###/###
When/W
such/J
claims/N
and/C
litigation/N
extend/V
beyond/I
the/D
period/N
,/,
the/D
syndicates/N
can/M
extend/V
their/P
accounting/N
deadlines/N
./.
###/###
Lloyd/N
's/P
said/V
there/E
are/V
currently/R
115/C
open/J
account/N
years/N
involving/V
68/C
of/I
the/D
market/N
's/P
roughly/R
360/C
syndicates/N
./.
###/###
The/D
open-year/J
accounting/N
practice/N
``/`
is/V
widely/R
recognized/V
within/I
Lloyd/N
's/P
as/R
of/I
serious/J
concern/N
''/'
to/T
the/D
31,329/C
member/N
investors/N
,/,
who/W
underwrite/V
insurance/N
at/I
Lloyd/N
's/P
in/I
return/N
for/I
premium/N
and/C
investment/N
income/N
,/,
Lloyd/N
's/P
said/V
./.
###/###
The/D
procedure/N
causes/V
``/`
great/J
uncertainty/N
''/'
because/I
an/D
investor/N
ca/M
n't/R
be/V
sure/J
of/I
his/P
or/C
her/P
individual/J
liability/N
,/,
Lloyd/N
's/P
said/V
./.
###/###
As/I
a/D
result/N
,/,
the/D
insurance/N
market/N
plans/V
new/J
measures/N
to/T
restrict/V
the/D
ability/N
of/I
syndicate/N
officials/N
to/T
leave/V
years/N
open/J
./.
###/###
Lloyd/N
's/V
said/V
it/P
expects/V
to/T
enact/V
new/J
rules/N
mandating/V
the/D
changes/N
by/I
year/N
end/N
./.
###/###
Under/I
the/D
new/J
rules/N
,/,
the/D
officials/N
will/M
have/V
to/T
secure/V
additional/J
information/N
and/C
reports/N
from/I
actuaries/N
,/,
including/V
an/D
assessment/N
of/I
whether/I
officials/N
have/V
acted/V
reasonably/R
./.
###/###
In/I
addition/N
,/,
officials/N
will/M
have/V
to/T
get/V
quotes/N
for/I
certain/J
reinsurance/N
contracts/N
and/C
obtain/V
approvals/N
from/I
other/J
syndicate/N
directors/N
./.
###/###
Computer/N
Associates/N
International/N
Inc./N
reported/V
earnings/N
for/I
the/D
second/J
quarter/N
,/,
ended/V
Sept./N
30/C
,/,
plummeted/V
66/C
%/N
,/,
primarily/R
because/I
of/I
the/D
acquisition/N
of/I
Cullinet/N
Software/N
Inc/N
./.
###/###
The/D
nation/N
's/P
largest/J
software/N
company/N
earned/V
$/$
9.6/C
million/C
,/,
or/C
five/C
cents/N
a/D
share/N
,/,
compared/V
with/I
$/$
28/C
million/C
,/,
or/C
16/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Revenue/N
rose/V
5/C
%/N
to/T
$/$
282/C
million/C
from/I
$/$
268.3/C
million/C
./.
###/###
The/D
drop/N
in/I
earnings/N
had/V
been/V
anticipated/V
by/I
most/J
Wall/N
Street/N
analysts/N
,/,
but/C
the/D
results/N
were/V
reported/V
after/I
the/D
market/N
closed/V
./.
###/###
Computer/N
Associates/N
closed/V
at/I
$/$
13.625/C
,/,
down/I
25/C
cents/N
,/,
in/I
composite/J
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
./.
###/###
Anthony/N
Wang/N
,/,
president/N
,/,
attributed/V
the/D
drop/N
to/T
the/D
disruption/N
of/I
the/D
company/N
's/P
business/N
resulting/V
from/I
the/D
prolonged/V
process/N
of/I
acquiring/V
Cullinet/N
./.
###/###
The/D
acquisition/N
was/V
completed/V
in/I
September/N
./.
###/###
In/I
August/N
,/,
the/D
company/N
warned/V
investors/N
that/I
the/D
acquisition/N
was/V
being/V
delayed/V
,/,
and/C
many/J
customers/N
were/V
holding/V
off/I
on/I
purchase/N
decisions/N
until/I
the/D
takeover/N
was/V
completed/V
./.
###/###
The/D
delays/N
mainly/R
affected/V
sales/N
of/I
data/N
base/N
management/N
products/N
,/,
a/D
core/N
area/N
for/I
both/D
Computer/N
Associates/N
and/C
Cullinet/N
,/,
as/R
well/R
as/I
sales/N
of/I
other/J
products/N
as/I
part/N
of/I
package/N
sales/N
./.
###/###
Residents/N
of/I
this/D
city/N
soon/R
will/M
be/V
seeing/V
ads/N
urging/V
them/P
to/T
visit/V
``/`
Cleveland/N
's/P
outdoor/J
museum/N
''/'
--/:
Lake/N
View/N
Cemetery/N
./.
###/###
Despite/I
such/J
famous/J
tenants/N
as/I
oil/N
magnate/N
John/N
D./N
Rockefeller/N
,/,
Lake/N
View/N
Cemetery/N
has/V
fallen/V
on/I
hard/J
times/N
./.
###/###
So/I
the/D
inner-city/N
burial/N
ground/N
is/V
trying/V
to/T
resurrect/V
itself/P
with/I
a/D
television/N
advertising/N
campaign/N
./.
###/###
The/D
ads/N
celebrate/V
the/D
achievements/N
of/I
some/D
of/I
Lake/N
View/N
's/P
residents/N
./.
###/###
A/D
spot/N
honoring/V
Bill/N
White/N
,/,
the/D
inventor/N
of/I
chewing/V
gum/N
,/,
shows/V
a/D
woman/N
trying/V
to/T
extricate/V
her/P
high-heeled/J
shoe/N
from/I
a/D
wad/N
of/I
gum/N
./.
###/###
Another/D
focuses/V
on/I
Charles/N
Brush/N
,/,
the/D
first/J
person/N
to/T
light/V
a/D
city/N
electrically/R
./.
###/###
It/P
shows/V
a/D
boy/N
hurling/V
rocks/N
at/I
a/D
street/N
lamp/N
./.
###/###
Street/N
lights/N
,/,
the/D
ad/N
points/V
out/I
,/,
``/`
helped/V
sharpen/V
the/D
arm/N
of/I
many/J
a/D
budding/V
baseball/N
player/N
./.
''/'
###/###
Cemetery/N
officials/N
hope/V
the/D
ads/N
,/,
which/W
will/M
begin/V
airing/N
next/I
month/N
,/,
will/M
not/R
only/R
draw/V
visitors/N
but/C
bolster/V
burials/N
and/C
endowment/N
fund/N
contributions/N
./.
###/###
Lake/N
View/N
had/V
an/D
operating/V
deficit/N
last/J
year/N
and/C
has/V
a/D
poor/J
reputation/N
as/I
an/D
out-of-repair/N
and/C
crime-infested/J
cemetery/N
./.
###/###
The/D
private/J
,/,
non-profit/J
cemetery/N
has/V
had/V
trouble/N
competing/V
against/I
its/P
for-profit/J
counterparts/N
,/,
which/W
use/V
direct/J
mail/N
and/C
other/J
advertising/N
to/T
sell/V
lots/N
./.
###/###
``/`
We/P
do/V
n't/R
want/V
to/T
be/V
known/V
as/I
ambulance/N
chasers/N
,/,
''/'
says/V
William/N
Garrison/N
,/,
Lake/N
View/N
's/P
president/N
./.
###/###
``/`
We/P
want/V
people/N
to/T
think/V
of/I
Lake/N
View/N
as/I
an/D
historical/J
park/N
and/C
educational/J
experience/N
./.
###/###
A/D
pleasant/J
place/N
to/T
come/V
and/C
spend/V
a/D
few/J
hours/N
./.
''/'
###/###
Not/R
all/D
of/I
the/D
cemetery/N
's/P
better-known/J
tenants/N
lend/V
themselves/P
to/T
the/D
promotional/J
job/N
at/I
hand/N
,/,
however/R
./.
###/###
For/I
example/N
,/,
President/N
James/N
A./N
Garfield/N
is/V
entombed/V
here/R
,/,
the/D
victim/N
of/I
an/D
assassination/N
in/I
1881/C
./.
###/###
-LRB-/-
Mr./N
Garrison/N
notes/V
,/,
however/R
,/,
that/I
the/D
Garfield/N
tomb/N
is/V
one/C
of/I
the/D
nation/N
's/P
premier/J
examples/N
of/I
Romanesque/J
architecture/N
./.
-RRB-/-
###/###
Mr./N
Rockefeller/N
,/,
buried/V
beneath/I
a/D
180-foot-tall/J
granite/N
obelisk/N
,/,
did/V
n't/R
seem/V
right/J
for/I
an/D
ad/N
either/R
./.
###/###
The/D
oil/N
magnate/N
,/,
who/W
spent/V
his/P
later/J
years/N
passing/V
out/I
dimes/N
to/T
counter/V
his/P
penny-pinching/J
image/N
,/,
``/`
is/V
n't/R
terribly/R
amusing/J
,/,
''/'
says/V
Barry/N
Olson/N
,/,
creative/J
director/N
at/I
Innis-Maggiore-Olson/N
,/,
Canton/N
,/,
Ohio/N
,/,
which/W
is/V
producing/V
the/D
ads/N
./.
###/###
But/C
there/E
are/V
plenty/R
of/I
other/J
promising/J
prospects/N
at/I
Lake/N
View/N
,/,
promoters/N
believe/V
:/:
Ernest/N
Ball/N
,/,
for/I
instance/N
,/,
who/W
wrote/V
``/`
When/W
Irish/J
Eyes/N
are/V
Smiling/V
,/,
''/'
and/C
Garrett/N
Morgan/N
,/,
the/D
inventor/N
of/I
the/D
gas/N
mask/N
and/C
the/D
tri-colored/J
traffic/N
light/N
./.
###/###
Euro/N
Disneyland/N
shares/N
made/V
a/D
debut/N
like/I
Snow/N
White/N
yesterday/N
while/I
most/J
of/I
the/D
London/N
stock/N
market/N
looked/V
like/I
it/P
had/V
eaten/V
the/D
Evil/N
Queen/N
's/P
poisoned/V
apple/N
./.
###/###
In/I
its/P
first/J
day/N
of/I
when-issued/J
trading/N
here/R
,/,
Euro/N
Disney/N
soared/V
like/I
Dumbo/N
to/T
close/V
at/I
814/C
pence/N
-LRB-/-
$/$
13.05/C
-RRB-/-
,/,
up/I
15/C
%/N
from/I
its/P
707-pence/J
offering/V
price/N
./.
###/###
The/D
overall/J
London/N
market/N
,/,
following/V
Wall/N
Street/N
's/P
early/J
nosedive/N
,/,
took/V
a/D
late/J
beating/N
./.
###/###
The/D
Financial/N
Times-Stock/N
Exchange/N
100-Share/N
Index/N
plummeted/V
40.4/C
points/N
to/T
close/V
at/I
2149.3/C
./.
###/###
Traders/N
credited/V
Euro/N
Disney/N
's/P
share/N
performance/N
to/T
the/D
tremendous/J
hyping/N
of/I
the/D
project/N
that/I
the/D
shares/N
are/V
destined/V
to/T
help/V
finance/N
:/:
Walt/N
Disney/N
Co./N
's/P
4,800-acre/J
theme/N
park/N
20/C
miles/N
east/J
of/I
Paris/N
./.
###/###
The/D
park/N
is/V
slated/V
to/T
open/V
in/I
1992/C
./.
###/###
``/`
The/D
issue/N
was/V
very/R
well-received/J
--/:
Disney/N
is/V
such/J
a/D
well-known/N
,/,
you/P
can/M
say/V
world-wide/J
,/,
name/N
,/,
''/'
said/V
Vernon/N
Dempsey/N
,/,
head/N
trader/N
of/I
European/J
equities/N
at/I
Kleinwort/N
Benson/N
Ltd./N
,/,
which/W
is/V
making/V
a/D
market/N
in/I
the/D
issue/N
./.
###/###
Mr./N
Dempsey/N
estimated/V
that/I
the/D
issue/N
's/P
London/N
debut/N
was/V
accompanied/V
by/I
``/`
very/R
,/,
very/R
heavy/J
turnover/N
--/:
between/I
five/C
million/C
and/C
six/C
million/C
shares/N
./.
''/'
###/###
Most/J
of/I
the/D
buying/N
was/V
institutional/J
,/,
he/P
added/V
./.
###/###
Official/J
trading/N
in/I
the/D
shares/N
will/M
start/V
in/I
London/N
,/,
Paris/N
and/C
Brussels/N
on/I
Nov./N
6/C
,/,
when/W
the/D
French-franc/N
denominated/V
offering/N
,/,
valued/V
at/I
the/D
equivalent/N
of/I
nearly/R
$/$
1/C
billion/C
,/,
comes/V
to/T
market/N
in/I
the/D
European/N
Community/N
./.
###/###
U.S./N
investors/N
will/M
be/V
permitted/V
to/T
buy/V
the/D
shares/N
from/I
EC/N
investors/N
90/C
days/N
later/R
./.
###/###
Because/I
of/I
the/D
interest/N
connected/V
with/I
the/D
issue/N
,/,
the/D
London/N
exchange/N
took/V
the/D
unusual/J
step/N
of/I
letting/V
traders/N
establish/V
an/D
officially/R
sanctioned/V
when-issued/J
market/N
./.
###/###
A/D
volatile/J
,/,
unofficial/J
``/`
gray/J
''/'
market/N
in/I
the/D
shares/N
has/V
been/V
operating/V
in/I
Paris/N
for/I
about/I
two/C
weeks/N
./.
###/###
In/I
contrast/N
to/T
the/D
London/N
performance/N
,/,
Euro/N
Disney/N
there/R
closed/V
down/I
three/C
francs/N
yesterday/N
,/,
at/I
79/C
francs/N
-LRB-/-
$/$
12.66/C
-RRB-/-
bid/N
,/,
but/C
still/R
about/I
10/C
%/N
over/I
the/D
72-franc/J
offering/N
price/N
./.
###/###
``/`
A/D
lot/N
of/I
people/N
are/V
getting/V
hurt/N
on/I
this/D
wicked/J
whipsawing/N
,/,
''/'
cautioned/V
Alistair/N
Cuddeford/N
,/,
a/D
London-based/J
Salomon/N
Brothers/N
International/N
Ltd./N
trader/N
who/W
makes/V
a/D
market/N
in/I
franc-denominated/J
Euro/N
Disney/N
shares/N
./.
###/###
``/`
There/E
should/M
be/V
no/D
great/J
rush/N
for/I
investors/N
to/T
buy/V
this/D
./.
###/###
A/D
lot/N
of/I
big/J
European/J
banks/N
,/,
mostly/R
French/J
,/,
and/C
Swiss/J
arb/N
accounts/N
have/V
been/V
buying/V
the/D
stock/N
just/R
to/T
flip/V
it/P
''/'
for/I
a/D
quick/J
profit/N
,/,
he/P
said/V
./.
###/###
Albert/N
Fried/N
Jr./N
,/,
a/D
59-year-old/J
director/N
and/C
holder/N
of/I
a/D
9.5/C
%/N
stake/N
in/I
the/D
company/N
,/,
was/V
named/V
chairman/N
of/I
this/D
maker/N
of/I
products/N
for/I
the/D
construction/N
equipment/N
,/,
material/N
handling/N
and/C
railroad/N
industries/N
./.
###/###
He/P
succeeds/V
L.L./N
White/N
Jr./N
,/,
62/C
,/,
who/W
resigned/V
but/C
continues/V
as/I
a/D
director/N
./.
###/###
Mr./N
Fried/N
also/R
is/V
the/D
managing/V
partner/N
of/I
Albert/N
Fried/N
&/C
Co/N
./.
###/###
Ford/N
Motor/N
Co./N
intensified/V
its/P
battle/N
with/I
General/N
Motors/N
Corp./N
over/I
Jaguar/N
PLC/N
by/I
saying/V
it/P
is/V
prepared/V
to/T
make/V
a/D
bid/N
for/I
all/D
of/I
the/D
British/J
auto/N
maker/N
when/W
restrictions/N
on/I
its/P
shareholding/N
are/V
lifted/V
./.
###/###
The/D
statement/N
was/V
part/N
of/I
a/D
Ford/N
filing/N
with/I
the/D
U.S./N
Securities/N
and/C
Exchange/N
Commission/N
./.
###/###
Ford/N
did/V
n't/R
say/V
how/W
much/J
it/P
might/M
offer/V
for/I
Jaguar/N
,/,
or/C
when/W
./.
###/###
The/D
British/J
government/N
currently/R
forbids/V
any/D
outside/J
investor/N
from/I
holding/V
more/R
than/I
15/C
%/N
of/I
the/D
company/N
's/P
shares/N
without/I
permission/N
until/I
Dec./N
31/C
,/,
###/###
But/C
with/I
its/P
stake/N
in/I
Jaguar/N
,/,
which/W
it/P
raised/V
yesterday/N
to/T
11.95/C
%/N
,/,
Ford/N
could/M
convene/V
a/D
special/J
Jaguar/N
shareholders/N
'/P
meeting/N
and/C
urge/V
holders/N
to/T
vote/V
to/T
drop/V
the/D
restriction/N
sooner/R
./.
###/###
A/D
successful/J
vote/N
would/M
put/V
pressure/N
on/I
the/D
British/J
government/N
to/T
lift/V
the/D
restriction/N
./.
###/###
``/`
We/P
have/V
not/R
made/V
that/D
decision/N
''/'
to/T
seek/V
a/D
Jaguar/N
special/J
shareholders/N
'/P
meeting/N
,/,
said/V
Martyn/N
Watkins/N
,/,
a/D
Ford/N
spokesman/N
in/I
London/N
./.
###/###
He/P
emphasized/V
that/I
the/D
car/N
maker/N
only/R
would/M
bid/V
for/I
all/D
of/I
Jaguar/N
under/I
the/D
right/J
circumstances/N
,/,
and/C
said/V
``/`
those/D
circumstances/N
are/V
n't/R
right/J
or/C
possible/J
at/I
the/D
moment/N
./.
''/'
###/###
Last/J
month/N
,/,
Ford/N
announced/V
plans/N
to/T
acquire/V
as/R
much/R
as/I
15/C
%/N
of/I
Jaguar/N
./.
###/###
Since/I
then/R
,/,
Jaguar/N
officials/N
have/V
confirmed/V
that/I
they/P
are/V
discussing/V
an/D
alliance/N
with/I
GM/N
and/C
said/V
last/J
week/N
that/I
they/P
hoped/V
to/T
reach/V
an/D
agreement/N
within/I
a/D
month/N
./.
###/###
Analysts/N
have/V
been/V
expecting/V
a/D
GM-Jaguar/J
pact/N
that/W
would/M
give/V
the/D
U.S./N
car/N
maker/N
an/D
eventual/J
30/C
%/N
stake/N
in/I
the/D
British/J
company/N
and/C
create/V
joint/J
ventures/N
that/W
would/M
produce/V
an/D
executive-model/J
range/N
of/I
cars/N
./.
###/###
But/C
the/D
specter/N
of/I
Ford/N
eventually/R
launching/V
a/D
full-fledged/J
bid/N
could/M
unravel/V
the/D
GM-Jaguar/J
talks/N
./.
###/###
Jaguar/N
seems/V
to/T
be/V
losing/V
interest/N
in/I
giving/V
GM/N
a/D
minority/N
stake/N
,/,
said/V
one/C
individual/N
close/J
to/T
the/D
talks/N
,/,
adding/V
,/,
``/`
It/P
would/M
n't/R
surprise/V
me/P
if/I
-LCB-/-
Jaguar/N
executives/N
-RCB-/-
want/V
to/T
wait/V
and/C
see/V
what/W
the/D
color/N
of/I
that/D
-LCB-/-
Ford/N
bid/N
-RCB-/-
is/V
''/'
first/J
./.
###/###
He/P
predicted/V
Ford/N
officials/N
will/M
meet/V
with/I
Jaguar/N
executives/N
in/I
the/D
next/J
week/N
to/T
outline/V
their/P
proposed/V
offer/N
./.
###/###
Sir/N
John/N
Egan/N
,/,
Jaguar/N
's/P
chairman/N
,/,
so/R
far/R
has/V
refused/V
to/T
meet/V
with/I
Ford/N
officials/N
,/,
but/C
he/P
is/V
believed/V
to/T
be/V
willing/J
to/T
consider/V
a/D
specific/J
bid/N
proposal/N
./.
###/###
As/I
for/I
GM/N
,/,
its/P
``/`
fallback/N
position/N
has/V
to/T
be/V
a/D
full/J
bid/N
itself/P
,/,
''/'
said/V
Stephen/N
Reitman/N
,/,
European/J
auto-industry/N
analyst/N
at/I
London/N
brokers/N
UBS-Phillips/N
&/C
Drew/N
./.
###/###
A/D
Ford/N
takeover/N
of/I
Jaguar/N
would/M
``/`
have/V
such/J
implications/N
for/I
the/D
balance/N
of/I
power/N
in/I
the/D
1990s/C
that/I
General/N
Motors/N
ca/M
n't/R
afford/V
to/T
step/V
aside/R
./.
###/###
They/P
will/M
have/V
to/T
throw/V
their/P
hat/N
in/I
the/D
ring/N
./.
''/'
###/###
A/D
GM/N
spokesman/N
yesterday/N
reiterated/V
the/D
company/N
's/P
interest/N
in/I
acquiring/V
a/D
minority/N
stake/N
to/T
help/V
Jaguar/N
remain/V
independent/J
./.
###/###
A/D
pitched/J
battle/N
could/M
mean/V
Jaguar/N
would/M
fetch/V
#/#
10/C
-LRB-/-
$/$
16.02/C
-RRB-/-
a/D
share/N
,/,
or/C
about/I
#/#
1.8/C
billion/C
-LRB-/-
$/$
2.88/C
billion/C
-RRB-/-
,/,
several/J
analysts/N
believe/V
./.
###/###
The/D
prospect/N
of/I
such/P
a/D
takeover/N
fight/N
has/V
sent/V
Jaguar/N
shares/N
soaring/V
in/I
recent/J
weeks/N
./.
###/###
U.S./N
takeover-stock/N
speculators/N
now/R
own/V
an/D
estimated/V
25/C
%/N
of/I
Jaguar/N
shares/N
./.
###/###
In/I
a/D
declining/V
London/J
stock/N
market/N
yesterday/N
,/,
Jaguar/N
shares/N
were/V
down/I
four/C
pence/N
from/I
Monday/N
in/I
late/J
trading/N
,/,
at/I
694/C
pence/N
-LRB-/-
$/$
11.11/C
-RRB-/-
a/D
share/N
./.
###/###
In/I
the/D
U.S./N
,/,
Jaguar/N
's/P
American/J
depositary/N
receipts/N
rose/V
12.5/C
cents/N
in/I
over-the-counter/J
trading/N
,/,
to/T
$/$
11.25/C
./.
###/###
Both/D
Ford/N
and/C
GM/N
badly/R
need/V
a/D
luxury/N
brand/N
to/T
combat/V
new/J
competition/N
from/I
the/D
Japanese/N
in/I
the/D
European/J
and/C
U.S./N
markets/N
./.
###/###
And/C
financially/R
strapped/V
Jaguar/N
has/V
spent/V
over/I
a/D
year/N
looking/V
for/I
a/D
rich/J
uncle/N
to/T
provide/V
cash/N
and/C
technological/J
know-how/N
./.
###/###
The/D
company/N
has/V
expressed/V
a/D
preference/N
for/I
GM/N
over/I
Ford/N
because/I
GM/N
has/V
promised/V
it/P
would/M
keep/V
Jaguar/N
independent/J
./.
###/###
Ford/N
's/P
need/N
to/T
acquire/V
some/D
or/C
all/D
of/I
Jaguar/N
became/V
more/R
acute/J
last/J
week/N
when/W
it/P
abandoned/V
a/D
four-year/J
effort/N
to/T
market/N
its/P
German-built/J
Merkur/N
Scorpio/N
sedan/N
as/I
a/D
European/J
luxury/N
import/N
in/I
the/D
U.S/N
./.
###/###
Then/R
,/,
last/J
Friday/N
,/,
Ford/N
's/P
talks/N
about/I
a/D
possible/J
alliance/N
with/I
Saab-Scania/N
AB/N
of/I
Sweden/N
collapsed/V
./.
###/###
GM/N
's/P
interest/N
in/I
Jaguar/N
reflects/V
a/D
desire/N
to/T
help/V
diversify/V
the/D
U.S./N
company/N
's/P
products/N
in/I
the/D
growing/V
luxury-car/N
segment/N
of/I
the/D
market/N
./.
###/###
Its/P
Opel/N
line/N
has/V
a/D
solid/J
image/N
and/C
a/D
recent/J
string/N
of/I
highly/R
successful/J
new/J
models/N
,/,
but/C
it/P
lacks/V
Jaguar/N
's/P
cachet/N
./.
###/###
GM/N
officials/N
also/R
see/V
a/D
lot/N
of/I
potential/N
in/I
marrying/V
Jaguar/N
's/P
cars/N
to/T
the/D
technological/J
know-how/N
of/I
Group/N
Lotus/N
PLC/N
,/,
a/D
British/J
engineering/N
and/C
specialty/N
car/N
maker/N
GM/N
bought/V
in/I
1986/C
./.
###/###
Texaco/N
Inc./N
reported/V
an/D
11/C
%/N
increase/N
in/I
third-quarter/J
earnings/N
,/,
which/W
it/P
attributed/V
partly/R
to/T
the/D
company/N
's/P
massive/J
restructuring/V
after/I
it/P
emerged/V
from/I
bankruptcy-law/N
proceedings/N
18/C
months/N
ago/I
./.
###/###
Sun/N
Co./N
also/R
reported/V
higher/J
earnings/N
./.
###/###
Meanwhile/R
,/,
like/I
many/J
other/J
oil/N
companies/N
hurt/V
by/I
less-profitable/J
downstream/J
businesses/N
,/,
Mobil/N
Corp./N
,/,
Shell/N
Oil/N
Co./N
and/C
Chevron/N
Corp./N
reported/V
lower/J
quarterly/J
earnings/N
./.
###/###
Texaco/N
's/P
exploration/N
and/C
production/N
earnings/N
improved/V
as/I
a/D
result/N
of/I
its/P
streamlining/N
of/I
those/D
operations/N
as/I
it/P
sold/V
many/J
of/I
its/P
marginal/J
producing/V
properties/N
over/I
the/D
past/J
18/C
months/N
./.
###/###
An/D
increase/N
in/I
production/N
at/I
some/D
major/J
oil/N
fields/N
in/I
the/D
North/N
Sea/N
,/,
which/W
had/V
been/V
knocked/V
out/I
by/I
an/D
explosion/N
in/I
July/N
1988/C
,/,
also/R
aided/V
results/N
./.
###/###
The/D
sale/N
of/I
a/D
portion/N
of/I
refining/V
and/C
marketing/N
operations/N
to/T
Saudi/N
Arabia/N
helped/V
alleviate/V
the/D
decline/N
in/I
earnings/N
from/I
that/D
business/N
./.
###/###
``/`
The/D
company/N
has/V
been/V
completely/R
revamped/V
,/,
''/'
said/V
Frank/N
Knuettel/N
,/,
analyst/N
for/I
Prudential-Bache/N
Securities/N
Inc/N
./.
###/###
Third-quarter/J
net/J
income/N
at/I
Texaco/N
rose/V
to/T
$/$
305/C
million/C
from/I
$/$
274/C
million/C
last/J
year/N
./.
###/###
Revenue/N
declined/V
3.4/C
%/N
,/,
to/T
$/$
8.4/C
billion/C
from/I
$/$
8.7/C
billion/C
./.
###/###
Per-share/J
earnings/N
declined/V
to/T
$/$
1.10/C
a/D
share/N
from/I
$/$
1.12/C
a/D
share/N
,/,
largely/R
because/I
of/I
21/C
million/C
additional/J
shares/N
issued/V
to/T
retire/V
$/$
1/C
billion/C
of/I
debt/N
./.
###/###
Per-share/J
earnings/N
also/R
shrank/V
because/I
of/I
dividends/N
on/I
a/D
new/J
series/N
of/I
preferred/V
stock/N
./.
###/###
Sun/N
Sun/N
Co./N
's/P
net/J
income/N
climbed/V
18/C
%/N
to/T
$/$
85/C
million/C
,/,
or/C
80/C
cents/N
a/D
share/N
,/,
from/I
$/$
72/C
million/C
,/,
or/C
67/C
cents/N
a/D
share/N
./.
###/###
Revenue/N
increased/V
11/C
%/N
,/,
to/T
$/$
2.73/C
billion/C
from/I
$/$
2.46/C
billion/C
./.
###/###
Sun/N
said/V
some/D
of/I
the/D
growth/N
reflects/V
higher/J
earnings/N
in/I
the/D
oil/N
sands/N
operation/N
of/I
Suncor/N
,/,
a/D
majority-owned/J
Canadian/J
subsidiary/N
./.
###/###
Chairman/N
Robert/N
McClements/N
Jr./N
said/V
the/D
synthetic/J
crude/J
oil/N
production/N
from/I
the/D
facility/N
rose/V
even/R
as/I
the/D
price/N
for/I
that/D
oil/N
increased/V
./.
###/###
Overseas/J
exploration/N
and/C
production/N
results/N
also/R
improved/V
because/I
of/I
additional/J
output/N
from/I
the/D
North/N
Sea/N
Magnus/N
Field/N
,/,
a/D
portion/N
of/I
which/W
was/V
acquired/V
by/I
Sun/N
earlier/R
this/D
year/N
./.
###/###
Results/N
declined/V
,/,
however/R
,/,
in/I
Sun/N
's/P
refining/N
and/C
marketing/N
and/C
coal/N
businesses/N
./.
###/###
Profits/N
of/I
Shell/N
,/,
a/D
subsidiary/N
of/I
the/D
Royal/N
Group/N
,/,
tumbled/V
$/$
24/C
million/C
,/,
or/C
6.6/C
%/N
,/,
to/T
$/$
340/C
million/C
,/,
despite/I
a/D
gain/N
of/I
$/$
30/C
million/C
from/I
an/D
insurance/N
settlement/N
./.
###/###
President/N
Frank/N
Richardson/N
attributed/V
the/D
decline/N
to/T
lower/J
natural/J
gas/N
prices/N
,/,
which/W
countered/V
higher/J
earnings/N
from/I
the/D
crude/J
oil/N
sector/N
of/I
Shell/N
's/P
exploration/N
and/C
production/N
operation/N
./.
###/###
away/R
some/D
of/I
the/D
gain/N
in/I
that/D
unit/N
was/V
a/D
decline/N
in/I
U.S./N
oil/N
production/N
to/T
502,000/C
barrels/N
of/I
oil/N
a/D
day/N
during/I
the/D
quarter/N
from/I
527,000/C
barrels/N
a/D
day/N
last/J
year/N
./.
###/###
Shell/N
's/P
chemical/N
earnings/N
fell/V
by/I
$/$
67/C
million/C
,/,
to/T
$/$
137/C
million/C
,/,
reflecting/V
lower/J
margins/N
and/C
less/J
demand/N
for/I
commodity/N
chemicals/N
./.
###/###
Net/J
income/N
at/I
Mobil/N
Corp./N
slipped/V
4.5/C
%/N
to/T
$/$
532/C
million/C
,/,
or/C
$/$
1.30/C
a/D
share/N
,/,
from/I
$/$
557/C
million/C
,/,
or/C
$/$
1.36/C
a/D
share/N
./.
###/###
Revenue/N
declined/V
$/$
518/C
million/C
,/,
to/T
$/$
13.63/C
billion/C
./.
###/###
Earnings/N
included/V
a/D
one-time/J
gain/N
of/I
$/$
192/C
million/C
on/I
a/D
property/N
transaction/N
in/I
Hong/N
Kong/N
./.
###/###
Exploration/N
and/C
production/N
profits/N
slumped/V
$/$
40/C
million/C
due/J
to/T
a/D
provision/N
for/I
restructuring/V
costs/N
./.
###/###
The/D
restructuring/V
will/M
take/V
place/N
over/I
a/D
two-year/J
period/N
and/C
will/M
involve/V
the/D
transfer/N
and/C
layoff/N
of/I
employees/N
in/I
U.S./N
operations/N
to/T
reduce/V
costs/N
and/C
focus/V
efforts/N
in/I
other/J
areas/N
./.
###/###
Last/J
year/N
,/,
third-quarter/J
earnings/N
included/V
a/D
$/$
157/C
million/C
gain/N
from/I
foreign/J
tax/N
rate/N
changes/N
and/C
a/D
loss/N
from/I
a/D
$/$
65/C
million/C
write-off/N
of/I
reserves/N
./.
###/###
Chevron/N
's/P
net/J
income/N
fell/V
0.7/C
%/N
,/,
to/T
$/$
417/C
million/C
,/,
or/C
$/$
1.22/C
a/D
share/N
,/,
from/I
$/$
420/C
million/C
,/,
or/C
$/$
1.23/C
a/D
share/N
./.
###/###
Results/N
included/V
a/D
$/$
37/C
million/C
gain/N
from/I
the/D
sale/N
of/I
rights/N
from/I
Chevron/N
's/P
investment/N
in/I
Amax/N
Inc./N
,/,
and/C
a/D
loss/N
of/I
$/$
30/C
million/C
from/I
the/D
sale/N
of/I
California/N
oil/N
and/C
gas/N
properties/N
./.
###/###
Revenue/N
rose/V
11/C
%/N
,/,
to/T
$/$
8/C
billion/C
from/I
$/$
7.2/C
billion/C
./.
###/###
Chevron/N
said/V
higher/J
crude/J
oil/N
prices/N
boosted/V
profits/N
from/I
production/N
operations/N
,/,
but/C
margins/N
in/I
refining/N
and/C
marketing/N
declined/V
./.
###/###
Profits/N
from/I
U.S./N
exploration/N
and/C
production/N
operations/N
totaled/V
$/$
58/C
million/C
,/,
after/I
the/D
property/N
sale/N
loss/N
,/,
compared/V
with/I
a/D
year-earlier/J
$/$
44/C
million/C
loss/N
that/W
included/V
a/D
$/$
16/C
million/C
reorganization/N
charge/N
./.
###/###
Refining/N
and/C
marketing/N
operations/N
earned/V
$/$
130/C
million/C
in/I
the/D
quarter/N
this/D
year/N
,/,
compared/V
with/I
earnings/N
of/I
$/$
186/C
million/C
a/D
year/N
earlier/R
that/I
included/V
$/$
18/C
million/C
in/I
charges/N
for/I
environmental/J
programs/N
./.
###/###
Foreign/J
earnings/N
fell/V
to/T
$/$
180/C
million/C
from/I
$/$
182/C
million/C
that/W
included/V
a/D
$/$
48/C
million/C
gain/N
from/I
lower/J
Canadian/J
and/C
Australian/J
taxes/N
./.
###/###
Chemical/N
profits/N
fell/V
to/T
$/$
78/C
million/C
from/I
$/$
98/C
million/C
./.
###/###
Jeff/N
Rowe/N
contributed/V
to/T
this/D
article/N
./.
###/###
Asarco/N
Inc./N
,/,
continuing/V
its/P
effort/N
to/T
refocus/V
its/P
business/N
,/,
ended/V
its/P
involvement/N
in/I
asbestos/N
mining/N
in/I
the/D
third/J
quarter/N
and/C
said/V
it/P
would/M
stop/V
mining/V
and/C
selling/V
coal/N
by/I
year/N
end/N
./.
###/###
The/D
mining/N
,/,
metal/N
and/C
specialty-chemical/N
concern/N
said/V
combined/V
revenue/N
for/I
asbestos/N
and/C
coal/N
was/V
about/I
$/$
40/C
million/C
of/I
the/D
company/N
's/P
total/J
revenue/N
in/I
1988/C
of/I
$/$
1.98/C
billion/C
./.
###/###
Richard/N
de/N
J./N
Osborne/N
,/,
chairman/N
,/,
president/N
and/C
chief/N
executive/N
officer/N
,/,
said/V
the/D
company/N
's/P
``/`
decisions/N
to/T
get/V
out/I
of/I
asbestos/N
and/C
high-sulfur/J
coal/N
continue/V
the/D
process/N
of/I
simplifying/V
and/C
focusing/V
the/D
company/N
in/I
areas/N
with/I
a/D
better/J
future/N
./.
''/'
###/###
Asarco/N
also/R
reported/V
third-quarter/J
net/J
income/N
rose/V
14/C
%/N
,/,
to/T
$/$
52.7/C
million/C
,/,
or/C
$/$
1.25/C
a/D
share/N
,/,
from/I
a/D
restated/V
$/$
46.2/C
million/C
,/,
or/C
$/$
1.10/C
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Asarco/N
said/V
the/D
gain/N
reflected/V
continued/V
strength/N
in/I
prices/N
for/I
refined/V
copper/N
,/,
lead/N
and/C
zinc/N
,/,
and/C
higher/J
equity/N
earnings/N
in/I
Mexico/N
Desarrollo/N
Industrial/N
Minero/N
S.A./N
,/,
a/D
Mexican/J
mining/N
company/N
in/I
which/W
Asarco/N
has/V
a/D
34/C
%/N
stake/N
./.
###/###
The/D
1988/C
results/N
were/V
restated/V
for/I
accounting-rules/J
changes/N
./.
###/###
Sales/N
rose/V
4.5/C
%/N
to/T
$/$
522.3/C
million/C
from/I
$/$
499.4/C
million/C
./.
###/###
In/I
August/N
,/,
Asarco/N
,/,
through/I
its/P
Lac/N
d'Amiante/N
du/N
Quebec/N
subsidiary/N
,/,
sold/V
its/P
remaining/V
one-third/J
interest/N
in/I
an/D
asbestos/N
mining/N
limited/V
partnership/N
in/I
Canada/N
for/I
$/$
11.7/C
million/C
./.
###/###
Asarco/N
said/V
it/P
plans/V
to/T
shut/V
down/I
or/C
sell/V
its/P
Rapatee/N
coal/N
mine/N
and/C
will/M
end/V
its/P
involvement/N
in/I
southern/J
Illinois/N
strip/N
mining/N
./.
###/###
The/D
company/N
said/V
that/I
it/P
is/V
discussing/V
a/D
management-employee/N
buy-out/N
of/I
the/D
facility/N
,/,
but/C
that/I
it/P
would/M
stop/V
mining/V
and/C
selling/V
coal/N
at/I
year/N
end/N
when/W
existing/V
sales/N
contracts/N
expire/V
,/,
regardless/R
of/I
the/D
outcome/N
of/I
those/D
talks/N
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
,/,
Asarco/N
fell/V
$/$
1.375/C
to/T
close/V
at/I
$/$
31.75/C
./.
###/###
Companies/N
listed/V
below/I
reported/V
quarterly/J
profit/N
substantially/R
different/J
from/I
the/D
average/N
of/I
analysts/N
'/P
estimates/N
./.
###/###
The/D
companies/N
are/V
followed/V
by/I
at/I
least/J
three/C
analysts/N
,/,
and/C
had/V
a/D
minimum/J
five-cent/J
change/N
in/I
actual/J
earnings/N
per/I
share/N
./.
###/###
Estimated/V
and/C
actual/J
results/N
involving/V
losses/N
are/V
omitted/V
./.
###/###
The/D
percent/N
difference/N
compares/V
actual/J
profit/N
with/I
the/D
30-day/J
estimate/N
where/W
at/I
least/J
three/C
analysts/N
have/V
issues/N
forecasts/N
in/I
the/D
past/J
30/C
days/N
./.
###/###
Otherwise/R
,/,
actual/J
profit/N
is/V
compared/V
with/I
the/D
300-day/J
estimate/N
./.
###/###
David/N
W./N
Lodge/N
was/V
elected/V
vice/N
president/N
and/C
chief/N
financial/J
officer/N
,/,
effective/J
Nov./N
1/C
./.
###/###
Mr./N
Lodge/N
,/,
48/C
years/N
old/J
,/,
a/D
former/J
finance/N
executive/N
at/I
Singer/N
Sewing/N
Machine/N
Co./N
and/C
Celanese/N
Corp./N
,/,
succeeds/V
Francis/N
L./N
Brophy/N
,/,
64/C
,/,
who/W
plans/V
to/T
retire/V
from/I
the/D
company/N
next/I
year/N
./.
###/###
Carlos/N
A./N
Salvagni/N
,/,
vice/N
president/N
,/,
pharmaceutical/J
manufacturing/N
,/,
will/M
assume/V
responsibility/N
for/I
manufacturing/N
in/I
Kalamazoo/N
,/,
Mich./N
,/,
effective/J
Nov./N
1/C
./.
###/###
Mr./N
Salvagni/N
,/,
53/C
years/N
old/J
,/,
succeeds/V
John/N
C./N
Griffin/N
,/,
57/C
,/,
who/W
is/V
retiring/V
as/R
corporate/J
vice/N
president/N
of/I
pharmaceutical/J
manufacturing/N
./.
###/###
Upjohn/N
is/V
a/D
world-wide/J
provider/N
of/I
health-care/J
products/N
and/C
services/N
,/,
seeds/N
and/C
speciality/N
chemicals/N
./.
###/###
This/D
Brooklyn/N
,/,
N.Y./N
,/,
generic-drug/N
maker/N
announced/V
a/D
5/C
%/N
stock/N
dividend/N
payable/J
Dec./N
15/C
,/,
to/T
holders/N
of/I
record/N
Nov./N
15/C
./.
###/###
As/I
of/I
Sept./N
30/C
,/,
Halsey/N
had/V
5.3/C
million/C
common/J
shares/N
outstanding/J
./.
###/###
Jay/N
Marcus/N
,/,
president/N
,/,
said/V
the/D
move/N
``/`
reflects/V
the/D
confidence/N
of/I
our/P
board/N
and/C
management/N
in/I
Halsey/N
's/P
long-term/J
prospects/N
and/C
our/P
desire/N
to/T
provide/V
our/P
shareholders/N
with/I
an/D
attractive/J
return/N
on/I
their/P
investment/N
./.
''/'
###/###
In/I
American/N
Stock/N
Exchange/N
composite/J
trading/N
,/,
Halsey/N
closed/V
at/I
$/$
5.8125/C
a/D
share/N
,/,
up/I
6.25/C
cents/N
./.
###/###
Walter/N
M./N
Brady/N
was/V
named/V
a/D
senior/J
vice/N
president/N
of/I
this/D
insurer/N
in/I
the/D
Canadian/J
head/N
office/N
./.
###/###
He/P
had/V
been/V
vice/N
president/N
in/I
that/D
office/N
./.
###/###
John/N
B./N
Foy/N
was/V
named/V
senior/J
vice/N
president/N
and/C
remains/V
responsible/J
for/I
the/D
individual/J
policy/N
services/N
department/N
./.
###/###
Frank/N
J./N
Ollari/N
was/V
named/V
senior/J
vice/N
president/N
in/I
charge/N
of/I
the/D
mortgage/N
finance/N
department/N
./.
###/###
He/P
had/V
been/V
vice/N
president/N
of/I
the/D
department/N
,/,
which/W
was/V
formerly/R
called/V
the/D
real/J
estate/N
department/N
./.
###/###
Timothy/N
C./N
Brown/N
,/,
a/D
vice/N
president/N
,/,
was/V
named/V
executive/J
vice/N
president/N
and/C
a/D
director/N
of/I
this/D
lighting/N
and/C
specialty/N
products/N
concern/N
./.
###/###
In/I
the/D
director/N
post/N
,/,
Mr./N
Brown/N
,/,
38/C
years/N
old/J
,/,
succeeds/V
Joseph/N
W./N
Hibben/N
,/,
who/W
retired/V
from/I
the/D
board/N
in/I
August/N
./.
###/###
C./N
Barr/N
Schuler/N
,/,
49/C
,/,
vice/N
president/N
and/C
chief/N
financial/J
officer/N
,/,
was/V
named/V
senior/J
vice/N
president/N
of/I
corporate/J
development/N
and/C
acquisitions/N
,/,
a/D
new/J
post/N
./.
###/###
Phillip/N
J./N
Stuecker/N
,/,
37/C
,/,
vice/N
president/N
,/,
secretary/N
and/C
treasurer/N
,/,
was/V
named/V
vice/N
president/N
of/I
finance/N
and/C
chief/N
financial/J
officer/N
./.
###/###
He/P
remains/V
secretary/N
./.
###/###
Ronald/N
B./N
Koenig/N
,/,
55/C
years/N
old/J
,/,
was/V
named/V
a/D
senior/J
managing/V
director/N
of/I
the/D
Gruntal/N
&/C
Co./N
brokerage/N
subsidiary/N
of/I
this/D
insurance/N
and/C
financial-services/J
firm/N
./.
###/###
Mr./N
Koenig/N
will/M
build/V
the/D
corporate-finance/J
and/C
investment-banking/J
business/N
of/I
Gruntal/N
,/,
which/W
has/V
primarily/R
been/V
a/D
retail-based/J
firm/N
./.
###/###
He/P
was/V
chairman/N
and/C
co-chief/J
executive/J
officer/N
of/I
Ladenburg/N
,/,
Thalmann/N
&/C
Co./N
until/I
July/N
,/,
when/W
he/P
was/V
named/V
co-chairman/N
of/I
the/D
investment-banking/J
firm/N
along/I
with/I
Howard/N
L./N
Blum/N
Jr./N
,/,
who/W
then/R
became/V
the/D
sole/J
chief/N
executive/N
./.
###/###
Yesterday/N
,/,
Mr./N
Blum/N
,/,
41/C
,/,
said/V
he/P
was/V
n't/R
aware/J
of/I
plans/N
at/I
Ladenburg/N
to/T
name/V
a/D
co-chairman/N
to/T
succeed/V
Mr./N
Koenig/N
and/C
said/V
the/D
board/N
would/M
need/V
to/T
approve/V
any/D
appointments/N
or/C
title/N
changes/N
./.
###/###
Mr./N
Blum/N
added/V
he/P
was/V
n't/R
surprised/V
Mr./N
Koenig/N
resigned/V
,/,
but/C
his/P
departure/N
was/V
``/`
nothing/N
that/I
we/P
desired/V
or/C
worked/V
for/I
./.
''/'
###/###
Mr./N
Koenig/N
said/V
:/:
``/`
I/P
just/R
got/V
a/D
tremendous/J
offer/N
from/I
Gruntal/N
./.
###/###
MCI/N
Communications/N
Corp./N
said/V
it/P
received/V
a/D
$/$
12/C
million/C
contract/N
to/T
provide/V
virtual/J
network/N
services/N
to/T
Woolworth/N
Corp./N
's/P
5,600/C
corporate/J
and/C
retail/J
sites/N
in/I
the/D
###/###
The/D
contract/N
also/R
provides/V
for/I
advanced/V
billing/N
and/C
network/N
management/N
services/N
./.
###/###
Woolworth/N
said/V
it/P
expects/V
to/T
expand/V
usage/N
of/I
the/D
MCI/N
services/N
as/I
it/P
adds/V
about/I
6,000/C
business/N
locations/N
over/I
the/D
next/J
few/J
years/N
./.
###/###
The/D
Philippine/J
merchandise/N
trade/N
deficit/N
widened/V
to/T
$/$
1.71/C
billion/C
during/I
the/D
first/J
eight/C
months/N
of/I
1989/C
from/I
$/$
807/C
million/C
a/D
year/N
earlier/R
./.
###/###
Imports/N
continued/V
to/T
outpace/V
Philippine/J
exports/N
,/,
despite/I
gains/N
in/I
shipments/N
abroad/R
,/,
the/D
government/N
National/N
Statistics/N
Office/N
said/V
./.
###/###
Exports/N
reached/V
$/$
5.12/C
billion/C
,/,
up/I
from/I
$/$
4.52/C
billion/C
a/D
year/N
earlier/R
,/,
while/I
imports/N
rose/V
to/T
$/$
6.81/C
billion/C
from/I
$/$
5.33/C
billion/C
./.
###/###
The/D
trade/N
deficit/N
in/I
the/D
first/J
eight/C
months/N
is/V
already/R
wider/J
than/I
the/D
trade/N
gap/N
of/I
$/$
1.09/C
billion/C
for/I
all/D
of/I
1988/C
./.
###/###
Analysts/N
expect/V
the/D
trade/N
gap/N
for/I
the/D
year/N
to/T
surpass/V
$/$
2/C
billion/C
as/I
demand/N
for/I
capital/N
equipment/N
and/C
raw/J
materials/N
continues/V
to/T
push/V
imports/N
higher/J
./.
###/###
Birtcher/N
Corp./N
said/V
it/P
signed/V
a/D
definitive/J
agreement/N
with/I
C.R./N
Bard/N
Inc./N
,/,
a/D
Murray/N
Hill/N
,/,
N.J./N
,/,
maker/N
of/I
health-care/N
products/N
,/,
for/I
the/D
purchase/N
of/I
the/D
company/N
's/P
Electrosurgery/N
division/N
for/I
about/I
$/$
11/C
million/C
./.
###/###
Birtcher/N
,/,
a/D
maker/N
of/I
electronic/J
medical/J
equipment/N
,/,
said/V
the/D
transaction/N
is/V
expected/V
to/T
close/V
on/I
or/C
before/I
Nov./N
30/C
./.
###/###
Bard/N
EMS/N
had/V
1988/C
sales/N
of/I
about/I
$/$
14/C
million/C
,/,
Birtcher/N
said/V
./.
###/###
WINSTON-SALEM/N
,/,
N.C./N
--/:
First/N
Wachovia/N
Corp./N
said/V
John/N
F./N
McNair/N
III/N
will/M
retire/V
as/I
president/N
and/C
chief/N
executive/J
officer/N
of/I
this/D
regional/J
banking/N
company/N
's/P
Wachovia/N
Corp./N
and/C
Wachovia/N
Bank/N
&/C
Trust/N
Co./N
subsidiaries/N
on/I
Dec./N
31/C
./.
###/###
Mr./N
McNair/N
,/,
62/C
years/N
old/J
,/,
will/M
be/V
succeeded/V
by/I
L.M./N
``/`
Bud/N
''/'
Baker/N
Jr./N
,/,
47/C
,/,
the/D
parent/N
's/P
chief/N
credit/N
officer/N
and/C
head/N
of/I
its/P
administration/N
division/N
./.
###/###
Mr./N
Baker/N
will/M
relinquish/V
his/P
previous/J
positions/N
,/,
but/C
a/D
successor/N
for/I
him/P
has/V
n't/R
been/V
named/V
yet/R
./.
###/###
In/I
addition/N
,/,
on/I
Jan./N
1/C
,/,
Thomas/N
A./N
Bennett/N
,/,
52/C
,/,
will/M
become/V
vice/N
chairman/N
and/C
chief/N
operating/V
officer/N
of/I
Wachovia/N
and/C
Wachovia/N
Bank/N
&/C
Trust/N
,/,
filling/V
a/D
vacancy/N
left/V
by/I
the/D
retired/V
Hans/N
W./N
Wanders/N
in/I
April/N
./.
###/###
Mr./N
Bennett/N
will/M
continue/V
as/I
executive/N
in/I
charge/N
of/I
the/D
North/N
Carolina/N
banking/V
operation/N
./.
###/###
Messrs./N
Baker/N
and/C
Bennett/N
have/V
been/V
elected/V
directors/N
of/I
Wachovia/N
and/C
Wachovia/N
Bank/N
&/C
Trust/N
filling/V
vacant/J
seats/N
on/I
both/D
boards/N
./.
###/###
Canadian/J
retail/N
sales/N
rose/V
0.2/C
%/N
in/I
August/N
from/I
July/N
,/,
Statistics/N
Canada/N
,/,
a/D
federal/J
agency/N
,/,
said/V
./.
###/###
The/D
August/N
increase/N
followed/V
a/D
0.3/C
%/N
decline/N
in/I
July/N
./.
###/###
During/I
the/D
past/J
four/C
months/N
,/,
retail/J
sales/N
have/V
remained/V
generally/R
weak/J
,/,
advancing/V
an/D
average/J
0.2/C
%/N
a/D
month/N
,/,
the/D
agency/N
said/V
./.
###/###
Raw-steel/N
production/N
by/I
the/D
nation/N
's/P
mills/N
decreased/V
0.7/C
%/N
last/J
week/N
to/T
1,816,000/C
tons/N
from/I
1,828,000/C
tons/N
the/D
previous/J
week/N
,/,
the/D
American/N
Iron/N
and/C
Steel/N
Institute/N
said/V
./.
###/###
Last/J
week/N
's/P
output/N
fell/V
1.7/C
%/N
from/I
the/D
1,848,000/C
tons/N
produced/V
a/D
year/N
earlier/R
./.
###/###
The/D
industry/N
used/V
81.6/C
%/N
of/I
its/P
capability/N
last/J
week/N
,/,
compared/V
with/I
82.2/C
%/N
the/D
previous/J
week/N
and/C
86.2/C
%/N
a/D
year/N
ago/I
./.
###/###
The/D
American/N
Iron/N
and/C
Steel/N
Institute/N
reported/V
:/:
###/###
The/D
capability/N
utilization/N
rate/N
is/V
a/D
calculation/N
designed/V
to/T
indicate/V
at/I
what/W
percent/N
of/I
its/P
production/N
capability/N
the/D
industry/N
is/V
operating/V
in/I
a/D
given/V
week/N
./.
###/###
With/I
reduced/V
exports/N
and/C
rising/V
imports/N
,/,
South/N
Korea/N
's/P
trade/N
surpluses/N
with/I
the/D
U.S./N
and/C
Europe/N
between/I
January/N
and/C
September/N
fell/V
sharply/R
from/I
a/D
year/N
ago/I
,/,
the/D
Customs/N
Administration/N
said/V
./.
###/###
Officials/N
said/V
South/N
Korea/N
's/P
trade/N
surplus/N
with/I
the/D
U.S./N
for/I
the/D
first/J
nine/C
months/N
of/I
the/D
year/N
totaled/V
$/$
3.49/C
billion/C
,/,
down/I
43/C
%/N
from/I
the/D
same/J
period/N
last/J
year/N
on/I
a/D
customs-clearance/N
basis/N
./.
###/###
South/N
Korean/N
exports/N
to/T
the/D
U.S./N
during/I
the/D
period/N
fell/V
1.6/C
%/N
from/I
a/D
year/N
ago/I
to/T
$/$
15.06/C
billion/C
,/,
while/I
imports/N
from/I
the/D
U.S./N
soared/V
26/C
%/N
to/T
$/$
11.56/C
billion/C
./.
###/###
The/D
trade/N
surplus/N
with/I
Europe/N
was/V
pegged/V
at/I
$/$
414/C
million/C
,/,
down/I
57/C
%/N
from/I
a/D
year/N
ago/I
./.
###/###
Officials/N
said/V
South/J
Korean/J
exports/N
to/T
Europe/N
dropped/V
5.3/C
%/N
to/T
$/$
3.02/C
billion/C
while/I
imports/N
from/I
there/R
went/V
up/I
17/C
%/N
to/T
$/$
2.61/C
billion/C
./.
###/###
Bausch/N
&/C
Lomb/N
Inc./N
said/V
its/P
pharmaceuticals/N
subsidiary/N
agreed/V
to/T
supply/V
collagen/N
corneal/J
shields/N
for/I
animal/N
eye/N
surgery/N
to/T
a/D
unit/N
of/I
International/N
Minerals/N
&/C
Chemical/N
Corp/N
./.
###/###
Terms/N
were/V
n't/R
disclosed/V
./.
###/###
The/D
agreement/N
marks/V
Bausch/N
&/C
Lomb/N
's/P
first/J
venture/N
selling/V
its/P
eye/N
care/N
products/N
for/I
use/N
by/I
veterinarians/N
./.
###/###
The/D
collagen/N
corneal/J
shield/N
helps/V
speed/V
healing/N
of/I
the/D
cornea/N
after/I
eye/N
surgery/N
./.
###/###
The/D
product/N
will/M
be/V
distributed/V
by/I
Pitman-Moore/N
Inc./N
,/,
a/D
subsidiary/N
of/I
International/N
Minerals/N
./.
###/###
France/N
's/P
industrial/J
production/N
index/N
for/I
July/N
and/C
August/N
rose/V
1/C
%/N
from/I
June/N
and/C
was/V
up/I
4.6/C
%/N
from/I
a/D
year/N
ago/I
,/,
according/V
to/T
seasonally/R
adjusted/V
data/N
from/I
the/D
National/N
Statistics/N
Institute/N
./.
###/###
The/D
state/N
agency/N
,/,
which/W
usually/R
publishes/V
the/D
data/N
on/I
monthly/J
basis/N
,/,
but/C
traditionally/R
combines/V
the/D
index/N
for/I
the/D
two/C
summer-holiday/J
months/N
,/,
said/V
the/D
advance/N
was/V
led/V
by/I
output/N
of/I
consumer/N
goods/N
,/,
which/W
rose/V
3.5/C
%/N
from/I
June/N
and/C
was/V
up/I
7.2/C
%/N
from/I
a/D
year/N
earlier/R
./.
###/###
Semifinished/V
goods/N
turned/V
in/I
a/D
strong/J
showing/N
,/,
with/I
a/D
monthly/J
rise/N
of/I
2/C
%/N
and/C
a/D
year-on-year/J
advance/N
of/I
3/C
%/N
./.
###/###
Food/N
production/N
was/V
ahead/R
1.7/C
%/N
from/I
June/N
and/C
5.3/C
%/N
from/I
a/D
year/N
earlier/R
./.
###/###
Output/N
in/I
the/D
capital-goods/N
sector/N
was/V
ahead/R
0.9/C
%/N
on/I
a/D
monthly/J
basis/N
and/C
2.7/C
%/N
year/N
on/I
year/N
./.
###/###
These/D
gains/N
were/V
partly/R
offset/V
by/I
output/N
of/I
cars/N
and/C
other/J
consumer/N
durables/N
,/,
which/W
eased/V
3.9/C
%/N
from/I
June/N
's/P
high/J
level/N
./.
###/###
The/D
sector/N
was/V
still/R
8.8/C
%/N
above/I
its/P
output/N
levels/N
from/I
a/D
year/N
earlier/R
,/,
however/R
./.
###/###
International/N
Minerals/N
&/C
Chemical/N
Corp./N
said/V
it/P
agreed/V
definitively/R
to/T
sell/V
its/P
international/J
fragrance/N
business/N
to/T
Bayer/N
AG/N
of/I
West/N
Germany/N
./.
###/###
Terms/N
were/V
n't/R
disclosed/V
./.
###/###
The/D
maker/N
of/I
animal/N
health/N
and/C
nutrition/N
products/N
said/V
the/D
business/N
,/,
Creations/N
Aromatiques/N
of/I
Port/N
Valais/N
,/,
Switzerland/N
,/,
and/C
Woodside/N
,/,
N.Y./N
,/,
is/V
a/D
division/N
of/I
its/P
Mallinckrodt/N
Inc./N
subsidiary/N
and/C
had/V
sales/N
of/I
about/I
$/$
30/C
million/C
for/I
its/P
most/J
recent/J
year/N
./.
###/###
International/N
Minerals/N
said/V
the/D
sale/N
will/M
allow/V
Mallinckrodt/N
to/T
focus/V
its/P
resources/N
on/I
its/P
core/N
businesses/N
of/I
medical/J
products/N
,/,
specialty/N
chemicals/N
and/C
flavors/N
./.
###/###
Consumers/N
Power/N
Co./N
filed/V
with/I
the/D
Michigan/N
Public/N
Service/N
Commission/N
a/D
contract/N
to/T
buy/V
power/N
from/I
the/D
Palisades/N
nuclear/J
plant/N
under/I
a/D
proposed/V
new/J
ownership/N
arrangement/N
for/I
the/D
plant/N
./.
###/###
Consumers/N
Power/N
and/C
Bechtel/N
Power/N
Corp./N
last/J
year/N
announced/V
a/D
joint/J
venture/N
to/T
buy/V
the/D
plant/N
,/,
currently/R
owned/V
completely/R
by/I
the/D
utility/N
./.
###/###
Two/C
Japanese/J
scientists/N
said/V
they/P
discovered/V
an/D
antibody/N
that/I
,/,
in/I
laboratory/N
test-tube/N
experiments/N
,/,
kills/V
AIDS-infected/J
cells/N
while/I
preserving/V
healthy/J
cells/N
./.
###/###
If/I
further/J
experiments/N
are/V
successful/J
,/,
the/D
work/N
would/M
represent/V
a/D
major/J
advance/N
in/I
research/N
on/I
acquired/V
immune/J
deficiency/N
syndrome/N
./.
###/###
The/D
drug/N
AZT/N
,/,
the/D
only/J
treatment/N
currently/R
on/I
the/D
market/N
,/,
claims/V
only/R
to/T
help/V
stop/V
the/D
spread/N
of/I
AIDS/N
,/,
not/R
to/T
cure/V
it/P
./.
###/###
But/C
several/J
analysts/N
and/C
Japanese/J
scientists/N
familiar/J
with/I
the/D
study/N
,/,
which/W
was/V
announced/V
at/I
a/D
conference/N
in/I
Nagoya/N
yesterday/N
,/,
expressed/V
skepticism/N
over/I
the/D
significance/N
of/I
the/D
results/N
./.
###/###
And/C
the/D
researchers/N
themselves/P
acknowledged/V
they/P
still/R
must/M
do/V
much/R
more/J
work/N
before/I
they/P
can/M
say/V
whether/I
the/D
treatment/N
would/M
actually/R
cure/V
humans/N
./.
###/###
Shin/N
Yonehara/N
,/,
a/D
research/N
scientist/N
at/I
the/D
Tokyo/N
Metropolitan/N
Institute/N
of/I
Medical/N
Science/N
,/,
said/V
the/D
antibody/N
he/P
discovered/V
works/V
by/I
recognizing/V
an/D
antigen/N
called/V
a/D
Fas-antigen/N
,/,
which/W
is/V
characteristic/J
of/I
an/D
infected/J
cell/N
./.
###/###
The/D
antibody/N
then/R
kills/V
the/D
cell/N
./.
###/###
Dr./N
Yonehara/N
and/C
his/P
partner/N
,/,
Nobuyuki/N
Kobayashi/N
of/I
Yamaguchi/N
University/N
,/,
said/V
their/P
experiments/N
showed/V
that/I
the/D
antibody/N
wiped/V
out/I
an/D
average/N
of/I
60/C
%/N
of/I
AIDS-infected/J
cells/N
within/I
three/C
days/N
./.
###/###
In/I
some/D
of/I
the/D
experiments/N
,/,
it/P
killed/V
almost/R
all/P
the/D
infected/J
cells/N
,/,
the/D
researchers/N
said/V
./.
###/###
Meanwhile/R
,/,
fewer/J
than/I
10/C
%/N
of/I
the/D
healthy/J
cells/N
were/V
killed/V
./.
###/###
The/D
two/C
said/V
they/P
must/M
still/R
do/V
more/J
laboratory/N
tests/N
,/,
then/R
experiment/N
on/I
animals/N
./.
###/###
They/P
said/V
they/P
hoped/V
to/T
conduct/V
tests/N
on/I
human/J
patients/N
in/I
the/D
U.S./N
by/I
late/J
next/J
year/N
./.
###/###
Japan/N
does/V
n't/R
have/V
enough/J
AIDS/N
patients/N
to/T
do/V
significant/J
experimentation/N
in/I
that/D
country/N
,/,
they/P
said/V
./.
###/###
The/D
announcement/N
got/V
wide/J
exposure/N
in/I
the/D
Japanese/J
media/N
,/,
and/C
even/R
moved/V
some/D
pharmaceutical/J
stocks/N
yesterday/N
./.
###/###
But/C
Takashi/N
Kitamura/N
,/,
director/N
of/I
the/D
biology/N
department/N
at/I
Japan/N
's/P
National/N
Institute/N
of/I
Health/N
and/C
secretary/N
of/I
the/D
government/N
's/P
AIDS-research/J
center/N
,/,
said/V
,/,
``/`
I/P
'm/V
not/R
so/R
optimistic/J
of/I
its/P
future/J
use/N
in/I
therapeutic/J
methods/N
./.
''/'
###/###
He/P
said/V
some/D
infected/J
cells/N
may/M
not/R
have/V
the/D
relevant/J
antigen/N
and/C
so/R
would/M
n't/R
be/V
killed/V
even/R
after/I
exposure/N
to/T
the/D
antibody/N
./.
###/###
``/`
The/D
results/N
seem/V
to/T
be/V
very/R
premature/J
,/,
''/'
said/V
Mitsuru/N
Miyata/N
,/,
editor/N
of/I
Nikkei/N
Biotechnology/N
,/,
a/D
leading/V
Japanese/J
industry/N
newsletter/N
./.
###/###
Dr./N
Kobayashi/N
responded/V
that/I
he/P
thought/V
the/D
antibody/N
could/M
potentially/R
kill/V
all/D
infected/J
cells/N
./.
###/###
But/C
he/P
and/C
Dr./N
Yonehara/N
said/V
there/E
were/V
still/R
several/J
uncertainties/N
,/,
particularly/R
regarding/V
possible/J
side/N
effects/N
./.
###/###
``/`
Our/P
antibody/N
specifically/R
killed/V
infected/J
cells/N
at/I
a/D
very/R
low/J
dose/N
,/,
but/C
it/P
can/M
also/R
kill/V
other/J
cells/N
,/,
''/'
said/V
Dr./N
Yonehara/N
./.
###/###
``/`
We/P
do/V
n't/R
know/V
the/D
effect/N
of/I
our/P
antibody/N
on/I
the/D
human/J
body/N
./.
''/'
###/###
AIDS/N
is/V
n't/R
considered/V
a/D
widespread/J
problem/N
in/I
Japan/N
--/:
the/D
government/N
reports/V
about/I
1,000/C
known/V
carriers/N
of/I
the/D
virus/N
--/:
but/C
many/J
companies/N
have/V
poured/V
substantial/J
resources/N
into/I
research/N
in/I
recent/J
years/N
,/,
hoping/V
to/T
cash/V
in/I
on/I
a/D
possible/J
cure/N
./.
###/###
Dr./N
Kitamura/N
said/V
about/I
35/C
projects/N
are/V
currently/R
under/I
way/N
in/I
Japan/N
,/,
and/C
that/I
Japanese/J
researchers/N
in/I
the/D
past/J
year/N
have/V
made/V
available/J
three/C
possible/J
cures/N
to/T
American/J
researchers/N
for/I
clinical/J
tests/N
./.
###/###
He/P
said/V
that/I
when/W
scientists/N
from/I
the/D
two/C
countries/N
meet/V
again/R
in/I
January/N
in/I
New/N
Orleans/N
,/,
the/D
Japanese/N
will/M
present/V
at/I
least/J
three/C
more/J
drugs/N
for/I
human/J
testing/N
./.
###/###
AZT/N
is/V
the/D
world/N
's/P
only/J
prescription/N
medicine/N
approved/V
for/I
treating/V
the/D
disease/N
./.
###/###
Wellcome/N
PLC/N
,/,
a/D
major/J
British/J
pharmaceutical/N
maker/N
,/,
sells/V
the/D
drug/N
under/I
the/D
name/N
Retrovir/N
./.
###/###
A/D
Wellcome/N
spokesman/N
declined/V
to/T
comment/V
on/I
the/D
discovery/N
of/I
the/D
antibody/N
in/I
Japan/N
./.
###/###
But/C
Andrew/N
Porter/N
,/,
a/D
drug-industry/N
analyst/N
at/I
Nikko/N
Securities/N
Co./N
in/I
London/N
,/,
said/V
if/I
the/D
product/N
were/V
to/T
be/V
successfully/R
developed/V
it/P
would/M
represent/V
``/`
a/D
potential/J
threat/N
to/T
the/D
long-term/J
viability/N
of/I
Retrovir/N
./.
###/###
The/D
following/V
issues/N
were/V
recently/R
filed/V
with/I
the/D
Securities/N
and/C
Exchange/N
Commission/N
:/:
###/###
American/N
Exploration/N
Co./N
,/,
offering/N
of/I
five/C
million/C
common/J
shares/N
,/,
via/I
Smith/N
Barney/N
,/,
Harris/N
Upham/N
&/C
Co./N
and/C
Shearson/N
Lehman/N
Hutton/N
Inc/N
./.
###/###
Chemical/N
Waste/N
Management/N
Inc./N
,/,
proposed/V
global/J
offering/N
of/I
8,500,000/C
shares/N
of/I
common/J
stock/N
,/,
of/I
which/W
seven/C
million/C
of/I
the/D
shares/N
will/M
be/V
offered/V
in/I
the/D
U.S./N
and/C
1,500,000/C
shares/N
will/M
be/V
offered/V
overseas/R
,/,
via/I
Merrill/N
Lynch/N
Capital/N
Markets/N
-LRB-/-
domestic/J
-RRB-/-
and/C
Kidder/N
,/,
Peabody/N
&/C
Co/N
./.
-LRB-/-
international/J
-RRB-/-
./.
###/###
Interlake/N
Corp./N
,/,
proposed/V
offering/N
of/I
$/$
200/C
million/C
of/I
senior/J
subordinated/V
debentures/N
,/,
via/I
Goldman/N
,/,
Sachs/N
&/C
Co/N
./.
###/###
InterMedia/N
Capital/N
Corp./N
,/,
Robin/N
Cable/N
Systems/N
L.P./N
and/C
Brenmor/N
Cable/N
Partners/N
,/,
offering/N
of/I
senior/J
subordinated/V
discount/N
reset/N
debentures/N
,/,
via/I
Drexel/N
Burnham/N
Lambert/N
Inc/N
./.
###/###
John/N
Nuveen/N
&/C
Co./N
,/,
initial/J
offerings/N
of/I
the/D
Nuveen/N
California/N
Performance/N
Plus/N
Municipal/N
Fund/N
Inc./N
and/C
the/D
Nuveen/N
New/N
York/N
Performance/N
Plus/N
Municipal/N
Fund/N
Inc./N
,/,
via/I
Alex/N
./.
Brown/N
&/C
Sons/N
Inc/N
./.
###/###
KnowledgeWare/N
Inc./N
,/,
initial/J
offering/N
of/I
three/C
million/C
shares/N
of/I
its/P
common/J
stock/N
,/,
of/I
which/W
1,657,736/C
shares/N
will/M
be/V
sold/V
by/I
the/D
company/N
and/C
1,342,264/C
will/M
be/V
sold/V
by/I
holders/N
,/,
via/I
Montgomery/N
Securities/N
and/C
Donaldson/N
,/,
Lufkin/N
&/C
Jenrette/N
Securities/N
Corp/N
./.
###/###
MGM/N
Grand/N
Inc./N
,/,
proposed/V
offering/N
of/I
six/C
million/C
shares/N
of/I
common/J
stock/N
,/,
via/I
Merrill/N
Lynch/N
./.
###/###
Microlog/N
Corp./N
,/,
formerly/R
called/V
Old/N
Dominion/N
Systems/N
Inc./N
,/,
offering/N
of/I
1.2/C
million/C
common/J
shares/N
,/,
of/I
which/W
one/C
million/C
will/M
be/V
sold/V
by/I
the/D
company/N
,/,
and/C
the/D
balance/N
by/I
holders/N
,/,
via/I
Hambrecht/N
&/C
Quist/N
and/C
Johnston/N
,/,
Lemon/N
&/C
Co/N
./.
###/###
Scott/N
Paper/N
Co./N
,/,
shelf/N
offering/N
of/I
up/I
to/T
$/$
360/C
million/C
of/I
debt/N
securities/N
,/,
via/I
Goldman/N
Sachs/N
,/,
Salomon/N
Brothers/N
Inc./N
and/C
Smith/N
Barney/N
,/,
Harris/N
Upham/N
./.
###/###
Sullivan/N
Graphics/N
Inc./N
,/,
offering/N
of/I
$/$
110/C
million/C
of/I
senior/J
subordinated/V
notes/N
,/,
via/I
Merrill/N
Lynch/N
./.
###/###
Sun/N
Sportswear/N
Inc./N
,/,
initial/J
offering/N
of/I
1.7/C
million/C
common/J
shares/N
,/,
of/I
which/W
one/C
million/C
shares/N
will/M
be/V
sold/V
by/I
the/D
company/N
,/,
and/C
the/D
balance/N
by/I
a/D
holder/N
,/,
via/I
Salomon/N
Brothers/N
Inc./N
and/C
Piper/N
,/,
Jaffray/N
&/C
Hopwood/N
Inc/N
./.
###/###
Yes/N
Clothing/N
Co./N
,/,
proposed/V
initial/J
offering/N
of/I
776,470/C
common/J
shares/N
,/,
of/I
which/W
600,000/C
shares/N
will/M
be/V
offered/V
by/I
the/D
company/N
and/C
176,470/C
by/I
holders/N
,/,
via/I
Seidler/N
Amdec/N
Securities/N
Inc/N
./.
###/###
A/D
#/#
320/C
million/C
-LRB-/-
$/$
508/C
million/C
-RRB-/-
British/N
Airways/N
PLC/N
rights/N
issue/N
flopped/V
badly/R
--/:
the/D
victim/N
of/I
recent/J
market/N
turbulence/N
and/C
the/D
collapse/N
of/I
the/D
buy-out/N
bid/N
for/I
United/N
Airlines/N
'/P
parent/N
,/,
UAL/N
Corp/N
./.
###/###
The/D
United/N
Kingdom/N
carrier/N
had/V
planned/V
the/D
issue/N
to/T
help/V
finance/V
its/P
$/$
750/C
million/C
purchase/N
of/I
a/D
15/C
%/N
stake/N
in/I
UAL/N
./.
###/###
But/C
British/N
Airways/N
withdrew/V
from/I
the/D
UAL/N
labor-management/N
buy-out/J
plan/N
last/J
Friday/N
,/,
after/I
the/D
group/N
failed/V
to/T
get/V
bank/N
financing/N
for/I
its/P
$/$
6.79/C
billion/C
buy-out/N
./.
###/###
British/N
Airways/N
said/V
its/P
shareholders/N
accepted/V
only/R
6.3/C
%/N
of/I
the/D
convertible/J
capital/N
bonds/N
,/,
but/C
that/I
the/D
rest/N
of/I
the/D
issue/N
will/M
be/V
taken/V
up/I
by/I
underwriters/N
./.
###/###
Analysts/N
said/V
that/I
6.3/C
%/N
level/N
marked/V
the/D
poorest/J
showing/N
for/I
any/D
major/J
British/J
rights/N
issue/N
since/I
the/D
1987/C
global/J
stock/N
market/N
crash/N
./.
###/###
``/`
It/P
is/V
close/J
to/T
being/V
a/D
record/N
undersubscription/N
,/,
''/'
said/V
Bob/N
Bucknell/N
,/,
an/D
analyst/N
with/I
London/N
broker/N
Smith/N
New/N
Court/N
Securities/N
./.
###/###
``/`
Fund/N
managers/N
do/V
n't/R
like/V
to/T
have/V
rights/N
issues/N
that/W
do/V
n't/R
have/V
an/D
obvious/J
reason/N
./.
###/###
The/D
obvious/J
reason/N
was/V
-LRB-/-
for/I
British/N
Air/N
-RRB-/-
to/T
buy/V
a/D
stake/N
in/I
United/N
Airlines/N
./.
''/'
###/###
In/I
a/D
statement/N
,/,
British/N
Air/N
Chairman/N
Lord/N
King/N
said/V
the/D
company/N
was/V
``/`
obviously/R
disappointed/V
that/I
the/D
issue/N
was/V
not/R
taken/V
up/I
,/,
but/C
it/P
would/M
have/V
been/V
unreasonable/J
to/T
expect/V
a/D
better/J
result/N
given/V
the/D
volatility/N
of/I
the/D
stock/N
market/N
since/I
the/D
launch/N
of/I
the/D
issue/N
./.
''/'
###/###
But/C
except/I
for/I
the/D
embarrassment/N
,/,
British/N
Air/N
will/M
emerge/V
relatively/R
unscathed/J
from/I
the/D
flopped/V
issue/N
./.
###/###
Underwriters/N
led/V
by/I
Lazard/N
Brothers/N
&/C
Co./N
will/M
pick/V
up/I
the/D
rest/N
of/I
the/D
airline/N
's/P
offer/N
of/I
four/C
convertible/J
capital/N
bonds/N
for/I
every/D
nine/C
common/J
shares/N
./.
###/###
Lazard/N
and/C
other/J
primary/J
underwriters/N
have/V
reduced/V
or/C
eliminated/V
their/P
exposure/N
by/I
sub-underwriting/V
the/D
issue/N
among/I
U.K./N
institutional/J
investors/N
./.
###/###
``/`
The/D
-LRB-/-
paper/N
-RRB-/-
loss/N
here/R
is/V
very/R
small/J
''/'
for/I
these/D
sub-underwriters/N
,/,
observed/V
John/N
Nelson/N
,/,
a/D
Lazard/N
managing/V
director/N
./.
###/###
In/I
any/D
case/N
,/,
he/P
added/V
,/,
``/`
most/J
institutions/N
probably/R
wo/M
n't/R
sell/V
''/'
the/D
bonds/N
./.
###/###
And/C
instead/R
of/I
buying/V
the/D
UAL/N
stake/N
,/,
the/D
U.K./N
carrier/N
will/M
be/V
able/J
to/T
reduce/V
its/P
high/J
debt/N
level/N
and/C
build/V
an/D
acquisition/N
war/N
chest/N
./.
###/###
``/`
From/I
a/D
cash/N
flow/N
point/N
of/I
view/N
,/,
British/N
Airways/N
is/V
better/J
off/I
not/R
being/V
in/I
United/N
Airlines/N
in/I
the/D
short/J
term/N
,/,
''/'
said/V
Andy/N
Chambers/N
,/,
an/D
analyst/N
at/I
Nomura/N
Research/N
Institute/N
in/I
London/N
./.
###/###
Added/V
another/D
U.K./N
analyst/N
:/:
``/`
It/P
gives/V
them/P
some/D
cash/N
in/I
the/D
back/N
pocket/N
for/I
when/W
they/P
want/V
to/T
do/V
something/N
./.
''/'
###/###
For/I
instance/N
,/,
British/N
Air/N
is/V
continuing/V
to/T
negotiate/V
with/I
KLM/N
Royal/N
Dutch/N
Airlines/N
about/I
each/D
acquiring/V
a/D
20/C
%/N
stake/N
in/I
Sabena/N
World/N
Airlines/N
,/,
the/D
air/N
transport/N
subsidiary/N
of/I
the/D
Belgian/J
national/J
airline/N
./.
###/###
A/D
definitive/J
agreement/N
had/V
been/V
expected/V
by/I
the/D
end/N
of/I
July/N
./.
###/###
The/D
failed/V
rights/N
issue/N
also/R
should/M
have/V
a/D
modest/J
impact/N
on/I
British/N
Air/N
shares/N
./.
###/###
The/D
airline/N
's/P
share/N
price/N
already/R
is/V
far/R
below/I
the/D
210/C
pence/N
-LRB-/-
$/$
3.33/C
-RRB-/-
level/N
seen/V
after/I
the/D
company/N
announced/V
the/D
rights/N
issue/N
in/I
late/J
September/N
./.
###/###
In/I
late/R
trading/N
on/I
London/N
's/P
Stock/N
Exchange/N
yesterday/N
,/,
the/D
shares/N
were/V
off/I
three/C
pence/N
at/I
194/C
pence/N
./.
###/###
And/C
because/I
British/N
Air/N
is/V
issuing/V
convertible/J
bonds/N
rather/R
than/I
ordinary/J
shares/N
,/,
the/D
share/N
price/N
wo/M
n't/R
be/V
directly/R
hurt/V
by/I
any/D
surplus/N
left/V
with/I
underwriters/N
after/I
they/P
try/V
to/T
sell/V
the/D
issue/N
in/I
the/D
open/J
market/N
./.
###/###
But/C
British/N
Air/N
's/P
withdrawal/N
from/I
the/D
UAL/N
buy-out/N
could/M
have/V
further/J
repercussions/N
./.
###/###
Some/D
analysts/N
speculated/V
yesterday/N
that/I
the/D
move/N
has/V
set/V
off/I
a/D
board/N
room/N
split/N
,/,
which/W
may/M
lead/V
to/T
the/D
resignation/N
of/I
Sir/N
Colin/N
Marshall/N
,/,
the/D
carrier/N
's/P
chief/N
executive/N
officer/N
./.
###/###
``/`
The/D
stories/N
are/V
rubbish/J
,/,
''/'
a/D
British/N
Air/N
spokesman/N
said/V
./.
###/###
``/`
There/E
is/V
no/D
difference/N
of/I
opinion/N
between/I
-LRB-/-
Chairman/N
-RRB-/-
Lord/N
King/N
and/C
Sir/N
Colin/N
on/I
any/D
aspect/N
of/I
company/N
policy/N
./.
###/###
MINORITY/N
RECRUITING/N
has/V
yet/R
to/T
meet/V
hopes/N
raised/V
by/I
Bush/N
administration/N
./.
###/###
Six/C
months/N
ago/I
,/,
as/I
some/D
personnel/N
specialists/N
saw/V
it/P
,/,
a/D
perception/N
that/I
President/N
Bush/N
really/R
cared/V
about/I
fair/J
employment/N
--/:
after/I
what/W
they/P
said/V
was/V
eight/C
years/N
of/I
Reagan-era/N
neglect/N
--/:
was/V
prodding/V
top/J
management/N
to/T
raise/V
hiring/V
goals/N
for/I
females/N
,/,
blacks/N
and/C
other/J
minorities/N
./.
###/###
The/D
perception/N
lingers/V
,/,
says/V
an/D
official/N
at/I
a/D
major/J
industrial/J
company/N
./.
###/###
But/C
so/R
far/R
,/,
he/P
declares/V
,/,
there/E
's/V
little/J
evidence/N
the/D
``/`
new/J
urgency/N
''/'
is/V
trickling/V
down/I
to/T
the/D
managers/N
who/W
actually/R
do/V
hiring/N
./.
###/###
``/`
Is/V
there/E
really/R
a/D
commitment/N
or/C
an/D
illusion/N
of/I
activity/N
?/.
''/'
he/P
asks/V
./.
###/###
The/D
recruiting/N
``/`
has/V
n't/R
materialized/V
,/,
''/'
asserts/V
Jeffrey/N
Christian/N
,/,
who/W
runs/V
a/D
search/N
agency/N
./.
###/###
Samuel/N
Hall/N
,/,
Howard/N
University/N
's/P
placement/N
director/N
,/,
also/R
does/V
n't/R
see/V
it/P
./.
###/###
And/C
he/P
questions/V
the/D
White/N
House/N
dedication/N
./.
###/###
``/`
I/P
do/V
n't/R
think/V
the/D
Bush/N
administration/N
has/V
done/V
anything/N
,/,
''/'
he/P
says/V
./.
###/###
Recruiter/N
Donald/N
Clark/N
does/V
note/V
an/D
increase/N
in/I
searches/N
for/I
minority/N
candidates/N
./.
###/###
But/C
some/D
of/I
the/D
activity/N
,/,
he/P
says/V
,/,
may/M
reflect/V
a/D
rush/N
to/T
get/V
``/`
numbers/N
in/I
order/N
''/'
for/I
end-of-year/J
reports/N
./.
###/###
PAY/N
FOR/I
PERFORMANCE/N
hangs/V
mostly/R
on/I
boss/N
's/P
subjective/J
view/N
./.
###/###
Du/N
Pont/N
Co./N
in/I
a/D
couple/N
of/I
units/N
has/V
installed/V
objective/J
tests/N
based/V
on/I
earnings/N
or/C
return/N
on/I
equity/N
./.
###/###
Many/J
companies/N
have/V
set/V
up/I
machinery/N
to/T
assure/V
workers/N
a/D
fair/J
shake/N
./.
###/###
At/I
most/J
firms/N
,/,
though/R
,/,
it/P
's/V
the/D
immediate/J
supervisor/N
who/W
decides/V
the/D
merit/N
increases/V
subordinates/N
will/M
be/V
paid/V
./.
###/###
Managers/N
have/V
``/`
some/D
very/R
broad/J
discretion/N
,/,
''/'
says/V
an/D
official/N
at/I
Walt/N
Disney/N
Co/N
./.
###/###
Unocal/N
Corp./N
's/P
top/J
management/N
sets/V
guidelines/N
,/,
but/C
line/N
supervisors/N
slice/V
up/I
the/D
merit/N
pie/N
./.
###/###
Lotus/N
Development/N
Corp./N
feeds/V
its/P
evaluations/N
into/I
a/D
computer/N
,/,
but/C
only/R
for/I
storage/N
;/:
the/D
decisions/N
are/V
made/V
by/I
supervisors/N
./.
###/###
Hershey/N
Foods/N
Corp./N
strives/V
for/I
fairness/N
by/I
basing/V
increases/N
on/I
quarterly/J
reviews/N
,/,
annual/J
appraisals/N
and/C
meetings/N
with/I
workers/N
./.
###/###
At/I
Chemfix/N
Technology/N
Inc./N
,/,
each/D
supervisor/N
's/P
recommendation/N
must/M
be/V
approved/V
by/I
the/D
next/J
boss/N
up/I
the/D
line/N
,/,
and/C
then/R
sanctioned/V
by/I
a/D
salary/N
review/N
committee/N
./.
###/###
JAPANESE/J
COMPANIES/N
fare/V
best/R
in/I
U.S./N
when/W
they/P
give/V
Americans/N
more/J
say/N
./.
###/###
University/N
of/I
Michigan/N
researchers/N
find/V
the/D
companies/N
earn/V
more/R
and/C
win/V
a/D
bigger/J
market/N
share/N
when/W
their/P
American/J
employees/N
get/V
a/D
voice/N
in/I
planning/N
,/,
product/N
development/N
and/C
design/N
,/,
including/V
decision-making/J
back/N
in/I
Japan/N
./.
###/###
``/`
You/P
ca/M
n't/R
hire/V
competent/J
Americans/N
and/C
say/V
,/,
`/`
Let/V
them/P
run/V
only/R
their/P
own/J
show/N
,/,
'/'
''/'
says/V
Vladimir/N
Pucik/N
,/,
who/W
headed/V
the/D
study/N
run/V
with/I
Egon/N
Zehnder/N
International/N
,/,
a/D
search/N
firm/N
./.
###/###
The/D
researchers/N
say/V
many/J
Japanese/J
companies/N
err/V
in/I
the/D
U.S./N
by/I
adopting/V
the/D
American/J
practice/N
of/I
hiring/V
managers/N
on/I
the/D
``/`
open/J
market/N
./.
''/'
###/###
In/I
Japan/N
,/,
by/I
contrast/N
,/,
companies/N
tend/V
to/T
develop/V
their/P
own/J
talent/N
and/C
promote/V
from/I
within/I
./.
###/###
The/D
Japanese/N
also/R
are/V
accused/V
of/I
keeping/V
their/P
cards/N
too/R
close/R
to/T
their/P
vests/N
./.
###/###
``/`
Some/D
Japanese/J
executives/N
are/V
not/R
yet.../:
comfortable/J
about/I
sharing/V
strategic/J
information/N
with/I
their/P
American/J
colleagues/N
,/,
''/'
the/D
researchers/N
say/V
./.
###/###
Americans/N
stay/V
longer/R
with/I
Japanese/J
firms/N
than/I
American/J
companies/N
./.
###/###
But/C
they/P
think/V
promotions/N
are/V
limited/V
./.
###/###
THE/D
HOUSE/N
votes/V
down/I
a/D
proposal/N
to/T
put/V
pension/N
plans/N
under/I
the/D
control/N
of/I
joint/J
labor-management/N
boards/N
./.
###/###
Some/D
consultants/N
had/V
insisted/V
it/P
would/M
n't/R
work/V
./.
###/###
LONG-TERM/J
care/N
insurance/N
gains/V
favor/N
./.
###/###
More/R
than/I
half/P
the/D
people/N
surveyed/V
for/I
the/D
Employee/N
Benefit/N
Research/N
Institute/N
say/V
they/P
would/M
be/V
willing/J
and/C
able/J
to/T
pick/V
up/I
most/J
of/I
the/D
cost/N
of/I
the/D
coverage/N
./.
###/###
FRINGE-BENEFIT/J
spending/N
by/I
small/J
and/C
medium-sized/J
employers/N
has/V
dropped/V
to/T
25/C
%/N
of/I
payroll/N
from/I
29/C
%/N
three/C
years/N
ago/I
,/,
says/V
the/D
National/N
Institute/N
of/I
Business/N
Management/N
,/,
an/D
advisory/J
service/N
./.
###/###
OUSTED/V
EXECUTIVES/N
over/I
50/C
years/N
old/J
take/V
slightly/R
less/J
time/N
than/I
their/P
younger/J
colleagues/N
to/T
find/V
a/D
job/N
--/:
3.23/C
months/N
vs./C
3.26/C
for/I
the/D
juniors/N
--/:
outplacement/N
firm/N
Challenger/N
,/,
Gray/N
&/C
Christmas/N
finds/V
./.
###/###
It/P
's/V
the/D
first/J
time/N
in/I
the/D
survey/N
's/P
15/C
years/N
that/I
the/D
over-50/J
group/N
came/V
out/I
ahead/R
./.
###/###
FEAR/N
OF/I
AIDS/N
hinders/V
hiring/V
at/I
few/J
hospitals/N
./.
###/###
Dedication/N
runs/V
high/J
./.
###/###
Wafaa/N
El-Sadr/N
,/,
who/W
heads/V
the/D
AIDS/N
program/N
at/I
New/N
York/N
City/N
's/P
Harlem/N
Hospital/N
Center/N
,/,
ca/M
n't/R
find/V
help/N
./.
###/###
``/`
I/P
've/V
been/V
recruiting/V
every/D
single/J
day/N
since/I
it/P
's/V
been/V
identified/V
that/I
many/J
AIDS/N
patients/N
come/V
from/I
the/D
inner/J
city/N
,/,
''/'
she/P
says/V
./.
###/###
She/P
was/V
the/D
only/J
staff/N
physician/N
available/J
to/T
treat/V
AIDS/N
patients/N
last/J
summer/N
and/C
now/R
she/P
has/V
the/D
help/N
of/I
only/R
two/C
doctors/N
part/N
time/N
./.
###/###
Part/N
of/I
the/D
problem/N
,/,
though/R
,/,
may/M
reflect/V
a/D
general/J
unwillingness/N
to/T
work/V
with/I
the/D
urban/J
poor/N
./.
###/###
Parkland/N
Memorial/N
Hospital/N
in/I
Dallas/N
says/V
it/P
has/V
n't/R
had/V
any/D
problem/N
recruiting/V
,/,
even/R
after/I
a/D
nurse/N
contracted/V
the/D
virus/N
while/I
injecting/V
an/D
AIDS/N
patient/N
./.
###/###
``/`
I/P
can/M
tell/V
you/P
that/I
nobody/N
quit/V
over/I
it/P
./.
###/###
No/D
one/N
panicked/V
,/,
''/'
a/D
spokeswoman/N
says/V
./.
###/###
St./N
Paul/N
Medical/N
Center/N
,/,
also/R
in/I
Dallas/N
,/,
sees/V
only/R
a/D
``/`
minimal/J
erosion/N
''/'
of/I
support/N
staff/N
due/J
to/T
AIDS/N
./.
###/###
Yale-New/N
Haven/N
Hospital/N
sees/V
no/D
problem/N
,/,
says/V
John/N
Fenn/N
,/,
the/D
chief/N
of/I
staff/N
./.
###/###
``/`
There/E
are/V
enough/R
enlightened/V
and/C
spirited/V
individuals/N
who/W
know/V
their/P
responsibilities/N
,/,
''/'
he/P
says/V
./.
###/###
THE/D
CHECKOFF/N
:/:
At/I
least/J
somebody/N
gains/V
on/I
layoffs/N
./.
###/###
The/D
Association/N
of/I
Outplacement/N
Consulting/N
Firms/N
says/V
the/D
industry/N
's/P
volume/N
has/V
soared/V
tenfold/R
since/I
1980/C
,/,
to/T
$/$
350/C
million/C
a/D
year/N
./.
###/###
And/C
somebody/N
loses/V
on/I
the/D
expected/V
repeal/N
of/I
Section/N
89/C
,/,
the/D
benefits/N
test/N
fought/V
by/I
most/J
employers/N
./.
###/###
Triad/N
Solutions/N
says/V
software/N
producers/N
had/V
each/D
invested/V
hundreds/N
of/I
thousands/N
of/I
dollars/N
in/I
programs/N
that/W
now/R
have/V
no/D
use/N
./.
###/###
Big/J
gains/N
for/I
the/D
ultra-right/J
Republicans/N
party/N
in/I
Baden-Wuerttemburg/N
state/N
municipal/J
elections/N
Sunday/N
showed/V
eroding/V
support/N
for/I
Chancellor/N
Helmut/N
Kohl/N
in/I
a/D
traditional/J
bastion/N
for/I
his/P
Christian/N
Democratic/N
Union/N
./.
###/###
With/I
ballots/N
from/I
most/J
of/I
the/D
state/N
's/P
major/J
cities/N
in/I
by/I
yesterday/N
morning/N
,/,
the/D
Republicans/N
came/V
away/R
with/I
10/C
%/N
of/I
the/D
vote/N
in/I
several/J
of/I
the/D
key/J
districts/N
./.
###/###
With/I
many/J
rural/J
districts/N
yet/R
to/T
report/V
ballots/N
,/,
election/N
officials/N
estimate/V
support/N
for/I
Christian/N
Democrats/N
fell/V
an/D
average/J
five/C
percentage/N
points/N
statewide/R
./.
###/###
The/D
left-of-center/J
Social/N
Democrats/N
and/C
the/D
environmental/J
Greens/N
party/N
posted/V
mixed/V
results/N
./.
###/###
Headed/V
by/I
a/D
former/J
Waffen/N
SS/N
sergeant/N
and/C
working/V
from/I
a/D
nationalistic/J
platform/N
of/I
anti-foreigner/N
rhetoric/N
,/,
the/D
fledgling/N
Republicans/N
party/N
has/V
scored/V
surprising/J
gains/N
in/I
earlier/J
elections/N
in/I
the/D
states/N
of/I
West/N
Berlin/N
,/,
Hesse/N
and/C
North-Rhine/N
Westphalia/N
./.
###/###
With/I
West/N
German/N
unemployment/N
remaining/V
high/J
at/I
two/C
million/C
jobless/J
and/C
the/D
lack/N
of/I
affordable/J
housing/N
becoming/V
a/D
primary/J
issue/N
for/I
next/J
year/N
's/P
campaign/N
,/,
the/D
Republicans/N
are/V
seen/V
drawing/V
support/N
for/I
their/P
``/`
Germans/N
First/J
''/'
stand/N
on/I
social-welfare/J
issues/N
./.
###/###
Election/N
analysts/N
acknowledge/V
that/I
a/D
``/`
Red-Green/N
''/'
coalition/N
of/I
Social/N
Democrats/N
and/C
Greens/N
could/M
edge/V
out/I
Chancellor/N
Kohl/N
's/P
coalition/N
in/I
the/D
December/N
1990/C
national/J
election/N
if/I
support/N
for/I
the/D
Republicans/N
continues/V
to/T
spread/V
./.
###/###
International/J
investigators/N
urged/V
Britain/N
to/T
allow/V
prosecution/N
of/I
suspected/V
Nazi/N
war/N
criminals/N
who/W
took/V
refuge/N
there/R
after/I
1945/C
./.
###/###
Under/I
current/J
law/N
,/,
such/J
suspects/N
are/V
immune/J
from/I
prosecution/N
for/I
acts/N
committed/V
while/I
not/R
British/J
citizens/N
./.
###/###
``/`
If/I
we/P
're/V
not/R
careful/J
we/P
could/M
become/V
known/V
as/I
a/D
haven/N
for/I
war/N
criminals/N
,/,
''/'
said/V
Jeff/N
Rooker/N
,/,
a/D
member/N
of/I
Parliament/N
and/C
one/C
of/I
several/J
British/J
politicians/N
attending/V
a/D
London/N
conference/N
with/I
government/N
investigators/N
from/I
the/D
U.S./N
,/,
Canada/N
and/C
Australia/N
./.
###/###
A/D
parliamentary/J
inquiry/N
found/V
in/I
July/N
that/I
more/J
than/I
70/C
people/N
living/V
in/I
Britain/N
could/M
have/V
been/V
part/N
of/I
death/N
squads/N
that/W
roamed/V
Nazi-occupied/J
Eastern/N
Europe/N
./.
###/###
Parliament/N
is/V
expected/V
to/T
discuss/V
next/J
month/N
whether/I
to/T
change/V
the/D
law/N
./.
###/###
British/J
investigations/N
were/V
prompted/V
by/I
a/D
list/N
of/I
17/C
alleged/V
war/N
criminals/N
living/V
in/I
Britain/N
sent/V
to/T
Prime/N
Minister/N
Margaret/N
Thatcher/N
in/I
October/N
1986/C
by/I
the/D
Simon/N
Wiesenthal/N
Center/N
in/I
Los/N
Angeles/N
./.
###/###
In/I
a/D
sign/N
of/I
easing/V
tension/N
between/I
Beijing/N
and/C
Hong/N
Kong/N
,/,
China/N
said/V
it/P
will/M
again/R
take/V
back/R
illegal/J
immigrants/N
caught/V
crossing/V
into/I
the/D
British/J
colony/N
./.
###/###
China/N
had/V
refused/V
to/T
repatriate/V
citizens/N
who/W
sneaked/V
into/I
Hong/N
Kong/N
illegally/R
since/I
early/R
this/D
month/N
,/,
when/W
the/D
colony/N
allowed/V
a/D
dissident/J
Chinese/J
swimmer/N
to/T
flee/V
to/T
the/D
U.S/N
./.
###/###
About/I
1,100/C
Chinese/N
were/V
awaiting/V
repatriation/N
yesterday/N
./.
###/###
Italy/N
's/P
Foreign/N
Ministry/N
said/V
it/P
is/V
investigating/V
exports/N
to/T
the/D
Soviet/N
Union/N
by/I
an/D
Ing/N
./.
C./N
Olivetti/N
&/C
Co./N
subsidiary/N
called/V
OCN-PPL/N
that/W
makes/V
numerically/R
controlled/V
machine/N
tools/N
./.
###/###
Although/I
Italy/N
's/P
investigation/N
of/I
whether/I
Olivetti/N
had/V
violated/V
Western/J
export-control/J
rules/N
had/V
previously/R
been/V
made/V
known/V
,/,
this/D
marked/V
the/D
first/J
time/N
the/D
unit/N
and/C
product/N
were/V
named/V
./.
###/###
The/D
U.S./N
is/V
worried/V
about/I
the/D
convertibility/N
of/I
Olivetti/N
's/P
machine/N
tools/N
to/T
military/J
use/N
./.
###/###
However/R
,/,
an/D
Olivetti/N
spokeswoman/N
said/V
OCN-PPL/N
,/,
of/I
which/W
Olivetti/N
sold/V
the/D
majority/N
interest/N
last/J
year/N
,/,
``/`
does/V
n't/R
make/V
equipment/N
that/W
has/V
the/D
type/N
of/I
precision/N
necessary/J
for/I
sophisticated/J
productions/N
./.
''/'
###/###
Conservationists/N
say/V
that/I
drift-net/N
fishing/N
threatens/V
to/T
wipe/V
out/I
much/R
of/I
the/D
world/N
's/P
tuna/N
stocks/N
in/I
a/D
few/J
years/N
./.
###/###
But/C
the/D
Japanese/N
Fisheries/N
Association/N
criticized/V
moves/N
to/T
ban/V
the/D
practice/N
in/I
international/J
waters/N
./.
###/###
``/`
It/P
is/V
really/R
unfortunate/J
for/I
human/J
beings/N
to/T
be/V
swayed/V
by/I
emotional/J
discussions/N
,/,
''/'
the/D
association/N
said/V
./.
###/###
In/I
driftnet/N
,/,
or/C
``/`
wall/N
of/I
death/N
,/,
''/'
fishing/N
,/,
fleets/N
lay/V
nets/N
up/I
to/T
three/C
miles/N
long/R
that/D
trap/N
almost/R
everything/N
in/I
their/P
path/N
./.
###/###
Earlier/R
this/D
year/N
,/,
Japan/N
said/V
it/P
would/M
cut/V
the/D
number/N
of/I
its/P
drift-net/N
vessels/N
in/I
the/D
South/N
Pacific/N
by/I
two-thirds/N
,/,
or/C
down/I
to/T
20/C
./.
###/###
Workers/N
at/I
Peugeot/N
S.A./N
's/P
car/N
plant/N
at/I
Sochaux/N
,/,
in/I
eastern/J
France/N
,/,
voted/V
to/T
end/V
a/D
six-week-old/J
strike/N
that/W
has/V
cost/V
the/D
Peugeot/N
group/N
production/N
of/I
60,000/C
automobiles/N
,/,
a/D
company/N
spokesman/N
said/V
./.
###/###
The/D
strikers/N
voted/V
to/T
accept/V
a/D
series/N
of/I
management/N
proposals/N
that/W
will/M
give/V
them/P
a/D
higher/J
basic/J
wage/N
,/,
better/J
profit-sharing/J
benefits/N
and/C
bigger/J
annual/J
bonuses/N
./.
###/###
The/D
spokesman/N
said/V
the/D
vote/N
at/I
Sochaux/N
is/V
expected/V
to/T
be/V
followed/V
by/I
a/D
similar/J
move/N
at/I
the/D
company/N
's/P
assembly/N
plant/N
at/I
Mulhouse/N
,/,
where/W
the/D
number/N
of/I
strikers/N
has/V
been/V
whittled/V
down/I
to/T
80/C
./.
###/###
About/I
8,000/C
National/N
Union/N
of/I
Mineworkers/N
members/N
resumed/V
their/P
strike/N
against/I
De/N
Beers/N
Consolidated/N
Mines/N
Ltd./N
after/I
further/J
negotiations/N
to/T
settle/V
a/D
wage/N
dispute/N
broke/V
down/I
./.
###/###
Striking/V
workers/N
,/,
who/W
began/V
striking/V
five/C
diamond/N
mines/N
on/I
Oct./N
13/C
,/,
had/V
returned/V
to/T
work/V
last/J
week/N
when/W
the/D
union/N
and/C
De/N
Beers/N
arranged/V
to/T
reopen/V
negotiations/N
./.
###/###
A/D
De/N
Beers/N
spokesman/N
said/V
yesterday/N
the/D
company/N
had/V
offered/V
to/T
increase/V
the/D
minimum/J
wage/N
by/I
18/C
%/N
,/,
while/I
the/D
union/N
was/V
demanding/V
26.6/C
%/N
./.
###/###
Before/I
the/D
two/C
parties/N
resumed/V
talks/N
last/J
week/N
,/,
De/N
Beers/N
offered/V
17/C
%/N
and/C
the/D
union/N
wanted/V
37.6/C
%/N
./.
###/###
China/N
's/P
People/N
's/P
Daily/N
took/V
note/N
of/I
the/D
growing/V
problem/N
of/I
computer/N
fraud/N
./.
###/###
Since/I
the/D
first/J
fraud/N
was/V
discovered/V
in/I
July/N
1986/C
at/I
an/D
office/N
of/I
the/D
People/N
's/P
Bank/N
of/I
China/N
in/I
Shenzhen/N
,/,
15/C
major/J
cases/N
have/V
been/V
found/V
,/,
the/D
paper/N
said/V
;/:
the/D
biggest/J
was/V
the/D
theft/N
of/I
$/$
235,000/C
from/I
a/D
bank/N
in/I
Chengdu/N
in/I
March/N
1988/C
./.
###/###
The/D
number/N
of/I
computers/N
has/V
mushroomed/V
in/I
recent/J
years/N
,/,
with/I
10,000/C
in/I
use/N
,/,
as/R
well/R
as/I
30,000/C
miniature/J
models/N
./.
###/###
But/C
security/N
systems/N
,/,
effective/J
management/N
controls/N
and/C
regulations/N
to/T
govern/V
their/P
use/N
have/V
not/R
kept/V
pace/N
,/,
the/D
People/N
's/P
Daily/N
said/V
./.
###/###
Besides/I
money/N
,/,
criminals/N
have/V
also/R
used/V
computers/N
to/T
steal/V
secrets/N
and/C
intelligence/N
,/,
the/D
newspaper/N
said/V
,/,
but/C
it/P
gave/V
no/D
more/J
details/N
./.
###/###
Japanese/J
tourists/N
will/M
be/V
told/V
to/T
take/V
care/N
when/W
photographing/V
earthquake/N
damage/N
in/I
San/N
Francisco/N
,/,
the/D
Japan/N
Association/N
of/I
Travel/N
Agents/N
said/V
./.
###/###
The/D
association/N
issued/V
an/D
advisory/N
to/T
its/P
1,685/C
member/N
agencies/N
following/V
a/D
report/N
from/I
the/D
Foreign/N
Ministry/N
that/I
picture-taking/N
by/I
Japanese/J
tourists/N
in/I
earthquake-stricken/J
areas/N
was/V
causing/V
ill/J
feeling/N
among/I
local/J
residents/N
./.
###/###
Tass/N
said/V
Lenin/N
's/P
tomb/N
in/I
Red/N
Square/N
will/M
be/V
closed/V
from/I
Nov./N
10/C
to/T
Jan./N
15/C
for/I
essential/J
maintenance/N
./.
###/###
The/D
red/J
granite/N
mausoleum/N
draws/V
thousands/N
of/I
visitors/N
daily/R
./.
###/###
Fatalities/N
on/I
rural/J
interstates/N
rose/V
33/C
%/N
between/I
1986/C
and/C
last/J
year/N
,/,
the/D
National/N
Highway/N
Traffic/N
Safety/N
Administration/N
said/V
in/I
a/D
report/N
on/I
the/D
impact/N
of/I
the/D
65/C
miles-per-hour/J
speed/N
limit/N
on/I
those/D
roads/N
./.
###/###
The/D
report/N
to/T
Congress/N
said/V
that/I
fatalities/N
rose/V
18/C
%/N
in/I
1987/C
and/C
13/C
%/N
in/I
1988/C
on/I
rural/J
interstates/N
./.
###/###
The/D
1987/C
highway/N
bill/N
permitted/V
states/N
to/T
raise/V
the/D
speed/N
limit/N
to/T
65/C
mph/N
from/I
55/C
mph/N
on/I
interstate/J
roads/N
,/,
which/W
are/V
defined/V
as/I
highways/N
that/W
pass/V
through/I
areas/N
with/I
fewer/J
than/I
50,000/C
people/N
./.
###/###
Since/I
1987/C
,/,
40/C
states/N
have/V
increased/V
the/D
speed/N
limit/N
on/I
rural/J
interstates/N
./.
###/###
``/`
About/I
one-third/N
of/I
the/D
fatality/N
increase/N
is/V
attributed/V
to/T
greater/J
travel/N
,/,
and/C
about/I
two-thirds/N
is/V
attributed/V
to/T
other/J
factors/N
-LCB-/-
primarily/R
to/T
greater/J
speed/N
-RCB-/-
,/,
''/'
according/V
to/T
NHTSA/N
./.
###/###
The/D
report/N
showed/V
that/I
deaths/N
on/I
urban/J
interstate/J
highways/N
rose/V
7/C
%/N
between/I
1986/C
and/C
last/J
year/N
,/,
while/I
fatalities/N
on/I
non-interstate/J
roads/N
were/V
about/I
the/D
same/J
in/I
1988/C
as/I
in/I
1986/C
./.
###/###
In/I
states/N
that/W
raised/V
the/D
speed/N
limit/N
on/I
rural/J
interstates/N
,/,
the/D
fatality/N
rate/N
rose/V
about/I
18/C
%/N
to/T
1.7/C
deaths/N
per/I
100/C
million/C
miles/N
traveled/V
between/I
1986/C
and/C
1988/C
./.
###/###
In/I
contrast/N
,/,
the/D
fatality/N
rate/N
in/I
the/D
states/N
that/W
retained/V
the/D
55/C
mph/N
limit/N
was/V
0.9/C
last/J
year/N
,/,
the/D
same/J
as/I
in/I
1986/C
./.
###/###
Well-Seasoned/J
Reasoning/N
-LRB-/-
``/`
Food/N
manufacturer/N
changes/V
spelling/N
of/I
`/`
catsup/N
'/'
to/T
`/`
ketchup/N
,/,
'/'
saying/V
that/D
's/V
the/D
spelling/N
people/N
now/R
prefer/V
''./S
--/:
WSJ/N
Business/N
Bulletin/N
-RRB-/-
###/###
Public/J
preference/N
is/V
important/J
,/,
So/I
product/N
names/N
should/M
match/V
up/I
,/,
And/C
firms/N
that/W
find/V
they/P
're/V
lagging/V
behind/I
Should/M
now/R
take/V
steps/N
to/T
ketchup/V
--/:
George/N
O./N
Ludcke/N
###/###
Judge/V
Not/R
How/W
easy/J
it/P
is/V
To/T
attack/V
others/N
'/P
views/N
Without/I
ever/R
setting/V
A/D
foot/N
in/I
their/P
shoes/N
--/:
G./N
Sterling/N
Leiby/N
###/###
Daffynition/N
Money-making/J
course/N
:/:
wad-working/N
./.
--/:
Thomas/N
Henry/N
./.
###/###
In/I
an/D
Oct./N
10/C
editorial-page/N
article/N
,/,
``/`
It/P
's/V
the/D
World/N
Bank/N
's/P
Turn/N
to/T
Adjust/V
,/,
''/'
Paul/N
Craig/N
Roberts/N
lays/V
most/J
of/I
the/D
blame/N
for/I
what/W
ails/N
developing/V
countries/N
at/I
the/D
doorstep/N
of/I
the/D
World/N
Bank/N
./.
###/###
The/D
article/N
is/V
,/,
unfortunately/R
,/,
replete/J
with/I
outrageous/J
distortions/N
./.
###/###
One/C
of/I
Mr./N
Roberts/N
's/P
observations/N
is/V
that/I
the/D
Bank/N
's/P
own/J
loan/N
portfolio/N
is/V
in/I
deep/J
trouble/N
because/I
of/I
its/P
lending/N
to/T
developing/V
countries/N
./.
###/###
This/D
is/V
just/R
not/R
so/R
./.
###/###
The/D
reality/N
is/V
that/I
Bank/N
finances/N
are/V
rock/N
solid/J
./.
###/###
As/I
of/I
June/N
30/C
,/,
1989/C
--/:
the/D
day/N
our/P
past/N
fiscal/J
year/N
came/V
to/T
a/D
close/N
--/:
only/R
4.1/C
%/N
of/I
the/D
Bank/N
's/P
portfolio/N
was/V
affected/V
by/I
arrears/N
of/I
over/I
six/C
months/N
./.
###/###
This/D
is/V
an/D
enviably/R
low/J
level/N
./.
###/###
Moreover/R
,/,
the/D
Bank/N
follows/V
a/D
prudent/J
provisioning/V
policy/N
and/C
has/V
set/V
aside/R
$/$
800/C
million/C
against/I
possible/J
loan/N
losses/N
./.
###/###
For/I
the/D
same/J
fiscal/J
year/N
,/,
by/I
the/D
way/N
,/,
the/D
Bank/N
's/P
net/J
income/N
was/V
a/D
robust/J
$/$
1.1/C
billion/C
after/I
provisions/N
./.
###/###
Because/I
of/I
the/D
business-like/J
manner/N
in/I
which/W
the/D
Bank/N
goes/V
about/I
development/N
,/,
financial/J
markets/N
have/V
confidence/N
in/I
it/P
./.
###/###
This/D
helps/V
explain/V
the/D
triple-A/J
rating/N
enjoyed/V
by/I
our/P
bonds/N
and/C
our/P
ability/N
to/T
borrow/V
$/$
9.3/C
billion/C
in/I
fiscal/J
1989/C
on/I
the/D
most/R
advantageous/J
terms/N
./.
###/###
Another/D
of/I
Mr./N
Roberts/N
's/P
criticisms/N
is/V
that/D
Bank/N
lending/N
has/V
done/V
more/J
harm/N
than/I
good/J
``/`
by/I
implanting/V
the/D
wrong/J
incentives/N
and/C
deflecting/V
energy/N
away/R
from/I
economic/J
development/N
./.
''/'
###/###
Here/R
,/,
too/R
,/,
Mr./N
Roberts/N
is/V
way/N
off/I
the/D
mark/N
./.
###/###
The/D
reality/N
is/V
that/I
Bank/N
loans/N
have/V
been/V
linked/V
to/T
policy/N
improvements/N
for/I
40/C
years/N
./.
###/###
Our/P
traditional/J
project/N
loans/N
have/V
,/,
for/I
instance/N
,/,
supported/V
sensible/J
energy/N
pricing/N
in/I
the/D
power/N
sector/N
,/,
sound/J
interest-rate/J
policies/N
in/I
the/D
credit/N
area/N
and/C
the/D
operation/N
of/I
public/J
utilities/N
as/I
efficient/J
,/,
autonomous/J
agencies/N
./.
###/###
By/I
and/C
large/J
,/,
these/D
efforts/N
have/V
borne/V
fruit/N
./.
###/###
In/I
my/P
home/N
region/N
,/,
Latin/N
America/N
,/,
much/R
of/I
the/D
existing/V
infrastructure/N
base/N
--/:
an/D
important/J
building/N
block/N
for/I
development/N
--/:
has/V
been/V
financed/V
by/I
the/D
World/N
Bank/N
./.
###/###
Mr./N
Roberts/N
also/R
takes/V
a/D
swipe/N
at/I
the/D
Bank/N
's/P
adjustment/N
lending/N
./.
###/###
What/W
are/V
the/D
facts/N
on/I
this/D
type/N
of/I
lending/N
?/.
###/###
The/D
Bank/N
has/V
been/V
making/V
adjustment/N
loans/N
for/I
10/C
years/N
./.
###/###
As/I
their/P
name/N
implies/V
,/,
these/D
operations/N
are/V
linked/V
to/T
far-reaching/J
policy/N
reforms/N
that/W
aim/V
at/I
helping/V
borrowing/N
countries/N
get/V
back/R
on/I
the/D
growth/N
path/N
and/C
at/I
enhancing/V
their/P
credit-worthiness/N
./.
###/###
Typically/R
,/,
these/D
measures/N
include/V
reforms/N
to/T
downsize/V
the/D
role/N
of/I
government/N
and/C
parastatals/N
in/I
the/D
economy/N
,/,
to/T
open/V
up/I
inward-looking/J
economies/N
to/T
international/J
competition/N
and/C
to/T
promote/V
the/D
development/N
of/I
a/D
vigorous/J
private/J
sector/N
./.
###/###
Support/N
for/I
the/D
private/J
sector/N
has/V
been/V
a/D
longstanding/J
concern/N
of/I
the/D
Bank/N
's/P
./.
###/###
Over/I
the/D
years/N
,/,
it/P
has/V
helped/V
encourage/V
investments/N
by/I
entrepreneurs/N
in/I
the/D
Third/N
World/N
through/I
its/P
extensive/J
credit/N
operations/N
and/C
through/I
loans/N
and/C
investments/N
by/I
the/D
International/N
Finance/N
Corp/N
./.
###/###
Most/R
recently/R
,/,
the/D
Bank/N
Group/N
has/V
been/V
expanded/V
to/T
include/V
the/D
Multilateral/N
Investment/N
Guarantee/N
Agency/N
to/T
stimulate/V
direct/J
foreign/J
investment/N
in/I
developing/V
countries/N
by/I
offering/V
guarantees/N
against/I
noncommercial/J
risk/N
and/C
advice/N
to/T
member/N
countries/N
on/I
how/W
to/T
improve/V
their/P
business/N
climate/N
./.
###/###
These/D
are/V
not/R
the/D
actions/N
of/I
a/D
development/N
agency/N
wed/V
to/T
central/J
planning/N
and/C
to/T
the/D
concentration/N
of/I
investment/N
decisions/N
in/I
the/D
hands/N
of/I
government/N
,/,
as/I
Mr./N
Roberts/N
alleges/V
./.
###/###
Rather/R
,/,
they/P
reflect/V
the/D
Bank/N
's/P
time-tested/J
,/,
pragmatic/J
approach/N
,/,
which/W
aims/V
at/I
ensuring/V
that/I
developing/V
countries/N
put/V
their/P
scarce/J
resources/N
to/T
the/D
best/J
possible/J
use/N
./.
###/###
Francisco/N
Aguirre-Sacasa/N
Director/N
,/,
External/N
Affairs/N
The/D
World/N
Bank/N
###/###
The/D
government/N
said/V
it/P
would/M
streamline/V
its/P
enormous/J
and/C
often-criticized/J
food/N
marketing/N
and/C
distribution/N
network/N
,/,
Compania/N
Nacional/N
de/I
Subsistencias/N
Populares/N
,/,
or/C
Conasupo/N
./.
###/###
Conasupo/N
Director/N
Ignacio/N
Ovalle/N
Fernandez/N
said/V
the/D
agency/N
will/M
sell/V
589/C
midsized/J
supermarkets/N
and/C
several/J
food-production/N
plants/N
and/C
warehouses/N
beginning/V
early/J
next/J
year/N
./.
###/###
The/D
agency/N
will/M
withdraw/V
from/I
the/D
production/N
of/I
nine/C
food/N
products/N
,/,
maintaining/V
production/N
of/I
the/D
two/C
most/R
important/J
ones/N
,/,
corn/N
and/C
milk/N
./.
###/###
Mr./N
Ovalle/N
also/R
said/V
Conasupo/N
will/M
cut/V
back/J
subsidies/N
to/T
producers/N
of/I
nonessential/J
farm/N
products/N
and/C
close/V
retail/J
outlets/N
in/I
wealthy/J
neighborhoods/N
./.
###/###
The/D
agency/N
's/P
workers/N
and/C
private/J
companies/N
would/M
be/V
allowed/V
to/T
bid/V
for/I
the/D
assets/N
up/I
for/I
sale/N
./.
###/###
Conasupo/N
controls/V
prices/N
on/I
agricultural/J
goods/N
and/C
operates/V
retail/J
outlets/N
where/W
basic/J
consumer/N
items/N
are/V
sold/V
at/I
state-subsidized/J
prices/N
./.
###/###
Business/N
leaders/N
have/V
long/R
criticized/V
the/D
agency/N
as/I
a/D
leading/V
example/N
of/I
bureacratic/J
waste/N
./.
###/###
Private-sector/J
leaders/N
praised/V
the/D
Conasupo/N
restructuring/N
./.
###/###
But/C
most/J
economists/N
doubt/V
the/D
streamlining/V
would/M
cut/V
deeply/R
into/I
Conasupo/N
government/N
subsidy/N
,/,
which/W
largely/R
goes/V
to/T
reduce/V
consumer/N
prices/N
for/I
corn/N
and/C
milk/N
./.
###/###
The/D
Food/N
and/C
Drug/N
Administration/N
banned/V
all/D
imports/N
of/I
mushrooms/N
from/I
China/N
in/I
response/N
to/T
a/D
rash/N
of/I
food-poisoning/J
outbreaks/N
linked/V
to/T
canned/V
Chinese/J
mushrooms/N
./.
###/###
``/`
The/D
agency/N
has/V
concluded/V
that/D
contamination/N
may/M
be/V
widespread/J
throughout/I
the/D
mushroom-processing/J
industry/N
in/I
China/N
,/,
''/'
an/D
FDA/N
spokesman/N
said/V
yesterday/N
./.
###/###
The/D
agency/N
wo/M
n't/R
allow/V
mushrooms/N
that/W
were/V
canned/V
or/C
packed/V
in/I
brine/N
at/I
any/D
Chinese/J
plant/N
to/T
enter/V
the/D
U.S./N
until/I
``/`
satisfactory/J
sanitation-control/J
measures/N
are/V
implemented/V
in/I
China/N
to/T
prevent/V
''/'
bacterial/J
contamination/N
./.
###/###
On/I
May/N
19/C
,/,
the/D
FDA/N
began/V
detaining/V
Chinese/J
mushrooms/N
in/I
68-ounce/J
cans/N
after/I
more/R
than/I
100/C
people/N
in/I
Mississippi/N
,/,
New/N
York/N
and/C
Pennsylvania/N
became/V
ill/R
from/I
eating/V
tainted/V
mushrooms/N
./.
###/###
In/I
subsequent/J
tests/N
,/,
the/D
agency/N
found/V
smaller-size/J
cans/N
from/I
several/J
Chinese/J
plants/N
to/T
be/V
similarly/R
contaminated/V
./.
###/###
The/D
outbreaks/N
were/V
traced/V
to/T
staphylococcus/N
aureus/N
,/,
a/D
type/N
of/I
bacteria/N
that/W
produces/V
a/D
toxin/N
capable/J
of/I
surviving/V
the/D
high/J
temperatures/N
used/V
in/I
canning/V
vegetables/N
./.
###/###
A/D
recall/N
of/I
the/D
mushrooms/N
blamed/V
for/I
the/D
food/N
poisoning/N
began/V
in/I
early/J
March/N
./.
###/###
In/I
1987/C
,/,
China/N
exported/V
65/C
million/C
pounds/N
of/I
mushrooms/N
,/,
valued/V
at/I
$/$
47/C
million/C
,/,
to/T
the/D
U.S/N
./.
###/###
The/D
shipments/N
went/V
mostly/R
to/T
food-service/J
distributors/N
that/W
supply/V
pizzerias/N
and/C
restaurants/N
./.
###/###
A/D
spokesman/N
for/I
the/D
Chinese/N
Embassy/N
here/R
said/V
that/I
the/D
Beijing/N
government/N
has/V
taken/V
``/`
many/J
effective/J
measures/N
''/'
to/T
stop/V
the/D
mushroom/N
contamination/N
and/C
is/V
further/R
investigating/V
the/D
underlying/V
causes/N
./.
###/###
He/P
predicted/V
the/D
problem/N
will/M
be/V
solved/V
``/`
very/R
soon/R
./.
###/###
Your/P
Sept./N
26/C
``/`
Politics/N
&/C
Policy/N
''/'
article/N
about/I
William/N
Bennett/N
's/P
Emergency/N
Drug/N
Plan/N
for/I
Washington/N
gives/V
the/D
impression/N
that/I
the/D
FBI/N
has/V
not/R
been/V
nor/C
is/V
actively/R
involved/V
./.
###/###
This/D
is/V
not/R
the/D
case/N
./.
###/###
The/D
FBI/N
is/V
very/R
supportive/J
of/I
and/C
an/D
active/J
participant/N
in/I
Mr./N
Bennett/N
's/P
initiative/N
./.
###/###
It/P
was/V
agreed/V
at/I
the/D
outset/N
of/I
the/D
Washington/N
Drug/N
Initiative/N
that/I
the/D
FBI/N
's/P
role/N
would/M
be/V
to/T
continue/V
targeting/V
the/D
major/J
drug/N
traffickers/N
through/I
our/P
National/N
Drug/N
Strategy/N
./.
###/###
Through/I
these/D
investigations/N
we/P
do/V
not/R
focus/V
on/I
the/D
street/N
drug/N
user/N
,/,
but/C
rather/R
we/P
target/V
and/C
attack/V
major/J
drug-trafficking/J
organizations/N
that/W
control/V
a/D
large/J
segment/N
of/I
the/D
drug/N
market/N
./.
###/###
The/D
trial/N
of/I
Raful/N
Edmond/N
III/N
in/I
Washington/N
serves/V
to/T
highlight/V
our/P
efforts/N
in/I
this/D
area/N
and/C
the/D
results/N
achieved/V
through/I
our/P
excellent/J
working/V
relationship/N
with/I
the/D
Drug/N
Enforcement/N
Administration/N
and/C
the/D
Metropolitan/N
Police/N
Department/N
-LRB-/-
MPD/N
-RRB-/-
./.
###/###
The/D
FBI/N
's/P
role/N
is/V
to/T
complement/V
the/D
D.C./N
initiative/N
through/I
not/R
only/R
these/D
major/J
trafficking/N
investigations/N
,/,
but/C
also/R
by/I
providing/V
a/D
full/J
range/N
of/I
services/N
through/I
various/J
task/N
forces/N
and/C
our/P
contacts/N
with/I
local/J
police/N
squads/N
handling/V
drug-related/J
crimes/N
./.
###/###
In/I
fact/N
,/,
we/P
have/V
agents/N
assigned/V
full/J
time/N
to/T
assist/V
the/D
MPD/N
in/I
drug-related/J
crimes/N
such/J
as/I
homicide/N
and/C
other/J
crimes/N
of/I
violence/N
./.
###/###
Milt/N
Ahlerich/N
Assistant/N
Director/N
Office/N
of/I
Public/N
Affairs/N
Federal/N
Bureau/N
of/I
Investigation/N
###/###
Ramada/N
Inc./N
revised/V
the/D
terms/N
of/I
its/P
restructuring/N
and/C
extended/V
to/T
Feb./N
28/C
,/,
1990/C
,/,
the/D
deadline/N
to/T
complete/V
the/D
sale/N
of/I
its/P
hotel/N
business/N
to/T
New/N
World/N
Development/N
Co./N
of/I
Hong/N
Kong/N
and/C
Prime/N
Motor/N
Inns/N
Inc./N
of/I
Fairfield/N
,/,
N.J/N
./.
###/###
Ramada/N
's/P
previous/J
plan/N
was/V
derailed/V
by/I
upheaval/N
in/I
the/D
junk-bond/J
market/N
that/W
hindered/V
the/D
offering/N
of/I
$/$
400/C
million/C
in/I
high-yield/J
securities/N
of/I
Aztar/N
Corp./N
,/,
the/D
new/J
company/N
that/W
will/M
operate/V
Ramada/N
's/P
casinos/N
in/I
Nevada/N
and/C
Atlantic/N
City/N
,/,
###/###
Under/I
the/D
new/J
terms/N
,/,
New/N
World/N
will/M
still/R
pay/V
$/$
540/C
million/C
for/I
Ramada/N
's/P
hotel/N
business/N
,/,
subject/J
to/T
adjustment/N
at/I
closing/V
,/,
but/C
Ramada/N
will/M
now/R
reimburse/V
New/N
World/N
for/I
$/$
10/C
million/C
in/I
expenses/N
./.
###/###
Prime/N
will/M
still/R
manage/V
Ramada/N
's/P
domestic/J
franchise/N
system/N
when/W
the/D
sale/N
closes/V
./.
###/###
Revised/V
terms/N
call/V
for/I
each/D
Ramada/N
common/J
share/N
to/T
be/V
exchanged/V
for/I
$/$
1/C
in/I
cash/N
,/,
subject/J
to/T
possible/J
reduction/N
,/,
and/C
one/C
share/N
of/I
Aztar/N
common/J
stock/N
./.
###/###
Shareholders/N
will/M
also/R
receive/V
one/C
cent/N
per/I
share/N
for/I
the/D
redemption/N
of/I
preferred/V
stock/N
purchase/N
rights/N
./.
###/###
The/D
cash/N
payout/N
will/M
be/V
reduced/V
by/I
40/C
%/N
of/I
any/D
amount/N
by/I
which/W
the/D
weighted/J
mean/J
price/N
of/I
Ramada/N
's/P
common/J
stock/N
exceeds/V
$/$
14/C
on/I
the/D
day/N
the/D
transaction/N
closes/V
./.
###/###
The/D
provision/N
will/M
help/V
provide/V
for/I
tax/N
liabilities/N
that/W
may/M
stem/V
from/I
the/D
restructuring/N
./.
###/###
Ramada/N
's/P
stock/N
rose/V
87.5/C
cents/N
on/I
the/D
news/N
to/T
close/V
at/I
$/$
11.25/C
in/I
composite/J
New/N
York/N
Stock/N
Exchange/N
trading/N
./.
###/###
The/D
announcement/N
dispelled/V
some/D
Wall/N
Street/N
observers/N
'/P
fears/N
that/I
New/N
World/N
might/M
demand/V
a/D
huge/J
premium/N
for/I
the/D
delay/N
,/,
or/C
scrap/V
the/D
deal/N
entirely/R
./.
###/###
The/D
previous/J
deadline/N
to/T
complete/V
the/D
sale/N
was/V
Nov./N
30/C
./.
###/###
One/C
major/J
advantage/N
of/I
the/D
revised/V
plan/N
is/V
that/I
Aztar/N
will/M
have/V
far/R
less/J
debt/N
than/I
under/I
the/D
old/J
terms/N
./.
###/###
``/`
They/P
'll/M
go/V
from/I
being/V
one/C
of/I
the/D
most/R
leveraged/J
to/T
one/C
of/I
the/D
least/R
leveraged/J
casino/N
companies/N
,/,
''/'
said/V
Daniel/N
Lee/N
,/,
an/D
analyst/N
with/I
Drexel/N
Burnham/N
Lambert/N
Inc/N
./.
###/###
Mr./N
Lee/N
values/V
the/D
package/N
at/I
between/I
$/$
15/C
and/C
$/$
20/C
a/D
share/N
,/,
based/V
on/I
current/J
trading/N
prices/N
of/I
other/J
casino-company/N
stocks/N
./.
###/###
The/D
much-revised/J
restructuring/N
,/,
which/W
was/V
first/R
announced/V
in/I
October/N
1988/C
,/,
must/M
again/R
be/V
approved/V
by/I
shareholders/N
and/C
state/N
casino/N
regulators/N
in/I
Nevada/N
and/C
New/N
Jersey/N
./.
###/###
Financing/N
plans/N
include/V
raising/V
$/$
170/C
million/C
in/I
debt/N
secured/V
by/I
the/D
company/N
's/P
holdings/N
in/I
New/N
Jersey/N
./.
###/###
In/I
May/N
,/,
Ramada/N
sold/V
its/P
Marie/N
Callender/N
Pie/N
Shops/N
Inc./N
unit/N
to/T
a/D
group/N
of/I
private/J
investors/N
as/I
part/N
of/I
its/P
plan/N
to/T
focus/V
on/I
its/P
casinos/N
in/I
Atlantic/N
City/N
and/C
in/I
Las/N
Vegas/N
and/C
Laughlin/N
,/,
Nev/N
./.
###/###
Bond/N
prices/N
took/V
the/D
high/J
road/N
and/C
stock/N
prices/N
took/V
the/D
low/J
road/N
as/I
worries/N
mounted/V
about/I
the/D
economy/N
and/C
the/D
junk/N
bond/N
market/N
./.
###/###
The/D
Dow/N
Jones/N
Industrial/N
Average/N
fell/V
26.23/C
points/N
to/T
2662.91/C
in/I
sluggish/J
trading/N
./.
###/###
But/C
long-term/J
Treasury/N
bonds/N
staged/V
a/D
modest/J
rally/N
,/,
with/I
prices/N
on/I
most/J
issues/N
rising/V
about/I
half/P
a/D
point/N
,/,
or/C
$/$
5/C
for/I
each/D
$/$
1,000/C
face/N
amount/N
./.
###/###
The/D
dollar/N
sagged/V
against/I
other/J
major/J
currencies/N
in/I
lethargic/J
trading/N
./.
###/###
Traders/N
and/C
analysts/N
said/V
the/D
divergence/N
between/I
the/D
stock/N
and/C
bond/N
markets/N
is/V
a/D
sign/N
of/I
growing/V
unease/N
about/I
the/D
economic/J
outlook/N
./.
###/###
A/D
sinking/V
economy/N
depresses/V
corporate/J
earnings/N
and/C
thus/R
stock/N
prices/N
,/,
but/C
it/P
buoys/V
bond/N
prices/N
as/I
interest/N
rates/N
fall/V
./.
###/###
That/D
unease/N
is/V
expected/V
to/T
grow/V
today/N
when/W
the/D
government/N
reports/V
on/I
September/N
durable/J
goods/N
orders/N
and/C
again/R
Thursday/N
when/W
the/D
first/J
assessment/N
of/I
third-quarter/J
economic/J
growth/N
is/V
released/V
./.
###/###
Analysts/N
say/V
they/P
think/V
durable/J
goods/N
orders/N
fell/V
about/I
1/C
%/N
,/,
compared/V
with/I
a/D
3.9/C
%/N
gain/N
in/I
August/N
,/,
and/C
that/D
growth/N
in/I
the/D
third/J
quarter/N
slowed/V
to/T
about/I
2.3/C
%/N
from/I
the/D
second/J
quarter/N
's/P
2.5/C
%/N
./.
###/###
The/D
stock/N
market/N
's/P
decline/N
,/,
coming/V
after/I
a/D
record/N
weekly/J
gain/N
of/I
119.88/C
points/N
,/,
surprised/V
some/D
investors/N
./.
###/###
But/C
A.C./N
Moore/N
,/,
director/N
of/I
research/N
at/I
Argus/N
Research/N
,/,
said/V
last/J
week/N
's/P
rally/N
was/V
a/D
reflex/J
reaction/N
to/T
the/D
Oct./N
13/C
stock/N
market/N
rout/N
./.
###/###
Overall/R
,/,
he/P
said/V
,/,
the/D
trend/N
in/I
stock/N
prices/N
will/M
be/V
down/I
as/I
the/D
economy/N
weakens/V
./.
###/###
``/`
We/P
think/V
we/P
're/V
on/I
target/N
in/I
looking/V
for/I
renewed/V
economic/J
deterioration/N
,/,
''/'
he/P
said/V
./.
###/###
``/`
Corporate/J
profits/N
are/V
going/V
to/T
decrease/V
faster/R
than/I
interest/N
rates/N
will/M
fall/V
,/,
and/C
the/D
probability/N
is/V
that/I
we/P
'll/M
see/V
negative/J
economic/J
growth/N
in/I
the/D
fourth/J
quarter/N
./.
''/'
###/###
Hugh/N
Johnson/N
,/,
chief/N
investment/N
officer/N
at/I
First/J
Albany/N
Corp./N
,/,
agreed/V
that/I
a/D
deteriorating/V
economy/N
is/V
worrisome/J
,/,
but/C
he/P
said/V
the/D
real/J
concern/N
among/I
stock/N
investors/N
is/V
that/I
some/D
new/J
problem/N
will/M
crop/V
up/I
in/I
the/D
junk/N
bond/N
market/N
./.
###/###
In/I
major/J
market/N
activity/N
:/:
Stock/N
prices/N
slumped/V
in/I
sluggish/J
trading/N
###/###
Volume/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
totaled/V
135.9/C
million/C
shares/N
./.
###/###
Declining/V
issues/N
on/I
the/D
Big/N
Board/N
were/V
ahead/R
of/I
gainers/N
,/,
1,012/C
to/T
501/C
./.
###/###
Bond/N
prices/N
rallied/V
./.
###/###
The/D
yield/N
on/I
the/D
Treasury/N
's/P
benchmark/N
30-year/J
bond/N
slipped/V
to/T
7.93/C
%/N
./.
###/###
The/D
dollar/N
weakened/V
against/I
most/R
other/J
major/J
currencies/N
./.
###/###
In/I
late/J
New/N
York/N
trading/N
,/,
the/D
dollar/N
was/V
quoted/V
at/I
1.8470/C
marks/N
and/C
141.90/C
yen/N
,/,
compared/V
with/I
1.8578/C
marks/N
and/C
142.43/C
yen/N
late/J
Friday/N
./.
###/###
The/D
Wall/N
Street/N
Journal/N
``/`
American/N
Way/N
of/I
Buying/N
''/'
Survey/N
consists/V
of/I
two/C
separate/J
,/,
door-to-door/J
nationwide/J
polls/N
conducted/V
for/I
the/D
Journal/N
by/I
Peter/N
D./N
Hart/N
Research/N
Associates/N
and/C
the/D
Roper/N
Organization/N
./.
###/###
The/D
two/C
surveys/N
,/,
which/W
asked/V
different/J
questions/N
,/,
were/V
conducted/V
using/V
national/J
random/J
probability/N
samples/N
./.
###/###
The/D
poll/N
conducted/V
by/I
Peter/N
D./N
Hart/N
Research/N
Associates/N
interviewed/V
2,064/C
adults/N
age/N
18/C
and/C
older/J
from/I
June/N
15/C
to/T
June/N
30/C
,/,
1989/C
./.
###/###
The/D
poll/N
conducted/V
by/I
the/D
Roper/N
Organization/N
interviewed/V
2,002/C
adults/N
age/N
18/C
and/C
older/J
from/I
July/N
7/C
to/T
July/N
15/C
,/,
1989/C
./.
###/###
Responses/N
were/V
weighted/V
on/I
the/D
basis/N
of/I
age/N
and/C
gender/N
to/T
conform/V
with/I
U.S./N
Census/N
data/N
./.
###/###
For/I
each/D
poll/N
,/,
the/D
odds/N
are/V
19/C
out/I
of/I
20/C
that/D
if/I
pollsters/N
had/V
sought/V
to/T
survey/V
every/D
household/N
in/I
the/D
U.S./N
using/V
the/D
same/J
questionnaire/N
,/,
the/D
findings/N
would/M
differ/V
from/I
these/D
poll/J
results/N
by/I
no/D
more/R
than/I
2/C
percentage/N
points/N
in/I
either/D
direction/N
./.
###/###
The/D
margin/N
of/I
error/N
for/I
subgroups/N
--/:
for/I
example/N
,/,
married/V
women/N
with/I
children/N
at/I
home/N
--/:
would/M
be/V
larger/J
./.
###/###
In/I
addition/N
,/,
in/I
any/D
survey/N
,/,
there/E
is/V
always/R
the/D
chance/N
that/I
other/J
factors/N
such/J
as/I
question/N
wording/N
could/M
introduce/V
errors/N
into/I
the/D
findings/N
./.
###/###
-LRB-/-
See/V
related/V
story/N
:/:
``/`
The/N
American/N
Way/N
of/I
Buying/N
:/:
Is/V
Buying/V
a/D
Car/N
a/D
Choice/N
or/C
a/D
Chore/N
?/.
--/:
###/###
Ironically/R
,/,
American/N
Airlines/N
'/P
attempt/N
to/T
lead/V
industry/N
prices/N
higher/R
was/V
reported/V
in/I
the/D
same/J
issue/N
as/I
your/P
survey/N
showing/V
that/I
consumers/N
had/V
the/D
least/J
confidence/N
in/I
the/D
airline/N
industry/N
-LRB-/-
Sept./N
20/C
-RRB-/-
./.
###/###
You/P
quote/V
Robert/N
Crandall/N
,/,
chairman/N
of/I
American/N
's/P
parent/N
,/,
AMR/N
Corp./N
,/,
as/I
having/V
said/V
that/I
discount/N
deals/N
for/I
big/J
customers/N
would/M
be/V
``/`
dumb/J
''/'
because/I
``/`
you/P
will/M
go/V
to/T
Detroit/N
because/I
you/P
have/V
to/T
go/V
to/T
Detroit/N
whether/I
the/D
fare/N
is/V
$/$
175/C
,/,
$/$
275/C
or/C
$/$
375/C
./.
''/'
###/###
Even/R
if/I
Mr./N
Crandall/N
is/V
correct/J
,/,
he/P
of/I
all/D
people/N
must/M
realize/V
our/P
society/N
relies/V
on/I
competition/N
to/T
keep/V
prices/N
at/I
a/D
competitive/J
level/N
./.
###/###
In/I
1986/C
,/,
he/P
settled/V
an/D
antitrust/J
suit/N
based/V
on/I
a/D
taped/V
telephone/N
conversation/N
of/I
him/P
proposing/V
to/T
Braniff/N
's/P
president/N
that/I
they/P
both/D
raise/V
fares/N
20/C
%/N
./.
###/###
-LRB-/-
Braniff/N
declined/V
-RRB-/-
./.
###/###
When/W
I/P
asked/V
American/N
Airlines/N
for/I
its/P
side/N
of/I
the/D
story/N
for/I
use/N
in/I
my/P
MBA/N
class/N
,/,
where/W
I/P
teach/V
business/N
ethics/N
,/,
it/P
did/V
not/R
respond/V
./.
###/###
Perhaps/R
the/D
ethics/N
of/I
an/D
industry/N
's/P
leader/N
filters/V
down/I
and/C
is/V
one/C
of/I
the/D
factors/N
that/W
ultimately/R
shapes/V
consumer/N
trust/N
in/I
that/D
industry/N
./.
