###/###
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
./.
###/###