Confidence NN

in IN
the DT
pound NN
is VBZ
widely RB
expected VBN
to TO
take VB
another DT
sharp JJ
dive NN
if IN
trade NN
figures NNS
for IN
September NNP
, ,
due JJ
for IN
release NN
tomorrow NN
, ,
fail VB
to TO
show VB
a DT
substantial JJ
improvement NN
from IN
July NNP
and CC
August NNP
's POS
near-record JJ
deficits NNS
. .

Chancellor NNP
of IN
the DT
Exchequer NNP
Nigel NNP
Lawson NNP
's POS
restated VBN
commitment NN
to TO
a DT
firm NN
monetary JJ
policy NN
has VBZ
helped VBN
to TO
prevent VB
a DT
freefall NN
in IN
sterling NN
over IN
the DT
past JJ
week NN
. .

But CC
analysts NNS
reckon VBP
underlying VBG
support NN
for IN
sterling NN
has VBZ
been VBN
eroded VBN
by IN
the DT
chancellor NN
's POS
failure NN
to TO
announce VB
any DT
new JJ
policy NN
measures NNS
in IN
his PRP$
Mansion NNP
House NNP
speech NN
last JJ
Thursday NNP
. .

This DT
has VBZ
increased VBN
the DT
risk NN
of IN
the DT
government NN
being VBG
forced VBN
to TO
increase VB
base NN
rates NNS
to TO
16 CD
% NN
from IN
their PRP$
current JJ
15 CD
% NN
level NN
to TO
defend VB
the DT
pound NN
, ,
economists NNS
and CC
foreign JJ
exchange NN
market NN
analysts NNS
say VBP
. .

`` ``
The DT
risks NNS
for IN
sterling NN
of IN
a DT
bad JJ
trade NN
figure NN
are VBP
very RB
heavily RB
on IN
the DT
down JJ
side NN
, ,
'' ''
said VBD
Chris NNP
Dillow NNP
, ,
senior JJ
U.K. NNP
economist NN
at IN
Nomura NNP
Research NNP
Institute NNP
. .

`` ``
If IN
there EX
is VBZ
another DT
bad JJ
trade NN
number NN
, ,
there EX
could MD
be VB
an DT
awful JJ
lot NN
of IN
pressure NN
, ,
'' ''
noted VBD
Simon NNP
Briscoe NNP
, ,
U.K. NNP
economist NN
for IN
Midland NNP
Montagu NNP
, ,
a DT
unit NN
of IN
Midland NNP
Bank NNP
PLC NNP
. .

Forecasts NNS
for IN
the DT
trade NN
figures NNS
range VBP
widely RB
, ,
but CC
few JJ
economists NNS
expect VBP
the DT
data NNS
to TO
show VB
a DT
very RB
marked VBN
improvement NN
from IN
the DT
# #
2 CD
billion CD
-LRB- (
$ $
3.2 CD
billion CD
-RRB- )
deficit NN
in IN
the DT
current JJ
account NN
reported VBD
for IN
August NNP
. .

The DT
August NNP
deficit NN
and CC
the DT
# #
2.2 CD
billion CD
gap NN
registered VBN
in IN
July NNP
are VBP
topped VBN
only RB
by IN
the DT
# #
2.3 CD
billion CD
deficit NN
of IN
October NNP
1988 CD
. .

Sanjay NNP
Joshi NNP
, ,
European JJ
economist NN
at IN
Baring NNP
Brothers NNPS
& CC
Co. NNP
, ,
said VBD
there EX
is VBZ
no DT
sign NN
that IN
Britain NNP
's POS
manufacturing NN
industry NN
is VBZ
transforming VBG
itself PRP
to TO
boost VB
exports NNS
. .

At IN
the DT
same JJ
time NN
, ,
he PRP
remains VBZ
fairly RB
pessimistic JJ
about IN
the DT
outlook NN
for IN
imports NNS
, ,
given VBN
continued VBD
high JJ
consumer NN
and CC
capital NN
goods NNS
inflows NNS
. .

He PRP
reckons VBZ
the DT
current JJ
account NN
deficit NN
will MD
narrow VB
to TO
only RB
# #
1.8 CD
billion CD
in IN
September NNP
. .

However RB
, ,
Mr. NNP
Dillow NNP
said VBD
he PRP
believes VBZ
that IN
a DT
reduction NN
in IN
raw JJ
material NN
stockbuilding VBG
by IN
industry NN
could MD
lead VB
to TO
a DT
sharp JJ
drop NN
in IN
imports NNS
. .

Combined VBN
with IN
at IN
least JJS
some DT
rebound NN
in IN
exports NNS
after IN
August NNP
's POS
unexpected JJ
decline NN
, ,
the DT
deficit NN
could MD
narrow VB
to TO
as RB
little JJ
as IN
# #
1.3 CD
billion CD
. .

Mr. NNP
Briscoe NNP
, ,
who WP
also RB
forecasts VBZ
a DT
# #
1.3 CD
billion CD
current JJ
account NN
gap NN
, ,
warns VBZ
that IN
even RB
if IN
the DT
trade NN
figures NNS
are VBP
bullish JJ
for IN
sterling NN
, ,
the DT
currency NN
wo MD
n't RB
advance VB
much JJ
because IN
investors NNS
will MD
want VB
to TO
see VB
further JJ
evidence NN
of IN
the DT
turnaround NN
before IN
adjusting VBG
positions NNS
. .

Nevertheless RB
, ,
he PRP
noted VBD
, ,
`` ``
No DT
one PRP
will MD
want VB
to TO
go VB
into IN
the DT
trade NN
figures NNS
without IN
a DT
flat JJ
position NN
'' ''
in IN
the DT
pound NN
. .

Meanwhile RB
, ,
overall JJ
evidence NN
on IN
the DT
economy NN
remains VBZ
fairly RB
clouded VBN
. .

In IN
his PRP$
Mansion NNP
House NNP
speech NN
, ,
Mr. NNP
Lawson NNP
warned VBD
that IN
a DT
further JJ
slowdown NN
can MD
be VB
expected VBN
as IN
the DT
impact NN
of IN
the DT
last JJ
rise NN
in IN
interest NN
rates NNS
earlier RBR
this DT
month NN
takes VBZ
effect NN
. .

U.K. JJ
base NN
rates NNS
are VBP
at IN
their PRP$
highest JJS
level NN
in IN
eight CD
years NNS
. .

But CC
consumer NN
expenditure NN
data NNS
released VBD
Friday NNP
do VBP
n't RB
suggest VB
that IN
the DT
U.K. NNP
economy NN
is VBZ
slowing VBG
that DT
quickly RB
. .

The DT
figures NNS
show VBP
that DT
spending NN
rose VBD
0.1 CD
% NN
in IN
the DT
third JJ
quarter NN
from IN
the DT
second JJ
quarter NN
and CC
was VBD
up IN
3.8 CD
% NN
from IN
a DT
year NN
ago RB
. .

This DT
compares VBZ
with IN
a DT
1.6 CD
% NN
rise NN
in IN
the DT
second NN
from IN
the DT
first JJ
quarter NN
and CC
a DT
5.4 CD
% NN
increase NN
from IN
the DT
second JJ
quarter NN
of IN
1988 CD
. .

Mr. NNP
Dillow NNP
said VBD
the DT
data NNS
show VBP
the DT
economy NN
`` ``
is VBZ
still RB
quite RB
strong JJ
, ,
'' ''
but CC
suggestions NNS
that IN
much NN
of IN
the DT
spending NN
went VBD
on IN
services NNS
rather RB
than IN
consumer NN
goods NNS
should MD
reduce VB
fears NNS
of IN
more JJR
import NN
rises NNS
. .

Certainly RB
, ,
the DT
chancellor NN
has VBZ
made VBN
it PRP
clear JJ
that IN
he PRP
is VBZ
prepared VBN
to TO
increase VB
interest NN
rates NNS
again RB
if IN
necessary JJ
to TO
both DT
ensure VB
that IN
a DT
substantial JJ
slowdown NN
does VBZ
take VB
place NN
and CC
that DT
sterling NN
does VBZ
n't RB
decline VB
further JJ
. .

Thursday NNP
, ,
he PRP
reminded VBD
his PRP$
audience NN
that IN
the DT
government NN
`` ``
can MD
not RB
allow VB
the DT
necessary JJ
rigor NN
of IN
monetary JJ
policy NN
to TO
be VB
undermined VBN
by IN
exchange NN
rate NN
weakness NN
. .
'' ''

Analysts NNS
agree VBP
there EX
is VBZ
little JJ
holding NN
sterling NN
firm NN
at IN
the DT
moment NN
other JJ
than IN
Mr. NNP
Lawson NNP
's POS
promise NN
that IN
rates NNS
will MD
be VB
pushed VBN
higher JJR
if IN
necessary JJ
. .

And CC
, ,
they PRP
warn VBP
, ,
any DT
further JJ
drop NN
in IN
the DT
government NN
's POS
popularity NN
could MD
swiftly RB
make VB
this DT
promise NN
sound NN
hollow JJ
. .

Sterling NNP
was VBD
already RB
showing VBG
some DT
signs NNS
of IN
a DT
lack NN
of IN
confidence NN
in IN
Mr. NNP
Lawson NNP
's POS
promise NN
Friday NNP
. .

In IN
European JJ
trading NN
it PRP
declined VBD
to TO
$ $
1.5890 CD
and CC
2.9495 CD
marks NNS
from IN
$ $
1.5940 CD
and CC
2.9429 CD
marks NNS
late JJ
Thursday NNP
. .

Economists NNS
suggested VBD
that IN
if IN
the DT
pound NN
falls VBZ
much JJ
below IN
2.90 CD
marks NNS
, ,
the DT
government NN
will MD
be VB
forced VBN
to TO
increase VB
rates NNS
to TO
16 CD
% NN
, ,
both DT
to TO
halt VB
any DT
further JJ
decline NN
and CC
ensure VB
that IN
the DT
balance NN
of IN
monetary JJ
policy NN
remains VBZ
unchanged JJ
. .

Friday NNP
's POS
Market NNP
Activity NN

The DT
dollar NN
posted VBD
gains NNS
in IN
quiet JJ
trading NN
as IN
concerns NNS
about IN
equities NNS
abated VBN
. .

Foreign JJ
exchange NN
dealers NNS
said VBD
that IN
the DT
currency NN
market NN
has VBZ
begun VBN
to TO
distance VB
itself PRP
from IN
the DT
volatile JJ
stock NN
exchange NN
, ,
which WDT
has VBZ
preoccupied VBN
the DT
market NN
since IN
Oct. NNP
13 CD
, ,
when WRB
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
plunged VBD
more JJR
than IN
190 CD
points NNS
. .

Currency NN
analysts NNS
predict VBP
that IN
in IN
the DT
coming VBG
week NN
the DT
foreign JJ
exchange NN
market NN
will MD
shift VB
its PRP$
focus NN
back RB
to TO
economic JJ
fundamentals NNS
, ,
keeping VBG
a DT
close NN
eye NN
out IN
for IN
any DT
signs NNS
of IN
monetary JJ
easing NN
by IN
U.S. NNP
Federal NNP
Reserve NNP
. .

Late RB
in IN
the DT
New NNP
York NNP
trading NN
day NN
, ,
the DT
dollar NN
was VBD
quoted VBN
at IN
1.8578 CD
marks NNS
, ,
up IN
from IN
1.8470 CD
marks NNS
late JJ
Thursday NNP
in IN
New NNP
York NNP
. .

The DT
U.S. NNP
currency NN
was VBD
also RB
changing VBG
hands NNS
at IN
142.43 CD
yen NN
, ,
up IN
from IN
141.70 CD
yen NN
in IN
New NNP
York NNP
late JJ
Thursday NNP
. .

In IN
Tokyo NNP
on IN
Monday NNP
, ,
the DT
U.S. NNP
currency NN
opened VBD
for IN
trading NN
at IN
141.95 CD
yen NN
, ,
up IN
from IN
Friday NNP
's POS
Tokyo NNP
close NN
of IN
141.35 CD
yen NN
. .

On IN
the DT
Commodity NNP
Exchange NNP
in IN
New NNP
York NNP
, ,
gold NN
for IN
current JJ
delivery NN
settled VBD
at IN
$ $
367.30 CD
an DT
ounce NN
, ,
up IN
20 CD
cents NNS
. .

Estimated VBN
volume NN
was VBD
a DT
light NN
2.4 CD
million CD
ounces NNS
. .

In IN
early JJ
trading NN
in IN
Hong NNP
Kong NNP
Monday NNP
, ,
gold NN
was VBD
quoted VBN
at IN
$ $
366.50 CD
an DT
ounce NN
. .

East NNP
Rock NNP
Partners NNP
Limited NNP
Partnership NNP
said VBD
it PRP
proposed VBD
to TO
acquire VB
A.P. NNP
Green NNP
Industries NNP
Inc. NNP
for IN
$ $
40 CD
a DT
share NN
. .

In IN
an DT
Oct. NNP
19 CD
letter NN
to TO
A.P. NNP
Green NNP
's POS
board NN
, ,
East NNP
Rock NNP
said VBD
the DT
offer NN
is VBZ
subject NN
to TO
the DT
signing NN
of IN
a DT
merger NN
agreement NN
by IN
no DT
later RB
than IN
Oct. NNP
31 CD
. .

The DT
letter NN
, ,
attached VBN
to TO
a DT
filing NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
said VBD
the DT
approval NN
is VBZ
also RB
contingent JJ
upon IN
obtaining VBG
satisfactory JJ
financing NN
. .

An DT
A.P. NNP
Green NNP
official NN
declined VBD
to TO
comment VB
on IN
the DT
filing NN
. .

The DT
$ $
40-a-share JJ
proposal NN
values VBZ
the DT
company NN
at IN
about RB
$ $
106.6 CD
million CD
. .

A.P. NNP
Green NNP
currently RB
has VBZ
2,664,098 CD
shares NNS
outstanding JJ
. .

Its PRP$
stock NN
closed VBD
at IN
$ $
38 CD
, ,
up IN
$ $
1.875 CD
, ,
in IN
national JJ
over-the-counter JJ
trading NN
. .

The DT
company NN
is VBZ
a DT
Mexico NNP
, ,
Mo. NNP
, ,
maker NN
of IN
refractory JJ
products NNS
. .

East NNP
Rock NNP
also RB
said VBD
in IN
the DT
filing NN
that IN
it PRP
boosted VBD
its PRP$
stake NN
in IN
A.P. NNP
Green NNP
to TO
8.7 CD
% NN
. .

It PRP
now RB
holds VBZ
233,000 CD
A.P. NNP
Green NNP
common JJ
shares NNS
, ,
including VBG
30,000 CD
shares NNS
bought VBD
last JJ
Thursday NNP
for IN
$ $
35.50 CD
to TO
$ $
36.50 CD
a DT
share NN
. .

New NNP
York-based JJ
John NNP
Kuhns NNP
and CC
Robert NNP
MacDonald NNP
control NN
East NNP
Rock NNP
Partners NNP
Inc. NNP
, ,
the DT
sole JJ
general JJ
partner NN
of IN
East NNP
Rock NNP
Partners NNP
L.P NNP
. .

The DT
sole JJ
limited JJ
partner NN
of IN
the DT
partnership NN
is VBZ
Westwood NNP
Brick NNP
Lime NNP
Inc. NNP
, ,
an DT
indirect JJ
subsidiary NN
of IN
Westwood NNP
Group NNP
Inc NNP
. .

Both DT
Westwood NNP
Brick NNP
and CC
Westwood NNP
Group NNP
are VBP
based VBN
in IN
Boston NNP
. .

Freight NN
rates NNS
, ,
declining VBG
for IN
most RBS
of IN
the DT
decade NN
because IN
of IN
competition NN
spurred VBN
by IN
deregulation NN
, ,
are VBP
bottoming VBG
out IN
, ,
turning VBG
upward RB
and CC
threatening VBG
to TO
fuel VB
inflation NN
. .

Trucking NNP
, ,
shipping VBG
and CC
air-freight NN
companies NNS
have VBP
announced VBN
rate NN
increases NNS
, ,
scheduled VBN
for IN
this DT
fall NN
or CC
early JJ
next JJ
year NN
, ,
reflecting VBG
higher JJR
costs NNS
and CC
tightened VBD
demand NN
for IN
freight NN
transport NN
. .

Major JJ
shippers NNS
say VBP
they PRP
expect VBP
freight NN
rates NNS
to TO
rise VB
at IN
least JJS
as RB
fast RB
as IN
inflation NN
and CC
maybe RB
faster RBR
in IN
the DT
next JJ
few JJ
years NNS
. .

That DT
's VBZ
a DT
big JJ
change NN
from IN
recent JJ
years NNS
when WRB
freight NN
haulage NN
was VBD
a DT
bright JJ
spot NN
for IN
U.S. NNP
productivity NN
, ,
helping VBG
to TO
restrain VB
inflation NN
and CC
make VB
U.S. NNP
industry NN
more RBR
competitive JJ
abroad RB
. .

`` ``
Demand NN
has VBZ
caught VBN
up IN
with IN
the DT
supply NN
of IN
certain JJ
types NNS
of IN
freight NN
transportation NN
, ,
and CC
rates NNS
are VBP
starting VBG
to TO
move VB
up IN
'' ''
at IN
a DT
rate NN
`` ``
close RB
to TO
or CC
slightly RB
more JJR
than IN
the DT
inflation NN
rate NN
, ,
'' ''
said VBD
Clifford NNP
Sayre NNP
, ,
director NN
of IN
logistics NNS
at IN
Du NNP
Pont NNP
Co NNP
. .
Shippers NNS
surveyed VBN
recently RB
by IN
Ohio NNP
State NNP
University NNP
said VBD
they PRP
expect VBP
their PRP$
freight-transport JJ
, ,
storage NN
and CC
distribution NN
costs NNS
to TO
rise VB
about IN
4 CD
% NN
this DT
year NN
. .

Only RB
10 CD
% NN
of IN
the DT
250 CD
shippers NNS
polled VBN
expected VBN
their PRP$
freight-transport JJ
costs NNS
to TO
decrease VB
, ,
compared VBN
with IN
30 CD
% NN
who WP
had VBD
looked VBN
to TO
freight VB
transport NN
to TO
reduce VB
costs NNS
in IN
past JJ
years NNS
. .
`` ``
This DT
is VBZ
the DT
first JJ
year NN
since IN
transportation NN
deregulation NN
in IN
1980 CD
that IN
we PRP
have VBP
had VBN
such JJ
a DT
dramatic JJ
and CC
broad-based JJ
upturn NN
in IN
perceived VBN
transportation NN
rates NNS
, ,
'' ''
said VBD
Bernard NNP
LaLonde NNP
, ,
a DT
transportation NN
logistics NNS
professor NN
at IN
Ohio NNP
State NNP
in IN
Columbus NNP
. .

The DT
deregulation NN
of IN
railroads NNS
and CC
trucking NN
companies NNS
that WDT
began VBD
in IN
1980 CD
enabled VBD
shippers NNS
to TO
bargain VB
for IN
transportation NN
. .

Carriers NNP
could MD
use VB
their PRP$
equipment NN
more RBR
efficiently RB
, ,
leading VBG
to TO
overcapacity NN
they PRP
were VBD
eager JJ
to TO
fill VB
. .

Shippers NNS
cut VBP
about RB
$ $
35 CD
billion CD
from IN
their PRP$
annual JJ
, ,
inter-city JJ
truck NN
and CC
rail NN
costs NNS
, ,
to TO
about RB
$ $
150 CD
billion CD
, ,
or CC
about IN
6.4 CD
% NN
of IN
gross JJ
national JJ
product NN
, ,
down RB
from IN
8 CD
% NN
of IN
GNP NNP
in IN
1981 CD
. .

But CC
with IN
much NN
of IN
the DT
inefficiency NN
squeezed VBN
out IN
of IN
the DT
freight-transport JJ
system NN
, ,
rising VBG
costs NNS
are VBP
likely JJ
to TO
be VB
reflected VBN
directly RB
in IN
higher JJR
freight NN
rates NNS
. .

`` ``
Shippers NNS
are VBP
saying VBG
` ``
the DT
party NN
's POS
over IN
, ,
' ''
'' ''
said VBD
Mr. NNP
LaLonde NNP
. .

`` ``
Shippers NNS
wo MD
n't RB
be VB
able JJ
to TO
look VB
for IN
transportation-cost JJ
savings NNS
as IN
they PRP
have VBP
for IN
the DT
last JJ
eight CD
or CC
nine CD
years NNS
. .

Transport NN
rates NNS
wo MD
n't RB
be VB
an DT
opportunity NN
for IN
offsetting VBG
cost NN
increases NNS
in IN
other JJ
segments NNS
of IN
the DT
economy NN
. .
'' ''

Robert NNP
Delaney NNP
, ,
a DT
consultant NN
at IN
Arthur NNP
D. NNP
Little NNP
Inc. NNP
, ,
Cambridge NNP
, ,
Mass. NNP
, ,
said VBD
`` ``
We PRP
've VBP
gotten VBN
all PDT
the DT
benefits NNS
of IN
deregulation NN
in IN
freight-cost JJ
reductions NNS
. .
Now RB
we PRP
are VBP
starting VBG
to TO
see VB
real JJ
freight-rate JJ
increases NNS
as IN
carriers NNS
replace VBP
equipment NN
, ,
pay VB
higher JJR
fuel NN
costs NNS
and CC
pay VB
more JJR
for IN
labor NN
. .

You PRP
'll MD
see VB
carriers NNS
try VB
to TO
recoup VB
some DT
of IN
the DT
price NN
cutting VBG
that WDT
occurred VBD
previously RB
. .
'' ''

Not RB
everyone NN
believes VBZ
that IN
the DT
good JJ
times NNS
are VBP
over IN
for IN
shippers NNS
. .

`` ``
There EX
's VBZ
still RB
a DT
lot NN
of IN
pressure NN
on IN
rates NNS
in IN
both DT
rail NN
and CC
truck NN
, ,
'' ''
said VBD
Gerard NNP
McCullough NNP
, ,
lecturer NN
in IN
transportation NN
at IN
Massachusetts NNP
Institute NNP
of IN
Technology NNP
. .

Less-than-truckload JJ
companies NNS
, ,
which WDT
carry VBP
the DT
freight NN
of IN
several JJ
shippers NNS
in IN
each DT
truck NN
trailer NN
, ,
discounted VBD
away RB
a DT
4.7 CD
% NN
rate NN
increase NN
implemented VBD
last JJ
April NNP
. .

The DT
carriers NNS
were VBD
competing VBG
fiercely RB
for IN
market NN
share NN
. .

Railroad-rate JJ
increases NNS
are VBP
likely JJ
to TO
be VB
restrained VBN
by IN
weakening VBG
rail-traffic JJ
levels NNS
and CC
keen JJ
competition NN
for IN
freight NN
from IN
trucks NNS
. .

An DT
official NN
at IN
Consolidated NNP
Freightways NNP
Inc. NNP
, ,
a DT
Menlo NNP
Park NNP
, ,
Calif. NNP
, ,
less-than-truckload JJ
carrier NN
, ,
said VBD
rate NN
discounting NN
in IN
that DT
industry NN
has VBZ
begun VBN
to TO
`` ``
stabilize VB
. .
'' ''

Consolidated NNP
Freightways NNP
plans VBZ
to TO
raise VB
its PRP$
rates NNS
5.3 CD
% NN
late JJ
this DT
year NN
or CC
early JJ
next JJ
year NN
, ,
and CC
at IN
least JJS
two CD
competitors NNS
have VBP
announced VBN
similar JJ
increases NNS
. .

Truckers NNS
are VBP
`` ``
trying VBG
to TO
send VB
signals NNS
that IN
they PRP
need VBP
to TO
stop VB
the DT
bloodletting NN
, ,
forget VB
about IN
market NN
share NN
and CC
go VB
for IN
higher JJR
rates NNS
, ,
'' ''
said VBD
Michael NNP
Lloyd NNP
, ,
an DT
analyst NN
at IN
Salomon NNP
Bros NNP
. .

And CC
`` ``
shippers NNS
are VBP
getting VBG
the DT
feeling NN
that IN
they PRP
have VBP
played VBN
one CD
trucker NN
off IN
against IN
another DT
as RB
much JJ
as IN
they PRP
can MD
, ,
'' ''
he PRP
said VBD
. .

Air-freight NN
carriers NNS
raised VBD
their PRP$
rates NNS
for IN
U.S. NNP
products NNS
going VBG
across IN
the DT
Pacific NNP
to TO
Asia NNP
by IN
about IN
20 CD
% NN
earlier RBR
this DT
month NN
. .

And CC
Japan NNP
Air NNP
Lines NNPS
said VBD
it PRP
plans VBZ
to TO
boost VB
its PRP$
rates NNS
a DT
further JJ
25 CD
% NN
over IN
the DT
next JJ
two CD
years NNS
. .

Such JJ
rate NN
increases NNS
`` ``
will MD
increase VB
the DT
total JJ
cost NN
of IN
U.S. NNP
products NNS
and CC
slow JJ
down RP
the DT
rate NN
of IN
increase NN
of IN
U.S. NNP
exports NNS
, ,
'' ''
said VBD
Richard NNP
Connors NNP
, ,
a DT
senior JJ
vice NN
president NN
of IN
Yusen NNP
Air NNP
& CC
Sea NNP
Service NNP
U.S.A. NNP
Inc. NNP
, ,
the DT
U.S. NNP
air-freight-forwarding JJ
subsidiary NN
of IN
Nippon NNP
Yusen NNP
Kaisha NNP
of IN
Japan NNP
. .

Ship NN
companies NNS
carrying VBG
bulk NN
commodities NNS
, ,
such JJ
as IN
oil NN
, ,
grain NN
, ,
coal NN
and CC
iron NN
ore NN
, ,
have VBP
been VBN
able JJ
to TO
increase VB
their PRP$
rates NNS
in IN
the DT
last JJ
couple NN
of IN
years NNS
. .

Some DT
bulk NN
shipping VBG
rates NNS
have VBP
increased VBN
`` ``
3 CD
% NN
to TO
4 CD
% NN
in IN
the DT
past JJ
few JJ
months NNS
, ,
'' ''
said VBD
Salomon NNP
's POS
Mr. NNP
Lloyd NNP
. .

And CC
ship NN
lines NNS
carrying VBG
containers NNS
are VBP
also RB
trying VBG
to TO
raise VB
their PRP$
rates NNS
. .

Carriers NNP
boosted VBD
rates NNS
more JJR
than IN
10 CD
% NN
in IN
the DT
North NNP
Atlantic NNP
between IN
the DT
U.S. NNP
and CC
Europe NNP
last JJ
September NNP
, ,
hoping VBG
to TO
partly RB
restore VB
rates NNS
to TO
earlier JJR
levels NNS
. .

Ship NN
lines NNS
operating VBG
in IN
the DT
Pacific NNP
plan NN
to TO
raise VB
rates NNS
on IN
containers NNS
carrying VBG
U.S. NNP
exports NNS
to TO
Asia NNP
about IN
10 CD
% NN
, ,
effective JJ
next JJ
April NNP
. .

MGM NNP
Grand NNP
Inc. NNP
said VBD
it PRP
filed VBD
a DT
registration NN
statement NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
for IN
a DT
public JJ
offering NN
of IN
six CD
million CD
common JJ
shares NNS
. .

The DT
Beverly NNP
Hills NNP
, ,
Calif.-based JJ
company NN
said VBD
it PRP
would MD
have VB
26.9 CD
million CD
common JJ
shares NNS
outstanding JJ
after IN
the DT
offering NN
. .

The DT
hotel NN
and CC
Gaming NNP
company NN
said VBD
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
will MD
lead VB
the DT
underwriters NNS
. .

Proceeds NNS
from IN
the DT
sale NN
will MD
be VB
used VBN
for IN
remodeling VBG
and CC
refurbishing VBG
projects NNS
, ,
as RB
well RB
as IN
for IN
the DT
planned VBN
MGM NNP
Grand NNP
hotel\/casino NN
and CC
theme NN
park NN
. .

Bob NNP
Stone NNP
stewed JJ
over IN
a DT
letter NN
from IN
his PRP$
manager NN
putting VBG
him PRP
on IN
probation NN
for IN
insubordination NN
. .

Mr. NNP
Stone NNP
thought VBD
the DT
discipline NN
was VBD
unfair JJ
; :
he PRP
believed VBD
that IN
his PRP$
manager NN
wanted VBD
to TO
get VB
rid JJ
of IN
him PRP
for IN
personal JJ
reasons NNS
. .

Unable JJ
to TO
persuade VB
the DT
manager NN
to TO
change VB
his PRP$
decision NN
, ,
he PRP
went VBD
to TO
a DT
`` ``
company NN
court NN
'' ''
for IN
a DT
hearing NN
. .

At IN
the DT
scheduled VBN
time NN
, ,
Mr. NNP
Stone NNP
entered VBD
a DT
conference NN
room NN
in IN
a DT
building NN
near IN
where WRB
he PRP
worked VBD
. .

After IN
the DT
three CD
members NNS
of IN
the DT
court NN
introduced VBD
themselves PRP
, ,
the DT
chairman NN
of IN
the DT
panel NN
said VBD
: :
`` ``
Go VB
ahead RB
and CC
tell VB
us PRP
what WP
happened VBD
. .

We PRP
may MD
ask VB
questions NNS
as IN
you PRP
go VBP
along IN
, ,
or CC
we PRP
may MD
wait VB
until IN
the DT
end NN
. .
'' ''

No DT
lawyers NNS
or CC
tape NN
recorders NNS
were VBD
present JJ
. .

The DT
only RB
extra JJ
people NNS
were VBD
a DT
couple NN
of IN
personnel NNS
specialists NNS
, ,
one CD
of IN
whom WP
knew VBD
Mr. NNP
Stone NNP
's POS
case NN
intimately RB
and CC
would MD
help VB
fill VB
in IN
any DT
facts NNS
needed VBN
to TO
give VB
the DT
court NN
the DT
full JJ
picture NN
. .

Over IN
a DT
cup NN
of IN
coffee NN
, ,
Mr. NNP
Stone NNP
told VBD
his PRP$
story NN
. .

He PRP
talked VBD
about IN
20 CD
minutes NNS
. .

When WRB
he PRP
was VBD
through IN
, ,
the DT
court NN
members NNS
asked VBD
many JJ
questions NNS
, ,
then RB
the DT
chairman NN
said VBD
they PRP
would MD
like VB
to TO
hear VB
his PRP$
manager NN
's POS
side NN
and CC
talk VB
to TO
witnesses NNS
. .

The DT
chairman NN
promised VBD
Mr. NNP
Stone NNP
a DT
decision NN
within IN
two CD
weeks NNS
. .

Bob NNP
Stone NNP
is VBZ
a DT
fictional JJ
name NN
, ,
but CC
the DT
incident NN
described VBN
is VBZ
real JJ
. .

It PRP
happened VBD
at IN
Northrop NNP
Corp. NNP
in IN
Los NNP
Angeles NNP
. .

The DT
court NN
is VBZ
called VBN
the DT
Management NNP
Appeals NNP
Committee NNP
, ,
or CC
just RB
`` ``
MAC NNP
, ,
'' ''
and CC
it PRP
is VBZ
likely JJ
to TO
hear VB
a DT
couple NN
of IN
dozen NN
cases VBZ
a DT
year NN
. .

Alter VB
some DT
details NNS
of IN
this DT
example NN
and CC
it PRP
could MD
be VB
taking VBG
place NN
today NN
at IN
Federal NNP
Express NNP
in IN
Memphis NNP
, ,
the DT
Defense NNP
and CC
Underseas NNP
Systems NNP
divisions NNS
of IN
Honeywell NNP
in IN
Minneapolis NNP
, ,
a DT
General NNP
Electric NNP
plant NN
in IN
Columbia NNP
, ,
Md. NNP
, ,
or CC
a DT
number NN
of IN
other JJ
companies NNS
. .

These DT
firms NNS
are VBP
pioneers NNS
in IN
a DT
significant JJ
new JJ
trend NN
in IN
the DT
corporate JJ
world NN
: :
the DT
rise NN
of IN
what WP
I PRP
call VBP
corporate JJ
due JJ
process NN
. .

Although IN
corporate JJ
due JJ
process NN
is VBZ
practiced VBN
today NN
in IN
few JJ
companies NNS
-- :
perhaps RB
40 CD
to TO
60 CD
-- :
it PRP
is VBZ
one CD
of IN
the DT
fastest JJS
developing VBG
trends NNS
in IN
industry NN
. .

In IN
the DT
coming VBG
decade NN
a DT
majority NN
of IN
people-oriented JJ
companies NNS
are VBP
likely JJ
to TO
adopt VB
it PRP
. .

Corporate JJ
due JJ
process NN
appeals NNS
to TO
management NN
for IN
a DT
variety NN
of IN
reasons NNS
. .
It PRP
reduces VBZ
lawsuits NNS
from IN
disgruntled JJ
employees NNS
and CC
ex-employees NNS
, ,
with IN
all DT
that WDT
means VBZ
for IN
reduced VBN
legal JJ
costs NNS
and CC
better RBR
public JJ
relations NNS
. .

It PRP
helps VBZ
to TO
keep VB
out IN
unions NNS
. .

It PRP
increases VBZ
employee NN
commitment NN
to TO
the DT
company NN
, ,
with IN
all DT
that WDT
means VBZ
for IN
efficiency NN
and CC
quality NN
control NN
. .

What WP
must MD
your PRP$
management NN
team NN
do VBP
to TO
establish VB
corporate JJ
due JJ
process NN
? .

Here RB
are VBP
four CD
key JJ
steps NNS
: :

1 CD
. .
Make VB
sure JJ
you PRP
have VBP
a DT
strong JJ
personnel NNS
department NN
. .

It PRP
must MD
be VB
able JJ
to TO
handle VB
most RBS
of IN
the DT
complaints NNS
that WDT
can MD
not RB
be VB
solved VBN
in IN
the DT
trenches NNS
by IN
managers NNS
and CC
their PRP$
subordinates NNS
, ,
else RB
the DT
company NN
court NN
or CC
adjudicators NNS
will MD
be VB
inundated VBN
with IN
cases NNS
. .

At IN
Polaroid NNP
, ,
the DT
Personnel NNP
Policy NNP
Planning NNP
Committee NNP
may MD
hear VB
only RB
about IN
20 CD
cases VBZ
a DT
year NN
; :
the DT
rest NN
of IN
the DT
many JJ
hundreds NNS
of IN
complaints NNS
are VBP
resolved VBN
at IN
earlier JJR
stages NNS
. .

At IN
TWA NNP
, ,
the DT
System NNP
Board NNP
of IN
Adjustment NNP
hears VBZ
50 CD
to TO
75 CD
cases VBZ
a DT
year NN
, ,
only RB
a DT
fraction NN
of IN
the DT
complaints NNS
brought VBN
to TO
personnel NNS
specialists NNS
. .

At IN
Citicorp NNP
, ,
the DT
Problem NNP
Review NNP
Board NNP
may MD
hear VB
only RB
12 CD
or CC
so RB
cases VBZ
because IN
of IN
personnel NNS
's POS
skill NN
in IN
complaint-resolution NN
. .

In IN
a DT
typical JJ
year NN
, ,
up IN
to TO
20 CD
% NN
of IN
the DT
work NN
force NN
goes VBZ
to TO
personnel NNS
specialists NNS
with IN
complaints NNS
of IN
unfair JJ
treatment NN
. .

In IN
a DT
large JJ
company NN
that WDT
means VBZ
many JJ
hundreds NNS
of IN
complaints NNS
for IN
personnel NNS
to TO
handle VB
. .

2 CD
. .
Formally RB
or CC
informally RB
, ,
train NN
all DT
your PRP$
managers NNS
and CC
supervisors NNS
in IN
the DT
company NN
's POS
due-process NN
approach NN
. .

See VB
that IN
they PRP
know VBP
company NN
personnel NNS
policy NN
backwards RB
and CC
forwards RB
, ,
for IN
it PRP
is VBZ
the DT
`` ``
law NN
'' ''
governing VBG
company NN
courts NNS
and CC
adjudicators NNS
. .

Coach NNP
them PRP
in IN
handling NN
complaints NNS
so RB
that IN
they PRP
can MD
resolve VB
problems NNS
immediately RB
. .

In IN
case NN
managers NNS
and CC
personnel NNS
specialists NNS
are VBP
unsuccessful JJ
and CC
subordinates NNS
take VBP
their PRP$
complaints NNS
to TO
a DT
company NN
court NN
or CC
adjudicator NN
, ,
teach VB
managers NNS
to TO
accept VB
reversals NNS
as IN
a DT
fact NN
of IN
business NN
life NN
, ,
for IN
in IN
a DT
good JJ
due-process NN
system NN
they PRP
are VBP
bound VBN
to TO
happen VB
. .

In IN
the DT
15 CD
companies NNS
I PRP
studied VBD
, ,
reversal NN
rates NNS
range VBP
on IN
the DT
average NN
from IN
20 CD
% NN
to TO
40 CD
% NN
. .

3 CD
. .
Decide VB
whether IN
you PRP
want VBP
a DT
panel NN
system NN
or CC
a DT
single JJ
adjudicator NN
. .

A DT
panel NN
system NN
like IN
that DT
in NN
the DT
Bob NNP
Stone NNP
example NN
enjoys VBZ
such JJ
advantages NNS
as IN
high JJ
credibility NN
and CC
, ,
for IN
the DT
panelists NNS
, ,
mutual JJ
support NN
. .

An DT
adjudicator NN
system NN
-- :
that DT
is VBZ
, ,
an DT
investigator NN
who WP
acts VBZ
first JJ
as IN
a DT
fact-finder NN
and CC
then RB
switches VBZ
hats NNS
and CC
arbitrates VBZ
the DT
facts NNS
-- :
has VBZ
such JJ
advantages NNS
as IN
speed NN
, ,
flexibility NN
and CC
maximum JJ
privacy NN
. .

International NNP
Business NNP
Machines NNPS
and CC
Bank NNP
of IN
America NNP
are VBP
among IN
the DT
companies NNS
using VBG
the DT
single-adjudicator JJ
approach NN
. .

4 CD
. .
Make VB
your PRP$
due-process NN
system NN
visible JJ
. .

It PRP
wo MD
n't RB
do VB
any DT
good NN
for IN
anybody NN
unless IN
employees NNS
know VBP
about IN
it PRP
. .

Most JJS
managements NNS
hesitate VBP
to TO
go VB
all DT
out NN
in IN
advertising VBG
their PRP$
due-process NN
systems NNS
for IN
fear NN
of IN
encouraging VBG
cranks NNS
and CC
chronic JJ
soreheads NNS
to TO
file VB
complaints NNS
. .

On IN
the DT
other JJ
hand NN
, ,
they PRP
make VBP
sure JJ
at IN
a DT
minimum NN
that IN
their PRP$
systems NNS
are VBP
described VBN
in IN
their PRP$
employee NN
handbooks NNS
and CC
talked VBD
up IN
by IN
personnel NNS
specialists NNS
. .

Smith-Kline NNP
Beecham NNP
goes VBZ
further JJ
and CC
sometimes RB
features VBZ
its PRP$
grievance NN
procedure NN
in IN
closed-circuit JJ
TV NN
programs NNS
. .

Naturally RB
, ,
one CD
of IN
the DT
best JJS
ways NNS
to TO
guarantee VB
visibility NN
for IN
your PRP$
due-process NN
system NN
is VBZ
for IN
top JJ
management NN
to TO
support VB
it PRP
. .

At IN
IBM NNP
, ,
the DT
company NN
's POS
Open NNP
Door NNP
system NN
is VBZ
sometimes RB
the DT
subject NN
of IN
memorandums NNS
from IN
the DT
chief JJ
executive NN
. .

Federal NNP
Express NNP
goes VBZ
further JJ
in IN
this DT
respect NN
than IN
any DT
company NN
I PRP
know VBP
of IN
with IN
both DT
Frederick NNP
Smith NNP
and CC
James NNP
Barksdale NNP
, ,
chief JJ
executive NN
and CC
chief JJ
operating VBG
officer NN
, ,
respectively RB
, ,
sitting VBG
in IN
on IN
the DT
Appeals NNP
Board NNP
almost RB
every DT
Tuesday NNP
to TO
decide VB
cases NNS
. .

Mr. NNP
Ewing NNP
is VBZ
a DT
consultant NN
based VBN
in IN
Winchester NNP
, ,
Mass. NNP
, ,
and CC
author NN
of IN
`` ``
Justice NNP
on IN
the DT
Job NNP
: :
Resolving NNP
Grievances NNP
in IN
the DT
Nonunion NNP
Workplace NN
'' ''
-LRB- (
Harvard NNP
Business NNP
School NNP
Press NNP
, ,
1989 CD
-RRB- )
. .

Tokyo NNP
stocks NNS
closed VBD
higher JJR
in IN
active JJ
trading NN
Friday NNP
, ,
marking VBG
the DT
fourth JJ
consecutive JJ
daily JJ
gain NN
since IN
Monday NNP
's POS
sharp JJ
fall NN
. .

London JJ
shares NNS
closed VBD
moderately RB
lower JJR
in IN
thin JJ
trading NN
. .

At IN
Tokyo NNP
, ,
the DT
Nikkei NNP
index NN
of IN
225 CD
selected VBN
issues NNS
was VBD
up IN
112.16 CD
points NNS
to TO
35486.38 CD
. .

The DT
index NN
advanced VBD
266.66 CD
points NNS
Thursday NNP
. .

In IN
early JJ
trading NN
in IN
Tokyo NNP
Monday NNP
, ,
the DT
Nikkei NNP
index NN
rose VBD
101.98 CD
points NNS
to TO
35588.36 CD
. .

Friday NNP
's POS
volume NN
on IN
the DT
First NNP
Section NN
was VBD
estimated VBN
at IN
one CD
billion CD
shares NNS
, ,
up IN
from IN
862 CD
million CD
Thursday NNP
. .

Winners NNS
outpaced VBD
losers NNS
, ,
572 CD
to TO
368 CD
, ,
while IN
181 CD
issues NNS
remained VBD
unchanged JJ
. .

With IN
investors NNS
relieved VBN
at IN
the DT
overnight JJ
gain NN
in IN
New NNP
York NNP
stocks NNS
, ,
small-lot JJ
buying NN
orders NNS
streamed VBD
into IN
the DT
market NN
from IN
early JJ
morning NN
, ,
making VBG
traders NNS
believe VBP
the DT
market NN
was VBD
back RB
to TO
normal JJ
. .

The DT
Nikkei NNP
, ,
which WDT
reached VBD
as RB
high JJ
as IN
35611.38 CD
right NN
after IN
the DT
opening NN
, ,
surrendered VBD
part NN
of IN
its PRP$
early JJ
advance NN
toward IN
the DT
end NN
of IN
the DT
day NN
because IN
of IN
profit-taking NN
. .

`` ``
Investors NNS
, ,
especially RB
dealers NNS
, ,
do VBP
n't RB
want VB
to TO
hold VB
a DT
position NN
over IN
the DT
weekend NN
, ,
'' ''
a DT
trader NN
at IN
Dai-ichi NNP
Securities NNP
said VBD
, ,
adding VBG
, ,
though RB
, ,
that IN
the DT
trading NN
mood NN
remained VBD
positive JJ
through IN
the DT
afternoon NN
session NN
. .

The DT
Tokyo NNP
Stock NNP
Price NNP
Index NNP
-LRB- (
Topix NNP
-RRB- )
of IN
all DT
issues NNS
listed VBN
in IN
the DT
First NNP
Section NN
, ,
which WDT
gained VBD
22.78 CD
points NNS
Thursday NNP
, ,
was VBD
up IN
14.06 CD
points NNS
, ,
or CC
0.53 CD
% NN
, ,
at IN
2679.72 CD
. .

The DT
Second JJ
Section NN
index NN
, ,
which WDT
rose VBD
15.72 CD
points NNS
Thursday NNP
, ,
was VBD
up IN
11.88 CD
points NNS
, ,
or CC
0.32 CD
% NN
, ,
to TO
close VB
at IN
3717.46 CD
. .

Volume NN
in IN
the DT
second JJ
section NN
was VBD
estimated VBN
at IN
30 CD
million CD
shares NNS
, ,
up IN
from IN
28 CD
million CD
Thursday NNP
. .

In IN
turmoil NN
caused VBN
by IN
the DT
previous JJ
Friday NNP
's POS
plunge NN
in IN
New NNP
York NNP
stocks NNS
, ,
the DT
Nikkei NNP
marked VBD
a DT
sharp JJ
647.33-point JJ
fall NN
Monday NNP
. .

But CC
the DT
Nikkei NNP
fell VBD
an DT
overall JJ
1.8 CD
% NN
in IN
value NN
that DT
day NN
compared VBN
with IN
Wall NNP
Street NNP
's POS
far RB
sharper JJR
6.9 CD
% NN
drop NN
on IN
Oct. NNP
13 CD
. .

The DT
Tokyo NNP
market NN
's POS
resiliency NN
helped VBD
participants NNS
to TO
regain VB
confidence NN
gradually RB
as IN
they PRP
spent VBD
more JJR
time NN
on IN
analyzing VBG
factors NNS
that WDT
caused VBD
the DT
Friday NNP
plunge NN
and CC
realized VBD
these DT
problems NNS
were VBD
unique JJ
to TO
New NNP
York NNP
stocks NNS
and CC
not RB
directly RB
related VBN
to TO
Tokyo NNP
. .

The DT
Nikkei NNP
continued VBD
to TO
gain VB
for IN
the DT
rest NN
of IN
the DT
week NN
, ,
adding VBG
1017.69 CD
points NNS
in IN
four CD
days NNS
-- :
more JJR
than IN
erasing VBG
Monday NNP
's POS
losses NNS
. .

But CC
further JJ
major JJ
advances NNS
on IN
the DT
Nikkei NNP
are VBP
n't RB
foreseen VBN
this DT
week NN
by IN
market NN
observers NNS
. .

Investors NNS
are VBP
still RB
waiting VBG
to TO
see VB
how WRB
the DT
U.S. NNP
government NN
will MD
decide VB
on IN
interest NN
rates NNS
and CC
how WRB
the DT
dollar NN
will MD
be VB
stabilized VBN
. .

Some DT
high-priced JJ
issues NNS
made VBD
a DT
comeback NN
Friday NNP
. .

Pioneer NNP
surged VBD
450 CD
yen NN
-LRB- (
$ $
3.16 CD
-RRB- )
to TO
6,050 CD
yen NN
-LRB- (
$ $
42.60 CD
-RRB- )
. .

Kyocera NNP
advanced VBD
80 CD
yen NN
to TO
5,440 CD
. .

Fanuc NNP
gained VBD
100 CD
to TO
7,580 CD
. .
Breweries NNP
attracted VBD
investors NNS
because IN
of IN
their PRP$
land NN
property NN
holdings NNS
that WDT
could MD
figure VB
in IN
development NN
or CC
other JJ
plans NNS
, ,
traders NNS
said VBD
. .

Sapporo NNP
gained VBD
80 CD
to TO
1,920 CD
and CC
Kirin NNP
added VBD
60 CD
to TO
2,070 CD
. .

Housings NNS
, ,
constructions NNS
and CC
pharmaceuticals NNS
continued VBD
to TO
be VB
bought VBN
following VBG
Thursday NNP
's POS
gains NNS
because IN
of IN
strong JJ
earnings NNS
outlooks NNS
. .

Daiwa NNP
House NNP
gained VBD
50 CD
to TO
2,660 CD
. .

Misawa NNP
Homes NNP
was VBD
up IN
20 CD
at IN
2,960 CD
. .

Kajima NNP
advanced VBD
40 CD
to TO
2,120 CD
and CC
Ohbayashi NNP
added VBD
50 CD
to TO
1,730 CD
. .

Fujisawa NNP
added VBD
80 CD
to TO
2,010 CD
and CC
Mochida NNP
advanced VBD
230 CD
to TO
4,400 CD
. .

London JJ
share NN
prices NNS
were VBD
influenced VBN
largely RB
by IN
declines NNS
on IN
Wall NNP
Street NNP
and CC
weakness NN
in IN
the DT
British JJ
pound NN
. .

The DT
key JJ
Financial NNP
Times-Stock NNP
Exchange NNP
100-share JJ
index NN
ended VBD
10.2 CD
points NNS
lower JJR
at IN
2179.1 CD
, ,
above IN
its PRP$
intraday JJ
low NN
of IN
2176.9 CD
, ,
but CC
off IN
the DT
day NN
's POS
high NN
of IN
2189 CD
. .

The DT
index NN
finished VBD
2.4 CD
% NN
under IN
its PRP$
close NN
of IN
2233.9 CD
the DT
previous JJ
Friday NNP
, ,
although IN
it PRP
recouped VBD
some DT
of IN
the DT
sharp JJ
losses NNS
staged VBD
early JJ
last JJ
week NN
on IN
the DT
back RB
of IN
Wall NNP
Street NNP
's POS
fall NN
. .

London NNP
was VBD
weak JJ
throughout IN
Friday NNP
's POS
trading NN
, ,
however RB
, ,
on IN
what WP
dealers NNS
attributed VBD
to TO
generally RB
thin JJ
interest NN
ahead RB
of IN
the DT
weekend NN
and CC
this DT
week NN
's POS
potentially RB
important JJ
U.K. NNP
trade NN
figures NNS
for IN
September NNP
. .

The DT
FT-SE NNP
100 CD
largely RB
remained VBD
within IN
an DT
11-point JJ
range NN
establshed VBN
within IN
the DT
first JJ
hour NN
of IN
trading NN
before IN
it PRP
eased VBD
to TO
an DT
intraday JJ
low JJ
late RB
in IN
the DT
session NN
when WRB
a DT
flurry NN
of IN
program NN
selling VBG
pushed VBN
Wall NNP
Street NNP
lower JJR
. .

The DT
FT NNP
30-share JJ
index NN
closed VBD
11.0 CD
points NNS
lower JJR
at IN
1761.0 CD
. .

Volume NN
was VBD
extremely RB
thin JJ
at IN
351.3 CD
million CD
shares NNS
, ,
the DT
lightest JJS
volume NN
of IN
the DT
week NN
and CC
modestly RB
under IN
Thursday NNP
's POS
387.4 CD
million CD
shares NNS
. .
Dealers NNS
said VBD
the DT
day NN
's POS
action NN
was VBD
featureless JJ
outside IN
some DT
response NN
to TO
sterling NN
's POS
early JJ
weakness NN
against IN
the DT
mark NN
, ,
and CC
fears NNS
that IN
Wall NNP
Street NNP
might MD
open RB
lower JJR
after IN
its PRP$
strong JJ
leap NN
forward RB
Thursday NNP
. .

They PRP
added VBD
that IN
market-makers NNS
were VBD
largely RB
sidelined VBN
after IN
aggressively RB
supporting VBG
the DT
market NN
Thursday NNP
in IN
their PRP$
quest NN
to TO
cover VB
internal JJ
shortages NNS
of IN
FT-SE NNP
100 CD
shares NNS
. .

Interest NN
may MD
remain VB
limited JJ
into IN
tomorrow NN
's POS
U.K. NNP
trade NN
figures NNS
, ,
which WDT
the DT
market NN
will MD
be VB
watching VBG
closely RB
to TO
see VB
if IN
there EX
is VBZ
any DT
improvement NN
after IN
disappointing JJ
numbers NNS
in IN
the DT
previous JJ
two CD
months NNS
. .

The DT
key JJ
corporate JJ
news NN
of IN
the DT
day NN
was VBD
that IN
British JJ
Airways NNPS
decided VBD
to TO
withdraw VB
from IN
a DT
management-led JJ
bid NN
for IN
UAL NNP
Corp. NNP
, ,
the DT
parent NN
of IN
United NNP
Airlines NNPS
. .

British JJ
Airways NNPS
rose VBD
initially RB
after IN
announcing VBG
its PRP$
withdrawal NN
from IN
the DT
UAL NNP
deal NN
. .

Dealers NNS
said VBD
they PRP
viewed VBD
the DT
initial JJ
# #
390-million CD
-LRB- (
$ $
622 CD
million CD
-RRB- )
outlay NN
for IN
a DT
15 CD
% NN
stake NN
in IN
the DT
airline NN
as IN
a DT
bit NN
much JJ
. .

Its PRP$
shares NNS
slid VBD
in IN
late JJ
dealings NNS
to TO
close VB
a DT
penny NN
per IN
share NN
lower JJR
at IN
197 CD
pence NN
. .

The DT
airline NN
was VBD
the DT
most RBS
active JJ
FT-SE NNP
100 CD
at IN
8.2 CD
million CD
shares NNS
traded VBN
. .

The DT
next JJ
most RBS
active JJ
top-tier JJ
stock NN
was VBD
B.A.T NNP
Industries NNPS
, ,
the DT
target NN
of IN
Sir NNP
James NNP
Goldsmith NNP
's POS
# #
13.4 CD
billion CD
bid NN
. .

The DT
company NN
gained VBD
shareholder NN
approval NN
Thursday NNP
to TO
restructure VB
in IN
a DT
bid NN
to TO
fend VB
off IN
the DT
hostile JJ
takeover NN
. .

Sir NNP
James NNP
said VBD
Thursday NNP
night NN
that IN
his PRP$
plans NNS
for IN
the DT
takeover NN
had VBD
n't RB
changed VBN
. .

B.A.T NNP
ended VBD
the DT
day NN
at IN
778 CD
, ,
down JJ
5 NN
, ,
on IN
turnover NN
of IN
7.5 CD
million CD
shares NNS
. .

Dealers NNS
said VBD
it PRP
was VBD
hit VBN
by IN
some DT
profit-taking NN
after IN
gains NNS
since IN
mid-week NN
. .

In IN
other JJ
active JJ
shares NNS
, ,
Trusthouse NNP
Forte NNP
shed VB
10 CD
to TO
294 CD
on IN
volume NN
of IN
6.4 CD
million CD
shares NNS
after IN
a DT
Barclays NNP
De NNP
Zoete NNP
Wedd NNP
downgrading NN
, ,
while IN
Hillsdown NNP
Holdings NNP
, ,
a DT
food NN
products NNS
concern VBP
, ,
was VBD
boosted VBN
2 CD
to TO
271 CD
after IN
it PRP
disclosed VBD
it PRP
would MD
seek VB
shareholder NN
approval NN
to TO
begin VB
share NN
repurchases NNS
. .

Elsewhere RB
in IN
Europe NNP
, ,
share NN
prices NNS
closed VBD
higher JJR
in IN
Stockholm NNP
, ,
Brussels NNP
and CC
Milan NNP
. .

Prices NNS
were VBD
lower JJR
in IN
Frankfurt NNP
, ,
Zurich NNP
, ,
Paris NNP
and CC
Amsterdam NNP
. .

South JJ
African JJ
gold NN
stocks NNS
closed VBD
moderately RB
lower JJR
. .

Share NN
prices NNS
closed VBD
higher JJR
in IN
Sydney NNP
, ,
Taipei NNP
, ,
Wellington NNP
, ,
Manila NNP
, ,
Hong NNP
Kong NNP
and CC
Singapore NNP
and CC
were VBD
lower JJR
in IN
Seoul NNP
. .

Here RB
are VBP
price NN
trends NNS
on IN
the DT
world NN
's POS
major JJ
stock NN
markets NNS
, ,
as IN
calculated VBN
by IN
Morgan NNP
Stanley NNP
Capital NNP
International NNP
Perspective NNP
, ,
Geneva NNP
. .

To TO
make VB
them PRP
directly RB
comparable JJ
, ,
each DT
index NN
is VBZ
based VBN
on IN
the DT
close NN
of IN
1969 CD
equaling VBG
100 CD
. .

The DT
percentage NN
change NN
is VBZ
since IN
year-end NN
. .

The DT
U.S. NNP
is VBZ
required VBN
to TO
notify VB
foreign JJ
dictators NNS
if IN
it PRP
knows VBZ
of IN
coup NN
plans NNS
likely JJ
to TO
endanger VB
their PRP$
lives NNS
, ,
government NN
officials NNS
said VBD
. .

The DT
notification NN
policy NN
was VBD
part NN
of IN
a DT
set NN
of IN
guidelines NNS
on IN
handling NN
coups NNS
outlined VBN
in IN
a DT
secret JJ
1988 CD
exchange NN
of IN
letters NNS
between IN
the DT
Reagan NNP
administration NN
and CC
the DT
Senate NNP
Intelligence NNP
Committee NNP
. .

The DT
existence NN
of IN
the DT
guidelines NNS
has VBZ
become VBN
known VBN
since IN
President NNP
Bush NNP
disclosed VBD
them PRP
privately RB
to TO
seven CD
Republican NNP
senators NNS
at IN
a DT
White NNP
House NNP
meeting NN
last JJ
Monday NNP
. .

Officials NNS
familiar JJ
with IN
the DT
meeting NN
said VBD
Mr. NNP
Bush NNP
cited VBD
the DT
policy NN
as IN
an DT
example NN
of IN
the DT
sort NN
of IN
congressional JJ
requirements NNS
the DT
administration NN
contends VBZ
contribute VB
to TO
the DT
failure NN
of IN
such JJ
covert JJ
actions NNS
as IN
this DT
month NN
's POS
futile JJ
effort NN
to TO
oust VB
Panamanian JJ
dictator NN
Manuel NNP
Noriega NNP
. .

According VBG
to TO
the DT
officials NNS
, ,
Mr. NNP
Bush NNP
even RB
read VB
to TO
the DT
senators NNS
selections NNS
from IN
a DT
highly RB
classified VBN
letter NN
from IN
the DT
committee NN
to TO
the DT
White NNP
House NNP
discussing VBG
the DT
guidelines NNS
. .

They PRP
said VBD
the DT
president NN
conceded VBD
the DT
notification NN
requirement NN
did VBD
n't RB
affect VB
his PRP$
decision NN
to TO
lend VB
only RB
minor JJ
support NN
to TO
this DT
month NN
's POS
Panama NNP
coup NN
effort NN
. .

No DT
notification NN
was VBD
ever RB
considered VBN
, ,
officials NNS
said VBD
, ,
apparently RB
because IN
the DT
U.S. NNP
did VBD
n't RB
think VB
the DT
coup NN
plotters NNS
intended VBN
to TO
kill VB
Mr. NNP
Noriega NNP
, ,
but CC
merely RB
sought VBD
to TO
imprison VB
him PRP
. .

What WP
's VBZ
more JJR
, ,
both DT
administration NN
and CC
congressional JJ
officials NNS
hint VBP
that IN
the DT
notification NN
requirement NN
is VBZ
likely JJ
to TO
be VB
dropped VBN
from IN
the DT
guidelines NNS
on IN
coup NN
attempts NNS
that WDT
are VBP
being VBG
rewritten VBN
by IN
the DT
panel NN
and CC
the DT
White NNP
House NNP
. .

The DT
rewriting VBG
was VBD
launched VBN
at IN
a DT
meeting NN
between IN
Mr. NNP
Bush NNP
and CC
intelligence NN
committee NN
leaders NNS
Oct. NNP
12 CD
, ,
a DT
few JJ
days NNS
before IN
the DT
meeting NN
at IN
which WDT
the DT
president NN
complained VBD
about IN
the DT
rules NNS
. .

However RB
, ,
the DT
disclosure NN
of IN
the DT
guidelines NNS
, ,
first JJ
reported VBD
last JJ
night NN
by IN
NBC NNP
News NNP
, ,
is VBZ
already RB
being VBG
interpreted VBN
on IN
Capitol NNP
Hill NNP
as IN
an DT
unfair JJ
effort NN
to TO
pressure VB
Congress NNP
. .

It PRP
has VBZ
reopened VBN
the DT
bitter JJ
wrangling NN
between IN
the DT
White NNP
House NNP
and CC
Congress NNP
over IN
who WP
is VBZ
responsible JJ
for IN
the DT
failure NN
to TO
oust VB
Mr. NNP
Noriega NNP
and CC
, ,
more RBR
broadly RB
, ,
for IN
difficulties NNS
in IN
carrying VBG
out RP
covert JJ
activities NNS
abroad RB
. .

A DT
statement NN
issued VBN
by IN
the DT
office NN
of IN
the DT
committee NN
chairman NN
, ,
Sen. NNP
David NNP
Boren NNP
-LRB- (
D. NNP
, ,
Okla. NNP
-RRB- )
, ,
charged VBN
that IN
the DT
disclosure NN
is VBZ
part NN
of IN
a DT
continuing VBG
effort NN
to TO
shift VB
the DT
criticism NN
for IN
the DT
failure NN
of IN
the DT
recent JJ
coup NN
attempt NN
in IN
Panama NNP
. .

The DT
statement NN
added VBD
, ,
`` ``
Someone NN
has VBZ
regrettably RB
chosen VBN
to TO
selectively RB
summarize VB
portions NNS
of IN
highly RB
classified VBN
correspondence NN
between IN
the DT
two CD
branches NNS
of IN
government NN
. .

Not RB
only RB
does VBZ
this DT
come JJ
close RB
to TO
a DT
violation NN
of IN
law NN
, ,
it PRP
violates VBZ
the DT
trust NN
we PRP
have VBP
all DT
worked VBN
to TO
develop VB
. .
'' ''

Sen. NNP
Boren NNP
said VBD
, ,
`` ``
It PRP
's VBZ
time NN
to TO
stop VB
bickering NN
and CC
work NN
together RB
to TO
develop VB
a DT
clear JJ
and CC
appropriate JJ
policy NN
to TO
help VB
the DT
country NN
in IN
the DT
future NN
. .

I PRP
've VBP
invited VBN
the DT
president NN
to TO
send VB
his PRP$
suggestions NNS
to TO
the DT
committee NN
. .
'' ''

Republican NNP
Sen. NNP
William NNP
Cohen NNP
of IN
Maine NNP
, ,
the DT
panel NN
's POS
vice NN
chairman NN
, ,
said VBD
of IN
the DT
disclosure NN
that IN
`` ``
a DT
text NN
torn VBN
out IN
of IN
context NN
is VBZ
a DT
pretext NN
, ,
and CC
it PRP
is VBZ
unfair JJ
for IN
those DT
in NN
the DT
White NNP
House NNP
who WP
are VBP
leaking VBG
to TO
present VB
the DT
evidence NN
in IN
a DT
selective JJ
fashion NN
. .
'' ''

Sen. NNP
Boren NNP
said VBD
the DT
committee NN
could MD
n't RB
defend VB
itself PRP
by IN
making VBG
the DT
documents NNS
public JJ
because IN
that DT
would MD
violate VB
classification NN
rules NNS
. .

But CC
the DT
chairman NN
and CC
other JJ
committee NN
members NNS
stressed VBD
that IN
the DT
notification NN
guideline NN
was VBD
n't RB
imposed VBN
on IN
the DT
White NNP
House NNP
by IN
a DT
meddling VBG
Congress NNP
. .

Instead RB
, ,
both DT
congressional JJ
and CC
administration NN
officials NNS
agreed VBD
, ,
it PRP
grew VBD
out RP
of IN
talks NNS
about IN
coup-planning NN
in IN
Panama NNP
that WDT
were VBD
initiated VBN
by IN
the DT
administration NN
in IN
July NNP
1988 CD
and CC
stretched VBD
into IN
last JJ
October NNP
. .

The DT
guideline NN
was VBD
n't RB
a DT
law NN
, ,
but CC
a DT
joint JJ
interpretation NN
of IN
how WRB
the DT
U.S. NNP
might MD
operate VB
during IN
foreign JJ
coups NNS
in IN
light NN
of IN
the DT
longstanding JJ
presidential JJ
order NN
banning VBG
a DT
U.S. NNP
role NN
in IN
assassinations NNS
. .

In IN
fact NN
, ,
yesterday NN
the DT
administration NN
and CC
Congress NNP
were VBD
still RB
differing VBG
on IN
what WP
had VBD
been VBN
agreed VBN
to TO
. .

One CD
administration NN
official NN
said VBD
notification NN
was VBD
required VBN
even RB
if IN
the DT
U.S. NNP
`` ``
gets VBZ
wind NN
'' ''
of IN
somebody NN
else RB
's POS
coup NN
plans NNS
that WDT
seem VBP
likely JJ
to TO
endanger VB
a DT
dictator NN
's POS
life NN
. .

But CC
a DT
congressional JJ
source NN
close RB
to TO
the DT
panel NN
said VBD
the DT
rule NN
only RB
covered VBD
coup NN
plans NNS
directly RB
involving VBG
the DT
U.S. NNP
. .

Although IN
the DT
notification NN
guideline NN
was VBD
n't RB
carried VBN
out IN
in IN
this DT
month NN
's POS
coup NN
attempt NN
, ,
some DT
administration NN
officials NNS
argue VBP
that IN
it PRP
may MD
have VB
led VBN
to TO
hesitation NN
and CC
uncertainty NN
on IN
the DT
part NN
of IN
U.S. NNP
intelligence NN
and CC
military JJ
operatives NNS
in IN
Panama NNP
. .
One CD
senior JJ
administration NN
official NN
called VBD
the DT
guideline NN
`` ``
outrageous JJ
'' ''
and CC
said VBD
it PRP
could MD
make VB
U.S. NNP
operatives NNS
reluctant JJ
to TO
even RB
listen VB
to TO
coup NN
plans NNS
for IN
fear NN
they PRP
may MD
get VB
into IN
legal JJ
trouble NN
. .

The DT
issue NN
came VBD
to TO
a DT
head NN
last JJ
year NN
, ,
officials NNS
recalled VBD
, ,
partly RB
because IN
the DT
Reagan NNP
administration NN
had VBD
sought VBN
unsuccessfully RB
to TO
win VB
committee NN
approval NN
of IN
funding NN
for IN
new JJ
Panama NNP
coup NN
efforts NNS
. .

In IN
addition NN
, ,
both DT
administration NN
and CC
congressional JJ
officials NNS
said VBD
the DT
need NN
for IN
guidelines NNS
on IN
coups NNS
and CC
assassinations NNS
was VBD
partly RB
spurred VBN
by IN
a DT
White NNP
House NNP
desire NN
to TO
avoid VB
nasty JJ
overseas JJ
surprises NNS
during IN
the DT
election NN
campaign NN
. .

Though IN
the DT
assassination NN
ban NN
is VBZ
a DT
White NNP
House NNP
order NN
that IN
Congress NNP
never RB
voted VBD
on IN
, ,
the DT
intelligence NN
committees NNS
can MD
exercise VB
influence NN
over IN
its PRP$
interpretation NN
. .

Last JJ
week NN
, ,
Central NNP
Intelligence NNP
Agency NNP
Director NNP
William NNP
Webster NNP
publicly RB
called VBD
on IN
Congress NNP
to TO
provide VB
new JJ
interpretations NNS
of IN
the DT
assassination NN
order NN
that WDT
would MD
permit VB
the DT
U.S. NNP
more JJR
freedom NN
to TO
act VB
in IN
coups NNS
. .

The DT
administration NN
has VBZ
reacted VBN
to TO
criticism NN
that IN
it PRP
mishandled VBD
the DT
latest JJS
coup NN
attempt NN
by IN
seeking VBG
to TO
blame VB
Congress NNP
for IN
restrictions NNS
the DT
White NNP
House NNP
said VBD
have VBP
hampered VBN
its PRP$
freedom NN
of IN
action NN
. .

However RB
, ,
last JJ
week NN
Mr. NNP
Webster NNP
's POS
two CD
top JJ
CIA NNP
deputies NNS
said VBD
congressional JJ
curbs NNS
had VBD
n't RB
hampered VBN
the DT
spy NN
agency NN
's POS
role NN
in IN
the DT
coup NN
attempt NN
in IN
Panama NNP
. .

Nevertheless RB
, ,
the DT
administration NN
's POS
criticisms NNS
appeared VBD
to TO
have VB
made VBN
some DT
headway NN
with IN
Sens. NNP
Boren NNP
and CC
Cohen NNP
after IN
their PRP$
Oct. NNP
12 CD
meeting NN
with IN
the DT
president NN
. .

The DT
three CD
men NNS
agreed VBD
to TO
rewrite VB
the DT
guidelines NNS
, ,
without IN
changing VBG
the DT
basic JJ
assassination NN
ban NN
, ,
to TO
clear VB
up IN
any DT
ambiguities NNS
that WDT
may MD
have VB
hampered VBN
U.S. NNP
encouragement NN
of IN
coups NNS
against IN
anti-American JJ
leaders NNS
. .

The DT
new JJ
argument NN
over IN
the DT
notification NN
guideline NN
, ,
however RB
, ,
could MD
sour VB
any DT
atmosphere NN
of IN
cooperation NN
that WDT
existed VBD
. .

Gerald NNP
F. NNP
Seib NNP
contributed VBD
to TO
this DT
article NN
. .

-LRB- (
During IN
its PRP$
centennial NN
year NN
, ,
The DT
Wall NNP
Street NNP
Journal NNP
will MD
report VB
events NNS
of IN
the DT
past JJ
century NN
that WDT
stand VBP
as IN
milestones NNS
of IN
American JJ
business NN
history NN
. .
-RRB- )

MUTUAL JJ
FUNDS NNS
ARRIVED VBD
IN IN
THE DT
U.S. NNP
during IN
the DT
Roaring NNP
Twenties NNP
-LRB- (
they PRP
had VBD
been VBN
in IN
Britain NNP
for IN
a DT
century NN
-RRB- )
, ,
but CC
they PRP
did VBD
n't RB
boom VB
until IN
the DT
money NN
market NN
fund NN
was VBD
created VBN
in IN
the DT
1970s NNS
. .

By IN
1980 CD
, ,
there EX
were VBD
more JJR
than IN
100 CD
such JJ
funds NNS
. .

Besides IN
creating VBG
a DT
vehicle NN
for IN
investors NNS
, ,
money NN
market NN
funds NNS
also RB
helped VBD
rewrite VB
banking NN
regulations NNS
. .

The DT
idea NN
was VBD
to TO
let VB
small JJ
investors NNS
, ,
the DT
backbone NN
of IN
the DT
fund NN
business NN
, ,
deal NN
in IN
the DT
money NN
market NN
's POS
high JJ
short-term JJ
interest NN
rates NNS
. .

This DT
had VBD
been VBN
the DT
exclusive JJ
province NN
of IN
those DT
rich JJ
enough RB
to TO
use VB
six-figure JJ
sums NNS
to TO
get VB
income NN
that WDT
was VBD
figured VBN
beyond IN
the DT
third JJ
or CC
fourth JJ
decimal NN
place NN
. .

The DT
now-standard JJ
price NN
of IN
$ $
1 CD
a DT
share NN
came VBD
about IN
by IN
accident NN
. .

An DT
early JJ
fund NN
had VBD
filed VBN
a DT
registration NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
that WDT
included VBD
a DT
fixed VBN
$ $
1 CD
price NN
. .

It PRP
arrived VBD
just RB
as IN
the DT
regulator NN
handling VBG
such JJ
operations NNS
was VBD
retiring VBG
. .

His PRP$
successor NN
approved VBD
the DT
$ $
1 CD
price NN
in IN
the DT
process NN
of IN
clearing VBG
the DT
backed-up JJ
papers NNS
on IN
his PRP$
desk NN
. .

When WRB
Dreyfus NNP
started VBD
the DT
first JJ
advertising-backed JJ
retail JJ
fund NN
in IN
February NNP
1974 CD
, ,
it PRP
was VBD
priced VBN
at IN
$ $
10 CD
a DT
share NN
-LRB- (
and CC
reached VBN
$ $
1 CD
billion CD
in IN
assets NNS
in IN
one CD
year NN
. .
-RRB- )

Dreyfus NNP
moved VBD
to TO
the DT
$ $
1 CD
price NN
after IN
the DT
SEC NNP
set VBD
standards NNS
-- :
an DT
average JJ
120-day JJ
maturity NN
of IN
high-grade JJ
paper NN
-- :
that WDT
are VBP
still RB
the DT
rule NN
. .