###/###
Arnold/N
Celnicker/N
Assistant/N
Professor/N
Ohio/N
State/N
University/N
###/###
Meredith/N
Corp./N
is/V
launching/V
a/D
new/J
service/N
to/T
offer/V
advertisers/N
package/N
deals/N
combining/V
its/P
book/N
,/,
magazine/N
and/C
videocassette/N
products/N
./.
###/###
The/D
Des/N
Moines-based/J
publisher/N
said/V
it/P
created/V
a/D
new/J
Custom/N
Marketing/N
Group/N
that/W
will/M
offer/V
advertisers/N
special/J
rates/N
for/I
combination/N
packages/N
in/I
its/P
magazines/N
,/,
such/J
as/I
Ladies/N
Home/N
Journal/N
and/C
Better/N
Homes/N
and/C
Gardens/N
./.
###/###
In/I
addition/N
,/,
the/D
group/N
will/M
create/V
custom-designed/J
media/N
such/J
as/I
cookbooks/N
,/,
newspaper/N
inserts/N
and/C
videos/N
for/I
ad/N
campaigns/N
./.
###/###
Earlier/R
this/D
year/N
,/,
Meredith/N
sold/V
its/P
first/J
such/J
package/N
for/I
$/$
3/C
million/C
to/T
Kraft/N
Inc./N
,/,
now/R
a/D
unit/N
of/I
New/N
York-based/J
Philip/N
Morris/N
Cos/N
./.
###/###
The/D
Kraft/N
package/N
included/V
a/D
specially/R
published/V
cookbook/N
,/,
a/D
national/J
free-standing/J
insert/N
in/I
Sunday/N
newspapers/N
,/,
and/C
a/D
Kraft/N
``/`
advertorial/J
''/'
section/N
that/W
ran/V
in/I
five/C
Meredith/N
magazines/N
./.
###/###
Kraft/N
recently/R
agreed/V
to/T
spend/V
an/D
additional/J
$/$
3/C
million/C
on/I
similar/J
programs/N
through/I
1990/C
./.
###/###
Bill/N
Murphy/N
,/,
director/N
of/I
the/D
new/J
marketing/N
unit/N
,/,
said/V
Meredith/N
is/V
negotiating/V
other/J
large-scale/J
packages/N
with/I
leading/V
companies/N
in/I
several/J
product/N
categories/N
,/,
but/C
he/P
would/M
n't/R
disclose/V
their/P
names/N
./.
###/###
Sources/N
close/R
to/T
the/D
company/N
and/C
ad/N
agencies/N
that/W
work/V
with/I
Meredith/N
said/V
leading/V
advertisers/N
in/I
consumer/N
electronics/N
,/,
packaged/V
goods/N
and/C
automotive/J
products/N
were/V
among/I
those/D
negotiating/V
ad/N
packages/N
with/I
the/D
Meredith/N
group/N
./.
###/###
Other/J
magazine/N
publishing/N
companies/N
have/V
been/V
moving/V
in/I
the/D
same/J
direction/N
./.
###/###
The/D
New/N
York/N
Times/N
Co./N
's/P
Magazine/N
Group/N
earlier/R
this/D
year/N
began/V
offering/V
advertisers/N
extensive/J
merchandising/V
services/N
built/V
around/I
buying/V
ad/N
pages/N
in/I
its/P
Golf/N
Digest/N
magazine/N
./.
###/###
Time/N
Warner/N
Inc./N
recently/R
formed/V
a/D
``/`
synergy/N
department/N
''/'
to/T
seek/V
out/I
ways/N
to/T
offer/V
advertisers/N
packages/N
that/W
could/M
combine/V
Time/N
's/P
magazines/N
with/I
Warner/N
products/N
such/J
as/I
videocassettes/N
./.
###/###
Paul/N
DuCharme/N
,/,
director/N
of/I
media/N
services/N
at/I
Grey/N
Advertising/N
,/,
said/V
Meredith/N
is/V
the/D
leader/N
in/I
providing/V
multimedia/N
packages/N
./.
###/###
``/`
They/P
may/M
get/V
passed/V
up/I
later/R
when/W
other/J
publishers/N
get/V
their/P
acts/N
together/R
,/,
but/C
for/I
now/R
they/P
are/V
the/D
quickest/J
offering/N
the/D
most/R
extensive/J
plan/N
,/,
''/'
he/P
said/V
./.
###/###
Mr./N
Murphy/N
of/I
Meredith/N
said/V
one/C
advertiser/N
,/,
which/W
he/P
would/M
n't/R
identify/V
,/,
wants/V
Meredith/N
to/T
provide/V
ad/N
pages/N
in/I
seven/C
Meredith/N
magazines/N
,/,
publish/V
an/D
interior-decorating/J
book/N
that/W
will/M
be/V
distributed/V
at/I
point/N
of/I
purchase/N
,/,
give/V
away/R
a/D
videotape/N
on/I
installation/N
pointers/N
,/,
and/C
possibly/R
use/V
Meredith/N
's/P
Better/N
Homes/N
and/C
Gardens/N
'/P
residential/J
real-estate/J
agents/N
to/T
distribute/V
discount-coupon/N
books/N
to/T
new/J
homeowners/N
./.
###/###
``/`
Five/C
years/N
ago/I
,/,
magazine/N
publishers/N
would/M
simply/R
bid/V
on/I
an/D
advertiser/N
's/P
big/J
ad/N
schedule/N
for/I
their/P
magazine/N
,/,
''/'
said/V
Mr./N
Murphy/N
./.
###/###
``/`
But/C
the/D
marketplace/N
changed/V
./.
###/###
Advertisers/N
now/R
say/V
`/`
Help/V
us/P
improve/V
our/P
image/N
and/C
extend/V
our/P
selling/V
season/N
./.
'/'
###/###
They/P
are/V
coming/V
to/T
publishers/N
looking/V
for/I
ideas/N
./.
###/###
Your/P
Sept./N
21/C
article/N
``/`
It/P
's/V
So/R
Easy/J
to/T
Get/V
Burned/V
When/W
Buying/V
a/D
Small/J
Firm/N
''/'
was/V
excellent/J
./.
###/###
I/P
've/V
been/V
advising/V
small/J
businesses/N
many/J
years/N
and/C
have/V
lived/V
with/I
the/D
fact/N
that/I
50/C
%/N
will/M
go/V
out/I
of/I
business/N
within/I
two/C
years/N
,/,
and/C
80/C
%/N
in/I
five/C
years/N
./.
###/###
The/D
economic/J
loss/N
,/,
jobs/N
lost/V
,/,
anguish/N
,/,
frustration/N
and/C
humiliation/N
are/V
beyond/I
measure/N
./.
###/###
And/C
most/J
of/I
these/D
are/V
absolutely/R
unnecessary/J
./.
###/###
Your/P
article/N
points/V
out/I
the/D
traps/N
people/N
fall/V
into/I
,/,
but/C
when/W
reviewing/V
those/D
traps/N
one/N
sees/V
just/R
about/I
all/D
of/I
them/P
could/M
have/V
been/V
avoided/V
./.
###/###
An/D
accountant/N
did/V
not/R
review/V
the/D
seller/N
's/P
books/N
before/I
buying/V
a/D
business/N
./.
###/###
``/`
I/P
guess/V
I/P
was/V
naive/J
,/,
''/'
he/P
said/V
./.
###/###
There/E
is/V
a/D
more/R
descriptive/J
word/N
to/T
describe/V
his/P
lapse/N
of/I
common/J
sense/N
./.
###/###
Corporate/J
managers/N
who/W
want/V
to/T
start/V
their/P
own/J
business/N
are/V
the/D
highest/J
failure/N
risks/N
./.
###/###
They/P
know/V
all/P
the/D
answers/N
and/C
are/V
not/R
used/V
to/T
working/V
more/R
than/I
40/C
hours/N
a/D
week/N
./.
###/###
The/D
blue-collar/J
worker/N
who/W
decides/V
to/T
start/V
a/D
business/N
will/M
listen/V
and/C
take/V
advice/N
./.
###/###
His/P
humility/N
gives/V
him/P
a/D
much/R
better/J
chance/N
of/I
success/N
./.
###/###
A/D
few/J
months/N
ago/I
your/P
paper/N
reported/V
the/D
results/N
of/I
a/D
study/N
to/T
determine/V
why/W
Asians/N
who/W
arrive/V
in/I
this/D
country/N
without/I
any/D
money/N
,/,
and/C
unable/J
to/T
speak/V
English/N
,/,
become/V
overnight/J
successes/N
./.
###/###
Their/P
``/`
secret/N
''/'
is/V
that/I
they/P
gather/V
a/D
small/J
group/N
of/I
advisers/N
around/I
them/P
,/,
listen/V
to/T
what/W
they/P
have/V
to/T
say/V
,/,
prepare/V
a/D
business/N
plan/N
and/C
they/P
are/V
on/I
their/P
way/N
./.
###/###
Successful/J
American/J
business/N
owners/N
do/V
the/D
same/J
thing/N
./.
###/###
Unfortunately/R
,/,
they/P
are/V
in/I
the/D
minority/N
./.
###/###
Avoiding/V
failure/N
is/V
easy/J
./.
###/###
It/P
's/V
unfortunate/J
so/I
many/J
must/M
learn/V
the/D
hard/J
way/N
./.
###/###
Daniel/N
B./N
Scully/N
Tucson/N
,/,
Ariz/N
./.
###/###
The/D
management/N
turnover/N
at/I
Reebok/N
International/N
Ltd./N
continued/V
with/I
the/D
resignation/N
of/I
company/N
president/N
C./N
Joseph/N
LaBonte/N
,/,
who/W
joined/V
Reebok/N
just/R
two/C
years/N
ago/I
./.
###/###
Mr./N
LaBonte/N
's/P
departure/N
follows/V
by/I
two/C
months/N
the/D
resignation/N
of/I
Mark/N
Goldston/N
as/I
senior/J
vice/N
president/N
and/C
chief/N
marketing/N
officer/N
after/I
only/R
11/C
months/N
at/I
Reebok/N
./.
###/###
The/D
resignations/N
by/I
the/D
two/C
executives/N
,/,
considered/V
hard-charging/N
and/C
abrasive/N
by/I
Reebok/N
insiders/N
,/,
reflect/V
a/D
difference/N
in/I
style/N
with/I
Paul/N
Fireman/N
,/,
chairman/N
and/C
chief/N
executive/N
,/,
according/V
to/T
several/J
former/J
executives/N
./.
###/###
The/D
two/C
executives/N
are/V
among/I
a/D
number/N
of/I
outsiders/N
recruited/V
by/I
Reebok/N
in/I
the/D
past/J
few/J
years/N
to/T
help/V
it/P
make/V
the/D
transition/N
from/I
a/D
small/J
start-up/J
company/N
to/T
a/D
marketing/N
giant/N
with/I
sales/N
last/J
year/N
of/I
$/$
1.79/C
billion/C
./.
###/###
The/D
changes/N
come/V
as/I
Reebok/N
,/,
which/W
grew/V
rapidly/R
in/I
the/D
mid-1980s/C
but/C
has/V
seen/V
its/P
sales/N
flatten/V
of/I
late/R
,/,
is/V
seeking/V
to/T
regain/V
momentum/N
in/I
the/D
athletic-shoe/N
business/N
against/I
rivals/N
Nike/N
Inc./N
and/C
L.A./N
Gear/N
Inc/N
./.
###/###
The/D
departures/N
,/,
said/V
Alice/N
Ruth/N
,/,
an/D
analyst/N
at/I
Montgomery/N
Securities/N
in/I
San/N
Francisco/N
,/,
should/M
enable/V
the/D
company/N
to/T
focus/V
on/I
business/N
issues/N
instead/R
of/I
management/N
differences/N
./.
###/###
``/`
I/P
think/V
it/P
's/V
more/R
an/D
issue/N
of/I
style/N
./.
###/###
I/P
would/M
view/V
it/P
as/I
a/D
net/J
positive/N
./.
###/###
The/D
company/N
can/M
go/V
about/I
its/P
business/N
./.
###/###
They/P
're/V
in/I
the/D
midst/N
of/I
a/D
turnaround/N
,/,
''/'
she/P
noted/V
./.
###/###
Earnings/N
have/V
rebounded/V
in/I
1989/C
after/I
a/D
20/C
%/N
decline/N
last/J
year/N
./.
###/###
A/D
former/J
executive/N
agreed/V
that/I
the/D
departures/N
do/V
n't/R
reflect/V
major/J
problems/N
,/,
adding/V
:/:
``/`
If/I
you/P
see/V
any/D
company/N
that/W
grows/V
as/R
fast/R
as/I
Reebok/N
did/V
,/,
it/P
is/V
going/V
to/T
have/V
people/N
coming/V
and/C
going/V
./.
''/'
###/###
Reebok/N
said/V
Mr./N
LaBonte/N
will/M
resume/V
the/D
presidency/N
of/I
Vantage/N
Group/N
Inc./N
,/,
a/D
California-based/J
venture/N
capital/N
firm/N
that/I
he/P
founded/V
in/I
1983/C
./.
###/###
Before/I
that/I
he/P
was/V
president/N
and/C
chief/N
operating/V
officer/N
of/I
Twentieth/N
Century-Fox/N
Film/N
Corp/N
./.
###/###
Reebok/N
added/V
that/I
Mr./N
Fireman/N
will/M
assume/V
the/D
title/N
of/I
president/N
./.
###/###
A/D
spokesman/N
said/V
that/I
neither/D
Mr./N
Fireman/N
nor/C
Mr./N
LaBonte/N
would/M
be/V
available/J
for/I
comment/N
./.
###/###
``/`
We/P
will/M
not/R
be/V
commenting/V
beyond/I
the/D
news/N
release/N
,/,
''/'
the/D
spokesman/N
said/V
./.
###/###
Mr./N
Goldston/N
,/,
who/W
had/V
been/V
president/N
of/I
Faberge/N
Inc./N
's/P
Faberge/N
U.S.A./N
division/N
before/I
joining/V
Reebok/N
in/I
September/N
1988/C
,/,
left/V
in/I
August/N
to/T
pursue/V
other/J
interests/N
./.
###/###
Magazine/N
publishers/N
are/V
facing/V
spiraling/V
costs/N
and/C
a/D
glut/N
of/I
new/J
titles/N
./.
###/###
But/C
even/R
a/D
raft/N
of/I
recent/J
failures/N
is/V
n't/R
stopping/V
them/P
from/I
launching/V
new/J
publications/N
./.
###/###
At/I
the/D
American/N
Magazine/N
Conference/N
here/R
,/,
publishers/N
are/V
plenty/R
worried/V
about/I
the/D
industry/N
's/P
woes/N
./.
###/###
But/C
they/P
are/V
also/R
talking/V
about/I
new/J
magazines/N
./.
###/###
For/I
example/N
,/,
Toronto-based/J
Telemedia/N
Inc./N
will/M
publish/V
Eating/N
Well/N
,/,
a/D
new/J
food/N
and/C
health/N
magazine/N
due/J
out/I
next/J
summer/N
./.
###/###
New/N
York-based/J
Hearst/N
Corp./N
this/D
fall/N
plans/V
to/T
publish/V
its/P
first/J
issue/N
of/I
9/C
Months/N
,/,
a/D
magazine/N
for/I
expectant/J
mothers/N
,/,
and/C
has/V
already/R
launched/V
American/N
Home/N
./.
###/###
And/C
Time/N
Warner/N
Inc./N
is/V
developing/V
a/D
spinoff/N
of/I
Time/N
magazine/N
aimed/V
at/I
kids/N
,/,
on/I
the/D
heels/N
of/I
its/P
successful/J
Sports/N
Illustrated/N
for/I
Kids/N
./.
###/###
Over/I
the/D
past/J
four/C
years/N
,/,
the/D
number/N
of/I
consumer/N
magazines/N
has/V
increased/V
by/I
an/D
average/N
of/I
80/C
magazines/N
annually/R
,/,
according/V
to/T
Donald/N
Kummerfeld/N
,/,
president/N
of/I
the/D
Magazine/N
Publishers/N
of/I
America/N
./.
###/###
``/`
This/D
is/V
an/D
impressive/J
show/N
of/I
faith/N
in/I
the/D
future/N
of/I
the/D
magazine/N
industry/N
,/,
''/'
said/V
Mr./N
Kummerfeld/N
./.
###/###
``/`
Entrepreneurs/N
do/V
n't/R
rush/V
to/T
get/V
into/I
a/D
stagnant/J
or/C
declining/V
industry/N
./.
''/'
###/###
And/C
despite/I
the/D
recent/J
tough/J
advertising/N
climate/N
,/,
industry/N
figures/N
released/V
at/I
the/D
meeting/N
here/R
indicate/V
things/N
may/M
be/V
turning/V
around/I
./.
###/###
For/I
the/D
first/J
nine/C
months/N
,/,
advertising/V
pages/N
in/I
consumer/N
magazines/N
tracked/V
by/I
the/D
Publishers/N
Information/N
Bureau/N
increased/V
4/C
%/N
from/I
the/D
same/J
period/N
last/J
year/N
,/,
to/T
125,849/C
pages/N
./.
###/###
Total/J
magazine/N
ad/N
revenue/N
for/I
the/D
same/J
period/N
increased/V
12/C
%/N
to/T
$/$
4.6/C
billion/C
./.
###/###
Though/I
for/I
some/D
magazines/N
categories/N
a/D
tough/J
advertising/N
climate/N
persists/V
,/,
the/D
industry/N
in/I
general/J
is/V
doing/V
well/R
compared/V
with/I
the/D
newspaper/N
industry/N
./.
###/###
Though/I
some/D
magazines/N
are/V
thriving/V
,/,
the/D
magazine/N
publishing/V
industry/N
remains/V
a/D
risky/J
business/N
./.
###/###
Within/I
the/D
same/J
nine/C
months/N
,/,
News/N
Corp./N
closed/V
down/I
In/I
Fashion/N
,/,
a/D
once-promising/J
young/J
woman/N
's/P
fashion/N
magazine/N
,/,
Drake/N
Publications/N
Inc./N
has/V
folded/V
the/D
long-troubled/J
Venture/N
magazine/N
,/,
and/C
Lang/N
Communications/N
has/V
announced/V
Ms./N
magazine/N
,/,
after/I
17/C
years/N
,/,
will/M
no/R
longer/R
carry/V
advertising/N
as/I
of/I
January/N
./.
###/###
Lang/N
is/V
cutting/V
costs/N
and/C
will/M
attempt/V
to/T
operate/V
the/D
magazine/N
with/I
only/J
subscription/N
revenue/N
./.
###/###
Meanwhile/R
,/,
American/N
Health/N
Partners/N
,/,
publisher/N
of/I
American/N
Health/N
magazine/N
,/,
is/V
deep/J
in/I
debt/N
,/,
and/C
Owen/N
Lipstein/N
,/,
founder/N
and/C
managing/V
partner/N
,/,
is/V
being/V
forced/V
to/T
sell/V
the/D
magazine/N
to/T
Reader/N
's/P
Digest/N
Association/N
Inc/N
./.
###/###
Mr./N
Lipstein/N
's/P
absence/N
from/I
the/D
meeting/N
here/R
raised/V
speculation/N
that/I
the/D
sale/N
is/V
in/I
trouble/N
./.
###/###
Mr./N
Lipstein/N
said/V
in/I
a/D
telephone/N
interview/N
from/I
New/N
York/N
that/I
the/D
sale/N
was/V
proceeding/V
as/R
planned/V
./.
###/###
``/`
The/D
magazine/N
is/V
strong/J
./.
###/###
It/P
's/V
simply/R
the/D
right/J
time/N
to/T
do/V
what/W
we/P
are/V
doing/V
,/,
''/'
Mr./N
Lipstein/N
said/V
./.
###/###
``/`
Magazines/N
can/M
no/R
longer/R
be/V
considered/V
institutions/N
,/,
''/'
said/V
James/N
Autry/N
,/,
president/N
of/I
Meredith/N
Corp./N
's/P
magazine/N
group/N
./.
###/###
``/`
Publishers/N
will/M
find/V
that/I
some/D
magazines/N
have/V
served/V
their/P
purpose/N
and/C
should/M
die/V
,/,
''/'
he/P
added/V
./.
###/###
``/`
Magazines/N
could/M
,/,
like/I
other/J
brands/N
,/,
find/V
that/I
they/P
have/V
only/R
a/D
limited/V
life/N
./.
''/'
###/###
There/E
are/V
also/R
indications/N
that/I
the/D
number/N
of/I
magazine/N
entrepreneurs/N
,/,
traditionally/R
depended/V
upon/I
to/T
break/V
new/J
ground/N
with/I
potentially/R
risky/J
start-ups/N
,/,
are/V
dwindling/V
./.
###/###
More/R
than/I
ever/R
,/,
independent/J
magazines/N
and/C
small/J
publishing/N
groups/N
are/V
being/V
gobbled/V
up/I
by/I
larger/J
publishing/N
groups/N
,/,
such/J
as/I
American/N
Express/N
Publishing/N
Corp./N
,/,
a/D
unit/N
of/I
American/N
Express/N
Co./N
,/,
and/C
Conde/N
Nast/N
Publications/N
Inc./N
,/,
a/D
unit/N
of/I
Advance/N
Publications/N
Inc./N
,/,
which/W
are/V
consolidating/V
in/I
order/N
to/T
gain/V
leverage/N
with/I
advertisers/N
./.
###/###
Some/D
entrepreneurs/N
are/V
still/R
active/J
,/,
though/R
./.
###/###
Gerry/N
Ritterman/N
,/,
president/N
of/I
New/N
York-based/J
Network/N
Publishing/N
Corp./N
,/,
earlier/R
this/D
year/N
sold/V
his/P
Soap/N
Opera/N
Digest/N
magazine/N
to/T
Rupert/N
Murdoch/N
's/P
News/N
Corp/N
./.
###/###
Mr./N
Ritterman/N
said/V
that/I
in/I
the/D
next/J
six/C
months/N
he/P
will/M
take/V
$/$
50/C
million/C
from/I
the/D
Soap/N
Opera/N
Digest/N
sale/N
to/T
acquire/V
new/J
magazines/N
./.
###/###
He/P
would/M
not/R
reveal/V
which/W
magazines/N
he/P
is/V
considering/V
./.
###/###
``/`
The/D
magazines/N
I/P
am/V
looking/V
for/I
are/V
underdeveloped/J
,/,
''/'
said/V
Mr./N
Ritterman/N
./.
###/###
``/`
They/P
could/M
be/V
old/J
or/C
new/J
,/,
but/C
they/P
are/V
magazines/N
whose/W
editorial/J
quality/N
needs/V
to/T
be/V
improved/V
./.
###/###
They/P
will/M
be/V
the/D
next/J
hot/J
magazines/N
./.
###/###
MCA/N
Inc./N
said/V
its/P
toy-making/J
unit/N
agreed/V
to/T
buy/V
Buddy/N
L/N
Corp./N
,/,
producer/N
of/I
a/D
line/N
of/I
toy/N
vehicles/N
and/C
preschool/J
products/N
./.
###/###
The/D
price/N
was/V
n't/R
disclosed/V
,/,
but/C
an/D
executive/N
of/I
LJN/N
Toys/N
Ltd./N
,/,
the/D
MCA/N
unit/N
,/,
said/V
the/D
closely/R
held/V
Buddy/N
L/N
had/V
annual/J
sales/N
in/I
excess/N
of/I
$/$
20/C
million/C
./.
###/###
The/D
40-year-old/J
Buddy/N
L/N
concern/N
,/,
based/V
in/I
New/N
York/N
,/,
designs/V
and/C
develops/V
toys/N
under/I
the/D
names/N
``/`
Buddy/N
L/N
''/'
and/C
``/`
My/N
First/N
Buddy/N
,/,
''/'
he/P
said/V
./.
###/###
MCA/N
said/V
it/P
expects/V
the/D
proposed/V
transaction/N
to/T
be/V
completed/V
``/`
no/R
later/R
than/I
Nov./N
10/C
./.
###/###
-LRB-/-
During/I
its/P
centennial/N
year/N
,/,
The/D
Wall/N
Street/N
Journal/N
will/M
report/V
events/N
of/I
the/D
past/J
century/N
that/D
stand/N
as/I
milestones/N
of/I
American/J
business/N
history/N
./.
-RRB-/-
###/###
FRANKLIN/N
NATIONAL/N
BANK/N
DIED/V
at/I
3/C
p.m./N
EDT/N
,/,
Oct./N
8/C
,/,
1974/C
,/,
and/C
was/V
promptly/R
resurrected/V
under/I
new/J
owners/N
to/T
shore/V
up/I
confidence/N
in/I
other/J
banks/N
during/I
a/D
recession/N
./.
###/###
Arthur/N
Burns/N
,/,
Federal/N
Reserve/N
Board/N
chairman/N
,/,
said/V
the/D
government/N
's/P
``/`
luck/N
''/'
in/I
keeping/V
the/D
bank/N
open/J
--/:
despite/I
being/V
the/D
then-biggest/J
U.S./N
bank/N
failure/N
--/:
prevented/V
``/`
shock/N
waves/N
around/I
the/D
country/N
and/C
around/I
the/D
world/N
./.
''/'
###/###
Federal/N
officials/N
who/W
had/V
been/V
probing/V
the/D
bank/N
for/I
months/N
arranged/V
a/D
merger/N
with/I
European-American/N
Bank/N
&/C
Trust/N
,/,
owned/V
by/I
six/C
foreign/J
banks/N
,/,
to/T
avert/V
the/D
closedown/N
./.
###/###
And/C
federal/J
insurance/N
protected/V
the/D
bank/N
's/P
631,163/C
depositors/N
./.
###/###
The/D
crisis/N
had/V
peaked/J
on/I
May/N
10/C
,/,
1974/C
,/,
when/W
the/D
bank/N
disclosed/V
``/`
severe/J
''/'
foreign-exchange/N
losses/N
due/J
to/T
``/`
unauthorized/J
''/'
trading/N
./.
###/###
Massive/J
withdrawals/N
followed/V
and/C
there/E
was/V
a/D
brief/J
rescue/N
attempt/N
,/,
with/I
political/J
undertones/N
,/,
including/V
$/$
1.77/C
billion/C
in/I
Federal/N
Reserve/N
loans/N
./.
###/###
Within/I
six/C
years/N
many/J
figures/N
were/V
convicted/V
for/I
their/P
illegal/J
abuse/N
of/I
Franklin/N
funds/N
./.
###/###
In/I
June/N
1980/C
,/,
Michele/N
Sindona/N
--/:
an/D
Italian/J
financier/N
who/W
in/I
July/N
1972/C
had/V
bought/V
a/D
22/C
%/N
block/N
of/I
Franklin/N
's/P
stock/N
from/I
Loews/N
Corp./N
,/,
headed/V
by/I
Laurence/N
A./N
Tisch/N
--/:
was/V
sentenced/V
to/T
25/C
years/N
in/I
prison/N
after/I
being/V
convicted/V
of/I
fraud/N
and/C
perjury/N
./.
###/###
Included/V
was/V
the/D
charge/N
that/I
Sindona/N
siphoned/V
$/$
45/C
million/C
of/I
Franklin/N
funds/N
for/I
his/P
other/J
ventures/N
./.
###/###
-LRB-/-
Sindona/N
in/I
1979/C
faked/V
his/P
``/`
kidnapping/N
''/'
for/I
2/C
months/N
to/T
delay/V
his/P
trial/N
./.
-RRB-/-
###/###
During/I
1976/C
to/T
1979/C
,/,
other/J
former/J
Franklin/N
officials/N
either/C
pleaded/V
guilty/J
to/T
or/C
were/V
found/V
guilty/J
of/I
violations/N
including/V
phony/J
transactions/N
to/T
hide/V
the/D
bank/N
's/P
losses/N
./.
###/###
Sindona/N
,/,
the/D
onetime/J
Vatican/N
financial/J
adviser/N
with/I
reported/V
links/N
to/T
the/D
Mafia/N
,/,
died/V
on/I
March/N
22/C
,/,
1986/C
,/,
at/I
age/N
65/C
,/,
reportedly/R
after/I
drinking/V
cyanide-laced/J
coffee/N
in/I
an/D
Italian/J
prison/N
./.
###/###
It/P
happened/V
four/C
days/N
after/I
he/P
was/V
sentenced/V
to/T
life/N
in/I
prison/N
for/I
ordering/V
a/D
1979/C
murder/N
./.
###/###
Italian/J
magistrates/N
labeled/V
his/P
death/N
a/D
suicide/N
./.
###/###
In/I
a/D
nondescript/J
office/N
building/N
south/R
of/I
Los/N
Angeles/N
,/,
human/J
behavior/N
is/V
being/V
monitored/V
,/,
dissected/V
and/C
,/,
ultimately/R
,/,
manipulated/V
./.
###/###
A/D
squiggly/R
line/N
snakes/V
across/I
a/D
video/N
screen/N
,/,
gyrating/V
erratically/R
as/I
subjects/N
with/I
hand-held/J
computers/N
register/V
their/P
second-by-second/J
reactions/N
to/T
a/D
speaker/N
's/P
remarks/N
./.
###/###
Agreement/N
,/,
disapproval/N
,/,
boredom/N
and/C
distraction/N
all/D
can/M
be/V
inferred/V
from/I
the/D
subjects/N
'/P
twist/N
of/I
a/D
dial/N
./.
###/###
In/I
another/D
experiment/N
,/,
an/D
elaborate/J
chart/N
with/I
color/N
codes/N
reveals/V
how/W
people/N
's/P
opinions/N
were/V
shaped/V
--/:
and/C
how/W
they/P
can/M
be/V
reshaped/V
./.
###/###
Donald/N
Vinson/N
,/,
who/W
oversees/V
the/D
experiments/N
,/,
is/V
n't/R
some/D
white-coated/J
researcher/N
./.
###/###
He/P
heads/V
Litigation/N
Sciences/N
Inc./N
,/,
the/D
nation/N
's/P
largest/J
legal/J
consulting/V
firm/N
,/,
which/W
is/V
helping/V
corporate/J
America/N
prepare/V
for/I
high-stakes/J
litigation/N
by/I
predicting/V
and/C
shaping/V
jurors/N
'/P
reactions/N
./.
###/###
In/I
the/D
process/N
,/,
Litigation/N
Sciences/N
is/V
quietly/R
but/C
inexorably/R
reshaping/V
the/D
world/N
of/I
law/N
./.
###/###
Little/R
known/V
outside/I
the/D
legal/J
world/N
but/C
a/D
powerhouse/N
within/I
,/,
Litigation/N
Sciences/N
,/,
a/D
unit/N
of/I
Saatchi/N
&/C
Saatchi/N
PLC/N
,/,
employs/V
more/R
than/I
100/C
psychologists/N
,/,
sociologists/N
,/,
marketers/N
,/,
graphic/J
artists/N
and/C
technicians/N
./.
###/###
Twenty-one/C
of/I
its/P
workers/N
are/V
Ph./N
D.s/N
./.
###/###
Among/I
other/J
services/N
,/,
the/D
firm/N
provides/V
pre-trial/J
opinion/N
polls/N
,/,
creates/V
profiles/N
of/I
``/`
ideal/J
''/'
jurors/N
,/,
sets/N
up/I
mock/J
trials/N
and/C
``/`
shadow/N
''/'
juries/N
,/,
coaches/N
lawyers/N
and/C
witnesses/N
,/,
and/C
designs/V
courtroom/N
graphics/N
./.
###/###
Much/R
like/I
their/P
cohorts/N
in/I
political/J
consulting/N
and/C
product/N
marketing/N
,/,
the/D
litigation/N
advisers/N
encourage/V
their/P
clients/N
to/T
play/V
down/I
complex/J
or/C
ambiguous/J
matters/N
,/,
simplify/V
their/P
messages/N
and/C
provide/V
their/P
target/N
audiences/N
with/I
a/D
psychological/J
craving/N
to/T
make/V
the/D
desired/V
choice/N
./.
###/###
With/I
jury/N
verdicts/N
getting/V
bigger/J
all/P
the/D
time/N
,/,
companies/N
are/V
increasingly/R
willing/J
to/T
pay/V
huge/J
sums/N
for/I
such/J
advice/N
./.
###/###
Recently/R
,/,
Litigation/N
Sciences/N
helped/V
Pennzoil/N
Co./N
win/V
a/D
$/$
10.5/C
billion/C
jury/N
verdict/N
against/I
Texaco/N
Inc/N
./.
###/###
It/P
advised/V
the/D
National/N
Football/N
League/N
in/I
its/P
largely/R
successful/J
defense/N
of/I
antitrust/J
charges/N
by/I
the/D
United/N
States/N
Football/N
League/N
./.
###/###
And/C
it/P
helped/V
win/V
defense/N
verdicts/N
in/I
product-liability/N
suits/N
involving/V
scores/N
of/I
products/N
,/,
ranging/V
from/I
Firestone/N
500/C
tires/N
to/T
the/D
anti-nausea/J
drug/N
Bendectin/N
./.
###/###
Largely/R
as/I
a/D
result/N
,/,
Litigation/N
Sciences/N
has/V
more/R
than/I
doubled/V
in/I
size/N
in/I
the/D
past/J
two/C
years/N
./.
###/###
Its/P
1988/C
revenue/N
was/V
$/$
25/C
million/C
./.
###/###
Meanwhile/R
,/,
competitors/N
are/V
being/V
spawned/V
almost/R
daily/R
;/:
some/D
300/C
new/J
businesses/N
--/:
many/J
just/J
one-person/N
shops/N
--/:
have/V
sprung/V
up/I
./.
###/###
Mr./N
Vinson/N
estimates/V
the/D
industry/N
's/P
total/J
revenues/N
approach/V
$/$
200/C
million/C
./.
###/###
In/I
any/D
high-stakes/J
case/N
,/,
you/P
can/M
be/V
sure/J
that/I
one/C
side/N
or/C
the/D
other/J
--/:
or/C
even/R
both/D
--/:
is/V
using/V
litigation/N
consultants/N
./.
###/###
Despite/I
their/P
ubiquity/N
,/,
the/D
consultants/N
are/V
n't/R
entirely/R
welcome/J
./.
###/###
Some/D
lawyers/N
and/C
scholars/N
see/V
the/D
social/J
scientists/N
'/P
vision/N
of/I
the/D
American/J
jury/N
system/N
as/I
a/D
far/J
cry/N
from/I
the/D
ideal/N
presented/V
in/I
civics/N
texts/N
and/C
memorialized/V
on/I
the/D
movie/N
screen/N
./.
###/###
In/I
the/D
film/N
classic/N
``/`
Twelve/N
Angry/N
Men/N
,/,
''/'
the/D
crucible/N
of/I
deliberations/N
unmasks/V
each/D
juror/N
's/P
bias/N
and/C
purges/V
it/P
from/I
playing/V
a/D
role/N
in/I
the/D
verdict/N
./.
###/###
After/I
hours/N
of/I
conflict/N
and/C
debate/N
,/,
that/I
jury/N
focuses/V
on/I
the/D
facts/N
with/I
near-perfect/J
objectivity/N
./.
###/###
In/I
real/J
life/N
,/,
jurors/N
may/M
not/R
always/R
work/V
that/D
way/N
,/,
but/C
some/D
court/N
observers/N
question/V
why/W
they/P
should/M
n't/R
be/V
encouraged/V
to/T
do/V
so/R
rather/R
than/I
be/V
programmed/V
not/R
to/T
./.
###/###
Litigation/N
consulting/N
is/V
,/,
as/I
New/N
York/N
trial/N
attorney/N
Donald/N
Zoeller/N
puts/V
it/P
,/,
``/`
highly/R
manipulative/J
./.
''/'
###/###
He/P
adds/V
,/,
``/`
The/D
notion/N
they/P
try/V
to/T
sell/V
is/V
that/I
juries/N
do/V
n't/R
make/V
decisions/N
rationally/R
./.
###/###
But/C
the/D
effort/N
is/V
also/R
being/V
made/V
to/T
try/V
and/C
cause/V
jurors/N
not/R
to/T
decide/V
things/N
rationally/R
./.
###/###
I/P
find/V
it/P
troubling/J
./.
''/'
###/###
But/C
Mr./N
Zoeller/N
also/R
acknowledges/V
that/I
consultants/N
can/M
be/V
very/R
effective/J
./.
###/###
``/`
It/P
's/V
gotten/V
to/T
the/D
point/N
where/W
if/I
the/D
case/N
is/V
large/J
enough/R
,/,
it/P
's/V
almost/R
malpractice/N
not/R
to/T
use/V
them/P
,/,
''/'
he/P
says/V
./.
###/###
Others/N
complain/V
that/I
the/D
consultants/N
'/P
growing/V
influence/N
exacerbates/V
the/D
advantage/N
of/I
litigants/N
wealthy/J
enough/R
to/T
afford/V
such/J
pricey/J
services/N
./.
###/###
``/`
The/D
affluent/J
people/N
and/C
the/D
corporations/N
can/M
buy/V
it/P
,/,
the/D
poor/J
radicals/N
-LCB-/-
in/I
political/J
cases/N
-RCB-/-
get/V
it/P
free/J
,/,
and/C
everybody/N
in/I
between/I
is/V
at/I
a/D
disadvantage/N
,/,
and/C
that/D
's/V
not/R
the/D
kind/N
of/I
system/N
we/P
want/V
,/,
''/'
says/V
Amitai/N
Etzioni/N
,/,
a/D
prominent/J
sociologist/N
who/W
teaches/V
at/I
George/N
Washington/N
University/N
./.
###/###
Sophisticated/J
trial/N
consulting/N
grew/V
,/,
ironically/R
,/,
from/I
the/D
radical/J
political/J
movements/N
of/I
the/D
1960s/C
and/C
1970s/C
before/I
finding/V
its/P
more/J
lucrative/J
calling/N
in/I
big/J
commercial/J
cases/N
./.
###/###
The/D
Harrisburg/N
7/C
trial/N
in/I
1972/C
,/,
in/I
which/W
Daniel/N
Berrigan/N
and/C
others/N
were/V
charged/V
with/I
plotting/V
anti-war-related/J
violence/N
,/,
was/V
a/D
landmark/N
./.
###/###
In/I
that/D
case/N
,/,
a/D
group/N
of/I
left-leaning/J
sociologists/N
interviewed/V
252/C
registered/V
voters/N
around/I
Harrisburg/N
./.
###/###
The/D
researchers/N
discovered/V
that/I
Episcopalians/N
,/,
Presbyterians/N
,/,
Methodists/N
and/C
fundamantalist/N
Protestants/N
were/V
nearly/R
always/R
against/I
the/D
defendants/N
;/:
the/D
lawyers/N
resolved/V
to/T
try/V
to/T
keep/V
them/P
off/I
the/D
jury/N
./.
###/###
The/D
defense/N
also/R
learned/V
that/I
college-educated/J
people/N
were/V
uncharacteristically/R
conservative/J
about/I
the/D
Vietnam/N
War/N
./.
###/###
A/D
more/R
blue-collar/J
panel/N
became/V
a/D
second/J
aim/N
./.
###/###
Ultimately/R
,/,
that/D
carefully/R
picked/V
jury/N
deadlocked/V
with/I
a/D
10-2/C
vote/N
to/T
acquit/V
,/,
and/C
the/D
prosecution/N
decided/V
not/R
to/T
retry/V
the/D
case/N
./.
###/###
Litigation/N
consulting/N
had/V
arrived/V
./.
###/###
The/D
fledgling/N
science/N
went/V
corporate/J
in/I
1977/C
when/W
International/N
Business/N
Machines/N
Corp./N
hired/V
a/D
marketing/N
professor/N
to/T
help/V
defend/V
a/D
complex/J
antitrust/J
case/N
./.
###/###
The/D
problem/N
for/I
IBM/N
trial/N
lawyers/N
Thomas/N
Barr/N
and/C
David/N
Boies/N
was/V
how/W
to/T
make/V
such/P
a/D
highly/R
technical/J
case/N
understandable/J
./.
###/###
As/I
the/D
trial/N
progressed/V
,/,
they/P
were/V
eager/J
to/T
know/V
if/I
the/D
jury/N
was/V
keeping/V
up/I
with/I
them/P
./.
###/###
The/D
solution/N
devised/V
by/I
the/D
professor/N
was/V
to/T
hire/V
six/C
people/N
who/W
would/M
mirror/V
the/D
actual/J
jury/N
demographically/R
,/,
sit/V
in/I
on/I
the/D
trial/N
and/C
report/V
their/P
reactions/N
to/T
him/P
./.
###/###
He/P
then/R
briefed/V
Messrs./N
Boies/N
and/C
Barr/N
,/,
who/W
had/V
the/D
chance/N
to/T
tilt/V
their/P
next/J
day/N
's/P
presentation/N
accordingly/R
./.
###/###
Thus/R
,/,
the/D
``/`
shadow/N
''/'
jury/N
was/V
born/V
./.
###/###
Mr./N
Vinson/N
,/,
the/D
professor/N
,/,
got/V
the/D
law/N
bug/N
and/C
formed/V
Litigation/N
Sciences/N
./.
###/###
-LRB-/-
IBM/N
won/V
the/D
case/N
./.
-RRB-/-
###/###
``/`
The/D
hardest/J
thing/N
in/I
any/D
complex/J
case/N
is/V
to/T
retain/V
objectivity/N
and/C
,/,
in/I
some/D
sense/N
,/,
your/P
ignorance/N
,/,
''/'
says/V
Mr./N
Boies/N
of/I
Cravath/N
,/,
Swaine/N
&/C
Moore/N
./.
###/###
``/`
What/W
you/P
look/V
for/I
in/I
a/D
shadow/N
jury/N
is/V
very/R
much/R
what/W
you/P
do/V
when/W
you/P
give/V
an/D
opening/V
argument/N
to/T
your/P
wife/N
or/C
a/D
friend/N
and/C
get/V
some/D
response/N
to/T
it/P
./.
###/###
A/D
shadow/N
jury/N
is/V
a/D
way/N
to/T
do/V
that/D
in/I
a/D
more/R
systematic/J
and/C
organized/V
way/N
./.
''/'
###/###
The/D
approach/N
worked/V
well/R
in/I
the/D
recent/J
antitrust/J
case/N
in/I
which/W
Energy/N
Transportation/N
Systems/N
Inc./N
sued/V
Santa/N
Fe/N
Pacific/N
Corp./N
over/I
the/D
transport/N
of/I
semi-liquefied/J
coal/N
--/:
the/D
kind/N
of/I
case/N
likely/J
to/T
make/V
almost/R
anyone/N
's/P
eyes/N
glaze/V
over/I
./.
###/###
Energy/N
Transportation/N
retained/V
Litigation/N
Sciences/N
,/,
at/I
a/D
cost/N
of/I
several/J
hundred/C
thousand/C
dollars/N
,/,
to/T
poll/V
,/,
pre-try/V
,/,
profile/V
and/C
shadow/V
./.
###/###
Just/R
before/I
the/D
actual/J
closing/V
arguments/N
,/,
the/D
firm/N
put/V
the/D
case/N
to/T
a/D
vote/N
of/I
the/D
five/C
shadow/N
jurors/N
,/,
each/D
of/I
whom/W
was/V
being/V
paid/V
$/$
150/C
a/D
day/N
./.
###/###
The/D
jurors/N
,/,
who/W
did/V
n't/R
know/V
which/W
side/N
had/V
retained/V
them/P
,/,
decided/V
for/I
Energy/N
Transportation/N
,/,
and/C
awarded/V
$/$
500/C
million/C
in/I
damages/N
./.
###/###
The/D
real/J
jury/N
returned/V
days/N
later/R
with/I
a/D
$/$
345/C
million/C
victory/N
for/I
Energy/N
Transportation/N
./.
###/###
``/`
It/P
's/V
just/R
like/I
weather/N
forecasting/N
,/,
''/'
says/V
Energy/N
Transportation/N
trial/N
attorney/N
Harry/N
Reasoner/N
of/I
Vinson/N
&/C
Elkins/N
./.
###/###
``/`
It/P
's/V
often/R
wrong/J
,/,
but/C
it/P
's/V
better/J
than/I
consulting/V
an/D
Indian/J
rain/N
dancer/N
./.
''/'
###/###
Forecasting/N
is/V
only/R
one/C
part/N
of/I
Litigation/N
Sciences/N
'/P
work/N
./.
###/###
Changing/V
the/D
outcome/N
of/I
the/D
trial/N
is/V
what/W
really/R
matters/V
./.
###/###
And/C
to/T
the/D
uninitiated/J
,/,
some/D
of/I
the/D
firm/N
's/P
approaches/N
may/M
seem/V
chillingly/R
manipulative/J
./.
###/###
Theoretically/R
,/,
jurors/N
are/V
supposed/V
to/T
weigh/V
the/D
evidence/N
in/I
a/D
case/N
logically/R
and/C
objectively/R
./.
###/###
Instead/R
,/,
Mr./N
Vinson/N
says/V
,/,
interviews/N
with/I
thousands/N
of/I
jurors/N
reveal/V
that/I
they/P
start/V
with/I
firmly/R
entrenched/V
attitudes/N
and/C
try/V
to/T
shoe-horn/V
the/D
facts/N
of/I
the/D
case/N
to/T
fit/V
their/P
views/N
./.
###/###
Pre-trial/J
polling/N
helps/V
the/D
consultants/N
develop/V
a/D
profile/N
of/I
the/D
right/J
type/N
of/I
juror/N
./.
###/###
If/I
it/P
is/V
a/D
case/N
in/I
which/W
the/D
client/N
seeks/V
punitive/J
damages/N
,/,
for/I
example/N
,/,
depressed/V
,/,
underemployed/J
people/N
are/V
far/R
more/R
likely/J
to/T
grant/V
them/P
./.
###/###
Someone/N
with/I
a/D
master/N
's/P
degree/N
in/I
classical/J
arts/N
who/W
works/V
in/I
a/D
deli/N
would/M
be/V
ideal/J
,/,
Litigation/N
Sciences/N
advises/V
./.
###/###
So/R
would/M
someone/N
recently/R
divorced/V
or/C
widowed/V
./.
###/###
-LRB-/-
Since/I
Litigation/N
Sciences/N
generally/R
represents/V
the/D
defense/N
,/,
its/P
job/N
is/V
usually/R
to/T
help/V
the/D
lawyers/N
identify/V
and/C
remove/V
such/J
people/N
from/I
the/D
jury/N
./.
-RRB-/-
###/###
For/I
personal-injury/N
cases/N
,/,
Litigation/N
Sciences/N
seeks/V
defense/N
jurors/N
who/W
believe/V
that/I
most/J
people/N
,/,
including/V
victims/N
,/,
get/V
what/W
they/P
deserve/V
./.
###/###
Such/J
people/N
also/R
typically/R
hold/V
negative/J
attitudes/N
toward/I
the/D
physically/R
handicapped/V
,/,
the/D
poor/J
,/,
blacks/N
and/C
women/N
./.
###/###
The/D
consultants/N
help/V
the/D
defense/N
lawyers/N
find/V
such/J
jurors/N
by/I
asking/V
questions/N
about/I
potential/J
jurors/N
'/P
attitudes/N
toward/I
volunteer/N
work/N
,/,
or/C
toward/I
particular/J
movies/N
or/C
books/N
./.
###/###
Litigation/N
Sciences/N
does/V
n't/R
make/V
moral/J
distinctions/N
./.
###/###
If/I
a/D
client/N
needs/V
prejudiced/J
jurors/N
,/,
the/D
firm/N
will/M
help/V
find/V
them/P
./.
###/###
As/I
Mr./N
Vinson/N
explains/V
it/P
,/,
``/`
We/P
do/V
n't/R
control/V
the/D
facts/N
./.
###/###
They/P
are/V
what/W
they/P
are/V
./.
###/###
But/C
any/D
lawyer/N
will/M
select/V
the/D
facts/N
and/C
the/D
strategy/N
to/T
employ/V
./.
###/###
In/I
our/P
system/N
of/I
advocacy/N
,/,
the/D
trial/N
lawyer/N
is/V
duty/N
bound/V
to/T
present/V
the/D
best/J
case/N
he/P
possibly/R
can/M
./.
''/'
###/###
Once/R
a/D
jury/N
is/V
selected/V
,/,
the/D
consultants/N
often/R
continue/V
to/T
determine/V
what/W
the/D
jurors/N
'/P
attitudes/N
are/V
likely/J
to/T
be/V
and/C
help/V
shape/V
the/D
lawyers/N
'/P
presentation/N
accordingly/R
./.
###/###
Logic/N
plays/V
a/D
minimal/J
role/N
here/R
./.
###/###
More/R
important/J
are/V
what/W
LSI/N
calls/V
``/`
psychological/J
anchors/N
''/'
--/:
a/D
few/J
focal/J
points/N
calculated/V
to/T
appeal/V
to/T
the/D
jury/N
on/I
a/D
gut/N
level/N
./.
###/###
In/I
one/C
personal-injury/N
case/N
,/,
a/D
woman/N
claimed/V
she/P
had/V
been/V
injured/V
when/W
she/P
slipped/V
in/I
a/D
pool/N
,/,
but/C
the/D
fall/N
did/V
n't/R
explain/V
why/W
one/C
of/I
her/P
arms/N
was/V
discolored/V
bluish/J
./.
###/###
By/I
repeatedly/R
drawing/V
the/D
jury/N
's/P
attention/N
to/T
the/D
arm/N
,/,
the/D
defense/N
lawyers/N
planted/V
doubt/N
about/I
the/D
origin/N
of/I
the/D
woman/N
's/P
injuries/N
./.
###/###
The/D
ploy/N
worked/V
./.
###/###
The/D
defense/N
won/V
./.
###/###
In/I
a/D
classic/J
defense/N
of/I
a/D
personal-injury/N
case/N
,/,
the/D
consultants/N
concentrate/V
on/I
encouraging/V
the/D
jury/N
to/T
shift/V
the/D
blame/N
./.
###/###
``/`
The/D
ideal/J
defense/N
in/I
a/D
case/N
involving/V
an/D
accident/N
is/V
to/T
persuade/V
the/D
jurors/N
to/T
hold/V
the/D
accident/N
victim/N
responsible/J
for/I
his/P
or/C
her/P
plight/N
,/,
''/'
Mr./N
Vinson/N
has/V
written/V
./.
###/###
Slick/J
graphics/N
,/,
pre-tested/V
for/I
effectiveness/N
,/,
also/R
play/V
a/D
major/J
role/N
in/I
Litigation/N
Sciences/N
'/P
operation/N
./.
###/###
Studies/N
show/V
,/,
the/D
consultants/N
say/V
,/,
that/I
people/N
absorb/V
information/N
better/R
and/C
remember/V
it/P
longer/R
if/I
they/P
receive/V
it/P
visually/R
./.
###/###
Computer-generated/J
videos/N
help/V
./.
###/###
``/`
The/D
average/J
American/N
watches/V
seven/C
hours/N
of/I
TV/N
a/D
day/N
./.
###/###
They/P
are/V
very/R
visually/R
sophisticated/J
,/,
''/'
explains/V
LSI/N
graphics/N
specialist/N
Robert/N
Seltzer/N
./.
###/###
Lawyers/N
remain/V
divided/V
about/I
whether/I
anything/N
is/V
wrong/J
with/I
all/P
this/D
./.
###/###
Supporters/N
acknowledge/V
that/I
the/D
process/N
aims/V
to/T
manipulate/V
,/,
but/C
they/P
insist/V
that/I
the/D
best/J
trial/N
lawyers/N
have/V
always/R
employed/V
similar/J
tactics/N
./.
###/###
``/`
They/P
may/M
not/R
have/V
been/V
able/J
to/T
articulate/V
it/P
all/D
,/,
but/C
they/P
did/V
it/P
,/,
''/'
says/V
Stephen/N
Gillers/N
,/,
a/D
legal/J
ethics/N
expert/J
at/I
New/N
York/N
University/N
law/N
school/N
./.
###/###
``/`
What/W
you/P
have/V
here/R
is/V
intuition/N
made/V
manifest/J
./.
''/'
###/###
Many/J
lawyers/N
maintain/V
that/I
all/D
's/V
fair/J
in/I
the/D
adversary/N
system/N
as/R
long/R
as/I
no/D
one/C
tampers/N
with/I
the/D
evidence/N
./.
###/###
Others/N
point/V
out/I
that/I
lawyers/N
in/I
small/J
communities/N
have/V
always/R
had/V
a/D
feel/N
for/I
public/J
sentiment/N
--/:
and/C
used/V
that/D
to/T
advantage/V
./.
###/###
Litigation/N
consulting/N
is/V
n't/R
a/D
guarantee/N
of/I
a/D
favorable/J
outcome/N
./.
###/###
Litigation/N
Sciences/N
concedes/V
that/I
in/I
one/C
in/I
20/C
cases/N
it/P
was/V
flatout/N
wrong/J
in/I
its/P
predictions/N
./.
###/###
A/D
few/J
attorneys/N
offer/V
horror/N
stories/N
of/I
jobs/N
botched/V
by/I
consultants/N
or/C
of/I
overpriced/V
services/N
--/:
as/I
when/W
one/C
lawyer/N
paid/V
a/D
consultant/N
-LRB-/-
not/R
at/I
Litigation/N
Sciences/N
-RRB-/-
$/$
70,000/C
to/T
interview/V
a/D
jury/N
after/I
a/D
big/J
trial/N
and/C
later/R
read/V
more/R
informative/J
interviews/N
with/I
the/D
same/J
jurors/N
in/I
The/N
American/N
Lawyer/N
magazine/N
./.
###/###
Some/D
litigators/N
scoff/V
at/I
the/D
notion/N
that/I
a/D
sociologist/N
knows/V
more/R
than/I
they/P
do/V
about/I
what/W
makes/V
a/D
jury/N
tick/V
./.
###/###
``/`
The/D
essence/N
of/I
being/V
a/D
trial/N
lawyer/N
is/V
understanding/V
how/W
people/N
of/I
diverse/J
backgrounds/N
react/V
to/T
you/P
and/C
your/P
presentation/N
,/,
''/'
says/V
Barry/N
Ostrager/N
of/I
Simpson/N
Thacher/N
&/C
Bartlett/N
,/,
who/W
recently/R
won/V
a/D
huge/J
case/N
on/I
behalf/N
of/I
insurers/N
against/I
Shell/N
Oil/N
Co/N
./.
###/###
He/P
says/V
he/P
used/V
consultants/N
in/I
the/D
case/N
but/C
``/`
found/V
them/P
to/T
be/V
virtually/R
useless/J
./.
''/'
###/###
But/C
most/J
lawyers/N
accept/V
that/I
the/D
marketplace/N
has/V
spoken/V
./.
###/###
And/C
the/D
question/N
remains/V
whether/I
the/D
jury/N
system/N
can/M
maintain/V
its/P
integrity/N
while/I
undergoing/V
such/P
a/D
skillful/J
massage/N
./.
###/###
For/I
more/R
than/I
a/D
decade/N
,/,
Mr./N
Etzioni/N
,/,
the/D
sociologist/N
,/,
has/V
been/V
a/D
leading/V
critic/N
of/I
the/D
masseurs/N
./.
###/###
``/`
There/E
's/V
no/D
reason/N
to/T
believe/V
that/I
juries/N
rule/V
inappropriately/R
,/,
''/'
he/P
says/V
./.
###/###
``/`
But/C
the/D
last/J
thing/N
you/P
want/V
to/T
do/V
is/V
manipulate/V
the/D
subconscious/N
to/T
make/V
them/P
think/V
better/R
./.
###/###
What/W
you/P
then/R
do/V
is/V
you/P
make/V
them/P
think/V
inappropriately/R
./.
''/'
###/###
To/T
hamper/V
the/D
work/N
of/I
litigation/N
scientists/N
,/,
he/P
suggests/V
that/I
courts/N
sharply/R
limit/V
the/D
number/N
of/I
jurors/N
that/I
lawyers/N
can/M
remove/V
from/I
the/D
jury/N
panel/N
through/I
so-called/J
peremptory/J
challenges/N
--/:
exclusions/N
that/W
do/V
n't/R
require/V
explanations/N
./.
###/###
In/I
most/R
civil/J
cases/N
,/,
judges/N
allow/V
each/D
side/N
three/C
such/J
challenges/N
./.
###/###
For/I
complex/J
cases/N
,/,
judges/N
sometimes/R
allow/V
many/J
more/J
./.
###/###
Mr./N
Etzioni/N
also/R
suggests/V
forbidding/V
anyone/N
from/I
gathering/V
background/N
information/N
about/I
the/D
jurors/N
./.
###/###
-LRB-/-
Some/D
courts/N
release/V
names/N
and/C
addresses/N
,/,
and/C
researchers/N
can/M
drive/V
by/I
houses/N
,/,
look/V
up/I
credit/N
ratings/N
,/,
and/C
even/R
question/V
neighbors/N
./.
-RRB-/-
###/###
Furthermore/R
,/,
he/P
says/V
,/,
psychologists/N
should/M
not/R
be/V
allowed/V
to/T
analyze/V
jurors/N
'/P
personalities/N
./.
###/###
Even/R
some/D
lawyers/N
who/W
have/V
used/V
consultants/N
to/T
their/P
advantage/N
see/V
a/D
need/N
to/T
limit/V
their/P
impact/N
./.
###/###
Mr./N
Boies/N
,/,
the/D
first/J
lawyer/N
to/T
use/V
Mr./N
Vinson/N
's/P
services/N
,/,
cautions/V
against/I
courts/N
'/P
allowing/V
extensive/J
jury/N
questioning/V
-LRB-/-
known/V
as/I
voir/F
dire/F
-RRB-/-
or/C
giving/V
out/I
personal/J
information/N
about/I
the/D
jurors/N
./.
###/###
``/`
The/D
more/R
extensive/J
the/D
voir/F
dire/F
,/,
the/D
easier/J
you/P
make/V
it/P
for/I
that/D
kind/N
of/I
research/N
to/T
be/V
effective/J
,/,
and/C
I/P
do/V
n't/R
think/V
courts/N
should/M
lend/V
themselves/P
to/T
that/D
,/,
''/'
Mr./N
Boies/N
says/V
./.
###/###
Silicon/N
Graphics/N
Inc./N
,/,
a/D
fast-growing/J
maker/N
of/I
computer/N
workstations/N
,/,
said/V
it/P
landed/V
two/C
federal/J
government/N
contracts/N
worth/J
more/R
than/I
$/$
100/C
million/C
over/I
the/D
next/J
five/C
years/N
./.
###/###
One/C
award/N
is/V
part/N
of/I
a/D
Department/N
of/I
Defense/N
contract/N
to/T
Loral/N
Rolm/N
Mil-Spec/N
Computers/N
and/C
could/M
be/V
valued/V
at/I
more/R
than/I
$/$
100/C
million/C
over/I
five/C
years/N
./.
###/###
The/D
other/J
involves/V
the/D
sale/N
of/I
about/I
35/C
of/I
the/D
company/N
's/P
high-end/J
workstations/N
to/T
the/D
National/N
Institutes/N
of/I
Health/N
./.
###/###
The/D
models/N
,/,
which/W
cost/V
about/I
$/$
75,000/C
each/D
,/,
will/M
be/V
used/V
in/I
research/N
./.
###/###
The/D
awards/N
are/V
evidence/N
that/I
Silicon/N
Graphics/N
'/P
approach/N
to/T
computer/N
graphics/N
is/V
catching/V
on/I
with/I
users/N
of/I
powerful/J
desktop/N
computers/N
,/,
analysts/N
said/V
./.
###/###
``/`
The/D
company/N
's/V
on/I
a/D
roll/N
,/,
''/'
said/V
Robert/N
Herwick/N
,/,
an/D
analyst/N
at/I
Hambrecht/N
&/C
Quist/N
./.
###/###
``/`
No/R
other/J
-LCB-/-
computer/N
-RCB-/-
vendor/N
offers/V
graphics/N
performance/N
that/D
good/J
for/I
their/P
price/N
./.
''/'
###/###
In/I
the/D
battle/N
to/T
supply/V
desktop/N
computers/N
for/I
researchers/N
and/C
design/N
engineers/N
,/,
most/J
of/I
the/D
attention/N
is/V
given/V
to/T
the/D
biggest/J
competitors/N
:/:
Sun/N
Microsystems/N
Inc./N
,/,
Hewlett-Packard/N
Co./N
and/C
Digital/N
Equipment/N
Corp./N
,/,
which/W
make/V
computers/N
mainly/R
aimed/V
at/I
a/D
wide/J
range/N
of/I
engineering/N
and/C
scientific/J
needs/N
./.
###/###
Silicon/N
Graphics/N
,/,
on/I
the/D
other/J
hand/N
,/,
has/V
targeted/V
a/D
specific/J
niche/N
since/I
its/P
inception/N
in/I
1982/C
,/,
which/W
has/V
been/V
dubbed/V
by/I
some/D
as/I
``/`
motion-picture/J
computing/N
./.
''/'
###/###
This/D
is/V
a/D
style/N
of/I
``/`
visual/J
''/'
computing/N
that/W
provides/V
three-dimensional/J
,/,
color/N
models/N
of/I
everything/N
from/I
the/D
inside/N
of/I
a/D
house/N
to/T
the/D
latest/J
in/I
women/N
's/P
fashion/N
./.
###/###
Though/N
Silicon/N
Graphics/N
is/V
much/R
smaller/J
than/I
Digital/N
,/,
Hewlett/N
and/C
Sun/N
,/,
it/P
has/V
emerged/V
in/I
recent/J
years/N
as/I
a/D
feared/V
adversary/N
in/I
this/D
graphics/N
portion/N
of/I
the/D
workstation/N
market/N
./.
###/###
In/I
addition/N
,/,
the/D
company/N
has/V
made/V
it/P
tough/J
on/I
competitors/N
by/I
offering/V
a/D
stream/N
of/I
desktop/N
computers/N
at/I
sharply/R
lower/J
prices/N
./.
###/###
A/D
year/N
ago/I
,/,
Silicon/N
Graphics/N
introduced/V
a/D
model/N
priced/V
at/I
$/$
15,000/C
--/:
almost/R
as/R
cheap/J
as/I
mainstream/N
workstations/N
that/W
do/V
n't/R
offer/V
special/J
graphics/N
features/N
./.
###/###
Silicon/N
Graphics/N
also/R
plans/V
to/T
unveil/V
even/R
less/R
expensive/J
machines/N
in/I
the/D
near/J
future/N
./.
###/###
``/`
It/P
's/V
pretty/R
safe/J
to/T
assume/V
we/P
can/M
bring/V
the/D
cost/N
down/I
of/I
these/D
systems/N
by/I
30/C
%/N
to/T
40/C
%/N
a/D
year/N
,/,
''/'
said/V
Edward/N
McCracken/N
,/,
the/D
company/N
's/P
chief/N
executive/N
officer/N
./.
###/###
Silicon/N
Graphics/N
'/P
strategy/N
seems/V
to/T
be/V
paying/V
off/I
./.
###/###
Revenue/N
for/I
its/P
first/J
quarter/N
ended/V
Sept./N
30/C
was/V
$/$
86.4/C
million/C
,/,
a/D
95/C
%/N
increase/N
over/I
the/D
year-ago/J
period/N
./.
###/###
Profit/N
was/V
$/$
5.2/C
million/C
,/,
compared/V
with/I
$/$
1/C
million/C
for/I
the/D
year-ago/J
quarter/N
./.
###/###
Remember/V
those/D
bulky/J
,/,
thick-walled/J
refrigerators/N
of/I
30/C
years/N
ago/I
?/.
###/###
They/P
,/,
or/C
at/I
least/J
something/N
less/R
efficient/J
than/I
today/N
's/P
thin-walled/J
units/N
,/,
may/M
soon/R
be/V
making/V
a/D
comeback/N
./.
###/###
That/D
something/N
,/,
whatever/W
it/P
is/V
,/,
could/M
add/V
as/R
much/R
as/I
$/$
100/C
to/T
the/D
$/$
600/C
or/C
so/R
consumers/N
now/R
pay/V
for/I
lower-priced/J
refrigerators/N
./.
###/###
These/D
and/C
other/J
expensive/J
changes/N
in/I
products/N
ranging/V
from/I
auto/N
air/N
conditioners/N
to/T
foam/V
cushioning/V
to/T
commercial/J
solvents/N
are/V
in/I
prospect/N
because/I
of/I
something/N
called/V
the/D
Montreal/N
Protocol/N
,/,
signed/V
by/I
24/C
nations/N
in/I
1987/C
./.
###/###
In/I
one/C
of/I
the/D
most/R
sweeping/J
environmental/J
regulatory/J
efforts/N
to/T
date/N
--/:
involving/V
products/N
with/I
an/D
annual/J
value/N
of/I
$/$
135/C
billion/C
in/I
the/D
U.S./N
alone/R
--/:
the/D
signatories/N
agreed/V
to/T
curtail/V
sharply/R
the/D
use/N
of/I
chlorofluorocarbons/N
-LRB-/-
CFCs/N
-RRB-/-
./.
###/###
World-wide/J
production/N
would/M
be/V
cut/V
in/I
half/D
by/I
1998/C
./.
###/###
The/D
U.S./N
Senate/N
liked/V
the/D
treaty/N
so/R
well/R
it/P
ratified/V
it/P
by/I
a/D
vote/N
of/I
89/C
to/T
0/C
./.
###/###
Not/R
to/T
be/V
outdone/V
,/,
George/N
Bush/N
wants/V
CFCs/N
banished/V
altogether/R
by/I
the/D
year/N
2000/C
,/,
a/D
goal/N
endorsed/V
at/I
an/D
80-nation/J
U.N./N
environmental/J
meeting/N
in/I
Helsinki/N
in/I
the/D
spring/N
./.
###/###
That/D
's/V
a/D
lot/N
of/I
banishment/N
,/,
as/I
it/P
turns/V
out/I
./.
###/###
CFCs/N
are/V
the/D
primary/J
ingredient/N
in/I
a/D
gas/N
,/,
often/R
referred/V
to/T
by/I
the/D
Du/N
Pont/N
trade/N
name/N
Freon/N
,/,
which/W
is/V
compressed/V
to/T
liquid/J
form/N
to/T
serve/V
as/I
the/D
cooling/V
agent/N
in/I
refrigeration/N
and/C
air-conditioning/J
equipment/N
./.
###/###
Gases/N
containing/V
CFCs/N
are/V
pumped/V
into/I
polyurethane/N
to/T
make/V
the/D
foam/N
used/V
in/I
pillows/N
,/,
upholstery/N
and/C
insulation/N
./.
###/###
Polyurethane/N
foam/N
is/V
a/D
highly/R
efficient/J
insulator/N
,/,
which/W
accounts/V
for/I
why/W
the/D
walls/N
of/I
refrigerators/N
and/C
freezers/N
can/M
be/V
thinner/J
now/R
than/I
they/P
were/V
back/R
in/I
the/D
days/N
when/W
they/P
were/V
insulated/V
with/I
glass/N
fiber/N
./.
###/###
But/C
even/R
though/I
by/I
some/D
estimates/N
it/P
might/M
cost/V
the/D
world/N
as/R
much/R
as/I
$/$
100/C
billion/C
between/I
now/R
and/C
the/D
year/N
2000/C
to/T
convert/V
to/T
other/J
coolants/N
,/,
foaming/V
agents/N
and/C
solvents/N
and/C
to/T
redesign/V
equipment/N
for/I
these/D
less/J
efficient/J
substitutes/N
,/,
the/D
Montreal/N
Protocol/N
's/P
legions/N
of/I
supporters/N
say/V
it/P
is/V
worth/J
it/P
./.
###/###
They/P
insist/V
that/I
CFCs/N
are/V
damaging/V
the/D
earth/N
's/P
stratospheric/J
ozone/N
layer/N
,/,
which/W
screens/V
out/I
some/D
of/I
the/D
sun/N
's/P
ultraviolet/N
rays/N
./.
###/###
Hence/R
,/,
as/I
they/P
see/V
it/P
,/,
if/I
something/N
is/V
n't/R
done/V
earthlings/N
will/M
become/V
ever/R
more/J
subject/J
to/T
sunburn/N
and/C
skin/N
cancer/N
./.
###/###
Peter/N
Teagan/N
,/,
a/D
specialist/N
in/I
heat/N
transfer/N
,/,
is/V
running/V
a/D
project/N
at/I
Arthur/N
D./N
Little/N
Inc./N
,/,
of/I
Cambridge/N
,/,
Mass./N
,/,
to/T
find/V
alternative/J
technologies/N
that/W
will/M
allow/V
industry/N
to/T
eliminate/V
CFCs/N
./.
###/###
In/I
addition/N
to/T
his/P
interest/N
in/I
ozone/N
depletion/N
he/P
has/V
extensively/R
studied/V
the/D
related/V
topic/N
of/I
global/J
warming/N
,/,
a/D
theory/N
that/I
mankind/N
's/P
generation/N
of/I
carbon/N
dioxide/N
through/I
increased/V
combustion/N
of/I
fossil/J
fuels/N
is/V
creating/V
a/D
``/`
greenhouse/N
effect/N
''/'
that/W
will/M
work/V
important/J
climatic/J
changes/N
in/I
the/D
earth/N
's/P
atmosphere/N
over/I
time/N
./.
###/###
``/`
I/P
would/M
be/V
the/D
first/J
to/T
admit/V
that/I
there/E
is/V
not/R
a/D
complete/J
consensus/N
in/I
the/D
scientific/J
community/N
on/I
either/D
one/C
of/I
these/D
problems/N
,/,
''/'
says/V
Mr./N
Teagan/N
./.
###/###
``/`
In/I
the/D
kind/N
of/I
literature/N
I/P
read/V
I/P
come/V
across/I
countervailing/V
opinions/N
quite/R
frequently/R
./.
###/###
But/C
the/D
nature/N
of/I
the/D
problem/N
is/V
such/J
that/I
many/J
others/N
feel/V
it/P
has/V
to/T
be/V
addressed/V
soon/R
,/,
before/I
all/P
the/D
evidence/N
is/V
in/I
./.
###/###
We/P
ca/M
n't/R
afford/V
to/T
wait/V
./.
''/'
###/###
But/C
does/V
it/P
have/V
to/T
be/V
so/R
soon/R
?/.
###/###
Some/D
atmospheric/J
scientists/N
think/V
that/I
even/R
if/I
CFCs/N
were/V
released/V
into/I
the/D
atmosphere/N
at/I
an/D
accelerating/V
rate/N
,/,
the/D
amount/N
of/I
ozone/N
depletion/N
would/M
be/V
only/R
10/C
%/N
by/I
the/D
middle/N
of/I
the/D
next/J
century/N
./.
###/###
It/P
's/V
easy/J
to/T
get/V
something/N
comparable/J
by/I
simply/R
moving/V
to/T
a/D
higher/J
altitude/N
in/I
the/D
U.S/N
./.
###/###
Moreover/R
,/,
there/E
are/V
questions/N
,/,
particularly/R
among/I
atmospheric/J
scientists/N
who/W
know/V
this/D
subject/N
best/R
,/,
about/I
the/D
ability/N
of/I
anyone/N
to/T
know/V
what/W
in/I
fact/N
is/V
happening/V
to/T
the/D
ozone/N
layer/N
./.
###/###
It/P
is/V
generally/R
agreed/V
that/I
when/W
CFCs/N
rise/N
from/I
earth/N
to/T
stratosphere/N
,/,
the/D
chlorine/N
in/I
them/P
is/V
capable/J
of/I
interfering/V
with/I
the/D
process/N
through/I
which/W
ultraviolet/N
rays/N
split/V
oxygen/N
molecules/N
and/C
form/N
ozone/N
./.
###/###
But/C
ozone/N
creation/N
is/V
a/D
very/R
large-scale/J
natural/J
process/N
and/C
the/D
importance/N
of/I
human-generated/J
CFCs/N
in/I
reducing/V
it/P
is/V
largely/R
a/D
matter/N
of/I
conjecture/N
./.
###/###
The/D
ozone/N
layer/N
is/V
constantly/R
in/I
motion/N
and/C
thus/R
very/R
hard/J
to/T
measure/V
./.
###/###
What/W
scientists/N
have/V
known/V
since/I
the/D
late/J
1970s/C
is/V
that/I
there/E
is/V
a/D
hole/N
in/I
the/D
layer/N
over/I
Antarctica/N
that/W
expands/V
or/C
contracts/V
from/I
year/N
to/T
year/N
./.
###/###
But/C
it/P
is/V
at/I
least/J
worthy/J
of/I
some/D
note/N
that/I
there/E
are/V
very/R
few/J
refrigerators/N
in/I
Antarctica/N
./.
###/###
Moreover/R
,/,
surely/R
someone/N
has/V
noticed/V
that/I
household/N
refrigerators/N
are/V
closed/V
systems/N
,/,
running/V
for/I
many/J
years/N
without/I
either/C
the/D
CFC/N
gas/N
or/C
the/D
insulation/N
ever/R
escaping/V
./.
###/###
Another/D
argument/N
of/I
the/D
environmentalists/N
is/V
that/I
if/I
substitutes/N
are/V
available/J
,/,
why/W
not/R
use/V
them/P
?/.
###/###
Mr./N
Teagan/N
cites/V
a/D
list/N
of/I
substitutes/N
but/C
none/N
,/,
so/R
far/R
,/,
match/V
the/D
nonflammable/J
,/,
nontoxic/J
CFCs/N
./.
###/###
Butane/N
and/C
propane/N
can/M
be/V
used/V
as/I
coolants/N
,/,
for/I
example/N
,/,
but/C
are/V
flammable/J
./.
###/###
Moreover/R
,/,
new/J
lubricants/N
will/M
be/V
needed/V
to/T
protect/V
compressors/N
from/I
the/D
new/J
formulations/N
,/,
which/W
,/,
as/I
with/I
CFCs/N
,/,
are/V
solvents/N
./.
###/###
Mr./N
Teagan/N
points/V
out/I
as/R
well/R
that/I
if/I
the/D
equipment/N
designed/V
to/T
get/V
along/I
without/I
CFCs/N
is/V
less/R
efficient/J
than/I
current/J
devices/N
,/,
energy/N
consumption/N
will/M
rise/V
and/C
that/W
will/M
worsen/V
the/D
greenhouse/N
effect/N
./.
###/###
Folks/N
in/I
the/D
Midwest/N
who/W
just/R
suffered/V
a/D
mid-October/J
snowstorm/N
may/M
wonder/V
where/W
the/D
greenhouse/N
was/V
when/W
they/P
needed/V
it/P
,/,
but/C
let/V
's/P
not/R
be/V
flippant/J
about/I
grave/J
risks/N
./.
###/###
As/I
it/P
happens/V
,/,
Arthur/N
D./N
Little/N
is/V
not/R
at/I
all/D
interested/V
in/I
throwing/V
cold/J
water/N
on/I
ozone/N
depletion/N
and/C
global/J
warming/N
theories/N
./.
###/###
It/P
is/V
interested/V
in/I
making/V
some/D
money/N
advising/V
industry/N
on/I
how/W
to/T
convert/V
to/T
a/D
world/N
without/I
CFCs/N
./.
###/###
There/E
is/V
,/,
after/I
all/D
,/,
big/J
money/N
in/I
environmentalism/N
./.
###/###
Maybe/R
we/P
should/M
ask/V
why/W
it/P
was/V
that/I
Du/N
Pont/N
so/R
quickly/R
capitulated/V
and/C
issued/V
a/D
statement/N
,/,
giving/V
it/P
wide/J
publicity/N
,/,
that/I
it/P
was/V
withdrawing/V
CFCs/N
./.
###/###
Freon/N
,/,
introduced/V
in/I
1930/C
,/,
revolutionized/V
America/N
by/I
making/V
refrigeration/N
and/C
air/N
conditioning/N
practical/J
after/I
all/D
./.
###/###
One/C
answer/N
is/V
that/I
big/J
companies/N
are/V
growing/V
weary/J
of/I
fighting/V
environmental/J
movements/N
and/C
are/V
trying/V
instead/R
to/T
cash/V
in/I
on/I
them/P
,/,
although/I
they/P
never/R
care/V
to/T
put/V
it/P
quite/R
that/D
way/N
./.
###/###
Du/N
Pont/N
,/,
as/I
it/P
happens/V
,/,
has/V
a/D
potential/J
substitute/N
for/I
CFCs/N
./.
###/###
Imperial/N
Chemical/N
Industries/N
of/I
the/D
U.K./N
also/R
has/V
one/C
,/,
and/C
is/V
building/V
a/D
plant/N
in/I
Louisiana/N
to/T
produce/V
it/P
./.
###/###
Japanese/J
chemical/N
companies/N
are/V
at/I
work/N
developing/V
their/P
own/J
substitutes/N
and/C
hoping/V
to/T
conquer/V
new/J
markets/N
,/,
of/I
course/N
./.
###/###
There/E
are/V
still/R
others/N
who/W
do/V
n't/R
mind/V
seeing/V
new/J
crises/N
arise/V
./.
###/###
Environmental/J
groups/N
would/M
soon/R
go/V
out/I
of/I
business/N
were/V
they/P
not/R
able/J
to/T
send/V
out/I
mailings/N
describing/V
the/D
latest/J
threat/N
and/C
asking/V
for/I
money/N
to/T
fight/V
it/P
./.
###/###
University/N
professors/N
and/C
consultants/N
with/I
scientific/J
credentials/N
saw/V
a/D
huge/J
market/N
for/I
their/P
services/N
evaporate/V
when/W
price/N
decontrol/N
destroyed/V
the/D
energy/N
crisis/N
and/C
thus/R
the/D
demand/N
for/I
``/`
alternative/N
energy/N
./.
''/'
###/###
They/P
needed/V
new/J
crises/N
to/T
generate/V
new/J
grants/N
and/C
contracts/N
./.
###/###
In/I
other/J
words/N
,/,
environmentalism/N
has/V
created/V
a/D
whole/J
set/N
of/I
vested/V
interests/N
that/W
fare/V
better/R
when/W
there/E
are/V
many/J
problems/N
than/I
when/W
there/E
are/V
few/J
./.
###/###
That/D
tends/V
to/T
tilt/V
the/D
public/J
debate/N
toward/I
``/`
solutions/N
''/'
even/R
when/W
some/D
of/I
the/D
most/R
knowledgeable/J
scientists/N
are/V
skeptical/J
about/I
the/D
seriousness/N
of/I
the/D
threats/N
and/C
the/D
insistence/N
of/I
urgency/N
./.
###/###
There/E
is/V
an/D
element/N
of/I
make-work/N
involved/V
./.
###/###
Consumers/N
pay/V
the/D
bill/N
for/I
all/P
this/D
in/I
the/D
price/N
of/I
a/D
refrigerator/N
or/C
an/D
air-conditioned/J
car/N
./.
###/###
If/I
they/P
were/V
really/R
getting/V
insurance/N
against/I
environmental/J
disaster/N
,/,
the/D
price/N
would/M
be/V
cheap/J
./.
###/###
But/C
if/I
there/E
is/V
no/D
impending/J
threat/N
,/,
it/P
can/M
get/V
to/T
be/V
very/R
expensive/J
./.
###/###
but/C
worries/N
about/I
1990/C
./.
###/###
With/I
most/J
legislatures/N
adjourned/V
for/I
the/D
year/N
,/,
small/J
business/N
is/V
tallying/V
its/P
scorecard/N
./.
###/###
Much/R
of/I
its/P
attention/N
was/V
spent/V
fighting/V
organized/V
labor/N
's/P
initiatives/N
on/I
issues/N
the/D
small-business/N
community/N
traditionally/R
opposes/V
--/:
from/I
raising/V
state/N
minimum/N
wage/N
levels/N
to/T
mandating/V
benefits/N
in/I
health/N
plans/N
./.
###/###
While/I
results/N
were/V
mixed/V
in/I
many/J
states/N
,/,
``/`
small/J
business/N
got/V
by/I
fairly/R
well/R
,/,
''/'
concludes/V
Don/N
L./N
Robinson/N
,/,
associate/J
director/N
of/I
the/D
National/N
Federation/N
of/I
Independent/N
Business/N
,/,
the/D
largest/J
small-business/N
organization/N
./.
###/###
Five/C
states/N
--/:
Oregon/N
,/,
Rhode/N
Island/N
,/,
New/N
Hampshire/N
,/,
Iowa/N
and/C
Wisconsin/N
--/:
passed/V
bills/N
to/T
boost/V
the/D
minimum/J
wage/N
,/,
but/C
measures/N
in/I
19/C
other/J
states/N
were/V
defeated/V
./.
###/###
Oregon/N
's/P
rate/N
will/M
rise/V
to/T
$/$
4.75/C
an/D
hour/N
,/,
the/D
nation/N
's/P
highest/J
,/,
in/I
Jan./N
1/C
,/,
1991/C
./.
###/###
Iowa/N
's/P
will/M
be/V
the/D
second/J
highest/J
--/:
at/I
$/$
4.65/C
an/D
hour/N
in/I
January/N
1992/C
--/:
but/C
small-business/N
lobbyists/N
won/V
an/D
exclusion/N
for/I
tiny/J
concerns/N
and/C
a/D
lower/J
training/N
rate/N
./.
###/###
In/I
17/C
central/J
states/N
,/,
one/C
small-business/N
count/N
shows/V
lawmakers/N
adopted/V
only/R
three/C
of/I
46/C
bills/N
mandating/V
health/N
coverage/N
or/C
parental/J
leave/N
./.
###/###
The/D
Illinois/N
Legislature/N
narrowly/R
passed/V
a/D
parental-leave/J
bill/N
,/,
which/W
Gov./N
James/N
Thompson/N
vetoed/V
,/,
and/C
Iowa/N
and/C
Tennessee/N
amended/V
laws/N
to/T
require/V
that/I
employers/N
pay/V
for/I
breast-cancer/N
exams/N
./.
###/###
Small/J
business/N
is/V
bracing/V
for/I
an/D
avalanche/N
of/I
similar/J
proposals/N
next/I
year/N
./.
###/###
``/`
Those/D
kinds/N
of/I
issues/N
always/R
keep/V
coming/V
back/R
,/,
''/'
says/V
Robert/N
Beckwith/N
,/,
who/W
manages/V
the/D
Illinois/N
Chamber/N
of/I
Commerce/N
's/P
small-business/N
office/N
./.
###/###
DESPITE/I
VICTORIES/N
this/D
year/N
,/,
small/J
business/N
fears/N
losing/V
parental-leave/J
war/N
./.
###/###
Only/R
two/C
states/N
--/:
Vermont/N
and/C
Washington/N
--/:
this/D
year/N
joined/V
five/C
others/N
requiring/V
private/J
employers/N
to/T
grant/V
leaves/N
of/I
absence/N
to/T
employees/N
with/I
newborn/J
or/C
adopted/V
infants/N
./.
###/###
Similar/J
proposals/N
were/V
defeated/V
in/I
at/I
least/J
15/C
other/J
states/N
./.
###/###
But/C
small/J
business/N
,/,
which/W
generally/R
detests/V
government-mandated/J
benefits/N
,/,
has/V
taken/V
note/N
of/I
the/D
growing/V
number/N
of/I
close/J
votes/N
./.
###/###
``/`
It/P
's/V
just/R
a/D
matter/N
of/I
time/N
before/I
the/D
tide/N
turns/V
,/,
''/'
says/V
one/C
Midwestern/J
lobbyist/N
./.
###/###
Consequently/R
,/,
small/J
business/N
is/V
taking/V
more/R
``/`
pro-active/J
''/'
steps/N
to/T
counter/V
mandated/V
leaves/N
./.
###/###
In/I
Pennsylvania/N
,/,
small/J
businesses/N
are/V
pushing/V
for/I
a/D
voluntary/J
alternative/N
;/:
they/P
favor/V
a/D
commission/N
that/W
would/M
develop/V
sample/N
leave/N
policies/N
that/I
employers/N
could/M
adopt/V
./.
###/###
They/P
also/R
support/V
a/D
tax/N
credit/N
for/I
employers/N
to/T
offset/V
the/D
cost/N
of/I
hiring/V
and/C
training/V
workers/N
who/W
temporarily/R
replace/V
employees/N
on/I
parental/J
leave/N
./.
###/###
In/I
1990/C
,/,
the/D
issue/N
is/V
expected/V
to/T
be/V
especially/R
close/J
in/I
Alaska/N
,/,
California/N
,/,
Michigan/N
,/,
New/N
York/N
,/,
Pennsylvania/N
and/C
Illinois/N
./.
###/###
``/`
We/P
'll/M
be/V
playing/V
a/D
lot/N
of/I
defense/N
,/,
especially/R
in/I
the/D
Midwest/N
and/C
Northeast/N
,/,
''/'
says/V
Jim/N
Buente/N
of/I
the/D
NFIB/N
./.
###/###
IN/I
LOS/N
ANGELES/N
,/,
more/R
small/J
businesses/N
ponder/V
adopting/V
a/D
child-care/J
policy/N
./.
###/###
Triggering/V
the/D
re-examination/N
is/V
a/D
recent/J
city/N
council/N
decision/N
to/T
give/V
preference/N
in/I
letting/V
city/N
contracts/N
to/T
suppliers/N
with/I
a/D
stated/V
policy/N
on/I
child/N
care/N
for/I
their/P
employees/N
./.
###/###
The/D
preferential/J
treatment/N
even/R
applies/V
to/T
awarding/V
small/J
contracts/N
under/I
$/$
25,000/C
and/C
consulting/V
and/C
temporary/J
services/N
--/:
which/W
often/R
go/V
to/T
the/D
smaller/J
concerns/N
./.
###/###
Firms/N
are/V
permitted/V
wide/J
flexibility/N
in/I
the/D
child-care/J
arrangements/N
they/P
provide/V
./.
###/###
Council/N
member/N
Joy/N
Picus/N
,/,
the/D
measure/N
's/P
chief/N
advocate/N
,/,
considers/V
it/P
part/N
of/I
a/D
``/`
pro-family/N
policy/N
''/'
that/W
makes/V
Los/N
Angeles/N
a/D
leader/N
in/I
``/`
humanizing/V
the/D
workplace/N
./.
''/'
###/###
NOVEMBER/N
BALLOTS/N
will/M
contain/V
few/J
referendum/N
or/C
initiative/N
issues/N
that/W
especially/R
affect/V
small/J
business/N
./.
###/###
In/I
San/N
Francisco/N
,/,
small/J
businesses/N
are/V
urging/V
passage/N
of/I
a/D
local/J
initiative/N
to/T
build/V
a/D
new/J
$/$
95/C
million/C
downtown/N
baseball/N
stadium/N
;/:
they/P
believe/V
it/P
will/M
spur/V
retail/J
sales/N
and/C
hotel-restaurant/N
business/N
./.
###/###
But/C
in/I
Washington/N
state/N
,/,
small/J
business/N
generally/R
opposes/V
an/D
initiative/N
to/T
boost/V
spending/V
on/I
children/N
's/P
programs/N
by/I
$/$
360/C
million/C
,/,
fearing/V
the/D
state/N
's/P
7.8/C
%/N
sales/N
tax/N
will/M
be/V
raised/V
to/T
finance/V
the/D
outlays/N
./.
###/###
DIALING/N
DOLLARS/N
:/:
Small/J
businesses/N
in/I
suburban/J
Chicago/N
are/V
discovering/V
that/I
an/D
area-code/J
switch/N
Nov./N
11/C
--/:
to/T
708/C
from/I
the/D
familiar/J
312/C
--/:
wo/M
n't/R
be/V
without/I
some/D
costs/N
as/I
they/P
alter/V
stationery/N
,/,
among/I
other/J
things/N
,/,
and/C
notify/V
customers/N
./.
###/###
Wessels/N
&/C
Pautsch/N
,/,
a/D
small/J
St./N
Charles/N
law/N
firm/N
,/,
plans/V
to/T
mail/V
500/C
customers/N
a/D
list/N
of/I
its/P
lawyers/N
'/P
new/J
phone/N
and/C
fax/N
numbers/N
as/R
well/R
as/I
updated/V
Rolodex/N
cards/N
./.
###/###
But/C
many/J
owners/N
plan/V
to/T
practice/V
frugality/N
--/:
crossing/V
out/I
the/D
old/J
code/N
and/C
writing/V
in/I
the/D
new/J
one/C
until/I
their/P
stock/N
runs/V
out/I
./.
###/###
Even/R
print-shop/N
operator/N
Clay/N
Smith/N
of/I
Naperville/N
wo/M
n't/R
discard/V
his/P
old/J
supply/N
./.
###/###
-LRB-/-
He/P
reports/V
his/P
business/N
is/V
up/I
slightly/R
from/I
customers/N
replacing/V
old/J
stock/N
./.
-RRB-/-
###/###
CALIFORNIA/N
,/,
A/D
TREND-SETTER/N
in/I
franchising/V
rules/N
,/,
stirs/V
a/D
controversy/N
./.
###/###
With/I
some/D
new/J
rules/N
,/,
state/N
officials/N
say/V
they/P
made/V
it/P
easier/J
--/:
and/C
faster/J
--/:
to/T
sell/V
new/J
franchises/N
whose/W
terms/N
stray/V
from/I
those/D
in/I
state-registered/J
contracts/N
./.
###/###
Previously/R
,/,
regulators/N
insisted/V
that/I
franchisers/N
pre-register/V
such/J
changes/N
with/I
the/D
state/N
--/:
a/D
costly/J
process/N
taking/V
at/I
least/J
six/C
weeks/N
./.
###/###
Now/R
some/D
negotiated/V
sales/N
that/W
meet/V
a/D
series/N
of/I
tests/N
do/V
n't/R
have/V
to/T
be/V
pre-registered/V
./.
###/###
For/I
instance/N
,/,
franchisers/N
no/R
longer/R
must/M
pre-register/V
sales/N
to/T
aspiring/V
franchisees/N
who/W
qualify/V
as/I
``/`
sophisticated/J
purchasers/N
./.
''/'
###/###
Such/J
buyers/N
must/M
have/V
a/D
minimum/J
net/J
worth/N
of/I
$/$
1/C
million/C
,/,
$/$
200,000/C
annual/J
income/N
,/,
or/C
recent/J
experience/N
in/I
the/D
business/N
area/N
of/I
the/D
franchise/N
being/V
sold/V
./.
###/###
But/C
critics/N
consider/V
the/D
changes/N
regressive/J
./.
###/###
Lewis/N
G./N
Rudnick/N
,/,
a/D
Chicago/N
lawyer/N
who/W
represents/V
franchisers/N
,/,
contends/V
California/N
is/V
narrowly/R
limiting/V
--/:
rather/R
than/I
expanding/V
--/:
opportunities/N
for/I
negotiating/V
sales/N
./.
###/###
He/P
argues/V
California/N
regulators/N
historically/R
have/V
misinterpreted/V
their/P
law/N
--/:
and/C
he/P
says/V
negotiated/V
sales/N
that/W
are/V
n't/R
pre-registered/J
have/V
been/V
legal/J
all/D
along/I
./.
###/###
San/N
Francisco/N
lawyer/N
Timothy/N
H./N
Fine/N
,/,
who/W
represents/V
franchisees/N
,/,
insists/V
California/N
's/P
cautiousness/N
helps/V
protect/V
franchisees/N
from/I
crafty/J
sales/N
negotiators/N
who/W
push/V
unlawful/J
clauses/N
./.
###/###
SMALL/N
TALK/N
:/:
A/D
new/J
Maryland/N
law/N
frees/V
store/N
owners/N
of/I
liability/N
if/I
a/D
customer/N
trips/N
or/C
otherwise/R
gets/V
hurt/N
on/I
the/D
way/N
to/T
the/D
restroom/N
./.
###/###
Only/R
4/C
%/N
of/I
Missouri/N
small/J
businesses/N
surveyed/V
say/V
they/P
've/V
tested/V
an/D
employee/N
or/C
applicant/N
for/I
drug/N
or/C
alcohol/N
use/N
./.
###/###
By/I
52%-36/C
%/N
,/,
Tennessee/N
NFIB/N
members/N
favor/V
laws/N
to/T
limit/V
foreign/J
ownership/N
of/I
land/N
and/C
facilities/N
in/I
the/D
state/N
./.
###/###
About/I
400,000/C
commuters/N
trying/V
to/T
find/V
their/P
way/N
through/I
the/D
Bay/N
area/N
's/P
quake-torn/J
transportation/N
system/N
wedged/V
cheek-to-jowl/R
into/I
subways/N
,/,
sat/V
in/I
traffic/N
jams/N
on/I
major/J
freeways/N
or/C
waited/V
forlornly/R
for/I
buses/N
yesterday/N
./.
###/###
In/I
other/J
words/N
,/,
it/P
was/V
a/D
better-than-average/J
Manhattan/N
commute/N
./.
###/###
City/N
officials/N
feared/V
widespread/J
gridlock/N
on/I
the/D
first/J
day/N
that/I
normal/J
business/N
operations/N
were/V
resumed/V
following/V
last/J
Tuesday/N
's/P
earthquake/N
./.
###/###
The/D
massive/J
temblor/N
,/,
which/W
killed/V
at/I
least/J
61/C
people/N
,/,
severed/V
the/D
Bay/N
Bridge/N
,/,
a/D
major/J
artery/N
to/T
the/D
east/J
,/,
and/C
closed/V
most/J
ramps/N
leading/V
to/T
and/C
from/I
Highway/N
101/C
,/,
the/D
biggest/J
artery/N
to/T
the/D
south/N
./.
###/###
It/P
will/M
take/V
several/J
weeks/N
to/T
repair/V
the/D
bridge/N
,/,
and/C
several/J
months/N
to/T
repair/V
some/D
of/I
the/D
101/C
connections/N
./.
###/###
But/C
in/I
spite/N
of/I
a/D
wind-driven/J
rainstorm/N
,/,
gridlock/N
never/R
materialized/V
,/,
mainly/R
because/I
the/D
Bay/N
Area/N
Rapid/N
Transit/N
subway/N
system/N
carried/V
50/C
%/N
more/J
passengers/N
than/I
normal/J
./.
###/###
For/I
the/D
first/J
time/N
in/I
memory/N
,/,
it/P
was/V
standing-room/N
only/R
in/I
BART/N
's/P
sleek/J
,/,
modern/J
railcars/N
./.
###/###
Moreover/R
,/,
the/D
two/C
main/J
bridges/N
still/R
connecting/V
San/N
Francisco/N
with/I
the/D
East/N
Bay/N
did/V
n't/R
charge/N
tolls/N
,/,
allowing/V
traffic/N
to/T
zip/V
through/I
without/I
stopping/V
./.
###/###
Officials/N
also/R
suspect/V
that/D
traffic/N
benefited/V
from/I
steps/N
by/I
major/J
employers/N
to/T
get/V
workers/N
to/T
come/V
in/I
at/I
odd/J
hours/N
,/,
or/C
that/I
many/J
workers/N
are/V
still/R
staying/V
at/I
home/N
./.
###/###
Many/J
commuters/N
who/W
normally/R
drove/V
across/I
the/D
Bay/N
Bridge/N
,/,
which/W
is/V
shut/V
down/I
for/I
several/J
weeks/N
because/I
of/I
damage/N
to/T
one/C
span/N
,/,
actually/R
may/M
have/V
reached/V
work/N
a/D
bit/N
faster/R
on/I
BART/N
yesterday/N
,/,
provided/V
they/P
could/M
find/V
a/D
parking/N
space/N
at/I
the/D
system/N
's/P
jammed/V
stations/N
./.
###/###
In/I
the/D
best/J
of/I
times/N
,/,
the/D
Bay/N
Bridge/N
is/V
the/D
worst/J
commute/N
in/I
the/D
region/N
,/,
often/R
experiencing/V
back-ups/N
of/I
20/C
to/T
30/C
minutes/N
or/C
more/J
./.
###/###
Not/R
that/I
getting/V
into/I
town/N
was/V
easy/J
./.
###/###
Storm/N
flooding/N
caused/V
back-ups/N
on/I
the/D
freeway/N
,/,
and/C
many/J
commuters/N
had/V
to/T
find/V
rides/N
to/T
BART/N
's/P
stations/N
,/,
because/I
parking/N
lots/N
were/V
full/J
before/I
dawn/N
./.
###/###
Bus/N
schedules/N
were/V
sometimes/R
in/I
disarray/N
,/,
stranding/V
commuters/N
such/J
as/I
Marilyn/N
Sullivan/N
./.
###/###
Her/P
commute/N
from/I
Petaluma/N
,/,
Calif./N
,/,
normally/R
takes/V
an/D
hour/N
and/C
15/C
minutes/N
,/,
via/I
the/D
Golden/N
Gate/N
Bridge/N
,/,
which/W
connects/V
San/N
Francisco/N
with/I
the/D
North/N
Bay/N
area/N
./.
###/###
Yesterday/N
,/,
she/P
was/V
still/R
waiting/V
at/I
a/D
bus/N
stop/N
after/I
three/C
hours/N
,/,
trying/V
to/T
transfer/V
to/T
a/D
bus/N
going/V
to/T
the/D
financial/J
district/N
./.
###/###
``/`
It/P
's/V
worse/J
than/I
I/P
thought/V
,/,
''/'
she/P
said/V
./.
###/###
``/`
I/P
do/V
n't/R
know/V
where/W
all/P
the/D
buses/N
are/V
./.
''/'
###/###
But/C
while/I
traffic/N
was/V
heavy/J
early/J
in/I
the/D
commute/N
over/I
the/D
Golden/N
Gate/N
,/,
by/I
8/C
a.m./N
it/P
already/R
had/V
thinned/V
out/I
./.
###/###
``/`
It/P
's/V
one/C
of/I
the/D
smoothest/J
commutes/N
I/P
've/V
ever/R
had/V
,/,
''/'
said/V
Charles/N
Catania/N
,/,
an/D
insurance/N
broker/N
on/I
the/D
bus/N
from/I
Mill/N
Valley/N
in/I
Marin/N
County/N
./.
###/###
``/`
It/P
looks/V
like/I
a/D
holiday/N
./.
###/###
I/P
think/V
a/D
lot/N
of/I
people/N
got/V
scared/V
and/C
stayed/V
home/N
./.
''/'
###/###
However/R
,/,
a/D
spokeswoman/N
for/I
BankAmerica/N
Corp./N
said/V
yesterday/N
's/P
absenteeism/N
at/I
the/D
bank/N
holding/V
company/N
was/V
no/R
greater/J
than/I
on/I
an/D
average/J
day/N
./.
###/###
At/I
the/D
San/N
Mateo/N
Bridge/N
,/,
which/W
connects/V
the/D
San/N
Francisco/N
peninsula/N
with/I
the/D
East/N
Bay/N
,/,
police/N
were/V
surprised/V
at/I
the/D
speed/N
with/I
which/W
traffic/N
moved/V
./.
###/###
``/`
Everybody/N
pretty/R
much/R
pitched/V
in/I
and/C
cooperated/V
,/,
''/'
said/V
Stan/N
Perez/N
,/,
a/D
sergeant/N
with/I
the/D
California/N
Highway/N
Patrol/N
./.
###/###
There/E
were/V
many/J
indications/N
that/I
the/D
new/J
work/N
hours/N
implemented/V
by/I
major/J
corporations/N
played/V
a/D
big/J
role/N
./.
###/###
The/D
Golden/N
Gate/N
handled/V
as/I
many/J
cars/N
as/R
normally/R
yesterday/N
,/,
but/C
over/I
four/C
hours/N
rather/R
than/I
the/D
usual/J
two-hour/J
crush/N
./.
###/###
Bechtel/N
Group/N
Inc./N
,/,
the/D
giant/N
closely/R
held/V
engineering/N
concern/N
,/,
says/V
it/P
has/V
instituted/V
a/D
6/C
a.m./N
to/T
8/C
p.m./N
flextime/N
arrangement/N
,/,
whereby/W
employees/N
may/M
select/V
any/D
eight-hour/J
period/N
during/I
those/D
hours/N
to/T
go/V
to/T
work/V
./.
###/###
Of/I
Bechtel/N
's/P
17,500/C
employees/N
,/,
about/I
4,000/C
work/N
in/I
San/N
Francisco/N
--/:
one-third/N
of/I
them/P
commuting/V
from/I
stricken/J
East/N
Bay/N
./.
###/###
Pacific/N
Gas/N
&/C
Electric/N
Co./N
is/V
offering/V
its/P
6,000/C
San/N
Francisco/N
employees/N
a/D
two-tier/J
flextime/N
schedule/N
--/:
either/C
6/C
a.m./N
to/T
2/C
p.m./N
or/C
10/C
a.m./N
to/T
6/C
p.m/N
./.
###/###
The/D
flextime/N
may/M
cut/V
by/I
almost/R
a/D
third/J
the/D
number/N
of/I
PG&E/N
employees/N
working/V
conventional/J
9-5/C
hours/N
,/,
a/D
spokesman/N
says/V
./.
###/###
Some/D
of/I
the/D
utility/N
's/P
employees/N
may/M
opt/V
for/I
a/D
four-day/J
workweek/N
,/,
10/C
hours/N
a/D
day/N
,/,
to/T
cut/V
the/D
commute/N
by/I
20/C
%/N
./.
###/###
At/I
Pacific/N
Telesis/N
Group/N
,/,
flextime/N
is/V
left/V
up/I
to/T
individual/J
working/V
groups/N
,/,
because/I
some/D
of/I
the/D
telephone/N
company/N
's/P
employees/N
must/M
be/V
on-site/J
during/I
normal/J
business/N
hours/N
,/,
a/D
spokeswoman/N
says/V
./.
###/###
Some/D
individuals/N
went/V
to/T
some/D
lengths/N
on/I
their/P
own/J
to/T
avoid/V
the/D
anticipated/V
gridlock/N
./.
###/###
One/C
senior/J
vice/N
president/N
at/I
Bechtel/N
said/V
he/P
got/V
up/I
at/I
3/C
a.m./N
to/T
drive/V
into/I
San/N
Francisco/N
from/I
the/D
East/N
Bay/N
./.
###/###
But/C
transportation/N
officials/N
worry/V
that/I
such/J
extraordinary/J
measures/N
and/C
cooperation/N
may/M
not/R
last/V
./.
###/###
Although/I
one/C
transportation/N
official/N
said/V
drivers/N
who/W
did/V
n't/R
use/V
car/N
pools/N
were/V
committing/V
``/`
an/D
anti-social/J
act/N
,/,
''/'
about/I
two-thirds/N
of/I
the/D
motorists/N
crossing/V
the/D
Golden/N
Gate/N
were/V
alone/R
,/,
compared/V
with/I
the/D
normal/J
70/C
%/N
rate/N
./.
###/###
And/C
some/D
commuters/N
,/,
relieved/V
by/I
the/D
absence/N
of/I
gridlock/N
,/,
were/V
planning/V
to/T
return/V
to/T
their/P
old/J
ways/N
./.
###/###
Garry/N
Kasparov/N
went/V
to/T
combat/V
Sunday/N
with/I
the/D
world/N
's/P
most/R
advanced/V
chess/N
computer/N
and/C
kicked/V
it/P
around/I
--/:
symbolically/R
,/,
anyway/R
--/:
like/I
an/D
old/J
tin/N
can/N
./.
###/###
Playing/V
black/J
in/I
the/D
first/J
game/N
,/,
the/D
human/J
champion/N
maneuvered/V
Deep/N
Thought/N
,/,
known/V
for/I
its/P
attacking/V
prowess/N
,/,
into/I
a/D
totally/R
passive/J
position/N
./.
###/###
Then/R
he/P
unleashed/V
his/P
own/J
,/,
unstoppable/J
,/,
attack/N
./.
###/###
And/C
in/I
the/D
second/J
game/N
,/,
with/I
Mr./N
Kasparov/N
advancing/V
ferociously/R
as/I
white/J
,/,
D.T./N
offered/V
feeble/J
resistance/N
and/C
lost/V
even/R
faster/R
./.
###/###
Well/U
,/,
mankind/N
can/M
rest/V
easier/J
for/I
now/R
./.
###/###
Though/I
almost/R
everybody/N
at/I
the/D
playing/V
site/N
had/V
been/V
looking/V
for/I
the/D
26-year-old/J
Soviet/N
to/T
beat/V
the/D
Pennsylvania-based/J
computer/N
,/,
he/P
gave/V
the/D
machine/N
a/D
far/R
worse/J
drubbing/N
than/I
many/J
expected/V
./.
###/###
And/C
when/W
Mr./N
Kasparov/N
strode/V
into/I
the/D
playing/V
hall/N
,/,
he/P
called/V
the/D
outcome/N
./.
###/###
As/I
if/I
he/P
were/V
Iron/N
Mike/N
,/,
about/I
to/T
enter/V
the/D
ring/N
with/I
a/D
98-pound/J
weakling/N
,/,
he/P
declared/V
:/:
``/`
I/P
'll/M
be/V
able/J
to/T
beat/V
any/D
computer/N
for/I
the/D
next/J
five/C
years/N
./.
''/'
###/###
His/P
strategy/N
against/I
D.T./N
was/V
based/V
on/I
a/D
thorough/J
study/N
of/I
dozens/N
of/I
its/P
games/N
,/,
he/P
said/V
,/,
including/V
its/P
notorious/J
whippings/N
of/I
the/D
grandmasters/N
Bent/N
Larsen/N
of/I
Denmark/N
and/C
Robert/N
Byrne/N
of/I
the/D
U.S./N
Mr./N
Kasparov/N
was/V
underwhelmed/V
./.
###/###
``/`
The/D
computer/N
's/P
mind/N
is/V
too/R
straight/J
,/,
too/R
primitive/J
,/,
''/'
lacking/V
the/D
intuition/N
and/C
creativity/N
needed/V
to/T
reach/V
the/D
top/N
,/,
he/P
said/V
./.
###/###
The/D
champion/N
apparently/R
was/V
not/R
worried/V
at/I
all/D
about/I
D.T./N
's/P
strong/J
points/N
./.
###/###
Its/P
chief/N
builder/N
,/,
Taiwan-born/J
Feng-hsiung/N
Hsu/N
,/,
nicknamed/V
his/P
brainchild/N
``/`
the/D
Weasel/N
''/'
for/I
its/P
tactical/J
flair/N
at/I
wriggling/V
out/I
of/I
horrible/J
positions/N
./.
###/###
D.T./N
also/R
has/V
a/D
prodigious/J
and/C
flawless/J
memory/N
,/,
is/V
utterly/R
fearless/J
,/,
and/C
could/M
n't/R
be/V
distracted/V
by/I
the/D
sexy/J
nude/J
sculptures/N
spread/V
around/I
the/D
playing/N
hall/N
,/,
in/I
the/D
New/N
York/N
Academy/N
of/I
Art/N
./.
###/###
In/I
fact/N
,/,
D.T./N
never/R
left/V
home/N
,/,
Carnegie/N
Mellon/N
University/N
in/I
Pittsburgh/N
,/,
but/C
communicated/V
with/I
its/P
human/J
handlers/N
by/I
telephone/N
link/N
./.
###/###
They/P
conceded/V
that/I
the/D
odds/N
favored/V
Mr./N
Kasparov/N
,/,
but/C
they/P
put/V
their/P
hope/N
in/I
D.T./N
's/P
recently/R
enhanced/V
capacity/N
for/I
examining/V
positions/N
--/:
up/I
to/T
a/D
million/C
per/I
second/J
,/,
from/I
720,000/C
./.
###/###
But/C
the/D
handlers/N
mistakenly/R
stuck/V
with/I
silicon/N
chips/N
;/:
they/P
needed/V
kryptonite/N
./.
###/###
This/D
became/V
apparent/J
as/I
game/N
one/C
,/,
a/D
Sicilian/N
Defense/N
by/I
Mr./N
Kasparov/N
,/,
proceeded/V
./.
###/###
No/D
human/N
can/M
examine/V
millions/N
of/I
moves/N
,/,
but/C
Mr./N
Kasparov/N
,/,
using/V
his/P
ineffably/R
powerful/J
brain/N
,/,
consistently/R
found/V
very/R
good/J
ones/N
./.
###/###
After/I
eight/C
moves/N
by/I
each/D
side/N
,/,
the/D
board/N
was/V
the/D
same/J
as/I
in/I
a/D
game/N
in/I
which/W
Nigel/N
Short/N
of/I
Great/N
Britain/N
fought/V
the/D
champion/N
to/T
a/D
draw/N
in/I
1980/C
./.
###/###
But/C
the/D
computer/N
did/V
n't/R
play/V
Mr./N
Short/N
's/P
ninth/J
move/N
,/,
a/D
key/J
pawn/N
thrust/N
,/,
and/C
its/P
position/N
deteriorated/V
rapidly/R
./.
###/###
Instead/R
of/I
castling/V
,/,
a/D
standard/J
measure/N
to/T
safeguard/V
the/D
king/N
,/,
D.T./N
made/V
a/D
second-rate/J
rook/N
maneuver/N
at/I
move/N
13/C
;/:
then/R
it/P
put/V
a/D
knight/N
offside/N
on/I
move/N
16/C
./.
###/###
``/`
Only/R
two/C
classes/N
of/I
minds/N
would/M
think/V
of/I
this/D
--/:
very/R
weak/J
human/J
players/N
,/,
and/C
computers/N
,/,
''/'
said/V
Edmar/N
Mednis/N
,/,
the/D
expert/J
commentator/N
for/I
the/D
match/N
,/,
which/W
was/V
attended/V
by/I
hundreds/N
of/I
chess/N
fans/N
./.
###/###
By/I
move/N
21/C
,/,
D.T./N
had/V
fallen/V
into/I
a/D
deep/J
positional/J
trap/N
./.
###/###
It/P
allowed/V
Mr./N
Kasparov/N
to/T
exchange/V
his/P
dark-squared/J
bishop/N
for/I
one/C
of/I
D.T./N
's/P
knights/N
./.
###/###
Bishops/N
usually/R
are/V
worth/J
slightly/R
more/J
than/I
knights/N
,/,
but/C
in/I
this/D
case/N
Mr./N
Kasparov/N
was/V
left/V
with/I
a/D
very/R
dangerous/J
knight/N
and/C
D.T./N
's/P
surviving/V
bishop/N
was/V
reduced/V
to/T
passivity/N
./.
###/###
Indeed/R
,/,
it/P
looked/V
more/J
like/I
a/D
pawn/N
,/,
a/D
``/`
tall/J
pawn/N
,/,
''/'
as/I
spectators/N
snidely/R
put/V
it/P
./.
###/###
Consistently/R
,/,
D.T./N
was/V
over-optimistic/J
about/I
its/P
chances/N
,/,
which/W
it/P
continually/R
sized/V
up/I
,/,
in/I
numerical/J
form/N
./.
###/###
When/W
most/J
spectators/N
thought/V
its/P
position/N
hopeless/J
,/,
the/D
computer/N
thought/V
it/P
was/V
only/R
,/,
in/I
effect/N
,/,
one-half/N
of/I
a/D
pawn/N
down/I
./.
###/###
Such/J
evaluations/N
met/V
with/I
derision/N
,/,
and/C
kept/V
the/D
machine/N
from/I
resigning/V
as/R
soon/R
as/I
humans/N
would/M
have/V
--/:
prompting/V
more/J
derision/N
./.
###/###
While/I
D.T./N
shuffled/V
its/P
king/N
back/R
and/C
forth/R
in/I
a/D
defensive/J
crouch/N
,/,
Mr./N
Kasparov/N
maneuvered/V
the/D
knight/N
to/T
a/D
dominant/J
outpost/N
./.
###/###
He/P
also/R
launched/V
a/D
kingside/N
storm/N
,/,
sacrificing/V
a/D
pawn/N
to/T
denude/V
D.T./N
's/P
king/N
./.
###/###
No/D
amount/N
of/I
weasling/V
could/M
have/V
saved/V
this/D
game/N
for/I
D.T./N
###/###
A/D
piece/N
down/I
,/,
the/D
computer/N
resigned/V
./.
###/###
Now/R
,/,
with/I
the/D
crowd/N
in/I
the/D
analysis/N
room/N
smelling/V
figurative/J
blood/N
,/,
the/D
only/J
question/N
seemed/V
to/T
be/V
how/W
fast/J
Mr./N
Kasparov/N
could/M
win/V
game/N
two/C
./.
###/###
With/I
the/D
advantage/N
of/I
playing/V
white/J
-LRB-/-
which/W
moves/V
first/J
-RRB-/-
,/,
Mr./N
Kasparov/N
followed/V
up/I
cleverly/R
against/I
the/D
computer/N
's/P
defense/N
,/,
a/D
Queen/N
's/P
Gambit/N
Accepted/N
./.
###/###
As/R
early/R
as/I
move/N
six/C
,/,
Mr./N
Kasparov/N
deviated/V
from/I
a/D
well-known/J
sequence/N
of/I
moves/N
,/,
developing/V
a/D
knight/N
instead/R
of/I
making/V
a/D
standard/J
bishop/N
attack/N
against/I
the/D
computer/N
's/P
advanced/V
knight/N
./.
###/###
This/D
left/V
the/D
computer/N
with/I
a/D
broader/J
range/N
of/I
plausible/J
replies/N
--/:
and/C
it/P
immediately/R
blundered/V
by/I
moving/V
a/D
queenside/N
pawn/N
,/,
to/T
the/D
neglect/N
of/I
kingside/N
development/N
./.
###/###
``/`
In/I
a/D
new/J
position/N
just/R
after/I
the/D
opening/N
,/,
a/D
computer/N
will/M
have/V
serious/J
problems/N
,/,
''/'
Mr./N
Kasparov/N
said/V
later/R
./.
###/###
In/I
such/J
positions/N
,/,
he/P
explained/V
,/,
``/`
you/P
have/V
to/T
create/V
something/N
new/J
,/,
and/C
the/D
computer/N
is/V
n't/R
able/J
to/T
do/V
that/D
right/R
now/R
./.
''/'
###/###
After/I
only/R
11/C
moves/N
for/I
each/D
side/N
,/,
the/D
computer/N
's/P
position/N
was/V
shaky/J
./.
###/###
Greedily/R
,/,
it/P
grabbed/V
a/D
pawn/N
,/,
at/I
the/D
cost/N
of/I
facing/V
a/D
brutal/J
attack/N
./.
###/###
And/C
when/W
a/D
defensive/J
move/N
was/V
called/V
for/I
,/,
D.T./N
passed/V
up/I
an/D
obvious/J
pawn/N
move/N
and/C
instead/R
exposed/V
its/P
queen/N
to/T
immediate/J
tactical/J
threats/N
./.
###/###
Mr./N
Kasparov/N
remarked/V
later/R
that/I
``/`
even/R
a/D
weak/J
club/N
player/N
''/'
would/M
have/V
avoided/V
the/D
queen/N
move/N
./.
###/###
Now/R
,/,
after/I
only/R
a/D
dozen/N
moves/N
,/,
spectators/N
were/V
looking/V
for/I
a/D
mating/N
combination/N
./.
###/###
On/I
a/D
demonstration/N
board/N
,/,
emcee/N
Shelby/N
Lyman/N
showed/V
a/D
quick/J
kill/N
initiated/V
by/I
a/D
knight/N
sacrifice/N
;/:
no/D
spectator/N
refuted/V
this/D
line/N
of/I
play/N
./.
###/###
Mr./N
Kasparov/N
's/P
continuation/N
was/V
slower/J
but/C
,/,
in/I
the/D
end/N
,/,
just/R
as/I
deadly/J
./.
###/###
He/P
won/V
D.T./N
's/P
queen/N
for/I
two/C
minor/J
pieces/N
and/C
two/C
pawns/N
--/:
not/R
enough/R
compensation/N
,/,
in/I
this/D
position/N
,/,
to/T
give/V
the/D
computer/N
much/J
hope/N
./.
###/###
In/I
a/D
hopeless/J
position/N
,/,
the/D
computer/N
resigned/V
rather/R
than/I
make/V
its/P
37th/J
move/N
./.
###/###
And/C
Mr./N
Kasparov/N
,/,
to/T
cheers/N
and/C
applause/N
,/,
marched/V
back/R
into/I
the/D
analysis/N
room/N
./.
###/###
``/`
In/I
both/D
games/N
I/P
got/V
exactly/R
what/W
I/P
wanted/V
,/,
''/'
he/P
said/V
./.
###/###
What/W
he/P
had/V
demonstrated/V
,/,
he/P
added/V
,/,
is/V
that/I
there/E
's/V
more/J
to/T
chess/N
than/I
sheer/J
calculation/N
./.
###/###
Undeterred/J
,/,
D.T./N
's/P
handlers/N
vowed/V
to/T
press/V
on/I
./.
###/###
Indeed/R
,/,
three/C
of/I
them/P
will/M
be/V
building/V
a/D
successor/N
machine/N
for/I
International/N
Business/N
Machines/N
Corp/N
./.
###/###
Promises/V
Feng-hsiung/N
Hsu/N
:/:
``/`
In/I
three/C
years/N
we/P
'll/M
mount/V
a/D
better/J
challenge/N
./.
''/'
###/###
Mr./N
Tannenbaum/N
is/V
a/D
reporter/N
in/I
the/D
Journal/N
's/P
New/N
York/N
bureau/N
./.
###/###
Reaching/V
for/I
that/D
extra/J
bit/N
of/I
yield/N
can/M
be/V
a/D
big/J
mistake/N
--/:
especially/R
if/I
you/P
do/V
n't/R
understand/V
what/W
you/P
're/V
investing/V
in/I
./.
###/###
Just/R
ask/V
Richard/N
Blumenfeld/N
,/,
a/D
New/N
Jersey/N
dentist/N
who/W
considers/V
himself/P
``/`
a/D
reasonably/R
sophisticated/J
investor/N
./.
''/'
###/###
In/I
May/N
1986/C
,/,
Dr./N
Blumenfeld/N
gave/V
Merrill/N
Lynch/N
&/C
Co./N
about/I
$/$
40,000/C
for/I
a/D
federally/R
insured/V
certificate/N
of/I
deposit/N
offering/V
an/D
effective/J
yield/N
of/I
more/R
than/I
9/C
%/N
./.
###/###
``/`
It/P
was/V
a/D
time/N
when/W
interest/N
rates/N
came/V
down/I
very/R
rapidly/R
,/,
''/'
Dr./N
Blumenfeld/N
recalls/V
./.
###/###
Yields/N
on/I
five-year/J
CDs/N
at/I
major/J
banks/N
were/V
averaging/V
about/I
7.45/C
%/N
,/,
and/C
10-year/J
Treasury/N
notes/N
were/V
paying/V
less/R
than/I
8/C
%/N
./.
###/###
The/D
CD/N
seemed/V
like/I
a/D
great/J
deal/N
./.
###/###
But/C
nearly/R
3/C
years/N
later/R
,/,
Merrill/N
says/V
the/D
investment/N
is/V
worth/J
about/I
$/$
43,000/C
--/:
an/D
amount/N
that/W
represents/V
an/D
annual/J
return/N
of/I
just/R
over/I
2/C
%/N
on/I
Dr./N
Blumenfeld/N
's/P
$/$
40,000/C
./.
###/###
The/D
problem/N
is/V
that/I
the/D
CD/N
he/P
bought/V
for/I
a/D
retirement/N
plan/N
was/V
n't/R
a/D
plain/J
vanilla/N
CD/N
./.
###/###
Instead/R
,/,
his/P
Merrill/N
broker/N
put/V
him/P
in/I
a/D
zero-coupon/J
CD/N
,/,
which/W
is/V
sold/V
at/I
a/D
deep/J
discount/N
to/T
its/P
face/N
value/N
./.
###/###
The/D
difference/N
between/I
the/D
price/N
and/C
the/D
face/N
value/N
payable/J
at/I
maturity/N
is/V
the/D
investor/N
's/P
return/N
./.
###/###
More/R
important/J
,/,
the/D
CD/N
was/V
purchased/V
on/I
the/D
secondary/J
,/,
or/C
resale/N
,/,
market/N
./.
###/###
Because/I
the/D
CD/N
had/V
an/D
effective/J
yield/N
of/I
13.4/C
%/N
when/W
it/P
was/V
issued/V
in/I
1984/C
,/,
and/C
interest/N
rates/N
in/I
general/J
had/V
declined/V
sharply/R
since/I
then/R
,/,
part/N
of/I
the/D
price/N
Dr./N
Blumenfeld/N
paid/V
was/V
a/D
premium/N
--/:
an/D
additional/J
amount/N
on/I
top/N
of/I
the/D
CD/N
's/P
base/N
value/N
plus/C
accrued/V
interest/N
that/W
represented/V
the/D
CD/N
's/P
increased/V
market/N
value/N
./.
###/###
Now/R
the/D
thrift/N
that/W
issued/V
the/D
CD/N
is/V
insolvent/J
,/,
and/C
Dr./N
Blumenfeld/N
has/V
learned/V
to/T
his/P
surprise/N
that/I
the/D
premium/N
is/V
n't/R
insured/V
under/I
federal/J
deposit/N
insurance/N
./.
###/###
The/D
tip-off/N
came/V
when/W
he/P
opened/V
a/D
recent/J
Merrill/N
Lynch/N
statement/N
and/C
found/V
that/I
the/D
CD/N
's/P
``/`
estimated/V
current/J
market/N
value/N
''/'
had/V
plummeted/V
by/I
$/$
9,000/C
in/I
a/D
month/N
./.
###/###
Several/J
phone/N
calls/N
and/C
a/D
visit/N
to/T
his/P
broker/N
's/P
office/N
later/R
,/,
the/D
dentist/N
found/V
out/I
that/I
the/D
$/$
9,000/C
drop/N
represented/V
the/D
current/J
value/N
of/I
the/D
premium/N
he/P
paid/V
when/W
he/P
bought/V
the/D
CD/N
,/,
and/C
that/I
the/D
amount/N
was/V
n't/R
insured/V
./.
###/###
``/`
This/D
is/V
one/C
thing/N
I/P
was/V
never/R
aware/J
of/I
,/,
''/'
he/P
says/V
./.
###/###
He/P
assumed/V
that/I
principal/N
and/C
interest/N
were/V
``/`
fully/R
insured/V
up/I
to/T
$/$
100,000/C
,/,
''/'
he/P
adds/V
./.
###/###
Dr./N
Blumenfeld/N
is/V
n't/R
unique/J
./.
###/###
Especially/R
at/I
times/N
like/I
these/D
,/,
when/W
declining/V
rates/N
make/V
it/P
hard/R
for/I
investors/N
to/T
get/V
yields/N
they/P
have/V
come/V
to/T
expect/V
,/,
too/R
many/J
people/N
chase/V
the/D
promise/N
of/I
above-market/J
returns/N
without/I
fully/R
appreciating/V
the/D
risk/N
./.
###/###
``/`
Yield/N
greed/N
often/R
gets/V
in/I
the/D
way/N
of/I
understanding/V
things/N
,/,
''/'
says/V
John/N
Markese/N
,/,
research/N
director/N
of/I
the/D
American/N
Association/N
of/I
Individual/N
Investors/N
,/,
a/D
Chicago-based/J
educational/J
group/N
./.
###/###
``/`
The/D
biggest/J
problem/N
we/P
have/V
is/V
that/I
investors/N
realize/V
,/,
after/I
the/D
fact/N
,/,
that/I
they/P
did/V
n't/R
understand/V
what/W
they/P
were/V
investing/V
in/I
./.
''/'
###/###
Dr./N
Blumenfeld/N
concedes/V
he/P
did/V
n't/R
fully/R
understand/V
what/W
he/P
was/V
buying/V
./.
###/###
He/P
says/V
that/I
he/P
knew/V
he/P
was/V
getting/V
a/D
zero-coupon/J
CD/N
and/C
that/I
he/P
had/V
previously/R
invested/V
in/I
TIGRs/N
-LRB-/-
Treasury/N
Income/N
Growth/N
Receipts/N
-RRB-/-
,/,
a/D
type/N
of/I
zero-coupon/J
Treasury/N
security/N
sold/V
by/I
Merrill/N
Lynch/N
./.
###/###
But/C
he/P
says/V
he/P
did/V
n't/R
understand/V
he/P
was/V
buying/V
the/D
CD/N
on/I
the/D
secondary/J
market/N
,/,
and/C
he/P
contends/V
his/P
broker/N
never/R
fully/R
explained/V
the/D
risks/N
./.
###/###
The/D
broker/N
,/,
Thomas/N
Beairsto/N
of/I
Merrill/N
Lynch/N
's/P
Morristown/N
,/,
N.J./N
,/,
office/N
,/,
refuses/V
to/T
discuss/V
the/D
matter/N
with/I
a/D
reporter/N
,/,
referring/V
inquiries/N
to/T
Merrill/N
Lynch/N
officials/N
in/I
New/N
York/N
./.
###/###
Those/D
officials/N
say/V
there/E
was/V
full/J
disclosure/N
of/I
the/D
risks/N
in/I
a/D
``/`
fact/N
sheet/N
''/'
sent/V
to/T
all/D
CD/N
investors/N
with/I
their/P
confirmation/N
of/I
sale/N
./.
###/###
The/D
fact/N
sheet/N
,/,
dated/V
April/N
1986/C
,/,
says/V
on/I
page/N
three/C
:/:
``/`
If/I
the/D
price/N
paid/V
for/I
a/D
CD/N
purchased/V
in/I
the/D
secondary/J
market.../:
is/V
higher/J
than/I
the/D
accreted/V
value/N
in/I
the/D
case/N
of/I
zero-coupon/J
CDs/N
,/,
the/D
difference.../:
is/V
not/R
insured/V
./.
###/###
Computations/N
involving/V
zero-coupon/J
CDs/N
are/V
more/R
complicated/V
and/C
you/P
should/M
discuss/V
any/D
questions/N
you/P
may/M
have/V
with/I
your/P
financial/J
consultant/N
./.
''/'
###/###
Dr./N
Blumenfeld/N
says/V
he/P
does/V
n't/R
remember/V
the/D
paragraph/N
about/I
premiums/N
in/I
the/D
fact/N
sheet/N
he/P
received/V
and/C
did/V
n't/R
realize/V
part/N
of/I
what/W
he/P
paid/V
was/V
a/D
premium/N
./.
###/###
``/`
I/P
assumed/V
I/P
was/V
buying/V
a/D
CD/N
as/I
a/D
CD/N
,/,
''/'
he/P
says/V
./.
###/###
Nevertheless/R
,/,
Merrill/N
Lynch/N
has/V
agreed/V
that/I
if/I
the/D
thrift/N
that/W
issued/V
Dr./N
Blumenfeld/N
's/P
CD/N
,/,
Peoples/N
Heritage/N
Federal/N
Savings/N
&/C
Loan/N
Association/N
in/I
Salina/N
,/,
Kan./N
,/,
is/V
liquidated/V
and/C
the/D
CD/N
terminated/V
,/,
the/D
brokerage/N
firm/N
would/M
cover/V
the/D
premium/N
Dr./N
Blumenfeld/N
paid/V
./.
###/###
-LRB-/-
Federal/N
deposit/N
insurance/N
would/M
pay/V
principal/N
and/C
interest/N
accrued/V
to/T
the/D
date/N
of/I
liquidation/N
,/,
to/T
a/D
maximum/N
of/I
$/$
100,000/C
./.
-RRB-/-
###/###
``/`
It/P
's/V
not/R
a/D
blanket/N
commitment/N
,/,
it/P
's/V
a/D
case-by-case/J
situation/N
,/,
''/'
says/V
Albert/N
Disposti/N
,/,
a/D
managing/V
director/N
of/I
Merrill/N
Lynch/N
Money/N
Markets/N
Inc/N
./.
###/###
``/`
There/E
's/V
a/D
question/N
whether/I
brokers/N
at/I
the/D
time/N
were/V
fully/R
aware/J
''/'
of/I
the/D
risks/N
./.
###/###
``/`
We/P
were/V
n't/R
sure/J
that/I
full/J
disclosure/N
,/,
as/I
we/P
wanted/V
it/P
,/,
was/V
being/V
made/V
./.
''/'
###/###
Merrill/N
Lynch/N
says/V
it/P
's/V
impossible/J
to/T
estimate/V
how/W
many/J
investors/N
are/V
in/I
Dr./N
Blumenfeld/N
's/P
situation/N
,/,
although/I
it/P
says/V
the/D
firm/N
has/V
received/V
only/R
one/C
other/J
complaint/N
about/I
premiums/N
on/I
the/D
secondary/J
market/N
in/I
three/C
years/N
./.
###/###
Merrill/N
Lynch/N
now/R
provides/V
credit/N
rating/N
information/N
about/I
the/D
institutions/N
whose/W
CDs/N
it/P
sells/V
,/,
which/W
it/P
did/V
n't/R
provide/V
in/I
1986/C
./.
###/###
Zero-coupon/J
CDs/N
are/V
only/R
a/D
small/J
portion/N
of/I
the/D
$/$
1/C
trillion-plus/N
in/I
CDs/N
outstanding/J
,/,
and/C
those/D
purchased/V
on/I
the/D
secondary/J
market/N
are/V
an/D
even/R
smaller/J
part/N
of/I
the/D
total/N
./.
###/###
Merrill/N
Lynch/N
estimates/V
that/I
fewer/J
than/I
10/C
financial/J
institutions/N
currently/R
issue/V
zero-coupon/J
CDs/N
./.
###/###
Still/R
,/,
there/E
are/V
several/J
billion/C
dollars/N
of/I
zero-coupon/J
CDs/N
with/I
various/J
maturities/N
outstanding/J
./.
###/###
Because/I
of/I
the/D
tax/N
consequences/N
of/I
zero-coupon/J
investments/N
--/:
income/N
tax/N
is/V
payable/J
in/I
the/D
year/N
interest/N
is/V
accrued/V
,/,
although/I
interest/N
is/V
n't/R
actually/R
paid/V
until/I
maturity/N
--/:
zero-coupon/J
CDs/N
are/V
usually/R
sold/V
for/I
tax-advantaged/J
accounts/N
to/T
finance/V
things/N
like/I
retirement/N
and/C
children/N
's/P
education/N
./.
###/###
Most/J
zero-coupon/J
CDs/N
are/V
in/I
maturities/N
of/I
six/C
to/T
nine/C
years/N
,/,
and/C
they/P
usually/R
double/V
in/I
value/N
by/I
maturity/N
./.
###/###
But/C
investors/N
who/W
bought/V
zero-coupon/J
CDs/N
in/I
the/D
secondary/J
market/N
are/V
n't/R
the/D
only/J
ones/N
who/W
may/M
be/V
surprised/V
to/T
learn/V
the/D
full/J
amount/N
of/I
their/P
investments/N
is/V
n't/R
insured/V
./.
###/###
People/N
who/W
paid/V
a/D
premium/N
for/I
standard/J
CDs/N
purchased/V
on/I
the/D
secondary/J
market/N
could/M
also/R
find/V
that/I
those/D
premiums/N
are/V
n't/R
insured/V
if/I
the/D
institutions/N
that/W
issued/V
the/D
CDs/N
failed/V
./.
###/###
However/R
,/,
those/D
premiums/N
are/V
usually/R
far/R
smaller/J
than/I
on/I
zero-coupon/J
CDs/N
,/,
and/C
the/D
simpler/J
pricing/N
structure/N
of/I
a/D
standard/J
CD/N
makes/V
it/P
more/R
apparent/J
when/W
a/D
premium/N
is/V
paid/V
./.
###/###
Whatever/W
the/D
case/N
,/,
a/D
Merrill/N
Lynch/N
spokesman/N
emphasizes/V
,/,
investors/N
should/M
n't/R
have/V
to/T
worry/V
about/I
the/D
uninsured/J
premium/N
issue/N
,/,
unless/I
the/D
bank/N
or/C
thrift/N
that/W
issued/V
the/D
CD/N
is/V
closed/V
and/C
its/P
deposits/N
paid/V
off/I
before/I
maturity/N
or/C
transferred/V
to/T
another/D
institution/N
at/I
a/D
lower/J
rate/N
./.
###/###
Dr./N
Blumenfeld/N
says/V
he/P
's/V
satisfied/V
that/I
his/P
problem/N
has/V
been/V
resolved/V
./.
###/###
And/C
he/P
says/V
he/P
's/V
learned/V
a/D
lesson/N
:/:
``/`
You/P
always/R
have/V
to/T
watch/V
out/I
for/I
yourself/P
./.
###/###
No/D
one/N
else/R
will/M
watch/V
out/I
for/I
you/P
./.
###/###
Americans/N
are/V
drinking/V
less/J
,/,
but/C
young/J
professionals/N
from/I
Australia/N
to/T
West/N
Germany/N
are/V
rushing/V
to/T
buy/V
premium-brand/J
American/J
vodka/N
,/,
brandy/N
and/C
other/J
spirits/N
./.
###/###
In/I
particular/J
,/,
many/J
are/V
snubbing/V
the/D
scotch/N
preferred/V
by/I
their/P
parents/N
and/C
opting/V
for/I
bourbon/N
,/,
the/D
sweet/J
firewater/N
from/I
the/D
Kentucky/N
countryside/N
./.
###/###
With/I
U.S./N
liquor/N
consumption/N
declining/V
steadily/R
,/,
many/J
American/J
producers/N
are/V
stepping/V
up/I
their/P
marketing/N
efforts/N
abroad/R
./.
###/###
And/C
those/D
efforts/N
are/V
paying/V
off/I
:/:
Spirits/N
exports/N
jumped/V
more/J
than/I
2/C
times/N
to/T
$/$
157.2/C
million/C
in/I
1988/C
from/I
$/$
59.8/C
million/C
in/I
1983/C
,/,
according/V
to/T
the/D
Distilled/N
Spirits/N
Council/N
of/I
the/D
U.S./N
,/,
a/D
trade/N
group/N
./.
###/###
``/`
Spirits/N
companies/N
now/R
view/V
themselves/P
as/I
global/J
marketers/N
,/,
''/'
says/V
Michael/N
Bellas/N
,/,
president/N
of/I
Beverage/N
Marketing/N
Corp./N
,/,
a/D
research/N
and/C
consulting/V
firm/N
./.
###/###
``/`
If/I
you/P
want/V
to/T
be/V
a/D
player/N
,/,
you/P
have/V
to/T
be/V
in/I
America/N
,/,
Europe/N
and/C
the/D
Far/N
East/N
./.
###/###
You/P
must/M
have/V
world-class/J
brands/N
,/,
a/D
long-term/J
perspective/N
and/C
deep/J
pockets/N
./.
''/'
###/###
The/D
internationalization/N
of/I
the/D
industry/N
has/V
been/V
hastened/V
by/I
foreign/J
companies/N
'/P
acquisitions/N
of/I
many/J
U.S./N
producers/N
./.
###/###
In/I
recent/J
years/N
,/,
for/I
example/N
,/,
Grand/N
Metropolitan/N
PLC/N
of/I
Britain/N
acquired/V
Heublein/N
Inc./N
,/,
while/I
another/D
British/J
company/N
,/,
Guinness/N
PLC/N
,/,
took/V
over/I
United/N
Distillers/N
Group/N
and/C
Schenley/N
Industries/N
Inc/N
./.
###/###
But/C
the/D
shift/N
has/V
also/R
been/V
fueled/V
by/I
necessity/N
./.
###/###
While/I
premium-brand/J
spirits/N
like/I
Smirnoff/N
vodka/N
and/C
Jack/N
Daniel/N
's/P
whiskey/N
are/V
riding/V
high/R
in/I
the/D
U.S./N
,/,
domestic/J
spirits/N
consumption/N
fell/V
15/C
%/N
to/T
141.1/C
million/C
cases/N
in/I
1988/C
from/I
166/C
million/C
cases/N
in/I
1979/C
./.
###/###
In/I
recent/J
years/N
,/,
growth/N
has/V
come/V
in/I
the/D
foreign/J
markets/N
./.
###/###
U.S./N
brandy/N
exports/N
more/J
than/I
doubled/V
last/J
year/N
to/T
360,000/C
proof/N
gallons/N
,/,
a/D
standard/J
industry/N
measure/N
,/,
according/V
to/T
Jobson/N
Beverage/N
Alcohol/N
Group/N
,/,
an/D
industry/N
association/N
./.
###/###
Exports/N
of/I
rum/N
surged/V
54/C
%/N
to/T
814,000/C
proof/N
gallons/N
./.
###/###
Mexico/N
is/V
the/D
biggest/J
importer/N
of/I
both/D
rum/N
and/C
brandy/N
from/I
the/D
U.S/N
./.
###/###
Japan/N
,/,
the/D
world/N
's/P
third-largest/J
liquor/N
market/N
after/I
the/D
U.S./N
and/C
Britain/N
,/,
helped/V
American/J
companies/N
in/I
April/N
when/W
it/P
lowered/V
its/P
tax/N
on/I
imported/V
spirits/N
and/C
levied/V
a/D
tax/N
on/I
many/J
domestic/J
products/N
./.
###/###
California/J
wineries/N
,/,
benefiting/V
from/I
lowered/V
trade/N
barriers/N
and/C
federal/J
marketing/N
subsidies/N
,/,
are/V
expanding/V
aggressively/R
into/I
Japan/N
,/,
as/R
well/R
as/I
Canada/N
and/C
Great/N
Britain/N
./.
###/###
In/I
Japan/N
,/,
the/D
wineries/N
are/V
promoting/V
their/P
products/N
'/P
Pacific/J
roots/N
and/C
courting/V
restaurant/N
and/C
hotel/N
chefs/N
,/,
whose/W
recommendations/N
carry/V
weight/N
./.
###/###
In/I
Australia/N
,/,
Britain/N
,/,
Canada/N
and/C
Greece/N
,/,
Brown-Forman/N
Corp./N
has/V
increased/V
its/P
marketing/N
of/I
Southern/N
Comfort/N
Liqueur/N
./.
###/###
Using/V
cinema/N
,/,
television/N
and/C
print/N
ads/N
,/,
the/D
company/N
pitches/V
Southern/N
Comfort/N
as/I
a/D
grand/J
old/J
drink/N
of/I
the/D
antebellum/J
American/N
South/N
./.
###/###
The/D
biggest/J
foreign/J
inroads/N
,/,
though/R
,/,
have/V
been/V
made/V
by/I
bourbon/N
./.
###/###
While/I
U.S./N
makers/N
of/I
vodka/N
,/,
rum/N
and/C
other/J
spirits/N
compete/V
against/I
powerhouses/N
abroad/R
,/,
trade/N
agreements/N
prohibit/V
any/D
other/J
country/N
from/I
making/V
bourbon/N
./.
###/###
-LRB-/-
All/D
bourbon/N
comes/V
from/I
Kentucky/N
,/,
though/I
Jack/N
Daniel/N
's/P
Tennessee/N
whiskey/N
often/R
is/V
counted/V
as/I
bourbon/N
because/I
of/I
similarity/N
of/I
taste/N
./.
-RRB-/-
###/###
Moreover/R
,/,
just/R
as/I
vodka/N
has/V
acquired/V
an/D
upscale/N
image/N
in/I
the/D
U.S./N
,/,
bourbon/N
has/V
become/V
fashionable/N
in/I
many/J
foreign/J
countries/N
,/,
a/D
uniquely/R
American/J
product/N
tied/V
to/T
frontier/N
folklore/N
./.
###/###
How/W
was/V
the/D
West/N
won/V
?/.
###/###
With/I
a/D
six-shooter/N
in/I
one/C
hand/N
and/C
bourbon/N
in/I
the/D
other/J
./.
###/###
``/`
We/P
imagine/V
with/I
bourbon/N
the/D
Wild/N
West/N
,/,
Western/J
motion/N
pictures/N
and/C
gunmen/N
appearing/V
,/,
''/'
says/V
Kenji/N
Kishimoto/N
,/,
vice/N
president/N
of/I
Suntory/N
International/N
Corp./N
,/,
a/D
division/N
of/I
Suntory/N
Ltd./N
,/,
Japan/N
's/P
largest/J
liquor/N
company/N
./.
###/###
Suntory/N
distributes/V
Brown-Forman/N
bourbons/N
in/I
Japan/N
./.
###/###
Bourbon/N
makes/V
up/I
just/R
1/C
%/N
of/I
world-wide/J
spirits/N
consumption/N
,/,
but/C
it/P
represented/V
57/C
%/N
of/I
U.S./N
liquor/N
exports/V
last/J
year/N
,/,
according/V
to/T
Jobson/N
;/:
no/D
other/J
category/N
had/V
more/R
than/I
19/C
%/N
./.
###/###
Big/N
U.S./N
distillers/N
are/V
fiercely/R
vying/V
for/I
this/D
market/N
,/,
which/W
grew/V
to/T
$/$
77/C
million/C
last/J
year/N
from/I
$/$
33/C
million/C
in/I
1987/C
,/,
according/V
to/T
government/N
figures/N
./.
