/N
,/,
the/D
bonds/N
were/V
met/V
with/I
decent/J
bids/N
,/,
but/C
the/D
volume/N
of/I
paper/N
left/V
high/J
grades/N
in/I
the/D
10-year/J
and/C
under/J
maturity/N
range/N
unchanged/J
to/T
0.05/C
percentage/N
point/N
higher/J
in/I
yield/N
./.
###/###
Away/R
from/I
the/D
general/J
obligation/N
sector/N
,/,
activity/N
was/V
modest/J
./.
###/###
Long/J
dollar/N
bonds/N
were/V
flat/J
to/T
up/R
point/N
./.
###/###
New/N
Jersey/N
Turnpike/N
Authority/N
's/P
7.20/C
%/N
issue/N
of/I
2018/C
was/V
up/R
at/I
98/C
bid/N
to/T
yield/V
about/R
7.32/C
%/N
,/,
down/R
0.03/C
percentage/N
point/N
./.
###/###
The/D
debt/N
of/I
some/D
California/N
issuers/N
pulled/V
off/R
lows/N
reached/V
after/I
Tuesday/N
's/P
massive/J
earthquake/N
,/,
although/I
traders/N
said/V
market/N
participants/N
remained/V
cautious/J
./.
###/###
California/N
expects/V
to/T
rely/V
on/I
federal/J
emergency/N
funds/N
and/C
its/P
$/$
1.06/C
billion/C
in/I
general/J
fund/N
reserves/V
to/T
meet/V
the/D
estimated/V
$/$
500/C
million/C
to/T
$/$
1/C
billion/C
in/I
damages/N
resulting/V
from/I
the/D
quake/N
,/,
according/V
to/T
a/D
state/N
official/N
./.
###/###
It/P
's/V
also/R
unclear/J
precisely/R
how/W
the/D
state/N
will/M
rebuild/V
its/P
reserve/N
,/,
said/V
Cindy/N
Katz/N
,/,
assistant/J
director/N
of/I
California/N
's/P
department/N
of/I
finance/N
,/,
although/I
she/P
noted/V
that/I
a/D
bond/N
offering/N
for/I
that/D
purpose/N
is/V
n't/R
anticipated/V
./.
###/###
Meanwhile/R
,/,
new/J
issuance/N
was/V
slow/J
./.
###/###
The/D
largest/J
sale/N
in/I
the/D
competitive/J
arena/N
was/V
a/D
$/$
55.7/C
million/C
issue/N
of/I
school/N
financing/N
bonds/N
from/I
the/D
Virginia/N
Public/N
School/N
Authority/N
./.
###/###
A/D
balance/N
of/I
$/$
25.8/C
million/C
remained/V
in/I
late/J
order-taking/N
,/,
according/V
to/T
the/D
lead/J
manager/N
./.
###/###
Mortgage/N
securities/N
generally/R
ended/V
to/T
point/N
higher/R
,/,
but/C
lagged/V
gains/N
in/I
the/D
Treasury/N
market/N
because/I
of/I
a/D
shift/N
in/I
the/D
shape/N
of/I
the/D
Treasury/N
yield/N
curve/N
and/C
rumored/V
mortgage/N
sales/N
by/I
thrifts/N
./.
###/###
Premium/N
Government/N
National/N
Mortgage/N
Association/N
securities/N
with/I
coupon/N
rates/N
of/I
13/C
%/N
and/C
higher/J
actually/R
declined/V
amid/I
concerns/N
about/I
increased/V
prepayments/N
because/I
of/I
a/D
plan/N
being/V
considered/V
by/I
Congress/N
to/T
speed/V
the/D
refinancing/N
of/I
government-subsidized/J
mortgages/N
./.
###/###
Ginnie/N
Mae/N
13/C
%/N
securities/N
were/V
down/R
about/R
at/I
109/C
./.
###/###
If/I
the/D
refinancing/N
plan/N
clears/V
Congress/N
,/,
there/E
could/M
be/V
fairly/R
heavy/J
prepayments/N
on/I
the/D
premium/N
securities/N
,/,
hurting/V
any/D
investor/N
paying/V
much/R
above/J
par/N
for/I
them/P
./.
###/###
In/I
the/D
current-coupon/J
sector/N
,/,
a/D
shift/N
in/I
the/D
Treasury/N
yield/N
curve/N
resulting/V
from/I
the/D
better/J
performance/N
of/I
long-dated/J
issues/N
over/I
short-dated/J
securities/N
hurt/V
major/J
coupons/N
because/I
it/P
will/M
become/V
more/R
difficult/J
to/T
structure/V
new/J
derivative/J
securities/N
offerings/N
./.
###/###
Ginnie/N
Mae/N
9/C
%/N
securities/N
ended/V
at/I
98/C
,/,
up/I
9/C
,/,
9/C
%/N
###/###
%/N
to/T
a/D
12-year/J
average/N
life/N
assumption/N
,/,
as/I
the/D
spread/N
above/I
the/D
Treasury/N
10-year/J
note/N
widened/V
0.03/C
percentage/N
point/N
to/T
1.48/C
./.
###/###
While/I
Remic/N
issuance/N
may/M
slow/V
in/I
the/D
coming/V
days/N
because/I
of/I
the/D
shift/N
in/I
the/D
Treasury/N
yield/N
curve/N
,/,
underwriters/N
continued/V
to/T
crank/V
out/R
new/J
real/J
estate/N
mortgage/N
investment/N
conduits/N
structured/V
when/W
the/D
yield/N
curve/N
was/V
more/R
favorable/J
./.
###/###
Two/C
new/J
Remics/N
totaling/V
$/$
900/C
million/C
were/V
announced/V
by/I
Freddie/N
Mac/N
yesterday/N
./.
###/###
British/J
government/N
bonds/N
ended/V
little/R
changed/V
as/I
investors/N
awaited/V
an/D
economic/J
policy/N
address/N
last/J
night/N
by/I
Chancellor/N
of/I
the/D
Exchequer/N
Nigel/N
Lawson/N
./.
###/###
The/D
Treasury/N
11/C
%/N
bond/N
due/R
was/V
down/R
at/I
111/C
to/T
yield/V
10.09/C
%/N
,/,
while/I
the/D
11/C
%/N
notes/N
due/J
1991/C
were/V
unchanged/J
at/I
98/C
to/T
yield/V
12.94/C
%/N
./.
###/###
In/I
Japan/N
,/,
the/D
bellwether/N
No./N
111/C
4.6/C
%/N
bond/N
of/I
1998/C
ended/V
off/J
0.03/C
at/I
95.72/C
,/,
to/T
yield/V
5.32/C
%/N
,/,
and/C
in/I
West/N
Germany/N
,/,
the/D
7/C
%/N
benchmark/N
issue/N
due/J
October/N
1999/C
ended/V
0.05/C
point/N
lower/R
at/I
99.85/C
to/T
yield/V
7.02/C
%/N
./.
###/###