Keeping VBG
the DT
listed VBN
price NN
at IN
a DT
dollar NN
is VBZ
primarily RB
a DT
convenience NN
. .

Actually RB
, ,
the DT
funds NNS
do VBP
fluctuate VB
, ,
but CC
beyond IN
the DT
third JJ
decimal NN
place NN
. .

Rounding-off NN
keeps VBZ
them PRP
at IN
$ $
1 CD
. .

Eventually RB
, ,
the DT
money NN
funds NNS
' POS
success NN
forced VBD
relaxation NN
of IN
curbs NNS
on IN
bank NN
interest NN
rates NNS
to TO
allow VB
banks NNS
to TO
offer VB
competing VBG
yields NNS
. .

The DT
new JJ
instrument NN
also RB
introduced VBD
many JJ
to TO
the DT
industry NN
-- :
30 CD
% NN
of IN
fund NN
owners NNS
-LRB- (
there EX
are VBP
more JJR
than IN
54 CD
million CD
accounts NNS
-RRB- )
started VBD
with IN
a DT
money NN
fund NN
. .

Today NN
more JJR
than IN
470 CD
money NN
market NN
funds NNS
have VBP
total JJ
assets NNS
exceeding VBG
$ $
350 CD
billion CD
. .

-LRB- (
The DT
companion NN
tax-exempt JJ
funds NNS
add VBP
$ $
71 CD
billion CD
. .
-RRB- )

Dreyfus NNP
alone RB
has VBZ
seen VBN
its PRP$
money NN
market NN
funds NNS
grow VBP
from IN
$ $
1 CD
billion CD
in IN
1975 CD
to TO
closes VBZ
to TO
$ $
15 CD
billion CD
today NN
. .

Procter NNP
& CC
Gamble NNP
Co. NNP
and CC
Noxell NNP
Corp. NNP
said VBD
they PRP
received VBD
early JJ
termination NN
of IN
the DT
waiting VBG
period NN
under IN
the DT
Hart-Scott-Rodino NNP
Act NNP
regarding VBG
the DT
proposed VBN
$ $
1.4 CD
billion CD
merger NN
of IN
Noxell NNP
into IN
P&G NNP
. .

Shareholders NNS
of IN
Noxell NNP
, ,
of IN
Hunt NNP
Valley NNP
, ,
Md. NNP
, ,
will MD
vote VB
on IN
the DT
merger NN
at IN
a DT
special JJ
meeting NN
on IN
Nov. NNP
30 CD
, ,
the DT
companies NNS
said VBD
. .

P&G NNP
, ,
Cincinnati NNP
, ,
agreed VBD
to TO
exchange VB
0.272 CD
share NN
of IN
its PRP$
common JJ
stock NN
for IN
each DT
share NN
of IN
Noxell NNP
common JJ
and CC
Class NNP
B NNP
stock NN
, ,
a DT
total NN
of IN
about IN
11 CD
million CD
P&G NNP
shares NNS
. .

The DT
transaction NN
would MD
mark VB
the DT
entry NN
of IN
P&G NNP
into IN
cosmetics NNS
. .

The DT
company NN
already RB
markets VBZ
a DT
wide JJ
range NN
of IN
detergents NNS
, ,
food NN
, ,
household NN
and CC
health-care NN
products NNS
. .

Shareholders NNS
of IN
Messerschmitt-Boelkow-Blohm NNP
G.m.b NNP
. .
H. NNP
postponed VBD
their PRP$
formal JJ
endorsement NN
of IN
a DT
merger NN
with IN
Daimler-Benz NNP
AG NNP
until IN
another DT
meeting NN
on IN
Nov. NNP
17 CD
. .

The DT
owners NNS
of IN
the DT
defense NN
and CC
aerospace NN
concern NN
, ,
which WDT
include VBP
three CD
regional JJ
states NNS
, ,
several JJ
industrial JJ
companies NNS
and CC
banks NNS
, ,
met VBD
Friday NNP
to TO
discuss VB
the DT
final JJ
terms NNS
of IN
the DT
transaction NN
, ,
in IN
which WDT
Daimler-Benz NNP
will MD
acquire VB
50.01 CD
% NN
of IN

But CC
agreement NN
aparently RB
could MD
n't RB
be VB
reached VBN
because IN
of IN
opposition NN
from IN
the DT
states NNS
of IN
Hamburg NNP
and CC
Bremen NNP
, ,
which WDT
are VBP
demanding VBG
more JJR
influence NN
over IN
the DT
German NNP
Airbus NNP
operations NNS
and CC
a DT
better JJR
guarantee NN
against IN
job NN
losses NNS
in IN
the DT
troubled JJ
Northern JJ
German JJ
region NN
. .

The DT
two CD
states NNS
and CC
the DT
state NN
of IN
Bavaria NNP
still RB
hold VB
a DT
majority NN
in IN
MBB NNP
, ,
but CC
their PRP$
stake NN
will MD
fall VB
to TO
around IN
30 CD
% NN
after IN
Daimler-Benz NNP
acquires VBZ
its PRP$
stake NN
in IN
the DT
concern NN
. .

Jeffrey NNP
E. NNP
Levin NNP
was VBD
named VBN
vice NN
president NN
and CC
chief JJ
economist NN
of IN
this DT
commodity NN
futures NNS
and CC
options NNS
exchange VBP
. .

He PRP
had VBD
been VBN
associate JJ
professor NN
in IN
the DT
department NN
of IN
finance NN
at IN
Seton NNP
Hall NNP
University NNP
. .

SIERRA NNP
TUCSON NNP
Cos. NNP
said VBD
it PRP
completed VBD
its PRP$
initial JJ
public JJ
offering NN
of IN
2.5 CD
million CD
common JJ
shares NNS
, ,
which WDT
raised VBD
$ $
30 CD
million CD
. .

The DT
Tucson NNP
, ,
Ariz. NNP
, ,
operator NN
of IN
addiction-treatment JJ
centers NNS
said VBD
proceeds NNS
will MD
be VB
used VBN
for IN
expansion NN
, ,
to TO
pay VB
debt NN
and CC
for IN
general JJ
corporate JJ
purposes NNS
. .

Oppenheimer NNP
& CC
Co. NNP
was VBD
the DT
lead NN
underwriter NN
. .

The DT
government NN
issues NNS
its PRP$
first JJ
reading NN
on IN
third-quarter JJ
real JJ
gross JJ
national JJ
product NN
this DT
week NN
in IN
a DT
report NN
that WDT
is VBZ
expected VBN
to TO
disclose VB
much RB
tamer JJR
inflation NN
. .

The DT
consensus NN
view NN
on IN
real JJ
GNP NNP
, ,
the DT
total JJ
value NN
of IN
the DT
nation NN
's POS
output NN
of IN
goods NNS
and CC
services NNS
adjusted VBN
for IN
inflation NN
, ,
calls VBZ
for IN
a DT
2.3 CD
% NN
gain NN
, ,
down RB
from IN
the DT
second JJ
quarter NN
's POS
2.5 CD
% NN
, ,
according VBG
to TO
MMS NNP
International NNP
, ,
a DT
unit NN
of IN
McGraw-Hill NNP
Inc. NNP
, ,
New NNP
York NNP
. .

But CC
inflation NN
, ,
as IN
measured VBN
by IN
the DT
GNP NNP
deflator NN
in IN
Thursday NNP
's POS
report NN
, ,
is VBZ
expected VBN
to TO
rise VB
only RB
3.5 CD
% NN
, ,
down RB
from IN
4.6 CD
% NN
in IN
the DT
second JJ
quarter NN
. .

`` ``
Inflation NN
could MD
be VB
a DT
real JJ
surprise NN
, ,
'' ''
said VBD
Samuel NNP
D. NNP
Kahan NNP
, ,
chief JJ
financial JJ
economist NN
at IN
Kleinwort NNP
Benson NNP
Government NNP
Securities NNP
Inc. NNP
, ,
in IN
Chicago NNP
. .

`` ``
If IN
that DT
gets VBZ
people NNS
excited VBN
, ,
it PRP
could MD
serve VB
as IN
an DT
impetus NN
to TO
the DT
fixed-income NN
markets NNS
to TO
lower JJR
their PRP$
rates NNS
, ,
'' ''
he PRP
added VBD
. .

The DT
week NN
's POS
other JJ
notable JJ
indicators NNS
include VBP
mid-October NNP
auto NN
sales NNS
, ,
September NNP
durable JJ
goods NNS
orders NNS
as RB
well RB
as IN
September NNP
personal JJ
income NN
, ,
personal JJ
consumption NN
and CC
the DT
saving VBG
rate NN
. .

Most JJS
are VBP
expected VBN
to TO
fall VB
below IN
previous-month JJ
levels NNS
. .

Many JJ
economists NNS
see VBP
even RB
slower JJR
GNP NNP
growth NN
for IN
the DT
remainder NN
of IN
the DT
year NN
, ,
with IN
some DT
leaning VBG
more RBR
strongly RB
toward IN
a DT
possible JJ
recession NN
. .

In IN
addition NN
to TO
softer JJR
production NN
data NNS
, ,
weaker JJR
housing NN
starts VBZ
and CC
lower JJR
corporate JJ
profits NNS
currently RB
in IN
evidence NN
, ,
some DT
analysts NNS
believe VBP
the DT
two CD
recent JJ
natural JJ
disasters NNS
-- :
Hurricane NNP
Hugo NNP
and CC
the DT
San NNP
Francisco NNP
earthquake NN
-- :
will MD
carry VB
economic JJ
ramifications NNS
in IN
the DT
fourth JJ
quarter NN
. .

The DT
recent JJ
one-day JJ
, ,
190-point JJ
drop NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
seems VBZ
to TO
be VB
significant JJ
to TO
economists NNS
mainly RB
for IN
its PRP$
tacit JJ
comment NN
on IN
the DT
poor JJ
quality NN
of IN
third-quarter JJ
profits NNS
now RB
being VBG
reported VBN
. .

`` ``
The DT
stock NN
market NN
is VBZ
sick JJ
because IN
profits NNS
are VBP
crumbling VBG
, ,
'' ''
says VBZ
Michael NNP
K. NNP
Evans NNP
, ,
president NN
of IN
Evans NNP
Economics NNP
Inc. NNP
, ,
Washington NNP
. .

The DT
economy NN
, ,
he PRP
noted VBD
, ,
moves VBZ
the DT
market NN
, ,
not RB
vice NN
versa RB
. .

On IN
the DT
other JJ
hand NN
, ,
Mr. NNP
Evans NNP
expects VBZ
the DT
hurricane NN
and CC
the DT
earthquake NN
`` ``
to TO
take VB
a DT
hunk NN
out IN
of IN
fourth-quarter JJ
GNP NNP
. .
'' ''

His PRP$
estimate NN
of IN
3.3 CD
% NN
for IN
third-quarter JJ
GNP NNP
is VBZ
higher JJR
than IN
the DT
consensus NN
largely RB
because IN
he PRP
believes VBZ
current JJ
inventories NNS
are VBP
n't RB
as RB
low JJ
as IN
official JJ
figures NNS
indicate VBP
. .

Demand NN
, ,
he PRP
believes VBZ
, ,
is VBZ
being VBG
met VBN
from IN
overhang NN
rather RB
than IN
new JJ
production NN
. .

By IN
and CC
large JJ
, ,
economists NNS
believe VBP
the DT
two CD
natural JJ
catastrophes NNS
will MD
limit VB
economic JJ
damage NN
to TO
their PRP$
regions NNS
. .

Edward NNP
J. NNP
Campbell NNP
, ,
economist NN
at IN
Brown NNP
Brothers NNP
Harriman NNP
& CC
Co. NNP
, ,
New NNP
York NNP
, ,
noted VBD
that IN
large JJ
increases NNS
in IN
construction NN
activity NN
along IN
with IN
government NN
and CC
private JJ
relief NN
efforts NNS
could MD
offset VB
loss NN
of IN
production NN
in IN
those DT
areas NNS
. .

Gary NNP
Ciminero NNP
, ,
economist NN
at IN
Fleet\/Norstar NNP
Financial NNP
Group NNP
, ,
Providence NNP
, ,
R.I. NNP
, ,
expects VBZ
the DT
deflator NN
to TO
rise VB
3.7 CD
% NN
, ,
well RB
below IN
the DT
second JJ
quarter NN
's POS
4.6 CD
% NN
, ,
partly RB
because IN
of IN
what WP
he PRP
believes VBZ
will MD
be VB
temporarily RB
better JJR
price NN
behavior NN
. .

He PRP
expects VBZ
real JJ
GNP NNP
growth NN
of IN
only RB
2.1 CD
% NN
for IN
the DT
quarter NN
, ,
noting VBG
a DT
wider JJR
trade NN
deficit NN
, ,
slower JJR
capital NN
and CC
government NN
spending NN
and CC
the DT
lower JJR
inventory NN
figures NNS
. .

Sung NNP
Won NNP
Sohn NNP
, ,
chief JJ
economist NN
at IN
Norwest NNP
Corp. NNP
, ,
Minneapolis NNP
, ,
holds VBZ
that IN
the DT
recent JJ
stock-market NN
volatility NN
`` ``
increases VBZ
the DT
possibility NN
of IN
economic JJ
recession NN
and CC
reinforces VBZ
the DT
bad JJ
news NN
'' ''
from IN
recent JJ
trade NN
deficit NN
, ,
employment NN
and CC
housing NN
reports NNS
. .

The DT
consensus NN
calls VBZ
for IN
a DT
0.5 CD
% NN
increase NN
in IN
September NNP
personal JJ
income NN
and CC
a DT
0.3 CD
% NN
gain NN
in IN
consumption NN
. .

In IN
August NNP
, ,
personal JJ
income NN
rose VBD
0.4 CD
% NN
and CC
personal JJ
consumption NN
increased VBN
0.9 CD
% NN
. .

Charles NNP
Lieberman NNP
, ,
managing VBG
director NN
of IN
financial JJ
markets NNS
reasearch NN
at IN
Manufacturers NNP
Hanover NNP
Securities NNP
Corp. NNP
, ,
New NNP
York NNP
, ,
said VBD
Hurrican NNP
Hugo NNP
shaved VBD
0.1 CD
% NN
to TO
0.2 CD
% NN
from IN
personal-income JJ
growth NN
, ,
because IN
of IN
greatly RB
diminished VBN
rental JJ
income NN
from IN
tourism NN
. .

Durable JJ
goods NNS
orders NNS
for IN
September NNP
, ,
due JJ
out IN
tomorrow NN
, ,
are VBP
expected VBN
to TO
show VB
a DT
slip NN
of IN
1 CD
% NN
, ,
compared VBN
with IN
August NNP
's POS
3.9 CD
% NN
increase NN
. .

As IN
usual JJ
, ,
estimates VBZ
on IN
the DT
fickle JJ
report NN
are VBP
wide JJ
, ,
running VBG
from IN
a DT
drop NN
of IN
3.5 CD
% NN
to TO
a DT
gain NN
of IN
1.6 CD
% NN
. .

HASTINGS NNP
MANUFACTURING NNP
Co. NNP
declared VBD
a DT
regular JJ
quarterly JJ
dividend NN
of IN
10 CD
cents NNS
a DT
share NN
and CC
an DT
extra JJ
dividend NN
of IN
five CD
cents NNS
a DT
share NN
on IN
its PRP$
common JJ
stock NN
, ,
payable JJ
Dec. NNP
15 CD
to TO
shares NNS
of IN
record NN
Nov. NNP
17 CD
. .

This DT
is VBZ
the DT
11th JJ
consecutive JJ
quarter NN
in IN
which WDT
the DT
company NN
has VBZ
paid VBN
shareholders NNS
an DT
extra JJ
dividend NN
of IN
five CD
cents NNS
. .

The DT
Hastings NNP
, ,
Mich. NNP
, ,
concern NN
makes VBZ
piston NN
rings NNS
, ,
filters NNS
and CC
fuel NN
pumps NNS
. .

Vickers NNP
PLC NNP
, ,
a DT
United NNP
Kingdom NNP
defense NN
and CC
engineering NN
company NN
, ,
said VBD
an DT
investment NN
unit NN
controlled VBN
by IN
New NNP
Zealand NNP
financier NN
Ron NNP
Brierley NNP
raised VBD
its PRP$
stake NN
in IN
the DT
company NN
Friday NNP
to TO
15.02 CD
% NN
from IN
about IN
14.6 CD
% NN
Thursday NNP
and CC
from IN
13.7 CD
% NN
the DT
previous JJ
week NN
. .

I.E.P. NNP
Securities NNP
Ltd. NNP
, ,
a DT
unit NN
of IN
Mr. NNP
Brierley NNP
's POS
Hong NNP
Kong-based NNP
Industrial NNP
Equity NNP
-LRB- (
Pacific NNP
-RRB- )
Ltd. NNP
, ,
boosted VBD
its PRP$
holdings NNS
in IN
Vickers NNP
to TO
38.8 CD
million CD
shares NNS
. .

The DT
latest JJS
purchase NN
follows VBZ
small JJ
increases NNS
in IN
his PRP$
holdings NNS
made VBN
over IN
the DT
past JJ
five CD
months NNS
. .

In IN
May NNP
, ,
Mr. NNP
Brierley NNP
's POS
stake NN
shrank VBD
to TO
8.7 CD
% NN
after IN
ranging VBG
between IN
9 CD
% NN
and CC
11 CD
% NN
for IN
much NN
of IN
the DT
previous JJ
year NN
. .

`` ``
Ron NNP
Brierley NNP
clearly RB
views VBZ
our PRP$
company NN
as IN
a DT
good JJ
investment NN
, ,
'' ''
a DT
Vickers NNP
spokesman NN
said VBD
. .

The DT
spokesman NN
refused VBD
to TO
comment VB
on IN
speculation NN
that IN
Industrial NNP
Equity NNP
might MD
use VB
its PRP$
interest NN
as IN
a DT
platform NN
to TO
launch VB
a DT
hostile JJ
bid NN
for IN
the DT
company NN
. .

Vickers NNP
makes VBZ
tanks NNS
for IN
the DT
U.K. NNP
army NN
, ,
Rolls NNP
Royce NNP
cars NNS
, ,
and CC
has VBZ
marine NN
and CC
medical JJ
businesses NNS
. .

When WRB
Rune NNP
Andersson NNP
set VBD
out IN
to TO
revive VB
flagging JJ
Swedish JJ
conglomerate NN
Trelleborg NNP
AB NNP
in IN
the DT
early JJ
1980s CD
, ,
he PRP
spurned VBD
the DT
advice NN
of IN
trendy JJ
management NN
consultants NNS
. .

`` ``
All DT
these DT
consultants NNS
kept VBD
coming VBG
around IN
telling VBG
us PRP
we PRP
should MD
concentrate VB
on IN
high JJ
technology NN
, ,
electronics NNS
or CC
biotechnology NN
, ,
and CC
get VB
out IN
of IN
mature JJ
basic JJ
industries NNS
, ,
'' ''
Mr. NNP
Andersson NNP
recalls VBZ
. .

Yet RB
under IN
its PRP$
45-year-old JJ
president NN
, ,
Trelleborg NNP
moved VBD
aggressively RB
into IN
those DT
unfashionable JJ
base NN
industries NNS
-- :
first JJ
strengthening VBG
its PRP$
existing VBG
rubber NN
and CC
plastics NNS
division NN
, ,
later RB
adding VBG
mining NN
as RB
well RB
as IN
building NN
and CC
construction NN
materials NNS
. .

It PRP
was VBD
a DT
gutsy JJ
move NN
for IN
a DT
little-known JJ
executive NN
, ,
fired VBN
after IN
only RB
two CD
months NNS
as IN
president NN
of IN
his PRP$
previous JJ
company NN
. .

But CC
going VBG
against IN
the DT
grain NN
has VBZ
never RB
bothered VBN
Mr. NNP
Andersson NNP
. .

Stroking VBG
his PRP$
trademark NN
white JJ
goatee NN
during IN
a DT
recent JJ
interview NN
, ,
the DT
diminutive JJ
Swede NN
quips VBZ
: :
`` ``
It PRP
turned VBD
out IN
to TO
be VB
lucky JJ
for IN
us PRP
. .

If IN
the DT
whole JJ
market NN
thinks VBZ
what WP
you PRP
're VBP
doing VBG
is VBZ
crazy JJ
you PRP
do VBP
n't RB
have VB
much JJ
competition NN
. .
'' ''

Mr. NNP
Andersson NNP
is VBZ
anxious JJ
to TO
strengthen VB
Trelleborg NNP
's POS
balance NN
sheet NN
. .

Characteristically RB
, ,
he PRP
did VBD
n't RB
waste VB
much JJ
time NN
getting VBG
started VBN
. .

On IN
Tuesday NNP
, ,
Trelleborg NNP
's POS
directors NNS
announced VBD
plans NNS
to TO
spin VB
off IN
two CD
big JJ
divisions NNS
-- :
minerals NNS
processing NN
, ,
and CC
building NN
and CC
distribution NN
-- :
as IN
separately RB
quoted VBN
companies NNS
on IN
Stockholm NNP
's POS
Stock NNP
Exchange NNP
. .

At IN
current JJ
market NN
prices NNS
, ,
the DT
twin JJ
public JJ
offerings NNS
to TO
be VB
completed VBN
next JJ
year NN
would MD
add VB
an DT
estimated VBN
2.5 CD
billion CD
Swedish JJ
kronor NNS
-LRB- (
$ $
386 CD
million CD
-RRB- )
to TO
Trelleborg NNP
's POS
coffers NNS
, ,
analysts NNS
say VBP
. .

The DT
board NN
had VBD
also RB
been VBN
expected VBN
to TO
approve VB
a DT
SKr1.5 NNS
billion CD
international JJ
offering NN
of IN
new JJ
Trelleborg NNP
shares NNS
. .

But CC
that DT
share NN
issue NN
-- :
intended VBN
to TO
make VB
Trelleborg NNP
better RBR
known VBN
among IN
international JJ
investors NNS
-- :
was VBD
postponed VBN
until IN
market NN
conditions NNS
stabilize VBP
, ,
people NNS
familiar JJ
with IN
the DT
situation NN
say VBP
. .

Trelleborg NNP
's POS
internationally RB
traded VBN
`` ``
Bfree NNP
'' ''
series NN
stock NN
plunged VBD
SKr29 NNS
-LRB- (
$ $
4.48 CD
-RRB- )
to TO
SKr205 NNS
-LRB- (
$ $
31.65 CD
-RRB- )
in IN
volatile JJ
trading NN
Monday NNP
in IN
Stockholm NNP
. .

Tuesday NNP
, ,
the DT
shares NNS
regained VBD
SKr20 NNS
, ,
closing VBG
at IN
SKr225 NNS
. .

Mr. NNP
Andersson NNP
says VBZ
he PRP
is VBZ
confident JJ
that IN
taking VBG
parts NNS
of IN
the DT
company NN
public NN
will MD
help VB
erase VB
the DT
`` ``
conglomerate NN
stigma NN
'' ''
that WDT
has VBZ
held VBN
down RB
Trelleborg NNP
's POS
share NN
price NN
. .

Trelleborg NNP
plans VBZ
to TO
remain VB
the DT
dominant JJ
shareholder NN
with IN
stakes NNS
of IN
slightly RB
less JJR
than IN
50 CD
% NN
of IN
both DT
units NNS
. .

The DT
spinoff NN
should MD
solve VB
a DT
problem NN
for IN
the DT
parent NN
. .

A DT
family NN
foundation NN
set VBN
up IN
by IN
late JJ
founder NN
Henry NNP
Dunker NNP
controls NNS
59 CD
% NN
of IN
Trelleborg NNP
's POS
voting NN
shares NNS
outstanding JJ
. .

But CC
the DT
foundation NN
bylaws NNS
require VBP
the DT
entire JJ
Trelleborg NNP
stake NN
to TO
be VB
sold VBN
in IN
the DT
open JJ
market NN
if IN
control NN
drops VBZ
below IN
50 CD
% NN
. .

That DT
possibility NN
had VBD
crept VBN
closer RBR
as IN
repeated VBN
new JJ
share NN
offerings NNS
to TO
finance VB
Trelleborg NNP
's POS
rapid JJ
growth NN
steadily RB
diluted VBD
the DT
foundation NN
's POS
holding VBG
. .

That DT
growth NN
is VBZ
the DT
result NN
of IN
Mr. NNP
Andersson NNP
's POS
shopping NN
spree NN
, ,
during IN
which WDT
he PRP
has VBZ
bought VBN
and CC
sold VBN
more JJR
than IN
100 CD
companies NNS
during IN
the DT
past JJ
five CD
years NNS
. .

Most JJS
of IN
the DT
new JJ
additions NNS
were VBD
barely RB
profitable JJ
, ,
if IN
not RB
outright JJ
loss NN
makers NNS
. .

Applying VBG
prowess NN
gained VBD
during IN
earlier JJR
stints NNS
at IN
appliance NN
maker NN
AB NNP
Electrolux NNP
, ,
Mr. NNP
Andersson NNP
and CC
a DT
handful NN
of IN
loyal JJ
lieutenants NNS
aggressively RB
stripped VBN
away RB
dead JJ
wood NN
-- :
and CC
got VBD
quick JJ
results NNS
. .

The DT
treatment NN
turned VBD
Trelleborg NNP
into IN
one CD
of IN
Scandinavia NNP
's POS
biggest JJS
and CC
fastest-growing JJ
industrial JJ
concerns NNS
. .

Between IN
1985 CD
and CC
1988 CD
, ,
sales NNS
multipled VBD
more JJR
than IN
10 CD
times NNS
and CC
pretax JJ
profit NN
surged VBD
almost RB
twelvefold JJ
. .

Many JJ
analysts NNS
expect VBP
Mr. NNP
Andersson NNP
, ,
who WP
owns VBZ
1.7 CD
% NN
of IN
the DT
company NN
, ,
to TO
be VB
named VBN
Trelleborg NNP
's POS
new JJ
chairman NN
when WRB
Ernst NNP
Herslow NNP
steps NNS
down RB
next JJ
year NN
. .

But CC
the DT
promotion NN
is VBZ
n't RB
likely JJ
to TO
alter VB
a DT
management NN
style NN
Mr. NNP
Andersson NNP
describes VBZ
as IN
`` ``
being VBG
the DT
driving VBG
force NN
leading VBG
the DT
troops NNS
, ,
not RB
managing VBG
by IN
sitting VBG
back RB
with IN
a DT
cigar NN
waiting VBG
for IN
people NNS
to TO
bring VB
me PRP
ideas NNS
. .
'' ''
Last JJ
month NN
, ,
in IN
his PRP$
boldest JJS
move NN
yet RB
, ,
Mr. NNP
Andersson NNP
and CC
Trelleborg NNP
joined VBD
forces NNS
with IN
Canada NNP
's POS
Noranda NNP
Inc. NNP
in IN
a DT
joint JJ
$ $
2 CD
billion CD
hostile JJ
takeover NN
of IN
another DT
big JJ
Canadian JJ
mining NN
concern NN
, ,
Falconbridge NNP
Ltd NNP
. .

Industry NN
analysts NNS
suggest VBP
that IN
the DT
conquest NN
of IN
Falconbridge NNP
could MD
vault VB
Trelleborg NNP
from IN
a DT
regional JJ
Scandinavian NNP
success NN
story NN
to TO
a DT
world-class JJ
mining NN
concern NN
. .

`` ``
Trelleborg NNP
is VBZ
n't RB
in IN
the DT
same JJ
league NN
yet RB
as IN
mining NN
giants NNS
such JJ
as IN
RTZ NNP
Corp. NNP
or CC
Anglo-American NNP
Corp. NNP
, ,
'' ''
says VBZ
Mike NNP
Kurtanjek NNP
, ,
a DT
mining NN
analyst NN
at IN
James NNP
Capel NNP
& CC
Co. NNP
, ,
London NNP
. .

`` ``
But CC
we PRP
certainly RB
like IN
what WP
we PRP
've VBP
seen VBN
so RB
far RB
. .
'' ''

But CC
Trelleborg NNP
still RB
must MD
clear VB
some DT
tough JJ
hurdles NNS
. .

Mr. NNP
Andersson NNP
acknowledges VBZ
that IN
the DT
company NN
's POS
mining NN
division NN
`` ``
will MD
be VB
busy JJ
for IN
a DT
while NN
digesting VBG
its PRP$
recent JJ
expansion NN
. .
'' ''

Booming JJ
metals NNS
prices NNS
have VBP
fueled VBN
Trelleborg NNP
's POS
recent JJ
profit NN
surge NN
, ,
raising VBG
mining NN
's POS
share NN
of IN
pretax JJ
profit NN
to TO
68 CD
% NN
this DT
year NN
from IN
a DT
big JJ
loss NN
two CD
years NNS
earlier RBR
. .

But CC
analysts NNS
caution VBP
an DT
expected VBN
fall NN
in IN
metal NN
prices NNS
next JJ
year NN
could MD
slow VB
profit NN
growth NN
. .

Mining NNP
is VBZ
likely JJ
to TO
remain VB
Trelleborg NNP
's POS
main JJ
business NN
. .

Analysts NNS
say VBP
its PRP$
chances NNS
of IN
success NN
will MD
likely RB
hinge NN
on IN
how WRB
well RB
Trelleborg NNP
manages VBZ
to TO
cooperate VB
with IN
Noranda NNP
in IN
the DT
Falconbridge NNP
venture NN
. .

Noranda NNP
and CC
Trelleborg NNP
each DT
came VBD
close RB
to TO
winning VBG
Falconbridge NNP
alone RB
before IN
the DT
successful JJ
joint JJ
bid NN
. .

Some DT
analysts NNS
say VBP
Noranda NNP
would MD
prefer VB
to TO
break VB
up IN
Falconbridge NNP
, ,
and CC
that IN
the DT
Swedes NNPS
-- :
relatively RB
inexperienced JJ
in IN
international JJ
mining NN
operations NNS
-- :
could MD
have VB
problems NNS
holding VBG
their PRP$
own JJ
with IN
a DT
much RB
bigger JJR
partner NN
like IN
Noranda NNP
operating VBG
on IN
its PRP$
home NN
turf NN
. .

Mr. NNP
Andersson NNP
insists VBZ
that IN
Trelleborg NNP
and CC
Noranda NNP
have VBP
n't RB
discussed VBN
a DT
Falconbridge NNP
break-up NN
. .

Falconbridge NNP
, ,
he PRP
says VBZ
, ,
will MD
continue VB
operating VBG
in IN
its PRP$
current JJ
form NN
. .

`` ``
We PRP
'd MD
be VB
reluctant JJ
to TO
accept VB
50-50 JJ
ownership NN
in IN
a DT
manufacturing NN
company NN
. .

But CC
such JJ
partnerships NNS
are VBP
common JJ
in IN
mining NN
, ,
where WRB
there EX
are VBP
n't RB
problems NNS
or CC
conflict NN
of IN
interest NN
or CC
risk NN
of IN
cheating NN
by IN
a DT
partner NN
, ,
'' ''
Trelleborg NNP
's POS
president NN
says NNS
. .

Perhaps RB
more RBR
important JJ
, ,
both DT
companies NNS
share VBP
Mr. NNP
Andersson NNP
's POS
belief NN
in IN
the DT
coming VBG
renaissance NN
of IN
base NN
industries NNS
. .

`` ``
If IN
the DT
1980s CD
were VBD
a DT
decade NN
of IN
consumption NN
, ,
the DT
'90s NNS
will MD
be VB
the DT
investment NN
decade NN
, ,
'' ''
Mr. NNP
Andersson NNP
says VBZ
. .

`` ``
The DT
whole NN
of IN
Europe NNP
and CC
the DT
industrialized VBN
world NN
is VBZ
suffering VBG
from IN
a DT
breakdown NN
in IN
infrastructure NN
investment NN
, ,
'' ''
he PRP
says VBZ
. .

`` ``
That DT
's VBZ
beginning VBG
to TO
change VB
. .

And CC
investment NN
is VBZ
the DT
key JJ
word NN
for IN
base NN
metals NNS
, ,
and CC
most RBS
other JJ
businesses NNS
Trelleborg NNP
is VBZ
in RB
. .

Apple NNP
Computer NNP
Inc. NNP
posted VBD
improved VBN
fiscal JJ
fourth-quarter JJ
profit NN
due JJ
largely RB
to TO
a DT
$ $
48 CD
million CD
gain NN
on IN
the DT
sale NN
of IN
its PRP$
stock NN
in IN
Adobe NNP
Systems NNP
Inc NNP
. .

Excluding VBG
the DT
gain NN
, ,
the DT
company NN
registered VBD
a DT
modest JJ
4.6 CD
% NN
increase NN
for IN
the DT
quarter NN
ended VBN
Sept. NNP
29 CD
to TO
$ $
113 CD
million CD
, ,
or CC
87 CD
cents NNS
a DT
share NN
, ,
from IN
the DT
year-earlier JJ
$ $
107.9 CD
million CD
, ,
or CC
84 CD
cents NNS
a DT
share NN
. .
Proceeds NNS
of IN
the DT
Adobe NNP
sale NN
brought VBD
net JJ
income NN
in IN
the DT
quarter NN
to TO
$ $
161.1 CD
million CD
, ,
or CC
$ $
1.24 CD
a DT
share NN
. .

Apple NN
shares NNS
fell VBD
75 CD
cents NNS
in IN
over-the-counter JJ
trading NN
to TO
close VB
at IN
$ $
48 CD
a DT
share NN
. .

Fiscal JJ
fourth-quarter JJ
sales NNS
grew VBD
about IN
18 CD
% NN
to TO
$ $
1.38 CD
billion CD
from IN
$ $
1.17 CD
billion CD
a DT
year NN
earlier RBR
. .

Without IN
the DT
Adobe NNP
gain NN
, ,
Apple NNP
's POS
full-year JJ
operating NN
profit NN
edged VBD
up IN
1.5 CD
% NN
to TO
$ $
406 CD
million CD
, ,
or CC
$ $
3.16 CD
a DT
share NN
, ,
from IN
$ $
400.3 CD
million CD
, ,
or CC
$ $
3.08 CD
a DT
share NN
. .

Including VBG
the DT
Adobe NNP
gain NN
, ,
full-year JJ
net NN
was VBD
$ $
454 CD
million CD
, ,
or CC
$ $
3.53 CD
a DT
share NN
. .

Sales NNS
for IN
the DT
year NN
rose VBD
nearly RB
30 CD
% NN
to TO
$ $
5.28 CD
billion CD
from IN
$ $
4.07 CD
billion CD
a DT
year NN
earlier RBR
. .

John NNP
Sculley NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
, ,
credited VBD
the DT
Macintosh NNP
SE\/30 NNP
and CC
IIcx NNP
computers NNS
, ,
introduced VBN
in IN
the DT
winter NN
, ,
for IN
the DT
brightened VBN
sales NNS
performance NN
. .

Mr. NNP
Sculley NNP
also RB
indicated VBD
that IN
sagging VBG
margins NNS
, ,
which WDT
dogged VBD
the DT
company NN
through IN
most RBS
of IN
1989 CD
, ,
began VBD
to TO
turn VB
up IN
in IN
the DT
fourth JJ
quarter NN
as IN
chip NN
prices NNS
eased VBD
. .

`` ``
Adverse JJ
pressure NN
on IN
gross JJ
margins NNS
... :
has VBZ
subsided VBN
, ,
'' ''
Mr. NNP
Sculley NNP
said VBD
. .

Margins NNS
in IN
the DT
fiscal JJ
fourth JJ
quarter NN
perked VBD
up IN
, ,
rising VBG
to TO
51 CD
% NN
from IN
49.2 CD
% NN
a DT
year NN
earlier RBR
. .

For IN
all DT
of IN
fiscal JJ
1989 CD
, ,
however RB
, ,
the DT
average JJ
gross JJ
margin NN
was VBD
49 CD
% NN
, ,
below IN
the DT
average JJ
1988 CD
gross JJ
margin NN
of IN
51 CD
% NN
. .

Lower JJR
component NN
costs NNS
-- :
especially RB
for IN
DRAMs NNS
, ,
or CC
dynamic JJ
random JJ
access NN
memory NN
chips NNS
-- :
were VBD
cited VBN
for IN
the DT
easing NN
of IN
margin NN
pressure NN
on IN
the DT
company NN
, ,
a DT
spokeswoman NN
said VBD
. .

Looking VBG
ahead RB
to TO
1990 CD
, ,
Mr. NNP
Sculley NNP
predicted VBD
`` ``
another DT
year NN
of IN
significant JJ
revenue NN
growth NN
, ,
'' ''
along IN
with IN
improved VBN
profitability NN
, ,
as IN
the DT
recovery NN
in IN
gross JJ
margins NNS
continues VBZ
into IN
1990 CD
. .

Gary NNP
J. NNP
Schantz NNP
, ,
44 CD
years NNS
old JJ
, ,
was VBD
named VBN
president NN
and CC
chief JJ
operating VBG
officer NN
. .

Polymerix NNP
makes VBZ
lumber-like JJ
materials NNS
that IN
it PRP
describes VBZ
as IN
`` ``
plastic NN
wood NN
. .
'' ''

The DT
operating VBG
chief NN
's POS
post NN
is VBZ
new JJ
. .

Martin NNP
Schrager NNP
, ,
51 CD
, ,
who WP
had VBD
been VBN
president NN
, ,
was VBD
named VBN
vice NN
chairman NN
. .

He PRP
remains VBZ
chief JJ
executive JJ
officer NN
. .

Mr. NNP
Schantz NNP
was VBD
vice NN
president NN
and CC
chief JJ
operating VBG
officer NN
of IN
the DT
Acrylic NNP
division NN
of IN
Polycast NNP
Technology NNP
Corp NNP
. .

Separately RB
, ,
the DT
board NN
expanded VBN
to TO
six CD
members NNS
with IN
the DT
election NN
of IN
David NNP
L. NNP
Holewinski NNP
, ,
a DT
consultant NN
. .

The DT
company NN
also RB
said VBD
it PRP
privately RB
placed VBD
stock NN
and CC
warrants NNS
in IN
exchange NN
for IN
$ $
750,000 CD
. .

Terry NNP
L. NNP
Haines NNP
, ,
formerly RB
general JJ
manager NN
of IN
Canadian JJ
operations NNS
, ,
was VBD
elected VBN
to TO
the DT
new JJ
position NN
of IN
vice NN
president NN
, ,
North NNP
American JJ
sales NNS
, ,
of IN
this DT
plastics NNS
concern VBP
. .

Also RB
, ,
Larry NNP
A. NNP
Kushkin NNP
, ,
executive JJ
vice NN
president NN
, ,
North NNP
American JJ
operations NNS
, ,
was VBD
named VBN
head NN
of IN
the DT
company NN
's POS
international JJ
automotive JJ
operations NNS
, ,
another DT
new JJ
position NN
. .

He PRP
remains VBZ
an DT
executive JJ
vice NN
president NN
, ,
the DT
company NN
said VBD
, ,
and CC
his PRP$
new JJ
position NN
reflects VBZ
`` ``
the DT
growing VBG
importance NN
of IN
the DT
world NN
automotive JJ
market NN
as IN
a DT
market NN
for IN
A. NNP
Schulman NNP
's POS
high JJ
performance NN
plastic NN
materials NNS
. .
'' ''

Gordon NNP
Trimmer NNP
will MD
succeed VB
Mr. NNP
Haines NNP
as IN
manager NN
of IN
Canadian JJ
operations NNS
, ,
and CC
Mr. NNP
Kushkin NNP
's POS
former JJ
position NN
is VBZ
n't RB
being VBG
filled VBN
at IN
this DT
time NN
, ,
the DT
company NN
said VBD
. .

General NNP
Electric NNP
Co. NNP
said VBD
it PRP
signed VBD
a DT
contract NN
with IN
the DT
developers NNS
of IN
the DT
Ocean NNP
State NNP
Power NNP
project NN
for IN
the DT
second JJ
phase NN
of IN
an DT
independent JJ
$ $
400 CD
million CD
power NN
plant NN
, ,
which WDT
is VBZ
being VBG
built VBN
in IN
Burrillville NNP
, ,
R.I NNP
. .

GE NNP
, ,
along IN
with IN
a DT
division NN
of IN
Ebasco NNP
, ,
a DT
subsidiary NN
of IN
Enserch NNP
Corp. NNP
, ,
have VBP
been VBN
building VBG
the DT
first JJ
250-megawatt JJ
phase NN
of IN
the DT
project NN
, ,
which WDT
they PRP
expect VBP
to TO
complete VB
in IN
late JJ
1990 CD
. .

The DT
second JJ
portion NN
will MD
be VB
completed VBN
the DT
following VBG
year NN
. .

GE NNP
's POS
Power NNP
Generation NNP
subsidiary NN
will MD
operate VB
and CC
maintain VB
the DT
plant NN
upon IN
its PRP$
completion NN
. .

The DT
Environmental NNP
Protection NNP
Agency NNP
is VBZ
getting VBG
a DT
lot NN
out IN
of IN
the DT
Superfund NNP
program NN
. .

Of IN
the DT
$ $
4.4 CD
billion CD
spent VBD
so RB
far RB
on IN
the DT
program NN
, ,
60 CD
% NN
is VBZ
going VBG
for IN
administrative JJ
costs NNS
, ,
management NN
and CC
research NN
, ,
the DT
Office NNP
of IN
Technology NNP
Assessment NNP
just RB
reported VBD
. .

Only RB
36 CD
of IN
1,200 CD
priority NN
cleanup NN
sites NNS
have VBP
been VBN
`` ``
decontaminated VBN
. .
'' ''

Over IN
the DT
next JJ
50 CD
years NNS
, ,
$ $
500 CD
billion CD
is VBZ
earmarked VBN
for IN
the DT
program NN
. .

At IN
current JJ
allocations NNS
, ,
that WDT
means VBZ
EPA NNP
will MD
be VB
spending NN
$ $
300 CD
billion CD
on IN
itself PRP
. .

It PRP
may MD
not RB
be VB
toxic JJ
, ,
but CC
we PRP
know VBP
where WRB
one CD
waste NN
dump NN
is NNS
. .

Chambers NNP
Development NNP
Co. NNP
said VBD
its PRP$
Security NNP
Bureau NNP
Inc. NNP
unit NN
purchased VBN
two CD
security NN
concerns NNS
in IN
Florida NNP
that WDT
will MD
add VB
$ $
2.1 CD
million CD
of IN
annual JJ
revenue NN
. .

Purchase NNP
of IN
the DT
businesses NNS
serving VBG
Miami NNP
, ,
Fort NNP
Lauderdale NNP
and CC
West NNP
Palm NNP
Beach NNP
, ,
Fla. NNP
, ,
is VBZ
part NN
of IN
a DT
plan NN
by IN
Chambers NNP
to TO
expand VB
in IN
the DT
growing VBG
security NN
industry NN
. .

Terms NNS
were VBD
n't RB
disclosed VBN
. .

Basf NNP
AG NNP
said VBD
it PRP
moved VBD
its PRP$
headquarters NN
for IN
Latin NNP
America NNP
to TO
Mexico NNP
and CC
the DT
headquarters NN
for IN
the DT
Asia\/Australia NNP
regional JJ
division NN
to TO
Singapore NNP
, ,
effective JJ
Oct NNP
. .

The DT
central JJ
offices NNS
for IN
both DT
regions NNS
were VBD
previously RB
located VBN
in IN
Ludwigshafen NNP
, ,
Basf NNP
headquarters NN
. .

The DT
West JJ
German JJ
chemical NN
concern NN
called VBD
the DT
moves NNS
a DT
further JJ
step NN
in IN
the DT
internationalization NN
of IN
its PRP$
business NN
activities NNS
. .

Both DT
regions NNS
are VBP
the DT
fastest-growing JJ
areas NNS
for IN
Basf NNP
, ,
the DT
company NN
said VBD
. .

David NNP
H. NNP
Eisenberg NNP
, ,
53 CD
years NNS
old JJ
, ,
was VBD
named VBN
president NN
and CC
chief JJ
operating VBG
officer NN
of IN
Imasco NNP
's POS
500-store JJ
Peoples NNP
Drug NNP
Stores NNP
Inc. NNP
unit NN
, ,
based VBN
in IN
Alexandria NNP
, ,
Va NNP
. .

Mr. NNP
Eisenberg NNP
was VBD
senior JJ
executive JJ
vice NN
president NN
and CC
chief JJ
operating VBG
officer NN
. .

Imasco NNP
is VBZ
a DT
tobacco NN
, ,
retailing NN
, ,
restaurant NN
and CC
financial JJ
services NNS
concern VBP
. .

Lotus NNP
Development NNP
Corp. NNP
is VBZ
in IN
talks NNS
to TO
sell VB
its PRP$
Signal NNP
stock-quote JJ
service NN
to TO
Infotechnology NNP
Inc. NNP
, ,
the DT
New NNP
York NNP
parent NN
of IN
Financial NNP
News NNP
Network NNP
, ,
people NNS
familiar JJ
with IN
the DT
negotiations NNS
said VBD
. .

They PRP
said VBD
the DT
price NN
would MD
be VB
around IN
$ $
10 CD
million CD
. .

Signal NNP
, ,
which WDT
has VBZ
an DT
estimated VBN
10,000 CD
subscribers NNS
and CC
is VBZ
profitable JJ
, ,
provides VBZ
stock NN
quotes NNS
over IN
an DT
FM NNP
radio NN
band NN
that WDT
can MD
be VB
received VBN
by IN
specially RB
equipped VBN
personal JJ
computers NNS
. .

The DT
computers NNS
will MD
display VB
stock NN
prices NNS
selected VBN
by IN
users NNS
. .

Lotus NNP
, ,
Cambridge NNP
, ,
Mass. NNP
, ,
has VBZ
been VBN
rumored VBN
to TO
have VB
the DT
sale NN
of IN
the DT
four-year-old JJ
unit NN
under IN
consideration NN
for IN
a DT
year NN
. .

The DT
business NN
is VBZ
n't RB
related VBN
to TO
Lotus NNP
's POS
main JJ
businesses NNS
of IN
making VBG
computer NN
software NN
and CC
publishing NN
information NN
on IN
compact JJ
disks NNS
. .

`` ``
Please VB
submit VB
your PRP$
offers NNS
, ,
'' ''
says VBZ
Felipe NNP
Bince NNP
Jr NNP
. .

He PRP
surveys VBZ
the DT
prospective JJ
investors NNS
gathered VBD
in IN
the DT
board NN
room NN
of IN
the DT
Philippine JJ
government NN
's POS
Asset NNP
Privatization NNP
Trust NNP
for IN
the DT
sale NN
of IN
a DT
36 CD
% NN
interest NN
in IN
the DT
country NN
's POS
largest JJS
paper NN
mill NN
. .

The DT
agency NN
expects VBZ
the DT
bids NNS
to TO
be VB
equivalent NN
of IN
more JJR
than IN
$ $
80 CD
million CD
. .

Not RB
a DT
peso NN
is VBZ
offered VBN
. .

Mr. NNP
Bince NNP
, ,
the DT
trust NN
's POS
associate JJ
executive JJ
trustee NN
, ,
declares VBZ
the DT
bidding VBG
a DT
failure NN
. .

`` ``
It PRP
's VBZ
getting VBG
harder JJR
to TO
sell VB
, ,
'' ''
he PRP
mutters VBZ
as IN
he PRP
leaves VBZ
the DT
room NN
. .

Indeed RB
. .
Recently RB
, ,
the DT
trust NN
failed VBD
to TO
auction VB
off IN
the DT
paper NN
mill NN
, ,
a DT
bank NN
, ,
an DT
office NN
building NN
and CC
a DT
small JJ
cotton-ginning JJ
plant NN
. .

Of IN
the DT
four CD
, ,
only RB
the DT
bank NN
and CC
the DT
plant NN
drew VBD
bids NNS
-- :
one CD
apiece RB
. .

In IN
October NNP
1987 CD
, ,
President NNP
Corazon NNP
Aquino NNP
vowed VBD
that IN
her PRP$
government NN
would MD
`` ``
get VB
out IN
of IN
business NN
'' ''
by IN
selling VBG
all DT
or CC
part NN
of IN
the DT
state NN
's POS
holdings NNS
in IN
the DT
many JJ
companies NNS
taken VBN
over IN
by IN
the DT
government NN
during IN
the DT
20-year JJ
rule NN
of IN
Ferdinand NNP
Marcos NNP
. .

Two CD
years NNS
later RB
, ,
Mrs. NNP
Aquino NNP
's POS
promise NN
remains VBZ
largely RB
unfulfilled JJ
. .

October NNP
is VBZ
a DT
critical JJ
month NN
for IN
the DT
privatization NN
program NN
. .

Manila NNP
is VBZ
offering VBG
several JJ
major JJ
assets NNS
for IN
the DT
first JJ
time NN
and CC
is VBZ
trying VBG
to TO
conclude VB
sales NNS
already RB
arranged VBN
. .

In IN
addition NN
, ,
the DT
government NN
is VBZ
scheduled VBN
to TO
unveil VB
plans NNS
for IN
privatizing VBG
Philippine JJ
Airlines NNPS
, ,
the DT
national JJ
carrier NN
, ,
an DT
effort NN
that DT
lawyer NN
and CC
business NN
columnist NN
Rodolfo NNP
Romero NNP
calls VBZ
`` ``
the DT
bellwether NN
of IN
privatization NN
. .
'' ''

All DT
told VBD
, ,
there EX
are VBP
assets NNS
on IN
the DT
line NN
valued VBN
at IN
up IN
to TO
$ $
1.03 CD
billion CD
. .

The DT
privatization NN
program NN
is VBZ
designed VBN
to TO
rid VB
the DT
government NN
of IN
hundreds NNS
of IN
assets NNS
and CC
to TO
raise VB
critically RB
needed VBN
funds NNS
. .

Much RB
of IN
the DT
money NN
from IN
the DT
sales NNS
is VBZ
earmarked VBN
for IN
a DT
multibillion-dollar JJ
agrarian-reform JJ
program NN
. .

But CC
efforts NNS
have VBP
been VBN
thwarted VBN
by IN
official JJ
indifference NN
, ,
bureaucratic JJ
resistance NN
, ,
a DT
legal JJ
system NN
that WDT
operates VBZ
at IN
a DT
snail NN
's POS
pace NN
, ,
political JJ
opposition NN
and CC
government NN
misjudgments NNS
. .

Most JJS
recently RB
, ,
a DT
lack NN
of IN
buyers NNS
has VBZ
been VBN
added VBN
to TO
the DT
list NN
. .

Rather RB
than IN
gathering NN
momentum NN
, ,
the DT
program NN
is VBZ
in IN
danger NN
of IN
slowing VBG
even RB
more JJR
as IN
the DT
government NN
tackles VBZ
several JJ
big JJ
assets NNS
. .

The DT
axiom NN
appears VBZ
to TO
be VB
that IN
the DT
more RBR
valuable JJ
the DT
asset NN
, ,
the DT
harder JJR
the DT
privatization NN
process NN
. .

`` ``
You PRP
just RB
do VBP
n't RB
see VB
a DT
whole JJ
lot NN
happening VBG
, ,
'' ''
says VBZ
an DT
international JJ
economist NN
. .

To TO
be VB
sure JJ
, ,
the DT
program NN
has VBZ
n't RB
completely RB
stalled VBN
. .

The DT
Asset NNP
Privatization NNP
Trust NNP
, ,
the DT
agency NN
chiefly RB
responsible JJ
for IN
selling VBG
government-held JJ
properties NNS
, ,
has VBZ
recorded VBN
sales NNS
of IN
more JJR
than IN
$ $
500 CD
million CD
since IN
it PRP
began VBD
functioning VBG
in IN
December NNP
1986 CD
. .

But CC
its PRP$
success NN
has VBZ
been VBN
largely RB
in IN
the DT
sale NN
of IN
small JJ
, ,
nonperforming JJ
companies NNS
, ,
which WDT
are VBP
valued VBN
for IN
their PRP$
assets NNS
. .

Dealing VBG
with IN
the DT
sales NNS
this DT
month NN
could MD
be VB
particularly RB
challenging VBG
because IN
almost RB
every DT
problem NN
that WDT
has VBZ
hobbled VBN
the DT
program NN
in IN
the DT
past NN
is VBZ
popping VBG
up IN
again RB
. .

Ramon NNP
Garcia NNP
, ,
the DT
Asset NNP
Trust NNP
's POS
executive JJ
trustee NN
, ,
admits VBZ
to TO
what WP
he PRP
calls VBZ
`` ``
temporary JJ
setbacks NNS
. .
'' ''

In IN
light NN
of IN
the DT
poor JJ
results NNS
recently RB
, ,
he PRP
says VBZ
, ,
the DT
agency NN
is VBZ
adopting VBG
an DT
`` ``
attitude NN
of IN
flexibility NN
. .
'' ''

October NNP
's POS
troubles NNS
began VBD
when WRB
the DT
trust NN
failed VBD
to TO
sell VB
a DT
state-owned JJ
commercial JJ
bank NN
, ,
Associated NNP
Bank NNP
, ,
for IN
the DT
minimum JJ
price NN
of IN
671 CD
million CD
pesos NNS
-LRB- (
$ $
31 CD
million CD
-RRB- )
. .

At IN
the DT
end NN
of IN
the DT
month NN
, ,
the DT
agency NN
again RB
will MD
offer VB
the DT
bank NN
. .

But CC
instead RB
of IN
a DT
minimum JJ
price NN
, ,
only RB
a DT
target NN
price NN
will MD
be VB
established VBN
. .

Bankers NNS
say VBP
, ,
however RB
, ,
that IN
the DT
government NN
may MD
have VB
difficulty NN
selling VBG
the DT
institution NN
even RB
without IN
a DT
floor NN
price NN
. .

The DT
bank NN
has VBZ
a DT
negative JJ
net JJ
worth NN
, ,
they PRP
say VBP
. .

In IN
addition NN
, ,
special JJ
bidding NN
rules NNS
give VBP
the DT
bank NN
's POS
former JJ
owner NN
, ,
Leonardo NNP
Ty NNP
, ,
the DT
right NN
to TO
match VB
the DT
highest JJS
bid NN
. .

Mr. NNP
Ty NNP
lost VBD
control NN
to TO
the DT
government NN
in IN
1980 CD
when WRB
a DT
government NN
bank NN
made VBD
emergency NN
loans NNS
to TO
the DT
cash-strapped JJ
institution NN
. .

In IN
1983 CD
, ,
the DT
loans NNS
were VBD
converted VBN
into IN
equity NN
, ,
giving VBG
Manila NNP
98 CD
% NN
of IN
the DT
bank NN
, ,
but CC
with IN
the DT
understanding NN
that IN
Mr. NNP
Ty NNP
had VBD
repurchase NN
rights NNS
. .

His PRP$
ability NN
to TO
match VB
any DT
bid NN
has VBZ
scared VBN
off IN
many JJ
potential JJ
buyers NNS
. .
Separately RB
, ,
the DT
government NN
will MD
try VB
again RB
within IN
a DT
month NN
to TO
sell VB
the DT
36 CD
% NN
stake NN
in IN
Paper NNP
Industries NNP
Corp. NNP
of IN
the DT
Philippines NNP
, ,
or CC
Picop NNP
, ,
as IN
the DT
paper NN
mill NN
is VBZ
known VBN
. .

The DT
price NN
will MD
depend VB
on IN
how WRB
much JJ
Picop NNP
shares NNS
fetch VBP
on IN
the DT
local JJ
stock NN
market NN
. .

But CC
according VBG
to TO
bankers NNS
and CC
stock NN
analysts NNS
who WP
have VBP
studied VBN
the DT
paper NN
mill NN
, ,
price NN
is VBZ
n't RB
the DT
only JJ
consideration NN
. .

As IN
it PRP
stands VBZ
now RB
, ,
the DT
government NN
would MD
continue VB
to TO
hold VB
45 CD
% NN
of IN
Picop NNP
after IN
the DT
36 CD
% NN
stake NN
is VBZ
sold VBN
. .

-LRB- (
About IN
7.5 CD
% NN
of IN
Picop NNP
is VBZ
publicly RB
traded VBN
and CC
other JJ
shareholders NNS
own VB
the DT
rest NN
of IN
the DT
equity NN
. .
-RRB- )

Potential JJ
buyers NNS
, ,
mostly RB
foreign JJ
companies NNS
, ,
are VBP
reluctant JJ
to TO
take VB
a DT
non-controlling JJ
stake NN
in IN
a DT
company NN
that IN
, ,
by IN
the DT
government NN
's POS
own JJ
reckoning NN
, ,
needs VBZ
some DT
$ $
100 CD
million CD
in IN
new JJ
capital NN
for IN
rehabilitation NN
. .

The DT
prospect NN
of IN
buying VBG
into IN
a DT
cash-hungry JJ
company NN
without IN
getting VBG
management NN
control NN
persuaded VBN
at IN
least JJS
three CD
foreign JJ
buyers NNS
, ,
including VBG
a DT
member NN
of IN
the DT
Elders NNP
group NN
of IN
Australia NNP
, ,
to TO
pull VB
out IN
of IN
the DT
bidding NN
, ,
the DT
bankers NNS
and CC
analysts NNS
say VBP
. .

Mr. NNP
Garcia NNP
acknowledges VBZ
the DT
problem NN
and CC
says VBZ
the DT
Asset NNP
Trust NNP
will MD
study VB
why WRB
the DT
bidding NN
failed VBD
and CC
what WP
changes VBZ
the DT
agency NN
may MD
be VB
able JJ
to TO
offer VB
. .

Under IN
government NN
regulations NNS
, ,
however RB
, ,
foreign JJ
ownership NN
of IN
Picop NNP
's POS
equity NN
is VBZ
limited JJ
to TO
40 CD
% NN
. .

Even RB
though IN
the DT
government NN
would MD
retain VB
the DT
45 CD
% NN
stake NN
in IN
Picop NNP
, ,
critics NNS
have VBP
accused VBN
the DT
trust NN
of IN
selling VBG
out RP
to TO
foreigners NNS
. .

A DT
series NN
of IN
newspaper NN
articles NNS
accused VBD
the DT
trust NN
of IN
short-changing JJ
the DT
government NN
over IN
the DT
Picop NNP
sale NN
. .

Mr. NNP
Garcia NNP
says VBZ
he PRP
has VBZ
been VBN
notified VBN
of IN
congressional JJ
hearings NNS
on IN
the DT
Picop NNP
bidding NN
and CC
possible JJ
legislation NN
covering VBG
the DT
paper NN
mill NN
's POS
sale NN
, ,
both DT
prompted VBN
by IN
the DT
criticism NN
of IN
the DT
agency NN
. .

The DT
question NN
of IN
control NN
could MD
further VB
hinder VB
long-delayed JJ
plans NNS
for IN
the DT
government NN
to TO
divest VB
itself PRP
of IN
Philippine JJ
Airlines NNPS
, ,
in IN
which WDT
it PRP
has VBZ
a DT
99 CD
% NN
stake NN
. .
The DT
carrier NN
has VBZ
valuable JJ
trans-Pacific JJ
and CC
Asian JJ
routes NNS
but CC
it PRP
remains VBZ
debt-laden JJ
and CC
poorly RB
managed VBD
. .

This DT
maker NN
of IN
electronic JJ
measuring NN
devices NNS
named VBN
two CD
new JJ
directors NNS
, ,
increasing VBG
board NN
membership NN
to TO
nine CD
. .

The DT
new JJ
directors NNS
are VBP
Gordon NNP
M. NNP
Sprenger NNP
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
LifeSpan NNP
Inc. NNP
, ,
and CC
Peter NNP
S. NNP
Willmott NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
Willmott NNP
Services NNP
Inc NNP
. .

Gerard NNP
E. NNP
Wood NNP
, ,
51 CD
years NNS
old JJ
, ,
was VBD
elected VBN
president NN
, ,
chief JJ
executive JJ
officer NN
and CC
a DT
director NN
of IN
this DT
minerals NNS
and CC
materials NNS
company NN
. .

He PRP
succeeds VBZ
Harry NNP
A. NNP
Durney NNP
, ,
65 CD
, ,
who WP
is VBZ
retiring VBG
from IN
active JJ
duty NN
but CC
remains VBZ
a DT
director NN
and CC
consultant NN
. .

Mr. NNP
Wood NNP
has VBZ
been VBN
president NN
and CC
chief JJ
executive NN
of IN
Steep NNP
Rock NNP
Resources NNP
Inc NNP
. .

Eagle NNP
Financial NNP
Corp. NNP
and CC
Webster NNP
Financial NNP
Corp. NNP
, ,
two CD
Connecticut NNP
savings NNS
bank-holding JJ
companies NNS
, ,
agreed VBD
to TO
merge VB
in IN
a DT
tax-free JJ
stock NN
transaction NN
. .

The DT
new JJ
holding NN
company NN
, ,
Webster\/Eagle NNP
Bancorp NNP
Inc. NNP
, ,
will MD
have VB
about RB
$ $
1.2 CD
billion CD
of IN
assets NNS
and CC
19 CD
banking NN
offices NNS
in IN
Connecticut NNP
. .

Tangible JJ
capital NN
will MD
be VB
about RB
$ $
115 CD
million CD
. .

The DT
merger NN
is VBZ
subject NN
to TO
regulatory JJ
clearance NN
and CC
a DT
definitive JJ
agreement NN
. .

In IN
the DT
merger NN
, ,
each DT
share NN
of IN
Webster NNP
, ,
based VBN
in IN
Waterbury NNP
, ,
will MD
be VB
converted VBN
into IN
one CD
share NN
of IN
the DT
new JJ
company NN
. .

Each DT
share NN
of IN
Eagle NNP
, ,
based VBN
in IN
Bristol NNP
, ,
will MD
become VB
0.95 CD
share NN
of IN
Webster\/Eagle NNP
. .

In IN
American NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
Friday NNP
, ,
Eagle NNP
shares NNS
rose VBD
12.5 CD
cents NNS
to TO
$ $
11 CD
. .

In IN
national JJ
over-the-counter JJ
trading NN
, ,
Webster NNP
shares NNS
fell VBD
25 CD
cents NNS
to TO
$ $
12.375 CD
. .

Webster NNP
has VBZ
3.5 CD
million CD
shares NNS
outstanding JJ
and CC
Eagle NNP
2.6 CD
million CD
. .

Their PRP$
indicated VBD
market NN
values NNS
thus RB
are VBP
about RB
$ $
43.3 CD
million CD
and CC
$ $
28.6 CD
million CD
, ,
respectively RB
. .

Frank NNP
J. NNP
Pascale NNP
, ,
chairman NN
of IN
Eagle NNP
, ,
will MD
be VB
chairman NN
of IN
the DT
new JJ
firm NN
and CC
James NNP
C. NNP
Smith NNP
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
Webster NNP
, ,
will MD
take VB
those DT
posts NNS
at IN
Webster\/Eagle NNP
. .

Harold NNP
W. NNP
Smith NNP
Sr. NNP
, ,
chairman NN
of IN
Webster NNP
, ,
will MD
become VB
chairman NN
emeritus NN
and CC
a DT
director NN
of IN
the DT
new JJ
company NN
. .

Ralph NNP
T. NNP
Linsley NNP
, ,
vice NN
chairman NN
of IN
Eagle NNP
, ,
will MD
become VB
vice NN
chairman NN
of IN
Webster\/Eagle NNP
. .

The DT
board NN
will MD
be VB
made VBN
up IN
of IN
seven CD
directors NNS
of IN
each DT
holding VBG
company NN
. .

In IN
an DT
interview NN
, ,
James NNP
Smith NNP
said VBD
the DT
banks NNS
' POS
`` ``
markets NNS
are VBP
contiguous JJ
and CC
their PRP$
business NN
philosophies NNS
are VBP
similar JJ
and CC
conservative JJ
. .
'' ''

Nonperforming JJ
loans NNS
will MD
make VB
up IN
only RB
about IN
0.5 CD
% NN
of IN
the DT
combined VBN
banks NNS
' POS
total JJ
loans NNS
outstanding JJ
, ,
he PRP
said VBD
. .

At IN
June NNP
30 CD
, ,
Webster NNP
, ,
which WDT
owns VBZ
First NNP
Federal NNP
Savings NNP
& CC
Loan NNP
Association NNP
of IN
Waterbury NNP
, ,
had VBD
assets NNS
of IN
$ $
699 CD
million CD
. .

Eagle NNP
, ,
which WDT
controls VBZ
Bristol NNP
Federal NNP
Savings NNP
Bank NNP
and CC
First NNP
Federal NNP
Savings NNP
& CC
Loan NNP
Association NNP
of IN
Torrington NNP
, ,
had VBD
assets NNS
of IN
$ $
469.6 CD
million CD
on IN
that DT
date NN
. .

Guillermo NNP
Ortiz NNP
's POS
Sept. NNP
15 CD
Americas NNP
column NN
, ,
`` ``
Mexico NNP
's POS
Been VBN
Bitten VBN
by IN
the DT
Privatization NN
Bug NN
, ,
'' ''
is VBZ
a DT
refreshingly RB
clear JJ
statement NN
of IN
his PRP$
government NN
's POS
commitment NN
to TO
privatization NN
, ,
and CC
must MD
be VB
welcomed VBN
as IN
such JJ
by IN
all DT
Americans NNPS
who WP
wish VBP
his PRP$
country NN
well RB
. .

The DT
Mexico-United NNP
States NNP
Institute NNP
is VBZ
glad JJ
to TO
see VB
such JJ
a DT
high JJ
official NN
as IN
Mexico NNP
's POS
undersecretary NN
of IN
finance NN
view VB
his PRP$
country NN
's POS
reforms NNS
`` ``
in IN
the DT
context NN
of IN
a DT
larger JJR
, ,
world-wide JJ
process NN
'' ''
of IN
profound JJ
change NN
toward IN
free-market JJ
economics NNS
, ,
especially RB
in IN
the DT
statist JJ
countries NNS
. .

Having VBG
said VBN
that IN
, ,
we PRP
must MD
caution VB
against IN
an DT
apparent JJ
tendency NN
to TO
overstate VB
the DT
case NN
. .

It PRP
is VBZ
not RB
quite RB
true JJ
, ,
for IN
example NN
, ,
that IN
the DT
Mexican JJ
government NN
has VBZ
`` ``
privatized VBN
'' ''
Mexicana NNP
de FW
Aviacion NNP
, ,
as IN
Mr. NNP
Ortiz NNP
claims VBZ
. .

In IN
the DT
same JJ
sentence NN
he PRP
contradicts VBZ
himself PRP
when WRB
he PRP
reports VBZ
that IN
the DT
government NN
still RB
retains VBZ
40 CD
% NN
of IN
the DT
total JJ
equity NN
of IN
the DT
airline NN
. .

How WRB
can MD
a DT
company NN
be VB
considered VBN
`` ``
privatized VBN
'' ''
if IN
the DT
state NN
is VBZ
so RB
heavily RB
represented VBN
in IN
it PRP
? .

-LRB- (
True JJ
, ,
the DT
Mexican JJ
government NN
has VBZ
granted VBN
`` ``
control NN
'' ''
over IN
the DT
airline NN
to TO
a DT
new JJ
private JJ
consortium NN
, ,
but CC
its PRP$
propensity NN
to TO
take VB
back RB
what WP
it PRP
gives VBZ
is VBZ
too RB
well RB
known VBN
to TO
permit VB
one CD
to TO
be VB
sanguine JJ
. .
-RRB- )

Regrettably RB
, ,
too RB
, ,
Mr. NNP
Ortiz NNP
resorts VBZ
to TO
the DT
familiar JJ
`` ``
numbers NNS
game NN
'' ''
when WRB
he PRP
boasts VBZ
that IN
`` ``
fewer JJR
than IN
392 CD
-LCB- (
state NN
enterprises NNS
-RCB- )
currently RB
remain VB
in IN
the DT
public JJ
sector NN
, ,
'' ''
down RB
from IN
the DT
`` ``
1,155 CD
public JJ
entities NNS
that WDT
existed VBD
in IN
1982 CD
. .

'' ''
But CC
the DT
enterprises NNS
still RB
in IN
state NN
hands NNS
include VBP
the DT
biggest JJS
and CC
most RBS
economically RB
powerful JJ
ones NNS
in IN
Mexico NNP
; :
indeed RB
, ,
they PRP
virtually RB
constitute VBP
the DT
economic JJ
infrastructure NN
. .

I PRP
refer VBP
essentially RB
to TO
petroleum NN
, ,
electric JJ
power NN
, ,
banking NN
and CC
newsprint NN
. .

Those DT
enterprises NNS
, ,
however RB
, ,
are VBP
not RB
going VBG
to TO
be VB
privatized VBN
. .

They PRP
are VBP
officially RB
considered VBN
`` ``
strategic JJ
, ,
'' ''
and CC
their PRP$
privatization NN
is VBZ
prohibited VBN
by IN
the DT
Mexican JJ
Constitution NNP
. .

In IN
language NN
that WDT
sidesteps VBZ
the DT
issue NN
, ,
Mr. NNP
Ortiz NNP
writes VBZ
, ,
`` ``
The DT
divestiture NN
of IN
nonpriority NN
and CC
nonstrategic JJ
public JJ
enterprises NNS
is VBZ
an DT
essential JJ
element NN
of IN
President NNP
Carlos NNP
Salinas NNP
's POS
plan NN
to TO
modernize VB
Mexico NNP
's POS
economy NN
... :
. .
'' ''

Yet RB
clearly RB
, ,
modernization NN
must MD
embrace VB
its PRP$
key JJ
industries NNS
before IN
it PRP
can MD
be VB
said VB
to TO
have VB
caught VBN
the DT
`` ``
privatization NN
bug NN
. .
'' ''

The DT
bottom NN
line NN
, ,
however RB
, ,
is VBZ
not RB
economic JJ
but CC
political JJ
reform NN
. .

A DT
long JJ
succession NN
of IN
Mexican JJ
presidents NNS
arbitrarily RB
nationalized VBD
whatever WDT
industry NN
they PRP
took VBD
a DT
fancy JJ
to TO
, ,
without IN
having VBG
to TO
answer VB
to TO
the DT
public NN
. .

To TO
guarantee VB
that IN
Mexicana NNP
de FW
Aviacion NNP
and CC
other JJ
companies NNS
will MD
really RB
be VB
privatized VBN
, ,
Mexico NNP
needs VBZ
a DT
pluri-party JJ
political JJ
system NN
that WDT
will MD
ensure VB
democracy NN
and CC
hence RB
accountability NN
. .

Daniel NNP
James NNP
President NNP
Mexico-United NNP
States NNP
Institute NNP

The DT
board NN
of IN
this DT
Ponce NNP
, ,
Puerto NNP
Rico NNP
concern NN
voted VBD
to TO
suspend VB
payment NN
of IN
its PRP$
quarterly NN
of IN
11 CD
cents NNS
a DT
share NN
for IN
the DT
third JJ
quarter NN
. .

The DT
third-largest JJ
thrift NN
institution NN
in IN
Puerto NNP
Rico NNP
also RB
said VBD
it PRP
expects VBZ
a DT
return NN
to TO
profitability NN
in IN
the DT
third JJ
quarter NN
when WRB
it PRP
reports VBZ
operating VBG
results VBZ
this DT
week NN
. .

Ponce NNP
Federal NNP
said VBD
the DT
dividend NN
was VBD
suspended VBN
in IN
anticipation NN
of IN
more RBR
stringent JJ
capital NN
requirements NNS
under IN
the DT
Financial NNP
Institutions NNP
Reform NNP
, ,
Recovery NNP
, ,
and CC
Enforcement NNP
Act NNP
of IN
1989 CD
. .

A DT
labor-management JJ
group NN
is VBZ
preparing VBG
a DT
revised VBN
buy-out NN
bid NN
for IN
United NNP
Airlines NNPS
parent NN
UAL NNP
Corp. NNP
that WDT
would MD
transfer VB
majority NN
ownership NN
to TO
employees NNS
while IN
leaving VBG
some DT
stock NN
in IN
public JJ
hands NNS
, ,
according VBG
to TO
people NNS
familiar JJ
with IN
the DT
group NN
. .