###/###
Jim/N
Beam/N
Brands/N
Co./N
,/,
a/D
division/N
of/I
American/N
Brands/N
Inc./N
,/,
is/V
the/D
leading/V
exporter/N
of/I
bourbon/N
and/C
produces/V
10/C
other/J
types/N
of/I
liquor/N
./.
###/###
The/D
company/N
says/V
it/P
will/M
increase/V
its/P
international/J
advertising/N
35/C
%/N
in/I
1990/C
,/,
with/I
bourbon/N
representing/V
most/J
of/I
that/D
amount/N
./.
###/###
Guinness/N
's/P
Schenley/N
Industries/N
unit/N
has/V
increased/V
its/P
TV/N
advertising/N
in/I
Japan/N
and/C
has/V
built/V
partnerships/N
with/I
duty-free/J
shops/N
throughout/I
Asia/N
,/,
enabling/V
it/P
to/T
install/V
prominent/J
counter/N
displays/N
./.
###/###
The/D
company/N
's/P
I.W./N
Harper/N
brand/N
is/V
the/D
leading/V
bourbon/N
in/I
Japan/N
,/,
with/I
40/C
%/N
of/I
the/D
market/N
./.
###/###
Bourbon/N
exporters/N
have/V
succeeded/V
in/I
Japan/N
where/W
other/J
industries/N
have/V
failed/V
,/,
avoiding/V
cultural/J
hitches/N
in/I
marketing/N
and/C
distribution/N
by/I
allying/V
themselves/P
with/I
local/J
agents/N
./.
###/###
Jim/N
Beam/N
Brands/N
has/V
a/D
distribution/N
partnership/N
with/I
Nikka/N
Whiskey/N
Co./N
,/,
a/D
distiller/N
./.
###/###
Seagram/N
Co./N
,/,
which/W
exports/V
Four/N
Roses/N
bourbon/N
,/,
has/V
such/P
a/D
link/N
with/I
Kirin/N
Brewery/N
Co/N
./.
###/###
Some/D
bourbon/N
makers/N
advertise/V
abroad/R
as/I
they/P
do/V
at/I
home/N
./.
###/###
To/T
promote/V
Jack/N
Daniel/N
's/P
overseas/N
,/,
Brown-Forman/N
uses/V
the/D
same/J
photos/N
of/I
front/J
porches/N
from/I
Lynchburg/N
,/,
Va./N
,/,
and/C
avuncular/J
old/J
men/N
in/I
overalls/N
and/C
hightops/N
./.
###/###
Jim/N
Beam/N
print/N
ads/N
,/,
however/R
,/,
strike/V
different/J
chords/N
in/I
different/J
countries/N
./.
###/###
In/I
Australia/N
,/,
land/N
of/I
the/D
outback/N
,/,
a/D
snapshot/N
of/I
Jim/N
Beam/N
lies/V
on/I
a/D
strip/N
of/I
hand-tooled/J
leather/N
./.
###/###
West/N
Germans/N
get/V
glitz/N
,/,
with/I
bourbon/N
in/I
the/D
foreground/N
and/C
a/D
posh/J
Beverly/N
Hills/N
hotel/N
in/I
the/D
background/N
./.
###/###
Ads/N
for/I
England/N
are/V
artsy/J
and/C
irreverent/J
./.
###/###
One/C
ad/N
features/V
a/D
huge/J
robot/N
carrying/V
a/D
voluptuous/J
woman/N
in/I
a/D
faint/J
./.
###/###
The/D
tagline/N
:/:
``/`
I/P
only/R
asked/V
if/I
she/P
wanted/V
a/D
Jim/N
Beam/N
./.
###/###
Capital/N
Inc./N
's/P
net/J
income/N
rose/V
29/C
%/N
on/I
a/D
modest/J
9/C
%/N
increase/N
in/I
revenue/N
in/I
the/D
third/J
quarter/N
,/,
mainly/R
on/I
strong/J
advertising/N
demand/N
at/I
its/P
ABC/N
television/N
network/N
operation/N
./.
###/###
Demand/N
for/I
ads/N
also/R
rose/V
at/I
the/D
eight/C
TV/N
stations/N
Capital/N
Cities/N
owns/V
and/C
at/I
its/P
80%-owned/J
ESPN/N
sports/N
cable/N
channel/N
./.
###/###
The/D
broadcast/N
and/C
publishing/V
company/N
reported/V
net/N
climbed/V
to/T
$/$
80.8/C
million/C
,/,
or/C
$/$
4.56/C
a/D
share/N
,/,
from/I
$/$
62.6/C
million/C
,/,
or/C
$/$
3.55/C
a/D
share/N
,/,
in/I
the/D
year-earlier/J
period/N
./.
###/###
Revenue/N
reached/V
$/$
1.1/C
billion/C
from/I
$/$
1.01/C
billion/C
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/N
trading/N
yesterday/N
,/,
Capital/N
Cities/N
closed/V
at/I
$/$
558.50/C
,/,
down/I
$/$
5/C
./.
###/###
The/D
broadcasting/N
unit/N
reported/V
operating/V
profit/N
of/I
$/$
134.9/C
million/C
,/,
up/I
18/C
%/N
from/I
the/D
year-earlier/J
$/$
114.3/C
million/C
./.
###/###
Publishing/N
reported/V
operating/V
profit/N
was/V
$/$
33.3/C
million/C
,/,
nearly/R
flat/J
with/I
the/D
year-before/J
$/$
33/C
million/C
./.
###/###
Revenue/N
at/I
the/D
broadcasting/N
unit/N
,/,
consisting/V
of/I
the/D
network/N
and/C
stations/N
,/,
advanced/V
11/C
%/N
,/,
to/T
$/$
838/C
million/C
from/I
$/$
752.9/C
million/C
./.
###/###
The/D
publishing/N
unit/N
reported/V
revenue/N
edged/V
up/I
2.6/C
%/N
to/T
$/$
263.2/C
million/C
from/I
$/$
256.6/C
million/C
./.
###/###
Chairman/N
Thomas/N
S./N
Murphy/N
cited/V
Capital/N
Cities/N
'/P
nine/C
daily/J
newspapers/N
in/I
explaining/V
most/J
of/I
the/D
gain/N
./.
###/###
The/D
parent/N
also/R
publishes/V
weeklies/N
,/,
shopping/V
guides/N
and/C
specialty/N
magazines/N
./.
###/###
For/I
1989/C
's/P
first/J
nine/C
months/N
,/,
Capital/N
Cities/N
net/J
income/N
grew/V
23/C
%/N
to/T
$/$
303.7/C
million/C
,/,
or/C
$/$
16.97/C
a/D
share/N
,/,
from/I
$/$
246.9/C
million/C
,/,
or/C
$/$
14.43/C
a/D
share/N
./.
###/###
Revenue/N
eased/V
0.3/C
%/N
to/T
$/$
3.45/C
billion/C
from/I
$/$
3.46/C
billion/C
./.
###/###
Last/J
week/N
,/,
ABC/N
unseated/J
General/N
Electric/N
Co./N
's/P
National/N
Broadcasting/N
Co./N
unit/N
as/I
the/D
No./N
1/C
network/N
,/,
as/I
rated/V
by/I
A.C./N
Nielsen/N
Co/N
./.
###/###
ABC/N
has/V
four/C
shows/N
in/I
the/D
top/N
10/C
,/,
including/V
the/D
top/J
show/N
,/,
``/`
Roseanne/N
./.
###/###
As/I
part/N
of/I
a/D
previously/R
announced/V
transaction/N
,/,
Federal/N
Mogul/N
Corp./N
has/V
bought/V
approximately/R
565,000/C
shares/N
of/I
its/P
common/J
stock/N
from/I
Nortek/N
Inc./N
at/I
$/$
23.50/C
a/D
share/N
./.
###/###
Nortek/N
has/V
agreed/V
not/R
to/T
acquire/V
any/D
securities/N
of/I
Federal-Mogul/N
for/I
10/C
years/N
and/C
not/R
to/T
influence/V
company/N
affairs/N
during/I
that/D
period/N
./.
###/###
Weyerhaeuser/N
Co./N
said/V
it/P
sold/V
its/P
wall-paneling/J
business/N
to/T
an/D
affiliate/N
of/I
one/C
of/I
Indonesia/N
's/P
largest/J
wood-products/N
firms/N
./.
###/###
Terms/N
of/I
the/D
transaction/N
were/V
n't/R
disclosed/V
./.
###/###
Weyerhaeuser/N
said/V
its/P
paneling/N
business/N
employs/V
about/I
300/C
workers/N
at/I
two/C
facilities/N
in/I
Chesapeake/N
,/,
Va./N
,/,
and/C
Hancock/N
,/,
Vt/N
./.
###/###
Manville/N
Corp./N
said/V
it/P
will/M
build/V
a/D
$/$
24/C
million/C
power/N
plant/N
to/T
provide/V
electricity/N
to/T
its/P
Igaras/N
pulp/N
and/C
paper/N
mill/N
in/I
Brazil/N
./.
###/###
The/D
company/N
said/V
the/D
plant/N
will/M
ensure/V
that/I
it/P
has/V
adequate/J
energy/N
for/I
the/D
mill/N
and/C
will/M
reduce/V
the/D
mill/N
's/P
energy/N
costs/N
./.
###/###
Manville/N
said/V
it/P
expects/V
the/D
plant/N
to/T
begin/V
operating/V
at/I
the/D
end/N
of/I
1991/C
./.
###/###
Housing/N
and/C
Urban/N
Development/N
Secretary/N
Jack/N
Kemp/N
called/V
on/I
the/D
Federal/N
Reserve/N
System/N
to/T
lower/V
interest/N
rates/N
./.
###/###
In/I
a/D
speech/N
to/T
the/D
Mortgage/N
Bankers/N
Association/N
,/,
Mr./N
Kemp/N
broke/V
the/D
administration/N
's/P
public/J
silence/N
on/I
the/D
Fed/N
and/C
complained/V
that/I
``/`
interest/N
rates/N
are/V
too/R
high/J
./.
''/'
###/###
``/`
I/P
am/V
convinced/V
that/I
a/D
monetary/J
policy/N
for/I
this/D
country/N
that/W
would/M
return/V
interest/N
rates/N
to/T
the/D
historical/J
level/N
of/I
4/C
%/N
or/C
5/C
%/N
would/M
have/V
not/R
only/R
an/D
immediate/J
impact/N
on/I
housing/N
starts/N
,/,
the/D
housing/N
stock/N
,/,
our/P
industry/N
in/I
America/N
,/,
the/D
refurbishing/N
of/I
our/P
industrial/J
system/N
,/,
it/P
would/M
help/V
the/D
Third/N
World/N
economies/N
considerably/R
and/C
it/P
would/M
particularly/R
have/V
a/D
favorable/J
impact/N
upon/I
our/P
budget/N
deficit/N
,/,
''/'
Mr./N
Kemp/N
said/V
./.
###/###
The/D
Fed/N
recently/R
eased/V
credit/N
by/I
lowering/V
the/D
bellwether/N
federal/J
funds/N
interest/N
rate/N
to/T
8/C
%/N
from/I
about/I
9/C
%/N
./.
###/###
Bush/N
administration/N
officials/N
say/V
inflation/N
is/V
under/I
control/N
./.
###/###
With/I
economic/J
growth/N
slowing/N
,/,
they/P
say/V
they/P
believe/V
the/D
Fed/N
should/M
ease/V
credit/N
even/R
further/R
./.
###/###
But/C
for/I
the/D
most/J
part/N
,/,
officials/N
have/V
avoided/V
expressing/V
those/D
views/N
in/I
public/N
,/,
fearing/V
they/P
would/M
unnecessarily/R
antagonize/V
the/D
Fed/N
./.
###/###
McDonald/N
's/P
Corp./N
said/V
third-quarter/J
earnings/N
rose/V
14/C
%/N
on/I
a/D
hefty/J
sales/N
gain/N
,/,
but/C
domestic/J
franchisees/N
apparently/R
did/V
n't/R
partake/V
of/I
the/D
improvement/N
./.
###/###
The/D
world/N
's/P
largest/J
fast-food/N
chain/N
said/V
net/J
income/N
rose/V
to/T
$/$
217.9/C
million/C
,/,
or/C
59/C
cents/N
a/D
share/N
,/,
from/I
$/$
191.3/C
million/C
,/,
or/C
51/C
cents/N
a/D
share/N
,/,
a/D
year/N
ago/I
./.
###/###
In/I
the/D
latest/J
period/N
,/,
the/D
company/N
had/V
an/D
average/N
of/I
370.8/C
million/C
shares/N
,/,
5.6/C
million/C
shares/N
below/I
last/J
year/N
's/P
level/N
./.
###/###
Revenue/N
rose/V
12/C
%/N
to/T
$/$
1.63/C
billion/C
from/I
$/$
1.46/C
billion/C
./.
###/###
Systemwide/J
sales/N
,/,
which/W
include/V
sales/N
at/I
franchisee/N
as/R
well/R
as/I
company-owned/J
stores/N
,/,
totaled/V
$/$
4.59/C
billion/C
compared/V
with/I
$/$
4.2/C
billion/C
./.
###/###
But/C
sales/N
for/I
U.S./N
franchisees/N
were/V
flat/J
at/I
best/R
on/I
a/D
per-store/J
basis/N
despite/I
weak/J
1988/C
figures/N
./.
###/###
Compared/V
with/I
the/D
first/J
nine/C
months/N
of/I
last/J
year/N
,/,
average/J
franchisee/N
store/N
sales/N
this/D
year/N
were/V
down/I
nearly/R
$/$
3,200/C
,/,
reflecting/V
a/D
fierce/J
discounting/V
war/N
among/I
fast-food/N
chains/N
./.
###/###
Since/I
McDonald/N
's/P
menu/N
prices/N
rose/V
this/D
year/N
,/,
the/D
actual/J
decline/N
may/M
have/V
been/V
more/J
./.
###/###
McDonald/N
's/P
closed/V
at/I
$/$
31.375/C
,/,
up/I
$/$
1/C
,/,
in/I
New/N
York/N
Stock/N
Exchange/N
composite/N
trading/N
yesterday/N
./.
###/###
While/I
franchisees/N
were/V
having/V
a/D
tough/J
time/N
holding/V
sales/N
,/,
McDonald/N
's/P
company-operated/J
stores/N
posted/V
hefty/J
gains/N
for/I
the/D
nine/C
months/N
,/,
with/I
sales/N
per/I
company-operated/J
unit/N
rising/V
$/$
20,000/C
./.
###/###
One/C
analyst/N
noted/V
that/I
the/D
company/N
often/R
has/V
better/J
store/N
locations/N
than/I
do/V
its/P
franchisees/N
,/,
thus/R
aiding/V
promotional/J
efforts/N
./.
###/###
On/I
average/N
in/I
the/D
latest/J
nine/C
months/N
,/,
company-operated/J
units/N
in/I
the/D
U.S./N
had/V
$/$
90,552/C
more/R
in/I
sales/N
than/I
did/V
franchised/V
outlets/N
./.
###/###
There/E
are/V
more/R
than/I
three/C
times/N
as/I
many/J
franchised/V
domestic/J
outlets/N
as/I
there/E
are/V
company/N
stores/N
./.
###/###
Profit/N
margins/N
at/I
U.S./N
company-owned/J
stores/N
in/I
the/D
quarter/N
were/V
up/I
nearly/R
1/C
%/N
,/,
which/W
the/D
company/N
attributed/V
in/I
part/N
to/T
lower/J
food/N
costs/N
./.
###/###
Prudential-Bache/N
Securities/N
analyst/N
Leslie/N
Steppel/N
said/V
reduced/V
labor/N
costs/N
helped/V
boost/N
margins/N
,/,
although/I
she/P
doubted/V
``/`
that/D
kind/N
of/I
performance/N
is/V
sustainable/J
./.
''/'
###/###
Calling/V
sales/N
``/`
still/R
relatively/R
soft/J
,/,
''/'
Ms./N
Steppel/N
believes/V
that/I
in/I
real/J
terms/N
,/,
U.S./N
sales/N
slipped/V
3/C
%/N
to/T
4/C
%/N
at/I
company-operated/J
stores/N
in/I
the/D
quarter/N
./.
###/###
Apparently/R
acknowledging/V
weaker/J
U.S./N
sales/N
systemwide/J
,/,
McDonald/N
's/P
vowed/V
``/`
to/T
use/V
our/P
size/N
and/C
muscle/N
to/T
do/V
all/P
that/D
is/V
necessary/J
to/T
build/V
the/D
brand/N
./.
''/'
###/###
Overseas/R
,/,
both/D
franchisees/N
and/C
the/D
company/N
performed/V
substantially/R
better/R
than/I
a/D
year/N
ago/I
./.
###/###
Third-quarter/J
sales/N
in/I
Europe/N
were/V
exceptionally/R
strong/J
,/,
boosted/V
by/I
promotional/J
programs/N
and/C
new/J
products/N
--/:
although/I
weaker/J
foreign/J
currencies/N
reduced/V
the/D
company/N
's/P
earnings/N
./.
###/###
McDonald/N
's/P
said/V
that/I
systemwide/J
sales/N
would/M
have/V
been/V
$/$
115/C
million/C
greater/J
had/V
1988/C
exchange/N
rates/N
remained/V
in/I
effect/N
./.
###/###
``/`
Going/V
into/I
the/D
fourth/J
quarter/N
the/D
sales/N
comparison/N
will/M
be/V
more/R
difficult/J
,/,
''/'
predicted/V
restaurant/N
analyst/N
Howard/N
Hansen/N
of/I
Kidder/N
,/,
Peabody/N
&/C
Co/N
./.
###/###
Reflecting/V
better/J
growth/N
prospects/N
abroad/R
,/,
McDonald/N
's/P
noted/V
that/I
as/I
of/I
Sept./N
30/C
more/J
stores/N
were/V
under/I
construction/N
overseas/R
than/I
a/D
year/N
ago/I
,/,
while/I
the/D
opposite/N
was/V
true/J
for/I
domestic/J
expansion/N
./.
###/###
At/I
the/D
end/N
of/I
the/D
third/J
quarter/N
McDonald/N
's/P
had/V
10,873/C
units/N
operating/V
world-wide/J
./.
###/###
In/I
the/D
nine/C
months/N
,/,
earnings/N
rose/V
12/C
%/N
to/T
$/$
555.6/C
million/C
,/,
or/C
$/$
1.49/C
a/D
share/N
,/,
from/I
$/$
494.4/C
million/C
,/,
or/C
$/$
1.31/C
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Revenue/N
rose/V
11/C
%/N
to/T
$/$
4.56/C
billion/C
from/I
$/$
4.12/C
billion/C
./.
###/###
Carnival/N
Cruise/N
Lines/N
Inc./N
's/P
common/J
stock/N
was/V
dragged/V
down/I
yesterday/N
amid/I
concerns/N
that/I
a/D
bankruptcy/N
filing/V
by/I
a/D
Finnish/J
shipbuilder/N
would/M
delay/V
delivery/N
of/I
three/C
big/J
cruise/N
ships/N
./.
###/###
The/D
Miami-based/J
company/N
's/P
stock/N
fell/V
$/$
1.75/C
yesterday/N
to/T
$/$
20.75/C
a/D
share/N
in/I
heavy/J
American/N
Stock/N
Exchange/N
composite/J
trading/N
./.
###/###
Early/R
yesterday/N
,/,
Carnival/N
said/V
in/I
a/D
company/N
statement/N
that/I
it/P
had/V
been/V
``/`
notified/V
unofficially/R
''/'
that/I
Waertsilae/N
Marine/N
Industries/N
,/,
the/D
Finnish/J
shipyard/N
that/W
is/V
building/V
its/P
three/C
new/J
cruise/N
ships/N
,/,
planned/V
to/T
file/V
for/I
bankruptcy/N
./.
###/###
Officials/N
at/I
Carnival/N
declined/V
to/T
comment/V
./.
###/###
``/`
There/E
is/V
just/R
a/D
tremendous/J
amount/N
of/I
uncertainty/N
about/I
what/W
the/D
effect/N
,/,
if/I
any/D
,/,
of/I
all/P
this/D
is/V
,/,
''/'
said/V
John/N
P./N
Uphoff/N
,/,
an/D
analyst/N
at/I
Raymond/N
James/N
Associates/N
Inc/N
./.
###/###
``/`
I/P
did/V
n't/R
even/R
know/V
that/I
a/D
company/N
in/I
a/D
socialistic/J
country/N
could/M
file/V
for/I
bankruptcy/N
./.
''/'
###/###
Carnival/N
said/V
the/D
``/`
Fantasy/N
,/,
''/'
the/D
first/J
of/I
the/D
three/C
$/$
200/C
million/C
ships/N
that/I
Carnival/N
has/V
on/I
order/N
,/,
is/V
scheduled/V
to/T
be/V
delivered/V
next/J
month/N
,/,
just/R
in/I
time/N
for/I
the/D
winter/N
tourist/N
season/N
in/I
the/D
Caribbean/N
./.
###/###
That/D
ship/N
,/,
which/W
would/M
carry/V
about/I
2,050/C
passengers/N
,/,
would/M
expand/V
the/D
capacity/N
of/I
Carnival/N
's/P
existing/V
14-ship/J
fleet/N
by/I
24/C
%/N
./.
###/###
The/D
second/J
ship/N
,/,
which/W
is/V
half-completed/J
,/,
is/V
scheduled/V
to/T
be/V
delivered/V
in/I
fall/N
1990/C
,/,
and/C
the/D
third/J
in/I
fall/N
1991/C
./.
###/###
``/`
There/E
's/V
a/D
99/C
%/N
chance/N
that/I
the/D
Fantasy/N
will/M
be/V
delivered/V
close/R
to/T
schedule/V
,/,
''/'
said/V
Caroline/N
Levy/N
,/,
an/D
analyst/N
at/I
Shearson/N
Lehman/N
Hutton/N
Inc/N
./.
###/###
``/`
The/D
others/N
will/M
probably/R
be/V
delivered/V
as/R
well/R
,/,
but/C
Carnival/N
will/M
likely/R
have/V
to/T
pay/V
a/D
higher/J
price/N
for/I
them/P
./.
''/'
###/###
She/P
said/V
the/D
company/N
could/M
pay/V
as/R
much/R
as/I
25/C
%/N
more/J
for/I
the/D
ships/N
./.
###/###
If/I
the/D
ships/N
are/V
n't/R
delivered/V
,/,
however/R
,/,
it/P
will/M
likely/R
have/V
an/D
effect/N
on/I
the/D
company/N
's/P
earnings/N
as/R
soon/R
as/I
the/D
1990/C
fiscal/J
year/N
,/,
which/W
begins/V
Dec./N
1/C
./.
###/###
Analysts/N
said/V
those/D
estimates/N
--/:
which/W
range/V
from/I
about/I
$/$
1.80/C
a/D
share/N
to/T
$/$
1.95/C
a/D
share/N
--/:
are/V
based/V
on/I
Fantasy/N
being/V
in/I
operation/N
in/I
1990/C
./.
###/###
If/I
the/D
ship/N
fails/V
to/T
arrive/V
,/,
those/D
per-share/J
earnings/N
estimates/N
could/M
be/V
trimmed/V
15/C
cents/N
or/C
more/J
./.
###/###
Analysts/N
were/V
n't/R
willing/J
to/T
speculate/V
on/I
how/W
much/J
money/N
Carnival/N
might/M
lose/V
through/I
deposits/N
./.
###/###
Normally/R
,/,
a/D
company/N
pays/V
a/D
portion/N
of/I
the/D
total/J
cost/N
of/I
a/D
ship/N
as/I
it/P
reaches/V
various/J
stages/N
of/I
construction/N
./.
###/###
Carnival/N
,/,
for/I
example/N
,/,
has/V
already/R
paid/V
about/I
$/$
160/C
million/C
of/I
the/D
total/J
cost/N
for/I
Fantasy/N
./.
###/###
Some/D
analysts/N
say/V
this/D
may/M
give/V
it/P
the/D
right/N
to/T
seize/V
the/D
ship/N
if/I
the/D
situation/N
warrants/V
it/P
./.
###/###
According/V
to/T
reports/N
from/I
Finland/N
,/,
Waertsilae/N
Marine/N
,/,
19%-owned/J
by/I
conglomerate/J
Oy/N
Waertsilae/N
,/,
filed/V
for/I
bankruptcy/N
yesterday/N
after/I
the/D
shipyard/N
's/P
contractors/N
had/V
started/V
to/T
demand/V
bank/N
guarantees/N
./.
###/###
The/D
shipyard/N
disclosed/V
in/I
mid-August/N
that/I
it/P
expected/V
losses/N
stemming/V
from/I
a/D
series/N
of/I
unprofitable/J
orders/N
./.
###/###
Designer/N
Sandra/N
Garratt/N
filed/V
for/I
Chapter/N
7/C
Bankruptcy/N
Code/N
protection/N
,/,
saying/V
that/I
her/P
cash/N
flow/N
had/V
been/V
cut/V
off/I
./.
###/###
The/D
designer/N
,/,
whose/W
line/N
of/I
modular/J
,/,
one-size-fits-all/J
clothing/N
has/V
spawned/V
a/D
host/N
of/I
clones/N
,/,
has/V
been/V
in/I
a/D
dispute/N
with/I
her/P
latest/J
licensee/N
,/,
Jerell/N
Inc./N
for/I
several/J
months/N
./.
###/###
Ms./N
Garratt/N
was/V
the/D
subject/N
of/I
a/D
Wall/N
Street/N
Journal/N
article/N
in/I
March/N
./.
###/###
The/D
designer/N
's/P
attorney/N
,/,
Molly/N
Bartholow/N
,/,
said/V
that/I
Ms./N
Garratt/N
was/V
forced/V
to/T
start/V
bankruptcy-law/N
proceedings/N
because/I
Jerell/N
began/V
withholding/V
her/P
royalty/N
payments/N
last/J
month/N
./.
###/###
Jerell/N
paid/V
Ms./N
Garratt/N
royalties/N
for/I
the/D
line/N
known/V
as/I
Multiples/N
by/I
Sandra/N
Garratt/N
,/,
which/W
are/V
sold/V
primarily/R
through/I
department/N
stores/N
./.
###/###
Ms./N
Garratt/N
sued/V
the/D
Dallas/N
apparel/N
maker/N
earlier/R
this/D
year/N
,/,
charging/V
that/I
Jerell/N
developed/V
and/C
marketed/V
clothing/N
lines/N
fashioned/V
after/I
her/P
designs/N
,/,
in/I
violation/N
of/I
their/P
contract/N
./.
###/###
That/D
lawsuit/N
is/V
still/R
pending/V
./.
###/###
Jerell/N
could/M
n't/R
immediately/R
be/V
reached/V
for/I
comment/N
./.
###/###
Ms./N
Garratt/N
's/P
assets/N
and/C
liabilities/N
were/V
n't/R
disclosed/V
./.
###/###
Eaton/N
Corp./N
had/V
a/D
26/C
%/N
drop/N
in/I
third-quarter/J
profit/N
mainly/R
because/I
of/I
lower/J
sales/N
of/I
truck/N
parts/N
,/,
its/P
largest/J
and/C
most/R
profitable/J
single/J
business/N
./.
###/###
Sales/N
of/I
medium/N
and/C
heavy-duty/J
trucks/N
continue/V
to/T
lag/V
previous-year/J
rates/N
,/,
leading/V
Eaton/N
to/T
expect/V
fourth-quarter/J
net/J
income/N
to/T
fall/V
below/I
year-earlier/J
levels/N
,/,
said/V
Stephen/N
R./N
Hardis/N
,/,
vice/N
chairman/N
and/C
chief/N
financial/J
and/C
administrative/J
officer/N
./.
###/###
He/P
declined/V
to/T
make/V
a/D
specific/J
earnings/N
estimate/N
./.
###/###
Third-quarter/J
net/N
was/V
$/$
40/C
million/C
,/,
or/C
$/$
1.04/C
a/D
share/N
,/,
from/I
$/$
54.4/C
million/C
,/,
or/C
$/$
1.47/C
a/D
share/N
,/,
a/D
year/N
ago/I
./.
###/###
Sales/N
rose/V
2.8/C
%/N
to/T
$/$
864.1/C
million/C
,/,
from/I
$/$
840.4/C
million/C
./.
###/###
The/D
quarter/N
net/N
was/V
below/I
analyst/N
expectations/N
mainly/R
because/I
truck-parts/N
sales/N
did/V
n't/R
rebound/V
in/I
September/N
from/I
the/D
summer/N
doldrums/N
as/I
they/P
usually/R
do/V
,/,
said/V
Patrick/N
E./N
Sheridan/N
,/,
analyst/N
with/I
McDonald/N
&/C
Co/N
./.
###/###
Mr./N
Sheridan/N
,/,
who/W
had/V
been/V
expecting/V
quarter/N
profit/N
of/I
about/I
$/$
1.25/C
a/D
share/N
,/,
says/V
he/P
is/V
reducing/V
his/P
estimate/N
for/I
the/D
year/N
to/T
the/D
area/N
of/I
$/$
5.70/C
a/D
share/N
,/,
from/I
his/P
previous/J
estimate/N
of/I
$/$
6.10/C
./.
###/###
Eli/N
Lustgarten/N
of/I
PaineWebber/N
Inc./N
,/,
who/W
a/D
couple/N
of/I
weeks/N
ago/I
reduced/V
his/P
1989/C
estimate/N
to/T
$/$
5.70/C
a/D
share/N
because/I
of/I
the/D
weakening/N
truck/N
market/N
,/,
says/V
he/P
will/M
make/V
another/D
cut/N
to/T
about/I
$/$
5.50/C
a/D
share/N
in/I
light/N
of/I
the/D
third-quarter/J
report/N
./.
###/###
He/P
said/V
Eaton/N
's/P
quarter/N
profit/N
margin/N
on/I
controls/N
was/V
lower/J
than/I
he/P
anticipated/V
./.
###/###
Eaton/N
said/V
sales/N
of/I
truck/N
axles/N
,/,
transmissions/N
and/C
other/J
parts/N
fell/V
7.2/C
%/N
to/T
$/$
295/C
million/C
./.
###/###
Sales/N
of/I
parts/N
for/I
cars/N
and/C
construction/N
vehicles/N
rose/V
./.
###/###
Eaton/N
does/V
n't/R
provide/V
profit/N
figures/N
separately/R
for/I
each/D
category/N
,/,
but/C
operating/V
profit/N
for/I
vehicle/N
parts/N
as/I
a/D
group/N
fell/V
26/C
%/N
to/T
$/$
51/C
million/C
on/I
an/D
about/I
1/C
%/N
drop/N
in/I
sales/N
to/T
$/$
488/C
million/C
./.
###/###
Mr./N
Hardis/N
said/V
truck-fleet/J
operators/N
appear/V
to/T
be/V
cautious/J
about/I
buying/V
new/J
trucks/N
until/I
they/P
see/V
how/W
the/D
economy/N
behaves/V
./.
###/###
The/D
truck/N
sales/N
slowdown/N
reflects/V
the/D
general/J
slowing/N
in/I
sales/N
of/I
consumer/N
goods/N
,/,
he/P
said/V
,/,
and/C
the/D
latest/J
reports/N
show/V
a/D
slight/J
improvement/N
rather/R
than/I
any/D
indication/N
of/I
a/D
downward/J
spiral/N
./.
###/###
Operating/V
profit/N
from/I
electrical/J
and/C
electronics/N
controls/N
,/,
Eaton/N
's/P
other/J
major/J
business/N
group/N
,/,
fell/V
11/C
%/N
to/T
$/$
32/C
million/C
,/,
despite/I
a/D
7.7/C
%/N
increase/N
in/I
sales/N
to/T
$/$
376/C
million/C
./.
###/###
The/D
company/N
attributed/V
the/D
decline/N
to/T
weakness/N
in/I
the/D
commercial-switch/J
market/N
in/I
North/N
America/N
and/C
in/I
the/D
European/J
appliance-controls/N
market/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
net/J
--/:
including/V
profit/N
from/I
discontinued/V
operations/N
both/D
years/N
and/C
in/I
1988/C
an/D
extraordinary/J
charge/N
of/I
$/$
17.7/C
million/C
related/V
to/T
settlement/N
of/I
a/D
lawsuit/N
--/:
was/V
$/$
170.6/C
million/C
,/,
or/C
$/$
4.54/C
a/D
share/N
,/,
up/I
5.8/C
%/N
from/I
$/$
161.3/C
million/C
,/,
or/C
$/$
4.32/C
a/D
share/N
,/,
a/D
year/N
ago/I
./.
###/###
Eaton/N
earned/V
from/I
continuing/V
operations/N
$/$
165.1/C
million/C
,/,
or/C
$/$
4.40/C
a/D
share/N
,/,
down/I
7/C
%/N
from/I
$/$
177.5/C
million/C
,/,
or/C
$/$
4.76/C
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Nine-month/J
sales/N
were/V
$/$
2.79/C
billion/C
,/,
up/I
8.2/C
%/N
from/I
$/$
2.58/C
billion/C
a/D
year/N
earlier/R
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
,/,
Eaton/N
closed/V
at/I
$/$
57.50/C
a/D
share/N
,/,
down/I
$/$
2.50/C
./.
###/###
In/I
Poland/N
's/P
rapid/J
shift/N
from/I
socialism/N
to/T
an/D
undefined/J
alternative/N
,/,
environmental/J
issues/N
have/V
become/V
a/D
cutting/V
edge/N
of/I
broader/J
movements/N
to/T
restructure/N
the/D
economy/N
,/,
cut/V
cumbersome/J
bureaucracies/N
,/,
and/C
democratize/V
local/J
politics/N
./.
###/###
Initial/J
steps/N
were/V
taken/V
at/I
Poland/N
's/P
first/J
international/J
environmental/J
conference/N
,/,
which/W
I/P
attended/V
last/J
month/N
./.
###/###
The/D
conference/N
,/,
held/V
in/I
Lower/N
Silesia/N
,/,
was/V
co-sponsored/J
by/I
the/D
Environment/N
Ministry/N
,/,
the/D
Rockefeller/N
Brothers/N
Fund/N
,/,
and/C
the/D
Polish/N
Ecological/N
Club/N
,/,
and/C
was/V
attended/V
by/I
50/C
Poles/N
from/I
government/N
and/C
industry/N
,/,
as/R
well/R
as/I
Hungarians/N
,/,
Czechs/N
,/,
Russians/N
,/,
Japanese/N
and/C
Americans/N
./.
###/###
The/D
conference/N
was/V
entitled/V
``/`
Economic/N
Mechanisms/N
for/I
Environmental/N
Protection/N
,/,
''/'
a/D
significant/J
departure/N
from/I
East/N
Bloc/N
usage/N
,/,
which/W
recognizes/V
only/R
one/C
economic/J
mechanism/N
--/:
central/J
planning/N
--/:
to/T
direct/V
industrial/J
behavior/N
./.
###/###
Even/R
more/R
remarkably/R
,/,
it/P
focused/V
on/I
emissions/N
trading/N
and/C
similar/J
market/N
approaches/V
to/T
address/V
pollution/N
,/,
notwithstanding/I
Poland/N
's/P
lack/N
of/I
functioning/V
markets/N
./.
###/###
Why/W
did/V
East/N
Bloc/N
participants/N
unanimously/R
endorse/V
market-based/J
pollution/N
approaches/N
?/.
###/###
The/D
answer/N
lies/V
both/D
in/I
the/D
degraded/J
environment/N
of/I
these/D
countries/N
and/C
the/D
perceived/V
causes/N
of/I
that/D
degradation/N
./.
###/###
Like/I
other/J
East/N
Bloc/N
countries/N
,/,
Poland/N
possesses/V
environmental/J
laws/N
more/R
honored/V
in/I
their/P
breach/N
than/I
in/I
their/P
observance/N
./.
###/###
According/V
to/T
a/D
detailed/V
report/N
by/I
Zbigniew/N
Bochniarz/N
of/I
the/D
University/N
of/I
Minnesota/N
's/P
Hubert/N
Humphrey/N
Institute/N
,/,
27/C
areas/N
containing/V
a/D
third/J
of/I
Poland/N
's/P
population/N
are/V
regarded/V
as/I
``/`
ecological/J
hazards/N
''/'
due/J
to/T
multiple/J
violations/N
of/I
standards/N
./.
###/###
Norms/N
are/V
consistently/R
exceeded/V
at/I
60/C
%/N
of/I
nitrogen/N
oxide/N
monitoring/V
sites/N
and/C
80/C
%/N
of/I
those/D
for/I
dust/N
and/C
soot/N
emissions/N
./.
###/###
Four-fifths/N
of/I
Poland/N
's/P
soils/N
have/V
become/V
highly/R
acidified/V
;/:
70/C
%/N
of/I
its/P
southern/J
forests/N
are/V
projected/V
to/T
die/V
by/I
century/N
's/P
end/N
./.
###/###
Between/I
1965/C
and/C
1985/C
,/,
Polish/N
waters/N
fit/V
for/I
human/J
consumption/N
dropped/V
from/I
33/C
%/N
to/T
6/C
%/N
of/I
all/D
surface/N
waters/N
,/,
while/I
those/D
unfit/J
even/R
for/I
industry/N
use/N
nearly/R
doubled/V
./.
###/###
Poland/N
produces/V
about/I
20/C
times/N
more/J
soot/N
and/C
five/C
times/N
more/R
sulfur/N
dioxide/N
and/C
solid/J
waste/N
per/I
unit/N
of/I
gross/J
national/J
product/N
than/I
does/V
Western/N
Europe/N
./.
###/###
Its/P
mortality/N
rate/N
for/I
males/N
over/I
35/C
is/V
about/I
50/C
%/N
higher/J
than/I
West/N
Germany/N
's/P
,/,
and/C
50/C
%/N
higher/J
in/I
hazard/N
areas/N
than/I
the/D
national/J
average/N
./.
###/###
Since/I
1978/C
,/,
average/J
annual/J
growth/N
rates/N
for/I
most/J
pollutants/N
have/V
outstripped/V
the/D
growth/N
of/I
GNP/N
./.
###/###
Conference/N
participants/N
saw/V
these/D
effects/N
as/I
flowing/V
directly/R
from/I
-LRB-/-
a/D
-RRB-/-
Marxist/J
devaluation/N
of/I
environmental/J
resources/N
,/,
which/W
are/V
not/R
produced/V
by/I
labor/N
;/:
-LRB-/-
b/N
-RRB-/-
planned/V
economies/N
'/P
inability/N
to/T
control/V
pollution/N
where/W
enterprises/N
are/V
state-owned/J
and/C
penalties/N
are/V
paid/V
by/I
the/D
government/N
;/:
and/C
-LRB-/-
c/N
-RRB-/-
the/D
continuing/V
Stalinist/J
emphasis/N
on/I
heavy/J
industry/N
for/I
economic/J
development/N
,/,
producing/V
a/D
far/R
heavier/J
and/C
more/R
wasteful/J
use/N
of/I
energy/N
and/C
natural/J
resources/N
than/I
in/I
the/D
West/N
./.
###/###
They/P
repeatedly/R
noted/V
that/D
environmental/J
progress/N
could/M
not/R
be/V
secured/V
without/I
true/J
ownership/N
,/,
genuine/J
competition/N
based/V
on/I
market/N
factors/N
,/,
and/C
the/D
risk/N
of/I
bankruptcy/N
if/I
a/D
business/N
makes/V
the/D
wrong/J
decisions/N
./.
###/###
The/D
solutions/N
they/P
formally/R
proposed/V
included/V
taxes/N
,/,
conservation/N
and/C
recycling/V
incentives/N
,/,
reforestation/N
offsets/N
,/,
transferable/J
pollution/N
permits/V
,/,
an/D
ecological/J
bank/N
to/T
finance/V
pollution-reduction/N
credits/N
,/,
and/C
debt-for-environment/N
swaps/N
./.
###/###
But/C
their/P
most/J
fundamental/J
recommendation/N
was/V
to/T
separate/V
industry/N
from/I
the/D
state/N
,/,
making/V
it/P
fully/R
accountable/J
for/I
pollution/N
control/N
./.
###/###
A/D
revolution/N
takes/V
more/R
than/I
conference/N
manifestos/N
./.
###/###
Indeed/R
,/,
skepticism/N
was/V
amply/R
captured/V
by/I
a/D
joke/N
told/V
by/I
Poles/N
at/I
the/D
conference/N
:/:
``/`
The/D
world/N
must/M
be/V
coming/V
to/T
an/D
end/N
./.
###/###
The/D
Russians/N
are/V
talking/V
peace/N
./.
###/###
The/D
Palestinians/N
are/V
talking/V
elections/N
./.
###/###
And/C
the/D
Poles/N
are/V
engaged/V
in/I
commerce/N
./.
''/'
###/###
But/C
the/D
implications/N
of/I
such/P
a/D
shift/N
to/T
market/N
approaches/N
go/V
well/R
beyond/I
the/D
fact/N
that/I
Poland/N
is/V
already/R
working/V
on/I
nationwide/J
emissions/N
trades/N
to/T
reduce/V
smelter/N
pollution/N
,/,
or/C
that/I
the/D
Soviets/N
plan/N
to/T
introduce/V
marketable/J
pollution/N
permits/N
in/I
some/D
republics/N
next/I
year/N
./.
###/###
Those/D
implications/N
include/V
:/:
--/:
Privatization/N
###/###
Faced/V
with/I
a/D
$/$
40/C
billion/C
foreign/J
debt/N
and/C
skyrocketing/V
inflation/N
,/,
Poland/N
must/M
privatize/V
industry/N
and/C
eliminate/V
subsidies/N
to/T
stabilize/V
its/P
currency/N
and/C
qualify/V
for/I
international/J
assistance/N
./.
###/###
Market-based/J
pollution/N
control/N
may/M
consume/V
some/D
capital/N
that/W
would/M
otherwise/R
purchase/V
state/N
industries/N
./.
###/###
But/C
it/P
could/M
also/R
accelerate/V
``/`
marketization/N
''/'
by/I
reinforcing/V
industrial/J
accountability/N
,/,
breaking/V
up/I
state/N
monopolies/N
,/,
giving/V
managers/N
a/D
stake/N
in/I
solutions/N
,/,
and/C
ensuring/V
that/D
modernization/N
is/V
not/R
reversible/J
for/I
failure/N
to/T
address/V
environmental/J
effects/N
./.
###/###
--/:
Least-cost/J
solutions/N
./.
###/###
As/I
conferees/N
noted/V
,/,
scarce/J
capital/N
means/V
the/D
costs/N
of/I
control/N
must/M
be/V
minimized/V
through/I
a/D
broad/J
menu/N
of/I
compliance/N
choices/N
for/I
individual/J
firms/N
./.
###/###
That/D
means/V
simple/J
,/,
clear/J
rules/N
that/W
secure/V
the/D
first/J
large/J
blocks/N
of/I
reduction/N
,/,
deferring/V
more/J
complex/J
issues/N
such/J
as/I
risk/N
./.
###/###
It/P
also/R
means/V
use/N
of/I
quantity-based/J
pollution/N
limits/N
such/J
as/I
transferable/J
permits/N
,/,
rather/R
than/I
price-based/J
limits/N
such/J
as/I
effluent/J
fees/N
./.
###/###
That/D
's/V
because/I
quota-trained/J
managers/N
will/M
likely/R
respond/V
better/R
to/T
quantity/N
than/I
to/T
price/N
signals/N
./.
###/###
--/:
Creative/J
financing/N
./.
###/###
Even/R
least-cost/J
environmental/J
solutions/N
will/M
require/V
billions/N
of/I
dollars/N
./.
###/###
New/J
types/N
of/I
financing/N
must/M
make/V
funds/N
available/J
without/I
draining/V
Poland/N
's/P
hard-currency/N
reserves/N
./.
###/###
--/:
Democratization/N
./.
###/###
East/N
Bloc/N
pollution/N
data/N
typically/R
have/V
been/V
state/N
secrets/N
./.
###/###
While/I
Polish/N
data/N
have/V
been/V
freely/R
available/J
since/I
1980/C
,/,
it/P
was/V
no/D
accident/N
that/I
participants/N
urged/V
the/D
free/J
flow/N
of/I
information/N
./.
###/###
For/I
once/R
information/N
flows/V
,/,
public/J
participation/N
follows/V
and/C
repression/N
becomes/V
difficult/J
to/T
reimpose/V
./.
###/###
--/:
Global/J
reciprocity/N
./.
###/###
One/C
participant/N
prematurely/R
declared/V
that/I
America/N
has/V
had/V
a/D
free/J
market/N
in/I
goods/N
but/C
a/D
planned/V
economy/N
for/I
environmental/J
protection/N
,/,
while/I
Poland/N
represents/V
the/D
opposite/N
./.
###/###
His/P
point/N
:/:
It/P
will/M
be/V
increasingly/R
difficult/J
for/I
the/D
U.S./N
to/T
cling/V
to/T
command-and-control/J
measures/N
if/I
even/R
the/D
East/N
Bloc/N
steps/V
to/T
a/D
different/J
drummer/N
./.
###/###
At/I
the/D
moment/N
,/,
Poland/N
resembles/V
19th-century/J
Pittsburgh/N
more/J
than/I
a/D
modern/J
industrial/J
society/N
--/:
with/I
antiquated/J
production/N
,/,
inadequate/J
environmental/J
management/N
,/,
and/C
little/R
ecological/J
awareness/N
./.
###/###
But/C
the/D
continuing/V
pressures/N
for/I
free-market/J
economics/N
suggest/V
the/D
conference/N
's/P
vision/N
was/V
not/R
all/D
fantasy/N
./.
###/###
Mr./N
Levin/N
,/,
former/J
head/N
of/I
EPA/N
's/P
regulatory/J
reform/N
staff/N
,/,
adapted/V
this/D
from/I
his/P
November/N
column/N
for/I
the/D
Journal/N
of/I
the/D
Air/N
and/C
Waste/N
Management/N
Association/N
./.
###/###
Disappointing/J
earnings/N
news/N
from/I
some/D
technology/N
companies/N
unnerved/J
investors/N
in/I
the/D
over-the-counter/J
market/N
,/,
who/W
sold/V
shares/N
of/I
Apple/N
Computer/N
,/,
Intel/N
and/C
many/J
other/J
computer-related/J
concerns/N
./.
###/###
The/D
drop/N
in/I
those/D
and/C
other/J
technology/N
stocks/N
contributed/V
to/T
an/D
0.7/C
%/N
slide/N
by/I
the/D
Nasdaq/N
composite/J
index/N
./.
###/###
It/P
finished/V
at/I
467.22/C
,/,
down/I
3.45/C
./.
###/###
The/D
nervousness/N
about/I
the/D
technology/N
stock/N
outlook/N
also/R
hurt/V
the/D
Dow/N
Jones/N
Industrial/N
Average/N
,/,
which/W
slipped/V
about/I
1/C
%/N
./.
###/###
Mostly/R
because/I
of/I
the/D
sell-off/N
in/I
technology/N
stocks/N
,/,
the/D
Nasdaq/N
100/C
Index/N
of/I
the/D
OTC/N
's/P
largest/J
non-financial/J
issues/N
dropped/V
4.58/C
to/T
457.52/C
./.
###/###
The/D
Nasdaq/N
Financial/N
Index/N
of/I
giant/J
insurance/N
and/C
banking/N
issues/N
lost/V
2.38/C
to/T
458.32/C
./.
###/###
Some/D
traders/N
said/V
the/D
sell-off/N
of/I
technology/N
stocks/N
on/I
low/J
volume/N
reflected/V
a/D
lack/N
of/I
conviction/N
by/I
investors/N
./.
###/###
But/C
Charlie/N
Howley/N
,/,
vice/N
president/N
in/I
charge/N
of/I
OTC/N
trading/N
at/I
SoundView/N
Financial/N
in/I
Stamford/N
,/,
Conn./N
,/,
said/V
the/D
selling/N
was/V
orderly/J
./.
###/###
``/`
It/P
's/V
a/D
quiet/J
retreat/N
,/,
''/'
said/V
Mr./N
Howley/N
./.
###/###
``/`
It/P
's/V
nothing/N
dramatic/J
,/,
just/R
a/D
routine/J
sell-off/N
./.
''/'
###/###
Some/D
of/I
it/P
was/V
due/J
to/T
lower-than-expected/J
earnings/N
from/I
leading/V
companies/N
,/,
he/P
said/V
./.
###/###
But/C
some/D
of/I
it/P
also/R
represented/V
profit-taking/N
by/I
investors/N
who/W
have/V
made/V
big/J
gains/N
in/I
some/D
issues/N
./.
###/###
Yesterday/N
's/P
volume/N
of/I
117.2/C
million/C
shares/N
was/V
far/R
below/I
last/J
week/N
's/P
sizzling/V
average/N
of/I
nearly/R
177/C
million/C
./.
###/###
For/I
October/N
so/R
far/R
,/,
daily/J
volume/N
is/V
averaging/V
150.3/C
million/C
,/,
putting/V
it/P
on/I
track/N
to/T
be/V
the/D
year/N
's/P
busiest/J
month/N
./.
###/###
Apple/N
Computer/N
,/,
which/W
reported/V
lackluster/N
earnings/N
Friday/N
,/,
lost/V
1/C
to/T
46/C
on/I
1.1/C
million/C
shares/N
./.
###/###
Stratus/N
Computer/N
,/,
which/W
reported/V
earnings/N
late/J
Friday/N
that/W
were/V
in/I
line/N
with/I
a/D
disappointing/J
forecast/N
,/,
eased/V
to/T
24/C
on/I
816,000/C
shares/N
./.
###/###
Investors/N
apparently/R
did/V
n't/R
like/I
the/D
news/N
from/I
Rainbow/N
Technologies/N
either/R
./.
###/###
It/P
said/V
net/J
income/N
was/V
17/C
cents/N
a/D
share/N
in/I
the/D
third/J
quarter/N
,/,
compared/V
with/I
16/C
cents/N
a/D
share/N
a/D
year/N
earlier/R
./.
###/###
Rainbow/N
's/P
stock/N
dropped/V
2/C
to/T
14/C
./.
###/###
Other/J
technology/N
stocks/N
that/W
were/V
weaker/J
included/V
Intel/N
,/,
which/W
fell/V
1/C
to/T
33/C
on/I
1.9/C
million/C
shares/N
,/,
Mentor/N
Graphics/N
,/,
down/I
to/T
16/C
on/I
1.6/C
million/C
shares/N
,/,
Sun/N
Microsystems/N
,/,
which/W
slipped/V
to/T
18/C
,/,
and/C
MCI/N
Communications/N
,/,
down/I
1/C
to/T
42/C
./.
###/###
Microsoft/N
,/,
which/W
last/J
week/N
rose/V
to/T
a/D
record/N
,/,
fell/V
victim/N
to/T
profit-taking/N
,/,
traders/N
said/V
,/,
as/I
it/P
declined/V
2/C
to/T
83/C
./.
###/###
Conner/N
Peripherals/N
was/V
unchanged/J
at/I
15/C
./.
###/###
Among/I
takeover/N
stocks/N
,/,
Jefferson/N
Smurfit/N
jumped/V
1/C
to/T
42/C
after/I
SIBV-MS/N
Holdings/N
said/V
the/D
price/N
to/T
be/V
paid/V
to/T
Jefferson/N
Smurfit/N
's/P
minority/N
holders/N
has/V
been/V
raised/V
to/T
$/$
43/C
a/D
share/N
./.
###/###
The/D
increase/N
of/I
$/$
1.25/C
a/D
share/N
is/V
being/V
made/V
to/T
settle/V
shareholder/N
litigation/N
relating/V
to/T
SIBV-MS/N
's/P
tender/N
offer/N
./.
###/###
SIBV-MS/N
Holdings/N
is/V
a/D
new/J
company/N
jointly/R
owned/V
by/I
an/D
affiliate/N
of/I
Jefferson/N
Smurfit/N
and/C
a/D
Morgan/N
Stanley/N
limited/J
partnership/N
./.
###/###
The/D
Jefferson/N
Smurfit/N
affiliate/N
,/,
Smurfit/N
International/N
B.V./N
,/,
holds/V
about/I
78/C
%/N
of/I
the/D
shares/N
outstanding/J
./.
###/###
These/D
shares/N
will/M
be/V
bought/V
by/I
SIBV-MS/N
Holdings/N
at/I
$/$
41.75/C
each/D
after/I
the/D
acquisition/N
of/I
the/D
minority/N
shares/N
./.
###/###
Another/D
takeover/N
target/N
,/,
LIN/N
Broadcasting/N
,/,
eased/V
to/T
110/C
on/I
313,800/C
shares/N
./.
###/###
LIN/N
's/P
suitor/N
,/,
McCaw/N
Cellular/N
Communications/N
,/,
dropped/V
1/C
to/T
40/C
on/I
almost/R
350,000/C
shares/N
./.
###/###
Some/D
analysts/N
say/V
investors/N
will/M
begin/V
paying/V
more/J
attention/N
to/T
earnings/N
,/,
partly/R
in/I
response/N
to/T
the/D
latest/J
round/N
of/I
disappointments/N
./.
###/###
They/P
say/V
investors/N
will/M
favor/V
companies/N
that/W
historically/R
have/V
posted/V
annual/J
earnings/N
growth/N
of/I
15/C
%/N
to/T
20/C
%/N
./.
###/###
That/D
would/M
be/V
good/J
news/N
for/I
the/D
OTC/N
market/N
,/,
some/D
analysts/N
say/V
,/,
because/I
many/J
small/J
growth/N
stocks/N
are/V
traded/V
there/R
./.
###/###
Michael/N
R./N
Weisberg/N
,/,
partner/N
in/I
charge/N
of/I
research/N
at/I
Robertson/N
Stephens/N
&/C
Co./N
in/I
San/N
Francisco/N
,/,
said/V
some/D
investors/N
have/V
already/R
made/V
the/D
switch/N
./.
###/###
The/D
Robertson/N
Stephens/N
Index/N
of/I
340/C
emerging/V
growth/N
stocks/N
is/V
up/I
23.1/C
%/N
for/I
the/D
year/N
through/I
Friday/N
./.
###/###
The/D
rise/N
matches/V
that/I
of/I
the/D
Dow/N
Jones/N
industrials/N
this/D
year/N
./.
###/###
``/`
It/P
's/V
been/V
a/D
spectacular/J
year/N
for/I
the/D
emerging/V
growth/N
stock/N
investor/N
,/,
''/'
Mr./N
Weisberg/N
said/V
./.
###/###
He/P
predicted/V
that/I
the/D
most/R
popular/J
growth/N
companies/N
will/M
be/V
those/D
with/I
``/`
some/D
kind/N
of/I
unique/J
product/N
or/C
franchise/N
''/'
that/W
makes/V
them/P
appear/V
able/J
to/T
sustain/V
their/P
momentum/N
./.
###/###
He/P
puts/V
the/D
OTC/N
market/N
's/P
Nellcor/N
,/,
Office/N
Club/N
and/C
BizMart/N
on/I
the/D
list/N
./.
###/###
Nellcor/N
,/,
a/D
maker/N
of/I
electronic/J
patient/N
monitoring/N
systems/N
,/,
was/V
up/I
to/T
16/C
on/I
258,000/C
shares/N
yesterday/N
,/,
while/I
retailing/V
issue/N
Office/N
Club/N
was/V
unchanged/J
at/I
10/C
on/I
65,200/C
shares/N
./.
###/###
BizMart/N
,/,
another/D
retailing/V
stock/N
,/,
was/V
off/I
to/T
8/C
on/I
nearly/R
80,000/C
shares/N
./.
###/###
Other/J
favorites/N
of/I
growth-stock/J
analysts/N
and/C
money/N
managers/N
also/R
had/V
a/D
mixed/V
session/N
./.
###/###
Payco/N
American/N
,/,
a/D
credit/N
collection/N
concern/N
,/,
jumped/V
1/C
to/T
20/C
on/I
volume/N
of/I
93,000/C
,/,
and/C
Mail/N
Boxes/N
Etc./N
,/,
a/D
private/J
postal/J
services/N
company/N
,/,
advanced/V
to/T
23/C
on/I
volume/N
of/I
64,000/C
./.
###/###
But/C
Legent/N
,/,
a/D
systems/N
software/N
stock/N
,/,
was/V
down/I
to/T
29/C
on/I
39,300/C
shares/N
./.
###/###
Novell/N
,/,
a/D
computer/N
networking/V
concern/N
,/,
fell/V
1/C
to/T
30/C
on/I
152,000/C
shares/N
./.
###/###
Elsewhere/R
,/,
Valley/N
National/N
continued/V
its/P
slide/N
,/,
dropping/V
2/C
to/T
15/C
on/I
1.7/C
million/C
shares/N
./.
###/###
The/D
Arizona/N
banking/N
concern/N
is/V
facing/V
difficulties/N
related/V
to/T
weakness/N
in/I
the/D
real/J
estate/N
market/N
in/I
the/D
state/N
./.
###/###
Higher/J
earnings/N
helped/V
some/D
issues/N
./.
###/###
Amgen/N
rose/V
2/C
to/T
54/C
on/I
almost/R
800,000/C
shares/N
,/,
and/C
CVB/N
Financial/N
jumped/V
4/C
to/T
41/C
on/I
only/R
1,000/C
shares/N
./.
###/###
Why/W
ca/M
n't/R
we/P
teach/V
our/P
children/N
to/T
read/V
,/,
write/V
and/C
reckon/V
?/.
###/###
It/P
's/V
not/R
that/I
we/P
do/V
n't/R
know/V
how/W
to/T
,/,
because/I
we/P
do/V
./.
###/###
It/P
's/V
that/I
we/P
do/V
n't/R
want/V
to/T
./.
###/###
And/C
the/D
reason/N
we/P
do/V
n't/R
want/V
to/T
is/V
that/I
effective/J
education/N
would/M
require/V
us/P
to/T
relinquish/V
some/D
cherished/V
metaphysical/J
beliefs/N
about/I
human/J
nature/N
in/I
general/J
and/C
the/D
human/J
nature/N
of/I
young/J
people/N
in/I
particular/J
,/,
as/R
well/R
as/I
to/T
violate/V
some/D
cherished/V
vested/V
interests/N
./.
###/###
These/D
beliefs/N
so/R
dominate/V
our/P
educational/J
establishment/N
,/,
our/P
media/N
,/,
our/P
politicians/N
,/,
and/C
even/R
our/P
parents/N
that/I
it/P
seems/V
almost/R
blasphemous/J
to/T
challenge/V
them/P
./.
###/###
Here/R
is/V
an/D
example/N
./.
###/###
If/I
I/P
were/V
to/T
ask/V
a/D
sample/N
of/I
American/J
parents/N
,/,
``/`
Do/V
you/P
wish/V
the/D
elementary/J
schools/N
to/T
encourage/V
creativity/N
in/I
your/P
children/N
?/.
''/'
the/D
near-unanimous/J
answer/N
would/M
be/V
,/,
``/`
Yes/U
,/,
of/I
course/N
./.
''/'
###/###
But/C
what/W
do/V
we/P
mean/V
,/,
specifically/R
,/,
by/I
``/`
creativity/N
''/'
?/.
###/###
No/D
one/N
can/M
say/V
./.
###/###
In/I
practice/N
,/,
it/P
ends/V
up/I
being/V
equated/V
with/I
a/D
``/`
self-expression/N
''/'
that/W
encourages/V
the/D
youngsters/N
'/P
``/`
self-esteem/N
./.
''/'
###/###
The/D
result/N
is/V
a/D
generation/N
of/I
young/J
people/N
whose/W
ignorance/N
and/C
intellectual/J
incompetence/N
is/V
matched/V
only/R
by/I
their/P
good/J
opinion/N
of/I
themselves/P
./.
###/###
The/D
whole/J
notion/N
of/I
``/`
creativity/N
''/'
in/I
education/N
was/V
-LRB-/-
and/C
is/V
-RRB-/-
part/N
and/C
parcel/N
of/I
a/D
romantic/J
rebellion/N
against/I
disciplined/V
instruction/N
,/,
which/W
was/V
-LRB-/-
and/C
is/V
-RRB-/-
regarded/V
as/I
``/`
authoritarian/J
,/,
''/'
a/D
repression/N
and/C
frustration/N
of/I
the/D
latent/N
talents/N
and/C
the/D
wonderful/J
,/,
if/I
as/R
yet/R
undefined/J
,/,
potentialities/N
inherent/J
in/I
the/D
souls/N
of/I
all/P
our/P
children/N
./.
###/###
It/P
is/V
not/R
surprising/J
that/I
parents/N
find/V
this/D
romantic/J
extravagance/N
so/R
attractive/J
./.
###/###
Fortunately/R
,/,
these/D
same/J
parents/N
do/V
want/V
their/P
children/N
to/T
get/V
a/D
decent/J
education/N
as/R
traditionally/R
understood/V
,/,
and/C
they/P
have/V
enough/R
common/J
sense/N
to/T
know/V
what/W
that/I
demands/V
./.
###/###
Their/P
commitment/N
to/T
``/`
creativity/N
''/'
can/M
not/R
survive/V
adolescent/J
illiteracy/N
./.
###/###
American/J
education/N
's/P
future/N
will/M
be/V
determined/V
by/I
the/D
degree/N
to/T
which/W
we/P
--/:
all/D
of/I
us/P
--/:
allow/V
this/D
common/J
sense/N
to/T
prevail/V
over/I
the/D
illusions/N
that/I
we/P
also/R
share/V
./.
###/###
The/D
education/N
establishment/N
will/M
fight/V
against/I
common/J
sense/N
every/D
inch/N
of/I
the/D
way/N
./.
###/###
The/D
reasons/N
are/V
complex/J
,/,
but/C
one/C
simple/J
reason/N
ought/M
not/R
to/T
be/V
underestimated/V
./.
###/###
``/`
Progressive/J
education/N
''/'
-LRB-/-
as/I
it/P
was/V
once/R
called/V
-RRB-/-
is/V
far/R
more/R
interesting/J
and/C
agreeable/J
to/T
teachers/N
than/I
is/V
disciplined/V
instruction/N
./.
###/###
It/P
is/V
nice/J
for/I
teachers/N
to/T
think/V
they/P
are/V
engaged/V
in/I
``/`
personality/N
development/N
''/'
and/C
even/R
nicer/J
to/T
minimize/V
those/D
irksome/J
tests/N
with/I
often/R
disappointing/J
results/N
./.
###/###
It/P
also/R
provides/V
teachers/N
with/I
a/D
superior/J
self-definition/N
as/I
a/D
``/`
profession/N
,/,
''/'
since/I
they/P
will/M
have/V
passed/V
courses/N
in/I
educational/J
psychology/N
and/C
educational/J
philosophy/N
./.
###/###
I/P
myself/P
took/V
such/J
courses/N
in/I
college/N
,/,
thinking/V
I/P
might/M
end/V
up/I
a/D
schoolteacher/N
./.
###/###
They/P
could/M
all/R
fairly/R
be/V
described/V
as/I
``/`
pap/N
''/'
courses/N
./.
###/###
But/C
it/P
is/V
unfair/J
to/T
dump/V
on/I
teachers/N
,/,
as/I
distinct/J
from/I
the/D
educational/J
establishment/N
./.
###/###
I/P
know/V
many/J
schoolteachers/N
and/C
,/,
on/I
the/D
whole/N
,/,
they/P
are/V
seriously/R
committed/V
to/T
conscientious/J
teaching/N
./.
###/###
They/P
may/M
not/R
be/V
among/I
the/D
``/`
best/J
and/C
brightest/J
''/'
of/I
their/P
generation/N
--/:
there/E
are/V
very/R
few/J
such/J
people/N
,/,
by/I
definition/N
./.
###/###
But/C
they/P
need/M
not/R
be/V
to/T
do/V
their/P
jobs/N
well/R
./.
###/###
Yes/U
,/,
we/P
all/D
can/M
remember/V
one/C
or/C
two/C
truly/R
inspiring/J
teachers/N
from/I
our/P
school/N
days/N
./.
###/###
But/C
our/P
education/N
proceeded/V
at/I
the/D
hands/N
of/I
those/D
others/N
,/,
who/W
were/V
merely/R
competent/J
and/C
conscientious/J
./.
###/###
In/I
this/D
sense/N
,/,
a/D
teacher/N
can/M
be/V
compared/V
to/T
one/N
's/P
family/N
doctor/N
./.
###/###
If/I
he/P
were/V
brilliant/J
,/,
he/P
probably/R
would/M
not/R
be/V
a/D
family/N
doctor/N
in/I
the/D
first/J
place/N
./.
###/###
If/I
he/P
is/V
competent/J
and/C
conscientious/J
,/,
he/P
serves/V
us/P
well/R
./.
###/###
Our/P
teachers/N
are/V
not/R
an/D
important/J
factor/N
in/I
our/P
educational/J
crisis/N
./.
###/###
Whether/I
they/P
are/V
or/C
are/V
not/R
underpaid/J
is/V
a/D
problem/N
of/I
equity/N
;/:
it/P
is/V
not/R
an/D
educational/J
problem/N
./.
###/###
It/P
is/V
silly/J
libel/N
on/I
our/P
teachers/N
to/T
think/V
they/P
would/M
educate/V
our/P
children/N
better/J
if/I
only/R
they/P
got/V
a/D
few/J
thousand/C
dollars/N
a/D
year/N
more/R
./.
###/###
It/P
is/V
the/D
kind/N
of/I
libel/N
the/D
teachers/N
'/P
unions/N
do/V
n't/R
mind/V
spreading/V
,/,
for/I
their/P
own/J
narrow/J
purposes/N
./.
###/###
It/P
is/V
also/R
the/D
kind/N
of/I
libel/N
politicians/N
find/V
useful/J
,/,
since/I
it/P
helps/V
them/P
strike/V
a/D
friendly/J
posture/N
on/I
behalf/N
of/I
an/D
important/J
constituency/N
./.
###/###
But/C
there/E
is/V
not/R
one/C
shred/N
of/I
evidence/N
that/I
,/,
other/J
things/N
being/V
equal/J
,/,
salary/N
differentials/N
result/V
in/I
educational/J
differentials/N
./.
###/###
If/I
there/E
were/V
such/J
evidence/N
,/,
you/P
can/M
be/V
sure/J
you/P
would/M
have/V
heard/V
of/I
it/P
./.
###/###
If/I
we/P
wish/V
to/T
be/V
serious/J
about/I
American/J
education/N
,/,
we/P
know/V
exactly/R
what/W
to/T
do/V
--/:
and/C
,/,
just/R
as/I
important/J
,/,
what/W
not/R
to/T
do/V
./.
###/###
There/E
are/V
many/J
successful/J
schools/N
scattered/V
throughout/I
this/D
nation/N
,/,
some/D
of/I
them/P
in/I
the/D
poorest/J
of/I
ghettos/N
,/,
and/C
they/P
are/V
all/D
sending/V
us/P
the/D
same/J
message/N
./.
###/###
Conversely/R
,/,
there/E
are/V
the/D
majority/N
of/I
unsuccessful/J
schools/N
,/,
and/C
we/P
know/V
which/W
efforts/N
at/I
educational/J
reform/N
are/V
doomed/V
beforehand/R
./.
###/###
We/P
really/R
do/V
know/V
all/D
we/P
need/V
to/T
know/V
,/,
if/I
only/R
we/P
could/M
assimilate/V
this/D
knowledge/N
into/I
our/P
thinking/N
./.
###/###
In/I
this/D
respect/N
,/,
it/P
would/M
be/V
helpful/J
if/I
our/P
political/J
leaders/N
were/V
mute/J
,/,
rather/R
than/I
eloquently/R
``/`
concerned/V
./.
''/'
###/###
They/P
are/V
inevitably/R
inclined/V
to/T
echo/V
the/D
conventional/J
pap/N
,/,
since/I
this/D
is/V
the/D
least/J
controversial/J
option/N
that/W
is/V
open/J
to/T
them/P
./.
###/###
Thus/R
at/I
the/D
recent/J
governors/N
'/P
conference/N
on/I
education/N
,/,
Gov./N
Bill/N
Clinton/N
of/I
Arkansas/N
announced/V
that/I
``/`
this/D
country/N
needs/V
a/D
comprehensive/J
child-development/N
policy/N
for/I
children/N
under/I
five/C
./.
''/'
###/###
A/D
comprehensive/J
development/N
policy/N
for/I
governors/N
over/I
30/C
would/M
seem/V
to/T
be/V
a/D
more/R
pressing/J
need/N
./.
###/###
What/W
Gov./N
Clinton/N
is/V
advocating/V
,/,
in/I
effect/N
,/,
is/V
extending/V
the/D
educational/J
system/N
down/I
to/T
the/D
pre-kindergarten/N
years/N
./.
###/###
Whether/I
desirable/J
or/C
not/R
,/,
this/D
is/V
a/D
child-care/J
program/N
,/,
not/R
an/D
educational/J
program/N
./.
###/###
We/P
know/V
that/I
very/R
early/J
exposure/N
to/T
schooling/N
improves/V
performance/N
in/I
the/D
first/J
grade/N
,/,
but/C
afterward/R
the/D
difference/N
is/V
quickly/R
washed/V
away/R
./.
###/###
Let/V
us/P
sum/V
up/I
what/W
we/P
do/V
know/V
about/I
education/N
and/C
about/I
those/D
education/N
reforms/N
that/W
do/V
work/V
and/C
do/V
n't/R
work/V
:/:
--/:
``/`
Parental/J
involvement/N
''/'
is/V
a/D
bad/J
idea/N
./.
###/###
Parents/N
are/V
too/R
likely/J
to/T
blame/V
schools/N
for/I
the/D
educational/J
limitations/N
of/I
their/P
children/N
./.
###/###
Parents/N
should/M
be/V
involved/V
with/I
their/P
children/N
's/P
education/N
at/I
home/N
,/,
not/R
in/I
school/N
./.
###/###
They/P
should/M
see/V
to/T
it/P
that/I
their/P
kids/N
do/V
n't/R
play/V
truant/J
;/:
they/P
should/M
make/V
certain/J
that/I
the/D
children/N
spend/V
enough/J
time/N
doing/V
homework/N
;/:
they/P
should/M
scrutinize/V
the/D
report/N
card/N
./.
###/###
If/I
parents/N
are/V
dissatisfied/V
with/I
a/D
school/N
,/,
they/P
should/M
have/V
the/D
option/N
of/I
switching/V
to/T
another/D
./.
###/###
--/:
``/`
Community/N
involvement/N
''/'
is/V
an/D
even/R
worse/J
idea/N
./.
###/###
Here/R
,/,
the/D
experience/N
of/I
New/N
York/N
City/N
is/V
decisive/J
./.
###/###
Locally/R
elected/V
school/N
boards/N
,/,
especially/R
in/I
our/P
larger/J
cities/N
,/,
become/V
the/D
prey/N
of/I
ambitious/J
,/,
generally/R
corrupt/J
,/,
and/C
invariably/R
demagogic/J
local/J
politicians/N
or/C
would-be/J
politicians/N
./.
###/###
New/N
York/N
is/V
in/I
the/D
process/N
of/I
trying/V
to/T
disengage/V
itself/P
from/I
a/D
20-year-old/J
commitment/N
to/T
this/D
system/N
of/I
school/N
governance/N
,/,
even/R
as/I
Chicago/N
and/C
other/J
cities/N
are/V
moving/V
to/T
institute/V
it/P
./.
###/###
--/:
In/I
most/J
states/N
,/,
increasing/V
expenditures/N
on/I
education/N
,/,
in/I
our/P
current/J
circumstances/N
,/,
will/M
probably/R
make/V
things/N
worse/J
,/,
not/R
better/J
./.
###/###
The/D
reason/N
is/V
simple/J
:/:
Education/N
takes/V
place/N
in/I
the/D
classroom/N
,/,
where/W
the/D
influence/N
of/I
money/N
is/V
minimal/J
./.
###/###
Decades/N
of/I
educational/J
research/N
tell/V
us/P
unequivocally/R
that/I
even/R
smaller/J
classes/N
have/V
zero/C
effect/N
on/I
the/D
academic/J
performance/N
of/I
the/D
pupils/N
--/:
though/I
they/P
may/M
sometimes/R
be/V
desirable/J
for/I
other/J
reasons/N
./.
###/###
The/D
new/J
money/N
flows/V
into/I
the/D
already/R
top-heavy/J
administrative/J
structure/N
,/,
which/W
busies/N
itself/P
piling/V
more/J
and/C
more/J
paper/N
work/N
on/I
the/D
teachers/N
./.
###/###
There/E
is/V
neither/D
mystery/N
nor/C
paradox/N
in/I
the/D
fact/N
that/I
as/I
educational/J
expenditures/N
-LRB-/-
in/I
real/J
terms/N
-RRB-/-
have/V
increased/V
sharply/R
in/I
the/D
past/N
quarter-of-a-century/J
--/:
we/P
now/R
spend/V
more/R
per/I
pupil/N
than/I
any/D
other/J
country/N
in/I
the/D
world/N
--/:
educational/J
performance/N
has/V
declined/V
./.
###/###
That/D
is/V
the/D
way/N
the/D
system/N
works/V
./.
###/###
--/:
Students/N
should/M
move/V
up/I
the/D
educational/J
ladder/N
as/I
their/P
academic/J
potential/N
allows/V
./.
###/###
No/D
student/N
should/M
be/V
permitted/V
to/T
be/V
graduated/V
from/I
elementary/J
school/N
without/I
having/V
mastered/V
the/D
3/C
R/N
's/V
at/I
the/D
level/N
that/W
prevailed/V
20/C
years/N
ago/I
./.
###/###
This/D
means/V
``/`
tracking/N
,/,
''/'
whose/W
main/J
purpose/N
is/V
less/J
to/T
permit/V
the/D
gifted/J
youngsters/N
to/T
flourish/V
-LRB-/-
though/I
that/D
is/V
clearly/R
desirable/J
-RRB-/-
than/I
to/T
ensure/V
that/I
the/D
less/R
gifted/J
get/V
the/D
necessary/J
grounding/N
for/I
further/J
study/N
or/C
for/I
entering/V
the/D
modern/J
world/N
of/I
work/N
./.
###/###
The/D
notion/N
that/I
tracking/N
is/V
somehow/R
``/`
undemocratic/J
''/'
is/V
absurd/J
./.
###/###
The/D
purpose/N
of/I
education/N
is/V
to/T
encourage/V
young/J
men/N
and/C
women/N
to/T
realize/V
their/P
full/J
academic/J
potential/N
./.
###/###
No/D
one/C
in/I
his/P
right/J
mind/N
actually/R
believes/V
that/I
we/P
all/D
have/V
an/D
equal/J
academic/J
potential/N
./.
###/###
--/:
It/P
is/V
generally/R
desirable/J
to/T
use/V
older/J
textbooks/N
--/:
many/J
of/I
them/P
,/,
alas/U
,/,
out/I
of/I
print/N
--/:
rather/R
than/I
newer/J
ones/N
./.
###/###
The/D
latter/J
are/V
modish/J
,/,
trendy/J
,/,
often/R
downright/J
silly/N
,/,
and/C
at/I
best/J
insubstantial/J
./.
###/###
They/P
are/V
based/V
on/I
dubious/J
psychological/J
and/C
sociological/J
theories/N
rather/R
than/I
on/I
educational/J
experience/N
./.
###/###
One/C
of/I
the/D
reasons/N
American/J
students/N
do/V
so/R
poorly/R
in/I
math/N
tests/N
,/,
as/I
compared/V
with/I
British/J
,/,
French/J
,/,
German/J
or/C
Japanese/J
students/N
,/,
is/V
the/D
influence/N
of/I
the/D
``/`
New/N
Math/N
''/'
on/I
American/J
textbooks/N
and/C
teaching/N
methods/N
./.
###/###
Anyone/N
who/W
wants/V
to/T
appreciate/V
just/R
how/W
bizarre/J
this/D
situation/N
is/V
--/:
with/I
students/N
who/W
ca/M
n't/R
add/V
or/C
subtract/V
``/`
learning/V
''/'
the/D
conceptual/J
basis/N
of/I
mathematical/J
theory/N
--/:
should/M
read/V
the/D
article/N
by/I
Caleb/N
Nelson/N
-LRB-/-
himself/P
a/D
recent/J
math/N
major/N
at/I
Harvard/N
-RRB-/-
in/I
the/D
November/N
American/N
Spectator/N
./.
###/###
--/:
Most/R
important/J
of/I
all/D
,/,
schools/N
should/M
have/V
principals/N
with/I
a/D
large/J
measure/N
of/I
authority/N
over/I
the/D
faculty/N
,/,
the/D
curriculum/N
,/,
and/C
all/D
matters/N
of/I
student/N
discipline/N
./.
###/###
Study/N
after/I
study/N
--/:
the/D
most/R
recent/J
from/I
the/D
Brookings/N
Institution/N
--/:
tells/V
us/P
that/I
the/D
best/J
schools/N
are/V
those/D
that/W
are/V
free/J
of/I
outside/J
interference/N
and/C
are/V
governed/V
by/I
a/D
powerful/J
head/N
./.
###/###
With/I
that/D
authority/N
,/,
of/I
course/N
,/,
goes/V
an/D
unambiguous/J
accountability/N
./.
###/###
Schools/N
that/W
are/V
structured/V
in/I
this/D
way/N
produce/V
students/N
with/I
higher/J
morale/N
and/C
superior/J
academic/J
performance/N
./.
###/###
This/D
is/V
a/D
fact/N
--/:
though/I
,/,
in/I
view/N
of/I
all/P
the/D
feathers/N
that/W
are/V
ruffled/V
by/I
this/D
fact/N
,/,
it/P
is/V
not/R
surprising/J
that/I
one/N
hears/V
so/R
little/J
about/I
it/P
./.
###/###
Mr./N
Kristol/N
,/,
an/D
American/N
Enterprise/N
Institute/N
fellow/N
,/,
co-edits/V
The/N
Public/N
Interest/N
and/C
publishes/V
The/N
National/N
Interest/N
./.
###/###
International/N
Business/N
Machines/N
Corp./N
unveiled/V
a/D
broad/J
strategy/N
to/T
tackle/V
the/D
biggest/J
problem/N
that/I
manufacturers/N
face/V
when/W
computerizing/V
their/P
operations/N
:/:
Most/J
machines/N
ca/M
n't/R
talk/V
to/T
each/D
other/J
./.
###/###
The/D
company/N
unveiled/V
more/J
than/I
50/C
products/N
,/,
mostly/R
software/N
,/,
that/W
are/V
designed/V
to/T
integrate/V
the/D
three/C
areas/N
of/I
a/D
manufacturing/N
operation/N
--/:
the/D
plant/N
floor/N
,/,
design/N
operations/N
and/C
production/N
planning/N
./.
###/###
The/D
aim/N
,/,
ultimately/R
,/,
is/V
to/T
increase/V
the/D
flow/N
of/I
information/N
into/I
a/D
manufacturer/N
's/P
main/J
computer/N
network/N
for/I
use/N
in/I
business/N
planning/N
,/,
marketing/N
and/C
other/J
operations/N
./.
###/###
Manufacturers/N
have/V
already/R
spent/V
so/R
heavily/R
on/I
automation/N
that/I
they/P
are/V
one/C
of/I
the/D
computer/N
industry/N
's/P
leading/V
revenue/N
sources/N
./.
###/###
But/C
many/J
manufacturers/N
find/V
that/D
communication/N
between/I
different/J
computers/N
has/V
been/V
rendered/V
nearly/R
impossible/J
by/I
the/D
babel/N
of/I
computer/N
languages/N
used/V
by/I
different/J
machines/N
,/,
including/V
robots/N
and/C
machine/N
tools/N
./.
###/###
IBM/N
's/P
announcement/N
,/,
which/W
was/V
expected/V
and/C
will/M
formally/R
be/V
made/V
to/T
customers/N
today/N
,/,
also/R
marks/V
an/D
attempt/N
to/T
gain/V
credibility/N
on/I
the/D
plant/N
floor/N
,/,
where/W
Digital/N
Equipment/N
Corp./N
has/V
long/R
dominated/V
and/C
where/W
Hewlett-Packard/N
Co./N
has/V
recently/R
gained/V
market/N
share/N
./.
###/###
Consultants/N
have/V
said/V
that/I
it/P
will/M
take/V
a/D
while/N
for/I
all/P
the/D
pieces/N
of/I
the/D
IBM/N
strategy/N
to/T
fall/V
into/I
place/N
,/,
even/R
though/I
the/D
specific/J
products/N
IBM/N
unveiled/V
will/M
generally/R
be/V
available/J
by/I
the/D
end/N
of/I
the/D
first/J
quarter/N
./.
###/###
Sam/N
Albert/N
,/,
a/D
consultant/N
in/I
Scarsdale/N
,/,
N.Y./N
,/,
said/V
that/I
in/I
the/D
past/N
IBM/N
has/V
developed/V
broad/J
software/N
strategies/N
only/R
for/I
problems/N
that/W
crossed/V
industry/N
lines/N
./.
###/###
He/P
said/V
he/P
believes/V
IBM/N
's/P
decision/N
to/T
invest/V
this/D
sort/N
of/I
effort/N
into/I
a/D
single/J
industry/N
showed/V
that/I
it/P
was/V
getting/V
serious/J
about/I
understanding/V
customers/N
'/P
problems/N
and/C
was/V
n't/R
just/R
selling/V
technology/N
./.
###/###
He/P
said/V
he/P
expects/V
IBM/N
to/T
unveil/V
similar/J
strategies/N
for/I
other/J
industries/N
in/I
coming/V
months/N
./.
###/###
IBM/N
's/P
push/N
is/V
also/R
unusual/J
in/I
its/P
approach/N
to/T
marketing/N
./.
###/###
Rather/R
than/I
just/R
send/V
out/I
marketing/N
people/N
to/T
knock/V
on/I
customers/N
'/P
doors/N
,/,
IBM/N
is/V
making/V
several/J
hundred/C
of/I
its/P
own/J
manufacturing/V
people/N
available/J
to/T
discuss/V
specific/J
needs/N
./.
###/###
IBM/N
's/P
manufacturing/V
staff/N
also/R
will/M
be/V
able/J
to/T
provide/V
software/N
that/I
IBM/N
has/V
developed/V
internally/R
and/C
will/M
be/V
able/J
to/T
form/V
teams/N
with/I
a/D
customer/N
to/T
jointly/R
solve/V
manufacturing/N
problems/N
./.
###/###
IBM/N
can/M
obviously/R
bring/V
its/P
expertise/N
to/T
bear/V
on/I
problems/N
related/V
to/T
computer/N
manufacturing/N
,/,
but/C
it/P
could/M
also/R
help/V
customers/N
on/I
software/N
to/T
deal/V
with/I
such/J
things/N
as/I
changes/N
in/I
engineering/V
documents/N
./.
###/###
``/`
We/P
may/M
not/R
have/V
every/D
manufacturing/N
problem/N
,/,
but/C
we/P
have/V
most/J
,/,
''/'
said/V
George/N
Conrades/N
,/,
IBM/N
's/P
top/J
marketing/N
official/N
./.
###/###
Japan/N
's/P
Big/N
Four/N
securities/N
firms/N
posted/V
first-half/J
unconsolidated/V
results/N
that/W
mirrored/V
softer/J
performance/N
as/I
a/D
result/N
of/I
slower/J
turnover/N
on/I
the/D
Tokyo/N
Stock/N
Exchange/N
during/I
July/N
and/C
August/N
./.
###/###
Figures/N
for/I
the/D
period/N
ended/V
Sept./N
30/C
for/I
the/D
four/C
largest/J
brokerage/N
firms/N
--/:
Nomura/N
Securities/N
Co./N
,/,
Daiwa/N
Securities/N
Co./N
,/,
Yamaichi/N
Securities/N
Co./N
and/C
Nikko/N
Securities/N
--/:
also/R
reflected/V
a/D
changeover/N
to/T
a/D
fiscal/J
year/N
ending/V
March/N
31/C
,/,
replacing/V
the/D
12-month/J
term/N
formerly/R
finishing/V
Sept./N
30/C
./.
###/###
As/I
a/D
result/N
,/,
brokerage/N
house/N
officials/N
said/V
,/,
appropriate/J
comparisons/N
from/I
the/D
same/J
period/N
a/D
year/N
earlier/R
were/V
unavailable/J
./.
###/###
Operating/V
profit/N
,/,
pretax/N
profit/N
and/C
net/J
income/N
results/N
,/,
however/R
,/,
were/V
provided/V
for/I
the/D
immediately/R
preceding/V
six-month/J
period/N
./.
###/###
The/D
statistics/N
follow/V
a/D
year-on-year/J
rebound/N
in/I
consolidated/V
and/C
unconsolidated/V
results/N
in/I
the/D
full/J
fiscal/J
year/N
ended/V
in/I
March/N
1989/C
,/,
recovering/V
from/I
dismal/J
results/N
in/I
the/D
prior/J
fiscal/J
year/N
as/I
a/D
result/N
of/I
the/D
October/N
1987/C
stock/N
market/N
crash/N
./.
###/###
Nomura/N
said/V
its/P
pretax/N
profits/N
inched/V
up/I
0.9/C
%/N
to/T
248.91/C
billion/C
yen/N
-LRB-/-
US$/$
1.75/C
billion/C
-RRB-/-
from/I
246.60/C
billion/C
yen/N
in/I
the/D
six/C
months/N
ended/V
March/N
31/C
./.
###/###
Total/J
operating/V
profit/N
fell/V
3.1/C
%/N
to/T
486.1/C
billion/C
yen/N
from/I
501.61/C
billion/C
yen/N
./.
###/###
Net/J
income/N
,/,
however/R
,/,
rose/V
3.7/C
%/N
to/T
107.87/C
billion/C
yen/N
from/I
103.98/C
billion/C
yen/N
./.
###/###
Per-share/J
net/N
rose/V
to/T
55.10/C
yen/N
from/I
54.51/C
yen/N
./.
###/###
Daiwa/N
said/V
its/P
pretax/N
profits/N
surged/V
9.6/C
%/N
to/T
171.04/C
billion/C
yen/N
from/I
156.12/C
billion/C
yen/N
in/I
the/D
preceding/V
six-month/J
term/N
./.
###/###
Operating/V
profit/N
rose/V
5.5/C
%/N
to/T
332.38/C
billion/C
yen/N
from/I
315.12/C
billion/C
yen/N
./.
###/###
Net/J
income/N
jumped/V
21/C
%/N
to/T
79.03/C
billion/C
yen/N
from/I
65.53/C
billion/C
yen/N
./.
###/###
Per-share/J
net/N
rose/V
to/T
62.04/C
yen/N
from/I
51.50/C
yen/N
./.
###/###
Yamaichi/N
said/V
its/P
pretax/N
profit/N
increased/V
8.9/C
%/N
to/T
117.94/C
billion/C
yen/N
from/I
108.28/C
billion/C
yen/N
./.
###/###
Operating/V
profit/N
rose/V
5.3/C
%/N
to/T
279.75/C
billion/C
yen/N
from/I
265.79/C
billion/C
yen/N
./.
###/###
Net/J
income/N
surged/V
21/C
%/N
to/T
55.59/C
billion/C
yen/N
from/I
46.02/C
billion/C
yen/N
./.
###/###
Per-share/J
net/N
rose/V
to/T
47.46/C
yen/N
from/I
39.31/C
yen/N
./.
###/###
Nikko/N
's/P
pretax/N
profit/N
rose/V
1.6/C
%/N
to/T
130.25/C
billion/C
yen/N
from/I
128.19/C
billion/C
yen/N
./.
###/###
Operating/V
profit/N
rose/V
4/C
%/N
to/T
293.29/C
billion/C
yen/N
from/I
282.08/C
billion/C
yen/N
./.
###/###
Net/J
income/N
rose/V
23/C
%/N
to/T
63.52/C
billion/C
yen/N
from/I
51.65/C
billion/C
yen/N
./.
###/###
Per-share/J
net/N
rose/V
to/T
44.08/C
yen/N
from/I
36.13/C
yen/N
./.
###/###
Harken/N
Energy/N
Corp./N
of/I
Dallas/N
said/V
it/P
will/M
drop/V
its/P
$/$
11.75-a-share/J
,/,
or/C
$/$
190/C
million/C
,/,
offer/N
for/I
Tesoro/N
Petroleum/N
Corp./N
if/I
the/D
two/C
companies/N
do/V
n't/R
have/V
an/D
agreement/N
to/T
merge/V
by/I
Dec./N
15/C
./.
###/###
Harken/N
,/,
which/W
made/V
its/P
offer/N
in/I
August/N
,/,
said/V
it/P
still/R
is/V
awaiting/V
a/D
response/N
to/T
its/P
offer/N
from/I
Tesoro/N
's/P
board/N
./.
###/###
Harken/N
also/R
said/V
that/D
its/P
financing/N
from/I
Bankers/N
Trust/N
Co./N
has/V
been/V
extended/V
until/I
Dec./N
15/C
to/T
give/V
Tesoro/N
's/P
board/N
time/N
to/T
consider/V
the/D
offer/N
at/I
a/D
Tesoro/N
board/N
meeting/N
scheduled/V
for/I
mid-November/N
./.
###/###
Harken/N
,/,
which/W
owns/V
about/I
800/C
retail/N
gas/N
stations/N
,/,
has/V
said/V
it/P
is/V
particularly/R
interested/J
in/I
Tesoro/N
's/P
refinery/N
because/I
it/P
would/M
fill/V
a/D
gap/N
in/I
its/P
business/N
./.
###/###
However/R
,/,
Tesoro/N
,/,
based/V
in/I
Houston/N
,/,
already/R
has/V
rejected/V
a/D
suitor/N
in/I
the/D
past/N
year/N
./.
###/###
Francis/N
D./N
John/N
,/,
35-year-old/J
president/N
,/,
will/M
assume/V
the/D
additional/J
job/N
of/I
chief/N
executive/N
officer/N
./.
###/###
He/P
succeeds/V
Paul/N
J./N
Montle/N
,/,
42/C
,/,
who/W
will/M
remain/V
chairman/N
./.
###/###
National/N
Environmental/N
also/R
said/V
it/P
will/M
move/V
its/P
headquarters/N
from/I
Hingham/N
to/T
Folcroft/N
,/,
Pa./N
,/,
the/D
site/N
of/I
its/P
sludge/N
dewatering/V
facility/N
./.
###/###
National/N
Environmental/N
,/,
formerly/R
Yankee/N
Cos./N
,/,
is/V
a/D
sludge/N
treatment/N
company/N
./.
###/###
Eagle/N
Clothes/N
Inc./N
,/,
which/W
is/V
operating/V
under/I
Chapter/N
11/C
of/I
the/D
federal/J
Bankruptcy/N
Code/N
,/,
said/V
it/P
reached/V
an/D
agreement/N
with/I
its/P
creditors/N
./.
###/###
Under/I
the/D
accord/N
,/,
Albert/N
Roth/N
,/,
chairman/N
and/C
chief/N
executive/N
officer/N
,/,
and/C
Arthur/N
Chase/N
,/,
Sam/N
Beigel/N
,/,
and/C
Louis/N
Polsky/N
will/M
resign/V
as/I
officers/N
and/C
directors/N
of/I
the/D
menswear/N
retailer/N
./.
###/###
Mr./N
Roth/N
,/,
who/W
has/V
been/V
on/I
leave/N
from/I
his/P
posts/N
,/,
will/M
be/V
succeeded/V
by/I
Geoffrie/N
D./N
Lurie/N
of/I
GDL/N
Management/N
Inc./N
,/,
which/W
is/V
Eagle/N
's/P
crisis/N
manager/N
./.
###/###
Mr./N
Lurie/N
is/V
currently/R
co-chief/N
executive/N
./.
###/###
Arnold/N
Levine/N
,/,
acting/V
co-chief/N
executive/N
,/,
will/M
continue/V
as/R
senior/J
vice/N
president/N
and/C
a/D
board/N
member/N
./.
###/###
Eagle/N
also/R
said/V
it/P
received/V
a/D
commitment/N
for/I
as/R
much/J
as/I
$/$
8/C
million/C
in/I
financing/N
from/I
Norfolk/N
Capital/N
Group/N
Inc/N
./.
###/###
In/I
addition/N
,/,
a/D
Norfolk/N
affiliate/N
,/,
York/N
Capital/N
Inc./N
,/,
will/M
purchase/V
all/D
of/I
the/D
interests/N
of/I
Eagle/N
's/P
secured/V
lenders/N
,/,
which/W
total/V
$/$
11.5/C
million/C
,/,
and/C
guarantee/V
as/R
much/R
as/I
$/$
8.2/C
million/C
in/I
payments/N
to/T
Eagle/N
's/P
unsecured/J
creditors/N
./.
###/###
A/D
committee/N
representing/V
the/D
unsecured/J
creditors/N
agreed/V
to/T
accept/V
24/C
cents/N
on/I
the/D
dollar/N
,/,
Eagle/N
said/V
./.
###/###
The/D
plan/N
would/M
extend/V
the/D
period/N
under/I
which/W
Eagle/N
has/V
the/D
exclusive/J
right/N
to/T
file/V
a/D
reorganization/N
plan/N
./.
###/###
It/P
would/M
extinguish/V
all/D
of/I
Eagle/N
's/P
existing/V
capital/N
stock/N
and/C
issue/V
new/J
stock/N
to/T
York/N
as/I
sole/J
holder/N
./.
###/###
A/D
bankruptcy/N
court/N
hearing/N
is/V
set/V
for/I
Nov./N
3/C
on/I
these/D
accords/N
./.
###/###
In/I
its/P
bankruptcy-law/N
petition/N
,/,
filed/V
in/I
U.S./N
Bankruptcy/N
Court/N
in/I
Manhattan/N
,/,
Eagle/N
said/V
its/P
problems/N
began/V
in/I
1987/C
and/C
early/R
1988/C
when/W
its/P
then-senior/J
lender/N
,/,
Bankers/N
Trust/N
Co./N
,/,
reduced/V
its/P
credit/N
line/N
./.
###/###
In/I
September/N
1988/C
,/,
Eagle/N
acquired/V
Biny/N
Clothing/N
Inc./N
,/,
a/D
closely/R
held/V
New/N
York/N
chain/N
operated/V
under/I
the/D
Bonds/N
name/N
./.
###/###
Eagle/N
's/P
management/N
retired/V
and/C
Biny/N
's/P
management/N
took/V
control/N
of/I
the/D
company/N
./.
###/###
At/I
the/D
time/N
,/,
Eagle/N
reached/V
a/D
new/J
credit/N
agreement/N
with/I
Bankers/N
Trust/N
and/C
with/I
Bank/N
Leumi/N
Trust/N
Co./N
of/I
New/N
York/N
for/I
$/$
8/C
million/C
,/,
and/C
a/D
new/J
subordinated/V
debt/N
accord/N
with/I
First/N
Century/N
Partners/N
and/C
Biny/N
management/N
for/I
$/$
2/C
million/C
./.
###/###
But/C
Eagle/N
said/V
the/D
financing/N
was/V
insufficient/J
and/C
sales/N
during/I
the/D
past/J
fiscal/J
year/N
sagged/V
./.
###/###
Under/I
Chapter/N
11/C
,/,
a/D
company/N
operates/V
under/I
protection/N
from/I
creditors/N
'/P
lawsuits/N
while/I
it/P
works/V
out/I
a/D
plan/N
to/T
pay/V
debts/N
./.
###/###
Standard/N
&/C
Poor/N
's/P
Corp./N
said/V
it/P
would/M
add/V
John/N
H./N
Harland/N
Co./N
,/,
an/D
Atlanta/N
check/N
printer/N
,/,
to/T
its/P
500-stock/J
index/N
,/,
effective/J
at/I
the/D
close/N
of/I
trading/V
on/I
Wednesday/N
./.
###/###
American/N
Medical/N
International/N
Inc./N
,/,
a/D
New/N
York/N
hospital/N
operator/N
,/,
will/M
be/V
deleted/V
from/I
the/D
index/N
at/I
that/D
time/N
./.
###/###
American/N
Medical/N
is/V
being/V
acquired/V
./.
###/###
The/D
tougher/J
new/J
regulations/N
under/I
the/D
savings-and-loan/J
bailout/N
law/N
are/V
accelerating/V
the/D
thrift/N
industry/N
's/P
shrinking/V
act/N
./.
###/###
Largely/R
to/T
meet/V
tougher/J
new/J
capital/N
requirements/N
,/,
thrifts/N
reduced/V
their/P
assets/N
$/$
13.4/C
billion/C
in/I
August/N
,/,
by/I
selling/V
such/J
assets/N
as/I
mortgage-backed/J
securities/N
and/C
loans/N
./.
###/###
Industry/N
assets/N
as/I
of/I
Aug./N
31/C
were/V
$/$
1.31/C
trillion/C
,/,
the/D
lowest/J
since/I
August/N
1988/C
./.
###/###
As/I
thrifts/N
sell/V
assets/N
to/T
improve/V
their/P
capital-to-asset/N
ratio/N
,/,
as/I
required/V
under/I
the/D
new/J
law/N
passed/V
in/I
August/N
,/,
they/P
must/M
also/R
reduce/V
liabilities/N
,/,
such/J
as/I
deposits/N
./.
###/###
As/I
interest/N
rates/N
paid/V
depositors/N
were/V
lowered/V
,/,
thrift/N
withdrawals/N
exceeded/V
deposits/N
by/I
$/$
5.1/C
billion/C
,/,
not/R
including/V
interest/N
credited/V
to/T
accounts/N
./.
###/###
It/P
was/V
the/D
third/J
consecutive/J
month/N
in/I
which/W
thrifts/N
shed/V
assets/N
to/T
increase/V
the/D
size/N
of/I
their/P
capital/N
in/I
relation/N
to/T
their/P
assets/N
,/,
the/D
Office/N
of/I
Thrift/N
Supervision/N
said/V
./.
###/###
The/D
asset/N
shrinkage/N
was/V
particularly/R
concentrated/V
in/I
several/J
large/J
California/N
institutions/N
./.
###/###
``/`
The/D
downsizing/V
of/I
the/D
thrift/N
industry/N
is/V
well/R
under/I
way/N
,/,
''/'
said/V
Bert/N
Ely/N
,/,
an/D
industry/N
consultant/N
in/I
Alexandria/N
,/,
Va/N
./.
###/###
``/`
This/D
suggests/V
the/D
bailout/N
law/N
is/V
having/V
a/D
more/R
dramatic/J
effect/N
than/I
anyone/N
would/M
have/V
imagined/V
so/R
soon/R
./.
''/'
###/###
James/N
Barth/N
,/,
an/D
economist/N
with/I
the/D
Office/N
of/I
Thrift/N
Supervision/N
,/,
also/R
attributed/V
some/D
of/I
the/D
outflow/N
to/T
seasonal/J
factors/N
./.
###/###
``/`
August/N
is/V
a/D
month/N
when/W
people/N
are/V
paying/V
school/N
tuition/N
,/,
''/'
he/P
said/V
./.
###/###
``/`
That/I
and/C
adjustment/N
to/T
the/D
new/J
law/N
were/V
the/D
biggest/J
factors/N
in/I
the/D
industry/N
./.
''/'
###/###
Not/R
including/V
thrifts/N
under/I
government/N
conservatorship/N
,/,
S&Ls/N
reduced/V
their/P
assets/N
by/I
$/$
10.1/C
billion/C
from/I
the/D
previous/J
month/N
,/,
and/C
deposit/N
outflows/N
totaled/V
$/$
3.9/C
billion/C
./.
###/###
For/I
the/D
264/C
insolvent/J
thrifts/N
under/I
government/N
management/N
at/I
the/D
end/N
of/I
August/N
,/,
assets/N
declined/V
by/I
$/$
3.3/C
billion/C
and/C
withdrawals/N
exceeded/V
deposits/N
by/I
$/$
1.2/C
billion/C
./.
###/###
Thrifts/N
raised/V
capital/N
mostly/R
by/I
selling/V
mortgages/N
and/C
mortgage-backed/J
securities/N
,/,
which/W
were/V
reduced/V
by/I
$/$
7.8/C
billion/C
in/I
August/N
from/I
the/D
prior/J
month/N
./.
###/###
As/I
of/I
Aug./N
31/C
,/,
thrifts/N
held/V
$/$
185/C
billion/C
in/I
mortgage-backed/J
securities/N
./.
###/###
The/D
deposit/N
numbers/N
for/I
August/N
marked/V
a/D
swing/N
back/R
to/T
huge/J
outflows/N
after/I
a/D
July/N
net/N
deposit/N
inflow/N
of/I
$/$
54/C
million/C
--/:
the/D
only/R
net/J
inflow/N
in/I
more/J
than/I
a/D
year/N
./.
###/###
Deposits/N
are/V
n't/R
expected/V
to/T
exceed/V
withdrawals/N
in/I
the/D
foreseeable/J
future/N
,/,
as/I
the/D
industry/N
continues/V
to/T
shrink/V
./.
###/###
``/`
I/P
think/V
we/P
are/V
going/V
to/T
see/V
deposit/N
shrinkage/N
continue/V
,/,
unless/I
we/P
see/V
big/J
changes/N
in/I
rates/N
,/,
''/'
Mr./N
Ely/N
said/V
./.
###/###
For/I
the/D
first/J
eight/C
months/N
of/I
1989/C
,/,
thrifts/N
'/P
withdrawals/N
exceeded/V
deposits/N
by/I
$/$
44.5/C
billion/C
./.
###/###
For/I
the/D
prior/J
year/N
,/,
deposits/N
exceeded/V
withdrawals/N
by/I
$/$
8.8/C
billion/C
./.
###/###
The/D
estimates/N
of/I
real/J
gross/J
national/J
product/N
prepared/V
by/I
the/D
Bureau/N
of/I
Economic/N
Analysis/N
in/I
the/D
Department/N
of/I
Commerce/N
significantly/R
understate/V
the/D
rate/N
of/I
economic/J
growth/N
./.
###/###
Since/I
the/D
bureau/N
's/P
estimates/N
for/I
the/D
business/N
sector/N
provide/V
the/D
numerator/N
for/I
the/D
productivity/N
ratios/N
calculated/V
by/I
the/D
Department/N
of/I
Labor/N
,/,
underestimated/V
growth/N
rates/N
artificially/R
depress/V
official/J
productivity/N
statistics/N
./.
###/###
If/I
this/D
thesis/N
is/V
correct/J
,/,
it/P
has/V
important/J
implications/N
for/I
macroeconomic/J
policies/N
:/:
It/P
may/M
lower/V
the/D
sense/N
of/I
urgency/N
behind/I
efforts/N
to/T
enact/V
tax/N
incentives/N
and/C
other/J
measures/N
to/T
increase/V
the/D
rate/N
of/I
growth/N
in/I
productivity/N
and/C
real/J
GNP/N
./.
###/###
It/P
would/M
also/R
affect/V
the/D
perceptions/N
of/I
the/D
board/N
of/I
governors/N
of/I
the/D
Federal/N
Reserve/N
System/N
,/,
and/C
the/D
informed/V
public/N
generally/R
,/,
as/I
to/T
what/W
constitutes/V
a/D
reasonable/J
degree/N
of/I
price/N
stability/N
./.
###/###
In/I
the/D
early/J
1980s/C
,/,
I/P
predicted/V
a/D
significant/J
acceleration/N
in/I
productivity/N
growth/N
over/I
the/D
rest/N
of/I
the/D
decade/N
./.
###/###
This/D
forecast/N
was/V
based/V
on/I
the/D
apparent/J
reversal/N
of/I
most/J
of/I
the/D
negative/J
forces/N
--/:
such/J
as/I
demographic/J
changes/N
,/,
the/D
oil/N
shock/N
and/C
accelerating/V
inflation/N
--/:
that/W
had/V
reduced/V
productivity/N
gains/N
in/I
the/D
1970s/C
./.
###/###
There/E
has/V
indeed/R
been/V
more/J
than/I
a/D
one/C
percentage/N
point/N
improvement/N
in/I
productivity/N
growth/N
since/I
1981/C
./.
###/###
But/C
I/P
had/V
expected/V
more/R
,/,
which/W
is/V
one/C
reason/N
I/P
began/V
looking/V
at/I
evidence/N
suggesting/V
defects/N
in/I
the/D
official/J
output/N
estimates/N
./.
###/###
The/D
evidence/N
does/V
not/R
clearly/R
support/V
the/D
view/N
that/I
the/D
downward/J
bias/N
in/I
output/N
growth/N
has/V
become/V
greater/J
during/I
the/D
1948-89/C
period/N
,/,
but/C
all/D
I/P
am/V
claiming/V
is/V
that/I
the/D
growth/N
trend/N
is/V
understated/V
./.
###/###
-LRB-/-
It/P
is/V
,/,
however/R
,/,
possible/J
,/,
that/I
further/J
study/N
will/M
reveal/V
increasing/V
bias/N
./.
-RRB-/-
###/###
This/D
bias/N
is/V
in/I
no/D
way/N
deliberate/J
./.
###/###
The/D
understatement/N
of/I
growth/N
is/V
due/J
largely/R
to/T
the/D
conservative/J
expedients/N
adopted/V
to/T
deal/V
with/I
deficiencies/N
in/I
basic/J
economic/J
data/N
./.
###/###
The/D
first/J
of/I
three/C
major/J
sources/N
of/I
error/N
is/V
the/D
use/N
of/I
labor/N
input/N
estimates/N
-LRB-/-
mainly/R
employment/N
or/C
hours/N
-RRB-/-
instead/R
of/I
output/N
estimates/N
for/I
those/D
sectors/N
,/,
such/J
as/I
governments/N
,/,
paid/V
household/N
services/N
and/C
private/J
non-profit/J
institutions/N
,/,
where/W
there/E
are/V
difficulties/N
in/I
assembling/V
output/N
data/N
./.
###/###
This/D
means/V
that/I
no/D
allowance/N
is/V
made/V
for/I
possible/J
increases/N
in/I
output/N
per/I
unit/N
of/I
labor/N
./.
###/###
In/I
an/D
unrelated/J
program/N
in/I
which/W
the/D
Labor/N
Department/N
does/V
estimate/V
output/N
per/I
employee/N
for/I
more/J
than/I
two-thirds/N
of/I
federal/J
civilian/J
employees/N
,/,
it/P
found/V
an/D
average/J
annual/J
rate/N
of/I
productivity/N
improvement/N
of/I
1.7/C
%/N
during/I
the/D
1980s/C
./.
###/###
Even/R
if/I
it/P
is/V
assumed/V
that/I
productivity/N
rose/V
no/R
more/R
than/I
half/D
as/R
quickly/R
in/I
the/D
rest/N
of/I
the/D
nonbusiness/N
sector/N
,/,
this/D
Labor/N
Department/N
estimate/N
indicates/V
a/D
downward/J
bias/N
in/I
the/D
real/J
GNP/N
estimates/N
of/I
0.2/C
percentage/N
point/N
a/D
year/N
,/,
on/I
average/N
./.
###/###
The/D
federal/J
productivity/N
estimators/N
use/V
labor/N
input/N
,/,
rather/R
than/I
output/N
,/,
data/N
for/I
their/P
calculations/N
of/I
half/D
of/I
private/J
financial/J
and/C
service/N
industries/N
as/R
well/R
./.
###/###
Independent/J
estimates/N
of/I
output/N
in/I
those/D
industries/N
,/,
including/V
one/C
by/I
the/D
Department/N
of/I
Labor/N
for/I
banking/N
,/,
suggests/V
that/D
productivity/N
in/I
finance/N
and/C
services/N
appears/V
to/T
have/V
risen/V
by/I
an/D
average/N
of/I
at/I
least/J
1.5/C
%/N
a/D
year/N
between/I
1948/C
and/C
1988/C
./.
###/###
Because/I
finance/N
and/C
services/N
contribute/V
10/C
%/N
to/T
final/J
business/N
product/N
,/,
missing/V
these/D
productivity/N
improvements/N
depresses/V
the/D
overall/J
growth/N
rate/N
by/I
0.15/C
%/N
a/D
year/N
./.
###/###
The/D
second/J
source/N
of/I
error/N
in/I
growth/N
statistics/N
is/V
the/D
use/N
of/I
inappropriate/J
deflators/N
to/T
adjust/V
for/I
price/N
changes/N
./.
###/###
I/P
estimate/V
that/I
these/D
mismeasurements/N
as/I
detailed/V
by/I
Martin/N
N./N
Baily/N
and/C
Robert/N
J./N
Gordon/N
add/V
a/D
further/J
0.12/C
percentage/N
point/N
to/T
the/D
downward/J
bias/N
in/I
the/D
growth/N
rate/N
of/I
real/J
business/N
product/N
./.
###/###
Finally/R
,/,
the/D
official/J
estimates/N
understate/V
growth/N
because/I
they/P
make/V
inadequate/J
allowance/N
for/I
improvements/N
in/I
quality/N
of/I
goods/N
and/C
services/N
./.
###/###
In/I
1985/C
,/,
a/D
new/J
price/N
index/N
for/I
computers/N
adjusted/V
for/I
changes/N
in/I
performance/N
characteristics/N
was/V
introduced/V
,/,
and/C
that/W
resulted/V
in/I
a/D
significantly/R
larger/J
increase/N
in/I
real/J
outlays/N
for/I
durable/J
goods/N
than/I
the/D
earlier/J
estimates/N
had/V
showed/V
./.
###/###
Since/I
then/R
,/,
further/J
research/N
argues/V
that/D
failure/N
to/T
take/V
account/N
of/I
quality/N
improvements/N
has/V
contributed/V
a/D
total/N
of/I
at/I
least/J
0.26/C
percentage/N
point/N
to/T
the/D
downward/J
bias/N
in/I
the/D
growth/N
rate/N
./.
###/###
In/I
sum/N
,/,
the/D
biases/N
ennumerated/V
above/I
indicate/V
a/D
0.7/C
percentage/N
point/N
understatement/N
in/I
growth/N
of/I
total/J
real/J
GNP/N
./.
###/###
For/I
the/D
private/J
domestic/J
business/N
economy/N
,/,
the/D
bias/N
was/V
a/D
bit/N
over/I
0.5/C
percentage/N
point/N
./.
###/###
In/I
other/J
words/N
,/,
the/D
growth/N
rates/N
of/I
both/D
total/N
GNP/N
and/C
real/J
private/J
business/N
product/N
per/I
labor/N
hour/N
have/V
been/V
underestimated/V
by/I
about/I
20/C
%/N
./.
###/###
Mr./N
Kendrick/N
is/V
professor/N
emeritus/N
of/I
economics/N
at/I
George/N
Washington/N
University/N
./.
###/###
He/P
is/V
co-author/N
of/I
``/`
Personal/N
Productivity/N
:/:
How/W
to/T
Increase/V
Your/P
Satisfaction/N
in/I
Living/V
''/'
-LRB-/-
M.E./N
Sharp/N
,/,
1988/C
-RRB-/-
./.
###/###
Union/N
Carbide/N
Corp./N
said/V
third-quarter/J
net/N
income/N
plunged/V
35/C
%/N
from/I
a/D
year/N
earlier/R
on/I
weakness/N
in/I
the/D
company/N
's/P
mainstay/N
chemicals/N
and/C
plastics/N
business/N
./.
###/###
Net/N
was/V
$/$
139/C
million/C
,/,
or/C
98/C
cents/N
a/D
share/N
,/,
for/I
the/D
quarter/N
,/,
compared/V
with/I
$/$
213/C
million/C
,/,
or/C
$/$
1.56/C
a/D
share/N
,/,
a/D
year/N
ago/I
./.
###/###
Sales/N
were/V
$/$
2.14/C
billion/C
,/,
up/I
1.6/C
%/N
from/I
$/$
2.11/C
billion/C
the/D
previous/J
year/N
./.
###/###
Carbide/N
,/,
like/I
other/J
companies/N
with/I
a/D
heavy/J
reliance/N
on/I
the/D
so-called/J
commodity/N
end/N
of/I
the/D
chemicals/N
industry/N
,/,
was/V
expected/V
to/T
post/V
earnings/N
sharply/R
lower/J
than/I
in/I
an/D
exceptionally/R
strong/J
1988/C
third/J
quarter/N
./.
###/###
But/C
the/D
company/N
's/P
latest/J
quarter/N
was/V
a/D
few/J
pennies/N
a/D
share/N
lower/J
than/I
the/D
more/R
pessimistic/J
projections/N
on/I
Wall/N
Street/N
./.
###/###
``/`
It/P
certainly/R
was/V
n't/R
a/D
disaster/N
,/,
but/C
it/P
does/V
show/V
weakness/N
''/'
in/I
some/D
of/I
the/D
company/N
's/P
chief/N
markets/N
,/,
said/V
George/N
Krug/N
,/,
a/D
chemicals-industry/N
analyst/N
at/I
Oppenheimer/N
&/C
Co/N
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
,/,
Carbide/N
closed/V
at/I
$/$
24.50/C
a/D
share/N
,/,
down/I
50/C
cents/N
./.
###/###
Prices/N
for/I
polyethylene/N
,/,
a/D
common/J
plastic/N
and/C
an/D
important/J
Carbide/N
product/N
,/,
started/V
to/T
fall/V
early/R
this/D
year/N
;/:
the/D
slide/N
accelerated/V
in/I
the/D
third/J
quarter/N
as/I
buyers/N
continued/V
to/T
trim/V
inventories/N
./.
###/###
Prices/N
also/R
fell/V
for/I
ethylene/N
oxide/N
and/C
glycols/N
,/,
products/N
used/V
in/I
making/V
antifreeze/N
./.
###/###
Some/D
producers/N
of/I
polyethylene/N
,/,
figuring/V
the/D
inventory/N
reductions/N
are/V
near/I
an/D
end/N
,/,
have/V
announced/V
price/N
boosts/N
./.
###/###
The/D
first/J
real/J
test/N
of/I
whether/I
prices/N
have/V
hit/V
bottom/N
may/M
come/V
in/I
the/D
next/J
several/J
weeks/N
,/,
when/W
the/D
new/J
prices/N
become/V
effective/J
./.
###/###
A/D
Carbide/N
spokesman/N
said/V
``/`
the/D
conditions/N
are/V
right/J
for/I
the/D
increase/N
to/T
hold/V
./.
''/'
###/###
For/I
the/D
third/J
quarter/N
,/,
operating/N
profit/N
from/I
Carbide/N
's/P
chemicals/N
and/C
plastics/N
business/N
fell/V
to/T
$/$
238/C
million/C
from/I
$/$
352/C
million/C
a/D
year/N
ago/I
,/,
before/I
accounting/V
for/I
taxes/N
and/C
interest/N
expense/N
./.
###/###
Operating/N
profit/N
from/I
carbon/N
products/N
,/,
such/J
as/I
graphite/N
electrodes/N
,/,
also/R
declined/V
,/,
to/T
$/$
6/C
million/C
from/I
$/$
20/C
million/C
./.
###/###
In/I
the/D
industrial-gases/J
segment/N
,/,
operating/N
profit/N
climbed/V
to/T
$/$
87/C
million/C
from/I
$/$
58/C
million/C
./.
###/###
The/D
latest/J
quarter/N
included/V
a/D
gain/N
of/I
about/I
$/$
62/C
million/C
on/I
the/D
sale/N
of/I
the/D
company/N
's/P
urethane/N
polyols/N
and/C
propylene/N
glycols/N
businesses/N
./.
###/###
Propylene/N
glycols/N
are/V
used/V
in/I
making/V
personal-care/J
products/N
such/J
as/I
shampoo/N
,/,
and/C
urethane/N
polyols/N
are/V
used/V
in/I
making/V
the/D
polyurethane/N
foam/N
found/V
in/I
furniture/N
cushioning/N
and/C
other/J
products/N
./.
###/###
That/D
gain/N
was/V
mostly/R
offset/V
by/I
a/D
loss/N
of/I
about/I
$/$
55/C
million/C
from/I
a/D
write-down/N
in/I
its/P
polysilicon/N
business/N
./.
###/###
Polysilicon/N
is/V
used/V
in/I
making/V
integrated/V
circuits/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
net/N
totaled/V
$/$
526/C
million/C
,/,
or/C
$/$
3.74/C
a/D
share/N
,/,
up/I
5/C
%/N
from/I
$/$
501/C
million/C
,/,
or/C
$/$
3.71/C
a/D
share/N
,/,
a/D
year/N
ago/I
./.
###/###
Sales/N
rose/V
7.7/C
%/N
to/T
$/$
6.66/C
billion/C
from/I
$/$
6.19/C
billion/C
./.
###/###
At/I
least/J
10/C
states/N
are/V
resisting/V
Drexel/N
Burnham/N
Lambert/N
Inc./N
's/P
nationwide/J
effort/N
to/T
settle/V
its/P
legal/J
troubles/N
,/,
and/C
some/D
might/M
instead/R
try/V
to/T
revoke/V
the/D
firm/N
's/P
license/N
to/T
sell/V
securities/N
within/I
their/P
borders/N
./.
###/###
The/D
reluctance/N
of/I
some/D
states/N
to/T
let/V
Drexel/N
off/I
the/D
hook/N
could/M
hamper/V
the/D
firm/N
's/P
attempts/N
to/T
polish/V
its/P
image/N
after/I
its/P
guilty/J
plea/N
to/T
six/C
felonies/N
last/J
month/N
,/,
say/V
several/J
people/N
familiar/J
with/I
the/D
discussions/N
./.
###/###
Up/I
to/T
now/R
,/,
Drexel/N
has/V
made/V
a/D
rapid-fire/J
series/N
of/I
settlements/N
with/I
25/C
states/N
and/C
the/D
commonwealth/N
of/I
Puerto/N
Rico/N
./.
###/###
Just/R
yesterday/N
,/,
New/N
Hampshire/N
announced/V
it/P
made/V
a/D
$/$
75,000/C
settlement/N
with/I
Drexel/N
,/,
a/D
record-tying/J
fine/N
for/I
a/D
securities-law/N
matter/N
in/I
that/D
state/N
./.
###/###
These/D
states/N
have/V
been/V
entering/V
into/I
settlements/N
with/I
Drexel/N
as/I
part/N
of/I
the/D
firm/N
's/P
efforts/N
to/T
operate/V
freely/R
anywhere/R
in/I
the/D
U.S./N
despite/I
its/P
record/N
as/I
an/D
admitted/V
felon/N
./.
###/###
But/C
individuals/N
familiar/J
with/I
the/D
generally/R
successful/J
Drexel/N
talks/N
say/V
the/D
firm/N
is/V
meeting/V
resistance/N
from/I
some/D
big/J
states/N
,/,
including/V
New/N
Jersey/N
,/,
New/N
York/N
,/,
California/N
,/,
Pennsylvania/N
,/,
Connecticut/N
and/C
Missouri/N
./.
###/###
Officials/N
in/I
some/D
of/I
these/D
states/N
say/V
they/P
do/V
n't/R
want/V
to/T
simply/R
accept/V
the/D
settlements/N
offered/V
by/I
Drexel/N
./.
###/###
They/P
question/V
if/I
Drexel/N
is/V
getting/V
easier/J
treatment/N
than/I
the/D
many/J
small/J
penny-stock/J
firms/N
whose/W
brokerage/N
licenses/N
are/V
routinely/R
revoked/V
./.
###/###
Drexel/N
has/V
to/T
settle/V
with/I
state/N
securities/N
regulators/N
in/I
the/D
wake/N
of/I
its/P
criminal/J
guilty/J
plea/N
and/C
a/D
related/V
civil/J
settlement/N
with/I
the/D
Securities/N
and/C
Exchange/N
Commission/N
that/W
includes/V
payment/N
of/I
$/$
650/C
million/C
in/I
penalties/N
./.
###/###
These/D
stem/V
from/I
a/D
two-year/J
federal/J
investigation/N
of/I
insider/N
trading/N
and/C
securities/N
fraud/N
on/I
Wall/N
Street/N
./.
###/###
Ohio/N
,/,
the/D
District/N
of/I
Columbia/N
,/,
Tennessee/N
and/C
Illinois/N
have/V
been/V
less/R
resistant/J
to/T
Drexel/N
than/I
the/D
other/J
six/C
states/N
,/,
but/C
nonetheless/R
have/V
refused/V
to/T
settle/V
so/R
far/R
,/,
say/V
those/D
familiar/J
with/I
the/D
discussions/N
./.
###/###
Drexel/N
says/V
it/P
does/V
n't/R
expect/V
any/D
of/I
its/P
state/N
brokerage/N
licenses/N
will/M
be/V
revoked/V
,/,
and/C
even/R
if/I
some/D
are/V
,/,
its/P
securities/N
business/N
would/M
n't/R
be/V
directly/R
hurt/V
./.
###/###
It/P
already/R
has/V
sold/V
its/P
retail/N
,/,
or/C
individual-investor/N
,/,
brokerage/N
network/N
;/:
securities/N
firms/N
do/V
n't/R
need/V
brokerage/N
licenses/N
for/I
non-retail/J
activities/N
such/J
as/I
investment/N
banking/N
./.
###/###
Still/R
,/,
if/I
nothing/N
else/R
,/,
a/D
revoked/V
brokerage/N
license/N
could/M
be/V
a/D
burden/N
because/I
it/P
must/M
be/V
disclosed/V
in/I
many/J
of/I
the/D
transactions/N
in/I
which/W
Drexel/N
could/M
be/V
involved/V
./.
###/###
Securities/N
regulators/N
praise/V
Drexel/N
for/I
its/P
energetic/J
effort/N
,/,
led/V
by/I
government-approved/J
general/J
counsel/N
Saul/N
S./N
Cohen/N
,/,
to/T
settle/V
its/P
legal/J
problems/N
with/I
the/D
states/N
./.
###/###
But/C
they/P
disagree/V
about/I
the/D
message/N
these/D
settlements/N
give/V
to/T
the/D
public/N
./.
###/###
``/`
There/E
was/V
a/D
lot/N
of/I
internal/J
debate/N
about/I
that/D
specific/J
issue/N
,/,
''/'
said/V
Susan/N
Bryant/N
,/,
Oklahoma/N
's/P
chief/N
securities/N
regulator/N
and/C
president/N
of/I
the/D
North/N
American/N
Securities/N
Administrators/N
Association/N
,/,
which/W
drafted/V
a/D
voluntary/J
settlement/N
plan/N
for/I
the/D
states/N
with/I
Drexel/N
./.
###/###
The/D
question/N
,/,
she/P
said/V
,/,
is/V
whether/I
Drexel/N
should/M
be/V
allowed/V
to/T
pay/V
and/C
move/V
on/I
,/,
or/C
``/`
whether/I
you/P
should/M
-LRB-/-
simply/R
-RRB-/-
revoke/V
the/D
license/N
when/W
someone/N
is/V
convicted/V
of/I
a/D
felony/N
./.
''/'
###/###
While/I
Ms./N
Bryant/N
's/P
state/N
went/V
ahead/R
and/C
accepted/V
Drexel/N
's/P
settlement/N
offer/N
of/I
$/$
25,000/C
,/,
she/P
said/V
:/:
``/`
I/P
do/V
n't/R
have/V
any/D
argument/N
with/I
those/D
who/W
came/V
to/T
different/J
conclusions/N
./.
###/###
I/P
can/M
see/V
both/D
sides/N
./.
''/'
###/###
Similarly/R
,/,
Alfred/N
Rubega/N
,/,
New/N
Hampshire/N
's/P
director/N
of/I
securities/N
regulation/N
,/,
said/V
his/P
state/N
had/V
n't/R
received/V
any/D
complaints/N
about/I
Drexel/N
,/,
so/I
it/P
really/R
could/M
n't/R
press/V
the/D
issue/N
./.
###/###
Still/R
,/,
``/`
I/P
understand/V
the/D
reasons/N
''/'
that/I
other/J
states/N
are/V
holding/V
out/I
,/,
he/P
said/V
./.
###/###
Mr./N
Cohen/N
,/,
the/D
Drexel/N
general/J
counsel/N
,/,
said/V
,/,
``/`
I/P
do/V
n't/R
think/V
,/,
as/I
we/P
say/V
in/I
investment/N
banking/N
,/,
that/I
`/`
by/I
the/D
end/N
of/I
the/D
day/N
'/'
we/P
'll/M
be/V
losing/V
any/D
licenses/N
./.
''/'
###/###
Asked/V
about/I
states/N
that/W
are/V
taking/V
a/D
hard/J
line/N
,/,
he/P
said/V
,/,
``/`
There/E
are/V
states/N
that/W
have/V
asked/V
for/I
additional/J
information/N
,/,
which/W
we/P
are/V
providing/V
to/T
them/P
./.
''/'
###/###
Mr./N
Cohen/N
said/V
more/R
than/I
$/$
2.8/C
million/C
has/V
been/V
paid/V
to/T
26/C
states/N
and/C
that/I
Drexel/N
still/R
expects/V
to/T
pay/V
out/I
a/D
total/N
of/I
$/$
11.5/C
million/C
./.
###/###
By/I
the/D
end/N
of/I
this/D
week/N
,/,
Drexel/N
should/M
have/V
another/D
three/C
to/T
four/C
settlements/N
,/,
Mr./N
Cohen/N
said/V
./.
###/###
``/`
The/D
rate/N
we/P
're/V
going/V
,/,
I/P
think/V
that/I
by/I
the/D
end/N
of/I
the/D
month/N
,/,
we/P
're/V
looking/V
to/T
have/V
a/D
total/N
of/I
30/C
to/T
35/C
,/,
''/'
he/P
said/V
./.
###/###
That/D
total/N
would/M
be/V
important/J
for/I
Drexel/N
./.
###/###
The/D
investment/N
bank/N
has/V
previously/R
announced/V
that/I
as/I
part/N
of/I
its/P
punishment/N
it/P
would/M
create/V
an/D
independent/J
foundation/N
to/T
promote/V
ethical/J
behavior/N
in/I
the/D
securities/N
industry/N
./.
###/###
A/D
proviso/N
to/T
that/D
promise/N
is/V
that/I
a/D
minimum/N
of/I
35/C
states/N
reach/V
settlement/N
agreements/N
before/I
next/J
Tuesday/N
./.
###/###
There/E
are/V
,/,
according/V
to/T
several/J
securities/N
commissioners/N
,/,
at/I
least/J
16/C
states/N
that/W
are/V
either/R
close/R
to/T
settlements/N
with/I
Drexel/N
or/C
who/W
do/V
n't/R
appear/V
opposed/V
to/T
settling/V
./.
###/###
Drexel/N
's/P
proposed/V
state/N
fines/N
have/V
been/V
based/V
on/I
a/D
state/N
's/P
population/N
and/C
on/I
the/D
size/N
of/I
Drexel/N
's/P
business/N
in/I
the/D
state/N
./.
###/###
New/N
Jersey/N
,/,
for/I
example/N
,/,
was/V
asked/V
to/T
accept/V
$/$
300,000/C
,/,
but/C
refused/V
./.
###/###
The/D
state/N
is/V
n't/R
ruling/V
out/I
revoking/V
Drexel/N
's/P
brokerage/N
license/N
./.
###/###
The/D
state/N
can/M
also/R
bar/V
Drexel/N
as/I
an/D
investment/N
adviser/N
./.
###/###
State/N
officials/N
wo/M
n't/R
describe/V
their/P
position/N
in/I
detail/N
,/,
but/C
James/N
McLelland/N
Smith/N
,/,
state/N
securities/N
chief/N
,/,
said/V
:/:
``/`
We/P
really/R
are/V
still/R
looking/V
at/I
it/P
and/C
have/V
informed/V
-LRB-/-
Drexel/N
-RRB-/-
that/I
the/D
proposal/N
is/V
really/R
not/R
sufficient/J
for/I
settlement/N
./.
''/'
###/###
Connecticut/N
already/R
has/V
issued/V
a/D
``/`
notice/N
of/I
intent/N
''/'
to/T
revoke/V
Drexel/N
's/P
brokerage/N
license/N
./.
###/###
It/P
is/V
one/C
of/I
the/D
states/N
that/W
have/V
met/V
with/I
Mr./N
Cohen/N
and/C
asked/V
for/I
additional/J
information/N
about/I
investors/N
'/P
accounts/N
and/C
other/J
matters/N
./.
###/###
``/`
This/D
particular/J
issue/N
goes/V
to/T
the/D
very/J
integrity/N
of/I
the/D
capital-formation/N
market/N
,/,
''/'
state/N
Banking/N
Commissioner/N
Howard/N
Brown/N
said/V
./.
###/###
A/D
banking/N
department/N
spokesman/N
added/V
:/:
``/`
Commissioner/N
Brown/N
does/V
n't/R
feel/V
that/D
money/N
alone/R
is/V
the/D
issue/N
here/R
./.
''/'
###/###
Particularly/R
touchy/J
are/V
the/D
cases/N
of/I
New/N
York/N
,/,
which/W
is/V
Drexel/N
's/P
base/N
,/,
and/C
California/N
,/,
the/D
base/N
of/I
Drexel/N
's/P
highly/R
profitable/J
junk-bond/N
operation/N
that/W
led/V
to/T
the/D
firm/N
's/P
legal/J
difficulties/N
./.
###/###
Neither/D
state/N
has/V
settled/V
,/,
and/C
officials/N
in/I
the/D
two/C
states/N
wo/M
n't/R
discuss/V
their/P
reasons/N
for/I
not/R
doing/V
so/R
./.
###/###
But/C
Drexel/N
has/V
made/V
it/P
clear/J
it/P
could/M
mount/V
a/D
significant/J
legal/J
battle/N
in/I
each/D
state/N
if/I
its/P
license/N
is/V
revoked/V
,/,
according/V
to/T
state/N
officials/N
./.
###/###
Ms./N
Bryant/N
,/,
the/D
head/N
of/I
the/D
state/N
securities/N
group/N
,/,
said/V
Drexel/N
has/V
done/V
a/D
better/J
job/N
of/I
settling/V
with/I
the/D
states/N
than/I
E.F./N
Hutton/N
did/V
after/I
its/P
guilty/J
plea/N
to/T
a/D
massive/J
check-kiting/J
scheme/N
several/J
years/N
ago/I
./.
###/###
Still/R
,/,
she/P
said/V
,/,
Drexel/N
's/P
trouble/N
with/I
some/D
states/N
is/V
n't/R
a/D
bad/J
thing/N
./.
###/###
``/`
This/D
process/N
should/M
point/V
out/I
that/I
it/P
's/V
not/R
going/V
to/T
be/V
easy/J
for/I
a/D
firm/N
that/W
's/V
convicted/V
of/I
a/D
felony/N
to/T
immediately/R
jump/V
back/R
into/I
the/D
retail/J
business/N
,/,
''/'
Ms./N
Bryant/N
said/V
./.
###/###
``/`
We/P
need/V
to/T
have/V
somebody/N
worried/V
so/I
they/P
do/V
n't/R
do/V
this/D
again/R
./.
''/'
###/###
These/D
are/V
the/D
26/C
states/N
,/,
including/V
the/D
commonwealth/N
of/I
Puerto/N
Rico/N
,/,
that/W
have/V
settled/V
with/I
Drexel/N
:/:
Alaska/N
,/,
Arkansas/N
,/,
Delaware/N
,/,
Georgia/N
,/,
Hawaii/N
,/,
Idaho/N
,/,
Indiana/N
,/,
Iowa/N
,/,
Kansas/N
,/,
Kentucky/N
,/,
Maine/N
,/,
Maryland/N
,/,
Minnesota/N
,/,
Mississippi/N
,/,
New/N
Hampshire/N
,/,
New/N
Mexico/N
,/,
North/N
Dakota/N
,/,
Oklahoma/N
,/,
Oregon/N
,/,
South/N
Carolina/N
,/,
South/N
Dakota/N
,/,
Utah/N
,/,
Vermont/N
,/,
Washington/N
,/,
Wyoming/N
and/C
Puerto/N
Rico/N
./.
###/###
Time/N
Warner/N
Inc./N
reported/V
a/D
third-quarter/J
net/J
loss/N
of/I
$/$
176/C
million/C
,/,
or/C
$/$
2.88/C
cents/N
a/D
share/N
,/,
reflecting/V
acquisition/N
costs/N
for/I
a/D
59.3/C
%/N
stake/N
in/I
Warner/N
Communications/N
Inc./N
and/C
the/D
purchase/N
method/N
of/I
accounting/V
for/I
the/D
transaction/N
./.
###/###
Separately/R
,/,
Warner/N
reported/V
a/D
net/J
loss/N
of/I
$/$
106/C
million/C
,/,
or/C
56/C
cents/N
a/D
share/N
,/,
including/V
merger/N
expenses/N
of/I
$/$
100/C
million/C
and/C
$/$
120/C
million/C
in/I
charges/N
associated/V
with/I
stock-appreciation-based/J
compensation/N
plans/N
./.
###/###
Time/N
Warner/N
is/V
in/I
the/D
process/N
of/I
completing/V
its/P
acquisition/N
of/I
the/D
remaining/V
Warner/N
shares/N
./.
###/###
Time/N
Warner/N
emphasized/V
in/I
a/D
news/N
release/N
that/I
it/P
should/M
be/V
evaluated/V
based/V
on/I
its/P
cash/N
flow/N
,/,
which/W
the/D
company/N
defined/V
as/I
earnings/N
before/I
interest/N
,/,
taxes/N
,/,
depreciation/N
and/C
amortization/N
./.
###/###
On/I
a/D
pro-forma/F
basis/N
,/,
assuming/V
the/D
merger/N
was/V
effective/J
Jan/N
1/C
,/,
1988/C
,/,
including/V
the/D
results/N
from/I
both/D
Time/N
Inc./N
and/C
all/D
of/I
Warner/N
,/,
that/I
cash/N
flow/N
figure/N
would/M
be/V
$/$
526/C
million/C
for/I
the/D
latest/J
quarter/N
,/,
more/R
than/I
double/V
the/D
comparable/J
figure/N
a/D
year/N
ago/I
,/,
or/C
$/$
242/C
million/C
,/,
according/V
to/T
Time/N
Warner/N
./.
###/###
Some/D
analysts/N
at/I
least/J
are/V
buying/V
that/D
argument/N
,/,
and/C
were/V
n't/R
alarmed/V
by/I
the/D
losses/N
./.
###/###
``/`
What/W
really/R
matters/V
is/V
the/D
operating/V
income/N
of/I
the/D
divisions/N
:/:
I/P
look/V
at/I
these/D
numbers/N
and/C
I/P
say/V
,/,
these/D
businesses/N
are/V
doing/V
well/R
,/,
''/'
said/V
Mark/N
Manson/N
,/,
a/D
vice/N
president/N
of/I
Donaldson/N
,/,
Lufkin/N
&/C
Jenrette/N
Securities/N
Corp/N
./.
###/###
``/`
For/I
example/N
,/,
Warner/N
made/V
more/J
than/I
$/$
100/C
million/C
from/I
filmed/V
entertainment/N
in/I
three/C
months/N
./.
###/###
That/D
's/V
a/D
big/J
number/N
./.
###/###
Warner/N
also/R
had/V
a/D
gain/N
of/I
more/R
than/I
13/C
%/N
from/I
records/N
and/C
music/N
publishing/N
,/,
even/R
though/I
the/D
domestic/J
record/N
business/N
was/V
sluggish/J
this/D
summer/N
./.
''/'
###/###
In/I
the/D
year-ago/J
third/J
quarter/N
,/,
Time/N
on/I
its/P
own/J
reported/V
net/J
income/N
of/I
$/$
81/C
million/C
,/,
or/C
$/$
1.42/C
a/D
share/N
./.
###/###
Combined/V
revenue/N
for/I
the/D
latest/J
quarter/N
of/I
Time/N
Warner/N
was/V
$/$
2.2/C
billion/C
,/,
compared/V
with/I
the/D
year-ago/J
Time/N
revenue/N
of/I
$/$
1.1/C
billion/C
./.
###/###
On/I
a/D
pro/F
forma/F
basis/N
,/,
including/V
all/D
of/I
Warner/N
's/P
earnings/N
,/,
Time/N
Warner/N
had/V
a/D
third-quarter/J
loss/N
of/I
$/$
217/C
million/C
,/,
compared/V
with/I
a/D
$/$
342/C
million/C
loss/N
a/D
year/N
earlier/R
./.
###/###
On/I
the/D
same/J
basis/N
,/,
revenue/N
rose/V
to/T
$/$
2.7/C
billion/C
from/I
$/$
2.2/C
billion/C
./.
###/###
For/I
the/D
third/J
quarter/N
,/,
Warner/N
's/P
$/$
106/C
million/C
loss/N
compared/V
with/I
a/D
year-ago/J
loss/N
of/I
$/$
113/C
million/C
,/,
or/C
90/C
cents/N
a/D
share/N
./.
###/###
Revenue/N
rose/V
to/T
$/$
1.5/C
billion/C
from/I
$/$
1.1/C
billion/C
./.
###/###
The/D
1988/C
figures/N
were/V
restated/V
to/T
include/V
the/D
results/N
of/I
Lorimar/N
Telepictures/N
Corp./N
,/,
which/W
Warner/N
acquired/V
in/I
January/N
./.
###/###
Time/N
Warner/N
's/P
operating/N
earnings/N
got/V
a/D
boost/N
from/I
Warner/N
's/P
record/N
box-office/N
results/N
./.
###/###
``/`
Batman/N
''/'
alone/R
has/V
racked/V
up/I
more/R
than/I
$/$
247/C
million/C
in/I
box-office/N
receipts/N
to/T
date/N
,/,
making/V
it/P
Warner/N
Bros/N
./.
'/'
largest/J
grossing/V
film/N
ever/R
./.
###/###
``/`
Lethal/N
Weapon/N
II/N
''/'
was/V
also/R
a/D
big/J
hit/N
./.
###/###
Warner/N
also/R
contributed/V
record/N
results/N
from/I
its/P
music/N
business/N
,/,
where/W
unit/N
sales/N
of/I
compact/J
discs/N
rose/V
more/J
than/I
50/C
%/N
from/I
a/D
year/N
ago/I
,/,
the/D
company/N
said/V
,/,
helped/V
by/I
Prince/N
's/P
``/`
Batman/N
''/'
soundtrack/N
./.
###/###
Time/N
Warner/N
said/V
its/P
cable/N
division/N
turned/V
in/I
a/D
77/C
%/N
increase/N
in/I
operating/N
cash/N
flow/N
,/,
to/T
$/$
166/C
million/C
from/I
$/$
94/C
million/C
,/,
reflecting/V
higher/J
per-subscriber/N
revenue/N
./.
###/###
In/I
addition/N
,/,
the/D
1988/C
results/N
included/V
a/D
$/$
20/C
million/C
charge/N
reflecting/V
a/D
reserve/N
for/I
relocation/N
related/V
expenses/N
at/I
American/N
Television/N
&/C
Communications/N
Corp/N
./.
###/###
On/I
the/D
other/J
hand/N
,/,
Time/N
Warner/N
said/V
its/P
operating/N
cash/N
flow/N
declined/V
in/I
the/D
quarter/N
for/I
its/P
magazine/N
division/N
,/,
its/P
books/N
division/N
and/C
the/D
Home/N
Box/N
Office/N
programming/V
division/N
./.
###/###
In/I
magazines/N
,/,
higher/J
advertising/N
revenues/N
at/I
Sports/N
Illustrated/N
and/C
Fortune/N
were/V
offset/V
by/I
lower/J
ad/N
revenue/N
for/I
other/J
major/J
magazines/N
./.
###/###
The/D
programming/V
division/N
saw/V
a/D
decline/N
in/I
operating/N
cash/N
flow/N
because/I
the/D
year-ago/J
quarter/N
included/V
a/D
$/$
12/C
million/C
dividend/N
from/I
Turner/N
Broadcasting/N
System/N
and/C
because/I
the/D
quarter/N
includes/V
expenses/N
associated/V
with/I
the/D
Nov./N
15/C
launch/N
of/I
HBO/N
's/P
Comedy/N
Channel/N
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
,/,
Time/N
Warner/N
closed/V
at/I
$/$
138.625/C
a/D
share/N
,/,
up/I
$/$
1.875/C
,/,
while/I
Warner/N
closed/V
at/I
$/$
63.875/C
a/D
share/N
,/,
up/I
12.5/C
cents/N
./.
###/###
Robert/N
J./N
Penn/N
,/,
president/N
and/C
chief/N
executive/N
officer/N
,/,
will/M
take/V
early/J
retirement/N
from/I
this/D
steelmaker/N
Dec/N
31/C
./.
###/###
William/N
S./N
Leavitt/N
,/,
chairman/N
,/,
said/V
Mr./N
Penn/N
,/,
58/C
years/N
old/J
,/,
would/M
continue/V
as/I
a/D
consultant/N
and/C
would/M
work/V
with/I
the/D
board/N
in/I
selecting/V
a/D
successor/N
./.
###/###
UNR/N
recently/R
emerged/V
from/I
bankruptcy-law/N
proceedings/N
that/W
left/V
64/C
%/N
of/I
the/D
reorganized/V
company/N
's/P
common/J
stock/N
in/I
the/D
hands/N
of/I
trustees/N
of/I
an/D
asbestos-disease/N
claims/N
trust/N
./.
###/###
The/D
company/N
said/V
it/P
would/M
have/V
no/D
further/J
comment/N
./.
###/###
Mr./N
Leavitt/N
,/,
37/C
,/,
was/V
elected/V
chairman/N
earlier/R
this/D
year/N
by/I
the/D
company/N
's/P
new/J
board/N
,/,
having/V
served/V
as/I
vice/N
president/N
for/I
legal/J
and/C
corporate/J
affairs/N
./.
###/###
His/P
father/N
,/,
David/N
S./N
Leavitt/N
,/,
was/V
chairman/N
and/C
chief/N
executive/N
until/I
his/P
death/N
in/I
an/D
accident/N
five/C
years/N
ago/I
,/,
at/I
which/W
time/N
Mr./N
Penn/N
was/V
named/V
president/N
./.
###/###
Some/D
House/N
Democrats/N
are/V
trying/V
to/T
head/V
off/I
an/D
appointment/N
by/I
President/N
Bush/N
to/T
the/D
board/N
that/W
oversees/V
the/D
savings-and-loan/J
bailout/N
,/,
contending/V
that/I
the/D
prospective/J
nominee/N
is/V
the/D
head/N
of/I
troubled/V
banks/N
himself/P
./.
###/###
Four/C
Democrats/N
on/I
the/D
House/N
Banking/N
Committee/N
sent/V
President/N
Bush/N
a/D
letter/N
stating/V
their/P
concerns/N
about/I
the/D
expected/V
appointment/N
of/I
James/N
Simmons/N
,/,
an/D
Arizona/N
banker/N
and/C
former/J
fund-raiser/N
for/I
Mr./N
Bush/N
,/,
to/T
the/D
Oversight/N
Board/N
of/I
the/D
Resolution/N
Trust/N
Corp/N
./.
###/###
The/D
Oversight/N
Board/N
,/,
created/V
in/I
the/D
savings-and-loan/J
law/N
signed/V
in/I
August/N
,/,
sets/V
policy/N
for/I
the/D
RTC/N
,/,
which/W
will/M
sell/V
hundreds/N
of/I
the/D
nation/N
's/P
sick/J
thrifts/N
and/C
billions/N
of/I
dollars/N
of/I
their/P
assets/N
./.
###/###
Treasury/N
Secretary/N
Nicholas/N
Brady/N
,/,
Federal/N
Reserve/N
Board/N
Chairman/N
Alan/N
Greenspan/N
and/C
Housing/N
and/C
Urban/N
Development/N
Secretary/N
Jack/N
Kemp/N
are/V
members/N
of/I
the/D
board/N
./.
###/###
President/N
Bush/N
must/M
appoint/V
two/C
other/J
members/N
,/,
one/N
a/D
Democrat/N
and/C
one/C
a/D
Republican/N
./.
###/###
An/D
administration/N
official/N
confirmed/V
last/J
week/N
that/I
Mr./N
Simmons/N
,/,
the/D
chairman/N
of/I
Valley/N
National/N
Bank/N
in/I
Phoenix/N
,/,
is/V
the/D
Republican/N
appointee/N
,/,
and/C
that/I
a/D
security/N
clearance/N
was/V
under/I
way/N
./.
###/###
The/D
Democratic/J
appointee/N
has/V
n't/R
been/V
determined/V
,/,
the/D
official/N
said/V
./.
###/###
Mr./N
Simmons/N
declined/V
to/T
comment/V
,/,
and/C
the/D
White/N
House/N
said/V
the/D
congressmen/N
's/P
letter/N
is/V
under/I
review/N
./.
###/###
The/D
letter/N
,/,
dated/V
last/J
Thursday/N
,/,
cited/V
the/D
losses/N
at/I
Valley/N
National/N
,/,
and/C
at/I
United/N
Bank/N
,/,
also/R
of/I
Phoenix/N
,/,
where/W
Mr./N
Simmons/N
was/V
chairman/N
for/I
29/C
years/N
./.
###/###
Both/D
banks/N
have/V
been/V
battered/V
,/,
as/I
have/V
other/J
Arizona/N
banks/N
,/,
by/I
falling/V
real/J
estate/N
prices/N
./.
###/###
Valley/N
National/N
,/,
for/I
example/N
,/,
had/V
$/$
470/C
million/C
in/I
problem/N
assets/N
as/I
of/I
June/N
./.
###/###
``/`
We/P
believe/V
that/I
there/E
are/V
numerous/J
other/J
candidates/N
more/R
qualified/V
for/I
this/D
important/J
position/N
and/C
we/P
encourage/V
you/P
to/T
give/V
them/P
your/P
thorough/J
consideration/N
before/I
making/V
this/D
key/J
RTC/N
appointment/N
,/,
''/'
the/D
letter/N
said/V
./.
###/###
``/`
The/D
RTC/N
needs/V
the/D
most/R
able/J
,/,
competent/J
management/N
available/J
./.
''/'
###/###
But/C
Mr./N
Simmons/N
has/V
long/J
ties/N
to/T
both/D
Republicans/N
and/C
banking/N
./.
###/###
He/P
was/V
co-chairman/N
of/I
Mr./N
Bush/N
's/P
Arizona/N
campaign/N
committee/N
in/I
last/J
year/N
's/P
election/N
,/,
and/C
also/R
worked/V
for/I
Mr./N
Bush/N
in/I
the/D
1980/C
election/N
./.
###/###
The/D
two/C
met/V
more/J
than/I
30/C
years/N
ago/I
,/,
when/W
Mr./N
Simmons/N
worked/V
for/I
Commercial/N
Bank/N
&/C
Trust/N
Co./N
of/I
Midland/N
,/,
Texas/N
,/,
where/W
Mr./N
Bush/N
was/V
an/D
organizing/V
director/N
./.
###/###
In/I
1986/C
,/,
Mr./N
Simmons/N
also/R
served/V
on/I
a/D
committee/N
of/I
businessmen/N
headed/V
by/I
William/N
Seidman/N
,/,
chairman/N
of/I
the/D
Federal/N
Deposit/N
Insurance/N
Corp./N
and/C
the/D
Resolution/N
Trust/N
Corp/N
./.
###/###
That/D
committee/N
determined/V
to/T
open/V
Arizona/N
to/T
banking/N
across/I
state/N
lines/N
./.
###/###
Arizona/N
Trend/N
magazine/N
referred/V
to/T
Mr./N
Simmons/N
this/D
year/N
as/I
one/C
of/I
the/D
25/C
most/R
influential/J
people/N
in/I
the/D
state/N
./.
###/###
The/D
letter/N
to/T
Mr./N
Bush/N
was/V
signed/V
by/I
Reps./N
Bruce/N
Vento/N
-LRB-/-
D./N
,/,
Minn./N
-RRB-/-
,/,
the/D
chairman/N
of/I
the/D
Banking/N
Committee/N
's/P
RTC/N
Task/N
Force/N
,/,
Thomas/N
McMillen/N
-LRB-/-
D./N
,/,
Md./N
-RRB-/-
,/,
Kweisi/N
Mfume/N
-LRB-/-
D./N
,/,
Md/N
./.
-RRB-/-
and/C
Paul/N
Kanjorski/N
-LRB-/-
D./N
,/,
Pa/N
./.
-RRB-/-
./.
###/###
Randolph/N
W./N
McElroy/N
,/,
a/D
vice/N
chairman/N
of/I
this/D
bank-holding/J
company/N
,/,
was/V
named/V
to/T
the/D
additional/J
position/N
of/I
chairman/N
of/I
its/P
principal/J
unit/N
,/,
Sovran/N
Bank/N
./.
###/###
Mr./N
McElroy/N
,/,
54/C
years/N
old/J
,/,
will/M
remain/V
president/N
and/C
chief/J
executive/J
officer/N
of/I
the/D
unit/N
./.
###/###
Sovran/N
also/R
named/V
John/N
B./N
Werner/N
a/D
vice/N
chairman/N
of/I
the/D
parent/J
company/N
and/C
the/D
unit/N
and/C
elected/V
him/P
to/T
the/D
newly/R
created/V
position/N
of/I
chief/J
credit/N
officer/N
of/I
Sovran/N
Financial/N
,/,
increasing/V
the/D
number/N
of/I
corporate/J
board/N
members/N
to/T
35/C
./.
###/###
Mr./N
Werner/N
,/,
58/C
,/,
was/V
formerly/R
senior/J
executive/J
vice/N
president/N
of/I
the/D
parent/J
company/N
and/C
the/D
unit/N
./.
###/###
Moody/N
's/P
Investors/N
Service/N
Inc./N
said/V
it/P
lowered/V
the/D
debt/N
ratings/N
of/I
certain/J
long-term/J
debt/N
held/V
by/I
this/D
company/N
./.
###/###
The/D
debt-rating/J
concern/N
cited/V
the/D
bank/N
's/P
move/N
into/I
the/D
Texas/N
market/N
,/,
noting/V
its/P
profitability/N
and/C
capital/N
adequacy/N
measurements/N
will/M
be/V
depressed/J
relative/J
to/T
the/D
bank/N
's/P
past/J
performance/N
./.
###/###
Moody/N
's/P
also/R
said/V
it/P
raised/V
its/P
rating/N
on/I
the/D
Deposit/N
Insurance/N
Bridge/N
Bank/N
,/,
now/R
known/V
as/I
Bank/N
One/C
,/,
Texas/N
N.A./N
,/,
reflecting/V
the/D
support/N
of/I
other/J
banking/N
affiliates/N
and/C
substantial/J
assistance/N
for/I
the/D
FDIC/N
./.
###/###
Officials/N
at/I
the/D
New/N
York/N
bank-holding/J
company/N
were/V
n't/R
available/J
for/I
comment/N
on/I
the/D
debt-rating/J
changes/N
./.
###/###
At/I
Lloyd/N
's/P
of/I
London/N
,/,
underwriters/N
still/R
scratch/V
out/R
policies/N
using/V
fountain/N
pens/N
and/C
blotting/V
paper/N
./.
###/###
Visitors/N
are/V
ushered/V
into/I
the/D
premises/N
by/I
red-frocked/J
doormen/N
known/V
as/I
waiters/N
,/,
a/D
reminder/N
of/I
the/D
insurance/N
market/N
's/P
origins/N
in/I
a/D
coffeehouse/N
in/I
17th/J
century/N
London/N
./.
###/###
Such/J
trappings/N
suggest/V
a/D
glorious/J
past/N
but/C
give/V
no/D
hint/N
of/I
a/D
troubled/J
present/N
./.
###/###
Lloyd/N
's/P
,/,
once/R
a/D
pillar/N
of/I
the/D
world/N
insurance/N
market/N
,/,
is/V
being/V
shaken/V
to/T
its/P
very/J
foundation/N
./.
###/###
The/D
301-year-old/J
exchange/N
is/V
battered/V
by/I
enormous/J
claims/N
from/I
a/D
decade-long/J
run/N
of/I
unprecedented/J
disasters/N
,/,
the/D
most/R
recent/J
of/I
which/W
is/V
last/J
week/N
's/P
earthquake/N
in/I
California/N
's/P
Bay/N
Area/N
./.
###/###
At/I
the/D
same/J
time/N
,/,
Lloyd/N
's/P
is/V
besieged/V
by/I
disgruntled/J
investors/N
and/C
hamstrung/V
by/I
inefficient/J
but/C
time-honored/J
ways/N
of/I
conducting/V
business/N
./.
###/###
The/D
exchange/N
is/V
gradually/R
being/V
squeezed/V
into/I
narrow/J
,/,
less-profitable/J
segments/N
of/I
the/D
market/N
by/I
less/J
hidebound/J
competitors/N
./.
###/###
``/`
Lloyd/N
's/P
is/V
on/I
the/D
ropes/N
,/,
''/'
says/V
Peter/N
Nutting/N
,/,
a/D
Lloyd/N
's/P
investor/N
for/I
17/C
years/N
who/W
now/R
leads/V
a/D
dissident/J
group/N
threatening/V
to/T
sue/V
exchange/N
underwriters/N
for/I
alleged/J
mismanagement/N
and/C
negligence/N
./.
###/###
It/P
needs/V
more/J
discipline/N
./.
###/###
It/P
needs/V
to/T
sort/V
itself/P
out/R
./.
''/'
###/###
Most/R
troublesome/J
is/V
the/D
shrinking/V
pool/N
of/I
``/`
names/N
,/,
''/'
the/D
well-heeled/J
investors/N
-LRB-/-
some/D
of/I
them/P
royal/J
-RRB-/-
who/W
,/,
as/I
members/N
of/I
about/R
360/C
syndicates/N
,/,
underwrite/V
policies/N
./.
###/###
Some/R
1,750/C
members/N
quit/V
the/D
exchange/N
last/J
year/N
,/,
more/J
than/I
triple/R
the/D
number/N
of/I
resignations/N
in/I
1987/C
./.
###/###
Names/N
are/V
resigning/V
at/I
an/D
even/R
faster/J
pace/N
this/D
year/N
./.
###/###
Lackluster/J
returns/N
are/V
one/C
reason/N
./.
###/###
The/D
average/J
after-tax/J
return/N
on/I
investment/N
in/I
1986/C
,/,
the/D
most/R
recent/J
year/N
for/I
which/W
results/N
are/V
available/J
,/,
was/V
6.5/C
%/N
,/,
according/V
to/T
Chatset/N
Ltd./N
,/,
an/D
insurance/N
consulting/N
firm/N
in/I
London/N
./.
###/###
In/I
1985/C
,/,
it/P
was/V
2.1/C
%/N
./.
###/###
Between/I
1981/C
and/C
1986/C
,/,
the/D
most/R
recent/J
five-year/J
period/N
for/I
which/W
figures/N
are/V
available/J
,/,
Lloyd/N
's/P
reported/V
over/I
#/#
3.6/C
billion/C
in/I
claims/N
and/C
reserves/N
against/I
future/J
losses/N
-LRB-/-
$/$
5.7/C
billion/C
at/I
today/N
's/P
exchange/N
rates/N
-RRB-/-
,/,
more/J
than/I
double/R
the/D
#/#
1.35/C
billion/C
posted/V
in/I
the/D
previous/J
five-year/J
period/N
./.
###/###
Many/J
of/I
the/D
31,329/C
investors/N
who/W
remain/V
are/V
beginning/V
to/T
question/V
one/C
of/I
the/D
exchange/N
's/P
most/J
basic/J
tenets/N
,/,
the/D
concept/N
of/I
unlimited/J
personal/J
liability/N
./.
###/###
Investors/N
may/M
reap/V
huge/J
profits/N
when/W
premiums/N
exceed/V
claims/V
,/,
but/C
they/P
are/V
liable/J
to/T
their/P
last/J
pound/N
or/C
dollar/N
in/I
the/D
event/N
of/I
a/D
catastrophe/N
./.
###/###
And/C
catastrophes/N
are/V
getting/V
ever/R
more/R
costly/J
./.
###/###
Lloyd/N
's/P
claims/N
for/I
the/D
1988/C
Piper/N
Alpha/N
oil-rig/N
disaster/N
in/I
the/D
North/N
Sea/N
,/,
for/I
instance/N
,/,
may/M
reach/V
$/$
1/C
billion/C
./.
###/###
During/I
the/D
five-year/J
period/N
ended/V
1986/C
,/,
roughly/R
80/C
%/N
of/I
the/D
names/N
had/V
money/N
tied/V
up/R
in/I
money-losing/J
syndicates/N
,/,
according/V
to/T
Chatset/N
consultants/N
./.
###/###
The/D
peril/N
of/I
unlimited/J
liability/N
looms/N
large/J
for/I
a/D
number/N
of/I
them/P
now/R
./.
###/###
``/`
I/P
have/V
wished/V
I/P
could/M
die/V
and/C
be/V
out/I
of/I
it/P
--/:
that/D
's/V
how/W
bad/J
it/P
is/V
,/,
''/'
Betty/N
Atkins/N
,/,
a/D
secretary/N
from/I
suburban/J
London/N
,/,
says/V
./.
###/###
Ms./N
Atkins/N
,/,
whose/W
Lloyd/N
's/P
membership/N
was/V
a/D
bonus/N
from/I
a/D
former/J
employer/N
in/I
1981/C
,/,
belongs/V
to/T
Mr./N
Nutting/N
's/P
dissident/J
group/N
on/I
the/D
Outhwaite/N
syndicate/N
,/,
which/W
has/V
been/V
hard/R
hit/V
by/I
asbestos/N
reinsurance/N
claims/N
./.
###/###
Ms./N
Atkins/N
,/,
who/W
underwrote/V
#/#
20,000/C
,/,
or/C
about/R
$/$
32,000/C
,/,
of/I
insurance/N
coverage/N
on/I
that/D
syndicate/N
,/,
now/R
faces/V
potential/J
losses/N
of/I
roughly/R
#/#
70,000/C
,/,
or/C
$/$
111,000/C
./.
###/###
``/`
If/I
Lloyd/N
's/P
wants/V
#/#
70,000/C
out/I
of/I
me/P
they/P
will/M
have/V
to/T
take/V
everything/N
I/P
've/V
got/V
--/:
and/C
even/R
then/R
I/P
do/V
n't/R
know/V
if/I
it/P
will/M
be/V
enough/N
,/,
''/'
she/P
says/V
./.
###/###
Unease/N
is/V
widespread/J
among/I
exchange/N
members/N
./.
###/###
``/`
I/P
ca/M
n't/R
think/V
of/I
any/D
reason/N
to/T
join/V
Lloyd/N
's/P
now/R
,/,
''/'
says/V
Keith/N
Whitten/N
,/,
a/D
British/J
businessman/N
and/C
a/D
Lloyd/N
's/P
member/N
since/I
1979/C
./.
###/###
The/D
downside/N
is/V
very/R
considerable/J
,/,
and/C
at/I
the/D
moment/N
the/D
upside/N
is/V
very/R
marginal/J
./.
''/'
###/###
If/I
profits/N
do/V
n't/R
improve/V
,/,
Mr./N
Whitten/N
says/V
he/P
may/M
quit/V
the/D
exchange/N
./.
###/###
Meanwhile/R
,/,
competition/N
from/I
rivals/N
unencumbered/J
by/I
history/N
is/V
intensifying/V
./.
###/###
Lloyd/N
's/P
is/V
being/V
squeezed/V
out/I
of/I
low-margin/J
but/C
more/R
consistently/R
profitable/J
product/N
lines/N
such/J
as/I
primary/J
property/N
and/C
marine/J
insurance/N
./.
###/###
Over/I
the/D
past/J
decade/N
,/,
competitors/N
have/V
chipped/V
away/R
at/I
the/D
exchange/N
's/P
share/N
of/I
the/D
#/#
2.5/C
billion/C
marine/J
market/N
in/I
London/N
,/,
where/W
half/P
the/D
world/N
's/P
ships/N
are/V
insured/V
./.
###/###
Lloyd/N
's/P
66/C
%/N
stake/N
in/I
that/D
market/N
has/V
shrunk/V
to/T
50/C
%/N
in/I
that/D
period/N
,/,
according/V
to/T
an/D
official/N
at/I
the/D
Institute/N
of/I
London/N
Underwriters/N
,/,
a/D
Lloyd/N
's/P
competitor/N
./.
###/###
The/D
official/N
asked/V
not/R
to/T
be/V
named/V
./.
-RRB-/-
###/###
Much/J
of/I
the/D
business/N
has/V
gone/V
to/T
the/D
institute/N
,/,
an/D
association/N
of/I
more/J
than/I
100/C
insurers/N
,/,
including/V
Cigna/N
Corp./N
,/,
Allianz/N
Versicherungs/N
AG/N
of/I
West/N
Germany/N
and/C
Britain/N
's/P
Commercial/N
Union/N
Assurance/N
PLC/N
./.
###/###
Lloyd/N
's/P
has/V
endured/V
decades/N
of/I
genteel/J
decline/N
./.
###/###
At/I
the/D
peak/N
of/I
its/P
power/N
and/C
influence/V
a/D
century/N
ago/R
,/,
Lloyd/N
's/P
dominated/V
the/D
insurance/N
world/N
with/I
a/D
50/C
%/N
stake/N
./.
###/###
It/P
virtually/R
dictated/V
how/W
ships/N
were/V
to/T
be/V
built/V
and/C
it/P
monitored/V
commerce/N
through/I
a/D
unrivaled/J
intelligence/N
network/N
in/I
ports/N
around/I
the/D
globe/N
./.
###/###
Today/N
,/,
Lloyd/N
's/P
share/N
of/I
the/D
world/N
market/N
,/,
excluding/V
life/N
insurance/N
,/,
is/V
about/R
2/C
%/N
./.
###/###
Its/P
stake/N
is/V
even/R
smaller/J
if/I
life/N
insurance/N
is/V
included/V
./.
-RRB-/-
###/###
Bigger/J
rivals/N
,/,
such/J
as/I
Aetna/N
and/C
Allianz/N
,/,
backed/V
by/I
armies/N
of/I
statisticians/N
using/V
computers/N
in/I
hundreds/N
of/I
branches/N
,/,
operate/V
more/R
efficiently/R
and/C
often/R
can/M
offer/V
lower/J
rates/N
,/,
brokers/N
say/V
./.
###/###
Though/I
Lloyd/N
's/P
pioneered/V
such/J
now-standard/J
policies/N
as/I
worker/N
's/P
compensation/N
insurance/N
,/,
burglary/N
insurance/N
for/I
homeowners/N
and/C
businesses/N
,/,
and/C
bankers/N
'/P
liability/N
insurance/N
,/,
competitors/N
now/R
underwrite/V
most/J
of/I
that/D
business/N
./.
###/###
Beyond/I
that/D
,/,
many/J
big/J
oil/N
,/,
chemical/N
and/C
airline/N
companies/N
are/V
siphoning/V
off/R
big/J
chunks/N
of/I
the/D
market/N
by/I
insuring/V
themselves/P
through/I
``/`
captive/J
''/'
offshore/J
companies/N
for/I
industry-specific/J
coverage/N
./.
###/###
Even/R
Lloyd/N
's/P
specialty/N
--/:
unusually/R
risky/J
ventures/N
--/:
is/V
being/V
challenged/V
./.
###/###
Only/R
10/C
years/N
ago/R
,/,
for/I
instance/N
,/,
Lloyd/N
's/P
was/V
the/D
pre-eminent/J
insurer/N
of/I
thoroughbred/J
horses/N
./.
###/###
But/C
since/I
1981/C
,/,
Kirk/N
Horse/N
Insurance/N
Inc./N
of/I
Lexington/N
,/,
Ky./N
has/V
grabbed/V
a/D
20/C
%/N
stake/N
of/I
the/D
market/N
./.
###/###
Ronald/N
Kirk/N
,/,
president/N
,/,
says/V
Lloyd/N
's/P
has/V
suffered/V
because/I
its/P
structure/N
does/V
n't/R
allow/V
underwriters/N
to/T
deal/V
directly/R
with/I
clients/N
;/:
brokers/N
are/V
required/V
intermediaries/N
./.
###/###
Thus/R
,/,
he/P
asserts/V
,/,
Lloyd/N
's/P
ca/M
n't/R
react/V
quickly/R
to/T
competition/N
./.
###/###
``/`
Lloyd/N
's/P
has/V
lost/V
control/N
of/I
the/D
situation/N
,/,
''/'
he/P
says/V
./.
###/###
They/P
are/V
n't/R
controlling/V
their/P
destiny/N
like/I
they/P
used/V
to/T
./.
''/'
###/###
Murray/N
Lawrence/N
,/,
Lloyd/N
's/P
chairman/N
,/,
agrees/V
the/D
exchange/N
faces/V
big/J
challenges/N
./.
###/###
``/`
This/D
is/V
a/D
watershed/J
time/N
,/,
and/C
we/P
are/V
trying/V
to/T
plot/V
our/P
way/N
ahead/R
,/,
''/'
he/P
says/V
./.
###/###
We/P
have/V
been/V
a/D
great/J
market/N
for/I
inventing/V
risks/N
which/W
other/J
people/N
then/R
take/V
,/,
copy/V
and/C
cut/V
rates/N
./.
''/'
###/###
Lloyd/N
's/P
,/,
he/P
says/V
,/,
is/V
cut/V
off/R
from/I
``/`
the/D
vast/J
body/N
of/I
premium/N
down/I
at/I
the/D
bottom/N
end/N
which/W
acts/V
as/I
a/D
steadying/J
influence/N
''/'
against/I
catastrophic/J
losses/N
./.
###/###
By/I
that/D
,/,
he/P
means/V
low-margin/J
but/C
low-risk/J
products/N
such/J
as/I
certain/J
types/N
of/I
primary/J
property/N
insurance/N
./.
###/###
The/D
exchange/N
,/,
he/P
says/V
,/,
must/M
find/V
new/J
products/N
and/C
new/J
markets/N
./.
###/###
That/D
wo/M
n't/R
be/V
an/D
easy/J
task/N
./.
###/###
Tradition/N
is/V
dictator/N
at/I
Lloyd/N
's/P
./.
###/###
Three/C
years/N
ago/R
,/,
the/D
exchange/N
took/V
up/R
residence/N
in/I
a/D
space-age/J
tower/N
of/I
steel/N
and/C
glass/N
--/:
evocative/J
of/I
the/D
kind/N
of/I
modern/J
architecture/N
that/I
Britain/N
's/P
Prince/N
Charles/N
has/V
denounced/V
./.
###/###
Some/D
exchange/N
wags/N
call/V
the/D
building/N
``/`
the/D
oil/N
rig/N
./.
''/'
-RRB-/-
###/###
But/C
along/I
with/I
such/J
treasured/J
artifacts/N
as/I
Lord/N
Nelson/N
's/P
spyglass/N
,/,
Lloyd/N
's/V
also/R
brought/V
its/P
outmoded/J
ways/N
of/I
doing/V
business/N
./.
###/###
The/D
Lloyd/N
's/P
market/N
actively/R
underwrites/V
insurance/N
just/R
4/C
hours/N
a/D
day/N
,/,
brokers/N
say/V
./.
###/###
Underwriting/N
does/V
n't/R
get/V
under/I
way/N
until/I
after/I
morning/N
tea/N
at/I
10/C
a.m/R
./.
###/###
A/D
two-hour/J
lunch/N
break/N
follows/V
./.
###/###
Things/N
wind/V
down/R
at/I
about/R
4:30/C
p.m./R
,/,
just/R
in/I
time/N
for/I
afternoon/N
tea/N
./.
###/###
Lloyd/N
's/P
vast/J
trading/N
hall/N
houses/V
a/D
warren/N
of/I
well-polished/J
desks/N
./.
###/###
The/D
hall/N
's/P
few/J
computers/N
are/V
used/V
mostly/R
to/T
send/V
messages/N
./.
###/###
Sandwiched/V
between/I
desks/N
,/,
underwriters/N
sit/V
on/I
benches/N
surrounded/V
by/I
stacks/N
of/I
policies/N
./.
###/###
Brokers/N
clutching/V
thick/J
folders/N
stand/V
in/I
lines/N
,/,
waiting/V
their/P
turn/N
to/T
speak/V
to/T
the/D
underwriters/N
./.
###/###
A/D
broker/N
may/M
have/V
to/T
approach/V
as/R
many/J
as/I
20/C
underwriters/N
who/W
insure/V
the/D
endeavors/N
on/I
behalf/N
of/I
the/D
syndicates/N
./.
###/###
It/P
could/M
take/V
six/C
months/N
for/I
a/D
claim/N
to/T
be/V
paid/V
./.
###/###
``/`
The/D
system/N
,/,
''/'
says/V
Nicholas/N
Samengo-Turner/N
,/,
a/D
Lloyd/N
's/P
broker/N
who/W
left/V
the/D
exchange/N
in/I
1985/C
,/,
``/`
is/V
so/R
ludicrously/R
unprofessional/J
it/P
drives/V
you/P
mad/J
./.
''/'
###/###
Some/D
maintain/V
underwriters/N
also/R
have/V
been/V
inept/J
./.
###/###
John/N
Wetherell/N
,/,
a/D
Lloyd/N
's/P
underwriter/N
,/,
says/V
he/P
and/C
his/P
fellow/J
underwriters/N
underestimated/V
by/I
as/R
much/J
as/I
50/C
%/N
the/D
premiums/N
they/P
should/M
have/V
charged/V
for/I
property/N
risks/N
from/I
1980/C
to/T
1985/C
./.
###/###
``/`
How/W
unprofessional/J
we/P
must/M
have/V
appeared/V
to/T
the/D
outside/J
world/N
--/:
how/W
incompetent/J
at/I
risk/N
assessment/N
and/C
evaluation/N
,/,
''/'
he/P
says/V
./.
###/###
Lloyd/N
's/P
officials/N
decline/V
to/T
comment/V
on/I
the/D
matter/N
./.
###/###
More/R
recently/R
,/,
property/N
rates/N
have/V
increased/V
./.
###/###
Many/J
at/I
Lloyd/N
's/P
expect/V
the/D
San/N
Francisco/N
earthquake/N
will/M
cause/V
the/D
industry/N
to/T
boost/V
rates/N
even/R
further/R
./.
###/###
But/C
it/P
will/M
be/V
years/N
before/I
it/P
is/V
clear/J
whether/I
higher/J
rates/N
will/M
offset/V
the/D
payouts/N
for/I
such/J
disasters/N
./.
###/###
The/D
magnitude/N
of/I
the/D
exchange/N
's/P
problems/N
may/M
not/R
become/V
known/V
for/I
some/D
time/N
because/I
of/I
Lloyd/N
's/P
practice/N
of/I
leaving/V
the/D
books/N
open/J
for/I
three/C
years/N
to/T
allow/V
for/I
the/D
settlement/N
of/I
claims/N
./.
###/###
Lloyd/N
's/P
only/R
recently/R
reported/V
its/P
financial/J
results/N
for/I
1986/C
./.
###/###
That/D
year/N
,/,
it/P
posted/V
record/J
pretax/J
profit/N
of/I
#/#
650/C
million/C
,/,
a/D
gain/N
it/P
attributes/V
to/T
higher/J
rates/N
and/C
fewer/J
claims/N
./.
###/###
But/C
Mr./N
Lawrence/N
says/V
reported/J
profit/N
will/M
be/V
down/R
in/I
1987/C
,/,
1988/C
and/C
1989/C
,/,
though/I
he/P
declines/V
to/T
specify/V
how/W
steep/J
the/D
decline/N
will/M
be/V
./.
###/###
Insurance/N
analysts/N
say/V
the/D
exchange/N
's/P
downturn/N
in/I
profitability/N
is/V
likely/J
to/T
be/V
aggravated/V
by/I
more/J
than/I
$/$
600/C
million/C
in/I
aviation/N
losses/N
-LRB-/-
including/V
the/D
1988/C
Pan/N
Am/N
airline/N
disaster/N
over/I
Lockerbie/N
,/,
Scotland/N
-RRB-/-
and/C
a/D
still-uncalculated/J
chunk/N
of/I
claims/N
from/I
September/N
's/P
Hurricane/N
Hugo/N
./.
###/###
Lloyd/N
's/P
says/V
the/D
departures/N
of/I
names/N
is/V
n't/R
likely/J
to/T
hurt/V
its/P
underwriting/N
capacity/N
,/,
currently/R
about/R
#/#
11/C
billion/C
./.
###/###
Mr./N
Lawrence/N
says/V
the/D
drain/N
of/I
funds/N
has/V
been/V
offset/V
by/I
an/D
increase/N
in/I
investments/N
by/I
the/D
remaining/V
names/N
./.
###/###
Meanwhile/R
,/,
the/D
exchange/N
has/V
been/V
trying/V
to/T
lower/V
costs/N
./.
###/###
It/P
recently/R
cut/V
its/P
work/N
force/N
by/I
9/C
%/N
,/,
or/C
213/C
./.
-RRB-/-
###/###
But/C
Lloyd/N
's/P
is/V
hampered/V
in/I
its/P
efforts/N
to/T
overhaul/V
operations/N
by/I
its/P
reluctance/N
to/T
embrace/V
modern/J
technology/N
./.
###/###
Mr./N
Wetherell/N
,/,
the/D
underwriter/N
,/,
reckons/V
half/N
of/I
his/P
business/N
could/M
be/V
transacted/V
by/I
computer/N
,/,
cutting/V
costs/N
at/I
least/J
10/C
%/N
./.
###/###
Though/N
Lloyd/N
's/P
has/V
talked/V
for/I
years/N
about/I
computerizing/V
underwriting/N
transactions/N
,/,
the/D
effort/N
has/V
n't/R
gotten/V
very/R
far/R
./.
###/###
Competition/N
among/I
underwriters/N
and/C
brokers/N
makes/V
them/P
loath/J
to/T
centralize/V
price/N
and/C
policy/N
information/N
./.
###/###
Both/D
groups/N
cling/V
to/T
traditional/J
face-to-face/J
dealings/N
,/,
even/R
for/I
routine/J
policies/N
./.
###/###
Lloyd/N
's/P
overblown/J
bureaucracy/N
also/R
hampers/V
efforts/N
to/T
update/V
marketing/N
strategies/N
./.
###/###
Some/D
underwriters/N
have/V
been/V
pressing/V
for/I
years/N
to/T
tap/V
the/D
low-margin/J
business/N
by/I
selling/V
some/D
policies/N
directly/R
to/T
consumers/N
./.
###/###
Lloyd/N
's/P
presently/R
sells/V
only/J
auto/N
insurance/N
directly/R
to/T
the/D
public/N
,/,
and/C
such/J
policies/N
are/V
sold/V
only/R
in/I
limited/J
markets/N
such/J
as/I
the/D
U.K./N
and/C
Canada/N
./.
###/###
But/C
such/J
changes/N
must/M
be/V
cleared/V
by/I
four/C
internal/J
committees/N
and/C
dozens/N
of/I
underwriters/N
,/,
brokers/N
and/C
administrators/N
before/I
being/V
implemented/V
./.
###/###
The/D
proposal/N
to/T
sell/V
directly/R
to/T
the/D
public/N
remains/V
mired/V
in/I
bureaucratic/J
quicksand/N
./.
###/###
Lloyd/N
's/P
is/V
moving/V
forward/R
on/I
some/D
fronts/N
,/,
though/R
./.
###/###
Mr./N
Lawrence/N
says/V
the/D
exchange/N
is/V
updating/V
some/D
procedures/N
to/T
make/V
speedier/J
payments/N
on/I
claims/N
./.
###/###
By/I
next/J
year/N
,/,
all/D
underwriters/N
will/M
be/V
linked/V
to/T
a/D
communications/N
network/N
that/W
could/M
reduce/V
paper/N
work/N
on/I
claims/N
./.
###/###
Japan/N
's/P
Daiwa/N
Securities/N
Co./N
named/V
Masahiro/N
Dozen/N
president/N
./.
###/###
Mr./N
Dozen/N
succeeds/V
Sadakane/N
Doi/N
,/,
who/W
will/M
become/V
vice/N
chairman/N
./.
###/###
Yoshitoki/N
Chino/N
retains/V
his/P
title/N
of/I
chairman/N
of/I
Daiwa/N
,/,
Japan/N
's/P
second-largest/J
securities/N
firm/N
./.
###/###
In/I
Japanese/J
firms/N
,/,
the/D
president/N
usually/R
is/V
in/I
charge/N
of/I
day-to-day/J
operations/N
,/,
while/I
the/D
chairman/N
's/P
role/N
is/V
more/R
a/D
ceremonial/J
one/N
./.
###/###
The/D
title/N
of/I
chief/J
executive/J
officer/N
is/V
n't/R
used/V
./.
###/###
While/I
people/N
within/I
Daiwa/N
,/,
particularly/R
internationalists/N
,/,
expected/V
that/I
Mr./N
Dozen/N
,/,
52/C
,/,
would/M
eventually/R
become/V
Daiwa/N
's/P
president/N
,/,
the/D
speed/N
of/I
his/P
promotion/N
surprised/V
many/J
./.
###/###
It/P
was/V
only/R
earlier/R
this/D
year/N
that/I
the/D
jovial/J
,/,
easygoing/J
executive/N
--/:
he/P
likes/V
to/T
joke/V
with/I
Americans/N
about/I
how/W
his/P
name/N
is/V
synonymous/J
with/I
twelve/C
--/:
was/V
appointed/V
deputy/J
president/N
./.
###/###
Mr./N
Dozen/N
is/V
taking/V
over/R
the/D
reins/N
of/I
a/D
securities/N
company/N
that/W
does/V
very/R
well/R
in/I
its/P
domestic/J
market/N
but/C
that/D
is/V
still/R
seeking/V
to/T
realize/V
its/P
potential/N
in/I
global/J
investment/N
banking/N
and/C
securities/N
dealing/N
./.
###/###
Daiwa/N
is/V
one/C
of/I
the/D
world/N
's/P
largest/J
securities/N
firms/N
./.
###/###
As/I
of/I
March/N
31/C
,/,
the/D
Daiwa/N
group/N
had/V
shareholder/N
equity/N
of/I
801.21/C
billion/C
yen/N
-LRB-/-
$/$
5.64/C
billion/C
-RRB-/-
./.
###/###
For/I
the/D
six/C
months/N
ended/V
Sept./N
30/C
,/,
Daiwa/N
reported/V
unconsolidated/J
-LRB-/-
parent/J
company/N
-RRB-/-
net/J
income/N
of/I
79.03/C
billion/C
yen/N
-LRB-/-
$/$
556.5/C
million/C
-RRB-/-
on/I
revenue/N
of/I
332.38/C
billion/C
yen/N
-LRB-/-
$/$
2.34/C
billion/C
-RRB-/-
./.
###/###
Both/D
figures/N
were/V
record/J
highs/N
./.
###/###
Several/J
observers/N
interpreted/V
Mr./N
Dozen/N
's/P
appointment/N
as/I
an/D
attempt/N
by/I
Daiwa/N
to/T
make/V
its/P
international/J
operations/N
more/R
profitable/J
while/I
preparing/V
the/D
firm/N
for/I
the/D
effects/N
of/I
the/D
continuing/J
deregulation/N
of/I
Japan/N
's/P
domestic/J
markets/N
,/,
which/W
should/M
mean/V
increased/J
competition/N
./.
###/###
All/D
of/I
Japan/N
's/P
so-called/J
Big/N
Four/C
securities/N
firms/N
--/:
Nomura/N
Securities/N
Co./N
Ltd./N
,/,
the/D
world/N
's/P
largest/J
,/,
Nikko/N
Securities/N
Co./N
Ltd./N
,/,
Yamaichi/N
Securities/N
Co./N
Ltd./N
and/C
Daiwa/N
--/:
have/V
suffered/V
setbacks/N
in/I
their/P
attempts/N
to/T
break/V
into/I
foreign/J
markets/N
./.
###/###
While/I
they/P
have/V
moved/V
to/T
the/D
fore/N
in/I
underwriting/V
fixed-income/J
securities/N
in/I
the/D
Eurobond/N
market/N
--/:
mostly/R
for/I
Japanese/J
firms/N
--/:
they/P
have/V
been/V
only/R
marginally/R
profitable/J
,/,
if/I
at/I
all/D
,/,
in/I
the/D
U.S/N
./.
###/###
American/J
institutional/J
investors/N
have/V
never/R
had/V
a/D
large/J
appetite/N
for/I
Japanese/J
equities/N
./.
###/###
And/C
while/I
the/D
Japanese/N
have/V
stepped/V
up/R
their/P
purchases/N
of/I
U.S./N
shares/N
in/I
the/D
past/J
several/J
months/N
,/,
they/P
have/V
shown/V
themselves/P
in/I
the/D
past/N
to/T
be/V
fickle/J
investors/N
./.
###/###
At/I
the/D
same/J
time/N
,/,
Daiwa/N
and/C
its/P
brethren/N
have/V
faced/V
stiff/J
competition/N
from/I
well-entrenched/J
American/J
competitors/N
that/W
have/V
prevented/V
them/P
from/I
building/V
strong/J
links/N
to/T
U.S./N
corporations/N
and/C
institutional/J
investors/N
./.
###/###
Mr./N
Dozen/N
knows/V
these/D
problems/N
firsthand/R
./.
###/###
When/W
he/P
arrived/V
in/I
the/D
U.S./N
in/I
1969/C
--/:
the/D
start/N
of/I
an/D
eight-year/J
tour/N
--/:
he/P
tried/V
selling/V
Japanese/J
yen-denominated/J
bonds/N
to/T
U.S./N
investors/N
./.
###/###
``/`
He/P
made/V
desperate/J
efforts/N
,/,
using/V
the/D
yellow/J
pages/N
from/I
beginning/N
to/T
end/N
,/,
''/'
said/V
Koji/N
Yoneyama/N
,/,
president/N
of/I
Daiwa/N
's/P
U.S./N
unit/N
./.
###/###
But/C
not/R
a/D
single/J
piece/N
of/I
paper/N
was/V
sold/V
./.
''/'
###/###
By/I
his/P
own/J
account/N
,/,
Mr./N
Dozen/N
did/V
n't/R
do/V
much/R
better/R
with/I
U.S./N
bonds/N
./.
###/###
In/I
an/D
interview/N
a/D
few/J
months/N
ago/R
,/,
he/P
recalled/V
how/W
after/I
some/D
training/N
at/I
Salomon/N
Brothers/N
Inc./N
,/,
he/P
successfully/R
bid/V
for/I
the/D
opportunity/N
to/T
sell/V
portions/N
of/I
20/C
U.S./N
corporate/J
bond/N
issues/N
./.
###/###
But/C
he/P
could/M
n't/R
sell/V
any/D
./.
###/###
Japanese/J
stock/N
salesmen/N
selling/V
American/J
bonds/N
?/.
###/###
Maybe/R
it/P
's/V
crazy/J
,/,
''/'
he/P
said/V
./.
###/###
Mr./N
Dozen/N
even/R
related/V
the/D
indignity/N
suffered/V
when/W
he/P
and/C
two/C
colleagues/N
went/V
on/I
an/D
overnight/J
fishing/N
expedition/N
off/I
the/D
New/N
Jersey/N
shore/N
and/C
caught/V
nothing/N
./.
###/###
Upon/I
returning/V
to/T
New/N
York/N
,/,
``/`
Exhausted/J
,/,
I/P
got/V
into/I
a/D
taxicab/N
,/,
and/C
the/D
woman/N
driver/N
said/V
:/:
`/`
Americans/N
make/V
better/J
fishermen/N
,/,
'/'
''/'
he/P
recalled/V
./.
###/###
Undaunted/J
,/,
Mr./N
Dozen/N
said/V
that/D
Daiwa/N
's/P
goal/N
is/V
to/T
build/V
``/`
a/D
high-technology/N
oriented/J
international/J
organization/N
with/I
maybe/R
some/D
Japanese/J
flavor/N
to/T
it/P
./.
''/'
###/###
He/P
said/V
that/I
he/P
was/V
particularly/R
interested/J
in/I
his/P
firm/N
gaining/V
expertise/N
in/I
futures/N
,/,
options/N
,/,
mortgaged-backed/J
securities/N
,/,
computerized/J
trading/N
and/C
investment/N
systems/N
as/R
well/R
as/I
mergers/N
and/C
acquisitions/N
./.
###/###
Mr./N
Dozen/N
said/V
Daiwa/N
's/P
strengths/N
were/V
its/P
large/J
capital/N
base/N
,/,
its/P
influential/J
position/N
in/I
the/D
Tokyo/N
market/N
and/C
its/P
links/N
to/T
Japanese/J
corporations/N
and/C
institutional/J
investors/N
./.
###/###
Mr./N
Dozen/N
joined/V
Daiwa/N
upon/I
his/P
graduation/N
from/I
Kyoto/N
University/N
in/I
1959/C
./.
###/###
Like/I
many/J
young/J
recruits/N
in/I
Japanese/J
securities/N
firms/N
,/,
he/P
began/V
his/P
career/N
peddling/V
stock/N
to/T
individual/J
investors/N
./.
###/###
In/I
his/P
climb/N
to/T
the/D
top/N
,/,
Mr./N
Dozen/N
also/R
headed/V
the/D
company/N
's/P
stock-exchange/N
division/N
,/,
its/P
fixed-income/N
units/N
and/C
its/P
international/J
operations/N
./.
###/###
``/`
He/P
was/V
constantly/R
picking/V
up/R
new/J
things/N
to/T
fill/V
out/R
his/P
experience/N
;/:
he/P
is/V
very/R
well-balanced/J
,/,
''/'
said/V
Takuro/N
Isoda/N
,/,
chairman/N
of/I
Daiwa/N
's/P
U.S./N
unit/N
in/I
New/N
York/N
./.
###/###
But/C
it/P
Mr./N
Dozen/N
's/P
experience/N
as/I
a/D
salesman/N
that/W
enabled/V
him/P
to/T
gain/V
the/D
political/J
support/N
--/:
particularly/R
from/I
the/D
retail/J
sales/N
force/N
--/:
to/T
accede/V
to/T
the/D
presidency/N
./.
###/###
Commission/N
income/N
from/I
domestic/J
stock/N
and/C
bond/N
sales/N
accounts/N
form/V
a/D
large/J
portion/N
of/I
Japanese/J
securities/N
companies/N
'/P
earnings/N
./.
###/###
And/C
anybody/N
who/W
lacked/V
the/D
backing/N
of/I
the/D
retail/J
sales/N
force/N
``/`
would/M
be/V
fragile/J
,/,
''/'
said/V
a/D
Daiwa/N
executive/N
./.
###/###
If/I
Mr./N
Dozen/N
has/V
a/D
weakness/N
,/,
it/P
may/M
be/V
his/P
golf/N
game/N
./.
###/###
``/`
He/P
digs/V
in/I
the/D
sand/N
instead/R
of/I
hitting/V
the/D
ball/N
,/,
like/I
a/D
farmer/N
,/,
''/'
said/V
Mr./N
Yoneyama/N
./.
###/###
Inco/N
Ltd./N
posted/V
a/D
35/C
%/N
decline/N
in/I
third-quarter/J
net/J
income/N
,/,
a/D
performance/N
that/W
was/V
in/I
line/N
with/I
analysts/N
'/P
expectations/N
./.
###/###
The/D
nickel/N
producer/N
also/R
raised/V
its/P
quarterly/J
dividend/N
to/T
25/C
cents/N
a/D
share/N
from/I
20/C
cents/N
and/C
said/V
it/P
may/M
buy/V
back/R
as/R
much/J
as/I
4.8/C
%/N
of/I
its/P
common/J
outstanding/J
./.
###/###
Inco/N
shares/N
fell/V
after/I
the/D
announcements/N
./.
###/###
Analysts/N
said/V
some/D
investors/N
were/V
disappointed/J
that/I
the/D
cash-rich/J
company/N
had/V
failed/V
to/T
announce/V
a/D
special/J
dividend/N
./.
###/###
Inco/N
closed/V
at/I
$/$
31.125/C
a/D
share/N
,/,
down/R
62.5/C
cents/N
,/,
in/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
./.
###/###
Some/D
analysts/N
said/V
Inco/N
,/,
which/W
had/V
cash/N
reserves/N
of/I
$/$
272/C
million/C
as/I
of/I
Sept./N
30/C
,/,
could/M
still/R
announce/V
a/D
special/J
dividend/N
in/I
the/D
next/J
few/J
months/N
,/,
though/I
it/P
would/M
be/V
smaller/J
than/I
the/D
$/$
10-a-share/J
special/J
dividend/N
it/P
paid/V
last/J
year/N
./.
###/###
The/D
quarterly/J
dividend/N
is/V
payable/J
Dec./N
1/C
to/T
shares/N
of/I
record/N
Nov./N
3/C
./.
###/###
Inco/N
's/P
net/N
fell/V
to/T
$/$
129.3/C
million/C
,/,
or/C
$/$
1.23/C
a/D
share/N
,/,
in/I
the/D
third/J
quarter/N
from/I
$/$
200.3/C
million/C
,/,
or/C
$/$
1.88/C
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Sales/N
rose/V
8.2/C
%/N
to/T
$/$
848.7/C
million/C
from/I
$/$
784.5/C
million/C
./.
###/###
Excluding/V
special/J
gains/N
from/I
tax-loss/J
carry-forwards/N
,/,
earnings/N
in/I
the/D
latest/J
quarter/N
were/V
$/$
117.7/C
million/C
,/,
or/C
$/$
1.12/C
a/D
share/N
,/,
compared/V
with/I
$/$
187.4/C
million/C
,/,
or/C
$/$
1.76/C
a/D
share/N
./.
###/###
Inco/N
said/V
the/D
drop/N
in/I
earnings/N
resulted/V
mainly/R
from/I
lower/J
nickel/N
prices/N
for/I
the/D
period/N
and/C
a/D
temporary/J
cut/N
in/I
nickel/J
output/N
at/I
the/D
company/N
's/P
Manitoba/N
operations/N
due/J
to/T
high/J
levels/N
of/I
arsenic/N
in/I
the/D
ore/N
./.
###/###
Inco/N
said/V
it/P
plans/V
to/T
buy/V
back/R
as/R
many/J
as/I
five/C
million/C
common/J
shares/N
over/I
the/D
next/J
12/C
months/N
if/I
nickel/N
market/N
conditions/N
are/V
favorable/J
./.
###/###
Under/I
a/D
previous/J
buyback/J
program/N
,/,
Inco/N
has/V
purchased/V
1.7/C
million/C
of/I
its/P
shares/N
since/I
April/N
./.
###/###
UAL/N
Corp./N
's/P
board/N
quashed/V
any/D
prospects/N
for/I
an/D
immediate/J
revival/N
of/I
a/D
labor-management/J
buy-out/J
,/,
saying/V
United/N
Airlines/N
'/P
parent/N
should/M
remain/V
independent/J
for/I
now/R
./.
###/###
As/I
a/D
result/N
,/,
UAL/N
's/P
chairman/N
,/,
Stephen/N
M./N
Wolf/N
,/,
pulled/V
out/I
of/I
the/D
buy-out/N
effort/N
to/T
focus/V
on/I
running/V
the/D
company/N
./.
###/###
The/D
two/C
developments/N
put/V
the/D
acquisition/N
attempt/N
back/R
to/T
square/N
one/C
and/C
leaves/V
the/D
airline/N
with/I
an/D
array/N
of/I
unresolved/J
matters/N
,/,
including/V
an/D
unsettled/J
labor/N
situation/N
and/C
a/D
management/N
scrambling/V
to/T
restore/V
its/P
damaged/J
credibility/N
./.
###/###
The/D
effort/N
to/T
create/V
the/D
nation/N
's/P
largest/J
employee-owned/J
company/N
began/V
unraveling/V
Oct./N
13/C
when/W
the/D
labor-management/J
group/N
was/V
unable/J
to/T
obtain/V
financing/N
for/I
its/P
$/$
300-a-share/J
,/,
$/$
6.79/C
billion/C
offer/N
./.
###/###
Just/R
last/J
week/N
it/P
suffered/V
another/D
major/J
setback/N
when/W
British/N
Airways/N
PLC/N
,/,
the/D
largest/J
equity/N
investor/N
in/I
the/D
labor-management/J
bid/N
,/,
withdrew/V
its/P
support/N
./.
###/###
Takeover/N
stock/N
traders/N
,/,
focusing/V
on/I
the/D
company/N
's/P
intention/N
to/T
stay/V
independent/J
,/,
took/V
the/D
announcement/N
as/I
bad/J
news/N
./.
###/###
UAL/N
,/,
which/W
had/V
risen/V
$/$
9.875/C
to/T
$/$
178.375/C
in/I
composite/J
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
on/I
reports/N
of/I
a/D
new/J
bid/N
being/N
prepared/V
by/I
the/D
group/N
,/,
reversed/V
course/N
and/C
plummeted/V
in/I
off-exchange/J
trading/N
after/I
the/D
5:09/C
p.m./R
EDT/N
announcement/N
./.
###/###
Among/I
the/D
first/J
trades/N
reported/V
by/I
the/D
securities/N
firm/N
of/I
Jefferies/N
&/C
Co./N
,/,
which/W
makes/V
a/D
market/N
in/I
UAL/N
after/I
the/D
exchange/N
is/V
closed/V
,/,
were/V
10,000/C
shares/N
at/I
$/$
170/C
,/,
6,000/C
shares/N
at/I
$/$
162/C
,/,
2,500/C
at/I
$/$
162/C
,/,
and/C
10,000/C
at/I
$/$
158/C
./.
###/###
The/D
rebound/N
in/I
UAL/N
stock/N
during/I
regular/J
trading/N
hours/N
Monday/N
was/V
its/P
first/R
daily/J
gain/N
after/I
six/C
consecutive/J
losses/N
left/V
the/D
price/N
41/C
%/N
below/I
its/P
level/N
before/I
Oct./N
13/C
,/,
the/D
day/N
the/D
group/N
announced/V
the/D
bank/N
financing/N
could/M
n't/R
be/V
obtained/V
for/I
the/D
original/J
deal/N
./.
###/###
Twelve/C
of/I
UAL/N
's/P
outside/J
directors/N
met/V
at/I
a/D
five-hour/J
meeting/N
yesterday/N
in/I
Chicago/N
to/T
consider/V
an/D
informal/J
proposal/N
from/I
the/D
buy-out/N
group/N
for/I
a/D
revised/J
bid/N
./.
###/###
But/C
the/D
board/N
said/V
it/P
was/V
n't/R
interested/J
for/I
now/R
./.
###/###
That/D
proposal/N
,/,
valued/V
at/I
between/I
$/$
225/C
and/C
$/$
240/C
a/D
share/N
,/,
would/M
have/V
transferred/V
majority/N
ownership/N
to/T
employees/N
while/I
leaving/V
some/D
stock/N
in/I
public/J
hands/N
./.
###/###
The/D
buy-out/N
group/N
had/V
no/D
firm/J
financing/N
for/I
the/D
plan/N
./.
###/###
And/C
,/,
with/I
no/D
other/J
offers/N
on/I
the/D
table/N
,/,
the/D
board/N
apparently/R
felt/V
no/D
pressure/N
to/T
act/V
on/I
it/P
./.
###/###
The/D
directors/N
signaled/V
,/,
however/R
,/,
that/I
they/P
would/M
be/V
willing/J
to/T
consider/V
future/J
offers/N
or/C
take/V
some/D
other/J
action/N
to/T
maximize/V
shareholder/N
value/N
,/,
saying/V
they/P
would/M
continue/V
to/T
explore/V
``/`
all/D
strategic/J
and/C
financial/J
alternatives/N
./.
''/'
###/###
But/C
it/P
was/V
clear/J
that/I
for/I
the/D
time/N
being/J
,/,
the/D
board/N
wants/V
the/D
company/N
to/T
return/V
to/T
normalcy/N
./.
###/###
The/D
board/N
said/V
it/P
concluded/V
that/I
``/`
the/D
welfare/N
of/I
the/D
company/N
,/,
its/P
shareholders/N
,/,
its/P
employees/N
and/C
the/D
broader/J
public.../:
can/M
best/R
be/V
enhanced/V
by/I
continued/J
development/N
of/I
UAL/N
as/I
a/D
strong/J
,/,
viable/J
,/,
independent/J
company/N
./.
''/'
###/###
Mr./N
Wolf/N
urged/V
all/D
employees/N
to/T
``/`
now/R
turn/V
their/P
full/J
attention/N
''/'
to/T
operating/V
the/D
airline/N
./.
###/###
He/P
also/R
vowed/V
to/T
``/`
make/V
every/D
effort/N
to/T
nurture.../:
a/D
constructive/J
new/J
relationship/N
that/W
has/V
been/V
forged/V
with/I
participating/V
employee/N
groups/N
./.
''/'
###/###
But/C
Mr./N
Wolf/N
faces/V
a/D
monumental/J
task/N
in/I
pulling/V
the/D
company/N
back/R
together/R
again/R
./.
###/###
Labor/N
problems/N
top/V
the/D
list/N
./.
###/###
For/I
a/D
brief/J
time/N
,/,
the/D
buy-out/N
effort/N
seemed/V
to/T
solve/V
his/P
problems/N
with/I
United/N
's/P
pilot/N
union/N
./.
###/###
In/I
return/N
for/I
an/D
ownership/N
stake/N
in/I
the/D
company/N
,/,
the/D
pilots/N
were/V
willing/J
to/T
agree/V
to/T
a/D
seven-year/J
contract/N
that/W
included/V
a/D
no-strike/J
clause/N
and/C
significant/J
wage/N
concessions/N
and/C
productivity/N
gains/N
the/D
union/N
previously/R
resisted/V
./.
###/###
That/D
contract/N
was/V
tied/V
to/T
the/D
success/N
of/I
the/D
buy-out/N
./.
###/###
As/I
a/D
``/`
good-will/N
measure/N
,/,
''/'
the/D
pilots/N
had/V
been/V
working/V
four/C
extra/J
hours/N
a/D
month/N
and/C
had/V
agreed/V
to/T
fly/V
UAL/N
's/P
two/C
new/J
Boeing/N
747-400/N
aircraft/N
./.
###/###
It/P
's/V
uncertain/J
if/I
the/D
pilots/N
will/M
continue/V
to/T
do/V
so/R
without/I
a/D
contract/N
settlement/N
./.
###/###
The/D
union/N
said/V
late/R
last/J
night/N
that/I
it/P
is/V
still/R
committed/J
to/T
majority/N
employee/N
ownership/N
and/C
that/I
the/D
labor/N
disputes/N
that/W
faced/V
the/D
company/N
prior/R
to/T
the/D
buy-out/N
effort/N
``/`
still/R
need/V
to/T
be/V
addressed/V
./.
''/'
###/###
The/D
buy-out/N
effort/N
also/R
worsened/V
already-strained/J
relations/N
between/I
United/N
's/P
pilot/N
and/C
machinist/N
unions/N
./.
###/###
The/D
machinists/N
'/P
criticisms/N
of/I
the/D
labor-management/J
bid/N
and/C
their/P
threats/N
of/I
a/D
strike/N
unless/I
they/P
received/V
substantial/J
wage/N
increases/N
this/D
year/N
helped/V
cool/V
banks/N
'/P
interest/N
in/I
financing/V
the/D
transaction/N
./.
###/###
The/D
machinists/N
previously/R
had/V
shown/V
themselves/P
to/T
be/V
an/D
ally/N
to/T
Mr./N
Wolf/N
,/,
but/C
he/P
lost/V
much/J
of/I
his/P
credibility/N
with/I
that/D
group/N
when/W
he/P
teamed/V
up/R
with/I
the/D
pilot/N
union/N
./.
###/###
The/D
machinists/N
criticized/V
the/D
terms/N
Mr./N
Wolf/N
and/C
management/N
received/V
in/I
the/D
buy-out/N
./.
###/###
They/P
paid/V
$/$
15/C
million/C
for/I
a/D
1/C
%/N
stake/N
and/C
received/V
an/D
additional/J
9/C
%/N
of/I
the/D
company/N
at/I
no/D
additional/J
cost/N
./.
###/###
His/P
credibility/N
is/V
also/R
on/I
the/D
line/N
in/I
the/D
investment/N
community/N
./.
###/###
Until/I
the/D
collapse/N
of/I
this/D
bid/N
,/,
Mr./N
Wolf/N
was/V
regarded/V
as/I
one/C
of/I
the/D
nation/N
's/P
savviest/J
airline/N
executives/N
after/I
engineering/N
turnarounds/N
of/I
Tiger/N
International/N
Inc./N
and/C
Republic/N
Airlines/N
./.
###/###
But/C
he/P
and/C
his/P
chief/J
financial/J
officer/N
,/,
John/N
Pope/N
,/,
sowed/V
some/D
of/I
the/D
seeds/N
for/I
the/D
deal/N
's/P
failure/N
by/I
insisting/V
banks/N
accept/V
low/J
financing/N
fees/N
and/C
interest/N
rates/N
,/,
while/I
they/P
invested/V
in/I
the/D
transaction/N
only/R
a/D
small/J
fraction/N
of/I
the/D
$/$
114.3/C
million/C
they/P
stood/V
to/T
gain/V
from/I
sale/N
of/I
their/P
UAL/N
stock/N
and/C
options/N
./.
###/###
The/D
board/N
's/P
actions/N
leave/V
takeover/N
stock/N
traders/N
nursing/V
some/R
$/$
700/C
million/C
in/I
losses/N
and/C
eager/J
to/T
respond/V
to/T
anyone/N
who/W
might/M
make/V
a/D
new/J
offer/N
./.
###/###
It/P
also/R
inevitably/R
leaves/V
a/D
residue/N
of/I
shareholder/N
lawsuits/N
./.
###/###
Arbitragers/N
said/V
they/P
were/V
disappointed/J
the/D
company/N
did/V
n't/R
announce/V
some/D
recapitalization/N
or/C
other/J
plan/N
to/T
maximize/V
value/N
./.
###/###
One/C
takeover/N
expert/N
noted/V
that/I
arbitragers/N
could/M
force/V
a/D
recapitalization/N
through/I
the/D
written/J
consent/N
process/N
under/I
which/W
holders/N
may/M
oust/V
the/D
board/N
by/I
a/D
majority/N
vote/N
./.
###/###
The/D
machinists/N
union/N
has/V
suggested/V
it/P
may/M
propose/V
a/D
recapitalization/N
that/W
includes/V
a/D
special/J
dividend/N
for/I
holders/N
and/C
a/D
minority/N
ownership/N
stake/N
for/I
employees/N
./.
###/###
Los/N
Angeles/N
investor/N
Marvin/N
Davis/N
,/,
whose/W
$/$
240-a-share/J
offer/N
for/I
UAL/N
in/I
August/N
triggered/V
a/D
bidding/N
war/N
,/,
says/V
he/P
remains/V
interested/J
in/I
the/D
airline/N
./.
###/###
However/R
,/,
he/P
is/V
restricted/V
from/I
making/V
certain/J
hostile/J
moves/N
by/I
an/D
agreement/N
he/P
signed/V
to/T
obtain/V
confidential/J
UAL/N
data/N
./.
###/###
Essentially/R
,/,
he/P
ca/M
n't/R
make/V
any/D
hostile/J
moves/N
unless/I
he/P
makes/V
a/D
tender/N
offer/N
at/I
least/J
$/$
300/C
a/D
share/N
./.
###/###
Tandy/N
Corp./N
said/V
it/P
wo/M
n't/R
join/V
U.S./N
Memories/N
,/,
the/D
group/N
that/W
seeks/V
to/T
battle/V
the/D
Japanese/N
in/I
the/D
market/N
for/I
computer/N
memory/N
chips/N
./.
###/###
Tandy/N
's/P
decision/N
is/V
a/D
second/J
setback/N
for/I
U.S./N
Memories/N
./.
###/###
Last/J
month/N
,/,
Apple/N
Computer/N
Inc./N
said/V
that/I
it/P
would/M
n't/R
invest/V
in/I
the/D
group/N
./.
###/###
Apple/N
said/V
that/D
its/P
money/N
would/M
be/V
better/R
spent/V
in/I
areas/N
such/J
as/I
research/N
and/C
development/N
./.
###/###
U.S./N
Memories/N
is/V
seeking/V
major/J
investors/N
to/T
back/V
its/P
attempt/N
to/T
crack/V
the/D
$/$
10/C
billion/C
market/N
for/I
dynamic/J
random/J
access/N
memory/N
chips/N
,/,
a/D
market/N
dominated/V
by/I
the/D
Japanese/N
./.
###/###
Those/D
chips/N
were/V
in/I
dire/J
shortage/N
last/J
year/N
,/,
hurting/V
many/J
U.S./N
computer/N
companies/N
that/W
could/M
n't/R
get/V
sufficient/J
Japanese-supplied/J
chips/N
./.
###/###
Tandy/N
said/V
its/P
experience/N
during/I
the/D
shortage/N
did/V
n't/R
merit/N
the/D
$/$
5/C
million/C
to/T
$/$
50/C
million/C
investment/N
U.S./N
Memories/N
is/V
seeking/V
from/I
each/D
investor/N
./.
###/###
``/`
At/I
this/D
time/N
,/,
we/P
elected/V
not/R
to/T
get/V
involved/V
because/I
we/P
have/V
been/V
able/J
to/T
satisfy/V
our/P
need/N
-LCB-/-
for/I
DRAMs/N
-RCB-/-
from/I
the/D
market/N
as/I
a/D
rule/N
,/,
''/'
said/V
Ed/N
Juge/N
,/,
Tandy/N
's/P
director/N
of/I
market/N
planning/N
./.
###/###
Sanford/N
Kane/N
,/,
U.S./N
Memories/N
president/N
,/,
said/V
the/D
decision/N
was/V
``/`
disappointing/J
,/,
''/'
but/C
does/V
n't/R
presage/V
U.S./N
Memories/N
'/P
failure/N
./.
###/###
``/`
I/P
would/M
like/V
to/T
have/V
had/V
them/P
,/,
''/'
he/P
said/V
./.
###/###
But/C
``/`
they/P
were/V
n't/R
on/I
my/P
list/N
of/I
companies/N
who/W
were/V
critical/J
to/T
be/V
a/D
part/N
of/I
it/P
./.
''/'
###/###
Mr./N
Kane/N
became/V
president/N
and/C
chief/J
executive/J
officer/N
of/I
U.S./N
Memories/N
last/J
June/N
,/,
when/W
the/D
group/N
was/V
formed/V
by/I
seven/C
electronics/N
companies/N
:/:
Advanced/N
Micro/N
Devices/N
Inc./N
,/,
Digital/N
Equipment/N
Corp./N
;/:
Hewlett-Packard/N
Co./N
;/:
Intel/N
Corp./N
;/:
International/N
Business/N
Machines/N
Corp./N
;/:
LSI/N
Logic/N
Corp./N
and/C
National/N
Semiconductor/N
Corp/N
./.
###/###
Mr./N
Kane/N
said/V
he/P
expects/V
two/C
or/C
three/C
major/J
corporations/N
to/T
announce/V
their/P
participation/N
in/I
U.S./N
Memories/N
soon/R
after/I
the/D
group/N
finishes/V
a/D
business/N
plan/N
,/,
probably/R
late/R
this/D
week/N
./.
###/###
U.S./N
Memories/N
needs/V
a/D
catalyst/N
,/,
he/P
said/V
,/,
to/T
inspire/V
others/N
to/T
join/V
./.
###/###
But/C
so/R
far/R
,/,
most/R
potential/J
participants/N
have/V
n't/R
decided/V
./.
###/###
Sun/N
Microsystems/N
Inc./N
said/V
it/P
's/V
still/R
actively/R
evaluating/V
U.S./N
Memories/N
and/C
plans/V
to/T
meet/V
with/I
U.S./N
Memories/N
representatives/N
later/R
this/D
week/N
./.
###/###
American/N
Telephone/N
&/C
Telegraph/N
Co./N
said/V
it/P
was/V
waiting/V
to/T
see/V
U.S./N
Memories/N
'/P
business/N
plan/N
./.
###/###
Personal-computer/N
maker/N
AST/N
Research/N
Inc./N
said/V
it/P
is/V
still/R
studying/V
the/D
situation/N
./.
###/###
A/D
Compaq/N
Computer/N
Corp./N
spokeswoman/N
said/V
that/I
the/D
company/N
has/V
n't/R
made/V
a/D
decision/N
yet/R
,/,
although/I
``/`
it/P
is/V
n't/R
under/I
active/J
consideration/N
./.
###/###
In/I
a/D
startling/J
turnabout/N
,/,
Members/N
of/I
the/D
Senate/N
Intelligence/N
Committee/N
are/V
complaining/V
that/I
someone/N
in/I
the/D
executive/J
branch/N
is/V
leaking/V
on/I
them/P
./.
###/###
David/N
Boren/N
,/,
the/D
Intelligence/N
Committee/N
chairman/N
,/,
is/V
upset/J
that/I
someone/N
leaked/V
a/D
letter/N
to/T
the/D
committee/N
from/I
the/D
Reagan/N
administration/N
suggesting/V
that/I
the/D
U.S./N
would/M
undertake/V
to/T
warn/V
Panamanian/J
thug/N
Manuel/N
Noriega/N
if/I
it/P
got/V
wind/N
of/I
an/D
impending/J
coup/N
that/W
might/M
result/V
in/I
his/P
assassination/N
./.
###/###
With/I
due/J
respect/N
to/T
``/`
highly/R
classified/J
correspondence/N
''/'
and/C
other/J
buzzwords/N
,/,
the/D
leakers/N
are/V
performing/V
a/D
public/J
service/N
./.
###/###
If/I
the/D
CIA/N
has/V
become/V
a/D
protection/N
service/N
for/I
Mr./N
Noriega/N
,/,
the/D
American/J
people/N
ought/M
to/T
know/V
./.
###/###
What/W
went/V
wrong/J
in/I
Panama/N
is/V
a/D
fitting/J
subject/N
for/I
public/J
and/C
congressional/J
inquiry/N
./.
###/###
Naturally/R
,/,
Senator/N
Boren/N
and/C
his/P
committee/N
would/M
like/V
free/J
rein/N
to/T
blame/V
the/D
executive/J
branch/N
while/I
stamping/V
``/`
top/J
secret/N
''/'
on/I
their/P
own/J
complicity/N
./.
###/###
But/C
there/E
's/V
no/D
danger/N
of/I
exposing/V
sources/N
and/C
methods/N
in/I
disclosing/V
the/D
debate/N
running/V
up/I
and/C
down/I
Pennsylvania/N
Avenue/N
./.
###/###
And/C
if/I
Congress/N
is/V
going/V
to/T
assume/V
authority/N
to/T
micromanage/N
foreign/J
policy/N
,/,
it/P
's/V
going/V
to/T
have/V
to/T
take/V
some/D
of/I
the/D
responsibility/N
too/R
./.
###/###
The/D
President/N
of/I
the/D
United/N
States/N
urged/V
the/D
Panamanian/J
armed/J
forces/N
to/T
move/V
against/I
Mr./N
Noriega/N
./.
###/###
When/W
they/P
did/V
,/,
his/P
commanders/N
did/V
n't/R
have/V
the/D
initiative/N
to/T
do/V
more/J
than/I
block/V
a/D
couple/N
of/I
roads/N
./.
###/###
The/D
executive/J
branch/N
bears/V
the/D
first/J
responsibility/N
for/I
timidity/N
./.
###/###
But/C
what/W
kind/N
of/I
initiative/N
can/M
you/P
expect/V
given/V
the/D
climate/N
set/V
by/I
Congress/N
?/.
###/###
For/I
example/N
,/,
what/W
exactly/R
did/V
the/D
CIA/N
tell/V
Major/N
Giroldi/N
and/C
his/P
fellow/N
coup/N
plotters/N
about/I
U.S./N
laws/N
and/C
executive/J
orders/N
on/I
assassinations/N
?/.
###/###
What/W
part/N
did/V
U.S./N
warnings/N
play/V
in/I
the/D
major/N
's/P
unwillingness/N
to/T
pull/V
the/D
trigger/N
when/W
he/P
had/V
General/N
Noriega/N
in/I
custody/N
,/,
but/C
was/V
under/I
attack/N
by/I
pro-Noriega/J
troops/N
?/.
###/###
Mr./N
Noriega/N
did/V
n't/R
suffer/V
from/I
any/D
hesitation/N
once/I
he/P
had/V
the/D
pistol/N
./.
###/###
Maybe/R
we/P
need/V
a/D
CIA/N
version/N
of/I
the/D
Miranda/N
warning/N
:/:
You/P
have/V
the/D
right/N
to/T
conceal/V
your/P
coup/N
intentions/N
,/,
because/I
we/P
may/M
rat/V
on/I
you/P
./.
###/###
Or/C
maybe/R
a/D
Surgeon/N
General/N
's/P
warning/N
:/:
Confiding/V
in/I
the/D
United/N
States/N
may/M
be/V
fatal/J
./.
###/###
CIA/N
chief/N
William/N
Webster/N
,/,
hardly/R
a/D
Washington/N
malcontent/N
,/,
got/V
the/D
debate/N
started/V
last/J
week/N
by/I
noting/V
that/I
the/D
executive/J
order/N
banning/V
assassinations/N
had/V
contributed/V
to/T
U.S./N
paralysis/N
during/I
the/D
coup/N
./.
###/###
The/D
CIA/N
's/P
Deputy/N
Director/N
of/I
Operations/N
,/,
Richard/N
Stoltz/N
,/,
tried/V
to/T
smooth/V
things/N
over/R
a/D
few/J
days/N
later/R
,/,
but/C
instead/R
simply/R
underlined/V
Mr./N
Webster/N
's/P
point/N
./.
###/###
``/`
The/D
interpretation/N
''/'
of/I
the/D
executive/J
order/N
,/,
Mr./N
Stoltz/N
said/V
,/,
``/`
and/C
the/D
way/N
in/I
which/W
the/D
various/J
committees/N
have/V
over/I
time/N
interpreted/V
it/P
,/,
has/V
led/V
in/I
my/P
view/N
to/T
a/D
proper/J
caution/N
on/I
the/D
part/N
of/I
operators/N
,/,
including/V
me/P
./.
''/'
###/###
In/I
other/J
words/N
,/,
Congress/N
wo/M
n't/R
let/V
the/D
CIA/N
do/V
much/J
of/I
anything/N
anymore/R
,/,
and/C
that/D
's/V
fine/J
with/I
the/D
CIA/N
./.
###/###
The/D
pay/N
's/V
the/D
same/J
,/,
and/C
the/D
duty/N
's/P
lighter/J
./.
###/###
And/C
of/I
course/N
,/,
doing/V
anything/N
that/W
might/M
be/V
second-guessed/V
by/I
Congress/N
carries/V
heavy/J
penalties/N
./.
###/###
Witness/V
the/D
Walsh/N
prosecution/N
of/I
Ollie/N
North/N
./.
###/###
The/D
Intelligence/N
Committee/N
's/P
ranking/J
Republican/N
,/,
Senator/N
William/N
Cohen/N
,/,
joined/V
with/I
Senator/N
George/N
Mitchell/N
to/T
write/V
a/D
best/J
seller/N
about/I
Iran-Contra/N
,/,
deploring/V
``/`
Men/N
of/I
Zeal/N
./.
''/'
###/###
No/D
doubt/N
many/J
people/N
in/I
the/D
CIA/N
,/,
the/D
Pentagon/N
and/C
the/D
National/N
Security/N
Council/N
have/V
read/V
it/P
./.
###/###
What/W
kind/N
of/I
initiative/N
should/M
anyone/N
expect/V
from/I
people/N
out/I
on/I
the/D
line/N
who/W
've/V
read/V
all/P
this/D
and/C
know/V
what/W
can/M
happen/V
if/I
they/P
fail/V
?/.
###/###
Who/W
wants/V
to/T
end/V
up/R
as/I
the/D
protagonist/N
in/I
a/D
Bill/N
Cohen/N
morality/N
play/N
?/.
###/###
The/D
order/N
against/I
assassinations/N
is/V
another/D
artifact/N
of/I
the/D
same/J
congressional/J
mind-set/N
,/,
a/D
product/N
of/I
the/D
1970s/N
Vietnam/N
syndrome/N
against/I
any/D
executive/J
action/N
./.
###/###
President/N
Bush/N
would/M
do/V
himself/P
and/C
the/D
country/N
a/D
favor/N
by/I
rescinding/V
the/D
order/N
as/I
an/D
ambiguous/J
intrusion/N
on/I
his/P
ability/N
to/T
defend/V
America/N
's/P
national/J
security/N
./.
###/###
There/E
are/V
of/I
course/N
good/J
reasons/N
the/D
U.S./N
should/M
n't/R
get/V
into/I
the/D
assassination/N
business/N
,/,
but/C
rescinding/V
the/D
executive/J
order/N
is/V
not/R
the/D
same/J
thing/N
as/I
saying/V
the/D
U.S./N
should/M
start/V
passing/V
out/R
exploding/V
cigars/N
./.
###/###
The/D
world/N
being/V
the/D
nasty/J
place/N
it/P
is/V
,/,
we/P
want/V
Presidents/N
to/T
have/V
the/D
freedom/N
to/T
order/V
operations/N
in/I
which/W
someone/N
might/M
get/V
killed/V
./.
###/###
In/I
such/J
situations/N
,/,
you/P
can/M
not/R
write/V
rules/N
in/I
advance/N
,/,
you/P
can/M
only/R
make/V
sure/J
the/D
President/N
takes/V
the/D
responsibility/N
./.
###/###
The/D
executive/J
order/N
and/C
the/D
reported/J
agreements/N
with/I
the/D
Intelligence/N
Committee/N
are/V
neither/D
sensible/J
nor/C
moral/J
./.
###/###
As/I
it/P
now/R
stands/V
,/,
the/D
U.S./N
can/M
bomb/V
Tripoli/N
,/,
but/C
ca/M
n't/R
``/`
assassinate/V
''/'
Colonel/N
Gadhafi/N
./.
###/###
It/P
can/M
send/V
a/D
fighter/N
squadron/N
to/T
strafe/V
terrorist/J
hideouts/N
in/I
the/D
Bekaa/N
Valley/N
,/,
but/C
ca/M
n't/R
shoot/V
Abu/N
Nidal/N
./.
###/###
Both/P
the/D
assassination/N
order/N
and/C
the/D
quality/N
of/I
debate/N
in/I
Washington/N
are/V
telling/V
the/D
world/N
that/I
the/D
only/J
way/N
the/D
U.S./N
will/M
kill/V
a/D
madman/N
is/V
by/I
making/V
sure/J
we/P
take/V
some/D
innocent/J
civilians/N
with/I
him/P
./.
###/###
We/P
've/V
heard/V
California/N
's/P
property-tax-cutting/J
Proposition/N
13/C
blamed/V
for/I
a/D
lot/N
over/I
the/D
years/N
,/,
but/C
ABC/N
's/P
Ted/N
Koppel/N
came/V
up/R
with/I
a/D
new/J
wrinkle/N
in/I
his/P
earthquake/N
coverage/N
last/J
week/N
when/W
he/P
asked/V
Democratic/N
Assemblyman/N
Richard/N
Katz/N
if/I
Prop./N
13/C
had/V
withheld/V
money/N
needed/V
for/I
road/N
maintenance/N
./.
###/###
Mr./N
Katz/N
happily/R
agreed/V
,/,
sliding/V
over/I
the/D
fact/N
that/I
California/N
's/P
roads/N
and/C
bridges/N
are/V
n't/R
funded/V
by/I
property/N
taxes/N
but/C
by/I
state/N
and/C
federal/J
gasoline/N
taxes/N
./.
###/###
Both/D
have/V
been/V
raised/V
at/I
least/J
30/C
%/N
in/I
recent/J
years/N
,/,
even/R
while/I
the/D
price/N
of/I
gasoline/N
has/V
fallen/V
./.
###/###
Dragging/V
Prop./N
13/C
into/I
this/D
story/N
is/V
a/D
pretty/R
long/J
stretch/N
./.
###/###
A/D
series/N
of/I
explosions/N
tore/V
through/I
the/D
huge/J
Phillips/N
Petroleum/N
Co./N
plastics/N
plant/N
near/I
here/R
,/,
injuring/V
more/J
than/I
a/D
hundred/C
and/C
closing/V
parts/N
of/I
the/D
Houston/N
Ship/N
Channel/N
./.
###/###
There/E
were/V
no/D
immediate/J
reports/N
of/I
deaths/N
,/,
but/C
officials/N
said/V
a/D
number/N
of/I
workers/N
were/V
still/R
unaccounted/J
for/I
last/J
night/N
./.
###/###
The/D
Bartlesville/N
,/,
Okla./N
,/,
oil/N
company/N
late/R
yesterday/N
still/R
had/V
n't/R
said/V
officially/R
what/W
caused/V
the/D
explosions/N
and/C
fires/N
,/,
which/W
sent/V
columns/N
of/I
heavy/J
black/J
smoke/N
billowing/V
high/R
into/I
the/D
air/N
./.
###/###
One/C
local/J
Phillips/N
manager/N
said/V
a/D
seal/N
blew/V
in/I
one/C
of/I
the/D
plant/N
's/P
reactors/N
./.
###/###
Glenn/N
Cox/N
,/,
Phillips/N
'/P
president/N
and/C
chief/N
operating/V
officer/N
,/,
and/C
other/J
Phillips/N
officials/N
flew/V
from/I
Bartlesville/N
to/T
assess/V
the/D
damage/N
and/C
determine/V
the/D
cause/N
of/I
the/D
afternoon/N
explosions/N
./.
###/###
In/I
composite/J
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
,/,
Phillips/N
Petroleum/N
shares/N
fell/V
$/$
1.125/C
to/T
$/$
23.125/C
./.
###/###
The/D
plastics/N
plant/N
is/V
located/V
on/I
an/D
800-acre/J
tract/N
in/I
the/D
heart/N
of/I
the/D
petrochemical/N
corridor/N
that/W
reaches/V
along/I
the/D
U.S./N
Gulf/N
Coast/N
./.
###/###
The/D
U.S./N
Coast/N
Guard/N
closed/V
six/C
miles/N
of/I
the/D
Houston/N
Ship/N
Channel/N
,/,
where/W
about/R
150/C
companies/N
have/V
operations/N
,/,
because/I
the/D
thick/J
,/,
black/J
smoke/N
obscured/V
the/D
area/N
./.
###/###
The/D
Port/N
of/I
Houston/N
closed/V
its/P
terminal/N
for/I
handling/V
bulk/J
cargo/N
./.
###/###
Broken/J
water/N
lines/N
and/C
gas/N
leaks/N
hindered/V
firefighters/N
'/P
efforts/N
,/,
but/C
by/I
late/R
yesterday/N
authorities/N
said/V
they/P
had/V
the/D
fire/N
under/I
control/N
./.
###/###
The/D
blasts/N
blew/V
out/R
windows/N
,/,
spewed/V
debris/N
for/I
miles/N
and/C
crumpled/V
the/D
ceiling/N
in/I
an/D
area/N
elementary/J
school/N
./.
###/###
The/D
initial/J
fireball/N
was/V
caught/V
by/I
cameras/N
in/I
downtown/J
Houston/N
,/,
about/R
10/C
miles/N
away/R
./.
###/###
Nearby/J
Pasadena/N
,/,
Texas/N
,/,
police/N
reported/V
that/I
104/C
people/N
had/V
been/V
taken/V
to/T
area/N
hospitals/N
,/,
but/C
a/D
spokeswoman/N
said/V
that/D
toll/N
could/M
rise/V
./.
###/###
The/D
injured/J
,/,
including/V
three/C
in/I
critical/J
condition/N
,/,
were/V
treated/V
for/I
burns/N
,/,
breathing/N
problems/N
and/C
cuts/N
from/I
flying/V
glass/N
,/,
hospital/N
officials/N
said/V
./.
###/###
The/D
plant/N
employs/V
between/I
800/C
and/C
900/C
on/I
three/C
shifts/N
./.
###/###
The/D
number/N
working/V
at/I
the/D
time/N
of/I
the/D
blast/N
was/V
n't/R
known/V
./.
###/###
Yesterday/N
's/P
explosions/N
were/V
the/D
second/J
round/N
in/I
two/C
months/N
at/I
the/D
plastics/N
plant/N
./.
###/###
In/I
late/J
August/N
,/,
four/C
contract/N
workers/N
were/V
injured/V
and/C
one/C
Phillips/N
employee/N
died/V
after/I
an/D
explosion/N
at/I
a/D
fuel/N
supply/N
line/N
near/I
the/D
facility/N
's/P
boiler/N
house/N
./.
###/###
The/D
Phillips/N
facility/N
manufactures/V
polyethylene/N
,/,
polypropylene/N
and/C
K-resin/N
,/,
plastics/N
used/V
in/I
a/D
wide/J
array/N
of/I
applications/N
,/,
including/V
milk/N
jugs/N
and/C
toys/N
./.
###/###
Plastics/N
are/V
the/D
cornerstone/N
of/I
Phillips/N
'/P
chemicals/N
operations/N
,/,
which/W
is/V
the/D
biggest/J
single/J
contributor/N
to/T
the/D
company/N
's/P
profits/N
./.
###/###
A/D
federal/J
judge/N
in/I
Manhattan/N
has/V
entered/V
a/D
judgment/N
requiring/V
a/D
Chicago/N
organized/J
crime/N
figure/N
to/T
pay/V
the/D
government/N
$/$
250,000/C
,/,
representing/V
alleged/J
profits/N
he/P
gained/V
from/I
his/P
involvement/N
with/I
the/D
International/N
Brotherhood/N
of/I
Teamsters/N
./.
###/###
Manhattan/N
U.S./N
Attorney/N
Otto/N
Obermaier/N
said/V
it/P
was/V
the/D
first/J
time/N
ever/R
that/I
the/D
government/N
had/V
obtained/V
any/D
disgorgement/N
from/I
an/D
organized/J
crime/N
figure/N
indicted/V
under/I
the/D
civil/J
racketeering/N
law/N
./.
###/###
Joseph/N
Lombardo/N
,/,
who/W
the/D
government/N
alleged/V
was/V
the/D
``/`
captain/N
''/'
of/I
organized/J
crime/N
in/I
Chicago/N
,/,
was/V
one/C
of/I
numerous/J
defendants/N
in/I
the/D
government/N
's/P
sweeping/J
racketeering/N
suit/N
against/I
the/D
Teamsters/N
./.
###/###
In/I
the/D
suit/N
,/,
filed/V
in/I
June/N
1988/C
,/,
the/D
government/N
accused/V
the/D
union/N
's/P
leadership/N
of/I
depriving/V
its/P
1.6/C
million/C
members/N
of/I
their/P
rights/N
through/I
a/D
pattern/N
of/I
racketeering/N
./.
###/###
Among/I
other/J
things/N
,/,
the/D
government/N
claimed/V
that/I
organized/J
crime/N
figures/N
had/V
routinely/R
handpicked/V
the/D
union/N
's/P
top/J
officials/N
./.
###/###
U.S./N
District/N
Judge/N
David/N
Edelstein/N
also/R
permanently/R
enjoined/V
Mr./N
Lombardo/N
from/I
any/D
future/J
dealings/N
with/I
the/D
Teamsters/N
or/C
any/D
other/J
labor/N
union/N
./.
###/###
Mr./N
Lombardo/N
,/,
the/D
last/J
of/I
the/D
defendants/N
to/T
settle/V
the/D
suit/N
,/,
agreed/V
to/T
pay/V
the/D
government/N
the/D
$/$
250,000/C
within/I
one/C
week/N
./.
###/###
Exxon/N
Corp./N
said/V
its/P
third-quarter/J
earnings/N
slipped/V
9/C
%/N
as/I
profits/N
from/I
two/C
of/I
its/P
three/C
major/J
businesses/N
sagged/V
./.
###/###
All/D
cleanup/N
costs/N
from/I
last/J
spring/N
's/P
Alaskan/J
oil/N
spill/N
were/V
reflected/V
in/I
earlier/J
results/N
,/,
it/P
said/V
./.
###/###
Phillips/N
Petroleum/N
Co./N
and/C
Atlantic/N
Richfield/N
Co./N
also/R
reported/V
declines/N
in/I
quarterly/J
profit/N
,/,
while/I
Ashland/N
Oil/N
Inc./N
posted/V
a/D
loss/N
for/I
the/D
latest/J
quarter/N
./.
###/###
Amerada/N
Hess/N
Corp./N
and/C
Occidental/N
Petroleum/N
Corp./N
reported/V
higher/J
earnings/N
./.
###/###
Although/I
Exxon/N
spent/V
heavily/R
during/I
the/D
latest/J
quarter/N
to/T
clean/V
up/R
the/D
Alaskan/J
shoreline/N
blackened/V
by/I
its/P
huge/J
oil/N
spill/N
,/,
those/D
expenses/N
as/R
well/R
as/I
the/D
cost/N
of/I
a/D
continuing/J
spill-related/J
program/N
are/V
covered/V
by/I
$/$
880/C
million/C
in/I
charges/N
taken/V
during/I
the/D
first/J
half/N
./.
###/###
An/D
Exxon/N
official/N
said/V
that/I
at/I
this/D
time/N
the/D
oil/N
company/N
does/V
n't/R
anticipate/V
any/D
additional/J
charges/N
to/T
future/J
earnings/N
relating/V
to/T
the/D
cleanup/N
of/I
oil/N
spilled/V
when/W
one/C
of/I
its/P
tankers/N
rammed/V
into/I
an/D
underwater/J
reef/N
./.
###/###
She/P
added/V
,/,
however/R
,/,
that/I
charges/N
already/R
taken/V
do/V
n't/R
take/V
into/I
account/N
the/D
potential/J
effect/N
of/I
litigation/N
involving/V
the/D
oil/N
spill/N
./.
###/###
She/P
said/V
that/D
impact/N
ca/M
n't/R
be/V
reasonably/R
assessed/V
yet/R
./.
###/###
Exxon/N
's/P
net/J
income/N
during/I
the/D
third/J
quarter/N
dropped/V
to/T
$/$
1.11/C
billion/C
,/,
or/C
87/C
cents/N
a/D
share/N
,/,
from/I
$/$
1.22/C
billion/C
,/,
or/C
93/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Revenue/N
rose/V
8.1/C
%/N
,/,
to/T
$/$
23.65/C
billion/C
from/I
$/$
21.88/C
billion/C
./.
###/###
During/I
the/D
third/J
quarter/N
,/,
Exxon/N
purchased/V
8.34/C
million/C
shares/N
of/I
its/P
stock/N
at/I
a/D
cost/N
of/I
$/$
373/C
million/C
./.
###/###
Exxon/N
's/P
profitability/N
,/,
like/I
that/D
of/I
many/J
other/J
oil/N
companies/N
,/,
was/V
hurt/V
during/I
the/D
third/J
quarter/N
by/I
declining/V
returns/N
from/I
the/D
chemicals/N
and/C
refining/N
and/C
marketing/N
businesses/N
./.
###/###
Exxon/N
's/P
earnings/N
from/I
chemicals/N
operations/N
fell/V
$/$
90/C
million/C
,/,
to/T
$/$
254/C
million/C
,/,
while/I
refining/N
and/C
marketing/N
profits/N
declined/V
$/$
180/C
million/C
,/,
to/T
$/$
357/C
million/C
./.
###/###
Although/I
crude/J
oil/N
prices/N
were/V
significantly/R
higher/J
this/D
year/N
,/,
they/P
were/V
n't/R
strong/J
enough/R
to/T
offset/V
the/D
declining/V
profits/N
in/I
those/D
business/N
sectors/N
at/I
most/J
oil/N
companies/N
,/,
said/V
William/N
Randol/N
,/,
oil/N
analyst/N
for/I
First/N
Boston/N
Corp/N
./.
###/###
He/P
estimates/V
that/I
the/D
price/N
of/I
West/N
Texas/N
Intermediate/N
,/,
the/D
U.S./N
benchmark/J
crude/N
,/,
was/V
$/$
4.04/C
a/D
barrel/N
higher/J
during/I
the/D
third/J
quarter/N
of/I
this/D
year/N
than/I
in/I
the/D
same/J
period/N
last/J
year/N
./.
###/###
A/D
rash/N
of/I
one-time/J
charges/N
left/V
Ashland/N
Oil/N
with/I
a/D
loss/N
of/I
$/$
39/C
million/C
for/I
its/P
fiscal/J
fourth/J
quarter/N
./.
###/###
A/D
year/N
earlier/R
,/,
the/D
refiner/N
earned/V
$/$
66/C
million/C
,/,
or/C
$/$
1.19/C
a/D
share/N
./.
###/###
Quarterly/J
revenue/N
rose/V
4.5/C
%/N
,/,
to/T
$/$
2.3/C
billion/C
from/I
$/$
2.2/C
billion/C
./.
###/###
For/I
the/D
year/N
,/,
net/J
income/N
tumbled/V
61/C
%/N
to/T
$/$
86/C
million/C
,/,
or/C
$/$
1.55/C
a/D
share/N
./.
###/###
The/D
Ashland/N
,/,
Ky./N
,/,
oil/N
company/N
reported/V
a/D
$/$
38/C
million/C
charge/N
resulting/V
from/I
settlement/N
of/I
a/D
10-year/J
dispute/N
with/I
the/D
National/N
Iranian/N
Oil/N
Co./N
over/I
claims/N
that/I
Ashland/N
did/V
n't/R
pay/N
for/I
Iranian/J
crude/N
it/P
had/V
received/V
./.
###/###
In/I
September/N
,/,
Ashland/N
settled/V
the/D
long-simmering/J
dispute/N
by/I
agreeing/V
to/T
pay/V
Iran/N
$/$
325/C
million/C
./.
###/###
Ashland/N
also/R
took/V
a/D
$/$
25/C
million/C
after-tax/J
charge/N
to/T
cover/V
anticipated/J
costs/N
to/T
correct/V
problems/N
with/I
boilers/N
built/V
by/I
one/C
of/I
its/P
subsidiaries/N
./.
###/###
The/D
oil/N
refiner/N
also/R
booked/V
a/D
$/$
15/C
million/C
charge/N
for/I
selling/V
Ashland/N
Technology/N
Corp./N
,/,
one/C
of/I
its/P
subsidiaries/N
,/,
at/I
a/D
loss/N
./.
###/###
Third-quarter/J
earnings/N
at/I
Amerada/N
Hess/N
more/R
than/I
tripled/V
to/T
$/$
51.81/C
million/C
,/,
or/C
64/C
cents/N
a/D
share/N
,/,
from/I
$/$
15.7/C
million/C
,/,
or/C
20/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Revenue/N
climbed/V
28/C
%/N
,/,
to/T
$/$
1.18/C
billion/C
from/I
$/$
925/C
million/C
./.
###/###
Profits/N
improved/V
across/I
Hess/N
's/P
businesses/N
./.
###/###
Refining/N
and/C
marketing/N
earnings/N
climbed/V
to/T
$/$
33.3/C
million/C
from/I
$/$
12.9/C
million/C
,/,
and/C
exploration/N
and/C
production/N
earnings/N
rose/V
to/T
$/$
37.1/C
million/C
from/I
$/$
17.9/C
million/C
./.
###/###
Hess/N
's/P
earnings/N
were/V
up/R
despite/I
a/D
$/$
30/C
million/C
charge/N
to/T
cover/V
the/D
cost/N
of/I
maintaining/V
operations/N
after/I
Hurricane/N
Hugo/N
heavily/R
damaged/V
the/D
company/N
's/P
refinery/N
at/I
St./N
Croix/N
./.
###/###
It/P
is/V
widely/R
known/V
within/I
industry/N
circles/N
that/I
Hess/N
had/V
to/T
buy/V
oil/N
products/N
in/I
the/D
high-priced/J
spot/N
markets/N
to/T
continue/V
supplying/V
its/P
customers/N
./.
###/###
Hess/N
declined/V
to/T
comment/V
./.
###/###
Phillips/N
Petroleum/N
's/P
third-quarter/J
earnings/N
slid/V
60/C
%/N
,/,
to/T
$/$
87/C
million/C
,/,
or/C
36/C
cents/N
a/D
share/N
,/,
from/I
$/$
215/C
million/C
,/,
or/C
89/C
cents/N
a/D
share/N
./.
###/###
Revenue/N
rose/V
6.9/C
%/N
,/,
to/T
$/$
3.1/C
billion/C
from/I
$/$
2.9/C
billion/C
./.
###/###
Shrinking/V
profit/N
margins/N
in/I
chemical/N
and/C
refining/N
and/C
marketing/N
sectors/N
accounted/V
for/I
most/J
of/I
the/D
decline/N
,/,
said/V
Chairman/N
C.J./N
Silas/N
in/I
a/D
statement/N
./.
###/###
Despite/I
higher/J
oil/N
prices/N
,/,
exploration/N
and/C
production/N
profits/N
were/V
off/R
because/R
of/I
foreign-currency/N
losses/N
and/C
some/D
construction/N
costs/N
incurred/V
in/I
one/C
of/I
Phillips/N
'/P
North/N
Sea/N
oil/N
fields/N
./.
###/###
A/D
year/N
ago/R
,/,
results/N
were/V
buoyed/V
by/I
a/D
$/$
20/C
million/C
after-tax/J
gain/N
from/I
an/D
asset/N
sale/N
./.
###/###
Occidental/N
Petroleum/N
's/P
third-quarter/J
net/J
income/N
rose/V
2.9/C
%/N
to/T
$/$
108/C
million/C
,/,
or/C
39/C
cents/N
a/D
share/N
,/,
from/I
$/$
105/C
million/C
,/,
or/C
38/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
The/D
latest/J
quarter/N
included/V
an/D
after-tax/J
gain/N
of/I
$/$
71/C
million/C
from/I
non-recurring/J
items/N
./.
###/###
Sales/N
dropped/V
2/C
%/N
,/,
to/T
$/$
4.8/C
billion/C
from/I
$/$
4.9/C
billion/C
./.
###/###
The/D
latest/J
period/N
included/V
a/D
$/$
54/C
million/C
gain/N
from/I
the/D
sale/N
of/I
various/J
oil/N
and/C
gas/N
properties/N
,/,
a/D
$/$
22/C
million/C
charge/N
from/I
the/D
restructuring/N
of/I
Occidental/N
's/P
domestic/J
oil/N
and/C
gas/N
operations/N
,/,
and/C
tax/N
credits/N
of/I
$/$
42/C
million/C
./.
###/###
Both/D
periods/N
included/V
non-recurring/J
charges/N
of/I
$/$
3/C
million/C
for/I
early/J
retirement/N
of/I
debt/N
./.
###/###
Occidental/N
said/V
oil/N
and/C
gas/N
earnings/N
fell/V
to/T
$/$
17/C
million/C
from/I
$/$
20/C
million/C
./.
###/###
The/D
latest/J
period/N
includes/V
net/J
gains/N
of/I
$/$
32/C
million/C
in/I
non-recurring/J
credits/N
from/I
the/D
sale/N
of/I
properties/N
,/,
indicating/V
operating/N
losses/N
for/I
the/D
quarter/N
in/I
the/D
oil/N
and/C
gas/N
division/N
./.
###/###
Chemical/N
earnings/N
fell/V
10/C
%/N
,/,
reflecting/V
softening/N
of/I
demand/N
./.
###/###
Citing/V
its/P
reduced/J
ownership/N
in/I
the/D
Lyondell/N
Petrochemical/N
Co./N
,/,
Atlantic/N
Richfield/N
reported/V
that/I
net/J
income/N
slid/V
3.1/C
%/N
in/I
the/D
third/J
quarter/N
to/T
$/$
379/C
million/C
,/,
or/C
$/$
2.19/C
a/D
share/N
,/,
from/I
$/$
391/C
million/C
,/,
or/C
$/$
2.17/C
a/D
share/N
,/,
for/I
the/D
comparable/J
period/N
last/J
year/N
./.
###/###
Sales/N
fell/V
20/C
%/N
,/,
to/T
$/$
3.7/C
billion/C
from/I
$/$
4.6/C
billion/C
./.
###/###
Arco/N
's/P
earnings/N
from/I
its/P
49.9/C
%/N
stake/N
in/I
Lyondell/N
fell/V
to/T
$/$
37/C
million/C
from/I
$/$
156/C
million/C
for/I
the/D
same/J
period/N
last/J
year/N
,/,
when/W
Lyondell/N
was/V
wholly/R
owned/V
./.
###/###
Offsetting/V
the/D
lower/J
stake/N
in/I
Lyondell/N
were/V
higher/J
crude/J
oil/N
prices/N
,/,
increased/J
natural/J
gas/N
volumes/N
and/C
higher/J
coke/N
prices/N
,/,
the/D
company/N
said/V
./.
###/###
Coal/N
earnings/N
rose/V
to/T
$/$
26/C
million/C
from/I
$/$
21/C
million/C
./.
###/###
For/I
the/D
nine/C
months/N
,/,
Arco/N
reported/V
net/J
income/N
of/I
$/$
1.6/C
billion/C
,/,
or/C
$/$
8.87/C
a/D
share/N
,/,
up/R
33/C
%/N
from/I
$/$
1.2/C
billion/C
or/C
$/$
6.56/C
a/D
share/N
a/D
year/N
earlier/R
./.
###/###
Sales/N
were/V
$/$
12/C
billion/C
,/,
off/I
13/C
%/N
from/I
$/$
13.8/C
billion/C
./.
###/###
Jeff/N
Rowe/N
contributed/V
to/T
this/D
article/N
./.
###/###
The/D
following/J
were/V
among/I
yesterday/N
's/P
offerings/N
and/C
pricings/N
in/I
the/D
U.S./N
and/C
non-U.S./J
capital/N
markets/N
,/,
with/I
terms/N
and/C
syndicate/N
manager/N
,/,
as/I
compiled/V
by/I
Dow/N
Jones/N
Capital/N
Markets/N
Report/N
:/:
###/###
Imo/N
Industries/N
Inc./N
--/:
$/$
150/C
million/C
of/I
senior/J
subordinated/J
debentures/N
due/J
2001/C
,/,
priced/V
at/I
par/N
to/T
yield/V
12/C
%/N
./.
###/###
The/D
issue/N
will/M
be/V
sold/V
through/I
Morgan/N
Stanley/N
&/C
Co/N
./.
###/###
Other/J
details/N
were/V
n't/R
available/J
./.
###/###
San/N
Antonio/N
,/,
Texas/N
--/:
$/$
575/C
million/C
of/I
electric/J
and/C
gas/N
system/N
revenue/N
refunding/J
bonds/N
,/,
Series/N
1989/N
,/,
1989A/N
and/C
1989B/N
,/,
tentatively/R
priced/V
by/I
a/D
First/N
Boston/N
Corp./N
group/N
to/T
yield/V
from/I
6.15/C
%/N
in/I
1991/C
to/T
7.30/C
%/N
in/I
2009/C
./.
###/###
The/D
issue/N
includes/V
current/J
interest/N
bonds/N
due/J
1991-2000/C
,/,
2009/C
,/,
2012/C
,/,
2014/C
and/C
2016/C
,/,
and/C
capital/N
appreciation/N
bonds/N
due/J
2001-2005/C
./.
###/###
The/D
current/J
interest/N
serial/N
bonds/N
are/V
priced/V
to/T
yield/V
from/I
6.15/C
%/N
in/I
1991/C
to/T
7.10/C
%/N
in/I
2000/C
./.
###/###
There/E
are/V
about/R
$/$
100/C
million/C
of/I
7/C
%/N
term/N
bonds/N
due/J
2009/C
,/,
priced/V
to/T
yield/V
7.30/C
%/N
,/,
which/W
is/V
the/D
issue/N
's/P
high/J
yield/N
./.
###/###
There/E
are/V
also/R
about/R
$/$
124/C
million/C
of/I
6/C
%/N
bonds/N
priced/V
to/T
yield/V
7.25/C
%/N
in/I
2012/C
;/:
about/R
$/$
97/C
million/C
of/I
6/C
%/N
bonds/N
priced/V
to/T
yield/V
7.20/C
%/N
in/I
2014/C
;/:
and/C
about/R
$/$
26.5/C
million/C
of/I
5/C
%/N
bonds/N
priced/V
to/T
yield/V
7.15/C
%/N
in/I
2016/C
./.
###/###
All/D
of/I
the/D
term/N
bonds/N
are/V
original/J
issue/N
discount/N
bonds/N
,/,
according/V
to/T
the/D
lead/J
underwriter/N
./.
###/###
The/D
capital/N
appreciation/N
bonds/N
are/V
tentatively/R
priced/V
to/T
yield/V
to/T
maturity/N
from/I
7/C
%/N
in/I
2001/C
to/T
7.10/C
%/N
in/I
2003-2005/C
./.
###/###
The/D
bonds/N
are/V
rated/V
double-A/J
by/I
Moody/N
's/P
Investors/N
Service/N
Inc./N
and/C
Standard/N
&/C
Poor/N
's/P
Corp/N
./.
###/###
Maryland/N
Stadium/N
Authority/N
--/:
$/$
137.6/C
million/C
of/I
sports/N
facilities/N
lease/N
revenue/N
bonds/N
,/,
Series/N
1989/N
D/N
,/,
due/J
1992-1999/C
,/,
2004/C
,/,
2009/C
and/C
2019/C
,/,
tentatively/R
priced/V
at/I
par/N
by/I
a/D
Morgan/N
Stanley/N
group/N
to/T
yield/V
from/I
6.35/C
%/N
in/I
1992/C
to/T
7.60/C
%/N
in/I
2019/C
./.
###/###
Serial/J
bonds/N
are/V
priced/V
to/T
yield/V
to/T
7.10/C
%/N
in/I
1999/C
./.
###/###
There/E
are/V
$/$
15,845,000/C
of/I
7/C
%/N
bonds/N
priced/V
at/I
par/N
and/C
due/J
2004/C
;/:
$/$
22,985,000/C
of/I
7/C
%/N
bonds/N
priced/V
at/I
par/N
and/C
due/J
2009/C
;/:
and/C
$/$
82.6/C
million/C
of/I
7.60/C
%/N
bonds/N
priced/V
at/I
par/N
and/C
due/J
2019/C
./.
###/###
The/D
bonds/N
are/V
rated/V
double-A/J
by/I
Moody/N
's/P
and/C
double-A-minus/J
by/I
S&P/N
./.
###/###
Interest/N
on/I
the/D
bonds/N
will/M
be/V
treated/V
as/I
a/D
preference/N
item/N
in/I
calculating/V
the/D
federal/J
alternative/J
minimum/J
tax/N
that/W
may/M
be/V
imposed/V
on/I
certain/J
investors/N
./.
###/###
Federal/N
Home/N
Loan/N
Mortgage/N
Corp./N
--/:
$/$
250/C
million/C
of/I
Remic/N
mortgage/N
securities/N
being/V
offered/V
in/I
11/C
classes/N
by/I
Morgan/N
Stanley/N
./.
###/###
The/D
offering/N
,/,
Series/N
107/N
,/,
is/V
backed/V
by/I
Freddie/N
Mac/N
15-year/J
,/,
9/C
%/N
securities/N
,/,
and/C
brings/V
Freddie/N
Mac/N
's/P
1989/C
Remic/N
issuance/N
to/T
$/$
32.8/C
billion/C
and/C
its/P
total/J
volume/N
to/T
$/$
46.8/C
billion/C
since/I
the/D
program/N
began/V
in/I
February/N
1988/C
./.
###/###
The/D
offering/N
used/V
at-market/J
pricing/N
./.
###/###
Federal/N
National/N
Mortgage/N
Association/N
--/:
$/$
500/C
million/C
of/I
Remic/N
mortgage/N
securities/N
being/V
offered/V
in/I
10/C
classes/N
by/I
Merrill/N
Lynch/N
Capital/N
Markets/N
./.
###/###
The/D
offering/N
,/,
Series/N
1989-85/C
,/,
is/V
backed/V
by/I
Fannie/N
Mae/N
9/C
%/N
securities/N
./.
###/###
Separately/R
,/,
a/D
$/$
400/C
million/C
issue/N
of/I
Fannie/N
Mae/N
Remic/N
mortgage/N
securities/N
is/V
being/V
offered/V
in/I
15/C
classes/N
by/I
Bear/N
,/,
Stearns/N
&/C
Co/N
./.
###/###
The/D
offering/N
,/,
Series/N
1989-86/C
,/,
is/V
backed/V
by/I
Fannie/N
Mae/N
9/C
%/N
securities/N
./.
###/###
Finally/R
,/,
a/D
$/$
300/C
million/C
issue/N
of/I
Fannie/N
Mae/N
Remic/N
mortgage/N
securities/N
is/V
being/V
offered/V
in/I
12/C
classes/N
by/I
Smith/N
Barney/N
,/,
Harris/N
Upham/N
&/C
Co/N
./.
###/###
The/D
offering/N
,/,
Series/N
1989-87/C
,/,
is/V
backed/V
by/I
Fannie/N
Mae/N
9/C
%/N
securities/N
./.
###/###
The/D
three/C
offerings/N
together/R
bring/V
Fannie/N
Mae/N
's/P
1989/C
Remic/N
issuance/N
to/T
$/$
32.4/C
billion/C
and/C
its/P
total/J
Remic/N
volume/N
to/T
$/$
44.5/C
billion/C
since/I
the/D
program/N
began/V
in/I
April/N
1987/C
./.
###/###
Credit/N
Agricole/N
-LRB-/-
CNCA/N
-RRB-/-
-LRB-/-
French/N
-RRB-/-
--/:
$/$
250/C
million/C
of/I
8/C
%/N
bonds/N
due/J
Nov./N
21/C
,/,
1994/C
,/,
priced/V
at/I
101.80/C
to/T
yield/V
8.77/C
%/N
annually/R
less/C
full/J
fees/N
,/,
via/I
IBJ/N
International/N
Ltd/N
./.
###/###
Fees/N
1/C
./.
###/###
Hokuriku/N
Electric/N
Power/N
Co/N
./.
-LRB-/-
Japan/N
-RRB-/-
--/:
$/$
200/C
million/C
of/I
8/C
%/N
bonds/N
due/J
Nov./N
20/C
,/,
1996/C
,/,
priced/V
at/I
101/C
to/T
yield/V
8.90/C
%/N
less/C
full/J
fees/N
,/,
via/I
Yamaichi/N
International/N
-LRB-/-
Europe/N
-RRB-/-
Ltd/N
./.
###/###
Fees/N
1/C
./.
###/###
International/N
Finance/N
Corp/N
./.
-LRB-/-
agency/N
-RRB-/-
--/:
10/C
billion/C
pesetas/N
of/I
11.6/C
%/N
bonds/N
due/J
Nov./N
30/C
,/,
1994/C
,/,
priced/V
at/I
101/C
to/T
yield/V
11.60/C
%/N
less/C
full/J
fees/N
,/,
via/I
Citibank/N
-LRB-/-
Madrid/N
-RRB-/-
and/C
Banco/N
Espanol/N
de/N
Credito/N
,/,
Spain/N
./.
###/###
Fees/N
1/C
./.
###/###
Royal/N
Bank/N
of/I
Canada/N
,/,
Grand/N
Cayman/N
branch/N
-LRB-/-
Canada/N
-RRB-/-
--/:
100/C
million/C
Canadian/J
dollars/N
of/I
10/C
%/N
deposit/N
notes/N
due/J
Nov./N
30/C
,/,
1994/C
,/,
priced/V
at/I
101/C
to/T
yield/V
10.78/C
%/N
less/C
full/J
fees/N
,/,
via/I
RBC/N
Dominion/N
Securities/N
International/N
Ltd/N
./.
###/###
Fees/N
1/C
./.
###/###
Union/N
Bank/N
of/I
Finland/N
--/:
100/C
million/C
Australian/J
dollars/N
of/I
9/C
%/N
bonds/N
due/J
Nov./N
9/C
,/,
1990/C
,/,
priced/V
at/I
94/C
to/T
yield/V
17.20/C
%/N
less/C
full/J
fees/N
,/,
via/I
Banque/N
Paribas/N
Capital/N
Markets/N
Ltd/N
./.
###/###
Fees/N
1/C
./.
###/###
Ford/N
Motor/N
Credit/N
--/:
$/$
2.57/C
billion/C
of/I
certificates/N
backed/V
by/I
automobile/N
loans/N
with/I
a/D
coupon/N
rate/N
of/I
8.70/C
%/N
,/,
priced/V
at/I
99/C
to/T
yield/V
8.903/C
%/N
through/I
an/D
underwriting/N
group/N
headed/V
by/I
First/N
Boston/N
Corp/N
./.
###/###
The/D
issue/N
is/V
the/D
first/J
by/I
Ford/N
Motor/N
Credit/N
,/,
a/D
unit/N
of/I
Ford/N
Motor/N
Co./N
,/,
and/C
the/D
second/J
largest/J
in/I
the/D
four-year/J
history/N
of/I
the/D
$/$
45/C
billion/C
asset-backed/J
market/N
./.
###/###
The/D
largest/J
issue/N
was/V
a/D
$/$
4/C
billion/C
offering/N
of/I
auto-loan/J
securities/N
by/I
General/N
Motors/N
Acceptance/N
Corp./N
in/I
1986/C
./.
###/###
The/D
Ford/N
issue/N
,/,
through/I
Ford/N
Credit/N
1989-A/N
Grantor/N
Trust/N
,/,
was/V
priced/V
at/I
a/D
yield/N
spread/N
of/I
95/C
basis/N
points/N
above/I
the/D
Treasury/N
7/C
%/N
issue/N
due/J
July/N
1991/C
./.
###/###
The/D
offering/N
is/V
rated/V
doubleA-2/J
by/I
Moody/N
's/P
and/C
double-A/J
by/I
S&P/N
,/,
based/V
on/I
the/D
quality/N
of/I
the/D
underlying/J
auto/N
loans/N
and/C
a/D
guarantee/N
covering/V
9/C
%/N
of/I
the/D
deal/N
from/I
Ford/N
Motor/N
Credit/N
./.
###/###
The/D
certificates/N
have/V
an/D
estimated/J
average/J
life/N
of/I
1.8/C
years/N
,/,
assuming/V
monthly/J
prepayments/N
at/I
1.3/C
%/N
of/I
the/D
original/J
balance/N
./.
###/###
The/D
final/J
maturity/N
is/V
in/I
five/C
years/N
./.
###/###
The/D
Mouth/N
is/V
back/R
./.
###/###
Morton/N
Downey/N
Jr./N
,/,
who/W
self-destructed/V
as/I
a/D
talk-show/N
host/N
and/C
frequently/R
verbally/R
abused/V
his/P
guests/N
,/,
has/V
been/V
signed/V
to/T
co-host/V
a/D
half-hour/J
nightly/J
program/N
on/I
the/D
Consumer/N
News/N
and/C
Business/N
Channel/N
,/,
the/D
cable/N
channel/N
partly/R
owned/V
by/I
the/D
General/N
Electric/N
Co./N
's/P
National/N
Broadcasting/N
Co/N
./.
###/###
The/D
premiere/N
of/I
``/`
Showdown/N
,/,
''/'
with/I
Mr./N
Downey/N
and/C
Richard/N
G./N
Carter/N
,/,
a/D
columnist/N
with/I
the/D
New/N
York/N
Daily/N
News/N
,/,
is/V
scheduled/V
for/I
Dec./N
4/C
at/I
8/C
p.m/R
./.
###/###
CNBC/N
is/V
available/J
to/T
13/C
million/C
cable/N
households/N
./.
###/###
Mr./N
Downey/N
said/V
he/P
is/V
not/R
going/V
to/T
change/V
his/P
style/N
,/,
which/W
some/D
critics/N
said/V
was/V
flamboyant/J
and/C
others/N
deemed/V
offensive/J
./.
###/###
But/C
I/P
'm/V
going/V
to/T
proceed/V
in/I
a/D
more/R
logical/J
way/N
./.
###/###
I/P
'm/V
not/R
going/V
to/T
do/V
anything/N
that/W
is/V
not/R
acceptable/J
in/I
anyone/N
's/P
home/N
./.
###/###
But/C
that/D
does/V
n't/R
mean/V
I/P
'm/V
not/R
going/V
to/T
get/V
angry/J
./.
''/'
###/###
Michael/N
Eskridge/N
,/,
president/N
of/I
CNBC/N
,/,
said/V
that/I
although/I
there/E
will/M
be/V
a/D
studio/N
audience/N
,/,
viewers/N
will/M
no/R
longer/R
have/V
to/T
endure/V
the/D
shouting/N
of/I
``/`
Mort/N
Mort/N
Mort/N
''/'
But/C
just/R
how/W
does/V
Mr./N
Downey/N
's/P
unorthodox/J
style/N
mesh/V
with/I
the/D
sedate/J
tone/N
of/I
CNBC/N
's/P
business/N
programming/N
?/.
###/###
``/`
Ninety/C
percent/N
of/I
Mort/N
's/P
old/J
show/N
fits/V
into/I
our/P
style/N
,/,
''/'
said/V
Mr./N
Eskridge/N
./.
###/###
That/D
is/V
consumer/N
issues/N
./.
''/'
###/###
Mr./N
Downey/N
's/P
previous/J
show/N
,/,
a/D
one-hour/J
shout/N
fest/J
,/,
syndciated/V
by/I
MCA/N
Inc./N
and/C
produced/V
by/I
Quantum/N
Media/N
Inc./N
,/,
was/V
canceled/V
in/I
July/N
after/I
advertisers/N
and/C
stations/N
abandoned/V
it/P
./.
###/###
Investors/N
dumped/V
stocks/N
of/I
big/J
companies/N
whose/W
earnings/N
fluctuate/V
with/I
the/D
economy/N
./.
###/###
Many/J
of/I
those/D
``/`
cyclical/J
''/'
issues/N
are/V
in/I
the/D
Dow/N
Jones/N
Industrial/N
Average/N
,/,
which/W
fell/V
26.23/C
to/T
2662.91/C
./.
###/###
Declining/V
issues/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
outpaced/V
advancers/N
,/,
1,012/C
to/T
501/C
./.
###/###
Recession/N
fears/N
are/V
springing/V
up/R
again/R
among/I
investors/N
./.
###/###
Analysts/N
say/V
that/I
the/D
selling/N
of/I
cyclical/J
stocks/N
yesterday/N
will/M
be/V
followed/V
by/I
a/D
sell-off/N
in/I
shares/N
of/I
companies/N
with/I
big/J
debt/N
loads/N
on/I
their/P
balance/N
sheets/N
./.
###/###
In/I
an/D
economic/J
slowdown/N
,/,
heavy/J
debt/N
loads/N
reduce/V
the/D
flexibility/N
of/I
companies/N
because/I
cash/N
that/W
would/M
normally/R
be/V
used/V
to/T
keep/V
the/D
company/N
buoyant/J
must/M
be/V
diverted/V
to/T
interest/N
payments/N
./.
###/###
On/I
the/D
other/J
hand/N
,/,
investors/N
beat/V
a/D
clear/J
path/N
yesterday/N
to/T
blue-chip/J
issues/N
with/I
proven/J
earnings/N
growth/N
records/N
./.
###/###
Among/I
the/D
30/C
Dow/N
industrials/N
,/,
they/P
bought/V
McDonald/N
's/P
,/,
Coca-Cola/N
Co./N
and/C
Procter/N
&/C
Gamble/N
and/C
sold/V
Aluminum/N
Co./N
of/I
America/N
./.
###/###
In/I
another/D
sign/N
of/I
slowdown/N
fears/N
,/,
investors/N
dumped/V
technology/N
shares/N
./.
###/###
Many/J
money/N
managers/N
are/V
bracing/V
for/I
a/D
decline/N
in/I
stocks/N
of/I
companies/N
with/I
big/J
debt/N
loads/N
on/I
their/P
balance/N
sheets/N
./.
###/###
``/`
The/D
junk/N
bond/N
market/N
is/V
being/V
taken/V
apart/R
''/'
because/I
of/I
recession/N
fears/N
,/,
said/V
J./N
David/N
Mills/N
,/,
senior/J
vice/N
president/N
at/I
Boston/N
Company/N
Advisers/N
./.
###/###
Under/I
this/D
scrutiny/N
,/,
the/D
first/J
thing/N
you/P
do/V
is/V
sell/V
your/P
cyclical/J
stocks/N
and/C
the/D
second/J
thing/N
you/P
do/V
is/V
sell/V
your/P
over-leveraged/J
companies/N
./.
''/'
###/###
In/I
fact/N
,/,
much/J
of/I
the/D
buying/N
in/I
blue/J
chips/N
yesterday/N
was/V
a/D
pursuit/N
of/I
companies/N
with/I
lower/J
debt/N
levels/N
./.
###/###
In/I
a/D
recent/J
investment/N
letter/N
entitled/V
``/`
Winners/N
of/I
the/D
`/`
Leverage/N
Wars/N
,/,
'/'
``/`
Edward/N
Kerschner/N
,/,
chairman/N
of/I
PaineWebber/N
's/P
investment/N
policy/N
committee/N
,/,
suggested/V
that/I
investors/N
buy/V
stocks/N
of/I
companies/N
that/W
have/V
avoided/V
loading/V
up/R
on/I
debt/N
./.
###/###
``/`
We/P
're/V
saying/V
companies/N
have/V
to/T
pay/V
increasing/J
attention/N
to/T
balance/N
sheets/N
,/,
''/'
said/V
Mr./N
Kerschner/N
./.
###/###
He/P
suggested/V
that/I
investors/N
buy/V
the/D
shares/N
of/I
Great/J
Atlantic/N
&/C
Pacific/N
Tea/N
,/,
J./N
Baker/N
,/,
McDonald/N
's/P
,/,
Philip/N
Morris/N
and/C
Sara/N
Lee/N
./.
###/###
He/P
said/V
that/I
all/D
of/I
these/D
companies/N
will/M
be/V
able/J
to/T
compete/V
fiercely/R
in/I
an/D
economic/J
downturn/N
./.
###/###
McDonald/N
's/P
has/V
long-term/J
debt/N
equaling/V
91/C
%/N
of/I
shareholder/N
equity/N
currently/R
,/,
but/C
Mr./N
Kerschner/N
said/V
the/D
company/N
is/V
carrying/V
real/J
estate/N
assets/N
at/I
about/R
$/$
2.6/C
billion/C
below/I
their/P
real/J
value/N
./.
###/###
Coca-Cola/N
climbed/V
1/C
to/T
72/C
1/C
to/T
31/C
,/,
and/C
Procter/N
&/C
Gamble/N
gained/V
to/T
130/C
./.
###/###
A&P/N
fell/V
1/C
to/T
57/C
,/,
and/C
J./N
Baker/N
gained/V
to/T
21/C
./.
###/###
Philip/N
Morris/N
slipped/V
to/T
43/C
,/,
while/I
Sara/N
Lee/N
closed/V
unchanged/J
at/I
60/C
./.
###/###
According/V
to/T
Salomon/N
Brothers/N
'/P
``/`
stub/N
''/'
stock/N
index/N
of/I
20/C
companies/N
whose/W
debt/N
is/V
giant/N
compared/V
with/I
shareholder/N
equity/N
,/,
investors/N
are/V
already/R
beginning/V
to/T
retreat/V
from/I
shares/N
of/I
debt-laden/J
companies/N
./.
###/###
From/I
January/N
to/T
early/J
September/N
,/,
the/D
index/N
of/I
stub/N
stocks/N
--/:
the/D
tiny/J
portion/N
of/I
equity/N
that/W
's/V
publicly/R
traded/V
following/V
a/D
recapitalization/N
--/:
outperformed/V
Standard/N
&/C
Poor/N
's/P
500-stock/J
index/N
by/I
about/R
20/C
%/N
./.
###/###
But/C
starting/V
in/I
early/J
September/N
,/,
the/D
index/N
started/V
to/T
slide/V
and/C
now/R
stands/V
about/R
even/R
with/I
the/D
S&P/N
500/C
./.
###/###
``/`
Stocks/N
that/W
have/V
a/D
high/J
default/N
risk/N
have/V
started/V
to/T
underperform/V
those/D
stocks/N
that/W
have/V
a/D
lower/J
default/N
risk/N
,/,
''/'
said/V
Eric/N
Sorenson/N
,/,
director/N
of/I
quantitative/J
analysis/N
at/I
Salomon/N
Brothers/N
./.
###/###
``/`
Companies/N
that/W
have/V
the/D
most/J
exposure/N
to/T
the/D
business/N
cycle/N
have/V
underperformed/V
since/I
late/R
last/J
summer/N
./.
''/'
###/###
Union/N
Carbide/N
,/,
whose/W
third-quarter/J
earnings/N
dropped/V
about/R
35/C
%/N
from/I
a/D
year/N
earlier/R
and/C
fell/V
short/R
of/I
analysts/N
'/P
expectations/N
,/,
declined/V
to/T
24/C
./.
###/###
Also/R
,/,
Exxon/N
went/V
down/R
to/T
45/C
and/C
Allied-Signal/N
lost/V
to/T
35/C
even/R
though/I
the/D
companies/N
'/P
results/N
for/I
the/D
quarter/N
were/V
in/I
line/N
with/I
forecasts/N
./.
###/###
Other/J
weak/J
blue-chip/J
issues/N
included/V
Chevron/N
,/,
which/W
went/V
down/R
2/C
to/T
64/C
in/I
Big/N
Board/N
composite/J
trading/N
of/I
1.3/C
million/C
shares/N
;/:
Goodyear/N
Tire/N
&/C
Rubber/N
,/,
off/R
1/C
to/T
46/C
,/,
and/C
American/N
Express/N
,/,
down/R
to/T
37/C
./.
###/###
Texas/N
Instruments/N
,/,
which/W
had/V
reported/V
Friday/N
that/I
third-quarter/J
earnings/N
fell/V
more/R
than/I
30/C
%/N
from/I
the/D
year-ago/J
level/N
,/,
went/V
down/R
2/C
to/T
33/C
on/I
1.1/C
million/C
shares/N
./.
###/###
Motorola/N
,/,
another/D
major/J
semiconductor/N
producer/N
,/,
dropped/V
1/C
to/T
57/C
./.
###/###
Pinnacle/N
West/N
Capital/N
,/,
whose/W
earnings/N
have/V
been/V
hurt/V
by/I
continued/J
problems/N
at/I
its/P
MeraBank/N
unit/N
,/,
fell/V
1/C
to/T
9/C
on/I
2.1/C
million/C
shares/N
to/T
lead/V
the/D
Big/N
Board/N
's/P
list/N
of/I
most/R
active/J
issues/N
./.
###/###
Growing/V
pressures/N
on/I
the/D
Arizona/N
real-estate/N
market/N
are/V
affecting/V
the/D
thrift/N
;/:
Pinnacle/N
West/N
told/V
Dow/N
Jones/N
Professional/N
Investor/N
Report/N
it/P
may/M
consider/V
filing/V
for/I
Chapter/N
11/N
bankruptcy/N
protection/N
if/I
it/P
ca/M
n't/R
reach/V
an/D
agreement/N
with/I
federal/J
regulators/N
to/T
provide/V
additional/J
capital/N
to/T
MeraBank/N
./.
###/###
Hercules/N
dropped/V
2/C
to/T
41/C
on/I
one/C
million/C
shares/N
--/:
about/R
six/C
times/N
its/P
average/N
daily/J
trading/N
volume/N
--/:
after/I
a/D
disappointing/J
third-quarter/J
earnings/N
report/N
./.
###/###
Merrill/N
Lynch/N
and/C
Prudential-Bache/N
Securities/N
both/D
lowered/V
the/D
stock/N
's/P
investment/N
rating/N
immediately/R
after/I
the/D
results/N
were/V
issued/V
Friday/N
,/,
according/V
to/T
PIR/N
./.
###/###
Elsewhere/R
in/I
the/D
chemicals/N
sector/N
,/,
Dow/N
Chemical/N
fell/V
1/C
to/T
97/C
1/C
,/,
to/T
1/C
to/T
./.
###/###
Other/J
stocks/N
hurt/V
by/I
earnings-related/J
selling/N
included/V
Tandy/N
,/,
which/W
dropped/V
1/C
to/T
44/C
,/,
and/C
Eaton/N
,/,
which/W
retreated/V
2/C
to/T
57/C
./.
###/###
Third-quarter/J
earnings/N
at/I
both/D
companies/N
were/V
below/I
analysts/N
'/P
forecasts/N
./.
###/###
After/I
declining/V
about/R
41/C
%/N
last/J
week/N
,/,
UAL/N
advanced/V
9/C
to/T
178/C
on/I
1.1/C
million/C
shares/N
on/I
anticipation/N
of/I
a/D
revised/J
takeover/N
offer/N
from/I
a/D
labor-management/N
group/N
for/I
the/D
parent/J
company/N
of/I
United/N
Airlines/N
./.
###/###
However/R
,/,
Delta/N
Air/N
Lines/N
fell/V
1/C
to/T
67/C
and/C
USAir/N
Group/N
dropped/V
to/T
42/C
./.
###/###
Ramada/N
gained/V
to/T
11/C
after/I
revamping/V
the/D
terms/N
of/I
its/P
restructuring/V
plan/N
,/,
which/W
calls/V
for/I
the/D
company/N
to/T
sell/V
its/P
hotel/N
operations/N
for/I
$/$
540/C
million/C
and/C
spin/V
off/R
its/P
casino/N
business/N
to/T
shareholders/N
./.
###/###
The/D
revision/N
follows/V
last/J
month/N
's/P
withdrawal/N
of/I
a/D
$/$
400/C
million/C
junk-bond/N
offering/N
for/I
the/D
new/J
casino/N
company/N
,/,
Aztar/N
Corp/N
./.
###/###
Mead/N
gained/V
1/C
to/T
37/C
./.
###/###
USA/N
Today/N
reported/V
that/I
the/D
Rales/N
brothers/N
,/,
Washington/N
,/,
D.C.-based/J
investors/N
who/W
made/V
an/D
unsuccessful/J
offer/N
to/T
acquire/V
Interco/N
last/J
year/N
,/,
have/V
bought/V
nearly/R
3/C
%/N
of/I
Mead/N
's/P
common/J
shares/N
./.
###/###
Entertainment/N
and/C
media/N
stocks/N
generally/R
escaped/V
the/D
market/N
's/P
slide/N
as/R
well/R
./.
###/###
Paramount/N
Communications/N
rose/V
to/T
58/C
,/,
Time/N
Warner/N
climbed/V
1/C
to/T
138/C
,/,
Walt/N
Disney/N
advanced/V
3/C
to/T
127/C
1/C
to/T
65/C
and/C
McGraw-Hill/N
added/V
to/T
67/C
./.
###/###
The/D
American/N
Stock/N
Exchange/N
Market/N
Value/N
Index/N
lost/V
3.11/C
to/T
379.46/C
./.
###/###
Volume/N
totaled/V
10,450,000/C
shares/N
./.
###/###
Carnival/N
Cruise/N
Lines/N
Class/N
A/N
fell/V
1/C
to/T
20/C
./.
###/###
The/D
company/N
said/V
it/P
had/V
been/V
notified/V
unofficially/R
that/I
Waertsilae/N
Marine/N
Industries/N
,/,
a/D
Finnish/J
shipyard/N
building/V
three/C
cruise/N
ships/N
for/I
the/D
company/N
,/,
is/V
having/V
financial/J
trouble/N
and/C
may/M
already/R
have/V
filed/V
for/I
bankruptcy/N
./.
###/###
``/`
Hacksaw/N
''/'
and/C
``/`
Bonecrusher/N
''/'
are/V
the/D
sort/N
of/I
nicknames/N
normally/R
associated/V
with/I
linebackers/N
and/C
heavyweight/J
contenders/N
./.
###/###
Who/W
'd/M
have/V
thought/V
that/I
the/D
next/J
group/N
of/I
tough/J
guys/N
carrying/V
around/I
reputations/N
like/I
that/D
would/M
be/V
school/N
superintendents/N
?/.
###/###
Chicago/N
's/P
new/J
school/N
chief/N
is/V
the/D
hard-nosed/J
Ted/N
Kimbrough/N
./.
###/###
At/I
his/P
old/J
job/N
in/I
Compton/N
,/,
Calif./N
,/,
he/P
took/V
a/D
bitter/J
teachers/N
'/P
strike/N
and/C
nearly/R
came/V
to/T
blows/N
with/I
a/D
school-board/N
member/N
./.
###/###
At/I
his/P
first/J
Chicago/N
press/N
conference/N
,/,
he/P
berated/V
the/D
reporters/N
./.
###/###
In/I
New/N
York/N
City/N
,/,
the/D
new/J
Chancellor/N
,/,
Joseph/N
Fernandez/N
,/,
has/V
landed/V
like/I
a/D
16-inch/J
shell/N
in/I
the/D
middle/N
of/I
a/D
system/N
that/W
has/V
been/V
impervious/J
to/T
serious/J
reform/N
./.
###/###
Both/D
men/N
fit/V
the/D
mood/N
of/I
the/D
times/N
--/:
the/D
mood/N
being/V
one/C
of/I
a/D
public/N
fed/V
up/R
with/I
officials/N
'/P
rationalizations/N
for/I
why/W
their/P
schools/N
do/V
n't/R
work/V
./.
###/###
Former/N
Patterson/N
,/,
N.J./N
,/,
principal/N
Joe/N
Clark/N
was/V
no/D
doubt/N
the/D
general/J
public/N
's/P
first/J
experience/N
with/I
this/D
new/J
breed/N
of/I
no-nonsense/J
administrator/N
./.
###/###
The/D
subject/N
of/I
the/D
movie/N
``/`
Lean/V
on/I
Me/P
,/,
''/'
Mr./N
Clark/N
controlled/V
his/P
school/N
with/I
a/D
bullhorn/N
and/C
a/D
baseball/N
bat/N
./.
###/###
He/P
may/M
have/V
gone/V
overboard/R
in/I
his/P
pursuit/N
of/I
good/J
discipline/N
,/,
but/C
is/V
n't/R
it/P
interesting/J
that/I
some/D
of/I
the/D
country/N
's/P
biggest/J
,/,
most/R
troubled/J
school/N
districts/N
are/V
choosing/V
new/J
chiefs/N
from/I
the/D
same/J
gravel-chewing/J
mold/N
?/.
###/###
Elena/N
Scambio/N
,/,
the/D
woman/N
assigned/V
to/T
run/V
the/D
Jersey/N
City/N
school/N
system/N
that/W
was/V
taken/V
over/R
by/I
the/D
state/N
,/,
says/V
her/P
top/J
priority/N
will/M
be/V
to/T
``/`
cut/V
through/I
the/D
dead/J
hand/N
of/I
bureaucracy/N
./.
''/'
###/###
Mr./N
Fernandez/N
does/V
n't/R
take/V
control/N
in/I
New/N
York/N
until/I
January/N
,/,
but/C
already/R
he/P
's/V
roiling/V
the/D
waters/N
./.
###/###
He/P
's/V
attacked/V
the/D
concept/N
of/I
``/`
building/N
tenure/N
,/,
''/'
one/C
of/I
the/D
most/R
disgraceful/J
institutions/N
in/I
American/J
public/J
schools/N
./.
###/###
It/P
means/V
it/P
is/V
virtually/R
impossible/J
to/T
fire/V
or/C
even/R
transfer/V
incompetent/J
principals/N
./.
###/###
Once/R
they/P
are/V
in/I
the/D
building/N
,/,
they/P
stay/V
./.
###/###
One/C
South/N
Bronx/N
principal/N
kept/V
his/P
job/N
for/I
16/C
years/N
,/,
despite/I
a/D
serious/J
drinking/N
problem/N
and/C
rarely/R
showing/V
up/R
for/I
work/N
./.
###/###
He/P
was/V
finally/R
given/V
leave/N
when/W
he/P
was/V
arrested/V
for/I
allegedly/R
buying/V
crack/N
./.
###/###
Naturally/R
,/,
the/D
principals/N
'/P
union/N
loves/V
building/N
tenure/N
,/,
and/C
tenure/N
has/V
withstood/V
previous/J
challenge/N
./.
###/###
We/P
suggest/V
that/I
Mr./N
Fernandez/N
find/V
an/D
incompetent/J
principal/N
,/,
toss/V
him/P
out/I
of/I
the/D
building/N
and/C
let/V
the/D
forces/N
of/I
the/D
status/N
quo/N
explain/V
to/T
the/D
parents/N
whatever/W
it/P
is/V
they/P
're/V
defending/V
./.
###/###
In/I
his/P
old/J
job/N
,/,
as/I
Dade/N
County/N
chief/N
,/,
Mr./N
Fernandez/N
forced/V
out/R
92/C
teachers/N
and/C
reshuffled/V
48/C
principals/N
./.
###/###
He/P
cut/V
the/D
dropout/N
rate/N
by/I
5.5/C
%/N
./.
###/###
But/C
the/D
no-more-nonsense/J
superintendents/N
are/V
going/V
to/T
have/V
to/T
be/V
judicious/J
as/I
well/R
;/:
incompetent/J
principals/N
and/C
administrators/N
should/M
go/V
,/,
but/C
the/D
good/J
ones/N
ought/M
to/T
be/V
left/V
alone/R
./.
###/###
The/D
situation/N
will/M
be/V
especially/R
delicate/J
for/I
Mr./N
Kimbrough/N
./.
###/###
He/P
takes/V
over/R
a/D
school/N
system/N
in/I
the/D
midst/N
of/I
radical/J
reform/N
./.
###/###
Chicagoans/N
have/V
just/R
elected/V
540/C
neophyte/J
school/N
boards/N
,/,
one/C
for/I
each/D
school/N
./.
###/###
This/D
of/I
course/N
led/V
to/T
disaster/N
in/I
New/N
York/N
City/N
./.
###/###
Getting/V
a/D
community/N
of/I
parents/N
to/T
care/V
again/R
about/I
its/P
schools/N
is/V
essential/J
,/,
but/C
in/I
Chicago/N
the/D
new/J
boards/N
will/M
make/V
mistakes/N
and/C
Mr./N
Kimbrough/N
will/M
have/V
to/T
identify/V
them/P
./.
###/###
The/D
rise/N
of/I
superintendents/N
such/J
as/I
Joseph/N
Fernandez/N
and/C
Ted/N
Kimbrough/N
suggests/V
plainly/R
the/D
process/N
of/I
disintegration/N
in/I
many/J
school/N
systems/N
./.
###/###
The/D
schools/N
'/P
central/J
mission/N
,/,
educating/V
children/N
,/,
became/V
subsumed/V
by/I
the/D
competing/V
interests/N
of/I
bureaucrats/N
,/,
politicians/N
and/C
unions/N
./.
###/###
The/D
classroom/N
itself/P
operated/V
on/I
the/D
periphery/N
of/I
this/D
awful/J
system/N
,/,
discipline/N
collapsed/V
,/,
and/C
kids/N
stopped/V
learning/V
./.
###/###
Mr./N
Chips/N
was/V
a/D
nice/J
fellow/N
,/,
and/C
maybe/R
some/D
day/N
he/P
'll/M
return/V
./.
###/###
Until/I
then/R
,/,
it/P
's/V
clear/J
that/I
some/D
of/I
the/D
people/N
who/W
've/V
been/V
keeping/V
big-city/J
schools/N
down/I
are/V
going/V
to/T
be/V
dealing/V
with/I
the/D
Terminator/N
./.
###/###
Ingersoll/N
Publications/N
Co./N
agreed/V
to/T
buy/V
the/D
New/N
Haven/N
Register/N
in/I
a/D
transaction/N
valued/V
at/I
$/$
275/C
million/C
from/I
Goodson/N
Newspaper/N
Group/N
Inc/N
./.
###/###
As/I
part/N
of/I
the/D
agreement/N
,/,
Goodson/N
also/R
terminated/V
the/D
contract/N
under/I
which/W
Ingersoll/N
manages/V
Goodson/N
's/P
66/C
newspapers/N
,/,
ending/V
a/D
long/J
association/N
between/I
the/D
two/C
companies/N
that/W
has/V
turned/V
increasingly/R
bitter/J
recently/R
./.
###/###
Goodson/N
has/V
accused/V
Ingersoll/N
of/I
paying/V
less/J
attention/N
to/T
its/P
properties/N
and/C
more/J
to/T
such/J
ventures/N
as/I
the/D
recent/J
launch/N
of/I
the/D
St./N
Louis/N
Sun/N
./.
###/###
Under/I
the/D
terms/N
of/I
the/D
accord/N
,/,
Ingersoll/N
will/M
pay/V
about/R
$/$
255/C
million/C
for/I
the/D
Register/N
,/,
a/D
daily/N
that/I
Goodson/N
bought/V
for/I
about/R
$/$
170/C
million/C
in/I
1986/C
./.
###/###
Goodson/N
will/M
pay/V
the/D
additional/J
$/$
20/C
million/C
in/I
settlement/N
of/I
the/D
management/N
contract/N
./.
###/###
Goodson/N
also/R
announced/V
that/I
it/P
hired/V
the/D
former/J
president/N
and/C
senior/J
vice/N
president/N
of/I
Ingersoll/N
to/T
run/V
the/D
Goodson/N
papers/N
./.