The DT
group NN
has VBZ
been VBN
discussing VBG
a DT
proposal NN
valued VBN
in IN
a DT
range NN
of IN
$ $
225 CD
to TO
$ $
240 CD
a DT
share NN
, ,
or CC
$ $
5.09 CD
billion CD
to TO
$ $
5.42 CD
billion CD
. .

But CC
to TO
avoid VB
the DT
risk NN
of IN
rejection NN
, ,
the DT
group NN
does VBZ
n't RB
plan VB
to TO
submit VB
the DT
plan NN
formally RB
at IN
a DT
UAL NNP
board NN
meeting NN
today NN
. .

Instead RB
, ,
the DT
group NN
is VBZ
raising VBG
the DT
proposal NN
informally RB
to TO
try VB
to TO
test VB
the DT
board NN
's POS
reaction NN
. .

People NNS
familiar JJ
with IN
the DT
company NN
say VBP
the DT
board NN
is VBZ
n't RB
likely JJ
to TO
give VB
quick JJ
approval NN
to TO
any DT
offer NN
substantially RB
below IN
the DT
$ $
300-a-share JJ
, ,
$ $
6.79 CD
billion CD
buy-out NN
bid NN
that WDT
collapsed VBD
last JJ
week NN
after IN
banks NNS
would MD
n't RB
raise VB
needed VBN
loans NNS
and CC
after IN
a DT
key JJ
partner NN
, ,
British JJ
Airways NNP
PLC NNP
, ,
dropped VBD
out RB
. .
In IN
composite JJ
trading NN
Friday NNP
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
UAL NNP
closed VBD
at IN
$ $
168.50 CD
a DT
share NN
, ,
down RB
$ $
21.625 CD
. .

But CC
the DT
pilots NNS
union NN
, ,
which WDT
has VBZ
been VBN
pushing VBG
for IN
a DT
takeover NN
since IN
1987 CD
, ,
appears VBZ
to TO
be VB
pressing VBG
ahead RB
with IN
the DT
revised VBN
bid NN
to TO
avoid VB
further JJ
loss NN
of IN
momentum NN
even RB
though IN
it PRP
has VBZ
n't RB
found VBN
a DT
partner NN
to TO
replace VB
British NNP
Air NNP
. .

Although IN
the DT
bidding NN
group NN
has VBZ
n't RB
had VBN
time NN
to TO
develop VB
its PRP$
latest JJS
idea NN
fully RB
or CC
to TO
discuss VB
it PRP
with IN
banks NNS
, ,
it PRP
believes VBZ
bank NN
financing NN
could MD
be VB
obtained VBN
. .

After IN
the DT
collapse NN
of IN
the DT
last JJ
effort NN
, ,
the DT
group NN
does VBZ
n't RB
plan VB
to TO
make VB
any DT
formal JJ
proposal NN
without IN
binding NN
commitments NNS
from IN
banks NNS
covering VBG
the DT
entire JJ
amount NN
to TO
be VB
borrowed VBN
. .

Under IN
the DT
type NN
of IN
transaction NN
being VBG
discussed VBN
, ,
the DT
pilot-management JJ
group NN
would MD
borrow VB
several JJ
billion CD
dollars NNS
from IN
banks NNS
that WDT
could MD
then RB
be VB
used VBN
to TO
finance VB
a DT
cash NN
payment NN
to TO
current JJ
holders NNS
. .

Those DT
current JJ
holders NNS
would MD
also RB
receive VB
minority NN
interests NNS
in IN
the DT
new JJ
company NN
. .
For IN
example NN
, ,
the DT
group NN
could MD
offer VB
$ $
200 CD
a DT
share NN
in IN
cash NN
plus CC
stock NN
valued VBN
at IN
$ $
30 CD
a DT
share NN
. .

UAL NNP
currently RB
has VBZ
22.6 CD
million CD
shares NNS
, ,
fully RB
diluted VBN
. .

The DT
new JJ
structure NN
would MD
be VB
similar JJ
to TO
a DT
recapitalization NN
in IN
which WDT
holders NNS
get VBP
a DT
special JJ
dividend NN
yet RB
retain VB
a DT
controlling VBG
ownership NN
interest NN
. .

The DT
difference NN
is VBZ
that IN
current JJ
holders NNS
would MD
n't RB
retain VB
majority NN
ownership NN
or CC
control NN
. .

The DT
failed VBN
takeover NN
would MD
have VB
given VBN
UAL NNP
employees NNS
75 CD
% NN
voting NN
control NN
of IN
the DT
nation NN
's POS
second-largest JJ
airline NN
, ,
with IN
management NN
getting VBG
10 CD
% NN
control NN
and CC
British NNP
Air NNP
15 CD
% NN
. .

It PRP
was VBD
n't RB
clear JJ
how WRB
the DT
ownership NN
would MD
stack VB
up IN
under IN
the DT
new JJ
plan NN
, ,
but CC
employees NNS
would MD
keep VB
more JJR
than IN
50 CD
% NN
. .

Management NNP
's POS
total NN
could MD
be VB
reduced VBN
, ,
and CC
the DT
public NN
could MD
get VB
more JJR
than IN
the DT
15 CD
% NN
control NN
that WDT
had VBD
been VBN
earmarked VBN
for IN
British NNP
Air NNP
. .

One CD
option NN
the DT
board NN
is VBZ
likely JJ
to TO
consider VB
today NN
is VBZ
some DT
sort NN
of IN
cooling-off JJ
period NN
. .

Although IN
the DT
pilots NNS
are VBP
expected VBN
to TO
continue VB
to TO
pursue VB
the DT
bid NN
, ,
UAL NNP
Chairman NNP
Stephen NNP
Wolf NNP
may MD
be VB
asked VBN
to TO
withdraw VB
from IN
the DT
buy-out NN
effort NN
, ,
at IN
least JJS
temporarily RB
, ,
and CC
to TO
return VB
to TO
running VBG
the DT
company NN
full JJ
time NN
. .

The DT
board NN
could MD
eventually RB
come VB
under IN
some DT
pressure NN
to TO
sell VB
the DT
company NN
because IN
its PRP$
members NNS
can MD
be VB
ousted VBN
by IN
a DT
majority NN
shareholder NN
vote NN
, ,
particularly RB
since IN
one-third NN
of IN
UAL NNP
stock NN
is VBZ
held VBN
by IN
takeover NN
stock NN
speculators NNS
who WP
favor VBP
a DT
sale NN
. .

The DT
labor-management JJ
buy-out NN
group NN
plans NNS
to TO
keep VB
its PRP$
offer NN
on IN
the DT
table NN
in IN
an DT
apparent JJ
attempt NN
to TO
maintain VB
its PRP$
bargaining NN
position NN
with IN
the DT
board NN
. .

However RB
, ,
the DT
only JJ
outsider NN
who WP
has VBZ
emerged VBN
to TO
lead VB
such JJ
a DT
shareholder NN
vote NN
, ,
Los NNP
Angeles NNP
investor NN
Marvin NNP
Davis NNP
, ,
who WP
triggered VBD
the DT
buy-out NN
with IN
a DT
$ $
5.4 CD
billion CD
bid NN
in IN
early JJ
August NNP
, ,
is VBZ
hanging VBG
back RB
-- :
apparently RB
to TO
avoid VB
being VBG
blamed VBN
for IN
contributing VBG
to TO
the DT
deal NN
's POS
collapse NN
. .

Three CD
top JJ
advisers NNS
to TO
Mr. NNP
Davis NNP
visited VBD
New NNP
York NNP
late JJ
last JJ
week NN
, ,
at IN
least JJS
in IN
part NN
to TO
confer VB
with IN
executives NNS
at IN
Citicorp NNP
. .

Mr. NNP
Davis NNP
had VBD
paid VBN
$ $
6 CD
million CD
for IN
Citicorp NNP
's POS
backing VBG
of IN
his PRP$
last JJ
bid NN
. .

But CC
Citicorp NNP
has VBZ
lost VBN
some DT
credibility NN
because IN
it PRP
also RB
led VBD
the DT
unsuccessful JJ
effort NN
to TO
gain VB
bank NN
loans NNS
for IN
the DT
labor-management JJ
group NN
. .

On IN
Friday NNP
, ,
British NNP
Air NNP
issued VBD
a DT
statement NN
saying VBG
it PRP
`` ``
does VBZ
not RB
intend VB
to TO
participate VB
in IN
any DT
new JJ
deal NN
for IN
the DT
acquisition NN
of IN
UAL NNP
in IN
the DT
foreseeable JJ
future NN
. .
'' ''

However RB
, ,
several JJ
people NNS
said VBD
that IN
British NNP
Air NNP
might MD
yet RB
rejoin VB
the DT
bidding NN
group NN
and CC
that IN
the DT
carrier NN
made VBD
the DT
statement NN
to TO
answer VB
questions NNS
from IN
British JJ
regulators NNS
about IN
how WRB
it PRP
plans VBZ
to TO
use VB
proceeds NNS
of IN
a DT
securities NNS
offering NN
previously RB
earmarked VBD
for IN
the DT
UAL NNP
buy-out NN
. .

Also RB
late JJ
last JJ
week NN
, ,
UAL NNP
flight NN
attendants NNS
agreed VBD
to TO
participate VB
with IN
the DT
pilots NNS
in IN
crafting VBG
a DT
revised VBN
offer NN
. .

But CC
the DT
machinists NNS
union NN
, ,
whose WP$
opposition NN
helped VBD
scuttle VB
the DT
first JJ
buy-out NN
bid NN
, ,
is VBZ
likely JJ
to TO
favor VB
a DT
recapitalization NN
with IN
a DT
friendly JJ
third-party JJ
investor NN
. .

One CD
advantage NN
the DT
buy-out NN
group NN
intends VBZ
to TO
press VB
with IN
the DT
board NN
is VBZ
that IN
pilots NNS
have VBP
agreed VBN
to TO
make VB
$ $
200 CD
million CD
in IN
annual JJ
cost NN
concessions NNS
to TO
help VB
finance VB
a DT
bid NN
. .

Speculation NN
has VBZ
also RB
arisen VBN
that IN
the DT
UAL NNP
executive NN
most RBS
closely RB
identified VBN
with IN
the DT
failure NN
to TO
gain VB
bank NN
financing NN
, ,
chief JJ
financial JJ
officer NN
John NNP
Pope NNP
, ,
may MD
come VB
under IN
pressure NN
to TO
resign VB
. .

However RB
, ,
people NNS
familiar JJ
with IN
the DT
buy-out NN
group NN
said VBD
Mr. NNP
Pope NNP
's POS
departure NN
would MD
weaken VB
the DT
airline NN
's POS
management NN
at IN
a DT
critical JJ
time NN
. .

Despite IN
the DT
buy-out NN
group NN
's POS
failure NN
to TO
obtain VB
financing NN
, ,
UAL NNP
remains VBZ
obligated VBN
to TO
pay VB
$ $
26.7 CD
million CD
in IN
investment NN
banking NN
and CC
legal JJ
fees NNS
to TO
the DT
group NN
's POS
advisers NNS
, ,
Lazard NNP
Freres NNP
& CC
Co. NNP
, ,
Salomon NNP
Brothers NNP
Inc. NNP
, ,
and CC
Paul NNP
Weiss NNP
Rifkind NNP
Wharton NNP
& CC
Garrison NNP
. .

Whittle NNP
Communications NNP
Limited NNP
Partnership NNP
, ,
Knoxville NNP
, ,
Tenn. NNP
, ,
will MD
launch VB
its PRP$
first JJ
media NNS
property NN
targeting VBG
Hispanic JJ
women NNS
. .

`` ``
La NNP
Familia NNP
de FW
Hoy NNP
, ,
'' ''
or CC
`` ``
Today NN
's POS
Family NNP
, ,
'' ''
will MD
debut VB
this DT
spring NN
and CC
will MD
combine VB
a DT
national JJ
bimonthly JJ
magazine NN
and CC
TV NN
programming NN
. .

The DT
television NN
element NN
of IN
`` ``
La NNP
Familia NNP
'' ''
includes VBZ
a DT
series NN
of IN
two-minute JJ
informational JJ
features NNS
to TO
air VB
seven CD
days NNS
a DT
week NN
on IN
the DT
Spanish-language NNP
Univision NNP
network NN
, ,
a DT
unit NN
of IN
Univision NNP
Holdings NNP
Inc. NNP
, ,
which WDT
is VBZ
80%-owned JJ
by IN
Hallmark NNP
Cards NNP
Inc NNP
. .

The DT
features NNS
will MD
focus VB
on IN
`` ``
parenting NN
, ,
family NN
health NN
and CC
nutrition NN
, ,
and CC
financial JJ
management NN
, ,
'' ''
and CC
will MD
carry VB
30 CD
seconds NNS
of IN
advertising NN
. .

The DT
magazines NNS
, ,
also RB
ad-supported JJ
, ,
will MD
be VB
distributed VBN
in IN
more JJR
than IN
10,000 CD
doctors NNS
' POS
offices NNS
, ,
clinics NNS
, ,
and CC
health NN
centers NNS
in IN
Hispanic JJ
and CC
largely RB
Hispanic JJ
communities NNS
. .

WEIRTON NNP
STEEL NNP
Corp. NNP
said VBD
it PRP
completed VBD
a DT
$ $
300 CD
million CD
sale NN
of IN
10-year JJ
notes NNS
, ,
the DT
final JJ
step NN
in IN
the DT
1984 CD
buy-out NN
of IN
the DT
company NN
from IN
National NNP
Steel NNP
Corp NNP
. .

The DT
10 CD
7\/8 CD
% NN
notes NNS
were VBD
priced VBN
at IN
99.5 CD
% NN
to TO
yield VB
10.958 CD
% NN
in IN
an DT
offering NN
managed VBN
by IN
Bear NNP
, ,
Stearns NNP
& CC
Co. NNP
, ,
Shearson NNP
Lehman NNP
Hutton NNP
Inc. NNP
and CC
Lazard NNP
Freres NNP
& CC
Co. NNP
, ,
the DT
company NN
said VBD
. .
Weirton NNP
, ,
of IN
Weirton NNP
, ,
W. NNP
Va. NNP
, ,
said VBD
$ $
60.3 CD
million CD
of IN
the DT
proceeds NNS
were VBD
used VBN
to TO
prepay VB
the DT
remaining VBG
amounts NNS
on IN
the DT
note NN
outstanding JJ
to TO
National NNP
Intergroup NNP
Inc. NNP
, ,
the DT
parent NN
of IN
National NNP
Steel NNP
. .

Remaining VBG
proceeds NNS
were VBD
used VBN
to TO
pay VB
other JJ
debt NN
and CC
to TO
finance VB
the DT
company NN
's POS
capital NN
spending NN
program NN
. .

Lep NNP
Group NNP
PLC NNP
of IN
Britain NNP
, ,
which WDT
holds VBZ
a DT
62.42 CD
% NN
stake NN
in IN
Profit NN
Systems NNP
Inc. NNP
, ,
said VBD
it PRP
is VBZ
considering VBG
courses NNS
of IN
action NN
that WDT
could MD
result VB
in IN
its PRP$
having VBG
`` ``
active JJ
control NN
'' ''
of IN
the DT
company NN
. .

In IN
a DT
filing NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
Lep NNP
Group NNP
said VBD
a DT
possible JJ
course NN
of IN
action NN
may MD
include VB
acquiring VBG
some DT
or CC
all DT
of IN
the DT
Profit NN
Systems NNPS
shares NNS
it PRP
does VBZ
n't RB
already RB
own JJ
. .

It PRP
noted VBD
, ,
however RB
, ,
that IN
it PRP
has VBZ
n't RB
determined VBN
any DT
specific JJ
terms NNS
of IN
a DT
possible JJ
transaction NN
. .

Lep NNP
Group NNP
and CC
affiliates NNS
currently JJ
control NN
3,513,072 CD
Profit NN
Systems NNPS
common JJ
shares NNS
, ,
or CC
62.42 CD
% NN
, ,
the DT
filing NN
said VBD
. .

Profit NN
Systems NNPS
, ,
Valley NNP
Stream NNP
, ,
N.Y. NNP
, ,
is VBZ
an DT
air NN
freight NN
forwarding NN
concern NN
. .

U.S. NNP
official JJ
reserve NN
assets NNS
rose VBD
$ $
6.05 CD
billion CD
in IN
September NNP
, ,
to TO
$ $
68.42 CD
billion CD
, ,
the DT
Treasury NNP
Department NNP
said VBD
. .

The DT
gain NN
compared VBN
with IN
a DT
$ $
1.10 CD
billion CD
decline NN
in IN
reserve NN
assets NNS
in IN
August NNP
to TO
$ $
62.36 CD
billion CD
, ,
the DT
department NN
said VBD
. .

U.S. NNP
reserve NN
assets NNS
consist VBP
of IN
foreign JJ
currencies NNS
, ,
gold NN
, ,
special JJ
drawing NN
rights NNS
at IN
the DT
International NNP
Monetary NNP
Fund NNP
and CC
the DT
U.S. NNP
reserve NN
position NN
-- :
its PRP$
ability NN
to TO
draw VB
foreign JJ
currencies NNS
-- :
at IN
the DT
IMF NNP
. .

The DT
nation NN
's POS
holdings NNS
of IN
foreign JJ
currencies NNS
increased VBN
$ $
5.67 CD
billion CD
in IN
September NNP
to TO
$ $
39.08 CD
billion CD
, ,
while IN
its PRP$
gold NN
reserves NNS
were VBD
virtually RB
unchanged JJ
at IN
$ $
11.07 CD
billion CD
. .

U.S. NNP
holdings NNS
of IN
IMF NNP
special JJ
drawing NN
rights NNS
last JJ
month NN
rose VBD
$ $
247 CD
million CD
, ,
to TO
$ $
9.49 CD
billion CD
, ,
and CC
its PRP$
reserve NN
position NN
at IN
the DT
IMF NNP
increased VBD
$ $
142 CD
million CD
, ,
to TO
$ $
8.79 CD
billion CD
. .

Alusuisse NNP
of IN
America NNP
Inc. NNP
plans VBZ
to TO
sell VB
its PRP$
Consolidated NNP
Aluminum NNP
Corp. NNP
subsidiary NN
as IN
part NN
of IN
its PRP$
strategy NN
to TO
focus VB
more JJR
on IN
aluminum NN
packaging NN
in IN
the DT
U.S. NNP
. .

Alusuisse NNP
, ,
of IN
New NNP
York NNP
, ,
declined VBD
to TO
say VB
how WRB
much JJ
it PRP
expects VBZ
to TO
get VB
for IN
the DT
unit NN
; :
the DT
company NN
has VBZ
hired VBN
First NNP
Boston NNP
Corp. NNP
to TO
help VB
identify VB
bidders NNS
. .

Alusuisse NNP
is VBZ
a DT
subsidiary NN
of IN
Swiss NNP
Aluminium NNP
Ltd. NNP
, ,
a DT
Zurich NNP
, ,
Switzerland NNP
, ,
producer NN
of IN
aluminum NN
, ,
chemicals NNS
and CC
packaging NN
products NNS
. .

Consolidated NNP
, ,
which WDT
had VBD
1988 CD
revenue NN
of IN
$ $
400 CD
million CD
, ,
makes VBZ
aluminum NN
sheet NN
and CC
foil NN
products NNS
at IN
its PRP$
Hannibal NNP
, ,
Ohio NNP
, ,
and CC
Jackson NNP
, ,
Tenn. NNP
, ,
rolling VBG
mills NNS
and CC
recycles VBZ
aluminum NN
at IN
a DT
plant NN
in IN
Bens NNP
Run NNP
, ,
W.Va NNP
. .

Manhattan NNP
National NNP
Corp. NNP
said VBD
Michael NNP
A. NNP
Conway NNP
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
, ,
was VBD
elected VBN
chief JJ
executive NN
of IN
the DT
holding VBG
company NN
's POS
two CD
principal JJ
insurance NN
subsidiaries NNS
. .

He PRP
succeeds VBZ
Paul NNP
P. NNP
Aniskovich NNP
Jr. NNP
, ,
who WP
resigned VBD
to TO
pursue VB
other JJ
business NN
interests NNS
, ,
the DT
company NN
said VBD
. .

Mr. NNP
Conway NNP
, ,
42 CD
years NNS
old JJ
, ,
was VBD
elected VBN
chairman NN
, ,
president NN
and CC
chief JJ
executive NN
of IN
Manhattan NNP
Life NNP
Insurance NNP
Co. NNP
and CC
president NN
and CC
chief JJ
executive NN
of IN
Manhattan NNP
National NNP
Life NNP
Insurance NNP
Co NNP
. .

Harry NNP
Rossi NNP
, ,
69 CD
, ,
chairman NN
of IN
the DT
holding VBG
company NN
, ,
also RB
remains VBZ
chairman NN
of IN
Manhattan NNP
National NNP
Life NNP
Insurance NNP
Co NNP
. .

Mr. NNP
Conway NNP
was VBD
executive JJ
vice NN
president NN
and CC
chief JJ
investment NN
officer NN
of IN
Union NNP
Central NNP
Life NNP
Insurance NNP
Co. NNP
, ,
of IN
Cincinnati NNP
, ,
in IN
1987 CD
, ,
when WRB
Union NNP
Central NNP
bought VBD
a DT
54 CD
% NN
interest NN
in IN
Manhattan NNP
National NNP
Corp NNP
. .

He PRP
resigned VBD
as IN
an DT
officer NN
of IN
Central NNP
Life NNP
to TO
accept VB
the DT
Manhattan NNP
National NNP
presidency NN
. .

Daniel NNP
J. NNP
Terra NNP
, ,
a DT
director NN
of IN
First NNP
Illinois NNP
Corp. NNP
, ,
said VBD
that IN
in IN
August NNP
he PRP
reduced VBD
his PRP$
stake NN
in IN
First NNP
Illinois NNP
to TO
26.48 CD
% NN
of IN
the DT
common JJ
shares NNS
outstanding JJ
. .

In IN
a DT
filing NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
Mr. NNP
Terra NNP
said VBD
he PRP
sold VBD
263,684 CD
First NNP
Illinois NNP
common JJ
shares NNS
from IN
Aug. NNP
9 CD
to TO
Aug. NNP
28 CD
for IN
$ $
9.9375 CD
to TO
$ $
10.5625 CD
a DT
share NN
. .

As IN
a DT
result NN
of IN
the DT
sales NNS
he PRP
holds VBZ
6,727,042 CD
shares NNS
. .

Mr. NNP
Terra NNP
said VBD
in IN
the DT
filing NN
that IN
he PRP
sold VBD
the DT
stock NN
to TO
decrease VB
his PRP$
position NN
in IN
the DT
Evanston NNP
, ,
Ill. NNP
, ,
banking NN
concern NN
. .

He PRP
may MD
sell VB
more JJR
shares NNS
in IN
the DT
open JJ
market NN
or CC
in IN
private JJ
transactions NNS
, ,
but CC
would MD
n't RB
rule VB
out IN
changing VBG
his PRP$
intentions NNS
and CC
buying VBG
shares NNS
, ,
the DT
filing NN
said VBD
. .

SciMed NNP
Life NNP
Systems NNP
Inc. NNP
, ,
Minneapolis NNP
, ,
said VBD
a DT
federal JJ
appeals NNS
court VBP
vacated VBD
an DT
earlier JJR
summary NN
judgment NN
in IN
its PRP$
favor NN
. .

A DT
lower JJR
court NN
in IN
St. NNP
Paul NNP
had VBD
ruled VBN
in IN
September NNP
1988 CD
that IN
a DT
heart NN
catheter NN
SciMed NNP
manufactures VBZ
does VBZ
n't RB
infringe VB
on IN
a DT
patent NN
owned VBN
by IN
Advanced NNP
Cardiovascular NNP
Systems NNPS
, ,
a DT
unit NN
of IN
Eli NNP
Lilly NNP
& CC
Co NNP
. .

SciMed NNP
said VBD
the DT
appeals NNS
court VBP
remanded VBD
the DT
case NN
back RB
to TO
the DT
district NN
court NN
for IN
further JJ
proceedings NNS
. .

In IN
national JJ
over-the-counter JJ
trading NN
Friday NNP
, ,
SciMed NNP
shares NNS
tumbled VBD
$ $
2.75 CD
to TO
$ $
43 CD
. .

SciMed NNP
said VBD
it PRP
`` ``
remains VBZ
committed VBN
'' ''
both DT
to TO
the DT
`` ``
vigorous JJ
defense NN
'' ''
of IN
its PRP$
position NN
that IN
the DT
catheter NN
does VBZ
n't RB
infringe VB
the DT
Lilly NNP
unit NN
's POS
patent NN
, ,
and CC
to TO
the DT
pursuit NN
of IN
its PRP$
own JJ
counterclaims NNS
, ,
which WDT
allege VBP
Lilly NNP
engaged VBD
in IN
antitrust JJ
violations NNS
and CC
other JJ
wrongful JJ
acts NNS
. .

A DT
REVISED VBN
BID NNP
FOR IN
UAL NNP
is VBZ
being VBG
prepared VBN
by IN
a DT
labor-management JJ
group NN
, ,
sources NNS
said VBD
. .

The DT
new JJ
proposal NN
, ,
which WDT
would MD
transfer VB
majority NN
ownership NN
of IN
United NNP
Air NNP
's POS
parent NN
to TO
employees NNS
and CC
leave VB
some DT
stock NN
in IN
public JJ
hands NNS
, ,
would MD
be VB
valued VBN
at IN
$ $
225 CD
to TO
$ $
240 CD
a DT
share NN
, ,
or CC
as RB
much JJ
as IN
$ $
5.42 CD
billion CD
. .

But CC
UAL NNP
's POS
board NN
is VBZ
n't RB
expected VBN
to TO
give VB
quick JJ
approval NN
to TO
any DT
offer NN
substantially RB
below IN
the DT
$ $
300-a-share JJ
bid NN
that WDT
collapsed VBD
recently RB
. .

Takeover NN
stock NN
speculators NNS
have VBP
incurred VBN
paper NN
losses NNS
of IN
over IN
$ $
700 CD
million CD
from IN
the DT
failed VBN
UAL NNP
offer NN
, ,
their PRP$
worst JJS
loss NN
ever RB
on IN
a DT
single JJ
deal NN
. .

Ford NNP
and CC
Saab NNP
ended VBD
talks NNS
about IN
a DT
possible JJ
alliance NN
after IN
Ford NNP
concluded VBD
that IN
the DT
cost NN
to TO
modernize VB
Saab NNP
's POS
car NN
operations NNS
would MD
outweigh VB
the DT
likely JJ
return NN
. .

The DT
collapse NN
Friday NNP
prompted VBD
speculation NN
that IN
Ford NNP
would MD
intensify VB
its PRP$
pursuit NN
of IN
Jaguar NNP
, ,
which WDT
is VBZ
negotiating VBG
a DT
defensive JJ
alliance NN
with IN
GM NNP
. .

Stock NN
prices NNS
edged VBD
up IN
in IN
quiet JJ
trading NN
Friday NNP
. .

The DT
Dow NNP
Jones NNP
industrials NNS
rose VBD
5.94 CD
, ,
to TO
2689.14 CD
, ,
making VBG
the DT
gain NN
for IN
the DT
week NN
a DT
record NN
119.88 CD
points NNS
, ,
or CC
4.7 CD
% NN
. .

Most JJS
bond NN
prices NNS
fell VBD
, ,
but CC
junk NN
bonds NNS
and CC
the DT
dollar NN
rose VBD
. .
New NNP
York NNP
City NNP
bonds NNS
were VBD
sold VBN
off IN
by IN
many JJ
investors NNS
last JJ
week NN
amid IN
political JJ
and CC
economic JJ
uncertainty NN
. .

More JJR
banks NNS
are VBP
being VBG
hurt VBN
by IN
Arizona NNP
's POS
worsening VBG
real-estate NN
slump NN
. .

First NNP
Interstate NNP
Bancorp NNP
of IN
Los NNP
Angeles NNP
said VBD
Friday NNP
it PRP
expects VBZ
a DT
$ $
16 CD
million CD
quarterly JJ
loss NN
, ,
citing VBG
property-loan JJ
losses NNS
at IN
its PRP$
Arizona NNP
unit NN
. .

OPEC NNP
's POS
ability NN
to TO
produce VB
more JJR
oil NN
than IN
it PRP
can MD
sell VB
is VBZ
starting VBG
to TO
cast VB
a DT
shadow NN
over IN
world NN
oil NN
markets NNS
. .

OPEC NNP
officials NNS
worry VBP
that IN
prices NNS
could MD
collapse VB
a DT
few JJ
months NNS
from IN
now RB
if IN
the DT
group NN
does VBZ
n't RB
adopt VB
new JJ
quotas NNS
. .

Saatchi NNP
& CC
Saatchi NNP
has VBZ
attracted VBN
offers VBZ
for IN
some DT
of IN
its PRP$
advertising NN
units NNS
but CC
has VBZ
rejected VBN
them PRP
, ,
sources NNS
said VBD
. .

The DT
proposals NNS
, ,
from IN
suitors NNS
including VBG
Interpublic NNP
Group NNP
, ,
come VB
as IN
the DT
London-based JJ
ad NN
giant NN
struggles NNS
through IN
its PRP$
most RBS
difficult JJ
period NN
ever RB
. .

Qintex NNP
Australia NNP
suffered VBD
another DT
setback NN
Friday NNP
when WRB
its PRP$
Los NNP
Angeles-based JJ
affiliate NN
filed VBN
for IN
Chapter NN
11 CD
protection NN
. .

Qintex NNP
's POS
$ $
1.5 CD
billion CD
pact NN
to TO
buy VB
MGM\/UA NNP
collapsed VBD
recently RB
. .

Kodak NNP
entered VBD
the DT
high-definition JJ
television NN
market NN
by IN
unveiling VBG
a DT
device NN
that WDT
can MD
convert VB
conventional JJ
film NN
into IN
high-definition JJ
video NN
. .

A DT
handful NN
of IN
small JJ
U.S. NNP
firms NNS
are VBP
refusing VBG
to TO
cede VB
the DT
HDTV-screen JJ
market NN
to TO
Japanese JJ
manufacturers NNS
. .

Freight NN
rates NNS
are VBP
bottoming VBG
out IN
and CC
starting VBG
to TO
rebound VB
. .

Trucking NNP
, ,
shipping VBG
and CC
air-freight NN
firms NNS
are VBP
all DT
planning NN
rate NN
increases NNS
, ,
reflecting VBG
higher JJR
costs NNS
and CC
tightened VBD
demand NN
. .

Texaco NNP
has VBZ
purchased VBN
an DT
oil-producing JJ
company NN
in IN
Texas NNP
for IN
$ $
476.5 CD
million CD
. .

It PRP
is VBZ
Texaco NNP
's POS
first JJ
major JJ
acquisition NN
since IN
the DT
legal JJ
battle NN
with IN
Pennzoil NNP
began VBD
over IN
four CD
years NNS
ago RB
. .

Winnebago NNP
posted VBD
a DT
widened VBD
quarterly JJ
loss NN
and CC
slashed VBD
its PRP$
dividend NN
in IN
half NN
, ,
reflecting VBG
the DT
deepening VBG
slowdown NN
in IN
recreational JJ
vehicle NN
sales NNS
. .

Markets NNS
-- :

Stocks NNS
: :

Volume NN
164,830,000 CD
shares NNS
. .

Dow NNP
Jones NNP
industrials NNS
2689.14 CD
, ,
up IN
5.94 CD
; :
transportation NN
1230.80 CD
, ,
off IN
32.71 CD
; :
utilities NNS
215.48 CD
, ,
up IN
0.06 CD
. .

Bonds NNS
: :

Shearson NNP
Lehman NNP
Hutton NNP
Treasury NNP
index NN
3392.49 CD
, ,
off IN

Commodities NNS
: :

Dow NNP
Jones NNP
futures NNS
index NN
129.62 CD
, ,
off IN
0.51 CD
; :
spot NN
index NN
131.34 CD
, ,
up IN
0.88 CD
. .

Dollar NN
: :

142.43 CD
yen NN
, ,
up IN
0.73 CD
; :
1.8578 CD
marks NNS
, ,
up IN
0.0108 CD
. .

Inmac NNP
Corp. NNP
, ,
a DT
money-losing JJ
direct JJ
marketer NN
of IN
computer NN
supplies NNS
and CC
accessories NNS
, ,
said VBD
directors NNS
suspended VBD
payment NN
of IN
its PRP$
semiannual JJ
dividend NN
as IN
too RB
great JJ
a DT
drain NN
on IN
funds NNS
. .

The DT
company NN
paid VBN
five CD
cents NNS
a DT
share NN
in IN
April NNP
. .

The DT
directors NNS
' POS
action NN
, ,
taken VBN
Oct. NNP
10 CD
but CC
announced VBD
Friday NNP
, ,
had VBD
little JJ
or CC
no DT
effect NN
on IN
the DT
company NN
's POS
stock NN
, ,
which WDT
stagnated VBD
at IN
$ $
4.75 CD
in IN
light NN
over-the-counter JJ
trading NN
. .

Inmac NNP
recently RB
disclosed VBD
a DT
$ $
12.3 CD
million CD
write-off NN
related VBN
to TO
a DT
corporate JJ
restructuring NN
that WDT
resulted VBD
in IN
the DT
company NN
's VBZ
posting VBG
a DT
$ $
6.4 CD
million CD
net JJ
loss NN
for IN
the DT
year NN
ended VBN
July NNP
29 CD
, ,
compared VBN
with IN
year-earlier JJ
profit NN
of IN
$ $
9.7 CD
million CD
, ,
or CC
$ $
1.02 CD
a DT
share NN
. .

Sales NNS
rose VBD
12 CD
% NN
to TO
$ $
249.5 CD
million CD
from IN
$ $
222.8 CD
million CD
. .

`` ``
The DT
board NN
felt VBD
that IN
the DT
continued VBN
payment NN
of IN
our PRP$
semiannual JJ
dividend NN
was VBD
inconsistent JJ
with IN
recent JJ
operating NN
results NNS
, ,
'' ''
said VBD
Kenneth NNP
A. NNP
Eldred NNP
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
. .

`` ``
All DT
our PRP$
efforts NNS
are VBP
now RB
focused VBN
on IN
improving VBG
earnings NNS
to TO
the DT
point NN
where WRB
we PRP
can MD
fund VB
additional JJ
new-country JJ
development NN
, ,
continue VB
to TO
invest VB
in IN
the DT
business NN
and CC
reinstate VB
the DT
dividend NN
, ,
'' ''
he PRP
added VBD
. .

The DT
company NN
offers VBZ
more JJR
than IN
3,500 CD
parts NNS
and CC
supplies NNS
directly RB
to TO
microcomputer NN
and CC
minicomputer NN
users NNS
through IN
catalog NN
sales NNS
. .

The DT
Food NNP
and CC
Drug NNP
Administration NNP
said VBD
American NNP
Home NNP
Products NNP
Corp. NNP
agreed VBD
to TO
recall VB
certain JJ
generic JJ
drugs NNS
that WDT
were VBD
produced VBN
by IN
its PRP$
Quantum NNP
Pharmics NNP
unit NN
in IN
Amityville NNP
, ,
N.Y NNP
. .

Quantum NNP
stopped VBD
shipping VBG
the DT
drugs NNS
last JJ
month NN
, ,
following VBG
a DT
federal JJ
investigation NN
regarding VBG
information NN
the DT
company NN
supplied VBN
to TO
obtain VB
three CD
drug NN
approvals NNS
. .

The DT
FDA NNP
requested VBD
the DT
recall NN
of IN
Quantum NNP
's POS
mioxidil NN
tablets NNS
, ,
chlorazepate NN
dipotassium NN
tablets NNS
and CC
meclofenamate NN
sodium NN
capsules NNS
because IN
, ,
it PRP
said VBD
, ,
the DT
size NN
of IN
the DT
production NN
runs VBZ
submitted VBN
for IN
testing NN
to TO
gain VB
FDA NNP
approval NN
was VBD
in IN
each DT
case NN
misrepresented VBD
as IN
much RB
larger JJR
than IN
it PRP
actually RB
was VBD
. .

American NNP
Home NNP
Products NNPS
, ,
based VBN
in IN
New NNP
York NNP
, ,
agreed VBD
to TO
recall VB
four CD
other JJ
products NNS
, ,
trazadone NN
, ,
doxepin NN
, ,
diazepam NN
and CC
lorazapam NN
, ,
because IN
of IN
concerns NNS
about IN
data NNS
submitted VBN
in IN
their PRP$
original JJ
approval NN
applications NNS
before IN
the DT
FDA NNP
. .

No DT
safety NN
problems NNS
with IN
the DT
products NNS
are VBP
known VBN
, ,
the DT
FDA NNP
said VBD
. .

An DT
FDA NNP
spokesperson NN
said VBD
the DT
drugs NNS
are VBP
still RB
available JJ
under IN
other JJ
brand NN
names NNS
. .

Last JJ
month NN
, ,
American NNP
Home NNP
Products NNPS
said VBD
it PRP
was VBD
suspending VBG
production NN
and CC
distribution NN
of IN
all DT
21 CD
of IN
Quantum NNP
's POS
generic JJ
drug NN
products NNS
pending VBG
the DT
completion NN
of IN
an DT
exhaustive JJ
internal JJ
audit NN
. .

It PRP
also RB
temporarily RB
closed VBD
Quantum NNP
, ,
because IN
of IN
the DT
internal JJ
investigation NN
, ,
as RB
well RB
as IN
the DT
FDA NNP
's POS
ongoing JJ
inquiry NN
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
American NNP
Home NNP
Products NNPS
rose VBD
75 CD
cents NNS
to TO
$ $
105 CD
on IN
Friday NNP
. .

Lyondell NNP
Petrochemical NNP
Co. NNP
said VBD
third-quarter JJ
net JJ
income NN
fell VBD
54 CD
% NN
, ,
to TO
$ $
73 CD
million CD
, ,
or CC
91 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
160 CD
million CD
a DT
year NN
earlier RBR
. .

Year-earlier JJ
per-share JJ
results NNS
are VBP
n't RB
applicable JJ
because IN
the DT
company NN
went VBD
public JJ
in IN
January NNP
. .

Revenue NN
rose VBD
7.7 CD
% NN
to TO
$ $
1.28 CD
billion CD
from IN
$ $
1.18 CD
billion CD
. .

The DT
petrochemical NN
maker NN
said VBD
the DT
biggest JJS
reason NN
earnings NNS
declined VBD
was VBD
a DT
loss NN
of IN
production NN
time NN
and CC
the DT
increased VBN
costs NNS
associated VBN
with IN
a DT
temporary JJ
maintenance NN
closing VBG
and CC
expansion NN
of IN
an DT
olefins NNS
plant VBP
. .

Like IN
other JJ
refiners NNS
, ,
Lyondell NNP
's POS
margins NNS
for IN
chemicals NNS
and CC
gasoline NN
were VBD
narrower JJR
. .

While IN
the DT
company NN
said VBD
chemical NN
margins NNS
continued VBD
to TO
worsen VB
this DT
quarter NN
, ,
costs NNS
will MD
be VB
lower JJR
because IN
the DT
maintenance NN
and CC
expansions NNS
are VBP
complete JJ
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
Friday NNP
, ,
Lyondell NNP
was VBD
unchanged JJ
at IN
$ $
18.50 CD
a DT
share NN
. .

Four CD
former JJ
Cordis NNP
Corp. NNP
officials NNS
were VBD
acquitted VBN
of IN
federal JJ
charges NNS
related VBN
to TO
the DT
Miami-based JJ
company NN
's POS
sale NN
of IN
pacemakers NNS
, ,
including VBG
conspiracy NN
to TO
hide VB
pacemaker NN
defects NNS
. .

Jurors NNS
in IN
U.S. NNP
District NNP
Court NNP
in IN
Miami NNP
cleared VBD
Harold NNP
Hershhenson NNP
, ,
a DT
former JJ
executive JJ
vice NN
president NN
; :
John NNP
Pagones NNP
, ,
a DT
former JJ
vice NN
president NN
; :
and CC
Stephen NNP
Vadas NNP
and CC
Dean NNP
Ciporkin NNP
, ,
who WP
had VBD
been VBN
engineers NNS
with IN
Cordis NNP
. .

Earlier RBR
this DT
year NN
, ,
Cordis NNP
, ,
a DT
maker NN
of IN
medical JJ
devices NNS
, ,
agreed VBD
to TO
plead VB
guilty JJ
to TO
felony NN
and CC
misdemeanor NN
charges NNS
related VBN
to TO
the DT
pacemakers NNS
and CC
to TO
pay VB
the DT
government NN
about RB
$ $
5.7 CD
million CD
in IN
fines NNS
and CC
other JJ
costs NNS
. .
Cordis NNP
sold VBD
its PRP$
pacemaker NN
operations NNS
two CD
years NNS
ago RB
to TO
Telectronics NNP
Holding NNP
Ltd. NNP
of IN
Australia NNP
. .

PAPERS NNS
: :

Management NNP
and CC
unions NNS
representing VBG
2,400 CD
employees NNS
at IN
Torstar NNP
Corp. NNP
's POS
Toronto NNP
Star NNP
reached VBD
a DT
tentative JJ
contract NN
agreement NN
Friday NNP
, ,
averting VBG
a DT
strike NN
by IN
most RBS
employees NNS
of IN
Canada NNP
's POS
largest JJS
daily JJ
newspaper NN
. .

Members NNS
of IN
the DT
largest JJS
union NN
, ,
representing VBG
1,700 CD
workers NNS
, ,
voted VBD
in IN
favor NN
of IN
the DT
pact NN
yesterday NN
. .

Four CD
other JJ
unions NNS
have VBP
yet RB
to TO
vote VB
, ,
but CC
their PRP$
leadership NN
also RB
recommended VBD
approval NN
. .

The DT
pact NN
proposes VBZ
a DT
2 CD
1\/2-year JJ
contract NN
with IN
a DT
raise NN
of IN
8 CD
% NN
in IN
the DT
first JJ
year NN
, ,
7 CD
% NN
in IN
the DT
second JJ
and CC
4 CD
% NN
for IN
the DT
final JJ
six CD
months NNS
. .

Amgen NNP
Inc. NNP
said VBD
its PRP$
second-quarter JJ
earnings NNS
increased VBN
more JJR
than IN
tenfold RB
to TO
$ $
3.9 CD
million CD
, ,
or CC
22 CD
cents NNS
a DT
share NN
, ,
due JJ
to TO
increased VB
sales NNS
of IN
the DT
company NN
's POS
new JJ
antianemia JJ
drug NN
for IN
kidney NN
patients NNS
. .

The DT
Thousand NNP
Oaks NNP
, ,
Calif.-based JJ
biotechnology NN
company NN
reported VBD
a DT
97 CD
% NN
increase NN
in IN
revenue NN
to TO
$ $
42.5 CD
million CD
for IN
the DT
quarter NN
ended VBN
Sept. NNP
30 CD
. .

In IN
the DT
year-ago JJ
period NN
, ,
Amgen NNP
reported VBD
net JJ
income NN
of IN
$ $
320,000 CD
, ,
or CC
two CD
cents NNS
a DT
share NN
, ,
on IN
revenue NN
of IN
$ $
21.5 CD
million CD
. .

For IN
the DT
six CD
months NNS
, ,
the DT
company NN
reported VBD
a DT
more JJR
than IN
sixfold JJ
increase NN
in IN
earnings NNS
to TO
$ $
4.7 CD
million CD
, ,
or CC
26 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
625,000 CD
, ,
or CC
four CD
cents NNS
a DT
share NN
a DT
year NN
ago RB
. .

Revenue NN
rose VBD
77 CD
% NN
to TO
$ $
72.6 CD
million CD
, ,
from IN
last JJ
year NN
's POS
$ $
41 CD
million CD
. .

LEBANESE JJ
LAWMAKERS NNS
APPROVED VBD
a DT
peace NN
plan NN
but CC
Aoun NNP
rejected VBD
it PRP
. .

Lebanon NNP
's POS
Parliament NNP
passed VBD
the DT
power-sharing JJ
accord NN
to TO
end VB
the DT
country NN
's POS
14-year-old JJ
conflict NN
, ,
but CC
the DT
Christian NNP
military JJ
leader NN
wad NN
the DT
plan NN
was VBD
`` ``
full JJ
of IN
ambiguities NNS
. .
'' ''

The DT
Arab NNP
League-sponsored JJ
pact NN
, ,
drafted VBN
during IN
three CD
weeks NNS
of IN
talks NNS
at IN
the DT
Saudi NNP
Arabian NNP
resort NN
of IN
Taif NNP
, ,
includes VBZ
Syrian JJ
proposals NNS
for IN
at IN
least JJS
a DT
partial JJ
troop NN
pullout NN
from IN
Lebanon NNP
, ,
and CC
guarantees VBZ
an DT
equal JJ
number NN
of IN
seats NNS
for IN
Moslems NNPS
and CC
Christians NNPS
in IN
the DT
Parliament NNP
. .

The DT
rejection NN
by IN
Aoun NNP
, ,
who WP
has VBZ
demanded VBN
a DT
total JJ
and CC
immediate JJ
pull-out NN
of IN
Damascus NNP
's POS
33,000 CD
troops NNS
, ,
puts VBZ
the DT
future NN
of IN
the DT
agreement NN
in IN
doubt NN
. .

NORTHERN NNP
CALIFORNIA NNP
BRACED NNP
for IN
earthquake-related JJ
traffic NN
jams NNS
. .

As IN
rescuers NNS
pressed VBD
their PRP$
efforts NNS
after IN
finding VBG
a DT
survivor NN
in IN
a DT
collapsed VBN
freeway NN
, ,
the DT
San NNP
Francisco NNP
Bay NNP
area NN
girded VBD
for IN
hundreds NNS
of IN
thousands NNS
of IN
commuters NNS
seeking VBG
to TO
avoid VB
routes NNS
ravaged VBN
by IN
last JJ
Tuesday NNP
's POS
tremor NN
. .

In IN
Oakland NNP
, ,
officials NNS
said VBD
the DT
57-year-old JJ
longshoreman NN
who WP
spent VBD
four CD
days NNS
entombed VBN
in IN
rubble NN
was VBD
in IN
critical JJ
condition NN
with IN
slight JJ
improvement NN
. .

Estimates NNS
of IN
damage NN
in IN
the DT
area NN
, ,
visited VBD
Friday NNP
by IN
Bush NNP
, ,
topped VBD
$ $
5 NN
billion CD
. .

The DT
baseball NN
commissioner NN
announced VBD
that IN
the DT
third JJ
game NN
of IN
the DT
World NNP
Series NNP
between IN
the DT
Giants NNP
and CC
the DT
Athletics NNP
would MD
n't RB
resume VB
until IN
Friday NNP
. .

THE DT
U.S. NNP
. .
IS VBZ
REQUIRED NNP
to TO
notify VB
foreign JJ
dictators NNS
of IN
certain JJ
coup NN
plans NNS
. .

Under IN
guidelines NNS
included VBD
in IN
an DT
exchange NN
of IN
letters NNS
between IN
the DT
Reagan NNP
administration NN
and CC
the DT
Senate NNP
Intelligence NNP
panel NN
last JJ
year NN
, ,
the DT
U.S. NNP
must MD
inform VB
foreign JJ
dictators NNS
of IN
plans NNS
likely JJ
to TO
endanger VB
their PRP$
lives NNS
. .

The DT
existence NN
of IN
the DT
policy NN
became VBD
known VBN
after IN
Bush NNP
disclosed VBD
it PRP
to TO
seven CD
GOP NNP
senators NNS
last JJ
week NN
, ,
citing VBG
the DT
plan NN
as IN
an DT
example NN
of IN
congressional JJ
requirements NNS
the DT
administration NN
contends VBZ
contribute VB
to TO
the DT
failure NN
of IN
covert JJ
actions NNS
, ,
officials NNS
said VBD
. .

Bush NNP
conceded VBD
that IN
the DT
requirement NN
did VBD
n't RB
affect VB
a DT
decision NN
to TO
lend VB
only RB
minor JJ
support NN
to TO
this DT
month NN
's POS
failed VBD
effort NN
to TO
oust VB
Panama NNP
's POS
Noriega NNP
, ,
aides NNS
said VBD
. .

The DT
shuttle NN
Atlantis NNP
's POS
crew NN
prepared VBN
to TO
return VB
to TO
Earth NNP
today NN
several JJ
hours NNS
earlier RBR
than IN
planned VBN
to TO
avoid VB
high JJ
winds NNS
forecast VBP
at IN
the DT
landing NN
site NN
at IN
Edwards NNP
Air NNP
Force NNP
Base NNP
, ,
Calif NNP
. .

The DT
five CD
astronauts NNS
, ,
who WP
stowed VBD
gear NN
and CC
tested VBD
the DT
spacecraft NN
's POS
steering NN
, ,
said VBD
they PRP
were VBD
unconcerned JJ
about IN
the DT
touchy JJ
weather NN
expected VBN
in IN
the DT
Mojave NNP
Desert NNP
. .

Commonwealth NN
leaders NNS
issued VBD
a DT
declaration NN
giving VBG
South NNP
Africa NNP
six CD
months NNS
to TO
deliver VB
on IN
pledges NNS
to TO
ease VB
apartheid NN
or CC
face NN
new JJ
reprisals NNS
. .

The DT
49-nation JJ
organization NN
, ,
meeting NN
in IN
Malaysia NNP
, ,
called VBN
for IN
tighter RBR
financial JJ
pressure NN
immediately RB
. .

Britain NNP
's POS
Prime NNP
Minister NNP
Thatcher NNP
alone RB
dissented VBD
. .

East NNP
Germany NNP
's POS
leadership NN
vowed VBD
swift JJ
action NN
to TO
ease VB
travel NN
to TO
the DT
West NNP
. .

Despite IN
the DT
pledge NN
by IN
the DT
Communist NNP
rulers NNS
, ,
tens NNS
of IN
thousands NNS
of IN
people NNS
across IN
the DT
country NN
staged VBD
marches NNS
over IN
the DT
weekend NN
to TO
demand VB
democratic JJ
freedoms NNS
. .

In IN
Leipzig NNP
, ,
more JJR
than IN
500 CD
people NNS
met VBD
with IN
local JJ
party NN
officials NNS
to TO
discuss VB
internal JJ
changes NNS
. .

The DT
Senate NNP
convicted VBD
federal JJ
Judge NNP
Alcee NNP
Hastings NNP
of IN
Miami NNP
of IN
eight CD
impeachment NN
articles NNS
, ,
removing VBG
him PRP
from IN
the DT
bench NN
. .

The DT
chamber NN
voted VBD
69-26 CD
Friday NNP
to TO
convict VB
the DT
judge NN
of IN
perjury NN
and CC
bribery NN
conspiracy NN
. .

It PRP
marked VBD
the DT
first JJ
time NN
a DT
U.S. NNP
official NN
was VBD
impeached VBN
on IN
charges NNS
of IN
which WDT
a DT
jury NN
had VBD
acquitted VBN
him PRP
. .

Rep. NNP
Garcia NNP
and CC
his PRP$
wife NN
were VBD
found VBN
guilty JJ
by IN
a DT
federal JJ
jury NN
in IN
New NNP
York NNP
of IN
extorting VBG
$ $
76,000 CD
from IN
Wedtech NNP
Corp. NNP
in IN
return NN
for IN
official JJ
acts NNS
by IN
the DT
New NNP
York NNP
Democrat NNP
. .

The DT
jury NN
also RB
convicted VBD
them PRP
of IN
extortion NN
in IN
obtaining VBG
a DT
$ $
20,000 CD
interest-free JJ
loan NN
from IN
an DT
officer NN
of IN
the DT
defunct JJ
defense NN
contractor NN
. .

Authorities NNS
in IN
Honduras NNP
launched VBD
an DT
investigation NN
into IN
the DT
cause NN
of IN
Saturday NNP
's POS
crash NN
of IN
a DT
Honduran JJ
jetliner NN
that WDT
killed VBD
132 CD
of IN
the DT
146 CD
people NNS
aboard RB
. .

The DT
Boeing NNP
727 CD
, ,
en IN
route NN
to TO
Honduras NNP
from IN
Costa NNP
Rica NNP
via IN
Nicaragua NNP
, ,
smashed VBD
into IN
the DT
hills NNS
outside IN
Tegucigalpa NNP
as IN
it PRP
approached VBD
the DT
capital NN
's POS
airport NN
in IN
high JJ
winds NNS
and CC
low JJ
clouds NNS
. .

The DT
U.S. NNP
and CC
Israel NNP
have VBP
been VBN
holding VBG
what WP
an DT
aide NN
to TO
Prime NNP
Minister NNP
Shamir NNP
called VBD
intense JJ
telephone NN
negotiations NNS
in IN
an DT
effort NN
to TO
bridge VB
differences NNS
over IN
Mideast NNP
peace NN
moves NNS
. .
The DT
Labor NNP
Party NNP
, ,
meanwhile RB
, ,
threatened VBN
to TO
support VB
a DT
parliamentary JJ
motion NN
to TO
topple VB
the DT
coalition NN
unless IN
Shamir NNP
showed VBD
flexibility NN
on IN
Arab-Israeli JJ
talks NNS
. .

Nicaragua NNP
's POS
Defense NNP
Ministry NNP
said VBD
a DT
group NN
of IN
Contra NNP
rebels NNS
ambushed VBD
two CD
trucks NNS
carrying VBG
troops NNS
in IN
northern JJ
Nicaragua NNP
, ,
killing VBG
18 CD
of IN
the DT
soldiers NNS
. .

The DT
incident NN
occurred VBD
Saturday NNP
night NN
. .
The DT
Sandinista NNP
government NN
and CC
the DT
U.S.-backed JJ
insurgents NNS
agreed VBD
in IN
March NNP
to TO
suspend VB
offensive JJ
operations NNS
, ,
but CC
there EX
has VBZ
been VBN
sporadic JJ
fighting NN
. .

Scientists NNS
have VBP
isolated VBN
a DT
molecule NN
that WDT
may MD
hold VB
potential JJ
as IN
a DT
treatment NN
for IN
disruptions NNS
of IN
the DT
immune JJ
system NN
, ,
ranging VBG
from IN
organ-transplant JJ
rejection NN
, ,
to TO
allergies NNS
and CC
asthma NN
, ,
Immunex NNP
Corp. NNP
said VBD
. .

The DT
molecule NN
is VBZ
the DT
mouse NN
version NN
of IN
a DT
protein NN
called VBD
the DT
interleukin-4 NN
receptor NN
, ,
which WDT
directs VBZ
the DT
growth NN
and CC
function NN
of IN
white JJ
blood NN
cells NNS
. .

Died VBD
: :
Alfred NNP
Hayes NNP
, ,
79 CD
, ,
former JJ
president NN
of IN
the DT
Federal NNP
Reserve NNP
Bank NNP
of IN
New NNP
York NNP
, ,
Saturday NNP
, ,
in IN
New NNP
Canaan NNP
, ,
Conn NNP
. .

Contel NNP
Corp. NNP
said VBD
third-quarter JJ
net JJ
income NN
increased VBN
16 CD
% NN
to TO
$ $
72 CD
million CD
, ,
or CC
45 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
62 CD
million CD
, ,
or CC
39 CD
cents NNS
a DT
share NN
, ,
as IN
a DT
result NN
of IN
strong JJ
growth NN
in IN
telephone-access JJ
lines NNS
and CC
long-distance JJ
minutes NNS
of IN
use NN
. .

The DT
telecommunications NNS
company NN
's POS
results NNS
included VBD
a DT
one-time JJ
gain NN
of IN
$ $
4 CD
million CD
, ,
or CC
two CD
cents NNS
a DT
share NN
, ,
from IN
the DT
sale NN
of IN
Contel NNP
Credit NNP
, ,
a DT
leasing NN
and CC
financial-services NNS
subsidiary NN
. .

Revenue NN
rose VBD
8.3 CD
% NN
to TO
$ $
780 CD
million CD
from IN
$ $
720 CD
million CD
. .

Telephone-operations NNS
quarterly JJ
profit NN
increased VBN
9 CD
% NN
to TO
$ $
84 CD
million CD
from IN
$ $
77 CD
million CD
, ,
while IN
federal-systems JJ
earnings NNS
declined VBD
33 CD
% NN
to TO
$ $
4 CD
million CD
from IN
$ $
6 CD
million CD
. .
Information NN
systems NNS
posted VBD
a DT
loss NN
of IN
$ $
8 CD
million CD
, ,
compared VBN
with IN
a DT
loss NN
of IN
$ $
9 CD
million CD
a DT
year NN
earlier RBR
. .

Customer-access NN
lines NNS
increased VBN
at IN
an DT
annualized VBN
rate NN
of IN
about IN
4 CD
% NN
and CC
minutes NNS
of IN
long-distance JJ
use NN
rose VBD
about IN
12 CD
% NN
. .

A DT
10 CD
% NN
gain NN
in IN
operating VBG
profit NN
in IN
the DT
quarter NN
was VBD
offset VBN
by IN
a DT
21 CD
% NN
boost NN
in IN
interest NN
expense NN
, ,
reflecting VBG
higher JJR
consolidated JJ
borrowings NNS
and CC
interest NN
rates NNS
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Contel NNP
closed VBD
at IN
$ $
33.75 CD
a DT
share NN
, ,
down RB
.50 CD
cents NNS
. .

In IN
East NNP
Germany NNP
, ,
where WRB
humor NN
has VBZ
long RB
been VBN
the DT
only JJ
way NN
to TO
express VB
political JJ
criticism NN
, ,
they PRP
're VBP
not RB
laughing VBG
about IN
their PRP$
new JJ
leader NN
Egon NNP
Krenz NNP
. .

Mr. NNP
Krenz NNP
is VBZ
such JJ
a DT
contradictory JJ
figure NN
that DT
nobody NN
has VBZ
even RB
come VB
up IN
with IN
any DT
good JJ
jokes NNS
about IN
him PRP
. .

`` ``
You PRP
have VBP
to TO
have VB
clear JJ
feelings NNS
about IN
someone NN
before IN
you PRP
can MD
make VB
jokes NNS
, ,
'' ''
says VBZ
an DT
East JJ
German JJ
mother NN
of IN
two CD
who WP
loves VBZ
swapping VBG
political JJ
barbs NNS
with IN
her PRP$
friends NNS
. .

`` ``
With IN
Krenz NNP
, ,
we PRP
just RB
do VBP
n't RB
know VB
what WP
to TO
expect VB
. .
'' ''

Mr. NNP
Krenz NNP
does VBZ
n't RB
seem VB
to TO
be VB
the DT
knee-jerk JJ
hardliner NN
many JJ
initially RB
thought VBD
he PRP
was VBD
when WRB
the DT
52-year-old NNP
Politburo NNP
member NN
was VBD
selected VBN
last JJ
week NN
to TO
succeed VB
Erich NNP
Honecker NNP
. .

But CC
he PRP
does VBZ
n't RB
appear VB
to TO
be VB
ready JJ
to TO
make VB
broad JJ
changes NNS
either RB
. .

According VBG
to TO
East NNP
Germany NNP
's POS
ADN NNP
news NN
agency NN
, ,
Mr. NNP
Krenz NNP
spoke VBD
to TO
Soviet JJ
leader NN
Mikhail NNP
Gorbachev NNP
by IN
telephone NN
over IN
the DT
weekend NN
and CC
acknowledged VBD
East NNP
Germany NNP
could MD
learn VB
from IN
Moscow NNP
's POS
glasnost FW
policies NNS
. .

Already RB
last JJ
week NN
, ,
Mr. NNP
Krenz NNP
started VBD
overhauling VBG
East NNP
Germany NNP
's POS
heavily RB
censored VBN
and CC
notoriously RB
boring JJ
news NN
media NNS
. .

On IN
Thursday NNP
, ,
a DT
day NN
after IN
he PRP
took VBD
office NN
, ,
East JJ
German JJ
television NN
broke VBD
into IN
regular JJ
programming NN
to TO
launch VB
a DT
talk NN
show NN
in IN
which WDT
viewers NNS
call VBP
in IN
questions NNS
for IN
a DT
panel NN
of IN
officials NNS
to TO
answer VB
. .

The DT
regular JJ
nightly JJ
news NN
program NN
and CC
daily JJ
newspapers NNS
are VBP
also RB
getting VBG
a DT
visible JJ
injection NN
of IN
Soviet-style JJ
glasnost FW
. .

`` ``
It PRP
was VBD
quite RB
a DT
shock NN
, ,
'' ''
says VBZ
a DT
43-year-old NNP
East JJ
German JJ
shopkeeper NN
. .

`` ``
For IN
the DT
first JJ
time NN
in IN
my PRP$
life NN
, ,
I PRP
was VBD
n't RB
sure JJ
whether IN
I PRP
was VBD
listening VBG
to TO
our PRP$
news NN
or CC
West JJ
German JJ
television NN
. .
'' ''

Other JJ
changes NNS
, ,
including VBG
easing VBG
restrictions NNS
on IN
travel NN
for IN
East NNP
Germans NNPS
, ,
are VBP
expected VBN
. .

But CC
whether IN
such JJ
moves NNS
can MD
win VB
back RB
the DT
confidence NN
of IN
East NNP
Germans NNPS
, ,
who WP
have VBP
taken VBN
to TO
the DT
streets NNS
by IN
the DT
thousands NNS
in IN
recent JJ
weeks NNS
to TO
demand VB
democratic JJ
changes NNS
, ,
depends VBZ
largely RB
on IN
whether IN
they PRP
feel VBP
they PRP
can MD
trust VB
Mr. NNP
Krenz NNP
. .

And CC
that DT
's VBZ
a DT
problem NN
. .

Mr. NNP
Krenz NNP
is VBZ
not RB
only RB
closely RB
identified VBN
with IN
his PRP$
mentor NN
, ,
Mr. NNP
Honecker NNP
, ,
but CC
also RB
blamed VBD
for IN
ordering VBG
violent JJ
police NN
action NN
against IN
protesters NNS
this DT
month NN
and CC
for IN
praising VBG
China NNP
for IN
sending VBG
tanks NNS
against IN
student NN
demonstrators NNS
. .

`` ``
I PRP
hope VBP
he PRP
grows VBZ
with IN
the DT
job NN
, ,
'' ''
says VBZ
Rainer NNP
Eppelmann NNP
, ,
a DT
Protestant NNP
pastor NN
in IN
East NNP
Berlin NNP
. .

`` ``
The DT
most RBS
important JJ
thing NN
is VBZ
that IN
he PRP
have VBP
a DT
chance NN
. .
'' ''

Although IN
Mr. NNP
Krenz NNP
is VBZ
dedicated VBN
to TO
East NNP
Germany NNP
's POS
conservative JJ
vein NN
of IN
communism NN
, ,
there EX
is VBZ
much JJ
about IN
his PRP$
style NN
that IN
sets NNS
him PRP
apart RB
from IN
his PRP$
party NN
comrades NNS
. .

Unlike IN
Mr. NNP
Honecker NNP
, ,
who WP
tended VBD
to TO
lecture VB
people NNS
about IN
socialist JJ
values NNS
, ,
Mr. NNP
Krenz NNP
enjoys VBZ
asking VBG
questions NNS
. .

Indeed RB
, ,
one CD
of IN
his PRP$
first JJ
actions NNS
as IN
leader NN
was VBD
to TO
visit VB
a DT
gritty JJ
machine NN
factory NN
on IN
the DT
outskirts NNS
of IN
Berlin NNP
and CC
wander VB
among IN
the DT
workers NNS
-- :
a DT
la FW
Gorbachev NNP
. .

He PRP
was VBD
later RB
shown VBN
on IN
television NN
, ,
fielding NN
questions NNS
. .

At IN
one CD
point NN
, ,
he PRP
asked VBD
a DT
worker NN
whether IN
he PRP
thought VBD
East NNP
Germans NNPS
were VBD
fleeing VBG
the DT
country NN
because IN
of IN
restrictive JJ
travel NN
policies NNS
. .
The DT
worker NN
's POS
tart JJ
reply NN
: :
`` ``
It PRP
's VBZ
more JJR
than IN
just RB
travel NN
. .

People NNS
have VBP
a DT
sense NN
the DT
government NN
is VBZ
ignoring VBG
the DT
real JJ
problems NNS
in IN
our PRP$
society NN
. .
'' ''

The DT
exchange NN
was VBD
all PDT
the DT
more RBR
remarkable JJ
in IN
that DT
authorities NNS
released VBD
television NN
footage NN
to TO
Western JJ
news NN
agencies NNS
. .

This DT
same JJ
tendency NN
toward IN
openness NN
impressed VBD
a DT
group NN
of IN
visiting VBG
U.S. NNP
congressmen NNS
this DT
spring NN
. .

Rather RB
than IN
trying VBG
to TO
`` ``
lecture NN
us PRP
, ,
'' ''
says VBZ
one CD
congressional JJ
aide NN
who WP
attended VBD
the DT
two-hour JJ
meeting NN
, ,
Mr. NNP
Krenz NNP
`` ``
wanted VBD
to TO
listen VB
. .
'' ''

Rep. NNP
Ronnie NNP
Flippo NNP
-LRB- (
D. NNP
, ,
Ala. NNP
-RRB- )
, ,
one CD
of IN
the DT
members NNS
of IN
the DT
delegation NN
, ,
says VBZ
he PRP
was VBD
particularly RB
impressed VBN
by IN
Mr. NNP
Krenz NNP
's POS
ready JJ
admission NN
that IN
East NNP
Germany NNP
needed VBD
to TO
change VB
. .

`` ``
He PRP
's VBZ
a DT
very RB
tough JJ
man NN
, ,
but CC
one CD
who WP
's VBZ
also RB
open JJ
to TO
arguments NNS
, ,
'' ''
adds VBZ
an DT
aide NN
to TO
West JJ
German NNP
Chancellor NNP
Helmut NNP
Kohl NNP
. .

But CC
there EX
's VBZ
another DT
side NN
to TO
Mr. NNP
Krenz NNP
. .

Born VBN
in IN
a DT
Baltic JJ
town NN
in IN
an DT
area NN
which WDT
is VBZ
now JJ
part NN
of IN
Poland NNP
, ,
he PRP
has VBZ
dedicated VBN
his PRP$
life NN
to TO
the DT
party NN
apparatus NN
. .

He PRP
moved VBD
quickly RB
through IN
the DT
ranks NNS
with IN
the DT
help NN
of IN
his PRP$
patron NN
, ,
Mr. NNP
Honecker NNP
, ,
and CC
emerged VBD
as IN
the DT
heir NN
apparent JJ
. .

Barbara NNP
Donovan NNP
, ,
an DT
expert NN
on IN
East NNP
Germany NNP
at IN
Radio NNP
Free NNP
Europe NNP
in IN
Munich NNP
, ,
says VBZ
Mr. NNP
Krenz NNP
may MD
project VB
a DT
smooth JJ
image NN
, ,
but CC
she PRP
doubts VBZ
he PRP
's VBZ
a DT
true JJ
reformer NN
. .

Even RB
if IN
he PRP
is VBZ
, ,
she PRP
adds VBZ
, ,
he PRP
appears VBZ
to TO
have VB
only RB
limited JJ
room NN
for IN
maneuver NN
within IN
the DT
Communist NNP
Party NNP
's POS
ruling NN
Politburo NNP
. .

Against IN
this DT
background NN
, ,
the DT
new JJ
East JJ
German JJ
leader NN
must MD
move VB
quickly RB
to TO
shore VB
up IN
his PRP$
government NN
's POS
standing VBG
. .

The DT
sudden JJ
growth NN
of IN
the DT
opposition NN
movement NN
, ,
together RB
with IN
the DT
steady JJ
outflow NN
of IN
citizens NNS
escaping VBG
through IN
Poland NNP
and CC
Hungary NNP
, ,
has VBZ
plunged VBN
the DT
country NN
into IN
its PRP$
deepest JJS
political JJ
crisis NN
since IN
an DT
anti-Soviet JJ
workers NNS
' POS
uprising NN
in IN
1953 CD
. .

`` ``
He PRP
does VBZ
n't RB
have VB
any DT
honeymoon NN
period NN
, ,
'' ''
says VBZ
a DT
Western JJ
diplomat NN
based VBN
in IN
East NNP
Berlin NNP
. .

`` ``
But CC
if IN
he PRP
's VBZ
sharp JJ
and CC
quick JJ
, ,
he PRP
has VBZ
a DT
chance NN
. .
'' ''

The DT
diplomat NN
adds VBZ
that IN
Mr. NNP
Krenz NNP
has VBZ
several JJ
things NNS
going VBG
for IN
him PRP
. .

The DT
East JJ
German JJ
economy NN
is VBZ
strong RB
compared VBN
with IN
other JJ
East NNP
bloc NN
nations NNS
. .

And CC
his PRP$
relative JJ
youth NN
could MD
help VB
him PRP
project VB
a DT
more RBR
vibrant JJ
image NN
, ,
contrasting VBG
with IN
the DT
perception NN
of IN
Mr. NNP
Honecker NNP
as IN
an DT
out-of-touch JJ
old JJ
man NN
. .

For IN
average JJ
East NNP
Germans NNPS
, ,
Mr. NNP
Krenz NNP
remains VBZ
a DT
puzzle NN
. .

`` ``
Either CC
he PRP
was VBD
n't RB
being VBG
real JJ
in IN
the DT
past NN
, ,
or CC
he PRP
is VBZ
n't RB
being VBG
real JJ
right RB
now RB
, ,
'' ''
says VBZ
a DT
30-year-old NNP
East JJ
German JJ
doctor NN
. .

`` ``
Either CC
way NN
, ,
I PRP
have VBP
a DT
problem NN
with IN
how WRB
quickly RB
he PRP
's VBZ
changed VBN
. .
'' ''

The DT
doctor NN
was VBD
among IN
dozens NNS
of IN
people NNS
milling NN
through IN
East NNP
Berlin NNP
's POS
Gethsemane NNP
Church NNP
Saturday NNP
morning NN
. .

The DT
walls NNS
of IN
the DT
church NN
are VBP
covered VBN
with IN
leaflets NNS
, ,
news NN
clippings NNS
, ,
and CC
handwritten JJ
notes NNS
associated VBN
with IN
the DT
country NN
's POS
political JJ
opposition NN
. .

`` ``
I PRP
have VBP
to TO
come VB
here RB
to TO
read VB
the DT
walls NNS
, ,
'' ''
says VBZ
the DT
doctor NN
, ,
`` ``
because IN
it PRP
's VBZ
information NN
I PRP
still RB
ca MD
n't RB
get VB
through IN
the DT
newspapers NNS
. .
'' ''

Meanwhile RB
, ,
East NNP
Germany NNP
's POS
growing VBG
openness NN
may MD
even RB
allow VB
the DT
state-controlled JJ
news NN
media NNS
to TO
display VB
a DT
muted VBN
sense NN
of IN
humor NN
. .

Television NNP
last JJ
week NN
carried VBD
a DT
new JJ
report NN
on IN
East NNP
Berlin NNP
's POS
main JJ
wallpaper NN
factory NN
and CC
the DT
need NN
to TO
boost VB
production NN
. .

East NNP
Germans NNPS
remember VBP
a DT
comment NN
a DT
few JJ
years NNS
ago RB
by IN
Kurt NNP
Hager NNP
, ,
the DT
government NN
's POS
top JJ
ideologist NN
, ,
that IN
just RB
because IN
a DT
neighbor NN
hangs VBZ
new JJ
wallpaper NN
, ,
there EX
's VBZ
no DT
reason NN
to TO
change VB
your PRP$
own JJ
. .
His PRP$
point NN
was VBD
there EX
is VBZ
no DT
reason NN
for IN
East NNP
Germany NNP
to TO
copy VB
Soviet-style JJ
changes NNS
. .