###/###
Both/D
executives/N
left/V
the/D
company/N
after/I
clashes/N
with/I
Chairman/N
Ralph/N
Ingersoll/N
Jr/N
./.
###/###
Goodson/N
,/,
which/W
is/V
based/V
here/R
,/,
will/M
use/V
part/N
of/I
the/D
proceeds/N
to/T
pay/V
down/R
debt/N
associated/V
with/I
its/P
purchase/N
of/I
the/D
Morristown/N
Daily/N
Record/N
for/I
$/$
155/C
million/C
in/I
1987/C
./.
###/###
The/D
New/N
Jersey/N
paper/N
,/,
like/I
the/D
New/N
Haven/N
,/,
Conn./N
,/,
paper/N
,/,
was/V
purchased/V
by/I
Ingersoll/N
on/I
Goodson/N
's/P
behalf/N
as/I
part/N
of/I
the/D
management/N
contract/N
./.
###/###
Industry/N
analysts/N
have/V
said/V
that/I
the/D
purchase/N
price/N
for/I
the/D
paper/N
was/V
too/R
high/J
,/,
causing/V
a/D
strain/N
on/I
Goodson/N
's/P
finances/N
./.
###/###
Investment/N
bankers/N
familiar/J
with/I
the/D
company/N
said/V
Goodson/N
is/V
seeking/V
a/D
new/J
bank/N
credit/N
line/N
of/I
$/$
190/C
million/C
and/C
may/M
have/V
to/T
sell/V
additional/J
newspapers/N
./.
###/###
David/N
N./N
Hurwitz/N
,/,
president/N
and/C
chief/N
operating/N
officer/N
of/I
Goodson/N
,/,
said/V
in/I
a/D
telephone/N
interview/N
that/I
the/D
company/N
does/V
n't/R
currently/R
have/V
any/D
plans/N
to/T
sell/V
additional/J
newspapers/N
./.
###/###
Goodson/N
said/V
David/N
Carr/N
,/,
former/J
president/N
of/I
Ingersoll/N
Publications/N
,/,
and/C
Ray/N
Cockburn/N
,/,
former/J
senior/J
vice/N
president/N
,/,
would/M
head/V
the/D
new/J
in-house/J
management/N
team/N
at/I
Goodson/N
,/,
which/W
had/V
revenue/N
of/I
$/$
225/C
million/C
in/I
1988/C
./.
###/###
The/D
association/N
between/I
the/D
two/C
companies/N
stretches/V
back/R
thirty/C
years/N
to/T
a/D
friendship/N
between/I
television/N
producer/N
Mark/N
Goodson/N
and/C
Ingersoll/N
founder/N
Ralph/N
Ingersoll/N
./.
###/###
The/D
latter/N
's/P
son/N
,/,
Ralph/N
Ingersoll/N
Jr./N
,/,
took/V
over/I
the/D
company/N
and/C
has/V
been/V
managing/V
the/D
Goodson/N
properties/N
and/C
acting/V
as/I
an/D
agent/N
in/I
the/D
purchase/N
of/I
newspapers/N
for/I
Goodson/N
./.
###/###
But/C
in/I
recent/J
years/N
,/,
Mr./N
Ingersoll/N
began/V
focusing/V
more/R
on/I
expanding/V
his/P
own/J
newspaper/N
empire/N
in/I
partnership/N
with/I
investment/N
banking/N
firm/N
Warburg/N
,/,
Pincus/N
&/C
Co/N
./.
###/###
Ingersoll/N
has/V
28/C
dailies/N
and/C
200/C
other/J
non-daily/J
papers/N
in/I
the/D
U.S./N
and/C
Europe/N
./.
###/###
The/D
company/N
said/V
its/P
revenue/N
will/M
exceed/V
$/$
750/C
million/C
this/D
year/N
./.
###/###
Ingersoll/N
President/N
Robert/N
M./N
Jelenic/N
said/V
in/I
a/D
statement/N
that/I
the/D
company/N
is/V
``/`
delighted/J
by/I
the/D
conclusion/N
of/I
the/D
Goodson/N
relationship/N
''/'
and/C
will/M
be/V
able/J
to/T
``/`
concentrate/V
all/P
our/P
energies/N
''/'
on/I
Ingersoll/N
's/P
own/J
papers/N
./.
###/###
Mr./N
Goodson/N
,/,
in/I
his/P
own/J
statement/N
,/,
was/V
less/R
upbeat/J
,/,
saying/V
``/`
unfortunately/R
over/I
the/D
past/J
few/J
years/N
,/,
it/P
has/V
become/V
increasingly/R
clear/J
that/I
Ralph/N
and/C
I/P
have/V
different/J
agendas/N
,/,
''/'
and/C
that/I
he/P
feels/V
``/`
more/R
comfortable/J
with/I
a/D
management/N
team/N
whose/W
sole/J
interest/N
and/C
responsibility/N
is/V
in/I
the/D
Goodson/N
papers/N
./.
###/###
Just/R
five/C
months/N
after/I
Ogilvy/N
Group/N
was/V
swallowed/V
up/R
in/I
an/D
unsolicited/J
takeover/N
,/,
Kenneth/N
Roman/N
,/,
Ogilvy/N
's/P
chairman/N
and/C
chief/J
executive/J
officer/N
,/,
said/V
he/P
is/V
leaving/V
to/T
take/V
a/D
top/J
post/N
at/I
American/N
Express/N
Co/N
./.
###/###
Mr./N
Roman/N
,/,
59/C
years/N
old/J
,/,
abruptly/R
announced/V
he/P
will/M
leave/V
the/D
venerable/J
ad/N
agency/N
,/,
whose/W
largest/J
client/N
is/V
American/N
Express/N
,/,
to/T
become/V
American/N
Express/N
's/P
executive/J
vice/N
president/N
for/I
corporate/J
affairs/N
and/C
communications/N
./.
###/###
He/P
will/M
succeed/V
Harry/N
L./N
Freeman/N
,/,
57/C
,/,
who/W
has/V
said/V
he/P
will/M
retire/V
in/I
December/N
./.
###/###
Mr./N
Freeman/N
said/V
in/I
August/N
that/I
he/P
would/M
retire/V
by/I
the/D
end/N
of/I
this/D
year/N
to/T
take/V
``/`
executive/J
responsibility/N
''/'
for/I
an/D
embarrassing/J
effort/N
to/T
discredit/V
banker/N
Edmond/N
Safra/N
./.
###/###
American/N
Express/N
representatives/N
apparently/R
influenced/V
the/D
publication/N
of/I
unfavorable/J
articles/N
about/I
Mr./N
Safra/N
./.
###/###
The/D
company/N
later/R
apologized/V
and/C
agreed/V
to/T
make/V
$/$
8/C
million/C
in/I
contributions/N
to/T
charities/N
chosen/V
by/I
him/P
./.
###/###
Although/I
Mr./N
Freeman/N
is/V
retiring/V
,/,
he/P
will/M
continue/V
to/T
work/V
as/I
a/D
consultant/N
for/I
American/N
Express/N
on/I
a/D
project/N
basis/N
./.
###/###
Ad/N
industry/N
executives/N
were/V
n't/R
surprised/J
by/I
Mr./N
Roman/N
's/P
decision/N
to/T
leave/V
Ogilvy/N
./.
###/###
The/D
agency/N
,/,
under/I
his/P
direction/N
,/,
bitterly/R
fought/V
a/D
takeover/N
attempt/N
by/I
WPP/N
Group/N
PLC/N
of/I
London/N
before/I
succumbing/V
in/I
May/N
./.
###/###
And/C
although/I
Mr./N
Roman/N
and/C
WPP/N
's/P
chief/J
executive/N
,/,
Martin/N
Sorrell/N
,/,
have/V
gone/V
out/I
of/I
their/P
way/N
to/T
be/V
publicly/R
supportive/J
of/I
each/D
other/J
,/,
people/N
close/R
to/T
Mr./N
Roman/N
say/V
he/P
was/V
unhappy/J
giving/V
up/R
control/N
of/I
the/D
company/N
./.
###/###
Some/D
executives/N
also/R
cite/V
tension/N
because/I
of/I
efforts/N
by/I
Mr./N
Sorrell/N
,/,
a/D
financial/J
man/N
,/,
to/T
cut/V
costs/N
at/I
the/D
agency/N
./.
###/###
Mr./N
Roman/N
will/M
be/V
succeeded/V
as/I
the/D
head/N
of/I
Ogilvy/N
's/P
flagship/N
ad/N
agency/N
,/,
Ogilvy/N
&/C
Mather/N
Worldwide/N
,/,
by/I
Graham/N
Phillips/N
,/,
50/C
,/,
who/W
had/V
been/V
president/N
of/I
North/J
American/J
operations/N
and/C
who/W
,/,
like/I
Mr./N
Sorrell/N
,/,
is/V
British/J
./.
###/###
Alexander/N
Brody/N
,/,
56/C
,/,
will/M
take/V
on/R
the/D
newly/R
created/V
position/N
of/I
president/N
of/I
the/D
world-wide/J
agency/N
and/C
chief/J
executive/N
of/I
its/P
international/J
operations/N
./.
###/###
He/P
had/V
been/V
president/N
of/I
the/D
international/J
operations/N
./.
###/###
Mr./N
Roman/N
also/R
had/V
overseen/V
Ogilvy/N
Group/N
's/P
two/C
other/J
units/N
,/,
the/D
Scali/N
McCabe/N
Sloves/N
advertising/N
agency/N
and/C
its/P
research/N
division/N
,/,
but/C
those/D
units/N
will/M
now/R
report/V
directly/R
to/T
WPP/N
./.
###/###
Mr./N
Roman/N
appears/V
custom-made/J
for/I
the/D
American/N
Express/N
job/N
./.
###/###
Known/V
as/I
a/D
traditional/J
executive/N
,/,
he/P
is/V
very/R
much/R
in/I
the/D
conservative/J
American/N
Express/N
mold/N
./.
###/###
Moreover/R
,/,
after/I
26/C
years/N
at/I
Ogilvy/N
he/P
had/V
honed/V
a/D
reputation/N
for/I
being/V
squeaky-clean/J
and/C
a/D
straight/J
arrow/N
--/:
which/W
can/M
only/R
help/V
American/N
Express/N
in/I
the/D
wake/N
of/I
the/D
Safra/N
incident/N
./.
###/###
He/P
also/R
is/V
close/R
to/T
American/N
Express/N
's/P
chairman/N
and/C
chief/J
executive/J
officer/N
,/,
James/N
D./N
Robinson/N
III/N
./.
###/###
Aside/R
from/I
working/V
with/I
Mr./N
Robinson/N
on/I
the/D
American/N
Express/N
advertising/N
account/N
for/I
about/R
11/C
years/N
,/,
Mr./N
Roman/N
serves/V
on/I
several/J
of/I
the/D
same/J
charities/N
and/C
boards/N
as/I
Mr./N
Robinson/N
./.
###/###
The/D
abrupt/J
management/N
change/N
sparked/V
widespread/J
speculation/N
that/I
Mr./N
Roman/N
had/V
been/V
pushed/V
out/I
of/I
Ogilvy/N
's/P
top/J
spot/N
by/I
Mr./N
Sorrell/N
./.
###/###
But/C
Mr./N
Roman/N
flatly/R
denied/V
the/D
speculation/N
,/,
saying/V
Mr./N
Sorrell/N
had/V
tried/V
several/J
times/N
to/T
persuade/V
him/P
to/T
stay/V
,/,
offering/V
various/J
incentives/N
and/C
in/I
one/C
instance/N
sending/V
a/D
note/N
with/I
a/D
case/N
of/I
wine/N
-LRB-/-
The/D
wine/N
,/,
naturally/R
,/,
was/V
Seagram/N
's/P
brand/N
,/,
an/D
Ogilvy/N
client/N
-RRB-/-
./.
###/###
He/P
asked/V
me/P
not/R
to/T
resign/V
./.
###/###
The/D
implication/N
that/I
I/P
was/V
pushed/V
aside/R
would/M
n't/R
be/V
accurate/J
,/,
''/'
Mr./N
Roman/N
said/V
./.
###/###
Mr./N
Sorrell/N
,/,
traveling/V
in/I
the/D
Far/N
East/N
,/,
could/M
n't/R
be/V
reached/V
./.
###/###
Mr./N
Roman/N
said/V
American/N
Express/N
's/P
Mr./N
Robinson/N
first/R
approached/V
him/P
about/I
the/D
job/N
in/I
late/J
September/N
./.
###/###
According/V
to/T
industry/N
executives/N
,/,
Peter/N
Sutherland/N
,/,
a/D
former/J
European/N
Community/N
commissioner/N
from/I
Ireland/N
,/,
was/V
also/R
a/D
serious/J
contender/N
for/I
the/D
American/N
Express/N
job/N
./.
###/###
Although/I
it/P
ultimately/R
was/V
n't/R
offered/V
to/T
him/P
,/,
he/P
will/M
be/V
on/I
retainer/N
to/T
American/N
Express/N
as/I
an/D
adviser/N
on/I
international/J
matters/N
./.
###/###
After/I
talking/V
on/R
and/C
off/R
for/I
the/D
past/J
four/C
weeks/N
,/,
Mr./N
Roman/N
said/V
,/,
he/P
agreed/V
to/T
take/V
the/D
job/N
because/I
``/`
it/P
's/V
the/D
right/J
time/N
,/,
it/P
's/V
a/D
terrific/J
opportunity/N
,/,
and/C
I/P
think/V
I/P
leave/V
the/D
company/N
in/I
very/R
strong/J
hands/N
./.
###/###
It/P
was/V
my/P
decision/N
,/,
not/R
anyone/N
else/R
's/P
./.
''/'
###/###
Mr./N
Roman/N
also/R
brushed/V
aside/R
reports/N
about/I
infighting/N
between/I
him/P
and/C
Mr./N
Phillips/N
,/,
his/P
successor/N
at/I
Ogilvy/N
./.
###/###
The/D
two/C
executives/N
could/M
hardly/R
be/V
more/R
different/J
./.
###/###
Mr./N
Roman/N
comes/V
across/R
as/I
a/D
low-key/J
executive/N
;/:
Mr./N
Phillips/N
has/V
a/D
flashier/J
personality/N
./.
###/###
During/I
time/N
off/R
,/,
Mr./N
Roman/N
tends/V
to/T
his/P
garden/N
;/:
Mr./N
Phillips/N
confesses/V
to/T
a/D
fondness/N
for/I
,/,
among/I
other/J
things/N
,/,
fast/J
cars/N
and/C
planes/N
./.
###/###
Industry/N
executives/N
say/V
that/I
although/I
the/D
two/C
executives/N
used/V
to/T
clash/V
more/R
frequently/R
,/,
the/D
WPP/N
takeover/N
brought/V
them/P
closer/R
together/R
./.
###/###
I/P
'm/V
the/D
guy/N
who/W
made/V
him/P
head/N
of/I
New/N
York/N
,/,
head/N
of/I
the/D
U.S./N
,/,
president/N
of/I
North/N
America/N
,/,
and/C
recommended/V
him/P
-LCB-/-
to/T
Mr./N
Sorrell/N
-RCB-/-
as/I
my/P
successor/N
./.
###/###
Would/M
I/P
have/V
done/V
all/P
those/D
things/N
successively/R
if/I
I/P
did/V
n't/R
think/V
he/P
was/V
the/D
right/J
guy/N
?/.
''/'
Mr./N
Roman/N
asked/V
./.
###/###
He/P
labeled/V
reports/N
of/I
friction/N
``/`
ridiculous/J
,/,
''/'
and/C
said/V
that/I
he/P
spent/V
part/N
of/I
the/D
weekend/N
on/I
Mr./N
Phillips/N
's/P
boat/N
in/I
Connecticut/N
./.
###/###
Mr./N
Roman/N
will/M
oversee/V
American/N
Express/N
's/P
public/J
relations/N
and/C
government/N
affairs/N
,/,
among/I
other/J
things/N
,/,
but/C
he/P
wo/M
n't/R
be/V
involved/V
in/I
its/P
advertising/N
,/,
which/W
is/V
handled/V
by/I
the/D
operating/N
units/N
./.
###/###
``/`
I/P
consider/V
this/D
a/D
second/J
career/N
,/,
''/'
he/P
said/V
./.
###/###
He/P
also/R
will/M
sit/V
on/I
the/D
company/N
's/P
corporate/J
planning/N
and/C
policy/N
committee/N
,/,
made/V
up/R
of/I
the/D
top/J
corporate/J
and/C
operating/N
executives/N
./.
###/###
Mr./N
Roman/N
's/P
departure/N
is/V
n't/R
expected/V
to/T
have/V
any/D
enormous/J
repercussions/N
at/I
Ogilvy/N
./.
###/###
American/N
Express/N
,/,
Kraft/N
General/N
Foods/N
,/,
and/C
Mattel/N
executives/N
said/V
the/D
move/N
wo/M
n't/R
affect/V
their/P
relationships/N
with/I
the/D
ad/N
agency/N
./.
###/###
``/`
General/N
Foods/N
's/P
relationships/N
with/I
its/P
agencies/N
are/V
based/V
on/I
the/D
agencies/N
'/P
work/N
,/,
and/C
will/M
continue/V
to/T
be/V
,/,
''/'
said/V
David/N
Hurwitt/N
,/,
a/D
vice/N
president/N
of/I
Kraft/N
General/N
Foods/N
./.
###/###
But/C
some/D
clients/N
and/C
analysts/N
expressed/V
concern/N
that/I
Mr./N
Phillips/N
is/V
n't/R
as/R
well-known/J
to/T
many/J
clients/N
./.
###/###
``/`
Ken/N
was/V
my/P
key/J
contact/N
,/,
''/'
said/V
J./N
Nicholas/N
Hahn/N
,/,
president/N
and/C
chief/J
executive/J
officer/N
of/I
Cotton/N
Inc./N
,/,
which/W
represents/V
cotton/N
producers/N
./.
###/###
I/P
do/V
n't/R
know/V
-LCB-/-
Mr./N
Phillips/N
-RCB-/-
all/R
that/R
well/R
./.
###/###
I/P
have/V
n't/R
seen/V
or/C
talked/V
to/T
him/P
in/I
several/J
years/N
./.
''/'
###/###
And/C
some/D
analysts/N
questioned/V
whether/I
Mr./N
Phillips/N
would/M
have/V
the/D
skills/N
Ogilvy/N
needs/V
to/T
turn/V
the/D
agency/N
around/R
./.
###/###
While/I
the/D
agency/N
has/V
done/V
well/R
in/I
many/J
parts/N
of/I
the/D
world/N
,/,
its/P
flagship/N
New/N
York/N
office/N
has/V
had/V
a/D
dismal/J
track/N
record/N
recently/R
;/:
it/P
has/V
won/V
few/J
new/J
accounts/N
while/I
losing/V
big/J
ones/N
,/,
including/V
Maxwell/N
House/N
./.
###/###
I/P
think/V
-LCB-/-
Mr./N
Phillips/N
-RCB-/-
is/V
going/V
to/T
need/V
some/D
help/N
./.
###/###
I/P
think/V
they/P
need/V
creative/J
leadership/N
,/,
and/C
I/P
do/V
n't/R
think/V
they/P
have/V
it/P
,/,
''/'
said/V
Emma/N
Hill/N
,/,
an/D
analyst/N
with/I
Wertheim/N
&/C
Co/N
./.
###/###
Ogilvy/N
&/C
Mather/N
's/P
top/J
creative/J
executive/N
,/,
Norman/N
Berry/N
,/,
left/V
the/D
agency/N
earlier/R
this/D
year/N
./.
###/###
``/`
Norm/N
Berry/N
was/V
a/D
creative/J
inspiration/N
at/I
the/D
company/N
,/,
and/C
nobody/N
has/V
filled/V
that/D
void/N
,/,
''/'
said/V
Ms./N
Hill/N
./.
###/###
But/C
other/J
analysts/N
said/V
that/I
having/V
Mr./N
Phillips/N
succeed/V
Mr./N
Roman/N
would/M
make/V
for/I
a/D
smooth/J
transition/N
./.
###/###
``/`
Graham/N
Phillips/N
has/V
been/V
there/R
a/D
long/J
time/N
,/,
knows/V
the/D
culture/N
well/R
,/,
is/V
aggressive/J
,/,
and/C
apparently/R
gets/V
along/R
well/R
with/I
''/'
Mr./N
Sorrell/N
,/,
said/V
Andrew/N
Wallach/N
,/,
an/D
analyst/N
with/I
Drexel/N
Burnham/N
Lambert/N
./.
###/###
It/P
's/V
probably/R
a/D
reasonable/J
transition/N
./.
###/###
Hopefully/R
,/,
he/P
'll/M
be/V
the/D
answer/N
to/T
the/D
problems/N
they/P
've/V
had/V
in/I
New/N
York/N
./.
''/'
###/###
Sale/N
of/I
Saatchi/N
Unit/N
Close/R
###/###
Computer/N
Sciences/N
Corp./N
,/,
El/N
Segundo/N
,/,
Calif./N
,/,
said/V
it/P
is/V
close/R
to/T
making/V
final/J
an/D
agreement/N
to/T
buy/V
Cleveland/N
Consulting/N
Associates/N
from/I
Saatchi/N
&/C
Saatchi/N
###/###
Computer/N
Sciences/N
would/M
n't/R
disclose/V
the/D
proposed/J
purchase/N
price/N
for/I
Cleveland/N
Consulting/N
,/,
which/W
counsels/V
companies/N
on/I
logistics/N
and/C
supply/N
./.
###/###
But/C
David/N
Lord/N
,/,
managing/N
editor/N
of/I
Consultants/N
News/N
,/,
an/D
industry/N
publication/N
based/V
in/I
Fitzwilliam/N
,/,
N.H./N
,/,
said/V
an/D
industry/N
standard/N
would/M
suggest/V
a/D
purchase/N
price/N
of/I
between/I
one/C
and/C
two/C
times/N
Cleveland/N
Consulting/N
's/P
approximately/R
$/$
15/C
million/C
annual/J
revenue/N
./.
###/###
Both/D
Saatchi/N
&/C
Saatchi/N
,/,
which/W
announced/V
its/P
intention/N
to/T
sell/V
off/R
most/J
of/I
its/P
consulting/N
business/N
in/I
June/N
,/,
and/C
Cleveland/N
Consulting/N
declined/V
to/T
comment/V
on/I
the/D
proposed/J
sale/N
./.
###/###
Ad/N
Notes/N
./.
###/###
NEW/J
ACCOUNT/N
:/:
AmBase/N
Corp./N
,/,
New/N
York/N
,/,
awarded/V
the/D
ad/N
account/N
for/I
its/P
Home/N
Insurance/N
Co./N
unit/N
to/T
Biederman/N
,/,
Kelly/N
&/C
Shaffer/N
,/,
New/N
York/N
./.
###/###
Billings/N
were/V
n't/R
disclosed/V
./.
###/###
Puerto/N
Rico/N
Telephone/N
Co./N
awarded/V
its/P
$/$
3/C
million/C
account/N
to/T
West/N
Indies/N
&/C
Grey/N
,/,
Grey/N
Advertising/N
's/P
office/N
in/I
Puerto/N
Rico/N
./.
###/###
DIET/N
COKE/N
:/:
Coca-Cola/N
Co./N
yesterday/N
said/V
singer/N
Elton/N
John/N
signed/V
to/T
appear/V
in/I
an/D
ad/N
for/I
Diet/N
Coke/N
./.
###/###
Details/N
of/I
the/D
commercial/N
,/,
which/W
will/M
be/V
part/N
of/I
the/D
brand/N
's/P
1990/C
advertising/N
campaign/N
,/,
were/V
n't/R
disclosed/V
./.
###/###
Mr./N
John/N
becomes/V
the/D
latest/J
of/I
many/J
music/N
stars/N
,/,
including/V
George/N
Michael/N
and/C
Whitney/N
Houston/N
,/,
to/T
appear/V
in/I
ads/N
for/I
the/D
diet/N
drink/N
./.
###/###
Turner/N
Broadcasting/N
System/N
Inc./N
said/V
it/P
formed/V
a/D
unit/N
to/T
make/V
and/C
distribute/V
movies/N
to/T
theaters/N
overseas/R
and/C
,/,
eventually/R
,/,
to/T
U.S./N
theaters/N
,/,
too/R
./.
###/###
The/D
operator/N
of/I
cable-television/N
networks/N
said/V
the/D
new/J
Turner/N
Pictures/N
unit/N
will/M
produce/V
movies/N
that/W
will/M
premiere/V
on/I
Turner/N
Broadcasting/N
's/P
Turner/N
Network/N
Television/N
channel/N
,/,
or/C
TNT/N
,/,
and/C
then/R
will/M
be/V
released/V
internationally/R
in/I
movie/N
theaters/N
./.
###/###
The/D
unit/N
's/P
first/J
two/C
offerings/N
are/V
slated/V
to/T
be/V
``/`
The/D
Secret/J
Life/N
of/I
Ian/N
Fleming/N
,/,
''/'
a/D
dramatization/N
about/I
the/D
former/J
British/J
spy/N
who/W
wrote/V
the/D
James/N
Bond/N
novels/N
,/,
and/C
``/`
Treasure/N
Island/N
,/,
''/'
produced/V
by/I
Charlton/N
Heston/N
,/,
who/W
also/R
stars/V
in/I
the/D
movie/N
./.
###/###
Ted/N
Turner/N
,/,
Turner/N
Broadcasting/N
's/P
chairman/N
,/,
was/V
named/V
chairman/N
of/I
Turner/N
Pictures/N
,/,
and/C
Gerry/N
Hogan/N
,/,
president/N
of/I
Turner/N
Entertainment/N
Networks/N
,/,
was/V
named/V
president/N
of/I
the/D
unit/N
./.
###/###
In/I
an/D
interview/N
,/,
Mr./N
Hogan/N
said/V
the/D
subsidiary/N
's/P
primary/J
mission/N
will/M
be/V
to/T
make/V
movies/N
for/I
TNT/N
and/C
to/T
distribute/V
them/P
internationally/R
./.
###/###
But/C
he/P
said/V
Turner/N
Broadcasting/N
already/R
has/V
found/V
some/D
ideas/N
that/W
might/M
work/V
well/R
as/I
films/N
for/I
theatrical/N
release/N
in/I
the/D
U.S/N
./.
###/###
``/`
When/W
that/D
occurs/V
,/,
and/C
when/W
the/D
time/N
is/V
right/J
,/,
we/P
'll/M
release/V
the/D
films/N
in/I
the/D
U.S./N
,/,
''/'
he/P
said/V
,/,
adding/V
that/I
Turner/N
Pictures/N
may/M
develop/V
such/J
movies/N
next/I
year/N
for/I
domestic/J
release/N
in/I
1991/C
./.
###/###
Turner/N
has/V
made/V
several/J
movies/N
,/,
docudramas/N
and/C
documentaries/N
for/I
its/P
networks/N
in/I
recent/J
years/N
,/,
but/C
the/D
company/N
has/V
never/R
acted/V
as/I
a/D
full-fledged/J
movie/N
studio/N
and/C
released/V
its/P
own/J
pictures/N
to/T
theaters/N
./.
###/###
Mr./N
Hogan/N
said/V
``/`
The/D
Secret/J
Life/N
of/I
Ian/N
Fleming/N
''/'
and/C
``/`
Treasure/N
Island/N
''/'
cost/V
more/J
than/I
$/$
6/C
million/C
each/D
to/T
make/V
,/,
which/W
is/V
only/R
about/R
one-third/N
the/D
cost/N
of/I
most/J
movies/N
made/V
for/I
theatrical/J
release/N
./.
###/###
The/D
Turner/N
move/N
is/V
in/I
line/N
with/I
a/D
cable-TV/N
trend/N
toward/I
more/R
original/J
programming/N
--/:
and/C
toward/I
finding/V
more/J
ways/N
to/T
amortize/V
the/D
high/J
cost/N
of/I
producing/V
films/N
./.
###/###
In/I
July/N
,/,
Viacom/N
Inc./N
formed/V
Viacom/N
Pictures/N
to/T
produce/V
12/C
low-budget/J
movies/N
a/D
year/N
that/W
will/M
premiere/V
on/I
Showtime/N
network/N
and/C
be/V
distributed/V
later/R
in/I
various/J
markets/N
,/,
including/V
foreign/J
theaters/N
./.
###/###
In/I
a/D
sign/N
the/D
stock/N
slump/N
has/V
n't/R
quieted/V
Europe/N
's/P
takeover/N
fever/N
,/,
Cie/N
./.
Financiere/N
de/N
Paribas/N
said/V
it/P
intends/V
to/T
bid/V
for/I
one/C
of/I
France/N
's/P
other/J
large/J
financial/J
and/C
industrial/J
holding/N
companies/N
,/,
Cie./N
de/N
Navigation/N
Mixte/N
./.
###/###
Paribas/N
said/V
that/I
once/R
it/P
receives/V
the/D
go-ahead/N
from/I
French/J
stock/N
market/N
authorities/N
,/,
it/P
will/M
offer/V
to/T
boost/V
its/P
Navigation/N
Mixte/N
stake/N
to/T
66.7/C
%/N
from/I
the/D
current/J
18.7/C
%/N
./.
###/###
Its/P
cash-or-shares/J
bid/N
values/V
Navigation/N
Mixte/N
at/I
about/R
22.82/C
billion/C
francs/N
-LRB-/-
$/$
3.62/C
billion/C
-RRB-/-
,/,
making/V
this/D
one/C
of/I
France/N
's/P
largest-ever/J
attempted/J
takeovers/N
./.
###/###
The/D
cost/N
of/I
buying/V
the/D
additional/J
48/C
%/N
stake/N
would/M
be/V
10.95/C
billion/C
francs/N
-LRB-/-
$/$
1.74/C
billion/C
-RRB-/-
./.
###/###
The/D
move/N
would/M
greatly/R
boost/V
Paribas/N
's/P
stake/N
in/I
the/D
insurance/N
,/,
transport/N
and/C
food/N
businesses/N
,/,
where/W
Navigation/N
Mixte/N
is/V
strong/J
./.
###/###
It/P
also/R
would/M
make/V
Paribas/N
a/D
major/J
French/J
ally/N
of/I
West/N
Germany/N
's/P
Allianz/N
AG/N
insurance/N
group/N
./.
###/###
Allianz/N
holds/V
a/D
50/C
%/N
stake/N
in/I
Navigation/N
Mixte/N
's/P
insurance/N
interests/N
,/,
acquired/V
three/C
weeks/N
ago/R
./.
###/###
Those/D
include/V
Rhin/N
et/N
Moselle/N
Vie/N
and/C
Via/N
Assurances/N
./.
###/###
Long/R
considered/V
a/D
potential/J
takeover/N
target/N
,/,
Navigation/N
Mixte/N
had/V
hoped/V
Allianz/N
would/M
help/V
protect/V
it/P
from/I
raiders/N
./.
###/###
That/D
idea/N
may/M
have/V
backfired/V
./.
###/###
Paribas/N
is/V
Allianz/N
's/P
main/J
French/J
bank/N
,/,
and/C
the/D
Munich-based/J
group/N
said/V
it/P
intends/V
to/T
stay/V
neutral/J
./.
###/###
Navigation/N
Mixte/N
said/V
it/P
would/M
n't/R
have/V
any/D
comment/N
until/I
its/P
board/N
meets/V
Wednesday/N
./.
###/###
But/C
Navigation/N
Mixte/N
is/V
loosely/R
held/V
and/C
hard/R
to/T
defend/V
./.
###/###
``/`
The/D
defensive/N
options/N
are/V
limited/J
,/,
''/'
says/V
Philippe/N
Braye/N
,/,
a/D
partner/N
in/I
portfolio/N
management/N
concern/N
France/N
Finance/N
Quatre/N
./.
###/###
Who/W
would/M
bid/V
against/I
Paribas/N
?/.
''/'
###/###
If/I
the/D
Paribas/N
bid/N
succeeds/V
,/,
it/P
will/M
be/V
the/D
second/J
time/N
in/I
two/C
months/N
a/D
big/J
French/J
investment/N
banking/N
group/N
has/V
snapped/V
up/R
an/D
insurance/N
group/N
./.
###/###
Last/J
month/N
,/,
Paribas/N
's/P
archrival/N
,/,
Cie/N
./.
Financiere/N
de/N
Suez/N
,/,
won/V
a/D
battle/N
for/I
Groupe/N
Victoire/N
,/,
France/N
's/P
second-largest/J
private-sector/J
insurer/N
,/,
which/W
itself/P
had/V
just/R
acquired/V
West/N
Germany/N
's/P
Colonia/N
Versicherung/N
AG/N
./.
###/###
That/D
complex/J
bid/N
was/V
billed/V
as/I
France/N
's/P
largest/J
takeover/N
ever/R
-LRB-/-
this/D
one/C
is/V
slightly/R
smaller/J
-RRB-/-
./.
###/###
Moreover/R
,/,
Suez/N
had/V
just/R
finished/V
winning/V
an/D
even/R
larger/J
battle/N
last/J
year/N
for/I
control/N
of/I
Societe/N
Generale/N
de/N
Belgique/N
./.
###/###
Paribas/N
officials/N
,/,
once/R
considered/V
France/N
's/P
toughest/J
bankers/N
,/,
felt/V
abashed/J
at/I
Suez/N
's/P
success/N
and/C
its/P
rapid/J
growth/N
./.
###/###
Although/I
Paribas/N
denies/V
it/P
,/,
analysts/N
say/V
the/D
new/J
bid/N
in/I
part/N
simply/R
reflects/V
the/D
continuing/J
rivalry/N
between/I
France/N
's/P
two/C
largest/J
investment/N
banking/N
groups/N
./.
###/###
It/P
also/R
reflects/V
the/D
broader/J
pressure/N
on/I
companies/N
in/I
Europe/N
to/T
keep/V
up/R
as/I
the/D
European/N
Community/N
prepares/V
to/T
reduce/V
internal/J
trade/N
barriers/N
by/I
1992/C
./.
###/###
Although/I
Paribas/N
Chairman/N
Michel/N
Francois-Poncet/N
would/M
n't/R
rule/V
out/R
eventually/R
selling/V
all/D
of/I
Navigation/N
Mixte/N
's/P
insurance/N
operations/N
to/T
Allianz/N
,/,
he/P
stressed/V
the/D
potential/N
for/I
the/D
two/C
groups/N
instead/R
to/T
cooperate/V
./.
###/###
He/P
also/R
told/V
reporters/N
the/D
acquisition/N
would/M
give/V
Paribas/N
fresh/J
diversity/N
,/,
bringing/V
it/P
properties/N
in/I
food/N
and/C
transport/N
where/W
it/P
has/V
been/V
weak/J
./.
###/###
Navigation/N
Mixte/N
has/V
investments/N
in/I
a/D
sugar/N
company/N
,/,
a/D
food/N
and/C
canning/N
concern/N
,/,
a/D
bakery/N
and/C
bus/N
and/C
trucking/N
firms/N
,/,
among/I
others/N
./.
###/###
And/C
Navigation/N
Mixte/N
has/V
a/D
huge/J
hidden/J
attraction/N
./.
###/###
Payment/N
by/I
Allianz/N
for/I
the/D
insurance/N
interests/V
it/P
has/V
just/R
bought/V
will/M
help/V
swell/V
the/D
French/J
concern/N
's/P
treasury/N
to/T
an/D
estimated/J
11/C
billion/C
francs/N
./.
###/###
Paribas/N
said/V
it/P
will/M
bid/V
1,850/C
francs/N
a/D
share/N
for/I
Navigation/N
Mixte/N
shares/N
that/W
qualify/V
for/I
a/D
full/J
yearly/J
dividend/N
,/,
and/C
1,800/C
francs/N
for/I
those/D
created/V
July/N
1/C
,/,
which/W
are/V
eligible/J
for/I
partial/J
dividends/N
./.
###/###
Alternatively/R
,/,
it/P
said/V
it/P
would/M
offer/V
three/C
Paribas/N
shares/N
,/,
themselves/P
eligible/J
for/I
dividends/N
as/I
of/I
next/J
Jan./N
1/C
,/,
for/I
one/C
Navigation/N
Mixte/N
share/N
./.
###/###
Paribas/N
shares/N
closed/V
down/R
30/C
francs/N
at/I
610/C
francs/N
,/,
and/C
Navigation/N
Mixte/N
shares/N
were/V
suspended/V
at/I
1,800/C
francs/N
pending/V
the/D
outcome/N
of/I
the/D
bid/N
./.
###/###
Paribas/N
said/V
it/P
would/M
publish/V
details/N
of/I
its/P
bid/N
once/I
authorities/N
clear/V
it/P
./.
###/###
This/D
is/V
one/C
of/I
the/D
first/J
bids/N
under/I
new/J
takeover/N
rules/N
aimed/V
at/I
encouraging/V
open/J
bids/N
instead/R
of/I
gradual/J
accumulation/N
of/I
large/J
stakes/N
./.
###/###
Some/D
financial/J
sources/N
said/V
privately/R
that/I
Paribas/N
blundered/V
in/I
failing/V
to/T
move/V
sooner/R
for/I
the/D
insurance/N
and/C
industrial/J
group/N
,/,
bidding/V
only/R
after/I
speculation/N
had/V
pushed/V
up/R
the/D
price/N
./.
###/###
Mr./N
Francois-Poncet/N
responded/V
that/I
his/P
group/N
initially/R
intended/V
to/T
take/V
only/R
a/D
minority/N
stake/N
,/,
striking/V
an/D
alliance/N
with/I
current/J
management/N
./.
###/###
When/W
notoriously/R
independent-minded/J
Navigation/N
Mixte/N
Chairman/N
Marc/N
Fournier/N
rejected/V
Paribas/N
's/P
offer/N
and/C
began/V
buying/V
Paribas/N
shares/N
in/I
retaliation/N
,/,
Mr./N
Francois-Poncet/N
said/V
,/,
he/P
felt/V
obliged/J
to/T
bid/V
for/I
control/N
./.
###/###
He/P
told/V
reporters/N
he/P
had/V
information/N
that/I
Mr./N
Fournier/N
was/V
preparing/V
to/T
buy/V
as/R
much/J
as/I
20/C
%/N
of/I
Paribas/N
,/,
up/R
from/I
less/J
than/I
5/C
%/N
currently/R
./.
###/###
A/D
bid/N
against/I
Paribas/N
could/M
n't/R
be/V
ruled/V
out/R
./.
###/###
France/N
's/P
second-largest/J
government-owned/J
insurance/N
company/N
,/,
Assurances/N
Generales/N
de/N
France/N
,/,
has/V
been/V
building/V
its/P
own/J
Navigation/N
Mixte/N
stake/N
,/,
currently/R
thought/V
to/T
be/V
between/I
8/C
%/N
and/C
10/C
%/N
./.
###/###
Analysts/N
said/V
they/P
do/V
n't/R
think/V
it/P
is/V
contemplating/V
a/D
takeover/N
,/,
however/R
,/,
and/C
its/P
officials/N
could/M
n't/R
be/V
reached/V
./.
###/###
Crude/J
oil/N
futures/N
prices/N
fell/V
further/R
as/I
analysts/N
and/C
traders/N
said/V
OPEC/N
oil/N
producers/N
are/V
n't/R
putting/V
the/D
brakes/N
on/I
output/N
ahead/R
of/I
the/D
traditionally/R
weak/J
first/J
quarter/N
./.
###/###
In/I
trading/N
on/I
the/D
New/N
York/N
Mercantile/N
Exchange/N
,/,
the/D
U.S./N
benchmark/J
West/N
Texas/N
Intermediate/N
crude/N
fell/V
39/C
cents/N
a/D
barrel/N
to/T
$/$
19.76/C
for/I
December/N
delivery/N
./.
###/###
Petroleum/N
products/N
prices/N
also/R
declined/V
./.
###/###
Analysts/N
pointed/V
to/T
reports/N
that/I
the/D
Organization/N
of/I
Petroleum/N
Exporting/N
Countries/N
is/V
producing/V
substantially/R
more/J
than/I
its/P
official/J
limit/N
of/I
20.5/C
million/C
barrels/N
a/D
day/N
,/,
with/I
some/D
accounts/N
putting/V
the/D
13-nation/J
group/N
's/P
output/N
as/R
high/J
as/I
23/C
million/C
barrels/N
a/D
day/N
./.
###/###
That/D
level/N
of/I
production/N
did/V
n't/R
take/V
its/P
toll/N
on/I
futures/N
prices/N
for/I
the/D
fourth/J
quarter/N
,/,
when/W
demand/N
is/V
traditionally/R
strong/J
./.
###/###
But/C
because/I
first-quarter/J
demand/N
is/V
normally/R
the/D
weakest/J
of/I
the/D
year/N
,/,
several/J
market/N
participants/N
say/V
,/,
OPEC/N
production/N
will/M
have/V
to/T
decline/V
to/T
keep/V
prices/N
from/I
eroding/V
further/R
./.
###/###
The/D
group/N
plans/V
to/T
meet/V
in/I
a/D
month/N
to/T
discuss/V
production/N
strategy/N
for/I
early/J
1990/C
./.
###/###
With/I
prices/N
already/R
headed/V
lower/R
,/,
news/N
of/I
a/D
series/N
of/I
explosions/N
at/I
a/D
major/J
Phillips/N
Petroleum/N
Co./N
chemical/N
facility/N
on/I
the/D
Houston/N
Ship/N
Channel/N
also/R
was/V
bearish/J
for/I
prices/N
./.
###/###
Even/R
though/I
such/J
facilities/N
use/V
a/D
relatively/R
small/J
amount/N
of/I
crude/N
,/,
analysts/N
say/V
,/,
now/R
the/D
facility/N
wo/M
n't/R
need/V
any/D
,/,
at/I
a/D
time/N
of/I
already/R
high/J
availability/N
./.
###/###
The/D
Phillips/N
plant/N
makes/V
polyethylene/N
,/,
polypropylene/N
and/C
other/J
plastic/N
products/N
./.
###/###
A/D
company/N
official/N
said/V
the/D
explosions/N
began/V
when/W
a/D
seal/N
blew/V
out/R
./.
###/###
Dozens/N
of/I
workers/N
were/V
injured/V
,/,
authorities/N
said/V
./.
###/###
There/E
was/V
no/D
immediate/J
estimate/N
of/I
damage/N
from/I
the/D
company/N
./.
###/###
Some/D
petroleum/N
futures/N
traders/N
say/V
technical/J
considerations/N
now/R
will/M
help/V
to/T
put/V
downward/J
pressure/N
on/I
futures/N
prices/N
./.
###/###
For/I
instance/N
,/,
one/C
trader/N
said/V
that/I
prices/N
inevitably/R
will/M
go/V
lower/R
now/R
that/I
they/P
've/V
fallen/V
below/I
$/$
20/C
a/D
barrel/N
./.
###/###
``/`
Our/P
technician/N
is/V
a/D
little/J
bearish/J
now/R
that/I
we/P
've/V
taken/V
out/R
$/$
20/C
,/,
''/'
he/P
said/V
./.
###/###
In/I
other/J
commodity/N
markets/N
yesterday/N
:/:
COPPER/N
:/:
The/D
selling/N
that/W
started/V
on/I
Friday/N
continued/V
yesterday/N
###/###
The/D
December/N
contract/N
fell/V
3.85/C
cents/N
a/D
pound/N
to/T
$/$
1.1960/C
./.
###/###
London/N
Metal/N
Exchange/N
warehouse/N
stocks/N
were/V
down/R
only/R
4,800/C
metric/J
tons/N
for/I
the/D
week/N
to/T
84,500/C
tons/N
;/:
expectations/N
late/R
last/J
week/N
were/V
a/D
drop/N
of/I
10,000/C
to/T
15,000/C
tons/N
./.
###/###
The/D
New/N
York/N
market/N
made/V
its/P
high/N
for/I
the/D
day/N
on/I
the/D
opening/N
and/C
when/W
it/P
dropped/V
below/I
the/D
$/$
1.23-a-pound/J
level/N
,/,
selling/N
picked/V
up/R
as/R
previous/J
buyers/N
bailed/V
out/I
of/I
their/P
positions/N
and/C
aggressive/J
short/J
sellers/N
--/:
anticipating/V
further/J
declines/N
--/:
moved/V
in/I
./.
###/###
Fund/N
selling/N
also/R
picked/V
up/R
at/I
that/D
point/N
./.
###/###
According/V
to/T
Bernard/N
Savaiko/N
,/,
senior/J
commodity/N
analyst/N
at/I
PaineWebber/N
,/,
the/D
only/J
stability/N
to/T
the/D
market/N
came/V
when/W
short/J
sellers/N
periodically/R
moved/V
in/R
to/T
cover/V
their/P
positions/N
by/I
buying/V
contracts/N
./.
###/###
This/D
activity/N
produced/V
small/J
rallies/N
,/,
which/W
in/I
turn/N
attracted/V
new/J
short/J
selling/N
./.
###/###
Mr./N
Savaiko/N
noted/V
that/I
copper/N
had/V
a/D
steep/J
fall/N
in/I
spite/N
of/I
a/D
weak/J
dollar/N
,/,
which/W
would/M
normally/R
support/V
the/D
U.S./N
copper/N
market/N
./.
###/###
Such/J
support/N
usually/R
comes/V
from/I
arbitragers/N
who/W
use/V
a/D
strong/J
British/J
pound/N
to/T
buy/V
copper/N
in/I
New/N
York/N
./.
###/###
``/`
The/D
sell-off/N
would/M
probably/R
have/V
been/V
worse/J
if/I
the/D
dollar/N
had/V
been/V
strong/J
,/,
''/'
he/P
said/V
./.
###/###
Copper/N
has/V
been/V
stuck/V
in/I
a/D
trading/N
range/N
of/I
$/$
1.19/C
to/T
$/$
1.34/C
./.
###/###
Mr./N
Savaiko/N
believes/V
that/I
if/I
copper/N
falls/V
below/I
the/D
bottom/N
of/I
this/D
range/N
the/D
next/J
significant/J
support/N
level/N
will/M
be/V
about/R
$/$
1.04/C
./.
###/###
PRECIOUS/J
METALS/N
:/:
Platinum/N
and/C
palladium/N
struggled/V
to/T
maintain/V
their/P
prices/N
all/D
day/N
despite/I
news/N
stories/N
over/I
the/D
weekend/N
that/I
recent/J
cold/J
fusion/N
experiments/N
,/,
which/W
use/V
both/D
metals/N
,/,
showed/V
signs/N
of/I
producing/V
extra/J
heat/N
./.
###/###
January/N
platinum/N
closed/V
down/R
$/$
2.80/C
an/D
ounce/N
at/I
$/$
486.30/C
,/,
nearly/R
$/$
4/C
above/I
its/P
low/N
for/I
the/D
day/N
./.
###/###
December/N
palladium/N
was/V
off/R
$/$
1.55/C
an/D
ounce/N
at/I
$/$
137.20/C
./.
###/###
Platinum/N
is/V
believed/V
to/T
have/V
good/J
support/N
around/I
$/$
480/C
and/C
palladium/N
at/I
around/I
$/$
130/C
./.
###/###
Some/D
traders/N
were/V
thought/V
to/T
be/V
waiting/V
for/I
the/D
auto/N
sales/N
report/N
,/,
which/W
will/M
be/V
released/V
today/N
./.
###/###
Such/J
sales/N
are/V
watched/V
closely/R
by/I
platinum/N
and/C
palladium/N
traders/N
because/I
both/D
metals/N
are/V
used/V
in/I
automobile/N
catalytic/J
converters/N
./.
###/###
Mr./N
Savaiko/N
theorized/V
that/I
the/D
news/N
on/I
cold/J
fusion/N
did/V
n't/R
affect/V
the/D
market/N
yesterday/N
because/I
many/J
traders/N
have/V
already/R
been/V
badly/R
burnt/V
by/I
such/J
stories/N
./.
###/###
He/P
said/V
the/D
traders/N
are/V
demanding/V
a/D
higher/J
level/N
of/I
proof/N
before/I
they/P
will/M
buy/V
palladium/N
again/R
./.
###/###
Also/R
weighing/V
on/I
both/D
metals/N
'/P
prices/N
is/V
the/D
role/N
of/I
the/D
chief/J
supplier/N
,/,
the/D
Soviet/N
Union/N
./.
###/###
Many/J
analysts/N
believe/V
that/I
the/D
Soviets/N
'/P
thirst/N
for/I
dollars/N
this/D
year/N
to/T
buy/V
grain/N
and/C
other/J
Western/J
commodities/N
and/C
goods/N
will/M
bring/V
them/P
to/T
the/D
market/N
whenever/W
prices/N
rally/V
very/R
much/R
./.
###/###
GRAINS/N
AND/C
SOYBEANS/N
:/:
Prices/N
closed/V
mixed/J
as/I
contracts/N
reacted/V
to/T
largely/R
offsetting/J
bullish/J
and/C
bearish/J
news/N
./.
###/###
On/I
the/D
Chicago/N
Board/N
of/I
Trade/N
,/,
soybeans/N
for/I
November/N
delivery/N
closed/V
at/I
$/$
5.63/C
a/D
bushel/N
,/,
down/I
half/P
a/D
cent/N
,/,
while/I
the/D
December/N
wheat/N
contract/N
rose/V
three-quarters/N
of/I
a/D
cent/N
to/T
$/$
4.0775/C
a/D
bushel/N
./.
###/###
Supporting/V
prices/N
was/V
the/D
announcement/N
late/R
Friday/N
of/I
additional/J
grain/N
sales/N
to/T
the/D
Soviet/N
Union/N
./.
###/###
But/C
acting/V
as/I
a/D
drag/N
on/I
prices/N
was/V
the/D
improved/J
harvest/N
weather/N
over/I
the/D
weekend/N
and/C
the/D
prospect/N
for/I
continued/J
fair/J
weather/N
this/D
week/N
over/I
much/J
of/I
the/D
Farm/N
Belt/N
./.
###/###
Strong/J
farmer/N
selling/N
over/I
the/D
weekend/N
also/R
weighed/V
on/I
prices/N
./.
###/###
SUGAR/N
:/:
World/N
prices/N
tumbled/V
,/,
mostly/R
from/I
their/P
own/J
weight/N
,/,
according/V
to/T
analysts/N
./.
###/###
The/D
March/N
contract/N
ended/V
at/I
13.79/C
cents/N
a/D
pound/N
,/,
down/R
0.37/C
cent/N
./.
###/###
For/I
the/D
past/J
week/N
or/C
so/R
,/,
traders/N
have/V
been/V
expecting/V
India/N
to/T
buy/V
between/I
150,000/C
and/C
200,000/C
tons/N
of/I
refined/J
sugar/N
,/,
and/C
there/E
have/V
been/V
expectations/N
of/I
a/D
major/J
purchase/N
by/I
Japan/N
./.
###/###
But/C
with/I
no/D
reports/N
of/I
either/D
country/N
actually/R
entering/V
the/D
market/N
,/,
analysts/N
said/V
,/,
futures/N
prices/N
became/V
vulnerable/J
./.
###/###
Developing/V
countries/N
such/J
as/I
India/N
,/,
some/D
analysts/N
said/V
,/,
seem/V
to/T
have/V
made/V
it/P
a/D
point/N
to/T
stay/V
away/R
whenever/W
sugar/N
reached/V
the/D
top/N
of/I
its/P
trading/J
range/N
,/,
around/I
14.75/C
cents/N
,/,
and/C
wait/V
for/I
prices/N
to/T
return/V
to/T
the/D
bottom/N
of/I
the/D
range/N
,/,
around/I
13.50/C
cents/N
./.
###/###
But/C
Erik/N
Dunlaevy/N
,/,
a/D
sugar/N
analyst/N
with/I
Balfour/N
Maclaine/N
International/N
Ltd./N
,/,
said/V
the/D
explanation/N
for/I
the/D
latest/J
drop/N
in/I
sugar/N
prices/N
is/V
much/R
simpler/J
:/:
Speculators/N
,/,
he/P
said/V
,/,
``/`
got/V
too/R
long/J
too/R
soon/R
and/C
ran/V
into/I
resistance/N
around/I
the/D
old/J
contract/N
highs/N
./.
''/'
###/###
A/D
PaineWebber/N
analyst/N
said/V
that/I
in/I
light/N
of/I
a/D
new/J
estimate/N
of/I
a/D
production/N
increase/N
of/I
four/C
million/C
metric/J
tons/N
and/C
only/R
a/D
modest/J
increase/N
in/I
consumption/N
,/,
sugar/N
is/V
n't/R
likely/J
to/T
rise/V
above/I
the/D
top/N
of/I
its/P
trading/N
range/N
without/I
a/D
crop/N
problem/N
in/I
a/D
major/J
producing/J
country/N
./.
###/###
COCOA/N
:/:
Futures/N
rallied/V
modestly/R
./.
###/###
The/D
December/N
contract/N
rose/V
$/$
33/C
a/D
metric/J
ton/N
to/T
$/$
1,027/C
,/,
near/I
its/P
high/N
for/I
the/D
day/N
./.
###/###
Gill/N
&/C
Duffus/N
Ltd./N
,/,
a/D
British/J
cocoa-trading/J
house/N
,/,
estimated/V
that/I
the/D
1989-90/C
world/N
cocoa/N
surplus/N
would/M
be/V
231,000/C
tons/N
,/,
down/R
from/I
314,000/C
tons/N
for/I
the/D
previous/J
year/N
./.
###/###
Market/N
technicians/N
were/V
encouraged/V
by/I
the/D
price/N
patterns/N
,/,
which/W
in/I
the/D
past/N
have/V
preceded/V
sharp/J
rallies/N
./.
###/###
Recent/J
prices/N
for/I
cocoa/N
have/V
been/V
near/I
levels/N
last/R
seen/V
in/I
the/D
mid-1970s/N
./.
###/###
At/I
such/J
prices/N
,/,
according/V
to/T
Mr./N
Savaiko/N
,/,
bargain/N
hunting/N
and/C
short-covering/N
--/:
buying/N
back/R
of/I
contracts/N
previously/R
sold/V
--/:
by/I
speculators/N
is/V
n't/R
uncommon/J
./.
###/###
But/C
Mr./N
Savaiko/N
expects/V
stepped-up/J
producer/N
selling/N
at/I
around/I
the/D
$/$
1,040/C
to/T
$/$
1,050/C
level/N
./.
###/###
He/P
also/R
noted/V
that/I
a/D
strong/J
sterling/J
market/N
yesterday/N
might/M
have/V
helped/V
cocoa/N
in/I
New/N
York/N
as/I
arbitragers/N
took/V
advantage/N
of/I
the/D
currency/N
move/N
./.
###/###
Sandra/N
Kaul/N
,/,
research/N
analyst/N
at/I
Shearson/N
Lehman/N
Hutton/N
,/,
said/V
the/D
market/N
pushed/V
higher/J
mainly/R
in/I
anticipation/N
of/I
a/D
late/J
harvest/N
in/I
the/D
Ivory/N
Coast/N
,/,
a/D
major/J
cocoa/N
producer/N
./.
###/###
Rockwell/N
International/N
Corp./N
bought/V
out/R
Ikegai/N
Corp./N
's/P
interest/N
in/I
Ikegai-Goss/N
,/,
a/D
joint/J
venture/N
of/I
the/D
two/C
companies/N
based/V
in/I
Tokyo/N
./.
###/###
The/D
price/N
was/V
3.6/C
billion/C
yen/N
-LRB-/-
$/$
25/C
million/C
-RRB-/-
./.
###/###
The/D
agreement/N
provides/V
that/I
Ikegai/N
Corp./N
will/M
remain/V
a/D
supplier/N
to/T
Ikegai-Goss/N
,/,
which/W
makes/V
printing/N
presses/N
for/I
the/D
newspaper/N
industry/N
./.
###/###
The/D
purchase/N
was/V
made/V
by/I
Rockwell/N
Graphic/N
Systems/N
,/,
a/D
Chicago/N
subsidiary/N
of/I
the/D
El/N
Segundo/N
,/,
Calif./N
,/,
concern/N
./.
###/###
Ikegai-Goss/N
,/,
which/W
has/V
about/R
200/C
employees/N
,/,
is/V
among/I
the/D
industry/N
leaders/N
in/I
keyless/J
inking/N
technology/N
,/,
which/W
reduces/V
time/N
and/C
materials/N
waste/N
when/W
preparing/V
a/D
press/N
for/I
printing/V
./.
###/###
The/D
bond/N
market/N
,/,
which/W
sometimes/R
thrives/V
on/I
bad/J
news/N
,/,
cheered/V
yesterday/N
's/P
stock/N
market/N
sell-off/N
and/C
perceptions/N
that/I
the/D
economy/N
is/V
growing/V
weaker/J
./.
###/###
Early/R
in/I
the/D
day/N
,/,
bonds/N
rose/V
modestly/R
on/I
economists/N
'/P
forecasts/N
that/I
this/D
week/N
's/P
slate/N
of/I
economic/J
data/N
will/M
portray/V
an/D
economy/N
headed/V
for/I
trouble/N
./.
###/###
Such/J
news/N
is/V
good/J
for/I
bonds/N
because/I
economic/J
weakness/N
sometimes/R
causes/V
the/D
Federal/N
Reserve/N
to/T
lower/V
interest/N
rates/N
in/I
an/D
effort/N
to/T
stimulate/V
the/D
economy/N
and/C
stave/V
off/I
a/D
recession/N
./.
###/###
For/I
example/N
,/,
today/N
the/D
Department/N
of/I
Commerce/N
is/V
scheduled/V
to/T
release/V
the/D
September/N
durable/J
goods/N
report/N
./.
###/###
The/D
consensus/N
forecast/N
of/I
14/C
economists/N
surveyed/V
by/I
Dow/N
Jones/N
Capital/N
Markets/N
Report/N
is/V
for/I
a/D
1.2/C
%/N
drop/N
in/I
September/N
orders/N
./.
###/###
That/D
would/M
follow/V
a/D
3.9/C
%/N
advance/N
in/I
August/N
./.
###/###
Bonds/N
received/V
a/D
bigger/J
boost/N
later/R
in/I
the/D
day/N
when/W
stock/N
prices/N
moved/V
broadly/R
lower/J
./.
###/###
The/D
Dow/N
Jones/N
Industrial/N
Average/N
fell/V
26.23/C
points/N
to/T
2662.91/C
./.
###/###
``/`
Bond/N
investors/N
have/V
been/V
watching/V
stocks/N
closely/R
,/,
''/'
said/V
Joel/N
Marver/N
,/,
chief/J
fixed-income/N
analyst/N
at/I
Technical/N
Data/N
Global/N
Markets/N
Group/N
./.
###/###
``/`
When/W
you/P
get/V
a/D
big/J
sell-off/N
in/I
equities/N
,/,
money/N
starts/V
to/T
shift/V
into/I
bonds/N
,/,
''/'
which/W
are/V
considered/V
safer/J
,/,
he/P
said/V
./.
###/###
The/D
Treasury/N
's/P
benchmark/J
30-year/J
bond/N
ended/V
about/R
point/N
higher/J
,/,
or/C
up/R
about/R
$/$
5/C
for/I
each/D
$/$
1,000/C
face/N
amount/N
,/,
while/I
the/D
yield/N
slid/V
to/T
7.93/C
%/N
from/I
7.98/C
%/N
Friday/N
./.
###/###
Municipals/N
ended/V
mixed/J
,/,
while/I
mortgage-backed/J
and/C
investment-grade/J
corporate/J
bonds/N
rose/V
./.
###/###
Prices/N
of/I
high-yield/J
,/,
high-risk/J
corporate/J
securities/N
ended/V
unchanged/J
./.
###/###
In/I
more/J
evidence/N
of/I
the/D
growing/V
division/N
between/I
``/`
good/J
''/'
and/C
``/`
bad/J
''/'
junk/N
bonds/N
,/,
a/D
$/$
150/C
million/C
issue/N
by/I
Imo/N
Industries/N
Inc./N
was/V
snapped/V
up/R
by/I
investors/N
while/I
underwriters/N
for/I
Beatrice/N
Co./N
's/P
$/$
350/C
million/C
issue/N
are/V
considering/V
restructuring/V
the/D
deal/N
to/T
attract/V
buyers/N
./.
###/###
In/I
the/D
Treasury/N
market/N
,/,
analysts/N
expect/V
bond/N
prices/N
to/T
trade/V
in/I
narrow/J
ranges/N
this/D
week/N
as/I
the/D
market/N
takes/V
in/I
positive/J
and/C
negative/J
news/N
./.
###/###
``/`
On/I
the/D
negative/J
side/N
,/,
the/D
market/N
will/M
be/V
affected/V
by/I
constant/J
supply/N
in/I
all/D
sectors/N
of/I
the/D
market/N
,/,
''/'
said/V
William/N
M./N
Brachfeld/N
,/,
economist/N
at/I
Daiwa/N
Securities/N
America/N
Inc/N
./.
###/###
On/I
the/D
other/J
hand/N
,/,
we/P
have/V
economic/J
news/N
that/W
is/V
-LCB-/-
expected/V
to/T
be/V
-RCB-/-
relatively/R
positive/J
for/I
the/D
bond/N
market/N
./.
###/###
We/P
will/M
go/V
back/R
and/C
forth/R
with/I
a/D
tilt/N
toward/I
slightly/R
lower/J
yields/N
,/,
''/'
he/P
said/V
./.
###/###
Today/N
,/,
the/D
Treasury/N
will/M
sell/V
$/$
10/C
billion/C
of/I
new/J
two-year/J
notes/N
./.
###/###
Tomorrow/N
,/,
Resolution/N
Funding/N
Corp./N
,/,
a/D
division/N
of/I
a/D
new/J
government/N
agency/N
created/V
to/T
bail/V
out/R
the/D
nation/N
's/P
troubled/J
thrifts/N
,/,
will/M
hold/V
its/P
first/J
bond/N
auction/N
at/I
which/W
it/P
will/M
sell/V
$/$
4.5/C
billion/C
of/I
30-year/J
bonds/N
./.
###/###
So/R
far/R
,/,
money/N
managers/N
and/C
other/J
bond/N
buyers/N
have/V
n't/R
shown/V
much/J
interest/N
in/I
the/D
Refcorp/N
bonds/N
./.
###/###
Analysts/N
have/V
mixed/J
views/N
about/I
the/D
two-year/J
note/N
auction/N
./.
###/###
While/I
some/D
say/V
the/D
auction/N
should/M
proceed/V
smoothly/R
,/,
others/N
contend/V
that/I
yesterday/N
's/P
sale/N
of/I
$/$
2.58/C
billion/C
of/I
asset-backed/J
securities/N
by/I
Ford/N
Motor/N
Credit/N
Corp./N
may/M
have/V
siphoned/V
some/D
potential/J
institutional/J
buyers/N
from/I
the/D
government/N
's/P
note/N
sale/N
./.
###/###
The/D
division/N
of/I
auto/N
maker/N
Ford/N
Motor/N
Co./N
made/V
its/P
debut/N
in/I
the/D
asset-backed/J
securities/N
market/N
with/I
the/D
second-largest/J
issue/N
in/I
the/D
market/N
's/P
four-year/J
history/N
./.
###/###
The/D
company/N
offered/V
securities/N
backed/V
by/I
automobile/N
loans/N
through/I
an/D
underwriting/N
group/N
headed/V
by/I
First/N
Boston/N
Corp/N
./.
###/###
The/D
issue/N
yields/V
8.90/C
%/N
and/C
carries/V
a/D
guarantee/N
covering/V
9/C
%/N
of/I
the/D
deal/N
from/I
the/D
company/N
./.
###/###
First/N
Boston/N
sweetened/V
the/D
terms/N
from/I
the/D
original/J
yield/N
estimate/N
in/I
an/D
apparent/J
effort/N
to/T
place/V
the/D
huge/J
offering/N
./.
###/###
The/D
issue/N
was/V
offered/V
at/I
a/D
yield/N
nearly/R
one/C
percentage/N
point/N
above/I
the/D
yield/N
on/I
two-year/J
Treasurys/N
./.
###/###
The/D
only/J
asset-backed/J
deal/N
larger/J
than/I
Ford/N
's/P
was/V
a/D
$/$
4/C
billion/C
offering/N
by/I
General/N
Motors/N
Acceptance/N
Corp./N
in/I
1986/C
./.
###/###
Treasury/N
bonds/N
were/V
to/T
point/N
higher/J
yesterday/N
in/I
light/J
trading/N
./.
###/###
The/D
benchmark/J
30-year/J
bond/N
ended/V
at/I
a/D
price/N
of/I
102/C
,/,
compared/V
with/I
101/C
Friday/N
./.
###/###
The/D
latest/J
10-year/J
notes/N
were/V
quoted/V
late/R
at/I
100/C
to/T
yield/V
7.90/C
%/N
,/,
compared/V
with/I
100/C
to/T
yield/V
7.97/C
%/N
./.
###/###
The/D
latest/J
two-year/J
notes/N
were/V
quoted/V
late/R
at/I
100/C
to/T
yield/V
7.84/C
%/N
./.
###/###
Short-term/J
rates/N
rose/V
yesterday/N
at/I
the/D
government/N
's/P
weekly/J
Treasury/N
bill/N
auction/N
,/,
compared/V
with/I
the/D
previous/J
bill/N
sale/N
./.
###/###
The/D
Treasury/N
sold/V
$/$
7.81/C
billion/C
of/I
three-month/J
bills/N
with/I
an/D
average/J
discount/J
rate/N
of/I
7.52/C
%/N
,/,
the/D
highest/J
since/I
the/D
average/N
of/I
7.63/C
%/N
at/I
the/D
auction/N
on/I
Oct./N
10/C
./.
###/###
The/D
$/$
7.81/C
billion/C
of/I
six-month/J
Treasury/N
bills/N
were/V
sold/V
with/I
an/D
average/J
discount/J
rate/N
of/I
7.50/C
%/N
,/,
the/D
highest/J
since/I
the/D
average/N
of/I
7.60/C
%/N
at/I
the/D
Oct./N
10/C
auction/N
./.
###/###
The/D
rates/N
were/V
up/R
from/I
last/J
week/N
's/P
auction/N
,/,
when/W
they/P
were/V
7.37/C
%/N
and/C
7.42/C
%/N
,/,
respectively/R
./.
###/###
Here/R
are/V
auction/N
details/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
./.
###/###
Both/D
issues/N
are/V
dated/V
Oct./N
26/C
./.
###/###
The/D
13-week/J
bills/N
mature/V
Jan./N
25/C
,/,
1990/C
,/,
and/C
the/D
26-week/J
bills/N
mature/V
April/N
26/C
,/,
1990/C
./.
###/###
Investment-grade/J
corporates/N
closed/V
about/R
point/N
higher/J
in/I
quiet/J
trading/N
./.
###/###
In/I
the/D
junk/N
bond/N
market/N
,/,
Imo/N
Industries/N
'/P
issue/N
of/I
12-year/J
debentures/N
,/,
considered/V
to/T
be/V
one/C
of/I
the/D
market/N
's/P
high-quality/J
credits/N
,/,
was/V
priced/V
at/I
par/N
to/T
yield/V
12/C
%/N
./.
###/###
Peter/N
Karches/N
,/,
managing/N
director/N
at/I
underwriter/N
Morgan/N
Stanley/N
&/C
Co./N
,/,
said/V
the/D
issue/N
was/V
oversubscribed/J
./.
###/###
``/`
It/P
's/V
a/D
segmented/J
market/N
,/,
and/C
if/I
you/P
have/V
a/D
good/J
,/,
strong/J
credit/N
,/,
people/N
have/V
an/D
appetite/N
for/I
it/P
,/,
''/'
he/P
said/V
./.
###/###
Morgan/N
Stanley/N
is/V
expected/V
to/T
price/V
another/D
junk/N
bond/N
deal/N
,/,
$/$
350/C
million/C
of/I
senior/J
subordinated/J
debentures/N
by/I
Continental/N
Cablevision/N
Inc./N
,/,
next/J
Tuesday/N
./.
###/###
In/I
light/N
of/I
the/D
recent/J
skittishness/N
in/I
the/D
high-yield/J
market/N
,/,
junk/N
bond/N
analysts/N
and/C
traders/N
expect/V
other/J
high-yield/J
deals/V
to/T
be/V
sweetened/V
or/C
restructured/V
before/I
they/P
are/V
offered/V
to/T
investors/N
./.
###/###
In/I
the/D
case/N
of/I
Beatrice/N
,/,
Salomon/N
Brothers/N
Inc./N
is/V
considering/V
restructuring/V
the/D
reset/J
mechanism/N
on/I
the/D
$/$
200/C
million/C
portion/N
of/I
the/D
offering/N
./.
###/###
Under/I
the/D
originally/R
contemplated/V
terms/N
of/I
the/D
offering/N
,/,
the/D
notes/N
would/M
have/V
been/V
reset/V
annually/R
at/I
a/D
fixed/J
spread/N
above/I
Treasurys/N
./.
###/###
Under/I
the/D
new/J
plan/N
being/V
considered/V
,/,
the/D
notes/N
would/M
reset/V
annually/R
at/I
a/D
rate/N
to/T
maintain/V
a/D
market/N
value/N
of/I
101/C
./.
###/###
Price/N
talk/N
calls/V
for/I
the/D
reset/J
notes/N
to/T
be/V
priced/V
at/I
a/D
yield/N
of/I
between/I
13/C
%/N
and/C
13/C
%/N
./.
###/###
Activity/N
in/I
derivative/J
markets/N
was/V
strong/J
with/I
four/C
new/J
real/J
estate/N
mortgage/N
investment/N
conduits/N
announced/V
and/C
talk/N
of/I
several/J
more/J
deals/N
in/I
today/N
's/P
session/N
./.
###/###
The/D
Federal/N
National/N
Mortgage/N
Association/N
offered/V
$/$
1.2/C
billion/C
of/I
Remic/N
securities/N
in/I
three/C
issues/N
,/,
and/C
the/D
Federal/N
Home/N
Loan/N
Mortgage/N
Corp./N
offered/V
a/D
$/$
250/C
million/C
Remic/N
backed/V
by/I
9/C
%/N
15-year/J
securities/N
./.
###/###
Part/N
of/I
the/D
reason/N
for/I
the/D
heavy/J
activity/N
in/I
derivative/J
markets/N
is/V
that/I
underwriters/N
are/V
repackaging/V
mortgage/N
securities/N
being/V
sold/V
by/I
thrifts/N
./.
###/###
Traders/N
said/V
thrifts/N
have/V
stepped/V
up/R
their/P
mortgage/N
securities/N
sales/N
as/I
the/D
bond/N
market/N
has/V
risen/V
in/I
the/D
past/J
two/C
weeks/N
./.
###/###
In/I
the/D
mortgage/N
pass-through/J
sector/N
,/,
active/J
issues/N
rose/V
but/C
trailed/V
gains/N
in/I
the/D
Treasury/N
market/N
./.
###/###
Government/N
National/N
Mortgage/N
Association/N
9/C
%/N
securities/N
for/I
November/N
delivery/N
were/V
quoted/V
late/R
yesterday/N
at/I
98/C
,/,
up/R
;/:
and/C
Freddie/N
Mac/N
9/C
%/N
securities/N
were/V
at/I
97/C
,/,
up/R
./.
###/###
The/D
Ginnie/N
Mae/N
9/C
%/N
issue/N
was/V
yielding/V
8.36/C
%/N
to/T
a/D
12-year/J
average/J
life/N
assumption/N
,/,
as/I
the/D
spread/N
above/I
the/D
Treasury/N
10-year/J
note/N
widened/V
slightly/R
to/T
1.46/C
percentage/N
points/N
./.
###/###
A/D
$/$
575/C
million/C
San/N
Antonio/N
,/,
Texas/N
,/,
electric/J
and/C
gas/N
system/N
revenue/N
bond/N
issue/N
dominated/V
the/D
new/J
issue/N
sector/N
./.
###/###
The/D
refunding/J
issue/N
,/,
which/W
had/V
been/V
in/I
the/D
wings/N
for/I
two/C
months/N
,/,
was/V
one/C
of/I
the/D
chief/J
offerings/N
overhanging/V
the/D
market/N
and/C
limiting/V
price/N
appreciation/N
./.
###/###
But/C
alleviating/V
that/D
overhang/N
failed/V
to/T
stimulate/V
much/J
activity/N
in/I
the/D
secondary/J
market/N
,/,
where/W
prices/N
were/V
off/R
to/T
up/R
point/N
./.
###/###
An/D
official/N
with/I
lead/J
underwriter/N
First/N
Boston/N
said/V
orders/N
for/I
the/D
San/N
Antonio/N
bonds/N
were/V
``/`
on/I
the/D
slow/J
side/N
./.
''/'
###/###
He/P
attributed/V
that/D
to/T
the/D
issue/N
's/P
aggressive/J
pricing/N
and/C
large/J
size/N
,/,
as/R
well/R
as/I
the/D
general/J
lethargy/N
in/I
the/D
municipal/J
marketplace/N
./.
###/###
In/I
addition/N
,/,
he/P
noted/V
,/,
the/D
issue/N
would/M
normally/R
be/V
the/D
type/N
purchased/V
by/I
property/N
and/C
casualty/N
insurers/N
,/,
but/C
recent/J
disasters/N
,/,
such/J
as/I
Hurricane/N
Hugo/N
and/C
the/D
Northern/N
California/N
earthquake/N
,/,
have/V
stretched/V
insurers/N
'/P
resources/N
and/C
damped/V
their/P
demand/N
for/I
bonds/N
./.
###/###
A/D
$/$
137.6/C
million/C
Maryland/N
Stadium/N
Authority/N
sports/N
facilities/N
lease/N
revenue/N
bond/N
issue/N
appeared/V
to/T
be/V
off/I
to/T
a/D
good/J
start/N
./.
###/###
The/D
issue/N
was/V
oversubscribed/J
and/C
``/`
doing/V
very/R
well/R
,/,
''/'
according/V
to/T
an/D
official/N
with/I
lead/J
underwriter/N
Morgan/N
Stanley/N
./.
###/###
Activity/N
quieted/V
in/I
the/D
New/N
York/N
City/N
bond/N
market/N
,/,
where/W
heavy/J
investor/N
selling/N
last/J
week/N
drove/V
yields/N
on/I
the/D
issuer/N
's/P
full/J
faith/N
and/C
credit/N
backed/V
bonds/N
up/R
as/R
much/J
as/I
0.50/C
percentage/N
point/N
./.
###/###
Japanese/J
government/N
bonds/N
ended/V
lower/J
after/I
the/D
dollar/N
rose/V
modestly/R
against/I
the/D
yen/N
./.
###/###
The/D
turnaround/N
in/I
the/D
dollar/N
fueled/V
bearish/J
sentiment/N
about/I
Japan/N
's/P
bond/N
market/N
./.
###/###
The/D
benchmark/J
No./N
111/C
4.6/C
%/N
bond/N
due/J
1998/C
ended/V
on/I
brokers/N
'/P
screens/N
at/I
a/D
price/N
of/I
95.39/C
,/,
off/R
0.28/C
./.
###/###
The/D
yield/N
rose/V
to/T
5.38/C
%/N
./.
###/###
West/J
German/J
bond/N
prices/N
ended/V
lower/J
after/I
a/D
day/N
of/I
aimless/J
trading/N
./.
###/###
The/D
benchmark/J
7/C
%/N
bond/N
due/J
October/N
1999/C
fell/V
0.20/C
point/N
to/T
99.80/C
to/T
yield/V
7.03/C
%/N
,/,
while/I
the/D
6/C
%/N
notes/N
due/J
July/N
1994/C
fell/V
0.10/C
to/T
97.65/C
to/T
yield/V
7.34/C
%/N
./.
###/###
British/J
government/N
bonds/N
ended/V
slightly/R
higher/J
in/I
quiet/J
trading/N
as/I
investors/N
looked/V
ahead/R
to/T
today/N
's/P
British/J
trade/N
report/N
./.
###/###
The/D
benchmark/J
11/C
%/N
Treasury/N
bond/N
due/J
rose/V
to/T
111/C
to/T
yield/V
10.11/C
%/N
,/,
while/I
the/D
12/C
%/N
issue/N
of/I
1995/C
rose/V
to/T
103/C
to/T
yield/V
11.01/C
%/N
./.
###/###
The/D
croaker/N
's/V
done/V
gone/V
from/I
the/D
hook/N
--/:
damn/U
My/P
language/N
sure/R
goes/V
to/T
pot/V
down/R
here/R
on/I
the/D
coast/N
./.
''/'
###/###
The/D
husky/J
blond/J
guide/N
with/I
the/D
Aggie/N
cap/N
twists/V
his/P
face/N
in/I
mock/J
fury/N
./.
###/###
I/P
got/V
to/T
get/V
back/R
to/T
school/V
and/C
straighten/V
out/R
my/P
English/N
./.
''/'
###/###
He/P
has/V
two/C
more/J
years/N
at/I
Texas/N
A&M/N
./.
###/###
Right/R
now/R
he/P
takes/V
people/N
out/I
to/T
fish/R
in/I
the/D
bays/N
behind/I
the/D
barrier/N
islands/V
that/W
curve/N
for/I
hundreds/N
of/I
miles/N
along/I
the/D
eastern/J
coast/N
of/I
Texas/N
,/,
enclosing/V
milky/J
green/J
lagoons/N
behind/I
ridges/N
of/I
sand/N
and/C
grassy/J
scrub/N
that/W
rim/V
the/D
deep/J
blue/N
of/I
the/D
Gulf/N
beyond/R
./.
###/###
There/E
have/V
been/V
three/C
days/N
of/I
hot/J
,/,
wind-swept/J
rain/N
,/,
and/C
now/R
with/I
the/D
first/J
sun/N
we/P
are/V
after/I
speckled/J
seatrout/N
,/,
which/W
with/I
redfish/N
provides/V
most/J
of/I
the/D
game/N
fishing/N
hereabouts/R
./.
###/###
The/D
little/J
radio/N
fizzes/V
as/I
other/J
boats/N
want/V
to/T
see/V
if/I
we/P
have/V
found/V
any/D
fish/N
--/:
spotting/V
location/N
is/V
everything/N
in/I
this/D
sport/N
./.
###/###
Negative/J
answers/N
crackle/V
back/R
./.
###/###
The/D
fish/N
often/R
are/V
plentiful/J
around/I
the/D
pilings/N
of/I
the/D
old/J
gas/N
wells/N
that/W
dot/V
the/D
flat/J
surface/N
like/I
the/D
remains/N
of/I
sunken/J
ships/N
./.
###/###
We/P
go/V
from/I
one/C
to/T
the/D
other/J
./.
###/###
The/D
sun/N
is/V
hot/J
now/R
though/I
it/P
's/V
only/R
8/C
in/I
the/D
morning/N
./.
###/###
The/D
great/J
silver/J
clouds/N
on/I
the/D
horizon/N
build/V
themselves/P
on/I
the/D
pale/J
water/N
./.
###/###
We/P
cruise/V
toward/I
another/D
set/N
of/I
pilings/N
./.
###/###
The/D
guide/N
scoops/V
into/I
a/D
pail/N
and/C
puts/V
a/D
frantically/R
wiggling/V
croaker/N
on/I
the/D
hook/N
./.
###/###
Then/R
he/P
casts/V
out/R
./.
###/###
Just/R
wait/V
for/I
that/D
tap-tap/N
,/,
that/D
thump-thump/N
./.
###/###
It/P
comes/V
real/R
gentle/J
before/I
it/P
pulls/V
./.
###/###
Do/V
n't/R
forget/V
,/,
trout/N
have/V
very/R
soft/J
mouths/N
./.
''/'
###/###
The/D
radio/N
queries/V
again/R
./.
###/###
``/`
Pickin/V
'/'
one/C
or/C
two/C
,/,
''/'
says/V
the/D
guide/N
,/,
chuckling/V
./.
###/###
You/P
can/M
tell/V
they/P
've/V
got/V
nothin/N
'/'
./.
''/'
###/###
A/D
pair/N
of/I
black/J
skimmers/N
zig-zag/V
past/R
close/R
to/T
the/D
surface/N
./.
###/###
Soon/R
we/P
have/V
our/P
limit/N
of/I
the/D
shimmering/J
fish/N
stippled/J
in/I
rose-gold/N
and/C
black/N
./.
###/###
And/C
we/P
are/V
the/D
first/J
back/R
at/I
the/D
dock/N
,/,
where/W
the/D
great/J
blue/J
herons/N
stand/V
waiting/V
by/I
the/D
cleaning/N
benches/N
./.
###/###
The/D
guide/N
is/V
young/J
and/C
he/P
knows/V
this/D
business/N
but/C
he/P
wants/V
a/D
different/J
life/N
after/I
college/N
,/,
such/J
as/I
working/V
for/I
IBM/N
and/C
wearing/V
a/D
necktie/N
./.
###/###
This/D
must/M
be/V
the/D
last/J
big/J
stretch/N
of/I
the/D
American/J
seacoast/N
that/W
is/V
``/`
undeveloped/J
./.
''/'
###/###
There/E
are/V
a/D
few/J
ramshackle/J
fishing/N
towns/N
with/I
quiet/J
atolls/N
of/I
resort/N
houses/N
nearby/R
./.
###/###
People/N
are/V
not/R
apt/J
to/T
be/V
self-conscious/J
about/I
the/D
place/N
or/C
themselves/P
./.
###/###
Texas/N
is/V
big/J
and/C
beautiful/J
and/C
they/P
live/V
here/R
,/,
that/D
's/V
all/D
./.
###/###
Jutting/V
out/R
just/R
to/T
the/D
north/N
of/I
us/P
is/V
the/D
Blackjack/N
Peninsula/N
-LRB-/-
after/I
the/D
oak/N
,/,
not/R
the/D
game/N
-RRB-/-
which/W
forms/V
the/D
core/N
of/I
the/D
Aransas/N
Wildlife/N
Refuge/N
./.
###/###
It/P
is/V
famous/J
as/I
the/D
winter/N
home/N
of/I
the/D
whooping/V
crane/N
,/,
that/I
symbol/N
of/I
the/D
destruction/N
of/I
wild/J
America/N
./.
###/###
Last/J
year/N
a/D
gunner/N
shot/V
a/D
whooper/N
by/I
mistake/N
thinking/V
that/I
it/P
was/V
a/D
snow/N
goose/N
./.
###/###
He/P
paid/V
an/D
immense/J
fine/N
and/C
was/V
lucky/J
,/,
according/V
to/T
a/D
local/J
wag/N
,/,
to/T
escape/V
the/D
gas/N
chamber/N
./.
###/###
The/D
peninsula/N
comes/V
off/I
the/D
vast/J
southeastern/J
alluvial/J
plain/N
with/I
fields/N
of/I
rice/N
and/C
cotton/N
and/C
sorghum/N
as/R
far/R
as/I
the/D
eye/N
can/M
see/V
./.
###/###
Near/I
the/D
coast/N
there/E
are/V
dense/J
coverts/N
of/I
live/J
oak/N
interspersed/V
with/I
marshes/N
and/C
prairies/N
./.
###/###
Deer/N
,/,
wild/J
hog/N
,/,
armadillos/N
and/C
alligators/N
are/V
the/D
glamour/N
quadrupeds/N
and/C
the/D
birds/N
are/V
innumerable/J
,/,
especially/R
the/D
herons/N
and/C
the/D
spoonbills/N
./.
###/###
Above/I
the/D
blossoms/N
of/I
lantana/N
and/C
scarlet/J
pea/N
the/D
inky-brown/J
and/C
golden/J
palamedes/N
butterfly/N
floats/V
on/I
its/P
lazy/J
wingbeat/N
./.
###/###
Inland/R
a/D
few/J
miles/N
from/I
the/D
refuge/N
there/E
is/V
a/D
place/N
called/V
Tivoli/N
,/,
with/I
a/D
white/J
church/N
,/,
a/D
gas/N
station/N
and/C
a/D
grocery/N
,/,
the/D
houses/N
relatively/R
close/R
together/R
for/I
such/P
a/D
settlement/N
in/I
these/D
parts/N
./.
###/###
``/`
Tivoli/N
Motel/N
,/,
''/'
I/P
read/V
a/D
sign/N
in/I
the/D
usual/J
pronunciation/N
of/I
the/D
name/N
as/I
we/P
whoosh/V
through/R
./.
###/###
``/`
Here/R
in/I
south/J
Texas/N
we/P
say/V
Tie-vole-ee/N
,/,
''/'
my/P
host/N
gently/R
corrects/V
./.
###/###
Mr./N
King/N
is/V
the/D
director/N
of/I
the/D
Foreign/N
Press/N
Center/N
in/I
New/N
York/N
./.
###/###
AEG/N
AG/N
and/C
Siemens/N
AG/N
said/V
they/P
will/M
launch/V
their/P
previously/R
announced/V
joint/J
venture/N
for/I
power/N
semiconductors/N
in/I
January/N
./.
###/###
The/D
two/C
West/J
German/J
electronics/N
concerns/N
said/V
they/P
have/V
set/V
up/R
European/N
Power/N
Semiconductor/N
Co./N
to/T
merge/V
their/P
activities/N
in/I
the/D
field/N
./.
###/###
AEG/N
and/C
Siemens/N
each/D
will/M
hold/V
a/D
50/C
%/N
stake/N
in/I
the/D
venture/N
./.
###/###
The/D
joint/J
venture/N
will/M
have/V
nominal/J
capital/N
of/I
50/C
million/C
marks/N
-LRB-/-
$/$
26.9/C
million/C
-RRB-/-
and/C
700/C
employees/N
./.
###/###
It/P
will/M
develop/V
,/,
produce/V
and/C
market/V
high-performance/J
electronic/J
parts/N
./.
###/###
Siemens/N
is/V
West/N
Germany/N
's/P
largest/J
electronics/N
group/N
./.
###/###
AEG/N
is/V
80/C
%/N
owned/V
by/I
Daimler-Benz/N
AG/N
,/,
the/D
country/N
's/P
biggest/J
industrial/J
concern/N
./.
###/###
Dana/N
Corp./N
said/V
its/P
third-quarter/J
net/J
income/N
fell/V
27/C
%/N
to/T
$/$
29.6/C
million/C
,/,
or/C
72/C
cents/N
a/D
share/N
,/,
from/I
$/$
40.7/C
million/C
,/,
or/C
$/$
1/C
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Sales/N
dropped/V
4/C
%/N
to/T
$/$
1.12/C
billion/C
from/I
$/$
1.17/C
billion/C
./.
###/###
The/D
company/N
,/,
which/W
supplies/V
transmissions/N
and/C
other/J
drive-train/N
parts/N
to/T
auto/N
makers/N
,/,
said/V
about/R
half/P
the/D
earnings/N
drop/N
came/V
from/I
the/D
``/`
virtual/J
collapse/N
''/'
of/I
the/D
Venezuelan/J
auto/N
industry/N
./.
###/###
The/D
Venezuelan/J
currency/N
plummeted/V
this/D
year/N
,/,
making/V
it/P
difficult/J
for/I
auto/N
makers/N
there/R
to/T
afford/V
imported/J
parts/N
./.
###/###
Dana/N
also/R
said/V
it/P
was/V
hurt/V
by/I
slumping/J
U.S./N
truck/N
sales/N
and/C
by/I
a/D
strike/N
at/I
a/D
parts/N
supplier/N
./.
###/###
The/D
company/N
,/,
based/V
in/I
Toledo/N
,/,
Ohio/N
,/,
had/V
said/V
it/P
expected/V
reduced/J
third-quarter/J
profit/N
./.
###/###
Mary/N
Anne/N
Sudol/N
,/,
an/D
analyst/N
at/I
Fitch/N
Investors/N
in/I
New/N
York/N
,/,
said/V
automotive/J
suppliers/N
were/V
reporting/V
lower/J
profit/N
almost/R
``/`
across/I
the/D
board/N
./.
''/'
###/###
Southwood/N
J./N
Morcott/N
,/,
Dana/N
's/P
president/N
,/,
said/V
the/D
company/N
's/P
decision/N
to/T
approve/V
its/P
normal/J
fourth-quarter/J
dividend/N
indicated/V
its/P
underlying/J
strength/N
./.
###/###
Norimasa/N
Furuta/N
,/,
president/N
of/I
Japan/N
's/P
Mazda/N
Motor/N
Corp./N
,/,
said/V
the/D
Japanese/J
car/N
maker/N
is/V
planning/V
joint/J
production/N
with/I
Ford/N
Motor/N
Co./N
in/I
Europe/N
ahead/R
of/I
the/D
European/N
Community/N
's/P
1992/C
integration/N
./.
###/###
Mr./N
Furuta/N
did/V
n't/R
disclose/V
further/J
details/N
of/I
the/D
arrangement/N
at/I
a/D
news/N
conference/N
,/,
but/C
said/V
the/D
project/N
would/M
be/V
undertaken/V
with/I
Ford/N
's/P
European/J
subsidiary/N
./.
###/###
A/D
Ford/N
official/N
confirmed/V
in/I
Tokyo/N
that/I
the/D
U.S./N
motor/N
vehicle/N
maker/N
is/V
studying/V
such/P
an/D
arrangement/N
./.
###/###
At/I
age/N
eight/C
,/,
Josephine/N
Baker/N
was/V
sent/V
by/I
her/P
mother/N
to/T
a/D
white/J
woman/N
's/P
house/N
to/T
do/V
chores/N
in/I
exchange/N
for/I
meals/N
and/C
a/D
place/N
to/T
sleep/V
--/:
a/D
place/N
in/I
the/D
basement/N
with/I
the/D
coal/N
./.
###/###
At/I
age/N
19/C
,/,
she/P
was/V
a/D
Paris/N
sensation/N
,/,
transformed/V
from/I
unwanted/J
child/N
to/T
international/J
sex/N
symbol/N
in/I
just/R
over/I
a/D
decade/N
./.
###/###
It/P
is/V
the/D
stuff/N
of/I
dreams/N
,/,
but/C
also/R
of/I
traumas/N
./.
###/###
Only/R
the/D
bravest/J
spirits/N
survive/V
such/J
roller/N
coasters/N
./.
###/###
And/C
,/,
for/I
Ms./N
Baker/N
,/,
the/D
ride/N
was/V
far/R
from/I
over/R
./.
###/###
Her/P
bare/J
breasts/N
,/,
her/P
dancing/N
,/,
her/P
voice/N
,/,
her/P
beauty/N
and/C
,/,
perhaps/R
most/R
famously/R
,/,
her/P
derriere/N
,/,
were/V
prominent/J
attractions/N
,/,
but/C
courage/N
of/I
a/D
rare/J
sort/N
made/V
her/P
remarkable/J
life/N
possible/J
./.
###/###
Bricktop/N
,/,
another/D
American/J
black/J
woman/N
who/W
found/V
a/D
measure/N
of/I
fame/N
in/I
Paris/N
,/,
said/V
:/:
``/`
I/P
do/V
n't/R
think/V
I/P
've/V
ever/R
known/V
anyone/N
with/I
a/D
less/R
complicated/J
view/N
of/I
life/N
,/,
or/C
whose/W
life/N
was/V
more/R
complicated/J
than/I
Josephine/N
's/P
./.
''/'
###/###
Men/N
were/V
a/D
constant/J
complication/N
./.
###/###
Baker/N
had/V
lots/N
of/I
them/P
./.
###/###
But/C
she/P
did/V
n't/R
trust/V
them/P
and/C
did/V
n't/R
reward/V
trust/N
./.
###/###
As/I
she/P
saw/V
one/C
key/J
love/N
affair/N
,/,
the/D
problem/N
was/V
n't/R
her/P
infidelity/N
,/,
it/P
was/V
his/P
jealousy/N
./.
###/###
Her/P
appetite/N
for/I
children/N
also/R
was/V
large/J
./.
###/###
She/P
adopted/V
12/C
of/I
assorted/J
races/N
,/,
naming/V
them/P
the/D
Rainbow/N
Tribe/N
,/,
and/C
driving/V
her/P
husband/N
first/R
to/T
despair/N
and/C
then/R
to/T
Argentina/N
./.
###/###
She/P
made/V
money/N
,/,
but/C
spent/V
more/J
./.
###/###
Friends/N
pitched/V
in/R
./.
###/###
Finally/R
,/,
Prince/N
Rainier/N
and/C
Princess/N
Grace/N
saved/V
her/P
with/I
the/D
offer/N
of/I
a/D
house/N
in/I
Monaco/N
./.
###/###
Another/D
lifelong/J
complication/N
,/,
as/I
Phyllis/N
Rose/N
makes/V
clear/J
in/I
``/`
Jazz/N
Cleopatra/N
:/:
Josephine/N
Baker/N
in/I
Her/P
Time/N
''/'
-LRB-/-
Doubleday/N
,/,
321/C
pages/N
,/,
$/$
22.50/C
-RRB-/-
,/,
was/V
racism/N
./.
###/###
Baker/N
had/V
the/D
good/J
luck/N
to/T
arrive/V
in/I
1925/C
Paris/N
,/,
where/W
blacks/N
had/V
become/V
exotic/J
./.
###/###
African/J
art/N
was/V
in/I
vogue/N
and/C
some/D
intellectuals/N
were/V
writing/V
breathlessly/R
of/I
a/D
dawning/V
age/N
to/T
be/V
inspired/V
by/I
blacks/N
./.
###/###
To/T
be/V
exotic/J
was/V
to/T
be/V
patronized/V
as/R
well/R
as/I
prized/V
,/,
but/C
for/I
the/D
most/J
part/N
Paris/N
was/V
a/D
friendly/J
island/N
in/I
a/D
racist/J
world/N
./.
###/###
Baker/N
had/V
bitter/J
experience/N
of/I
bigotry/N
from/I
her/P
St./N
Louis/N
childhood/N
and/C
her/P
days/N
in/I
New/N
York/N
theater/N
,/,
where/W
she/P
was/V
judged/V
too/R
dark/J
for/I
an/D
all-black/J
chorus/N
line/N
-LRB-/-
performing/V
of/I
course/N
for/I
all-white/J
audiences/N
-RRB-/-
./.
###/###
Paris/N
loved/V
her/P
at/I
first/J
sight/N
./.
###/###
``/`
She/P
just/R
wiggled/V
her/P
fanny/N
and/C
all/P
the/D
French/N
fell/V
in/I
love/N
with/I
her/P
,/,
''/'
sniffed/V
the/D
literary/J
world/N
's/P
Maria/N
Jolas/N
,/,
not/R
entirely/R
inaccurately/R
./.
###/###
``/`
One/P
can/M
hardly/R
overemphasize/V
the/D
importance/N
of/I
her/P
rear/J
end/N
,/,
''/'
Ms./N
Rose/N
writes/V
./.
###/###
Ms./N
Rose/N
,/,
who/W
teaches/V
literature/N
at/I
Wesleyan/N
University/N
,/,
quickly/R
proceeds/V
to/T
overemphasize/V
,/,
claiming/V
that/I
Baker/N
's/P
dancing/N
``/`
had/V
uncovered/V
a/D
new/J
region/N
for/I
desire/N
''/'
and/C
thereby/R
ignoring/V
centuries/N
of/I
tributes/N
to/T
the/D
callipygous/N
./.
###/###
``/`
Jazz/N
Cleopatra/N
''/'
contains/V
other/J
,/,
more/R
important/J
,/,
false/J
notes/N
that/W
undermine/V
what/W
is/V
,/,
for/I
the/D
most/J
part/N
,/,
a/D
lively/J
account/N
of/I
a/D
life/N
already/R
familiar/J
from/I
earlier/J
works/N
./.
###/###
It/P
is/V
easy/J
to/T
see/V
why/W
Baker/N
,/,
a/D
free/J
spirit/N
who/W
broke/V
many/J
of/I
the/D
restraints/N
convention/N
places/V
on/I
women/N
,/,
attracts/V
Ms./N
Rose/N
,/,
the/D
author/N
of/I
``/`
Parallel/J
Lives/N
,/,
''/'
a/D
wonderful/J
study/N
of/I
Victorian/J
marriage/N
./.
###/###
Still/R
,/,
even/R
the/D
title/N
raises/V
questions/N
about/I
the/D
author/N
's/P
vision/N
of/I
her/P
subject/N
./.
###/###
Baker/N
's/P
art/N
was/V
jazz/N
only/R
by/I
the/D
widest/J
stretch/N
of/I
the/D
term/N
./.
###/###
To/T
find/V
parallels/N
,/,
other/J
than/I
sexual/J
appeal/N
,/,
with/I
Cleopatra/N
,/,
requires/V
an/D
equal/J
stretch/N
./.
###/###
Baker/N
was/V
68/C
years/N
old/J
when/W
she/P
died/V
in/I
Paris/N
,/,
two/C
days/N
after/I
the/D
sold-out/J
opening/N
of/I
her/P
newest/J
show/N
:/:
a/D
movie-like/J
ending/N
to/T
what/W
was/V
a/D
cinematic/J
life/N
./.
###/###
In/I
fact/N
,/,
Ms./N
Baker/N
played/V
scenes/N
in/I
Casablanca/N
that/W
could/M
have/V
made/V
it/P
into/I
``/`
Casablanca/N
./.
''/'
###/###
During/I
World/N
War/N
II/N
,/,
her/P
uncomplicated/J
view/N
of/I
life/N
led/V
her/P
to/T
the/D
conclusion/N
that/I
the/D
Nazis/N
were/V
evil/J
and/C
must/M
be/V
resisted/V
,/,
a/D
decision/N
made/V
by/I
only/R
about/R
2/C
%/N
of/I
French/J
citizens/N
./.
###/###
She/P
was/V
devoted/J
to/T
Charles/N
de/I
Gaulle/N
's/P
cause/N
,/,
accepting/V
great/J
financial/J
sacrifice/N
and/C
considerable/J
risk/N
to/T
become/V
first/R
a/D
spy/N
and/C
then/R
a/D
one-woman/J
USO/N
tour/N
for/I
the/D
forces/N
of/I
Free/N
France/N
./.
###/###
In/I
Humphrey/N
Bogart/N
's/P
nightclub/N
,/,
Victor/N
Laszlo/N
leads/V
Free/N
French/N
sympathizers/N
in/I
``/`
La/N
Marseillaise/N
''/'
to/T
drown/V
out/R
the/D
Nazis/N
./.
###/###
The/D
night/N
the/D
Germans/N
occupied/V
all/D
of/I
France/N
,/,
Baker/N
performed/V
in/I
Casablanca/N
./.
###/###
The/D
Free/N
French/N
wore/V
black/J
arm/N
bands/N
,/,
and/C
when/W
she/P
sang/V
``/`
J'ai/F
J'ai/F
deux/F
amours/F
''/'
they/P
wept/V
./.
###/###
Ms./N
Rose/N
is/V
best/J
on/I
the/D
early/J
years/N
and/C
World/N
War/N
II/N
./.
###/###
In/I
her/P
introduction/N
,/,
Ms./N
Rose/N
writes/V
that/I
she/P
feels/V
she/P
has/V
much/J
in/I
common/N
with/I
Baker/N
,/,
but/C
as/I
``/`
Jazz/N
Cleopatra/N
''/'
goes/V
on/R
,/,
it/P
seems/V
more/R
rushed/V
,/,
as/I
though/I
the/D
author/N
were/V
growing/V
less/R
interested/J
./.
###/###
It/P
does/V
n't/R
help/V
that/I
sometimes/R
Ms./N
Rose/N
's/P
language/N
fails/V
to/T
deliver/V
the/D
effect/N
she/P
appears/V
to/T
want/V
./.
###/###
One/C
chapter/N
opens/V
:/:
``/`
World/N
War/N
II/N
was/V
not/R
one/C
of/I
France/N
's/P
glorious/J
moments/N
./.
''/'
###/###
Elsewhere/R
,/,
in/I
an/D
attempt/N
to/T
explain/V
without/I
stating/V
it/P
plainly/R
that/I
Baker/N
had/V
a/D
large/J
gay/J
following/N
later/R
in/I
her/P
career/N
when/W
she/P
was/V
an/D
overdressed/J
singer/N
rather/R
than/I
underdressed/J
dancer/N
,/,
Ms./N
Rose/N
writes/V
:/:
``/`
She/P
was/V
a/D
female/J
impersonator/N
who/W
happened/V
to/T
be/V
a/D
woman/N
./.
''/'
###/###
One/C
devoted/J
fan/N
who/W
fell/V
under/I
Baker/N
's/P
spell/N
in/I
1963/C
and/C
began/V
collecting/V
Baker/N
memorabilia/N
was/V
Bryan/N
Hammond/N
./.
###/###
In/I
``/`
Josephine/N
Baker/N
''/'
-LRB-/-
Jonathan/N
Cape/N
,/,
304/C
pages/N
,/,
$/$
35/C
-RRB-/-
,/,
which/W
was/V
published/V
in/I
Britain/N
last/J
year/N
and/C
distributed/V
in/I
the/D
U.S./N
this/D
month/N
,/,
Mr./N
Hammond/N
has/V
used/V
his/P
collection/N
to/T
produce/V
an/D
album/N
of/I
photographs/N
and/C
drawings/N
of/I
the/D
star/N
./.
###/###
The/D
text/N
by/I
Patrick/N
O'Connor/N
is/V
a/D
tough/J
read/N
,/,
but/C
the/D
pictures/N
make/V
her/P
magnetism/N
clear/J
and/C
help/V
explain/V
why/W
Ernest/N
Hemingway/N
called/V
Baker/N
``/`
The/D
most/R
sensational/J
woman/N
anybody/N
ever/R
saw/V
./.
###/###
Or/C
ever/R
will/M
./.
''/'
###/###
Mr./N
Lescaze/N
is/V
foreign/J
editor/N
of/I
the/D
Journal/N
./.
###/###
Manville/N
,/,
having/V
rid/V
itself/P
of/I
asbestos/N
,/,
now/R
sells/V
fiberglass/N
,/,
forest/N
products/N
,/,
minerals/N
and/C
industrial/J
goods/N
./.
###/###
Heady/J
stuff/N
it/P
's/V
not/R
./.
###/###
But/C
Manville/N
's/P
ownership/N
is/V
unusual/J
,/,
and/C
it/P
has/V
caught/V
the/D
eye/N
of/I
some/D
canny/J
--/:
and/C
patient/J
--/:
investors/N
./.
###/###
The/D
Denver-based/J
concern/N
,/,
which/W
emerged/V
from/I
bankruptcy-law/N
proceedings/N
late/R
last/J
year/N
,/,
is/V
controlled/V
by/I
the/D
Manville/N
Personal/N
Injury/N
Settlement/N
Trust/N
./.
###/###
The/D
trust/N
,/,
which/W
owns/V
80/C
%/N
of/I
Manville/N
's/P
stock/N
on/I
a/D
fully/R
diluted/V
basis/N
,/,
is/V
a/D
separate/J
legal/J
entity/N
that/W
is/V
settling/V
claims/N
with/I
asbestos/N
victims/N
./.
###/###
When/W
and/C
if/I
the/D
trust/N
runs/V
out/I
of/I
cash/N
--/:
which/W
seems/V
increasingly/R
likely/J
--/:
it/P
will/M
need/V
to/T
convert/V
its/P
Manville/N
stock/N
to/T
cash/N
./.
###/###
But/C
as/I
an/D
80/C
%/N
owner/N
,/,
if/I
it/P
tried/V
to/T
sell/V
much/J
of/I
its/P
stock/N
in/I
the/D
market/N
,/,
it/P
would/M
likely/R
depress/V
the/D
price/N
of/I
its/P
shares/N
./.
###/###
Some/D
investors/N
say/V
there/E
is/V
a/D
good/J
chance/N
that/I
the/D
trust/N
will/N
,/,
instead/R
,/,
seek/V
to/T
convert/V
the/D
company/N
's/P
shares/N
to/T
cash/N
,/,
in/I
some/D
sort/N
of/I
friendly/J
restructuring/N
that/W
would/M
n't/R
involve/V
just/R
dumping/V
stock/N
on/I
the/D
market/N
./.
###/###
``/`
Their/P
principal/J
asset/N
is/V
Manville/N
common/J
stock/N
,/,
''/'
says/V
Jeffrey/N
Halis/N
,/,
who/W
runs/V
Sabre/N
Associates/N
,/,
an/D
investment/N
fund/N
that/W
owns/V
Manville/N
shares/N
./.
###/###
If/I
they/P
tried/V
to/T
sell/V
,/,
they/P
'd/M
be/V
chasing/V
their/P
own/J
tail/N
./.
###/###
What/W
makes/V
the/D
most/J
sense/N
is/V
to/T
find/V
someone/N
who/W
wants/V
to/T
buy/V
the/D
whole/J
company/N
or/C
cause/V
a/D
recapitalization/N
of/I
all/D
shares/N
./.
''/'
###/###
The/D
trust/N
is/V
n't/R
commenting/V
on/I
when/W
it/P
might/M
need/V
to/T
liquefy/V
its/P
Manville/N
stock/N
./.
###/###
However/R
,/,
the/D
trust/N
's/P
cash/N
flow/N
from/I
investments/N
is/V
far/R
short/R
of/I
its/P
payments/N
to/T
asbestos/N
victims/N
./.
###/###
Its/P
cash/N
and/C
liquid/J
securities/N
fell/V
by/I
$/$
338/C
million/C
in/I
the/D
first/J
six/C
months/N
of/I
1989/C
./.
###/###
The/D
trust/N
also/R
will/M
receive/V
$/$
75/C
million/C
a/D
year/N
starting/V
in/I
1991/C
on/I
a/D
bond/N
it/P
holds/V
from/I
Manville/N
./.
###/###
And/C
,/,
beginning/V
in/I
1992/C
,/,
it/P
will/M
have/V
a/D
claim/N
on/I
as/R
much/J
as/I
20/C
%/N
of/I
Manville/N
's/P
annual/J
net/J
income/N
./.
###/###
Even/R
so/R
,/,
the/D
trust/N
would/M
seem/V
to/T
be/V
facing/V
a/D
cash/N
crunch/N
./.
###/###
As/I
of/I
June/N
30/C
,/,
it/P
had/V
settled/V
only/R
about/R
15,000/C
of/I
the/D
81,000/C
received/V
claims/N
from/I
asbestos/N
victims/N
,/,
for/I
an/D
average/N
of/I
$/$
40,424/C
each/D
./.
###/###
The/D
average/N
should/M
drop/V
over/I
time/N
,/,
since/I
the/D
most/R
expensive/J
claims/N
are/V
being/V
settled/V
first/R
-RRB-/-
./.
###/###
And/C
as/I
of/I
midyear/N
,/,
settled/J
but/C
unpaid/J
claims/N
amounted/V
to/T
$/$
136/C
million/C
--/:
more/J
than/I
half/P
the/D
trust/N
's/P
total/N
of/I
$/$
268/C
million/C
in/I
cash/N
and/C
marketable/J
securities/N
./.
###/###
``/`
At/I
some/D
point/N
,/,
we/P
're/V
going/V
to/T
need/V
an/D
infusion/N
of/I
funds/N
,/,
''/'
a/D
person/N
close/R
to/T
the/D
trust/N
says/V
./.
###/###
Even/R
before/I
then/R
,/,
the/D
trust/N
may/M
be/V
eager/J
to/T
unload/V
Manville/N
stock/N
./.
###/###
It/P
does/V
n't/R
pay/V
a/D
dividend/N
,/,
and/C
this/D
trust/N
needs/V
income/N
./.
###/###
Moreover/R
,/,
with/I
88/C
%/N
of/I
its/P
assets/N
tied/V
up/R
in/I
Manville/N
,/,
the/D
trust/N
is/V
badly/R
in/I
need/N
of/I
diversification/N
./.
###/###
``/`
Obviously/R
,/,
a/D
diversified/J
portfolio/N
would/M
have/V
less/J
risk/N
,/,
''/'
the/D
person/N
close/R
to/T
the/D
trust/N
says/V
./.
###/###
Manville/N
itself/P
does/V
n't/R
rule/V
out/R
a/D
restructuring/N
./.
###/###
Though/I
the/D
ink/N
is/V
barely/R
dry/J
on/I
its/P
new/J
,/,
post-bankruptcy/J
law/N
structure/N
,/,
Bill/N
Bullock/N
,/,
Manville/N
's/P
head/N
of/I
investor/N
relations/N
,/,
says/V
the/D
company/N
is/V
continually/R
pondering/V
``/`
whether/I
there/E
is/V
a/D
better/J
way/N
to/T
be/V
structured/V
./.
###/###
We/P
understand/V
that/I
the/D
trust/N
is/V
ultimately/R
going/V
to/T
need/V
to/T
sell/V
some/D
of/I
our/P
shares/N
,/,
''/'
he/P
says/V
./.
###/###
Of/I
course/N
,/,
one/C
option/N
would/M
be/V
for/I
Manville/N
to/T
buy/V
out/R
the/D
trust/N
's/P
shares/N
--/:
which/W
would/M
do/V
little/J
to/T
benefit/V
public/J
stockholders/N
./.
###/###
But/C
the/D
trust/N
,/,
in/I
most/J
cases/N
,/,
is/V
forbidden/V
from/I
seeking/V
a/D
buyer/N
for/I
only/R
its/P
shares/N
before/I
November/N
1993/C
./.
###/###
And/C
both/C
the/D
trust/N
and/C
Manville/N
are/V
seeking/V
to/T
avoid/V
the/D
bad/J
publicity/N
that/I
,/,
in/I
the/D
asbestos/N
era/N
,/,
tarred/V
the/D
Manville/N
name/N
./.
###/###
Thus/R
,/,
analysts/N
say/V
,/,
the/D
trust/N
is/V
unlikely/J
to/T
do/V
anything/N
that/W
would/M
hurt/V
Manville/N
's/P
other/J
shareholders/N
./.
###/###
``/`
This/D
is/V
a/D
rare/J
case/N
of/I
a/D
company/N
with/I
a/D
big/J
majority/N
holder/N
which/W
will/M
probably/R
act/V
in/I
the/D
interests/N
of/I
the/D
minority/N
holders/N
,/,
''/'
one/C
investor/N
says/V
./.
###/###
Even/R
if/I
there/E
is/V
no/D
restructuring/N
,/,
Manville/N
seems/V
to/T
be/V
attractive/J
long-term/R
./.
###/###
Its/P
stock/N
,/,
at/I
9/C
,/,
trades/V
at/I
about/R
8/C
times/N
estimated/J
1989/C
earnings/N
--/:
an/D
appropriately/R
low/J
multiple/N
for/I
a/D
company/N
with/I
recession-sensitive/J
customers/N
./.
###/###
Mr./N
Bullock/N
says/V
45/C
%/N
of/I
revenues/N
are/V
tied/V
to/T
construction/N
./.
###/###
Analysts/N
predict/V
little/J
or/C
no/D
near-term/J
growth/N
./.
###/###
They/P
are/V
,/,
nonetheless/R
,/,
high/R
on/I
Manville/N
's/P
management/N
./.
###/###
``/`
It/P
's/V
one/C
of/I
the/D
best/J
in/I
the/D
business/N
,/,
''/'
says/V
Salomon/N
Brothers/N
analyst/N
Stephen/N
Dobi/N
./.
###/###
And/C
he/P
says/V
Manville/N
has/V
the/D
financial/J
flexibility/N
to/T
buy/V
other/J
companies/N
at/I
the/D
best/J
possible/J
other/J
construction-related/J
firms/N
are/V
hurting/V
and/C
selling/V
cheap/J
./.
###/###
With/I
a/D
conservative/J
debt-to-equity/J
ratio/N
of/I
1-to-1/J
--/:
and/C
$/$
329/C
million/C
in/I
cash/N
--/:
Manville/N
is/V
indeed/R
actively/R
on/I
the/D
prowl/N
./.
###/###
So/R
far/R
,/,
as/I
a/D
price-conscious/J
shopper/N
,/,
Manville/N
has/V
n't/R
bought/V
much/J
./.
###/###
Paul/N
Kleinaitis/N
,/,
an/D
analyst/N
at/I
Duff/N
&/C
Phelps/N
,/,
says/V
,/,
``/`
Even/R
though/I
they/P
have/V
borrowing/N
power/N
,/,
they/P
have/V
been/V
disciplined/V
about/I
acquisitions/N
./.
''/'
###/###
And/C
Mr./N
Kleinaitis/N
says/V
that/I
with/I
80/C
%/N
of/I
its/P
stock/N
in/I
friendly/J
hands/N
,/,
Manville/N
is/V
the/D
rare/J
publicly/R
traded/V
company/N
that/W
can/M
ignore/V
short-term/J
stock/N
fluctuations/N
and/C
plan/N
for/I
the/D
long/J
haul/N
./.
###/###
Manville/N
-LRB-/-
NYSE/N
;/:
Symbol/N
:/:
MVL/N
-RRB-/-
###/###
Business/N
:/:
Forest/N
products/N
and/C
roofing/N
###/###
Year/N
ended/V
Dec./N
31/C
,/,
1988/C
:/:
Sales/N
:/:
$/$
2.06/C
billions/N
Net/J
loss/N
:/:
$/$
1.30/C
billion/C
###/###
Third/J
quarter/N
,/,
Sept./N
30/C
,/,
1989/C
:/:
Per-share/J
earnings/N
:/:
30/C
cents/N
vs./J
44/C
cents/N
###/###
Average/J
daily/J
trading/N
volume/N
:/:
74,351/C
shares/N
###/###
Common/J
shares/N
outstanding/J
:/:
120/C
million/C
###/###
Includes/V
$/$
1.29/C
billion/C
extraordinary/J
charge/N
./.
###/###
Year/N
ago/R
figure/N
is/V
restated/V
./.
###/###
Emerson/N
Electric/N
Co./N
and/C
Robert/N
Bosch/N
G.m.b/N
./.
H./N
said/V
the/D
Federal/N
Trade/N
Commission/N
has/V
requested/V
additional/J
information/N
from/I
the/D
two/C
companies/N
about/I
their/P
announced/V
intention/N
to/T
acquire/V
Vermont/N
American/N
Corp./N
for/I
$/$
40/C
a/D
share/N
,/,
or/C
about/R
$/$
440/C
million/C
./.
###/###
Yesterday/N
,/,
in/I
composite/J
trading/N
on/I
the/D
American/N
Stock/N
Exchange/N
,/,
Vermont/N
American/N
common/N
closed/V
at/I
$/$
39.75/C
,/,
off/R
25/C
cents/N
./.
###/###
The/D
FTC/N
's/P
request/N
was/V
``/`
not/R
unusual/J
''/'
and/C
Emerson/N
will/M
make/V
a/D
``/`
full/J
and/C
prompt/J
''/'
response/N
,/,
according/V
to/T
a/D
spokesman/N
./.
###/###
Spokesmen/N
for/I
Emerson/N
and/C
Vermont/N
American/N
,/,
which/W
has/V
agreed/V
to/T
be/V
acquired/V
,/,
said/V
they/P
do/V
n't/R
anticipate/V
``/`
any/D
problems/N
''/'
with/I
the/D
completion/N
of/I
the/D
transaction/N
./.
###/###
An/D
FTC/N
spokesman/N
said/V
the/D
matter/N
is/V
``/`
in/I
a/D
non-public/J
posture/N
at/I
this/D
time/N
''/'
and/C
declined/V
to/T
comment/V
further/R
./.
###/###
Emerson/N
and/C
Bosch/N
,/,
through/I
their/P
joint/J
acquisition/N
arm/N
,/,
Maple/N
Acquisition/N
,/,
have/V
begun/V
a/D
cash/N
tender/N
offer/N
for/I
all/D
of/I
Vermont/N
's/P
common/J
shares/N
outstanding/J
./.
###/###
The/D
offer/N
,/,
set/V
to/T
expire/V
Nov./N
1/C
,/,
may/M
be/V
extended/V
pending/V
the/D
timing/N
and/C
resolution/N
of/I
the/D
FTC/N
request/N
,/,
the/D
companies/N
said/V
./.
###/###
St./N
Louis-based/J
Emerson/N
and/C
Stuttgart-based/J
Bosch/N
make/V
electrical/J
and/C
electronic/J
products/N
,/,
including/V
power/N
tools/N
./.
###/###
The/D
Vermont/N
American/N
acquisition/N
is/V
designed/V
to/T
enhance/V
their/P
position/N
in/I
the/D
accessories/N
portion/N
of/I
the/D
power-tool/J
industry/N
./.
###/###
Santa/N
Fe/N
Pacific/N
Corp./N
is/V
preparing/V
a/D
plan/N
to/T
sell/V
a/D
20/C
%/N
stake/N
in/I
its/P
large/J
real/J
estate/N
unit/N
to/T
a/D
California/N
public/J
employee/N
pension/N
fund/N
for/I
$/$
400/C
million/C
,/,
after/I
which/W
it/P
would/M
spin/V
off/R
the/D
realty/N
operation/N
to/T
shareholders/N
./.
###/###
The/D
plan/N
places/V
an/D
indicated/J
value/N
on/I
the/D
real/J
estate/N
operation/N
,/,
Santa/N
Fe/N
Pacific/N
Realty/N
Corp./N
,/,
of/I
$/$
2/C
billion/C
./.
###/###
Santa/N
Fe/N
Pacific/N
directors/N
are/V
expected/V
to/T
review/V
the/D
plan/N
at/I
a/D
meeting/N
today/N
,/,
according/V
to/T
people/N
familiar/J
with/I
the/D
transaction/N
./.
###/###
If/I
approved/V
,/,
the/D
sale/N
is/V
expected/V
to/T
close/V
by/I
year/N
's/P
end/N
,/,
with/I
the/D
spinoff/N
occurring/V
by/I
the/D
end/N
of/I
1992/C
./.
###/###
In/I
composite/J
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
yesterday/N
,/,
Santa/N
Fe/N
Pacific/N
closed/V
at/I
$/$
20.625/C
,/,
down/R
25/C
cents/N
./.
###/###
Santa/N
Fe/N
Pacific/N
Realty/N
is/V
a/D
major/J
California/N
land/N
and/C
building/N
owner/N
whose/W
prime/J
properties/N
include/V
1,850/C
undeveloped/J
acres/N
in/I
the/D
San/N
Francisco/N
Bay/N
area/N
,/,
and/C
several/J
office/N
sites/N
./.
###/###
A/D
spokesman/N
said/V
the/D
properties/N
survived/V
without/I
significant/J
damage/N
in/I
last/J
week/N
's/P
Northern/N
California/N
earthquake/N
./.
###/###
As/I
a/D
result/N
of/I
the/D
partial/J
sale/N
and/C
spinoff/N
,/,
the/D
$/$
56/C
billion/C
California/N
Public/N
Employees/N
Retirement/N
System/N
would/M
obtain/V
two/C
seats/N
on/I
the/D
board/N
of/I
the/D
real/J
estate/N
operation/N
,/,
according/V
to/T
officials/N
of/I
the/D
fund/N
,/,
who/W
described/V
the/D
plan/N
./.
###/###
A/D
spokesman/N
for/I
Chicago-based/J
Santa/N
Fe/N
Pacific/N
confirmed/V
that/I
negotiations/N
were/V
being/V
held/V
with/I
the/D
fund/N
./.
###/###
Also/R
holding/V
two/C
seats/N
each/D
on/I
the/D
board/N
,/,
they/P
said/V
,/,
would/M
be/V
Olympia/N
&/C
York/N
Developments/N
Ltd./N
,/,
controlled/V
by/I
the/D
Reichmann/N
family/N
of/I
Canada/N
,/,
and/C
Itel/N
Corp./N
,/,
controlled/V
by/I
Chicago/N
businessman/N
Sam/N
Zell/N
./.
###/###
The/D
Reichmanns/N
and/C
Mr./N
Zell/N
,/,
the/D
largest/J
holders/N
of/I
Santa/N
Fe/N
Pacific/N
stock/N
,/,
have/V
been/V
looking/V
for/I
ways/N
to/T
raise/V
the/D
value/N
of/I
their/P
investments/N
,/,
including/V
possible/J
spinoffs/N
./.
###/###
Itel/N
bought/V
a/D
17/C
%/N
stake/N
in/I
Sante/N
Fe/N
Pacific/N
last/J
year/N
and/C
Olympia/N
&/C
York/N
later/R
purchased/V
about/R
a/D
20/C
%/N
stake/N
;/:
they/P
would/M
have/V
interests/N
in/I
the/D
new/J
realty/N
company/N
in/I
line/N
with/I
their/P
holdings/N
in/I
Sante/N
Fe/N
Pacific/N
./.
###/###
The/D
sale/N
and/C
spinoff/N
of/I
the/D
real/J
estate/N
unit/N
is/V
the/D
first/J
phase/N
of/I
what/W
could/M
lead/V
to/T
the/D
breakup/N
of/I
Santa/N
Fe/N
Pacific/N
into/I
free-standing/J
companies/N
for/I
its/P
railroad/N
and/C
energy/N
operations/N
,/,
as/R
well/R
as/I
real/J
estate/N
./.
###/###
The/D
debt-laden/J
parent/N
has/V
been/V
under/I
pressure/N
from/I
large/J
shareholders/N
to/T
boost/V
the/D
company/N
's/P
share/N
price/N
./.
###/###
At/I
the/D
same/J
time/N
it/P
has/V
been/V
caught/V
in/I
an/D
earnings/N
squeeze/N
./.
###/###
The/D
California/N
pension/N
fund/N
's/P
planned/J
investment/N
in/I
the/D
real/J
estate/N
unit/N
is/V
unusual/J
./.
###/###
Pension/N
funds/N
rarely/R
own/V
as/R
much/J
as/I
a/D
20/C
%/N
stake/N
in/I
what/W
is/V
expected/V
to/T
be/V
a/D
publicly/R
traded/V
company/N
./.
###/###
In/I
addition/N
,/,
pension/N
funds/N
are/V
rarely/R
given/V
seats/N
on/I
company/N
boards/N
and/C
most/R
often/R
try/V
to/T
avoid/V
them/P
because/I
of/I
legal/J
concerns/N
./.
###/###
But/C
fund/N
officials/N
said/V
the/D
Santa/N
Fe/N
Pacific/N
Realty/N
investment/N
provides/V
an/D
opportunity/N
to/T
buy/V
a/D
stake/N
in/I
a/D
large/J
real/J
estate/N
portfolio/N
heavily/R
weighted/V
with/I
California/N
properties/N
./.
###/###
It/P
also/R
marks/V
a/D
``/`
major/J
commitment/N
to/T
-LCB-/-
real/J
estate/N
-RCB-/-
development/N
,/,
which/W
we/P
have/V
n't/R
been/V
involved/V
with/I
before/R
,/,
''/'
said/V
Dale/N
Hanson/N
,/,
the/D
fund/N
's/P
executive/J
director/N
./.
###/###
Under/I
the/D
proposed/J
plan/N
,/,
the/D
fund/N
would/M
also/R
lend/V
Santa/N
Fe/N
Pacific/N
Realty/N
$/$
75/C
million/C
in/I
the/D
form/N
of/I
a/D
note/N
that/W
would/M
be/V
convertible/J
into/I
additional/J
shares/N
of/I
the/D
realty/N
company/N
after/I
the/D
second/J
year/N
at/I
the/D
then-prevailing/J
market/N
price/N
./.
###/###
The/D
note/N
would/M
accrue/V
interest/N
at/I
the/D
rate/N
of/I
13.5/C
%/N
a/D
year/N
,/,
which/W
would/M
be/V
payable/J
to/T
the/D
fund/N
after/I
five/C
years/N
,/,
according/V
to/T
Stephen/N
E./N
Roulac/N
,/,
a/D
real/J
estate/N
consultant/N
working/V
for/I
the/D
fund/N
./.
###/###
The/D
purpose/N
of/I
the/D
note/N
is/V
to/T
provide/V
added/J
capital/N
for/I
the/D
spun-off/J
company/N
in/I
a/D
form/N
that/W
will/M
save/V
it/P
spending/V
cash/N
on/I
immediate/J
interest/N
payments/N
,/,
Mr./N
Roulac/N
said/V
./.
###/###
The/D
spun-off/J
concern/N
``/`
clearly/R
will/M
be/V
one/C
of/I
the/D
dominant/J
real/J
estate/N
development/N
companies/N
with/I
a/D
prime/J
portfolio/N
,/,
''/'
he/P
said/V
./.
###/###
For/I
the/D
last/J
year/N
,/,
Santa/N
Fe/N
Pacific/N
has/V
redirected/V
its/P
real/J
estate/N
operations/N
toward/I
longer-term/J
development/N
of/I
its/P
properties/N
,/,
hurting/V
profits/N
that/W
the/D
parent/N
had/V
generated/V
in/I
the/D
past/N
from/I
periodic/J
sales/N
from/I
its/P
portfolio/N
./.
###/###
Real/J
estate/N
operating/N
income/N
for/I
the/D
first/J
nine/C
months/N
fell/V
to/T
$/$
71.9/C
million/C
from/I
$/$
143/C
million/C
a/D
year/N
earlier/R
,/,
the/D
company/N
said/V
./.
###/###
In/I
a/D
statement/N
late/R
yesterday/N
,/,
Santa/N
Fe/N
Pacific/N
's/P
chairman/N
,/,
Robert/N
D./N
Krebs/N
,/,
said/V
that/I
Santa/N
Fe/N
Pacific/N
Realty/N
would/M
repay/V
more/J
than/I
$/$
500/C
million/C
in/I
debt/N
owed/V
to/T
the/D
parent/N
before/I
the/D
planned/J
spinoff/N
./.
###/###
That/D
would/M
help/V
reduce/V
Santa/N
Fe/N
Pacific/N
's/P
remaining/V
debt/N
to/T
about/R
$/$
600/C
million/C
from/I
a/D
high/J
of/I
$/$
3.7/C
billion/C
in/I
early/J
1988/C
./.
###/###
It/P
was/V
n't/R
clear/J
where/W
Santa/N
Fe/N
Pacific/N
expected/V
to/T
obtain/V
the/D
payment/N
of/I
more/J
than/I
$/$
500/C
million/C
,/,
which/W
would/M
be/V
well/R
above/I
the/D
$/$
400/C
million/C
that/D
California/N
pension/N
fund/N
officials/N
say/V
they/P
plan/V
to/T
provide/V
###/###
The/D
realty/N
unit/N
might/M
take/V
on/R
new/J
debt/N
or/C
obtain/V
additional/J
investors/N
,/,
among/I
other/J
possibilities/N
./.
###/###
The/D
Santa/N
Fe/N
Pacific/N
spokesman/N
declined/V
to/T
comment/V
on/I
that/D
aspect/N
,/,
saying/V
the/D
deal/N
was/V
still/R
under/I
negotiation/N
./.
###/###
Santa/N
Fe/N
Pacific/N
Realty/N
owns/V
2.8/C
million/C
acres/N
of/I
property/N
,/,
including/V
219/C
buildings/N
with/I
more/J
than/I
11/C
million/C
square/J
feet/N
of/I
space/N
./.
###/###
It/P
also/R
holds/V
nearly/R
40,000/C
acres/N
of/I
raw/J
land/N
with/I
development/N
potential/N
,/,
but/C
under/I
a/D
previously/R
announced/V
strategy/N
,/,
the/D
company/N
has/V
targeted/V
building/N
on/I
5,400/C
acres/N
in/I
California/N
,/,
Arizona/N
and/C
the/D
Chicago/N
area/N
./.
###/###
Among/I
those/D
are/V
the/D
1,850/C
acres/N
in/I
the/D
San/N
Francisco/N
Bay/N
area/N
,/,
including/V
208/C
acres/N
in/I
the/D
Mission/N
Bay/N
area/N
./.
###/###
The/D
California/N
pension/N
fund/N
,/,
which/W
has/V
$/$
16/C
billion/C
already/R
invested/V
in/I
real/J
estate/N
and/C
mortgages/N
,/,
could/M
be/V
a/D
valuable/J
funding/N
source/N
for/I
that/D
development/N
,/,
although/I
it/P
is/V
n't/R
obliged/V
to/T
make/V
further/J
investments/N
./.
###/###
The/D
fund/N
is/V
the/D
nation/N
's/P
largest/J
public/J
employee/N
fund/N
,/,
and/C
it/P
has/V
a/D
growing/V
cash/N
flow/N
now/R
topping/V
$/$
3/C
billion/C
a/D
year/N
./.
###/###
Fund/N
officials/N
negotiated/V
the/D
final/J
structure/N
of/I
the/D
proposed/J
deal/N
with/I
Santa/N
Fe/N
Pacific/N
,/,
but/C
they/P
were/V
approached/V
with/I
the/D
idea/N
by/I
real/J
estate/N
brokers/N
JMB/N
Realty/N
Corp./N
of/I
Chicago/N
./.
###/###
JMB/N
officials/N
are/V
expected/V
to/T
be/V
hired/V
to/T
represent/V
the/D
pension/N
fund/N
on/I
the/D
Santa/N
Fe/N
Pacific/N
Realty/N
board/N
,/,
Mr./N
Roulac/N
said/V
,/,
to/T
insulate/V
the/D
fund/N
from/I
potential/J
liability/N
problems/N
./.
###/###
GAF/N
,/,
Part/N
III/N
is/V
scheduled/V
to/T
begin/V
today/N
./.
###/###
After/I
two/C
mistrials/N
,/,
the/D
stakes/N
in/I
the/D
stock/N
manipulation/N
trial/N
of/I
GAF/N
Corp./N
and/C
its/P
vice/N
chairman/N
,/,
James/N
T./N
Sherwin/N
,/,
have/V
changed/V
considerably/R
./.
###/###
The/D
first/J
two/C
GAF/N
trials/N
were/V
watched/V
closely/R
on/I
Wall/N
Street/N
because/I
they/P
were/V
considered/V
to/T
be/V
important/J
tests/N
of/I
the/D
government/N
's/P
ability/N
to/T
convince/V
a/D
jury/N
of/I
allegations/N
stemming/V
from/I
its/P
insider-trading/N
investigations/N
./.
###/###
In/I
an/D
eight-count/J
indictment/N
,/,
the/D
government/N
charged/V
GAF/N
,/,
a/D
Wayne/N
,/,
N.J./N
,/,
chemical/N
maker/N
,/,
and/C
Mr./N
Sherwin/N
with/I
illegally/R
attempting/V
to/T
manipulate/V
the/D
common/J
stock/N
of/I
Union/N
Carbide/N
Corp./N
in/I
advance/N
of/I
GAF/N
's/P
planned/J
sale/N
of/I
a/D
large/J
block/N
of/I
the/D
stock/N
in/I
1986/C
./.
###/###
The/D
government/N
's/P
credibility/N
in/I
the/D
GAF/N
case/N
depended/V
heavily/R
on/I
its/P
star/J
witness/N
,/,
Boyd/N
L./N
Jefferies/N
,/,
the/D
former/J
Los/N
Angeles/N
brokerage/N
chief/N
who/W
was/V
implicated/V
by/I
former/J
arbitrager/N
Ivan/N
Boesky/N
,/,
and/C
then/R
pointed/V
the/D
finger/N
at/I
Mr./N
Sherwin/N
,/,
takeover/N
speculator/N
Salim/N
B./N
Lewis/N
and/C
corporate/J
raider/N
Paul/N
Bilzerian/N
./.
###/###
The/D
GAF/N
trials/N
were/V
viewed/V
as/I
previews/N
of/I
the/D
government/N
's/P
strength/N
in/I
its/P
cases/N
against/I
Mr./N
Lewis/N
and/C
Mr./N
Bilzerian/N
./.
###/###
Mr./N
Jefferies/N
's/P
performance/N
as/I
a/D
witness/N
was/V
expected/V
to/T
affect/V
his/P
sentencing/N
./.
###/###
But/C
GAF/N
's/P
bellwether/J
role/N
was/V
short-lived/J
./.
###/###
The/D
first/J
GAF/N
trial/N
ended/V
in/I
a/D
mistrial/N
after/I
four/C
weeks/N
when/W
U.S./N
District/N
Judge/N
Mary/N
Johnson/N
Lowe/N
found/V
that/I
a/D
prosecutor/N
improperly/R
,/,
but/C
unintentionally/R
,/,
withheld/V
a/D
document/N
./.
###/###
After/I
93/C
hours/N
of/I
deliberation/N
,/,
the/D
jurors/N
in/I
the/D
second/J
trial/N
said/V
they/P
were/V
hopelessly/R
deadlocked/J
,/,
and/C
another/D
mistrial/N
was/V
declared/V
on/I
March/N
22/C
./.
###/###
Meanwhile/R
,/,
a/D
federal/J
jury/N
found/V
Mr./N
Bilzerian/N
guilty/J
on/I
securities/N
fraud/N
and/C
other/J
charges/N
in/I
June/N
./.
###/###
A/D
month/N
later/R
,/,
Mr./N
Jefferies/N
was/V
spared/V
a/D
jail/N
term/N
by/I
a/D
federal/J
judge/N
who/W
praised/V
him/P
for/I
helping/V
the/D
government/N
./.
###/###
In/I
August/N
,/,
Mr./N
Lewis/N
pleaded/V
guilty/J
to/T
three/C
felony/N
counts/N
./.
###/###
Nevertheless/R
,/,
the/D
stakes/N
are/V
still/R
high/J
for/I
the/D
players/N
directly/R
involved/V
in/I
the/D
GAF/N
case/N
./.
###/###
The/D
mistrials/N
have/V
left/V
the/D
reputations/N
of/I
GAF/N
,/,
Mr./N
Sherwin/N
and/C
GAF/N
Chairman/N
Samuel/N
Heyman/N
in/I
limbo/N
./.
###/###
For/I
Mr./N
Sherwin/N
,/,
a/D
conviction/N
could/M
carry/V
penalties/N
of/I
five/C
years/N
in/I
prison/N
and/C
a/D
$/$
250,000/C
fine/J
on/I
each/D
count/N
./.
###/###
GAF/N
faces/V
potential/J
fines/N
of/I
$/$
500,000/C
for/I
each/D
count/N
./.
###/###
Individuals/N
familiar/J
with/I
the/D
case/N
said/V
that/I
throughout/I
September/N
,/,
defense/N
attorneys/N
were/V
talking/V
with/I
the/D
government/N
in/I
an/D
effort/N
to/T
prevent/V
a/D
trial/N
,/,
but/C
by/I
the/D
end/N
of/I
the/D
month/N
the/D
talks/N
had/V
ended/V
./.
###/###
There/E
is/V
much/J
speculation/N
among/I
attorneys/N
not/R
involved/V
that/I
the/D
strategy/N
of/I
GAF/N
's/P
attorney/N
,/,
Arthur/N
Liman/N
,/,
and/C
Mr./N
Sherwin/N
's/P
counsel/N
,/,
Stephen/N
Kaufman/N
,/,
will/M
include/V
testimony/N
by/I
Mr./N
Sherwin/N
or/C
Mr./N
Heyman/N
./.
###/###
Neither/D
testified/V
at/I
the/D
previous/J
trials/N
./.
###/###
For/I
now/R
,/,
defense/N
attorneys/N
are/V
tight-lipped/J
about/I
their/P
plans/N
./.
###/###
Max/N
Gitter/N
,/,
another/D
GAF/N
defense/N
attorney/N
,/,
said/V
yesterday/N
,/,
``/`
As/I
we/P
go/V
in/I
for/I
the/D
third/J
time/N
,/,
Yogi/N
Berra/N
's/P
famous/J
line/N
is/V
apt/J
:/:
`/`
It/P
's/V
deja/N
vu/N
all/R
over/R
again/R
./.
'/'
''/'
###/###
DALKON/N
SHIELD/N
CLAIMANTS/N
hope/V
to/T
stop/V
reorganization-plan/J
appeal/N
./.
###/###
Attorneys/N
for/I
more/J
than/I
18,000/C
women/N
who/W
claim/V
injuries/N
from/I
the/D
Dalkon/N
Shield/N
contraceptive/J
device/N
have/V
asked/V
the/D
U.S./N
Supreme/N
Court/N
to/T
refuse/V
to/T
hear/V
an/D
appeal/N
of/I
the/D
bankruptcy-law/N
reorganization/N
plan/N
for/I
A.H./N
Robins/N
Co./N
,/,
which/W
manufactured/V
the/D
device/N
./.
###/###
The/D
dispute/N
pits/V
two/C
groups/N
of/I
claimants/N
against/I
each/D
other/J
./.
###/###
Baltimore/N
attorney/N
Michael/N
A./N
Pretl/N
and/C
17/C
other/J
attorneys/N
representing/V
18,136/C
claimants/N
in/I
the/D
U.S./N
and/C
abroad/R
argue/V
that/I
the/D
appeal/N
would/M
delay/V
--/:
and/C
perhaps/R
even/R
destroy/V
--/:
a/D
$/$
2.38/C
billion/C
settlement/N
fund/N
that/W
is/V
the/D
centerpiece/N
of/I
the/D
reorganization/N
plan/N
./.
###/###
The/D
bankruptcy-court/N
reorganization/N
is/V
being/V
challenged/V
before/I
the/D
Supreme/N
Court/N
by/I
a/D
dissident/J
group/N
of/I
claimants/N
because/I
it/P
places/V
a/D
cap/N
on/I
the/D
total/J
amount/N
of/I
money/N
available/J
to/T
settle/V
claims/N
./.
###/###
It/P
also/R
bars/V
future/J
suits/N
against/I
Robins/N
company/N
officials/N
,/,
members/N
of/I
the/D
Robins/N
family/N
and/C
Robins/N
's/P
former/J
insurer/N
,/,
Aetna/N
Life/N
&/C
Casualty/N
Co/N
./.
###/###
The/D
latter/J
provision/N
is/V
``/`
legally/R
unprecedented/J
,/,
''/'
said/V
Alan/N
B./N
Morrison/N
,/,
a/D
public/J
interest/N
lawyer/N
in/I
Washington/N
,/,
D.C./N
,/,
who/W
is/V
challenging/V
the/D
plan/N
on/I
behalf/N
of/I
900/C
claimants/N
./.
###/###
More/J
than/I
100,000/C
claims/N
against/I
Robins/N
are/V
pending/V
./.
###/###
The/D
company/N
made/V
and/C
marketed/V
the/D
Dalkon/N
Shield/N
in/I
the/D
early/J
1970s/N
amid/I
mounting/V
evidence/N
that/I
it/P
could/M
cause/V
serious/J
injuries/N
./.
###/###
Robins/N
has/V
been/V
in/I
proceedings/N
under/I
Chapter/N
11/C
of/I
the/D
U.S./N
Bankruptcy/N
Code/N
since/I
August/N
1985/C
;/:
such/J
proceedings/N
give/V
it/P
protection/N
from/I
creditor/N
lawsuits/N
while/I
it/P
works/V
out/R
a/D
plan/N
for/I
paying/V
its/P
debts/N
./.
###/###
American/N
Home/N
Products/N
Corp./N
wants/V
to/T
acquire/V
Robins/N
,/,
but/C
only/R
if/I
all/D
legal/J
challenges/N
to/T
the/D
plan/N
are/V
exhausted/V
./.
###/###
In/I
a/D
brief/N
filed/V
with/I
the/D
Supreme/N
Court/N
last/J
week/N
,/,
Mr./N
Pretl/N
criticizes/V
the/D
appeal/N
for/I
raising/V
``/`
abstract/J
''/'
and/C
``/`
theoretical/J
''/'
legal/J
issues/N
,/,
while/I
jeopardizing/V
the/D
proposed/J
reorganization/N
and/C
the/D
settlement/N
payments/N
to/T
claimants/N
./.
###/###
The/D
Supreme/N
Court/N
is/V
scheduled/V
to/T
consider/V
the/D
case/N
Nov./N
3/C
and/C
may/M
issue/V
a/D
decision/N
as/R
early/R
as/I
Nov./N
6/C
./.
###/###
JURY/N
`/`
S/P
CRIMINAL/J
CONVICTION/N
under/I
Superfund/N
law/N
is/V
a/D
first/J
./.
###/###
Charles/N
A./N
Donohoo/N
,/,
sole/J
proprieter/N
of/I
a/D
Louisville/N
,/,
Ky./N
,/,
demolition/N
company/N
,/,
was/V
found/V
guilty/J
of/I
violating/V
the/D
Superfund/N
law/N
as/R
well/R
as/I
the/D
Clean/N
Air/N
Act/N
./.
###/###
Criminal/J
convictions/N
under/I
the/D
federal/J
Superfund/N
law/N
are/V
rare/J
,/,
and/C
the/D
decision/N
is/V
the/D
first/J
jury/N
verdict/N
in/I
such/P
a/D
case/N
./.