`` ``
It PRP
's VBZ
hard JJ
to TO
know VB
whether IN
it PRP
was VBD
intended VBN
to TO
be VB
funny JJ
, ,
'' ''
says VBZ
the DT
East NNP
Berlin NNP
shopkeeper NN
, ,
`` ``
But CC
everyone NN
I PRP
know VBP
laughed VBD
about IN
it PRP
. .

The DT
list NN
of IN
laboratories NNS
claiming VBG
to TO
be VB
producing VBG
inexplicable JJ
amounts NNS
of IN
heat NN
from IN
`` ``
cold JJ
fusion NN
'' ''
experiments NNS
is VBZ
slowly RB
growing VBG
. .

But CC
the DT
experiments NNS
continue VBP
to TO
be VB
plagued VBN
by IN
lack NN
of IN
firm NN
evidence NN
that IN
the DT
extra JJ
heat NN
is VBZ
coming VBG
from IN
the DT
fusing NN
of IN
hydrogen NN
atoms NNS
. .

New JJ
experiments NNS
at IN
some DT
of IN
the DT
big JJ
national JJ
laboratories NNS
are VBP
still RB
unable JJ
to TO
find VB
hints NNS
of IN
nuclear JJ
fusion NN
reactions NNS
, ,
leaving VBG
only RB
the DT
finding NN
of IN
tritium NN
in IN
a DT
Texas NNP
experiment NN
to TO
support VB
University NNP
of IN
Utah NNP
chemists NNS
' POS
claim NN
of IN
achieving VBG
hydrogen NN
fusion NN
at IN
room NN
temperatures NNS
. .

The DT
latest JJS
developments NNS
in IN
cold JJ
fusion NN
research NN
were VBD
presented VBN
in IN
24 CD
reports NNS
delivered VBN
at IN
the DT
fall NN
meeting NN
here RB
of IN
the DT
Electrochemical NNP
Society NNP
, ,
the DT
first JJ
scientific JJ
meeting NN
in IN
five CD
months NNS
to TO
hear VB
formal JJ
reports NNS
on IN
cold JJ
fusion NN
experiments NNS
. .

The DT
meeting NN
offered VBD
stark JJ
evidence NN
of IN
a DT
dramatic JJ
fall NN
in IN
scientific JJ
interest NN
in IN
cold JJ
fusion NN
research NN
. .

Of IN
the DT
1,300 CD
chemists NNS
registered VBN
for IN
the DT
society NN
's POS
weeklong JJ
meeting NN
, ,
fewer JJR
than IN
200 CD
sat VBD
through IN
the DT
day NN
and CC
a DT
half NN
of IN
cold JJ
fusion NN
presentations NNS
at IN
week NN
's POS
end NN
. .

This DT
was VBD
in IN
contrast NN
with IN
the DT
society NN
's POS
meeting NN
last JJ
May NNP
, ,
at IN
the DT
height NN
of IN
the DT
controversy NN
, ,
when WRB
more JJR
than IN
1,500 CD
scientists NNS
, ,
along IN
with IN
scores NNS
of IN
reporters NNS
and CC
TV NN
crews NNS
, ,
crowded VBN
into IN
a DT
Los NNP
Angeles NNP
hotel NN
ballroom NN
for IN
a DT
tumultuous JJ
special JJ
night NN
session NN
on IN
the DT
subject NN
. .

Neither CC
of IN
the DT
two CD
chemists NNS
whose WP$
Utah NNP
experiments NNS
triggered VBD
the DT
cold JJ
fusion NN
uproar NN
, ,
Martin NNP
Fleischmann NNP
and CC
B. NNP
Stanley NNP
Pons NNP
, ,
were VBD
at IN
the DT
meeting NN
. .

But CC
some DT
members NNS
of IN
an DT
ad NN
hoc FW
expert NN
committee NN
set VBN
up IN
by IN
the DT
Department NNP
of IN
Energy NNP
to TO
evaluate VB
the DT
cold JJ
fusion NN
research NN
were VBD
in IN
the DT
audience NN
. .

The DT
committee NN
is VBZ
to TO
recommend VB
at IN
the DT
end NN
of IN
the DT
month NN
whether IN
DOE NNP
should MD
support VB
cold JJ
fusion NN
research NN
. .

Most JJS
of IN
the DT
two CD
dozen NN
scientists NNS
taking VBG
the DT
podium NN
reported VBD
results NNS
with IN
new JJ
, ,
more RBR
sophisticated JJ
variations NNS
of IN
the DT
seemingly RB
simple JJ
electrolysis-of-water JJ
experiments NNS
described VBD
last JJ
March NNP
by IN
Messrs. NNP
Fleischmann NNP
and CC
Pons NNP
. .

The DT
experiments NNS
involve VBP
encircling VBG
a DT
thin JJ
rod NN
of IN
palladium NN
metal NN
with IN
a DT
wire NN
of IN
platinum NN
and CC
plunging VBG
the DT
two CD
electrodes NNS
into IN
`` ``
heavy JJ
'' ''
water NN
in IN
which WDT
the DT
hydrogen NN
atoms NNS
are VBP
a DT
doubly RB
heavy JJ
form NN
known VBN
as IN
deuterium NN
. .

When WRB
an DT
electric JJ
current NN
is VBZ
applied VBN
to TO
the DT
palladium NN
and CC
platinum NN
electrodes NNS
, ,
the DT
heavy JJ
water NN
did VBD
begin VB
to TO
break VB
up IN
, ,
or CC
dissociate VB
. .

Ordinarily RB
the DT
electrolysis NN
, ,
or CC
breakup NN
, ,
of IN
the DT
water NN
would MD
consume VB
almost RB
all DT
of IN
the DT
electrical JJ
energy NN
. .

But CC
Messrs. NNP
Fleischmann NNP
and CC
Pons NNP
said VBD
their PRP$
experiments NNS
also RB
produced VBN
large JJ
amounts NNS
of IN
heat NN
. .

The DT
heat NN
energy NN
plus CC
the DT
energy NN
consumed VBN
by IN
the DT
breakup NN
of IN
the DT
water NN
molecules NNS
added VBD
to TO
far RB
more JJR
energy NN
coming VBG
out IN
of IN
the DT
apparatus NN
than IN
electrical JJ
energy NN
going VBG
in IN
, ,
they PRP
reported VBD
. .

Because IN
they PRP
also RB
detected VBD
tritium NN
and CC
indications NNS
of IN
nuclear JJ
radiation NN
, ,
they PRP
asserted VBD
that IN
the DT
`` ``
excess JJ
'' ''
heat NN
energy NN
must MD
be VB
coming VBG
from IN
energy NN
released VBN
by IN
the DT
nuclear JJ
fusion NN
of IN
deuterium NN
atoms NNS
inside IN
the DT
palladium NN
rod NN
. .

As IN
of IN
last JJ
weekend NN
, ,
a DT
dozen NN
labs NNS
also RB
have VBP
reported VBN
measuring VBG
`` ``
excess JJ
'' ''
heat NN
from IN
similar JJ
electrolytic JJ
experiments NNS
, ,
although IN
amounts NNS
of IN
such JJ
heat NN
vary VBP
widely RB
. .

One CD
of IN
the DT
seven CD
reports NNS
presented VBN
here RB
of IN
excess JJ
heat NN
production NN
was VBD
given VBN
by IN
Richard NNP
A. NNP
Oriani NNP
, ,
professor NN
of IN
chemical NN
engineering NN
at IN
the DT
University NNP
of IN
Minnesota NNP
. .

Mr. NNP
Oriani NNP
said VBD
his PRP$
skepticism NN
of IN
the DT
Utah NNP
claims NNS
was VBD
initially RB
confirmed VBN
when WRB
his PRP$
first JJ
experiments NNS
last JJ
spring NN
failed VBD
to TO
produce VB
results NNS
. .

But CC
he PRP
then RB
borrowed VBD
a DT
palladium NN
rod NN
from IN
chemists NNS
at IN
Texas NNP
A&M NNP
who WP
said VBD
they PRP
were VBD
getting VBG
excess JJ
heat NN
. .

`` ``
The DT
results NNS
were VBD
fascinating JJ
, ,
'' ''
he PRP
said VBD
. .

On IN
the DT
fourth JJ
`` ``
run VB
'' ''
with IN
the DT
borrowed VBN
rod NN
, ,
the DT
experiment NN
began VBD
producing VBG
excess JJ
heat NN
. .

The DT
experiment NN
was VBD
stopped VBN
briefly NN
to TO
change VB
an DT
instrument NN
. .

When WRB
it PRP
was VBD
restarted VBN
, ,
heat NN
output NN
`` ``
really RB
took VBD
off IN
'' ''
and CC
produced VBN
excess JJ
heat NN
for IN
several JJ
hours NNS
before IN
dying VBG
down RB
, ,
he PRP
said VBD
. .

Typical JJ
of IN
other JJ
experiments NNS
, ,
Mr. NNP
Oriani NNP
said VBD
his PRP$
experiment NN
was VBD
`` ``
very RB
erratic JJ
. .
'' ''

It PRP
would MD
go VB
along IN
doing VBG
nothing NN
but CC
dissociating VBG
the DT
heavy JJ
water NN
and CC
then RB
at IN
totally RB
unpredictable JJ
times NNS
, ,
it PRP
would MD
begin VB
producing VBG
excess JJ
heat NN
for IN
as RB
long RB
as IN
10 CD
or CC
11 CD
hours NNS
before IN
quieting VBG
down RB
. .

The DT
excess JJ
heat NN
was VBD
15 CD
% NN
to TO
20 CD
% NN
more JJR
than IN
the DT
energy NN
involved VBN
in IN
the DT
electrolysis NN
of IN
water NN
. .

Mr. NNP
Oriani NNP
said VBD
the DT
heat NN
bursts NNS
were VBD
too RB
large JJ
and CC
too RB
long JJ
to TO
be VB
explained VBN
by IN
the DT
sudden JJ
release NN
of IN
energy NN
that WDT
might MD
have VB
slowly RB
accumulated VBN
during IN
the DT
experiments NNS
' POS
quiescent JJ
times NNS
, ,
as IN
some DT
scientists NNS
have VBP
suggested VBN
. .

`` ``
There EX
is VBZ
a DT
reality NN
to TO
the DT
excess JJ
energy NN
, ,
'' ''
he PRP
said VBD
. .

Other JJ
scientists NNS
said VBD
they PRP
also RB
were VBD
getting VBG
sporadic JJ
bursts NNS
of IN
excess JJ
heat NN
lasting VBG
several JJ
hours NNS
at IN
a DT
time NN
. .

The DT
bursts NNS
often RB
occur VBP
, ,
they PRP
said VBD
, ,
after IN
they PRP
`` ``
perturbed JJ
'' ''
the DT
experiments NNS
by IN
raising VBG
or CC
lowering VBG
the DT
amount NN
of IN
electric JJ
current JJ
being NN
applied VBN
, ,
or CC
switching VBG
the DT
current NN
off IN
and CC
on RB
. .

One CD
chemist NN
privately RB
suggested VBD
this DT
hinted VBD
that IN
some DT
`` ``
anomalous JJ
'' ''
chemical NN
reactions NNS
might MD
be VB
producing VBG
the DT
heat NN
. .

One CD
reason NN
questions NNS
surround VBP
the DT
heat NN
experiments NNS
is VBZ
that IN
they PRP
involve VBP
unusually RB
meticulous JJ
measurements NNS
. .

Typically RB
, ,
the DT
input NN
energy NN
ranges NNS
from IN
a DT
third JJ
of IN
a DT
watt NN
to TO
one CD
watt NN
and CC
the DT
excess JJ
energy NN
is VBZ
measured VBN
in IN
tenths NNS
of IN
a DT
watt NN
. .

One CD
exception NN
is VBZ
a DT
continuing VBG
experiment NN
at IN
Stanford NNP
University NNP
where WRB
as RB
much JJ
as IN
10 CD
watts NNS
of IN
energy NN
are VBP
being VBG
put VB
into IN
the DT
electrolytic JJ
cells NNS
. .

A DT
cell NN
filled VBN
with IN
heavy JJ
water NN
is VBZ
producing VBG
1.0 CD
to TO
1.5 CD
watts NNS
more JJR
heat NN
than IN
an DT
identical JJ
electrolytic JJ
cell NN
filled VBN
with IN
ordinary JJ
water NN
next JJ
to TO
it PRP
, ,
reported VBD
Turgut NNP
M. NNP
Gur NNP
, ,
an DT
associate NN
of IN
materials NNS
scientist NN
Robert NNP
A. NNP
Huggins NNP
, ,
head NN
of IN
the DT
Stanford NNP
experimental JJ
team NN
. .

One CD
of IN
the DT
few JJ
hints NNS
the DT
excess JJ
heat NN
might MD
be VB
produced VBN
by IN
fusion NN
came VBD
from IN
brief JJ
remarks NNS
by IN
chemist NN
John NNP
Bockris NNP
of IN
Texas NNP
A&M NNP
University NNP
. .

Mr. NNP
Bockris NNP
previously RB
reported VBD
getting VBG
bursts NNS
of IN
excess JJ
heat NN
and CC
of IN
detecting VBG
increasing VBG
amounts NNS
of IN
tritium NN
forming VBG
in IN
the DT
heavy JJ
water NN
. .

He PRP
said VBD
that IN
within IN
the DT
past JJ
few JJ
days NNS
, ,
he PRP
's VBZ
gotten VBN
evidence NN
that IN
there EX
is VBZ
a DT
`` ``
weak JJ
correlation NN
'' ''
between IN
the DT
time NN
the DT
heat NN
bursts NNS
occur VBP
and CC
the DT
production NN
of IN
tritium NN
. .

There EX
is VBZ
n't RB
any DT
way NN
to TO
continuously RB
measure VBP
the DT
amount NN
of IN
tritium NN
in IN
the DT
heavy JJ
water NN
, ,
so IN
it PRP
's VBZ
been VBN
difficult JJ
to TO
tell VB
whether IN
the DT
tritium NN
formation NN
is VBZ
related VBN
to TO
the DT
heat NN
bursts NNS
or CC
some DT
other JJ
phenomenon NN
. .

Increasingly RB
careful JJ
attempts NNS
to TO
measure VB
neutrons NNS
, ,
which WDT
would MD
be VB
strong JJ
evidence NN
of IN
fusion NN
reactions NNS
, ,
continue VB
to TO
be VB
negative JJ
. .

Messrs. NNP
Fleischmann NNP
and CC
Pons NNP
initially RB
reported VBD
indirect JJ
evidence NN
of IN
neutrons NNS
being VBG
produced VBN
in IN
their PRP$
experiment NN
but CC
later RB
conceded VBD
the DT
measurements NNS
were VBD
questionable JJ
. .

Researchers NNS
at IN
Sandia NNP
National NNP
Laboratories NNPS
in IN
Albuquerque NNP
, ,
N.M. NNP
, ,
reported VBD
they PRP
went VBD
so RB
far RB
as IN
to TO
take VB
a DT
`` ``
cold JJ
fusion NN
'' ''
experiment NN
and CC
three CD
neutron NN
detectors NNS
into IN
a DT
tunnel NN
under IN
300 CD
feet NNS
of IN
granite NN
to TO
shield VB
the DT
detectors NNS
from IN
cosmic JJ
rays NNS
. .

A DT
number NN
of IN
times NNS
they PRP
detected VBD
neutrons NNS
in IN
one CD
, ,
sometimes RB
two CD
, ,
of IN
the DT
three CD
detectors NNS
, ,
but CC
only RB
once RB
during IN
411 CD
hours NNS
of IN
the DT
experiment NN
did VBD
they PRP
detect VBP
a DT
neutron NN
burst NN
in IN
all DT
three CD
detectors NNS
-- :
and CC
they PRP
think VBP
that WDT
was VBD
a DT
spurious JJ
event NN
. .

Shimson NNP
Gottesfeld NNP
of IN
Los NNP
Alamos NNP
National NNP
Laboratory NNP
said VBD
researchers NNS
there EX
detected VBN
a DT
burst NN
of IN
neutrons NNS
from IN
an DT
early JJ
cold JJ
fusion NN
experiment NN
last JJ
April NNP
but CC
decided VBD
not RB
to TO
announce VB
it PRP
until IN
they PRP
could MD
confirm VB
it PRP
. .

In IN
subsequent JJ
experiments NNS
, ,
one CD
of IN
two CD
neutron NN
detectors NNS
occasionally RB
indicated VBD
a DT
burst NN
of IN
neutrons NNS
but CC
neutron NN
bursts NNS
were VBD
never RB
recorded VBN
in IN
both DT
detectors NNS
at IN
the DT
same JJ
time NN
. .

They PRP
concluded VBD
the DT
indications NNS
of IN
neutrons NNS
stemmed VBD
from IN
faults NNS
in IN
the DT
detectors NNS
rather RB
than IN
from IN
the DT
cold JJ
fusion NN
experiment NN
. .
At IN
the DT
Lawrence NNP
Berkeley NNP
Laboratory NNP
in IN
California NNP
, ,
new JJ
experiments NNS
indicated VBD
that IN
the DT
lithium NN
added VBD
to TO
the DT
heavy JJ
water NN
so IN
it PRP
will MD
conduct VB
a DT
current NN
can MD
produce VB
previously RB
unsuspected JJ
electrical JJ
effects NNS
on IN
the DT
surface NN
of IN
the DT
palladium NN
rod NN
-- :
which WDT
Messrs. NNP
Fleischmann NNP
and CC
Pons NNP
might MD
have VB
misinterpreted VBN
, ,
reported VBD
Philip NNP
Ross NNP
from IN
the DT
California NNP
laboratory NN
. .

Dow NNP
Jones NNP
& CC
Co. NNP
announced VBD
Wall NNP
Street NNP
Journal NNP
advertising NN
rates NNS
for IN
1990 CD
. .

The DT
rates NNS
, ,
which WDT
take VBP
effect NN
Jan. NNP
2 CD
, ,
include VBP
a DT
4 CD
% NN
increase NN
for IN
national JJ
edition NN
advertising NN
. .

The DT
Journal NNP
also RB
will MD
offer VB
expanded VBN
volume NN
and CC
frequency NN
discounts NNS
. .

The DT
increase NN
for IN
national JJ
edition NN
advertising NN
is VBZ
less JJR
than IN
the DT
inflation NN
rate NN
and CC
compares VBZ
with IN
a DT
6.5 CD
% NN
increase NN
in IN
1989 CD
. .

`` ``
Newsprint NN
and CC
postage NN
prices VBZ
this DT
year NN
have VBP
not RB
gone VBN
up IN
, ,
'' ''
said VBD
Peter NNP
R. NNP
Kann NNP
, ,
president NN
of IN
Dow NNP
Jones NNP
. .

`` ``
We PRP
have VBP
invested VBN
in IN
improved VBN
editorial NN
quality NN
and CC
expanded VBN
our PRP$
quality NN
audience NN
without IN
substantially RB
increasing VBG
our PRP$
costs NNS
. .

Fundamental JJ
fairness NN
and CC
a DT
sense NN
of IN
responsibility NN
lead NN
us PRP
to TO
share VB
operating VBG
efficiencies NNS
with IN
our PRP$
customers NNS
. .
'' ''

Advertising NN
rates NNS
for IN
the DT
Eastern NNP
, ,
Midwest NNP
, ,
Western JJ
and CC
Southwest NNP
editions NNS
will MD
increase VB
an DT
average JJ
5.5 CD
% NN
, ,
and CC
rates NNS
for IN
localized JJ
advertising NN
editions NNS
will MD
increase VB
7.5 CD
% NN
. .

Rates NNS
for IN
the DT
Wall NNP
Street NNP
Journal NNP
Reports NNS
will MD
remain VB
unchanged JJ
. .

A DT
one-time JJ
noncontract JJ
full-page JJ
advertisement NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
national JJ
edition NN
will MD
cost VB
$ $
99,385 CD
. .

Advertising NN
rates NNS
for IN
The DT
Wall NNP
Street NNP
Journal\/Europe NNP
, ,
published VBN
in IN
Brussels NNP
and CC
printed VBN
in IN
the DT
Netherlands NNP
and CC
Switzerland NNP
, ,
will MD
increase VB
9 CD
% NN
. .

Rates NNS
for IN
The DT
Asian NNP
Wall NNP
Street NNP
Journal NNP
, ,
published VBN
and CC
printed VBN
in IN
Hong NNP
Kong NNP
and CC
also RB
printed VBN
in IN
Singapore NNP
and CC
Tokyo NNP
, ,
will MD
rise VB
8 CD
% NN
. .

Rates NNS
for IN
The DT
Asian NNP
Wall NNP
Street NNP
Journal NNP
Weekly NNP
, ,
published VBN
in IN
New NNP
York NNP
for IN
North NNP
American JJ
readers NNS
, ,
will MD
rise VB
6 CD
% NN
. .

Dow NNP
Jones NNP
also RB
publishes VBZ
Barron NNP
's POS
magazine NN
, ,
other JJ
periodicals NNS
and CC
community NN
newspapers NNS
and CC
operates VBZ
electronic JJ
business NN
information NN
services NNS
. .

It PRP
owns VBZ
67 CD
% NN
of IN
Telerate NNP
Inc. NNP
, ,
a DT
leading VBG
supplier NN
of IN
computerized JJ
financial JJ
information NN
on IN
global JJ
markets NNS
. .

Reflecting VBG
the DT
impact NN
of IN
lower JJR
semiconductor NN
prices NNS
and CC
cuts NNS
in IN
defense NN
spending NN
, ,
Texas NNP
Instruments NNP
Inc. NNP
said VBD
third-quarter JJ
net JJ
income NN
fell VBD
31 CD
% NN
and CC
sales NNS
dropped VBD
slightly RB
from IN
a DT
year NN
earlier RBR
. .

Net NN
fell VBD
to TO
$ $
65 CD
million CD
, ,
or CC
67 CD
cents NNS
a DT
common JJ
share NN
, ,
from IN
$ $
93.7 CD
million CD
or CC
$ $
1.03 CD
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Sales NNS
fell VBD
2.5 CD
% NN
to TO
$ $
1.54 CD
billion CD
from IN
$ $
1.58 CD
billion CD
. .

For IN
the DT
nine CD
months NNS
, ,
the DT
electronics NNS
and CC
defense NN
concern NN
had VBD
net NN
of IN
$ $
255.8 CD
million CD
, ,
or CC
$ $
2.70 CD
a DT
share NN
, ,
down RB
5.6 CD
% NN
from IN
$ $
271 CD
million CD
, ,
or CC
$ $
3.01 CD
a DT
share NN
, ,
in IN
the DT
year-ago JJ
period NN
. .

Sales NNS
were VBD
$ $
4.66 CD
billion CD
, ,
up IN
1.3 CD
% NN
from IN
$ $
4.6 CD
billion CD
. .

Jerry NNP
Junkins NNP
, ,
chairman NN
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
, ,
said VBD
sluggish JJ
consumer-electronics NNS
sales NNS
reduced VBD
demand NN
for IN
semiconductors NNS
. .

That DT
, ,
coupled VBN
with IN
lower JJR
semiconductor NN
prices NNS
and CC
higher JJR
semiconductor-depreciation JJ
expense NN
, ,
contributed VBD
to TO
the DT
decline NN
in IN
sales NNS
and CC
profit NN
. .

In IN
addition NN
, ,
cost NN
increases NNS
related VBN
to TO
fixed-price JJ
defense NN
contracts NNS
and CC
a DT
$ $
10 CD
million CD
charge NN
to TO
reduce VB
the DT
work NN
force NN
of IN
Texas NNP
Instruments NNPS
' POS
defense-electronics NNS
division NN
also RB
reduced VBD
net JJ
. .

However RB
, ,
the DT
quarter NN
results NNS
included VBD
$ $
28 CD
million CD
in IN
royalty NN
income NN
from IN
patent NN
licenses NNS
, ,
up IN
from IN
$ $
21 CD
million CD
in IN
the DT
year-earlier JJ
period NN
. .

The DT
nine CD
months NNS
include VBP
$ $
125 CD
million CD
of IN
royalty NN
income NN
, ,
up IN
from IN
$ $
98 CD
million CD
last JJ
year NN
. .

Mr. NNP
Junkins NNP
was VBD
n't RB
optimistic JJ
about IN
the DT
short-term JJ
outlook NN
, ,
hinting VBG
that IN
further JJ
workforce NN
reductions NNS
may MD
be VB
needed VBN
. .

`` ``
We PRP
expect VBP
near-term JJ
sluggishness NN
in IN
the DT
electronics NNS
market NN
, ,
'' ''
he PRP
said VBD
, ,
`` ``
and CC
we PRP
will MD
take VB
ongoing JJ
cost-reduction JJ
actions NNS
as IN
necessary JJ
to TO
keep VB
operations NNS
aligned VBN
with IN
demand NN
. .
'' ''

Further RB
, ,
he PRP
said VBD
, ,
an DT
internal JJ
reorganization NN
to TO
combine VB
several JJ
divisions NNS
into IN
the DT
Information NNP
Technology NNP
Group NNP
is VBZ
expected VBN
to TO
affect VB
fourth-quarter JJ
results NNS
by IN
an DT
undisclosed JJ
amount NN
. .

Lynch NNP
Corp. NNP
said VBD
its PRP$
Lynch NNP
Telephone NNP
Corp. NNP
subsidiary NN
completed VBD
the DT
acquisition NN
of IN
Western NNP
New NNP
Mexico NNP
Telephone NNP
Co. NNP
for IN
$ $
20 CD
million CD
plus CC
assumption NN
of IN
$ $
24 CD
million CD
of IN
debt NN
. .

Western NNP
New NNP
Mexico NNP
Telephone NNP
, ,
Silver NNP
City NNP
, ,
had VBD
net JJ
income NN
of IN
$ $
1.9 CD
million CD
on IN
revenue NN
of IN
about RB
$ $
10 CD
million CD
last JJ
year NN
. .

It PRP
is VBZ
an DT
independent JJ
phone NN
company NN
with IN
a DT
service NN
area NN
of IN
15,000 CD
square NN
miles NNS
in IN
southwest RB
New NNP
Mexico NNP
. .

It PRP
is VBZ
also RB
a DT
partner NN
in IN
the DT
wireline JJ
cellular JJ
franchise NN
covering VBG
most RBS
of IN
western JJ
New NNP
Mexico NNP
. .

The DT
transaction NN
represents VBZ
Lynch NNP
's POS
entry NN
into IN
the DT
telephone NN
business NN
. .

The DT
company NN
, ,
which WDT
has VBZ
interests NNS
in IN
television NN
, ,
trucking NN
services NNS
, ,
and CC
glass-making NN
and CC
food-processing NN
equipment NN
, ,
said VBD
it PRP
plans VBZ
to TO
make VB
other JJ
acquisitions NNS
in IN
the DT
telephone NN
industry NN
. .

Nelson NNP
Bunker NNP
Hunt NNP
's POS
attempted VBD
corner NN
on IN
silver NN
a DT
decade NN
ago RB
is VBZ
still RB
haunting JJ
the DT
market NN
in IN
this DT
metal NN
. .

Silver NN
, ,
now JJ
trading NN
around IN
$ $
5 VBG
an DT
ounce NN
, ,
surged VBD
to TO
an DT
all-time JJ
peak NN
of IN
$ $
50 CD
an DT
ounce NN
in IN
January NNP
1980 CD
from IN
around IN
$ $
9 CD
in IN
mid-1979 NN
. .

`` ``
Mr. NNP
Hunt NNP
's POS
attempt NN
to TO
squeeze VB
the DT
silver NN
market NN
10 CD
years NNS
ago RB
is VBZ
still RB
indirectly RB
to TO
blame VB
for IN
today NN
's POS
market NN
depression NN
, ,
'' ''
says VBZ
Lesley NNP
Edgar NNP
, ,
managing VBG
director NN
of IN
Sharps NNP
Pixley NNP
Ltd. NNP
, ,
London NNP
bullion NN
brokers NNS
. .

While IN
some DT
100 CD
million CD
ounces NNS
of IN
silver NN
once RB
held VBD
by IN
Mr. NNP
Hunt NNP
and CC
Middle NNP
Eastern NNP
associates NNS
are VBP
n't RB
hanging VBG
over IN
the DT
market NN
anymore RB
, ,
the DT
price NN
surge NN
of IN
1979-80 CD
precipitated VBD
an DT
expansion NN
of IN
mine NN
production NN
and CC
scrap NN
recovery NN
and CC
encouraged VBN
silver NN
consumers NNS
to TO
economize VB
on IN
silver NN
use NN
, ,
Mr. NNP
Edgar NNP
says VBZ
. .

Photographic JJ
developers NNS
, ,
for IN
example NN
, ,
bought VBD
equipment NN
to TO
recover VB
silver NN
from IN
spent VBN
photographs NNS
, ,
negatives NNS
and CC
processing NN
solutions NNS
. .

Meanwhile RB
, ,
the DT
photographic JJ
industry NN
, ,
which WDT
accounts VBZ
for IN
44 CD
% NN
of IN
silver NN
consumption NN
, ,
continues VBZ
to TO
look VB
for IN
substitutes NNS
. .

Japanese JJ
and CC
U.S. NNP
photographic JJ
firms NNS
are VBP
beginning VBG
to TO
produce VB
electronic JJ
cameras NNS
and CC
X-rays NNS
that WDT
do VBP
n't RB
require VB
silver NN
, ,
dealers NNS
say VBP
. .

Silver NN
's POS
history NN
of IN
volatility NN
is VBZ
also RB
discouraging VBG
investors NNS
, ,
dealers NNS
say VBP
. .

Even RB
in IN
the DT
present JJ
uncertain JJ
investment NN
climate NN
, ,
investors NNS
are VBP
preferring VBG
`` ``
quality NN
assets NNS
'' ''
such JJ
as IN
Treasury NNP
bills NNS
and CC
bonds NNS
to TO
gold NN
, ,
silver NN
and CC
platinum NN
, ,
dealers NNS
say VBP
. .

Although IN
prices NNS
rallied VBD
briefly NN
following VBG
the DT
tumble NN
on IN
world NN
stock NN
markets NNS
earlier RBR
this DT
month NN
and CC
the DT
related VBN
decline NN
of IN
the DT
dollar NN
, ,
precious JJ
metals NNS
are VBP
out IN
of IN
favor NN
for IN
the DT
moment NN
because IN
of IN
high JJ
interest NN
rates NNS
and CC
a DT
determination NN
by IN
industrial JJ
nations NNS
to TO
curb VB
inflation NN
, ,
dealers NNS
say VBP
. .

Silver NN
, ,
however RB
is VBZ
in IN
a DT
deeper JJR
slump NN
than IN
are VBP
gold NN
and CC
platinum NN
. .

Some DT
analysts NNS
contend VBP
that DT
silver NN
is VBZ
cheap JJ
now RB
that IN
prices NNS
are VBP
languishing VBG
at IN
levels NNS
last RB
seen VBN
in IN
the DT
mid-1970s NNS
. .

`` ``
Bargain NN
hunters NNS
believe VBP
that DT
silver NN
offers VBZ
the DT
best JJS
value NN
amongst IN
precious JJ
metals NNS
, ,
'' ''
says VBZ
Frederick NNP
R. NNP
Demler NNP
, ,
analyst NN
at IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc NNP
. .

A DT
further JJ
decline NN
in IN
prices NNS
will MD
lead VB
to TO
mine VB
production NN
cuts NNS
in IN
the DT
U.S. NNP
, ,
he PRP
says VBZ
. .

Scrap NN
merchants NNS
are VBP
converting VBG
smaller JJR
quantities NNS
of IN
metal NN
into IN
silver NN
, ,
while IN
low JJ
prices NNS
are VBP
discouraging VBG
exports NNS
from IN
India NNP
and CC
the DT
Soviet NNP
Union NNP
. .

Silver JJ
prices NNS
could MD
also RB
be VB
boosted VBN
by IN
strikes NNS
in IN
leading VBG
producing VBG
nations NNS
Peru NNP
and CC
Mexico NNP
, ,
Mr. NNP
Demler NNP
says VBZ
. .

Meanwhile RB
, ,
total JJ
fabrication NN
demand NN
for IN
silver NN
has VBZ
risen VBN
six CD
years NNS
in IN
a DT
row NN
, ,
he PRP
says VBZ
. .

Japanese JJ
demand NN
grew VBN
by IN
70 CD
% NN
in IN
the DT
first JJ
half NN
of IN
this DT
year NN
and CC
the DT
nation NN
plans VBZ
an DT
issue NN
of IN
a DT
silver NN
commemorative JJ
coin NN
that WDT
will MD
require VB
4.5 CD
million CD
ounces NNS
. .

Compared VBN
with IN
huge JJ
annual JJ
surpluses NNS
of IN
more JJR
than IN
100 CD
million CD
ounces NNS
in IN
the DT
first JJ
half NN
of IN
the DT
1980s CD
, ,
world NN
silver NN
supplies NNS
and CC
consumption NN
are VBP
now RB
nearly RB
in IN
balance NN
, ,
Mr. NNP
Demler NNP
says VBZ
. .

Despite IN
intermittent JJ
rallies NNS
in IN
the DT
past JJ
few JJ
years NNS
, ,
improvements NNS
in IN
the DT
supply-demand JJ
balance NN
have VBP
n't RB
managed VBN
to TO
push VB
silver NN
prices NNS
into IN
a DT
higher JJR
range NN
. .

`` ``
There EX
's VBZ
just RB
too RB
much JJ
silver NN
around IN
, ,
'' ''
says VBZ
Tom NNP
Butler NNP
, ,
an DT
analyst NN
at IN
Samuel NNP
Montagu NNP
& CC
Co. NNP
, ,
a DT
London NNP
bullion NN
house NN
. .

A DT
huge JJ
silver NN
stockpile NN
at IN
exchanges NNS
, ,
refiners NNS
, ,
consuming VBG
industries NNS
and CC
government NN
warehouses NNS
of IN
at IN
least JJS
617 CD
million CD
ounces NNS
is VBZ
the DT
market NN
depressant NN
, ,
says VBZ
Shearson NNP
Lehman NNP
Hutton NNP
Inc. NNP
in IN
a DT
report NN
. .

This DT
year NN
alone RB
, ,
inventories NNS
at IN
the DT
Commodity NNP
Exchange NNP
of IN
New NNP
York NNP
jumped VBD
`` ``
by IN
a DT
staggering JJ
46 CD
million CD
to TO
221 CD
million CD
ounces NNS
'' ''
because IN
of IN
producer NN
deliveries NNS
, ,
de-stocking NN
by IN
fabricators NNS
and CC
sales NNS
by IN
disenchanted JJ
investors NNS
, ,
says VBZ
Rhona NNP
O'Connell NNP
, ,
London-based JJ
precious JJ
metals NNS
analyst NN
at IN
Shearson NNP
Lehman NNP
Hutton NNP
. .

`` ``
Silver NN
production NN
is VBZ
also RB
in IN
an DT
inexorable JJ
upward JJ
trend NN
, ,
'' ''
Ms. NNP
O'Connell NNP
says VBZ
. .

Moreover RB
, ,
while IN
Asian JJ
and CC
Middle NNP
Eastern NNP
investors NNS
hoard VBP
gold NN
and CC
help VB
underpin VB
its PRP$
price NN
, ,
silver NN
does VBZ
n't RB
have VB
the DT
same JJ
mystique NN
, ,
dealers NNS
say VBP
. .

Investors NNS
have VBP
gotten VBN
burned VBN
on IN
silver NN
so RB
often RB
that IN
they PRP
are VBP
far RB
more RBR
partial JJ
to TO
gold NN
, ,
says VBZ
Urs NNP
Seiler NNP
, ,
senior JJ
vice NN
president NN
at IN
Union NNP
Bank NNP
of IN
Switzerland NNP
. .

Yet RB
if IN
gold NN
prices NNS
improve VBP
, ,
silver NN
prices NNS
could MD
rally VB
sharply RB
, ,
he PRP
says VBZ
. .

However RB
, ,
dealers NNS
caution VBP
that IN
any DT
increase NN
would MD
be VB
$ $
1 CD
to TO
$ $
2 CD
at IN
most RBS
. .

Looking VBG
ahead RB
to TO
other JJ
commodity NN
markets VBZ
this DT
week NN
: :

Livestock NN
and CC
Meats NNS

Analysts NNS
expect VBP
the DT
prices NNS
of IN
live VB
cattle NNS
futures NNS
contracts NNS
to TO
rise VB
in IN
trading NN
today NN
in IN
the DT
wake NN
of IN
a DT
government NN
quarterly JJ
census NN
that WDT
found VBD
fewer-than-expected JJ
cattle NNS
on IN
feedlots NNS
. .

After IN
the DT
close NN
of IN
trading NN
Friday NNP
, ,
the DT
Agriculture NNP
Department NNP
reported VBD
that IN
feedlots NNS
in IN
the DT
13 CD
biggest JJS
ranch NN
states NNS
held VBN
8.06 CD
million CD
cattle NNS
on IN
Oct. NNP
1 CD
, ,
down RB
6 CD
% NN
from IN
that DT
date NN
a DT
year NN
earlier RBR
. .

Most JJS
analysts NNS
had VBD
expected VBN
the DT
government NN
to TO
report VB
a DT
4 CD
% NN
decline NN
. .

Feedlots NNS
fatten VBP
young JJ
cattle NNS
for IN
slaughter NN
, ,
so RB
a DT
decline NN
signals VBZ
a DT
tightening VBG
supply NN
of IN
beef NN
. .

The DT
government NN
reported VBD
that IN
the DT
number NN
of IN
young JJ
cattle NNS
placed VBN
on IN
feedlots NNS
during IN
the DT
quarter NN
dropped VBD
5 NN
% NN
compared VBN
with IN
the DT
year-earlier JJ
quarter NN
. .

Many JJ
industry NN
analysts NNS
had VBD
been VBN
projecting VBG
a DT
3 CD
% NN
decline NN
in IN
placements NNS
for IN
the DT
quarter NN
. .

In IN
the DT
1988 CD
quarter NN
, ,
many JJ
farmers NNS
were VBD
forced VBN
to TO
sell VB
their PRP$
cattle NNS
to TO
feedlot NN
operators NNS
because IN
the DT
drought NN
dried VBD
out RP
the IN
pasture NN
on IN
their PRP$
ranches NNS
. .

The DT
number NN
of IN
cattle NNS
moving VBG
onto IN
feedlots NNS
in IN
the DT
recent JJ
quarter NN
was VBD
also RB
lower JJR
because IN
fattening VBG
cattle NNS
is VBZ
less RBR
profitable JJ
. .

A DT
shortage NN
of IN
young JJ
cattle NNS
has VBZ
made VBN
them PRP
more RBR
expensive JJ
for IN
feedlot NN
operators NNS
to TO
buy VB
. .

The DT
Agriculture NNP
Department NNP
also RB
said VBD
that IN
the DT
number NN
of IN
fattened VBN
cattle NNS
slaughtered VBN
in IN
the DT
quarter NN
dropped VBN
by IN
5 NN
% NN
from IN
the DT
1988 CD
quarter NN
, ,
which WDT
was VBD
in IN
line NN
with IN
projections NNS
by IN
analysts NNS
. .

Energy NNP

Friday NNP
's POS
44-cent-a-barrel JJ
price NN
drop NN
to TO
$ $
19.98 CD
in IN
the DT
expiring VBG
November NNP
contract NN
for IN
West NNP
Texas NNP
Intermediate NNP
crude NN
may MD
well RB
set VBN
the DT
tone NN
for IN
trading VBG
this DT
week NN
in IN
petroleum NN
futures NNS
on IN
the DT
New NNP
York NNP
Mercantile NNP
Exchange NNP
. .

Most JJS
traders NNS
and CC
analysts NNS
attributed VBD
the DT
decline NN
to TO
technical JJ
factors NNS
associated VBN
with IN
the DT
contract NN
's POS
going VBG
off IN
the DT
board NN
. .

Others NNS
said VBD
that IN
the DT
drop NN
continued VBD
the DT
downward JJ
correction NN
that WDT
's VBZ
been VBN
due JJ
in IN
the DT
petroleum NN
pits NNS
and CC
that IN
such JJ
a DT
trend NN
could MD
well RB
continue VB
in IN
the DT
next JJ
several JJ
trading NN
sessions NNS
. .

Barring VBG
any DT
petroleum-related JJ
news NN
events NNS
, ,
trading NN
in IN
the DT
days NNS
ahead RB
should MD
further VB
test NN
recent JJ
projections NNS
by IN
oil NN
economists NNS
and CC
other JJ
market NN
watchers NNS
that IN
strong JJ
fourth-quarter JJ
demand NN
will MD
keep VB
prices NNS
firm NN
. .

Copper NN

Copper NN
prices NNS
fell VBD
sharply RB
Friday NNP
afternoon NN
. .

For IN
example NN
, ,
copper NN
for IN
December NNP
delivery NN
settled VBD
4.5 CD
cents NNS
lower JJR
at IN
$ $
1.2345 CD
a DT
pound NN
. .

Pressure NN
came VBD
from IN
several JJ
developments NNS
including VBG
the DT
settlement NN
of IN
two CD
long-term JJ
strikes NNS
. .

On IN
Friday NNP
, ,
one CD
analyst NN
said VBD
, ,
rank-and-file JJ
workers NNS
ratified VBD
a DT
new JJ
labor NN
agreement NN
ending VBG
a DT
three-month JJ
strike NN
at IN
the DT
Highland NNP
Valley NNP
mine NN
in IN
British NNP
Columbia NNP
. .

In IN
Mexico NNP
, ,
the DT
analyst NN
added VBD
, ,
employees VBZ
at IN
the DT
Cananea NNP
mine NN
, ,
who WP
have VBP
been VBN
out IN
of IN
work NN
since IN
late JJ
August NNP
when WRB
the DT
mine NN
was VBD
declared VBN
bankrupt JJ
by IN
the DT
government NN
, ,
accepted VBD
a DT
35 CD
% NN
cut NN
in IN
the DT
3,800-man JJ
work NN
force NN
. .

The DT
mine NN
is VBZ
expected VBN
to TO
return VB
to TO
production NN
in IN
about IN
a DT
week NN
. .

On IN
Friday NNP
, ,
selling VBG
dominated VBN
the DT
afternoon NN
`` ``
curb VB
'' ''
session NN
in IN
London NNP
, ,
which WDT
takes VBZ
place NN
at IN
noon NN
EDT NNP
. .

The DT
premium NN
of IN
cash NN
copper NN
to TO
the DT
three-month JJ
forward JJ
offerings NNS
narrowed VBD
, ,
indicating VBG
weaker JJR
demand NN
for IN
cash NN
copper NN
. .

Long-term JJ
support NN
for IN
the DT
December NNP
contract NN
was VBD
believed VBN
to TO
be VB
at IN
$ $
1.25 CD
a DT
pound NN
. .

A DT
technical JJ
analyst NN
said VBD
there EX
were VBD
a DT
number NN
of IN
stop-loss NN
orders NNS
under IN
that DT
level NN
that WDT
were VBD
touched VBN
off IN
when WRB
the DT
contract NN
's POS
price NN
fell VBD
below IN
it PRP
. .

That DT
brought VBN
in IN
considerable JJ
fund NN
selling VBG
, ,
which WDT
continued VBD
until IN
the DT
close NN
of IN
trading NN
. .

`` ``
In IN
general JJ
, ,
it PRP
was VBD
a DT
bearish JJ
close NN
, ,
'' ''
said VBD
Ben NNP
Hanauer NNP
, ,
a DT
copper NN
trader NN
at IN
Rudolph NNP
Wolff NNP
& CC
Co. NNP
, ,
a DT
major JJ
commodities NNS
trading NN
and CC
brokerage NN
firm NN
. .

But CC
whether IN
this DT
price NN
break NN
has VBZ
implications NNS
for IN
this DT
week NN
, ,
he PRP
said VBD
, ,
`` ``
we PRP
will MD
know VB
more JJR
when WRB
the DT
London NNP
Metal NNP
Exchange NNP
copper NN
stock NN
levels NNS
are VBP
released VBN
Monday NNP
morning NN
. .
'' ''
Another DT
analyst NN
said VBD
he PRP
expected VBD
LME NNP
inventories NNS
to TO
be VB
down RB
by IN
about IN
15,000 CD
tons NNS
when WRB
the DT
weekly JJ
report NN
is VBZ
issued VBN
. .

Bernard NNP
Savaiko NNP
, ,
senior JJ
commodities NNS
analyst NN
at IN
PaineWebber NNP
Inc. NNP
, ,
said VBD
that IN
when WRB
traders NNS
saw VBD
the DT
market NN
was VBD
n't RB
reacting VBG
positively RB
to TO
the DT
forecasts NNS
of IN
lower JJR
LME NNP
stocks NNS
, ,
they PRP
perceived VBD
a DT
bearish JJ
sign NN
. .

He PRP
also RB
noted VBD
that IN
the DT
Japanese NN
, ,
who WP
had VBD
been VBN
buying VBG
at IN
prices NNS
just RB
above IN
the DT
$ $
1.25 CD
level NN
, ,
apparently RB
pulled VBD
back RB
from IN
the DT
market NN
on IN
Friday NNP
. .

Mr. NNP
Savaiko NNP
said VBD
he PRP
sees VBZ
a DT
possibility NN
of IN
the DT
December NNP
contract NN
dropping VBG
to TO
$ $
1.05 CD
a DT
pound NN
. .

Hewlett-Packard NNP
Co. NNP
will MD
announce VB
today NN
a DT
software NN
program NN
that WDT
allows VBZ
computers NNS
in IN
a DT
network NN
to TO
speed VB
up IN
computing VBG
tasks NNS
by IN
sending VBG
the DT
tasks NNS
to TO
each DT
other NN
. .

Called VBN
Task NNP
Broker NNP
, ,
the DT
program NN
acts NNS
something NN
like IN
an DT
auctioneer NN
among IN
a DT
group NN
of IN
computers NNS
wired VBN
together RB
. .

If IN
a DT
machine NN
has VBZ
a DT
big JJ
computing NN
task NN
, ,
Task NNP
Broker NNP
asks VBZ
other JJ
computers NNS
in IN
the DT
network NN
for IN
`` ``
bids NNS
'' ''
on IN
the DT
job NN
. .

It PRP
then RB
determines VBZ
which WDT
machine NN
is VBZ
free JJ
to TO
do VB
the DT
task NN
most RBS
quickly RB
and CC
sends VBZ
the DT
task NN
to TO
that DT
machine NN
. .

Hewlett-Packard NNP
claims NNS
that IN
the DT
software NN
allows VBZ
a DT
network NN
to TO
run VB
three CD
times NNS
as IN
many JJ
tasks NNS
as IN
conventional JJ
networks NNS
and CC
will MD
run VB
each DT
task NN
twice RB
as IN
fast RB
. .

The DT
new JJ
Hewlett-Packard NNP
program NN
, ,
said VBD
analyst NN
John NNP
McCarthy NNP
at IN
Forrester NNP
Research NNP
Inc. NNP
, ,
a DT
computer-market JJ
research NN
company NN
, ,
`` ``
is VBZ
a DT
key JJ
building NN
block NN
as IN
people NNS
move VBP
to TO
this DT
new JJ
model NN
of IN
distributed VBN
processing NN
. .
'' ''

In IN
today NN
's POS
computer NN
networks NNS
, ,
some DT
machines NNS
often RB
sit VBP
idle JJ
while IN
others NNS
are VBP
overtaxed JJ
. .

With IN
the DT
Hewlett-Packard NNP
program NN
, ,
he PRP
said VBD
, ,
`` ``
You PRP
get VBP
more JJR
bang NN
for IN
the DT
buck NN
you PRP
've VBP
spent VBD
on IN
computers NNS
. .
'' ''

The DT
program NN
, ,
which WDT
will MD
be VB
shipped VBN
in IN
January NNP
1990 CD
, ,
runs VBZ
on IN
the DT
Unix NNP
operating VBG
system NN
. .

Hewlett-Packard NNP
will MD
charge VB
$ $
5,000 CD
for IN
a DT
license NN
covering VBG
10 CD
users NNS
. .

The DT
program NN
now RB
works VBZ
on IN
all DT
Hewlett-Packard NNP
and CC
Apollo NNP
workstations NNS
and CC
on IN
computers NNS
made VBN
by IN
Multiflow NNP
Computer NNP
Inc. NNP
of IN
Branford NNP
, ,
Conn NNP
. .

Hewlett-Packard NNP
said VBD
it PRP
will MD
sell VB
versions NNS
later RB
next JJ
year NN
that WDT
run VBP
on IN
Sun NNP
Microsystems NNP
Inc. NNP
and CC
Digital NNP
Equipment NNP
Corp. NNP
machines NNS
. .

The DT
Task NNP
Broker NNP
differs VBZ
from IN
other JJ
programs NNS
that WDT
spread VBP
computing VBG
tasks NNS
around IN
a DT
network NN
. .

A DT
previously RB
available JJ
program NN
called VBN
Network NNP
Computing VBG
System NNP
, ,
developed VBN
by IN
Hewlett-Packard NNP
's POS
Apollo NNP
division NN
, ,
for IN
instance NN
, ,
takes VBZ
a DT
task NN
and CC
splits NNS
it PRP
up IN
into IN
parts NNS
, ,
divvying VBG
up IN
those DT
parts NNS
to TO
several JJ
computers NNS
in IN
a DT
network NN
for IN
simultaneous JJ
processing NN
. .

But CC
programs NNS
in IN
individual JJ
computers NNS
must MD
be VB
revised VBN
in IN
order NN
to TO
work VB
with IN
that DT
system NN
. .

Applications NNS
wo MD
n't RB
have VB
to TO
be VB
rewritten VBN
to TO
work VB
with IN
Task NNP
Broker NNP
, ,
Hewlett-Packard NNP
said VBD
, ,
and CC
the DT
user NN
of IN
a DT
computer NN
wo MD
n't RB
be VB
able JJ
to TO
tell VB
that IN
another DT
machine NN
is VBZ
doing VBG
the DT
work NN
. .

The DT
Task NNP
Broker NNP
`` ``
turns VBZ
that DT
network NN
into IN
-- :
as RB
far RB
as IN
the DT
user NN
is VBZ
concerned VBN
-- :
one CD
giant NN
computer NN
, ,
'' ''
said VBD
Bill NNP
Kay NNP
, ,
general JJ
manager NN
of IN
Hewlett-Packard NNP
's POS
workstation NN
group NN
. .

Price NN
wars NNS
between IN
the DT
fast-food NN
giants NNS
are VBP
starting VBG
to TO
clobber VB
the DT
fast-food NN
little JJ
guys NNS
: :
the DT
franchisees NNS
. .

`` ``
When WRB
elephants NNS
start VBP
fighting VBG
, ,
ants NNS
get VBP
killed VBN
, ,
'' ''
says VBZ
Murray NNP
Riese NNP
, ,
co-owner NN
of IN
National NNP
Restaurants NNP
, ,
a DT
New NNP
York NNP
franchisee NN
for IN
Pizza NNP
Hut NNP
, ,
Roy NNP
Rogers NNP
and CC
other JJ
chains NNS
. .
As IN
hamburger NN
and CC
pizza NN
outlets NNS
saturate VB
one CD
area NN
after IN
another DT
, ,
franchisers NNS
are VBP
struggling VBG
desperately RB
for IN
market NN
share NN
, ,
slashing VBG
prices NNS
and CC
stepping VBG
up IN
costly JJ
promotions NNS
. .

The DT
fight NN
is VBZ
putting VBG
a DT
tight JJ
squeeze NN
on IN
profits NNS
of IN
many JJ
, ,
threatening VBG
to TO
drive VB
the DT
smallest JJS
ones NNS
out IN
of IN
business NN
and CC
straining VBG
relations NNS
between IN
the DT
national JJ
fast-food NN
chains NNS
and CC
their PRP$
franchisees NNS
. .

The DT
chains NNS
`` ``
used VBN
to TO
offer VB
discounts NNS
during IN
winter NN
when WRB
business NN
was VBD
slow JJ
, ,
but CC
in IN
the DT
last JJ
year NN
or CC
so RB
, ,
discounting NN
has VBZ
become VBN
a DT
12-month JJ
thing NN
, ,
'' ''
says VBZ
Donald NNP
Harty NNP
, ,
president NN
of IN
Charisma NNP
Group NNP
Inc. NNP
, ,
a DT
New NNP
York NNP
franchisee NN
of IN
Grand NNP
Metropolitan NNP
PLC NNP
's POS
Burger NNP
King NNP
chain NN
. .

Though IN
Charisma NNP
's POS
sales NNS
are VBP
up IN
slightly RB
this DT
year NN
, ,
Mr. NNP
Harty NNP
says VBZ
profits NNS
will MD
be VB
flat JJ
or CC
lower JJR
. .

And CC
Bill NNP
Konopnicki NNP
, ,
a DT
Safford NNP
, ,
Ariz. NNP
, ,
licensee NN
of IN
McDonald NNP
's POS
Corp. NNP
who WP
is VBZ
chairman NN
of IN
the DT
company NN
's POS
National NNP
Operators NNP
Advisory NNP
Board NNP
, ,
says VBZ
some DT
fast-food NN
outlets NNS
`` ``
could MD
be VB
in IN
serious JJ
trouble NN
, ,
based VBN
on IN
the DT
amount NN
of IN
discounting NN
that WDT
seems VBZ
to TO
be VB
going VBG
on IN
. .
'' ''

Until IN
recently RB
, ,
the DT
huge JJ
fast-food NN
industry NN
, ,
with IN
sales NNS
of IN
about RB
$ $
60.1 CD
billion CD
last JJ
year NN
, ,
kept VBD
price-skirmishing JJ
to TO
a DT
minimum NN
. .

But CC
early JJ
this DT
year NN
, ,
PepsiCo NNP
Inc. NNP
's POS
Taco NNP
Bell NNP
unit NN
and CC
Wendy NNP
's POS
International NNP
Inc. NNP
slashed VBD
prices NNS
and CC
stepped VBD
up IN
promotions NNS
, ,
says VBZ
John NNP
Rohs NNP
, ,
an DT
analyst NN
for IN
Wertheim NNP
Schroder NNP
& CC
Co NNP
. .

That DT
brought VBN
a DT
chain NN
reaction NN
in IN
the DT
industry NN
. .

The DT
situation NN
was VBD
further RB
aggravated VBN
early JJ
this DT
month NN
, ,
when WRB
McDonald NNP
's POS
set VBN
plans NNS
to TO
heat VB
up IN
the DT
discounting NN
by IN
offering NN
coupons NNS
. .

It PRP
also RB
decided VBD
to TO
go VB
national JJ
with IN
pizza NN
, ,
which WDT
it PRP
has VBZ
been VBN
test-marketing VBG
. .

Now RB
, ,
two-for-one JJ
deals NNS
on IN
pizza NN
are VBP
common JJ
; :
so RB
are VBP
99-cent JJ
specials NNS
on IN
sandwiches NNS
normally RB
priced VBN
twice RB
as IN
high NN
. .

The DT
discounting NN
, ,
say VBP
fast-food NN
operators NNS
, ,
occurs VBZ
on IN
a DT
scale NN
and CC
with IN
a DT
frequency NN
they PRP
have VBP
n't RB
seen VBN
before RB
. .

The DT
result NN
is VBZ
that IN
some DT
franchisees NNS
are VBP
running VBG
hard JJ
just RB
to TO
stay VB
even RB
, ,
laying VBG
off IN
middle NN
managers NNS
and CC
working VBG
harder JJR
to TO
make VB
less JJR
. .

Joe NNP
Mack NNP
, ,
a DT
district NN
manager NN
for IN
Cormack NNP
Enterprises NNPS
Inc. NNP
, ,
a DT
Burger NNP
King NNP
operator NN
in IN
Omaha NNP
, ,
Neb. NNP
, ,
says VBZ
discounting NN
is VBZ
so RB
prevalent JJ
that IN
`` ``
we PRP
have VBP
to TO
serve VB
15 CD
% NN
to TO
20 CD
% NN
more JJR
customers NNS
'' ''
to TO
keep VB
sales NNS
level VB
. .

`` ``
It PRP
's VBZ
almost RB
as IN
if IN
you PRP
're VBP
doing VBG
extra JJ
work NN
to TO
give VB
away RB
the DT
food NN
, ,
'' ''
he PRP
says VBZ
. .

Alan NNP
D'Agosto NNP
, ,
president NN
of IN
Panda NNP
's POS
Inc. NNP
, ,
an DT
operator NN
of IN
Arby NNP
's POS
restaurants NNS
in IN
Omaha NNP
, ,
says VBZ
: :
`` ``
All DT
we PRP
're VBP
doing VBG
is VBZ
keeping VBG
the DT
customers NNS
coming VBG
, ,
but CC
we PRP
are VBP
n't RB
increasing VBG
sales NNS
. .
'' ''

With IN
fast-food NN
outlets NNS
on IN
every DT
corner NN
, ,
he PRP
, ,
like IN
many JJ
, ,
does VBZ
n't RB
think VB
he PRP
has VBZ
a DT
choice NN
in IN
the DT
price NN
war NN
: :
`` ``
Our PRP$
customers NNS
say VBP
that IN
they PRP
wo MD
n't RB
go VB
into IN
a DT
fast-food NN
store NN
unless IN
they PRP
get VBP
a DT
coupon NN
. .
'' ''

If IN
the DT
battle NN
continues VBZ
much JJ
longer RB
, ,
many JJ
fast-food NN
businesses NNS
will MD
close VB
or CC
merge VB
, ,
predicts VBZ
Vincent NNP
Morrissey NNP
, ,
who WP
owns VBZ
a DT
string NN
of IN
Kentucky NNP
Fried NNP
Chicken NNP
stores NNS
in IN
the DT
Midwest NNP
. .

`` ``
The DT
industry NN
is VBZ
overbuilt JJ
, ,
'' ''
he PRP
says VBZ
. .

`` ``
Fast-food NN
franchisers NNS
have VBP
managed VBN
to TO
squeeze VB
in IN
stores NNS
into IN
every DT
corner NN
available JJ
. .
'' ''

The DT
National NNP
Restaurant NNP
Association NNP
says VBZ
quick-service JJ
restaurant NN
units NNS
in IN
the DT
U.S. NNP
rose VBD
14 CD
% NN
to TO
131,146 CD
between IN
1983 CD
and CC
1987 CD
, ,
the DT
last JJ
year NN
for IN
which WDT
figures NNS
are VBP
available JJ
. .

With IN
the DT
market NN
so RB
crowded VBD
, ,
says VBZ
a DT
spokesman NN
for IN
Wendy NNP
's POS
in IN
Columbus NNP
, ,
Ohio NNP
, ,
`` ``
If IN
you PRP
're VBP
doing VBG
well RB
, ,
you PRP
're VBP
doing VBG
well RB
at IN
someone NN
else RB
's POS
expense NN
. .
'' ''
Simply RB
put VB
, ,
there EX
is VBZ
n't RB
enough JJ
business NN
for IN
every DT
store NN
to TO
grow VB
. .

According VBG
to TO
Mr. NNP
Rohs NNP
, ,
inflation-adjusted JJ
, ,
same-store JJ
sales NNS
at IN
company-owned JJ
Wendy NNP
's POS
units NNS
in IN
the DT
U.S. NNP
have VBP
trailed VBN
year-earlier JJ
levels NNS
throughout IN
1989 CD
, ,
except IN
for IN
August NNP
. .

`` ``
McDonald NNP
's POS
has VBZ
also RB
been VBN
running VBG
negative JJ
all DT
year NN
, ,
'' ''
the DT
analyst NN
says NNS
. .

Spokesmen NNS
for IN
Wendy NNP
's POS
and CC
McDonald NNP
's POS
criticized VBN
Mr. NNP
Rohs NNP
's POS
calculations NNS
. .

Jack NNP
Greenberg NNP
, ,
executive JJ
vice NN
president NN
and CC
chief JJ
financial JJ
officer NN
of IN
McDonald NNP
's POS
, ,
says VBZ
the DT
company NN
does VBZ
n't RB
compute VB
, ,
much RB
less JJR
disclose VB
, ,
inflation-adjusted JJ
, ,
same-store JJ
sales NNS
. .

He PRP
adds VBZ
that IN
short-term JJ
comparisons NNS
`` ``
can MD
be VB
very RB
misleading JJ
because IN
of IN
differences NNS
in IN
timing NN
of IN
marketing NN
programs NNS
from IN
year NN
to TO
year NN
. .
'' ''

Profit NN
margins NNS
at IN
company-owned JJ
McDonald NNP
's POS
outlets NNS
in IN
the DT
U.S. NNP
`` ``
are VBP
holding VBG
up IN
quite RB
nicely RB
, ,
'' ''
says VBZ
Mr. NNP
Greenberg NNP
. .

Profits NNS
of IN
franchisees NNS
have VBP
n't RB
been VBN
higher JJR
since IN
the DT
mid-1970s NNS
, ,
he PRP
adds VBZ
. .

But CC
Mr. NNP
Greenberg NNP
's POS
sanguine JJ
outlook NN
is VBZ
n't RB
matched VBN
by IN
many JJ
fast-food NN
industry NN
observers NNS
. .

Smaller JJR
chains NNS
and CC
single-store JJ
operators NNS
will MD
be VB
the DT
first JJ
to TO
fail VB
, ,
many JJ
in IN
the DT
industry NN
predict VBP
. .

Big JJ
franchise NN
groups NNS
`` ``
can MD
ride VB
out RP
the IN
storm NN
a DT
lot NN
longer RB
, ,
'' ''
says VBZ
Mr. NNP
Harty NNP
, ,
the DT
Burger NNP
King NNP
operator NN
in IN
New NNP
York NNP
. .

The DT
prolonged VBN
price NN
pressures NNS
are VBP
driving VBG
a DT
wedge NN
between IN
some DT
franchisers NNS
and CC
their PRP$
franchisees NNS
. .

Mr. NNP
Morrissey NNP
, ,
the DT
Kentucky NNP
Fried NNP
Chicken NNP
franchisee NN
, ,
notes VBZ
that IN
most RBS
franchise NN
owners NNS
must MD
absorb VB
increases NNS
in IN
expenses NNS
without IN
any DT
cut NN
in IN
the DT
royalties NNS
, ,
or CC
portion NN
of IN
sales NNS
, ,
that IN
they PRP
must MD
pay VB
franchisers NNS
. .

Franchisees NNS
ca MD
n't RB
be VB
forced VBN
to TO
go VB
along IN
with IN
a DT
franchiser NN
's POS
discounting NN
. .

But CC
once RB
a DT
franchisee NN
agrees VBZ
to TO
a DT
promotional JJ
program NN
, ,
the DT
franchiser NN
can MD
demand VB
full JJ
participation NN
to TO
the DT
very JJ
end NN
, ,
says VBZ
Lew NNP
Rudnick NNP
, ,
a DT
principal NN
of IN
Rudnick NNP
& CC
Wolfe NNP
, ,
a DT
Chicago NNP
law NN
firm NN
with IN
franchise NN
industry NN
clients NNS
. .

He PRP
says VBZ
courts NNS
have VBP
held VBN
that IN
antitrust JJ
considerations NNS
are VBP
outweighed VBN
in IN
such JJ
cases NNS
by IN
the DT
need NN
to TO
protect VB
consumers NNS
from IN
deceptive JJ
marketing NN
. .

In IN
any DT
case NN
, ,
many JJ
franchisees NNS
, ,
in IN
order NN
to TO
stay VB
on IN
good JJ
terms NNS
with IN
franchisers NNS
, ,
routinely RB
go VB
along IN
with IN
promotions NNS
. .

Says VBZ
Mr. NNP
Riese NNP
of IN
National NNP
Restaurants NNP
: :
`` ``
If IN
you PRP
resisted VBD
on IN
prices NNS
, ,
maybe RB
you PRP
would MD
never RB
get VB
that WDT
telephone NN
call NN
about IN
a DT
new JJ
franchise NN
. .

Companies NNS
listed VBN
below IN
reported VBN
quarterly JJ
profit NN
substantially RB
different JJ
from IN
the DT
average NN
of IN
analysts NNS
' POS
estimates NNS
. .

The DT
companies NNS
are VBP
followed VBN
by IN
at IN
least JJS
three CD
analysts NNS
, ,
and CC
had VBD
a DT
minimum JJ
five-cent JJ
change NN
in IN
actual JJ
earnings NNS
per IN
share NN
. .

Estimated VBN
and CC
actual JJ
results NNS
involving VBG
losses NNS
are VBP
omitted VBN
. .

The DT
percent NN
difference NN
compares VBZ
actual JJ
profit NN
with IN
the DT
30-day JJ
estimate NN
where WRB
at IN
least JJS
three CD
analysts NNS
have VBP
issues NNS
forecasts NNS
in IN
the DT
past JJ
30 CD
days NNS
. .

Otherwise RB
, ,
actual JJ
profit NN
is VBZ
compared VBN
with IN
the DT
300-day JJ
estimate NN
. .

Companies NNS
listed VBN
below IN
reported VBN
quarterly JJ
profit NN
substantially RB
different JJ
from IN
the DT
average NN
of IN
analysts NNS
' POS
estimates NNS
. .

The DT
companies NNS
are VBP
followed VBN
by IN
at IN
least JJS
three CD
analysts NNS
, ,
and CC
had VBD
a DT
minimum JJ
five-cent JJ
change NN
in IN
actual JJ
earnings NNS
per IN
share NN
. .

Estimated VBN
and CC
actual JJ
results NNS
involving VBG
losses NNS
are VBP
omitted VBN
. .

The DT
percent NN
difference NN
compares VBZ
actual JJ
profit NN
with IN
the DT
30-day JJ
estimate NN
where WRB
at IN
least JJS
three CD
analysts NNS
have VBP
issues NNS
forecasts NNS
in IN
the DT
past JJ
30 CD
days NNS
. .

Otherwise RB
, ,
actual JJ
profit NN
is VBZ
compared VBN
with IN
the DT
300-day JJ
estimate NN
. .

CalMat NNP
Co. NNP
said VBD
it PRP
completed VBD
a DT
$ $
32.8 CD
million CD
sale NN
of IN
assets NNS
from IN
its PRP$
Los NNP
Angeles NNP
area NN
real JJ
estate NN
portfolio NN
for IN
net JJ
income NN
of IN
$ $
12 CD
million CD
. .

CalMat NNP
said VBD
the DT
sale NN
is VBZ
part NN
of IN
its PRP$
previously RB
announced VBD
plan NN
to TO
sell VB
much NN
of IN
its PRP$
real JJ
estate NN
holdings NNS
to TO
focus VB
on IN
its PRP$
core NN
business NN
of IN
mining NN
and CC
producing VBG
asphalt NN
, ,
concrete JJ
, ,
rock NN
and CC
sand NN
. .

And CC
you PRP
thought VBD
the DT
only JJ
reason NN
to TO
save VB
your PRP$
canceled VBN
checks NNS
was VBD
to TO
prepare VB
for IN
an DT
IRS NNP
audit NN
. .

Reggie NNP
Jackson NNP
, ,
the DT
retired VBN
baseball NN
star NN
, ,
has VBZ
found VBN
another DT
use NN
for IN
them PRP
. .

Mr. NNP
Jackson NNP
, ,
who WP
won VBD
the DT
nickname NN
`` ``
Mr. NNP
October NNP
'' ''
for IN
his PRP$
World NNP
Series NNP
exploits NNS
, ,
is VBZ
selling VBG
some DT
of IN
his PRP$
canceled VBN
checks NNS
to TO
autograph VB
collectors NNS
through IN
a DT
dealer NN
for IN
as RB
much JJ
as IN
$ $
500 CD
each DT
. .

Dealers NNS
say VBP
the DT
budding VBG
trade NN
in IN
Mr. NNP
Jackson NNP
's POS
canceled VBN
checks NNS
is VBZ
unusual JJ
. .

`` ``
I PRP
do VBP
n't RB
know VB
of IN
any DT
living VBG
ballplayer NN
that WDT
's VBZ
ever RB
done VBN
it PRP
, ,
'' ''
says VBZ
Jack NNP
Smalling NNP
, ,
a DT
dealer NN
in IN
Ames NNP
, ,
Iowa NNP
, ,
and CC
a DT
recognized VBN
expert NN
in IN
the DT
field NN
of IN
baseball NN
autographs NNS
. .

An DT
initial JJ
batch NN
of IN
Mr. NNP
Jackson NNP
's POS
checks NNS
was VBD
on IN
sale NN
at IN
a DT
baseball-card JJ
show NN
held VBN
in IN
San NNP
Francisco NNP
over IN
Labor NNP
Day NNP
weekend NN
. .

Mr. NNP
Jackson NNP
showed VBD
up IN
at IN
the DT
affair NN
to TO
sign VB
autographs NNS
for IN
a DT
fee NN
as IN
well RB
. .

`` ``
For IN
someone NN
who WP
has VBZ
everything NN
else RB
-- :
Reggie NNP
's POS
jersey NN
, ,
cap NN
and CC
cards NNS
-- :
his PRP$
checks NNS
might MD
be VB
a DT
nice JJ
addition NN
, ,
'' ''
says VBZ
William NNP
Vizas NNP
, ,
owner NN
of IN
Bill NNP
's POS
Sports NNPS
Collectibles NNS
in IN
Denver NNP
, ,
who WP
examined VBD
the DT
checks NNS
at IN
the DT
San NNP
Francisco NNP
card NN
show NN
. .

For IN
years NNS
, ,
the DT
canceled VBN
checks NNS
of IN
a DT
small JJ
number NN
of IN
well-known JJ
baseball NN
players NNS
have VBP
been VBN
bought VBN
and CC
sold VBN
. .

But CC
these DT
players NNS
were VBD
dead JJ
. .

`` ``
Maybe RB
three CD
years NNS
ago RB
, ,
there EX
were VBD
a DT
lot NN
of IN
-LCB- (
Ty NNP
-RCB- )
Cobbs NNS
in IN
the DT
hobby NN
, ,
and CC
awhile RB
back RB
there EX
were VBD
Babe NNP
Ruth NNP
checks NNS
, ,
'' ''
says VBZ
Mr. NNP
Smalling NNP
. .

However RB
, ,
the DT
thought NN
of IN
a DT
living VBG
player NN
selling VBG
his PRP$
checks NNS
rubs VBZ
some DT
people NNS
the DT
wrong JJ
way NN
. .

`` ``
Maybe RB
I PRP
'm VBP
a DT
little JJ
stuffy JJ
, ,
but CC
I PRP
would MD
n't RB
sell VB
them PRP
, ,
'' ''
sniffs VBZ
Bob NNP
Machon NNP
, ,
owner NN
of IN
Papa NNP
's POS
Sports NNP
Cards NNP
in IN
Menlo NNP
Park NNP
, ,
Calif NNP
. .

`` ``
Who WP
knows VBZ
how WRB
much JJ
they PRP
'll MD
be VB
worth JJ
100 CD
years NNS
from IN
now RB
? .
'' ''

And CC
Mr. NNP
Smalling NNP
does VBZ
n't RB
believe VB
they PRP
're VBP
worth JJ
all DT
that NN
much JJ
now RB
. .

`` ``
I PRP
do VBP
n't RB
think VB
the DT
checks NNS
are VBP
worth JJ
$ $
15 CD
apiece RB
, ,
'' ''
he PRP
says VBZ
. .

Why WRB
Mr. NNP
Jackson NNP
, ,
who WP
could MD
n't RB
be VB
reached VBN
for IN
comment NN
, ,
has VBZ
made VBN
some DT
of IN
his PRP$
checks NNS
available JJ
for IN
sale NN
is VBZ
n't RB
clear JJ
. .

He PRP
probably RB
has VBZ
n't RB
done VBN
it PRP
for IN
the DT
cash NN
. .

`` ``
I PRP
would MD
say VB
he PRP
's VBZ
definitely RB
not RB
in IN
need NN
of IN
money NN
, ,
'' ''
says VBZ
Matt NNP
Merola NNP
, ,
an DT
agent NN
of IN
Mr. NNP
Jackson NNP
's POS
based VBN
in IN
New NNP
York NNP
. .

`` ``
He PRP
has VBZ
good JJ
investments NNS
. .
'' ''

And CC
Mr. NNP
Jackson NNP
probably RB
has VBZ
opened VBN
new JJ
checking NN
accounts NNS
, ,
too RB
. .

Or CC
at IN
least JJS
he PRP
should MD
. .

`` ``
I PRP
assume VBP
those DT
accounts NNS
are VBP
closed VBN
, ,
'' ''
says VBZ
Mr. NNP
Smalling NNP
, ,
referring VBG
to TO
the DT
accounts NNS
of IN
the DT
canceled VBN
checks NNS
. .

`` ``
I PRP
do VBP
n't RB
think VB
he PRP
'd MD
want VB
to TO
give VB
out IN
his PRP$
current JJ
account NN
numbers NNS
. .

USX NNP
Corp. NNP
and CC
its PRP$
Japanese JJ
partner NN
, ,
Kobe NNP
Steel NNP
Ltd. NNP
, ,
agreed VBD
to TO
form VB
a DT
joint JJ
venture NN
to TO
build VB
a DT
new JJ
plant NN
to TO
produce VB
hot-dipped JJ
galvanized JJ
sheet NN
products NNS
, ,
mainly RB
for IN
the DT
automotive JJ
market NN
. .

Terms NNS
were VBD
n't RB
disclosed VBN
for IN
the DT
plant NN
, ,
which WDT
will MD
have VB
annual JJ
capacity NN
of IN
600,000 CD
tons NNS
. .

The DT
move NN
by IN
the DT
nation NN
's POS
largest JJS
steelmaker NN
follows VBZ
a DT
string NN
of IN
earlier JJR
announcements NNS
by IN
other JJ
major JJ
steel NN
companies NNS
. .

Bethlehem NNP
Steel NNP
Corp. NNP
, ,
LTV NNP
Corp. NNP
and CC
Armco NNP
Inc. NNP
all DT
have NN
plans NNS
to TO
build VB
additional JJ
lines NNS
for IN
such JJ
coated VBN
corrosion-resistant JJ
steel NN
. .

The DT
surge NN
in IN
production NN
, ,
analysts NNS
say VBP
, ,
raises VBZ
questions NNS
about IN
capacity NN
outpacing VBG
demand NN
. .

They PRP
note VBP
that IN
most RBS
of IN
the DT
new JJ
plants NNS
will MD
come VB
on IN
line NN
in IN
1992 CD
, ,
when WRB
the DT
current JJ
import NN
trade NN
restraint NN
program NN
ends NNS
, ,
which WDT
could MD
result VB
in IN
more JJR
imports NNS
. .

`` ``
There EX
's VBZ
too RB
much JJ
capacity NN
, ,
'' ''
contended VBD
Charles NNP
Bradford NNP
, ,
an DT
analyst NN
with IN
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
. .

`` ``
I PRP
do VBP
n't RB
think VB
there EX
's VBZ
anyone NN
not RB
building VBG
one CD
. .
'' ''

He PRP
does VBZ
add VB
, ,
however RB
, ,
that IN
transplanted VBN
Japanese JJ
car NN
makers NNS
are VBP
boosting VBG
the DT
levels NNS
of IN
U.S.-made JJ
steel NN
in IN
their PRP$
autos NNS
, ,
instead RB
of IN
relying VBG
heavily RB
on IN
imported VBN
steel NN
. .

That DT
trend NN
could MD
increase VB
demand NN
for IN
hot-dipped JJ
galvanized JJ
sheet NN
. .

The DT
hot-dipped JJ
galvanized JJ
segment NN
is VBZ
one CD
of IN
the DT
fastest-growing JJ
and CC
most RBS
profitable JJ
segments NNS
of IN
the DT
steel NN
market NN
, ,
coveted VBN
by IN
all DT
major JJ
integrated VBN
steelmakers NNS
wanting VBG
to TO
maintain VB
an DT
edge NN
over IN
smaller JJR
minimills NNS
and CC
reconstructed JJ
mills NNS
-- :
those DT
spun VBN
off IN
to TO
employees NNS
. .

Indeed RB
, ,
USX NNP
said VBD
it PRP
expects VBZ
the DT
market NN
for IN
coated VBN
sheet NN
steel NN
to TO
reach VB
12 CD
million CD
tons NNS
annually RB
by IN
1992 CD
, ,
compared VBN
with IN
10.2 CD
million CD
tons NNS
shipped VBN
in IN
1988 CD
. .
For IN
the DT
first JJ
eight CD
months NNS
of IN
1989 CD
, ,
analysts NNS
say VBP
shipments NNS
of IN
hot-dipped JJ
galvanized JJ
steel NN
increased VBN
about IN
8 CD
% NN
from IN
a DT
year NN
earlier RBR
, ,
while IN
overall JJ
steel NN
shipments NNS
were VBD
up IN
only RB
2.4 CD
% NN
. .

USX NNP
and CC
Kobe NNP
Steel NNP
hope NN
to TO
reach VB
a DT
definitive JJ
agreement NN
establishing VBG
the DT
50-50 JJ
partnership NN
by IN
the DT
end NN
of IN
the DT
year NN
, ,
with IN
construction NN
tentatively RB
slated VBD
for IN
the DT
spring NN
of IN
1990 CD
and CC
production NN
by IN
1992 CD
. .

USX NNP
already RB
has VBZ
six CD
lines NNS
in IN
existing VBG
plants NNS
producing VBG
hot-dipped JJ
galvanized JJ
steel NN
, ,
but CC
this DT
marks VBZ
the DT
first JJ
so-called JJ
greenfield NN
plant NN
for IN
such JJ
production NN
. .

Moreover RB
, ,
it PRP
will MD
boost VB
by IN
50 CD
% NN
USX NNP
's POS
current JJ
hot-dipped JJ
capacity NN
of IN
1,275,000 CD
tons NNS
. .

The DT
company NN
said VBD
it PRP
does VBZ
n't RB
expect VB
the DT
new JJ
line NN
's POS
capacity NN
to TO
adversely RB
affect VB
the DT
company NN
's POS
existing VBG
hot-dipped JJ
galvanizing NN
lines NNS
. .

Steelmakers NNS
have VBP
also RB
been VBN
adding VBG
capacity NN
of IN
so-called JJ
electrogalvanized JJ
steel NN
, ,
which WDT
is VBZ
another DT
way NN
to TO
make VB
coated VBN
corrosion-resistant JJ
steel NN
. .

One CD
of IN
the DT
advantages NNS
of IN
the DT
hot-dipped JJ
process NN
is VBZ
that IN
it PRP
allows VBZ
the DT
steel NN
to TO
be VB
covered VBN
with IN
a DT
thicker JJR
coat NN
of IN
zinc NN
more RBR
quickly RB
. .

ONCE RB
YOU PRP
MAKE VB
UP IN
your PRP$
mind NN
about IN
an DT
investment NN
, ,
the DT
rest NN
is VBZ
easy JJ
, ,
right NN
? .

You PRP
just RB
call VBP
your PRP$
broker NN
and CC
say VBP
`` ``
buy VB
'' ''
or CC
`` ``
sell VB
. .
'' ''

Dream NNP
on NNP
. .

There EX
are VBP
all DT
sorts NNS
of IN
ways NNS
to TO
give VB
buy NN
and CC
sell VB
instructions NNS
to TO
a DT
broker NN
-- :
and CC
just RB
as IN
many JJ
ways NNS
to TO
get VB
burned VBN
if IN
you PRP
do VBP
n't RB
know VB
what WP
you PRP
're VBP
doing VBG
. .

So RB
here RB
's VBZ
a DT
rundown NN
of IN
the DT
most RBS
common JJ
types NNS
of IN
market NN
orders NNS
permitted VBN
by IN
the DT
stock NN
and CC
commodity NN
exchanges NNS
. .

Two CD
things NNS
to TO
keep VB
in IN
mind NN
: :
Not RB
all DT
exchanges NNS
accept VBP
every DT
type NN
of IN
order NN
. .

And CC
even RB
when WRB
a DT
specific JJ
order NN
is VBZ
acceptable JJ
to TO
an DT
exchange NN
, ,
a DT
brokerage NN
firm NN
can MD
refuse VB
to TO
enter VB
it PRP
for IN
a DT
customer NN
. .

Market NNP
Order NNP
: :
This DT
is VBZ
probably RB
the DT
most RBS
widely RB
used VBN
order NN
-- :
and CC
the DT
one CD
most RBS
open JJ
to TO
abuse VB
by IN
unscrupulous JJ
floor NN
brokers NNS
, ,
since IN
it PRP
imposes VBZ
no DT
price NN
restrictions NNS
. .

With IN
a DT
market NN
order NN
, ,
an DT
investor NN
tells VBZ
a DT
broker NN
to TO
buy VB
or CC
sell VB
`` ``
at IN
the DT
market NN
. .
'' ''

It PRP
's VBZ
like IN
saying VBG
, ,
`` ``
get VB
me PRP
in IN
now RB
'' ''
or CC
`` ``
get VB
me PRP
out IN
now RB
. .
'' ''

For IN
example NN
, ,
if IN
wheat NN
is VBZ
being VBG
offered VBN
at IN
$ $
4.065 CD
and CC
bid NN
at IN
$ $
4.060 CD
, ,
a DT
market NN
order NN
to TO
buy VB
would MD
be VB
filled VBN
at IN
the DT
higher JJR
price NN
and CC
a DT
market NN
order NN
to TO
sell VB
at IN
the DT
lower JJR
price NN
. .

A DT
recent JJ
indictment NN
alleges VBZ
that IN
some DT
floor NN
brokers NNS
at IN
the DT
two CD
largest JJS
Chicago NNP
commodity NN
exchanges NNS
used VBD
market NN
orders NNS
to TO
fill VB
customers NNS
' POS
orders NNS
at IN
unfavorable JJ
prices NNS
by IN
arranging VBG
trades NNS
with IN
fellow NN
brokers NNS
. .

Profits NNS
realized VBD
from IN
these DT
trades NNS
would MD
then RB
be VB
shared VBN
by IN
the DT
conspiring VBG
brokers NNS
. .

Limit VB
Order NNP
: :
Limit VB
orders NNS
are VBP
used VBN
when WRB
investors NNS
want VBP
to TO
restrict VB
the DT
amount NN
they PRP
will MD
receive VB
or CC
pay VB
for IN
an DT
investment NN
. .

Investors NNS
do VBP
this DT
by IN
specifying VBG
a DT
minimum JJ
price NN
at IN
which WDT
the DT
investment NN
may MD
be VB
sold VBN
or CC
the DT
maximum JJ
price NN
that WDT
may MD
be VB
paid VBN
for IN
it PRP
. .

Suppose VB
an DT
investor NN
wants VBZ
to TO
sell VB
a DT
stock NN
, ,
but CC
not RB
for IN
less JJR
than IN
$ $
55 NN
. .

A DT
limit NN
order NN
to TO
sell VB
could MD
be VB
entered VBN
at IN
that DT
price NN
. .

One CD
risk NN
: :
Investors NNS
may MD
regret VB
the DT
restriction NN
if IN
the DT
stock NN
reaches VBZ
54 CD
and CC
then RB
falls VBZ
. .

Unless IN
the DT
market NN
goes VBZ
at IN
least JJS
one CD
tick VB
-LRB- (
the DT
smallest JJS
price NN
increment NN
permitted VBN
-RRB- )
beyond IN
the DT
limit NN
price NN
, ,
investors NNS
are VBP
n't RB
assured VBN
of IN
having VBG
their PRP$
orders NNS
filled VBN
because IN
there EX
may MD
not RB
be VB
sufficient JJ
trading NN
volume NN
to TO
permit VB
filling VBG
it PRP
at IN
the DT
specified VBN
price NN
. .

Stop VB
Order NNP
: :
Stop VB
orders NNS
tell VB
a DT
floor NN
broker NN
to TO
buy VB
or CC
sell VB
an DT
investment NN
once RB
the DT
price NN
reaches VBZ
a DT
certain JJ
level NN
. .

Once RB
the DT
price NN
reaches VBZ
that DT
level NN
, ,
a DT
stop NN
order NN
turns VBZ
into IN
a DT
market NN
order NN
, ,
and CC
the DT
order NN
is VBZ
filled VBN
at IN
whatever WDT
price VBP
the DT
broker NN
can MD
get VB
. .

Stop VB
orders NNS
are VBP
sometimes RB
called VBN
`` ``
stop-loss NN
'' ''
orders NNS
because IN
they PRP
are VBP
frequently RB
used VBN
to TO
protect VB
profits NNS
or CC
limit NN
losses NNS
. .

While IN
stop NN
orders NNS
sound VBP
similar JJ
to TO
limit VB
orders NNS
, ,
there EX
is VBZ
a DT
difference NN
: :
Sell VB
stops VBZ
must MD
be VB
entered VBN
at IN
a DT
price NN
below IN
the DT
current JJ
market NN
price NN
and CC
buy VB
stops VBZ
above RB
. .

In IN
contrast NN
, ,
sell VB
limit NN
orders NNS
must MD
be VB
placed VBN
above IN
the DT
market NN
price NN
and CC
buy VB
limit NN
orders NNS
are VBP
placed VBN
below RB
. .
The DT
crash NN
in IN
October NNP
1987 CD
and CC
last JJ
Friday NNP
's POS
sell-off NN
painfully RB
taught VBD
some DT
investors NNS
exactly RB
what WP
stop VBP
orders NNS
will MD
and CC
wo MD
n't RB
do VB
. .

An DT
investor NN
who WP
may MD
have VB
placed VBN
a DT
stop-loss NN
order NN
at IN
$ $
90 CD
under IN
a DT
stock NN
that WDT
was VBD
trading VBG
at IN
$ $
100 CD
a DT
share NN
on IN
the DT
Friday NNP
before IN
the DT
crash NN
was VBD
stunned VBN
to TO
discover VB
that IN
the DT
order NN
was VBD
filled VBN
at IN
$ $
75 CD
when WRB
the DT
stock NN
opened VBD
at IN
that DT
price NN
on IN
Monday NNP
. .

Stop-Limit NNP
Order NNP
: :
Stop-limit JJ
orders NNS
turn VBP
into IN
limit NN
orders NNS
when WRB
an DT
investment NN
trades NNS
at IN
the DT
price NN
specified VBN
in IN
the DT
order NN
. .

Unlike IN
stop NN
orders NNS
-- :
which WDT
are VBP
filled VBN
at IN
the DT
market NN
price NN
when WRB
the DT
stop NN
price NN
is VBZ
hit VBN
-- :
stop-limit JJ
orders NNS
demand VBP
that IN
the DT
trades NNS
be VBP
made VBN
only RB
at IN
the DT
specified VBN
price NN
. .

If IN
it PRP
ca MD
n't RB
be VB
made VBN
at IN
that DT
price NN
, ,
it PRP
does VBZ
n't RB
get VB
filled VBN
. .

Investors NNS
who WP
wish VBP
to TO
be VB
out IN
of IN
a DT
position NN
, ,
without IN
the DT
risk NN
of IN
receiving VBG
a DT
worse-than-expected JJ
price NN
from IN
a DT
market NN
order NN
, ,
may MD
use VB
this DT
type NN
of IN
order NN
to TO
specify VB
the DT
price NN
at IN
which WDT
the DT
order NN
must MD
be VB
filled VBN
. .

But CC
if IN
the DT
market NN
moves NNS
quickly RB
enough RB
, ,
it PRP
may MD
be VB
impossible JJ
for IN
the DT
broker NN
to TO
carry VB
out RP
the IN
order NN
because IN
the DT
investment NN
has VBZ
passed VBN
the DT
specified VBN
price NN
. .

Market-If-Touched NNP
Order NNP
: :
Market-if-touched JJ
orders NNS
are VBP
like IN
stop NN
orders NNS
in IN
that DT
they PRP
become VBP
market NN
orders NNS
if IN
a DT
specified VBN
price NN
is VBZ
reached VBN
. .

However RB
, ,
unlike IN
a DT
buy-stop JJ
order NN
, ,
a DT
buy NN
market-if-touched NN
order NN
is VBZ
entered VBN
at IN
a DT
price NN
below IN
the DT
current JJ
price NN
, ,
while IN
a DT
sell NN
market-if-touched NN
order NN
is VBZ
entered VBN
at IN
a DT
price NN
above IN
it PRP
. .

As RB
soon RB
as IN
the DT
market NN
trades NNS
at IN
the DT
specified VBN
price NN
the DT
floor NN
broker NN
will MD
fill VB
it PRP
at IN
the DT
best JJS
possible JJ
price NN
. .

Fill-Or-Kill NNP
Order NNP
: :
The DT
fill-or-kill JJ
order NN
is VBZ
one CD
of IN
several RB
associated VBN
with IN
the DT
timing NN
of IN
trades NNS
. .

It PRP
instructs VBZ
a DT
broker NN
to TO
buy VB
or CC
sell VB
an DT
investment NN
at IN
the DT
specified VBN
price NN
or CC
better JJR
. .

But CC
if IN
the DT
investment NN
ca MD
n't RB
be VB
bought VBN
or CC
sold VBN
immediately RB
, ,
the DT
order NN
is VBZ
automatically RB
canceled VBN
. .

Gregory NNP
Bessemer NNP
, ,
who WP
came VBD
in IN
second JJ
in IN
the DT
stock NN
division NN
of IN
the DT
recently RB
completed VBN
U.S. NNP
Trading NNP
Championship NNP
, ,
says VBZ
he PRP
uses VBZ
fill-or-kill JJ
orders NNS
almost RB
exclusively RB
when WRB
trading NN
options NNS
. .

`` ``
I PRP
like VB
to TO
use VB
them PRP
to TO
feel VB
out RP
the IN
market NN
, ,
'' ''
he PRP
says VBZ
. .

`` ``
If IN
they PRP
do VBP
n't RB
fill VB
it PRP
immediately RB
, ,
then RB
I PRP
can MD
start VB
over IN
at IN
a DT
new JJ
price NN
or CC
try VB
again RB
with IN
the DT
same JJ
price NN
. .
'' ''

Not-Held NNP
Order NNP
: :
This DT
is VBZ
another DT
timing NN
order NN
. .

It PRP
is VBZ
a DT
market NN
order NN
that WDT
allows VBZ
floor NN
brokers NNS
to TO
take VB
more JJR
time NN
to TO
buy VB
or CC
sell VB
an DT
investment NN
, ,
if IN
they PRP
think VBP
they PRP
can MD
get VB
a DT
better JJR
price NN
by IN
waiting VBG
. .

Not-held JJ
orders NNS
, ,
which WDT
are VBP
also RB
known VBN
as IN
`` ``
disregard NN
the DT
tape NN
'' ''
orders NNS
, ,
are VBP
always RB
done VBN
at IN
the DT
customer NN
's POS
risk NN
. .

One-Cancels-The-Other NNP
Order NNP
: :
This DT
is VBZ
really RB
two CD
orders NNS
in IN
one CD
, ,
generally RB
for IN
the DT
same JJ
security NN
or CC
commodity NN
, ,
instructing VBG
floor NN
brokers NNS
to TO
fill VB
whichever WDT
order VBP
they PRP
can MD
first RB
and CC
then RB
cancel VB
the DT
other JJ
order NN
. .

In IN
a DT
fast-moving JJ
market NN
, ,
it PRP
prevents VBZ
an DT
investor NN
from IN
getting VBG
stuck VBN
with IN
having VBG
made VBN
two CD
trades NNS
on IN
the DT
same JJ
security NN
. .

Specific-Time NNP
Order NNP
: :
This DT
type NN
of IN
order NN
couples NNS
many NN
of IN
the DT
orders NNS
described VBN
above IN
with IN
instructions NNS
that IN
the DT
order NN
must MD
be VB
carried VBN
out IN
at IN
or CC
by IN
a DT
certain JJ
time NN
. .

`` ``
On IN
the DT
close NN
'' ''
can MD
be VB
added VBN
to TO
many VB
types NNS
of IN
orders NNS
. .

For IN
example NN
, ,
`` ``
market-on-close JJ
orders NNS
'' ''
must MD
be VB
filled VBN
during IN
the DT
last JJ
few JJ
minutes NNS
of IN
trading NN
for IN
the DT
day NN
at IN
a DT
price NN
that WDT
is VBZ
within IN
the DT
official NN
closing VBG
range NN
of IN
prices NNS
as IN
determined VBN
by IN
the DT
exchange NN
. .

`` ``
Stop-close-only JJ
orders NNS
'' ''
are VBP
stop VB
orders NNS
that WDT
only RB
become VB
active JJ
during IN
the DT
closing VBG
minutes NNS
of IN
trading NN
. .

`` ``
Day NNP
orders NNS
'' ''
expire VB
at IN
the DT
end NN
of IN
the DT
day NN
on IN
which WDT
they PRP
are VBP
entered VBN
, ,
`` ``
good-till-canceled JJ
orders NNS
'' ''
have VBP
no DT
expiration NN
date NN
. .

Most JJS
brokers NNS
assume VBP
that IN
all DT
orders NNS
are VBP
day NN
orders NNS
unless IN
specified VBN
otherwise RB
. .

On IN
Oct. NNP
19 CD
, ,
1987 CD
, ,
some DT
investors NNS
learned VBD
the DT
consequences NNS
of IN
entering VBG
`` ``
good-til-canceled JJ
limit NN
orders NNS
'' ''
and CC
then RB
forgetting VBG
about IN
them PRP
. .

They PRP
found VBD
they PRP
had VBD
bought VBN
stock NN
from IN
limit NN
orders NNS
that IN
they PRP
might MD
have VB
entered VBN
weeks NNS
or CC
months NNS
earlier RBR
and CC
had VBD
forgotten VBN
to TO
cancel VB
. .

It PRP
is VBZ
always RB
the DT
responsibility NN
of IN
investors NNS
to TO
keep VB
track NN
of IN
the DT
orders NNS
they PRP
have VBP
placed VBN
. .

Investors NNS
who WP
change VBP
their PRP$
mind NN
about IN
buying VBG
or CC
selling VBG
after IN
an DT
order NN
has VBZ
been VBN
filled VBN
are VBP
, ,
usually RB
, ,
stuck VBN
with IN
the DT
consequences NNS
. .

Mr. NNP
Angrist NNP
writes VBZ
on IN
the DT
options NNS
and CC
commodities NNS
markets NNS
for IN
The DT
Wall NNP
Street NNP
Journal NNP
. .

IN IN
SIZING NNP
UP IN
the DT
risks NNS
of IN
stock-market NN
investments NNS
, ,
there EX
's VBZ
probably RB
no DT
starting VBG
place NN
better JJR
than IN
`` ``
beta NN
. .
'' ''

But CC
investors NNS
better RBR
not RB
ignore VB
its PRP$
limitations NNS
, ,
either RB
. .

Beta NNP
is VBZ
a DT
handy JJ
gauge NN
that IN
measures VBZ
the DT
volatility NN
of IN
a DT
stock NN
or CC
stock NN
mutual JJ
fund NN
. .

For IN
any DT
given VBN
move NN
in IN
the DT
overall JJ
market NN
, ,
it PRP
suggests VBZ
how WRB
steeply RB
that IN
particular JJ
issue NN
might MD
rise VB
or CC
fall NN
. .

Beta JJ
figures NNS
are VBP
widely RB
available JJ
and CC
easy JJ
to TO
interpret VB
. .

The DT
beta NN
of IN
the DT
broad JJ
market NN
, ,
typically RB
defined VBN
as IN
the DT
Standard NNP
& CC
Poor NNP
's POS
500-stock JJ
index NN
, ,
is VBZ
always RB
1.0 CD
. .

So RB
a DT
stock NN
with IN
a DT
beta NN
of IN
0.5 CD
is VBZ
half NN
as IN
volatile JJ
, ,
one CD
at IN
1.5 CD
is VBZ
50 CD
% NN
more RBR
volatile JJ
, ,
and CC
so RB
on RB
. .

Cautious JJ
investors NNS
should MD
generally RB
go VB
with IN
stocks NNS
that WDT
have VBP
low JJ
betas NNS
. .

Go VB
with IN
high-beta JJ
stocks NNS
to TO
get VB
the DT
biggest JJS
payoff NN
from IN
a DT
bet NN
on IN
a DT
bull NN
market NN
. .

Remember VB
, ,
though RB
, ,
that DT
beta NN
also RB
has VBZ
important JJ
limitations NNS
. .

`` ``
Beta NNP
is VBZ
only JJ
part NN
of IN
the DT
risk NN
in IN
a DT
stock NN
, ,
'' ''
says VBZ
William NNP
F. NNP
Sharpe NNP
, ,
the DT
Stanford NNP
University NNP
emeritus NN
professor NN
who WP
developed VBD
the DT
measure NN
. .

`` ``
There EX
is VBZ
risk NN
that WDT
is VBZ
not RB
associated VBN
with IN
market NN
moves NNS
, ,
and CC
the DT
beta NN
does VBZ
n't RB
tell VB
you PRP
the DT
magnitude NN
of IN
that DT
. .
'' ''

In IN
particular JJ
, ,
beta NN
does VBZ
n't RB
measure VB
the DT
company NN
- :
and CC
industry-specific JJ
risk NN
associated VBN
with IN
an DT
individual JJ
stock NN
. .

That DT
`` ``
business NN
'' ''
risk NN
is VBZ
very RB
significant JJ
for IN
an DT
investor NN
with IN
only RB
a DT
few JJ
stocks NNS
, ,
but CC
it PRP
virtually RB
disappears VBZ
in IN
a DT
large JJ
and CC
well-diversified JJ
portfolio NN
. .

Beta NNP
is VBZ
also RB
a DT
poor JJ
indicator NN
of IN
the DT
risk NN
in IN
stock NN
groups NNS
that WDT
march VBP
to TO
their PRP$
own JJ
drummer NN
. .

In IN
particular JJ
, ,
the DT
prices NNS
of IN
gold NN
and CC
other JJ
precious-metals NNS
stocks NNS
shoot VBP
up IN
and CC
down RB
, ,
but CC
the DT
stocks NNS
tend VBP
to TO
have VB
low JJ
betas NNS
because IN
their PRP$
moves NNS
are VBP
not RB
market-inspired JJ
. .

Concern NN
that IN
investors NNS
could MD
misinterpret VB
such JJ
readings NNS
led VBD
the DT
American NNP
Association NNP
of IN
Individual JJ
Investors NNS
to TO
eliminate VB
beta NN
figures NNS
for IN
precious-metals NNS
funds NNS
in IN
the DT
1989 CD
edition NN
of IN
its PRP$
mutual-fund JJ
guide NN
. .

`` ``
Our PRP$
fear NN
was VBD
people NNS
would MD
look VB
just RB
at IN
the DT
beta NN
-LCB- (
of IN
a DT
gold NN
fund NN
-RCB- )
and CC
say VBP
here RB
is VBZ
an DT
investment NN
with IN
very RB
low JJ
risk NN
, ,
'' ''
says VBZ
John NNP
Markese NNP
, ,
director NN
of IN
research NN
for IN
the DT
Chicago-based JJ
group NN
. .

`` ``
In IN
reality NN
it PRP
's VBZ
very RB
volatile JJ
, ,
but CC
the DT
movements NNS
are VBP
not RB
because IN
of IN
market NN
movements NNS
. .
READY NNP
TO TO
REVIEW NNP
the DT
riskiness NN
of IN
your PRP$
investment NN
portfolio NN
? .

First RB
, ,
a DT
pop NN
quiz NN
. .

When WRB
you PRP
think VBP
of IN
the DT
words NNS
`` ``
risk NN
'' ''
and CC
`` ``
investment NN
, ,
'' ''
what WP
's VBZ
the DT
specific JJ
peril NN
that WDT
comes VBZ
to TO
mind VB
? .

Pencils NNS
down RB
. .

If IN
you PRP
're VBP
like IN
most RBS
people NNS
, ,
you PRP
said VBD
it PRP
's VBZ
a DT
holding VBG
that WDT
goes VBZ
completely RB
sour JJ
-- :
maybe RB
a DT
bond NN
that IN
defaults NNS
or CC
a DT
stock NN
whose WP$
value NN
disappears VBZ
in IN
a DT
bankruptcy NN
proceeding NN
. .

`` ``
People NNS
tend VBP
to TO
see VB
risk NN
primarily RB
on IN
that DT
one CD
dimension NN
, ,
'' ''
says VBZ
Timothy NNP
Kochis NNP
, ,
national JJ
director NN
of IN
personal JJ
financial JJ
planning NN
for IN
accountants NNS
Deloitte NNP
, ,
Haskins NNP
& CC
Sells NNP
. .

But CC
therein RB
lies VBZ
another DT
aspect NN
of IN
investment NN
risk NN
: :
the DT
hazard NN
of IN
shaping VBG
your PRP$
portfolio NN
to TO
avoid VB
one CD
or CC
more JJR
types NNS
of IN
risk NN
and CC
being VBG
blind-sided JJ
by IN
others NNS
. .

This DT
is VBZ
clearly RB
not RB
good JJ
news NN
to TO
all DT
you PRP
people NNS
who WP
sleep VBP
like IN
babies NNS
every DT
night NN
, ,
lulled VBN
by IN
visions NNS
of IN
your PRP$
money NN
sitting VBG
risk-free JJ
in IN
six-month JJ
CDs NNS
. .

Risk NN
wears VBZ
many JJ
disguises NNS
, ,
and CC
investments NNS
that WDT
are VBP
low JJ
in IN
one CD
type NN
of IN
obvious JJ
risk NN
can MD
be VB
distressingly RB
high JJ
in IN
other JJ
, ,
less RBR
obvious JJ
kinds NNS
. .

U.S. NNP
Treasury NNP
bonds NNS
, ,
for IN
example NN
, ,
are VBP
supersafe NN
when WRB
it PRP
comes VBZ
to TO
returning VBG
money NN
at IN
maturity NN
. .

But CC
their PRP$
value NN
as IN
investments NNS
can MD
be VB
decimated VBN
by IN
inflation NN
, ,
which WDT
erodes VBZ
the DT
purchasing VBG
power NN
of IN
bonds NNS
' POS
fixed-dollar JJ
interest NN
payments NNS
. .

Risk NN
is VBZ
also RB
a DT
function NN
of IN
time NN
. .

When WRB
financial JJ
professionals NNS
measure VBP
risk NN
mathematically RB
, ,
they PRP
usually RB
focus VBP
on IN
the DT
volatility NN
of IN
short-term JJ
returns NNS
. .

Stocks NNS
are VBP
much RB
riskier JJR
than IN
Treasury NNP
bills NNS
, ,
for IN
example NN
, ,
because IN
the DT
range NN
in IN
performance NN
from IN
the DT
best JJS
years NNS
to TO
the DT
worst JJS
is VBZ
much RB
wider JJR
. .

That DT
is VBZ
usually RB
measured VBN
by IN
the DT
standard JJ
deviation NN
, ,
or CC
divergence NN
, ,
of IN
annual JJ
results NNS
from IN
the DT
average JJ
return NN
over IN
time NN
. .

But CC
investors NNS
who WP
are VBP
preoccupied VBN
with IN
short-term JJ
fluctuations NNS
may MD
be VB
paying VBG
too RB
little JJ
attention NN
to TO
another DT
big JJ
risk NN
-- :
not RB
generating VBG
enough JJ
money NN
to TO
meet VB
long-term JJ
financial JJ
and CC
life-style NN
goals NNS
. .

For IN
instance NN
, ,
some DT
investors NNS
have VBP
sworn VBN
off IN
stocks NNS
since IN
the DT
1987 CD
market NN
crash NN
; :
last JJ
Friday NNP
's POS
debacle NN
only RB
reinforced VBD
those DT
feelings NNS
. .

But CC
the DT
stock NN
market NN
, ,
despite IN
some DT
stomach-churning JJ
declines NNS
, ,
has VBZ
far RB
outperformed VBN
other JJ
securities NNS
over IN
extended VBN
periods NNS
. .

By IN
retreating VBG
to TO
the DT
apparent JJ
security NN
of IN
, ,
say VBP
, ,
money-market JJ
funds NNS
, ,
investors NNS
may MD
not RB
be VB
earning VBG
enough JJ
investment NN
return NN
to TO
pay VB
for IN
a DT
comfortable JJ
retirement NN
. .

`` ``
That DT
's VBZ
the DT
biggest JJS
risk NN
of IN
all DT
-- :
the DT
risk NN
of IN
not RB
meeting VBG
your PRP$
objectives NNS
, ,
'' ''
says VBZ
Steven NNP
B. NNP
Enright NNP
, ,
a DT
New NNP
York NNP
financial JJ
planner NN
with IN
Seidman NNP
Financial NNP
Services NNPS
. .

As IN
a DT
result NN
, ,
financial JJ
advisers NNS
say VBP
they PRP
take VBP
several JJ
steps NNS
when WRB
evaluating VBG
the DT
riskiness NN
of IN
clients NNS
' POS
portfolios NNS
. .

They PRP
estimate VBP
the DT
return NN
a DT
person NN
's POS
current JJ
portfolio NN
is VBZ
likely JJ
to TO
generate VB
over IN
time NN
, ,
along IN
with IN
a DT
standard JJ
deviation NN
that WDT
suggests VBZ
how WRB
much JJ
the DT
return NN
will MD
vary VB
year NN
by IN
year NN
. .

They PRP
try VBP
to TO
figure VB
out RP
the IN
long-term JJ
results NNS
the DT
person NN
needs VBZ
to TO
meet VB
major JJ
goals NNS
. .

And CC
they PRP
eyeball NN
types NNS
of IN
risk NN
that WDT
are VBP
not RB
easily RB
quantified VBN
. .

The DT
portfolios NNS
of IN
two CD
hypothetical JJ
families NNS
, ,
one CD
a DT
couple NN
at IN
retirement NN
age NN
and CC
another DT
a DT
two-income JJ
couple NN
at IN
age NN
45 CD
, ,
illustrate VB
several JJ
types NNS
of IN
risk NN
that IN
investors NNS
need VBP
to TO
consider VB
. .

For IN
instance NN
, ,
the DT
insured VBN
municipal JJ
bonds NNS
that WDT
dominate VBP
the DT
older JJR
couple NN
's POS
portfolio NN
were VBD
probably RB
selected VBN
in IN
large JJ
part NN
for IN
their PRP$
low JJ
repayment NN
risk NN
. .

But CC
they PRP
expose VBP
the DT
holders NNS
to TO
a DT
lot NN
of IN
inflation NN
risk NN
and CC
interest-rate NN
risk NN
. .

The DT
younger JJR
couple NN
's POS
stockholdings NNS
involve VBP
more JJR
risk NN
than IN
a DT
diversified JJ
stock NN
portfolio NN
because IN
the DT
bulk NN
of IN
the DT
money NN
is VBZ
in IN
a DT
single JJ
issue NN
. .

Note VB
that IN
the DT
younger JJR
couple NN
's POS
portfolio NN
has VBZ
a DT
higher JJR
expected VBN
annual JJ
return NN
, ,
10.1 CD
% NN
vs. IN
8.8 CD
% NN
, ,
as IN
calculated VBN
by IN
Seidman NNP
Financial NNP
Services NNPS
, ,
which WDT
is VBZ
the DT
financial-planning JJ
affiliate NN
of IN
BDO NNP
Seidman NNP
. .

That DT
largely RB
reflects VBZ
the DT
heavy JJ
stockholdings NNS
. .

But CC
one CD
price NN
paid VBN
for IN
the DT
higher JJR
expected VBN
return NN
is VBZ
greater RBR
short-term JJ
volatility NN
, ,
as IN
reflected VBN
in IN
the DT
higher JJR
standard JJ
deviation NN
that IN
Seidman NNP
estimates NNS
for IN
the DT
younger JJR
couple NN
's POS
portfolio NN
. .

-LRB- (
Here RB
's POS
how WRB
to TO
interpret VB
a DT
standard JJ
deviation NN
figure NN
: :
Take VB
the DT
expected VBN
return NN
and CC
add VB
one CD
standard JJ
deviation NN
to TO
it PRP
. .

Then RB
take VB
the DT
expected VBN
return NN
and CC
subtract VB
one CD
standard JJ
deviation NN
. .

In IN
two CD
of IN
three CD
years NNS
, ,
the DT
actual JJ
result NN
should MD
fall VB
within IN
that DT
range NN
if IN
all PDT
the DT
assumptions NNS
were VBD
accurate JJ
. .

Then RB
add VB
and CC
subtract VB
two CD
standard JJ
deviations NNS
to TO
get VB
a DT
wider JJR
range NN
. .

There EX
's VBZ
a DT
95 CD
% NN
probability NN
any DT
year NN
's POS
result NN
will MD
fall VB
in IN
the DT
range NN
. .
-RRB- )

Of IN
course NN
, ,
the DT
greater JJR
volatility NN
of IN
the DT
younger JJR
couple NN
's POS
portfolio NN
does VBZ
n't RB
necessarily RB
mean VB
those DT
investments NNS
are VBP
riskier JJR
in IN
terms NNS
of IN
meeting VBG
the DT
holders NNS
' POS
long-term JJ
goals NNS
. .

Indeed RB
, ,
the DT
older JJR
couple NN
's POS
portfolio NN
could MD
actually RB
be VB
riskier JJR
in IN
that DT
sense NN
if IN
the DT
expected VBN
return NN
wo MD
n't RB
generate VB
enough JJ
dollars NNS
to TO
meet VB
their PRP$
spending NN
plans NNS
. .

`` ``
They PRP
may MD
feel VB
emotionally RB
secure VB
now RB
because IN
they PRP
are VBP
not RB
heavily RB
in IN
the DT
stock NN
market NN
, ,
'' ''
says VBZ
John NNP
H. NNP
Cammack NNP
, ,
a DT
financial JJ
planner NN
with IN
Alexandra NNP
Armstrong NNP
Advisors NNP
Inc. NNP
in IN
Washington NNP
. .

`` ``
But CC
they PRP
may MD
pay VB
a DT
price NN
10 CD
or CC
20 CD
years NNS
in IN
the DT
future NN
. .
'' ''

Ms. NNP
Slater NNP
reports NNS
on IN
personal JJ
finance NN
from IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
New NNP
York NNP
bureau NN
. .

When WRB
it PRP
comes VBZ
to TO
investing VBG
, ,
trying VBG
to TO
weigh VB
risk NN
and CC
reward NN
can MD
seem VB
like IN
throwing VBG
darts NN
blindfolded VBN
: :
Investors NNS
do VBP
n't RB
know VB
the DT
actual JJ
returns NNS
that IN
securities NNS
will MD
deliver VB
, ,
or CC
the DT
ups NNS
and CC
downs NNS
that WDT
will MD
occur VB
along IN
the DT
way NN
. .

Looking VBG
to TO
the DT
past NN
can MD
provide VB
some DT
clues NNS
. .
Over IN
several JJ
decades NNS
, ,
for IN
instance NN
, ,
investors NNS
who WP
put VBP
up IN
with IN
the DT
stock NN
market NN
's POS
gyrations NNS
earned VBD
returns NNS
far RB
in IN
excess NN
of IN
those DT
on IN
bonds NNS
and CC
`` ``
cash NN
'' ''
investments NNS
like IN
Treasury NNP
bills NNS
. .

But CC
while IN
history NN
can MD
suggest VB
what WP
is VBZ
reasonable JJ
to TO
expect VB
there EX
's VBZ
no DT
guarantee NN
that IN
the DT
past NN
will MD
repeat VB
itself PRP
. .

For IN
instance NN
, ,
some DT
analysts NNS
believe VBP
bond NN
returns NNS
and CC
volatility NN
have VBP
moved VBN
permanently RB
closer JJR
to TO
those DT
of IN
the DT
stock NN
market NN
. .

And CC
returns NNS
on IN
cash NN
investments NNS
may MD
continue VB
to TO
exceed VB
inflation NN
by IN
a DT
wider JJR
margin NN
than IN
they PRP
did VBD
over IN
the DT
long-term JJ
past NN
. .

Portfolio NNP
A DT
: :
Retired NNP
couple NN
, ,
age NN
65 CD
; :
$ $
400,000 CD
portfolio NN
. .

Portfolio NNP
B NNP
: :
Two-income NN
couple NN
, ,
age NN
45 CD
; :
$ $
150,000 CD
portfolio NN
. .

A DT
letter NN
from IN
Senator NNP
John NNP
Kerry NNP
chides VBZ
us PRP
today NN
for IN
implying VBG
that IN
he PRP
had VBD
`` ``
flip-flopped JJ
'' ''
on IN
Manuel NNP
Noriega NNP
. .

He PRP
correctly RB
says VBZ
he PRP
has VBZ
been VBN
down RB
on IN
Noriega NNP
for IN
some DT
time NN
, ,
hence RB
his PRP$
criticism NN
of IN
administration NN
mishandling VBG
of IN
the DT
attempted VBN
coup NN
. .
Our PRP$
October NNP
12 CD
editorial NN
should MD
have VB
been VBN
more RBR
precise JJ
. .

It PRP
meant VBD
to TO
convey VB
our PRP$
hope NN
that IN
the DT
Senator NNP
and CC
other JJ
members NNS
of IN
the DT
congressional JJ
left VBN
are VBP
broadening VBG
their PRP$
dislike NN
of IN
Noriega NNP
to TO
include VB
other JJ
notorious JJ
Central NNP
American JJ
drug NN
runners NNS
. .

The DT
Sandinistas NNPS
of IN
Nicaragua NNP
, ,
for IN
example NN
, ,
also RB
are VBP
part NN
of IN
the DT
Castro-Medellin NNP
cartel NN
nexus NN
. .

In IN
his PRP$
letter NN
and CC
on IN
the DT
basis NN
of IN
his PRP$
losing NN
vote NN
Tuesday NNP
against IN
U.S. NNP
aid NN
for IN
the DT
Nicaraguan JJ
opposition NN
, ,
Senator NNP
Kerry NNP
makes VBZ
clear JJ
he PRP
has VBZ
not RB
made VBN
that IN
intellectual JJ
leap NN
. .

We PRP
were VBD
wrong JJ
. .

THROUGHOUT IN
THE DT
1980s CD
, ,
investors NNS
have VBP
been VBN
looking VBG
for IN
creative JJ
alternatives NNS
to TO
traditional JJ
modes NNS
of IN
financial JJ
planning NN
. .
Capital NNP
has VBZ
been VBN
democratized VBN
, ,
and CC
people NNS
want VBP
in RB
. .

Too RB
often RB
, ,
however RB
, ,
small JJ
investors NNS
are VBP
left VBN
with IN
the DT
same JJ
stale JJ
solutions NNS
that WDT
appealed VBD
to TO
previous JJ
generations NNS
of IN
fiduciary JJ
strategists NNS
. .

Now RB
a DT
startling JJ
new JJ
approach NN
is VBZ
available JJ
to TO
building VBG
your PRP$
financial JJ
portfolio NN
without IN
undue JJ
risk NN
, ,
without IN
extensive JJ
planning NN
and CC
without IN
hurting VBG
your PRP$
life NN
style NN
one CD
bit NN
! .

This DT
is VBZ
particularly RB
good JJ
news NN
for IN
those DT
who WP
hate VBP
risk NN
, ,
who WP
are VBP
incapable NN
of IN
doing VBG
extensive JJ
amounts NNS
of IN
planning NN
and CC
who WP
refuse VBP
to TO
see VB
their PRP$
life NN
styles NNS
hurt VBN
in IN
any DT
way NN
. .

You PRP
know VBP
who WP
you PRP
are VBP
. .

My PRP$
revolutionary JJ
system NN
is VBZ
also RB
useful JJ
for IN
those DT
who WP
have VBP
tried VBN
customary JJ
forms NNS
of IN
growing VBG
their PRP$
currency NN
cushion NN
. .

Like IN
all DT
Americans NNPS
seeking VBG
chronic JJ
prosperity NN
, ,
I PRP
do VBP
find VB
it PRP
necessary JJ
to TO
plunge VB
certain JJ
funds NNS
into IN
conservative JJ
monetary JJ
tools NNS
, ,
if IN
only RB
to TO
assuage VB
my PRP$
father-in-law NN
, ,
who WP
believes VBZ
in IN
such JJ
things NNS
. .

So RB
throughout IN
the DT
decade NN
I PRP
have VBP
maintained VBN
my PRP$
share NN
of IN
individual JJ
retirement NN
accounts NNS
and CC
CDs NNS
, ,
and CC
tinkered VBN
with IN
stocks NNS
, ,
bonds NNS
and CC
mutual JJ
funds NNS
, ,
as RB
well RB
as IN
preserving VBG
my PRP$
necessary JJ
position NN
in IN
the DT
residential JJ
real-estate NN
market NN
. .

Return NN
on IN
this DT
fine JJ
portfolio NN
has VBZ
been VBN
modest JJ
when WRB
it PRP
has VBZ
not RB
been VBN
negative JJ
. .

Figure NN
1 CD
demonstrates VBZ
the DT
performance NN
of IN
those DT
businesses NNS
I PRP
've VBP
invested VBN
in IN
during IN
this DT
prosperous JJ
decade NN
-LRB- (
see VB
accompanying VBG
illustration NN
-- :
WSJ NNP
Oct. NNP
20 CD
, ,
1989 CD
-RRB- )
. .

Oil-related JJ
properties NNS
suffered VBD
a DT
huge JJ
decline NN
until IN
I PRP
divested VBD
myself PRP
of IN
all DT
such JJ
stocks NNS
in IN
1985 CD
, ,
at IN
which WDT
point VBP
the DT
industry NN
, ,
while IN
not RB
lighting VBG
up IN
any DT
Christmas NNP
trees NNS
, ,
began VBD
a DT
slow JJ
recovery NN
. .

Likewise RB
, ,
mutual JJ
funds NNS
remained VBD
relatively RB
flat JJ
until IN
I PRP
made VBD
what WP
was VBD
, ,
for IN
me PRP
, ,
a DT
serious JJ
investment NN
. .

By IN
1987 CD
, ,
these DT
properties NNS
were VBD
in IN
a DT
tailspin NN
, ,
causing VBG
my PRP$
broker NN
at IN
Pru-Bache NNP
to TO
remark VB
that IN
she PRP
'd MD
`` ``
never RB
seen VBN
anything NN
like IN
it PRP
. .
'' ''

Concerned NNP
for IN
her PRP$
state NN
of IN
mind NN
, ,
I PRP
dropped VBD
them PRP
-- :
and CC
the DT
market NN
instantly RB
began VBD
its PRP$
steady JJ
climb NN
back RB
to TO
health NN
. .

Perhaps RB
most RBS
dramatic JJ
was VBD
the DT
performance NN
of IN
the DT
metropolitan JJ
New NNP
York NNP
real-estate NN
market NN
, ,
which WDT
was VBD
booming JJ
until IN
I PRP
entered VBD
it PRP
in IN
late JJ
1988 CD
, ,
at IN
which WDT
time NN
it PRP
posted VBD
the DT
first JJ
negative JJ
compound NN
annual JJ
growth NN
rate NN
in IN
years NNS
. .

Disgusted VBN
, ,
I PRP
cast VBP
around IN
for IN
a DT
different JJ
way NN
to TO
plan VB
my PRP$
asset NN
distribution NN
, ,
and CC
with IN
hardly RB
any DT
heavy JJ
breathing VBG
the DT
answer NN
struck VBD
me PRP
: :
I PRP
was VBD
doing VBG
it PRP
already RB
! .

We PRP
've VBP
all DT
got VBN
money NN
to TO
spend VB
, ,
some DT
of IN
it PRP
clearly RB
disposable JJ
since IN
we PRP
keep VBP
disposing VBG
of IN
it PRP
. .

Bank NNP
it PRP
? .

Not RB
really RB
! .

Sock VB
it PRP
away RB
in IN
long-term JJ
instruments NNS
? .

Nonsense NN
! .

Daily NNP
living VBG
is VBZ
the DT
best JJS
possible JJ
investment NN
! .

Your PRP$
priorities NNS
may MD
be VB
different JJ
, ,
but CC
here RB
in IN
Figure NN
2 CD
is VBZ
where WRB
I PRP
've VBP
chosen VBN
to TO
build VB
for IN
the DT
future NN
: :
personal JJ
space NN
; :
automotive JJ
pursuits NNS
; :
children NNS
's POS
toys NNS
; :
gardening NN
equipment NN
, ,
bulbs NNS
and CC
shrubs NNS
; :
and CC
finally RB
, ,
entertainment NN
, ,
perhaps RB
the DT
best JJS
investment NN
of IN
all DT
. .
All DT
have NN
paid VBN
off IN
for IN
me PRP
in IN
double-digit JJ
annual JJ
growth NN
and CC
continue VB
to TO
provide VB
significant JJ
potential NN
. .

At IN
least JJS
, ,
according VBG
to TO
my PRP$
calculations NNS
. .

Personal JJ
space NN
-LRB- (
Figure NN
3 CD
-RRB- )
has VBZ
grown VBN
35 CD
% NN
annually RB
over IN
the DT
course NN
of IN
the DT
decade NN
, ,
a DT
performance NN
that WDT
would MD
compare VB
positively RB
with IN
an DT
investment NN
in IN
, ,
say VBP
, ,
synthetic-leather JJ
products NNS
for IN
the DT
interiors NNS
of IN
cold-weather JJ
vehicles NNS
, ,
which WDT
my PRP$
cousin NN
got VBD
into IN
and CC
sort NN
of IN
regrets VBZ
to TO
this DT
day NN
. .

The DT
assortment NN
of IN
expensive JJ
children NNS
's POS
toys NNS
that IN
I PRP
have VBP
purchased VBN
wisely RB
at IN
a DT
host NN
of IN
discount-toy JJ
brokerage NN
firms NNS
-LRB- (
Figure NN
4 CD
-RRB- )
has VBZ
increased VBN
handsomely RB
in IN
total JJ
asset NN
value NN
far RB
beyond IN
any DT
personal JJ
investment NN
except IN
, ,
perhaps RB
, ,
for IN
my PRP$
record NN
collection NN
, ,
whose WP$
worth JJ
, ,
I PRP
think VBP
it PRP
's VBZ
safe JJ
to TO
say VB
, ,
is VBZ
incalculable JJ
. .

Continued VBN
investment NN
in IN
my PRP$
1984 CD
subcompact NN
has VBZ
been VBN
part NN
of IN
my PRP$
strategy NN
-LRB- (
Figure NN
5 NN
-RRB- )
, ,
with IN
present JJ
annual JJ
contributions NNS
now RB
equaling VBG
more JJR
than IN
60 CD
% NN
of IN
the DT
car NN
's POS
original JJ
value NN
. .

According VBG
to TO
my PRP$
calculations NNS
, ,
these DT
outlays NNS
should MD
have VB
brought VBN
the DT
value NN
of IN
my PRP$
sedan NN
to TO
more JJR
than IN
$ $
22,000 CD
on IN
the DT
open JJ
market NN
-LRB- (
Figure NN
6 CD
-RRB- )
, ,
where WRB
I PRP
plan VBP
to TO
offer VB
it PRP
shortly RB
. .

Expansion NN
of IN
my PRP$
living NN
space NN
has VBZ
produced VBN
an DT
obvious JJ
need NN
for IN
maintenance NN
and CC
construction NN
of IN
suitable JJ
lawns NNS
, ,
shrubs NNS
and CC
bushes NNS
fitting JJ
to TO
its PRP$
suburban JJ
locale NN
. .

I PRP
have VBP
thus RB
committed VBN
sufficient JJ
personal JJ
outlay NN
to TO
ensure VB
that IN
my PRP$
grounds NNS
and CC
lodgings NNS
will MD
never RB
be VB
short NN
of IN
greens NNS
and CC
flowers NNS
. .

My PRP$
initial JJ
stake NN
in IN
this DT
blooming VBG
enterprise NN
has VBZ
grown VBN
tenfold RB
, ,
according VBG
to TO
my PRP$
conservative JJ
calculations NNS
. .

At IN
the DT
same JJ
time NN
, ,
my PRP$
share NN
in IN
a DT
wide JJ
variety NN
of IN
entertainment NN
pursuits NNS
has VBZ
given VBN
perhaps RB
the DT
most RBS
dramatic JJ
demonstration NN
of IN
the DT
benefits NNS
of IN
creative JJ
personal JJ
financial JJ
planning NN
. .

Over IN
the DT
course NN
of IN
the DT
decade NN
, ,
for IN
instance NN
, ,
my PRP$
return NN
on IN
investment NN
in IN
the DT
area NN
of IN
poker NN
alone RB
-LRB- (
Figures NNS
7A CD
and CC
7B CD
-RRB- )
has VBZ
been VBN
most RBS
impressive JJ
, ,
showing VBG
bodacious JJ
annual JJ
expansion NN
with IN
-- :
given VBN
the DT
way NN
my PRP$
associates NNS
play VBP
-- :
no DT
sign NN
of IN
abatement NN
into IN
the DT
1990s CD
and CC
beyond RB
. .

With IN
this DT
personal JJ
strategy NN
firmly RB
in IN
place NN
, ,
I PRP
look VBP
forward RB
to TO
years NNS
of IN
fine JJ
life-style NN
investments NNS
and CC
increasing VBG
widespread JJ
leverage NN
. .

My PRP$
kids NNS
' POS
college NN
education NN
looms VBZ
as IN
perhaps RB
the DT
greatest JJS
future NN
opportunity NN
for IN
spending NN
, ,
although IN
I PRP
'll MD
probably RB
have VB
to TO
cash VB
in IN
their PRP$
toy NN
portfolio NN
to TO
take VB
advantage NN
of IN
it PRP
. .

But CC
with IN
every DT
step NN
I PRP
take VBP
, ,
I PRP
'm VBP
building VBG
wealth NN
. .

You PRP
can MD
, ,
too RB
, ,
if IN
you PRP
, ,
like IN
me PRP
, ,
refuse VB
to TO
bite VB
the DT
bullet NN
. .

So RB
go VB
out IN
there EX
and CC
eat VB
that DT
debt NN
. .

You PRP
're VBP
right NN
there RB
in IN
the DT
mainstream NN
of IN
American JJ
business NN
, ,
building NN
value NN
on IN
the DT
back RB
of IN
insupportable JJ
expenditures NNS
. .

Henry NNP
Kravis NNP
, ,
watch VB
out RB
! .

Mr. NNP
Schwartz NNP
is VBZ
a DT
business NN
executive NN
and CC
writer NN
in IN
New NNP
York NNP
. .

WHEN WRB
JAMES NNP
SCHWARTZ NNP
was VBD
just RB
a DT
lad NN
his PRP$
father NN
gave VBD
him PRP
a DT
piece NN
of IN
career NN
advice NN
. .

`` ``
He PRP
told VBD
me PRP
to TO
choose VB
an DT
area NN
where WRB
just RB
by IN
being VBG
mediocre JJ
I PRP
could MD
be VB
great JJ
, ,
'' ''
recalls VBZ
Mr. NNP
Schwartz NNP
, ,
now RB
40 CD
. .

He PRP
tried VBD
management NN
consulting NN
, ,
traded VBN
in IN
turquoise JJ
for IN
a DT
while NN
, ,
and CC
even RB
managed VBD
professional JJ
wrestlers NNS
. .

Now RB
he PRP
has VBZ
settled VBN
into IN
a DT
career NN
that WDT
fits VBZ
the DT
bill NN
-- :
financial JJ
planning NN
. .

It PRP
should MD
be VB
noted VBN
that IN
Mr. NNP
Schwartz NNP
, ,
who WP
operates VBZ
out IN
of IN
Englewood NNP
, ,
Colo. NNP
, ,
is VBZ
a DT
puckish JJ
sort NN
who WP
likes VBZ
to TO
give VB
his PRP$
colleagues NNS
the DT
needle NN
. .

But CC
in IN
this DT
case NN
the DT
needle NN
has VBZ
a DT
very RB
sharp JJ
point NN
. .

Though IN
it PRP
's VBZ
probably RB
safe JJ
to TO
assume VB
that IN
the DT
majority NN
of IN
financial JJ
planners NNS
are VBP
honest JJ
and CC
even RB
reasonably RB
competent JJ
, ,
the DT
fact NN
remains VBZ
that IN
, ,
as IN
one CD
wag NN
puts VBZ
it PRP
, ,
`` ``
anybody NN
who WP
can MD
fog VB
a DT
mirror NN
'' ''
can MD
call VB
himself PRP
a DT
financial JJ
planner NN
. .

Planners NNS
now JJ
influence NN
the DT
investment NN
of IN
several JJ
hundred CD
billion CD
dollars NNS
, ,
but CC
in IN
effect NN
they PRP
operate VBP
in IN
the DT
dark NN
. .

There EX
is VBZ
no DT
effective JJ
regulation NN
of IN
planners NNS
, ,
no DT
accepted VBN
standard JJ
for IN
admission NN
into IN
their PRP$
ranks NNS
-- :
a DT
dog NN
got VBD
into IN
one CD
trade NN
group NN
-- :
no DT
way NN
to TO
assess VB
their PRP$
performance NN
, ,
no DT
way NN
even RB
to TO
know VB
how WRB
many NN
of IN
them PRP
there EX
are VBP
-LRB- (
estimates NNS
range VBP
from IN
60,000 CD
to TO
450,000 CD
-RRB- )
. .

All DT
anyone NN
need NN
do VBP
is VBZ
hang VB
up IN
a DT
shingle NN
and CC
start VB
planning NN
. .

So RB
it PRP
should MD
come VB
as IN
no DT
shock NN
that IN
the DT
profession NN
, ,
if IN
that DT
's VBZ
what WP
it PRP
is VBZ
, ,
has VBZ
attracted VBN
a DT
lot NN
of IN
people NNS
whose WP$
principal JJ
talents NNS
seem VBP
to TO
be VB
frittering VBG
away RB
or CC
flat-out JJ
stealing VBG
their PRP$
clients NNS
' POS
money NN
. .

Alarmed JJ
, ,
state NN
and CC
federal JJ
authorities NNS
are VBP
trying VBG
to TO
devise VB
ways NNS
to TO
certify VB
and CC
regulate VB
planners NNS
. .

Industry NN
groups NNS
and CC
reputable JJ
planners NNS
who WP
are VBP
members NNS
of IN
them PRP
want VBP
comprehensive JJ
standards NNS
, ,
too RB
; :
they PRP
're VBP
tired VBN
of IN
seeing VBG
practitioners NNS
depicted VBN
collectively RB
in IN
the DT
business NN
press NN
as IN
dumber JJR
than IN
chimpanzees NNS
and CC
greedier JJR
than IN
a DT
herd NN
of IN
swine NNS
. .

But CC
reform NN
has VBZ
n't RB
taken VBN
hold VB
yet RB
. .

`` ``
The DT
industry NN
is VBZ
still RB
pretty RB
much JJ
in IN
its PRP$
Wild NNP
West NNP
days NNS
, ,
'' ''
says VBZ
Scott NNP
Stapf NNP
, ,
director NN
of IN
investor NN
education NN
for IN
the DT
North NNP
American NNP
Securities NNPS
Administrators NNP
Association NNP
. .

An DT
admittedly RB
limited JJ
survey NN
by IN
NASAA NNP
, ,
whose WP$
members NNS
are VBP
state NN
securities-law NN
regulators NNS
, ,
found VBD
that IN
between IN
1986 CD
and CC
1988 CD
`` ``
fraud NN
and CC
abuse NN
'' ''
by IN
financial JJ
planners NNS
cost VBP
22,000 CD
investors NNS
$ $
400 CD
million CD
. .

The DT
rogues NNS
' POS
gallery NN
of IN
planners NNS
involved VBN
includes VBZ
some DT
convicted VBN
felons NNS
, ,
a DT
compulsive JJ
gambler NN
or CC
two CD
, ,
various JJ
businessmen NNS
who WP
had VBD
planned VBN
their PRP$
own JJ
previous JJ
ventures NNS
right NN
into IN
bankruptcy NN
, ,
and CC
one CD
man NN
who WP
scammed VBD
his PRP$
wife NN
's POS
grandmother NN
. .

What WP
's VBZ
more JJR
, ,
the DT
losses NNS
they PRP
and CC
the DT
others NNS
caused VBN
`` ``
are VBP
just RB
what WP
we PRP
are VBP
stumbling VBG
over IN
, ,
'' ''
says VBZ
Mr. NNP
Stapf NNP
, ,
adding VBG
that IN
the DT
majority NN
of IN
misdeeds NNS
probably RB
go VBP
undetected JJ
. .

So RB
do VBP
just RB
about IN
all PDT
the DT
losses NNS
that WDT
could MD
be VB
attributed VBN
to TO
the DT
sheer JJ
incompetence NN
of IN
unqualified JJ
planners NNS
. .

Nobody NN
can MD
estimate VB
the DT
toll NN
, ,
but CC
John NNP
Gargan NNP
, ,
a DT
Tampa NNP
, ,
Fla. NNP
, ,
planner NN
and CC
head NN
of IN
one CD
trade NN
group NN
, ,
the DT
International NNP
Association NNP
of IN
Registered VBN
Financial NNP
Planners NNS
, ,
thinks VBZ
the DT
danger NN
to TO
investors NNS
from IN
incompetence NN
is VBZ
`` ``
humongous JJ
, ,
'' ''
far RB
greater JJR
than IN
that DT
from IN
crookery NN
. .

His PRP$
group NN
, ,
like IN
others NNS
, ,
wants VBZ
minimum JJ
standards NNS
applied VBN
to TO
all DT
who WP
call VBP
themselves PRP
financial JJ
planners NNS
. .

Surveying VBG
all PDT
this DT
, ,
some DT
people NNS
now RB
think VBP
the DT
best JJS
planner NN
might MD
be VB
no DT
planner NN
at IN
all DT
. .

For IN
most RBS
investors NNS
`` ``
the DT
benefits NNS
just RB
are VBP
n't RB
worth JJ
the DT
risks NNS
, ,
'' ''
says VBZ
Barbara NNP
Roper NNP
, ,
who WP
follows VBZ
financial-planning JJ
issues NNS
for IN
the DT
Consumer NNP
Federation NNP
of IN
America NNP
, ,
a DT
consumer-advocacy JJ
organization NN
based VBN
in IN
Washington NNP
. .

She PRP
concedes VBZ
that IN
such JJ
a DT
position NN
is VBZ
`` ``
unfair JJ
'' ''
to TO
the DT
thousands NNS
of IN
conscientious JJ
and CC
qualified VBN
people NNS
plying VBG
the DT
trade NN
, ,
but CC
as IN
a DT
consumer NN
advocate NN
she PRP
feels VBZ
impelled VBN
to TO
take VB
it PRP
. .

She PRP
says VBZ
her PRP$
group NN
used VBN
to TO
give VB
tips NNS
on IN
selecting VBG
planners NNS
-- :
check NN
educational JJ
and CC
experience NN
credentials NNS
, ,
consult VB
regulators NNS
and CC
Better NNP
Business NNP
Bureaus NNP
-- :
but CC
found VBD
that IN
even RB
some DT
people NNS
who WP
took VBD
these DT
steps NNS
`` ``
were VBD
still RB
getting VBG
ripped VBN
off IN
. .
'' ''

The DT
bad JJ
news NN
, ,
however RB
, ,
has VBZ
n't RB
been VBN
bad JJ
enough RB
to TO
kill VB
the DT
growing VBG
demand NN
for IN
financial JJ
planning NN
. .

The DT
Tax NNP
Reform NNP
Act NNP
of IN
1986 CD
, ,
which WDT
eliminated VBD
many JJ
tax NN
shelters NNS
peddled VBN
by IN
planners NNS
, ,
and CC
the DT
stock NN
market NN
crash NN
the DT
next JJ
year NN
did VBD
cause VBG
a DT
sharp JJ
slump NN
in IN
such JJ
demand NN
, ,
and CC
many JJ
planners NNS
had VBD
to TO
make VB
an DT
unplanned JJ
exit NN
from IN
the DT
business NN
. .

But CC
membership NN
in IN
the DT
International NNP
Association NNP
of IN
Financial NNP
Planners NNS
-LRB- (
IAFP NNP
-RRB- )
, ,
the DT
industry NN
's POS
biggest JJS
trade NN
group NN
, ,
is VBZ
still RB
nearly RB
triple JJ
what WP
it PRP
was VBD
in IN
1980 CD
, ,
and CC
it PRP
's VBZ
believed VBD
that IN
the DT
ranks NNS
of IN
planners NNS
who WP
do VBP
n't RB
belong VB
to TO
any DT
group NN
have VBP
soared VBN
as IN
well RB
. .

An DT
estimated VBN
10 CD
million CD
Americans NNPS
are VBP
now RB
using VBG
financial JJ
planners NNS
, ,
and CC
the DT
pool NN
of IN
capital NN
they PRP
influence VBP
is VBZ
enormous JJ
. .

A DT
survey NN
of IN
54,000 CD
of IN
them PRP
conducted VBN
by IN
the DT
IAFP NNP
in IN
April NNP
showed VBD
that IN
these DT
practitioners NNS
alone RB
had VBD
controlled VBN
or CC
guided VBD
the DT
investment NN
of IN
$ $
154 CD
billion CD
of IN
their PRP$
clients NNS
' POS
money NN
in IN
the DT
previous JJ
12 CD
months NNS
. .

The DT
sheer JJ
number NN
of IN
planners NNS
makes VBZ
the DT
business NN
extremely RB
difficult JJ
, ,
if IN
not RB
impossible JJ
, ,
to TO
regulate VB
. .

Even RB
the DT
minority NN
of IN
them PRP
who WP
must MD
register VB
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
as IN
`` ``
investment NN
advisers NNS
'' ''
-- :
people NNS
who WP
are VBP
in IN
the DT
business NN
of IN
counseling NN
others NNS
on IN
the DT
buying VBG
and CC
selling VBG
of IN
securities NNS
specifically RB
-- :
have VBP
been VBN
enough RB
to TO
swamp VB
the DT
agency NN
's POS
capacity NN
. .

The DT
SEC NNP
has VBZ
only RB
about IN
200 CD
staffers NNS
assigned VBN
to TO
keep VB
tabs NNS
on IN
investment NN
advisers NNS
-- :
about IN
the DT
same JJ
as IN
in IN
1980 CD
-- :
even RB
though IN
the DT
number NN
of IN
advisers NNS
has VBZ
tripled VBN
to TO
about IN
15,000 CD
over IN
the DT
past JJ
decade NN
. .

Currently RB
, ,
a DT
registered VBN
investment NN
adviser NN
can MD
expect VB
an DT
SEC NNP
audit NN
only RB
once RB
every DT
12 CD
years NNS
. .

A DT
lot NN
of IN
bad JJ
things NNS
can MD
happen VB
in IN
12 CD
years NNS
. .

`` ``
It PRP
does VBZ
n't RB
take VB
a DT
rocket NN
scientist NN
to TO
figure VB
out IN
our PRP$
problem NN
, ,
'' ''
says VBZ
Kathryn NNP
McGrath NNP
, ,
director NN
of IN
the DT
SEC NNP
's POS
division NN
of IN
investment NN
management NN
. .
So RB
the DT
SEC NNP
has VBZ
proposed VBN
to TO
Congress NNP
that IN
much NN
of IN
the DT
job NN
of IN
oversight NN
be VB
turned VBN
over IN
to TO
an DT
industry-funded JJ
, ,
self-regulatory JJ
organization NN
patterned VBN
on IN
the DT
National NNP
Association NNP
of IN
Securities NNPS
Dealers NNS
, ,
which WDT
operates VBZ
in IN
the DT
brokerage NN
business NN
. .

Such JJ
an DT
organization NN
could MD
, ,
among IN
other JJ
things NNS
, ,
set VBN
minimum JJ
standards NNS
for IN
competence NN
, ,
ethics NNS
and CC
finances NNS
and CC
punish VB
those DT
investment NN
advisers NNS
who WP
broke VBD
the DT
rules NNS
. .

The DT
proposal NN
has VBZ
set VBN
off IN
a DT
lively JJ
debate NN
within IN
an DT
industry NN
that WDT
was VBD
far RB
from IN
united VBN
to TO
begin VB
with RB
. .

Mr. NNP
Schwartz NNP
, ,
the DT
puckish JJ
planner NN
from IN
Englewood NNP
, ,
Colo. NNP
, ,
says VBZ
that IN
allowing VBG
the DT
business NN
to TO
police VB
itself PRP
would MD
be VB
`` ``
like IN
putting VBG
Dracula NNP
in IN
charge NN
of IN
the DT
blood NN
bank NN
. .
'' ''

Mr. NNP
Gargan NNP
, ,
the DT
Tampa NNP
planner NN
who WP
heads VBZ
one CD
trade NN
group NN
, ,
favors VBZ
simply RB
assessing VBG
the DT
industry NN
and CC
giving VBG
the DT
money NN
to TO
the DT
SEC NNP
to TO
hire VB
more JJR
staff NN
. .

-LRB- (
Mr. NNP
Gargan NNP
's POS
views NNS
are VBP
not RB
greeted VBN
with IN
wild JJ
enthusiasm NN
over IN
at IN
the DT
IAFP NNP
, ,
the DT
major JJ
industry NN
organization NN
. .

When WRB
the DT
IAFP NNP
recently RB
assembled VBD
other JJ
industry NN
groups NNS
to TO
discuss VB
common JJ
standards NNS
that WDT
might MD
be VB
applied VBN
to TO
planners NNS
, ,
Mr. NNP
Gargan NNP
's POS
group NN
was VBD
excluded VBN
. .

That DT
may MD
be VB
because IN
Mr. NNP
Gargan NNP
, ,
smarting VBG
at IN
what WP
he PRP
considered VBD
slurs NNS
on IN
his PRP$
membership NN
standards NNS
made VBN
by IN
the DT
rival JJ
group NN
, ,
enrolled VBD
his PRP$
dog NN
, ,
Beauregard NNP
, ,
as IN
a DT
member NN
of IN
the DT
IAFP NNP
. .

Then RB
he PRP
sent VBD
the DT
pooch NN
's POS
picture NN
with IN
the DT
certificate NN
of IN
membership NN
-- :
it PRP
was VBD
made VBN
out IN
to TO
`` ``
Boris NNP
` ``
Bo NNP
' ''
Regaard NNP
'' ''
-- :
to TO
every DT
newspaper NN
he PRP
could MD
think VB
of IN
. .
-RRB- )

The DT
states NNS
have VBP
their PRP$
own JJ
ideas NNS
about IN
regulation NN
and CC
certification NN
. .

NASAA NNP
, ,
the DT
organization NN
of IN
state NN
securities NNS
regulators NNS
, ,
is VBZ
pushing VBG
for IN
a DT
model NN
regulatory JJ
statute NN
already RB
adopted VBD
in IN
eight CD
states NNS
. .

It PRP
requires VBZ
financial JJ
planners NNS
to TO
register VB
with IN
states NNS
, ,
pass VB
competency NN
tests NNS
and CC
reveal VB
to TO
customers NNS
any DT
conflicts NNS
of IN
interest NN
. .

The DT
most RBS
common JJ
conflict NN
involves VBZ
compensation NN
. .

NASAA NNP
estimates NNS
that IN
nearly RB
90 CD
% NN
of IN
planners NNS
receive VBP
some DT
or CC
all DT
of IN
their PRP$
income NN
from IN
sales NNS
commissions NNS
on IN
securities NNS
, ,
insurance NN
and CC
other JJ
financial JJ
products NNS
they PRP
recommend VBP
. .

The DT
issue NN
: :
Is VBZ
the DT
planner NN
putting VBG
his PRP$
clients NNS
into IN
the DT
best JJS
investments NNS
, ,
or CC
the DT
ones NNS
that WDT
garner VBP
the DT
biggest JJS
commissions NNS
? .

In IN
1986 CD
the DT
New NNP
York NNP
attorney NN
general NN
's POS
office NN
got VBD
an DT
order NN
from IN
a DT
state NN
court NN
in IN
Albany NNP
shutting VBG
down RB
First NNP
Meridian NNP
Corp. NNP
, ,
an DT
Albany NNP
financial-planning JJ
firm NN
that WDT
had VBD
invested VBN
$ $
55 NN
million CD
on IN
behalf NN
of IN
nearly RB
1,000 CD
investors NNS
. .