###/###
Under/I
Superfund/N
,/,
those/D
who/W
owned/V
,/,
generated/V
or/C
transported/V
hazardous/J
waste/N
are/V
liable/J
for/I
its/P
cleanup/N
,/,
regardless/R
of/I
whether/I
their/P
actions/N
were/V
legal/J
at/I
the/D
time/N
./.
###/###
Environmental/J
lawyers/N
say/V
virtually/R
all/D
of/I
the/D
Superfund/N
cases/N
to/T
date/N
have/V
involved/V
civil/J
penalties/N
designed/V
to/T
insure/V
cleanup/N
of/I
past/J
polluting/V
activities/N
./.
###/###
But/C
Superfund/N
also/R
contains/V
a/D
criminal/J
provision/N
concerning/V
the/D
release/N
of/I
toxic/J
substances/N
into/I
the/D
environment/N
./.
###/###
In/I
1986/C
Congress/N
strengthened/V
the/D
penalty/N
by/I
making/V
it/P
a/D
felony/N
./.
###/###
Mr./N
Donohoo/N
was/V
convicted/V
in/I
Louisville/N
late/R
last/J
month/N
of/I
violating/V
Superfund/N
by/I
failing/V
to/T
report/V
the/D
release/N
of/I
asbestos/N
into/I
the/D
environment/N
from/I
a/D
building/N
he/P
was/V
demolishing/V
./.
###/###
He/P
was/V
also/R
convicted/V
of/I
failing/V
to/T
properly/R
remove/V
asbestos/N
from/I
the/D
building/N
,/,
a/D
violation/N
of/I
the/D
Clean/N
Air/N
Act/N
./.
###/###
The/D
government/N
sought/V
a/D
criminal/J
penalty/N
because/I
``/`
no/D
cleanup/N
is/V
possible/J
here/R
./.
###/###
Once/R
-LCB-/-
asbestos/N
-RCB-/-
is/V
released/V
into/I
the/D
environment/N
,/,
it/P
can/M
lodge/V
anywhere/R
,/,
''/'
says/V
Richard/N
A./N
Dennis/N
,/,
the/D
assistant/J
U.S./N
attorney/N
who/W
prosecuted/V
the/D
case/N
./.
###/###
Mr./N
Donohoo/N
is/V
scheduled/V
to/T
be/V
sentenced/V
Dec./N
11/C
./.
###/###
His/P
lawyer/N
could/M
not/R
be/V
reached/V
for/I
comment/N
./.
###/###
Mr./N
Donohoo/N
faces/N
as/R
much/R
as/I
three/C
years/N
in/I
prison/N
and/C
a/D
$/$
250,000/C
fine/N
for/I
the/D
Superfund/N
conviction/N
and/C
as/R
much/J
as/I
one/C
year/N
in/I
prison/N
and/C
a/D
$/$
100,000/C
fine/N
for/I
the/D
violation/N
of/I
the/D
Clean/N
Air/N
Act/N
./.
###/###
TED/N
BUNDY'S/N
LAWYERS/N
switch/V
to/T
victims/N
'/P
side/N
in/I
death-sentence/N
case/N
./.
###/###
Wilmer/N
,/,
Cutler/N
&/C
Pickering/N
,/,
the/D
Washington/N
,/,
D.C./N
,/,
law/N
firm/N
that/W
spent/V
over/I
$/$
1/C
million/C
fighting/V
the/D
execution/N
of/I
mass-murderer/N
Ted/N
Bundy/N
--/:
who/W
eventually/R
was/V
executed/V
--/:
has/V
taken/V
on/R
another/D
death/N
penalty/N
case/N
before/I
the/D
Supreme/N
Court/N
,/,
this/D
time/N
on/I
the/D
side/N
of/I
the/D
family/N
of/I
four/C
murder/N
victims/N
in/I
Arkansas/N
./.
###/###
The/D
law/N
firm/N
has/V
filed/V
a/D
friend-of-the-court/J
brief/N
jointly/R
with/I
the/D
Washington/N
Legal/N
Foundation/N
,/,
a/D
conservative/J
legal/J
group/N
./.
###/###
The/D
key/J
issue/N
in/I
the/D
case/N
,/,
which/W
the/D
law/N
firm/N
is/V
handling/V
without/I
a/D
fee/N
,/,
or/C
pro/F
bono/F
,/,
is/V
whether/I
a/D
person/N
sentenced/V
to/T
death/N
can/M
voluntarily/R
waive/V
his/P
rights/N
of/I
appellate/J
review/N
./.
###/###
The/D
murderer/N
,/,
Ronald/N
Gene/N
Simmons/N
,/,
was/V
convicted/V
of/I
killing/V
14/C
people/N
./.
###/###
Another/D
murderer/N
on/I
death/N
row/N
has/V
appealed/V
Mr./N
Simmons/N
's/P
death/N
sentence/N
in/I
a/D
``/`
next/J
friend/N
''/'
capacity/N
./.
###/###
Wilmer/N
Cutler/N
's/P
brief/N
argues/V
that/I
there/E
is/V
no/D
mandatory/J
appellate/J
review/N
of/I
capital/N
sentences/N
and/C
that/I
the/D
inmate/N
who/W
filed/V
the/D
appeal/N
lacks/V
proper/J
standing/N
./.
###/###
P.J./N
Mode/N
,/,
Wilmer/N
Cutler/N
's/P
managing/N
partner/N
,/,
says/V
the/D
trial/N
team/N
that/W
represented/V
Mr./N
Bundy/N
was/V
asked/V
by/I
the/D
firm/N
's/P
pro/F
bono/F
committee/N
whether/I
the/D
new/J
case/N
posed/V
a/D
conflict/N
and/C
that/I
no/D
objections/N
were/V
raised/V
./.
###/###
The/D
coupling/N
of/I
the/D
law/N
firm/N
and/C
the/D
Washington/N
Legal/N
Foundation/N
is/V
odd/J
also/R
,/,
because/I
Wilmer/N
Cutler/N
was/V
one/C
of/I
the/D
firms/N
singled/V
out/R
for/I
criticism/N
two/C
years/N
ago/R
by/I
the/D
conservative/J
legal/J
group/N
for/I
displaying/V
a/D
liberal/J
bias/N
in/I
its/P
pro/F
bono/F
work/N
./.
###/###
``/`
We/P
give/V
them/P
a/D
lot/N
of/I
credit/N
for/I
taking/V
this/D
case/N
,/,
''/'
says/V
WLF/N
's/P
Alan/N
Slobodin/N
./.
###/###
THE/D
CASE/N
OF/I
THE/D
FAKE/J
DALIS/N
:/:
In/I
federal/J
court/N
in/I
Manhattan/N
,/,
three/C
defendants/N
pleaded/V
guilty/J
to/T
charges/N
of/I
fraud/N
in/I
connection/N
with/I
the/D
sale/N
of/I
fake/J
Salvador/N
Dali/N
lithographs/N
./.
###/###
James/N
Burke/N
and/C
Larry/N
Evans/N
,/,
formerly/R
owners/N
of/I
the/D
now-defunct/J
Barclay/N
Gallery/N
,/,
and/C
Prudence/N
Clark/N
,/,
a/D
Barclay/N
sales/N
representative/N
,/,
were/V
charged/V
with/I
conducting/V
high-pressure/J
telephone/N
sales/N
in/I
which/W
they/P
misrepresented/V
cheap/J
copies/N
of/I
Dali/N
artwork/N
as/I
signed/J
,/,
limited-edition/J
lithographs/N
./.
###/###
The/D
posters/N
were/V
sold/V
for/I
$/$
1,300/C
to/T
$/$
6,000/C
,/,
although/I
the/D
government/N
says/V
they/P
had/V
a/D
value/N
of/I
only/R
$/$
53/C
to/T
$/$
200/C
apiece/R
./.
###/###
Henry/N
Pitman/N
,/,
the/D
assistant/J
U.S./N
attorney/N
handling/V
the/D
case/N
,/,
said/V
about/R
1,000/C
customers/N
were/V
defrauded/V
and/C
that/I
Barclay/N
's/P
total/J
proceeds/N
from/I
the/D
sales/N
were/V
$/$
3.4/C
million/C
./.
###/###
Attorneys/N
for/I
Messrs./N
Burke/N
and/C
Evans/N
and/C
Ms./N
Clarke/N
said/V
that/I
although/I
their/P
clients/N
admitted/V
to/T
making/V
some/D
misrepresentations/N
in/I
the/D
sales/N
,/,
they/P
had/V
believed/V
that/I
the/D
works/N
were/V
authorized/V
by/I
Mr./N
Dali/N
,/,
who/W
died/V
in/I
January/N
./.
###/###
The/D
posters/N
were/V
printed/V
on/I
paper/N
pre-signed/V
by/I
Mr./N
Dali/N
,/,
the/D
attorneys/N
said/V
./.
###/###
Westamerica/N
Bancorp./N
said/V
Richard/N
W./N
Decker/N
resigned/V
as/I
president/N
and/C
chief/J
executive/J
officer/N
after/I
only/R
a/D
year/N
on/I
the/D
job/N
because/I
of/I
``/`
differences/N
''/'
with/I
the/D
board/N
./.
###/###
The/D
banking/N
company/N
could/M
n't/R
be/V
reached/V
to/T
comment/V
beyond/I
a/D
written/J
announcement/N
./.
###/###
It/P
did/V
n't/R
specify/V
the/D
nature/N
of/I
the/D
differences/N
,/,
saying/V
only/R
that/I
they/P
related/V
to/T
``/`
management/N
style/N
''/'
and/C
``/`
strategic/J
objectives/N
./.
''/'
###/###
Westamerica/N
said/V
Mr./N
Decker/N
's/P
posts/N
were/V
assumed/V
by/I
David/N
Payne/N
,/,
Westamerica/N
's/P
chairman/N
,/,
who/W
at/I
34/C
years/N
of/I
age/N
becomes/V
one/N
of/I
the/D
youngest/J
chief/J
executives/N
of/I
a/D
sizable/J
bank/N
in/I
the/D
country/N
./.
###/###
Mr./N
Decker/N
is/V
about/R
45/C
years/N
old/J
./.
###/###
Neither/C
Mr./N
Payne/N
nor/C
Mr./N
Decker/N
could/M
be/V
reached/V
to/T
comment/V
./.
###/###
Westamerica/N
has/V
about/R
$/$
1.3/C
billion/C
of/I
assets/N
and/C
is/V
the/D
largest/J
independent/J
bank/N
in/I
northern/J
California/N
./.
###/###
It/P
controls/V
about/R
35/C
%/N
of/I
the/D
affluent/J
Marin/N
County/N
market/N
across/I
the/D
Golden/N
Gate/N
bridge/N
from/I
San/N
Francisco/N
./.
###/###
Mr./N
Decker/N
's/P
resignation/N
surprised/V
many/J
industry/N
officials/N
./.
###/###
He/P
was/V
brought/V
to/T
the/D
company/N
in/I
September/N
1988/C
after/I
15/C
years/N
at/I
Los/N
Angeles-based/J
First/N
Interstate/N
Bancorp/N
./.
###/###
The/D
bank/N
had/V
been/V
suffering/V
in/I
late/J
1987/C
from/I
a/D
slew/N
of/I
bad/J
real/J
estate/N
loans/N
made/V
in/I
Arizona/N
./.
###/###
When/W
he/P
was/V
hired/V
,/,
Mr./N
Payne/N
lauded/V
Mr./N
Decker/N
's/P
``/`
extraordinary.../:
skills/N
''/'
and/C
his/P
``/`
outstanding/J
reputation/N
as/I
one/C
of/I
the/D
West/N
's/P
brightest/J
bankers/N
./.
''/'
###/###
Though/I
the/D
bank/N
is/V
n't/R
performing/V
as/R
well/R
as/I
some/D
of/I
its/P
competitors/N
in/I
the/D
lucrative/J
California/N
market/N
,/,
its/P
condition/N
has/V
improved/V
since/I
Mr./N
Decker/N
took/V
over/R
./.
###/###
For/I
the/D
six/C
months/N
ended/V
June/N
30/C
,/,
it/P
earned/V
$/$
3.1/C
million/C
,/,
or/C
61/C
cents/N
a/D
share/N
,/,
compared/V
with/I
net/J
income/N
of/I
$/$
2.4/C
million/C
,/,
or/C
41/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Its/P
stock/N
also/R
has/V
risen/V
lately/R
,/,
at/I
least/J
partly/R
because/I
it/P
is/V
considered/V
a/D
possible/J
takeover/N
candidate/N
./.
###/###
Interstate/J
banking/N
is/V
scheduled/V
to/T
begin/V
in/I
California/N
in/I
1991/C
,/,
and/C
larger/J
California/N
banks/N
,/,
such/J
as/I
Wells/N
Fargo/N
&/C
Co./N
,/,
have/V
been/V
paying/V
fat/J
premiums/N
to/T
buy/V
smaller/J
banks/N
to/T
control/V
markets/N
before/I
any/D
out-of-state/J
banks/N
enter/V
the/D
fray/N
./.
###/###
In/I
American/N
Stock/N
Exchange/N
composite/J
trading/N
yesterday/N
,/,
Westamerica/N
closed/V
at/I
$/$
22.25/C
a/D
share/N
,/,
down/R
75/C
cents/N
./.
###/###
Varian/N
Associates/N
Inc./N
,/,
Palo/N
Alto/N
,/,
Calif./N
,/,
reported/V
fiscal/J
fourth-quarter/J
profit/N
plunged/V
more/R
than/I
95/C
%/N
to/T
$/$
1/C
million/C
,/,
or/C
five/C
cents/N
a/D
share/N
,/,
from/I
$/$
24.2/C
million/C
,/,
or/C
$/$
1.10/C
a/D
share/N
,/,
in/I
the/D
year-earlier/J
quarter/N
./.
###/###
The/D
diversified/J
electronics/N
company/N
blamed/V
the/D
decline/N
in/I
the/D
quarter/N
ended/V
Sept./N
29/C
,/,
on/I
previously/R
reported/V
operating/N
problems/N
in/I
its/P
Electron/N
Devices/N
&/C
Systems/N
Group/N
./.
###/###
For/I
the/D
full/J
fiscal/J
year/N
,/,
Varian/N
posted/V
a/D
13/C
%/N
profit/N
rise/N
to/T
$/$
31.5/C
million/C
,/,
or/C
$/$
1.53/C
a/D
share/N
,/,
up/R
from/I
$/$
27.8/C
million/C
,/,
or/C
$/$
1.27/C
a/D
share/N
,/,
last/J
year/N
./.
###/###
Sales/N
for/I
the/D
year/N
rose/V
almost/R
15/C
%/N
to/T
$/$
1.34/C
billion/C
from/I
$/$
1.17/C
billion/C
last/J
year/N
./.
###/###
A/D
profit/N
last/J
year/N
in/I
both/C
the/D
quarter/N
and/C
year/N
included/V
a/D
net/J
gain/N
of/I
$/$
9.6/C
million/C
,/,
or/C
44/C
cents/N
a/D
share/N
,/,
from/I
the/D
sale/N
of/I
a/D
division/N
./.
###/###
Additionally/R
,/,
the/D
full-year/J
profit/N
last/J
year/N
reflected/V
an/D
after-tax/J
restructuring/N
charge/N
of/I
$/$
22.8/C
million/C
,/,
or/C
$/$
1.04/C
a/D
share/N
./.
###/###
Shares/N
of/I
Varian/N
,/,
which/W
last/J
month/N
warned/V
there/E
would/M
be/V
a/D
fourth-quarter/J
plunge/N
,/,
closed/V
at/I
$/$
22.75/C
,/,
down/R
62.5/C
cents/N
in/I
composite/J
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
./.
###/###
Sales/N
rose/V
18/C
%/N
in/I
the/D
fiscal/J
fourth/J
quarter/N
to/T
$/$
364.1/C
million/C
from/I
$/$
307.9/C
million/C
on/I
the/D
strength/N
in/I
semiconductors/N
and/C
other/J
products/N
./.
###/###
In/I
a/D
last-ditch/J
effort/N
to/T
keep/V
its/P
sales/N
force/N
and/C
customer/N
base/N
,/,
Integrated/N
Resources/N
Inc./N
said/V
it/P
agreed/V
in/I
principle/N
to/T
transfer/V
ownership/N
of/I
its/P
broker-dealer/N
subsidiary/N
to/T
two/C
of/I
its/P
top/J
executives/N
./.
###/###
The/D
financial-services/N
firm/N
,/,
struggling/V
since/I
summer/N
to/T
avoid/V
a/D
bankruptcy-law/N
filing/N
after/I
missing/V
interest/N
payments/N
on/I
about/R
$/$
1/C
billion/C
of/I
debt/N
,/,
will/M
retain/V
the/D
right/N
to/T
regain/V
the/D
subsidiary/N
./.
###/###
It/P
said/V
it/P
will/M
exercise/V
that/D
right/N
only/R
if/I
it/P
sells/V
substantially/R
all/D
of/I
its/P
other/J
core/J
businesses/N
./.
###/###
It/P
also/R
can/M
sell/V
the/D
right/N
to/T
regain/V
the/D
subsidiary/N
to/T
another/D
party/N
./.
###/###
Also/R
,/,
the/D
broker-dealer/N
subsidiary/N
,/,
Integrated/N
Resources/N
Equity/N
Corp./N
,/,
was/V
renamed/V
Royal/N
Alliance/N
Associates/N
Inc/N
./.
###/###
Because/I
of/I
Integrated/N
's/P
widely/R
reported/V
troubles/N
,/,
the/D
unit/N
's/P
representatives/N
had/V
been/V
requesting/V
a/D
name/N
change/N
./.
###/###
Royal/N
Alliance/N
,/,
to/T
which/W
the/D
3,900/C
representatives/N
'/P
licenses/N
will/M
be/V
transferred/V
,/,
is/V
a/D
shell/N
company/N
Integrated/N
owns/V
./.
###/###
In/I
the/D
transaction/N
,/,
Integrated/N
will/M
transfer/V
100/C
%/N
ownership/N
of/I
the/D
subsidiary/N
to/T
Gerard/N
M./N
Lavin/N
,/,
executive/J
vice/N
president/N
of/I
Integrated/N
and/C
head/N
of/I
back-office/J
operations/N
at/I
the/D
subsidiary/N
,/,
and/C
Gary/N
W./N
Krat/N
,/,
executive/J
vice/N
president/N
of/I
the/D
parent/N
and/C
president/N
of/I
the/D
subsidiary/N
./.
###/###
Integrated/N
will/M
pump/V
$/$
3.5/C
million/C
to/T
$/$
4/C
million/C
into/I
Royal/N
Alliance/N
as/I
initial/J
funding/N
./.
###/###
In/I
an/D
interview/N
,/,
Mr./N
Krat/N
said/V
that/I
based/V
on/I
criteria/N
yet/R
to/T
be/V
determined/V
,/,
he/P
expects/V
to/T
distribute/V
49/C
%/N
of/I
Royal/N
Alliance/N
to/T
the/D
representatives/N
,/,
who/W
sell/V
Integrated/N
's/P
insurance/N
and/C
mutual-fund/N
products/N
./.
###/###
If/I
Integrated/N
regains/V
Royal/N
Alliance/N
,/,
the/D
representatives/N
will/M
retain/V
their/P
49/C
%/N
ownership/N
./.
###/###
Mr./N
Krat/N
indicated/V
that/I
completion/N
of/I
the/D
transaction/N
could/M
take/V
several/J
weeks/N
,/,
and/C
it/P
was/V
n't/R
immediately/R
clear/V
what/W
would/M
happen/V
to/T
the/D
broker-dealer/N
subsidiary/N
if/I
Integrated/N
files/N
for/I
bankruptcy-law/N
protection/N
in/I
the/D
meantime/N
./.
###/###
The/D
subsidiary/N
is/V
n't/R
expected/V
to/T
be/V
profitable/J
for/I
at/I
least/J
one/C
year/N
./.
###/###
If/I
Integrated/N
regains/V
the/D
unit/N
,/,
it/P
would/M
receive/V
any/D
profit/N
the/D
unit/N
reports/V
,/,
even/R
while/I
the/D
unit/N
is/V
independent/J
./.
###/###
If/I
the/D
deal/N
closes/V
,/,
the/D
two/C
officers/N
will/M
draw/V
salaries/N
from/I
the/D
independent/J
operation/N
,/,
not/R
from/I
Integrated/N
./.
###/###
Many/J
aspects/N
of/I
the/D
agreement/N
were/V
worked/V
out/R
Wednesday/N
in/I
Chicago/N
,/,
when/W
Integrated/N
senior/J
managers/N
met/V
with/I
about/R
150/C
representatives/N
./.
###/###
``/`
I/P
think/V
it/P
was/V
something/N
that/I
we/P
and/C
they/P
thought/V
was/V
constructive/J
,/,
''/'
said/V
Stephen/N
D./N
Weinroth/N
,/,
chairman/N
and/C
co-chief/J
executive/J
officer/N
of/I
Integrated/N
./.
###/###
Integrated/N
made/V
its/P
announcement/N
after/I
the/D
market/N
closed/V
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
Composite/N
trading/N
,/,
Integrated/N
shares/N
closed/V
at/I
$/$
1.125/C
,/,
up/R
12.5/C
cents/N
./.
###/###
The/D
dollar/N
weakened/V
in/I
indecisive/J
trading/N
as/I
foreign-exchange/N
dealers/N
awaited/V
fresh/J
economic/J
news/N
that/I
they/P
hope/V
will/M
jolt/V
the/D
U.S./N
unit/N
out/I
of/I
its/P
narrow/J
ranges/N
./.
###/###
The/D
Canadian/J
dollar/N
climbed/V
to/T
its/P
highest/J
level/N
against/I
the/D
U.S./N
dollar/N
since/I
late/J
August/N
,/,
prompting/V
the/D
Bank/N
of/I
Canada/N
to/T
sell/V
the/D
Canadian/J
currency/N
on/I
the/D
market/N
./.
###/###
Traders/N
say/V
that/I
after/I
a/D
week/N
of/I
nervously/R
tracking/V
every/D
development/N
on/I
Wall/N
Street/N
,/,
the/D
foreign-exchange/N
market/N
has/V
settled/V
back/R
to/T
catch/V
its/P
breath/N
ahead/R
of/I
new/J
U.S./N
economic/J
data/N
./.
###/###
They/P
noted/V
,/,
however/R
,/,
that/I
a/D
26-point/J
drop/N
in/I
the/D
Dow/N
Jones/N
Industrial/N
Average/N
gave/V
the/D
dollar/N
a/D
sharp/J
nudge/N
downward/R
late/R
in/I
the/D
day/N
./.
###/###
In/I
late/J
New/N
York/N
trading/N
yesterday/N
,/,
the/D
dollar/N
was/V
quoted/V
at/I
1.8470/C
marks/N
,/,
down/R
from/I
1.8578/C
marks/N
late/R
Friday/N
,/,
and/C
at/I
141.90/C
yen/N
,/,
down/R
from/I
142.43/C
yen/N
late/R
Friday/N
./.
###/###
Sterling/N
was/V
quoted/V
at/I
$/$
1.6030/C
,/,
up/R
from/I
$/$
1.5885/C
late/R
Friday/N
./.
###/###
In/I
Tokyo/N
Tuesday/N
,/,
the/D
U.S./N
currency/N
opened/V
for/I
trading/V
at/I
141.80/C
yen/N
,/,
down/R
from/I
Monday/N
's/P
Tokyo/N
close/N
of/I
142.40/C
yen/N
./.
###/###
The/D
market/N
's/P
attention/N
is/V
especially/R
focused/V
on/I
a/D
preliminary/J
report/N
on/I
the/D
U.S./N
third-quarter/J
gross/J
national/J
product/N
,/,
due/J
out/R
Thursday/N
,/,
which/W
could/M
show/V
the/D
economy/N
is/V
continuing/V
to/T
expand/V
at/I
a/D
relatively/R
brisk/J
pace/N
./.
###/###
The/D
consensus/N
view/N
on/I
real/J
GNP/N
,/,
the/D
total/J
value/N
of/I
the/D
U.S./N
output/N
of/I
goods/N
and/C
services/N
adjusted/V
for/I
inflation/N
,/,
calls/V
for/I
a/D
2.3/C
%/N
gain/N
on/I
an/D
annual/J
basis/N
,/,
slowing/V
somewhat/R
from/I
the/D
second/J
quarter/N
's/P
2.5/C
%/N
,/,
but/C
still/R
fairly/R
strong/J
./.
###/###
Few/J
market/N
participants/N
expect/V
the/D
U.S./N
unit/N
to/T
rally/V
sharply/R
on/I
the/D
news/N
,/,
if/I
it/P
turns/V
out/R
as/R
expected/V
./.
###/###
Many/J
contend/V
that/I
the/D
report/N
may/M
overstate/V
the/D
economy/N
's/P
health/N
and/C
predict/V
the/D
third-quarter/J
figures/N
may/M
be/V
the/D
last/J
vigorous/J
statistics/N
for/I
some/D
time/N
to/T
come/V
./.
###/###
``/`
Everyone/N
is/V
waiting/V
for/I
GNP/N
,/,
''/'
says/V
Walter/N
Simon/N
,/,
an/D
assistant/J
treasurer/N
with/I
Bank/N
Julius/N
Baer/N
&/C
Co/N
./.
###/###
``/`
Yet/C
even/R
a/D
relatively/R
strong/J
number/N
--/:
2.8/C
%/N
to/T
2.9/C
%/N
--/:
wo/M
n't/R
alter/V
the/D
market/N
's/P
view/N
that/I
the/D
economy/N
is/V
softening/V
./.
''/'
###/###
Hubert/N
Pedroli/N
,/,
managing/N
director/N
of/I
foreign/J
exchange/N
at/I
Credit/N
Suisse/N
in/I
New/N
York/N
,/,
adds/V
,/,
``/`
The/D
market/N
sees/V
this/D
as/I
the/D
last/J
piece/N
of/I
good/J
news/N
./.
''/'
###/###
Mr./N
Pedroli/N
notes/V
that/I
the/D
GNP/N
deflator/N
,/,
a/D
measure/N
of/I
inflation/N
,/,
is/V
expected/V
to/T
slow/V
,/,
which/W
would/M
give/V
the/D
Federal/N
Reserve/N
more/J
room/N
to/T
ease/V
key/J
U.S./N
rates/N
./.
###/###
Analysts/N
predict/V
a/D
3.5/C
%/N
rise/N
in/I
the/D
deflator/N
,/,
after/I
climbing/V
4.6/C
%/N
in/I
the/D
second/J
quarter/N
./.
###/###
They/P
note/V
that/I
when/W
an/D
unexpectedly/R
sharp/J
widening/N
in/I
the/D
U.S./N
trade/N
gap/N
in/I
August/N
was/V
reported/V
earlier/R
this/D
month/N
,/,
hopes/N
for/I
a/D
sustained/J
narrowing/N
of/I
the/D
trade/N
deficit/N
were/V
dashed/V
and/C
sentiment/N
gripped/V
the/D
market/N
that/I
the/D
U.S./N
economy/N
was/V
losing/V
its/P
momentum/N
./.
###/###
A/D
190-point/J
plunge/N
in/I
U.S./N
stock/N
shares/N
compounded/V
the/D
view/N
,/,
they/P
say/V
./.
###/###
``/`
Everyone/N
is/V
extremely/R
convinced/J
the/D
economy/N
is/V
slowing/V
,/,
''/'
says/V
one/C
senior/J
New/N
York/N
dealer/N
./.
###/###
If/I
we/P
're/V
not/R
headed/V
for/I
a/D
recession/N
,/,
we/P
're/V
certainly/R
headed/V
for/I
a/D
major/J
slowdown/N
./.
''/'
###/###
While/I
the/D
market/N
expects/V
little/J
reaction/N
from/I
news/N
of/I
U.S./N
durable/J
goods/N
orders/N
,/,
scheduled/V
for/I
release/N
today/N
,/,
participants/N
note/V
that/I
the/D
figures/N
will/M
probably/R
serve/V
to/T
reinforce/V
this/D
bearish/J
sentiment/N
./.
###/###
U.S./N
durable/J
goods/N
orders/N
are/V
expected/V
to/T
show/V
a/D
decline/N
of/I
1.2/C
%/N
in/I
September/N
,/,
according/V
to/T
economists/N
./.
###/###
The/D
anticipated/J
drop/N
follows/V
a/D
3.9/C
%/N
rise/N
in/I
August/N
./.
###/###
Traders/N
,/,
however/R
,/,
are/V
quick/J
to/T
point/V
out/R
that/I
while/I
there/E
is/V
little/J
enthusiasm/N
for/I
buying/V
dollars/N
,/,
the/D
U.S./N
unit/N
has/V
found/V
a/D
``/`
natural/J
bottom/N
''/'
at/I
about/R
1.85/C
marks/N
and/C
140/C
yen/N
./.
###/###
Its/P
resilience/N
around/I
these/D
levels/N
is/V
pegged/V
to/T
persistent/J
investor/N
demand/N
for/I
the/D
greenback/N
,/,
especially/R
in/I
Japan/N
./.
###/###
On/I
the/D
Commodity/N
Exchange/N
in/I
New/N
York/N
,/,
gold/N
for/I
current/J
delivery/N
settled/V
at/I
$/$
367/C
an/D
ounce/N
,/,
down/R
30/C
cents/N
./.
###/###
Estimated/J
volume/N
was/V
a/D
very/R
light/J
one/C
million/C
ounces/N
./.
###/###
In/I
early/R
trading/N
in/I
Hong/N
Kong/N
Tuesday/N
,/,
gold/N
was/V
quoted/V
at/I
$/$
366.79/C
an/D
ounce/N
./.
###/###
Liz/N
Claiborne/N
Inc./N
,/,
New/N
York/N
,/,
said/V
its/P
third-quarter/J
net/J
income/N
jumped/V
62/C
%/N
,/,
citing/V
continued/J
strength/N
in/I
apparel/N
sales/N
and/C
the/D
start/N
of/I
shipments/N
of/I
its/P
new/J
product/N
lines/N
:/:
a/D
men/N
's/P
fragrance/N
,/,
large-size/J
women/N
's/P
apparel/N
and/C
casual/J
knitwear/N
./.
###/###
The/D
big/J
apparel/N
maker/N
and/C
retailer/N
said/V
that/I
its/P
net/J
income/N
in/I
the/D
latest/J
quarter/N
increased/V
to/T
$/$
51.1/C
million/C
,/,
or/C
58/C
cents/N
a/D
share/N
,/,
from/I
$/$
31.7/C
million/C
,/,
or/C
36/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
Sales/N
in/I
the/D
quarter/N
gained/V
29/C
%/N
to/T
$/$
410.4/C
million/C
from/I
$/$
317.7/C
million/C
a/D
year/N
earlier/R
./.
###/###
Claiborne/N
shares/N
closed/V
yesterday/N
at/I
$/$
25.125/C
,/,
up/R
50/C
cents/N
,/,
in/I
national/J
over-the-counter/J
trading/N
./.
###/###
Claiborne/N
's/P
directors/N
also/R
declared/V
its/P
regular/J
cash/N
dividend/N
payment/N
of/I
five/C
cents/N
a/D
share/N
payable/J
on/I
Dec./N
5/C
to/T
shareholders/N
of/I
record/N
at/I
the/D
close/N
of/I
business/N
on/I
Nov./N
13/C
./.
###/###
For/I
the/D
nine/C
months/N
,/,
net/J
income/N
rose/V
48/C
%/N
to/T
$/$
124.2/C
million/C
,/,
or/C
$/$
1.41/C
a/D
share/N
,/,
from/I
$/$
83.8/C
million/C
,/,
or/C
96/C
cents/N
a/D
share/N
a/D
year/N
earlier/R
./.
###/###
Sales/N
gained/V
16/C
%/N
to/T
$/$
1.03/C
billion/C
from/I
$/$
894/C
million/C
./.
###/###
Tokyo/N
stocks/N
closed/V
firmer/J
Monday/N
,/,
with/I
the/D
Nikkei/N
index/N
making/V
its/P
fifth/J
consecutive/J
daily/J
gain/N
./.
###/###
Stocks/N
also/R
rose/V
in/I
London/N
,/,
while/I
the/D
Frankfurt/N
market/N
was/V
mixed/J
./.
###/###
In/I
Tokyo/N
,/,
the/D
Nikkei/N
index/N
added/V
99.14/C
to/T
35585.52/C
./.
###/###
The/D
index/N
moved/V
above/I
35670/C
at/I
midmorning/N
,/,
nearly/R
reaching/V
the/D
record/N
of/I
35689.98/C
set/V
Sept./N
28/C
./.
###/###
But/C
the/D
market/N
lost/V
part/N
of/I
the/D
early/J
gains/N
on/I
index-linked/J
investment/N
trust/N
fund/N
selling/N
./.
###/###
In/I
early/R
trading/N
in/I
Tokyo/N
Tuesday/N
,/,
the/D
Nikkei/N
index/N
rose/V
1.08/C
points/N
to/T
35586.60/C
./.
###/###
On/I
Monday/N
,/,
traders/N
noted/V
that/I
some/D
investors/N
took/V
profits/N
against/I
the/D
backdrop/N
of/I
the/D
Nikkei/N
's/P
fast-paced/J
recovery/N
following/V
its/P
plunge/N
last/J
Monday/N
in/I
reaction/N
to/T
the/D
Oct./N
13/C
drop/N
in/I
New/N
York/N
stock/N
prices/N
./.
###/###
But/C
overall/J
buying/N
interest/N
remained/V
strong/J
through/I
Monday/N
,/,
with/I
many/J
observers/N
saying/V
they/P
expect/V
the/D
Nikkei/N
to/T
continue/V
with/I
moderate/J
gains/N
this/D
week/N
./.
###/###
Turnover/N
remained/V
relatively/R
small/J
./.
###/###
Volume/N
on/I
the/D
first/J
section/N
was/V
estimated/V
at/I
600/C
million/C
shares/N
,/,
down/R
from/I
1.03/C
billion/C
shares/N
Friday/N
./.
###/###
The/D
Tokyo/N
stock/N
price/N
index/N
of/I
first/J
section/N
issues/N
was/V
up/R
7.81/C
at/I
2687.53/C
./.
###/###
Relatively/R
stable/J
foreign/J
currency/N
dealings/N
Monday/N
were/V
viewed/V
favorably/R
by/I
market/N
players/N
,/,
traders/N
said/V
./.
###/###
But/C
institutional/J
investors/N
may/M
wait/V
a/D
little/R
longer/R
to/T
appraise/V
the/D
direction/N
of/I
the/D
U.S./N
monetary/J
policy/N
and/C
the/D
dollar/N
,/,
traders/N
said/V
./.
###/###
Hiroyuki/N
Wada/N
,/,
general/J
manager/N
of/I
the/D
stock/N
department/N
at/I
Okasan/N
Securities/N
,/,
said/V
Monday/N
's/P
trading/N
was/V
``/`
unfocused/J
./.
''/'
###/###
He/P
said/V
investors/N
were/V
picking/V
individual/J
stocks/N
based/V
on/I
specific/J
incentives/N
and/C
the/D
likelihood/N
of/I
a/D
wider/J
price/N
increase/N
over/I
the/D
short/J
term/N
./.
###/###
The/D
selective/J
approach/N
blurred/V
themes/N
such/J
as/I
domestic-demand/J
issues/N
,/,
large-capitalization/J
issues/N
or/C
high-technology/N
shares/N
,/,
which/W
had/V
been/V
providing/V
at/I
least/J
some/D
trading/N
direction/N
over/I
the/D
past/J
few/J
weeks/N
,/,
Mr./N
Wada/N
said/V
./.
###/###
Investors/N
took/V
profits/N
on/I
major/J
construction/N
shares/N
,/,
which/W
advanced/V
last/J
week/N
,/,
shifting/V
their/P
attention/N
to/T
some/D
midsize/J
companies/N
such/J
as/I
Aoki/N
Corp./N
,/,
Tobishima/N
and/C
Maeda/N
./.
###/###
Aoki/N
gained/V
60/C
yen/N
to/T
1,480/C
yen/N
-LRB-/-
$/$
10.40/C
-RRB-/-
./.
###/###
Some/D
pharmaceutical/J
shares/N
were/V
popular/J
on/I
rumors/N
related/V
to/T
new/J
products/N
to/T
be/V
introduced/V
at/I
a/D
cancer/N
conference/N
that/W
opened/V
in/I
Nagoya/N
./.
###/###
Teijin/N
was/V
up/R
15/C
at/I
936/C
,/,
and/C
Kyowa/N
Hakko/N
gained/V
30/C
to/T
1,770/C
./.
###/###
Mochida/N
advanced/V
40/C
to/T
4,440/C
./.
###/###
Fujisawa/N
continued/V
to/T
attract/V
investors/N
because/I
of/I
strong/J
earning/N
prospects/N
stemming/V
from/I
a/D
new/J
immune/J
control/N
agent/N
./.
###/###
Fujisawa/N
gained/V
50/C
to/T
2,060/C
./.
###/###
Kikkoman/N
was/V
up/R
30/C
to/T
1,600/C
,/,
receiving/V
investor/N
interest/N
for/I
its/P
land/N
property/N
holdings/N
near/I
Tokyo/N
,/,
a/D
trader/N
said/V
./.
###/###
London/N
prices/N
closed/V
modestly/R
higher/J
in/I
the/D
year/N
's/P
thinnest/J
turnover/N
,/,
a/D
condition/N
that/W
underscored/V
a/D
lack/N
of/I
conviction/N
ahead/R
of/I
a/D
U.K./N
balance/N
of/I
payments/N
report/N
Tuesday/N
./.
###/###
Limited/J
volume/N
ahead/R
of/I
the/D
September/N
trade/N
data/N
showed/V
the/D
market/N
is/V
nervous/J
,/,
but/C
dealers/N
added/V
that/I
the/D
day/N
's/P
modest/J
gains/N
also/R
signaled/V
some/D
support/N
for/I
London/N
equities/N
./.
###/###
They/P
pegged/V
the/D
support/N
largely/R
to/T
anticipation/N
that/I
Britain/N
's/P
current/J
account/N
imbalance/N
ca/M
n't/R
be/V
much/R
worse/J
than/I
the/D
near/J
record/J
deficits/N
seen/V
in/I
July/N
and/C
August/N
./.
###/###
``/`
It/P
's/V
a/D
case/N
of/I
the/D
market/N
being/V
too/R
high/J
to/T
buy/V
and/C
too/R
afraid/J
to/T
sell/V
,/,
''/'
a/D
senior/J
dealer/N
with/I
Kleinwort/N
Benson/N
Securities/N
said/V
./.
###/###
It/P
's/V
better/J
to/T
wait/V
./.
''/'
###/###
The/D
Financial/N
Times/N
100-share/J
index/N
finished/V
10.6/C
points/N
higher/J
at/I
2189.7/C
./.
###/###
The/D
30-share/J
index/N
closed/V
11.6/C
points/N
higher/J
at/I
1772.6/C
./.
###/###
Volume/N
was/V
276.8/C
million/C
shares/N
,/,
beneath/I
the/D
year/N
's/P
previous/J
low/J
of/I
280.5/C
million/C
shares/N
Sept./N
25/C
,/,
the/D
session/N
before/I
the/D
August/N
trade/N
figures/N
were/V
released/V
./.
###/###
Analysts/N
'/P
expectations/N
suggest/V
a/D
September/N
current/J
account/N
deficit/N
of/I
#/#
1.6/C
billion/C
-LRB-/-
$/$
2.54/C
billion/C
-RRB-/-
,/,
compared/V
with/I
August/N
's/P
#/#
2.0/C
billion/C
deficit/N
./.
###/###
Dealers/N
,/,
however/R
,/,
said/V
forecasts/N
are/V
broadly/R
divergent/J
with/I
estimates/N
ranging/V
between/I
#/#
#/#
billion/C
###/###
``/`
The/D
range/N
of/I
expectations/N
is/V
so/R
broad/J
,/,
''/'
a/D
dealer/N
at/I
another/D
major/J
U.K./N
brokerage/N
firm/N
said/V
,/,
``/`
the/D
deficit/N
may/M
have/V
to/T
be/V
nearer/I
or/C
above/I
#/#
2/C
billion/C
for/I
it/P
to/T
have/V
any/D
impact/N
on/I
the/D
market/N
./.
''/'
###/###
Lucas/N
Industries/N
,/,
a/D
British/J
automotive/J
and/C
aerospace/J
concern/N
,/,
rose/V
13/C
pence/N
to/T
614/C
pence/N
after/I
it/P
said/V
its/P
pretax/J
profit/N
for/I
the/D
year/N
rose/V
28/C
%/N
./.
###/###
Share/N
prices/N
on/I
the/D
Frankfurt/N
stock/N
exchange/N
closed/V
narrowly/R
mixed/J
in/I
quiet/J
dealings/N
after/I
recovering/V
most/J
of/I
their/P
early/J
losses/N
./.
###/###
The/D
DAX/N
index/N
eased/V
0.99/C
point/N
to/T
end/V
at/I
1523.22/C
after/I
falling/V
5.5/C
points/N
early/R
in/I
the/D
session/N
./.
###/###
Brokers/N
said/V
the/D
declines/N
early/R
in/I
the/D
day/N
were/V
partly/R
caused/V
by/I
losses/N
of/I
the/D
ruling/J
Christian-Democratic/N
Union/N
in/I
communal/J
elections/N
in/I
the/D
state/N
of/I
Baden-Wuerttemberg/N
./.
###/###
The/D
start/N
of/I
a/D
weeklong/J
conference/N
by/I
the/D
IG/N
Metall/N
metal/N
worker/N
union/N
in/I
Berlin/N
is/V
drawing/V
attention/N
to/T
the/D
impending/J
wage/N
negotiations/N
,/,
which/W
could/M
boost/V
companies/N
'/P
personnel/N
costs/V
next/J
year/N
,/,
they/P
said/V
./.
###/###
But/C
there/E
was/V
little/J
selling/N
pressure/N
,/,
and/C
even/R
small/J
orders/N
at/I
the/D
lower/J
levels/N
sufficed/V
to/T
bring/V
the/D
market/N
back/R
to/T
Friday/N
's/P
opening/N
levels/N
./.
###/###
Traders/N
said/V
the/D
thin/J
trading/N
volume/N
points/N
to/T
continued/J
uncertainty/N
by/I
most/J
investors/N
following/V
last/J
Monday/N
's/P
record/J
13/C
%/N
loss/N
./.
###/###
The/D
market/N
is/V
still/R
4/C
%/N
short/J
of/I
its/P
level/N
before/I
the/D
plunge/N
,/,
and/C
analysts/N
are/V
n't/R
sure/J
how/W
long/R
it/P
will/M
take/V
until/I
the/D
DAX/N
has/V
closed/V
that/D
gap/N
./.
###/###
But/C
Norbert/N
Braeuer/N
,/,
chief/J
trader/N
at/I
Hessische/N
Landesbank/N
Girozentrale/N
-LRB-/-
Helaba/N
-RRB-/-
,/,
said/V
he/P
expects/V
share/N
prices/N
to/T
move/V
upward/R
in/I
the/D
coming/J
weeks/N
./.
###/###
Banking/N
stocks/N
were/V
the/D
major/J
gainers/N
Monday/N
amid/I
hope/N
that/I
interest/N
rates/N
have/V
peaked/V
,/,
as/I
Deutsche/N
Bank/N
and/C
Dresdner/N
Bank/N
added/V
4/C
marks/N
each/D
to/T
664/C
marks/N
-LRB-/-
$/$
357/C
-RRB-/-
and/C
326/C
marks/N
,/,
respectively/R
./.
###/###
Commerzbank/N
gained/V
1/C
to/T
252.5/C
./.
###/###
Auto/N
shares/N
were/V
mixed/J
,/,
as/I
Daimler-Benz/N
firmed/V
2/C
to/T
723/C
,/,
Bayerische/N
Motoren/N
Werke/N
lost/V
the/D
same/J
amount/N
to/T
554/C
,/,
and/C
Volkswagen/N
inched/V
down/R
1.4/C
to/T
451.6/C
./.
###/###
Elsewhere/R
,/,
prices/N
closed/V
higher/J
in/I
Amsterdam/N
,/,
lower/J
in/I
Zurich/N
,/,
Stockholm/N
and/C
Milan/N
,/,
mixed/J
in/I
Brussels/N
and/C
unchanged/J
in/I
Paris/N
./.
###/###
Shares/N
closed/V
higher/J
in/I
Hong/N
Kong/N
,/,
Singapore/N
and/C
Manila/N
,/,
and/C
were/V
lower/J
in/I
Sydney/N
,/,
Seoul/N
and/C
Taipei/N
./.
###/###
Wellington/N
was/V
closed/V
./.
###/###
Here/R
are/V
price/N
trends/N
on/I
the/D
world/N
's/P
major/J
stock/N
markets/N
,/,
as/I
calculated/V
by/I
Morgan/N
Stanley/N
Capital/N
International/N
Perspective/N
,/,
Geneva/N
./.
###/###
To/T
make/V
them/P
directly/R
comparable/J
,/,
each/D
index/N
is/V
based/V
on/I
the/D
close/N
of/I
1969/C
equaling/V
100/C
./.
###/###
The/D
percentage/N
change/N
is/V
since/I
year-end/N
./.
###/###
Last/J
week/N
's/P
best/R
and/C
worst/R
performing/V
stocks/N
among/I
those/D
issues/N
that/W
make/V
up/R
80/C
%/N
of/I
the/D
world/N
's/P
stock/N
market/N
capitalization/N
-LRB-/-
in/I
local/J
currency/N
-RRB-/-
ISSUE/N
-LRB-/-
COUNTRY/N
-RRB-/-
CLOSE/N
###/###
Source/N
:/:
Morgan/N
Stanley/N
Capital/N
Intl/N
./.
###/###
Enviropact/N
Inc./N
said/V
it/P
entered/V
into/I
an/D
agreement/N
in/I
principle/N
to/T
sell/V
its/P
pump/N
and/C
tank/N
division/N
and/C
drilling/N
division/N
to/T
GSX/N
Chemical/N
Services/N
for/I
$/$
4/C
million/C
./.
###/###
The/D
Miami-based/J
environmental/J
engineering/N
concern/N
said/V
GSX/N
Chemical/N
also/R
will/M
assume/V
about/R
$/$
1.6/C
million/C
in/I
debt/N
related/V
to/T
those/D
divisions/N
./.
###/###
Further/R
,/,
GSX/N
will/M
buy/V
$/$
1/C
million/C
of/I
Enviropact/N
common/J
stock/N
,/,
at/I
$/$
2.625/C
a/D
share/N
,/,
plus/C
an/D
option/N
to/T
acquire/V
an/D
additional/J
$/$
1.5/C
million/C
of/I
common/N
at/I
the/D
same/J
price/N
,/,
the/D
company/N
said/V
./.
###/###
In/I
American/N
Stock/N
Exchange/N
composite/J
trading/N
yesterday/N
,/,
Enviropact/N
closed/V
at/I
$/$
3/C
a/D
share/N
,/,
up/R
25/C
cents/N
./.
###/###
Enviropact/N
said/V
the/D
two/C
divisions/N
account/V
for/I
about/R
$/$
8/C
million/C
of/I
the/D
company/N
's/P
$/$
20/C
million/C
in/I
annual/J
revenue/N
./.
###/###
The/D
transaction/N
is/V
expected/V
to/T
close/V
within/I
about/R
20/C
days/N
,/,
the/D
company/N
added/V
./.
###/###
Enviropact/N
said/V
the/D
proceeds/N
will/M
be/V
used/V
as/I
working/J
capital/N
for/I
expansion/N
and/C
to/T
pay/V
its/P
existing/J
tax/N
liability/N
of/I
about/R
$/$
1.5/C
million/C
that/W
was/V
due/J
Sept./N
15/C
./.
###/###
GSX/N
is/V
a/D
unit/N
of/I
Laidlaw/N
Transportation/N
Ltd./N
of/I
Burlington/N
,/,
Canada/N
./.
###/###
Monday/N
,/,
October/N
23/C
,/,
1989/C
###/###
The/D
key/J
U.S./N
and/C
foreign/J
annual/J
interest/N
rates/N
below/R
are/V
a/D
guide/N
to/T
general/J
levels/N
but/C
do/V
n't/R
always/R
represent/V
actual/J
transactions/N
./.
###/###
PRIME/J
RATE/N
:/:
10/C
%/N
./.
###/###
The/D
base/J
rate/N
on/I
corporate/J
loans/N
at/I
large/J
U.S./N
money/N
center/N
commercial/J
banks/N
./.
###/###
FEDERAL/J
FUNDS/N
:/:
8/C
%/N
high/J
,/,
8/C
%/N
low/J
,/,
8/C
%/N
near/I
closing/N
bid/N
,/,
8/C
%/N
offered/V
./.
###/###
Reserves/N
traded/V
among/I
commercial/J
banks/N
for/I
overnight/J
use/N
in/I
amounts/N
of/I
$/$
1/C
million/C
or/C
more/J
./.
###/###
Source/N
:/:
Fulton/N
Prebon/N
-LRB-/-
U.S.A/N
./.
-RRB-/-
Inc/N
./.
###/###
DISCOUNT/J
RATE/N
:/:
7/C
%/N
./.
###/###
The/D
charge/N
on/I
loans/N
to/T
depository/J
institutions/N
by/I
the/D
New/N
York/N
Federal/N
Reserve/N
Bank/N
./.
###/###
CALL/N
MONEY/N
:/:
9/C
%/N
to/T
10/C
%/N
./.
###/###
The/D
charge/N
on/I
loans/N
to/T
brokers/N
on/I
stock/N
exchange/N
collateral/N
./.
###/###
COMMERCIAL/J
PAPER/N
placed/V
directly/R
by/I
General/N
Motors/N
Acceptance/N
Corp./N
:/:
8.50/C
%/N
2/C
to/T
44/C
days/N
;/:
8.25/C
%/N
45/C
to/T
69/C
days/N
;/:
8.40/C
%/N
70/C
to/T
89/C
days/N
;/:
8.20/C
%/N
90/C
to/T
119/C
days/N
;/:
8.05/C
%/N
120/C
to/T
149/C
days/N
;/:
7.90/C
%/N
150/C
to/T
179/C
days/N
;/:
7.50/C
%/N
180/C
to/T
270/C
days/N
./.
###/###
COMMERCIAL/J
PAPER/N
:/:
High-grade/J
unsecured/J
notes/N
sold/V
through/I
dealers/N
by/I
major/J
corporations/N
in/I
multiples/N
of/I
$/$
1,000/C
:/:
8.575/C
%/N
30/C
days/N
;/:
8.50/C
%/N
60/C
days/N
;/:
8.45/C
%/N
90/C
days/N
./.
###/###
CERTIFICATES/N
OF/I
DEPOSIT/N
:/:
8.09/C
%/N
one/C
month/N
;/:
8.09/C
%/N
two/C
months/N
;/:
8.06/C
%/N
three/C
months/N
;/:
8/C
%/N
six/C
months/N
;/:
7.94/C
%/N
one/C
year/N
./.
###/###
Average/N
of/I
top/J
rates/N
paid/V
by/I
major/J
New/N
York/N
banks/N
on/I
primary/J
new/J
issues/N
of/I
negotiable/J
C.D.s/N
,/,
usually/R
on/I
amounts/N
of/I
$/$
1/C
million/C
and/C
more/J
./.
###/###
The/D
minimum/J
unit/N
is/V
$/$
100,000/C
./.
###/###
Typical/J
rates/N
in/I
the/D
secondary/J
market:8.60/N
%/N
one/C
month/N
;/:
8.60/C
%/N
three/C
months/N
;/:
8.40/C
%/N
six/C
months/N
./.
###/###
BANKERS/N
ACCEPTANCES/N
:/:
8.50/C
%/N
30/C
days/N
;/:
8.32/C
%/N
60/C
days/N
;/:
8.32/C
%/N
90/C
days/N
;/:
8.16/C
%/N
120/C
days/N
;/:
8.05/C
%/N
150/C
days/N
;/:
7.96/C
%/N
180/C
days/N
./.
###/###
Negotiable/J
,/,
bank-backed/J
business/N
credit/N
instruments/N
typically/R
financing/V
an/D
import/N
order/N
./.
###/###
LONDON/N
LATE/J
EURODOLLARS/N
:/:
8/C
%/N
to/T
8/C
%/N
one/C
month/N
;/:
8/C
%/N
to/T
8/C
%/N
two/C
months/N
;/:
8/C
%/N
to/T
8/C
%/N
three/C
months/N
;/:
8/C
%/N
to/T
8/C
%/N
four/C
months/N
;/:
8/C
%/N
to/T
8/C
%/N
five/C
months/N
;/:
8/C
%/N
to/T
8/C
%/N
six/C
months/N
./.
###/###
LONDON/N
INTERBANK/J
OFFERED/J
RATES/N
-LRB-/-
LIBOR/N
-RRB-/-
:/:
8/C
%/N
one/C
month/N
;/:
8/C
%/N
three/C
months/N
;/:
8/C
%/N
six/C
months/N
;/:
8/C
%/N
one/C
year/N
./.
###/###
The/D
average/N
of/I
interbank/J
offered/J
rates/N
for/I
dollar/N
deposits/N
in/I
the/D
London/N
market/N
based/V
on/I
quotations/N
at/I
five/C
major/J
banks/N
./.
###/###
FOREIGN/J
PRIME/J
RATES/N
:/:
Canada/N
13.50/C
%/N
;/:
Germany/N
9/C
%/N
;/:
Japan/N
4.875/C
%/N
;/:
Switzerland/N
8.50/C
%/N
;/:
Britain/N
15/C
%/N
./.
###/###
These/D
rate/N
indications/N
are/V
n't/R
directly/R
comparable/J
;/:
lending/N
practices/N
vary/V
widely/R
by/I
location/N
./.
###/###
Results/N
of/I
the/D
Monday/N
,/,
October/N
23/C
,/,
1989/C
,/,
auction/N
of/I
short-term/J
U.S./N
government/N
bills/N
,/,
sold/V
at/I
a/D
discount/N
from/I
face/N
value/N
in/I
units/N
of/I
$/$
10,000/C
to/T
$/$
1/C
million/C
:/:
7.52/C
%/N
,/,
13/C
weeks/N
;/:
7.50/C
%/N
,/,
26/C
weeks/N
./.
###/###
FEDERAL/N
HOME/N
LOAN/N
MORTGAGE/N
CORP/N
./.
-LRB-/-
Freddie/N
Mac/N
-RRB-/-
:/:
Posted/V
yields/N
on/I
30-year/J
mortgage/N
commitments/N
for/I
delivery/N
within/I
30/C
days./N
9.86/C
%/N
,/,
standard/J
conventional/J
fixed-rate/J
mortgages/N
;/:
7.875/C
%/N
,/,
2/C
%/N
rate/N
capped/J
one-year/J
adjustable/J
rate/N
mortgages/N
./.
###/###
Source/N
:/:
Telerate/N
Systems/N
Inc/N
./.
###/###
FEDERAL/N
NATIONAL/N
MORTGAGE/N
ASSOCIATION/N
-LRB-/-
Fannie/N
Mae/N
-RRB-/-
:/:
Posted/V
yields/N
on/I
30/C
year/N
mortgage/N
commitments/N
for/I
delivery/N
within/I
30/C
days/N
-LRB-/-
priced/V
at/I
par/N
9.80/C
%/N
,/,
standard/J
conventional/J
fixed-rate/J
mortgages/N
;/:
8.75/C
%/N
,/,
rate/N
capped/J
one-year/J
adjustable/J
rate/N
mortgages/N
./.
###/###
Source/N
:/:
Telerate/N
Systems/N
Inc/N
./.
###/###
MERRILL/N
LYNCH/N
READY/N
ASSETS/N
TRUST/N
:/:
8.56/C
%/N
./.
###/###
Annualized/J
average/J
rate/N
of/I
return/N
after/I
expenses/N
for/I
the/D
past/J
30/C
days/N
;/:
not/R
a/D
forecast/N
of/I
future/J
returns/N
./.
###/###
Bankers/N
Trust/N
New/N
York/N
Corp./N
,/,
as/I
expected/V
,/,
reported/V
a/D
third-quarter/J
loss/N
of/I
$/$
1.42/C
billion/C
,/,
or/C
$/$
17.39/C
a/D
share/N
,/,
following/V
its/P
$/$
1.6/C
billion/C
boost/N
in/I
reserves/N
for/I
losses/N
on/I
loans/N
to/T
less-developed/J
countries/N
./.
###/###
The/D
loss/N
compares/V
with/I
net/J
income/N
of/I
$/$
162.1/C
million/C
,/,
or/C
$/$
2.01/C
a/D
share/N
,/,
in/I
the/D
year-earlier/J
period/N
./.
###/###
Interest/N
income/N
rose/V
29/C
%/N
to/T
about/R
$/$
1.35/C
billion/C
from/I
$/$
1.05/C
billion/C
./.
###/###
The/D
New/N
York/N
bank/N
holding/N
company/N
's/P
assets/N
at/I
Sept./N
30/C
climbed/V
to/T
$/$
59.4/C
billion/C
from/I
$/$
57.9/C
billion/C
./.
###/###
Excluding/V
the/D
increase/N
in/I
loan-loss/J
reserves/N
,/,
Bankers/N
Trust/N
said/V
third-quarter/J
net/J
income/N
would/M
have/V
increased/V
11/C
%/N
to/T
$/$
180/C
million/C
./.
###/###
A/D
number/N
of/I
major/J
banks/N
have/V
posted/V
big/J
losses/N
after/I
sharply/R
increasing/V
loan-loss/J
reserves/N
./.
###/###
Most/J
of/I
the/D
loans/N
in/I
question/N
are/V
to/T
Third/N
World/N
countries/N
in/I
South/N
America/N
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
yesterday/N
,/,
Bankers/N
Trust/N
fell/V
12.5/C
cents/N
to/T
$/$
50.50/C
./.
###/###
BRISTOL-MYERS/N
SQUIBB/N
Co/N
./.
-LRB-/-
New/N
York/N
-RRB-/-
--/:
Gerald/N
C./N
Beddall/N
,/,
47/C
years/N
old/J
,/,
was/V
named/V
president/N
of/I
the/D
Clairol/N
division/N
of/I
this/D
pharmaceuticals/N
and/C
health-care/N
company/N
./.
###/###
He/P
succeeds/V
C./N
Benjamin/N
Brooks/N
Jr./N
,/,
who/W
will/M
retire/V
Nov./N
1/C
./.
###/###
Mr./N
Brooks/N
declined/V
to/T
give/V
his/P
age/N
,/,
but/C
he/P
said/V
his/P
leaving/N
is/V
a/D
normal/J
retirement/N
./.
###/###
Mr./N
Beddall/N
had/V
been/V
executive/J
vice/N
president/N
of/I
the/D
division/N
since/I
April/N
./.
###/###
Clairol/N
,/,
which/W
makes/V
hair/N
and/C
skin/N
products/N
,/,
was/V
a/D
division/N
of/I
Bristol-Myers/N
Co./N
before/I
that/D
company/N
's/P
merger/N
with/I
Squibb/N
Corp/N
./.
###/###
Annualized/J
interest/N
rates/N
on/I
certain/J
investments/N
as/I
reported/V
by/I
the/D
Federal/N
Reserve/N
Board/N
on/I
a/D
weekly-average/J
basis/N
:/:
###/###
a-Discounted/L
rate/N
./.
###/###
b-Week/L
ended/V
Wednesday/N
,/,
October/N
18/C
,/,
1989/C
and/C
Wednesday/N
October/N
11/C
,/,
1989/C
./.
###/###
c-Yields/L
,/,
adjusted/V
for/I
constant/J
maturity/N
./.
###/###
American/N
Telephone/N
&/C
Telegraph/N
Co./N
said/V
it/P
will/M
spend/V
$/$
20/C
million/C
to/T
build/V
a/D
factory/N
in/I
Guadalajara/N
,/,
Mexico/N
,/,
to/T
make/V
telephone/N
answering/N
machines/N
./.
###/###
Construction/N
of/I
the/D
265,000-square-foot/J
facility/N
will/M
begin/V
next/J
year/N
,/,
with/I
production/N
expected/V
to/T
start/V
in/I
late/J
1991/C
./.
###/###
When/W
fully/R
operational/J
,/,
the/D
Guadalajara/N
factory/N
will/M
employ/V
about/R
1,500/C
workers/N
and/C
have/V
annual/J
operating/N
expenses/N
of/I
$/$
5/C
million/C
to/T
$/$
6/C
million/C
./.
###/###
An/D
AT&T/N
representative/N
said/V
that/I
the/D
Guadalajara/N
factory/N
will/M
make/V
a/D
full/J
line/N
of/I
answering/N
machines/N
./.
###/###
AT&T/N
already/R
has/V
a/D
factory/N
in/I
Matamoros/N
,/,
Mexico/N
,/,
to/T
make/V
electrical/J
devices/N
./.
###/###
It/P
also/R
purchases/V
data/N
systems/N
products/N
from/I
a/D
manufacturer/N
based/V
in/I
Monterrey/N
./.
###/###
Lucas/N
Industries/N
PLC/N
,/,
a/D
British/J
maker/N
of/I
industrial/J
parts/N
and/C
systems/N
,/,
reported/V
a/D
28/C
%/N
rise/N
in/I
pretax/J
profit/N
for/I
the/D
year/N
to/T
July/N
31/C
,/,
helped/V
in/I
particular/J
by/I
a/D
32/C
%/N
jump/N
in/I
operating/N
profit/N
at/I
its/P
aerospace/J
division/N
./.
###/###
Pretax/J
profit/N
in/I
the/D
latest/J
year/N
climbed/V
to/T
#/#
187.1/C
million/C
-LRB-/-
$/$
297.1/C
million/C
-RRB-/-
from/I
#/#
146.3/C
million/C
-LRB-/-
$/$
232.3/C
million/C
-RRB-/-
./.
###/###
Profit/N
after/I
taxes/N
and/C
minority/N
interests/N
but/C
before/I
extraordinary/J
items/N
climbed/V
27/C
%/N
to/T
#/#
#/#
million/C
,/,
with/I
earnings/N
per/I
share/N
rising/V
to/T
85.1/C
pence/N
-LRB-/-
$/$
1.35/C
-RRB-/-
from/I
79.4/C
pence/N
-LRB-/-
$/$
1.26/C
-RRB-/-
./.
###/###
The/D
results/N
were/V
at/I
the/D
upper/J
end/N
of/I
market/N
expectations/N
,/,
which/W
ranged/V
from/I
#/#
#/#
million/C
###/###
TW/N
Services/N
Inc./N
posted/V
a/D
$/$
3.3/C
million/C
third-quarter/J
net/J
loss/N
,/,
compared/V
with/I
a/D
$/$
24.9/C
million/C
profit/N
,/,
reflecting/V
$/$
60/C
million/C
of/I
expenses/N
related/V
to/T
its/P
much-publicized/J
proposed/J
takeover/N
by/I
Coniston/N
Partners/N
./.
###/###
The/D
per-share/J
loss/N
for/I
the/D
Paramus/N
,/,
N.J./N
,/,
food-services/N
concern/N
totaled/V
seven/C
cents/N
,/,
compared/V
with/I
earnings/N
of/I
51/C
cents/N
a/D
share/N
a/D
year/N
earlier/R
./.
###/###
Revenue/N
rose/V
5/C
%/N
to/T
$/$
981.7/C
million/C
from/I
$/$
934.7/C
million/C
./.
###/###
Coniston/N
,/,
a/D
New/N
York/N
investment/N
partnership/N
,/,
awaits/V
a/D
vote/N
by/I
TW/N
's/P
shareholders/N
,/,
scheduled/V
for/I
Friday/N
,/,
on/I
Coniston/N
's/P
$/$
34-a-share/J
,/,
or/C
$/$
1.66/C
billion/C
,/,
offer/N
for/I
TW/N
./.
###/###
Nine-month/J
net/J
income/N
dropped/V
47/C
%/N
to/T
$/$
26.3/C
million/C
or/C
,/,
,/,
$/$
1.02/C
a/D
share/N
./.
###/###
Revenue/N
rose/V
6/C
%/N
to/T
$/$
2.79/C
billion/C
from/I
$/$
2.63/C
billion/C
./.
###/###
Cummins/N
Engine/N
Co./N
,/,
Columbus/N
,/,
Ind./N
,/,
hurt/V
by/I
a/D
drop/N
in/I
engine/N
orders/N
from/I
heavy-truck/N
makers/N
,/,
reported/V
a/D
third-quarter/J
loss/N
of/I
$/$
39.7/C
million/C
,/,
or/C
$/$
4.12/C
a/D
share/N
,/,
on/I
essentially/R
flat/J
sales/N
of/I
$/$
807.6/C
million/C
./.
###/###
In/I
the/D
year-earlier/J
period/N
,/,
the/D
maker/N
of/I
diesel/J
engines/N
and/C
parts/N
had/V
a/D
narrower/J
deficit/N
of/I
$/$
17.6/C
million/C
,/,
or/C
$/$
1.84/C
a/D
share/N
,/,
with/I
sales/N
of/I
$/$
808.3/C
million/C
./.
###/###
A/D
spokeswoman/N
said/V
shipments/N
of/I
truck/N
engines/N
,/,
which/W
provide/V
a/D
higher/J
margin/N
than/I
most/J
of/I
the/D
company/N
's/P
other/J
products/N
,/,
declined/V
16/C
%/N
from/I
a/D
year/N
earlier/R
./.
###/###
Although/I
Cummins/N
's/P
stock/N
stumbled/V
last/J
month/N
after/I
the/D
company/N
projected/V
a/D
``/`
substantial/J
''/'
third-period/J
loss/N
,/,
the/D
stock/N
also/R
fell/V
$/$
1.125/C
in/I
composite/J
New/N
York/N
Stock/N
Exchange/N
trading/N
yesterday/N
,/,
to/T
$/$
51.75/C
./.
###/###
It/P
traded/V
as/R
high/J
as/I
$/$
64/C
a/D
month/N
ago/R
,/,
before/I
the/D
loss/N
projection/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
the/D
latest/J
loss/N
trimmed/V
net/J
income/N
to/T
$/$
3.6/C
million/C
,/,
which/W
after/I
payment/N
of/I
preferred/J
dividends/N
represented/V
a/D
31-cent/J
loss/N
a/D
common/J
share/N
./.
###/###
The/D
year-before/J
loss/N
was/V
$/$
8.4/C
million/C
,/,
or/C
$/$
1.36/C
a/D
common/J
share/N
./.
###/###
Exxon/N
Corp./N
filed/V
suit/N
against/I
the/D
state/N
of/I
Alaska/N
,/,
charging/V
state/N
officials/N
interfered/V
with/I
the/D
oil/N
company/N
's/P
initial/J
efforts/N
to/T
treat/V
last/J
spring/N
's/P
giant/J
oil/N
spill/N
./.
###/###
The/D
action/N
is/V
a/D
counterclaim/N
to/T
a/D
suit/N
filed/V
by/I
Alaska/N
in/I
August/N
against/I
Exxon/N
and/C
six/C
other/J
oil/N
companies/N
./.
###/###
The/D
state/N
's/P
suit/N
alleges/V
that/I
Exxon/N
's/P
response/N
to/T
the/D
spill/N
failed/V
to/T
prevent/V
contamination/N
of/I
hundreds/N
of/I
miles/N
of/I
shoreline/N
along/I
Prince/N
William/N
Sound/N
./.
###/###
That/D
suit/N
and/C
Exxon/N
's/P
countersuit/N
were/V
filed/V
in/I
a/D
state/N
court/N
in/I
Anchorage/N
./.
###/###
Neither/D
suit/N
lists/V
specific/J
dollar/N
claims/N
,/,
largely/R
because/I
damage/N
assessment/N
has/V
n't/R
yet/R
been/V
completed/V
./.
###/###
Legal/J
strategists/N
say/V
that/I
damage/N
claims/N
against/I
the/D
oil/N
giant/N
and/C
others/N
could/M
well/R
exceed/V
$/$
1/C
billion/C
./.
###/###
Litigation/N
,/,
if/I
not/R
settled/V
out/I
of/I
court/N
,/,
could/M
drag/V
on/R
for/I
years/N
./.
###/###
Exxon/N
said/V
in/I
its/P
suit/N
that/I
it/P
will/M
seek/V
reimbursement/N
from/I
the/D
state/N
for/I
that/D
part/N
of/I
the/D
cleanup/N
costs/N
and/C
damage/N
claims/N
it/P
says/V
resulted/V
from/I
the/D
state/N
's/P
conduct/N
./.
###/###
The/D
oil/N
company/N
claims/V
that/I
Alaskan/J
officials/N
prevented/V
Exxon/N
from/I
spraying/V
dispersant/N
onto/I
the/D
almost/R
11/C
million/C
gallons/N
of/I
oil/N
dumped/V
when/W
one/C
of/I
its/P
tankers/N
ran/V
into/I
an/D
underwater/J
reef/N
./.
###/###
Craig/N
Tillery/N
,/,
an/D
Alaska/N
assistant/J
attorney/N
general/N
,/,
said/V
in/I
an/D
interview/N
last/J
night/N
that/I
Exxon/N
's/P
accusations/N
``/`
are/V
not/R
new/J
./.
###/###
Exxon/N
has/V
made/V
them/P
before/R
,/,
at/I
which/W
point/N
the/D
state/N
demonstrated/V
they/P
were/V
untrue/J
./.
###/###
The/D
state/N
will/M
vigorously/R
defend/V
against/I
any/D
counterclaim/N
./.
''/'
###/###
Since/I
the/D
spill/N
last/J
March/N
,/,
Exxon/N
and/C
the/D
state/N
have/V
been/V
wrangling/V
over/I
whether/I
spraying/V
dispersant/N
on/I
the/D
oil/N
in/I
the/D
first/J
hours/N
after/I
the/D
spill/N
,/,
when/W
the/D
weather/N
was/V
clear/J
and/C
calm/J
,/,
would/M
have/V
helped/V
limit/V
the/D
environmental/J
damage/N
./.
###/###
Exxon/N
claims/V
that/I
use/N
of/I
dispersants/N
,/,
which/W
break/V
an/D
oil/N
slick/N
into/I
microscopic/J
droplets/N
,/,
was/V
a/D
crucial/J
part/N
of/I
its/P
immediate-response/J
plan/N
and/C
that/I
state/N
officials/N
banned/V
their/P
use/N
during/I
the/D
two/C
days/N
of/I
fair/J
weather/N
following/V
the/D
spill/N
./.
###/###
The/D
oil/N
company/N
claims/V
that/I
it/P
had/V
permission/N
from/I
the/D
U.S./N
Environmental/N
Protection/N
Agency/N
prior/R
to/T
the/D
spill/N
to/T
use/V
dispersant/N
during/I
such/P
an/D
incident/N
at/I
the/D
discretion/N
of/I
the/D
U.S./N
Coast/N
Guard/N
./.
###/###
The/D
state/N
's/P
opposition/N
to/T
the/D
use/N
of/I
dispersants/N
,/,
Exxon/N
says/V
,/,
caused/V
the/D
Coast/N
Guard/N
``/`
to/T
delay/V
granting/V
permission/N
./.
''/'
###/###
Alaskan/J
and/C
Coast/N
Guard/N
officials/N
say/V
Exxon/N
's/P
charges/N
are/V
n't/R
relevant/J
because/I
tests/N
conducted/V
during/I
the/D
first/J
two/C
days/N
following/V
the/D
spill/N
showed/V
that/I
the/D
dispersant/N
was/V
n't/R
working/V
anyway/R
./.
###/###
Use/N
of/I
dispersants/N
was/V
approved/V
when/W
a/D
test/N
on/I
the/D
third/J
day/N
showed/V
some/D
positive/J
results/N
,/,
officials/N
said/V
./.
###/###
Meson/N
Investment/N
Ltd./N
,/,
a/D
Vancouver/N
,/,
B.C.-based/J
investment/N
firm/N
,/,
said/V
it/P
raised/V
its/P
stake/N
in/I
Verit/N
Industries/N
to/T
8.9/C
%/N
of/I
the/D
common/J
shares/N
outstanding/J
./.
###/###
In/I
a/D
Securities/N
and/C
Exchange/N
Commission/N
filing/N
,/,
Meson/N
said/V
it/P
holds/V
67,400/C
Verit/N
common/J
shares/N
,/,
including/V
net/J
purchases/N
of/I
8,100/C
shares/N
bought/V
from/I
Oct./N
10/C
,/,
1988/C
,/,
to/T
Oct./N
11/C
,/,
1989/C
,/,
for/I
$/$
3.875/C
to/T
$/$
7/C
each/D
./.
###/###
Meson/N
is/V
the/D
personal/J
holding/N
company/N
of/I
Steven/N
Morfey/N
,/,
a/D
Vancouver/N
securities/N
dealer/N
./.
###/###
He/P
said/V
the/D
transaction/N
was/V
made/V
for/I
investment/N
purposes/N
./.
###/###
Officials/N
for/I
Sun/N
Valley/N
,/,
Calif.-based/J
Verit/N
could/M
n't/R
be/V
reached/V
for/I
comment/N
./.
###/###
In/I
composite/J
trading/N
on/I
the/D
American/N
Stock/N
Exchange/N
,/,
Verit/N
closed/V
unchanged/J
yesterday/N
at/I
$/$
3.875/C
a/D
share/N
./.
###/###
The/D
House/N
Appropriations/N
Committee/N
approved/V
an/D
estimated/J
$/$
2.85/C
billion/C
in/I
emergency/N
funding/N
to/T
assist/V
California/N
's/P
recovery/N
from/I
last/J
week/N
's/P
earthquake/N
and/C
to/T
extend/V
further/J
aid/N
to/T
East/N
Coast/N
victims/N
of/I
Hurricane/N
Hugo/N
./.
###/###
The/D
package/N
was/V
termed/V
excessive/J
by/I
the/D
Bush/N
administration/N
,/,
but/C
it/P
also/R
provoked/V
a/D
struggle/N
with/I
influential/J
California/N
lawmakers/N
who/W
sought/V
unsuccessfully/R
to/T
add/V
nearly/R
$/$
1/C
billion/C
more/J
and/C
waive/V
current/J
restrictions/N
to/T
expedite/V
the/D
distribution/N
of/I
funds/N
./.
###/###
By/I
a/D
26-7/J
margin/N
,/,
the/D
committee/N
scuttled/V
the/D
more/R
expensive/J
alternative/N
,/,
and/C
the/D
debate/N
forced/V
a/D
strained/J
confrontation/N
between/I
Appropriations/N
Committee/N
Chairman/N
Jamie/N
Whitten/N
-LRB-/-
D./N
,/,
Miss/N
./.
-RRB-/-
and/C
his/P
party/N
's/P
largest/J
state/N
delegation/N
in/I
the/D
House/N
./.
###/###
``/`
I/P
have/V
no/D
regrets/N
about/I
going/V
forward/R
,/,
''/'
said/V
Rep./N
Vic/N
Fazio/N
-LRB-/-
D.,Calif./N
-RRB-/-
,/,
who/W
sought/V
later/R
to/T
play/V
down/R
the/D
sometimes/R
hostile/J
tone/N
of/I
the/D
long/J
evening/N
meeting/N
./.
###/###
``/`
We/P
are/V
the/D
Golden/N
State/N
,/,
''/'
Mr./N
Fazio/N
said/V
,/,
``/`
and/C
there/E
is/V
a/D
certain/J
amount/N
of/I
jealousy/N
./.
''/'
###/###
The/D
$/$
2.85/C
billion/C
package/N
incorporates/V
$/$
500/C
million/C
for/I
small-business/N
loans/N
,/,
$/$
1/C
billion/C
in/I
highway/N
construction/N
funds/N
,/,
and/C
$/$
1.35/C
billion/C
divided/V
between/I
general/J
emergency/N
assistance/N
and/C
a/D
reserve/N
to/T
be/V
available/J
to/T
President/N
Bush/N
to/T
meet/V
unanticipated/J
costs/N
from/I
the/D
two/C
disasters/N
./.
###/###
The/D
funding/V
is/V
attached/V
to/T
a/D
stopgap/J
bill/N
to/T
keep/V
most/J
of/I
the/D
government/N
operating/V
through/I
Nov./N
15/C
./.
###/###
The/D
measure/N
is/V
expected/V
to/T
come/V
before/I
the/D
House/N
today/N
,/,
and/C
Congress/N
is/V
under/I
pressure/N
to/T
complete/V
action/N
before/I
midnight/N
EDT/N
tomorrow/N
,/,
when/W
the/D
current/N
continuing/J
resolution/N
expires/V
./.
###/###
Given/V
California/N
's/P
size/N
and/C
political/J
importance/N
,/,
the/D
White/N
House/N
is/V
eager/J
to/T
appear/V
generous/J
./.
###/###
But/C
in/I
private/J
meetings/N
yesterday/N
,/,
Budget/N
Director/N
Richard/N
Darman/N
argued/V
that/I
only/R
$/$
1.5/C
billion/C
in/I
new/J
federal/J
appropriations/N
are/V
needed/V
to/T
supplement/V
existing/J
resources/N
./.
###/###
A/D
White/N
House/N
budget/N
office/N
analysis/N
estimates/V
that/I
$/$
500/C
million/C
--/:
or/C
half/P
the/D
level/N
in/I
the/D
committee/N
bill/N
--/:
is/V
needed/V
for/I
highway/N
assistance/N
to/T
meet/V
California/N
's/P
needs/N
,/,
and/C
the/D
administration/N
rejects/V
the/D
notion/N
that/I
new/J
appropriations/N
are/V
needed/V
to/T
finance/V
disaster/N
loans/N
by/I
the/D
Small/N
Business/N
Administration/N
./.
###/###
``/`
Everybody/N
appreciates/V
that/I
it/P
is/V
a/D
national/J
disaster/N
and/C
that/I
we/P
've/V
got/V
to/T
address/V
it/P
,/,
''/'
said/V
Mr./N
Darman/N
,/,
who/W
came/V
to/T
the/D
Capitol/N
to/T
meet/V
with/I
Mr./N
Whitten/N
and/C
California/N
lawmakers/N
before/I
the/D
committee/N
session/N
./.
###/###
I/P
would/M
hope/V
very/R
much/R
that/I
we/P
would/M
n't/R
end/V
up/R
in/I
a/D
kind/N
of/I
situation/N
where/W
you/P
have/V
a/D
bidding/N
war/N
and/C
then/R
a/D
veto/N
threat/N
./.
''/'
###/###
Although/I
this/D
White/N
House/N
pressure/N
was/V
clearly/R
a/D
factor/N
among/I
committee/N
Republicans/N
,/,
no/D
single/J
influence/N
was/V
greater/J
than/I
Mr./N
Whitten/N
./.
###/###
A/D
master/N
of/I
pork-barrel/J
politics/N
,/,
he/P
had/V
crafted/V
the/D
$/$
2.85/C
billion/C
package/N
in/I
vintage/J
style/N
and/C
used/V
the/D
full/J
force/N
of/I
his/P
chairmanship/N
to/T
keep/V
the/D
proposal/N
intact/J
and/C
dismiss/V
any/D
alternative/N
./.
###/###
When/W
Mr./N
Fazio/N
offered/V
the/D
California-backed/J
$/$
3.84/C
billion/C
plan/N
,/,
Mr./N
Whitten/N
insisted/V
that/I
the/D
full/J
14/C
pages/N
be/V
read/V
aloud/R
by/I
the/D
panel/N
's/P
clerk/N
to/T
underscore/V
the/D
range/N
of/I
legislative/J
changes/N
also/R
sought/V
by/I
the/D
delegation/N
./.
###/###
On/I
the/D
chairman/N
's/P
motion/N
,/,
the/D
California/N
package/N
was/V
subsequently/R
reduced/V
to/T
less-binding/J
report/N
language/N
,/,
and/C
even/R
when/W
this/D
was/V
accepted/V
as/I
such/J
on/I
a/D
voice/N
vote/N
,/,
Mr./N
Whitten/N
pointedly/R
opposed/V
it/P
./.
###/###
More/R
important/J
than/I
money/N
in/I
many/J
cases/N
are/V
waivers/N
California/N
is/V
seeking/V
on/I
current/J
restrictions/N
covering/V
federal/J
highway/N
funds/N
,/,
such/J
as/I
a/D
$/$
100/C
million/C
cap/N
on/I
how/W
much/J
any/D
single/J
state/N
can/M
receive/V
in/I
emergency/N
funds/N
in/I
a/D
year/N
./.
###/###
Mr./N
Whitten/N
's/P
package/N
appears/V
to/T
accomplish/V
this/D
purpose/N
,/,
but/C
the/D
state/N
faces/V
more/J
resistance/N
in/I
its/P
bid/N
for/I
an/D
extended/J
waiver/N
on/I
having/V
to/T
put/V
up/R
any/D
matching/J
funds/N
on/I
repairs/N
completed/V
in/I
the/D
next/J
six/C
months/N
./.
###/###
A/D
member/N
in/I
the/D
House/N
leadership/N
and/C
skilled/J
legislator/N
,/,
Mr./N
Fazio/N
nonetheless/R
found/V
himself/P
burdened/V
not/R
only/R
by/I
California/N
's/P
needs/N
but/C
by/I
Hurricane/N
Hugo/N
amendments/N
he/P
accepted/V
in/I
a/D
vain/J
effort/N
to/T
build/V
support/N
in/I
the/D
panel/N
./.
###/###
The/D
California/N
Democrat/N
appeared/V
embarrassed/J
by/I
provisions/N
inserted/V
on/I
behalf/N
of/I
owners/N
of/I
private/J
beaches/N
in/I
the/D
Virgin/N
Islands/N
,/,
and/C
lumber/N
interests/N
sought/V
to/T
add/V
another/D
$/$
100/C
million/C
in/I
federal/J
aid/N
to/T
plant/N
timber/N
on/I
private/J
land/N
in/I
North/N
and/C
South/N
Carolina/N
./.
###/###
California/N
's/P
high-priced/J
real/J
estate/N
puts/V
it/P
in/I
an/D
awkward/J
position/N
,/,
too/R
./.
###/###
One/C
provision/N
last/J
night/N
would/M
have/V
raised/V
the/D
cap/N
on/I
disaster/N
loans/N
to/T
$/$
500,000/C
from/I
$/$
100,000/C
per/I
household/N
to/T
accommodate/V
San/N
Francisco/N
losses/N
./.
###/###
Kurzweil/N
Music/N
Systems/N
Inc./N
said/V
it/P
retained/V
Kidder/N
,/,
Peabody/N
&/C
Co./N
to/T
study/V
financial/J
alternatives/N
,/,
including/V
the/D
possible/J
sale/N
of/I
the/D
financially/R
struggling/V
company/N
./.
###/###
Kurzweil/N
,/,
Waltham/N
,/,
Mass./N
,/,
makes/V
digital/J
electronic/J
keyboard/N
instruments/N
used/V
by/I
professional/J
recording/V
musicians/N
./.
###/###
It/P
recently/R
introduced/V
a/D
line/N
for/I
the/D
home/N
market/N
./.
###/###
However/R
,/,
Raymond/N
C./N
Kurzweil/N
,/,
chairman/N
and/C
chief/J
executive/N
,/,
said/V
``/`
The/D
company/N
continues/V
to/T
require/V
additional/J
funding/N
to/T
realize/V
the/D
potential/N
of/I
its/P
technology/N
./.
''/'
###/###
In/I
the/D
year/N
's/P
first/J
six/C
months/N
,/,
Kurzweil/N
had/V
a/D
loss/N
of/I
$/$
6.9/C
million/C
on/I
sales/N
of/I
$/$
11.2/C
million/C
./.
###/###
Last/J
month/N
its/P
president/N
,/,
John/N
S./N
Donnelly/N
,/,
resigned/V
citing/V
``/`
management/N
differences/N
''/'
with/I
Mr./N
Kurzweil/N
./.
###/###
Amtech/N
Systems/N
Inc./N
,/,
Tempe/N
,/,
Ariz./N
,/,
said/V
its/P
preliminary/J
year-end/J
results/N
of/I
operations/N
indicate/V
``/`
substantial/J
improvement/N
''/'
over/I
the/D
previous/J
fiscal/J
year/N
./.
###/###
Amtech/N
,/,
which/W
makes/V
an/D
automated/J
process/N
system/N
that/W
improves/V
the/D
yields/N
of/I
semiconductor/N
manufacturers/N
,/,
said/V
profit/N
for/I
the/D
year/N
ended/V
Sept./N
30/C
rose/V
to/T
more/J
than/I
$/$
800,000/C
from/I
$/$
446,000/C
last/J
year/N
./.
###/###
Per-share/J
earnings/N
are/V
estimated/V
at/I
more/J
than/I
40/C
cents/N
,/,
up/R
from/I
22/C
cents/N
for/I
fiscal/J
1988/C
./.
###/###
Total/J
revenue/N
is/V
expected/V
to/T
double/V
to/T
more/J
than/I
$/$
22/C
million/C
from/I
$/$
10.8/C
million/C
./.
###/###
Amtech/N
,/,
which/W
also/R
provides/V
technical/J
temporary/J
employment/N
services/N
to/T
aerospace/J
,/,
defense/N
,/,
computer/N
and/C
high-tech/J
companies/N
in/I
the/D
Southwest/N
and/C
Baltimore-Washington/N
areas/N
,/,
said/V
its/P
final/J
audited/J
results/N
are/V
due/J
in/I
late/J
November/N
./.
###/###
The/D
company/N
attributed/V
the/D
improvement/N
to/T
strong/J
demand/N
in/I
the/D
semiconductor/N
equipment/N
segment/N
as/R
well/R
as/I
the/D
acquisition/N
of/I
Echelon/N
Service/N
Co./N
and/C
the/D
inclusion/N
of/I
a/D
full/J
year/N
's/P
results/N
of/I
operations/N
for/I
RTS/N
Inc./N
,/,
compared/V
with/I
seven/C
months/N
'/P
results/N
for/I
the/D
prior/J
year/N
./.
###/###
LDI/N
Corp./N
,/,
Cleveland/N
,/,
said/V
it/P
will/M
offer/V
$/$
50/C
million/C
in/I
commercial/J
paper/N
backed/V
by/I
lease-rental/J
receivables/N
./.
###/###
The/D
program/N
matches/V
funds/N
raised/V
from/I
the/D
sale/N
of/I
the/D
commercial/J
paper/N
with/I
small/J
to/T
medium-sized/J
leases/N
./.
###/###
LDI/N
termed/V
the/D
paper/N
``/`
non-recourse/J
financing/N
,/,
''/'
meaning/V
that/I
investors/N
would/M
be/V
repaid/V
from/I
the/D
lease/N
receivables/N
,/,
rather/R
than/I
directly/R
by/I
LDI/N
Corp/N
./.
###/###
LDI/N
leases/V
and/C
sells/V
data-processing/N
,/,
telecommunications/N
and/C
other/J
high-tech/J
equipment/N
./.
###/###
SHEVARDNADZE/N
ADMITTED/V
that/I
Moscow/N
violated/V
the/D
1972/C
ABM/N
treaty/N
./.
###/###
In/I
a/D
foreign-policy/N
address/N
before/I
the/D
Soviet/J
legislature/N
,/,
the/D
foreign/J
minister/N
conceded/V
that/I
the/D
radar/N
station/N
in/I
Krasnoyarsk/N
breached/V
the/D
superpower/N
Anti-Ballistic/N
Missile/N
treaty/N
and/C
said/V
it/P
would/M
be/V
dismantled/V
./.
###/###
Shevardnadze/N
said/V
it/P
took/V
Gorbachev/N
's/P
government/N
four/C
years/N
to/T
determine/V
that/I
the/D
station/N
's/P
location/N
in/I
Siberia/N
violated/V
the/D
accord/N
,/,
as/I
Western/J
arms-control/N
officials/N
have/V
long/R
contended/V
./.
###/###
He/P
also/R
denounced/V
Moscow/N
's/P
nine-year/J
involvement/N
in/I
the/D
war/N
in/I
Afghanistan/N
,/,
saying/V
it/P
involved/V
``/`
gross/J
violations/N
of.../:
civil/J
norms/N
and/C
ethics/N
./.
''/'
###/###
Secretary/N
of/I
State/N
Baker/N
,/,
in/I
his/P
first/J
major/J
arms-control/N
speech/N
,/,
called/V
for/I
a/D
new/J
military/J
relationship/N
with/I
Moscow/N
to/T
reduce/V
``/`
first/J
strike/N
''/'
nuclear/J
arms/N
./.
###/###
BAY/N
AREA/N
COMMUTERS/N
BATTLED/V
earthquake-related/J
transportation/N
snarls/N
./.
###/###
Travelers/N
crowded/V
into/I
subways/N
,/,
sat/V
in/I
traffic/N
jams/N
on/I
major/J
freeways/N
or/C
waited/V
for/I
buses/N
in/I
the/D
rain/N
,/,
but/C
the/D
massive/J
gridlock/N
anticipated/V
by/I
officials/N
in/I
the/D
San/N
Francisco/N
Bay/N
area/N
never/R
materialized/V
./.
###/###
As/I
the/D
death/N
toll/N
from/I
last/J
week/N
's/P
temblor/N
climbed/V
to/T
61/C
,/,
the/D
condition/N
of/I
freeway/N
survivor/N
Buck/N
Helm/N
,/,
who/W
spent/V
four/C
days/N
trapped/V
under/I
rubble/N
,/,
improved/V
,/,
hospital/N
officials/N
said/V
./.
###/###
Rescue/N
crews/N
,/,
however/R
,/,
gave/V
up/R
hope/N
that/I
others/N
would/M
be/V
found/V
alive/J
under/I
the/D
collapsed/J
roadway/N
./.
###/###
The/D
House/N
Appropriations/N
Committee/N
approved/V
a/D
$/$
2.85/C
billion/C
aid/N
package/N
for/I
the/D
quake/N
region/N
,/,
less/J
than/I
the/D
$/$
3.8/C
billion/C
sought/V
by/I
California/N
officials/N
./.
###/###
Hungary/N
declared/V
itself/P
a/D
democracy/N
and/C
for/I
the/D
first/J
time/N
openly/R
commemorated/V
the/D
anniversary/N
of/I
the/D
1956/C
anti-Stalinist/J
uprising/N
that/W
was/V
crushed/V
by/I
the/D
Soviet/N
Union/N
./.
###/###
A/D
crowd/N
estimated/V
at/I
100,000/C
held/V
a/D
torch-lit/J
march/N
through/I
Budapest/N
as/I
Acting/N
President/N
Szuros/N
delivered/V
a/D
nationally/R
televised/V
address/N
rejecting/V
communist/J
dominance/N
./.
###/###
About/R
200,000/C
East/N
Germans/N
marched/V
in/I
Leipzig/N
and/C
thousands/N
more/J
staged/V
protests/N
in/I
three/C
other/J
cities/N
in/I
a/D
fresh/J
challenge/N
to/T
the/D
Communist/J
leadership/N
to/T
introduce/V
democratic/J
freedoms/N
./.
###/###
In/I
an/D
East/N
Berlin/N
suburb/N
,/,
meanwhile/R
,/,
employees/N
at/I
an/D
electronics/N
plant/N
formed/V
an/D
independent/J
trade/N
union/N
called/V
Reform/N
,/,
a/D
worker/N
spokesman/N
said/V
./.
###/###
The/D
space/N
shuttle/N
Atlantis/N
landed/V
at/I
a/D
desert/N
air/N
strip/N
at/I
Edwards/N
Air/N
Force/N
Base/N
,/,
Calif./N
,/,
ending/V
a/D
five-day/J
mission/N
that/W
dispatched/V
the/D
Jupiter-bound/J
Galileo/N
space/N
probe/N
./.
###/###
The/D
five/C
astronauts/N
returned/V
to/T
Earth/N
about/R
three/C
hours/N
early/R
because/I
high/J
winds/N
had/V
been/V
predicted/V
at/I
the/D
landing/N
site/N
./.
###/###
Fog/N
shrouded/V
the/D
base/N
before/I
touchdown/N
./.
###/###
Explosions/N
shook/V
a/D
Phillips/N
Petroleum/N
Co./N
plastics/N
plant/N
near/I
Pasadena/N
,/,
Texas/N
,/,
hurling/V
debris/N
and/C
causing/V
a/D
fire/N
visible/J
from/I
10/C
miles/N
away/R
./.
###/###
More/J
than/I
100/C
people/N
were/V
injured/V
,/,
and/C
a/D
number/N
of/I
workers/N
were/V
missing/J
./.
###/###
Parts/N
of/I
the/D
Houston/N
Ship/N
Channel/N
were/V
closed/V
./.
###/###
The/D
White/N
House/N
said/V
Bush/N
is/V
conferring/V
with/I
leaders/N
of/I
the/D
Senate/N
Intelligence/N
Committee/N
to/T
ease/V
differences/N
over/I
guidelines/N
for/I
CIA/N
agents/N
./.
###/###
The/D
statement/N
came/V
after/I
officials/N
said/V
Bush/N
complained/V
at/I
a/D
private/J
meeting/N
last/J
week/N
that/I
a/D
strict/J
interpretation/N
of/I
a/D
policy/N
requires/V
the/D
U.S./N
to/T
notify/V
foreign/J
dictators/N
of/I
certain/J
coup/N
plots/N
./.
###/###
Lebanon/N
's/P
Gen./N
Aoun/N
placed/V
Christian/J
military/J
forces/N
on/I
alert/N
in/I
case/N
of/I
renewed/J
fighting/N
with/I
Syrian-backed/J
Moslems/N
after/I
Lebanon/N
's/P
two/C
main/J
Shiite/J
militias/N
rejected/V
an/D
Arab-sponsored/J
peace/N
accord/N
./.
###/###
The/D
plan/N
,/,
approved/V
by/I
lawmakers/N
and/C
rejected/V
Sunday/N
by/I
Aoun/N
,/,
includes/V
political/J
changes/N
aimed/V
at/I
ending/V
the/D
14-year-old/J
civil/J
war/N
./.
###/###
NATO/N
defense/N
ministers/N
are/V
expected/V
to/T
call/V
for/I
a/D
reduction/N
in/I
nuclear/J
forces/N
in/I
Europe/N
when/W
the/D
alliance/N
's/P
nuclear/J
planning/N
group/N
convenes/V
a/D
two-day/J
session/N
today/N
in/I
Portugal/N
./.
###/###
The/D
ministers/N
are/V
to/T
reshape/V
NATO/N
's/P
defenses/N
in/I
Western/N
Europe/N
amid/I
fast-paced/J
changes/N
in/I
the/D
Soviet/J
bloc/N
./.
###/###
Iran/N
's/P
President/N
Rafsanjani/N
offered/V
to/T
help/V
gain/V
freedom/N
for/I
Western/J
hostages/N
in/I
Lebanon/N
,/,
but/C
said/V
the/D
assistance/N
was/V
contingent/J
on/I
U.S./N
aid/N
in/I
resolving/V
the/D
cases/N
of/I
three/C
Iranians/N
kidnapped/V
in/I
Lebanon/N
in/I
1982/C
or/C
the/D
release/N
of/I
frozen/J
Iranian/J
assets/N
./.
###/###
Washington/N
rejected/V
the/D
bid/N
,/,
saying/V
the/D
hostages/N
were/V
n't/R
linked/V
to/T
other/J
issues/N
./.
###/###
PLO/N
leader/N
Arafat/N
asked/V
Egypt/N
to/T
seek/V
clarifications/N
from/I
the/D
U.S./N
on/I
Secretary/N
of/I
State/N
Baker/N
's/P
plan/N
for/I
Mideast/J
peace/N
talks/N
,/,
an/D
aide/N
to/T
Egyptian/N
President/N
Mubarak/N
said/V
./.
###/###
The/D
official/N
stressed/V
that/I
the/D
PLO/N
has/V
n't/R
rejected/V
the/D
five-point/J
formula/N
./.
###/###
Commonwealth/N
leaders/N
turned/V
to/T
issues/N
ranging/V
from/I
drugs/N
to/T
the/D
world/N
economy/N
after/I
Zimbabwe/N
's/P
President/N
Mugabe/N
called/V
Thatcher/N
's/P
views/N
on/I
South/N
Africa/N
``/`
despicable/J
./.
''/'
###/###
At/I
a/D
meeting/N
in/I
Malaysia/N
,/,
Australia/N
and/C
Canada/N
also/R
assailed/V
the/D
British/J
prime/J
minister/N
for/I
criticizing/V
the/D
49-nation/J
group/N
's/P
call/N
for/I
Pretoria/N
to/T
ease/V
apartheid/N
./.
###/###
CMS/N
Enhancements/N
Inc./N
said/V
it/P
estimates/V
that/I
sales/N
and/C
earnings/N
for/I
the/D
fiscal/J
first/J
quarter/N
ended/V
Sept./N
30/C
fell/V
somewhat/R
from/I
the/D
year-earlier/J
period/N
./.
###/###
Jim/N
Farooquee/N
,/,
chief/J
executive/J
officer/N
of/I
the/D
Tustin/N
,/,
Calif./N
,/,
computer/N
accessories/N
supplier/N
,/,
said/V
he/P
was/V
``/`
comfortable/J
''/'
with/I
analysts/N
'/P
expectations/N
that/I
CMS/N
would/M
earn/V
between/I
six/C
cents/N
and/C
eight/C
cents/N
a/D
share/N
on/I
revenue/N
of/I
about/R
$/$
42/C
million/C
./.
###/###
A/D
year/N
earlier/R
,/,
CMS/N
posted/V
profit/N
of/I
$/$
1.1/C
million/C
,/,
or/C
13/C
cents/N
a/D
share/N
,/,
on/I
sales/N
of/I
$/$
48/C
million/C
./.
###/###
This/D
time/N
,/,
there/E
are/V
30/C
%/J
more/J
shares/N
outstanding/J
./.
###/###
Mr./N
Farooquee/N
attributed/V
the/D
decline/N
to/T
an/D
industrywide/J
softening/N
of/I
demand/N
for/I
computer/N
enhancement/N
products/N
./.
###/###
Property/N
Capital/N
Trust/N
said/V
it/P
dropped/V
its/P
plan/N
to/T
liquidate/V
because/I
it/P
was/V
n't/R
able/J
to/T
realize/V
the/D
value/N
it/P
had/V
expected/V
./.
###/###
It/P
said/V
it/P
will/M
buy/V
back/R
two/C
million/C
shares/N
,/,
or/C
18.4/C
%/N
,/,
of/I
the/D
total/J
outstanding/J
,/,
and/C
continue/V
operations/N
buying/V
and/C
managing/V
real/J
estate/N
./.
###/###
Property/N
Capital/N
,/,
which/W
is/V
based/V
in/I
Boston/N
,/,
had/V
told/V
shareholders/N
it/P
expected/V
to/T
distribute/V
at/I
least/J
$/$
21/C
a/D
share/N
,/,
or/C
$/$
229/C
million/C
,/,
in/I
a/D
liquidation/N
,/,
based/V
on/I
an/D
expected/J
asset/N
sale/N
price/N
of/I
$/$
290/C
million/C
or/C
more/J
./.
###/###
The/D
company/N
said/V
it/P
did/V
n't/R
receive/V
an/D
offer/N
it/P
wanted/V
to/T
accept/V
./.
###/###
As/I
a/D
result/N
of/I
dropping/V
the/D
liquidation/N
plan/N
,/,
shareholders/N
will/M
have/V
to/T
treat/V
dividends/N
received/V
this/D
year/N
as/I
ordinary/J
income/N
or/C
capital/N
gains/N
rather/R
than/I
as/I
tax/N
free/J
returns/N
of/I
capital/N
,/,
the/D
company/N
said/V
./.
###/###
The/D
share/N
repurchase/N
will/M
be/V
funded/V
mostly/R
from/I
borrowings/N
./.
###/###
A.H./N
Belo/N
Corp./N
said/V
its/P
net/J
income/N
was/V
$/$
3.1/C
million/C
,/,
or/C
15/C
cents/N
a/D
share/N
,/,
in/I
the/D
third/J
quarter/N
,/,
more/J
than/I
four/C
times/N
its/P
profit/N
of/I
$/$
663,000/C
,/,
or/C
three/C
cents/N
a/D
share/N
,/,
last/J
year/N
./.
###/###
Included/V
in/I
the/D
results/N
was/V
an/D
adjustment/N
to/T
the/D
Dallas-based/J
company/N
's/P
tax/N
rate/N
that/W
reduced/V
net/J
income/N
by/I
about/R
10/C
cents/N
a/D
share/N
,/,
or/C
approximately/R
$/$
2/C
million/C
./.
###/###
Belo/N
said/V
it/P
increased/V
its/P
effective/J
tax/N
rate/N
to/T
52/C
%/N
from/I
47/C
%/N
to/T
account/V
for/I
potential/J
liabilities/N
related/V
to/T
an/D
Internal/N
Revenue/N
Service/N
investigation/N
of/I
its/P
tax/N
returns/N
for/I
the/D
years/N
1984/C
through/I
1988/C
./.
###/###
The/D
newspaper/N
and/C
television/N
owner/N
said/V
it/P
expects/V
the/D
tax/N
adjustment/N
to/T
reduce/V
its/P
net/J
income/N
for/I
the/D
full/J
year/N
by/I
14/C
cents/N
,/,
or/C
approximately/R
$/$
2.8/C
million/C
based/V
on/I
its/P
20.2/C
million/C
shares/N
outstanding/J
./.
###/###
For/I
the/D
third/J
quarter/N
,/,
Belo/N
said/V
its/P
revenue/N
increased/V
11/C
%/N
,/,
to/T
$/$
101.5/C
million/C
from/I
$/$
91.2/C
million/C
last/J
year/N
./.
###/###
For/I
the/D
nine/C
months/N
,/,
the/D
company/N
had/V
net/J
income/N
of/I
$/$
15.1/C
million/C
,/,
or/C
74/C
cents/N
a/D
share/N
,/,
up/R
98/C
%/N
from/I
$/$
7.6/C
million/C
,/,
or/C
38/C
cents/N
a/D
share/N
last/J
year/N
./.
###/###
Revenue/N
grew/V
almost/R
8/C
%/N
to/T
$/$
301.9/C
million/C
from/I
$/$
279.8/C
million/C
last/J
year/N
./.
###/###
A/D
federal/J
judge/N
granted/V
a/D
temporary/J
stay/N
of/I
the/D
California/N
Student/N
Aid/N
Commission/N
's/P
emergency/N
action/N
to/T
stop/V
guaranteeing/V
loans/N
for/I
National/N
Technical/N
Schools/N
,/,
a/D
unit/N
of/I
United/N
Education/N
&/C
Software/N
Inc/N
./.
###/###
The/D
California/N
Student/N
Aid/N
Commission/N
took/V
the/D
action/N
Oct./N
15/C
after/I
a/D
government/N
audit/N
cited/V
National/N
Technical/N
Schools/N
for/I
having/V
courses/N
too/R
short/J
to/T
be/V
eligible/J
for/I
the/D
educational/J
loan/N
program/N
and/C
having/V
a/D
student/N
drop-out/J
rate/N
far/R
in/I
excess/N
of/I
federal/J
standards/N
,/,
and/C
it/P
alleged/V
other/J
serious/J
violations/N
of/I
law/N
and/C
regulations/N
./.
###/###
United/N
Education/N
&/C
Software/N
,/,
a/D
Los/N
Angeles/N
education/N
services/N
company/N
,/,
called/V
the/D
commission/N
's/P
action/N
``/`
precipitous/J
and/C
unwarranted/J
./.
''/'
###/###
The/D
court/N
set/V
a/D
hearing/N
on/I
the/D
emergency/N
action/N
for/I
Oct./N
30/C
./.
###/###
United/N
Education/N
&/C
Software/N
posted/V
a/D
$/$
250,000/C
bond/N
against/I
potential/J
losses/N
to/T
the/D
student/N
aid/N
commission/N
and/C
to/T
taxpayers/N
in/I
guaranteeing/V
any/D
more/J
loans/N
for/I
National/N
Technical/N
Schools/N
students/N
prior/R
to/T
the/D
hearing/N
./.
###/###
A/D
decline/N
in/I
Allied-Signal/N
Inc./N
's/P
automotive/J
business/N
contributed/V
to/T
flat/J
sales/N
and/C
only/R
slightly/R
higher/J
earnings/N
in/I
the/D
third/J
quarter/N
./.
###/###
Allied-Signal/N
reported/V
that/D
net/N
rose/V
1.7/C
%/N
to/T
$/$
121/C
million/C
,/,
or/C
81/C
cents/N
a/D
share/N
,/,
from/I
$/$
119/C
million/C
,/,
or/C
80/C
cents/N
a/D
share/N
,/,
the/D
year/N
earlier/R
./.
###/###
Sales/N
slipped/V
1.3/C
%/N
to/T
$/$
2.82/C
billion/C
from/I
$/$
2.86/C
billion/C
./.
###/###
For/I
the/D
nine/C
months/N
,/,
the/D
Morris/N
Township/N
,/,
N.J.-based/J
company/N
,/,
with/I
businesses/N
in/I
aerospace/N
,/,
automotive/J
products/N
and/C
engineered/J
materials/N
,/,
earned/V
$/$
413/C
million/C
,/,
or/C
$/$
2.77/C
cents/N
a/D
share/N
,/,
up/R
15/C
%/N
from/I
$/$
359/C
million/C
,/,
or/C
$/$
2.40/C
a/D
share/N
./.
###/###
Sales/N
eased/V
0.2/C
%/N
to/T
$/$
8.88/C
billion/C
from/I
$/$
8.90/C
billion/C
./.
###/###
Chairman/N
Edward/N
L./N
Hennessy/N
Jr./N
said/V
that/I
a/D
drop/N
in/I
sales/N
of/I
auto/N
and/C
truck/N
parts/N
contributed/V
to/T
lower/J
earnings/N
in/I
the/D
automotive/J
unit/N
./.
###/###
He/P
also/R
cited/V
unfavorable/J
foreign-exchange/N
rates/N
and/C
a/D
lower/J
tax/N
rate/N
./.
###/###
Earnings/N
for/I
the/D
group/N
declined/V
to/T
$/$
11/C
million/C
from/I
$/$
33/C
million/C
last/J
year/N
./.
###/###
Earnings/N
at/I
Allied-Signal/N
's/P
aerospace/J
business/N
rose/V
to/T
$/$
55/C
million/C
from/I
$/$
41/C
million/C
a/D
year/N
ago/R
,/,
primarily/R
on/I
higher/J
sales/N
and/C
profit/N
in/I
its/P
engines/N
and/C
auxiliary/J
power/N
units/N
./.
###/###
In/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
yesterday/N
,/,
Allied-Signal/N
shares/N
closed/V
at/I
$/$
35.125/C
,/,
off/R
87.5/C
cents/N
./.
###/###
The/D
National/N
Highway/N
Traffic/N
Safety/N
Administration/N
said/V
it/P
will/M
start/V
enforcing/V
stiffer/J
regulations/N
Jan./N
31/C
for/I
so-called/J
gray-market/J
imports/N
of/I
vehicles/N
./.
###/###
The/D
regulations/N
,/,
required/V
under/I
legislation/N
enacted/V
by/I
Congress/N
last/J
year/N
,/,
will/M
apply/V
to/T
imports/N
of/I
vehicles/N
that/W
were/V
n't/R
built/V
to/T
meet/V
U.S./N
government/N
auto/N
safety/N
standards/N
and/C
were/V
intended/V
for/I
use/N
in/I
Europe/N
or/C
elsewhere/R
abroad/R
./.
###/###
U.S./N
officials/N
estimated/V
that/I
gray-market/J
imports/N
total/V
about/R
2,100/C
units/N
a/D
year/N
,/,
a/D
small/J
part/N
of/I
the/D
more/J
than/I
three/C
million/C
vehicles/N
exported/V
to/T
the/D
U.S./N
each/D
year/N
./.
###/###
According/V
to/T
the/D
NHTSA/N
,/,
the/D
new/J
regulations/N
will/M
prohibit/V
anyone/N
other/J
than/I
an/D
importer/N
that/W
has/V
registered/V
with/I
the/D
U.S./N
government/N
,/,
or/C
a/D
person/N
who/W
has/V
a/D
contract/N
with/I
a/D
registered/J
importer/N
,/,
from/I
permanently/R
importing/V
a/D
vehicle/N
that/W
does/V
n't/R
meet/V
the/D
U.S./N
auto/N
safety/N
standards/N
./.
###/###
The/D
registered/J
importer/N
would/M
be/V
required/V
to/T
bring/V
such/J
vehicles/N
into/I
compliance/N
with/I
the/D
U.S./N
safety/N
standards/N
,/,
compared/V
with/I
the/D
current/J
situation/N
in/I
which/W
anyone/N
can/M
bring/V
in/I
such/J
vehicles/N
and/C
modify/V
them/P
to/T
meet/V
the/D
U.S./N
standards/N
./.
###/###
Congress/N
tightened/V
auto/N
safety/N
standards/N
for/I
gray-market/J
imports/N
after/I
U.S./N
auto/N
dealers/N
,/,
including/V
franchised/J
foreign-car/N
dealers/N
,/,
complained/V
that/I
they/P
often/R
were/V
blamed/V
when/W
the/D
second/J
and/C
third/J
buyers/N
of/I
such/J
vehicles/N
found/V
that/I
the/D
cars/N
could/M
n't/R
meet/V
U.S./N
auto/N
safety/N
standards/N
./.
###/###
Legent/N
Corp./N
said/V
it/P
expects/V
to/T
report/V
net/J
income/N
between/I
$/$
6.4/C
million/C
and/C
$/$
6.9/C
million/C
,/,
or/C
between/I
32/C
cents/N
and/C
34/C
cents/N
a/D
share/N
,/,
for/I
its/P
fourth/J
quarter/N
ended/V
Sept./N
30/C
./.
###/###
In/I
the/D
year-ago/J
quarter/N
,/,
the/D
software/N
developer/N
reported/V
pro/F
forma/F
earnings/N
of/I
$/$
4.8/C
million/C
,/,
or/C
24/C
cents/N
a/D
share/N
./.
###/###
Vienna/N
,/,
Va.-based/J
Legent/N
said/V
it/P
expects/V
to/T
post/V
revenue/N
for/I
the/D
quarter/N
of/I
more/J
than/I
$/$
31/C
million/C
,/,
compared/V
with/I
pro/F
forma/F
revenue/N
of/I
$/$
25.2/C
million/C
in/I
1988/C
./.
###/###
For/I
the/D
fiscal/J
year/N
,/,
the/D
company/N
said/V
it/P
anticipates/V
reporting/V
earnings/N
of/I
$/$
23/C
million/C
,/,
or/C
about/R
$/$
1.15/C
a/D
share/N
,/,
including/V
a/D
charge/N
of/I
about/R
$/$
5.9/C
million/C
,/,
or/C
22/C
cents/N
a/D
share/N
,/,
related/V
to/T
the/D
merger/N
that/W
created/V
Legent/N
out/I
of/I
Duquesne/N
Systems/N
Inc./N
and/C
Morino/N
Inc./N
in/I
March/N
1989/C
./.
###/###
Revenue/N
for/I
fiscal/J
1989/C
is/V
expected/V
to/T
exceed/V
$/$
124/C
million/C
./.
###/###
Pro/F
forma/F
earnings/N
for/I
fiscal/J
1988/C
were/V
$/$
19.6/C
million/C
,/,
or/C
99/C
cents/N
a/D
share/N
,/,
on/I
revenue/N
of/I
$/$
97.2/C
million/C
./.
###/###
The/D
company/N
attributed/V
much/J
of/I
the/D
growth/N
in/I
earnings/N
to/T
increased/J
demand/N
for/I
its/P
systems/N
productivity/N
software/N
./.
###/###
Archive/N
Corp./N
said/V
it/P
expects/V
to/T
report/V
net/J
income/N
for/I
its/P
fiscal/J
year/N
ended/V
Sept./N
29/C
of/I
a/D
record/J
$/$
15/C
million/C
,/,
or/C
$/$
1.15/C
a/D
share/N
,/,
up/R
43/C
%/N
from/I
$/$
10.5/C
million/C
,/,
or/C
80/C
cents/N
a/D
share/N
,/,
for/I
the/D
prior/J
year/N
./.
###/###
The/D
Costa/N
Mesa/N
,/,
Calif./N
,/,
maker/N
of/I
computer/N
tape/N
drives/N
also/R
projected/V
record/J
revenue/N
for/I
the/D
year/N
of/I
$/$
181/C
million/C
,/,
up/R
from/I
$/$
122.7/C
million/C
for/I
the/D
previous/J
year/N
./.
###/###
Archive/N
attributed/V
the/D
gains/N
to/T
strong/J
demand/N
for/I
its/P
products/N
,/,
continued/J
growth/N
of/I
the/D
reseller/J
market/N
and/C
the/D
acquisition/N
of/I
Maynard/N
Electronics/N
in/I
February/N
,/,
which/W
accounted/V
for/I
about/R
14/C
%/N
of/I
the/D
company/N
's/P
revenue/N
./.
###/###
Detrex/N
Corp./N
said/V
a/D
reserve/N
it/P
is/V
establishing/V
to/T
cover/V
expected/J
pollution/N
cleanup/N
costs/N
at/I
an/D
Ohio/N
plant/N
reduced/V
its/P
third-quarter/J
net/J
income/N
by/I
$/$
1.9/C
million/C
./.
###/###
Detrex/N
,/,
which/W
has/V
annual/J
sales/N
of/I
about/R
$/$
100/C
million/C
,/,
declined/V
to/T
say/V
if/I
it/P
would/M
post/V
a/D
loss/N
in/I
the/D
third/J
quarter/N
./.
###/###
The/D
Southfield/N
,/,
Mich.-based/J
company/N
earned/V
$/$
774,000/C
in/I
the/D
quarter/N
last/J
year/N
./.
###/###
Detrex/N
is/V
setting/V
aside/R
$/$
3.1/C
million/C
for/I
the/D
cleanup/N
,/,
but/C
said/V
the/D
reserve/N
reduced/V
its/P
quarterly/J
income/N
by/I
only/R
$/$
1.9/C
million/C
because/I
of/I
tax/N
considerations/N
./.
###/###
In/I
addition/N
,/,
the/D
manufacturer/N
said/V
it/P
signed/V
a/D
consent/N
decree/N
with/I
Ohio/N
to/T
build/V
a/D
$/$
1.4/C
million/C
pollution-control/J
facility/N
at/I
the/D
Ashtabula/N
chemical/N
manufacturing/N
plant/N
by/I
Aug./N
1/C
,/,
1990/C
./.
###/###
Detrex/N
said/V
it/P
is/V
one/C
of/I
at/I
least/J
17/C
companies/N
notified/V
by/I
the/D
Environmental/N
Protection/N
Agency/N
that/I
they/P
may/M
be/V
potentially/R
responsible/J
for/I
cleaning/V
up/R
the/D
Fields/N
Brook/N
watershed/N
near/I
Detrex/N
's/P
Ashtabula/N
plant/N
at/I
a/D
total/J
cost/N
the/D
EPA/N
estimates/N
at/I
$/$
48/C
million/C
--/:
a/D
figure/N
Detrex/N
said/V
the/D
companies/N
dispute/V
###/###
First/N
Executive/N
Corp./N
said/V
about/R
96/C
%/N
of/I
the/D
rights/N
to/T
purchase/V
its/P
depositary/J
shares/N
and/C
warrants/N
have/V
been/V
exercised/V
./.
###/###
Of/I
the/D
17.6/C
million/C
rights/N
units/N
issued/V
,/,
just/R
under/I
17/C
million/C
were/V
exercised/V
before/I
the/D
Oct./N
10/C
expiration/N
of/I
the/D
offering/N
,/,
the/D
insurance/N
holding/N
company/N
said/V
./.
###/###
Remaining/V
units/N
will/M
be/V
sold/V
to/T
the/D
underwriters/N
,/,
Drexel/N
Burnham/N
Lambert/N
Inc./N
and/C
Kidder/N
,/,
Peabody/N
&/C
Co./N
,/,
which/W
will/M
also/R
purchase/V
an/D
over-allotment/N
of/I
2.3/C
million/C
additional/J
units/N
./.
###/###
First/N
Executive/N
said/V
the/D
offering/N
will/M
raise/V
about/R
$/$
299/C
million/C
--/:
minus/C
underwriting/N
fees/N
and/C
other/J
expenses/N
--/:
that/I
the/D
company/N
plans/V
to/T
use/V
to/T
write/V
new/J
life/N
insurance/N
and/C
annuity/N
business/N
./.
###/###
In/I
addition/N
,/,
analysts/N
have/V
viewed/V
the/D
rights/N
offering/N
as/I
a/D
takeover/N
defense/N
that/W
prospectively/R
balloons/V
the/D
number/N
of/I
shares/N
outstanding/J
./.
###/###
Each/D
of/I
the/D
units/N
consists/V
of/I
two/C
warrants/N
,/,
each/D
of/I
which/W
could/M
be/V
used/V
to/T
purchase/V
a/D
half-share/N
of/I
common/J
stock/N
,/,
and/C
one/C
depositary/J
preference/N
share/N
./.
###/###
Depositary/J
shares/N
are/V
convertible/J
into/I
common/J
stock/N
on/I
a/D
1-to-1/J
basis/N
./.
###/###
Currently/R
,/,
the/D
company/N
has/V
about/R
88.1/C
million/C
common/J
shares/N
outstanding/J
./.
###/###
In/I
over-the-counter/J
trading/N
Monday/N
,/,
the/D
stock/N
closed/V
at/I
$/$
10.625/C
,/,
off/R
37.5/C
cents/N
./.
###/###
UNITED/N
AIR'S/N
PARENT/N
quashed/V
any/D
prospects/N
for/I
an/D
immediate/J
revival/N
of/I
the/D
labor-management/J
buy-out/N
,/,
saying/V
UAL/N
should/M
remain/V
independent/J
for/I
now/R
./.
###/###
Also/R
,/,
UAL/N
Chairman/N
Stephen/N
Wolf/N
pulled/V
out/I
of/I
the/D
buy-out/N
effort/N
to/T
focus/V
on/I
running/V
the/D
company/N
./.
###/###
The/D
two/C
developments/N
leave/V
the/D
airline/N
with/I
several/J
problems/N
,/,
including/V
an/D
unsettled/J
labor/N
situation/N
./.
###/###
Stock/N
prices/N
fell/V
and/C
bonds/N
rose/V
as/I
worries/N
mounted/V
about/I
the/D
economy/N
and/C
the/D
junk/N
bond/N
market/N
./.
###/###
The/D
Dow/N
Jones/N
industrials/N
sank/V
26.23/C
points/N
,/,
to/T
2662.91/C
./.
###/###
The/D
dollar/N
also/R
declined/V
./.
###/###
The/D
turmoil/N
in/I
junk/N
bonds/N
may/M
last/V
for/I
years/N
,/,
investors/N
and/C
traders/N
say/V
./.
###/###
Even/R
Drexel/N
is/V
pulling/V
back/R
./.
###/###
Santa/N
Fe/N
Pacific/N
plans/V
to/T
sell/V
20/C
%/N
of/I
its/P
large/J
real/J
estate/N
unit/N
to/T
a/D
California/N
pension/N
fund/N
for/I
$/$
400/C
million/C
and/C
spin/V
the/D
rest/N
off/R
to/T
shareholders/N
./.
###/###
The/D
proposal/N
values/V
the/D
company/N
's/P
real/J
estate/N
operation/N
at/I
$/$
2/C
billion/C
./.
###/###
Time/N
Warner/N
reported/V
a/D
$/$
176/C
million/C
loss/N
for/I
the/D
third/J
quarter/N
,/,
reflecting/V
the/D
cost/N
of/I
the/D
recent/J
merger/N
and/C
a/D
method/N
of/I
accounting/V
for/I
the/D
deal/N
./.
###/###
Thrifts/N
continued/V
to/T
shed/V
assets/N
in/I
August/N
,/,
mainly/R
to/T
comply/V
with/I
stiffer/J
capital/N
rules/N
under/I
the/D
S&L/N
bailout/N
law/N
./.
###/###
Also/R
,/,
withdrawals/N
exceeded/V
deposits/N
by/I
$/$
5.1/C
billion/C
in/I
the/D
month/N
./.
###/###
Exxon/N
's/P
profit/N
fell/V
9/C
%/N
in/I
the/D
third/J
quarter/N
,/,
hurt/V
by/I
sagging/V
results/N
at/I
two/C
of/I
its/P
three/C
main/J
businesses/N
./.
###/###
Phillips/N
and/C
Arco/N
posted/V
declines/N
./.
###/###
Ashland/N
had/V
a/D
loss/N
./.
###/###
Amerada/N
Hess/N
and/C
Occidental/N
Petroleum/N
had/V
gains/N
./.
###/###
Ogilvy/N
's/P
chairman/N
,/,
Kenneth/N
Roman/N
,/,
is/V
leaving/V
to/T
take/V
a/D
top/J
post/N
at/I
American/N
Express/N
./.
###/###
His/P
resignation/N
follows/V
a/D
hostile/J
takeover/N
of/I
the/D
ad/N
agency/N
in/I
May/N
by/I
WPP/N
of/I
Britain/N
./.
###/###
The/D
Justice/N
Department/N
took/V
steps/N
that/W
could/M
restrict/V
the/D
use/N
by/I
prosecutors/N
of/I
criminal/J
racketeering/N
charges/N
against/I
white-collar/J
defendants/N
./.
###/###
Shearson/N
was/V
sued/V
by/I
money/N
manager/N
George/N
Soros/N
,/,
who/W
claimed/V
one/C
of/I
his/P
funds/N
was/V
defrauded/V
out/I
of/I
$/$
60/C
million/C
during/I
stock-index/N
futures/N
trading/N
just/R
after/I
the/D
1987/C
crash/N
./.
###/###
Drexel/N
's/P
efforts/N
to/T
settle/V
its/P
legal/J
troubles/N
are/V
being/V
resisted/V
by/I
at/I
least/J
10/C
states/N
./.
###/###
Some/D
may/M
try/V
to/T
revoke/V
the/D
firm/N
's/P
license/N
to/T
sell/V
securities/N
./.
###/###
Prime/N
Computer/N
plans/V
to/T
dismiss/V
20/C
%/N
of/I
its/P
work/N
force/N
to/T
cut/V
costs/N
following/V
its/P
recent/J
leveraged/J
buy-out/N
./.
###/###
The/D
action/N
renews/V
concern/N
about/I
buyouts/N
in/I
high-tech/J
industries/N
./.
###/###
Paribas/N
plans/V
a/D
bid/N
for/I
another/D
big/J
French/J
financial/J
and/C
industrial/J
firm/N
,/,
Navigation/N
Mixte/N
,/,
a/D
sign/N
Europe/N
's/P
takeover/N
fever/N
has/V
n't/R
cooled/V
./.
###/###
Qintex/N
Australia/N
unveiled/V
plans/N
to/T
restructure/V
and/C
sell/V
assets/N
to/T
try/V
to/T
ease/V
its/P
financial/J
problems/N
./.
###/###
Union/N
Carbide/N
's/P
earnings/N
plunged/V
35/C
%/N
in/I
the/D
third/J
quarter/N
,/,
reflecting/V
weakness/N
in/I
the/D
company/N
's/P
core/J
chemicals/N
and/C
plastics/N
businesses/N
./.
###/###
Japan/N
's/P
Daiwa/N
Securities/N
named/V
Masahiro/N
Dozen/N
president/N
./.
###/###
The/D
rapid/J
advance/N
of/I
the/D
52-year-old/J
executive/N
surprised/V
many/J
at/I
the/D
company/N
./.
###/###
Markets/N
--/:
Stocks/N
:/:
Volume/N
135,860,000/C
shares/N
###/###
Dow/N
Jones/N
industrials/N
2662.91/C
,/,
off/R
26.23/C
;/:
transportation/N
1236.66/C
,/,
up/R
5.86/C
;/:
utilities/N
215.35/C
,/,
off/R
0.13/C
./.
###/###
Bonds/N
:/:
Shearson/N
Lehman/N
Hutton/N
Treasury/N
index/N
3411.08/C
,/,
up/R
###/###
Commodities/N
:/:
Dow/N
Jones/N
futures/N
index/N
129.49/C
,/,
off/R
0.13/C
;/:
spot/N
index/N
131.64/C
,/,
up/R
0.30/C
./.
###/###
Dollar/N
:/:
141.90/C
yen/N
,/,
off/R
0.53/C
;/:
1.8470/C
marks/N
,/,
off/R
0.0108/C
./.
###/###
The/D
Justice/N
Department/N
has/V
revised/V
certain/J
internal/J
guidelines/N
and/C
clarified/V
others/N
in/I
a/D
move/N
that/W
could/M
restrict/V
the/D
use/N
of/I
criminal/J
racketeering/N
charges/N
against/I
white-collar/J
defendants/N
./.
###/###
The/D
most/R
significant/J
changes/N
in/I
department/N
policy/N
are/V
new/J
requirements/N
that/I
federal/J
prosecutors/N
avoid/V
disrupting/V
``/`
the/D
normal/J
business/N
functions/N
''/'
of/I
companies/N
charged/V
under/I
the/D
racketeering/N
law/N
,/,
a/D
senior/J
department/N
official/N
said/V
./.
###/###
Another/D
important/J
revision/N
of/I
department/N
policy/N
is/V
a/D
new/J
guideline/N
warning/V
prosecutors/N
``/`
not/R
to/T
take/V
steps/N
that/W
would/M
harm/V
innocent/J
third/J
parties/N
''/'
in/I
a/D
case/N
brought/V
under/I
the/D
racketeering/N
law/N
,/,
the/D
official/N
,/,
David/N
Runkel/N
,/,
said/V
./.
###/###
The/D
department/N
distributed/V
the/D
revisions/N
and/C
clarifications/N
to/T
U.S./N
attorneys/N
around/I
the/D
country/N
this/D
summer/N
as/I
part/N
of/I
a/D
routine/J
process/N
of/I
updating/V
prosecutorial/J
guidelines/N
,/,
Mr./N
Runkel/N
said/V
./.
###/###
The/D
changes/N
apply/V
to/T
prosecutions/N
brought/V
under/I
the/D
Racketeer/N
Influenced/N
and/C
Corrupt/N
Organizations/N
law/N
./.
###/###
Under/I
that/D
law/N
,/,
defendants/N
who/W
allegedly/R
commit/V
a/D
pattern/N
of/I
crimes/N
by/I
means/N
of/I
a/D
``/`
criminal/J
enterprise/N
''/'
may/M
be/V
charged/V
with/I
racketeering/V
and/C
forced/V
to/T
forfeit/V
the/D
proceeds/N
of/I
the/D
enterprise/N
./.
###/###
The/D
RICO/N
law/N
has/V
come/V
under/I
criticism/N
from/I
some/D
defendants/N
and/C
defense/N
lawyers/N
./.
###/###
They/P
argue/V
that/I
the/D
rights/N
of/I
RICO/N
defendants/N
and/C
third/J
parties/N
not/R
named/V
in/I
RICO/N
indictments/N
have/V
been/V
unfairly/R
damaged/V
./.
###/###
The/D
department/N
's/V
most/R
significant/J
clarification/N
of/I
existing/J
RICO/N
policy/N
is/V
a/D
directive/N
to/T
prosecutors/N
that/I
they/P
should/M
seek/V
to/T
seize/V
assets/N
from/I
defendants/N
``/`
in/I
proportion/N
''/'
to/T
the/D
nature/N
of/I
the/D
alleged/J
offense/N
,/,
Mr./N
Runkel/N
said/V
./.
###/###
``/`
That/D
means/V
that/I
if/I
the/D
offense/N
deals/V
with/I
one/C
part/N
of/I
the/D
business/N
,/,
you/P
do/V
n't/R
attempt/V
to/T
seize/V
the/D
whole/J
business/N
;/:
you/P
attempt/V
to/T
seize/V
assets/N
related/V
to/T
the/D
crime/N
,/,
''/'
he/P
explained/V
./.
###/###
In/I
general/J
,/,
the/D
thrust/N
of/I
the/D
department/N
's/P
directive/N
is/V
to/T
encourage/V
prosecutors/N
to/T
limit/V
pretrial/J
asset/N
seizures/N
if/I
there/E
are/V
less/R
intrusive/J
means/N
of/I
protecting/V
assets/N
the/D
government/N
may/M
subsequently/R
be/V
able/J
to/T
seize/V
after/I
a/D
conviction/N
,/,
Mr./N
Runkel/N
said/V
./.
###/###
It/P
was/V
the/D
kind/N
of/I
snubbing/N
rarely/R
seen/V
within/I
the/D
Congress/N
,/,
let/V
alone/R
within/I
the/D
same/J
party/N
./.
###/###
Sen./N
Alan/N
Cranston/N
trekked/V
over/I
to/T
the/D
House/N
side/N
of/I
Capitol/N
Hill/N
a/D
few/J
days/N
ago/R
and/C
volunteered/V
his/P
testimony/N
to/T
fellow/J
Democrat/N
Rep./N
Henry/N
Gonzalez/N
./.
###/###
It/P
was/V
offered/V
as/I
an/D
expression/N
of/I
cooperation/N
to/T
Mr./N
Gonzalez/N
,/,
who/W
is/V
investigating/V
the/D
$/$
2.5/C
billion/C
failure/N
of/I
Lincoln/N
Savings/N
&/C
Loan/N
Association/N
./.
###/###
But/C
instead/R
of/I
thanks/N
,/,
Sen./N
Cranston/N
was/V
treated/V
with/I
cool/J
formality/N
./.
###/###
``/`
Every/D
witness/N
receives/V
a/D
formal/J
subpoena/N
,/,
''/'
Rep./N
Gonzalez/N
told/V
him/P
./.
###/###
Seldom/R
have/V
House/N
hearings/N
caused/V
so/R
much/J
apprehension/N
in/I
the/D
Senate/N
,/,
where/W
California/N
Sen./N
Cranston/N
and/C
four/C
other/J
senators/N
were/V
already/R
writhing/V
in/I
the/D
glare/N
of/I
unfavorable/J
publicity/N
over/I
the/D
alleged/J
looting/N
of/I
Lincoln/N
by/I
their/P
friend/N
and/C
political/J
benefactor/N
,/,
Charles/N
Keating/N
Jr./N
,/,
principal/J
stockholder/N
of/I
Lincoln/N
's/P
parent/N
company/N
,/,
American/N
Continental/N
Corp./N
of/I
Phoenix/N
,/,
Ariz/N
./.
###/###
At/I
the/D
first/J
day/N
of/I
the/D
House/N
Banking/N
Committee/N
's/P
hearings/N
last/J
week/N
,/,
William/N
Seidman/N
,/,
chairman/N
of/I
the/D
Resolution/N
Trust/N
Corp./N
,/,
the/D
federal/J
agency/N
created/V
to/T
sell/V
sick/J
thrifts/N
,/,
said/V
the/D
agency/N
is/V
investigating/V
whether/I
Lincoln/N
made/V
illegal/J
political/J
contributions/N
./.
###/###
Mr./N
Keating/N
arranged/V
nearly/R
$/$
1/C
million/C
in/I
donations/N
to/T
Sen./N
Cranston/N
and/C
his/P
various/J
political/J
causes/N
,/,
and/C
hundreds/N
of/I
thousands/N
more/J
to/T
other/J
lawmakers/N
./.
###/###
Future/J
witnesses/N
include/V
a/D
former/J
federal/J
S&L/N
regulator/N
who/W
has/V
accused/V
the/D
five/C
senators/N
of/I
attempting/V
to/T
``/`
subvert/V
''/'
the/D
regulatory/J
process/N
by/I
intervening/V
on/I
behalf/N
of/I
Mr./N
Keating/N
./.
###/###
Unlike/I
many/J
lawmakers/N
,/,
Chairman/N
Gonzalez/N
says/V
he/P
considers/V
intervening/V
with/I
regulators/N
to/T
be/V
improper/J
./.
###/###
``/`
When/W
you/P
reach/V
a/D
point/N
where/W
a/D
policy-making/J
body/N
is/V
trying/V
to/T
shape/V
administrative/J
decisions/N
,/,
then/R
that/D
's/V
a/D
no-no/N
in/I
my/P
book/N
,/,
''/'
the/D
Texas/N
lawmaker/N
says/V
./.
###/###
And/C
he/P
has/V
attached/V
himself/P
to/T
the/D
Lincoln/N
story/N
tenaciously/R
./.
###/###
Unless/I
the/D
questions/N
are/V
answered/V
,/,
I/P
will/M
keep/V
on/R
going/V
./.
''/'
###/###
Lawmakers/N
often/R
are/V
reluctant/J
to/T
embarrass/V
colleagues/N
,/,
even/R
those/D
of/I
opposing/J
political/J
parties/N
./.
###/###
In/I
the/D
recent/J
Housing/N
and/C
Urban/N
Development/N
Department/N
scandal/N
,/,
for/I
example/N
,/,
Rep./N
Thomas/N
Lantos/N
,/,
the/D
California/N
Democrat/N
who/W
led/V
the/D
hearings/N
,/,
tiptoed/V
through/I
embarrassing/J
disclosures/N
about/I
HUD/N
grants/N
secured/V
by/I
Sen./N
Alfonse/N
D'Amato/N
,/,
a/D
New/N
York/N
Republican/N
./.
###/###
But/C
Chairman/N
Gonzalez/N
is/V
a/D
genuine/J
maverick/N
./.
###/###
He/P
comes/V
from/I
the/D
same/J
political/J
line/N
as/I
Wright/N
Patman/N
,/,
a/D
bank-baiting/J
Texas/N
populist/N
who/W
chaired/V
the/D
Banking/N
Committee/N
until/I
1974/C
./.
###/###
Mr./N
Gonzalez/N
is/V
also/R
a/D
stickler/N
for/I
ethical/J
standards/N
who/W
refuses/V
to/T
accept/V
honorariums/N
and/C
who/W
believes/V
in/I
conducting/V
official/J
business/N
in/I
the/D
open/N
./.
###/###
Early/R
in/I
his/P
political/J
career/N
,/,
as/I
a/D
city/N
councilman/N
in/I
San/N
Antonio/N
,/,
he/P
walked/V
out/I
of/I
a/D
meeting/N
when/W
political/J
supporters/N
asked/V
that/I
the/D
police/N
chief/N
be/V
replaced/V
,/,
denouncing/V
the/D
closed-door/J
affair/N
publicly/R
as/I
a/D
``/`
bat-roost/J
meeting/N
./.
''/'
###/###
The/D
immediate/J
target/N
of/I
Rep./N
Gonzalez/N
's/P
inquiry/N
is/V
Danny/N
Wall/N
,/,
chairman/N
of/I
the/D
Office/N
of/I
Thrift/N
Supervision/N
./.
###/###
As/I
the/D
principal/J
regulator/N
of/I
the/D
thrift/N
industry/N
,/,
Mr./N
Wall/N
delayed/V
seizing/V
Lincoln/N
S&L/N
for/I
more/R
than/I
two/C
years/N
after/I
his/P
staff/N
told/V
him/P
that/I
the/D
California/N
thrift/N
was/V
insolvent/J
and/C
that/I
potential/J
losses/N
to/T
taxpayers/N
were/V
growing/V
rapidly/R
./.
###/###
Rep./N
Gonzalez/N
seems/V
primed/V
to/T
lash/V
out/R
at/I
Mr./N
Wall/N
when/W
hearings/N
resume/V
Thursday/N
with/I
testimony/N
by/I
two/C
federal/J
regulators/N
from/I
San/N
Francisco/N
,/,
William/N
Black/N
and/C
Mike/N
Patriarca/N
./.
###/###
Mr./N
Wall/N
relieved/V
them/P
of/I
responsibility/N
for/I
supervising/V
Lincoln/N
in/I
1988/C
./.
###/###
Mr./N
Gonzalez/N
expressed/V
concern/N
over/I
a/D
report/N
that/I
the/D
two/C
had/V
been/V
summoned/V
to/T
Washington/N
by/I
Mr./N
Wall/N
last/J
week/N
to/T
discuss/V
their/P
testimony/N
in/I
advance/N
./.
###/###
``/`
I/P
think/V
he/P
is/V
trying/V
to/T
improperly/R
influence/V
a/D
witness/N
,/,
and/C
by/I
God/N
I/P
'm/V
not/R
going/V
to/T
tolerate/V
it/P
,/,
''/'
he/P
says/V
./.
###/###
Mr./N
Wall/N
,/,
however/R
,/,
is/V
a/D
self-proclaimed/J
``/`
child/N
of/I
the/D
Senate/N
''/'
and/C
former/J
staff/N
director/N
of/I
its/P
Banking/N
Committee/N
./.
###/###
An/D
inquiry/N
into/I
his/P
handling/N
of/I
Lincoln/N
S&L/N
inevitably/R
will/M
drag/V
in/R
Sen./N
Cranston/N
and/C
the/D
four/C
others/N
,/,
Sens./N
Dennis/N
DeConcini/N
-LRB-/-
D./N
,/,
Ariz./N
-RRB-/-
,/,
John/N
McCain/N
-LRB-/-
R./N
,/,
Ariz./N
-RRB-/-
,/,
John/N
Glenn/N
-LRB-/-
D./N
,/,
Ohio/N
-RRB-/-
and/C
Donald/N
Riegle/N
-LRB-/-
D./N
,/,
Mich/N
./.
-RRB-/-
./.
###/###
They/P
all/D
attended/V
a/D
meeting/N
in/I
April/N
1987/C
questioning/V
why/W
a/D
federal/J
audit/N
of/I
Lincoln/N
S&L/N
had/V
dragged/V
on/R
for/I
two/C
years/N
./.
###/###
``/`
I/P
'm/V
certain/J
that/I
in/I
the/D
course/N
of/I
the/D
hearings/N
the/D
names/N
-LCB-/-
of/I
the/D
senators/N
-RCB-/-
will/M
be/V
brought/V
out/R
,/,
''/'
Mr./N
Gonzalez/N
says/V
./.
###/###
This/D
is/V
raising/V
eyebrows/N
./.
###/###
``/`
When/W
I/P
first/R
got/V
a/D
glimpse/N
at/I
the/D
witness/N
list/N
,/,
I/P
could/M
n't/R
believe/V
that/I
they/P
were/V
going/V
to/T
go/V
ahead/R
and/C
do/V
this/D
,/,
''/'
says/V
Michael/N
Waldman/N
,/,
director/N
of/I
Congress/N
Watch/N
,/,
a/D
consumer/N
group/N
./.
###/###
There/E
are/V
some/D
witnesses/N
who/W
will/M
be/V
forced/V
to/T
testify/V
about/I
their/P
meetings/N
with/I
senators/N
./.
''/'
###/###
And/C
a/D
Democratic/J
aide/N
to/T
a/D
Banking/N
Committee/N
member/N
remarks/V
,/,
``/`
I/P
too/R
am/V
astounded/J
by/I
it/P
,/,
because/I
Gonzalez/N
has/V
certainly/R
placed/V
a/D
lot/N
of/I
Democratic/J
senators/N
in/I
a/D
very/R
bad/J
position/N
./.
''/'
###/###
All/P
the/D
senators/N
say/V
they/P
merely/R
were/V
trying/V
to/T
ensure/V
fairness/N
for/I
a/D
constituent/N
./.
###/###
Mr./N
Keating/N
lives/V
in/I
Phoenix/N
,/,
and/C
the/D
California/N
thrift/N
's/P
parent/N
is/V
an/D
Ohio-chartered/J
corporation/N
with/I
holdings/N
in/I
Michigan/N
./.
###/###
Chairman/N
Gonzalez/N
expresses/V
sympathy/N
for/I
Sen./N
Riegle/N
,/,
his/P
counterpart/N
as/I
chairman/N
of/I
the/D
Senate/N
Banking/N
Committee/N
./.
###/###
``/`
He/P
's/V
wise/J
,/,
he/P
's/V
good/J
and/C
I/P
know/V
he/P
's/V
an/D
honest/J
man/N
,/,
''/'
the/D
Texan/N
says/V
./.
###/###
But/C
at/I
the/D
same/J
time/N
,/,
Mr./N
Gonzalez/N
has/V
n't/R
forgotten/V
a/D
confrontation/N
over/I
Mr./N
Wall/N
during/I
House-Senate/N
negotiations/N
over/I
S*/N
bailout/N
legislation/N
during/I
the/D
summer/N
./.