In IN
its PRP$
notice NN
of IN
action NN
, ,
the DT
attorney NN
general NN
said VBD
the DT
company NN
had VBD
promised VBN
to TO
put VB
clients NNS
into IN
`` ``
balanced JJ
'' ''
investment NN
portfolios NNS
; :
instead RB
, ,
the DT
attorney NN
general JJ
alleged VBN
, ,
the DT
company NN
consistently RB
shoved VBD
unwary JJ
customers NNS
into IN
high-risk JJ
investments NNS
in IN
paintings NNS
, ,
coins NNS
and CC
Florida NNP
condos NNS
. .

Those DT
investments NNS
paid VBD
big JJ
commissions NNS
to TO
First NNP
Meridian NNP
, ,
payments NNS
investors NNS
were VBD
never RB
told VBN
about IN
, ,
the DT
attorney NN
general JJ
alleged VBN
. .

Investors NNS
were VBD
further RB
assured VBN
that IN
only RB
those DT
with IN
a DT
minimun NN
net JJ
worth NN
would MD
be VB
accepted VBN
. .

In IN
practice NN
, ,
the DT
attorney NN
general JJ
alleged VBN
in IN
an DT
affidavit NN
, ,
if IN
an DT
investor NN
had VBD
access NN
to TO
cash VB
`` ``
the DT
chances NNS
of IN
being VBG
turned VBN
down RB
by IN
First NNP
Meridian NNP
were VBD
about IN
as RB
probable JJ
as IN
being VBG
rejected VBN
by IN
the DT
Book-of-the-Month NNP
Club NNP
. .
'' ''

And CC
, ,
the DT
attorney NN
general NN
added VBD
, ,
First NNP
Meridian NNP
's POS
president NN
, ,
Roger NNP
V. NNP
Sala NNP
, ,
portrayed VBD
himself PRP
as IN
a DT
`` ``
financial JJ
expert NN
'' ''
when WRB
his PRP$
qualifications NNS
largely RB
consisted VBD
of IN
a DT
high-school NN
diploma NN
, ,
work NN
as IN
a DT
real-estate NN
and CC
insurance NN
salesman NN
, ,
and CC
a DT
stint NN
as IN
supervisor NN
at IN
a DT
highway NN
toll NN
booth NN
. .

First NNP
Meridian NNP
and CC
its PRP$
officials NNS
are VBP
currently RB
under IN
investigation NN
for IN
possible JJ
criminal JJ
wrongdoing NN
, ,
according VBG
to TO
a DT
spokeswoman NN
for IN
the DT
attorney NN
general JJ
. .

Harry NNP
Manion NNP
, ,
Mr. NNP
Sala NNP
's POS
attorney NN
, ,
says VBZ
his PRP$
client NN
denies VBZ
any DT
wrongdoing NN
and CC
adds VBZ
that IN
the DT
attorney NN
general NN
's POS
contentions NNS
about IN
First NNP
Meridian NNP
's POS
business NN
practices NNS
are VBP
incorrect JJ
. .

As IN
for IN
Mr. NNP
Sala NNP
's POS
qualifications NNS
, ,
`` ``
the DT
snooty JJ
attorneys NNS
for IN
the DT
state NN
of IN
New NNP
York NNP
decided VBD
Mr. NNP
Sala NNP
was VBD
n't RB
qualified VBN
because IN
he PRP
did VBD
n't RB
have VB
a DT
Harvard NNP
degree NN
, ,
'' ''
says VBZ
Mr. NNP
Manion NNP
. .

Civil JJ
suits NNS
against IN
planners NNS
by IN
clients NNS
seeking VBG
recovery NN
of IN
funds NNS
are VBP
increasingly RB
common JJ
. .

Two CD
such JJ
actions NNS
, ,
both DT
filed VBN
earlier RBR
this DT
year NN
in IN
Georgia NNP
state NN
court NN
in IN
Atlanta NNP
, ,
could MD
be VB
particularly RB
embarrassing JJ
to TO
the DT
industry NN
: :
both DT
name NN
J. NNP
Chandler NNP
Peterson NNP
, ,
an DT
Atlanta NNP
financial JJ
planner NN
who WP
is VBZ
a DT
founder NN
and CC
past JJ
chairman NN
of IN
the DT
IAFP NNP
, ,
as IN
defendant NN
. .

One CD
suit NN
, ,
filed VBN
by IN
more JJR
than IN
three CD
dozen NN
investors NNS
, ,
charges VBZ
that IN
Mr. NNP
Peterson NNP
misused VBD
much NN
of IN
the DT
$ $
9.7 CD
million CD
put VB
into IN
a DT
limited JJ
partnership NN
that IN
he PRP
operated VBD
and CC
promoted VBN
, ,
spending VBG
some DT
of IN
it PRP
to TO
pay VB
his PRP$
own JJ
legal JJ
bills NNS
and CC
to TO
invest VB
in IN
other JJ
companies NNS
in IN
which WDT
he PRP
had VBD
an DT
interest NN
. .

Those DT
companies NNS
, ,
in IN
turn NN
, ,
paid VBN
Mr. NNP
Peterson NNP
commissions VBZ
and CC
fees NNS
, ,
the DT
suit NN
alleges NNS
. .

The DT
other JJ
suit NN
was VBD
filed VBN
by IN
two CD
men NNS
in IN
a DT
dispute NN
over IN
$ $
100,000 CD
investments NNS
each DT
says VBZ
he PRP
made VBD
with IN
Mr. NNP
Peterson NNP
as IN
part NN
of IN
an DT
effort NN
to TO
purchase VB
the DT
Bank NNP
of IN
Scottsdale NNP
in IN
Scottsdale NNP
, ,
Ariz NNP
. .

One CD
plaintiff NN
, ,
a DT
doctor NN
, ,
testified VBD
in IN
an DT
affidavit NN
that IN
he PRP
also RB
gave VBD
Mr. NNP
Peterson NNP
$ $
50,000 CD
to TO
join VB
a DT
sort NN
of IN
investment NN
club NN
which WDT
essentially RB
gave VBD
the DT
physician NN
`` ``
the DT
privilege NN
of IN
making VBG
additional JJ
investments NNS
'' ''
with IN
Mr. NNP
Peterson NNP
. .

In IN
affidavits NNS
, ,
each DT
plaintiff NN
claims NNS
Mr. NNP
Peterson NNP
promised VBD
the DT
bank NN
purchase NN
would MD
be VB
completed VBN
by IN
the DT
end NN
of IN
1988 CD
or CC
the DT
money NN
returned VBD
. .

Mr. NNP
Peterson NNP
took VBD
the DT
plaintiffs NNS
' POS
and CC
other JJ
investors NNS
' POS
money NN
to TO
a DT
meeting NN
of IN
the DT
bank NN
's POS
directors NNS
. .

Wearing VBG
a DT
business NN
suit NN
and CC
western-style JJ
hat NN
and CC
boots NNS
, ,
he PRP
opened VBD
up IN
his PRP$
briefcase NN
and CC
dumped VBD
$ $
1 CD
million CD
in IN
cash NN
on IN
a DT
table NN
in IN
front NN
of IN
the DT
directors NNS
, ,
says VBZ
Myron NNP
Diebel NNP
, ,
the DT
bank NN
's POS
president NN
. .

`` ``
He PRP
said VBD
he PRP
wanted VBD
to TO
show VB
the DT
color NN
of IN
his PRP$
money NN
, ,
'' ''
recalls VBZ
Mr. NNP
Diebel NNP
. .

Bank NN
officials NNS
, ,
however RB
, ,
showed VBD
him PRP
the DT
door NN
, ,
and CC
the DT
sale NN
never RB
came VBD
off RB
. .

According VBG
to TO
the DT
suit NN
, ,
Mr. NNP
Peterson NNP
has VBZ
yet RB
to TO
return VB
the DT
plaintiffs NNS
' POS
investment NN
. .

They PRP
want VBP
it PRP
back RB
. .

Mr. NNP
Peterson NNP
declines VBZ
to TO
comment VB
on IN
specific JJ
allegations NNS
in IN
the DT
two CD
suits NNS
, ,
saying VBG
he PRP
prefers VBZ
to TO
save VB
such JJ
responses NNS
for IN
court NN
. .

But CC
he PRP
does VBZ
say VBP
that IN
all DT
of IN
his PRP$
activities NNS
have VBP
been VBN
`` ``
entirely RB
proper JJ
. .
'' ''

On IN
the DT
suit NN
by IN
the DT
limited JJ
partners NNS
, ,
he PRP
says VBZ
he PRP
is VBZ
considering VBG
a DT
defamation NN
suit NN
against IN
the DT
plaintiffs NNS
. .

The DT
suit NN
, ,
he PRP
adds VBZ
, ,
`` ``
is VBZ
almost RB
in IN
the DT
nature NN
of IN
a DT
vendetta NN
by IN
a DT
handful NN
of IN
disgruntled JJ
people NNS
. .
'' ''

Rearding VBG
the DT
suit NN
over IN
the DT
bank NN
bid NN
, ,
Mr. NNP
Peterson NNP
says VBZ
it PRP
is VBZ
filled VBN
with IN
`` ``
inflammatory JJ
language NN
and CC
half NN
truths NNS
. .
'' ''

He PRP
declines VBZ
to TO
go VB
into IN
specifics NNS
. .

Mr. NNP
Peterson NNP
says VBZ
the DT
suits NNS
against IN
him PRP
are VBP
less JJR
a DT
measure NN
of IN
his PRP$
work NN
than IN
they PRP
are VBP
a DT
`` ``
sign NN
of IN
the DT
times NNS
'' ''
in IN
which WDT
people NNS
generally RB
are VBP
more RBR
prone JJ
to TO
sue VB
. .

`` ``
I PRP
do VBP
n't RB
know VB
anybody NN
in IN
the DT
industry NN
who WP
has VBZ
n't RB
experienced VBN
litigation NN
, ,
'' ''
he PRP
says VBZ
. .

Mr. NNP
Peterson NNP
also RB
says VBZ
he PRP
does VBZ
n't RB
consider VB
himself PRP
a DT
financial JJ
planner NN
anymore RB
. .

He PRP
now RB
calls VBZ
himself PRP
an DT
`` ``
investment NN
banker NN
. .
'' ''

In IN
many JJ
scams NNS
or CC
alleged VBN
scams NNS
involving VBG
planners NNS
, ,
it PRP
's VBZ
plain JJ
that IN
only RB
a DT
modicum NN
of IN
common JJ
sense NN
on IN
the DT
part NN
of IN
the DT
investors NNS
would MD
have VB
kept VBN
them PRP
out IN
of IN
harm NN
's POS
way NN
. .

Using VBG
it PRP
, ,
would MD
n't RB
a DT
proessional NN
hesitate VB
to TO
pay VB
tens NNS
of IN
thousands NNS
of IN
dollars NNS
just RB
for IN
a DT
chance NN
to TO
invest VB
witha NN
planner NN
? .

Other JJ
cases NNS
go VBP
to TO
show VB
that IN
an DT
old JJ
saw VBD
still RB
applies VBZ
: :
If IN
it PRP
sounds VBZ
too RB
good JJ
to TO
be VB
true JJ
, ,
it PRP
probably RB
is VBZ
. .

Certificates NNS
of IN
deposit NN
do VBP
n't RB
pay VB
23 CD
% NN
a DT
year NN
, ,
for IN
example NN
, ,
but CC
that DT
did VBD
n't RB
give VB
pause NN
to TO
clients NNS
of IN
one CD
Alabama NNP
planner NN
. .

Now RB
they PRP
're VBP
losers NNS
and CC
he PRP
's VBZ
in IN
jail NN
in IN
Mobile NNP
County NNP
. .

CDs NNS
yielding VBG
40 CD
% NN
are VBP
even RB
more RBR
implausible JJ
-- :
especially RB
when WRB
the DT
issuing VBG
`` ``
bank NN
'' ''
in IN
the DT
Marshall NNP
Islands NNPS
is VBZ
merely RB
a DT
mail NN
drop NN
watched VBD
over IN
by IN
a DT
local JJ
gas-station JJ
operator NN
-- :
but CC
investors NNS
fell VBD
for IN
that DT
one CD
too RB
. .

And CC
the DT
Colorado NNP
planner NN
who WP
promised VBD
to TO
make VB
some DT
of IN
his PRP$
clients NNS
millionaires NNS
on IN
investments NNS
of IN
as RB
litle JJ
as IN
$ $
100 CD
? .

Never RB
mind NN
. .

You PRP
already RB
know VBP
the DT
answer NN
. .

Mr. NNP
Emshwiller NNP
is VBZ
a DT
staff NN
reporter NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Los NNP
Angeles NNP
bureau NN
. .

At IN
the DT
ritzy JJ
Fashion NNP
Island NNP
Shopping NNP
Center NNP
, ,
the DT
tanned JJ
and CC
elegant JJ
ladies NNS
of IN
this DT
wealthy JJ
Southern NNP
California NNP
beach NN
community NN
disembark VBP
from IN
their PRP$
Mercedes-Benzes NNPS
and CC
BMWs NNS
for IN
another DT
day NN
of IN
exercising VBG
their PRP$
credit NN
cards NNS
. .

They PRP
root VBP
among IN
the DT
designer NN
offerings NNS
at IN
Neiman-Marcus NNP
and CC
Bullocks NNP
Wilshire NNP
. .

They PRP
stroll VBP
through IN
the DT
marble-encased JJ
corridors NNS
of IN
the DT
Atrium NNP
Court NNP
. .

They PRP
graze VBP
at IN
the DT
Farmers NNP
Market NNP
, ,
a DT
combination NN
gourmet NN
food NN
court NN
and CC
grocery NN
store NN
, ,
while IN
a DT
pianist NN
accompanies VBZ
the DT
noon NN
fashion NN
show NN
with IN
a DT
selection NN
of IN
dreamy JJ
melodies NNS
. .

`` ``
The DT
beautiful JJ
look NN
of IN
wool NN
, ,
'' ''
croons VBZ
the DT
show NN
's POS
narrator NN
, ,
`` ``
slightly RB
Victorian JJ
in IN
its PRP$
influence NN
... :
. .
'' ''

Meanwhile RB
, ,
in IN
the DT
squat JJ
office NN
buildings NNS
that WDT
ring VBP
Fashion NNP
Island NNP
, ,
the DT
odds NNS
are VBP
good JJ
that DT
someone NN
is VBZ
getting VBG
fleeced VBN
. .

Law-enforcement JJ
authorities NNS
say VBP
that IN
at IN
any DT
given VBN
time NN
, ,
a DT
host NN
of IN
fraudulent JJ
telemarketing NN
operations NNS
mingle VBP
with IN
the DT
many JJ
legitimate JJ
businesses NNS
here RB
. .

`` ``
They PRP
seem VBP
to TO
like IN
these DT
industrial JJ
parks NNS
, ,
'' ''
says VBZ
Kacy NNP
McClelland NNP
, ,
a DT
postal JJ
inspector NN
who WP
specializes VBZ
in IN
mail NN
fraud NN
. .

`` ``
We PRP
call VBP
them PRP
fraud NN
farms NNS
. .
'' ''

Welcome NNP
to TO
that DT
welter NN
of IN
contradictions NNS
known VBN
as IN
Newport NNP
Beach NNP
. .

This DT
city NN
of IN
more JJR
than IN
70,000 CD
is VBZ
known VBN
for IN
sunshine NN
, ,
yachts NNS
and CC
rich JJ
residents NNS
. .

It PRP
is VBZ
also RB
known VBN
as IN
the DT
fraud NN
capital NN
of IN
the DT
U.S. NNP
, ,
dubbed VBN
by IN
investigators NNS
and CC
the DT
media NNS
as IN
the DT
`` ``
Cote NNP
de FW
Fraud NNP
'' ''
. .

How WRB
does VBZ
a DT
community NN
famous JJ
for IN
its PRP$
high JJ
living VBG
end NN
up IN
as IN
a DT
haven NN
for IN
low-lifes NNS
? .

Clearly RB
, ,
the DT
existence NN
of IN
the DT
former JJ
lures NNS
the DT
latter NN
. .

The DT
places NNS
renowned JJ
for IN
breeding VBG
bunco NN
, ,
like IN
the DT
Miami NNP
neighborhood NN
known VBN
as IN
the DT
`` ``
Maggot NNP
Mile NNP
'' ''
and CC
Las NNP
Vegas NNP
's POS
flashy JJ
strip NN
of IN
casinos NNS
, ,
invariably RB
offer VBP
fast JJ
cars NNS
, ,
high JJ
rollers NNS
, ,
glamorous JJ
women NNS
and CC
lots NNS
of IN
sunshine NN
. .

You PRP
do VBP
n't RB
hear VB
much JJ
about IN
unusual JJ
concentrations NNS
of IN
fraud NN
in IN
Green NNP
Bay NNP
or CC
Buffalo NNP
. .

Con JJ
men NNS
hate VBP
snow NN
. .

Newport NNP
Beach NNP
fits VBZ
the DT
scam NN
artists NNS
' POS
specifications NNS
perfectly RB
. .

What WP
more JJR
could MD
a DT
con JJ
man NN
in IN
search NN
of IN
the DT
easy JJ
life NN
ask VB
for RB
? .

Nothing NN
seems VBZ
hard JJ
here RB
. .

The DT
breezes NNS
are VBP
soft JJ
, ,
the DT
waves NNS
lap VBP
gently RB
and CC
the DT
palm NN
trees NNS
sway VBP
lazily RB
. .

Nightlife NN
is VBZ
plentiful JJ
. .

Moreover RB
, ,
ostentation NN
is VBZ
appreciated VBN
. .

The DT
median JJ
price NN
of IN
homes NNS
is VBZ
$ $
547,000 CD
; :
more JJR
than IN
9,000 CD
vessels NNS
fill VBP
what WP
the DT
chamber NN
of IN
commerce NN
calls VBZ
the DT
nation NN
's POS
largest JJS
pleasure-boat NN
harbor NN
. .

`` ``
Blondes NNP
, ,
cocaine NN
and CC
Corvettes NNS
, ,
'' ''
mutters NNS
Mr. NNP
McClelland NNP
. .

`` ``
That DT
's VBZ
what WP
they PRP
're VBP
after IN
. .
'' ''

The DT
rich JJ
image NN
of IN
Newport NNP
Beach NNP
also RB
helps VBZ
lend VB
the DT
con JJ
artists NNS
' POS
operation NN
an DT
air NN
of IN
respectability NN
. .

`` ``
One CD
reason NN
they PRP
use VBP
Newport NNP
Beach NNP
is VBZ
that IN
it PRP
sounds VBZ
swankier JJR
than IN
most RBS
addresses NNS
, ,
'' ''
says VBZ
David NNP
Katz NNP
, ,
a DT
U.S. NNP
attorney NN
who WP
, ,
until IN
recently RB
, ,
headed VBD
a DT
multi-agency JJ
Southern NNP
California NNP
fraud NN
task NN
force NN
. .

`` ``
Newport NNP
Beach NNP
is VBZ
known VBN
in IN
Rhode NNP
Island NNP
for IN
having VBG
a DT
lot NN
of IN
rich JJ
people NNS
. .
'' ''

No DT
wonder NN
all DT
kinds NNS
of IN
big-time JJ
scams NNS
have VBP
flourished VBN
here RB
, ,
from IN
phony JJ
tax-sheltered JJ
Bible NNP
sales NNS
to TO
crooked JJ
car NN
dealers NNS
to TO
bogus JJ
penny-stock JJ
traders NNS
. .

But CC
above IN
all DT
, ,
this DT
is VBZ
the DT
national JJ
headquarters NN
for IN
boiler-room NN
operators NNS
, ,
those DT
slick-talking JJ
snake-oil JJ
salesmen NNS
who WP
use VBP
the DT
telephone NN
to TO
extract VB
money NN
from IN
the DT
gullible JJ
and CC
the DT
greedy JJ
and CC
then RB
vanish VBP
. .

Because IN
only RB
a DT
fraction NN
of IN
them PRP
are VBP
ever RB
prosecuted VBN
, ,
nobody NN
really RB
knows VBZ
how WRB
much JJ
money NN
bogus JJ
telemarketing NN
operators NNS
really RB
harvest VBP
. .

`` ``
I PRP
've VBP
heard VBN
that IN
there EX
is VBZ
$ $
40 CD
billion CD
taken VBN
in IN
nationwide JJ
by IN
boiler NN
rooms NNS
every DT
year NN
, ,
'' ''
Mr. NNP
McClelland NNP
says VBZ
. .

`` ``
If IN
that DT
's VBZ
true JJ
, ,
Orange NNP
County NNP
has VBZ
to TO
be VB
at IN
least JJS
10 CD
% NN
of IN
that DT
. .
'' ''

And CC
most RBS
of IN
the DT
truly RB
big JJ
scams NNS
in IN
Orange NNP
County NNP
seem VB
to TO
originate VB
in IN
Newport NNP
Beach NNP
or CC
one CD
of IN
the DT
other JJ
well-heeled JJ
communities NNS
that WDT
surround VBP
this DT
sliver-like JJ
city NN
that IN
hooks NNS
around IN
a DT
point NN
of IN
land NN
on IN
the DT
California NNP
coast NN
south RB
of IN
Los NNP
Angeles NNP
. .

In IN
fact NN
, ,
sophisticated JJ
big-bucks JJ
boiler-room NN
scams NNS
are VBP
known VBN
generically RB
among IN
law-enforcement NN
types NNS
as IN
`` ``
Newport NNP
Beach NNP
'' ''
operations NNS
. .

That DT
contrasts NNS
with IN
the DT
penny-ante JJ
sales NNS
of IN
things NNS
such JJ
as IN
pen-and-pencil JJ
sets NNS
and CC
office NN
supplies NNS
that WDT
are VBP
known VBN
as IN
`` ``
Hollywood NNP
'' ''
scams NNS
. .

Newport NNP
Beach NNP
telemarketers NNS
concentrate VBP
on IN
precious JJ
metals NNS
and CC
oil-leasing NN
deals NNS
that IN
typically RB
cost VBP
thousands NNS
of IN
dollars NNS
a DT
shot NN
. .

The DT
investors NNS
range VBP
from IN
elderly JJ
widows NNS
to TO
affluent JJ
professionals NNS
. .

In IN
one CD
ingenious JJ
recent JJ
example NN
of IN
a DT
Newport NNP
Beach NNP
boiler NN
room NN
, ,
prospective JJ
investors NNS
in IN
Capital NNP
Trust NNP
Inc. NNP
were VBD
allegedly RB
told VBN
that IN
their PRP$
investment NN
in IN
precious JJ
metals NNS
was VBD
insured VBN
against IN
losses NNS
`` ``
caused VBN
by IN
employees NNS
due JJ
to TO
dishonesty NN
, ,
destruction NN
or CC
disappearance NN
, ,
'' ''
according VBG
to TO
an DT
indictment NN
handed VBD
up IN
by IN
a DT
federal JJ
grand JJ
jury NN
in IN
Los NNP
Angeles NNP
last JJ
month NN
. .

Thus RB
falsely RB
reassured VBN
, ,
investors NNS
sent VBD
$ $
11.4 CD
million CD
to TO
the DT
Newport NNP
Beach NNP
company NN
, ,
most RBS
of IN
which WDT
was VBD
diverted VBN
to TO
unauthorized JJ
uses NNS
, ,
the DT
indictment NN
charges NNS
. .

Douglas NNP
Jones NNP
, ,
an DT
attorney NN
representing VBG
Richard NNP
O. NNP
Kelly NNP
Sr. NNP
, ,
the DT
chairman NN
and CC
president NN
of IN
Capital NNP
Trust NNP
, ,
says VBZ
his PRP$
client NN
denies VBZ
that IN
there EX
was VBD
any DT
attempt NN
to TO
defraud VB
investors NNS
. .
`` ``
There EX
were VBD
some DT
business NN
deals NNS
that WDT
went VBD
bad JJ
, ,
'' ''
Mr. NNP
Jones NNP
says VBZ
, ,
`` ``
but CC
no DT
intent NN
to TO
defraud VB
. .
'' ''

Newport NNP
Beach NNP
operations NNS
differ VBP
from IN
the DT
Hollywood NNP
boiler NN
rooms NNS
in IN
style NN
as RB
well RB
as IN
in IN
dollars NNS
. .

Traditionally RB
, ,
boiler NN
rooms NNS
operate VBP
on IN
the DT
cheap NN
, ,
since IN
few JJ
, ,
if IN
any DT
, ,
customers NNS
ever RB
visit VBP
their PRP$
offices NNS
. .

Indeed RB
, ,
the DT
name NN
derives VBZ
from IN
the DT
tendency NN
among IN
telemarketing NN
scammers NNS
to TO
rent VB
cheap JJ
basement NN
space NN
, ,
near IN
the DT
boiler NN
room NN
. .

But CC
, ,
says VBZ
Mr. NNP
Katz NNP
, ,
the DT
U.S. NNP
attorney NN
, ,
`` ``
the DT
interesting JJ
thing NN
about IN
Newport NNP
Beach NNP
operations NNS
is VBZ
that IN
they PRP
give VBP
themselves PRP
the DT
indulgence NN
of IN
beautiful JJ
offices NNS
, ,
with IN
plush JJ
furnishings NNS
. .

When WRB
we PRP
go VBP
there EX
, ,
it PRP
's VBZ
quite RB
different JJ
from IN
these DT
Hollywood NNP
places NNS
where WRB
the DT
sandwiches NNS
are VBP
spread NN
out IN
on IN
the DT
table NN
and CC
the DT
people NNS
are VBP
picking VBG
their PRP$
noses NNS
. .
'' ''

The DT
Newport NNP
Beach NNP
operators NNS
also RB
tend VBP
to TO
indulge VB
themselves PRP
privately RB
. .

Investigators NNS
cite VBP
the DT
case NN
of IN
Matthew NNP
Valentine NNP
, ,
who WP
is VBZ
currently RB
serving VBG
a DT
six-year JJ
sentence NN
at IN
Lompoc NNP
Federal NNP
Prison NNP
for IN
his PRP$
role NN
in IN
Intech NNP
Investment NNP
Corp. NNP
, ,
which WDT
promised VBD
investors NNS
returns NNS
of IN
as RB
much JJ
as IN
625 CD
% NN
on IN
precious JJ
metals NNS
. .

Mr. NNP
Valentine NNP
, ,
who WP
pleaded VBD
guilty JJ
to TO
five CD
counts NNS
of IN
fraud NN
in IN
federal JJ
court NN
in IN
Los NNP
Angeles NNP
, ,
drove VBD
a DT
leased VBN
Mercedes NNP
and CC
lived VBD
in IN
an DT
expensive JJ
home NN
on IN
Lido NNP
Isle NNP
, ,
an DT
island NN
in IN
Newport NNP
's POS
harbor NN
, ,
according VBG
to TO
investigators NNS
. .

With IN
the DT
$ $
3 CD
million CD
received VBD
from IN
investors NNS
, ,
he PRP
took VBD
frequent JJ
junkets NNS
with IN
friends NNS
to TO
exotic JJ
locales NNS
and CC
leased VBD
an DT
expensive JJ
BMW NNP
for IN
his PRP$
girlfriend NN
, ,
whom WP
he PRP
met VBD
at IN
the DT
shop NN
where WRB
he PRP
got VBD
his PRP$
custom-tailored JJ
suits NNS
. .

`` ``
It PRP
's VBZ
amazing JJ
the DT
amount NN
of IN
money NN
that WDT
goes VBZ
up IN
their PRP$
nose NN
, ,
out IN
to TO
the DT
dog NN
track NN
or CC
to TO
the DT
tables NNS
in IN
Las NNP
Vegas NNP
, ,
'' ''
Mr. NNP
Katz NNP
says VBZ
. .

All DT
this DT
talk NN
of IN
boiler NN
rooms NNS
and CC
fraud NN
is VBZ
unnerving VBG
to TO
the DT
city NN
's POS
legitimate JJ
business NN
element NN
. .

Vincent NNP
M NNP
Ciavarella NNP
, ,
regional JJ
manager NN
of IN
Property NNP
Management NNP
Systems NNPS
, ,
insists VBZ
he PRP
does VBZ
n't RB
know VB
of IN
any DT
bogus JJ
telemarketers NNS
operating VBG
in IN
the DT
1.6 CD
million CD
square NN
feet NNS
of IN
office NN
space NN
around IN
Fashion NNP
Island NNP
that IN
his PRP$
company NN
leases NNS
for IN
Irvine NNP
Co. NNP
, ,
the DT
owner NN
and CC
developer NN
of IN
the DT
project NN
. .

Mr. NNP
Ciavarella NNP
has VBZ
rejected VBN
a DT
few JJ
prospective JJ
tenants NNS
who WP
provided VBD
`` ``
incomplete JJ
'' ''
financial JJ
information NN
and CC
acknowledges VBZ
that IN
illegitimate JJ
operators NNS
`` ``
are VBP
not RB
easily RB
detectable JJ
. .

'' ''
-LRB- (
Investigators NNS
stress VBP
that IN
building NN
owners NNS
are VBP
victims NNS
, ,
too RB
, ,
since IN
boiler NN
rooms NNS
often RB
leave VBP
without IN
paying VBG
rent NN
. .
-RRB- )

Richard NNP
Luehrs NNP
, ,
president NN
of IN
the DT
Newport NNP
Harbor NNP
Area NNP
Chamber NNP
of IN
Commerce NNP
, ,
calls VBZ
boiler NN
rooms NNS
a DT
`` ``
negative JJ
we PRP
wish VBP
we PRP
could MD
get VB
rid JJ
of IN
. .
'' ''
Actually RB
, ,
`` ``
we PRP
do VBP
n't RB
get VB
much JJ
negative JJ
publicity NN
about IN
this DT
, ,
'' ''
he PRP
insists VBZ
, ,
`` ``
except IN
for IN
the DT
press NN
who WP
write VBP
about IN
it PRP
. .
'' ''

Mr. NNP
Lancaster NNP
is VBZ
deputy NN
chief NN
of IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Dallas NNP
bureau NN
. .

YOU PRP
WENT VBD
to TO
college NN
and CC
thought VBD
you PRP
got VBD
an DT
education NN
. .

Now RB
you PRP
discover VBP
that IN
you PRP
never RB
learned VBD
the DT
most RBS
important JJ
lesson NN
: :
How WRB
to TO
send VB
your PRP$
kids NNS
to TO
college NN
. .

True JJ
, ,
when WRB
you PRP
went VBD
to TO
college NN
, ,
there EX
was VBD
n't RB
that IN
much JJ
to TO
learn VB
. .

Stick NNP
some DT
money NN
in IN
an DT
interest-bearing JJ
account NN
and CC
watch VB
it PRP
grow VB
. .

Now RB
, ,
investment NN
salesmen NNS
say VBP
it PRP
's VBZ
time NN
to TO
take VB
some DT
risks NNS
if IN
you PRP
want VBP
the DT
kind NN
of IN
returns NNS
that WDT
will MD
buy VB
your PRP$
toddler NN
a DT
ticket NN
to TO
Prestige NNP
U. NNP
in IN
18 CD
years NNS
. .

In IN
short JJ
, ,
throw VB
away RB
the DT
passbook NN
and CC
go VB
for IN
the DT
glory NN
. .

The DT
reason NN
is VBZ
cost NN
. .

Nothing NN
in IN
the DT
annals NNS
of IN
tuition NN
readied VBD
parents NNS
for IN
the DT
1980s CD
. .

Tuitions NNS
at IN
private JJ
colleges NNS
rose VBD
154 CD
% NN
in IN
the DT
10 CD
years NNS
ended VBD
in IN
June NNP
of IN
this DT
year NN
; :
that DT
's VBZ
twice RB
the DT
77 CD
% NN
increase NN
in IN
consumer NN
prices NNS
for IN
the DT
same JJ
period NN
. .

A DT
year NN
at IN
Harvard NNP
now RB
goes VBZ
for IN
$ $
19,395 CD
. .

By IN
2007 CD
, ,
when WRB
this DT
year NN
's POS
newborns NNS
hit VBD
campus NN
, ,
a DT
four-year JJ
Ivy NNP
League NNP
sheepskin NN
will MD
cost VB
$ $
300,000 CD
, ,
give VB
or CC
take VB
a DT
few JJ
pizzas-with-everything NNS
at IN
exam NN
time NN
. .

Stanford NNP
, ,
MIT NNP
and CC
other JJ
utmosts NNS
will MD
cost VB
no DT
less JJR
. .

So RB
what WP
's VBZ
a DT
parent NN
to TO
do VB
? .

Some DT
investment NN
advisers NNS
are VBP
suggesting VBG
, ,
in IN
effect NN
, ,
a DT
bet NN
on IN
a DT
start-up JJ
investment NN
pool NN
-- :
maybe RB
even RB
on IN
margin NN
. .
Others NNS
prefer VBP
deep-discount JJ
zero-coupon JJ
bonds NNS
. .

Still JJ
others NNS
say VBP
, ,
Why WRB
not RB
take VB
a DT
chance NN
on IN
a DT
high-octane JJ
growth NN
fund NN
? .

`` ``
You PRP
're VBP
not RB
going VBG
to TO
make VB
it PRP
in IN
a DT
5 NN
% NN
bank NN
account NN
, ,
'' ''
says VBZ
James NNP
Riepe NNP
, ,
director NN
of IN
mutual JJ
funds NNS
at IN
T. NNP
Rowe NNP
Price NNP
. .

To TO
get VB
the DT
necessary JJ
growth NN
, ,
adds VBZ
Murray NNP
Ruffel NNP
, ,
a DT
marketing NN
official NN
at IN
the DT
Financial NNP
Programs NNS
mutual-fund JJ
group NN
, ,
`` ``
you PRP
need VBP
to TO
go VB
to TO
the DT
stock NN
market NN
. .
'' ''

In IN
other JJ
words NNS
, ,
a DT
little JJ
volatility NN
never RB
hurt VBD
. .

It PRP
never RB
hurt VBD
anyone NN
, ,
that DT
is VBZ
, ,
unless IN
the DT
growth NN
funds NNS
do VBP
n't RB
grow VB
when WRB
you PRP
need VBP
them PRP
to TO
. .
Or CC
the DT
zero-coupon JJ
bonds NNS
turn VBP
out IN
not RB
to TO
have VB
been VBN
discounted VBN
deeply RB
enough RB
to TO
pay VB
your PRP$
kid NN
's POS
tuition NN
. .

That DT
's VBZ
the DT
dilemma NN
for IN
today NN
's POS
parent NN
. .

Although IN
many JJ
experts NNS
are VBP
advising VBG
risk NN
, ,
no DT
one CD
has VBZ
a DT
good JJ
answer NN
for IN
you PRP
if IN
the DT
risk NN
does VBZ
n't RB
pay VB
off RB
. .

Help VB
may MD
be VB
on IN
the DT
way NN
. .

The DT
antitrust JJ
division NN
of IN
the DT
Justice NNP
Department NNP
is VBZ
investigating VBG
the DT
oddly RB
similar JJ
tuition NN
charges NNS
and CC
increases NNS
among IN
the DT
top JJ
schools NNS
. .

Fear NN
of IN
the DT
price NN
police NN
could MD
help VB
cool JJ
things NNS
off IN
in IN
the DT
1990s CD
. .

And CC
then RB
there EX
's VBZ
always RB
State NNP
U NNP
. .

But CC
parents NNS
' POS
craving NN
for IN
a DT
top-rated JJ
education NN
for IN
their PRP$
children NNS
is VBZ
growing VBG
like IN
their PRP$
taste NN
for IN
fancy JJ
wheels NNS
and CC
vintage JJ
wine NN
. .

Belatedly RB
aware JJ
of IN
public JJ
concern NN
, ,
lawmakers NNS
and CC
financial JJ
middlemen NNS
are VBP
working VBG
overtime NN
to TO
create VB
and CC
sell VB
college NN
savings NNS
and CC
investment NN
schemes NNS
. .

Their PRP$
message NN
, ,
explicit JJ
or CC
implicit JJ
, ,
is VBZ
that IN
a DT
good JJ
college NN
will MD
cost VB
so RB
much JJ
by IN
whenever WRB
you PRP
want VBP
it PRP
that IN
the DT
tried VBN
and CC
true JJ
wo MD
n't RB
do VB
anymore RB
. .

Forget VB
about IN
Treasury NNP
bills NNS
or CC
a DT
money-market JJ
fund NN
. .

The DT
latest JJS
wave NN
of IN
marketing NN
is VBZ
instructive JJ
. .

Several JJ
outfits NN
-- :
including VBG
the DT
Financial NNP
Programs NNS
, ,
Franklin NNP
, ,
and CC
T. NNP
Rowe NNP
Price NNP
mutual-fund JJ
groups NNS
and CC
the DT
Edward NNP
D. NNP
Jones NNP
brokerage NN
house NN
-- :
are VBP
advertising VBG
`` ``
college NN
planner NN
'' ''
tables NNS
and CC
charts NNS
that WDT
tell VBP
you PRP
how WRB
much JJ
you PRP
need VBP
to TO
put VB
aside RB
regularly RB
. .

The DT
calculations NNS
generally RB
rely VBP
on IN
an DT
after-tax JJ
rate NN
of IN
return NN
of IN
8 CD
% NN
annually RB
-- :
a DT
rate NN
historically RB
obtainable JJ
by IN
the DT
individual NN
in IN
only RB
one CD
place NN
, ,
the DT
stock NN
market NN
. .

Most JJS
of IN
the DT
mailers NNS
are VBP
free JJ
, ,
but CC
Denver-based NNP
Financial NNP
Programs NNS
sells VBZ
, ,
for IN
$ $
15 CD
, ,
a DT
version NN
customized VBN
to TO
the DT
age NN
of IN
the DT
child NN
and CC
the DT
college NN
of IN
choice NN
. .

The DT
figures NNS
are VBP
shocking JJ
. .

To TO
build VB
a DT
nest NN
egg NN
that WDT
would MD
pay VB
for IN
Stanford NNP
when WRB
a DT
current JJ
first-grader NN
reaches VBZ
college NN
age NN
, ,
parents NNS
would MD
need VB
to TO
set VB
aside RB
$ $
773.94 CD
a DT
month NN
-- :
for IN
12 CD
years NNS
. .

They PRP
can MD
cut VB
this DT
to TO
$ $
691.09 CD
a DT
month NN
if IN
the DT
investing VBG
keeps VBZ
up IN
through IN
college NN
. .

And CC
they PRP
can MD
further VB
reduce VB
the DT
monthly JJ
amount NN
if IN
they PRP
start VBP
saving VBG
earlier RBR
-- :
when WRB
mother NN
and CC
child NN
come VB
home NN
from IN
the DT
hospital NN
. .

Plugging VBG
a DT
cheaper JJR
college NN
into IN
the DT
formulas NNS
still RB
does VBZ
n't RB
generate VB
an DT
installment NN
most RBS
people NNS
can MD
live VB
with RB
. .

Using VBG
a DT
recent JJ
average JJ
private-school JJ
cost NN
of IN
about RB
$ $
12,500 CD
a DT
year NN
, ,
T. NNP
Rowe NNP
Price NNP
's POS
planner NN
prescribes VBZ
$ $
450 CD
monthly JJ
if IN
the DT
plan NN
begins VBZ
when WRB
the DT
child NN
is VBZ
six CD
. .

Since IN
the DT
formula NN
assumes VBZ
an DT
8 CD
% NN
before-tax JJ
return NN
in IN
a DT
mutual JJ
fund NN
, ,
there EX
would MD
also RB
be VB
$ $
16,500 CD
in IN
taxes NNS
to TO
pay VB
over IN
the DT
12 CD
years NNS
. .

Not RB
everyone NN
is VBZ
so RB
pessimistic JJ
. .

`` ``
People NNS
are VBP
basically RB
peddling VBG
a DT
lot NN
of IN
fear NN
, ,
'' ''
says VBZ
Arthur NNP
Hauptman NNP
, ,
a DT
consultant NN
to TO
the DT
American NNP
Council NNP
on IN
Education NNP
in IN
Washington NNP
. .

He PRP
takes VBZ
issue NN
with IN
projections NNS
that WDT
do VBP
n't RB
factor VB
in IN
students NNS
' POS
own JJ
contribution NN
, ,
which WDT
reduces VBZ
most RBS
parents NNS
' POS
burden NN
substantially RB
. .

Still RB
, ,
he PRP
says VBZ
, ,
`` ``
it PRP
's VBZ
no DT
bad JJ
thing NN
'' ''
if IN
all PDT
the DT
marketing NN
prods VBZ
people NNS
into IN
putting VBG
aside RB
a DT
little RB
more JJR
. .

`` ``
The DT
situation NN
you PRP
want VBP
to TO
avoid VB
is VBZ
having VBG
somebody NN
not RB
save VB
anything NN
and CC
hope NN
they PRP
'll MD
be VB
able JJ
to TO
do VB
it PRP
out IN
of IN
current JJ
income NN
, ,
'' ''
he PRP
says VBZ
. .

`` ``
That DT
's VBZ
crazy JJ
. .
'' ''

His PRP$
advice NN
: :
Do VBP
n't RB
panic VB
. .

Parents NNS
, ,
he PRP
says VBZ
, ,
should MD
aim VB
at IN
whatever WDT
regular JJ
investment NN
sum NN
they PRP
can MD
afford VB
. .

Half NN
the DT
amount NN
that IN
the DT
investment NN
tables NNS
suggest VBP
might MD
be VB
a DT
good JJ
goal NN
, ,
he PRP
adds VBZ
. .

That DT
way NN
, ,
parents NNS
will MD
reduce VB
borrowings NNS
and CC
outlays NNS
from IN
current JJ
income NN
when WRB
the DT
time NN
comes VBZ
to TO
pay VB
tuition NN
. .

Mr. NNP
Hauptman NNP
reckons VBZ
that IN
the DT
best JJS
investment NN
choice NN
is VBZ
mutual JJ
funds NNS
because IN
they PRP
are VBP
managed VBN
and CC
over IN
time NN
have VBP
nearly RB
kept VBN
up IN
with IN
the DT
broad JJ
stock NN
averages NNS
. .

He PRP
favors VBZ
either DT
an DT
all-stock JJ
fund NN
or CC
a DT
balanced JJ
fund NN
that IN
mixes VBZ
both DT
stocks NNS
and CC
bonds NNS
. .

In IN
their PRP$
anxiety NN
, ,
however RB
, ,
parents NNS
and CC
other JJ
student NN
benefactors NNS
are VBP
flocking VBG
to TO
new JJ
schemes NNS
. .

They PRP
have VBP
laid VBN
out IN
about RB
$ $
1 CD
billion CD
for IN
so-called JJ
baccalaureate NN
zero-coupon JJ
municipal JJ
bonds NNS
-- :
so RB
far RB
offered VBN
by IN
Connecticut NNP
, ,
Illinois NNP
, ,
Virginia NNP
and CC
eight CD
other JJ
states NNS
. .
And CC
they PRP
have VBP
bought VBN
about RB
$ $
500 CD
million CD
in IN
prepaid-tuition JJ
plans NNS
, ,
offered VBN
in IN
Michigan NNP
, ,
Florida NNP
and CC
Wyoming NNP
. .

The DT
prepaid JJ
plans NNS
take VBP
payment NN
today NN
-- :
usually RB
at IN
current JJ
tuitions NNS
or CC
at IN
a DT
slight JJ
discount NN
-- :
for IN
a DT
promise NN
that DT
tuition NN
will MD
be VB
covered VBN
tomorrow NN
. .

The DT
baccalaureate NN
bonds NNS
-- :
tax-free JJ
, ,
offered VBN
in IN
small JJ
denominations NNS
and CC
usually RB
containing VBG
a DT
provision NN
that IN
they PRP
wo MD
n't RB
be VB
called VBN
before IN
maturity NN
-- :
seem VB
to TO
be VB
tailor-made JJ
for IN
college NN
savers NNS
. .

Like IN
other JJ
zeros NNS
, ,
they PRP
pay VBP
all DT
their PRP$
interest NN
at IN
maturity NN
, ,
meaning NN
that IN
buyers NNS
can MD
time VB
things NNS
so RB
that IN
their PRP$
bonds NNS
pay VBP
off IN
just RB
when WRB
Junior JJ
graduates NNS
from IN
high JJ
school NN
. .

Their PRP$
compounding NN
effect NN
is VBZ
also RB
alluring JJ
. .

In IN
June NNP
, ,
Virginia NNP
sold VBD
bonds NNS
for IN
$ $
268.98 CD
that WDT
will MD
pay VB
$ $
1,000 CD
in IN
2009 CD
. .

But CC
Richard NNP
Anderson NNP
, ,
head NN
of IN
the DT
Forum NNP
for IN
College NNP
Financing NNP
Alternatives NNP
, ,
at IN
Columbia NNP
University NNP
, ,
a DT
research NN
group NN
partly RB
financed VBD
by IN
the DT
federal JJ
government NN
, ,
says VBZ
zeros NNS
are VBP
particularly RB
ill-suited JJ
. .

Their PRP$
price NN
falls VBZ
further JJ
than IN
that DT
of IN
other JJ
bonds NNS
when WRB
inflation NN
and CC
interest NN
rates NNS
kick VBP
up RB
. .

That DT
wo MD
n't RB
matter VB
if IN
they PRP
are VBP
held VBN
to TO
maturity NN
, ,
but CC
if IN
, ,
for IN
any DT
reason NN
, ,
the DT
parents NNS
need VBP
to TO
sell VB
them PRP
before IN
then RB
, ,
there EX
could MD
be VB
a DT
severe JJ
loss NN
of IN
principal NN
. .

Had VBD
zeros NNS
been VBN
available JJ
in IN
1972 CD
and CC
had VBD
parents NNS
bought VBD
a DT
face NN
amount NN
equal JJ
to TO
four CD
years NNS
' POS
tuition NN
at IN
the DT
time NN
, ,
aiming VBG
for IN
their PRP$
children NNS
's POS
1988 CD
enrollment NN
, ,
they PRP
would MD
have VB
been VBN
left VBN
with IN
only RB
enough RB
to TO
pay VB
for IN
two CD
years NNS
, ,
Mr. NNP
Anderson NNP
figures VBZ
. .

Most JJS
other JJ
bonds NNS
, ,
however RB
, ,
would MD
probably RB
not RB
have VB
fared VBN
much RB
better JJR
. .
The DT
prepaid JJ
plans NNS
may MD
be VB
a DT
good JJ
bet NN
, ,
provided VBD
the DT
guarantee NN
of IN
future NN
tuition NN
is VBZ
secure VB
. .

Issuing VBG
states NNS
generally RB
limit VBP
the DT
guarantees NNS
to TO
in-state JJ
institutions NNS
, ,
however RB
, ,
and CC
buyers NNS
get VBP
refunds NNS
without IN
much JJ
interest NN
if IN
the DT
children NNS
do VBP
n't RB
attend VB
the DT
specified VBN
schools NNS
. .

Two CD
private JJ
groups NNS
are VBP
seeking VBG
Securities NNPS
and CC
Exchange NNP
Commission NNP
approval NN
for IN
plans NNS
that WDT
could MD
be VB
more RBR
broadly RB
transferable JJ
. .

Mr. NNP
Anderson NNP
wants VBZ
the DT
prestige NN
colleges NNS
to TO
sponsor VB
such JJ
a DT
plan NN
. .

The DT
issue NN
here RB
may MD
be VB
the DT
soundness NN
of IN
the DT
guarantee NN
. .

Prepayments NNS
, ,
much JJ
like IN
mutual-fund JJ
purchases NNS
, ,
are VBP
pooled VBN
for IN
investment NN
. .

Sponsors NNS
are VBP
naturally RB
counting VBG
on IN
their PRP$
ability NN
to TO
keep VB
ahead RB
of IN
tuition NN
inflation NN
with IN
investment NN
returns NNS
. .

But CC
buyers NNS
are VBP
essentially RB
betting VBG
on IN
a DT
start-up JJ
investment NN
fund NN
with IN
no DT
track NN
record NN
-- :
and CC
some DT
have NN
been VBN
encouraged VBN
to TO
borrow VB
to TO
do VB
so RB
. .

One CD
problem NN
is VBZ
that IN
the DT
Internal NNP
Revenue NNP
Service NNP
has VBZ
decided VBN
that IN
the DT
investment NN
earnings NNS
and CC
gains NNS
of IN
the DT
sponsors NNS
' POS
funds NNS
are VBP
taxable JJ
. .
The DT
colleges NNS
, ,
as IN
educational JJ
institutions NNS
, ,
had VBD
hoped VBN
that WDT
would MD
n't RB
be VB
the DT
case NN
. .

Based VBN
on IN
historical JJ
rates NNS
of IN
return NN
, ,
Mr. NNP
Anderson NNP
reckons VBZ
a DT
100 CD
% NN
stock NN
portfolio NN
, ,
indexed VBN
to TO
the DT
market NN
, ,
would MD
have VB
kept VBN
up IN
with IN
tuition NN
and CC
taxes NNS
in IN
the DT
20th JJ
century NN
. .

But CC
sponsors NNS
might MD
not RB
pick VB
the DT
stocks NNS
that WDT
will MD
match VB
the DT
market NN
. .

And CC
they PRP
're VBP
leaning VBG
more RBR
toward IN
fixed VBN
income NN
, ,
whose WP$
returns NNS
after IN
tax NN
have VBP
trailed VBN
tuition NN
increases NNS
. .

`` ``
I PRP
'm VBP
not RB
sure JJ
they PRP
're VBP
going VBG
to TO
make VB
it PRP
work VB
, ,
'' ''
says VBZ
Mr. NNP
Anderson NNP
. .

What WP
happens VBZ
if IN
the DT
sponsors NNS
do VBP
n't RB
have VB
the DT
cash NN
to TO
pay VB
the DT
tuitions NNS
? .

Florida NNP
and CC
Wyoming NNP
have VBP
backed VBN
up IN
their PRP$
guarantees NNS
with IN
the DT
full JJ
faith NN
and CC
credit NN
of IN
the DT
state NN
governments NNS
, ,
meaning NN
that IN
taxpayers NNS
will MD
pick VB
up IN
any DT
slack NN
. .

Not RB
so RB
Michigan NNP
. .

Its PRP$
plan NN
is VBZ
set VBN
up IN
as IN
an DT
independent JJ
agency NN
. .

The DT
state NN
says VBZ
there EX
's VBZ
no DT
worry NN
-- :
investment NN
returns NNS
, ,
combined VBN
with IN
fees NNS
and CC
the DT
gains NNS
from IN
unused JJ
plans NNS
, ,
will MD
provide VB
all PDT
the DT
cash NN
it PRP
needs VBZ
. .

Mr. NNP
Putka NNP
covers VBZ
education NN
from IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Boston NNP
bureau NN
. .

If IN
you PRP
start VBP
saving VBG
for IN
your PRP$
child NN
's POS
eduction NN
on IN
Jan. NNP
1 CD
, ,
1990 CD
, ,
here RB
's VBZ
the DT
monthly JJ
sum NN
you PRP
will MD
need VB
to TO
invest VB
to TO
pay VB
for IN
four CD
years NNS
at IN
Yale NNP
, ,
Notre NNP
Dame NNP
and CC
University NNP
of IN
Minnesota NNP
. .

Figures NNS
assume VBP
a DT
7 CD
% NN
annual JJ
rise NN
in IN
tuition NN
, ,
fees NNS
, ,
room NN
and CC
board NN
and CC
an DT
8 CD
% NN
annual JJ
investment NN
return NN
. .

Note VB
: :
These DT
figures NNS
are VBP
only RB
for IN
mandatory JJ
charges NNS
and CC
do VBP
n't RB
include VB
books NNS
, ,
transportation NN
etc FW
. .

\* SYM
For IN
in-state JJ
students NNS

Source NN
: :
PaineWebber NNP
Inc NNP
. .

AMONG IN
THE DT
CATFISH NNS
farmers NNS
in IN
the DT
watery JJ
delta NN
land NN
of IN
Humphreys NNP
County NNP
, ,
Miss. NNP
, ,
Allen NNP
D. NNP
Tharp NNP
of IN
Isola NNP
was VBD
one CD
of IN
the DT
best RBS
known VBN
and CC
most RBS
enterprising JJ
. .

He PRP
sold VBD
quarter-inch JJ
fingerlings NNS
to TO
stock VB
other JJ
farmers NNS
' POS
ponds NNS
, ,
and CC
he PRP
bought VBD
back RB
one-pound-or-so JJ
food-fish NNS
that IN
he PRP
`` ``
live-hauled VBD
'' ''
to TO
market VB
along IN
with IN
his PRP$
own JJ
whiskery JJ
crop NN
. .

And CC
he PRP
nearly RB
always RB
bought VBD
and CC
sold VBN
for IN
cash NN
. .

Along IN
the DT
way NN
, ,
Mr. NNP
Tharp NNP
omitted VBD
a DT
total NN
of IN
$ $
1.5 CD
million CD
from IN
his PRP$
receipts NNS
reported VBD
on IN
federal JJ
tax NN
returns NNS
for IN
three CD
years NNS
. .

The DT
returns NNS
landed VBD
in IN
the DT
hands NNS
of IN
an DT
Internal NNP
Revenue NNP
Service NNP
criminal JJ
investigator NN
, ,
Samuel NNP
James NNP
Baker NNP
. .

Mr. NNP
Baker NNP
interviewed VBD
or CC
wrote VBD
to TO
hundreds NNS
of IN
catfish NN
farmers NNS
, ,
live-haulers NNS
and CC
processors NNS
throughout IN
the DT
South NNP
before IN
coming VBG
up IN
with IN
detailed VBN
estimates NNS
of IN
purchases NNS
and CC
sales NNS
, ,
in IN
pounds NNS
and CC
dollars NNS
, ,
by IN
Mr. NNP
Tharp NNP
and CC
others NNS
. .

Unknown JJ
to TO
Mr. NNP
Tharp NNP
, ,
he PRP
had VBD
fouled VBN
his PRP$
net JJ
on IN
a DT
special JJ
IRS NNP
project NN
to TO
catch VB
catfish NN
farmers NNS
and CC
haulers NNS
inclined VBN
to TO
cheat VB
on IN
their PRP$
taxes NNS
. .

Confronted VBN
with IN
the DT
evidence NN
, ,
Mr. NNP
Tharp NNP
pleaded VBD
guilty JJ
to TO
one CD
charge NN
of IN
filing VBG
a DT
false JJ
return NN
and CC
was VBD
fined VBN
$ $
5,000 CD
and CC
sentenced VBN
to TO
18 CD
months NNS
in IN
prison NN
. .

He PRP
also RB
owes VBZ
a DT
lot NN
of IN
back RB
taxes VBZ
, ,
interest NN
and CC
civil JJ
fraud NN
penalties NNS
. .

A DT
lot NN
of IN
taxpayers NNS
out IN
there EX
are VBP
n't RB
as RB
paranoid JJ
as IN
one PRP
might MD
think VB
. .

Federal NNP
and CC
state NN
tax NN
enforcers NNS
develop VBP
many JJ
group NN
targets NNS
for IN
investigation NN
, ,
on IN
the DT
basis NN
of IN
occupation NN
, ,
high JJ
income NN
, ,
type NN
of IN
income NN
, ,
or CC
some DT
other JJ
characteristic JJ
that WDT
may MD
signal VB
an DT
opportunity NN
or CC
tendency NN
to TO
hide VB
income NN
or CC
exaggerate VB
deductions NNS
. .

Many JJ
professions NNS
long JJ
have NN
seemed VBN
to TO
be VB
targets NNS
because IN
of IN
the DT
exotic JJ
or CC
ludicrous JJ
efforts NNS
of IN
some DT
members NNS
to TO
offset VB
high JJ
income NN
with IN
fake JJ
losses NNS
from IN
phony JJ
tax NN
shelters NNS
: :
dentists NNS
who WP
invested VBD
in IN
dubiously RB
dubbed VBN
foreign JJ
films NNS
or CC
airline NN
pilots NNS
who WP
raised VBD
racehorses NNS
on IN
their PRP$
days NNS
off RB
. .
Mail-order NN
ministers NNS
have VBP
been VBN
squelched VBN
. .

Now RB
, ,
television NN
and CC
radio NN
evangelists NNS
are VBP
under IN
scrutiny NN
. .

The DT
IRS NNP
recently RB
won VBD
part NN
of IN
its PRP$
long-running JJ
battle NN
with IN
the DT
Church NNP
of IN
Scientology NNP
over IN
exemptions NNS
when WRB
the DT
U.S. NNP
Supreme NNP
Court NNP
held VBD
that IN
members NNS
' POS
payments NNS
to TO
the DT
church NN
were VBD
n't RB
deductible JJ
because IN
the DT
members NNS
received VBD
services NNS
in IN
return NN
. .
IRS NNP
statistics NNS
show VBP
that IN
the DT
more RBR
persistent JJ
hiders NNS
of IN
income NN
among IN
sole JJ
proprietors NNS
of IN
businesses NNS
include VBP
used-car NN
dealers NNS
, ,
entertainment NN
producers NNS
, ,
masons NNS
, ,
roofers NNS
, ,
and CC
taxi NN
owners NNS
. .

Small JJ
businesses NNS
in IN
general JJ
account NN
for IN
almost RB
40 CD
% NN
of IN
unreported JJ
personal JJ
income NN
, ,
the DT
IRS NNP
has VBZ
said VBD
. .

Once RB
such JJ
abuses NNS
become VBP
so RB
pervasive JJ
, ,
the DT
IRS NNP
builds VBZ
another DT
factor NN
into IN
its PRP$
secret JJ
computer NN
formula NN
for IN
selecting VBG
returns NNS
for IN
audit NN
and CC
does VBZ
n't RB
need VB
special JJ
projects NNS
for IN
them PRP
. .

San NNP
Franciscans NNP
have VBP
a DT
much RB
higher JJR
incidence NN
of IN
audits NN
than IN
average JJ
because IN
more JJR
of IN
them PRP
score VBP
high JJ
under IN
that DT
formula NN
, ,
not RB
because IN
IRS NNP
agents NNS
envy VBP
their PRP$
life NN
styles NNS
. .

Many JJ
openings NNS
for IN
mass NN
cheating NN
, ,
such JJ
as IN
questionable JJ
tax NN
shelters NNS
and CC
home NN
offices NNS
, ,
have VBP
gaped VBN
so RB
broadly RB
that IN
Congress NNP
has VBZ
passed VBN
stringent JJ
laws NNS
to TO
close VB
them PRP
. .

Deductions NNS
of IN
charitable JJ
gifts NNS
of IN
highly RB
valued VBN
art NN
now RB
must MD
be VB
accompanied VBN
by IN
appraisals NNS
. .

And CC
laws NNS
requiring VBG
the DT
reporting NN
of IN
more JJR
varieties NNS
of IN
transactions NNS
have VBP
enabled VBN
the DT
IRS NNP
to TO
rely VB
on IN
computers NNS
to TO
ferret VB
out RP
discrepancies NNS
with IN
returns NNS
and CC
to TO
generate VB
form-letter JJ
inquiries NNS
to TO
taxpayers NNS
. .

Unreported JJ
alimony NN
income NN
can MD
be VB
spotted VBN
by IN
computer NN
because IN
a DT
payer NN
of IN
alimony NN
-LRB- (
who WP
gets VBZ
a DT
deduction NN
-RRB- )
must MD
report VB
the DT
former JJ
spouse NN
's POS
Social NNP
Security NNP
number NN
. .

Passport NN
applicants NNS
now RB
must MD
give VB
Social NNP
Security NNP
numbers NNS
, ,
enabling VBG
the DT
IRS NNP
to TO
see VB
whether IN
Americans NNPS
living VBG
abroad RB
are VBP
filing VBG
required VBN
U.S. NNP
returns NNS
. .

But CC
while IN
IRS NNP
computers NNS
focus VBP
routinely RB
on IN
target NN
groups NNS
like IN
these DT
, ,
the DT
agency NN
has VBZ
assigned VBN
many JJ
agents NNS
to TO
special JJ
projects NNS
that WDT
need VBP
more RBR
personal JJ
attention NN
. .

In IN
most RBS
cases NNS
, ,
the DT
IRS NNP
says VBZ
, ,
these DT
projects NNS
are VBP
local JJ
or CC
regional JJ
, ,
rather RB
than IN
national JJ
, ,
and CC
arise VB
because IN
auditors NNS
in IN
an DT
area NN
detect VB
some DT
pattern NN
of IN
abuse NN
among IN
, ,
say VBP
, ,
factory NN
workers NNS
claiming VBG
that IN
having VBG
a DT
multitude NN
of IN
dependents NNS
frees VBZ
them PRP
from IN
tax NN
withholding NN
or CC
yacht NN
owners NNS
deducting VBG
losses NNS
from IN
sideline NN
charter NN
businesses NNS
. .

The DT
national JJ
office NN
currently RB
has VBZ
21 CD
noncriminal JJ
audit NN
projects NNS
, ,
according VBG
to TO
Marshall NNP
V. NNP
Washburn NNP
, ,
deputy NN
assistant NN
commissioner NN
for IN
examination NN
. .

Auditors NNS
involved VBN
in IN
noncriminal JJ
projects NNS
ca MD
n't RB
send VB
anyone NN
to TO
jail VB
, ,
but CC
they PRP
can MD
make VB
life NN
miserable JJ
in IN
other JJ
ways NNS
-- :
for IN
one CD
, ,
by IN
imposing VBG
some DT
of IN
the DT
150 CD
different JJ
civil JJ
penalties NNS
for IN
negligence NN
, ,
failure NN
to TO
file VB
a DT
return NN
, ,
and CC
the DT
like NN
. .

The DT
targeted VBN
audit NN
groups NNS
include VBP
direct JJ
sellers NNS
-- :
people NNS
who WP
sell VBP
cosmetics NNS
, ,
housewares NNS
and CC
other JJ
items NNS
door NN
to TO
door NN
or CC
at IN
home NN
parties NNS
-- :
and CC
employers NNS
who WP
label VBP
workers NNS
as IN
independent JJ
contractors NNS
instead RB
of IN
employees NNS
, ,
to TO
avoid VB
the DT
employer NN
share NN
of IN
payroll NN
taxes NNS
. .

Other JJ
projects NNS
look VBP
for IN
offenders NNS
among IN
waiters NNS
who WP
get VBP
cash NN
tips NNS
, ,
people NNS
who WP
engage VBP
in IN
large JJ
cash NN
transactions NNS
, ,
and CC
people NNS
whose WP$
returns NNS
show VBP
they PRP
sold VBD
a DT
home NN
for IN
a DT
profit NN
without IN
reinvesting VBG
the DT
capital NN
gain NN
in IN
another DT
home NN
by IN
the DT
end NN
of IN
the DT
same JJ
year NN
; :
the DT
gain NN
must MD
be VB
rolled VBN
over IN
within IN
two CD
years NNS
to TO
defer VB
tax NN
. .

And CC
now RB
that IN
returns NNS
must MD
show VB
dependents NNS
' POS
Social NNP
Security NNP
numbers NNS
, ,
the DT
IRS NNP
wants VBZ
to TO
see VB
which WDT
dependents NNS
show VBP
up IN
on IN
more JJR
than IN
one CD
return NN
-- :
and CC
which WDT
dependents NNS
turn VBP
out IN
to TO
be VB
deceased JJ
. .

Impetus NN
for IN
the DT
direct-seller NN
project NN
came VBD
from IN
a DT
congressional JJ
hearing VBG
some DT
years NNS
back RB
. .

It PRP
prompted VBD
an DT
IRS NNP
study NN
that WDT
found VBD
many JJ
sellers NNS
were VBD
concealing VBG
income NN
and CC
treating VBG
large JJ
amounts NNS
of IN
nondeductible JJ
travel NN
and CC
other JJ
personal JJ
expenses NNS
as IN
business NN
costs NNS
, ,
Mr. NNP
Washburn NNP
says VBZ
. .

The DT
study NN
provided VBD
criteria NNS
for IN
singling VBG
out RP
returns NNS
of IN
`` ``
potentially RB
noncompliant JJ
'' ''
taxpayers NNS
who WP
report VBP
low JJ
income NN
and CC
large JJ
expenses NNS
from IN
a DT
part-time JJ
business NN
. .

The DT
Tax NNP
Court NNP
recently RB
denied VBD
business NN
deductions NNS
by IN
Mr. NNP
and CC
Mrs. NNP
Peter NNP
S. NNP
Rubin NNP
of IN
Cherry NNP
Hill NNP
, ,
N.J. NNP
, ,
who WP
both DT
were VBD
part-time JJ
distributors NNS
of IN
Amway NNP
products NNS
in IN
addition NN
to TO
their PRP$
regular JJ
jobs NNS
as IN
sales NNS
people NNS
in IN
other JJ
fields NNS
. .

For IN
1984 CD
, ,
they PRP
reported VBD
gross JJ
income NN
of IN
$ $
1,647 CD
from IN
Amway NNP
sales NNS
, ,
offset VB
by IN
expenses NNS
totaling VBG
$ $
16,746 CD
-- :
including VBG
car NN
costs NNS
of IN
$ $
6,805 CD
and CC
travel NN
and CC
entertainment NN
costs NNS
of IN
$ $
5,088 CD
. .

The DT
Tax NNP
Court NNP
did VBD
n't RB
believe VB
that IN
the DT
Rubins NNS
, ,
who WP
earned VBD
$ $
65,619 CD
in IN
their PRP$
regular JJ
jobs NNS
, ,
treated VBD
the DT
sideline NN
as IN
a DT
real JJ
business NN
and CC
derived VBN
`` ``
merely RB
incidental JJ
elements NNS
of IN
recreation NN
and CC
other JJ
personal JJ
pleasure NN
and CC
benefits NNS
'' ''
from IN
it PRP
. .

The DT
Direct JJ
Selling NNP
Association NNP
, ,
a DT
trade NN
group NN
, ,
points VBZ
out IN
that IN
its PRP$
members NNS
, ,
which WDT
include VBP
Amway NNP
Corp. NNP
, ,
cooperate VB
with IN
the DT
IRS NNP
to TO
distribute VB
tax-compliance NN
material NN
to TO
sales NNS
people NNS
and CC
are VBP
helping VBG
to TO
prepare VB
a DT
public-service JJ
television NN
program NN
on IN
the DT
subject NN
. .

The DT
independent-contractor JJ
project NN
, ,
which WDT
began VBD
in IN
1988 CD
, ,
involves VBZ
about IN
350 CD
IRS NNP
agents NNS
. .

In IN
the DT
fiscal JJ
nine CD
months NNS
ended VBD
June NNP
30 CD
, ,
reports NNS
Raymond NNP
P. NNP
Keenan NNP
, ,
assistant NN
commissioner NN
for IN
collection NN
, ,
they PRP
examined VBD
about IN
13,000 CD
employers NNS
, ,
assessed VBN
more JJR
than IN
$ $
67 CD
million CD
in IN
delinquent JJ
employment NN
taxes NNS
, ,
and CC
reclassified VBD
about IN
56,000 CD
workers NNS
as IN
employees NNS
instead RB
of IN
self-employed JJ
contractors NNS
. .

The DT
number NN
of IN
misclassified VBN
workers NNS
may MD
be VB
in IN
the DT
millions NNS
, ,
mostly RB
paid VBN
by IN
small JJ
firms NNS
. .

Many JJ
workers NNS
, ,
especially RB
professionals NNS
, ,
want VBP
to TO
remain VB
independent JJ
to TO
avoid VB
tax NN
withholding NN
and CC
to TO
continue VB
to TO
deduct VB
many JJ
expenses NNS
that IN
employees NNS
ca MD
n't RB
. .

But CC
many JJ
others NNS
, ,
who WP
want VBP
to TO
qualify VB
for IN
employee NN
benefits NNS
and CC
unemployment NN
compensation NN
, ,
become VB
tipsters NNS
for IN
the DT
IRS NNP
, ,
says VBZ
Jerry NNP
Lackey NNP
, ,
who WP
manages VBZ
the DT
IRS NNP
project NN
's POS
force NN
of IN
nine CD
agents NNS
in IN
north RB
and CC
central JJ
Florida NNP
from IN
Orlando NNP
. .

Firms NNS
that WDT
are VBP
paying VBG
employment NN
taxes NNS
also RB
provide VBP
leads VBZ
to TO
competitors NNS
that WDT
are VBP
n't RB
, ,
he PRP
says VBZ
. .

In IN
his PRP$
area NN
, ,
Mr. NNP
Lackey NNP
continues VBZ
, ,
the DT
miscreant JJ
employers NNS
most RBS
commonly RB
are VBP
in IN
construction NN
-- :
doing VBG
framing NN
, ,
drywall NN
, ,
masonry NN
and CC
similar JJ
work NN
. .

But CC
a DT
medical JJ
clinic NN
with IN
about IN
20 CD
employees NNS
wrongly RB
listed VBN
all DT
of IN
them PRP
-- :
including VBG
physicians NNS
and CC
receptionists NNS
-- :
as IN
independent JJ
contractors NNS
. .

The DT
IRS NNP
assessed VBD
the DT
clinic NN
$ $
350,000 CD
in IN
back JJ
payroll NN
taxes NNS
. .

It PRP
assessed VBD
nearly RB
$ $
500,000 CD
against IN
a DT
cruise-ship NN
company NN
that WDT
carried VBD
about IN
100 CD
deckhands NNS
, ,
cooks NNS
, ,
bartenders NNS
, ,
entertainers NNS
and CC
other JJ
employees NNS
as IN
self-employed JJ
independents NNS
. .
Revenue-short JJ
states NNS
also RB
are VBP
becoming VBG
more RBR
aggressive JJ
pursuers NNS
of IN
tax NN
delinquents NNS
, ,
and CC
perhaps RB
none NN
tracks VBZ
them PRP
down RB
with IN
more JJR
relish NN
than IN
does VBZ
New NNP
York NNP
since IN
it PRP
acquired VBD
an DT
$ $
80 CD
million CD
computer NN
system NN
in IN
1985 CD
. .

The DT
state NN
's POS
tax NN
enforcers NNS
have VBP
amassed VBN
data NNS
bases NNS
from IN
other JJ
New NNP
York NNP
agencies NNS
that WDT
license VBP
or CC
register VB
professionals NNS
and CC
businesses NNS
; :
from IN
exchange NN
agreements NNS
with IN
the DT
IRS NNP
, ,
24 CD
other JJ
states NNS
, ,
and CC
two CD
Canadian JJ
provinces NNS
, ,
and CC
even RB
from IN
phonebook NN
Yellow NNP
Pages NNPS
. .

Thus RB
armed VBN
for IN
massive JJ
matching NN
of IN
documents NNS
by IN
computer NN
, ,
they PRP
single JJ
out RP
high-income JJ
groups NNS
, ,
looking VBG
primarily RB
for IN
people NNS
who WP
have VBP
n't RB
filed VBN
New NNP
York NNP
income-tax NN
returns NNS
. .

The DT
state NN
has VBZ
combed VBN
through IN
records NNS
relating VBG
to TO
architects NNS
, ,
stockbrokers NNS
, ,
lawyers NNS
in IN
the DT
New NNP
York NNP
City NNP
area NN
, ,
construction NN
workers NNS
from IN
out IN
of IN
the DT
state NN
, ,
and CC
homeowners NNS
who WP
claim VBP
to TO
be VB
residents NNS
of IN
other JJ
states NNS
-- :
especially RB
Florida NNP
, ,
which WDT
has VBZ
no DT
personal JJ
income NN
tax NN
. .

Soon RB
to TO
feel VB
the DT
glare NN
of IN
attention NN
are VBP
lawyers NNS
elsewhere RB
in IN
the DT
state NN
, ,
doctors NNS
, ,
dentists NNS
, ,
and CC
accountants NNS
, ,
says VBZ
Frederick NNP
G. NNP
Hicks NNP
, ,
director NN
of IN
the DT
tax-department JJ
division NN
that WDT
develops VBZ
the DT
computer-matching JJ
programs NNS
. .

The DT
department NN
has VBZ
collected VBN
over IN
$ $
6.5 CD
million CD
from IN
brokers NNS
so RB
far RB
and CC
recommended VBD
more JJR
than IN
30 CD
of IN
them PRP
for IN
criminal JJ
prosecution NN
. .

In IN
the DT
early JJ
stage NN
of IN
checking VBG
people NNS
with IN
incomes NNS
exceeding VBG
$ $
500,000 CD
who WP
were VBD
filing VBG
nonresident JJ
returns NNS
, ,
it PRP
squeezed VBD
$ $
7.5 CD
million CD
out IN
of IN
a DT
man NN
who WP
was VBD
posing VBG
as IN
a DT
Florida NNP
resident NN
. .

`` ``
We PRP
think VBP
we PRP
can MD
reclaim VB
hundreds NNS
of IN
millions NNS
of IN
dollars NNS
just RB
through IN
the DT
nonresident JJ
project NN
, ,
'' ''
Mr. NNP
Hicks NNP
declares VBZ
. .

Mr. NNP
Schmedel NNP
is VBZ
editor NN
of IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Tax NNP
Report NNP
column NN
. .

In IN
finding VBG
`` ``
good JJ
news NN
'' ''
in IN
Berkeley NNP
's POS
new JJ
freshman NN
admissions NNS
plan VBP
-LRB- (
`` ``
The DT
Privileged NNP
Class NNP
, ,
'' ''
editorial NN
, ,
Sept. NNP
20 CD
-RRB- )
, ,
you PRP
're VBP
reading VBG
the DT
headline NN
but CC
not RB
the DT
story NN
. .

The DT
plan NN
indeed RB
raises VBZ
from IN
40 CD
% NN
to TO
50 CD
% NN
the DT
number NN
of IN
freshmen NNS
applicants NNS
admitted VBD
strictly RB
by IN
academic JJ
criteria NNS
. .

But CC
that DT
does VBZ
n't RB
mean VB
`` ``
half NN
of IN
the DT
students NNS
attending VBG
Berkeley NNP
'' ''
will MD
be VB
admitted VBN
this DT
way NN
. .

The DT
plan NN
is VBZ
talking VBG
about IN
applicants NNS
admitted VBD
, ,
not RB
students NNS
who WP
enroll VBP
. .

Since IN
the DT
`` ``
yield NN
'' ''
from IN
this DT
top JJ
slice NN
of IN
applicants NNS
is VBZ
relatively RB
low JJ
, ,
boosting VBG
admits VBZ
from IN
40 CD
% NN
to TO
50 CD
% NN
will MD
boost VB
registrants NNS
from IN
about IN
31 CD
% NN
to TO
38 CD
% NN
of IN
the DT
class NN
. .

In IN
addition NN
, ,
perhaps RB
5 VBP
% NN
of IN
registrants NNS
will MD
come VB
from IN
a DT
new JJ
category NN
consisting VBG
of IN
applicants NNS
whose WP$
academic JJ
credentials NNS
`` ``
narrowly RB
missed VBD
'' ''
gaining VBG
them PRP
admission NN
in IN
the DT
first JJ
category NN
. .

But CC
against IN
that DT
combined VBD
increase NN
of IN
12 CD
% NN
in IN
students NNS
chosen VBN
by IN
academic JJ
criteria NNS
, ,
the DT
plan NN
eliminates VBZ
a DT
large JJ
category NN
in IN
which WDT
admissions NNS
now RB
are VBP
based VBN
on IN
grades NNS
, ,
test NN
scores NNS
and CC
`` ``
supplemental JJ
points NNS
'' ''
for IN
factors NNS
such JJ
as IN
high-school NN
curriculum NN
, ,
English-language JJ
proficiency NN
and CC
an DT
essay NN
. .

This DT
category NN
now RB
accounts VBZ
for IN
about IN
19 CD
% NN
of IN
admits VBZ
and CC
22 CD
% NN
of IN
registrants NNS
. .

The DT
plan NN
thus RB
will MD
decrease VB
by IN
22 CD
% NN
, ,
for IN
a DT
net JJ
loss NN
of IN
10 CD
% NN
, ,
the DT
number NN
of IN
students NNS
admitted VBD
primarily RB
by IN
academic JJ
criteria NNS
. .

Who WP
will MD
take VB
over IN
these DT
places NNS
? .

The DT
plan NN
creates VBZ
a DT
new JJ
category NN
of IN
students NNS
from IN
`` ``
socioeconomically RB
disadvantaged JJ
backgrounds NNS
, ,
'' ''
a DT
concept NN
not RB
yet RB
defined VBN
, ,
and CC
gives VBZ
them PRP
about IN
10 CD
% NN
of IN
the DT
class NN
. .

One CD
of IN
the DT
plan NN
's POS
authors NNS
has VBZ
defended VBN
the DT
`` ``
socioeconomic JJ
disadvantage NN
'' ''
category NN
as IN
perhaps RB
making VBG
more JJR
sense NN
than IN
the DT
current JJ
affirmative-action NN
preferences NNS
based VBN
on IN
race NN
. .

Perhaps RB
it PRP
does VBZ
. .

But CC
the DT
new JJ
category NN
does VBZ
not RB
replace VB
or CC
reduce VB
Berkeley NNP
's POS
broad JJ
racial JJ
preferences NNS
. .

Nor CC
will MD
students NNS
from IN
racial-minority JJ
groups NNS
who WP
are VBP
admitted VBN
through IN
the DT
new JJ
category NN
be VB
counted VBN
against IN
the DT
affirmative-action NN
`` ``
target NN
'' ''
for IN
their PRP$
group NN
. .

The DT
plan NN
thus RB
places VBZ
a DT
large JJ
new JJ
affirmative-action NN
program NN
, ,
based VBN
on IN
`` ``
socioeconomic JJ
disadvantage NN
, ,
'' ''
on IN
top NN
of IN
the DT
existing VBG
program NN
based VBN
on IN
race NN
. .

The DT
role NN
of IN
academic JJ
criteria NNS
in IN
choosing VBG
Berkeley NNP
's POS
freshmen NNS
can MD
only RB
decline VB
as IN
a DT
result NN
. .

Stephen NNP
R. NNP
Barnett NNP
Professor NNP
of IN
Law NNP
University NNP
of IN
California NNP
Berkeley NNP
, ,
Calif NNP
. .

FOR IN
THOSE DT
WHO WP
DELIGHT VBP
in IN
the DT
misfortune NN
of IN
others NNS
, ,
read VB
on RB
. .

This DT
is VBZ
a DT
story NN
about IN
suckers NNS
. .

Most JJS
of IN
us PRP
know VBP
a DT
sucker NN
. .
Many JJ
of IN
us PRP
are VBP
suckers NNS
. .

But CC
what WP
we PRP
may MD
not RB
know VB
is VBZ
just RB
what WP
makes VBZ
somebody NN
a DT
sucker NN
. .

What WP
makes VBZ
people NNS
blurt VBP
out IN
their PRP$
credit-card NN
numbers NNS
to TO
a DT
caller NN
they PRP
've VBP
never RB
heard VBN
of RB
? .

Do VBP
they PRP
really RB
believe VBP
that IN
the DT
number NN
is VBZ
just RB
for IN
verification NN
and CC
is VBZ
simply RB
a DT
formality NN
on IN
the DT
road NN
to TO
being VBG
a DT
grand-prize NN
winner NN
? .

What WP
makes VBZ
a DT
person NN
buy NN
an DT
oil NN
well RB
from IN
some DT
stranger NN
knocking VBG
on IN
the DT
screen NN
door NN
? .

Or CC
an DT
interest NN
in IN
a DT
retirement NN
community NN
in IN
Nevada NNP
that WDT
will MD
knock VB
your PRP$
socks NNS
off IN
, ,
once RB
it PRP
is VBZ
built VBN
? .

Because IN
in IN
the DT
end NN
, ,
these DT
people NNS
always RB
wind VBP
up IN
asking VBG
themselves PRP
the DT
same JJ
question NN
: :
`` ``
How WRB
could MD
I PRP
be VB
so RB
stupid JJ
? .
'' ''

There EX
are VBP
, ,
unfortunately RB
, ,
plenty NN
of IN
answers NNS
to TO
that DT
question NN
-- :
and CC
scam NN
artists NNS
know VBP
all DT
of IN
them PRP
. .

`` ``
These DT
people NNS
are VBP
very RB
skilled JJ
at IN
finding VBG
out IN
what WP
makes VBZ
a DT
person NN
tick NN
, ,
'' ''
says VBZ
Kent NNP
Neal NNP
, ,
chief NN
of IN
the DT
economic-crime JJ
unit NN
of IN
the DT
Broward NNP
County NNP
State NNP
Attorney NNP
's POS
Office NNP
in IN
Fort NNP
Lauderdale NNP
, ,
Fla. NNP
, ,
a DT
major JJ
haven NN
for IN
boiler NN
rooms NNS
. .

`` ``
Once RB
they PRP
size VBP
them PRP
up IN
, ,
then RB
they PRP
know VBP
what WP
buttons NNS
to TO
push VB
. .
'' ''

John NNP
Blodgett NNP
agrees VBZ
-- :
and CC
he PRP
ought MD
to TO
know VB
. .

He PRP
used VBD
to TO
be VB
a DT
boiler-room NN
salesman NN
, ,
peddling VBG
investments NNS
in IN
oil NN
and CC
gas NN
wells NNS
and CC
rare JJ
coins NNS
. .

`` ``
There EX
's VBZ
a DT
definite JJ
psychology NN
of IN
the DT
sale NN
and CC
different JJ
personalities NNS
you PRP
pitch VBP
different JJ
ways NNS
, ,
'' ''
he PRP
says VBZ
. .

The DT
most RBS
obvious JJ
pitch NN
, ,
of IN
course NN
, ,
is VBZ
the DT
lure NN
of IN
big JJ
returns NNS
. .

`` ``
We PRP
're VBP
all PDT
a DT
little JJ
greedy JJ
. .
Everyone NN
is VBZ
vulnerable JJ
, ,
'' ''
says VBZ
Charles NNP
Harper NNP
, ,
associate JJ
regional JJ
administrator NN
for IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
in IN
Miami NNP
. .

`` ``
These DT
guys NNS
prey VBP
on IN
human JJ
frailties NNS
. .
'' ''

While IN
the DT
promises NNS
of IN
big JJ
profits NNS
ought MD
to TO
set VB
off IN
warning NN
bells NNS
, ,
they PRP
often RB
do VBP
n't RB
, ,
in IN
part NN
because IN
get-rich-quick JJ
tales NNS
have VBP
become VBN
embedded VBN
in IN
American JJ
folklore NN
. .

`` ``
The DT
overnight JJ
success NN
story NN
is VBZ
part NN
of IN
our PRP$
culture NN
, ,
and CC
our PRP$
society NN
puts VBZ
an DT
emphasis NN
on IN
it PRP
with IN
lotteries NNS
and CC
Ed NNP
McMahon NNP
making VBG
millionaires NNS
out IN
of IN
people NNS
, ,
'' ''
says VBZ
Michael NNP
Cunningham NNP
, ,
an DT
associate JJ
professor NN
of IN
psychology NN
at IN
the DT
University NNP
of IN
Kentucky NNP
in IN
Louisville NNP
. .

`` ``
Other JJ
people NNS
are VBP
making VBG
it PRP
overnight JJ
, ,
and CC
the DT
rest NN
who WP
toil VBP
daily JJ
do NN
n't RB
want VB
to TO
miss VB
that DT
opportunity NN
when WRB
it PRP
seems VBZ
to TO
come VB
along IN
. .
'' ''

Adds VBZ
Spencer NNP
Barasch NNP
, ,
branch NN
chief NN
for IN
enforcement NN
at IN
the DT
SEC NNP
in IN
Fort NNP
Worth NNP
, ,
Texas NNP
: :
`` ``
Why WRB
do VBP
people NNS
play VB
the DT
lottery NN
when WRB
the DT
odds NNS
are VBP
great JJ
against IN
them PRP
? .

People NNS
are VBP
shooting VBG
for IN
a DT
dream NN
. .
'' ''

Clearly RB
, ,
though RB
, ,
scam NN
artists NNS
have VBP
to TO
be VB
a DT
bit NN
more RBR
subtle JJ
than IN
simply RB
promising JJ
millions NNS
; :
the DT
psychology NN
of IN
suckers NNS
is VBZ
n't RB
simply RB
the DT
psychology NN
of IN
the DT
greedy JJ
. .

There EX
's VBZ
also RB
, ,
for IN
instance NN
, ,
the DT
need NN
to TO
be VB
part NN
of IN
the DT
in-crowd NN
. .

So RB
one CD
popular JJ
ploy NN
is VBZ
to TO
make VB
a DT
prospective JJ
investor NN
feel NN
like IN
an DT
insider NN
, ,
joining VBG
an DT
exclusive JJ
group NN
that WDT
is VBZ
about IN
to TO
make VB
a DT
killing NN
. .

Between IN
1978 CD
and CC
1987 CD
, ,
for IN
instance NN
, ,
SH NNP
Oil NNP
in IN
Winter NNP
Haven NNP
, ,
Fla. NNP
, ,
sold VBN
interests NNS
in IN
oil NN
wells NNS
to TO
a DT
very RB
select VB
group NN
of IN
local JJ
residents NNS
, ,
while IN
turning VBG
away RB
numerous JJ
other JJ
eager JJ
investors NNS
. .

The DT
owner NN
of IN
the DT
company NN
, ,
Stephen NNP
Smith NNP
, ,
who WP
has VBZ
since IN
pleaded VBN
guilty JJ
to TO
state VB
and CC
federal JJ
fraud NN
charges NNS
, ,
confided VBD
to TO
investors NNS
that IN
he PRP
had VBD
a DT
secret JJ
agreement NN
with IN
Amoco NNP
Oil NNP
Co. NNP
and CC
said VBD
the DT
location NN
of IN
his PRP$
wells NNS
was VBD
confidential JJ
, ,
according VBG
to TO
a DT
civil JJ
suit NN
filed VBN
in IN
a DT
Florida NNP
state NN
court NN
by IN
the DT
Florida NNP
comptroller NN
's POS
office NN
. .

Neither CC
the DT
Amoco NNP
agreement NN
nor CC
the DT
wells NNS
existed VBD
, ,
the DT
suit NN
alleged VBN
. .

Such JJ
schemes NNS
, ,
says VBZ
Tony NNP
Adamski NNP
, ,
chief NN
of IN
the DT
financial-crimes NNS
unit NN
of IN
the DT
Federal NNP
Bureau NNP
of IN
Investigation NNP
in IN
Washington NNP
, ,
D.C. NNP
, ,
appeal NN
to TO
investors NNS
' POS
`` ``
desire NN
to TO
believe VB
this DT
is VBZ
really RB
true JJ
and CC
that IN
they PRP
are VBP
part NN
of IN
a DT
chosen VBN
group NN
being VBG
given VBN
this DT
opportunity NN
. .
'' ''

At IN
times NNS
, ,
salesmen NNS
may MD
embellish VB
the DT
inside JJ
information NN
with IN
`` ``
the DT
notion NN
that IN
this DT
is VBZ
some DT
slightly RB
shady JJ
, ,
slightly RB
illegal JJ
investment NN
the DT
person NN
is VBZ
being VBG
included VBN
in IN
, ,
'' ''
says VBZ
Mr. NNP
Cunningham NNP
. .

In IN
appealing JJ
to TO
those DT
with IN
a DT
bit NN
of IN
larceny NN
in IN
their PRP$
hearts NNS
, ,
the DT
fraud NN
artist NN
can MD
insist VB
that IN
a DT
person NN
keep NN
an DT
investment NN
secret JJ
-- :
insulating VBG
himself PRP
from IN
being VBG
discovered VBN
and CC
keeping VBG
his PRP$
victim NN
from IN
consulting NN
with IN
others NNS
. .

It PRP
also RB
adds VBZ
to TO
the DT
mystery NN
of IN
the DT
venture NN
. .

Mr. NNP
Blodgett NNP
, ,
the DT
boiler-room NN
veteran NN
, ,
believes VBZ
that IN
for IN
many JJ
investors NNS
, ,
the DT
get-rich-quick JJ
scams NNS
carry VBP
a DT
longed-for JJ
element NN
of IN
excitement NN
. .

`` ``
Once RB
people NNS
got VBD
into IN
it PRP
, ,
I PRP
was VBD
allowing VBG
them PRP
to TO
live VB
a DT
dream NN
, ,
'' ''
he PRP
says VBZ
. .

He PRP
phoned VBD
them PRP
with IN
updates NNS
on IN
the DT
investment NN
, ,
such JJ
as IN
`` ``
funny JJ
things NNS
that WDT
happened VBD
at IN
the DT
well RB
that DT
week NN
, ,
'' ''
he PRP
says VBZ
. .

`` ``
You PRP
gave VBD
them PRP
some DT
excitement NN
that IN
they PRP
did VBD
n't RB
have VB
in IN
their PRP$
lives NNS
. .
'' ''

-LRB- (
Mr. NNP
Blodgett NNP
, ,
who WP
was VBD
convicted VBN
in IN
Florida NNP
state NN
court NN
of IN
selling VBG
unregistered JJ
securities NNS
and CC
in IN
California NNP
state NN
court NN
of IN
unlawful JJ
use NN
of IN
the DT
telephone NN
to TO
defraud VB
and CC
deceive VB
, ,
is VBZ
now RB
on IN
probation NN
. .

He PRP
says VBZ
he PRP
has VBZ
quit VBN
the DT
business NN
and CC
is VBZ
back RB
in IN
school NN
, ,
majoring VBG
in IN
psychology NN
with IN
aspirations NNS
to TO
go VB
into IN
industrial JJ
psychology NN
. .
-RRB- )

For IN
some DT
investors NNS
, ,
it PRP
's VBZ
the DT
appearances NNS
that WDT
leave VBP
them PRP
deceived VBD
. .

`` ``
The DT
trappings NNS
of IN
success NN
go NN
a DT
long JJ
way NN
-- :
wearing VBG
the DT
right NN
clothes NNS
, ,
doing VBG
the DT
right NN
things NNS
, ,
'' ''
says VBZ
Paul NNP
Andreassen NNP
, ,
an DT
associate JJ
professor NN
of IN
psychology NN
at IN
Harvard NNP
. .

Conservative JJ
appearances NNS
make VBP
people NNS
think VBP
it PRP
's VBZ
a DT
conservative JJ
investment NN
. .

`` ``
People NNS
honestly RB
lose VBP
money NN
on IN
risky JJ
investments NNS
that IN
they PRP
did VBD
n't RB
realize VB
were VBD
a DT
crapshoot NN
, ,
'' ''
he PRP
says VBZ
. .

Paul NNP
Wenz NNP
, ,
a DT
Phoenix NNP
, ,
Ariz. NNP
, ,
attorney NN
, ,
says VBZ
a DT
promise NN
of IN
unrealistic JJ
returns NNS
would MD
have VB
made VBN
him PRP
leery JJ
. .

But CC
Mr. NNP
Wenz NNP
, ,
who WP
says VBZ
he PRP
lost VBD
$ $
43,000 CD
in IN
one CD
precious-metals NNS
deal VBP
and CC
$ $
39,000 CD
in IN
another DT
, ,
says VBZ
a DT
salesman NN
`` ``
used VBN
a DT
business-venture JJ
approach NN
'' ''
with IN
him PRP
, ,
sending VBG
investment NN
literature NN
, ,
a DT
contract NN
limiting VBG
the DT
firm NN
's POS
liability NN
, ,
and CC
an DT
insurance NN
policy NN
. .

When WRB
he PRP
visited VBD
the DT
company NN
's POS
office NN
, ,
he PRP
says VBZ
, ,
it PRP
had VBD
`` ``
all PDT
the DT
trappings NNS
of IN
legitimacy NN
. .
'' ''

Still JJ
others NNS
are VBP
stung VBN
by IN
a DT
desire NN
to TO
do VB
both DT
well RB
and CC
good JJ
, ,
says VBZ
Douglas NNP
Watson NNP
, ,
commanding VBG
officer NN
of IN
the DT
Los NNP
Angeles NNP
Police NNP
Department NNP
's POS
bunko-forgery NN
division NN
. .

Born-again JJ
Christians NNPS
are VBP
the DT
most RBS
visible JJ
targets NNS
of IN
unscrupulous JJ
do-gooder JJ
investment NN
pitches NNS
. .

But CC
hardly RB
the DT
only JJ
ones NNS
: :
The DT
scams NNS
promise VBP
-- :
among IN
other JJ
things NNS
-- :
to TO
help VB
save VB
the DT
environment NN
, ,
feed NN
starving VBG
families NNS
and CC
prevent VB
the DT
disappearance NN
of IN
children NNS
. .

Psychologists NNS
say VBP
isolated VBN
people NNS
who WP
do VBP
n't RB
discuss VB
their PRP$
investments NNS
with IN
others NNS
are VBP
particularly RB
at IN
risk NN
for IN
fraud NN
. .

Scam NN
artists NNS
seek VBP
out RP
such JJ
people NNS
-- :
or CC
try VB
to TO
make VB
sure JJ
that IN
their PRP$
victims NNS
isolate VBP
themselves PRP
. .

For IN
instance NN
, ,
salesmen NNS
may MD
counter VB
a DT
man NN
's POS
objection NN
that IN
he PRP
wants VBZ
to TO
discuss VB
an DT
investment NN
with IN
his PRP$
wife NN
by IN
asking VBG
, ,
`` ``
Who WP
wears VBZ
the DT
pants NNS
in IN
your PRP$
family NN
? .
'' ''

Or CC
an DT
investor NN
who WP
wants VBZ
his PRP$
accountant NN
's POS
advice NN
may MD
be VB
told VBN
, ,
`` ``
You PRP
seem VBP
like IN
a DT
guy NN
who WP
can MD
make VB
up IN
his PRP$
own JJ
mind NN
. .
'' ''

Often RB
con JJ
artists NNS
will MD
try VB
to TO
disarm VB
their PRP$
victims NNS
by IN
emphasizing VBG
similarities NNS
between IN
them PRP
. .

William NNP
Lynes NNP
, ,
a DT
retired VBN
engineer NN
from IN
Lockheed NNP
Corp. NNP
, ,
says VBZ
he PRP
and CC
his PRP$
wife NN
, ,
Lily NNP
, ,
warmed VBD
to TO
the DT
investment NN
pitches NNS
of IN
a DT
penny-stock JJ
peddler NN
from IN
Stuart-James NNP
Co. NNP
in IN
Atlanta NNP
after IN
the DT
broker NN
told VBD
them PRP
he PRP
, ,
too RB
, ,
had VBD
once RB
worked VBN
with IN
Lockheed NNP
. .

The DT
Lyneses NNP
, ,
of IN
Powder NNP
Springs NNP
, ,
Ga. NNP
, ,
have VBP
filed VBN
suit NN
in IN
Georgia NNP
state NN
court NN
against IN
Stuart NNP
James NNP
, ,
alleging VBG
fraud NN
. .

They PRP
are VBP
awaiting VBG
an DT
arbitration NN
proceeding NN
. .

They PRP
say VBP
the DT
broker NN
took VBD
them PRP
out IN
for IN
lunch NN
frequently RB
. .

He PRP
urged VBD
them PRP
to TO
refer VB
their PRP$
friends NNS
, ,
who WP
also RB
lost VBD
money NN
. .

-LRB- (
Donald NNP
Trinen NNP
, ,
an DT
attorney NN
for IN
the DT
penny-brokerage JJ
firm NN
, ,
denies VBZ
the DT
fraud NN
allegations NNS
and CC
says VBZ
the DT
Lyneses NNP
were VBD
fully RB
apprised VBN
that IN
they PRP
were VBD
pursuing VBG
a DT
high-risk JJ
investment NN
. .
-RRB- )

`` ``
It PRP
's VBZ
not RB
uncommon JJ
for IN
these DT
guys NNS
to TO
send VB
pictures NNS
of IN
themselves PRP
or CC
their PRP$
families NNS
to TO
ingratiate VB
themselves PRP
to TO
their PRP$
clients NNS
, ,
'' ''
says VBZ
Terree NNP
Bowers NNP
, ,
chief NN
of IN
the DT
major-frauds JJ
section NN
of IN
the DT
U.S. NNP
attorney NN
's POS
office NN
in IN
Los NNP
Angeles NNP
. .

`` ``
We PRP
've VBP
seen VBN
cases NNS
where WRB
salesmen NNS
will MD
affect VB
the DT
accent NN
of IN
the DT
region NN
of IN
the DT
country NN
they PRP
are VBP
calling VBG
. .

Anything NN
to TO
make VB
a DT
sale NN
. .
'' ''

Experts NNS
say VBP
that IN
whatever WDT
a DT
person NN
's POS
particular JJ
weak JJ
point NN
, ,
timing NN
is VBZ
crucial JJ
. .

People NNS
may MD
be VB
particularly RB
vulnerable JJ
to TO
flim-flam NN
pitches NNS
when WRB
they PRP
are VBP
in IN
the DT
midst NN
of IN
a DT
major JJ
upheaval NN
in IN
their PRP$
lives NNS
. .

`` ``
Sometimes RB
when WRB
people NNS
are VBP
making VBG
big JJ
changes NNS
, ,
retiring VBG
from IN
their PRP$
jobs NNS
, ,
moving VBG
to TO
a DT
new JJ
area NN
, ,
they PRP
lose VBP
their PRP$
bearings NNS
, ,
'' ''
says VBZ
Maury NNP
Elvekrog NNP
, ,
a DT
licensed VBN
psychologist NN
who WP
is VBZ
now RB
an DT
investment NN
adviser NN
and CC
principal JJ
in IN
Seger-Elvekrog NNP
Inc. NNP
, ,
a DT
Birmingham NNP
, ,
Mich. NNP
, ,
investment-counseling JJ
firm NN
. .

`` ``
They PRP
may MD
be VB
susceptible JJ
to TO
some DT
song NN
and CC
dance NN
if IN
it PRP
hits VBZ
them PRP
at IN
the DT
right JJ
time NN
. .
'' ''

They PRP
are VBP
obviously RB
also RB
more RBR
susceptible JJ
when WRB
they PRP
need VBP
money NN
- :
retirees NNS
, ,
for IN
instance NN
, ,
trying VBG
to TO
bolster VB
their PRP$
fixed VBN
income NN
or CC
parents NNS
fretting VBG
over IN
how WRB
to TO
pay VB
for IN
a DT
child NN
's POS
college NN
expenses NNS
. .

`` ``
These DT
people NNS
are VBP
n't RB
necessarily RB
stupid JJ
or CC
naive JJ
. .

Almost RB
all DT
of IN
us PRP
in IN
comparable JJ
circumstances NNS
might MD
be VB
victimized VBN
in IN
some DT
way NN
, ,
'' ''
says VBZ
Jerald NNP
Jellison NNP
, ,
a DT
psychology NN
professor NN
at IN
the DT
University NNP
of IN
Southern NNP
California NNP
in IN
Los NNP
Angeles NNP
. .

Nick NNP
Cortese NNP
thinks VBZ
that DT
's VBZ
what WP
happened VBD
to TO
him PRP
. .

Mr. NNP
Cortese NNP
, ,
a DT
33-year-old NNP
Delta NNP
Air NNP
Lines NNPS
engineer NN
, ,
invested VBD
some DT
$ $
2,000 CD
in IN
penny NN
stocks NNS
through IN
a DT
broker NN
who WP
promised VBD
quick JJ
returns NNS
. .

`` ``
We PRP
were VBD
saving VBG
up VB
to TO
buy VB
a DT
house NN
, ,
and CC
my PRP$
wife NN
was VBD
pregnant JJ
, ,
'' ''
says VBZ
Mr. NNP
Cortese NNP
. .

`` ``
It PRP
was VBD
just RB
before IN
the DT
Christmas NNP
holidays NNS
, ,
and CC
I PRP
figured VBD
we PRP
could MD
use VB
some DT
extra JJ
cash NN
. .
'' ''

The DT
investment NN
is VBZ
worth JJ
about RB
$ $
130 CD
today NN
. .

`` ``
Maybe RB
it PRP
was VBD
just RB
a DT
vulnerable JJ
time NN
, ,
'' ''
says VBZ
Mr. NNP
Cortese NNP
. .

`` ``
Maybe RB
the DT
next JJ
day NN
or CC
even RB
an DT
hour NN
later RB
, ,
I PRP
would MD
n't RB
have VB
done VBN
it PRP
. .
'' ''

Ms. NNP
Brannigan NNP
is VBZ
a DT
staff NN
reporter NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Atlanta NNP
bureau NN
. .

Prices NNS
for IN
seats NNS
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
are VBP
recovering VBG
a DT
bit NN
after IN
hitting VBG
a DT
four-year JJ
low RB
earlier RBR
this DT
month NN
. .

Two CD
seats NNS
on IN
the DT
Big NNP
Board NNP
were VBD
sold VBN
yesterday NN
for IN
$ $
455,000 CD
, ,
and CC
then RB
$ $
500,000 CD
. .

The DT
previous JJ
sale NN
was VBD
$ $
436,000 CD
on IN
Oct. NNP
17 CD
; :
the DT
last JJ
time NN
prices NNS
were VBD
that IN
low NN
was VBD
November NNP
1985 CD
, ,
when WRB
a DT
seat NN
sold VBN
for IN
$ $
425,000 CD
. .

Prices NNS
peaked VBD
at IN
$ $
1,150,000 CD
in IN
September NNP
1987 CD
. .

Seats NNS
are VBP
currently RB
quoted VBN
at IN
$ $
430,000 CD
bid NN
and CC
$ $
525,000 CD
asked VBD
. .

FOX NN
HUNTING NN
HAS VBZ
been VBN
defined VBN
as IN
the DT
unspeakable JJ
in IN
pursuit NN
of IN
the DT
inedible JJ
, ,
but CC
at IN
least JJS
it PRP
's VBZ
exercise NN
. .

At IN
least JJS
it PRP
has VBZ
a DT
little JJ
dash NN
. .

Most JJS
of IN
us PRP
have VBP
to TO
spend VB
our PRP$
time NN
on IN
pursuits NNS
that WDT
afford VBP
neither DT
, ,
drab JJ
duties NNS
rather RB
than IN
pleasures NNS
. .

Like IN
trying VBG
to TO
buy VB
life NN
insurance NN
, ,
for IN
instance NN
, ,
an DT
endeavor NN
notably RB
lacking VBG
in IN
dash NN
. .

Call VB
it PRP
the DT
uninformed JJ
trudging VBG
after IN
the DT
incomprehensible NN
. .

But CC
sooner RBR
or CC
later RB
, ,
most RBS
of IN
us PRP
have VBP
to TO
think VB
about IN
life NN
insurance NN
, ,
just RB
as IN
we PRP
often RB
have VBP
to TO
think VB
about IN
having VBG
root-canal NN
work NN
. .

And CC
my PRP$
time NN
has VBZ
come VBN
. .

I PRP
'm VBP
33 CD
, ,
married VBN
, ,
no DT
children NNS
, ,
and CC
employed VBD
in IN
writing VBG
stories NNS
like IN
this DT
one CD
. .

In IN
times NNS
past JJ
, ,
life-insurance NN
salesmen NNS
targeted VBD
heads NNS
of IN
household NN
, ,
meaning NN
men NNS
, ,
but CC
ours PRP
is VBZ
a DT
two-income JJ
family NN
and CC
accustomed VBN
to TO
it PRP
. .

So RB
if IN
anything NN
happened VBD
to TO
me PRP
, ,
I PRP
'd MD
want VB
to TO
leave VB
behind IN
enough RB
so RB
that IN
my PRP$
33-year-old JJ
husband NN
would MD
be VB
able JJ
to TO
pay VB
off IN
the DT
mortgage NN
and CC
some DT
other JJ
debts NNS
-LRB- (
though IN
not RB
, ,
I PRP
admit VBP
, ,
enough RB
to TO
put VB
any DT
potential JJ
second JJ
wife NN
in IN
the DT
lap NN
of IN
luxury NN
-RRB- )
. .

Figuring VBG
that IN
maybe RB
$ $
100,000 CD
to TO
$ $
150,000 CD
would MD
do VB
but CC
having VBG
no DT
idea NN
of IN
what WP
kind NN
of IN
policy NN
I PRP
wanted VBD
, ,
I PRP
looked VBD
at IN
the DT
myriad JJ
products NNS
of IN
a DT
dozen NN
companies NNS
-- :
and CC
plunged VBD
into IN
a DT
jungle NN
of IN
gibberish NN
. .

Over IN
the DT
past JJ
decade NN
or CC
two CD
, ,
while IN
I PRP
was VBD
thinking VBG
about IN
fox NN
hunting NN
, ,
the DT
insurance NN
industry NN
has VBZ
spawned VBN
an DT
incredible JJ
number NN
of IN
products NNS
, ,
variations NNS
on IN
products NNS
, ,
and CC
variations NNS
on IN
the DT
variations NNS
. .

Besides IN
term NN
life NN
and CC
whole JJ
life NN
-LRB- (
the DT
old JJ
standbys NNS
-RRB- )
, ,
we PRP
now RB
have VBP
universal JJ
life NN
, ,
universal JJ
variable JJ
life NN
, ,
flexible JJ
adjustable JJ
universal JJ
life NN
, ,
policies NNS
with IN
persistency NN
bonuses NNS
, ,
policies NNS
festooned VBN
with IN
exotic JJ
riders NNS
, ,
living VBG
benefit NN
policies NNS
, ,
and CC
on IN
and CC
on RB
. .

What WP
to TO
do VB
? .

First RB
, ,
generalize VB
. .

Shorn VBN
of IN
all DT
their PRP$
riders NNS
, ,
special JJ
provisions NNS
, ,
and CC
other JJ
bells NNS
and CC
whistles NNS
, ,
insurance NN
policies NNS
can MD
still RB
be VB
grouped VBN
under IN
two CD
broad JJ
categories NNS
: :
so-called JJ
pure JJ
insurance NN
, ,
which WDT
amasses VBZ
no DT
cash NN
value NN
in IN
the DT
policy NN
and CC
pays VBZ
off IN
only RB
upon IN
death NN
, ,
and CC
permanent JJ
insurance NN
, ,
which WDT
provides VBZ
not RB
only RB
a DT
death NN
benefit NN
but CC
also RB
a DT
cash NN
value NN
in IN
the DT
policy NN
that WDT
can MD
be VB
used VBN
in IN
various JJ
ways NNS
while IN
the DT
insured VBN
is VBZ
still RB
alive JJ
. .

If IN
all DT
you PRP
want VBP
is VBZ
death-benefit JJ
coverage NN
, ,
pure JJ
insurance NN
-- :
a DT
term NN
policy NN
-- :
gives VBZ
you PRP
maximum JJ
bang NN
for IN
your PRP$
buck NN
, ,
within IN
limits NNS
. .

It PRP
's VBZ
much RB
cheaper JJR
than IN
permanent JJ
insurance NN
bought VBD
at IN
the DT
same JJ
age NN
. .

But CC
`` ``
term NN
'' ''
means VBZ
just RB
that IN
; :
the DT
policy NN
is VBZ
written VBN
for IN
a DT
specific JJ
time NN
period NN
only RB
and CC
must MD
be VB
renewed VBN
when WRB
it PRP
expires VBZ
. .

It PRP
may MD
also RB
stipulate VB
that IN
the DT
insured VBN
must MD
pass VB
another DT
medical JJ
exam NN
before IN
renewal NN
; :
if IN
you PRP
flunk VBP
-- :
which WDT
means VBZ
you PRP
need VBP
insurance NN
more JJR
than IN
ever RB
-- :
you PRP
may MD
not RB
be VB
able JJ
to TO
buy VB
it PRP
. .

Even RB
if IN
you PRP
're VBP
healthy JJ
and CC
can MD
renew VB
, ,
your PRP$
premium NN
will MD
go VB
up IN
sharply RB
because IN
you PRP
're VBP
that IN
much RB
older JJR
. .

So RB
term VBP
insurance NN
may MD
not RB
be VB
as RB
cheap JJ
as IN
it PRP
looks VBZ
. .

There EX
are VBP
all DT
sorts NNS
of IN
variations NNS
on IN
term NN
insurance NN
: :
policies NNS
structured VBN
to TO
pay VB
off IN
your PRP$
mortgage NN
debt NN
, ,
term NN
riders NNS
tacked VBD
on IN
to TO
permanent JJ
insurance NN
, ,
and CC
many JJ
others NNS
. .

One CD
variation NN
that WDT
appealed VBD
to TO
me PRP
at IN
first JJ
was VBD
the DT
`` ``
Money NNP
Smart NNP
Term NNP
Life NNP
'' ''
policy NN
offered VBN
by IN
Amex NNP
Life NNP
Insurance NNP
Co. NNP
, ,
the DT
American NNP
Express NNP
unit NN
, ,
to TO
the DT
parent NN
company NN
's POS
credit-card NN
holders NNS
. .

Upon IN
examination NN
, ,
however RB
, ,
I PRP
wondered VBD
whether IN
the DT
plan NN
made VBD
a DT
lot NN
of IN
sense NN
. .

Amex NNP
said VBD
it PRP
would MD
charge VB
me PRP
$ $
576 CD
a DT
year NN
for IN
$ $
100,000 CD
of IN
coverage NN
-- :
and CC
would MD
pay VB
me PRP
back RB
all PDT
the DT
premiums NNS
I PRP
put VBP
in IN
if IN
I PRP
canceled VBD
the DT
policy NN
after IN
10 CD
years NNS
. .

Sounds VBZ
great JJ
-- :
or CC
does VBZ
it PRP
? .

First RB
, ,
if IN
I PRP
canceled VBD
, ,
I PRP
'd MD
have VB
no DT
more JJR
insurance NN
, ,
a DT
not RB
insignificant JJ
consideration NN
. .

Second JJ
, ,
the DT
$ $
5,760 CD
I PRP
'd MD
get VB
back RB
would MD
be VB
much RB
diminished VBN
in IN
purchasing VBG
power NN
by IN
10 CD
years NNS
of IN
inflation NN
; :
Amex NNP
, ,
not RB
I PRP
, ,
would MD
get VB
the DT
benefit NN
of IN
the DT
investment NN
income NN
on IN
my PRP$
money NN
, ,
income NN
that WDT
would MD
have VB
exceeded VBN
the DT
inflation NN
rate NN
and CC
thus RB
given VBN
the DT
company NN
a DT
real JJ
profit NN
. .

Third NNP
and CC
most RBS
important JJ
, ,
Amex NNP
would MD
charge VB
me PRP
a DT
far RB
higher JJR
premium NN
than IN
other JJ
reputable JJ
companies NNS
would MD
on IN
a DT
straight JJ
term NN
policy NN
for IN
the DT
same JJ
amount NN
; :
I PRP
'd MD
be VB
paying VBG
so RB
heavily RB
just RB
to TO
have VB
the DT
option NN
of IN
getting VBG
my PRP$
premiums NNS
back RB
that IN
I PRP
'd MD
almost RB
have VB
to TO
cancel VB
to TO
make VB
the DT
whole JJ
thing NN
worthwhile JJ
. .

That DT
would MD
be VB
all DT
right NN
with IN
Amex NNP
, ,
which WDT
could MD
then RB
lock VB
in IN
its PRP$
investment NN
profit NN
, ,
but CC
it PRP
does VBZ
n't RB
add VB
up IN
to TO
a DT
`` ``
smart JJ
money NN
'' ''
move NN
for IN
me PRP
. .

Which WDT
goes VBZ
to TO
show VB
that IN
the DT
First NNP
Law NNP
applies VBZ
in IN
insurance NN
as IN
in IN
anything NN
else RB
: :
There EX
is VBZ
no DT
free JJ
lunch NN
, ,
there EX
is VBZ
only JJ
marketing NN
. .

And CC
the DT
Second NNP
Law NNP
, ,
unique JJ
to TO
insurance NN
? .

If IN
I PRP
die VBP
early JJ
, ,
I PRP
win VBP
-- :
a DT
hollow JJ
victory NN
, ,
since IN
I PRP
ca MD
n't RB
enjoy VB
it PRP
-- :
and CC
if IN
I PRP
live VBP
long JJ
, ,
the DT
insurer NN
wins NNS
. .

Always RB
. .

This DT
is VBZ
worth JJ
remembering NN
when WRB
insurers NNS
and CC
their PRP$
salesmen NNS
try VBP
to TO
sell VB
you PRP
permanent JJ
insurance NN
, ,
the DT
kind NN
that WDT
amasses VBZ
cash NN
value NN
. .

The DT
word NN
`` ``
death NN
'' ''
can MD
not RB
be VB
escaped VBN
entirely RB
by IN
the DT
industry NN
, ,
but CC
salesmen NNS
dodge VBP
it PRP
wherever WRB
possible JJ
or CC
cloak NN
it PRP
in IN
euphemisms NNS
, ,
preferring VBG
to TO
talk VB
about IN
`` ``
savings NNS
'' ''
and CC
`` ``
investment NN
'' ''
instead RB
. .

The DT
implication NN
is VBZ
that IN
your PRP$
permanent-insurance JJ
policy NN
is VBZ
really RB
some DT
kind NN
of IN
CD NNP
or CC
mutual-fund JJ
account NN
with IN
an DT
added VBN
feature NN
. .

That DT
is VBZ
gilding NN
the DT
lily NN
. .

The DT
fact NN
is VBZ
that IN
as IN
a DT
savings NNS
or CC
investment NN
vehicle NN
, ,
insurance NN
generally RB
runs VBZ
a DT
poor JJ
second JJ
to TO
any DT
direct JJ
investment NN
you PRP
might MD
make VB
in IN
the DT
same JJ
things NNS
the DT
insurance NN
company NN
is VBZ
putting VBG
your PRP$
money NN
into IN
. .

That DT
's VBZ
because IN
you PRP
have VBP
to TO
pay VB
for IN
the DT
insurance NN
portion NN
of IN
the DT
policy NN
and CC
the DT
effort NN
required VBN
to TO
sell VB
and CC
service VB
the DT
whole JJ
package NN
. .

Again RB
, ,
no DT
free JJ
lunch NN
. .

This DT
is VBZ
reflected VBN
in IN
a DT
built-in JJ
mortality NN
cost NN
-- :
in IN
effect NN
, ,
your PRP$
share NN
of IN
the DT
company NN
's POS
estimated VBN
liability NN
in IN
paying VBG
off IN
beneficiaries NNS
of IN
people NNS
who WP
had VBD
the DT
effrontery NN
to TO
die VB
while IN
under IN
its PRP$
protection NN
. .

And CC
in IN
most RBS
cases NNS
, ,
a DT
huge JJ
hunk NN
of IN
your PRP$
premium NN
in IN
the DT
initial JJ
year NN
or CC
two CD
of IN
the DT
the DT
policy NN
is VBZ
, ,
in IN
effect NN
, ,
paying VBG
the DT
salesman NN
's POS
commission NN
as IN
well RB
; :
investment NN
returns NNS
on IN
most RBS
policies NNS
are VBP
actually RB
negative JJ
for IN
several JJ
years NNS
, ,
largely RB
because IN
of IN
this DT
. .

So RB
view VBP
permanent JJ
insurance NN
for IN
what WP
it PRP
is VBZ
-- :
a DT
compromise NN
between IN
pure JJ
insurance NN
and CC
direct JJ
investment NN
. .

The DT
simplest JJS
, ,
most RBS
traditional JJ
form NN
of IN
permanent JJ
insurance NN
is VBZ
the DT
straight JJ
whole JJ
life NN
policy NN
. .

You PRP
pay VBP
a DT
set VBN
premium NN
for IN
a DT
set VBN
amount NN
of IN
coverage NN
, ,
the DT
company NN
invests VBZ
that DT
premium NN
in IN
a DT
portfolio NN
of IN
its PRP$
choosing NN
, ,
and CC
your PRP$
cash NN
value NN
and CC
dividends NNS
grow VBP
over IN
the DT
years NNS
. .

One CD
newer JJR
wrinkle NN
, ,
so RB
called VBN
single-premium JJ
life NN
-LRB- (
you PRP
pay VBP
for IN
the DT
whole JJ
policy NN
at IN
once RB
-RRB- )
, ,
has VBZ
been VBN
immensely RB
popular JJ
in IN
recent JJ
years NNS
for IN
tax NN
reasons NNS
; :
the DT
insured VBN
could MD
extract VB
cash NN
value NN
in IN
the DT
form NN
of IN
policy NN
`` ``
loans NNS
, ,
'' ''
and CC
none NN
of IN
the DT
proceeds NNS
were VBD
taxable JJ
even RB
though IN
they PRP
included VBD
gains NNS
on IN
investment NN
. .

Congress NNP
closed VBD
this DT
loophole NN
last JJ
year NN
, ,
or CC
thought VBD
it PRP
did VBD
. .

However RB
, ,
Monarch NNP
Capital NNP
Corp. NNP
of IN
Springfield NNP
, ,
Mass. NNP
, ,
has VBZ
developed VBN
a DT
`` ``
combination NN
plan NN
'' ''
of IN
annuity NN
and CC
insurance NN
coverage NN
that IN
it PRP
says VBZ
does VBZ
not RB
violate VB
the DT
new JJ
regulations NNS
and CC
that DT
allows VBZ
policy NN
loans NNS
without IN
tax NN
consequences NNS
. .
But CC
the DT
percentage NN
of IN
your PRP$
cash NN
reserve NN
that IN
you PRP
can MD
borrow VB
tax-free JJ
is VBZ
very RB
small JJ
. .

I PRP
'm VBP
not RB
prepared VBN
in IN
any DT
case NN
to TO
put VB
that IN
much JJ
money NN
into IN
a DT
policy NN
immediately RB
, ,
so IN
I PRP
look VBP
into IN
the DT
broad JJ
category NN
called VBD
universal JJ
life NN
. .

Hugely RB
popular JJ
, ,
it PRP
is VBZ
far RB
more RBR
flexible JJ
than IN
straight JJ
whole JJ
life NN
. .
I PRP
can MD
adjust VB
the DT
amount NN
of IN
insurance NN
I PRP
want VBP
against IN
the DT
amount NN
going VBG
into IN
investment NN
; :
I PRP
can MD
pay VB
more JJR
or CC
less JJR
than IN
the DT
so-called JJ
target NN
premium NN
in IN
a DT
given VBN
year NN
; :
and CC
I PRP
can MD
even RB
skip VB
payments NNS
if IN
my PRP$
cash NN
reserves NNS
are VBP
enough RB
to TO
cover VB
the DT
insurance NN
portion NN
of IN
the DT
policy NN
. .

In IN
looking VBG
at IN
these DT
and CC
other JJ
policies NNS
, ,
I PRP
learn VBP
to TO
ask VB
pointed VBD
questions NNS
about IN
some DT
of IN
the DT
assumptions NNS
built VBN
into IN
`` ``
policy NN
illustrations NNS
'' ''
-- :
the DT
rows NNS
of IN
numbers VBZ
that DT
show NN
me PRP
the DT
buildup NN
of IN
my PRP$
cash NN
values NNS
over IN
the DT
years NNS
. .

They PRP
commonly RB
give VBP
two CD
scenarios NNS
: :
One CD
is VBZ
based VBN
on IN
interest NN
rates NNS
that IN
the DT
company NN
guarantees NNS
-LRB- (
usually RB
4 CD
% NN
to TO
4.5 CD
% NN
-RRB- )
and CC
the DT
other NN
on IN
the DT
rate NN
it PRP
is VBZ
currently RB
getting VBG
on IN
investment NN
, ,
often RB
8.5 CD
% NN
or CC
more JJR
. .

Projecting VBG
the DT
latter NN
over IN
several JJ
decades NNS
, ,
I PRP
find VBP
my PRP$
cash NN
buildup NN
is VBZ
impressive JJ
-- :
but CC
can MD
any DT
high JJ
interest NN
rate NN
prevail VB
for IN
that DT
long JJ
? .

Not RB
likely JJ
, ,
I PRP
think VBP
. .
Also RB
, ,
some DT
policy NN
illustrations NNS
assume VBP
that IN
mortality NN
costs NNS
will MD
decline VB
or CC
that IN
I PRP
will MD
get VB
some DT
sort NN
of IN
dividend NN
bonus NN
after IN
the DT
10th JJ
year NN
. .

These DT
are VBP
not RB
certain JJ
, ,
either RB
. .

Companies NNS
`` ``
are VBP
n't RB
comfortable JJ
playing VBG
these DT
games NNS
, ,
but CC
they PRP
realize VBP
they PRP
're VBP
under IN
pressure NN
to TO
make VB
their PRP$
policies NNS
look VBP
good JJ
, ,
'' ''
says VBZ
Timothy NNP
Pfiefer NNP
, ,
an DT
actuarial JJ
consultant NN
at IN
Tillinghast NNP
, ,
a DT
unit NN
of IN
Towers NNP
Perrin NNP
Co. NNP
, ,
the DT
big JJ
New NNP
York NNP
consulting NN
firm NN
. .

Another DT
factor NN
to TO
consider VB
: :
Some DT
of IN
the DT
companies NNS
currently RB
earning VBG
very RB
high JJ
yields NNS
are VBP
doing VBG
so RB
through IN
substantial JJ
investment NN
in IN
junk NN
bonds NNS
, ,
and CC
you PRP
know VBP
how WRB
nervous JJ
the DT
market NN
has VBZ
been VBN
about IN
those DT
lately RB
. .

There EX
are VBP
seemingly RB
endless JJ
twists NNS
to TO
universal JJ
life NN
, ,
and CC
it PRP
pays VBZ
to TO
ask VB
questions NNS
about IN
all DT
of IN
them PRP
. .

At IN
a DT
back-yard JJ
barbecue NN
, ,
for IN
example NN
, ,
a DT
friend NN
boasts VBZ
that IN
she PRP
'll MD
only RB
have VB
to TO
pay VB
premiums NNS
on IN
her PRP$
John NNP
Hancock NNP
policy NN
for IN
seven CD
years NNS
and CC
that IN
her PRP$
death NN
benefits NNS
will MD
then RB
be VB
`` ``
guaranteed VBN
. .
'' ''

I PRP
call VBP
her PRP$
agent NN
, ,
David NNP
Dominici NNP
. .

Yes UH
, ,
he PRP
says VBZ
, ,
premiums NNS
on IN
such JJ
variable-rate JJ
coverage NN
can MD
be VB
structured VBN
to TO
`` ``
vanish VBP
'' ''
after IN
a DT
certain JJ
period NN
-- :
but CC
usually RB
only RB
if IN
interest NN
rates NNS
stay VBP
high JJ
enough RB
to TO
generate VB
sufficient JJ
cash NN
to TO
cover VB
the DT
annual JJ
cost NN
of IN
insurance NN
protection NN
. .
If IN
interest NN
rates NNS
plunge VBP
, ,
the DT
insurer NN
may MD
be VB
knocking VBG
on IN
my PRP$
door NN
, ,
asking VBG
for IN
steeper JJR
premium NN
payments NNS
to TO
maintain VB
the DT
same JJ
amount NN
of IN
protection NN
. .

I PRP
do VBP
n't RB
like IN
the DT
sound NN
of IN
that DT
. .

Some DT
insurers NNS
have VBP
also RB
started VBN
offering NN
`` ``
persistency NN
bonuses NNS
, ,
'' ''
such JJ
as IN
extra JJ
dividends NNS
or CC
a DT
marginally RB
higher JJR
interest NN
yield NN
, ,
if IN
the DT
policy NN
is VBZ
maintained VBN
for IN
10 CD
years NNS
. .

But CC
Glenn NNP
Daily NNP
, ,
a DT
New NNP
York-based JJ
financial JJ
consultant NN
, ,
warns VBZ
that IN
many NN
of IN
these DT
bonuses NNS
are VBP
`` ``
just RB
fantasies NNS
, ,
'' ''
because IN
most RBS
are VBP
n't RB
guaranteed VBN
by IN
the DT
companies NNS
. .

And CC
the DT
feature NN
is VBZ
so RB
new JJ
, ,
he PRP
adds VBZ
, ,
that IN
no DT
insurer NN
has VBZ
yet RB
established VBN
a DT
track NN
record NN
for IN
actually RB
making VBG
such JJ
payments NNS
. .

So-called JJ
living-benefits JJ
provisions NNS
also RB
merit VBP
a DT
close NN
inspection NN
. .

Offered NNP
by IN
insurers NNS
that WDT
include VBP
Security-Connecticut NNP
Life NNP
Insurance NNP
Co. NNP
, ,
Jackson NNP
National NNP
Life NNP
Insurance NNP
Co. NNP
, ,
and CC
National NNP
Travelers NNP
Life NNP
Insurance NNP
Co. NNP
, ,
these DT
policy NN
riders NNS
let VBP
me PRP
tap VBP
a DT
portion NN
of IN
my PRP$
death NN
benefits NNS
while IN
I PRP
'm VBP
still RB
alive JJ
. .

Some DT
provisions NNS
would MD
let VB
me PRP
collect VB
a DT
percentage NN
of IN
the DT
policy NN
's POS
face NN
value NN
to TO
pay VB
for IN
long-term JJ
care NN
such JJ
as IN
nursing-home NN
stays VBZ
; :
others NNS
would MD
allow VB
payments NNS
for IN
catastrophic JJ
illnesses NNS
and CC
conditions NNS
such JJ
as IN
cancer NN
, ,
heart NN
attarcks NNS
, ,
renal JJ
failure NN
and CC
kidney NN
transplants NNS
. .

But CC
the DT
catastrophic JJ
events NNS
for IN
which WDT
the DT
policyholder NN
can MD
collect VB
are VBP
narrowly RB
defined VBN
, ,
vary VBP
from IN
policy NN
to TO
policy NN
, ,
and CC
generally RB
permit VB
use NN
of IN
only RB
a DT
small JJ
fraction NN
of IN
the DT
face NN
amount NN
of IN
insurance NN
. .

Also RB
, ,
financial JJ
planners NNS
advising VBG
on IN
insurance NN
say VBP
that IN
to TO
their PRP$
knowledge NN
there EX
has VBZ
not RB
yet RB
been VBN
a DT
tax NN
ruling NN
exempting VBG
these DT
advance NN
payments NNS
from IN
taxes NNS
. .

And CC
considering VBG
the DT
extra JJ
cost NN
of IN
such JJ
provisions NNS
, ,
some DT
figure NN
that IN
people NNS
interested JJ
in IN
, ,
say VBP
, ,
paying VBG
for IN
extended VBN
nursing-home NN
care NN
would MD
be VB
better JJR
off IN
just RB
buying VBG
a DT
separate JJ
policy NN
that WDT
provides VBZ
it PRP
. .

I PRP
'm VBP
more RBR
favorably RB
impressed VBN
by IN
`` ``
no-load JJ
life NN
, ,
'' ''
even RB
though IN
it PRP
turns VBZ
out IN
to TO
be VB
low-load JJ
life NN
. .

Insureres NNS
selling VBG
these DT
policies NNS
market NN
them PRP
directly RB
to TO
the DT
public JJ
or CC
otherwise RB
do VBP
n't RB
use VB
commissioned VBN
salesmen NNS
; :
there EX
is VBZ
still RB
a DT
load NN
-- :
annual JJ
administrative JJ
fees NNS
and CC
initial JJ
`` ``
setup NN
'' ''
charges NNS
-- :
but CC
I PRP
figure VBP
that IN
the DT
lack NN
of IN
commission NN
and CC
of IN
`` ``
surrender NN
fees NNS
'' ''
for IN
dropping VBG
the DT
policy NN
early JJ
still RB
saves VBZ
me PRP
a DT
lot NN
. .

I PRP
compared VBD
one CD
universal JJ
policy NN
for IN
$ $
130,000 CD
face NN
amount NN
from IN
such JJ
an DT
insurer NN
, ,
American NNP
Life NNP
Insurance NNP
Corp. NNP
of IN
Lincoln NNP
, ,
Neb. NNP
, ,
with IN
a DT
similar JJ
offering NN
from IN
Equitable NNP
Life NNP
Assurance NNP
Society NNP
of IN
the DT
U.S. NNP
, ,
which WDT
operates VBZ
through IN
11,000 CD
commissioned VBN
salesmen NNS
. .

After IN
one CD
year NN
I PRP
could MD
walk VB
away RB
from IN
the DT
Ameritas NNP
policy NN
with IN
$ $
792 CD
, ,
but CC
Id NN
get VB
only RB
$ $
14 CD
from IN
the DT
Equitable NNP
. .

The DT
difference NN
is VBZ
magnified VBN
by IN
time NN
, ,
too RB
. .

At IN
age NN
65 CD
, ,
when WRB
I PRP
'd MD
stop VB
paying VBG
premiums NNS
, ,
the DT
Ameritas NNP
offering NN
would MD
have VB
a DT
projected VBN
cash NN
value NN
$ $
14,000 CD
higher JJR
than IN
the DT
other NN
, ,
even RB
though IN
the DT
Equitable NNP
's POS
policy NN
illustration NN
assumed VBD
a DT
fractionally RB
higher JJR
interest NN
rate NN
. .

Did VBD
I PRP
buy VBP
it PRP
? .

Well UH
, ,
not RB
yet RB
. .

I PRP
'm VBP
thinking VBG
about IN
using VBG
the DT
$ $
871 CD
annual JJ
premium NN
to TO
finance VB
a DT
trip NN
to TO
Paris NNP
first JJ
. .

A DT
person NN
can MD
do VB
some DT
heavy JJ
thinking NN
about IN
insurance NN
there EX
-- :
and CC
shop NN
for IN
something NN
more RBR
exciting JJ
while IN
she PRP
's VBZ
doing VBG
it PRP
. .
Rorer NNP
Group NNP
Inc. NNP
will MD
report VB
that IN
third-quarter JJ
profit NN
rose VBD
more JJR
than IN
15 CD
% NN
from IN
a DT
year NN
earlier RBR
, ,
though IN
the DT
gain NN
is VBZ
wholly RB
due JJ
to TO
asset NN
sales NNS
, ,
Robert NNP
Cawthorn NNP
, ,
chairman NN
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
, ,
said VBD
. .

His PRP$
projection NN
indicates VBZ
profit NN
in IN
the DT
latest JJS
quarter NN
of IN
more JJR
than IN
$ $
17.4 CD
million CD
, ,
or CC
55 NN
cents NNS
a DT
share NN
, ,
compared VBN
with IN
$ $
15.2 CD
million CD
, ,
or CC
48 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Mr. NNP
Cawthorn NNP
said VBD
in IN
an DT
interview NN
that IN
sales NNS
will MD
show VB
an DT
increase NN
from IN
a DT
year NN
ago RB
of IN
`` ``
somewhat RB
less JJR
than IN
10 CD
% NN
. .
'' ''

Through IN
the DT
first JJ
six CD
months NNS
of IN
1989 CD
, ,
sales NNS
had VBD
grown VBN
about IN
12 CD
% NN
from IN
the DT
year-earlier JJ
period NN
. .

Growth NN
of IN
10 CD
% NN
would MD
make VB
sales NNS
for IN
the DT
latest JJS
quarter NN
$ $
269 CD
million CD
, ,
compared VBN
with IN
$ $
244.6 CD
million CD
a DT
year NN
ago RB
. .

Mr. NNP
Cawthorn NNP
said VBD
the DT
profit NN
growth NN
in IN
the DT
latest JJS
quarter NN
was VBD
due JJ
to TO
the DT
sale NN
of IN
two CD
Rorer NNP
drugs NNS
. .

Asilone NNP
, ,
an DT
antacid NN
, ,
was VBD
sold VBN
to TO
Boots NNP
PLC NNP
, ,
London NNP
. .

Thrombinar NNP
, ,
a DT
drug NN
used VBN
to TO
stanch VB
bleeding VBG
, ,
was VBD
sold VBN
to TO
Jones NNP
Medical NNP
Industries NNP
Inc. NNP
, ,
St. NNP
Louis NNP
. .

He PRP
said VBD
Rorer NNP
sold VBD
the DT
drugs NNS
for IN
`` ``
nice JJ
prices NNS
'' ''
and CC
will MD
record VB
a DT
combined VBN
, ,
pretax JJ
gain NN
on IN
the DT
sales NNS
of IN
$ $
20 CD
million CD
. .

As IN
the DT
gain NN
from IN
the DT
sales NNS
indicates VBZ
, ,
operating VBG
profit NN
was VBD
`` ``
significantly RB
'' ''
below IN
the DT
year-earlier JJ
level NN
, ,
Mr. NNP
Cawthorn NNP
said VBD
. .

Rorer NNP
in IN
July NNP
had VBD
projected VBN
lower JJR
third-quarter JJ
operating NN
profit NN
but CC
higher JJR
profit NN
for IN
all DT
of IN
1989 CD
. .

He PRP
said VBD
the DT
company NN
is VBZ
still RB
looking VBG
for IN
`` ``
a DT
strong JJ
fourth JJ
quarter NN
in IN
all DT
areas NNS
-- :
sales NNS
, ,
operating VBG
income NN
and CC
net JJ
income NN
. .
'' ''

Mr. NNP
Cawthorn NNP
attributed VBD
the DT
decline NN
in IN
third-quarter JJ
operating NN
profit NN
to TO
the DT
stronger JJR
dollar NN
, ,
which WDT
reduces VBZ
the DT
value NN
of IN
overseas JJ
profit NN
when WRB
it PRP
is VBZ
translated VBN
into IN
dollars NNS
; :
to TO
accelerated VBN
buying VBG
of IN
Rorer NNP
products NNS
in IN
the DT
second JJ
quarter NN
because IN
of IN
a DT
then-pending JJ
July NNP
1 CD
price NN
increase NN
, ,
and CC
to TO
higher JJR
marketing NN
expenses NNS
for IN
Rorer NNP
's POS
Maalox NNP
antacid NN
, ,
whose WP$
sales NNS
and CC
market NN
share NN
in IN
the DT
U.S. NNP
had VBD
slipped VBN
in IN
the DT
first JJ
half NN
of IN
1989 CD
. .

He PRP
said VBD
Rorer NNP
opted VBD
to TO
sell VB
Asilone NNP
and CC
Thrombinar NNP
to TO
raise VB
revenue NN
that WDT
would MD
`` ``
kick VB
start NN
'' ''
its PRP$
increased VBN
marketing NN
efforts NNS
behind IN
Maalox NNP
, ,
still RB
its PRP$
top-selling JJ
product NN
with IN
about RB
$ $
215 CD
million CD
in IN
world-wide JJ
sales NNS
in IN
1988 CD
. .

`` ``
We PRP
had VBD
underfunded VBN
Maalox NNP
for IN
a DT
year NN
, ,
'' ''
he PRP
said VBD
, ,
because IN
the DT
company NN
was VBD
concentrating VBG
on IN
research NN
and CC
development NN
and CC
promoting VBG
other JJ
drugs NNS
. .

He PRP
said VBD
Rorer NNP
will MD
spend VB
$ $
15 CD
million CD
to TO
$ $
20 CD
million CD
more JJR
on IN
Maalox NNP
advertising NN
and CC
promotion NN
in IN
the DT
second JJ
half NN
of IN
1989 CD
than IN
in IN
the DT
year-earlier JJ
period NN
. .

A DT
`` ``
big JJ
chunk NN
'' ''
of IN
that DT
additional JJ
spending NN
came VBD
in IN
the DT
third JJ
quarter NN
, ,
he PRP
said VBD
. .

Hoechst NNP
AG NNP
said VBD
it PRP
will MD
stop VB
producing VBG
fertilizer NN
in IN
1990 CD
because IN
of IN
continued VBN
losses NNS
and CC
a DT
bleak JJ
outlook NN
. .

The DT
West JJ
German JJ
chemical NN
concern NN
said VBD
it PRP
will MD
close VB
the DT
last JJ
remaining VBG
fertilizer NN
plant NN
in IN
Oberhausen NNP
in IN
the DT
fall NN
of IN
next JJ
year NN
. .

Hoechst NNP
said VBD
the DT
fertilizer NN
market NN
faces VBZ
overcapacity NN
in IN
Western NNP
Europe NNP
, ,
rising VBG
imports NNS
from IN
East NNP
bloc NN
countries NNS
and CC
overseas JJ
, ,
and CC
declining VBG
demand NN
. .

HomeFed NNP
Corp. NNP
said VBD
its PRP$
main JJ
subsidiary NN
, ,
Home NNP
Federal NNP
Savings NNP
& CC
Loan NNP
, ,
converted VBN
from IN
a DT
federal JJ
savings NNS
and CC
loan NN
to TO
a DT
federal JJ
savings NNS
bank VBP
and CC
changed VBN
its PRP$
name NN
to TO
HomeFed NNP
Bank NNP
. .

The DT
federal JJ
Office NNP
of IN
Thrift NNP
Supervision NNP
approved VBD
the DT
conversion NN
last JJ
Friday NNP
, ,
HomeFed NNP
said VBD
. .

The DT
change NN
in IN
charter NN
does VBZ
n't RB
alter VB
the DT
federal JJ
insurance NN
of IN
deposits NNS
, ,
federal JJ
regulatory JJ
powers NNS
or CC
company NN
operations NNS
, ,
a DT
spokesman NN
said VBD
. .

It PRP
was VBD
the DT
second JJ
anniversary NN
of IN
the DT
1987 CD
crash NN
, ,
but CC
this DT
time NN
it PRP
was VBD
different JJ
. .

Stocks NNS
rallied VBD
on IN
good JJ
earnings NNS
reports NNS
and CC
on IN
data NNS
that WDT
showed VBD
less JJR
inflation NN
than IN
expected VBN
. .

Blue JJ
chips NNS
led VBD
the DT
march NN
up IN
in IN
heavy JJ
trading NN
. .

The DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
rose VBD
39.55 CD
points NNS
to TO
2683.20 CD
. .

The DT
30 CD
industrials NNS
led VBD
the DT
market NN
higher JJR
from IN
the DT
opening NN
bell NN
as IN
foreign JJ
buyers NNS
stepped VBD
in RB
. .

By IN
afternoon NN
, ,
the DT
broader JJR
market NN
joined VBD
the DT
advance NN
in IN
full JJ
strength NN
. .

Standard NNP
& CC
Poor NNP
's POS
500-stock NNP
Index NNP
rose VBD
5.37 CD
to TO
347.13 CD
and CC
the DT
Nasdaq NNP
composite JJ
index NN
jumped VBD
7.52 CD
to TO
470.80 CD
. .

New NNP
York NNP
Stock NNP
Exchange NNP
volume NN
swelled VBD
to TO
198,120,000 CD
shares NNS
. .

The DT
industrials NNS
were VBD
up IN
about IN
60 CD
points NNS
in IN
the DT
afternoon NN
, ,
but CC
cautious JJ
investors NNS
took VBD
profits NNS
before IN
the DT
close NN
. .

Traders NNS
said VBD
a DT
variety NN
of IN
factors NNS
triggered VBD
the DT
rally NN
. .

The DT
consumer NN
price NN
index NN
rose VBD
0.2 CD
% NN
in IN
September NNP
, ,
while IN
many JJ
economists NNS
were VBD
looking VBG
for IN
a DT
0.4 CD
% NN
increase NN
. .

Stock-index NN
arbitrage NN
buy NN
programs NNS
-- :
in IN
which WDT
traders NNS
buy VBP
stock NN
against IN
offsetting VBG
positions NNS
in IN
futures NNS
to TO
lock VB
in IN
price NN
differences NNS
-- :
helped VBD
the DT
rally NN
's POS
momentum NN
. .

The DT
euphoria NN
was VBD
such JJ
that IN
investors NNS
responded VBD
to TO
good JJ
earnings NNS
reports NNS
of IN
companies NNS
such JJ
as IN
American NNP
Express NNP
, ,
while IN
ignoring VBG
the DT
disappointing JJ
profits NNS
of IN
companies NNS
such JJ
as IN
Caterpillar NNP
, ,
analysts NNS
said VBD
. .

Stock-index NN
arbitrage NN
trading NN
was VBD
a DT
minor JJ
influence NN
in IN
yesterday NN
's POS
rally NN
, ,
traders NNS
said VBD
. .

Institutional JJ
buyers NNS
were VBD
the DT
main JJ
force NN
pushing VBG
blue JJ
chips NNS
higher JJR
. .

To TO
the DT
amazement NN
of IN
some DT
traders NNS
, ,
takeover NN
stocks NNS
were VBD
climbing VBG
again RB
. .

Hilton NNP
rose VBD
2 CD
7\/8 CD
to TO
100 CD
, ,
for IN
example NN
. .

Last NNP
Friday NNP
, ,
takeover NN
traders NNS
spilled VBD
out IN
of IN
Hilton NNP
, ,
knocking VBG
the DT
stock NN
down RB
21 CD
1\/2 CD
to TO
85 CD
. .

Among IN
other JJ
stocks NNS
involved VBN
in IN
restructurings NNS
or CC
rumored VBN
to TO
be VB
so RB
: :
Holiday NNP
Corp. NNP
gained VBD
1 CD
7\/8 CD
to TO
73 CD
and CC
Honeywell NNP
rose VBD
2 CD
7\/8 CD
to TO
81 CD
1\/2 CD
. .

One CD
floor NN
trader NN
noted VBD
in IN
astonishment NN
that DT
nobody NN
seemed VBD
to TO
mind VB
the DT
news NN
that IN
British JJ
Airways NNPS
is VBZ
n't RB
making VBG
a DT
special JJ
effort NN
to TO
revive VB
the DT
UAL NNP
buy-out NN
. .

The DT
announcement NN
of IN
the DT
buy-out NN
's POS
troubles NNS
triggered VBD
the DT
market NN
's POS
nose NN
dive NN
a DT
week NN
ago RB
. .

Takeover NN
enthusiasm NN
may MD
have VB
been VBN
renewed VBN
when WRB
an DT
investor NN
group NN
disclosed VBD
yesterday NN
that IN
it PRP
had VBD
obtained VBN
all PDT
the DT
financing NN
required VBN
to TO
complete VB
its PRP$
$ $
1.6 CD
billion CD
leveraged JJ
buy-out NN
of IN
American NNP
Medical NNP
International NNP
. .
`` ``
That DT
's VBZ
put NN
some DT
oomph NN
back RB
into IN
this DT
market NN
, ,
'' ''
said VBD
Peter NNP
VandenBerg NNP
, ,
a DT
vice NN
president NN
of IN
equity NN
trading NN
at IN
Shearson NNP
Lehman NNP
Hutton NNP
. .

But CC
some DT
traders NNS
thought VBD
there EX
was VBD
less JJR
to TO
the DT
rally NN
than IN
met VBN
the DT
eye NN
. .

`` ``
There EX
is VBZ
no DT
strength NN
behind IN
this DT
rally NN
, ,
'' ''
asserted VBD
Chung NNP
Lew NNP
, ,
head NN
trader NN
at IN
Kleinwort NNP
Benson NNP
North NNP
America NNP
. .

`` ``
It PRP
's VBZ
traders NNS
squaring VBG
positions NNS
. .

It PRP
's VBZ
not RB
good JJ
; :
the DT
market NN
is VBZ
setting VBG
up IN
for IN
another DT
fall NN
. .
'' ''

Indeed RB
, ,
many JJ
traders NNS
said VBD
that DT
uncertainty NN
about IN
today NN
's POS
monthly JJ
expiration NN
of IN
stocks-index JJ
futures NNS
and CC
options NNS
, ,
and CC
options NNS
on IN
individual JJ
stocks NNS
, ,
prompted VBD
a DT
lot NN
of IN
buying VBG
by IN
speculative JJ
traders NNS
who WP
were VBD
unwinding NN
positions NNS
that WDT
were VBD
bets NNS
on IN
declining VBG
stock NN
prices NNS
. .

The DT
number NN
of IN
outstanding JJ
contracts NNS
in IN
the DT
October NNP
Major NNP
Market NNP
Index NNP
jumped VBD
from IN
5,273 CD
on IN
Friday NNP
to TO
9,023 CD
on IN
Monday NNP
. .