###/###
The/D
Senate/N
negotiators/N
included/V
Sens./N
Cranston/N
and/C
Riegle/N
and/C
Mr./N
Wall/N
's/P
principal/J
sponsor/N
,/,
Republican/N
Sen./N
Jake/N
Garn/N
of/I
Utah/N
./.
###/###
They/P
were/V
willing/J
to/T
trade/V
important/J
provisions/N
in/I
the/D
bailout/N
legislation/N
to/T
preserve/V
Mr./N
Wall/N
's/P
job/N
and/C
to/T
avoid/V
a/D
reconfirmation/N
hearing/N
in/I
which/W
he/P
would/M
be/V
called/V
upon/I
to/T
testify/V
about/I
Lincoln/N
S&L/N
./.
###/###
Most/R
importantly/R
,/,
the/D
Senate/N
traded/V
away/R
the/D
Bush/N
administration/N
's/P
controversial/J
plan/N
to/T
finance/V
the/D
bailout/N
,/,
which/W
was/V
partly/R
reinstated/V
later/R
./.
###/###
At/I
the/D
time/N
,/,
Mr./N
Gonzalez/N
said/V
several/J
senators/N
told/V
him/P
that/I
they/P
``/`
could/M
get/V
some/D
roadblocks/N
out/I
of/I
the/D
way/N
if/I
there/E
could/M
be/V
some/D
understanding/N
on/I
Garn/N
's/P
insistence/N
on/I
Wall/N
./.
''/'
###/###
Now/R
Mr./N
Gonzalez/N
is/V
holding/V
the/D
equivalent/N
of/I
reconfirmation/N
hearings/N
anyway/R
,/,
under/I
the/D
guise/N
of/I
the/D
Lincoln/N
investigation/N
./.
###/###
``/`
In/I
a/D
way/N
,/,
that/D
's/V
what/W
this/D
is/V
,/,
''/'
Mr./N
Gonzalez/N
concedes/V
./.
###/###
Even/R
some/D
House/N
Banking/N
Committee/N
members/N
could/M
suffer/V
from/I
the/D
fallout/N
./.
###/###
Mr./N
Keating/N
raised/V
$/$
20,000/C
for/I
Rep./N
Doug/N
Barnard/N
's/P
1986/C
re-election/N
campaign/N
while/I
the/D
Georgia/N
Democrat/N
was/V
taking/V
his/P
side/N
against/I
regulators/N
who/W
wanted/V
to/T
curb/V
risky/J
investments/N
and/C
wholesale/J
deposit/N
brokering/N
./.
###/###
He/P
recently/R
voted/V
``/`
present/R
''/'
when/W
the/D
committee/N
authorized/V
a/D
subpoena/N
to/T
compel/V
Mr./N
Keating/N
to/T
testify/V
,/,
then/R
changed/V
his/P
vote/N
to/T
yes/U
./.
###/###
But/C
the/D
chairman/N
's/P
supporters/N
have/V
the/D
upper/J
hand/N
as/I
federal/J
regulators/N
press/V
a/D
$/$
1.1/C
billion/C
fraud/N
suit/N
against/I
Mr./N
Keating/N
and/C
others/N
./.
###/###
Rep./N
Jim/N
Leach/N
-LRB-/-
R./N
,/,
Iowa/N
-RRB-/-
says/V
the/D
Lincoln/N
S&L/N
affair/N
is/V
``/`
the/D
biggest/J
bank/N
heist/N
in/I
history/N
,/,
''/'
and/C
adds/V
:/:
``/`
The/D
great/J
question/N
that/W
remains/V
to/T
be/V
resolved/V
is/V
whether/I
we/P
have/V
a/D
congressional/J
Watergate/N
in/I
the/D
making/N
./.
''/'
###/###
A/D
witness/N
set/V
to/T
testify/V
on/I
Thursday/N
was/V
quoted/V
in/I
a/D
news/N
report/N
over/I
the/D
weekend/N
as/I
saying/V
Lincoln/N
``/`
laundered/V
''/'
campaign/N
contributions/N
illegally/R
./.
###/###
But/C
the/D
witness/N
,/,
William/N
Crawford/N
,/,
California/N
's/P
chief/J
state/N
thrift/N
regulator/N
,/,
denies/V
saying/V
that/D
./.
###/###
``/`
I/P
do/V
n't/R
know/V
whether/I
it/P
was/V
done/V
properly/R
or/C
not/R
,/,
because/I
I/P
'm/V
not/R
a/D
lawyer/N
,/,
''/'
he/P
said/V
in/I
a/D
telephone/N
interview/N
yesterday/N
./.
###/###
But/C
he/P
said/V
he/P
is/V
prepared/V
to/T
testify/V
that/I
executives/N
of/I
Lincoln/N
and/C
its/P
parent/N
corporation/N
got/V
unusually/R
high/J
salaries/N
and/C
frequent/J
calls/N
directing/V
them/P
to/T
make/V
specific/J
contributions/N
./.
###/###
The/D
committee/N
also/R
has/V
summoned/V
Mr./N
Wall/N
's/P
predecessor/N
,/,
Edwin/N
Gray/N
./.
###/###
He/P
has/V
characterized/V
the/D
five/C
senators/N
'/P
roles/N
as/I
``/`
tantamount/J
to/T
an/D
attempt/N
to/T
subvert/V
the.../:
regulatory/J
process/N
,/,
''/'
and/C
he/P
is/V
n't/R
expected/V
to/T
back/V
down/R
even/R
though/I
the/D
five/C
senators/N
have/V
disputed/V
his/P
account/N
of/I
a/D
1987/C
meeting/N
./.
###/###
So/I
the/D
senators/N
must/M
brace/V
themselves/P
./.
###/###
Sen./N
Cranston/N
,/,
as/I
he/P
returned/V
to/T
the/D
capital/N
last/J
week/N
from/I
a/D
one-day/J
trip/N
to/T
inspect/V
earthquake/N
damage/N
in/I
San/N
Francisco/N
,/,
sighed/V
to/T
an/D
aide/N
:/:
``/`
Well/U
,/,
back/R
to/T
Keatingland/N
./.
###/###
When/W
Anne/N
Volokh/N
and/C
her/P
family/N
immigrated/V
to/T
the/D
U.S./N
14/C
years/N
ago/R
,/,
they/P
started/V
life/N
in/I
Los/N
Angeles/N
with/I
only/R
$/$
400/C
./.
###/###
They/P
'd/M
actually/R
left/V
the/D
Soviet/N
Union/N
with/I
$/$
480/C
,/,
but/C
during/I
a/D
stop/N
in/I
Italy/N
Ms./N
Volokh/N
dropped/V
$/$
80/C
on/I
a/D
black/J
velvet/N
suit/N
./.
###/###
Not/R
surprisingly/R
,/,
she/P
quickly/R
adapted/V
to/T
the/D
American/J
way/N
./.
###/###
Three/C
months/N
after/I
she/P
arrived/V
in/I
L.A./N
she/P
spent/V
$/$
120/C
she/P
did/V
n't/R
have/V
for/I
a/D
hat/N
./.
###/###
-LRB-/-
``/`
A/D
``/`
A/D
turban/N
,/,
''/'
she/P
specifies/V
,/,
``/`
though/I
it/P
was/V
n't/R
the/D
time/N
for/I
that/D
14/C
years/N
ago/R
./.
###/###
But/C
I/P
loved/V
turbans/N
./.
''/'
-RRB-/-
###/###
Since/I
then/R
she/P
has/V
become/V
wealthy/J
./.
###/###
Her/P
husband/N
and/C
older/J
son/N
--/:
a/D
computer/N
prodigy/N
profiled/V
in/I
The/N
Wall/N
Street/N
Journal/N
in/I
1981/C
,/,
when/W
he/P
was/V
13/C
--/:
run/V
a/D
software/N
company/N
with/I
expected/J
sales/N
this/D
year/N
of/I
$/$
10/C
million/C
./.
###/###
Most/R
recently/R
,/,
she/P
has/V
become/V
the/D
publisher/N
of/I
Movieline/N
,/,
a/D
four-year-old/J
Los/N
Angeles/N
magazine/N
that/W
began/V
national/J
distribution/N
last/J
month/N
,/,
with/I
an/D
initial/J
press/N
run/N
of/I
100,000/C
copies/N
./.
###/###
Distributed/V
by/I
the/D
Hearst/N
Corp./N
's/P
Eastern/N
News/N
,/,
the/D
glossy/J
publication/N
melds/V
Vanity/N
Fair/N
's/P
gossipy/J
archness/N
and/C
Premiere/N
's/P
earnest/J
delving/N
into/I
behind-the-scenes/J
minutiae/N
,/,
with/I
a/D
special/J
emphasis/N
on/I
Tinseltown/N
as/I
fashion/N
trendsetter/N
./.
###/###
It/P
's/V
being/V
sold/V
through/I
bookstores/N
,/,
newsstands/N
and/C
some/D
video/J
stores/N
./.
###/###
Though/N
Ms./N
Volokh/N
is/V
a/D
small/J
woman/N
,/,
she/P
has/V
an/D
outsized/J
personality/N
and/C
dramatic/J
flair/N
that/W
seem/V
perfectly/R
suited/V
to/T
capitalism/N
as/I
it/P
is/V
practiced/V
in/I
Hollywood/N
./.
###/###
Certainly/R
life/N
for/I
her/P
has/V
changed/V
considerably/R
since/I
the/D
days/N
in/I
Kiev/N
,/,
when/W
she/P
lived/V
with/I
her/P
parents/N
,/,
her/P
husband/N
and/C
her/P
two/C
sons/N
in/I
a/D
2/C
apartment/N
in/I
what/W
she/P
calls/V
``/`
silent/J
internal/J
immigration/N
,/,
''/'
dreaming/V
of/I
escape/N
./.
###/###
Now/R
,/,
for/I
example/N
,/,
she/P
owns/V
48/C
hats/N
./.
###/###
However/R
,/,
she/P
remembers/V
the/D
lean/J
years/N
and/C
recalls/V
with/I
relish/N
wearing/V
her/P
first/J
major/J
American/J
purchase/N
--/:
that/D
years/N
later/R
and/C
having/V
a/D
Los/N
Angeles/N
boutique/N
owner/N
ask/V
her/P
if/I
it/P
was/V
a/D
Chanel/N
./.
###/###
With/I
obvious/J
satisfaction/N
,/,
she/P
says/V
she/P
told/V
him/P
:/:
``/`
No/U
darling/N
,/,
I/P
just/R
give/V
it/P
a/D
Chanel/N
look/N
./.
''/'
###/###
She/P
keeps/V
track/N
of/I
the/D
rest/N
of/I
her/P
hats/N
by/I
stapling/V
Polaroid/N
snapshots/N
to/T
the/D
outside/N
of/I
each/D
hatbox/N
./.
###/###
Are/V
the/D
hats/N
merely/R
part/N
of/I
her/P
new/J
L.A./N
persona/N
,/,
along/I
with/I
the/D
many/J
ultra-thin/J
Capri/N
cigarettes/N
she/P
smokes/V
,/,
the/D
parties/N
she/P
throws/V
for/I
500/C
people/N
,/,
the/D
Chekovian/J
feasts/N
she/P
offers/V
guests/N
at/I
her/P
weekend/N
place/N
in/I
Santa/N
Barbara/N
?/.
###/###
``/`
No/U
,/,
darling/N
,/,
''/'
she/P
said/V
recently/R
in/I
her/P
fluent/J
,/,
slightly/R
affected/J
English/N
,/,
during/I
a/D
trip/N
East/R
to/T
promote/V
Movieline/N
's/P
national/J
expansion/N
./.
###/###
You/P
have/V
to/T
be/V
born/V
with/I
it/P
./.
###/###
I/P
used/V
to/T
wear/V
hats/N
in/I
Russia/N
,/,
but/C
I/P
had/V
to/T
make/V
them/P
and/C
my/P
dresses/N
./.
###/###
On/I
the/D
hat/N
side/N
I/P
was/V
n't/R
getting/V
what/W
I/P
wanted/V
./.
''/'
###/###
Now/R
48/C
years/N
old/J
,/,
Ms./N
Volokh/N
has/V
definite/J
ideas/N
about/I
what/W
she/P
wants/V
./.
###/###
At/I
Movieline/N
,/,
she/P
wants/V
``/`
specific/J
paragraphing/N
,/,
specific/J
tone/N
,/,
a/D
specific/J
attitude/N
--/:
bright/J
and/C
bold/J
and/C
tongue-in-cheek/J
./.
''/'
###/###
In/I
restaurants/N
-LRB-/-
in/I
this/D
case/N
,/,
the/D
Russian/N
Samovar/N
,/,
a/D
New/N
York/N
restaurant/N
operated/V
by/I
and/C
for/I
Soviet/J
emigres/N
-RRB-/-
,/,
she/P
did/V
n't/R
want/V
the/D
chirpy/J
,/,
folkish/J
music/N
bouncing/V
through/I
the/D
room/N
./.
###/###
``/`
You/P
people/N
here/R
think/V
this/D
is/V
Russian/J
music/N
,/,
''/'
she/P
said/V
with/I
disdain/N
,/,
and/C
called/V
over/I
to/T
the/D
waitress/N
:/:
``/`
Could/M
you/P
turn/V
it/P
off/R
?/.
''/'
###/###
That/D
done/V
,/,
Ms./N
Volokh/N
spoke/V
with/I
rampant/J
eloquence/N
about/I
the/D
many/J
attributes/N
she/P
feels/V
she/P
was/V
born/V
with/I
:/:
an/D
understanding/N
of/I
food/N
,/,
business/N
,/,
Russian/J
culture/N
,/,
human/J
nature/N
,/,
and/C
parties/N
./.
###/###
``/`
Parties/N
are/V
rather/R
a/D
state/N
of/I
mind/N
,/,
''/'
she/P
said/V
,/,
pausing/V
only/R
to/T
taste/V
and/C
pass/V
judgment/N
on/I
the/D
Georgian/J
shashlik/N
-LRB-/-
``/`
a/D
``/`
a/D
little/R
well/R
done/V
,/,
but/C
very/R
good/J
''/'
-RRB-/-
./.
###/###
If/I
you/P
are/V
born/V
to/T
give/V
parties/N
,/,
you/P
give/V
parties/N
./.
###/###
Even/R
in/I
Russia/N
we/P
managed/V
to/T
give/V
parties/N
./.
###/###
In/I
Los/N
Angeles/N
,/,
in/I
our/P
lean/J
years/N
,/,
we/P
gave/V
parties/N
./.
''/'
###/###
As/I
publisher/N
of/I
a/D
magazine/N
devoted/V
to/T
movies/N
as/I
guideposts/N
for/I
fashion/N
and/C
other/J
fantasies/N
,/,
Ms./N
Volokh/N
sees/V
her/P
party-giving/N
as/I
an/D
important/J
part/N
of/I
business/N
./.
###/###
She/P
has/V
thrown/V
extravagant/J
soirees/N
for/I
crowds/N
of/I
people/N
,/,
but/C
prefers/V
more/R
intimate/J
gatherings/N
./.
###/###
At/I
American/J
cocktail/N
parties/V
everyone/N
's/V
always/R
looking/V
over/I
your/P
shoulder/N
to/T
see/V
who/W
they/P
can/M
talk/V
to/T
next/R
./.
###/###
I/P
like/V
rather/R
tea/N
,/,
because/I
it/P
is/V
at/I
the/D
end/N
of/I
the/D
day/N
./.
''/'
###/###
She/P
serves/V
high/J
Russian/J
tea/N
,/,
at/I
5/C
p.m/R
./.
###/###
It/P
's/V
supposed/V
to/T
be/V
later/R
but/C
I/P
just/R
moved/V
it/P
./.
###/###
In/I
Los/N
Angeles/N
,/,
it/P
's/V
important/J
to/T
catch/V
people/N
just/R
after/I
work/N
./.
''/'
###/###
She/P
also/R
frequently/R
invites/V
directors/N
,/,
producers/N
,/,
actors/N
,/,
writers/N
and/C
other/J
show/N
business/N
people/N
for/I
``/`
coffee/N
and/C
clips/N
in/I
the/D
pleasure/N
dome/N
./.
''/'
###/###
Guests/N
bring/V
movies/N
on/I
tape/N
,/,
and/C
show/V
their/P
favorite/J
three-to-five/J
minute/N
segments/N
on/I
the/D
screen/N
that/W
unrolls/V
from/I
the/D
ceiling/N
of/I
the/D
Volokhs/N
'/P
art-nouveau/J
library/N
-LRB-/-
``/`
the/J
pleasure/N
dome/N
''/'
-RRB-/-
./.
###/###
They/P
eat/V
``/`
sinful/J
and/C
sensual/J
things/N
''/'
--/:
and/C
explain/V
their/P
clips/N
./.
###/###
``/`
It/P
's/V
very/R
revealing/J
and/C
soul/N
baring/V
,/,
''/'
said/V
Ms./N
Volokh/N
./.
###/###
The/D
idea/N
for/I
Movieline/N
actually/R
was/V
dreamed/V
up/R
by/I
an/D
old/J
friend/N
of/I
the/D
Volokhs/N
,/,
Boris/N
Krutchensky/N
-LRB-/-
who/W
has/V
the/D
title/N
of/I
co-publisher/N
-RRB-/-
,/,
and/C
Laurie/N
Halpern/N
Smith/N
,/,
now/R
the/D
magazine/N
's/P
co-editor/N
./.
###/###
Mr./N
Krutchensky/N
approached/V
Ms./N
Volokh/N
five/C
years/N
ago/R
about/I
backing/V
the/D
publication/N
,/,
which/W
started/V
out/R
as/I
a/D
listing/N
guide/N
./.
###/###
She/P
was/V
interested/J
only/R
if/I
she/P
could/M
guide/V
it/P
editorially/R
as/R
well/R
./.
###/###
``/`
Anne/V
does/V
n't/R
believe/V
in/I
blandness/N
,/,
''/'
said/V
Ms./N
Smith/N
./.
###/###
She/P
wants/V
things/N
to/T
be/V
exciting/J
./.
###/###
And/C
she/P
has/V
this/D
inexhaustible/J
energy/N
./.
###/###
She/P
'll/M
think/V
of/I
an/D
idea/N
the/D
editorial/J
people/N
think/V
is/V
impossible/J
,/,
then/R
she/P
'll/M
have/V
us/P
make/V
it/P
work/V
./.
''/'
###/###
In/I
fact/N
,/,
Ms./N
Volokh/N
was/V
n't/R
just/R
a/D
rich/J
lady/N
who/W
needed/V
a/D
hobby/N
./.
###/###
Back/R
in/I
the/D
Soviet/N
Union/N
she/P
was/V
a/D
respected/J
journalist/N
,/,
writing/V
a/D
weekly/J
column/N
about/I
the/D
national/J
cuisine/N
for/I
Sunday/N
Izvestia/N
./.
###/###
Those/D
columns/N
--/:
vivid/J
discussions/N
of/I
the/D
cultural/J
and/C
literary/J
reverberations/N
of/I
food/N
as/R
well/R
as/I
practical/J
advice/N
on/I
how/W
to/T
glamorize/V
dreary/J
Sovietized/J
meals/N
--/:
became/V
the/D
basis/N
for/I
her/P
erudite/J
and/C
entertaining/J
cookbook/N
,/,
``/`
The/D
Art/N
of/I
Russian/N
Cuisine/N
,/,
''/'
brought/V
out/R
in/I
1983/C
by/I
Macmillan/N
Publishing/N
Co/N
./.
###/###
``/`
I/P
do/V
n't/R
trust/V
people/N
who/W
do/V
n't/R
eat/V
,/,
''/'
said/V
Ms./N
Volokh/N
,/,
though/I
she/P
herself/P
stopped/V
eating/V
lunch/N
a/D
few/J
years/N
ago/R
to/T
drop/V
25/C
pounds/N
./.
###/###
Look/V
at/I
Dostoevski/N
and/C
Kafka/N
./.
###/###
No/D
one/N
ever/R
eats/V
in/I
their/P
books/N
and/C
look/V
at/I
them/P
./.
###/###
Tolstoy/N
's/P
characters/N
eat/V
,/,
Pushkin/N
's/P
,/,
Gogol/N
's/P
./.
''/'
###/###
In/I
her/P
cookbook/N
,/,
which/W
Macmillan/N
is/V
bringing/V
out/R
in/I
soft/J
cover/N
this/D
month/N
-LRB-/-
with/I
the/D
blini/N
recipe/N
revised/V
so/I
it/P
works/V
-RRB-/-
,/,
she/P
introduces/V
each/D
chapter/N
with/I
appropriate/J
quotations/N
from/I
Russian/J
literature/N
:/:
Pushkin/N
on/I
blini/N
,/,
Goncharov/N
on/I
piroghi/N
./.
###/###
In/I
life/N
,/,
she/P
offers/V
practical/J
dieting/N
advice/N
:/:
``/`
Divide/V
your/P
meals/N
into/I
important/J
and/C
unimportant/J
./.
###/###
In/I
a/D
great/J
restaurant/N
,/,
do/V
n't/R
deprive/V
yourself/P
./.
###/###
The/D
other/J
meals/N
do/V
n't/R
matter/V
./.
''/'
###/###
Amusing/J
as/I
she/P
is/V
,/,
and/C
frivolous/J
as/I
she/P
can/M
seem/V
,/,
this/D
is/V
a/D
serious/J
person/N
with/I
some/D
difficult/J
memories/N
./.
###/###
She/P
was/V
the/D
child/N
of/I
relative/J
privilege/N
./.
###/###
Her/P
mother/N
was/V
a/D
translator/N
;/:
her/P
father/N
was/V
``/`
the/D
eternal/J
vice/N
director/N
./.
''/'
###/###
``/`
I/P
emigrated/V
to/T
wear/V
better/J
hats/N
,/,
do/V
better/J
parties/N
,/,
''/'
she/P
said/V
with/I
a/D
giggle/N
./.
###/###
But/C
we/P
should/M
n't/R
leave/V
out/R
political/J
reasons/N
,/,
number/N
one/C
./.
###/###
You/P
try/V
to/T
maintain/V
your/P
dignity/N
under/I
difficult/J
circumstances/N
./.
###/###
One/P
can/M
not/R
imagine/V
how/W
you/P
live/V
when/W
you/P
live/V
those/D
double/J
and/C
triple/J
lives/N
./.
''/'
###/###
By/I
1973/C
,/,
after/I
their/P
second/J
child/N
was/V
born/V
,/,
it/P
had/V
become/V
clear/J
to/T
Ms./N
Volokh/N
and/C
her/P
husband/N
Vladimir/N
,/,
a/D
computer/N
scientist/N
,/,
that/I
they/P
wanted/V
to/T
leave/V
the/D
U.S.S.R./N
Ms./N
Volokh/N
quit/V
her/P
job/N
,/,
to/T
remove/V
herself/P
from/I
the/D
public/J
eye/N
./.
###/###
The/D
wait/N
was/V
miserable/J
./.
###/###
Before/I
granting/V
Ms./N
Volokh/N
's/P
parents/N
a/D
visa/N
,/,
the/D
government/N
required/V
her/P
mother/N
to/T
obtain/V
permission/N
from/I
her/P
first/J
husband/N
,/,
whom/W
she/P
had/V
divorced/V
38/C
years/N
earlier/R
./.
###/###
Mr./N
Volokh/N
was/V
fired/V
from/I
his/P
job/N
,/,
and/C
had/V
to/T
endure/V
hours/N
of/I
organized/J
verbal/J
abuse/N
from/I
his/P
co-workers/N
,/,
accusations/N
of/I
sabotage/N
and/C
counterrevolutionary/J
activities/N
./.
###/###
The/D
Volokhs/N
were/V
afraid/J
that/I
they/P
'd/M
end/V
up/R
like/I
a/D
friend/N
of/I
theirs/P
who/W
'd/V
applied/V
for/I
a/D
visa/N
and/C
waited/V
for/I
10/C
years/N
,/,
having/V
been/V
demoted/V
from/I
his/P
profession/N
of/I
theoretical/J
mathematician/N
to/T
shipping/N
clerk/N
./.
###/###
They/P
did/V
n't/R
./.
###/###
Their/P
visa/N
came/V
in/I
relatively/R
short/J
order/N
,/,
and/C
they/P
moved/V
to/T
Los/N
Angeles/N
./.
###/###
Mr./N
Volokh/N
soon/R
found/V
work/N
in/I
his/P
field/N
,/,
but/C
Ms./N
Volokh/N
refused/V
the/D
obvious/J
and/C
available/J
a/D
Russian/N
who/W
spoke/V
fluent/J
English/N
./.
###/###
``/`
That/D
's/V
always/R
looking/V
back/R
,/,
''/'
she/P
said/V
./.
###/###
I/P
wanted/V
to/T
be/V
in/I
business/N
./.
''/'
###/###
On/I
the/D
way/N
to/T
that/D
goal/N
,/,
she/P
received/V
her/P
first/J
U.S./N
paycheck/N
for/I
proofreading/V
a/D
book/N
of/I
Polish/J
poetry/N
,/,
attended/V
secretarial/J
school/N
,/,
then/R
went/V
to/T
work/V
for/I
a/D
fund-raising/N
organization/N
./.
###/###
Soon/R
she/P
was/V
running/V
the/D
office/N
./.
###/###
When/W
her/P
husband/N
and/C
son/N
founded/V
their/P
computer/N
company/N
,/,
Vesoft/N
,/,
she/P
worked/V
as/I
business/N
manager/N
,/,
bookkeeper/N
and/C
publicist/N
./.
###/###
Now/R
Movieline/N
is/V
located/V
in/I
the/D
same/J
building/N
as/I
Vesoft/N
./.
###/###
``/`
Things/N
work/V
out/R
unexpectedly/R
in/I
life/N
,/,
''/'
said/V
Ms./N
Volokh/N
./.
###/###
You/P
never/R
know/V
if/I
you/P
'll/M
be/V
chosen/V
to/T
be/V
the/D
scapegoat/N
or/C
the/D
lucky/J
one/C
./.
###/###
We/P
were/V
lucky/J
./.
###/###
William/N
D./N
Forrester/N
,/,
president/N
of/I
the/D
U.S.-U.S.S.R./N
Trade/N
and/C
Economic/N
Council/N
,/,
has/V
a/D
warning/N
for/I
U.S./N
companies/N
trying/V
to/T
do/V
business/N
in/I
the/D
Soviet/N
Union/N
./.
###/###
``/`
It/P
's/V
an/D
extremely/R
complex/J
market/N
,/,
and/C
you/P
have/V
to/T
be/V
prepared/V
to/T
make/V
a/D
big/J
commitment/N
,/,
''/'
Mr./N
Forrester/N
says/V
./.
###/###
We/P
are/V
not/R
trying/V
to/T
encourage/V
everyone/N
./.
''/'
###/###
Undeterred/J
by/I
such/J
words/N
of/I
caution/N
,/,
corporate/J
America/N
is/V
flocking/V
to/T
Moscow/N
,/,
lured/V
by/I
a/D
huge/J
untapped/J
market/N
and/C
Mikhail/N
Gorbachev/N
's/P
attempt/N
to/T
overhaul/V
the/D
Soviet/J
economy/N
./.
###/###
Doing/V
business/N
with/I
the/D
Russians/N
,/,
once/R
the/D
pursuit/N
of/I
a/D
handful/N
of/I
hardened/J
veterans/N
,/,
has/V
become/V
the/D
goal/N
of/I
such/J
major/J
companies/N
as/I
General/N
Motors/N
Corp./N
,/,
Federal/N
Express/N
Corp./N
and/C
Procter/N
&/C
Gamble/N
Co./N
,/,
as/R
well/R
as/I
a/D
cluster/N
of/I
smaller/J
firms/N
./.
###/###
Reflecting/V
the/D
new-found/J
interest/N
,/,
more/J
than/I
140/C
U.S./N
companies/N
are/V
taking/V
part/N
in/I
a/D
Moscow/N
exhibition/N
organized/V
by/I
Mr./N
Forrester/N
's/P
trade/N
group/N
./.
###/###
But/C
while/I
U.S./N
interest/N
may/M
be/V
big/J
and/C
growing/V
,/,
the/D
difficulties/N
that/W
have/V
stymied/V
deals/N
in/I
the/D
past/N
show/V
no/D
sign/N
of/I
abating/V
./.
###/###
Alongside/I
the/D
old/J
problems/N
of/I
a/D
non-convertible/J
currency/N
and/C
an/D
inpenetrable/J
bureaucracy/N
,/,
Western/J
business/N
executives/N
must/M
now/R
grapple/V
with/I
new/J
complexities/N
linked/V
to/T
perestroika/F
,/,
the/D
restructuring/N
of/I
the/D
Soviet/J
economy/N
./.
###/###
Executives/N
say/V
Mr./N
Gorbachev/N
's/P
moves/N
to/T
break/V
up/R
the/D
government/N
's/P
foreign/J
trade/N
monopoly/N
have/V
created/V
uncertainties/N
as/R
well/R
as/I
opportunities/N
./.
###/###
Changing/V
legislation/N
has/V
opened/V
the/D
field/N
to/T
thousands/N
of/I
inexperienced/J
Soviet/J
players/N
,/,
many/D
who/W
promise/V
more/J
than/I
they/P
can/M
deliver/V
./.
###/###
And/C
some/D
foreign/J
firms/N
are/V
finding/V
that/I
even/R
when/W
they/P
manage/V
to/T
overcome/V
such/J
hurdles/N
,/,
their/P
ventures/N
now/R
have/V
to/T
be/V
endorsed/V
by/I
such/J
unpredictable/J
bodies/N
as/I
the/D
Soviet/J
parliament/N
and/C
the/D
governments/N
of/I
the/D
nation/N
's/P
republics/N
./.
###/###
``/`
You/P
have/V
to/T
go/V
out/I
to/T
all/P
your/P
constituents/N
,/,
''/'
says/V
James/N
H./N
Giffen/N
,/,
who/W
is/V
spearheading/V
the/D
most/R
ambitious/J
attempt/N
by/I
U.S./N
firms/N
to/T
break/V
into/I
the/D
Soviet/J
market/N
,/,
involving/V
investment/N
of/I
more/J
than/I
$/$
5/C
billion/C
in/I
some/R
two/C
dozen/N
joint/J
ventures/N
./.
###/###
As/I
part/N
of/I
that/D
attempt/N
,/,
by/I
the/D
American/N
Trade/N
Consortium/N
,/,
Mr./N
Giffen/N
says/V
he/P
spends/V
a/D
lot/N
of/I
time/N
lobbying/V
./.
###/###
Growing/V
public/J
fears/N
about/I
the/D
Soviet/J
environment/N
is/V
one/C
new/J
factor/N
affecting/V
some/D
joint-venture/J
plans/N
./.
###/###
Over/I
the/D
past/J
two/C
years/N
,/,
Soviet/J
ministries/N
have/V
been/V
talking/V
to/T
international/J
firms/N
,/,
including/V
Occidental/N
Petroleum/N
Co./N
and/C
Combustion/N
Engineering/N
Inc./N
of/I
the/D
U.S./N
,/,
Montedison/N
S.p/N
./.
A./N
of/I
Italy/N
and/C
several/J
Japanese/J
groups/N
,/,
about/I
jointly/R
building/V
and/C
operating/V
several/J
big/J
petrochemical/N
plants/N
./.
###/###
The/D
plans/N
have/V
come/V
under/I
fire/N
from/I
Soviet/J
environmentalists/N
,/,
and/C
officials/N
say/V
many/J
are/V
likely/J
to/T
be/V
scaled/V
back/R
or/C
dropped/V
./.
###/###
Whatever/W
the/D
difficulties/N
,/,
Mr./N
Gorbachev/N
remains/V
committed/J
to/T
increasing/V
foreign/J
trade/N
./.
###/###
For/I
political/J
as/R
well/R
as/I
economic/J
reasons/N
,/,
U.S./N
companies/N
are/V
at/I
the/D
top/N
of/I
his/P
priorities/N
--/:
a/D
point/N
he/P
underscored/V
by/I
spending/V
two/C
hours/N
walking/V
around/I
the/D
U.S./N
trade/N
show/N
last/J
week/N
./.
###/###
Talking/V
to/T
a/D
small/J
group/N
of/I
U.S./N
executives/N
afterwards/R
,/,
Mr./N
Gorbachev/N
appeared/V
impatient/J
for/I
a/D
big/J
expansion/N
in/I
U.S.-Soviet/J
trade/N
,/,
which/W
now/R
amounts/V
to/T
a/D
meager/J
$/$
3/C
billion/C
annually/R
./.
###/###
The/D
U.S./N
ranks/V
fourth/J
of/I
countries/N
that/W
have/V
concluded/V
joint/J
ventures/N
,/,
behind/I
West/N
Germany/N
,/,
Finland/N
and/C
Italy/N
./.
###/###
According/V
to/T
several/J
people/N
present/R
at/I
the/D
meeting/N
,/,
Mr./N
Gorbachev/N
also/R
supported/V
the/D
idea/N
of/I
concluding/V
several/J
commercial/J
accords/N
with/I
the/D
U.S./N
,/,
possibly/R
at/I
his/P
next/J
summit/N
meeting/N
with/I
President/N
Bush/N
./.
###/###
Judging/V
by/I
the/D
crush/N
at/I
the/D
exhibition/N
,/,
deprived/V
Soviet/J
consumers/N
are/V
more/R
than/I
ready/J
for/I
U.S./N
products/N
./.
###/###
Hundreds/N
of/I
people/N
lined/V
up/R
every/D
day/N
at/I
the/D
Colgate-Palmolive/N
Co./N
stand/N
to/T
receive/V
a/D
free/J
tube/N
of/I
toothpaste/N
,/,
a/D
commodity/N
in/I
chronically/R
short/J
supply/N
here/R
./.
###/###
And/C
unruly/J
crowds/N
at/I
RJR/N
Nabisco/N
Inc./N
's/P
booth/N
almost/R
knocked/V
over/R
a/D
glass/N
showcase/N
in/I
the/D
rush/N
to/T
get/V
a/D
free/J
Camel/N
cigarette/N
sticker/N
./.
###/###
Some/D
U.S./N
products/N
are/V
filtering/V
into/I
the/D
Soviet/J
market/N
under/I
an/D
emergency/N
import/N
program/N
./.
###/###
Both/D
Colgate/N
and/C
Procter/N
&/C
Gamble/N
have/V
received/V
big/J
orders/N
for/I
toothpaste/N
,/,
soap/N
and/C
detergents/N
./.
###/###
The/D
American/N
Trade/N
Consortium/N
says/V
it/P
is/V
planning/V
to/T
ship/V
some/R
$/$
500/C
million/C
of/I
consumer/N
goods/N
,/,
financed/V
by/I
bank/N
credits/N
,/,
in/I
the/D
first/J
few/J
months/N
of/I
next/J
year/N
./.
###/###
But/C
the/D
current/J
Soviet/J
purchasing/N
spree/N
may/M
be/V
a/D
one-time/J
affair/N
./.
###/###
The/D
goal/N
of/I
most/J
U.S./N
firms/N
--/:
joint/J
ventures/N
--/:
remains/V
elusive/J
./.
###/###
Because/I
the/D
Soviet/J
ruble/N
is/V
n't/R
convertible/J
into/I
dollars/N
,/,
marks/N
and/C
other/J
Western/J
currencies/N
,/,
companies/N
that/W
hope/V
to/T
set/V
up/R
production/N
facilities/N
here/R
must/M
either/R
export/V
some/D
of/I
the/D
goods/N
to/T
earn/V
hard/J
currency/N
or/C
find/V
Soviet/J
goods/N
they/P
can/M
take/V
in/I
a/D
counter-trade/J
transaction/N
./.
###/###
International/J
competition/N
for/I
the/D
few/J
Soviet/J
goods/N
that/W
can/M
be/V
sold/V
on/I
world/N
markets/N
is/V
heating/V
up/R
,/,
however/R
./.
###/###
Shelley/N
M./N
Zeiger/N
,/,
an/D
entrepreneur/N
from/I
New/N
Jersey/N
who/W
buys/V
Soviet/J
porcelain/N
and/C
``/`
matryoshka/F
''/'
nesting/J
dolls/N
for/I
export/N
to/T
the/D
U.S./N
,/,
says/V
West/J
German/J
companies/N
already/R
have/V
snapped/V
up/R
much/J
of/I
the/D
production/N
of/I
these/D
items/N
./.
###/###
Seeking/V
to/T
overcome/V
the/D
currency/N
problems/N
,/,
Mr./N
Giffen/N
's/P
American/N
Trade/N
Consortium/N
,/,
which/W
comprises/V
Chevron/N
Corp./N
,/,
RJR/N
,/,
Johnson/N
&/C
Johnson/N
,/,
Eastman/N
Kodak/N
Co./N
,/,
and/C
Archer-Daniels-Midland/N
Co./N
,/,
has/V
concocted/V
an/D
elaborate/J
scheme/N
to/T
share/V
out/R
dollar/N
earnings/N
,/,
largely/R
from/I
the/D
revenues/N
of/I
a/D
planned/J
Chevron/N
oil/N
project/N
./.
###/###
Several/J
medical/J
concerns/N
,/,
including/V
Pfizer/N
Inc./N
,/,
Hewlett-Packard/N
Co./N
,/,
Colgate/N
and/C
Abbott/N
Laboratories/N
intend/V
to/T
pursue/V
a/D
similar/J
consortium/N
approach/N
./.
###/###
``/`
It/P
's/V
hard/J
to/T
invest/V
capital/N
here/R
on/I
the/D
same/J
basis/N
as/I
investing/V
in/I
other/J
countries/N
,/,
''/'
says/V
Dennis/N
A./N
Sokol/N
,/,
president/N
of/I
Medical/N
Service/N
Partners/N
Inc./N
,/,
who/W
is/V
putting/V
the/D
medical/J
consortium/N
together/R
./.
###/###
Some/D
U.S./N
entrepreneurs/N
operate/V
on/I
a/D
smaller/J
scale/N
./.
###/###
One/C
group/N
seeks/V
to/T
publish/V
a/D
U.S.-Soviet/J
medical/J
journal/N
in/I
conjunction/N
with/I
the/D
U.S.S.R./N
Ministry/N
of/I
Health/N
./.
###/###
According/V
to/T
Richard/N
P./N
Mills/N
,/,
a/D
Boston-based/J
official/N
of/I
the/D
U.S./N
partner/N
,/,
10,000/C
copies/N
of/I
the/D
quarterly/N
will/M
be/V
printed/V
in/I
Russian/N
from/I
next/J
year/N
./.
###/###
It/P
will/M
be/V
financed/V
by/I
advertisements/N
from/I
U.S./N
companies/N
and/C
by/I
simultaneous/J
publication/N
of/I
an/D
English-language/N
journal/N
containing/V
details/N
of/I
Soviet/J
medical/J
advancements/N
./.
###/###
``/`
We/P
found/V
a/D
market/N
niche/N
,/,
''/'
Mr./N
Mills/N
boasts/V
./.
###/###
It/P
's/V
truly/R
entrepreneurial/J
./.
###/###
General/N
Electric/N
Co./N
was/V
given/V
an/D
$/$
89.6/C
million/C
Navy/N
contract/N
for/I
nuclear/J
propulsion/N
parts/N
./.
###/###
Westinghouse/N
Electric/N
Corp./N
also/R
won/V
a/D
$/$
75.5/C
million/C
Navy/N
contract/N
for/I
nuclear/J
propulsion/N
parts/N
./.
###/###
Federal/N
Data/N
Corp./N
was/V
issued/V
a/D
$/$
14.5/C
million/C
Navy/N
contract/N
for/I
computer/N
systems/N
./.
###/###
American/N
Telephone/N
&/C
Telegraph/N
Co./N
was/V
awarded/V
an/D
$/$
11.5/C
million/C
Navy/N
contract/N
for/I
oceanographic/J
services/N
./.
###/###
Cray/N
Research/N
Inc./N
said/V
it/P
sold/V
one/C
of/I
its/P
newest/J
and/C
largest/J
computer/N
systems/N
,/,
the/D
Cray/N
,/,
to/T
the/D
United/N
Kingdom/N
Meteorological/N
Office/N
./.
###/###
The/D
system/N
is/V
the/D
first/J
to/T
be/V
sold/V
through/I
the/D
joint/J
marketing/N
agreement/N
between/I
Cray/N
and/C
Control/N
Data/N
Corp/N
./.
###/###
The/D
supercomputer/N
,/,
which/W
lists/V
for/I
$/$
18.5/C
million/C
,/,
will/M
be/V
installed/V
in/I
the/D
first/J
quarter/N
of/I
1990/C
in/I
the/D
meteorological/J
office/N
's/P
headquarters/N
in/I
Bracknell/N
,/,
England/N
./.
###/###
Shareholders/N
of/I
Nuovo/N
Banco/N
Ambrosiano/N
S.p/N
./.
A./N
voted/V
to/T
accept/V
a/D
bid/N
of/I
5,500/C
lire/N
-LRB-/-
$/$
4.03/C
-RRB-/-
a/D
share/N
by/I
France/N
's/P
Credit/N
Agricole/N
for/I
13.32/C
%/N
of/I
the/D
bank/N
,/,
rejecting/V
an/D
earlier/J
,/,
equal/J
offer/N
by/I
Italy/N
's/P
Assicurazioni/N
Generali/N
S.p/N
./.
A/N
./.
###/###
The/D
move/N
will/M
give/V
Nuovo/N
Banco/N
a/D
badly/R
needed/V
foreign/J
presence/N
,/,
and/C
make/V
Credit/N
Agricole/N
the/D
bank/N
's/P
largest/J
shareholder/N
./.
###/###
It/P
also/R
opens/V
a/D
rift/N
in/I
the/D
bank/N
's/P
shareholders/N
'/P
syndicate/N
that/W
could/M
lead/V
to/T
a/D
battle/N
for/I
control/N
of/I
the/D
concern/N
./.
###/###
Nuovo/N
Banco/N
will/M
become/V
Italy/N
's/P
biggest/J
private-sector/J
bank/N
when/W
it/P
completes/V
its/P
scheduled/J
merger/N
with/I
Banca/N
Cattolica/N
del/N
Venetoen/N
by/I
year/N
end/N
./.
###/###
Credit/N
Agricole/N
asked/V
a/D
Milan/N
court/N
to/T
sequester/V
the/D
Nuovo/N
Banco/N
shares/N
,/,
the/D
Italian/J
news/N
agency/N
ANSA/N
reported/V
./.
###/###
The/D
tribunal/N
is/V
scheduled/V
to/T
rule/V
on/I
the/D
request/N
Friday/N
./.
###/###
No/D
reason/N
for/I
the/D
request/N
was/V
given/V
./.
###/###
Credit/N
Agricole/N
officials/N
could/M
n't/R
be/V
immediately/R
reached/V
for/I
comment/N
./.
###/###
The/D
decision/N
to/T
accept/V
Credit/N
Agricole/N
's/P
bid/N
,/,
valued/V
at/I
283.3/C
billion/C
lire/N
-LRB-/-
$/$
207.4/C
million/C
-RRB-/-
,/,
came/V
after/I
a/D
stormy/J
weekend/N
meeting/N
./.
###/###
Nuovo/N
Banco/N
's/P
second/J
largest/J
shareholder/N
,/,
the/D
Fiat/N
S.p/N
./.
A.-controlled/J
investment/N
concern/N
,/,
Gemina/N
S.p/N
./.
A./N
,/,
fought/V
to/T
have/V
Generali/N
's/P
offer/N
approved/V
./.
###/###
Gemina/N
,/,
which/W
owns/V
13.26/C
%/N
of/I
Nuovo/N
Banco/N
,/,
abstained/V
in/I
the/D
final/J
vote/N
on/I
Credit/N
Agricole/N
,/,
which/W
was/V
nonetheless/R
approved/V
by/I
a/D
majority/N
of/I
shareholders/N
./.
###/###
The/D
linkup/N
with/I
Credit/N
Agricole/N
will/M
give/V
Nuovo/N
Banco/N
its/P
first/J
foreign/J
presence/N
since/I
it/P
was/V
formed/V
from/I
the/D
wreck/N
of/I
the/D
old/J
Banco/N
Ambrosiano/N
,/,
which/W
collapsed/V
amid/I
scandal/N
after/I
the/D
death/N
of/I
Chairman/N
Roberto/N
Calvi/N
in/I
1982/C
./.
###/###
Since/I
then/R
,/,
the/D
bank/N
has/V
strengthened/V
its/P
Italian/J
network/N
,/,
and/C
has/V
posted/V
strong/J
results/N
./.
###/###
``/`
The/D
shareholders/N
felt/V
we/P
needed/V
a/D
foreign/J
presence/N
more/R
than/I
we/P
needed/V
links/N
with/I
an/D
insurance/N
company/N
,/,
''/'
an/D
Ambrosiano/N
spokeswoman/N
said/V
./.
###/###
Gemina/N
said/V
in/I
a/D
statement/N
that/I
``/`
it/P
reserves/V
the/D
right/N
to/T
take/V
any/D
action/N
to/T
protect/V
its/P
rights/N
as/I
a/D
member/N
of/I
the/D
syndicate/N
./.
''/'
###/###
A/D
company/N
spokeswoman/N
said/V
the/D
company/N
had/V
n't/R
decided/V
what/W
measures/N
to/T
take/V
,/,
but/C
did/V
n't/R
rule/V
out/R
legal/J
action/N
./.
###/###
Generali/N
,/,
Italy/N
's/P
biggest/J
insurer/N
,/,
last/J
month/N
offered/V
5,500/C
lire/N
a/D
share/N
for/I
the/D
Nuovo/N
Banco/N
stake/N
held/V
by/I
Banco/N
Popolare/N
di/N
Milano/N
,/,
the/D
bank/N
's/P
largest/J
shareholder/N
,/,
which/W
announced/V
plans/N
to/T
sell/V
the/D
holdings/N
earlier/R
this/D
year/N
./.
###/###
A/D
Generali/N
spokesman/N
declined/V
to/T
comment/V
on/I
Nuovo/N
Banco/N
's/P
rejection/N
of/I
the/D
insurer/N
's/P
offer/N
./.
###/###
On/I
the/D
Milan/N
stock/N
exchange/N
,/,
Nuovo/N
Banco/N
's/P
shares/N
jumped/V
to/T
4,830/C
lire/N
each/D
from/I
4,695/C
lire/N
Friday/N
./.
###/###
Qintex/N
Australia/N
Ltd./N
,/,
a/D
media/N
and/C
resorts/N
concern/N
controlled/V
by/I
Australian/J
entrepreneur/N
Christopher/N
Skase/N
,/,
announced/V
a/D
plan/N
to/T
restructure/V
and/C
sell/V
assets/N
to/T
try/V
to/T
ease/V
its/P
financial/J
problems/N
./.
###/###
Mr./N
Skase/N
,/,
a/D
41-year-old/J
former/J
newspaper/N
reporter/N
who/W
chairs/V
the/D
company/N
,/,
said/V
in/I
a/D
statement/N
that/D
Qintex/N
will/M
sell/V
its/P
51/C
%/N
stake/N
in/I
its/P
upscale/J
Mirage/N
resorts/N
in/I
Australia/N
and/C
Hawaii/N
as/R
well/R
as/I
three/C
Australian/J
television/N
stations/N
./.
###/###
The/D
sales/N
are/V
expected/V
to/T
raise/V
more/J
than/I
600/C
million/C
Australian/J
dollars/N
-LRB-/-
US$/$
462.2/C
million/C
-RRB-/-
,/,
Mr./N
Skase/N
said/V
./.
###/###
Qintex/N
Australia/N
has/V
n't/R
disclosed/V
its/P
borrowings/N
,/,
but/C
analysts/N
estimate/V
the/D
company/N
's/P
debt/N
at/I
A$/$
1.2/C
billion/C
./.
###/###
Mr./N
Skase/N
also/R
said/V
the/D
restructuring/N
plan/N
calls/V
for/I
the/D
merger/N
of/I
Qintex/N
Australia/N
with/I
Qintex/N
Ltd./N
,/,
which/W
owns/V
55/C
%/N
of/I
Qintex/N
Australia/N
./.
###/###
He/P
said/V
the/D
move/N
will/M
``/`
significantly/R
reduce/V
administrative/J
and/C
operating/N
costs/N
,/,
''/'
but/C
he/P
did/V
n't/R
provide/V
details/N
of/I
the/D
merger/N
./.
###/###
Company/N
officials/N
said/V
over/I
the/D
weekend/N
that/I
Qintex/N
Australia/N
's/P
bank/N
creditors/N
have/V
become/V
concerned/J
about/I
a/D
barrage/N
of/I
bad/J
news/N
at/I
the/D
company/N
,/,
including/V
a/D
failed/J
US$/$
1.5/C
billion/C
plan/N
to/T
buy/V
Communications/N
Co./N
,/,
a/D
Beverly/N
Hills/N
,/,
Calif./N
,/,
movie/N
and/C
television/N
production/N
concern/N
./.
###/###
Friday/N
,/,
Qintex/N
Entertainment/N
Inc./N
,/,
a/D
43%-owned/J
U.S./N
affiliate/N
,/,
filed/V
for/I
protection/N
from/I
creditor/N
lawsuits/N
under/I
Chapter/N
11/C
of/I
the/D
U.S./N
Bankruptcy/N
Code/N
./.
###/###
Analysts/N
predicted/V
that/I
the/D
move/N
would/M
further/R
shake/V
creditor/N
confidence/N
in/I
Qintex/N
Australia/N
and/C
force/V
it/P
to/T
sell/V
assets/N
./.
###/###
The/D
company/N
's/P
latest/J
moves/N
were/V
disclosed/V
after/I
the/D
Australian/N
Stock/N
Exchange/N
suspended/V
trading/N
in/I
shares/N
of/I
Qintex/N
Australia/N
and/C
Qintex/N
Ltd./N
because/I
the/D
companies/N
had/V
n't/R
answered/V
an/D
exchange/N
inquiry/N
about/I
the/D
extent/N
of/I
their/P
loans/N
,/,
investments/N
and/C
deposits/N
at/I
Qintex/N
Entertainment/N
./.
###/###
Mr./N
Skase/N
's/P
statement/N
was/V
addressed/V
to/T
the/D
stock/N
exchange/N
and/C
appeared/V
to/T
be/V
a/D
response/N
to/T
the/D
inquiry/N
./.
###/###
It/P
said/V
Qintex/N
Entertainment/N
owes/V
Qintex/N
Australia/N
US$/$
38.1/N
million/C
in/I
loans/N
not/R
secured/V
by/I
specific/J
assets/N
./.
###/###
Qintex/N
Australia/N
also/R
said/V
it/P
has/V
an/D
investment/N
of/I
A$/$
83.3/C
million/C
in/I
Qintex/N
Entertainment/N
shares/N
./.
###/###
In/I
the/D
statement/N
,/,
Mr./N
Skase/N
said/V
that/I
on/I
the/D
basis/N
of/I
current/J
interest/N
rates/N
in/I
Australia/N
,/,
the/D
company/N
's/P
asset/N
sales/N
would/M
reduce/V
interest/N
expense/N
by/I
about/R
A$/$
120/C
million/C
a/D
year/N
in/I
addition/N
to/T
eliminating/V
certain/J
liabilities/N
./.
###/###
In/I
March/N
,/,
Qintex/N
sold/V
49/C
%/N
of/I
the/D
three/C
Mirage/N
resorts/N
to/T
Japan/N
's/P
Nippon/N
Shinpan/N
Co./N
and/C
Mitsui/N
&/C
Co./N
for/I
A$/$
433/N
million/C
./.
###/###
Yesterday/N
's/P
statement/N
did/V
n't/R
say/V
whether/I
the/D
Japanese/J
companies/N
will/M
acquire/V
Qintex/N
's/P
remaining/V
stake/N
in/I
the/D
resorts/N
./.
###/###
Before/I
its/P
shares/N
were/V
suspended/V
from/I
trading/N
,/,
Qintex/N
Australia/N
plunged/V
to/T
16/C
Australian/J
cents/N
-LRB-/-
12/C
U.S./N
cents/N
-RRB-/-
a/D
share/N
yesterday/N
from/I
33/C
Australian/J
cents/N
Friday/N
./.
###/###
The/D
shares/N
traded/V
at/I
about/R
A$/$
1.50/N
in/I
March/N
,/,
when/W
the/D
plan/N
to/T
acquire/V
was/V
announced/V
./.
###/###
Qintex/N
Ltd./N
shares/N
sank/V
to/T
A$/$
1.50/N
yesterday/N
from/I
A$/$
3.05/N
Friday/N
./.
###/###
Mr./N
Skase/N
's/P
statement/N
cited/V
four/C
recent/J
problems/N
that/I
he/P
said/V
had/V
cut/V
group/N
cash/N
flow/N
by/I
more/J
than/I
A$/$
200/C
million/C
./.
###/###
They/P
were/V
what/W
he/P
called/V
an/D
``/`
unlawful/J
termination/N
''/'
by/I
of/I
the/D
acquisition/N
agreement/N
with/I
Qintex/N
,/,
high/J
Australian/J
interest/N
rates/N
,/,
a/D
pilots/N
'/P
strike/N
at/I
Australian/J
domestic/J
airlines/N
that/W
cut/V
revenue/N
at/I
the/D
company/N
's/P
Australian/J
resorts/N
and/C
delays/N
in/I
completing/V
a/D
sale/N
of/I
two/C
regional/J
TV/N
stations/N
in/I
Queensland/N
state/N
./.
###/###
has/V
sued/V
Qintex/N
Australia/N
for/I
breach/N
of/I
contract/N
and/C
fraud/N
over/I
the/D
collapsed/J
acquisition/N
agreement/N
,/,
and/C
Qintex/N
Australia/N
has/V
threatened/V
a/D
countersuit/N
./.
###/###
Qintex/N
Australia/N
has/V
n't/R
yet/R
reported/V
results/N
for/I
the/D
fiscal/J
year/N
ended/V
July/N
31/C
./.
###/###
In/I
his/P
statement/N
,/,
Mr./N
Skase/N
said/V
preliminary/J
accounts/N
showed/V
that/I
group/N
profit/N
before/I
interest/N
,/,
tax/N
and/C
depreciation/N
``/`
will/M
exceed/V
A$/$
170/C
million/C
./.
''/'
###/###
He/P
gave/V
no/D
further/J
details/N
./.
###/###
Shareholders/N
'/P
funds/N
as/I
of/I
July/N
31/C
were/V
estimated/V
at/I
more/J
than/I
A$/$
1/C
billion/C
,/,
Mr./N
Skase/N
said/V
,/,
compared/V
with/I
A$/$
725/C
million/C
a/D
year/N
earlier/R
./.
###/###
The/D
company/N
will/M
make/V
``/`
adequate/J
provisions/N
''/'
to/T
cover/V
costs/N
of/I
the/D
dispute/N
with/I
and/C
any/D
loss/N
from/I
the/D
investment/N
in/I
Qintex/N
Entertainment/N
,/,
he/P
said/V
./.
###/###
Mr./N
Skase/N
also/R
disclosed/V
a/D
disagreement/N
among/I
directors/N
of/I
Qintex/N
Australia/N
over/I
certain/J
fees/N
claimed/V
by/I
Qintex/N
Group/N
Management/N
Services/N
Pty./N
,/,
a/D
management-services/J
concern/N
in/I
which/W
Qintex/N
Australia/N
executives/N
have/V
an/D
interest/N
./.
###/###
Qintex/N
Australia/N
paid/V
the/D
management/N
company/N
A$/$
32.6/C
million/C
in/I
the/D
latest/J
fiscal/J
year/N
./.
###/###
Mr./N
Skase/N
said/V
most/J
of/I
the/D
money/N
went/V
to/T
other/J
parties/N
for/I
expenses/N
such/J
as/I
rent/N
and/C
travel/N
,/,
but/C
a/D
smaller/J
portion/N
is/V
owed/V
to/T
senior/J
executives/N
and/C
others/N
for/I
management/N
services/N
./.
###/###
Non-executive/J
directors/N
of/I
Qintex/N
Australia/N
,/,
who/W
must/M
approve/V
payments/N
to/T
the/D
senior/J
executives/N
,/,
balked/V
at/I
the/D
amount/N
./.
###/###
Two/C
of/I
the/D
directors/N
resigned/V
,/,
Mr./N
Skase/N
said/V
,/,
so/I
the/D
payments/N
have/V
n't/R
yet/R
been/V
approved/V
./.
###/###
Chip/N
's/P
Memory/N
Is/V
Here/R
Today/N
,/,
Here/R
Tomorrow/N
###/###
TWO/C
COMPANIES/N
plan/V
to/T
market/V
a/D
new/J
chip/N
with/I
ceramic/J
circuits/N
that/I
store/V
data/N
even/R
when/W
the/D
power/N
is/V
off/R
./.
###/###
Today/N
's/V
most/R
widely/R
used/V
data-storing/J
chips/N
have/V
``/`
volatile/J
''/'
memories/N
--/:
their/P
data/N
disappear/V
if/I
they/P
are/V
n't/R
fed/V
a/D
steady/J
diet/N
of/I
electricity/N
,/,
so/I
they/P
need/V
external/J
power/N
supplies/N
./.
###/###
National/N
Semiconductor/N
Corp./N
and/C
a/D
start-up/N
named/V
Ramtron/N
Corp./N
plan/V
to/T
start/V
shipping/V
so-called/J
ferroelectric/J
memories/N
,/,
which/W
can/M
remember/V
data/N
for/I
at/I
least/J
10/C
years/N
without/I
any/D
current/N
flowing/V
to/T
them/P
./.
###/###
The/D
chips/N
use/V
materials/N
,/,
such/J
as/I
lead/N
zirconate/N
titanate/N
,/,
to/T
form/V
microscopic/J
switches/N
that/W
retain/V
their/P
data/N
without/I
electricity/N
./.
###/###
Developers/N
caution/V
that/I
broad/J
applications/N
are/V
several/J
years/N
away/R
because/I
the/D
technology/N
is/V
n't/R
fully/R
refined/V
./.
###/###
But/C
Ramtron/N
of/I
Colorado/N
Springs/N
,/,
Colo./N
,/,
plans/V
to/T
start/V
shipping/V
commercial/J
quantities/N
of/I
simple/J
ferroelectric/J
chips/N
in/I
December/N
./.
###/###
The/D
company/N
expects/V
the/D
chips/N
eventually/R
to/T
be/V
used/V
in/I
devices/N
that/W
mimic/V
a/D
whole/J
range/N
of/I
computer/N
memory/N
equipment/N
,/,
including/V
floppy-disk/N
and/C
hard-disk/N
drives/N
./.
###/###
National/N
Semiconductor/N
is/V
getting/V
ferroelectric/J
technology/N
from/I
Krysalis/N
Corp./N
in/I
Albuquerque/N
,/,
N.M/N
./.
###/###
National/N
says/V
it/P
agreed/V
to/T
acquire/V
Krysalis/N
's/P
assets/N
and/C
will/M
start/V
shipping/V
commercial/J
quantities/N
of/I
its/P
first/J
chips/N
,/,
including/V
a/D
4-kilobit/J
memory/N
,/,
next/J
year/N
./.
###/###
Once/I
production/N
hurdles/N
are/V
overcome/V
,/,
the/D
chips/N
could/M
take/V
over/R
a/D
significant/J
part/N
of/I
the/D
market/N
./.
###/###
In/I
addition/N
to/T
not/R
needing/V
an/D
outside/J
power/N
source/N
,/,
they/P
are/V
potentially/R
cheaper/J
to/T
make/V
because/I
they/P
require/V
fewer/J
manufacturing/N
steps/N
than/I
conventional/J
chips/N
./.
###/###
Military/J
buyers/N
have/V
shown/V
interest/N
,/,
National/J
says/V
,/,
because/I
ferroelectric/J
chips/N
resist/V
atomic/J
radiation/N
./.
###/###
And/C
while/I
today/N
's/P
non-volatile/J
chips/N
--/:
such/J
as/I
electronically/R
erasable/J
programmable/J
read-only/J
memory/N
chips/N
--/:
ca/M
n't/R
be/V
used/V
in/I
a/D
computer/N
's/P
central/J
memory/N
because/I
they/P
``/`
learn/V
''/'
data/N
slowly/R
,/,
ferroelectric/J
chips/N
accept/V
data/N
at/I
very/R
high/J
speeds/N
./.
###/###
Showing/V
Up/R
in/I
Court/N
Without/I
Being/V
There/R
###/###
AN/D
AUSTIN/N
,/,
Texas/N
,/,
company/N
plans/N
to/T
make/V
it/P
easy/J
for/I
you/P
show/V
up/R
in/I
court/N
a/D
thousand/C
miles/N
away/R
without/I
leaving/V
town/N
./.
###/###
Witnesses/N
often/R
must/M
travel/V
long/J
distances/N
to/T
give/V
face-to-face/J
depositions/N
before/I
lawyers/N
and/C
court/N
reporters/N
./.
###/###
That/D
means/V
huge/J
travel/N
bills/N
./.
###/###
And/C
telephone/N
or/C
videotape/N
depositions/N
just/R
do/V
n't/R
match/V
physical/J
encounters/N
./.
###/###
That/D
could/M
change/V
,/,
thanks/N
to/T
lower/J
long-distance/J
rates/N
and/C
cheaper/J
electronics/N
./.
###/###
Video/N
Telecom/N
Corp./N
,/,
which/W
markets/V
videoconferencing/N
systems/N
,/,
is/V
working/V
with/I
court/N
reporters/N
to/T
wire/V
a/D
nationwide/J
network/N
to/T
allow/V
depositions/N
by/I
live/J
television/N
./.
###/###
The/D
company/N
installed/V
a/D
prototype/N
system/N
that/W
connects/V
Dallas/N
with/I
Miami/N
over/I
digital/J
phone/N
lines/N
./.
###/###
And/C
it/P
is/V
preparing/V
to/T
set/V
up/R
shop/N
in/I
Chicago/N
,/,
New/N
York/N
and/C
10/C
other/J
cities/N
where/W
court-reporting/J
agencies/N
can/M
tie/V
conference/N
rooms/N
into/I
the/D
network/N
./.
###/###
While/I
lawyers/N
arranged/V
individual/J
tie-ups/N
before/R
,/,
the/D
formal/J
network/N
of/I
court/N
reporters/N
should/M
make/V
things/N
easier/J
and/C
cheaper/J
./.
###/###
An/D
attorney/N
will/M
be/V
able/J
to/T
use/V
the/D
network/N
for/I
an/D
hourly/J
fee/N
of/I
between/I
$/$
200/C
and/C
$/$
400/C
,/,
depending/V
on/I
the/D
quality/N
of/I
the/D
picture/N
,/,
to/T
take/V
depositions/N
from/I
witnesses/N
in/I
any/D
of/I
the/D
connected/J
cities/N
./.
###/###
Japanese/N
Reverse/V
Tack/N
On/I
Patent/N
Protection/N
###/###
JAPAN'S/N
MISUSE/N
of/I
U.S./N
patents/N
has/V
been/V
a/D
sore/J
point/N
for/I
American/J
chip/N
makers/N
./.
###/###
Now/R
at/I
least/J
one/C
Japanese/J
company/N
is/V
turning/V
the/D
courtroom/N
tables/N
./.
###/###
Until/I
now/R
,/,
most/J
Japanese/J
charges/N
have/V
been/V
responses/N
to/T
suits/N
against/I
them/P
./.
###/###
But/C
last/J
year/N
Hitachi/N
Ltd./N
surprised/V
Japan/N
's/P
electronics/N
industry/N
when/W
it/P
accused/V
Korea/N
's/P
Samsung/N
Electronics/N
Co./N
of/I
using/V
Hitachi/N
technology/N
to/T
make/V
dynamic/J
random-access/J
memory/N
chips/N
./.
###/###
A/D
settlement/N
was/V
reached/V
but/C
was/V
n't/R
made/V
public/J
./.
-RRB-/-
###/###
And/C
Hitachi/N
went/V
on/I
the/D
offensive/N
against/I
the/D
U.S./N
's/P
Motorola/N
Inc./N
earlier/R
this/D
month/N
with/I
a/D
suit/N
charging/V
that/I
Motorola/N
's/P
new/J
MC88200/N
chip/N
infringes/V
on/I
a/D
Hitachi/N
patent/N
./.
###/###
Another/D
recent/J
Hitachi/N
suit/N
accuses/V
Motorola/N
of/I
reverse/R
engineering/V
a/D
Hitachi/N
technology/N
--/:
a/D
turnabout/N
from/I
a/D
nation/N
of/I
champion/J
reverse/J
engineers/N
./.
###/###
The/D
moves/N
illustrate/V
the/D
more/R
aggressive/J
attitude/N
toward/I
patent/N
protection/N
that/I
patent/J
experts/N
say/V
Japan/N
is/V
starting/V
to/T
take/V
./.
###/###
Hitachi/N
made/V
the/D
reverse-engineering/N
charges/N
in/I
an/D
amendment/N
to/T
a/D
counterclaim/N
filed/V
in/I
a/D
federal/J
district/J
court/N
in/I
Texas/N
after/I
Motorola/N
sued/V
Hitachi/N
for/I
patent/N
violation/N
./.
###/###
Hitachi/N
charges/V
Motorola/N
``/`
has/V
engaged/V
in/I
fraudulent/J
and/C
inequitable/J
conduct/N
in/I
the/D
procurement/N
of/I
certain/J
Motorola/N
patents/N
''/'
used/V
in/I
Motorola/N
's/P
MC68030/N
microprocessor/N
chip/N
./.
###/###
Translation/N
:/:
Motorola/N
appears/V
to/T
have/V
taken/V
a/D
Hitachi/N
technology/N
that/W
is/V
patented/V
in/I
the/D
U.S./N
,/,
Hitachi/N
says/V
,/,
and/C
``/`
tried/V
to/T
make/V
it/P
look/V
like/I
a/D
new/J
technology/N
./.
''/'
###/###
Motorola/N
either/C
denied/V
or/C
would/M
n't/R
comment/V
on/I
the/D
various/J
charges/N
./.
###/###
Odds/N
and/C
Ends/N
###/###
COMPUTER/N
chips/N
that/W
simulate/V
human/J
vision/N
have/V
been/V
developed/V
by/I
Japan/N
's/P
Sharp/N
Corp/N
./.
###/###
They/P
mimic/V
the/D
brain/N
by/I
``/`
looking/V
''/'
at/I
an/D
image/N
,/,
extracting/V
the/D
fundamentals/N
--/:
boundaries/N
,/,
corners/N
and/C
lines/N
--/:
and/C
translating/V
them/P
into/I
computer/N
data/N
./.
###/###
Sharp/N
says/V
the/D
set/N
of/I
chips/N
could/M
improve/V
fax/N
machines/N
,/,
graphics/N
computers/N
or/C
identification/N
systems/N
that/W
recognize/V
facial/J
features/N
./.
###/###
An/D
N.V/N
./.
Philips/N
unit/N
has/V
created/V
a/D
computer/N
system/N
that/W
processes/V
video/N
images/N
3,000/C
times/N
faster/R
than/I
conventional/J
systems/N
./.
###/###
Using/V
reduced/J
instruction-set/N
computing/N
,/,
or/C
RISC/N
,/,
chips/N
made/V
by/I
Intergraph/N
of/I
Huntsville/N
,/,
Ala./N
,/,
the/D
system/N
splits/V
the/D
image/N
it/P
``/`
sees/V
''/'
into/I
20/C
digital/J
representations/N
,/,
each/D
processed/V
by/I
one/C
chip/N
./.
###/###
Tandy/N
Corp./N
,/,
citing/V
sluggish/J
sales/N
of/I
consumer-electronics/J
goods/N
,/,
said/V
net/J
income/N
dropped/V
3.3/C
%/N
for/I
the/D
first/J
quarter/N
ended/V
Sept./N
30/C
./.
###/###
The/D
results/N
,/,
which/W
represented/V
the/D
fifth/J
consecutive/J
quarter/N
of/I
flat-to-lower/J
earnings/N
for/I
the/D
big/J
electronics/N
retailer/N
,/,
disappointed/V
analysts/N
and/C
traders/N
./.
###/###
Tandy/N
's/P
stock/N
fell/V
$/$
1.375/C
a/D
share/N
to/T
close/V
at/I
$/$
44/C
in/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
./.
###/###
Net/N
for/I
the/D
quarter/N
was/V
$/$
62.8/C
million/C
,/,
or/C
73/C
cents/N
a/D
share/N
,/,
down/R
from/I
$/$
64.9/C
million/C
,/,
or/C
72/C
cents/N
a/D
share/N
,/,
a/D
year/N
earlier/R
./.
###/###
The/D
company/N
said/V
earnings/N
would/M
have/V
increased/V
if/I
it/P
had/V
n't/R
been/V
actively/R
repurchasing/V
its/P
shares/N
,/,
thus/R
increasing/V
its/P
interest/N
expense/N
and/C
reducing/V
its/P
interest/N
income/N
./.
###/###
Tandy/N
had/V
86.3/C
million/C
shares/N
outstanding/J
at/I
Sept./N
30/C
,/,
down/R
from/I
90/C
million/C
a/D
year/N
earlier/R
./.
###/###
Revenue/N
rose/V
5/C
%/N
to/T
$/$
986/C
million/C
from/I
$/$
937/C
million/C
./.
###/###
Tandy/N
said/V
consumer/N
electronics/N
sales/N
at/I
its/P
Radio/N
Shack/N
stores/N
have/V
been/V
slow/J
,/,
partly/R
because/I
of/I
a/D
lack/N
of/I
hot/J
,/,
new/J
products/N
./.
###/###
``/`
Radio/N
Shack/N
continues/V
to/T
be/V
lackluster/J
,/,
''/'
said/V
Dennis/N
Telzrow/N
,/,
analyst/N
with/I
Eppler/N
,/,
Guerin/N
&/C
Turner/N
in/I
Dallas/N
./.
###/###
He/P
said/V
Tandy/N
``/`
has/V
done/V
a/D
decent/J
job/N
''/'
increasing/V
sales/N
by/I
manufacturing/V
computers/N
for/I
others/N
and/C
expanding/V
sales/N
of/I
its/P
Grid/N
Systems/N
Corp./N
subsidiary/N
,/,
which/W
sells/V
computers/N
to/T
bigger/J
businesses/N
,/,
but/C
``/`
it/P
's/V
not/R
enough/N
to/T
offset/V
the/D
problems/N
at/I
Radio/N
Shack/N
./.
''/'
###/###
Sales/N
at/I
Radio/N
Shack/N
stores/N
open/J
more/R
than/I
a/D
year/N
grew/V
only/R
2/C
%/N
in/I
the/D
quarter/N
from/I
a/D
year/N
earlier/R
,/,
he/P
said/V
./.
###/###
As/I
a/D
result/N
,/,
Mr./N
Telzrow/N
said/V
he/P
cut/V
his/P
fiscal/J
1990/C
per-share/J
earnings/N
estimate/N
for/I
Tandy/N
to/T
$/$
4.05/C
from/I
$/$
4.20/C
./.
###/###
Tandy/N
earned/V
$/$
88.8/C
million/C
,/,
or/C
$/$
3.64/C
a/D
share/N
,/,
in/I
the/D
year/N
ended/V
June/N
30/C
./.
###/###
Barry/N
Bryant/N
,/,
an/D
analyst/N
with/I
Drexel/N
Burnham/N
Lambert/N
Inc./N
,/,
said/V
Tandy/N
also/R
has/V
suffered/V
from/I
lethargic/J
sales/N
of/I
its/P
computers/N
aimed/V
at/I
the/D
home/N
and/C
small-office/J
market/N
,/,
which/W
are/V
less-advanced/J
and/C
cheaper/J
than/I
computers/N
aimed/V
at/I
the/D
corporate/J
market/N
./.
###/###
Tandy/N
has/V
added/V
several/J
new/J
products/N
to/T
that/D
line/N
,/,
including/V
a/D
laptop/J
computer/N
priced/V
around/I
$/$
1,000/C
,/,
and/C
is/V
focusing/V
its/P
advertising/N
on/I
the/D
easy-to-use/J
software/N
that/W
is/V
packaged/V
with/I
its/P
machines/N
./.
###/###
Mr./N
Bryant/N
and/C
other/J
analysts/N
hope/V
all/D
those/D
moves/N
will/M
combine/V
to/T
help/V
Tandy/N
's/P
results/N
improve/V
in/I
the/D
important/J
Christmas/N
quarter/N
./.
###/###
``/`
They/P
've/V
been/V
promising/V
13/C
%/N
to/T
15/C
%/N
growth/N
based/V
on/I
the/D
strategic/J
moves/N
they/P
've/V
made/V
,/,
''/'
he/P
said/V
./.
###/###
If/I
the/D
earnings/N
acceleration/N
is/V
to/T
take/V
place/N
,/,
that/W
should/M
be/V
the/D
quarter/N
./.
###/###
At/I
a/D
private/J
dinner/N
Thursday/N
,/,
Drexel/N
Burnham/N
Lambert/N
Inc./N
chief/J
executive/N
Frederick/N
Joseph/N
delivered/V
a/D
sobering/J
message/N
about/I
the/D
junk/N
bond/N
market/N
to/T
officials/N
of/I
Prudential/N
Insurance/N
Co./N
of/I
America/N
./.
###/###
Mr./N
Joseph/N
conceded/V
the/D
junk/N
market/N
was/V
in/I
disarray/N
,/,
according/V
to/T
people/N
familiar/J
with/I
the/D
discussion/N
./.
###/###
He/P
said/V
Drexel/N
--/:
the/D
leading/J
underwriter/N
of/I
high-risk/J
junk/N
bonds/N
--/:
could/M
no/R
longer/R
afford/V
to/T
sell/V
any/D
junk/N
offerings/N
if/I
they/P
might/M
later/R
become/V
troubled/J
because/I
Drexel/N
risked/V
losing/V
its/P
highly/R
lucrative/J
junk/N
franchise/N
./.
###/###
The/D
dinner/N
was/V
a/D
stark/J
confirmation/N
that/I
1989/C
is/V
the/D
worst/J
year/N
ever/R
for/I
the/D
$/$
200/C
billion/C
junk/N
market/N
./.
###/###
And/C
investors/N
and/C
traders/N
alike/R
say/V
the/D
current/J
turmoil/N
could/M
take/V
years/N
to/T
resolve/V
./.
###/###
Amid/I
the/D
market/N
disorder/N
,/,
even/R
Drexel/N
,/,
which/W
has/V
the/D
widest/J
and/C
most/R
loyal/J
following/N
of/I
junk/N
bond/N
investors/N
,/,
is/V
pulling/V
in/I
its/P
horns/N
./.
###/###
Although/I
the/D
big/J
investment/N
bank/N
still/R
dominates/V
the/D
junk/N
market/N
,/,
Drexel/N
has/V
been/V
unable/J
to/T
stem/V
the/D
fallout/N
from/I
growing/V
junk/N
bond/N
defaults/N
,/,
withdrawn/V
new/J
offerings/N
,/,
redemptions/N
by/I
shareholders/N
in/I
junk/N
bond/N
mutual/J
funds/N
and/C
an/D
exodus/N
of/I
once-devoted/J
investors/N
./.
###/###
For/I
many/J
money/N
managers/N
,/,
the/D
past/J
four/C
months/N
have/V
been/V
humiliating/J
./.
###/###
``/`
This/D
is/V
the/D
worst/J
shakeout/N
ever/R
in/I
the/D
junk/N
market/N
,/,
and/C
it/P
could/M
take/V
years/N
before/I
it/P
's/V
over/R
,/,
''/'
says/V
Mark/N
Bachmann/N
,/,
a/D
senior/J
vice/N
president/N
at/I
Standard/N
&/C
Poor/N
's/P
Corp./N
,/,
a/D
credit/N
rating/N
company/N
./.
###/###
In/I
the/D
third/J
quarter/N
,/,
for/I
example/N
,/,
junk/N
bonds/N
--/:
those/D
with/I
less/J
than/I
an/D
investment-grade/J
rating/N
--/:
showed/V
negative/J
returns/N
,/,
the/D
only/J
major/J
sector/N
of/I
the/D
bond/N
market/N
to/T
do/V
so/R
./.
###/###
Since/I
the/D
end/N
of/I
last/J
year/N
,/,
junk/N
bonds/N
have/V
been/V
outperformed/V
by/I
all/D
categories/N
of/I
investment-grade/J
bonds/N
,/,
including/V
ultra-safe/J
Treasury/N
securities/N
./.
###/###
The/D
junk/N
market/N
,/,
which/W
mushroomed/V
to/T
$/$
200/C
billion/C
from/I
less/J
than/I
$/$
2/C
billion/C
at/I
the/D
start/N
of/I
the/D
decade/N
,/,
has/V
been/V
declining/V
for/I
months/N
as/I
issuers/N
have/V
stumbled/V
under/I
the/D
weight/N
of/I
hefty/J
interest/N
payments/N
./.
###/###
The/D
fragile/J
market/N
received/V
its/P
biggest/J
jolt/N
last/J
month/N
from/I
Campeau/N
Corp./N
,/,
which/W
created/V
its/P
U.S./N
retailing/N
empire/N
with/I
more/J
than/I
$/$
3/C
billion/C
in/I
junk/N
financing/N
./.
###/###
Campeau/N
developed/V
a/D
cash/N
squeeze/N
that/W
caused/V
it/P
to/T
be/V
tardy/J
on/I
some/D
interest/N
payments/N
and/C
to/T
put/V
its/P
prestigious/J
Bloomingdale/N
's/P
department/N
store/N
chain/N
up/R
for/I
sale/N
./.
###/###
At/I
that/D
point/N
,/,
the/D
junk/N
market/N
went/V
into/I
a/D
tailspin/N
as/I
buyers/N
disappeared/V
and/C
investors/N
tried/V
to/T
sell/V
./.
###/###
In/I
an/D
interview/N
,/,
Mr./N
Joseph/N
says/V
his/P
dinner/N
discussion/N
with/I
the/D
Prudential/J
executives/N
acknowledged/V
problems/N
for/I
junk/N
./.
###/###
``/`
What/W
I/P
thought/V
I/P
was/V
saying/V
is/V
that/I
the/D
market/N
is/V
troubled/J
but/C
still/R
viable/J
and/C
,/,
appropriately/R
enough/R
,/,
quite/R
quality-conscious/J
,/,
which/W
is/V
not/R
at/I
all/D
bad/J
,/,
''/'
he/P
says/V
./.
###/###
Nobody/N
's/V
been/V
perfect/J
in/I
their/P
credit/N
judgments/N
the/D
past/J
couple/J
years/N
,/,
and/C
we/P
're/V
going/V
to/T
make/V
sure/J
our/P
default/N
rates/N
are/V
going/V
to/T
be/V
in/I
the/D
acceptable/J
parameters/N
of/I
the/D
market/N
./.
''/'
###/###
What/W
has/V
jolted/V
many/J
junk/N
buyers/N
is/V
the/D
sudden/J
realization/N
that/I
junk/N
bonds/N
can/M
not/R
necessarily/R
be/V
bought/V
and/C
sold/V
with/I
the/D
ease/N
of/I
common/J
stocks/N
and/C
many/J
investment-grade/J
bonds/N
./.
###/###
Unlike/I
the/D
New/N
York/N
Stock/N
Exchange/N
,/,
where/W
buyers/N
and/C
sellers/N
are/V
quickly/R
matched/V
,/,
the/D
junk/N
market/N
,/,
where/W
risky/J
corporate/J
loans/N
are/V
traded/V
,/,
is/V
sometimes/R
closed/V
for/I
repairs/N
./.
###/###
At/I
closely/R
held/V
Deltec/N
Securities/N
Corp./N
,/,
junk/N
bond/N
money/N
managers/N
Amy/N
K./N
Minella/N
and/C
Hannah/N
H./N
Strasser/N
say/V
the/D
problems/N
of/I
the/D
junk/N
market/N
go/V
deeper/R
than/I
a/D
temporary/J
malaise/N
./.
###/###
In/I
recent/J
months/N
,/,
they/P
say/V
,/,
there/E
has/V
been/V
heavy/J
selling/N
of/I
junk/N
bonds/N
by/I
some/D
of/I
the/D
market/N
's/P
traditional/J
investors/N
,/,
while/I
new/J
buyers/N
have/V
n't/R
materialized/V
to/T
replace/V
them/P
./.
###/###
Wall/N
Street/N
securities/N
firms/N
,/,
``/`
the/D
primary/J
source/N
of/I
liquidity/N
for/I
the/D
high/J
yield/N
market/N
,/,
''/'
have/V
been/V
net/J
sellers/N
of/I
junk/N
bonds/N
because/R
of/I
trading/N
losses/N
,/,
Deltec/N
said/V
in/I
a/D
recent/J
,/,
grim/J
report/N
to/T
customers/N
./.
###/###
Mutual/J
funds/N
have/V
also/R
been/V
net/J
sellers/N
of/I
junk/N
bonds/N
as/I
junk/N
's/V
relatively/R
poor/J
performance/N
and/C
negative/J
press/N
coverage/N
have/V
produced/V
``/`
above-normal/J
''/'
redemptions/N
by/I
shareholders/N
,/,
Deltec/N
said/V
./.
###/###
Investors/N
,/,
trying/V
to/T
raise/V
cash/N
,/,
have/V
sold/V
``/`
large/J
liquid/J
issues/N
''/'
such/J
as/I
RJR/N
Holdings/N
Corp./N
and/C
Kroger/N
Co./N
;/:
declines/N
in/I
these/D
benchmark/J
issues/N
have/V
contributed/V
to/T
the/D
market/N
's/P
distress/N
./.
###/###
And/C
,/,
Deltec/N
said/V
,/,
buying/N
has/V
been/V
severely/R
reduced/V
because/I
savings/N
and/C
loans/N
have/V
been/V
restricted/V
in/I
their/P
junk/N
purchases/N
by/I
recently/R
passed/V
congressional/J
legislation/N
./.
###/###
``/`
In/I
fact/N
,/,
savings/N
and/C
loans/N
were/V
sellers/N
of/I
high/J
yield/N
holdings/N
throughout/I
the/D
quarter/N
,/,
''/'
Deltec/N
said/V
./.
###/###
Ms./N
Minella/N
and/C
Ms./N
Strasser/N
say/V
they/P
are/V
managing/V
their/P
junk/N
portfolios/N
defensively/R
,/,
building/V
cash/N
and/C
selectively/R
upgrading/V
the/D
overall/J
quality/N
./.
###/###
Meanwhile/R
,/,
Prudential/N
,/,
the/D
nation/N
's/P
largest/J
insurer/N
and/C
the/D
biggest/J
investor/N
in/I
junk/N
bonds/N
,/,
has/V
seen/V
the/D
value/N
of/I
its/P
junk/N
bond/N
portfolio/N
drop/V
to/T
$/$
6.5/C
billion/C
from/I
$/$
7/C
billion/C
since/I
August/N
because/I
of/I
falling/V
junk/N
prices/N
./.
###/###
``/`
We/P
certainly/R
do/V
have/V
a/D
lack/N
of/I
liquidity/N
here/R
,/,
and/C
it/P
's/V
something/N
to/T
be/V
concerned/V
about/I
,/,
''/'
says/V
James/N
A./N
Gregoire/N
,/,
a/D
managing/N
director/N
./.
###/###
I/P
have/V
no/D
reason/N
to/T
think/V
things/N
will/M
get/V
worse/J
,/,
but/C
this/D
market/N
has/V
a/D
knack/N
for/I
surprising/V
us/P
./.
###/###
This/D
market/N
teaches/V
us/P
to/T
be/V
humble/J
./.
''/'
###/###
The/D
junk/N
market/N
's/P
``/`
yield/N
hogs/N
are/V
learning/V
a/D
real/R
painful/J
lesson/N
,/,
''/'
he/P
says/V
./.
###/###
Although/I
the/D
majority/N
of/I
junk/N
bonds/N
outstanding/J
show/N
no/D
signs/N
of/I
default/N
,/,
the/D
market/N
has/V
downgraded/V
many/J
junk/N
issues/N
as/I
if/I
they/P
were/V
in/I
trouble/N
,/,
says/V
Stuart/N
Reese/N
,/,
manager/N
of/I
Aetna/N
Life/N
&/C
Casualty/N
Insurance/N
Co./N
's/P
$/$
17/C
billion/C
investment-grade/J
public/J
bond/N
portfolio/N
./.
###/###
But/C
we/P
think/V
the/D
risks/N
are/V
there/R
for/I
things/N
getting/V
a/D
lot/N
worse/J
./.
###/###
And/C
the/D
risks/N
are/V
n't/R
appropriate/J
for/I
us/P
,/,
''/'
he/P
says/V
./.
###/###
The/D
big/J
insurer/N
,/,
unlike/I
Prudential/N
,/,
owns/V
only/R
about/R
$/$
150/C
million/C
of/I
publicly/R
sold/V
junk/N
bonds/N
./.
###/###
The/D
string/N
of/I
big/J
junk/N
bond/N
defaults/N
,/,
which/W
have/V
been/V
a/D
major/J
cause/N
of/I
the/D
market/N
's/P
problems/N
this/D
year/N
,/,
probably/R
will/M
persist/V
,/,
some/D
analysts/N
say/V
./.
###/###
``/`
If/I
anything/N
,/,
we/P
're/V
going/V
to/T
see/V
defaults/N
increase/V
because/I
credit/N
ratings/N
have/V
declined/V
,/,
''/'
says/V
Paul/N
Asquith/N
,/,
associate/J
professor/N
at/I
the/D
Massachusetts/N
Institute/N
of/I
Technology/N
's/P
Sloan/N
School/N
of/I
Management/N
./.
###/###
Mr./N
Asquith/N
,/,
whose/W
study/N
on/I
junk/N
bond/N
defaults/N
caused/V
a/D
furor/N
on/I
Wall/N
Street/N
when/W
it/P
was/V
disclosed/V
last/J
April/N
,/,
says/V
this/D
year/N
's/P
junk/N
bond/N
defaults/N
already/R
show/V
a/D
high/J
correlation/N
with/I
his/P
own/J
findings/N
./.
###/###
His/P
study/N
showed/V
that/I
junk/N
bonds/N
over/I
time/N
had/V
a/D
cumulative/J
default/N
rate/N
of/I
34/C
%/N
./.
###/###
One/C
indication/N
of/I
a/D
growing/V
number/N
of/I
junk/N
defaults/N
,/,
Mr./N
Asquith/N
says/V
,/,
is/V
that/D
about/I
half/N
of/I
the/D
$/$
3/C
billion/C
of/I
corporate/J
bonds/N
outstanding/J
that/W
have/V
been/V
lowered/V
to/T
a/D
default/N
rating/N
by/I
S&P/N
this/D
year/N
are/V
junk/N
bonds/N
sold/V
during/I
the/D
market/N
's/P
big/J
issue/N
years/N
of/I
1984/C
through/I
1986/C
./.
###/###
These/D
bonds/N
,/,
now/R
rated/V
single-D/J
,/,
include/V
junk/N
offerings/N
by/I
AP/N
Industries/N
,/,
Columbia/N
Savings/N
-LRB-/-
Colorado/N
-RRB-/-
,/,
First/N
Texas/N
Savings/N
Association/N
,/,
Gilbraltar/N
Financial/N
Corp./N
,/,
Integrated/N
Resources/N
Inc./N
,/,
Metropolitan/N
Broadcasting/N
Corp./N
,/,
Resorts/N
International/N
Inc./N
,/,
Southmark/N
Corp./N
and/C
Vyquest/N
Inc/N
./.
###/###
``/`
Obviously/R
,/,
we/P
got/V
a/D
lot/N
more/J
smoke/N
than/I
fire/N
from/I
the/D
people/N
who/W
told/V
us/P
the/D
market/N
was/V
n't/R
so/R
risky/J
,/,
''/'
says/V
Bradford/N
Cornell/N
,/,
professor/N
of/I
finance/N
at/I
University/N
of/I
California/N
's/P
Anderson/N
Graduate/N
School/N
of/I
Management/N
in/I
Los/N
Angeles/N
./.
###/###
Mr./N
Cornell/N
has/V
just/R
completed/V
a/D
study/N
that/W
finds/V
that/I
the/D
risks/N
and/C
returns/N
of/I
junk/N
bonds/N
are/V
less/J
than/I
on/I
common/J
stocks/N
but/C
more/J
than/I
on/I
investment-grade/J
bonds/N
./.
###/###
Mr./N
Cornell/N
says/V
:/:
``/`
The/D
junk/N
market/N
is/V
no/D
bonanza/N
as/I
Drexel/N
claimed/V
,/,
but/C
it/P
also/R
is/V
n't/R
a/D
disaster/N
as/I
the/D
doomsayers/N
say/V
./.
''/'
###/###
Despite/I
the/D
junk/N
market/N
's/P
problems/N
,/,
Drexel/N
continues/V
to/T
enjoy/V
a/D
loyalty/N
among/I
junk/N
bond/N
investors/N
that/I
its/P
Wall/N
Street/N
rivals/N
have/V
n't/R
found/V
./.
###/###
During/I
the/D
past/J
three/C
weeks/N
,/,
for/I
example/N
,/,
Drexel/N
has/V
sold/V
$/$
1.3/C
billion/C
of/I
new/J
junk/N
bonds/N
for/I
Turner/N
Broadcasting/N
Co./N
,/,
Uniroyal/N
Chemical/N
,/,
Continental/N
Air/N
and/C
Duff/N
&/C
Phelps/N
./.
###/###
Still/R
,/,
the/D
list/N
of/I
troubled/J
Drexel/N
bond/N
offerings/N
dwarfs/V
that/D
of/I
any/D
firm/N
on/I
Wall/N
Street/N
,/,
as/I
does/V
its/P
successful/J
offerings/N
./.
###/###
Troubled/J
Drexel-underwritten/J
issues/N
include/V
Resorts/N
International/N
,/,
Braniff/N
,/,
Integrated/N
Resources/N
,/,
SCI/N
TV/N
,/,
Gillette/N
Holdings/N
,/,
Western/N
Electric/N
and/C
Southmark/N
./.
###/###
``/`
Quality/J
junk/N
bonds/N
will/M
continue/V
to/T
trade/V
well/R
,/,
''/'
says/V
Michael/N
Holland/N
,/,
chairman/N
of/I
Salomon/N
Brothers/N
Asset/N
Management/N
Inc/N
./.
###/###
``/`
But/C
the/D
deals/N
that/W
never/R
should/M
have/V
been/V
brought/V
have/V
now/R
become/V
nuclear/J
waste/N
./.
###/###
As/I
Helen/N
Boehm/N
,/,
who/W
owns/V
an/D
art/N
porcelain/N
company/N
,/,
sipped/V
her/P
luncheon/N
cocktail/N
,/,
she/P
reeled/V
off/R
the/D
names/N
of/I
a/D
few/J
pals/N
--/:
Prince/N
Charles/N
,/,
Princess/N
Diana/N
,/,
Sarah/N
Ferguson/N
,/,
John/N
Kluge/N
,/,
Milton/N
Petrie/N
./.
###/###
Then/R
,/,
flashing/V
a/D
diamond/N
ring/N
as/R
big/J
as/I
the/D
Ritz/N
-LRB-/-
``/`
my/J
day/N
diamond/N
,/,
darling/N
''/'
-RRB-/-
,/,
she/P
told/V
her/P
two/C
companions/N
that/I
she/P
is/V
on/I
the/D
``/`
board/N
''/'
of/I
the/D
Vatican/N
Museum/N
in/I
Rome/N
./.
###/###
As/I
it/P
turns/V
out/R
,/,
the/D
board/N
has/V
a/D
lot/N
of/I
important/J
members/N
,/,
including/V
Winton/N
Blount/N
-LRB-/-
former/J
postmaster/N
general/J
of/I
the/D
U.S./N
-RRB-/-
,/,
Mrs./N
Henry/N
Gaisman/N
-LRB-/-
widow/N
of/I
the/D
inventor/N
of/I
auto-strop/J
razor/N
-RRB-/-
and/C
Vincent/N
Murphy/N
-LRB-/-
an/D
investment/N
banker/N
at/I
Merrill/N
Lynch/N
&/C
Co/N
./.
-RRB-/-
###/###
But/C
Mrs./N
Boehm/N
did/V
n't/R
mention/V
any/D
of/I
them/P
./.
###/###
``/`
Helen/N
Boehm/N
has/V
a/D
way/N
with/I
names/N
,/,
''/'
says/V
James/N
Revson/N
,/,
a/D
gossip/N
columnist/N
for/I
Newsday/N
-LRB-/-
and/C
son/N
of/I
Joseph/N
Revson/N
,/,
a/D
founder/N
of/I
Revlon/N
-RRB-/-
./.
###/###
Like/I
which/W
are/V
droppable/J
and/C
which/W
are/V
not/R
./.
###/###
With/I
the/D
fall/N
social/J
season/N
well/R
under/I
way/N
,/,
name-droppers/N
are/V
out/R
in/I
force/N
,/,
trying/V
to/T
impress/V
their/P
betters/N
and/C
sometimes/R
put/V
down/R
their/P
lessers/N
./.
###/###
But/C
the/D
truth/N
is/V
that/D
almost/R
everyone/N
,/,
from/I
real-estate/N
agents/N
to/T
city/N
fathers/N
,/,
name-drops/V
;/:
and/C
a/D
surprising/J
number/N
of/I
people/N
have/V
an/D
ancient/J
uncle/N
who/W
claims/V
he/P
lived/V
next/J
door/N
to/T
the/D
cartoonist/N
who/W
did/V
the/D
Katzenjammer/N
Kids/N
./.
###/###
In/I
case/N
you/P
have/V
forgotten/V
,/,
his/P
name/N
was/V
Rudolph/N
Dirks/N
./.
-RRB-/-
###/###
``/`
Name-dropping/N
is/V
pervasive/J
and/C
getting/V
more/R
so/R
as/I
society/N
becomes/V
more/R
complex/J
and/C
alienating/J
,/,
''/'
says/V
Herbert/N
Freudenberger/N
,/,
a/D
New/N
York/N
psychoanalyst/N
,/,
with/I
a/D
high-powered/J
clientele/N
./.
###/###
It/P
can/M
be/V
an/D
avenue/N
of/I
entrance/N
to/T
a/D
certain/J
sector/N
of/I
society/N
./.
###/###
It/P
provides/V
some/D
people/N
a/D
needed/J
sense/N
of/I
affiliation/N
and/C
can/M
help/V
open/V
up/R
a/D
conversation/N
with/I
someone/N
you/P
do/V
n't/R
know/V
./.
''/'
###/###
Like/I
the/D
Long/N
Island/N
matron/N
in/I
the/D
theater/N
district/N
the/D
other/J
day/N
who/W
swore/V
to/T
a/D
stranger/N
that/I
she/P
once/R
met/V
Liza/N
Minnelli/N
./.
###/###
I/P
was/V
having/V
a/D
drink/N
in/I
Sardi/N
's/P
,/,
when/W
all/R
of/I
a/D
sudden/J
I/P
saw/V
a/D
woman/N
's/P
backside/N
coming/V
up/R
the/D
steps/N
on/I
the/D
second/J
floor/N
and/C
she/P
was/V
wearing/V
sequined/J
slacks/N
./.
###/###
I/P
knew/V
it/P
was/V
someone/N
important/J
,/,
so/I
I/P
followed/V
her/P
into/I
the/D
ladies/N
room/N
and/C
sure/R
enough/R
,/,
it/P
was/V
Liza/N
./.
###/###
So/I
I/P
said/V
,/,
`/`
Hello/U
./.
'/'
###/###
And/C
she/P
said/V
,/,
`/`
Hello/U
./.
'/'
###/###
Can/M
you/P
imagine/V
?/.
###/###
Liza/N
said/V
hello/U
to/T
me/P
./.
''/'
###/###
Some/D
people/N
must/M
drop/V
names/N
--/:
call/V
it/P
an/D
irresistible/J
impulse/N
./.
###/###
``/`
They/P
ca/M
n't/R
help/V
talking/V
about/I
the/D
big/J
important/J
people/N
they/P
know/V
,/,
even/R
if/I
they/P
do/V
n't/R
really/R
know/V
them/P
,/,
''/'
says/V
Dr./N
Freudenberger/N
./.
###/###
Beauregard/N
Houston-Montgomery/N
,/,
a/D
New/N
York/N
writer/N
who/W
changed/V
his/P
name/N
from/I
William/N
Stretch/N
in/I
1980/C
,/,
is/V
an/D
inveterate/J
name-dropper/N
./.
###/###
``/`
I/P
do/V
it/P
innately/R
and/C
pathologically/R
,/,
and/C
while/I
it/P
may/M
occasionally/R
get/V
me/P
into/I
trouble/N
,/,
it/P
's/V
also/R
gotten/V
me/P
access/N
to/T
parties/N
and/C
society/N
,/,
''/'
he/P
says/V
./.
###/###
Name-dropping/N
recently/R
helped/V
Mr./N
Houston-Montgomery/N
crash/V
a/D
party/N
Fame/N
magazine/N
threw/V
for/I
100/C
of/I
the/D
2,809/C
people/N
mentioned/V
in/I
the/D
diaries/N
of/I
the/D
late/J
Andy/N
Warhol/N
./.
###/###
``/`
I/P
guess/V
I/P
might/M
have/V
asked/V
Beauregard/N
to/T
leave/V
,/,
but/C
he/P
drops/V
so/R
many/J
good/J
names/N
,/,
we/P
decided/V
to/T
let/V
him/P
stay/V
,/,
''/'
says/V
Steven/N
Greenberg/N
,/,
publisher/N
of/I
Fame/N
./.
###/###
After/I
all/D
,/,
Warhol/N
was/V
the/D
ultimate/J
namedropper/N
,/,
dropping/V
five/C
a/D
day/N
in/I
his/P
diaries/N
./.
###/###
And/C
Beauregard/N
was/V
mentioned/V
twice/R
--/:
although/I
very/J
briefly/N
and/C
in/I
passing/V
./.
''/'
###/###
Mr./N
Houston-Montgomery/N
says/V
that/I
at/I
the/D
party/N
he/P
waved/V
to/T
Malcolm/N
Forbes/N
,/,
publisher/N
of/I
Forbes/N
magazine/N
-LRB-/-
``/`
We've/N
been/V
in/I
the/D
columns/N
together/R
''/'
-RRB-/-
,/,
Mary/N
Boone/N
,/,
a/D
New/N
York/N
art/N
dealer/N
-LRB-/-
``/`
I/P
``/`
I/P
think/V
she/P
knows/V
me/P
,/,
but/C
I/P
'm/V
not/R
sure/J
``/`
-RRB-/-
and/C
Bridget/N
Fonda/N
,/,
the/D
actress/N
-LRB-/-
``/`
She/N
knows/V
me/P
,/,
but/C
we/P
're/V
not/R
really/R
the/D
best/J
of/I
friends/N
''/'
-RRB-/-
./.
###/###
Mr./N
Revson/N
,/,
the/D
gossip/N
columnist/N
,/,
says/V
there/E
are/V
people/N
who/W
actually/R
plan/V
whose/W
names/N
they/P
are/V
going/V
to/T
drop/V
before/I
attending/V
a/D
party/N
./.
###/###
These/D
droppers/N
do/V
n't/R
flaunt/V
only/R
their/P
friendships/N
with/I
the/D
Trumps/N
,/,
Brooke/N
Astor/N
or/C
Georgette/N
Mosbacher/N
./.
###/###
``/`
They/P
even/R
drop/V
semi-obscure/J
names/N
like/I
Wolfgang/N
Flottl/N
,/,
whom/W
everybody/N
these/D
days/N
apparently/R
has/V
heard/V
of/I
but/C
no/D
one/N
really/R
knows/V
,/,
''/'
says/V
Mr./N
Revson/N
./.
###/###
It/P
's/V
the/D
one-upsmanship/N
of/I
name-dropping/N
that/I
counts/V
./.
''/'
###/###
But/C
name-dropping/N
has/V
other/J
benefits/N
,/,
often/R
civic/J
./.
###/###
In/I
the/D
name/N
of/I
civic/J
pride/N
and/C
from/I
the/D
desire/N
to/T
nullify/V
a/D
negative/J
image/N
,/,
some/D
city/N
promoters/N
seek/V
to/T
link/V
their/P
municipality/N
with/I
the/D
most/R
recognizable/J
names/N
the/D
city/N
has/V
to/T
offer/V
./.
###/###
Take/V
Cleveland/N
./.
###/###
It/P
has/V
gotten/V
a/D
bad/J
rep/N
because/I
its/P
once/R
heavily/R
polluted/J
Cuyahoga/N
River/N
caught/V
fire/N
,/,
because/I
former/J
Mayor/N
Ralph/N
Perk/N
set/V
his/P
hair/N
on/I
fire/N
with/I
an/D
acetylene/N
torch/N
and/C
because/I
its/P
proposed/J
Rock'n/N
'/'
Roll/N
Hall/N
of/I
Fame/N
was/V
recently/R
refused/V
an/D
urban-development/N
grant/N
./.
###/###
Some/D
people/N
call/V
it/P
``/`
The/N
Mistake/N
on/I
the/N
Lake/N
''/'
--/:
Lake/N
Erie/N
,/,
that/W
is/V
./.
###/###
``/`
It/P
helps/V
to/T
point/V
out/R
how/W
many/J
important/J
people/N
came/V
through/I
Cleveland/N
on/I
their/P
way/N
to/T
the/D
top/N
,/,
''/'
says/V
George/N
Miller/N
,/,
executive/J
director/N
of/I
the/D
New/N
Cleveland/N
Campaign/N
,/,
a/D
nonprofit/J
organization/N
devoted/V
to/T
citing/V
the/D
city/N
's/P
strengths/N
./.
###/###
Mr./N
Miller/N
notes/V
that/I
actor/N
Paul/N
Newman/N
's/P
family/N
owned/V
a/D
sporting-goods/N
store/N
in/I
Cleveland/N
,/,
that/I
the/D
late/J
actress/N
Margaret/N
Hamilton/N
,/,
who/W
played/V
the/D
bad/J
witch/N
in/I
``/`
The/D
Wizard/N
Of/I
Oz/N
,/,
''/'
once/R
ran/V
a/D
nursery/N
school/N
in/I
Cleveland/N
and/C
that/I
comedian/N
Bob/N
Hope/N
's/P
father/N
,/,
a/D
stonemason/N
,/,
once/R
worked/V
on/I
a/D
church/N
next/J
to/T
Severence/N
Hall/N
,/,
Cleveland/N
's/P
main/J
concert/N
hall/N
./.
###/###
``/`
Power/N
names/N
like/I
that/D
do/V
n't/R
hurt/V
the/D
city/N
's/P
reputation/N
,/,
''/'
Mr./N
Miller/N
says/V
./.
###/###
In/I
Hollywood/N
,/,
an/D
average/J
family/N
can/M
gain/V
cachet/N
from/I
moving/V
into/I
a/D
home/N
vacated/V
by/I
the/D
famous/J
or/C
near/R
famous/J
./.
###/###
``/`
Why/W
we/P
even/R
just/R
sold/V
a/D
three-bedroom/J
house/N
in/I
Van/N
Nuys/N
and/C
were/V
able/J
to/T
keep/V
the/D
price/N
firm/J
in/I
a/D
weak/J
real-estate/N
market/N
by/I
noting/V
that/I
the/D
original/J
Lone/N
Ranger/N
lived/V
there/E
,/,
''/'
says/V
David/N
Rambo/N
,/,
a/D
sales/N
associate/N
with/I
Jon/N
Douglas/N
Co./N
,/,
a/D
Los/N
Angeles/N
real-estate/N
agency/N
./.
###/###
Most/J
people/N
ca/M
n't/R
even/R
remember/V
his/P
name/N
./.
''/'
###/###
It/P
is/V
John/N
Hart/N
./.
-RRB-/-
###/###
Mr./N
Rambo/N
says/V
that/I
a/D
3.2-acre/J
property/N
overlooking/V
the/D
San/N
Fernando/N
Valley/N
is/V
priced/V
at/I
$/$
4/C
million/C
because/I
the/D
late/J
actor/N
Erroll/N
Flynn/N
once/R
lived/V
there/R
./.
###/###
``/`
If/I
Flynn/N
had/V
n't/R
lived/V
there/E
,/,
the/D
property/N
might/M
have/V
been/V
priced/V
$/$
1/C
million/C
lower/J
,/,
''/'
says/V
Mr./N
Rambo/N
,/,
noting/V
that/I
Flynn/N
's/P
house/N
has/V
been/V
bulldozed/V
,/,
and/C
only/R
the/D
swimming/V
pool/N
remains/V
./.
###/###
Press/N
agents/N
and/C
public-relations/N
practitioners/N
are/V
notorious/J
name-droppers/N
./.
###/###
And/C
some/D
even/R
do/V
it/P
with/I
malice/N
aforethought/J
./.
###/###
Len/N
Kessler/N
,/,
a/D
financial/J
publicist/N
in/I
New/N
York/N
,/,
sometimes/R
uses/V
it/P
to/T
get/V
the/D
attention/N
of/I
journalists/N
who/W
try/V
to/T
avoid/V
him/P
./.
###/###
He/P
says/V
that/I
when/W
Dan/N
Dorfman/N
,/,
a/D
financial/J
columnist/N
with/I
USA/N
Today/N
,/,
has/V
n't/R
returned/V
his/P
phone/N
calls/V
,/,
he/P
leaves/V
messages/N
with/I
Mr./N
Dorfman/N
's/P
office/N
saying/V
that/I
he/P
has/V
an/D
important/J
story/N
on/I
Donald/N
Trump/N
,/,
Meshulam/N
Riklis/N
or/C
Marvin/N
Davis/N
./.
###/###
He/P
admits/V
he/P
has/V
no/D
story/N
on/I
any/D
of/I
them/P
on/I
these/D
occasions/N
./.
###/###
``/`
But/C
it/P
does/V
get/V
him/P
to/T
return/V
my/P
calls/N
,/,
and/C
it/P
makes/V
me/P
feel/V
better/R
for/I
the/D
times/N
he/P
's/V
given/V
me/P
the/D
brushoff/N
,/,
''/'
Mr./N
Kessler/N
says/V
./.
###/###
There/E
are/V
,/,
of/I
course/N
,/,
obvious/J
dangers/N
to/T
blatant/J
,/,
unsubstantiated/J
name-dropping/N
./.
###/###
Jeffry/N
Thal/N
,/,
a/D
publicity/N
agent/N
for/I
the/D
Lantz/N
Office/N
in/I
Los/N
Angeles/N
,/,
warns/V
that/I
dropping/V
the/D
wrong/J
name/N
labels/V
the/D
dropper/N
as/I
a/D
fake/N
and/C
a/D
fraud/N
./.
###/###
``/`
Get/V
caught/V
and/C
you/P
're/V
dead/J
in/I
the/D
water/N
,/,
''/'
says/V
Mr./N
Thal/N
./.
###/###
Mr./N
Thal/N
says/V
that/I
Elizabeth/N
Taylor/N
,/,
a/D
client/N
,/,
``/`
hates/V
being/V
called/V
`/`
Liz/N
./.
'/'
###/###
If/I
directors/N
or/C
producers/N
phone/V
me/P
and/C
say/V
they/P
know/V
`/`
Liz/N
,/,
'/'
I/P
know/V
they/P
've/V
never/R
met/V
her/P
./.
###/###
She/P
prefers/V
`/`
Elizabeth/N
./.
'/'
''/'
###/###
In/I
New/N
York/N
society/N
,/,
Pat/N
Buckley/N
,/,
the/D
very/R
social/J
wife/N
of/I
author/N
William/N
Buckley/N
,/,
has/V
the/D
nicknames/N
``/`
Mrs./N
Buckles/N
''/'
and/C
``/`
Patsy/N
./.
''/'
###/###
And/C
her/P
husband/N
sometimes/R
calls/V
her/P
``/`
Ducky/N
./.
''/'
###/###
``/`
But/C
call/V
her/P
`/`
Patty/N
,/,
'/'
and/C
it/P
's/V
a/D
sure/J
giveaway/N
you/P
're/V
not/R
in/I
her/P
circle/N
,/,
because/I
she/P
does/V
n't/R
use/V
that/D
name/N
,/,
''/'
says/V
Joan/N
Kron/N
,/,
editor-in-chief/N
of/I
Avenue/N
magazine/N
,/,
a/D
monthly/J
publication/N
sent/V
to/T
all/P
the/D
right/J
names/N
./.
###/###
John/N
Spencer/N
Churchill/N
,/,
a/D
nephew/N
of/I
the/D
late/J
Sir/N
Winston/N
Churchill/N
,/,
former/J
prime/J
minister/N
of/I
Great/N
Britain/N
,/,
is/V
n't/R
that/R
impressed/J
with/I
most/J
name-droppers/N
he/P
meets/V
./.
###/###
That/D
's/V
because/I
they/P
only/R
drop/V
``/`
mere/J
names/N
,/,
''/'
says/V
Mr./N
Churchill/N
./.
###/###
Currently/R
writing/V
his/P
memoirs/N
,/,
Mr./N
Churchill/N
,/,
an/D
artist/N
,/,
tells/V
how/W
tycoons/N
such/J
as/I
the/D
late/J
Jean/N
Paul/N
Getty/N
,/,
the/D
oil/N
billionnaire/N
,/,
were/V
,/,
in/I
fact/N
,/,
known/V
only/R
by/I
one/C
initial/N
,/,
their/P
last/J
./.
###/###
When/W
you/P
're/V
at/I
the/D
club/N
,/,
you/P
ask/V
whether/I
they/P
've/V
spoken/V
to/T
`/`
G/N
./.
'/'
###/###
Now/R
they/P
know/V
who/W
you/P
mean/V
and/C
you/P
know/V
who/W
you/P
mean/V
./.
###/###
But/C
no/D
one/N
else/R
does/V
./.
###/###
Now/R
that/D
's/V
name-dropping/N
,/,
if/I
you/P
know/V
what/W
I/P
mean/V
./.
###/###
Part/N
of/I
a/D
Series/N
-RCB-/-
###/###
SMYRNA/N
,/,
Ga./N
--/:
The/D
auto-dealer/N
strip/N
in/I
this/D
booming/J
suburb/N
runs/V
nearly/R
five/C
miles/N
along/I
Cobb/N
Parkway/N
,/,
stretching/V
from/I
the/D
Perimeter/N
highway/N
that/W
circles/V
Atlanta/N
to/T
the/D
``/`
Big/N
Chicken/N
,/,
''/'
a/D
pullet-roofed/J
fast-food/N
restaurant/N
and/C
local/J
landmark/N
./.
###/###
Twenty/C
years/N
ago/R
,/,
in/I
the/D
infancy/N
of/I
suburban/J
sprawl/N
,/,
just/R
a/D
handful/N
of/I
dealerships/N
were/V
here/R
./.
###/###
Now/R
there/E
are/V
23/C
./.
###/###
Alongside/I
such/J
long-familiar/J
names/N
as/I
Chevrolet/N
,/,
Ford/N
and/C
Dodge/N
are/V
nameplates/N
that/W
did/V
n't/R
exist/V
until/I
three/C
years/N
ago/R
:/:
Acura/N
,/,
Sterling/N
,/,
Hyundai/N
./.
###/###
Under/I
construction/N
is/V
the/D
strip/N
's/P
24th/J
showroom/N
,/,
the/D
future/J
home/N
of/I
Lexus/N
,/,
a/D
luxury/N
marque/N
launched/V
by/I
Toyota/N
Motor/N
Corp./N
just/R
two/C
months/N
ago/R
./.
###/###
The/D
1980s/C
have/V
spawned/V
an/D
explosion/N
of/I
consumer/N
choice/N
in/I
America/N
,/,
in/I
everything/N
from/I
phone/N
companies/N
to/T
colas/N
./.
###/###
And/C
especially/R
,/,
as/I
the/D
Cobb/N
Parkway/N
strip/N
attests/V
,/,
in/I
cars/N
./.
###/###
Americans/N
now/R
can/M
choose/V
among/I
572/C
different/J
models/N
of/I
cars/N
,/,
vans/N
and/C
trucks/N
,/,
up/R
from/I
just/R
408/C
when/W
the/D
decade/N
began/V
,/,
according/V
to/T
Automotive/N
News/N
,/,
a/D
trade/N
publication/N
./.
###/###
For/I
car/N
marketers/N
,/,
it/P
has/V
become/V
a/D
much/R
tougher/J
battle/N
to/T
keep/V
loyal/J
customers/N
from/I
defecting/V
to/T
one/C
of/I
the/D
new/J
makes/N
on/I
the/D
block/N
./.
###/###
For/I
American/J
car/N
buyers/N
,/,
the/D
proliferation/N
of/I
choice/N
is/V
both/D
liberating/J
and/C
confusing/J
./.
###/###
Malcolm/N
MacDougall/N
,/,
vice/N
chairman/N
of/I
the/D
Jordan/N
,/,
McGrath/N
,/,
Case/N
&/C
Taylor/N
advertising/N
agency/N
in/I
New/N
York/N
,/,
calls/V
the/D
proliferation/N
``/`
nameplate/N
mania/N
./.
''/'
###/###
He/P
says/V
the/D
number/N
of/I
automobile/N
choices/N
is/V
causing/V
stress/N
among/I
consumers/N
today/N
,/,
and/C
that/I
people/N
will/M
simply/R
ignore/V
new/J
models/N
that/W
lack/V
a/D
well-defined/J
image/N
./.
###/###
``/`
The/D
winners/N
,/,
''/'
he/P
predicts/V
,/,
``/`
will/M
be/V
brands/N
from/I
car/N
makers/N
that/W
have/V
traditionally/R
been/V
associated/V
with/I
quality/N
and/C
value/N
./.
''/'
###/###
He/P
says/V
it/P
's/V
important/J
for/I
a/D
new/J
make/N
to/T
be/V
as/R
distinctive/J
as/I
possible/J
while/I
still/R
retaining/V
links/N
to/T
the/D
parent/J
company/N
's/P
quality/J
image/N
./.
###/###
He/P
applauds/V
Toyota/N
and/C
Nissan/N
Motor/N
Co./N
for/I
creating/V
separate/J
divisions/N
for/I
their/P
new/J
luxury/N
models/N
,/,
rather/R
than/I
simply/R
adding/V
more/J
nameplates/N
to/T
their/P
standard/J
car/N
lines/N
./.
###/###
Some/D
auto/N
executives/N
believe/V
the/D
benefits/N
of/I
more/J
choice/N
outweigh/V
the/D
drawbacks/N
./.
###/###
``/`
There/E
's/P
more/J
noise/N
out/R
there/R
,/,
and/C
the/D
consumer/N
may/M
have/V
to/T
work/V
harder/R
to/T
cut/V
through/I
it/P
,/,
''/'
says/V
Vincent/N
P./N
Barabba/N
,/,
executive/J
director/N
of/I
market/N
research/N
and/C
planning/N
at/I
General/N
Motors/N
Corp/N
./.
###/###
``/`
But/C
the/D
reward/N
is/V
that/I
there/E
's/P
less/J
need/N
to/T
make/V
tradeoffs/N
''/'
in/I
choosing/V
one/P
's/P
wheels/N
./.
###/###
Jeanene/N
Page/N
,/,
of/I
North/N
Salt/N
Lake/N
City/N
,/,
Utah/N
,/,
likes/V
the/D
broader/J
selection/N
./.
###/###
She/P
wants/V
something/N
big/J
,/,
and/C
already/R
has/V
looked/V
at/I
the/D
Chrysler/N
New/N
Yorker/N
and/C
Lincoln/N
Town/N
Car/N
./.
###/###
Now/R
,/,
the/D
55-year-old/J
car/N
shopper/N
is/V
zeroing/V
in/R
on/I
a/D
full-sized/J
van/N
,/,
figuring/V
that/I
it/P
's/V
just/R
the/D
thing/N
to/T
haul/V
nine/C
grandchildren/N
and/C
pull/V
a/D
boat/N
at/I
the/D
same/J
time/N
./.
###/###
``/`
That/D
seems/V
to/T
be/V
what/W
all/D
my/P
friends/N
are/V
using/V
to/T
take/V
the/D
grandkids/N
to/T
the/D
lake/N
,/,
''/'
she/P
says/V
./.
###/###
Market/N
segmentation/N
in/I
cars/N
is/V
n't/R
new/J
,/,
but/C
it/P
's/V
far/R
more/R
extensive/J
than/I
when/W
Alfred/N
P./N
Sloan/N
Jr./N
conceived/V
the/D
idea/N
50/C
years/N
ago/R
./.
###/###
The/D
legendary/J
GM/N
chairman/N
declared/V
that/D
his/P
company/N
would/M
make/V
``/`
a/D
car/N
for/I
every/D
purse/N
and/C
purpose/N
./.
''/'
###/###
Now/R
there/E
are/V
many/J
cars/N
for/I
every/D
purse/N
and/C
purpose/N
./.
###/###
Just/R
four/C
years/N
ago/R
,/,
GM/N
planners/N
divided/V
the/D
combined/J
car/N
and/C
truck/N
market/N
into/I
seven/C
segments/N
./.
###/###
Today/N
,/,
they/P
identify/V
19/C
distinct/J
segments/N
for/I
cars/N
,/,
and/C
another/D
11/C
for/I
trucks/N
and/C
vans/N
./.
###/###
The/D
number/N
of/I
makes/N
has/V
mushroomed/V
because/I
the/D
U.S./N
is/V
the/D
world/N
's/P
biggest/J
and/C
richest/J
market/N
for/I
automobiles/N
;/:
virtually/R
every/D
auto/N
maker/N
wants/V
to/T
sell/V
here/R
./.
###/###
For/I
every/D
brand/N
like/I
Renault/N
or/C
Fiat/N
that/W
has/V
been/V
squeezed/V
out/R
,/,
others/N
such/J
as/I
Isuzu/N
,/,
Daihatsu/N
and/C
Mitsubishi/N
have/V
come/V
in/R
./.
###/###
Detroit/N
tries/V
to/T
counter/V
the/D
foreign/J
invasion/N
with/I
new/J
brands/N
of/I
its/P
own/J
./.
###/###
GM/N
launched/V
the/D
Geo/N
marque/N
this/D
year/N
to/T
sell/V
cars/N
made/V
in/I
partnership/N
with/I
foreign/J
auto/N
makers/N
,/,
and/C
next/J
year/N
GM/N
's/P
long-awaited/J
Saturn/N
cars/N
will/M
make/V
their/P
debut/N
./.
###/###
Ford/N
Motor/N
Co./N
created/V
the/D
Merkur/N
nameplate/N
in/I
1985/C
to/T
sell/V
its/P
German-made/J
touring/N
sedans/N
in/I
the/D
U.S/N
./.
###/###
But/C
slow/J
sales/N
forced/V
Ford/N
to/T
kill/V
the/D
brand/N
just/R
last/J
week/N
./.
###/###
When/W
consumers/N
have/V
so/R
many/J
choices/N
,/,
brand/N
loyalty/N
is/V
much/R
harder/J
to/T
maintain/V
./.
###/###
The/D
Wall/N
Street/N
Journal/N
's/P
``/`
American/J
Way/N
of/I
Buying/V
''/'
survey/N
found/V
that/I
53/C
%/N
of/I
today/N
's/P
car/N
buyers/N
tend/V
to/T
switch/V
brands/N
./.
###/###
For/I
the/D
survey/N
,/,
Peter/N
D./N
Hart/N
Research/N
Associates/N
and/C
the/D
Roper/N
Organization/N
each/D
asked/V
about/R
2,000/C
U.S./N
consumers/N
about/I
their/P
buying/N
habits/N
./.
###/###
Which/W
cars/N
do/V
Americans/N
favor/V
most/R
these/D
days/N
?/.
###/###
It/P
's/V
hard/J
to/T
generalize/V
,/,
but/C
age/N
seems/V
to/T
be/V
the/D
best/J
predictor/N
./.
###/###
Adults/N
under/I
age/N
30/C
like/V
sports/N
cars/N
,/,
luxury/N
cars/N
,/,
convertibles/N
and/C
imports/N
far/R
more/R
than/I
their/P
elders/N
do/V
./.
###/###
Three/C
of/I
every/D
10/C
buyers/N
under/I
30/C
would/M
prefer/V
to/T
buy/V
a/D
sports/N
car/N
,/,
compared/V
with/I
just/R
16/C
%/N
of/I
adults/N
30/C
and/C
over/R
,/,
according/V
to/T
the/D
Journal/N
survey/N
./.
###/###
Young/J
consumers/N
prefer/V
luxury/N
cars/N
by/I
a/D
37/C
%/N
to/T
28/C
%/N
margin/N
--/:
even/R
though/I
older/J
buyers/N
,/,
because/I
of/I
their/P
incomes/N
,/,
are/V
more/R
likely/J
to/T
actually/R
purchase/V
a/D
luxury/N
car/N
./.
###/###
Perhaps/R
most/R
striking/J
,/,
35/C
%/N
of/I
households/N
headed/V
by/I
people/N
aged/V
18/C
to/T
44/C
have/V
at/I
least/J
one/C
foreign/J
car/N
./.
###/###
That/D
's/V
true/J
of/I
only/R
14/C
%/N
of/I
households/N
headed/V
by/I
someone/N
60/C
or/C
older/J
./.
###/###
Generally/R
,/,
imports/N
appeal/V
most/R
to/T
Americans/N
who/W
live/V
in/I
the/D
West/N
and/C
are/V
well-educated/J
,/,
affluent/J
and/C
,/,
especially/R
,/,
young/J
./.
###/###
``/`
For/I
many/J
baby/N
boomers/N
,/,
buying/V
a/D
domestic/J
car/N
is/V
a/D
totally/R
foreign/J
experience/N
,/,
''/'
says/V
Christopher/N
Cedergren/N
,/,
auto-market/N
analyst/N
with/I
J.D./N
Power/N
&/C
Co./N
of/I
Agoura/N
Hills/N
,/,
Calif/N
./.
###/###
Such/J
preferences/N
persist/V
even/R
though/I
many/J
Americans/N
believe/V
differences/N
between/I
imported/J
and/C
domestic/J
cars/N
are/V
diminishing/V
./.
###/###
Only/R
58/C
%/N
of/I
Americans/N
now/R
believe/V
that/I
foreign/J
cars/N
get/V
better/J
gas/N
mileage/N
than/I
domestic/J
models/N
,/,
the/D
Journal/N
survey/N
found/V
,/,
down/R
from/I
68/C
%/N
in/I
1987/C
./.
###/###
Some/D
46/C
%/N
give/V
foreign/J
cars/N
higher/J
quality/N
ratings/N
,/,
down/R
from/I
50/C
%/N
two/C
years/N
ago/R
./.
###/###
On/I
the/D
other/J
hand/N
,/,
only/R
42/C
%/N
say/V
foreign/J
cars/N
are/V
less/R
comfortable/J
than/I
U.S./N
models/N
,/,
down/R
from/I
55/C
%/N
in/I
1987/C
./.
###/###
People/N
in/I
the/D
automotive/J
business/N
disagree/V
over/I
how/W
susceptible/J
younger/J
Americans/N
are/V
to/T
brand/N
switching/N
./.
###/###
``/`
Once/R
buying/N
habits/N
are/V
formed/V
,/,
they/P
're/V
very/R
hard/J
to/T
break/V
,/,
''/'
declares/V
Thomas/N
Mignanelli/N
,/,
executive/J
vice/N
president/N
for/I
Nissan/N
's/P
U.S./N
sales/N
operations/N
./.
###/###
But/C
out/R
on/I
Cobb/N
Parkway/N
,/,
Ted/N
Negas/N
sees/V
it/P
differently/R
./.
###/###
``/`
The/D
competition/N
is/V
so/R
intense/J
that/I
an/D
owner/N
's/P
loyalty/N
to/T
a/D
dealership/N
or/C
a/D
car/N
is/V
virtually/R
nonexistent/J
,/,
''/'
says/V
Mr./N
Negas/N
,/,
vice/N
president/N
of/I
Ed/N
Voyles/N
Oldsmobile/N
,/,
one/C
of/I
the/D
first/J
dealerships/N
to/T
locate/V
on/I
the/D
strip/N
./.
###/###
Thus/R
the/D
very/J
fickleness/N
of/I
baby/N
boomers/N
may/M
make/V
it/P
possible/J
to/T
win/V
them/P
back/R
,/,
just/R
as/I
it/P
was/V
possible/J
to/T
lose/V
them/P
./.
###/###
The/D
battle/N
for/I
customer/N
loyalty/N
is/V
evident/J
along/I
the/D
Cobb/N
Parkway/N
strip/N
./.
###/###
Ed/N
Voyles/N
Olds/N
recently/R
established/V
a/D
special/J
section/N
in/I
the/D
service/N
department/N
for/I
owners/N
whose/W
cars/N
are/V
less/J
than/I
a/D
year/N
old/J
,/,
so/I
they/P
get/V
quicker/J
service/N
./.
###/###
Just/R
down/I
the/D
street/N
,/,
Chris/N
Volvo/N
invites/V
serious/J
shoppers/N
to/T
test-drive/V
a/D
new/J
Volvo/N
to/T
any/D
other/J
dealership/N
along/I
the/D
strip/N
,/,
and/C
compare/V
the/D
cars/N
side-by-side/R
./.
###/###
Manufacturers/N
,/,
too/R
,/,
are/V
stretching/V
further/R
to/T
lure/V
buyers/N
./.
###/###
GM/N
's/P
Cadillac/N
division/N
,/,
ignoring/V
Detroit/N
's/P
long-held/J
maxim/N
that/D
safety/N
does/V
n't/R
sell/V
,/,
is/V
airing/V
television/N
commercials/N
touting/V
its/P
cars/N
'/P
safety/N
features/N
./.
###/###
Cadillac/N
may/M
be/V
on/I
to/T
something/N
./.
###/###
Some/R
60/C
%/N
of/I
the/D
survey/N
respondents/N
said/V
they/P
would/M
buy/V
anti-lock/J
brakes/N
even/R
if/I
they/P
carry/V
a/D
medium/J
or/C
high/J
price/N
tag/N
./.
###/###
More/J
than/I
50/C
%/N
felt/V
the/D
same/J
way/N
about/I
air/N
bags/N
./.
###/###
Both/D
features/N
appealed/V
most/R
to/T
buyers/N
under/I
45/C
./.
###/###
In/I
contrast/N
,/,
dashboard/N
computers/N
,/,
power/N
seats/N
and/C
turbo-charged/J
engines/N
had/V
little/J
appeal/N
./.
###/###
But/C
even/R
a/D
little/J
appeal/N
has/V
a/D
lot/N
of/I
attraction/N
these/D
days/N
./.
###/###
GM/N
's/P
Pontiac/N
division/N
is/V
offering/V
a/D
turbo-charged/J
V-6/N
engine/N
on/I
its/P
Grand/N
Prix/N
model/N
,/,
even/R
though/I
it/P
expects/V
to/T
sell/V
only/R
about/R
4,000/C
cars/N
equipped/V
with/I
that/D
option/N
./.
###/###
The/D
reason/N
:/:
Items/N
with/I
narrow/J
appeal/N
can/M
be/V
important/J
in/I
a/D
market/N
as/R
fragmented/J
as/I
today/N
's/P
./.
###/###
Americans/N
spent/V
more/J
than/I
$/$
190/C
billion/C
on/I
new/J
cars/N
and/C
trucks/V
last/J
year/N
,/,
and/C
just/R
1/C
%/N
of/I
that/D
market/N
exceeded/V
Polaroid/N
Co./N
's/P
sales/N
of/I
$/$
1.86/C
billion/C
./.
###/###
``/`
Even/R
if/I
it/P
's/V
only/R
1/C
%/N
,/,
''/'
says/V
GM/N
's/P
Mr./N
Barabba/N
,/,
``/`
would/M
you/P
throw/V
away/R
sales/N
the/D
size/N
of/I
Polaroid/N
?/.
''/'
###/###
American/N
Telephone/N
&/C
Telegraph/N
Co./N
said/V
it/P
will/M
lay/V
off/R
75/C
to/T
85/C
technicians/N
here/R
,/,
effective/J
Nov./N
1/C
./.
###/###
The/D
workers/N
install/V
,/,
maintain/V
and/C
repair/V
its/P
private/J
branch/N
exchanges/N
,/,
which/W
are/V
large/J
intracompany/J
telephone/N
networks/N
./.
###/###
It/P
's/V
a/D
California/N
crime/N
saga/N
worthy/J
of/I
an/D
Erle/N
Stanley/N
Gardner/N
title/N
:/:
The/D
Case/N
of/I
the/D
Purloined/N
Palm/N
Trees/N
./.
###/###
Edward/N
Carlson/N
awoke/V
one/C
morning/N
last/J
month/N
to/T
find/V
eight/C
holes/N
in/I
his/P
front/J
yard/N
where/W
his/P
prized/V
miniature/J
palms/N
,/,
called/V
cycads/N
,/,
once/R
stood/V
./.
###/###
Days/N
later/R
,/,
the/D
thieves/N
returned/V
and/C
dug/V
out/I
more/R
,/,
this/D
time/N
adding/V
insult/N
to/T
injury/N
./.
###/###
``/`
The/D
second/J
time/N
,/,
''/'
he/P
says/V
,/,
``/`
they/P
left/V
the/D
shovel/N
./.
''/'
###/###
No/D
garden-variety/N
crime/N
,/,
palm-tree/N
rustling/N
is/V
sprouting/V
up/I
all/D
over/I
Southern/N
California/N
,/,
bringing/V
big/J
bucks/N
to/T
crooks/N
who/W
know/V
their/P
botany/N
./.
###/###
Cycads/N
,/,
the/D
most/R
popular/J
of/I
which/W
is/V
the/D
Sago/N
Palm/N
,/,
are/V
doll-sized/J
versions/N
of/I
California/N
's/P
famous/J
long-necked/J
palms/N
,/,
with/I
stubby/J
trunks/N
and/C
fern-like/J
fronds/N
./.
###/###
Because/I
the/D
Sago/N
is/V
relatively/R
rare/J
and/C
grows/V
only/R
a/D
couple/N
of/I
inches/N
a/D
year/N
,/,
it/P
's/V
a/D
pricey/J
lawn/N
decoration/N
:/:
A/D
two-foot/J
tall/J
Sago/N
can/M
retail/V
for/I
$/$
1,000/C
,/,
and/C
taller/J
ones/N
often/R
fetch/V
$/$
3,000/C
or/C
more/J
./.
###/###
``/`
Evidently/R
,/,
somebody/N
has/V
realized/V
it/P
's/P
easy/J
money/N
to/T
steal/V
these/D
things/N
,/,
''/'
says/V
Loran/N
Whitelock/N
,/,
a/D
research/N
associate/N
specializing/V
in/I
cycads/N
at/I
the/D
Los/N
Angeles/N
State/N
and/C
County/N
Arboretum/N
./.
###/###
Just/R
last/J
week/N
,/,
would-be/J
thieves/N
damaged/V
three/C
Sagos/N
at/I
Mr./N
Whitelock/N
's/P
home/N
in/I
the/D
Eagle/N
Rock/N
section/N
before/I
something/N
frightened/V
them/P
off/I
,/,
foiled/J
./.
###/###
``/`
It/P
's/V
hard/J
to/T
think/V
someone/N
is/V
raping/V
your/P
garden/N
,/,
''/'
he/P
says/V
./.
###/###
Police/N
suspect/V
that/I
the/D
criminals/N
,/,
who/W
dig/V
up/I
the/D
plants/N
in/I
the/D
dead/N
of/I
night/N
,/,
are/V
selling/V
them/P
to/T
nurseries/N
or/C
landscapers/N
./.
###/###
The/D
Sago/N
has/V
become/V
a/D
popular/J
accent/N
in/I
tony/J
new/J
housing/N
tracts/N
,/,
apparently/R
giving/V
the/D
rustlers/N
a/D
ready/J
market/N
for/I
their/P
filched/V
fronds/N
./.
###/###
Thieves/N
are/V
going/V
to/T
find/V
``/`
anybody/N
who/W
has/V
enough/R
bucks/V
to/T
plant/V
these/D
things/N
in/I
their/P
front/N
yard/N
,/,
''/'
says/V
William/N
Morrissey/N
,/,
an/D
investigator/N
with/I
the/D
police/N
department/N
in/I
Garden/N
Grove/N
,/,
Calif./N
,/,
where/W
five/C
such/J
thefts/N
have/V
been/V
reported/V
in/I
the/D
past/J
several/J
weeks/N
./.
###/###
The/D
department/N
is/V
advising/V
residents/N
to/T
plant/N
Sagos/N
,/,
if/I
they/P
must/M
,/,
in/I
the/D
back/J
yard/N
and/C
telling/V
nurseries/N
to/T
be/V
on/I
the/D
lookout/N
for/I
anyone/N
trying/V
to/T
palm/V
one/N
off/I
./.
###/###
But/C
for/I
those/D
Californians/N
who/W
want/V
exotic/J
gardens/N
out/I
front/N
where/W
neighbors/N
can/M
appreciate/V
them/P
,/,
there/E
's/V
always/R
Harold/N
Smith/N
's/P
approach/N
./.
###/###
After/I
three/C
Sagos/N
were/V
stolen/V
from/I
his/P
home/N
in/I
Garden/N
Grove/N
,/,
``/`
I/P
put/V
a/D
big/J
iron/N
stake/N
in/I
the/D
ground/N
and/C
tied/V
the/D
tree/N
to/T
the/D
stake/N
with/I
a/D
chain/N
,/,
''/'
he/P
says/V
proudly/R
./.
###/###
And/C
you/P
ca/M
n't/R
cut/V
this/D
chain/N
with/I
bolt/N
cutters/N
./.
###/###
Program/N
trading/N
on/I
the/D
New/N
York/N
Stock/N
Exchange/N
in/I
September/N
rose/V
to/T
its/P
highest/J
recorded/V
level/N
as/I
a/D
percentage/N
of/I
total/J
monthly/J
trading/N
volume/N
./.
###/###
September/N
program/N
trading/N
amounted/V
to/T
13.8/C
%/N
of/I
average/J
daily/J
New/N
York/N
Stock/N
Exchange/N
volume/N
of/I
151.8/C
million/C
shares/N
,/,
the/D
largest/J
percentage/N
since/I
the/D
exchange/N
began/V
making/V
such/J
figures/N
public/J
in/I
July/N
1988/C
./.
###/###
A/D
daily/J
average/N
of/I
20.9/C
million/C
shares/N
traded/V
in/I
program/N
strategies/N
in/I
September/N
,/,
the/D
second-highest/J
level/N
ever/R
./.
###/###
The/D
highest/J
level/N
was/V
in/I
June/N
1989/C
,/,
when/W
a/D
daily/J
average/N
of/I
22.1/C
million/C
shares/N
traded/V
in/I
program/N
strategies/N
./.
###/###
Average/J
daily/J
trading/N
volume/N
in/I
June/N
of/I
180.3/C
million/C
shares/N
was/V
considerably/R
higher/J
than/I
in/I
September/N
./.
###/###
Program/N
trading/N
amounted/V
to/T
12.3/C
%/N
of/I
average/J
daily/J
volume/N
in/I
June/N
./.
###/###
The/D
Big/N
Board/N
says/V
program/N
trading/N
describes/V
a/D
variety/N
of/I
strategies/N
involving/V
the/D
purchase/N
or/C
sale/N
of/I
a/D
basket/N
of/I
15/C
or/C
more/J
stocks/N
./.
###/###
The/D
most/R
controversial/J
of/I
these/D
is/V
stock-index/N
arbitrage/N
,/,
in/I
which/W
traders/N
buy/V
or/C
sell/V
baskets/N
of/I
stocks/N
and/C
offset/V
the/D
position/N
with/I
an/D
opposite/J
trade/N
in/I
stock-index/J
futures/N
to/T
lock/V
in/R
profits/N
./.
###/###
It/P
's/V
the/D
most/R
controversial/J
form/N
of/I
program/N
trading/N
because/I
it/P
can/M
create/V
abrupt/J
price/N
swings/N
in/I
the/D
stock/N
market/N
./.
###/###
Salomon/N
Brothers/N
Inc./N
was/V
the/D
top/J
program/N
trader/N
in/I
September/N
,/,
but/C
most/J
of/I
the/D
firm/N
's/P
activity/N
involved/V
portfolio/N
trading/N
strategies/N
other/J
than/I
stock-index/N
arbitrage/N
./.
###/###
Overall/R
,/,
Salomon/N
reported/V
program/N
trading/N
volume/N
of/I
75.2/C
million/C
shares/N
./.
###/###
The/D
top/J
stock-index/N
arbitrage/N
firm/N
last/J
month/N
was/V
Morgan/N
Stanley/N
&/C
Co/N
./.
###/###
Of/I
Morgan/N
Stanley/N
's/P
66.8/C
million/C
shares/N
in/I
program/N
trades/N
for/I
the/D
month/N
,/,
53.1/C
million/C
were/V
in/I
stock-index/N
arbitrage/N
trades/N
./.
###/###
Behind/I
second-place/J
Morgan/N
Stanley/N
were/V
Kidder/N
,/,
Peabody/N
&/C
Co./N
,/,
Goldman/N
,/,
Sachs/N
&/C
Co./N
and/C
CS/N
First/N
Boston/N
Inc./N
's/P
First/N
Boston/N
Corp./N
unit/N
./.
###/###
A/D
group/N
of/I
shareholders/N
filed/V
suit/N
against/I
Imperial/N
Corp./N
of/I
America/N
,/,
Drexel/N
Burnham/N
Lambert/N
Inc./N
,/,
First/N
Executive/N
Corp./N
and/C
others/N
,/,
charging/V
them/P
with/I
artificially/R
inflating/V
Imperial/N
's/P
stock/N
price/N
to/T
protect/V
certain/J
major/J
investors/N
./.
###/###
The/D
complaint/N
,/,
filed/V
in/I
federal/J
district/N
court/N
,/,
accuses/V
Imperial/N
and/C
other/J
defendants/N
of/I
issuing/V
false/J
and/C
misleading/J
financial/J
data/N
./.
###/###
It/P
also/R
charges/V
that/I
Imperial/N
,/,
the/D
holding/N
company/N
for/I
Imperial/N
Savings/N
&/C
Loan/N
,/,
experienced/V
major/J
losses/N
and/C
writedowns/N
because/I
of/I
improper/J
assessment/N
of/I
the/D
risks/N
of/I
junk-bond/N
investments/N
and/C
wholesale/J
consumer/N
loan/N
packages/N
./.
###/###
The/D
suit/N
seeks/V
unspecified/J
damages/N
./.
###/###
Imperial/N
is/V
in/I
the/D
midst/N
of/I
reducing/V
its/P
junk-bond/N
holdings/N
and/C
getting/V
out/I
of/I
the/D
investment/N
banking/N
business/N
in/I
order/N
to/T
return/V
to/T
traditional/J
thrift/N
activities/N
./.
###/###
The/D
derivative/J
suit/N
is/V
similar/J
to/T
a/D
class-action/J
complaint/N
filed/V
earlier/R
this/D
year/N
./.
###/###
Imperial/N
said/V
in/I
a/D
statement/N
it/P
expects/V
other/J
complaints/N
to/T
be/V
filed/V
in/I
the/D
wake/N
of/I
the/D
original/J
suit/N
and/C
a/D
recent/J
article/N
in/I
Barron/N
's/P
magazine/N
that/W
focused/V
on/I
the/D
company/N
's/P
problems/N
./.
###/###
Although/I
an/D
Imperial/J
spokesman/N
said/V
the/D
company/N
had/V
n't/R
yet/R
been/V
served/V
with/I
the/D
derivative/N
suit/N
,/,
he/P
reiterated/V
the/D
company/N
's/P
statement/N
that/I
it/P
would/M
vigorously/R
defend/V
itself/P
against/I
the/D
class-action/J
suit/N
./.
###/###
Spokesmen/N
at/I
Drexel/N
and/C
First/N
Executive/N
said/V
the/D
companies/N
had/V
n't/R
yet/R
been/V
served/V
with/I
the/D
suit/N
./.
###/###
In/I
a/D
separate/J
complaint/N
also/R
filed/V
in/I
federal/J
court/N
here/R
,/,
shareholder/N
Max/N
Grill/N
of/I
New/N
York/N
charged/V
Imperial/N
,/,
its/P
top/J
executives/N
and/C
directors/N
with/I
breach/N
of/I
fiduciary/J
duty/N
and/C
squandering/V
the/D
company/N
's/P
assets/N
./.
###/###
Imperial/N
said/V
it/P
had/V
n't/R
been/V
served/V
with/I
this/D
suit/N
either/R
./.
###/###
Companies/N
listed/V
below/R
reported/V
quarterly/J
profit/N
substantially/R
different/J
from/I
the/D
average/N
of/I
analysts/N
'/P
estimates/N
./.
###/###
The/D
companies/N
are/V
followed/V
by/I
at/I
least/J
three/C
analysts/N
,/,
and/C
had/V
a/D
minimum/J
five-cent/J
change/N
in/I
actual/J
earnings/N
per/I
share/N
./.
###/###
Estimated/J
and/C
actual/J
results/N
involving/V
losses/N
are/V
omitted/V
./.
###/###
The/D
percent/N
difference/N
compares/V
actual/J
profit/N
with/I
the/D
30-day/J
estimate/N
where/W
at/I
least/J
three/C
analysts/N
have/V
issues/N
forecasts/N
in/I
the/D
past/J
30/C
days/N
./.
###/###
Otherwise/R
,/,
actual/J
profit/N
is/V
compared/V
with/I
the/D
300-day/J
estimate/N
./.
###/###
Rhone-Poulenc/N
S.A./N
,/,
Paris/N
,/,
said/V
it/P
completed/V
the/D
purchase/N
of/I
the/D
specialty/N
chemicals/N
operation/N
of/I
RTZ/N
Corp./N
,/,
a/D
British/J
mining/N
and/C
industrial/J
group/N
./.
###/###
Rhone-Poulenc/N
,/,
a/D
chemical/N
and/C
pharmaceutical/J
company/N
,/,
said/V
RTZ/N
Chemicals/N
has/V
annual/J
sales/N
of/I
about/R
$/$
900/C
million/C
./.
###/###
It/P
did/V
n't/R
release/V
terms/N
of/I
the/D
transaction/N
./.
###/###
Consumer/N
spending/N
in/I
Britain/N
rose/V
0.1/C
%/N
in/I
the/D
third/J
quarter/N
from/I
the/D
second/J
quarter/N
and/C
was/V
up/R
3.8/C
%/N
from/I
a/D
year/N
ago/R
,/,
the/D
Central/N
Statistical/N
Office/N
estimated/V
Friday/N
./.
###/###
A/D
group/N
including/V
Gene/N
E./N
Phillips/N
,/,
former/J
chairman/N
of/I
Southmark/N
Corp./N
,/,
and/C
William/N
S./N
Friedman/N
,/,
former/J
vice/N
chairman/N
of/I
Southmark/N
,/,
lowered/V
its/P
stake/N
in/I
the/D
Dallas/N
real/J
estate/N
concern/N
to/T
7.7/C
%/N
,/,
according/V
to/T
a/D
filing/N
with/I
the/D
Securities/N
and/C
Exchange/N
Commission/N
./.
###/###
The/D
group/N
said/V
it/P
sold/V
455,410/C
Southmark/N
common/J
shares/N
from/I
Sept./N
5/C
to/T
Oct./N
5/C
for/I
18.75/C
cents/N
to/T
25/C
cents/N
a/D
share/N
./.
###/###
The/D
filing/N
said/V
the/D
group/N
continues/V
to/T
hold/V
3,481,887/C
remaining/V
shares/N
./.
###/###
Eastman/N
Kodak/N
Co./N
,/,
seeking/V
to/T
position/V
itself/P
in/I
the/D
potentially/R
huge/J
high-definition/J
television/N
market/N
,/,
unveiled/V
a/D
converter/N
that/W
can/M
transform/V
conventional/J
motion-picture/N
film/N
into/I
high-definition/J
video/N
./.
###/###
The/D
move/N
also/R
helps/V
the/D
Rochester/N
,/,
N.Y./N
,/,
photographic/J
giant/N
ensure/V
that/I
its/P
motion-picture/N
film/N
business/N
--/:
for/I
which/W
it/P
holds/V
a/D
virtual/J
monopoly/N
,/,
supplying/V
every/D
Hollywood/N
movie/N
company/N
--/:
is/V
n't/R
made/V
obsolete/J
by/I
the/D
upstart/J
HDTV/N
business/N
./.
###/###
While/I
the/D
prototype/N
converter/N
is/V
costly/J
,/,
it/P
's/V
being/V
lauded/V
by/I
the/D
infant/J
HDTV/N
industry/N
as/I
a/D
way/N
of/I
increasing/V
the/D
number/N
of/I
high-quality/J
shows/N
that/W
can/M
be/V
seen/V
on/I
the/D
new/J
medium/N
./.
###/###
``/`
The/D
industry/N
has/V
been/V
waiting/V
with/I
bated/J
breath/N
for/I
the/D
machines/N
to/T
come/V
along/R
,/,
''/'
says/V
David/N
Niles/N
,/,
president/N
of/I
Eleven/C
Twenty/C
Five/C
Productions/N
Inc./N
,/,
a/D
New/N
York/N
pioneer/N
in/I
high-definition/J
programming/N
./.
###/###
He/P
notes/V
that/I
industry/N
executives/N
have/V
until/I
now/R
worried/V
that/I
they/P
would/M
face/V
a/D
severe/J
shortage/N
of/I
programs/N
once/I
consumers/N
begin/V
replacing/V
their/P
TV/N
sets/N
with/I
HDTVs/N
./.
###/###
Japanese/J
electronic/J
giants/N
,/,
such/J
as/I
Sony/N
Corp./N
and/C
Hitachi/N
Ltd./N
,/,
have/V
focused/V
almost/R
entirely/R
on/I
HDTV/N
hardware/N
,/,
and/C
virtually/R
ignored/V
software/N
or/C
programs/N
shot/V
in/I
high-definition/N
./.
###/###
And/C
only/R
a/D
handful/N
of/I
small/J
U.S./N
companies/N
are/V
engaged/V
in/I
high-definition/J
software/N
development/N
./.
###/###
It/P
's/V
estimated/V
that/R
just/R
about/R
250/C
hours/N
of/I
HD/N
programming/N
is/V
currently/R
available/J
for/I
airing/V
./.
###/###
Kodak/N
says/V
its/P
new/J
CCD/N
HDTV/N
converter/N
will/M
help/V
alleviate/V
the/D
problem/N
by/I
allowing/V
programmers/N
and/C
broadcasters/N
to/T
convert/V
movies/N
and/C
television/N
programs/N
shot/V
in/I
35mm/C
motion-picture/N
film/N
into/I
high-definition/J
video/N
./.
###/###
Consumers/N
will/M
be/V
able/J
to/T
switch/V
on/R
their/P
HDTV/N
sets/N
and/C
get/V
all/P
the/D
viewing/N
benefits/N
the/D
high-tech/J
medium/N
offers/V
./.
###/###
Otherwise/R
,/,
they/P
'd/M
be/V
watching/V
programs/N
that/W
are/V
no/R
different/J
in/I
quality/N
from/I
what/W
they/P
currently/R
view/V
on/I
color/J
TVs/N
./.
###/###
It/P
would/M
be/V
like/I
``/`
watching/V
a/D
black/J
and/C
white/J
movie/N
on/I
a/D
color/J
TV/N
set/N
,/,
''/'
says/V
Malcolm/N
G./N
Saull/N
,/,
chairman/N
of/I
the/D
film/N
and/C
video/N
department/N
at/I
the/D
Rochester/N
Institute/N
of/I
Technology/N
./.
###/###
The/D
new/J
converters/N
are/V
``/`
a/D
critical/J
link/N
between/I
film/N
and/C
the/D
television/N
domain/N
,/,
''/'
says/V
Joerg/N
D./N
Agin/N
,/,
vice/N
president/N
and/C
general/J
manager/N
of/I
Kodak/N
's/P
Motion/N
Picture/N
and/C
Audiovisual/N
Products/N
division/N
./.
###/###
Kodak/N
wo/M
n't/R
disclose/V
the/D
cost/N
or/C
when/W
its/P
converter/N
will/M
be/V
on/I
the/D
market/N
,/,
but/C
it/P
's/V
estimated/V
the/D
machine/N
may/M
be/V
available/J
within/I
two/C
years/N
./.
###/###
A/D
similar/J
machine/N
already/R
on/I
the/D
market/N
,/,
made/V
by/I
Rank/N
Sintel/N
Ltd./N
,/,
a/D
unit/N
of/I
Rank/N
Organisation/N
,/,
costs/V
about/R
$/$
500,000/C
./.
###/###
And/C
the/D
potential/J
market/N
is/V
tremendous/J
,/,
industry/N
experts/N
say/V
./.
###/###
If/I
HDTV/N
takes/V
off/R
in/I
the/D
U.S./N
,/,
there/E
will/M
be/V
demand/N
for/I
some/R
4,000/C
to/T
5,000/C
HDTV/N
converters/N
,/,
known/V
in/I
the/D
industry/N
as/I
telecines/N
./.
###/###
Demand/N
will/M
come/V
first/R
from/I
programming/N
production/N
companies/N
and/C
then/R
from/I
television/N
stations/N
./.
###/###
``/`
The/D
converter/N
is/V
head/N
and/C
shoulders/N
above/I
anything/N
else/R
I/P
've/V
seen/V
,/,
''/'
says/V
Richard/N
J./N
Stumpf/N
,/,
vice/N
president-engineering/N
and/C
development/N
at/I
MCA/N
Inc./N
's/P
Universal/N
City/N
Studios/N
./.
###/###
And/C
Mr./N
Niles/N
,/,
the/D
program/N
producer/N
,/,
contends/V
that/I
Kodak/N
's/P
move/N
is/V
``/`
a/D
sound/N
marketing/N
decision/N
./.
###/###
They/P
ca/M
n't/R
afford/V
to/T
stay/V
out/I
of/I
HDTV/N
./.
''/'
###/###
Indeed/R
,/,
the/D
stakes/N
are/V
high/J
./.
###/###
The/D
U.S./N
electronics/N
industry/N
estimates/V
that/I
the/D
HDTV/N
market/N
will/M
total/V
about/R
$/$
150/C
billion/C
over/I
the/D
next/J
two/C
decades/N
,/,
with/I
an/D
additional/J
$/$
400/C
billion/C
expected/V
to/T
go/V
for/I
related/J
products/N
./.
###/###
HDTVs/N
break/V
down/R
images/N
into/I
more/J
than/I
1,100/C
lines/N
,/,
compared/V
with/I
525/C
for/I
today/N
's/P
televisions/N
,/,
providing/V
considerably/R
sharper/J
detail/N
./.
###/###
And/C
the/D
sets/N
are/V
wider/J
,/,
resembling/V
the/D
dimensions/N
of/I
a/D
movie/N
screen/N
./.
###/###
But/C
the/D
financial/J
rewards/N
are/V
n't/R
expected/V
soon/R
,/,
nor/C
are/V
they/P
guaranteed/V
./.
###/###
Experts/N
estimate/V
the/D
first/J
sets/N
of/I
HDTVs/N
wo/M
n't/R
be/V
available/J
for/I
another/D
five/C
to/T
10/C
years/N
,/,
and/C
will/M
probably/R
retail/V
for/I
more/J
than/I
$/$
3,000/C
each/D
in/I
today/N
's/P
dollars/N
./.
###/###
Some/D
critics/N
say/V
they/P
wo/M
n't/R
be/V
quickly/R
embraced/V
by/I
consumers/N
because/I
of/I
the/D
high/J
price/N
./.
###/###
Nevertheless/R
,/,
Kodak/N
could/M
n't/R
risk/V
letting/V
HDTV/N
turn/V
its/P
motion-picture/N
film/N
business/N
into/I
a/D
dinosaur/N
./.
###/###
``/`
Kodak/N
understands/V
HDTV/N
is/V
where/W
everybody/N
is/V
going/V
,/,
''/'
says/V
RIT/N
's/P
Mr./N
Spaull/N
./.
###/###
Yet/R
another/D
political/J
scandal/N
is/V
racking/V
Japan/N
./.
###/###
But/C
this/D
time/N
it/P
's/P
hurting/V
opposition/N
as/R
well/R
as/I
ruling-party/N
members/N
./.
###/###
And/C
as/I
it/P
unfolds/V
,/,
it/P
's/V
revealing/V
some/D
of/I
the/D
more/R
tangled/J
and/C
seamier/J
aspects/N
of/I
Japanese/J
society/N
./.
###/###
Already/R
,/,
ruling/V
Liberal/N
Democratic/N
Party/N
demands/N
that/I
opposition/N
members/N
testify/V
under/I
oath/N
in/I
parliament/N
have/V
stalled/V
one/C
budget/N
committee/N
session/N
and/C
forced/V
the/D
committee/N
to/T
plan/V
a/D
special/J
two-day/J
investigation/N
at/I
the/D
end/N
of/I
the/D
month/N
./.
###/###
But/C
the/D
scandal/N
itself/P
is/V
so/R
convoluted/J
that/I
ruling-party/N
members/N
are/V
divided/V
between/I
those/D
who/W
want/V
to/T
pursue/V
the/D
matter/N
in/I
hope/N
of/I
undermining/V
the/D
opposition/N
and/C
those/D
who/W
favor/V
leaving/V
well/R
enough/R
alone/R
./.
###/###
``/`
The/D
opposition/N
can/M
be/V
the/D
most/R
hurt/V
because/I
everyone/N
already/R
figures/V
the/D
LDP/N
is/V
that/D
kind/N
of/I
beast/N
,/,
''/'
says/V
Shigezo/N
Hayasaka/N
,/,
former/J
aide/N
to/T
LDP/N
kingmaker/N
Kakuei/N
Tanaka/N
and/C
now/R
an/D
independent/J
analyst/N
./.
###/###
But/C
,/,
he/P
adds/V
,/,
``/`
We/P
ca/M
n't/R
tell/V
where/W
it/P
will/M
go/V
at/I
all/D
because/I
we/P
're/V
still/R
in/I
the/D
middle/N
of/I
it/P
./.
''/'
###/###
This/D
time/N
,/,
the/D
scandal/N
centers/V
on/I
donations/N
made/V
by/I
the/D
not-quite-mainstream/J
pachinko/N
parlor/N
industry/N
./.
###/###
Pachinko/N
,/,
a/D
kind/N
of/I
pinball/N
,/,
is/V
Japan/N
's/P
favorite/J
form/N
of/I
legal/J
gambling/N
./.
###/###
The/D
donations/N
so/R
far/R
appear/V
to/T
be/V
small/J
,/,
especially/R
compared/V
with/I
the/D
huge/J
sums/N
that/W
changed/V
hands/N
in/I
the/D
Recruit/N
Co/N
./.
influence-peddling/N
scandal/N
that/W
plagued/V
the/D
ruling/V
party/N
last/J
year/N
./.
###/###
But/C
the/D
implications/N
could/M
be/V
great/J
./.
###/###
Pachinko/N
is/V
slightly/R
on/I
the/D
shady/J
side/N
,/,
often/R
linked/V
to/T
the/D
lower/J
ranks/N
of/I
Japan/N
's/P
underworld/N
and/C
regularly/R
at/I
the/D
top/N
of/I
annual/J
lists/N
of/I
tax/N
evaders/N
./.
###/###
Recently/R
the/D
industry/N
has/V
faced/V
the/D
threat/N
of/I
new/J
restrictions/N
,/,
and/C
political/J
donations/N
may/M
have/V
been/V
made/V
with/I
the/D
intent/N
to/T
bribe/V
./.
###/###
Also/R
,/,
about/R
60/C
%/N
of/I
pachinko/N
parlor/N
owners/N
are/V
Korean/J
,/,
many/J
of/I
whom/W
maintain/V
close/J
ties/N
with/I
North/J
or/C
South/J
Korean/J
residents/N
'/P
organizations/N
,/,
and/C
donations/N
by/I
such/J
foreign/J
groups/N
are/V
illegal/J
in/I
Japan/N
./.
###/###
To/T
many/J
Japanese/N
,/,
pachinko/N
is/V
benign/J
or/C
enticingly/R
unsavory/J
./.
###/###
Garish/J
neon/N
pachinko/N
marquees/N
blaze/V
from/I
the/D
main/J
streets/N
and/C
narrow/J
alleys/N
of/I
cities/N
and/C
towns/N
across/I
the/D
country/N
./.
###/###
Devotees/N
pass/V
hours/N
,/,
watching/V
the/D
lights/N
blink/V
and/C
listening/V
to/T
the/D
metal/N
balls/N
ping/V
,/,
as/R
much/R
to/T
gamble/V
as/I
to/T
get/V
a/D
little/J
time/N
to/T
be/V
anonymous/J
,/,
alone/R
with/I
their/P
thoughts/N
./.
###/###
At/I
500/C
yen/N
-LRB-/-
$/$
3.60/C
-RRB-/-
for/I
a/D
handful/N
of/I
balls/N
,/,
pachinko/N
is/V
a/D
common/J
pastime/N
,/,
and/C
has/V
been/V
since/I
it/P
took/V
root/N
as/I
cheap/J
entertainment/N
in/I
the/D
years/N
after/I
World/N
War/N
II/N
./.
###/###
But/C
the/D
total/N
of/I
all/P
those/D
pinging/V
balls/N
has/V
created/V
an/D
industry/N
with/I
a/D
reported/J
annual/J
income/N
of/I
13/C
trillion/C
yen/N
-LRB-/-
almost/R
$/$
92/C
billion/C
-RRB-/-
,/,
or/C
nearly/R
the/D
size/N
of/I
Japan/N
's/P
vaunted/J
automobile/N
industry/N
./.
###/###
And/C
because/I
the/D
pachinko/N
industry/N
is/V
regularly/R
at/I
the/D
top/N
of/I
annual/J
lists/N
for/I
tax/N
evasion/N
,/,
some/D
observers/N
estimate/V
the/D
real/J
income/N
could/M
be/V
as/R
much/J
as/I
20/C
trillion/C
yen/N
./.
###/###
If/I
that/D
money/N
were/V
being/V
taxed/V
,/,
it/P
could/M
bring/V
the/D
government/N
a/D
badly/R
needed/V
several/J
trillion/C
yen/N
./.
###/###
In/I
1984/C
,/,
an/D
attempt/N
was/V
made/V
to/T
crack/V
down/R
on/I
the/D
industry/N
with/I
tougher/J
restrictions/N
./.
###/###
Then/R
,/,
in/I
1988/C
,/,
a/D
proposal/N
to/T
keep/V
better/J
track/N
of/I
income/N
by/I
selling/V
prepaid/J
cards/N
for/I
pachinko/N
was/V
fielded/V
in/I
parliament/N
./.
###/###
The/D
proposal/N
split/V
the/D
industry/N
in/I
two/C
,/,
along/I
the/D
lines/N
of/I
national/J
origin/N
:/:
North/N
Koreans/N
oppose/V
the/D
plan/N
while/I
South/N
Koreans/N
,/,
Japanese/N
and/C
Taiwanese/N
accept/V
it/P
or/C
are/V
neutral/J
./.
###/###
In/I
August/N
,/,
a/D
conservative/J
weekly/J
magazine/N
reported/V
that/I
a/D
pachinko/N
industry/N
organization/N
donated/V
money/N
to/T
Japan/N
Socialist/N
Party/N
members/N
./.
###/###
The/D
magazine/N
alleged/V
that/I
in/I
making/V
the/D
donations/N
,/,
the/D
pachinko/N
industry/N
may/M
have/V
been/V
offering/V
bribes/N
to/T
win/V
support/N
in/I
the/D
battle/N
against/I
prepaid/J
cards/N
,/,
or/C
it/P
may/M
have/V
been/V
laundering/V
money/N
back/R
and/C
forth/R
between/I
the/D
JSP/N
and/C
the/D
North/J
Korean/J
residents/N
'/P
organization/N
,/,
the/D
Chosen/N
Soren/N
./.
###/###
The/D
Chosen/N
Soren/N
and/C
the/D
JSP/N
immediately/R
denied/V
the/D
report/N
./.
###/###
And/C
at/I
first/J
,/,
neither/C
the/D
opposition/N
nor/C
the/D
LDP/N
wanted/V
to/T
pursue/V
the/D
issue/N
./.
###/###
But/C
the/D
press/N
kept/V
it/P
alive/J
;/:
as/R
with/I
the/D
Recruit/N
scandal/N
,/,
lists/N
began/V
circulating/V
with/I
names/N
of/I
people/N
who/W
had/V
received/V
money/N
./.
###/###
Within/I
a/D
matter/N
of/I
weeks/N
,/,
less-conservative/J
magazines/N
reported/V
that/I
members/N
of/I
the/D
ruling/V
LDP/N
had/V
received/V
much/R
larger/J
donations/N
from/I
pachinko/N
organizations/N
./.
###/###
So/R
far/R
,/,
though/R
,/,
there/E
have/V
been/V
no/D
allegations/N
that/I
the/D
contributions/N
the/D
LDP/N
members/N
received/V
amounted/V
to/T
bribes/N
./.
###/###
Then/R
the/D
two/C
camps/N
upped/V
the/D
ante/N
:/:
Reports/N
that/I
Chosen/N
Soren/N
had/V
donated/V
directly/R
to/T
JSP/N
members/N
were/V
rapidly/R
countered/V
by/I
statements/N
that/I
the/D
South/J
Korean/J
residents/N
'/P
organization/N
had/V
long/R
been/V
donating/V
directly/R
to/T
LDP/N
members/N
./.
###/###
The/D
JSP/N
admitted/V
Oct./N
13/C
that/I
its/P
members/N
received/V
about/R
eight/C
million/C
yen/N
from/I
the/D
pachinko/N
organization/N
,/,
and/C
charged/V
LDP/N
members/N
with/I
receiving/V
125/C
million/C
yen/N
-LRB-/-
$/$
880,000/C
-RRB-/-
and/C
other/J
opposition/N
parties/N
with/I
taking/V
about/R
2.5/C
million/C
yen/N
./.
###/###
On/I
Friday/N
,/,
the/D
chief/J
cabinet/N
secretary/N
announced/V
that/I
eight/C
cabinet/N
ministers/N
had/V
received/V
five/C
million/C
yen/N
from/I
the/D
industry/N
,/,
including/V
450,000/C
yen/N
-LRB-/-
$/$
3,175/C
-RRB-/-
by/I
Prime/N
Minister/N
Toshiki/N
Kaifu/N
./.
###/###
No/D
one/N
has/V
alleged/V
that/I
the/D
donations/N
were/V
by/I
themselves/P
illegal/J
./.
###/###
Direct/J
donations/N
from/I
either/D
of/I
the/D
residents/N
'/P
organizations/N
would/M
be/V
illegal/J
because/I
the/D
groups/N
are/V
defined/V
as/I
foreign/J
,/,
but/C
both/D
groups/N
deny/V
making/V
direct/J
donations/N
./.
###/###
They/P
say/V
possible/J
some/D
of/I
their/P
members/N
may/M
be/V
donating/V
privately/R
./.
###/###
The/D
issue/N
is/V
further/R
complicated/V
because/I
although/I
the/D
organizations/N
represent/V
Korean/J
residents/N
,/,
those/D
residents/N
were/V
largely/R
born/V
and/C
raised/V
in/I
Japan/N
and/C
many/J
speak/V
only/R
Japanese/N
./.
###/###
That/I
they/P
retain/V
Korean/J
citizenship/N
and/C
ties/N
is/V
a/D
reflection/N
of/I
history/N
--/:
their/P
parents/N
were/V
shipped/V
in/R
as/I
laborers/N
during/I
the/D
decades/N
when/W
Japan/N
occupied/V
Korea/N
before/I
World/N
War/N
II/N
--/:
and/C
the/D
discrimination/N
that/W
still/R
faces/V
Koreans/N
in/I
Japanese/J
society/N
./.
###/###
Many/J
Japanese/N
think/V
it/P
only/R
natural/N
that/I
the/D
organizations/N
or/C
their/P
members/N
would/M
donate/V
to/T
politicians/N
,/,
the/D
way/N
many/J
Japanese/N
do/V
,/,
to/T
win/V
favor/N
or/C
support/N
./.
###/###
Both/D
residents/N
'/P
organizations/N
admit/V
to/T
receiving/V
some/D
funding/N
from/I
abroad/R
./.
###/###
But/C
LDP/N
members/N
and/C
supporters/N
of/I
the/D
prepaid/J
card/N
idea/N
tend/V
to/T
speak/V
in/I
innuendo/N
about/I
the/D
JSP/N
's/P
alleged/J
donations/N
,/,
implying/V
that/I
North/J
Korean/J
money/N
would/M
be/V
more/R
suspect/J
than/I
South/J
Korean/J
because/I
North/N
Korea/N
is/V
communist/J
and/C
South/N
Korea/N
is/V
an/D
ally/N
./.
###/###
When/W
Robert/N
McDuffie/N
was/V
14/C
,/,
he/P
got/V
a/D
chance/N
to/T
play/V
in/I
the/D
starting/J
lineup/N
for/I
his/P
high/J
school/N
basketball/N
team/N
in/I
Macon/N
,/,
Ga/N
./.
###/###
Unfortunately/R
,/,
his/P
mother/N
had/V
tickets/N
for/I
a/D
recital/N
by/I
Itzhak/N
Perlman/N
the/D
same/J
night/N
,/,
and/C
she/P
was/V
adamant/J
about/I
his/P
attending/V
./.
###/###
``/`
I/P
threw/V
such/P
a/D
fit/N
,/,
''/'
says/V
Mr./N
McDuffie/N
,/,
who/W
had/V
begun/V
violin/N
studies/N
at/I
the/D
age/N
of/I
six/C
./.
###/###
But/C
once/I
Perlman/N
started/V
playing/V
,/,
I/P
did/V
n't/R
give/V
a/D
damn/N
about/I
basketball/N
./.
###/###
Afterwards/R
,/,
I/P
went/V
home/N
and/C
practiced/V
for/I
three/C
hours/N
./.
''/'
###/###
Today/N
,/,
it/P
's/V
obvious/J
that/I
the/D
brawny/J
,/,
six-foot/J
,/,
one-inch/J
musician/N
made/V
the/D
right/J
choice/N
./.
###/###
At/I
31/C
,/,
Mr./N
McDuffie/N
has/V
a/D
rich/J
,/,
full-bodied/J
tone/N
,/,
an/D
admirable/J
rhythmic/J
precision/N
and/C
an/D
increasingly/R
busy/J
schedule/N
./.
###/###
He/P
's/V
currently/R
in/I
the/D
midst/N
of/I
a/D
17-city/J
U.S./N
tour/N
with/I
Yehudi/N
Menuhin/N
and/C
the/D
Warsaw/N
Sinfonia/N
,/,
with/I
stops/N
including/V
Charleston/N
,/,
S.C/N
./.
-LRB-/-
Oct./N
25/C
-RRB-/-
,/,
Sarasota/N
,/,
Fla/N
./.
-LRB-/-
Oct./N
28/C
-RRB-/-
,/,
Tampa/N
,/,
Fla/N
./.
-LRB-/-
Oct./N
29/C
-RRB-/-
and/C
Miami/N
-LRB-/-
Oct./N
31/C
-RRB-/-
./.
###/###
Later/R
this/D
season/N
he/P
gives/V
a/D
recital/N
at/I
Washington/N
's/P
Kennedy/N
Center/N
,/,
and/C
appears/V
as/I
soloist/N
with/I
several/J
major/J
orchestras/N
./.
###/###
Yet/C
Mr./N
McDuffie/N
's/P
career/N
has/V
developed/V
at/I
a/D
slower/J
pace/N
than/I
those/D
of/I
some/D
of/I
his/P
better/R
known/V
contemporaries/N
./.
###/###
During/I
the/D
late/J
1970s/N
,/,
he/P
was/V
part/N
of/I
a/D
musical/J
``/`
brat/N
pack/N
''/'
--/:
a/D
group/N
of/I
budding/J
virtuosos/N
who/W
studied/V
at/I
the/D
Juilliard/N
School/N
with/I
the/D
noted/J
pedagogue/N
Dorothy/N
DeLay/N
./.
###/###
His/P
violin/N
classmates/N
included/V
Shlomo/N
Mintz/N
,/,
a/D
protege/N
of/I
Isaac/N
Stern/N
who/W
performed/V
with/I
major/J
orchestras/N
while/I
still/R
a/D
student/N
;/:
Cho-Liang/N
Lin/N
,/,
who/W
joined/V
the/D
roster/N
of/I
ICM/N
Artists/N
Inc./N
at/I
the/D
age/N
of/I
18/C
;/:
and/C
Nadja/N
Salerno-Sonnenberg/N
,/,
who/W
launched/V
her/P
career/N
by/I
winning/V
the/D
1981/C
Naumberg/N
Competition/N
./.
###/###
``/`
I/P
thought/V
I/P
was/V
over/I
the/D
hill/N
at/I
22/C
,/,
''/'
recalls/V
Mr./N
McDuffie/N
,/,
an/D
outgoing/J
man/N
with/I
pale/J
blue/J
eyes/N
and/C
a/D
light/J
Southern/J
drawl/N
./.
###/###
But/C
I/P
was/V
n't/R
ready/J
for/I
a/D
career/N
at/I
that/D
time/N
./.
''/'
###/###
Young/J
McDuffie/N
's/P
first/J
violin/N
teacher/N
was/V
Henrik/N
Schwarzenberger/N
,/,
a/D
Hungarian/J
refugee/N
who/W
taught/V
in/I
the/D
Macon/N
public/J
school/N
system/N
./.
###/###
``/`
He/P
taught/V
me/P
how/W
to/T
play/V
like/I
a/D
gypsy/N
,/,
''/'
jokes/V
the/D
musician/N
./.
###/###
I/P
did/V
n't/R
learn/V
to/T
count/V
until/I
I/P
got/V
to/T
Juilliard/N
./.
''/'
###/###
After/I
studies/N
at/I
that/D
conservatory/N
's/P
Pre-College/N
Division/N
with/I
an/D
assistant/N
to/T
the/D
legendary/J
instructor/N
Ivan/N
Galamian/N
,/,
he/P
switched/V
at/I
the/D
college/N
level/N
to/T
Miss/N
DeLay/N
,/,
Mr./N
Galamian/N
's/P
longtime/J
assistant/N
and/C
,/,
ultimately/R
,/,
his/P
rival/N
./.
###/###
``/`
I/P
think/V
I/P
had/V
to/T
prove/V
myself/P
to/T
her/P
,/,
''/'
says/V
Mr./N
McDuffie/N
./.
###/###
But/C
she/P
was/V
always/R
encouraging/J
./.
###/###
She/P
only/R
put/V
her/P
foot/N
down/R
twice/R
,/,
''/'
he/P
continues/V
./.
###/###
In/I
my/P
freshman/N
year/N
,/,
my/P
roommate/N
was/V
known/V
as/I
a/D
party/N
animal/N
./.
###/###
She/P
thought/V
I/P
was/V
n't/R
getting/V
my/P
practicing/N
done/V
./.
''/'
###/###
As/I
the/D
violinist/N
tells/V
it/P
,/,
his/P
grandmotherly/J
looking/V
teacher/N
``/`
put/V
her/P
hands/N
on/I
her/P
hips/N
,/,
stomped/V
her/P
foot/N
and/C
said/V
,/,
`/`
You/P
've/V
just/R
got/V
to/T
get/V
the/D
-LCB-/-
expletive/N
deleted/V
-RCB-/-
out/I
of/I
there/R
./.
'/'
''/'
###/###
The/D
second/J
incident/N
took/V
place/N
after/I
Mr./N
McDuffie/N
gave/V
an/D
ambitious/J
student/N
recital/N
and/C
was/V
feeling/V
rather/R
pleased/J
with/I
himself/P
./.
###/###
Miss/N
DeLay/N
requested/V
that/I
he/P
come/V
to/T
her/P
studio/N
with/I
a/D
tape/N
of/I
the/D
recital/N
./.
###/###
``/`
We/P
listened/V
to/T
the/D
Chausson/N
`/`
Poeme/N
,/,
'/'
''/'
he/P
recalls/V
,/,
``/`
and/C
she/P
said/V
,/,
`/`
You/P
hear/V
the/D
first/J
note/N
,/,
that/D
B-flat/N
?/.
###/###
That/D
's/V
the/D
only/J
note/N
that/W
's/V
truly/R
in/I
tune/N
./.
./.
./.
'/'
./.
''/'
###/###
``/`
That/D
's/V
the/D
most/R
important/J
experience/N
I/P
've/V
had/V
with/I
any/D
teacher/N
,/,
''/'
he/P
says/V
,/,
``/`
because/I
she/P
taught/V
me/P
how/W
to/T
listen/V
./.
###/###
Now/R
,/,
when/W
I/P
play/V
with/I
orchestras/N
,/,
the/D
musicians/N
often/R
compliment/V
me/P
on/I
my/P
intonation/N
./.
''/'
###/###
It/P
was/V
also/R
at/I
Juilliard/N
that/I
Mr./N
McDuffie/N
discovered/V
his/P
predilection/N
for/I
conservative/J
,/,
20th-century/J
American/J
composers/N
such/J
as/I
David/N
Diamond/N
and/C
Samuel/N
Barber/N
./.
###/###
After/I
winning/V
a/D
school/N
competition/N
with/I
a/D
performance/N
of/I
the/D
latter/N
's/P
``/`
Violin/N
Concerto/N
,/,
''/'
Mr./N
McDuffie/N
was/V
invited/V
to/T
play/V
the/D
work/N
for/I
the/D
composer/N
,/,
who/W
was/V
dying/V
of/I
cancer/N
./.
###/###
``/`
Barber/N
was/V
seated/V
by/I
the/D
fireplace/N
looking/V
very/R
pale/J
,/,
''/'
recalls/V
the/D
violinist/N
,/,
who/W
performed/V
the/D
work/N
with/I
a/D
piano/N
accompanist/N
at/I
the/D
composer/N
's/P
apartment/N
./.
###/###
He/P
did/V
n't/R
say/V
much/J
,/,
but/C
what/W
he/P
said/V
was/V
important/J
because/I
it/P
's/V
not/R
in/I
the/D
score/N
./.
###/###
There/E
's/V
a/D
beautiful/J
,/,
Coplandesque/J
motif/N
--/:
he/P
'd/M
kill/V
me/P
if/I
he/P
heard/V
me/P
say/V
that/D
--/:
throughout/I
the/D
first/J
movement/N
./.
###/###
The/D
only/J
time/N
the/D
violin/N
has/V
it/P
is/V
right/R
at/I
the/D
end/N
./.
###/###
It/P
's/V
written/V
`/`
marcato/F
'/'
in/I
the/D
score/N
,/,
and/C
I/P
played/V
it/P
that/D
way/N
,/,
kind/N
of/I
gigue-like/J
./.
###/###
And/C
he/P
yelled/V
out/R
`/`
dolce/F
dolce/F
'/'
-LCB-/-
`/`
sweet/J
sweet/J
'/'
-RCB-/-
./.
''/'
###/###
``/`
So/I
we/P
did/V
it/P
over/R
,/,
''/'
he/P
adds/V
./.
###/###
I/P
played/V
very/R
transparently/R
,/,
with/I
the/D
tip/N
of/I
the/D
bow/N
./.
###/###
If/I
a/D
conductor/N
is/V
sensitive/J
enough/R
to/T
bring/V
down/R
the/D
orchestra/N
-LCB-/-
volume/N
-RCB-/-
at/I
that/D
point/N
,/,
it/P
makes/V
the/D
piece/N
magical/J
./.
###/###
I/P
do/V
n't/R
know/V
why/W
Barber/N
never/R
told/V
anybody/N
else/R
./.
###/###
On/I
Isaac/N
Stern/N
's/P
recording/N
it/P
's/V
very/R
biting/J
./.
''/'
###/###
Since/I
leaving/V
Juilliard/N
,/,
Mr./N
McDuffie/N
has/V
made/V
some/D
smart/J
moves/N
and/C
some/D
controversial/J
ones/N
./.
###/###
His/P
guest/J
appearance/N
on/I
the/D
NBC/N
soap/N
opera/N
``/`
Another/D
World/N
,/,
''/'
scandalized/V
musical/J
elitists/N
./.
###/###
By/I
contrast/N
,/,
he/P
's/V
won/V
kudos/N
for/I
his/P
espousal/N
of/I
William/N
Schuman/N
's/P
``/`
Violin/N
Concerto/N
,/,
''/'
which/W
he/P
recently/R
recorded/V
for/I
along/R
with/I
Leonard/N
Bernstein/N
's/P
engaging/J
``/`
Serenade/N
for/I
Violin/N
Solo/N
,/,
Strings/N
and/C
Percussion/N
./.
''/'
###/###
Mr./N
McDuffie/N
's/P
sweet/J
tone/N
,/,
heartfelt/J
lyricism/N
and/C
rhythmic/J
punch/N
make/V
him/P
an/D
ideal/J
interpreter/N
of/I
both/D
works/N
./.
###/###
Aided/V
by/I
the/D
fluid/J
playing/N
of/I
the/D
St./N
Louis/N
Symphony/N
under/I
Leonard/N
Slatkin/N
's/P
direction/N
,/,
this/D
``/`
Serenade/N
''/'
really/R
swings/V
./.
###/###
Mr./N
Schuman/N
's/P
``/`
Violin/N
Concerto/N
,/,
''/'
which/W
sounds/V
more/R
like/I
a/D
mildly/R
atonal/J
rhapsody/N
for/I
solo/J
violin/N
with/I
orchestral/J
accompaniment/N
,/,
meanders/V
until/I
the/D
propulsive/J
``/`
Agitato/N
,/,
fervente/N
./.
''/'
###/###
But/C
there/E
are/V
ample/J
rewards/N
in/I
its/P
plaintive/J
slow/J
sections/N
and/C
virtuoso/J
fireworks/N
for/I
soloist/N
,/,
brass/N
and/C
timpani/N
./.
###/###
At/I
Avery/N
Fisher/N
Hall/N
here/R
,/,
Mr./N
McDuffie/N
was/V
heard/V
recently/R
with/I
Mr./N
Menuhin/N
and/C
the/D
Warsaw/N
Sinfonia/N
in/I
more/J
conventional/J
fare/N
--/:
Bruch/N
's/P
overwrought/J
``/`
Violin/N
Concerto/N
in/I
G/N
Minor/N
./.
''/'
###/###
His/P
performance/N
was/V
so/R
effusive/J
and/C
driven/J
that/I
the/D
phrases/N
rarely/R
breathed/V
./.
###/###
The/D
35-member/J
Sinfonia/N
played/V
adroitly/R
with/I
a/D
big/J
,/,
lush/J
sound/N
that/W
belied/V
its/P
size/N
./.
###/###
Whatever/W
he/P
plays/V
,/,
Mr./N
McDuffie/N
finds/V
satisfaction/N
in/I
the/D
music/N
itself/P
--/:
``/`
something/N
greater/J
out/R
there/R
than/I
me/P
,/,
''/'
as/I
he/P
puts/V
it/P
during/I
an/D
interview/N
at/I
the/D
Manhattan/N
apartment/N
he/P
shares/V
with/I
wife/N
,/,
Camille/N
,/,
a/D
literary/J
publicist/N
./.
###/###
``/`
A/D
normal/J
person/N
did/V
not/R
write/V
the/D
Beethoven/N
`/`
Violin/N
Concerto/N
,/,
'/'
''/'
he/P
declares/V
./.
###/###
Even/R
when/W
I/P
hear/V
it/P
played/V
badly/R
,/,
I/P
'm/V
still/R
humbled/V
by/I
the/D
piece/N
./.
###/###
If/I
I/P
could/M
ever/R
feel/V
I/P
've/V
contributed/V
to/T
it/P
in/I
some/D
way/N
,/,
then/R
all/P
the/D
hard/J
work/N
has/V
been/V
worth/J
it/P
./.
''/'
###/###
Ms./N
Jepson/N
is/V
a/D
free-lance/J
music/N
writer/N
in/I
New/N
York/N
./.
###/###
Are/V
consumers/N
too/R
deep/R
in/I
hock/N
?/.
###/###
A/D
lot/N
of/I
observers/N
think/V
so/R
,/,
and/C
,/,
if/I
they/P
're/V
right/J
,/,
the/D
whole/J
economy/N
as/R
well/R
as/I
the/D
spendthrifts/N
among/I
us/P
could/M
be/V
hurt/V
./.
###/###
A/D
sudden/J
,/,
forced/J
cutback/N
by/I
consumers/N
,/,
who/W
normally/R
account/V
for/I
about/R
two-thirds/N
of/I
economic/J
activity/N
,/,
would/M
damp/V
the/D
economy/N
at/I
a/D
time/N
when/W
plant-and-equipment/J
spending/N
is/V
slowing/V
and/C
deficit-racked/J
governments/N
ca/M
n't/R
readily/R
take/V
up/R
the/D
slack/N
./.
###/###
And/C
another/D
wave/N
of/I
bad/J
loans/N
would/M
further/R
batter/V
many/J
already-shaky/J
lending/N
institutions/N
./.
###/###
The/D
worriers/N
cite/V
some/D
worrisome/J
trends/N
./.
###/###
During/I
the/D
almost/R
seven-year-old/J
economic/J
expansion/N
,/,
inflation-adjusted/J
gross/J
national/J
product/N
,/,
disposable/J
personal/J
income/N
and/C
personal/J
consumption/N
expenditures/N
have/V
risen/V
30/C
%/N
,/,
but/C
inflation-adjusted/J
consumer/N
installment/N
credit/N
has/V
surged/V
66/C
%/N
./.
###/###
And/C
the/D
ratio/N
of/I
installment/J
debt/N
to/T
disposable/J
personal/J
income/N
--/:
personal/J
income/N
after/I
taxes/N
--/:
has/V
hit/V
a/D
high/N
of/I
about/R
18/C
%/N
./.
###/###
However/R
,/,
these/D
figures/N
do/V
n't/R
seem/V
to/T
worry/V
Thomas/N
A./N
Durkin/N
,/,
an/D
economist/N
at/I
the/D
Federal/N
Reserve/N
Board/N
./.
###/###
In/I
a/D
paper/N
presented/V
at/I
the/D
recent/J
annual/J
meeting/N
of/I
the/D
National/N
Association/N
of/I
Business/N
Economists/N
in/I
San/N
Francisco/N
,/,
Mr./N
Durkin/N
comments/N
that/I
``/`
installment/J
credit/N
always/R
grows/V
rapidly/R
in/I
cyclical/J
advances/N
,/,
and/C
growth/N
in/I
this/D
cycle/N
is/V
very/R
typical/J
of/I
earlier/J
experiences/N
./.
''/'
###/###
He/P
adds/V
:/:
``/`
We/P
are/V
now/R
witnessing/V
a/D
slowdown/N
which/W
,/,
if/I
history/N
is/V
a/D
guide/N
,/,
could/M
persist/V
for/I
a/D
while/N
./.
''/'
###/###
But/C
what/W
about/I
the/D
debt/N
burden/N
?/.
###/###
Mr./N
Durkin/N
doubts/V
that/I
``/`
there/E
is/V
some/D
magic/J
level/N
''/'
at/I
which/W
the/D
ratio/N
of/I
installment/N
debt/N
to/T
disposable/J
income/N
``/`
indicates/V
economic/J
problems/N
./.
''/'
###/###
And/C
,/,
``/`
more/R
importantly/R
,/,
''/'
he/P
says/V
,/,
``/`
the/D
debt/N
burden/N
measured/V
other/J
ways/N
is/V
not/R
really/R
in/I
uncharted/J
waters/N
./.
''/'
###/###
The/D
chart/N
below/R
shows/N
why/W
-LRB-/-
see/V
accompanying/V
illustration/N
--/:
WSJ/N
Oct./N
23/C
,/,
1989/C
-RRB-/-
./.
###/###
The/D
ratio/N
of/I
consumer/N
installment/N
credit/N
to/T
disposable/J
income/N
,/,
though/I
up/R
a/D
bit/N
,/,
has/V
n't/R
climbed/V
steeply/R
,/,
and/C
such/J
debt/N
as/I
a/D
percent/N
of/I
household/N
assets/N
is/V
little/R
changed/V
./.
###/###
Moreover/R
,/,
the/D
burden/N
of/I
consumer/N
credit/N
payments/N
relative/J
to/T
disposable/J
income/N
may/M
be/V
``/`
lower/J
in/I
this/D
cycle/N
than/I
earlier/R
,/,
''/'
Mr./N
Durkin/N
says/V
./.
###/###
He/P
notes/V
that/I
some/D
``/`
revolving/J
credit-card/N
credit/N
is/V
actually/R
convenience/N
credit/N
''/'
being/V
used/V
simply/R
as/I
a/D
handy/J
way/N
of/I
paying/V
bills/N
rather/R
than/I
a/D
handy/J
way/N
of/I
borrowing/V
./.
###/###
In/I
addition/N
,/,
he/P
says/V
,/,
``/`
longer/J
maturities/N
on/I
automobile/N
and/C
other/J
forms/N
of/I
installment/N
credit/N
boost/V
the/D
stock/N
of/I
debt/N
faster/R
than/I
the/D
flow/N
of/I
repayments/N
and/C
the/D
accompanying/J
payment/N
burden/N
./.
''/'
###/###
And/C
if/I
you/P
``/`
consider/V
the/D
changing/V
distribution/N
of/I
credit/N
,/,
''/'
Mr./N
Durkin/N
says/V
,/,
``/`
much/J
of/I
the/D
increase/N
in/I
debt/N
in/I
recent/J
years/N
is/V
due/J
to/T
increasing/V
credit/N
use/N
by/I
higher-income/J
families/N
,/,
''/'
that/D
is/V
,/,
``/`
those/D
probably/R
best/R
able/J
to/T
handle/V
it/P
./.
''/'
###/###
Citing/V
figures/N
on/I
home-equity/J
loans/N
,/,
he/P
notes/V
that/I
``/`
11/C
%/N
of/I
homeowners/N
had/V
home-equity/J
credit/N
accounts/N
,/,
but/C
the/D
proportion/N
rises/V
to/T
16/C
%/N
of/I
homeowners/N
in/I
the/D
$/$
45,000-$60,000/C
income/N
range/N
and/C
23/C
%/N
of/I
homeowners/N
with/I
income/N
above/I
$/$
60,000/C
./.
''/'
###/###
And/C
much/J
home-equity/J
credit/N
is/V
used/V
conservatively/R
./.
###/###
``/`
The/D
most/R
frequent/J
use/N
is/V
home/N
improvement/N
,/,
which/W
presumably/R
improves/V
the/D
value/N
of/I
the/D
property/N
,/,
''/'
Mr./N
Durkin/N
says/V
./.
###/###
So/R
,/,
it/P
is/V
n't/R
surprising/J
that/I
consumer-credit/J
delinquencies/N
at/I
banks/N
remain/V
,/,
as/I
the/D
chart/N
shows/V
,/,
reassuringly/R
below/I
some/D
earlier/J
highs/N
-LRB-/-
see/V
accompanying/V
illustration/N
--/:
WSJ/N
Oct./N
23/C
,/,
1989/C
-RRB-/-
./.
###/###
A/D
severe/J
recession/N
could/M
,/,
of/I
course/N
,/,
raise/V
delinquency/N
rates/N
,/,
but/C
so/R
far/R
the/D
current/J
levels/N
of/I
consumer/N
debt/N
do/V
n't/R
seem/V
to/T
loom/V
as/I
a/D
major/J
threat/N
./.
###/###
In/I
fact/N
,/,
the/D
current/J
weakness/N
in/I
auto/N
buying/N
and/C
department-store/N
sales/N
and/C
the/D
gradual/J
upturn/N
in/I
the/D
household/N
saving/N
rate/N
suggest/V
that/I
consumers/N
,/,
conservative/J
as/I
ever/R
,/,
are/V
already/R
clutching/V
their/P
purses/N
a/D
bit/N
more/R
tightly/R
./.
###/###
In/I
July/N
,/,
consumer/N
installment/N
credit/N
outstanding/J
fell/V
for/I
the/D
first/J
time/N
since/I
January/N
1987/C
./.
###/###
``/`
Consumers/N
appear/V
unwilling/J
to/T
add/V
to/T
their/P
leverage/N
to/T
support/V
their/P
spending/N
,/,
''/'
Bruce/N
Steinberg/N
,/,
a/D
Merrill/N
Lynch/N
economist/N
,/,
says/V
./.
###/###
As/I
a/D
result/N
,/,
household/N
debt/N
appears/V
to/T
be/V
stabilizing/V
at/I
around/I
63/C
%/N
of/I
GNP/N
./.
''/'
###/###
Consumers/N
,/,
credit/N
cards/N
in/I
hand/N
,/,
are/V
n't/R
running/V
amok/R
through/I
the/D
shopping/N
malls/N
--/:
or/C
putting/V
the/D
economy/N
at/I
any/D
great/J
risk/N
./.
###/###
Maidenform/N
Inc./N
loves/V
to/T
be/V
intimate/J
with/I
its/P
customers/N
,/,
but/C
not/R
with/I
the/D
rest/N
of/I
the/D
public/N
./.
###/###
The/D
67-year-old/J
maker/N
of/I
brassieres/N
,/,
panties/N
,/,
and/C
lingerie/N
enjoys/V
one/C
of/I
the/D
best-known/J
brand/N
images/N
,/,
but/C
its/P
financial/J
profile/N
is/V
closely/R
guarded/V
by/I
members/N
of/I
the/D
founding/J
family/N
./.
###/###
``/`
There/E
are/V
very/R
few/J
companies/N
that/W
can/M
boast/V
of/I
such/P
a/D
close-knit/J
group/N
,/,
''/'
says/V
Robert/N
A./N
Brawer/N
,/,
52/C
years/N
old/J
,/,
recently/R
named/V
president/N
,/,
succeeding/V
Beatrice/N
Coleman/N
,/,
his/P
mother-in-law/N
,/,
who/W
remains/V
chairman/N
./.
###/###
``/`
We/P
are/V
a/D
vanishing/V
breed/N
,/,
''/'
he/P
muses/N
./.
###/###
Mrs./N
Coleman/N
,/,
73/C
,/,
who/W
declined/V
to/T
be/V
interviewed/V
,/,
is/V
the/D
Maidenform/N
strategist/N
./.
###/###
Sales/N
have/V
tripled/V
during/I
her/P
21-year/J
tenure/N
to/T
about/R
$/$
200/C
million/C
in/I
1988/C
./.
###/###
Maidenform/N
says/V
it/P
is/V
very/R
profitable/J
but/C
declines/V
to/T
provide/V
specifics/N
./.
###/###
The/D
company/N
sells/V
image/N
./.
###/###
Its/P
current/J
ad/N
campaign/N
,/,
on/I
which/W
Maidenform/N
has/V
spent/V
more/J
than/I
$/$
15/C
million/C
since/I
fall/N
1987/C
,/,
does/V
n't/R
even/R
show/V
its/P
underwear/N
products/N
,/,
but/C
rather/R
men/N
like/I
Christopher/N
Reeve/N
,/,
star/N
of/I
the/D
``/`
Superman/N
''/'
movies/N
,/,
talking/V
about/I
their/P
lingerie/N
turn-ons/N
./.
###/###
The/D
Maidenform/N
name/N
``/`
is/V
part/N
of/I
American/J
pop/N
culture/N
,/,
''/'
says/V
Joan/N
Sinopoli/N
,/,
account/N
supervisor/N
of/I
the/D
campaign/N
by/I
Levine/N
,/,
Huntley/N
,/,
Schmidt/N
&/C
Beaver/N
,/,
a/D
New/N
York/N
ad/N
firm/N
./.
###/###
Maidenform/N
generated/V
such/J
memorable/J
campaigns/N
as/I
``/`
I/P
dreamed/V
I.../:
in/I
my/P
Maidenform/N
bra/N
,/,
''/'
and/C
``/`
The/D
Maidenform/N
woman/N
./.
You/P
never/R
know/V
where/W
she/P
'll/M
turn/V
up/R
./.
''/'
###/###
``/`
Capitalizing/V
on/I
the/D
brand/N
is/V
key/J
,/,
''/'
says/V
Mr./N
Brawer/N
,/,
whose/W
immediate/J
plans/N
include/V
further/J
international/J
expansion/N
and/C
getting/V
better/J
control/N
of/I
distribution/N
outside/I
the/D
U.S/N
./.
###/###
``/`
The/D
intimate/J
apparel/N
industry/N
is/V
perceived/V
to/T
be/V
a/D
growth/N
industry/N
and/C
clearly/R
-LCB-/-
Maidenform/N
-RCB-/-
is/V
a/D
force/N
to/T
be/V
reckoned/V
with/I
,/,
''/'
says/V
David/N
S./N
Leibowitz/N
,/,
a/D
special/J
situations/N
analyst/N
at/I
American/N
Securities/N
Corp./N
in/I
New/N
York/N
./.
###/###
Although/I
working/V
women/N
are/V
``/`
forced/V
to/T
wear/V
the/D
uniform/N
of/I
the/D
day/N
,/,
to/T
retain/V
their/P
femininity/N
they/P
are/V
buying/V
better/J
quality/N
,/,
more/R
upscale/J
intimate/J
apparel/N
,/,
''/'
he/P
said/V
./.
###/###
Although/I
Mr./N
Brawer/N
's/P
appointment/N
as/I
president/N
was/V
long/R
expected/V
,/,
the/D
move/N
on/I
Sept./N
25/C
precipitated/V
the/D
resignation/N
of/I
Alan/N
Lesk/N
as/I
senior/J
vice/N
president/N
of/I
sales/N
and/C
merchandising/N
./.
###/###
Three/C
days/N
later/R
,/,
Mr./N
Lesk/N
was/V
named/V
president/N
and/C
chief/J
executive/J
officer/N
of/I
Olga/N
Co./N
,/,
a/D
competing/V
intimate/J
apparel/N
division/N
of/I
Warnaco/N
Inc/N
./.
###/###
Warnaco/N
also/R
owns/V
Warners/N
,/,
another/D
major/J
intimate/J
apparel/N
maker/N
./.
###/###
Mr./N
Lesk/N
could/M
n't/R
be/V
reached/V
to/T
comment/V
./.
###/###
But/C
Maidenform/N
officials/N
say/V
that/I
after/I
spending/V
24/C
years/N
at/I
Maidenform/N
,/,
Mr./N
Lesk/N
,/,
48/C
,/,
made/V
it/P
clear/J
he/P
wanted/V
the/D
top/J
job/N
./.
###/###
``/`
If/I
you/P
want/V
the/D
presidency/N
of/I
the/D
company/N
,/,
this/D
is/V
n't/R
the/D
firm/N
to/T
work/V
for/I
,/,
''/'
says/V
James/N
Mogan/N
,/,
45/C
,/,
who/W
was/V
named/V
senior/J
vice/N
president/N
of/I
sales/N
,/,
assuming/V
some/D
of/I
the/D
responsibilities/N
of/I
Mr./N
Lesk/N
./.
###/###
The/D
company/N
downplayed/V
the/D
loss/N
of/I
Mr./N
Lesk/N
and/C
split/V
his/P
merchandising/N
responsibilities/N
among/I
a/D
committee/N
of/I
four/C
people/N
./.
###/###
``/`
My/P
style/N
is/V
less/R
informal/J
,/,
''/'
Mr./N
Brawer/N
says/V
./.
###/###
Top/J
officers/N
insist/V
Maidenform/N
's/P
greatest/J
strength/N
is/V
its/P
family/N
ownership/N
./.
###/###
``/`
You/P
ca/M
n't/R
go/V
anywhere/R
in/I
this/D
company/N
and/C
find/V
an/D
organizational/J
chart/N
,/,
''/'
one/P
delights/V
./.
###/###
``/`
It/P
is/V
fun/N
competing/V
as/I
a/D
private/J
company/N
,/,
''/'
Mr./N
Brawer/N
says/V
./.
###/###
You/P
can/M
think/V
long/J
range/N
./.
''/'
###/###
Other/J
major/J
players/N
in/I
intimate/J
apparel/N
apparently/R
feel/V
the/D
same/J
way/N
./.
###/###
Warnaco/N
was/V
taken/V
private/J
by/I
Spectrum/N
Group/N
in/I
1986/C
for/I
about/R
$/$
487/C
million/C
./.
###/###
And/C
last/J
year/N
,/,
Playtex/N
Holdings/N
Inc./N
went/V
private/J
for/I
about/R
$/$
680/C
million/C
./.
###/###
It/P
was/V
then/R
split/V
into/I
Playtex/N
Apparel/N
Inc./N
,/,
the/D
intimate/J
apparel/N
division/N
,/,
and/C
Playtex/N
Family/N
Products/N
Corp./N
,/,
which/W
makes/V
tampons/N
,/,
hair-care/J
items/N
and/C
other/J
products/N
./.
###/###
Publicly/R
traded/V
VF/N
Corp./N
,/,
which/W
owns/V
Vanity/N
Fair/N
,/,
and/C
Sara/N
Lee/N
Corp./N
,/,
which/W
owns/V
Bali/N
Co./N
,/,
are/V
also/R
strong/J
forces/N
in/I
intimate/J
apparel/N
./.
###/###
Buy-out/N
offers/N
for/I
Maidenform/N
are/V
n't/R
infrequent/J
,/,
says/V
Executive/N
Vice/N
President/N
David/N
C./N
Masket/N
,/,
but/C
they/P
are/V
n't/R
taken/V
very/R
seriously/R
./.
###/###
When/W
he/P
gets/V
calls/N
,/,
``/`
I/P
do/V
n't/R
even/R
have/V
to/T
consult/V
''/'
with/I
Mrs./N
Coleman/N
,/,
Mr./N
Masket/N
says/V
./.
###/###
The/D
company/N
could/M
command/V
a/D
good/J
price/N
in/I
the/D
market/N
./.
###/###
``/`
Over/I
the/D
past/N
three/C
and/C
a/D
half/N
years/N
,/,
apparel/N
companies/N
,/,
many/D
of/I
whom/W
have/V
strong/J
brand/N
names/N
,/,
have/V
been/V
bought/V
at/I
about/R
60/C
%/N
of/I
sales/N
,/,
''/'
says/V
Deborah/N
Bronston/N
,/,
Prudential-Bache/N
Securities/N
Inc./N
apparel/N
analyst/N
./.
###/###
Mr./N
Brawer/N
,/,
along/R
with/I
Mrs./N
Coleman/N
and/C
her/P
daughter/N
,/,
Elizabeth/N
,/,
an/D
attorney/N
who/W
is/V
vice/R
chairman/N
,/,
are/V
the/D
family/N
members/N
involved/V
in/I
the/D
operations/N
of/I
Maidenform/N
,/,
which/W
employs/V
about/R
5,000/C
./.
###/###
Mr./N
Brawer/N
's/P
wife/N
,/,
Catherine/N
,/,
and/C
Robert/N
Stroup/N
,/,
Elizabeth/N
's/P
husband/N
,/,
round/V
out/I
the/D
five-member/J
board/N
./.
###/###
Each/D
has/V
an/D
equal/J
vote/N
at/I
the/D
monthly/J
meetings/N
./.
###/###
``/`
We/P
are/V
all/R
very/R
amiable/J
,/,
''/'
Mr./N
Brawer/N
says/V
./.
###/###
Executives/N
say/V
Mrs./N
Coleman/N
is/V
very/R
involved/V
in/I
the/D
day-to-day/J
operations/N
,/,
especially/R
product/N
development/N
./.
###/###
In/I
the/D
late/J
1960s/N
she/P
designed/V
a/D
lightweight/J
stretch/J
bra/N
that/W
boosted/V
sales/N
./.
###/###
Her/P
father/N
,/,
William/N
Rosenthal/N
,/,
designed/V
the/D
then-dress/J
making/V
company/N
's/P
first/J
bra/N
in/I
the/D
1920s/N
,/,
which/W
he/P
said/V
gave/V
women/N
a/D
``/`
maiden/N
form/N
''/'
compared/V
with/I
the/D
``/`
boyish/J
form/N
''/'
they/P
got/V
from/I
the/D
``/`
flat/J
bandages/N
''/'
used/V
for/I
support/N
at/I
the/D
time/N
./.
###/###
While/I
Mr./N
Rosenthal/N
introduced/V
new/J
undergarment/N
designs/N
,/,
his/P
wife/N
,/,
Ida/N
,/,
concentrated/V
on/I
sales/N
and/C
other/J
financial/J
matters/N
./.
###/###
The/D
name/N
Maidenform/N
was/V
coined/V
by/I
a/D
third/J
business/N
partner/N
,/,
Enid/N
Bissett/N
./.
###/###
The/D
company/N
has/V
14/C
plants/N
and/C
distribution/N
facilities/N
in/I
the/D
U.S./N
,/,
Puerto/N
Rico/N
,/,
other/J
parts/N
of/I
the/D
Caribbean/N
and/C
Ireland/N
./.
###/###
Maidenform/N
products/N
are/V
mainly/R
sold/V
at/I
department/N
stores/N
,/,
but/C
the/D
company/N
has/V
quietly/R
opened/V
a/D
retail/J
store/N
of/I
its/P
own/J
in/I
Omaha/N
,/,
Neb./N
,/,
and/C
has/V
24/C
factory/N
outlets/N
,/,
with/I
plans/N
to/T
add/V
more/J
./.
###/###
Before/I
joining/V
Maidenform/N
in/I
1972/C
,/,
Mr./N
Brawer/N
,/,
who/W
holds/V
a/D
doctoral/J
degree/N
in/I
English/N
from/I
the/D
University/N
of/I
Chicago/N
,/,
taught/V
at/I
the/D
University/N
of/I
Wisconsin/N
./.
###/###
As/I
a/D
senior/J
vice/N
president/N
,/,
he/P
has/V
headed/V
the/D
company/N
's/P
designer/N
lingerie/N
division/N
,/,
Oscar/N
de/I
la/D
Renta/N
,/,
since/I
its/P
inception/N
in/I
1988/C
./.
###/###
To/T
maintain/V
exclusivity/N
of/I
that/D
designer/N
line/N
,/,
it/P
is/V
n't/R
labeled/V
with/I
the/D
Maidenform/N
name/N
./.
###/###
While/I
the/D
company/N
has/V
always/R
been/V
family-run/J
,/,
Mr./N
Brawer/N
is/V
n't/R
the/D
first/J
person/N
to/T
marry/V
into/I
the/D
family/N
and/C
subsequently/R
head/V
Maidenform/N
./.
###/###
Mrs./N
Coleman/N
's/P
husband/N
,/,
Joseph/N
,/,
a/D
physician/N
,/,
succeeded/V
Mrs./N
Rosenthal/N
as/I
president/N
and/C
served/V
in/I
that/D
post/N
until/I
his/P
death/N
in/I
1968/C
./.
###/###
China/N
could/M
exhaust/V
its/P
foreign-exchange/N
reserves/N
as/R
early/R
as/I
next/J
year/N
,/,
a/D
Western/J
government/N
report/N
says/V
,/,
unless/I
imports/N
are/V
cut/V
drastically/R
to/T
help/V
narrow/V
the/D
balance-of-payments/J
deficit/N
./.
###/###
According/V
to/T
the/D
report/N
,/,
completed/V
last/J
month/N
,/,
if/I
China/N
's/P
trade/N
gap/N
continues/V
to/T
widen/V
at/I
the/D
pace/N
seen/V
in/I
the/D
first/J
seven/C
months/N
of/I
this/D
year/N
,/,
the/D
reserves/N
would/M
be/V
wiped/V
out/R
either/C
in/I
1990/C
or/C
1991/C
./.
###/###
A/D
country/N
is/V
considered/V
financially/R
healthy/J
if/I
its/P
reserves/N
cover/V
three/C
months/N
of/I
its/P
imports/N
./.
###/###
The/D
$/$
14/C
billion/C
of/I
reserves/N
China/N
had/V
in/I
June/N
would/M
cover/V
just/R
that/R
much/J
./.
###/###
The/D
report/N
by/I
the/D
Western/J
government/N
,/,
which/W
declines/V
to/T
be/V
identified/V
,/,
concludes/V
that/I
``/`
a/D
near-term/J
foreign-exchange/N
payment/N
problem/N
can/M
be/V
avoided/V
only/R
if/I
import/N
growth/N
drops/V
to/T
below/I
5/C
%/N
per/I
annum/N
./.
''/'
###/###
According/V
to/T
Chinese/J
customs/N
figures/N
,/,
import/N
growth/N
has/V
slowed/V
in/I
recent/J
months/N
,/,
dropping/V
to/T
16/C
%/N
in/I
July/N
and/C
7.1/C
%/N
in/I
August/N
from/I
the/D
year-earlier/J
periods/N
,/,
compared/V
with/I
an/D
average/J
growth/N
rate/N
of/I
26/C
%/N
in/I
the/D
first/J
half/N
./.
###/###
But/C
before/I
import/N
growth/N
slowed/V
,/,
China/N
's/P
buying/N
spree/N
in/I
the/D
first/J
half/N
already/R
had/V
taken/V
its/P
toll/N
on/I
foreign-exchange/N
reserves/N
./.
###/###
The/D
$/$
14/C
billion/C
level/N
in/I
June/N
marked/V
a/D
drop/N
from/I
$/$
19/C
billion/C
at/I
the/D
end/N
of/I
April/N
./.
###/###
China/N
's/P
last/J
big/J
import/N
binge/N
sent/V
reserves/N
tumbling/V
to/T
$/$
10.6/C
billion/C
in/I
June/N
1985/C
from/I
$/$
16.6/C
billion/C
the/D
previous/J
September/N
./.
###/###
China/N
might/M
stave/V
off/R
a/D
crisis/N
if/I
it/P
acts/V
as/R
forcefully/R
as/I
it/P
did/V
to/T
arrest/V
the/D
1985/C
decline/N
,/,
when/W
Beijing/N
slammed/V
the/D
brakes/N
on/I
foreign-exchange/N
spending/N
and/C
devalued/V
the/D
currency/N
./.
###/###
But/C
this/D
time/N
,/,
China/N
faces/V
a/D
more/R
difficult/J
battle/N
because/I
of/I
economic/J
forces/N
that/W
have/V
come/V
into/I
play/N
since/I
the/D
Tiananmen/N
Square/N
killings/N
June/N
4/C
./.
###/###
For/I
example/N
,/,
China/N
's/P
hard-currency/N
income/N
is/V
expected/V
to/T
suffer/V
from/I
the/D
big/J
drop/N
in/I
tourist/N
arrivals/N
since/I
June/N
4/C
./.
###/###
Revenue/N
from/I
tourism/N
this/D
year/N
is/V
projected/V
to/T
total/V
$/$
1.3/C
billion/C
,/,
down/R
from/I
$/$
2.2/C
billion/C
last/J
year/N
./.
###/###
Because/I
of/I
this/D
and/C
the/D
huge/J
trade/N
gap/N
,/,
the/D
deficit/N
in/I
China/N
's/P
current/J
account/N
,/,
which/W
measures/V
trade/N
in/I
goods/N
and/C
services/N
plus/C
certain/J
unilateral/J
transfers/N
of/I
funds/N
,/,
is/V
expected/V
to/T
widen/V
sharply/R
from/I
the/D
$/$
3.8/C
billion/C
deficit/N
last/J
year/N
./.
###/###
The/D
Western/J
government/N
report/N
suggests/V
a/D
number/N
of/I
scenarios/N
for/I
China/N
's/P
current-account/J
balance/N
,/,
two/C
of/I
which/W
are/V
considered/V
most/R
likely/R
./.
###/###
In/I
one/C
,/,
imports/N
and/C
exports/N
continue/V
to/T
grow/V
at/I
the/D
respective/J
average/J
rates/N
of/I
25/C
%/N
and/C
5/C
%/N
recorded/V
during/I
the/D
first/J
seven/C
months/N
,/,
and/C
the/D
current-account/J
deficit/N
widens/V
to/T
$/$
13.1/C
billion/C
./.
###/###
In/I
1985/C
,/,
China/N
had/V
a/D
record/J
deficit/N
of/I
$/$
11.4/C
billion/C
./.
###/###
The/D
other/J
scenario/N
assumes/V
that/I
Beijing/N
takes/V
effective/J
actions/N
to/T
curb/V
imports/N
in/I
the/D
coming/J
months/N
./.
###/###
In/I
this/D
case/N
,/,
China/N
would/M
still/R
finish/V
the/D
year/N
with/I
a/D
current-account/J
deficit/N
of/I
$/$
8.7/C
billion/C
,/,
based/V
on/I
projections/N
that/I
imports/N
for/I
all/D
of/I
this/D
year/N
grow/V
20/C
%/N
and/C
exports/V
10/C
%/N
./.
###/###
If/I
China/N
were/V
still/R
on/I
good/J
terms/N
with/I
foreign/J
lenders/N
,/,
it/P
might/M
be/V
able/J
to/T
stem/V
the/D
drain/N
on/I
its/P
foreign-exchange/J
reserves/N
by/I
using/V
some/D
loan/N
funds/N
to/T
offset/V
the/D
current-account/J
deficit/N
./.
###/###
But/C
since/I
June/N
,/,
foreign/J
bankers/N
led/V
by/I
international/J
financial/J
institutions/N
have/V
virtually/R
suspended/V
their/P
new/J
loans/N
to/T
China/N
./.
###/###
Even/R
if/I
borrowing/N
resumes/N
,/,
commercial/J
bankers/N
are/V
n't/R
expected/V
to/T
lend/V
as/R
much/J
as/I
before/R
./.
###/###
In/I
addition/N
,/,
economists/N
are/V
forecasting/V
a/D
slowdown/N
in/I
foreign/J
direct/J
investments/N
as/I
businessmen/N
become/V
increasingly/R
wary/J
of/I
China/N
's/P
deteriorating/V
political/J
and/C
economic/J
environment/N
./.
###/###
On/I
top/N
of/I
all/P
this/D
,/,
foreign-debt/N
repayments/N
are/V
expected/V
to/T
peak/V
in/I
1991/C
to/T
1992/C
./.
###/###
With/I
less/J
capital/N
coming/V
in/R
,/,
China/N
's/P
balance/N
of/I
payments/N
would/M
suffer/V
./.
###/###
The/D
Western/J
government/N
report/N
's/P
first/J
scenario/N
assumes/V
a/D
30/C
%/N
reduction/N
in/I
foreign/J
borrowing/N
and/C
a/D
5/C
%/N
contraction/N
in/I
foreign/J
direct/J
investment/N
./.
###/###
In/I
the/D
second/J
,/,
foreign/J
borrowing/N
is/V
projected/V
to/T
grow/V
10/C
%/N
and/C
investment/N
to/T
drop/V
10/C
%/N
./.
###/###
But/C
in/I
either/D
case/N
,/,
the/D
report/N
says/V
,/,
China/N
's/P
balance/N
of/I
payments/N
would/M
rapidly/R
dry/V
up/R
foreign/J
reserves/N
,/,
which/W
are/V
used/V
to/T
finance/V
the/D
imbalance/N
./.
###/###
In/I
the/D
first/J
scenario/N
,/,
the/D
reserves/N
would/M
be/V
exhausted/V
next/J
year/N
,/,
and/C
in/I
the/D
second/J
they/P
would/M
be/V
wiped/V
out/R
in/I
1991/C
./.
###/###
Roche/N
Holding/N
AG/N
,/,
parent/N
of/I
the/D
Swiss/J
chemical/N
and/C
pharmaceutical/J
group/N
,/,
said/V
its/P
group/N
sales/N
rose/V
22/C
%/N
in/I
the/D
first/J
nine/C
months/N
of/I
the/D
year/N
to/T
7.32/C
billion/C
francs/N
-LRB-/-
$/$
4.51/C
billion/C
-RRB-/-
./.
###/###
The/D
company/N
reported/V
good/J
gains/N
in/I
all/D
of/I
its/P
divisions/N
./.
###/###
Roche/N
also/R
said/V
it/P
expects/V
a/D
``/`
considerable/J
rise/N
''/'
in/I
1989/C
group/N
profit/N
from/I
the/D
641.5/C
million-franc/J
-LRB-/-
$/$
396/C
million/C
-RRB-/-
net/N
in/I
1988/C
./.
###/###
New/N
Canaan/N
Investments/N
Inc./N
said/V
it/P
closed/V
the/D
acquisition/N
of/I
Carr-Lowrey/N
Glass/N
Co./N
from/I
Newell/N
Co./N
,/,
a/D
Freeport/N
,/,
Ill./N
,/,
maker/N
of/I
do-it-yourself/J
home/N
products/N
./.
###/###
Terms/N
were/V
n't/R
disclosed/V
./.
###/###
Carr-Lowrey/N
,/,
a/D
maker/N
of/I
glass/N
bottles/N
for/I
the/D
cosmetics/N
and/C
toiletries/N
industries/N
,/,
had/V
sales/N
last/J
year/N
of/I
about/R
$/$
40/C
million/C
./.
###/###
New/N
Canaan/N
Investments/N
is/V
a/D
closely/R
held/V
investment/N
partnership/N
with/I
interests/N
primarily/R
in/I
the/D
packaging/N
industry/N
./.
###/###
Ralph/N
Brown/N
was/V
31,000/C
feet/N
over/I
Minnesota/N
when/W
both/D
jets/N
on/I
his/P
Falcon/N
20/N
flamed/V
out/R
./.
###/###
At/I
18,000/C
feet/N
,/,
he/P
says/V
,/,
he/P
and/C
his/P
co-pilot/N
``/`
were/V
looking/V
for/I
an/D
interstate/J
or/C
a/D
cornfield/N
''/'
to/T
land/V
./.
###/###
At/I
13,000/C
feet/N
,/,
the/D
engines/N
restarted/V
./.
###/###
But/C
knowing/V
that/I
mechanics/N
would/M
probably/R
ground/V
him/P
for/I
repairs/N
,/,
Mr./N
Brown/N
skipped/V
his/P
stop/N
in/I
nearby/J
Chicago/N
and/C
set/V
course/N
to/T
get/V
his/P
load/N
--/:
a/D
few/J
hundred/C
parcels/N
--/:
to/T
the/D
Memphis/N
package-sorting/N
hub/N
on/I
time/N
./.
###/###
Had/V
he/P
been/V
a/D
little/J
less/R
gung-ho/J
,/,
``/`
I/P
'd/M
have/V
gotten/V
the/D
thing/N
on/I
the/D
ground/N
and/C
headed/V
for/I
the/D
nearest/J
bar/N
,/,
''/'
Mr./N
Brown/N
says/V
./.
###/###
But/C
he/P
flies/V
for/I
Federal/N
Express/N
Corp./N
,/,
perhaps/R
the/D
closest/J
thing/N
in/I
corporate/J
America/N
to/T
the/D
Green/N
Berets/N
./.
###/###
Federal/N
's/P
employees/N
work/V
long/J
hours/N
and/C
seem/V
to/T
thrive/V
on/I
the/D
stress/N
of/I
racing/V
the/D
clock/N
./.
###/###
Like/I
Mr./N
Brown/N
,/,
they/P
sometimes/R
go/V
to/T
surprising/J
lengths/N
to/T
meet/V
that/I
overarching/J
corporate/J
goal/N
:/:
delivering/V
the/D
goods/N
on/I
time/N
./.
###/###
They/P
are/V
a/D
tribute/N
to/T
Federal/N
's/P
management/N
which/W
,/,
since/I
the/D
company/N
's/P
founding/N
16/C
years/N
ago/R
,/,
has/V
had/V
its/P
way/N
with/I
its/P
work/N
force/N
--/:
an/D
unusual/J
feat/N
in/I
the/D
contentious/J
transportation/N
industry/N
./.
###/###
That/D
may/M
soon/R
change/V
./.
###/###
This/D
month/N
,/,
Federal/N
's/P
2,048/C
pilots/N
,/,
including/V
some/D
961/C
acquired/V
along/R
with/I
Tiger/N
International/N
Inc./N
in/I
February/N
,/,
will/M
decide/V
whether/I
to/T
elect/V
the/D
powerful/J
Air/N
Line/N
Pilots/N
Association/N
as/I
their/P
bargaining/N
agent/N
./.
###/###
The/D
election/N
,/,
which/W
would/M
bring/V
the/D
first/J
major/J
union/N
to/T
Federal/N
's/P
U.S./N
operations/N
,/,
has/V
pitted/V
new/J
hires/N
against/I
devoted/J
veterans/N
such/J
as/I
Mr./N
Brown/N
./.
###/###
It/P
has/V
also/R
rattled/V
Federal/N
's/P
strongly/R
anti-union/J
management/N
,/,
which/W
is/V
already/R
contending/V
with/I
melding/V
far-flung/J
operations/N
and/C
with/I
falling/V
profits/N
./.
###/###
``/`
A/D
union/N
,/,
sooner/R
or/C
later/R
,/,
has/V
to/T
have/V
an/D
adversary/N
,/,
and/C
it/P
has/V
to/T
have/V
a/D
victory/N
,/,
''/'
Frederick/N
W./N
Smith/N
,/,
Federal/N
's/P
chairman/N
and/C
chief/J
executive/N
,/,
says/V
with/I
disdain/N
./.
###/###
In/I
our/P
formula/N
,/,
we/P
do/V
n't/R
have/V
any/D
losers/N
except/I
the/D
competition/N
./.
''/'
###/###
What/W
managers/N
really/R
fear/V
is/V
that/I
the/D
pro-union/J
movement/N
could/M
spread/V
beyond/I
the/D
pilots/N
./.
###/###
Under/I
federal/J
transportation/N
law/N
,/,
a/D
government/N
mediator/N
is/V
attempting/V
to/T
reconcile/V
the/D
melding/N
of/I
Tiger/N
's/P
job/N
classifications/N
into/I
Federal/N
's/P
./.
###/###
Depending/V
on/I
the/D
outcome/N
,/,
the/D
merged/J
company/N
may/M
face/V
union/N
elections/N
this/D
fall/N
among/I
airplane/N
mechanics/N
,/,
ramp/N
workers/N
,/,
stock/N
clerks/N
and/C
flight/N
dispatchers/N
./.
###/###
These/D
groups/N
constitute/V
up/I
to/T
10/C
%/N
of/I
its/P
work/N
force/N
./.
###/###
``/`
Unions/N
would/M
have/V
a/D
profound/J
effect/N
on/I
the/D
whole/J
culture/N
of/I
the/D
company/N
,/,
''/'
says/V
Bernard/N
La/N
Londe/N
,/,
a/D
professor/N
at/I
Ohio/N
State/N
University/N
at/I
Columbus/N
and/C
a/D
Federal/N
consultant/N
./.
###/###
That/D
culture/N
,/,
carefully/R
crafted/V
by/I
Mr./N
Smith/N
,/,
leaves/V
little/J
,/,
if/I
any/D
,/,
room/N
for/I
unions/N
./.
###/###
Since/I
founding/V
the/D
company/N
,/,
the/D
charismatic/J
Vietnam/N
vet/N
,/,
who/W
is/V
still/R
only/R
46/C
years/N
old/J
,/,
has/V
fostered/V
an/D
ethos/N
of/I
combat/N
./.
###/###
Flights/N
are/V
``/`
missions/N
./.
''/'
###/###
Mr./N
Smith/N
's/P
managers/N
have/V
,/,
at/I
times/N
,/,
been/V
called/V
``/`
Ho/N
Chi/N
Minh/N
's/P
Guerrillas/N
./.
''/'
###/###
The/D
Bravo/N
Zulu/N
award/N
,/,
the/D
Navy/N
accolade/N
for/I
a/D
``/`
job/N
well/R
done/V
,/,
''/'
is/V
bestowed/V
on/I
Federal/N
's/P
workers/N
who/W
surpass/V
the/D
call/N
of/I
duty/N
./.
###/###
Competitors/N
are/V
known/V
as/I
the/D
``/`
enemy/N
./.
''/'
###/###
To/T
reinforce/V
employees/N
'/P
dedication/N
,/,
Mr./N
Smith/N
pays/V
well/R
./.
###/###
He/P
also/R
lets/V
workers/N
vent/V
steam/N
through/I
an/D
elaborate/J
grievance/N
procedure/N
and/C
,/,
as/I
a/D
perk/J
,/,
fly/V
free/J
in/I
empty/J
cockpit/N
seats/N
./.
###/###
He/P
gives/V
pep/N
talks/N
in/I
periodic/J
``/`
family/N
briefings/N
''/'
beamed/V
internationally/R
on/I
``/`
FXTV/N
,/,
''/'
the/D
company/N
's/P
own/J
television/N
network/N
./.
###/###
And/C
,/,
with/I
many/J
of/I
his/P
70,000/C
workers/N
,/,
Mr./N
Smith/N
's/P
damn-the-torpedoes/J
attitude/N
has/V
caught/V
on/R
./.
###/###
James/N
Cleveland/N
,/,
a/D
courier/N
who/W
earned/V
a/D
Bravo/N
Zulu/N
for/I
figuring/V
out/R
how/W
to/T
get/V
a/D
major/J
customer/N
's/P
1,100-parcel-a-week/J
load/N
to/T
its/P
doorstep/N
by/I
8/C
a.m./N
,/,
considers/V
himself/P
far/R
more/J
than/I
a/D
courier/N
./.
###/###
We/P
do/V
n't/R
just/R
hand/V
the/D
customer/N
the/D
package/N
./.
###/###
That/D
's/V
just/R
the/D
beginning/N
,/,
''/'
he/P
says/V
./.
###/###
In/I
essence/N
,/,
we/P
run/V
the/D
show/N
./.
''/'
###/###
David/N
Sanders/N
,/,
a/D
longtime/J
pilot/N
,/,
bristles/V
at/I
the/D
mere/J
suggestion/N
that/I
a/D
union/N
might/M
tamper/V
with/I
his/P
flight/N
schedule/N
./.
###/###
``/`
This/D
is/V
America/N
,/,
''/'
he/P
says/V
./.
###/###
Nobody/N
has/V
the/D
right/N
to/T
tell/V
me/P
how/W
much/R
I/P
can/M
work/V
./.
''/'
###/###
Such/J
attitudes/N
have/V
given/V
Federal/N
flexibility/N
,/,
not/R
only/R
to/T
rapidly/R
implement/V
new/J
technology/N
but/C
to/T
keep/V
its/P
work/N
force/N
extraordinarily/R
lean/J
./.
###/###
The/D
company/N
deliberately/R
understaffs/V
,/,
stretching/V
employees/N
'/P
schedules/N
to/T
the/D
limit/N
./.
###/###
But/C
though/I
couriers/N
work/V
as/R
many/J
as/I
60/C
hours/N
a/D
week/N
during/I
the/D
autumn/N
rush/N
,/,
they/P
leave/V
early/R
during/I
slack/J
times/N
while/I
still/R
being/V
assured/V
of/I
a/D
minimum/J
paycheck/N
./.
###/###
Pilots/N
,/,
as/I
well/R
,/,
routinely/R
fly/V
overtime/R
to/T
ensure/V
that/I
none/N
are/V
furloughed/V
during/I
seasonal/J
lows/N
./.
###/###
The/D
operational/J
freedom/N
has/V
also/R
given/V
Federal/N
a/D
leg/N
up/R
on/I
archrival/J
United/N
Parcel/N
Service/N
Inc./N
,/,
the/D
nation/N
's/P
largest/J
employer/N
of/I
United/N
Brotherhood/N
of/I
Teamsters/N
members/N
./.
###/###
UPS/N
wo/M
n't/R
discuss/V
its/P
labor/N
practices/N
,/,
but/C
,/,
according/V
to/T
Mr./N
Cleveland/N
,/,
a/D
former/J
UPS/N
employee/N
,/,
and/C
others/N
,/,
union/N
work/N
rules/N
prohibit/V
UPS/N
drivers/N
from/I
doing/V
more/J
than/I
carrying/V
packages/N
between/I
customers/N
and/C
their/P
vans/N
./.
###/###
Because/I
UPS/N
drivers/N
are/V
n't/R
permitted/V
to/T
load/V
their/P
own/J
vehicles/N
at/I
the/D
depot/N
,/,
say/V
these/D
couriers/N
,/,
packages/N
often/R
get/V
buried/V
in/I
the/D
load/N
and/C
are/V
delivered/V
late/R
./.
###/###
Labor/N
problems/N
are/V
the/D
last/J
thing/N
Mr./N
Smith/N
needs/V
right/R
now/R
./.
###/###
Although/I
the/D
Tiger/N
acquisition/N
has/V
brought/V
Federal/N
a/D
long/J
way/N
toward/I
becoming/V
the/D
global/J
player/N
it/P
wants/V
to/T
be/V
,/,
it/P
also/R
has/V
brought/V
problems/N
./.
###/###
It/P
more/R
than/I
doubled/V
Federal/N
's/P
long-term/J
debt/N
to/T
$/$
1.9/C
billion/C
,/,
thrust/V
the/D
company/N
into/I
unknown/J
territory/N
--/:
heavy/J
cargo/N
--/:
and/C
suddenly/R
expanded/V
its/P
landing/N
rights/N
to/T
21/C
countries/N
from/I
four/C
./.
###/###
Federal/N
,/,
on/I
its/P
own/J
,/,
had/V
n't/R
been/V
doing/V
very/R
well/R
overseas/J
./.
###/###
It/P
had/V
hemorrhaged/V
in/I
its/P
attempt/N
to/T
get/V
into/I
Asia/N
,/,
where/W
treaty/N
restrictions/N
forced/V
it/P
to/T
fly/V
some/D
planes/N
half-empty/J
on/I
certain/J
routes/N
./.
###/###
On/I
routes/N
to/T
South/N
America/N
,/,
the/D
company/N
had/V
no/D
backup/N
jets/N
to/T
ensure/V
delivery/N
when/W
planes/N
were/V
grounded/V
./.
###/###
In/I
Europe/N
,/,
business/N
suffered/V
as/I
Federal/N
bought/V
several/J
local/J
companies/N
,/,
only/R
to/T
have/V
the/D
managers/N
quit/V
./.
###/###
These/D
and/C
other/J
problems/N
squeezed/V
Federal/N
's/P
profit/N
margins/N
last/J
year/N
to/T
8/C
%/N
,/,
down/R
from/I
more/J
than/I
13/C
%/N
annually/R
in/I
the/D
first/J
half/D
of/I
the/D
decade/N
./.
###/###
Earnings/N
have/V
plummeted/V
,/,
too/R
,/,
in/I
each/D
of/I
the/D
past/J
three/C
quarters/N
./.
###/###
In/I
the/D
fiscal/J
first/J
period/N
ended/V
Aug./N
31/C
,/,
profit/N
fell/V
54/C
%/N
to/T
$/$
30.4/C
million/C
,/,
or/C
58/C
cents/N
a/D
share/N
,/,
mostly/R
because/I
of/I
the/D
Tiger/N
merger/N
,/,
Federal/N
says/V
./.
###/###
Federal/N
's/P
stock/N
price/N
,/,
however/R
,/,
has/V
held/V
up/R
well/R
,/,
driven/V
in/I
part/N
by/I
the/D
general/J
run-up/N
of/I
airline/N
stocks/N
,/,
analysts/N
say/V
./.
###/###
Since/I
trading/V
as/R
low/J
as/I
$/$
42.25/C
a/D
share/N
in/I
May/N
,/,
Federal/N
's/P
shares/N
have/V
rallied/V
as/R
high/R
as/I
$/$
57.87/C
in/I
New/N
York/N
Stock/N
Exchange/N
composite/J
trading/N
./.
###/###
They/P
closed/V
Friday/N
at/I
$/$
53.25/C
,/,
down/R
50/C
cents/N
on/I
the/D
day/N
./.
###/###
There/E
's/V
a/D
certain/J
irony/N
in/I
the/D
fact/N
that/I
Federal/N
Express/N
faces/V
its/P
first/J
union/N
problems/N
as/I
a/D
result/N
of/I
its/P
Tiger/N
purchase/N
./.
###/###
Tiger/N
itself/P
was/V
founded/V
by/I
a/D
band/N
of/I
gungho/J
airmen/N
who/W
had/V
airlifted/V
supplies/N
``/`
over/I
the/D
Hump/N
''/'
from/I
India/N
to/T
China/N
during/I
World/N
War/N
II/N
./.
###/###
In/I
the/D
early/J
1970s/C
,/,
Mr./N
Smith/N
modeled/V
his/P
fledgling/J
company/N
on/I
Tiger/N
's/P
innovation/N
of/I
hub-and-spoke/J
and/C
containerized-cargo/N
operations/N
./.
###/###
But/C
from/I
early/R
on/R
,/,
Tiger/N
's/P
workers/N
unionized/V
,/,
while/I
Federal/N
's/P
never/R
have/V
./.
###/###
Federal/N
Express/N
officials/N
acknowledge/V
mistakes/N
in/I
their/P
drive/N
overseas/R
but/C
say/V
it/P
will/M
pay/V
off/R
eventually/R
./.
###/###
Analysts/N
expect/V
Federal/N
's/P
earnings/N
to/T
improve/V
again/R
in/I
its/P
fiscal/J
third/J
quarter/N
ending/V
Feb./N
28/C
,/,
when/W
the/D
company/N
should/M
begin/V
benefiting/V
from/I
Tiger/N
's/P
extra/J
flights/N
,/,
back-up/J
planes/N
and/C
landing/N
rights/N
./.
###/###
Until/I
then/R
,/,
they/P
expect/V
the/D
cost/N
of/I
integrating/V
the/D
two/C
carriers/N
to/T
continue/V
crimping/V
profits/N
./.
###/###
For/I
now/R
,/,
the/D
union/N
issue/N
is/V
the/D
most/R
nettlesome/J
of/I
Federal/N
's/P
Tiger/N
problems/N
,/,
management/N
believes/V
./.
###/###
Although/I
encouraging/V
dialogue/N
between/I
managers/N
and/C
workers/N
,/,
Mr./N
Smith/N
does/V
n't/R
countenance/V
what/W
he/P
considers/V
insubordination/N
./.
###/###
When/W
a/D
large/J
group/N
of/I
pilots/N
once/R
signed/V
petitions/N
opposing/V
work-rule/J
and/C
compensation/N
changes/N
,/,
he/P
called/V
a/D
meeting/N
in/I
a/D
company/N
hangar/N
and/C
dressed/V
them/P
down/R
for/I
challenging/J
his/P
authority/N
./.
###/###
He/P
then/R
made/V
most/J
of/I
the/D
changes/N
,/,
pilots/N
say/V
./.
###/###
That/D
sort/N
of/I
approach/N
,/,
however/R
,/,
has/V
n't/R
worked/V
since/I
the/D
addition/N
of/I
Tiger/N
./.
###/###
Its/P
6,500/C
workers/N
,/,
who/W
had/V
battled/V
Tiger/N
's/P
management/N
for/I
years/N
over/I
givebacks/N
,/,
were/V
union/N
members/N
until/I
the/D
day/N
of/I
the/D
merger/N
,/,
when/W
most/J
of/I
their/P
unions/N
were/V
automatically/R
decertified/V
./.
###/###
Soon/R
after/I
the/D
merger/N
,/,
moreover/R
,/,
Federal/N
's/P
management/N
asked/V
Tiger/N
's/P
pilots/N
to/T
sign/V
an/D
agreement/N
stating/V
that/I
they/P
could/M
be/V
fired/V
any/D
time/N
,/,
without/I
cause/N
or/C
notice/N
./.
###/###
When/W
the/D
pilots/N
refused/V
,/,
the/D
company/N
retracted/V
it/P
./.
###/###
Mr./N
Smith/N
angered/V
Federal/N
's/P
pilots/N
,/,
too/R
./.
###/###
In/I
his/P
haste/N
to/T
seal/V
the/D
deal/N
with/I
Tiger/N
Chairman/N
Saul/N
Steinberg/N
last/J
August/N
,/,
Mr./N
Smith/N
ignored/V
a/D
promise/N
that/I
he/P
had/V
made/V
to/T
his/P
own/J
pilots/N
three/C
years/N
ago/R
:/:
that/I
any/D
fliers/N
acquired/V
in/I
future/J
mergers/N
would/M
be/V
``/`
end-tailed/V
''/'
--/:
put/V
at/I
the/D
bottom/N
of/I
the/D
pilot/N
seniority/N
list/N
that/W
determines/V
work/N
schedules/N
,/,
pay/N
and/C
career/N
options/N
./.
###/###
The/D
Tiger/N
merger/N
agreement/N
stipulated/V
that/I
the/D
lists/N
be/V
combined/V
on/I
the/D
basis/N
of/I
tenure/N
./.
###/###
Mr./N
Smith/N
is/V
trying/V
hard/R
to/T
allay/V
the/D
anger/N
./.
###/###
And/C
even/R
some/D
pro-union/J
pilots/N
say/V
his/P
charisma/N
and/C
popularity/N
among/I
the/D
many/J
former/J
military/J
fliers/N
could/M
be/V
tough/J
to/T
beat/V
./.
###/###
``/`
A/D
lot/N
of/I
people/N
are/V
identifying/V
a/D
vote/N
for/I
representation/N
as/I
a/D
vote/N
against/I
Fred/N
Smith/N
,/,
''/'
says/V
J.X./N
Gollich/N
,/,
a/D
Tiger-turned-Federal/J
pilot/N
and/C
union/N
activist/N
./.
###/###
Mr./N
Smith/N
and/C
other/J
top/J
Federal/N
executives/N
have/V
met/V
with/I
Tiger/N
workers/N
in/I
Los/N
Angeles/N
,/,
Ohio/N
,/,
New/N
York/N
,/,
Alaska/N
,/,
Asia/N
and/C
Europe/N
./.
###/###
Recently/R
,/,
they/P
have/V
appeared/V
every/D
few/J
weeks/N
in/I
talk-show/N
type/N
videos/N
,/,
countering/V
pro-union/J
arguments/N
./.
###/###
In/I
one/C
video/N
,/,
Mr./N
Smith/N
defended/V
his/P
agreement/N
to/T
merge/V
the/D
pilot-seniority/N
lists/N
./.
###/###
He/P
said/V
Mr./N
Steinberg/N
had/V
insisted/V
that/I
the/D
merger/N
talks/N
move/V
quickly/R
./.
###/###
Regulators/N
,/,
as/I
well/R
,/,
might/M
have/V
quashed/V
the/D
deal/N
if/I
Tiger/N
's/P
pilots/N
had/V
n't/R
been/V
protected/V
,/,
he/P
said/V
./.
###/###
Furthermore/R
,/,
Mr./N
Smith/N
added/V
,/,
``/`
our/P
contract/N
with/I
our/P
pilots/N
says/V
that/I
we/P
will/M
manage/V
our/P
fleet/N
operations/N
with/I
their/P
advice/N
./.
###/###
It/P
does/V
n't/R
give/V
any/D
particular/J
group/N
the/D
ability/N
to/T
veto/V
change/N
./.
''/'
###/###
Already/R
,/,
the/D
fight/N
has/V
been/V
costly/J
./.
###/###
The/D
seniority-list/N
controversy/N
,/,
along/R
with/I
the/D
job-classification/N
dispute/N
,/,
has/V
been/V
turned/V
over/R
to/T
the/D
mediator/N
./.
###/###
Meanwhile/R
,/,
the/D
company/N
is/V
operating/V
with/I
two/C
separate/J
pilot/N
groups/N
and/C
seniority/N
lists/N
,/,
and/C
that/D
is/V
costing/V
Federal/N
``/`
a/D
big/J
number/N
,/,
''/'
says/V
James/N
Barksdale/N
,/,
executive/J
vice/N
president/N
and/C
chief/N
operating/N
officer/N
./.
###/###
The/D
issue/N
has/V
also/R
cost/V
Federal/N
management/N
a/D
lot/N
of/I
good/J
will/N
among/I
its/P
old/J
pilots/N
./.
###/###
``/`
They/P
were/V
willing/J
to/T
mistreat/V
us/P
because/I
we/P
had/V
n't/R
shown/V
any/D
moxie/N
,/,
any/D
resistance/N
,/,
''/'
says/V
William/N
Queenan/N
,/,
a/D
DC-10/N
pilot/N
and/C
14-year/J
Federal/N
veteran/N
./.
###/###
Adds/N
John/N
Poag/N
,/,
a/D
727/N
captain/N
and/C
past/J
chairman/N
of/I
the/D
company-sponsored/J
Flight/N
Advisory/N
Board/N
:/:
``/`
They/P
've/V
made/V
all/P
these/D
magnanimous/J
gestures/N
to/T
the/D
Flying/N
Tiger/N
pilots/N
,/,
and/C
for/I
us/P
,/,
nothing/N
./.
''/'
###/###
Such/J
animosity/N
could/M
prove/V
pivotal/J
in/I
the/D
union/N
vote/N
./.
###/###
A/D
large/J
majority/N
of/I
the/D
961/C
former/J
Tiger/N
fliers/N
support/V
the/D
union/N
,/,
according/V
to/T
a/D
union/N
study/N
./.
###/###
But/C
though/I
most/J
of/I
the/D
1,087/C
Federal/N
pilots/N
are/V
believed/V
opposed/V
,/,
it/P
is/V
unclear/J
just/R
how/W
much/R
their/P
loyalty/N
to/T
Mr./N
Smith/N
has/V
been/V
eroded/V
./.
###/###
The/D
fight/N
has/V
turned/V
ugly/J
and/C
,/,
among/I
pilots/N
at/I
least/J
,/,
has/V
shattered/V
the/D
esprit/F
de/F
corps/F
that/I
Mr./N
Smith/N
worked/V
so/R
hard/R
to/T
build/V
./.
###/###
Anti-union/J
pilots/N
have/V
held/V
ballot-burning/J
parties/N
./.
###/###
Some/D
younger/J
pilots/N
say/V
they/P
have/V
had/V
to/T
endure/V
anti-union/J
harangues/N
by/I
senior/J
pilots/N
while/I
flying/V
across/I
the/D
country/N
./.
###/###
And/C
for/I
now/R
,/,
at/I
least/J
,/,
the/D
competition/N
is/V
n't/R
the/D
only/J
enemy/N
./.
###/###
Barney/N
Barnhardt/N
,/,
a/D
727/N
captain/N
and/C
leader/N
of/I
the/D
pro-union/J
forces/N
,/,
said/V
he/P
has/V
received/V
two/C
anonymous/J
death/N
threats/N
and/C
been/V
challenged/V
to/T
a/D
fight/N
with/I
tire/N
irons/N
by/I
a/D
colleague/N
./.
###/###
``/`
The/D
pilots/N
are/V
either/C
for/I
us/P
or/C
extremely/R
against/I
us/P
,/,
''/'
he/P
says/V
with/I
a/D
sigh/N
./.
###/###
Harsco/N
Corp./N
said/V
it/P
obtained/V
a/D
$/$
33.1/C
million/C
export/N
order/N
for/I
armored/J
recovery/N
vehicles/N
and/C
related/J
support/N
equipment/N
./.
###/###
Harsco/N
declined/V
to/T
say/V
what/W
country/N
placed/V
the/D
order/N
./.
###/###
The/D
company/N
said/V
it/P
received/V
an/D
order/N
for/I
23/C
of/I
the/D
vehicles/N
,/,
which/W
retrieve/V
tanks/N
and/C
other/J
heavy-tracked/J
vehicles/N
when/W
they/P
break/V
down/R
or/C
are/V
damaged/V
,/,
and/C
an/D
option/N
for/I
16/C
more/J
./.
###/###
Delivery/N
is/V
to/T
begin/V
in/I
early/J
1991/C
./.
###/###
Harsco/N
produces/V
products/N
for/I
defense/N
,/,
industrial/J
,/,
commercial/J
and/C
construction/N
markets/N
./.
###/###
The/D
Senate/N
convicted/V
U.S./N
District/N
Judge/N
Alcee/N
Hastings/N
of/I
Florida/N
of/I
eight/C
impeachment/N
articles/N
,/,
removing/V
the/D
53-year-old/J
judge/N
from/I
his/P
$/$
89,500-a-year/J
,/,
lifetime/N
job/N
./.
###/###
Mr./N
Hastings/N
's/P
case/N
was/V
particularly/R
nettlesome/J
because/I
it/P
marked/V
the/D
first/J
time/N
a/D
federal/J
official/N
was/V
impeached/V
and/C
removed/V
from/I
office/N
on/I
charges/N
of/I
which/W
a/D
jury/N
had/V
acquitted/V
him/P
./.
###/###
In/I
1983/C
,/,
Mr./N
Hastings/N
was/V
found/V
not/R
guilty/J
of/I
accepting/V
a/D
$/$
150,000/C
bribe/N
in/I
a/D
case/N
before/I
him/P
,/,
the/D
central/J
charge/N
on/I
which/W
the/D
Senate/N
convicted/V
him/P
./.
###/###
He/P
was/V
only/R
the/D
sixth/J
federal/J
judge/N
ever/R
ousted/V
from/I
office/N
after/I
an/D
impeachment/N
trial/N
./.
###/###
With/I
no/D
floor/N
debate/N
,/,
the/D
Senate/N
on/I
Friday/N
voted/V
69-26/C
to/T
convict/V
Mr./N
Hastings/N
of/I
perjury/N
and/C
conspiring/V
to/T
accept/V
a/D
bribe/N
,/,
five/C
votes/N
more/J
than/I
needed/V
./.
###/###
Conviction/N
on/I
any/D
single/J
impeachment/N
article/N
was/V
enough/J
to/T
remove/V
Judge/N
Hastings/N
from/I
office/N
./.
###/###
He/P
was/V
found/V
not/R
guilty/J
of/I
three/C
charges/N
,/,
involving/V
accusations/N
that/I
he/P
had/V
improperly/R
disclosed/V
information/N
about/I
a/D
sensitive/J
,/,
government/N
investigation/N
./.
###/###
The/D
Senate/N
did/V
n't/R
vote/V
on/I
six/C
lesser/J
charges/N
./.
###/###
Although/I
Mr./N
Hastings/N
had/V
been/V
acquitted/V
by/I
a/D
jury/N
,/,
lawmakers/N
handling/V
the/D
prosecution/N
in/I
Congress/N
had/V
argued/V
that/I
the/D
purpose/N
of/I
impeachment/N
is/V
n't/R
to/T
punish/V
an/D
individual/N
./.
###/###
Instead/R
,/,
they/P
argued/V
that/I
impeachment/N
aims/V
to/T
protect/V
public/J
institutions/N
from/I
people/N
who/W
have/V
abused/V
their/P
positions/N
of/I
trust/N
,/,
irrespective/R
of/I
the/D
outcome/N
of/I
prior/J
criminal/J
or/C
civil/J
cases/N
./.
###/###
Mr./N
Hastings/N
faced/V
the/D
senators/N
and/C
sat/V
impassively/R
during/I
the/D
first/J
two/C
roll-call/J
votes/N
,/,
then/R
quickly/R
left/V
the/D
chamber/N
./.
###/###
In/I
an/D
impromptu/J
news/N
conference/N
on/I
the/D
Capitol/N
steps/N
,/,
he/P
denounced/V
the/D
senators/N
'/P
action/N
./.
###/###
``/`
Their/P
opinion/N
is/V
devoid/J
of/I
the/D
wisdom/N
of/I
the/D
forefathers/N
'/P
teaching/N
regarding/V
impeachment/N
,/,
''/'
Mr./N
Hastings/N
said/V
./.
###/###
For/I
the/D
future/N
,/,
he/P
said/V
he/P
would/M
run/V
for/I
governor/N
of/I
Florida/N
./.
###/###
Mr./N
Hastings/N
was/V
appointed/V
to/T
the/D
federal/J
bench/N
by/I
President/N
Carter/N
in/I
1979/C
and/C
was/V
one/C
of/I
the/D
few/J
black/J
federal/J
judges/N
in/I
the/D
country/N
./.
###/###
While/I
he/P
packed/V
the/D
Senate/N
gallery/N
with/I
his/P
supporters/N
during/I
some/D
of/I
the/D
impeachment/N
trial/N
,/,
most/J
civil/J
rights/N
groups/N
kept/V
their/P
distance/N
from/I
his/P
case/N
./.
###/###
Following/V
the/D
impeachment/N
conviction/N
,/,
Dr./N
Benjamin/N
Hooks/N
,/,
executive/J
director/N
of/I
the/D
National/N
Association/N
for/I
the/D
Advancement/N
of/I
Colored/N
People/N
,/,
issued/V
a/D
restrained/J
statement/N
,/,
warning/V
that/I
the/D
Hastings/N
case/N
could/M
set/V
a/D
``/`
dangerous/J
precedent/N
,/,
''/'
but/C
adding/V
,/,
``/`
We/P
must/M
respect/V
the/D
considered/J
judgment/N
of/I
the/D
Senate/N
./.
###/###
When/W
last/R
we/P
left/V
him/P
,/,
FBI/N
Agent/N
Nick/N
Mancuso/N
had/V
solved/V
a/D
murder/N
mystery/N
,/,
unraveled/V
a/D
Washington/N
political/J
scandal/N
,/,
and/C
racked/V
up/R
some/D
pretty/J
good/J
ratings/N
numbers/N
in/I
the/D
miniseries/N
``/`
Favorite/N
Son/N
./.
''/'
###/###
What/W
next/R
for/I
the/D
crusty/J
FBI/N
agent/N
with/I
the/D
heart/N
of/I
gold/N
?/.
###/###
A/D
spinoff/N
series/N
,/,
of/I
course/N
./.
###/###
There/E
are/V
plenty/N
of/I
worse/J
inspirations/N
for/I
shows/N
--/:
and/C
most/J
of/I
them/P
had/V
already/R
made/V
the/D
fall/N
lineup/N
:/:
a/D
nun/N
raising/V
some/D
lovable/J
orphans/N
./.
###/###
A/D
den/N
mother/N
raising/V
some/D
lovable/J
teen/N
models/N
./.
###/###
A/D
bunch/N
of/I
tans/N
and/C
bathing/N
suits/N
posing/V
as/I
lovable/J
lifeguards/N
./.
###/###
In/I
that/D
context/N
,/,
Robert/N
Loggia/N
's/P
riveting/J
performance/N
as/I
the/D
unlovable/J
--/:
even/R
crotchety/J
--/:
veteran/J
agent/N
seems/V
a/D
better/J
franchise/N
for/I
a/D
series/N
than/I
most/J
./.
###/###
Week/N
by/I
week/N
on/I
``/`
Mancuso/N
FBI/N
''/'
-LRB-/-
NBC/N
,/,
Fridays/N
,/,
10/C
p.m/R
./.
ET/N
-RRB-/-
,/,
he/P
pokes/V
around/I
the/D
crime/N
styles/N
of/I
the/D
rich/J
,/,
famous/J
and/C
powerful/J
of/I
the/D
Washington/N
scene/N
--/:
a/D
loose/J
cannon/N
on/I
deck/N
at/I
the/D
FBI/N
./.
###/###
Over/I
the/D
first/J
few/J
weeks/N
,/,
``/`
Mancuso/N
FBI/N
''/'
has/V
sprung/V
straight/R
from/I
the/D
headlines/N
,/,
which/W
is/V
either/R
a/D
commendable/J
stab/N
at/I
topicality/N
,/,
or/C
a/D
lack/N
of/I
imagination/N
,/,
or/C
both/D
./.
###/###
The/D
opening/V
show/N
featured/V
a/D
secretary/N
of/I
defense/N
designate/J
accused/V
of/I
womanizing/V
-LRB-/-
a/F
la/F
John/N
Tower/N
-RRB-/-
./.
###/###
When/W
his/P
secretary/N
is/V
found/V
floating/V
dead/J
in/I
the/D
pol/N
's/P
pool/N
,/,
Mancuso/N
is/V
called/V
in/R
to/T
investigate/V
./.
###/###
Last/J
week/N
,/,
a/D
young/J
black/J
girl/N
claimed/V
she/P
had/V
been/V
raped/V
by/I
a/D
white/J
police/N
officer/N
-LRB-/-
a/F
la/F
Tawana/N
Brawley/N
-RRB-/-
./.
###/###
In/I
this/D
week/N
's/P
show/N
,/,
there/E
's/V
an/D
unsafe/J
nuclear/J
weaponsmaking/N
facility/N
-LRB-/-
a/F
la/F
Rocky/N
Flats/N
-RRB-/-
./.
###/###
Along/I
the/D
way/N
,/,
we/P
're/V
introduced/V
to/T
the/D
supporting/J
cast/N
:/:
a/D
blond/J
bombshell/N
secretary/N
-LRB-/-
Randi/N
Brazen/N
--/:
her/P
real/J
name/N
,/,
honest/J
-RRB-/-
,/,
a/D
scheming/J
young/J
boss/N
-LRB-/-
Fredric/N
Lehne/N
-RRB-/-
,/,
another/D
blonde/J
bombshell/N
who/W
's/V
also/R
an/D
idealistic/J
lawyer/N
-LRB-/-
Lindsay/N
Frost/N
-RRB-/-
,/,
and/C
a/D
forensics/N
expert/N
-LRB-/-
Charles/N
Siebert/N
-RRB-/-
./.
###/###
If/I
all/D
of/I
this/D
seems/V
a/D
little/J
stale/J
,/,
it/P
's/V
redeemed/V
in/I
part/N
by/I
some/D
tricky/J
plot/N
twists/N
:/:
The/D
usual/J
suspects/N
are/V
found/V
to/T
be/V
guilty/J
,/,
then/R
not/R
guilty/J
,/,
then/R
guilty/J
--/:
but/C
of/I
a/D
different/J
crime/N
./.
###/###
In/I
last/J
week/N
's/P
rape/N
case/N
,/,
for/I
example/N
,/,
the/D
girl/N
turns/V
out/R
to/T
have/V
been/V
a/D
victim/N
of/I
incest/N
,/,
and/C
the/D
biggest/J
villains/N
are/V
the/D
politicians/N
who/W
exploit/V
the/D
case/N
./.
-RRB-/-
###/###
Most/R
of/I
all/D
though/R
,/,
the/D
show/N
is/V
redeemed/V
by/I
the/D
character/N
of/I
Mancuso/N
./.
###/###
What/W
makes/V
the/D
veteran/J
FBI/N
man/N
so/R
endearing/J
is/V
his/P
hard-bitten/J
cynicism/N
--/:
earned/V
,/,
we/P
discover/V
,/,
when/W
he/P
was/V
assigned/V
to/T
the/D
civil/J
rights/N
movement/N
back/R
in/I
the/D
1960s/N
./.
###/###
He/P
was/V
n't/R
protecting/V
the/D
Freedom/N
Marchers/N
;/:
he/P
was/V
tailing/V
them/P
as/I
subversives/N
./.
###/###
This/D
is/V
not/R
the/D
``/`
Mississippi/N
Burning/N
''/'
scenario/N
that/W
thrills/V
his/P
young/J
colleagues/N
:/:
``/`
Kid/N
,/,
you/P
've/V
been/V
reading/V
Classic/N
Comics/N
too/R
long/J
,/,
''/'
Mancuso/N
says/V
./.
###/###
Back/R
in/I
1964/C
,/,
the/D
FBI/N
had/V
five/C
black/J
agents/N
./.
###/###
Three/C
were/V
chauffeurs/N
for/I
J./N
Edgar/N
Hoover/N
,/,
and/C
two/C
cleaned/V
his/P
house/N
./.
''/'
###/###
At/I
the/D
core/N
of/I
Mr./N
Loggia/N
's/P
Mancuso/N
is/V
his/P
world-weary/J
truculence/N
./.
###/###
He/P
describes/V
a/D
reporter/N
as/I
``/`
Miss/N
First/N
Amendment/N
./.
''/'
###/###
He/P
describes/V
a/D
drowned/J
corpse/N
as/I
``/`
Esther/N
Williams/N
./.
''/'
###/###
And/C
when/W
he/P
's/V
told/V
``/`
Try/V
a/D
little/J
tenderness/N
,/,
''/'
he/P
shoots/V
back/R
``/`
I/P
'm/V
going/V
home/R
to/T
try/V
a/D
little/J
linguine/N
./.
''/'
###/###
Yet/C
for/I
all/P
his/P
cynicism/N
,/,
he/P
's/V
at/I
heart/N
a/D
closet/N
idealist/N
,/,
a/D
softy/N
with/I
a/D
secret/J
crush/N
on/I
truth/N
,/,
justice/N
and/C
the/D
American/N
Way/N
./.
###/###
He/P
's/V
the/D
kind/N
of/I
guy/N
who/W
rescues/V
trampled/J
flags/N
./.
###/###
If/I
``/`
Mancuso/N
FBI/N
''/'
has/V
an/D
intriguing/J
central/J
character/N
,/,
it/P
also/R
has/V
a/D
major/J
flaw/N
:/:
It/P
's/V
wildly/R
overwritten/J
./.
###/###
Executive/N
Producers/N
Steve/N
Sohmer/N
and/C
Jeff/N
Bleckner/N
-LRB-/-
and/C
Ken/N
Solarz/N
and/C
Steve/N
Bello/N
-RRB-/-
have/V
revved/V
this/D
show/N
up/R
to/T
the/D
breaking/N
point/N
./.
###/###
To/T
start/V
,/,
there/E
's/V
always/R
a/D
crisis/N
--/:
and/C
someone/N
always/R
worries/V
,/,
``/`
What/W
if/I
the/D
press/N
gets/V
a/D
hold/N
of/I
this/D
?/.
''/'
###/###
At/I
least/J
once/R
an/D
episode/N
we/P
see/V
protestors/N
marching/V
around/R
screaming/V
slogans/N
./.
###/###
At/I
least/J
once/R
Mancuso/N
's/P
boss/N
yells/V
``/`
In/I
here/R
--/:
now/R
,/,
''/'
and/C
proceeds/V
to/T
dress/V
his/P
investigator/N
down/R
:/:
``/`
You/P
are/V
a/D
dinosaur.../:
a/D
hangover/N
in/I
a/D
$/$
10/C
suit/N
./.
###/###
One/C
more/J
word/N
and/C
you/P
are/V
out/I
on/I
a/D
park/N
bench/N
,/,
mister/N
./.
''/'
###/###
Finally/R
,/,
of/I
course/N
,/,
the/D
boss/N
gives/V
in/R
,/,
but/C
he/P
's/V
still/R
yelling/V
:/:
``/`
I/P
find/V
myself/P
explaining/V
anything/N
to/T
Teddy/N
Kennedy/N
,/,
you/P
'll/M
be/V
chasing/V
stolen/J
cars/N
in/I
Anchorage/N
./.
''/'
###/###
In/I
fact/N
,/,
throughout/I
``/`
Mancuso/N
FBI/N
,/,
''/'
we/P
do/V
n't/R
get/V
words/N
or/C
lines/N
--/:
we/P
get/V
speeches/N
./.
###/###
Witnesses/N
shout/V
,/,
scream/V
,/,
pontificate/V
:/:
``.../:
a/D
dream/N
that/I
the/D
planet/N
could/M
be/V
saved/V
from/I
itself/P
and/C
from/I
the/D
sadistic/J
dumb/J
creatures/N
who/W
try/V
to/T
tear/V
down/R
every/D
decent/J
man/N
who/W
raises/V
his/P
voice/N
./.
''/'
###/###
And/C
Mancuso/N
himself/P
is/V
investigating/V
at/I
the/D
top/N
of/I
his/P
lungs/N
:/:
``/`
How/W
the/D
hell/N
can/M
you/P
live/V
with/I
yourself/P
?/.
''/'
he/P
erupts/V
at/I
a/D
politician/N
./.
###/###
You/P
twist/V
people/N
's/P
trust/N
./.
###/###
You/P
built/V
your/P
career/N
on/I
prejudice/N
and/C
hate/N
./.
###/###
The/D
scars/N
will/M
be/V
here/R
years/N
after/I
the/D
polls/N
close/V
./.
''/'
###/###
In/I
each/D
show/N
,/,
Mancuso/N
gets/V
to/T
unleash/V
similar/J
harangues/N
:/:
``/`
Where/W
the/D
hell/N
are/V
they/P
gon/V
na/T
live/V
when/W
people/N
like/I
you/P
turn/V
the/D
world/N
into/I
a/D
big/J
toxic/J
waste/N
dump/N
?/.
###/###
You/P
're/V
the/D
real/J
criminal/J
here.../:
and/C
what/W
you/P
did/V
was/V
n't/R
just/R
a/D
murder/N
--/:
it/P
was/V
a/D
crime/N
against/I
humanity/N
./.
''/'
###/###
And/C
,/,
at/I
least/J
once/R
a/D
show/N
,/,
someone/N
delivers/V
the/D
line/N
``/`
Get/V
off/I
that/D
soapbox/N
./.
''/'
###/###
Now/R
that/I
's/V
advice/N
the/D
writers/N
should/M
take/V
to/T
heart/N
./.
###/###
They/P
have/V
a/D
series/N
with/I
a/D
good/J
character/N
,/,
some/D
interesting/J
,/,
even/R
occasionally/R
surprising/J
plot/N
lines/N
,/,
and/C
they/P
're/V
ruining/V
it/P
./.
###/###
Why/W
,/,
when/W
a/D
key/J
witness/N
disappears/V
,/,
does/V
Mancuso/N
trash/V
her/P
apartment/N
,/,
tearing/V
down/I
drapes/N
,/,
smashing/V
walls/N
?/.
###/###
It/P
's/V
a/D
bizarre/J
and/C
totally/R
inappropriate/J
reaction/N
,/,
all/D
to/T
add/V
more/J
pizzazz/N
to/T
a/D
script/N
that/W
's/V
already/R
overdosing/V
on/I
pizzazz/N
./.
###/###
That/D
's/V
not/R
plot/N
./.
###/###
That/D
's/V
not/R
character/N
./.
###/###
That/D
's/V
hyperventilating/N
./.
###/###
There/E
is/V
a/D
scene/N
at/I
the/D
end/N
of/I
the/D
first/J
week/N
's/P
show/N
where/W
Mancuso/N
attends/V
the/D
unveiling/N
of/I
the/D
memorial/N
to/T
his/P
dead/J
partner/N
David/N
./.
###/###
Asked/V
to/T
say/V
a/D
few/J
words/N
,/,
he/P
pulls/V
out/R
his/P
crumpled/J
piece/N
of/I
paper/N
and/C
tries/V
to/T
talk/V
,/,
but/C
he/P
's/V
too/R
choked/V
up/R
to/T
get/V
the/D
words/N
out/R
./.
###/###
He/P
bangs/V
on/I
the/D
piece/N
of/I
paper/N
in/I
frustration/N
,/,
then/R
turns/V
and/C
walks/V
away/R
./.
###/###
It/P
was/V
a/D
profoundly/R
moving/J
moment/N
for/I
series/N
television/N
,/,
and/C
Robert/N
Loggia/N
's/P
acting/N
resonated/V
in/I
the/D
silence/N
./.
###/###
There/E
's/V
a/D
pretty/R
good/J
program/N
inside/I
all/P
the/D
noise/N
of/I
``/`
Mancuso/N
FBI/N
./.
''/'
###/###
If/I
the/D
show/N
's/P
creators/N
could/M
just/R
let/V
themselves/P
be/V
quiet/J
for/I
a/D
little/J
,/,
they/P
might/M
just/R
hear/V
it/P
./.
###/###
With/I
a/D
Twist/N
of/I
the/D
Wrist/N
Boys/N
with/I
tops/N
,/,
and/C
Frisbee/N
tossers/N
,/,
And/C
P.R./N
types/N
with/I
bees/N
in/I
their/P
bonnet/N
,/,
Have/V
a/D
goal/N
in/I
common/J
,/,
all/D
of/I
them/P
try/V
To/T
put/V
the/D
right/J
spin/N
on/I
it/P
./.
###/###
--/:
George/N
O./N
Ludcke/N
./.
###/###
Investment/N
letters/N
now/R
abound/V
,/,
I/P
really/R
like/V
to/T
read/V
them/P
;/:
If/I
I/P
peruse/V
enough/N
,/,
I/P
've/V
found/V
I/P
've/V
no/D
time/N
left/V
to/T
heed/V
them/P
###/###
--/:
Bern/N
Sharfman/N
./.
###/###
TV/N
evangelist/N
:/:
salesparson/N
./.
###/###
--/:
Marguerite/N
Whitley/N
May/N
./.
###/###
Texaco/N
Inc./N
has/V
purchased/V
an/D
oil-producing/J
company/N
in/I
Texas/N
for/I
$/$
476.5/C
million/C
,/,
its/P
first/J
major/J
acquisition/N
since/I
its/P
legal/J
brawl/N
with/I
Pennzoil/N
Co./N
began/V
more/J
than/I
four/C
years/N
ago/R
./.
###/###
The/D
White/N
Plains/N
,/,
N.Y./N
,/,
oil/N
company/N
said/V
Friday/N
that/I
it/P
had/V
acquired/V
Tana/N
Production/N
Corp./N
,/,
a/D
subsidiary/N
of/I
TRT/N
Energy/N
Holdings/N
Inc./N
,/,
for/I
$/$
95.1/C
million/C
in/I
cash/N
,/,
with/I
the/D
rest/N
to/T
be/V
paid/V
in/I
shares/N
of/I
a/D
new/J
,/,
non-voting/J
issue/N
of/I
preferred/J
stock/N
./.
###/###
Tana/N
,/,
which/W
holds/V
properties/N
in/I
17/C
oil/N
and/C
gas/N
fields/N
in/I
south/J
Texas/N
,/,
will/M
provide/V
Texaco/N
with/I
mostly/R
gas/N
reserves/N
./.
###/###
The/D
fields/N
contain/V
recoverable/J
reserves/N
of/I
435/C
billion/C
cubic/J
feet/N
of/I
natural/J
gas/N
and/C
four/C
million/C
barrels/N
of/I
oil/N
./.
###/###
``/`
This/D
acquisition/N
is/V
another/D
indication/N
of/I
Texaco/N
's/P
commitment/N
to/T
increase/V
the/D
company/N
's/P
reserve/N
base/N
,/,
''/'
said/V
Chief/N
Executive/N
Officer/N
James/N
W./N
Kinnear/N
./.
###/###
Texaco/N
has/V
also/R
been/V
attempting/V
to/T
sell/V
oil/N
properties/N
./.
###/###
At/I
least/J
two/C
years/N
ago/R
,/,
the/D
company/N
put/V
60/C
million/C
barrels/N
of/I
oil/N
reserves/N
on/I
the/D
block/N
./.
###/###
They/P
were/V
either/C
too/R
small/J
or/C
uneconomic/J
to/T
maintain/V
,/,
the/D
company/N
said/V
./.
###/###
Not/R
all/D
of/I
those/D
parcels/N
have/V
yet/R
been/V
sold/V
./.
###/###
Texaco/N
acquired/V
Tana/N
before/I
it/P
completed/V
those/D
sales/N
because/I
Tana/N
's/P
properties/N
are/V
high/J
quality/N
and/C
near/I
other/J
fields/N
Texaco/N
already/R
owns/V
,/,
a/D
company/N
spokeswoman/N
said/V
./.
###/###
Texaco/N
,/,
like/I
many/J
other/J
oil/N
companies/N
,/,
has/V
been/V
struggling/V
to/T
replace/V
its/P
falling/V
oil/N
and/C
gas/N
reserves/N
./.
###/###
Texaco/N
's/P
situation/N
had/V
become/V
particularly/R
complex/J
because/I
much/J
of/I
its/P
effort/N
had/V
for/I
years/N
been/V
focused/V
on/I
its/P
brawl/N
with/I
Pennzoil/N
and/C
then/R
on/I
New/N
York/N
investor/N
Carl/N
C./N
Icahn/N
's/P
attempt/N
to/T
take/V
over/R
the/D
company/N
./.
###/###
Pennzoil/N
had/V
sued/V
Texaco/N
for/I
improperly/R
interfering/V
with/I
its/P
acquisition/N
of/I
a/D
portion/N
of/I
Getty/N
Oil/N
Co/N
./.
###/###
Eventually/R
,/,
Texaco/N
,/,
which/W
was/V
forced/V
into/I
bankruptcy/N
proceedings/N
by/I
that/D
litigation/N
,/,
settled/V
its/P
fight/N
with/I
Pennzoil/N
for/I
$/$
3/C
billion/C
in/I
1986/C
./.
###/###
Mr./N
Icahn/N
,/,
who/W
played/V
a/D
key/J
role/N
in/I
the/D
settlement/N
and/C
attempted/V
subsequently/R
to/T
take/V
control/N
of/I
the/D
company/N
,/,
sold/V
his/P
stake/N
in/I
Texaco/N
just/R
last/J
summer/N
./.
###/###
Completion/N
of/I
Texaco/N
's/P
acquisition/N
of/I
Tana/N
is/V
subject/J
to/T
government/N
approval/N
under/I
the/D
Hart-Scott-Rodino/N
Antitrust/N
Improvements/N
Act/N
./.
###/###
CRI/N
Inc./N
said/V
it/P
reduced/V
the/D
estimated/V
cash/N
distribution/N
for/I
its/P
Capital/N
Housing/N
and/C
Mortgage/N
Partners/N
Inc./N
trust/N
to/T
between/I
71/C
cents/N
and/C
74/C
cents/N
a/D
share/N
,/,
from/I
between/I
75/C
cents/N
and/C
80/C
cents/N
,/,
for/I
the/D
year/N
ending/V
June/N
9/C
,/,
1990/C
./.
###/###
The/D
change/N
in/I
expected/J
cash/N
distributions/N
from/I
the/D
Champs/N
real/J
estate/N
investment/N
trust/N
stems/V
from/I
a/D
revised/V
estimate/N
of/I
administrative/J
costs/N
,/,
said/V
Jay/N
R./N
Cohen/N
,/,
Champs/N
executive/N
vice/N
president/N
./.
###/###
CRI/N
,/,
which/W
sponsors/V
Champs/N
,/,
is/V
a/D
world-wide/J
real/J
estate/N
investment/N
firm/N
./.
###/###
H&R/N
BLOCK/N
Inc./N
had/V
net/J
income/N
of/I
$/$
100.2/C
million/C
,/,
or/C
$/$
1.90/C
a/D
share/N
,/,
in/I
the/D
fiscal/J
year/N
ended/V
April/N
30/C
./.
###/###
The/D
figure/N
was/V
incorrectly/R
shown/V
as/I
a/D
net/J
loss/N
in/I
a/D
chart/N
accompanying/V
Friday/N
's/P
Heard/V
on/I
the/D
Street/N
column/N
./.
###/###
Your/P
Oct./N
2/C
article/N
on/I
Daniel/N
Yankelovich/N
cited/V
the/D
quote/N
``/`
A/D
good/J
name/N
is/V
better/J
than/I
great/J
riches/N
''/'
as/I
being/V
from/I
Cervantes/N
'/P
``/`
Don/N
Quixote/N
./.
''/'
###/###
Actually/R
,/,
Cervantes/N
borrowed/V
that/I
quote/N
from/I
a/D
writer/N
of/I
some/D
25/C
centuries/N
earlier/R
:/:
Israel/N
's/P
King/N
Solomon/N
wrote/V
those/D
words/N
in/I
the/D
Book/N
of/I
Proverbs/N
-LRB-/-
22:1/C
-RRB-/-
./.
###/###
Michael/N
E./N
Hill/N
###/###
Japan/N
had/V
an/D
unadjusted/J
trade/N
surplus/N
of/I
$/$
1.82/C
billion/C
for/I
the/D
first/J
10/C
days/N
of/I
October/N
,/,
down/R
from/I
$/$
3.16/C
billion/C
a/D
year/N
earlier/R
,/,
the/D
Finance/N
Ministry/N
said/V
./.
###/###
The/D
latest/J
drop/N
shows/V
the/D
narrowing/N
in/I
the/D
nation/N
's/P
trade/N
gap/N
reflected/V
in/I
successive/J
full/J
monthly/J
reports/N
is/V
continuing/V
./.
###/###
The/D
report/N
follows/V
five-consecutive/J
declines/N
in/I
full/J
monthly/J
figures/N
./.
###/###
Imports/N
rose/V
sharply/R
in/I
the/D
period/N
,/,
to/T
$/$
5.19/C
billion/C
from/I
$/$
4.04/C
billion/C
a/D
year/N
earlier/R
,/,
a/D
change/N
of/I
28/C
%/N
./.
###/###
Exports/N
during/I
the/D
period/N
were/V
$/$
7.01/C
billion/C
,/,
2.6/C
%/N
below/I
$/$
7.20/C
billion/C
a/D
year/N
ago/R
./.
###/###
Groupe/N
AG/N
's/P
chairman/N
said/V
the/D
Belgian/J
insurer/N
is/V
prepared/J
to/T
give/V
up/R
some/D
of/I
its/P
independence/N
to/T
a/D
white/J
knight/N
if/I
necessary/J
to/T
repel/V
a/D
raider/N
./.
###/###
Amid/I
heavy/J
buying/N
of/I
shares/N
in/I
Belgium/N
's/P
largest/J
insurer/N
,/,
Maurice/N
Lippens/N
also/R
warned/V
in/I
an/D
interview/N
that/I
a/D
white/J
knight/N
,/,
in/I
buying/V
out/R
a/D
raider/N
,/,
could/M
leave/V
speculators/N
with/I
big/J
losses/N
on/I
their/P
AG/N
stock/N
./.
###/###
Since/I
the/D
beginning/N
of/I
the/D
year/N
,/,
the/D
stock/N
has/V
nearly/R
doubled/V
,/,
giving/V
AG/N
a/D
market/N
value/N
of/I
about/I
105/C
billion/C
Belgian/J
francs/N
-LRB-/-
$/$
2.7/C
billion/C
-RRB-/-
./.
###/###
The/D
most/R
likely/J
white/J
knight/N
would/M
be/V
Societe/N
Generale/N
de/F
Belgique/N
S.A./N
,/,
which/W
already/R
owns/V
18/C
%/N
of/I
AG/N
and/C
which/W
itself/P
is/V
controlled/V
by/I
Cie/N
./.
Financiere/N
de/F
Suez/N
,/,
the/D
acquisitive/J
French/J
financial/J
conglomerate/N
./.
###/###
But/C
Mr./N
Lippens/N
said/V
a/D
rescue/N
also/R
could/M
involve/V
Asahi/N
Mutual/N
Life/N
Insurance/N
Co./N
,/,
which/W
owns/V
5/C
%/N
of/I
AG/N
./.
###/###
AG/N
is/V
hardly/R
alone/R
in/I
its/P
anxiety/N
./.
###/###
A/D
rambunctious/J
shake-up/N
is/V
quickly/R
reshaping/V
Europe/N
's/P
once-stately/J
insurance/N
business/N
./.
###/###
Worried/J
by/I
European/N
Community/N
directives/N
that/W
will/M
remove/V
many/J
of/I
the/D
barriers/N
to/T
cross-border/J
insurance/N
services/N
,/,
starting/V
in/I
mid-1990/N
,/,
insurers/N
are/V
rushing/V
to/T
find/V
partners/N
and/C
preparing/V
for/I
price/N
wars/N
./.
###/###
In/I
West/N
Germany/N
and/C
the/D
Netherlands/N
,/,
insurers/N
are/V
flirting/V
with/I
banks/N
./.
###/###
In/I
France/N
,/,
Suez/N
and/C
Axa-Midi/N
Assurances/N
S.A./N
both/D
have/V
been/V
on/I
the/D
prowl/N
for/I
giant/J
acquisitions/N
;/:
Suez/N
last/J
month/N
acquired/V
control/N
of/I
Groupe/N
Victoire/N
,/,
the/D
sixth-largest/J
European/J
insurance/N
company/N
,/,
after/I
a/D
takeover/N
battle/N
with/I
Cie/N
./.
Industrielle/N
./.
###/###
Mr./N
Lippens/N
said/V
the/D
volume/N
of/I
shares/N
changing/V
hands/N
has/V
grown/V
significantly/R
since/I
mid-September/N
./.
###/###
But/C
he/P
estimated/V
that/I
a/D
raider/N
would/M
have/V
been/V
able/J
to/T
amass/V
no/D
more/J
than/I
4/C
%/N
of/I
the/D
shares/N
in/I
recent/J
months/N
./.
###/###
Aside/R
from/I
exploring/V
plans/N
for/I
joint/J
ventures/N
or/C
acquisitions/N
,/,
Mr./N
Lippens/N
has/V
called/V
top/J
managers/N
of/I
companies/N
rumored/V
as/I
potential/J
raiders/N
--/:
among/I
them/P
,/,
Axa-Midi/N
,/,
Union/N
des/F
Assurances/N
de/F
Paris/N
and/C
Suez/N
,/,
all/D
based/V
in/I
France/N
./.
###/###
They/P
have/V
all/D
``/`
very/R
clearly/R
stated/V
that/I
they/P
have/V
not/R
acquired/V
and/C
are/V
not/R
acquiring/V
shares/N
of/I
AG/N
,/,
''/'
he/P
said/V
./.
###/###
Any/D
raider/N
would/M
find/V
it/P
hard/J
to/T
crack/V
AG/N
's/P
battlements/N
./.
###/###
A/D
``/`
syndicate/N
''/'
of/I
shareholders/N
holds/V
just/R
under/I
50/C
%/N
of/I
AG/N
,/,
Mr./N
Lippens/N
said/V
,/,
and/C
members/N
have/V
agreed/V
to/T
give/V
one/N
another/D
the/D
right/N
of/I
first/J
refusal/N
should/M
they/P
sell/V
any/D
AG/N
shares/N
./.
###/###
Aside/R
from/I
Generale/N
de/F
Belgique/N
and/C
Asahi/N
,/,
the/D
syndicate/N
includes/V
Antwerpsche/N
Hypotheekkas/N
,/,
a/D
Belgian/J
savings/N
bank/N
,/,
and/C
various/J
family/N
interests/N
./.
###/###
A/D
Generale/N
spokesman/N
confirmed/V
that/I
the/D
giant/J
Belgian/J
holding/V
company/N
would/M
be/V
willing/J
to/T
raise/V
its/P
stake/N
in/I
AG/N
should/M
a/D
raider/N
seek/V
control/N
./.
###/###
Asahi/N
officials/N
could/M
n't/R
be/V
reached/V
for/I
comment/N
./.
###/###
Even/R
without/I
bid/N
talk/N
,/,
this/D
year/N
's/P
surge/N
in/I
prices/N
for/I
Brussels/N
real/J
estate/N
has/V
excited/V
interest/N
in/I
AG/N
./.
###/###
The/D
company/N
says/V
those/D
holdings/N
constitute/V
the/D
third-biggest/J
real-estate/N
portfolio/N
in/I
Belgium/N
./.
###/###
With/I
the/D
dust/N
settling/V
from/I
the/D
failed/V
coup/N
attempt/N
in/I
Panama/N
,/,
one/C
of/I
the/D
many/J
lingering/V
questions/N
the/D
Bush/N
administration/N
will/M
ponder/V
is/V
this/D
:/:
Is/V
the/D
National/N
Security/N
Council/N
staff/N
big/J
enough/R
,/,
and/C
does/V
it/P
have/V
enough/J
clout/N
,/,
to/T
do/V
its/P
job/N
of/I
coordinating/V
foreign/J
policy/N
?/.
###/###
President/N
Bush/N
's/P
national/J
security/N
adviser/N
,/,
Lt./N
Gen./N
Brent/N
Scowcroft/N
,/,
came/V
into/I
office/N
in/I
January/N
intent/J
on/I
making/V
the/D
NSC/N
staff/N
leaner/J
and/C
more/R
disciplined/J
than/I
it/P
had/V
been/V
during/I
the/D
Reagan/N
administration/N
./.
###/###
Gen./N
Scowcroft/N
was/V
a/D
member/N
of/I
the/D
Tower/N
Commission/N
,/,
which/W
investigated/V
the/D
Iran-Contra/N
affair/N
./.
###/###
He/P
was/V
all/R
too/R
aware/J
of/I
how/W
a/D
large/J
,/,
inadequately/R
supervised/J
NSC/N
staff/N
had/V
spun/V
out/I
of/I
control/N
and/C
nearly/R
wrecked/V
President/N
Reagan/N
's/P
second/J
term/N
./.
###/###
So/R
,/,
following/V
both/D
the/D
style/N
he/P
pursued/V
as/I
President/N
Ford/N
's/P
national/J
security/N
adviser/N
and/C
the/D
recommendations/N
of/I
the/D
Tower/N
Commission/N
,/,
Gen./N
Scowcroft/N
has/V
pruned/V
the/D
NSC/N
staff/N
and/C
tried/V
to/T
ensure/V
that/I
it/P
sticks/V
to/T
its/P
assigned/J
tasks/N
--/:
namely/R
,/,
gathering/V
the/D
views/N
of/I
the/D
State/N
Department/N
,/,
Pentagon/N
and/C
intelligence/N
community/N
;/:
serving/V
as/I
an/D
honest/J
broker/N
in/I
distilling/V
that/D
information/N
for/I
the/D
president/N
and/C
then/R
making/V
sure/J
presidential/J
decisions/N
are/V
carried/V
out/R
./.
###/###
The/D
Tower/N
Commission/N
specifically/R
said/V
that/I
the/D
NSC/N
staff/N
should/M
be/V
``/`
small/J
''/'
and/C
warned/V
against/I
letting/V
``/`
energetic/J
self-starters/N
''/'
like/I
Lt./N
Col./N
Oliver/N
North/N
strike/V
out/I
on/I
their/P
own/J
rather/R
than/I
leaving/V
the/D
day-to-day/J
execution/N
of/I
policies/N
to/T
the/D
State/N
Department/N
,/,
Pentagon/N
or/C
Central/N
Intelligence/N
Agency/N
./.
###/###
However/R
,/,
the/D
Panama/N
episode/N
has/V
raised/V
questions/N
about/I
whether/I
the/D
NSC/N
staff/N
is/V
sufficiently/R
big/J
,/,
diverse/J
and/C
powerful/J
to/T
coordinate/V
U.S./N
policy/N
on/I
tough/J
issues/N
./.
###/###
During/I
the/D
coup/N
attempt/N
and/C
its/P
aftermath/N
,/,
NSC/N
staffers/N
were/V
``/`
stretched/V
very/R
thin/J
,/,
''/'
says/V
one/C
senior/J
administration/N
official/N
./.
###/###
``/`
It/P
's/V
a/D
very/R
small/J
shop/N
./.
''/'
###/###
Gen./N
Scowcroft/N
does/V
n't/R
plan/V
to/T
increase/V
the/D
staff/N
right/R
now/R
,/,
but/C
is/V
weighing/V
that/D
possibility/N
,/,
the/D
official/N
adds/V
./.
###/###
The/D
NSC/N
staff/N
``/`
does/V
n't/R
have/V
the/D
horsepower/N
that/I
I/P
believe/V
is/V
required/V
to/T
have/V
an/D
effective/J
interagency/N
process/N
,/,
''/'
says/V
Frank/N
Gaffney/N
,/,
a/D
former/J
Pentagon/N
aide/N
who/W
now/R
runs/V
the/D
Center/N
for/I
Security/N
Policy/N
,/,
a/D
conservative/J
Washington/N
think-tank/N
./.
###/###
The/D
problem/N
with/I
this/D
administration/N
,/,
I/P
think/V
,/,
is/V
that/I
by/I
design/N
it/P
has/V
greatly/R
diminished/V
,/,
both/D
in/I
a/D
physical/J
sense/N
and/C
in/I
a/D
procedural/J
sense/N
,/,
the/D
role/N
of/I
the/D
NSC/N
./.
''/'
###/###
The/D
National/N
Security/N
Council/N
itself/P
was/V
established/V
in/I
1947/C
because/I
policy/N
makers/N
sensed/V
a/D
need/N
,/,
in/I
an/D
increasingly/R
complex/J
world/N
,/,
for/I
a/D
formal/J
system/N
within/I
the/D
White/N
House/N
to/T
make/V
sure/J
that/I
communications/N
flowed/V
smoothly/R
between/I
the/D
president/N
and/C
the/D
State/N
Department/N
,/,
Pentagon/N
and/C
intelligence/N
agencies/N
./.
###/###
By/I
law/N
,/,
the/D
council/N
includes/V
the/D
president/N
,/,
vice/N
president/N
and/C
secretaries/N
of/I
state/N
and/C
defense/N
./.
###/###
In/I
practice/N
,/,
the/D
director/N
of/I
central/J
intelligence/N
and/C
chairman/N
of/I
the/D
Joint/N
Chiefs/N
of/I
Staff/N
also/R
serve/V
as/I
unofficial/J
members/N
./.
###/###
But/C
the/D
size/N
,/,
shape/N
and/C
role/N
of/I
the/D
NSC/N
staff/N
have/V
been/V
left/V
for/I
each/D
president/N
and/C
his/P
national/J
security/N
adviser/N
to/T
decide/V
./.
###/###
That/D
task/N
is/V
one/C
of/I
Washington/N
's/P
perennial/J
problems/N
./.
###/###