The DT
MMI NNP
is VBZ
a DT
20-stock JJ
index NN
that IN
mimics VBZ
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
. .

Outstanding JJ
contracts NNS
are VBP
those DT
that WDT
remain VBP
to TO
be VB
liquidated VBN
. .

By IN
Wednesday NNP
, ,
the DT
outstanding JJ
October NNP
contracts NNS
amounted VBD
to TO
8,524 CD
, ,
representing VBG
about RB
$ $
1.13 CD
billion CD
in IN
stock NN
, ,
noted VBD
Donald NNP
Selkin NNP
, ,
head NN
of IN
stock-index NN
futures NNS
research VBP
at IN
Prudential-Bache NNP
Securities NNP
, ,
who WP
expects VBZ
a DT
volatile JJ
expiration NN
today NN
. .

`` ``
There EX
has VBZ
been VBN
a DT
tremendous JJ
increase NN
'' ''
in IN
MMI NNP
positions NNS
, ,
Mr. NNP
Selkin NNP
said VBD
. .

Consumer NN
stocks NNS
once RB
again RB
set VBN
the DT
pace NN
for IN
blue-chip JJ
issues NNS
. .

Philip NNP
Morris NNP
added VBD
1 CD
1\/8 CD
to TO
44 CD
1\/2 CD
in IN
Big NNP
Board NNP
composite JJ
trading NN
of IN
3.7 CD
million CD
shares NNS
, ,
Coca-Cola NNP
Co. NNP
gained VBD
2 CD
3\/8 CD
to TO
70 CD
3\/8 CD
, ,
Merck NNP
gained VBD
1 CD
3\/8 CD
to TO
77 CD
3\/8 CD
and CC
American NNP
Telephone NNP
& CC
Telegraph NNP
advanced VBD
7\/8 CD
to TO
43 CD
3\/8 CD
on IN
2.5 CD
million CD
shares NNS
. .

American NNP
Medical NNP
jumped VBD
1 CD
7\/8 CD
to TO
23 CD
5\/8 CD
. .

IMA NNP
Acquisition NNP
, ,
an DT
investor NN
group NN
that WDT
includes VBZ
First NNP
Boston NNP
and CC
the DT
Pritzker NNP
family NN
of IN
Chicago NNP
, ,
said VBD
Chemical NNP
Bank NNP
had VBD
made VBN
arrangements NNS
for IN
23 CD
other JJ
banks NNS
to TO
provide VB
$ $
509 CD
million CD
in IN
bank NN
financing NN
for IN
the DT
buy-out NN
offer NN
. .
Chemical NNP
and CC
six CD
other JJ
banks NNS
, ,
along IN
with IN
First NNP
Boston NNP
, ,
are VBP
providing VBG
the DT
rest NN
of IN
the DT
$ $
1.6 CD
billion CD
. .

Elsewhere RB
on IN
the DT
takeover NN
front NN
, ,
Time NNP
Warner NNP
advanced VBD
2 CD
5\/8 CD
to TO
136 CD
5\/8 CD
and CC
Warner NNP
Communications NNP
tacked VBD
on IN
7\/8 CD
to TO
63 CD
7\/8 CD
. .

The DT
Delaware NNP
Supreme NNP
Court NNP
affirmed VBD
a DT
ruling NN
that WDT
barred VBD
Chris-Craft NNP
Industries NNPS
from IN
voting VBG
its PRP$
Warner NNP
preferred JJ
stock NN
as IN
a DT
separate JJ
class NN
in IN
deciding VBG
on IN
the DT
companies NNS
' POS
proposed VBN
merger NN
. .

Paramount NNP
Communications NNPS
climbed VBD
1 CD
1\/4 CD
to TO
58 CD
1\/2 CD
and CC
MCA NNP
rose VBD
1 CD
1\/2 CD
to TO
64 CD
; :
both DT
media NNS
companies NNS
have VBP
long RB
been VBN
mentioned VBN
as IN
potential JJ
acquisition NN
candidates NNS
. .

Among IN
other JJ
actual JJ
and CC
rumored VBN
targets NNS
, ,
Woolworth NNP
rose VBD
1 CD
1\/4 CD
to TO
60 CD
1\/2 CD
, ,
Upjohn NNP
went VBD
up IN
1 CD
1\/8 CD
to TO
39 CD
3\/4 CD
, ,
Armstrong NNP
World NNP
Industries NNPS
gained VBD
1 CD
to TO
40 CD
1\/8 CD
and CC
Kollmorgen NNP
rose VBD
3\/4 CD
to TO
13 CD
7\/8 CD
. .

In IN
addition NN
: :
-- :
Soo NNP
Line NNP
jumped VBD
2 CD
3\/4 CD
to TO
20 CD
1\/4 CD
, ,
above IN
the DT
$ $
19.50 CD
a DT
share NN
that IN
Canadian NNP
Pacific NNP
offered VBD
for IN
the DT
company NN
in IN
a DT
takeover NN
proposal NN
. .

-- :
Xtra NNP
gained VBD
1 CD
1\/8 CD
to TO
27 CD
1\/8 CD
. .

Investor NNP
Robert NNP
M. NNP
Gintel NNP
, ,
who WP
owns VBZ
a DT
4.7 CD
% NN
stake NN
in IN
the DT
company NN
, ,
said VBD
he PRP
plans VBZ
a DT
proxy NN
fight NN
for IN
control NN
of IN
its PRP$
board NN
. .

-- :
Golden NNP
Nugget NNP
rose VBD
2 CD
to TO
28 CD
1\/4 CD
. .

Its PRP$
board NN
approved VBD
the DT
repurchase NN
of IN
as RB
many JJ
as IN
three CD
million CD
common JJ
shares NNS
, ,
or CC
about IN
17 CD
% NN
of IN
its PRP$
shares NNS
outstanding JJ
. .

Buying VBG
interest NN
also RB
resurfaced VBD
in IN
the DT
technology NN
sector NN
, ,
including VBG
International NNP
Business NNP
Machines NNPS
, ,
whose WP$
board NN
approved VBD
a DT
$ $
1 CD
billion CD
increase NN
in IN
its PRP$
stock NN
buy-back NN
program NN
. .

IBM NNP
rose VBD
2 CD
3\/8 CD
to TO
104 CD
1\/8 CD
as IN
2.2 CD
million CD
shares NNS
changed VBD
hands NNS
. .

Compaq NNP
Computer NNP
soared VBD
4 CD
5\/8 CD
to TO
111 CD
1\/8 CD
on IN
1.8 CD
million CD
shares NNS
in IN
response NN
to TO
the DT
company NN
's POS
announcement NN
of IN
plans NNS
to TO
introduce VB
several JJ
products NNS
next JJ
month NN
. .

Digital NNP
Equipment NNP
gained VBD
1 CD
3\/8 CD
to TO
89 CD
3\/4 CD
despite IN
reporting VBG
earnings NNS
for IN
the DT
September NNP
quarter NN
that WDT
were VBD
on IN
the DT
low JJ
end NN
of IN
expectations NNS
. .

Among IN
other JJ
technology NN
issues NNS
, ,
Cray NNP
Research NNP
rose VBD
1 CD
5\/8 CD
to TO
37 CD
, ,
Hewlett-Packard NNP
added VBD
1 CD
1\/4 CD
to TO
50 CD
1\/4 CD
, ,
Tandem NNP
Computers NNPS
rallied VBD
1 CD
1\/8 CD
to TO
25 CD
3\/4 CD
, ,
Data NNP
General NNP
rose VBD
3\/4 CD
to TO
14 CD
1\/2 CD
and CC
Motorola NNP
gained VBD
2 CD
3\/8 CD
to TO
59 CD
1\/4 CD
. .

On IN
the DT
other JJ
hand NN
, ,
Symbol NNP
Technologies NNP
dropped VBD
1 CD
1\/4 CD
to TO
18 CD
1\/2 CD
after IN
Shearson NNP
Lehman NNP
Hutton NNP
lowered VBD
its PRP$
short-term JJ
investment NN
rating NN
on IN
the DT
stock NN
and CC
its PRP$
1989 CD
earnings NNS
estimate NN
, ,
and CC
Commodore NNP
International NNP
fell VBD
7\/8 CD
to TO
8 CD
after IN
the DT
company NN
said VBD
it PRP
expects VBZ
to TO
post VB
a DT
loss NN
for IN
the DT
September NNP
quarter NN
. .

Insurance NN
stocks NNS
continued VBD
to TO
climb VB
on IN
expectations NNS
that IN
premium NN
rates NNS
will MD
rise VB
in IN
the DT
aftermath NN
of IN
the DT
earthquake NN
in IN
the DT
San NNP
Francisco NNP
area NN
. .

American NNP
International NNP
Group NNP
climbed VBD
4 CD
to TO
106 CD
5\/8 CD
, ,
General NNP
Re NNP
rose VBD
3 CD
1\/8 CD
to TO
89 CD
5\/8 CD
, ,
Kemper NNP
added VBD
2 CD
1\/2 CD
to TO
48 CD
, ,
AON NNP
went VBD
up IN
1 CD
3\/8 CD
to TO
36 CD
and CC
Chubb NNP
rose VBD
1 CD
1\/4 CD
to TO
82 CD
1\/4 CD
. .

Stocks NNS
of IN
major JJ
toy NN
makers NNS
rallied VBD
in IN
the DT
wake NN
of IN
strong JJ
third-quarter JJ
earnings NNS
reports NNS
. .

Mattel NNP
added VBD
1 CD
1\/4 CD
to TO
19 CD
5\/8 CD
, ,
Tonka NNP
firmed VBD
1 CD
to TO
18 CD
1\/2 CD
and CC
Lewis NNP
Galoob NNP
Toys NNPS
rose VBD
7\/8 CD
to TO
13 CD
5\/8 CD
on IN
the DT
Big NNP
Board NNP
, ,
while IN
Hasbro NNP
gained VBD
1 CD
to TO
21 CD
7\/8 CD
on IN
the DT
American NNP
Stock NNP
Exchange NNP
. .

Capital NNP
Cities-ABC NNP
surged VBD
42 CD
5\/8 CD
to TO
560 CD
. .

Kidder NNP
Peabody NNP
raised VBD
its PRP$
investment NN
rating NN
on IN
the DT
stock NN
and CC
its PRP$
earnings NNS
estimates NNS
for IN
1989 CD
and CC
1990 CD
, ,
based VBN
on IN
optimism NN
that IN
the DT
company NN
's POS
ABC NNP
television NN
network NN
will MD
continue VB
to TO
fare VB
well RB
in IN
the DT
ratings NNS
. .

Dun NNP
& CC
Bradstreet NNP
lost VBD
1 CD
7\/8 CD
to TO
51 CD
7\/8 CD
on IN
1.8 CD
million CD
shares NNS
. .

Merrill NNP
Lynch NNP
lowered VBD
its PRP$
short-term JJ
rating NN
on IN
the DT
stock NN
and CC
its PRP$
estimate NN
of IN
1990 CD
earnings NNS
, ,
citing VBG
a DT
sales NNS
slowdown NN
in IN
the DT
company NN
's POS
credit-rating JJ
business NN
. .

Pinnacle NNP
West NNP
Capital NNP
, ,
which WDT
suspended VBD
its PRP$
common-stock JJ
dividend NN
indefinitely RB
and CC
reported VBD
a DT
91 CD
% NN
decline NN
in IN
third-quarter JJ
earnings NNS
, ,
fell VBD
5\/8 CD
to TO
11 CD
3\/8 CD
. .

The DT
Amex NNP
Market NNP
Value NNP
Index NNP
recorded VBD
its PRP$
sharpest JJS
gain NN
of IN
the DT
year NN
by IN
climbing VBG
4.74 CD
to TO
382.81 CD
. .

Volume NN
totaled VBD
14,580,000 CD
shares NNS
. .

B.A.T NNP
Industries NNPS
, ,
the DT
most RBS
active JJ
Amex NNP
issue NN
, ,
rose VBD
3\/8 CD
to TO
12 CD
3\/8 CD
. .

The DT
company NN
received VBD
shareholder NN
approval NN
for IN
its PRP$
restructuring NN
plan NN
, ,
designed VBN
to TO
fend VB
off IN
a DT
hostile JJ
takeover NN
bid NN
from IN
a DT
group NN
headed VBN
by IN
financier NN
Sir NNP
James NNP
Goldsmith NNP
. .

Chambers NNP
Development NNP
Class NNP
A DT
jumped VBD
3 CD
1\/8 CD
to TO
37 CD
1\/8 CD
and CC
Class NNP
B NNP
rose VBD
2 CD
5\/8 CD
to TO
37 CD
1\/4 CD
. .

The DT
company NN
said VBD
six CD
officers NNS
are VBP
buying VBG
a DT
total NN
of IN
$ $
1.5 CD
million CD
of IN
its PRP$
stock NN
. .

TRC NNP
Cos. NNP
, ,
the DT
target NN
of IN
an DT
investigation NN
by IN
the DT
U.S. NNP
inspector NN
general JJ
, ,
dropped VBD
2 CD
to TO
10 CD
3\/4 CD
. .

The DT
probe NN
involves VBZ
testing NN
procedures NNS
used VBN
on IN
certain JJ
government NN
contracts NNS
by IN
the DT
company NN
's POS
Metatrace NNP
unit NN
. .

Avondale NNP
Industries NNP
Inc. NNP
, ,
New NNP
Orleans NNP
, ,
received VBD
a DT
$ $
23 CD
million CD
contract NN
from IN
the DT
Navy NNP
to TO
enlarge VB
by IN
50 CD
% NN
the DT
capacity NN
of IN
an DT
auxiliary JJ
oiler NN
. .

The DT
award NN
results NNS
from IN
the DT
Navy NNP
's POS
exercising VBG
of IN
an DT
option NN
in IN
an DT
earlier JJR
contract NN
it PRP
awarded VBD
Avondale NNP
. .

Richard NNP
J. NNP
Pinola NNP
was VBD
elected VBN
to TO
the DT
board NN
of IN
this DT
personnel NNS
consulting NN
concern NN
, ,
increasing VBG
its PRP$
size NN
to TO
nine CD
members NNS
. .

Mr. NNP
Pinola NNP
is VBZ
president NN
and CC
chief JJ
operating VBG
officer NN
of IN
Penn NNP
Mutual NNP
Life NNP
Insurance NNP
Co NNP
. .

The DT
Senate NNP
rejected VBD
a DT
constitutional JJ
amendment NN
that IN
President NNP
Bush NNP
sought VBD
to TO
protect VB
the DT
U.S. NNP
flag NN
from IN
desecration NN
. .

The DT
51-48 JJ
roll NN
call NN
fell VBD
well JJ
short NN
of IN
the DT
two-thirds NNS
majority NN
needed VBN
to TO
approve VB
changes NNS
to TO
the DT
Constitution NNP
. .

The DT
vote NN
, ,
in IN
which WDT
11 CD
GOP NNP
lawmakers NNS
voted VBD
against IN
Mr. NNP
Bush NNP
's POS
position NN
, ,
was VBD
a DT
victory NN
for IN
Democratic JJ
leaders NNS
, ,
who WP
opposed VBD
the DT
amendment NN
as IN
an DT
intrusion NN
on IN
the DT
Bill NNP
of IN
Rights NNP
. .
`` ``
We PRP
can MD
support VB
the DT
American JJ
flag NN
without IN
changing VBG
the DT
American NNP
Constitution NNP
, ,
'' ''
said VBD
Senate NNP
Majority NNP
Leader NNP
George NNP
Mitchell NNP
of IN
Maine NNP
. .

In IN
order NN
to TO
defuse VB
pressure NN
for IN
an DT
amendment NN
, ,
Mr. NNP
Mitchell NNP
and CC
House NNP
Speaker NNP
Thomas NNP
Foley NNP
-LRB- (
D. NNP
, ,
Wash NNP
. .
-RRB- )
had VBD
arranged VBN
for IN
lawmakers NNS
to TO
pass VB
a DT
statute NN
barring VBG
flag NN
desecration NN
before IN
voting NN
on IN
the DT
constitutional JJ
change NN
. .

Mr. NNP
Bush NNP
said VBD
he PRP
would MD
allow VB
the DT
bill NN
to TO
become VB
law NN
without IN
his PRP$
signature NN
, ,
because IN
he PRP
said VBD
only RB
a DT
constitutional JJ
amendment NN
can MD
protect VB
the DT
flag NN
adequately RB
. .

In IN
June NNP
, ,
the DT
Supreme NNP
Court NNP
threw VBD
out RP
the IN
conviction NN
of IN
a DT
Texas NNP
man NN
who WP
set VBD
a DT
flag NN
afire RB
during IN
a DT
1984 CD
demonstration NN
, ,
saying VBG
he PRP
was VBD
`` ``
engaging VBG
in IN
political JJ
expression NN
'' ''
that WDT
is VBZ
protected VBN
by IN
the DT
First NNP
Amendment NNP
. .

If IN
you PRP
think VBP
you PRP
have VBP
stress-related JJ
problems NNS
on IN
the DT
job NN
, ,
there EX
's VBZ
good JJ
news NN
and CC
bad JJ
news NN
. .

You PRP
're VBP
probably RB
right NN
, ,
and CC
you PRP
are VBP
n't RB
alone RB
. .

A DT
new JJ
Gallup NNP
Poll NNP
study NN
commissioned VBN
by IN
the DT
New NNP
York NNP
Business NNP
Group NNP
on IN
Health NNP
, ,
found VBD
that IN
a DT
full JJ
25 CD
% NN
of IN
the DT
work NN
force NN
at IN
companies NNS
may MD
suffer VB
from IN
anxiety NN
disorders NNS
or CC
a DT
stress-related JJ
illness NN
, ,
with IN
about IN
13 CD
% NN
suffering VBG
from IN
depression NN
. .

The DT
study NN
surveyed VBD
a DT
national JJ
group NN
of IN
medical JJ
directors NNS
, ,
personnel NNS
managers NNS
and CC
employee NN
assistance NN
program NN
directors NNS
about IN
their PRP$
perceptions NNS
of IN
these DT
problems NNS
in IN
their PRP$
companies NNS
. .

It PRP
is VBZ
one CD
of IN
a DT
series NN
of IN
studies NNS
on IN
health NN
commissioned VBN
by IN
the DT
New NNP
York NNP
Business NNP
Group NNP
, ,
a DT
non-profit JJ
organization NN
with IN
about IN
300 CD
members NNS
. .

The DT
stress NN
study NN
was VBD
undertaken VBN
because IN
problems NNS
related VBN
to TO
stress VB
`` ``
are VBP
much RB
more RBR
prevalent JJ
than IN
they PRP
seem VBP
, ,
'' ''
said VBD
Leon NNP
J. NNP
Warshaw NNP
, ,
executive JJ
director NN
of IN
the DT
business NN
group NN
. .

In IN
presenting VBG
the DT
study NN
late JJ
last JJ
week NN
, ,
Dr. NNP
Warshaw NNP
estimated VBD
the DT
cost NN
of IN
these DT
types NNS
of IN
disorders NNS
to TO
business NN
is VBZ
substantial JJ
. .

Occupational JJ
disability NN
related VBN
to TO
anxiety NN
, ,
depression NN
and CC
stress NN
costs NNS
about RB
$ $
8,000 CD
a DT
case NN
in IN
terms NNS
of IN
worker NN
's POS
compensation NN
. .

In IN
terms NNS
of IN
days NNS
lost VBD
on IN
the DT
job NN
, ,
the DT
study NN
estimated VBN
that IN
each DT
affected VBN
employee NN
loses VBZ
about IN
16 CD
work NN
days NNS
a DT
year NN
because IN
of IN
stress NN
, ,
anxiety NN
or CC
depression NN
. .

He PRP
added VBD
that IN
the DT
cost NN
for IN
stress-related JJ
compensation NN
claims NNS
is VBZ
about IN
twice RB
the DT
average NN
for IN
all DT
injury NN
claims NNS
. .

`` ``
We PRP
hope VBP
to TO
sensitize VB
employers NNS
'' ''
to TO
recognize VB
the DT
problems NNS
so IN
they PRP
can MD
do VB
something NN
about IN
them PRP
, ,
Dr. NNP
Warshaw NNP
said VBD
. .

Early JJ
intervention NN
into IN
these DT
types NNS
of IN
problems NNS
can MD
apparently RB
save VB
businesses NNS
long-term JJ
expense NN
associated VBN
with IN
hospitalization NN
, ,
which WDT
sometimes RB
results VBZ
when WRB
these DT
problems NNS
go VBP
untreated JJ
for IN
too RB
long JJ
. .

Even RB
the DT
courts NNS
are VBP
beginning VBG
to TO
recognize VB
the DT
link NN
between IN
jobs NNS
and CC
stress-related JJ
disorders NNS
in IN
compensation NN
cases NNS
, ,
according VBG
to TO
a DT
survey NN
by IN
the DT
National NNP
Council NNP
on IN
Compensation NNP
Insurance NNP
. .

But CC
although IN
56 CD
% NN
of IN
the DT
respondents NNS
in IN
the DT
study NN
indicated VBD
that IN
mental-health JJ
problems NNS
were VBD
fairly RB
pervasive JJ
in IN
the DT
workplace NN
, ,
there EX
is VBZ
still RB
a DT
social JJ
stigma NN
associated VBN
with IN
people NNS
seeking VBG
help VB
. .

The DT
disorders NNS
, ,
which WDT
20 CD
years NNS
ago RB
struck VBD
middle-age JJ
and CC
older JJR
people NNS
, ,
`` ``
now JJ
strike NN
people NNS
at IN
the DT
height NN
of IN
productivity NN
, ,
'' ''
says VBZ
Robert NNP
M.A. NNP
Hirschfeld NNP
, ,
of IN
the DT
National NNP
Institute NNP
of IN
Mental NNP
Health NNP
, ,
who WP
spoke VBD
at IN
the DT
presentation NN
of IN
the DT
study NN
's POS
findings NNS
. .

The DT
poll NN
showed VBD
that DT
company NN
size NN
had VBD
a DT
bearing NN
on IN
a DT
manager NN
's POS
view NN
of IN
the DT
problem NN
, ,
with IN
65 CD
% NN
of IN
those DT
in NN
companies NNS
of IN
more JJR
than IN
15,000 CD
employees NNS
saying VBG
stress-related JJ
problems NNS
were VBD
`` ``
fairly RB
pervasive JJ
'' ''
and CC
55 NN
% NN
of IN
those DT
in NN
companies NNS
with IN
fewer JJR
than IN
4,000 CD
employees NNS
agreeing VBG
. .

The DT
poll NN
also RB
noted VBD
fear NN
of IN
a DT
takeover NN
as IN
a DT
stress-producing JJ
event NN
in IN
larger JJR
companies NNS
. .

More RBR
than IN
eight CD
in IN
10 CD
respondents NNS
reported VBD
such JJ
a DT
stress-provoking JJ
situation NN
in IN
their PRP$
company NN
. .

Mid-sized JJ
companies NNS
were VBD
most RBS
affected VBN
by IN
talk NN
of IN
layoffs NNS
or CC
plant NN
closings NNS
. .

The DT
study NN
, ,
which WDT
received VBD
funding NN
from IN
Upjohn NNP
Co. NNP
, ,
which WDT
makes VBZ
several JJ
drugs NNS
to TO
treat VB
stress-related JJ
illnesses NNS
, ,
also RB
found VBD
47 CD
% NN
of IN
the DT
managers NNS
said VBD
stress NN
, ,
anxiety NN
and CC
depression NN
contribute VB
to TO
decreased VBD
production NN
. .
Alcohol NN
and CC
substance NN
abuse NN
as IN
a DT
result NN
of IN
stress-related JJ
problems NNS
was VBD
cited VBN
by IN
30 CD
% NN
of IN
those DT
polled VBN
. .

Although IN
Dr. NNP
Warshaw NNP
points NNS
out IN
that IN
stress NN
and CC
anxiety NN
have VBP
their PRP$
positive JJ
uses NNS
, ,
`` ``
stress NN
perceived VBN
to TO
be VB
threatening VBG
implies VBZ
a DT
component NN
of IN
fear NN
and CC
anxiety NN
that WDT
may MD
contribute VB
to TO
burnout NN
. .
'' ''

He PRP
also RB
noted VBD
that IN
various JJ
work NN
environments NNS
, ,
such JJ
as IN
night NN
work NN
, ,
have VBP
their PRP$
own JJ
`` ``
stressors NNS
. .
'' ''

`` ``
We PRP
all DT
like JJ
stress NN
, ,
but CC
there EX
's VBZ
a DT
limit NN
, ,
'' ''
says VBZ
Paul NNP
D'Arcy NNP
, ,
of IN
Rohrer NNP
, ,
Hibler NNP
& CC
Replogle NNP
, ,
a DT
corporate JJ
psychology NN
and CC
management NN
consulting NN
firm NN
. .

The DT
problem NN
, ,
says VBZ
Mr. NNP
D'Arcy NNP
, ,
a DT
psychologist NN
, ,
is VBZ
that IN
`` ``
it PRP
's VBZ
very RB
hard JJ
to TO
get VB
any DT
hard JJ
measures NNS
on IN
how WRB
stress NN
affects VBZ
job NN
performance NN
. .

For IN
Cheap JJ
Air NNP
Fares NNS
, ,
Spend VB
Christmas NNP
Aloft JJ

IT PRP
IS VBZ
N'T NNP
TRUE JJ
that IN
a DT
90-year CD
old JJ
clergyman NN
on IN
a DT
mission NN
of IN
mercy NN
to TO
a DT
disaster NN
area NN
on IN
Christmas NNP
Day NNP
can MD
fly VB
free JJ
. .

But CC
his PRP$
circumstances NNS
are VBP
among IN
the DT
few JJ
that WDT
can MD
qualify VB
for IN
the DT
handful NN
of IN
really RB
cheap JJ
airline NN
tickets NNS
remaining VBG
in IN
America NNP
. .

In IN
recent JJ
years NNS
, ,
carriers NNS
have VBP
become VBN
much RB
more RBR
picky JJ
about IN
who WP
can MD
fly VB
on IN
the DT
cheap NN
. .

But CC
there EX
still RB
are VBP
a DT
few JJ
ways NNS
today NN
's POS
traveler NN
can MD
qualify VB
under IN
the DT
airline NN
's POS
many JJ
restrictions NNS
. .
One CD
of IN
the DT
best JJS
deals NNS
, ,
though RB
, ,
may MD
mean VB
skipping VBG
Christmas NNP
dinner NN
with IN
the DT
relatives NNS
. .

This DT
week NN
, ,
many JJ
carriers NNS
are VBP
announcing VBG
cut-rate JJ
fares NNS
designed VBN
to TO
get VB
people NNS
to TO
fly VB
on IN
some DT
of IN
the DT
most RBS
hallowed JJ
-- :
and CC
slowest JJS
-- :
days NNS
of IN
the DT
year NN
, ,
including VBG
Christmas NNP
. .

In IN
recent JJ
years NNS
, ,
the DT
airlines NNS
had VBD
waited VBN
until IN
the DT
last JJ
moment NN
to TO
court VB
Christmas NNP
season NN
vacationers NNS
with IN
bargain NN
fares NNS
. .

That DT
approach NN
flopped VBD
: :
Last NNP
Christmas NNP
Day NNP
, ,
a DT
USAir NNP
Group NNP
Inc. NNP
DC-9 JJ
jetliner NN
flew VBD
about IN
seven CD
passengers NNS
from IN
Chicago NNP
to TO
Pittsburgh NNP
. .

So RB
this DT
year NN
, ,
the DT
airlines NNS
are VBP
getting VBG
a DT
jump NN
on IN
holiday NN
discounts NNS
. .

They PRP
are VBP
cutting VBG
ticket NN
prices NNS
by IN
as RB
much JJ
as IN
70 CD
% NN
from IN
normal JJ
levels NNS
for IN
travel NN
to TO
most RBS
U.S. NNP
locations NNS
on IN
Dec. NNP
24 CD
, ,
25 CD
, ,
29 CD
, ,
30 CD
and CC
31 CD
, ,
and CC
Jan. NNP
4 CD
, ,
5 NN
and CC
6 CD
. .

The DT
promotions NNS
-- :
dubbed VBN
everything NN
from IN
'T- PRP
is VBZ
the DT
Season NN
to TO
be VB
Jolly JJ
to TO
Kringle NNP
fares NNS
-- :
put VB
round-trip JJ
fares NNS
at IN
$ $
98 CD
, ,
$ $
148 CD
and CC
$ $
198 CD
. .

`` ``
They PRP
're VBP
trying VBG
to TO
keep VB
planes NNS
flying VBG
on IN
days NNS
they PRP
'd MD
normally RB
park VB
them PRP
, ,
'' ''
says VBZ
Roger NNP
Bard NNP
, ,
president NN
of IN
Mr. NNP
Mitchell NNP
Travel NNP
Service NNP
in IN
Burnsville NNP
, ,
N.C NNP
. .

Expect VB
, ,
of IN
course NN
, ,
sky-high JJ
prices NNS
on IN
other JJ
dates NNS
near IN
the DT
holidays NNS
when WRB
the DT
airlines NNS
know VBP
vacationers NNS
are VBP
eager JJ
to TO
travel VB
. .

Consider VB
Adopting VBG
Your PRP$
Spouse NN
's POS
Name NN

IF IN
CONTINENTAL NNP
Airlines NNPS
has VBZ
its PRP$
way NN
, ,
couples NNS
like IN
Marlo NNP
Thomas NNP
and CC
Phil NNP
Donahue NNP
may MD
find VB
it PRP
a DT
hassle NN
to TO
qualify VB
for IN
some DT
new JJ
discounts NNS
. .

Continental NNP
, ,
a DT
Texas NNP
Air NNP
Corp. NNP
unit NN
, ,
recently RB
unveiled VBD
a DT
marketing NN
program NN
offering NN
free JJ
companion NN
tickets NNS
to TO
business-class JJ
and CC
first-class JJ
passengers NNS
on IN
international JJ
flights NNS
. .

The DT
Continental NNP
catch NN
: :
Only RB
immediate JJ
family NN
members NNS
are VBP
allowed VBN
, ,
and CC
they PRP
must MD
have VB
the DT
same JJ
last JJ
name NN
as IN
the DT
buyer NN
of IN
the DT
ticket NN
or CC
legal JJ
proof NN
they PRP
're VBP
related VBN
. .

That DT
irritates VBZ
many JJ
women NNS
who WP
have VBP
n't RB
taken VBN
their PRP$
husbands NNS
' POS
last JJ
name NN
. .

`` ``
What WP
a DT
bunch NN
of IN
nonsense NN
, ,
'' ''
says VBZ
Jessica NNP
Crosby NNP
, ,
president NN
of IN
the DT
New NNP
York NNP
chapter NN
of IN
the DT
National NNP
Association NNP
of IN
Women NNP
Business NNP
Owners NNS
. .

`` ``
This DT
sets NNS
things NNS
way NN
back RB
. .
'' ''

Continental NNP
's POS
logic NN
: :
It PRP
does VBZ
n't RB
want VB
business NN
companions NNS
abusing VBG
the DT
promotion NN
by IN
falsely RB
claiming VBG
to TO
be VB
related VBN
. .

`` ``
We PRP
accommodate VBP
their PRP$
choice NN
of IN
names NNS
by IN
allowing VBG
them PRP
to TO
demonstrate VB
'' ''
family NN
affiliation NN
with IN
legal JJ
documents NNS
, ,
says VBZ
Jim NNP
O'Donnell NNP
, ,
a DT
senior JJ
vice NN
president NN
. .

But CC
gay JJ
rights NNS
advocates NNS
are VBP
angry JJ
, ,
too RB
. .

The DT
Lambda NNP
Legal NNP
Defense NNP
and CC
Education NNP
Fund NNP
of IN
New NNP
York NNP
City NNP
has VBZ
received VBN
complaints NNS
from IN
homosexual JJ
couples NNS
whom WP
the DT
airline NN
does VBZ
n't RB
recognize VB
as IN
family NN
. .

`` ``
It PRP
's VBZ
certainly RB
discrimination NN
, ,
'' ''
says VBZ
attorney NN
Evan NNP
Wolfson NNP
, ,
whose WP$
group NN
forced VBN
Trans NNP
World NNP
Airlines NNPS
this DT
year NN
to TO
change VB
a DT
rule NN
that WDT
allowed VBD
travelers NNS
to TO
transfer VB
frequent JJ
flier NN
awards NNS
only RB
to TO
family NN
members NNS
. .

Take VB
Your PRP$
Vacation NN
In IN
a DT
Hurricane NNP
Area NNP

WHEN WRB
HURRICANE NNP
Hugo NNP
careened VBD
through IN
the DT
Caribbean NNP
and CC
the DT
Atlantic NNP
coast NN
states NNS
, ,
it PRP
downed VBD
electric NN
and CC
telephone NN
lines NNS
, ,
shot NN
coconuts NNS
through IN
cottage NN
rooftops NNS
, ,
shattered VBN
windows NNS
and CC
uprooted VBN
thousands NNS
of IN
lives NNS
. .

It PRP
also RB
lowered VBD
some DT
air NN
fares NNS
. .

Since IN
the DT
hurricane NN
, ,
Midway NNP
Airlines NNP
Inc. NNP
and CC
American NNP
Airlines NNP
, ,
a DT
unit NN
of IN
AMR NNP
Corp. NNP
, ,
trimmed VBD
their PRP$
one-way JJ
fares NNS
to TO
the DT
Virgin NNP
Islands NNPS
to TO
$ $
109 CD
from IN
prices NNS
that WDT
were VBD
at IN
times NNS
double JJ
that IN
before IN
the DT
storm NN
. .

The DT
fares NNS
are VBP
code-named VBN
Hugo NNP
, ,
Compassion NNP
and CC
Virgin NNP
Islands NNP
Aid NNP
. .

-LRB- (
Airlines NNPS
are VBP
n't RB
lowering VBG
fares NNS
to TO
Northern NNP
California NNP
following VBG
this DT
week NN
's POS
earthquake NN
, ,
but CC
reservation NN
agents NNS
can MD
waive VB
advance-purchase JJ
restrictions NNS
on IN
discount NN
fares NNS
for IN
emergency NN
trips NNS
. .
-RRB- )
Some DT
hotels NNS
in IN
the DT
hurricane-stricken JJ
Caribbean NNP
promise NN
money-back JJ
guarantees NNS
. .

In IN
Myrtle NNP
Beach NNP
, ,
S.C. NNP
, ,
the DT
damaged VBN
Yachtsman NNP
Resort NNP
offers VBZ
daily JJ
rates NNS
as RB
low JJ
as IN
$ $
35 CD
, ,
or CC
as RB
much JJ
as IN
22 CD
% NN
below IN
regular JJ
prices NNS
. .

Says VBZ
Michele NNP
Hoffman NNP
, ,
a DT
clerk NN
in IN
the DT
resort NN
's POS
front NN
office NN
: :
`` ``
We PRP
do VBP
n't RB
have VB
the DT
outdoor JJ
pool NN
, ,
the DT
pool NN
table NN
, ,
ping NN
pong NN
table NN
, ,
snack NN
bar NN
or CC
VCR NNP
, ,
but CC
we PRP
still RB
have VBP
the DT
indoor JJ
pool NN
and CC
Jacuzzi NNP
. .
'' ''

Just RB
Wait VB
Until IN
You PRP
're VBP
a DT
Bit NN
Older JJR

SENIOR JJ
CITIZENS NNS
have VBP
long RB
received VBN
cheap JJ
air NN
fares NNS
. .

This DT
year NN
, ,
the DT
older JJR
someone NN
is VBZ
the DT
bigger JJR
the DT
discount NN
. .

A DT
senior JJ
citizen NN
between IN
62 CD
and CC
70 CD
saves VBZ
70 CD
% NN
off IN
regular JJ
coach NN
fare NN
. .

Travelers NNS
up IN
to TO
age NN
99 CD
get VB
a DT
percentage NN
discount NN
matching VBG
their PRP$
age NN
. .

And CC
centenarians NNS
fly VBP
free JJ
in IN
first JJ
class NN
. .

Next JJ
month NN
, ,
Northwest NNP
Airlines NNPS
says VBZ
, ,
a DT
108-year-old NNP
Lansing NNP
, ,
Mich. NNP
, ,
woman NN
is VBZ
taking VBG
it PRP
up IN
on IN
the DT
offer NN
to TO
fly VB
with IN
her PRP$
72-year-old JJ
son NN
to TO
Tampa NNP
, ,
Fla NNP
. .

Last JJ
year NN
when WRB
Northwest NNP
first RB
offered VBN
the DT
promotion NN
, ,
only RB
six CD
centenarians NNS
flew VBD
free JJ
. .

If IN
All DT
Else RB
Fails VBZ
... :
. .

THE DT
NATION'S NN
carriers NNS
also RB
provide VBP
discounts NNS
to TO
Red NNP
Cross NNP
workers NNS
, ,
retired VBN
military JJ
personnel NNS
and CC
medical JJ
students NNS
. .

There EX
's VBZ
even RB
a DT
special JJ
fare NN
for IN
clergy NN
that WDT
does VBZ
n't RB
require VB
the DT
usual JJ
stay NN
over IN
Saturday NNP
night NN
. .

That DT
way NN
, ,
they PRP
can MD
be VB
home NN
in IN
time NN
for IN
work NN
Sunday NNP
. .

The DT
British NNP
Petroleum NNP
Co. NNP
PLC NNP
said VBD
its PRP$
BP NNP
Exploration NNP
unit NN
has VBZ
produced VBN
the DT
first JJ
oil NN
from IN
its PRP$
Don NNP
oilfield NN
in IN
the DT
North NNP
Sea NNP
. .

In IN
an DT
official JJ
release NN
, ,
BP NNP
said VBD
initial JJ
production NN
from IN
the DT
field NN
was VBD
11,000 CD
barrels NNS
a DT
day NN
, ,
and CC
that IN
it PRP
expects VBZ
peak NN
output NN
from IN
the DT
field NN
of IN
15,000 CD
barrels NNS
a DT
day NN
to TO
be VB
reached VBN
in IN
1990 CD
. .

As IN
the DT
sponsor NN
of IN
the DT
`` ``
Older JJR
Americans NNP
Freedom NNP
to TO
Work VB
Act NNP
, ,
'' ''
which WDT
would MD
repeal VB
the DT
Social NNP
Security NNP
earnings NNS
limit NN
for IN
people NNS
aged VBN
65 CD
and CC
older JJR
, ,
I PRP
applaud VBP
your PRP$
strong JJ
endorsement NN
to TO
repeal VB
this DT
Depression-era JJ
fossil NN
. .

For IN
every DT
dollar NN
earned VBD
over IN
$ $
8,880 CD
, ,
Social NNP
Security NNP
recipients NNS
lose VBP
50 CD
cents NNS
of IN
their PRP$
Social NNP
Security NNP
benefits NNS
; :
it PRP
's VBZ
like IN
a DT
50 CD
% NN
marginal JJ
tax NN
. .

But CC
the DT
compounded VBN
effects NNS
of IN
`` ``
seniors NNS
only RB
'' ''
taxes NNS
result VBP
in IN
truly RB
catastrophic JJ
marginal JJ
tax NN
rates NNS
. .

Imagine VB
a DT
widow NN
who WP
wants VBZ
to TO
maintain VB
her PRP$
standard NN
of IN
living VBG
at IN
the DT
same JJ
level NN
she PRP
had VBD
before IN
she PRP
had VBD
to TO
pay VB
the DT
catastrophic JJ
surtax NN
. .

Although IN
this DT
widow NN
earns VBZ
only RB
twice RB
the DT
minimum JJ
wage NN
, ,
largely RB
due JJ
to TO
the DT
earnings NNS
limit NN
, ,
she PRP
would MD
have VB
to TO
earn VB
an DT
additional JJ
$ $
4,930 CD
to TO
offset VB
her PRP$
catastrophic JJ
surtax NN
of IN
$ $
496 CD
. .

Eliminating VBG
the DT
earnings NNS
limit NN
would MD
greatly RB
help VB
seniors NNS
and CC
reduce VB
the DT
deficit NN
. .

Repeal NN
would MD
generate VB
more JJR
in IN
new JJ
taxes NNS
than IN
the DT
government NN
would MD
lose VB
in IN
increased VBN
Social NNP
Security NNP
benefit NN
payments NNS
. .

We PRP
now JJ
need NN
support NN
from IN
the DT
Democrats NNPS
on IN
the DT
Rules NNP
Committee NNP
in IN
order NN
to TO
include VB
earnings-limit JJ
reform NN
in IN
the DT
Reconciliation NNP
Bill NNP
. .

Since IN
all DT
four CD
Republicans NNPS
on IN
the DT
committee NN
are VBP
co-sponsors NNS
of IN
my PRP$
bill NN
, ,
it PRP
is VBZ
the DT
Democrats NNPS
who WP
will MD
be VB
held VBN
fully RB
accountable JJ
if IN
an DT
earnings NNS
test NN
amendment NN
is VBZ
not RB
allowed VBN
from IN
the DT
floor NN
. .

The DT
time NN
is VBZ
now RB
to TO
lift VB
the DT
burdensome JJ
Social NNP
Security NNP
earnings NNS
limit NN
from IN
the DT
backs NNS
of IN
our PRP$
nation NN
's POS
seniors NNS
. .

Rep. NNP
J. NNP
Dennis NNP
Hastert NNP
-LRB- (
R. NNP
, ,
Ill NNP
. .
-RRB- )

When WRB
his PRP$
Seventh NNP
Avenue NNP
fur NN
business NN
here RB
was VBD
flying VBG
high JJ
20 CD
years NNS
ago RB
, ,
Jack NNP
Purnick NNP
had VBD
25 CD
workers NNS
and CC
a DT
large JJ
factory NN
. .

Now RB
his PRP$
half-dozen NN
employees NNS
work VBP
in IN
an DT
eighth-floor JJ
shop NN
that IN
he PRP
says VBZ
is VBZ
smaller JJR
than IN
his PRP$
old JJ
storage NN
room NN
. .

He PRP
also RB
says VBZ
he PRP
is VBZ
losing VBG
money NN
now RB
. .

He PRP
blames VBZ
imports NNS
. .

But CC
just RB
down RB
Seventh NNP
Avenue NNP
, ,
where WRB
about IN
75 CD
% NN
of IN
U.S. NNP
fur NN
garments NNS
are VBP
made VBN
, ,
Larry NNP
Rosen NNP
has VBZ
acquired VBN
two CD
retail JJ
outlets NNS
, ,
broadened VBD
his PRP$
fur-making JJ
line NN
and CC
expanded VBN
into IN
leather NN
. .

He PRP
credits VBZ
imports NNS
. .

The DT
difference NN
lies VBZ
in IN
how WRB
the DT
two CD
entrepreneurial JJ
furriers NNS
reacted VBD
to TO
the DT
foreign JJ
competition NN
and CC
transformation NN
of IN
their PRP$
industry NN
over IN
the DT
past JJ
10 CD
years NNS
. .

One CD
stuck VBN
to TO
old-line JJ
business NN
traditions NNS
, ,
while IN
the DT
other JJ
embraced VBN
the DT
change NN
. .

`` ``
The DT
small JJ
, ,
good JJ
fur NN
salon NN
is VBZ
not RB
what WP
it PRP
used VBD
to TO
be VB
, ,
'' ''
says VBZ
Mr. NNP
Purnick NNP
, ,
75 CD
years NNS
old JJ
. .

`` ``
We PRP
make VBP
the DT
finest JJS
product NN
in IN
the DT
world NN
, ,
and CC
the DT
Americans NNPS
are VBP
being VBG
kicked VBN
around IN
. .
'' ''

Mr. NNP
Rosen NNP
, ,
though RB
, ,
believes VBZ
imports NNS
have VBP
reinvigorated VBN
the DT
industry NN
in IN
which WDT
he PRP
has VBZ
worked VBN
for IN
most RBS
of IN
his PRP$
57 CD
years NNS
. .

`` ``
You PRP
've VBP
got VBD
some DT
minds NNS
here RB
that WDT
wo MD
n't RB
think VB
progressively RB
, ,
'' ''
he PRP
says VBZ
. .

Import NN
competition NN
for IN
U.S. NNP
furs NNS
has VBZ
risen VBN
sharply RB
since IN
furriers NNS
started VBD
aggressively RB
marketing VBG
`` ``
working-girl NN
mink NN
'' ''
and CC
similar JJ
lower-priced JJ
imported VBN
furs NNS
in IN
recent JJ
years NNS
. .

Merchants NNP
discovered VBD
a DT
consumer NN
largely RB
ignored VBD
by IN
higher-priced JJ
furriers NNS
: :
the DT
younger JJR
woman NN
-- :
even RB
in IN
her PRP$
late JJ
20s CD
-- :
who WP
never RB
thought VBD
she PRP
could MD
buy VB
a DT
mink NN
. .

The DT
new JJ
market NN
helped VBD
boost VB
U.S. NNP
fur NN
sales NNS
to TO
about RB
$ $
1.8 CD
billion CD
a DT
year NN
now RB
, ,
triple VB
the DT
level NN
in IN
the DT
late JJ
1970s NNS
. .

It PRP
also RB
opened VBD
the DT
door NN
to TO
furs NNS
made VBN
in IN
South NNP
Korea NNP
, ,
China NNP
, ,
Hong NNP
Kong NNP
and CC
other JJ
countries NNS
. .
Jindo NNP
Furs NNP
, ,
a DT
large JJ
South JJ
Korean JJ
maker NN
, ,
says VBZ
it PRP
operates VBZ
35 CD
retail JJ
outlets NNS
in IN
the DT
U.S. NNP
and CC
plans NNS
to TO
open VB
15 CD
more JJR
by IN
the DT
end NN
of IN
next JJ
year NN
. .

Mr. NNP
Purnick NNP
and CC
other JJ
old-line JJ
furriers NNS
call VBP
many NN
of IN
the DT
the DT
imports NNS
unstylish JJ
and CC
poorly RB
made VBN
. .

High-end JJ
U.S. NNP
furriers NNS
say VBP
these DT
imports NNS
have VBP
n't RB
squeezed VBN
them PRP
. .

But CC
low-priced JJ
and CC
middle-priced JJ
furriers NNS
like IN
Mr. NNP
Purnick NNP
, ,
who WP
once RB
saturated VBN
the DT
five-block JJ
Seventh NNP
Avenue NNP
fur NN
district NN
, ,
say VBP
imports NNS
have VBP
cut VBN
their PRP$
sales NNS
. .

A DT
woman NN
who WP
once RB
would MD
have VB
saved VBN
for IN
two CD
or CC
three CD
seasons NNS
to TO
buy VB
a DT
U.S.-made JJ
mink NN
can MD
now RB
get VB
an DT
imported VBN
mink NN
right RB
away RB
for IN
less JJR
than IN
$ $
2,000 CD
. .

Yet RB
Mr. NNP
Rosen NNP
has VBZ
turned VBN
the DT
import NN
phenomenon NN
to TO
his PRP$
advantage NN
. .

Early RB
in IN
the DT
decade NN
he PRP
saw VBD
that IN
fur NN
workers NNS
in IN
many JJ
foreign JJ
countries NNS
were VBD
willing JJ
to TO
work VB
longer RB
hours VBZ
at IN
lower JJR
wages NNS
than IN
their PRP$
American JJ
counterparts NNS
and CC
were VBD
more RBR
open JJ
to TO
innovation NN
. .

In IN
1982 CD
, ,
he PRP
started VBD
a DT
factory NN
in IN
Greece NNP
. .

Two CD
years NNS
later RB
, ,
he PRP
opened VBD
one CD
in IN
West NNP
Germany NNP
. .

He PRP
also RB
noticed VBD
that IN
foreign JJ
makers NNS
were VBD
introducing VBG
many JJ
variations NNS
on IN
the DT
traditional JJ
fur NN
, ,
and CC
he PRP
decided VBD
to TO
follow VB
suit NN
. .

By IN
combining VBG
his PRP$
strengths NNS
in IN
innovation NN
and CC
quality NN
control NN
with IN
the DT
lower JJR
costs NNS
of IN
production NN
abroad RB
, ,
he PRP
says VBZ
he PRP
has VBZ
been VBN
able JJ
to TO
produce VB
high-quality JJ
goods NNS
at IN
low JJ
cost NN
. .

To TO
maintain VB
control NN
over IN
production NN
and CC
avoid VB
overdependence NN
on IN
foreign JJ
sources NNS
, ,
he PRP
says VBZ
he PRP
still RB
makes VBZ
most RBS
of IN
his PRP$
furs NNS
in IN
the DT
U.S. NNP
. .

But CC
six CD
years NNS
ago RB
he PRP
also RB
began VBD
importing VBG
from IN
the DT
Far NNP
East NNP
. .

Inspired VBN
by IN
imports NNS
, ,
Mr. NNP
Rosen NNP
now RB
makes VBZ
fur NN
muffs NNS
, ,
hats NNS
and CC
flings NNS
. .

This DT
year NN
he PRP
produced VBD
a DT
men NNS
's POS
line NN
and CC
offers VBZ
dyed VBN
furs NNS
in IN
red JJ
, ,
cherry JJ
red NN
, ,
violet NN
, ,
royal JJ
blue NN
and CC
forest NN
green JJ
. .

He PRP
has VBZ
leather NN
jackets NNS
from IN
Turkey NNP
that WDT
are VBP
lined VBN
with IN
eel NN
skin NN
and CC
topped VBD
off IN
with IN
raccoon-skin JJ
collars NNS
. .

From IN
Asia NNP
, ,
he PRP
has VBZ
mink NN
jackets NNS
with IN
floral JJ
patterns NNS
made VBN
by IN
using VBG
different JJ
colored JJ
furs NNS
. .

Next JJ
he PRP
will MD
be VB
testing NN
pictured VBD
embroidery NN
-LRB- (
called VBN
kalega NN
-RRB- )
made VBN
in IN
the DT
Far NNP
East NNP
. .

He PRP
plans VBZ
to TO
attach VB
the DT
embroidery NN
to TO
the DT
backs NNS
of IN
mink NN
coats NNS
and CC
jackets NNS
. .

Besides IN
adding VBG
to TO
sales NNS
, ,
leathers NNS
also RB
attract VBP
retailers NNS
who WP
may MD
buy VB
furs NNS
later RB
, ,
he PRP
adds VBZ
. .

Other JJ
furriers NNS
have VBP
also RB
benefited VBN
from IN
leathers NNS
. .

Seymour NNP
Schreibman NNP
, ,
the DT
65-year-old JJ
owner NN
of IN
Schreibman NNP
Raphael NNP
Furs NNP
Inc. NNP
, ,
treats VBZ
the DT
reverse NN
side NN
of IN
a DT
Persian NNP
lambskin NN
to TO
produce VB
a DT
reversible JJ
fur-and-leather JJ
garment NN
. .

He PRP
says VBZ
it PRP
accounts VBZ
for IN
25 CD
% NN
of IN
total JJ
sales NNS
. .

Mr. NNP
Rosen NNP
is VBZ
also RB
pushing VBG
retail JJ
sales NNS
. .

This DT
year NN
he PRP
bought VBD
two CD
stores NNS
, ,
one CD
in IN
Brooklyn NNP
and CC
one CD
in IN
Queens NNP
. .

Other JJ
furriers NNS
have VBP
also RB
placed VBN
more JJR
weight NN
on IN
retailing NN
. .

Golden NNP
Feldman NNP
Furs NNP
Inc. NNP
began VBD
retailing NN
aggressively RB
eight CD
years NNS
ago RB
, ,
and CC
now RB
retail JJ
sales NNS
account NN
for IN
about IN
20 CD
% NN
of IN
gross JJ
income NN
. .

In IN
other JJ
moves NNS
, ,
Mr. NNP
Rosen NNP
says VBZ
he PRP
bought VBD
a DT
truck NN
three CD
years NNS
ago RB
to TO
reach VB
more JJR
retailers NNS
. .

Since IN
then RB
he PRP
has VBZ
expanded VBN
his PRP$
fleet NN
and CC
can MD
now RB
bring VB
his PRP$
furs NNS
to TO
the DT
front NN
door NN
of IN
retailers NNS
as IN
far RB
away RB
as IN
the DT
Midwest NNP
. .

Small JJ
retailers NNS
who WP
ca MD
n't RB
afford VB
to TO
travel VB
to TO
his PRP$
New NNP
York NNP
showroom NN
have VBP
become VBN
fair JJ
game NN
. .

Such JJ
moves NNS
have VBP
helped VBN
Mr. NNP
Rosen NNP
weather NN
the DT
industry NN
slump NN
of IN
recent JJ
years NNS
. .

The DT
industry NN
enjoyed VBD
six CD
prosperous JJ
years NNS
beginning VBG
in IN
1980 CD
, ,
but CC
since IN
1986 CD
sales NNS
have NN
languished VBN
at IN
their PRP$
$ $
1.8 CD
billion CD
peak NN
. .

Large JJ
furriers NNS
such JJ
as IN
Antonovich NNP
Inc. NNP
, ,
Fur NNP
Vault NNP
Inc. NNP
and CC
Evans NNP
Inc. NNP
all DT
reported VBD
losses NNS
in IN
their PRP$
latest JJS
fiscal JJ
years NNS
. .

Aftereffects NNS
of IN
the DT
1987 CD
stock NN
market NN
crash NN
head NN
the DT
list NN
of IN
reasons NNS
. .

In IN
addition NN
, ,
competition NN
has VBZ
glutted VBN
the DT
market NN
with IN
both DT
skins NNS
and CC
coats NNS
, ,
driving VBG
prices NNS
down RB
. .

The DT
animal-rights NNS
movement NN
has VBZ
n't RB
helped VBN
sales NNS
. .

Warm JJ
winters NNS
over IN
the DT
past JJ
two CD
years NNS
have VBP
trimmed VBN
demand NN
, ,
too RB
, ,
furriers NNS
complain VBP
. .

And CC
those DT
who WP
did VBD
n't RB
move VB
some DT
production NN
overseas JJ
suffer VB
labor NN
shortages NNS
. .

`` ``
The DT
intensive JJ
labor NN
needed VBN
to TO
manufacture VB
furs NNS
-LCB- (
in IN
the DT
U.S. NNP
. .
-RCB- )
is VBZ
not RB
as RB
available JJ
as IN
it PRP
was VBD
, ,
'' ''
says VBZ
Mr. NNP
Schreibman NNP
, ,
who WP
is VBZ
starting VBG
overseas JJ
production NN
. .

But CC
even RB
those DT
who WP
have VBP
found VBN
a DT
way NN
to TO
cope VB
with IN
the DT
imports NNS
and CC
the DT
slump NN
, ,
fear NN
that IN
furs NNS
are VBP
losing VBG
part NN
of IN
their PRP$
allure NN
. .

`` ``
People NNS
are VBP
promoting VBG
furs NNS
in IN
various JJ
ways NNS
and CC
taking VBG
the DT
glamour NN
out IN
of IN
the DT
fur NN
business NN
, ,
'' ''
says VBZ
Stephen NNP
Sanders NNP
, ,
divisional JJ
merchandise NN
manager NN
for IN
Marshall NNP
Field NNP
's POS
department NN
store NN
in IN
Chicago NNP
. .

`` ``
You PRP
ca MD
n't RB
make VB
a DT
commodity NN
out IN
of IN
a DT
luxury NN
, ,
'' ''
insists VBZ
Mr. NNP
Purnick NNP
, ,
the DT
New NNP
York NNP
furrier NN
. .

He PRP
contends VBZ
that IN
chasing VBG
consumers NNS
with IN
low-priced JJ
imports NNS
will MD
harm VB
the DT
industry NN
in IN
the DT
long JJ
run NN
by IN
reducing VBG
the DT
prestige NN
of IN
furs NNS
. .

But CC
Mr. NNP
Rosen NNP
responds VBZ
: :
`` ``
Whatever WDT
people NNS
want VBP
to TO
buy VB
, ,
I PRP
'll MD
sell VB
. .

The DT
name NN
of IN
the DT
game NN
is VBZ
to TO
move VB
goods NNS
. .

Four CD
workers NNS
at IN
GTE NNP
Corp. NNP
's POS
headquarters NN
have VBP
been VBN
diagnosed VBN
as IN
having VBG
hepatitis NN
, ,
and CC
city NN
health NN
officials NNS
are VBP
investigating VBG
whether IN
a DT
cafeteria NN
worker NN
may MD
have VB
exposed VBN
hundreds NNS
of IN
other JJ
GTE NNP
employees NNS
to TO
the DT
viral JJ
infection NN
, ,
company NN
and CC
city NN
officials NNS
said VBD
. .

The DT
four CD
cases NNS
were VBD
all DT
reported VBD
to TO
GTE NNP
's POS
medical JJ
director NN
and CC
state NN
and CC
local JJ
health NN
authorities NNS
. .

GTE NNP
shut VBD
down RB
its PRP$
cafeteria NN
Tuesday NNP
afternoon NN
after IN
testing NN
determined VBN
that IN
at IN
least JJS
one CD
cafeteria NN
worker NN
employed VBN
by IN
GTE NNP
's POS
private JJ
food NN
vending NN
contractor NN
, ,
ARA NNP
Services NNP
Inc. NNP
, ,
was VBD
suffering VBG
from IN
a DT
strain NN
of IN
the DT
virus NN
, ,
officials NNS
said VBD
. .

More RBR
than IN
700 CD
people NNS
work VBP
in IN
the DT
GTE NNP
building NN
. .

The DT
cafeteria NN
remains VBZ
closed VBN
. .

Dr. NNP
Andrew NNP
McBride NNP
, ,
city NN
health NN
director NN
, ,
said VBD
his PRP$
staff NN
suspects VBZ
the DT
hepatitis NN
, ,
which WDT
can MD
be VB
highly RB
contagious JJ
, ,
was VBD
spread NN
by IN
the DT
cafeteria NN
worker NN
with IN
the DT
virus NN
. .

The DT
exact JJ
strain NN
of IN
hepatitis NN
that IN
the DT
cafeteria NN
worker NN
contracted VBD
has VBZ
n't RB
been VBN
determined VBN
but CC
should MD
be VB
known VBN
by IN
the DT
end NN
of IN
the DT
week NN
, ,
Dr. NNP
McBride NNP
said VBD
. .

Hepatitis NNP
A DT
, ,
considered VBD
the DT
least JJS
dangerous JJ
strain NN
of IN
the DT
virus NN
, ,
has VBZ
been VBN
confirmed VBN
in IN
at IN
least JJS
one CD
GTE NNP
employee NN
, ,
company NN
and CC
city NN
officials NNS
said VBD
. .

`` ``
From IN
a DT
public JJ
health NN
point NN
of IN
view NN
we PRP
're VBP
relieved VBN
because IN
hepatitis NN
A NNP
is VBZ
rarely RB
life-threatening JJ
, ,
'' ''
said VBD
Dr. NNP
Frank NNP
Provato NNP
, ,
GTE NNP
's POS
medical JJ
director NN
. .

`` ``
It PRP
's VBZ
a DT
double-edged JJ
sword NN
though RB
, ,
because IN
it PRP
is VBZ
also RB
the DT
most RBS
contagious JJ
kind NN
of IN
hepatitis NN
. .
'' ''

GTE NNP
officials NNS
began VBD
posting VBG
warning NN
notices NNS
about IN
the DT
potential JJ
threat NN
to TO
exposure NN
Wednesday NNP
morning NN
at IN
various JJ
places NNS
at IN
the DT
company NN
, ,
said VBD
GTE NNP
spokesman NN
Thomas NNP
Mattausch NNP
. .

The DT
company NN
has VBZ
begun VBN
offering NN
shots NNS
of IN
gamma NN
globulin NN
, ,
which WDT
will MD
diminish VB
the DT
flu-like JJ
symptoms NNS
of IN
hepatitis NN
A DT
, ,
in IN
anyone NN
who WP
has VBZ
contracted VBN
the DT
disease NN
, ,
Mr. NNP
Mattausch NNP
said VBD
. .

`` ``
We PRP
're VBP
strongly RB
recommending VBG
that DT
anyone NN
who WP
has VBZ
eaten VBN
in IN
the DT
cafeteria NN
this DT
month NN
have VBP
the DT
shot NN
, ,
'' ''
Mr. NNP
Mattausch NNP
added VBD
, ,
`` ``
and CC
that DT
means VBZ
virtually JJ
everyone NN
who WP
works VBZ
here RB
. .

I PRP
was VBD
appalled VBN
to TO
read VB
the DT
misstatements NNS
of IN
facts NNS
in IN
your PRP$
Oct. NNP
13 CD
editorial NN
`` ``
Colombia NNP
's POS
Brave NNP
Publisher NNP
. .
'' ''

It PRP
is VBZ
the DT
right-wing JJ
guerrillas NNS
who WP
are VBP
aligned VBN
with IN
the DT
drug NN
traffickers NNS
, ,
not RB
the DT
left VBN
wing NN
. .

This DT
information NN
was VBD
gleaned VBN
from IN
your PRP$
own JJ
news NN
stories NNS
on IN
the DT
region NN
. .

Past JJ
Colombian JJ
government NN
tolerance NN
of IN
the DT
`` ``
narcotraficantes FW
'' ''
was VBD
due JJ
to TO
the DT
drug NN
lords NNS
' POS
history NN
of IN
wiping VBG
out RP
leftists NNS
in IN
the DT
hinterlands NNS
. .

Mary NNP
Poulin NNP
Palo NNP
Alto NNP
, ,
Calif. NNP

I PRP
suggest VBP
that IN
The DT
Wall NNP
Street NNP
Journal NNP
-LRB- (
as RB
well RB
as IN
other JJ
U.S. NNP
news NN
publications NNS
of IN
like IN
mind NN
-RRB- )
should MD
put VB
its PRP$
money NN
where WRB
its PRP$
mouth NN
is VBZ
: :
Lend VB
computer NN
equipment NN
to TO
replace VB
that WDT
damaged VBD
at IN
El NNP
Espectador NNP
, ,
buy VB
ad NN
space NN
, ,
publish VB
stories NNS
under IN
the DT
bylines NNS
of IN
El NNP
Espectador NNP
journalists NNS
. .

Perhaps RB
an DT
arrangement NN
could MD
be VB
worked VBN
out IN
to TO
`` ``
sponsor NN
'' ''
El NNP
Espectador NNP
journalists NNS
and CC
staff NN
by IN
paying VBG
for IN
added VBN
security NN
in IN
exchange NN
for IN
exclusive JJ
stories NNS
. .

Reward VB
El NNP
Espectador NNP
's POS
courage NN
with IN
real JJ
support NN
. .

Douglas NNP
B. NNP
Evans NNP

COCA-COLA NNP
Co NNP
. .
-LRB- (
Atlanta NNP
-RRB- )
-- :

Anton NNP
Amon NNP
and CC
George NNP
Gourlay NNP
were VBD
elected VBN
vice NN
presidents NNS
of IN
this DT
soft-drink NN
company NN
. .

Mr. NNP
Amon NNP
, ,
46 CD
years NNS
old JJ
, ,
is VBZ
the DT
company NN
's POS
director NN
of IN
quality NN
assurance NN
; :
most RBS
recently RB
, ,
he PRP
served VBD
as IN
vice NN
president NN
, ,
operations NNS
, ,
for IN
Coca-Cola NNP
Enterprises NNPS
. .

Mr. NNP
Gourlay NNP
, ,
48 CD
, ,
is VBZ
manager NN
for IN
corporate JJ
manufacturing NN
operations NNS
; :
he PRP
was VBD
assistant NN
vice NN
president NN
at IN
the DT
company NN
. .

In IN
the DT
wake NN
of IN
a DT
slide NN
in IN
sterling NN
, ,
a DT
tailspin NN
in IN
the DT
stock NN
market NN
, ,
and CC
a DT
string NN
of IN
problematic JJ
economic JJ
indicators NNS
, ,
British NNP
Chancellor NNP
of IN
the DT
Exchequer NNP
Nigel NNP
Lawson NNP
promised VBD
gradual JJ
improvement NN
in IN
the DT
U.K. NNP
economy NN
. .

In IN
a DT
speech NN
prepared VBN
for IN
delivery NN
to TO
London NNP
's POS
financial JJ
community NN
, ,
Mr. NNP
Lawson NNP
summed VBD
up IN
current JJ
economic JJ
policy NN
as IN
a DT
battle NN
to TO
wring VB
inflation NN
out IN
of IN
the DT
British JJ
economy NN
, ,
using VBG
high JJ
interest NN
rates NNS
as IN
`` ``
the DT
essential JJ
instrument NN
'' ''
to TO
carry VB
out RP
the DT
campaign NN
. .

Two CD
weeks NNS
after IN
boosting VBG
base NN
rates NNS
to TO
15 CD
% NN
, ,
he PRP
pledged VBD
that IN
`` ``
rates NNS
will MD
have VB
to TO
remain VB
high JJ
for IN
some DT
time NN
to TO
come VB
. .
'' ''

Mr. NNP
Lawson NNP
also RB
made VBD
it PRP
clear JJ
that IN
he PRP
would MD
be VB
watching VBG
exchange NN
rates NNS
carefully RB
. .

A DT
sinking VBG
pound NN
makes VBZ
imports NNS
more RBR
expensive JJ
and CC
increases NNS
businesses NNS
' POS
expectations NNS
of IN
future NN
inflation NN
, ,
he PRP
argued VBD
. .

In IN
an DT
apparent JJ
warning NN
to TO
currency NN
traders NNS
who WP
have VBP
lately RB
been VBN
selling VBG
the DT
British JJ
currency NN
, ,
he PRP
stated VBD
that IN
the DT
exchange NN
rates NNS
will MD
have VB
a DT
`` ``
major JJ
role NN
in IN
the DT
assessment NN
of IN
monetary JJ
conditions NNS
. .
'' ''

In IN
reaffirming VBG
the DT
current JJ
monetary JJ
policy NN
of IN
using VBG
high JJ
interest NN
rates NNS
to TO
fight VB
inflation NN
and CC
shore NN
up IN
the DT
pound NN
, ,
Mr. NNP
Lawson NNP
dismissed VBD
other JJ
approaches NNS
to TO
managing VBG
the DT
economy NN
. .

He PRP
said VBD
he PRP
monitors VBZ
the DT
money-supply JJ
figures NNS
, ,
but CC
does VBZ
n't RB
give VB
them PRP
paramount JJ
importance NN
, ,
as IN
some DT
private NN
and CC
government NN
economists NNS
have VBP
suggested VBN
. .
Mr. NNP
Lawson NNP
also RB
dismissed VBD
the DT
possibility NN
of IN
imposing VBG
direct JJ
credit NN
controls NNS
on IN
Britain NNP
's POS
financial JJ
system NN
. .

Mr. NNP
Lawson NNP
's POS
speech NN
, ,
delivered VBN
at IN
the DT
Lord NNP
Mayor NNP
of IN
London NNP
's POS
annual JJ
dinner NN
at IN
Mansion NNP
House NNP
, ,
came VBD
on IN
the DT
heels NNS
of IN
a DT
grueling JJ
period NN
for IN
the DT
U.K. NNP
economy NN
. .

Two CD
weeks NNS
ago RB
, ,
in IN
a DT
campaign NN
to TO
blunt VB
inflation NN
at IN
home NN
and CC
arrest VB
a DT
world-wide JJ
plunge NN
in IN
the DT
pound NN
, ,
he PRP
raised VBD
base NN
rates VBZ
a DT
full JJ
percentage NN
point NN
to TO
15 CD
% NN
. .

Despite IN
the DT
increase NN
, ,
the DT
British JJ
currency NN
slid VBD
below IN
a DT
perceived VBN
threshold NN
of IN
three CD
marks NNS
early JJ
last JJ
week NN
. .

It PRP
was VBD
quoted VBN
at IN
2.9428 CD
marks NNS
in IN
late JJ
New NNP
York NNP
trading NN
Wednesday NNP
. .

Leading VBG
up IN
to TO
the DT
speech NN
was VBD
a DT
drumroll NN
of IN
economic JJ
statistics NNS
suggesting VBG
that IN
the DT
British JJ
war NN
on IN
inflation NN
will MD
be VB
more RBR
bruising JJ
than IN
previously RB
assumed VBN
. .

Unemployment NN
in IN
September NNP
dropped VBD
to TO
1,695,000 CD
, ,
the DT
lowest JJS
level NN
since IN
1980 CD
. .

While IN
lower JJR
joblessness NN
is VBZ
generally RB
good JJ
news NN
, ,
the DT
hefty JJ
drop NN
last JJ
month NN
indicates VBZ
that IN
the DT
economy NN
is VBZ
n't RB
slowing VBG
down RB
as RB
much JJ
as IN
hoped VBN
-- :
despite IN
a DT
doubling NN
of IN
interest NN
rates NNS
over IN
the DT
last JJ
16 CD
months NNS
. .

Meanwhile RB
, ,
average JJ
earnings NNS
in IN
Britain NNP
were VBD
up IN
8.75 CD
% NN
in IN
August NNP
over IN
the DT
previous JJ
year NN
. .

Another DT
inflationary JJ
sign NN
came VBD
in IN
a DT
surge NN
in IN
building-society JJ
lending NN
to TO
a DT
record NN
# #
10.2 CD
billion CD
-LRB- (
$ $
16.22 CD
billion CD
-RRB- )
last JJ
month NN
, ,
a DT
much RB
higher JJR
level NN
than IN
economists NNS
had VBD
predicted VBN
. .

In IN
a DT
separate JJ
speech NN
prepared VBN
for IN
delivery NN
at IN
the DT
dinner NN
, ,
Robin NNP
Leigh-Pemberton NNP
, ,
Bank NNP
of IN
England NNP
governor NN
, ,
conceded VBD
that IN
`` ``
demand NN
pressures NNS
were VBD
even RB
more RBR
buoyant JJ
than IN
had VBN
been VBN
appreciated VBN
'' ''
when WRB
the DT
British JJ
economy NN
was VBD
heating VBG
up IN
last JJ
year NN
. .
He PRP
added VBD
that IN
`` ``
there EX
's VBZ
no DT
quick-fix JJ
solution NN
'' ''
to TO
the DT
economic JJ
woes NNS
, ,
and CC
said VBD
`` ``
tight JJ
monetary JJ
policy NN
is VBZ
the DT
right JJ
approach NN
. .
'' ''

Discussing VBG
the DT
recent JJ
slide NN
in IN
stock NN
prices NNS
, ,
the DT
central JJ
bank NN
governor NN
stated VBN
that IN
`` ``
the DT
markets NNS
now RB
appear VBP
to TO
have VB
steadied VBN
'' ''
after IN
the DT
`` ``
nasty JJ
jolt NN
'' ''
of IN
the DT
190.58-point JJ
plunge NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
a DT
week NN
ago RB
. .

Although IN
the DT
New NNP
York NNP
market NN
plunge NN
prompted VBD
a DT
70.5-point JJ
drop NN
in IN
the DT
London NNP
Financial NNP
Times-Stock NNP
Exchange NNP
100 CD
Share NNP
Index NNP
, ,
Mr. NNP
Leigh-Pemberton NNP
declared VBD
`` ``
that IN
the DT
experience NN
owed VBD
nothing NN
to TO
the DT
particular JJ
problems NNS
of IN
the DT
British JJ
economy NN
. .
'' ''

Specifically RB
, ,
he PRP
pointed VBD
out IN
that DT
compared VBD
with IN
the DT
U.S. NNP
market NN
, ,
the DT
U.K. NNP
has VBZ
far RB
fewer RBR
highly RB
leveraged JJ
junk-bond NN
financings NNS
. .

Discussing VBG
future NN
monetary JJ
arrangements NNS
, ,
Mr. NNP
Lawson NNP
repeated VBD
the DT
Thatcher NNP
government NN
's POS
commitment NN
to TO
join VB
the DT
exchange NN
rate NN
mechanism NN
of IN
the DT
European NNP
Monetary NNP
System NNP
, ,
but CC
he PRP
did VBD
n't RB
indicate VB
when WRB
. .

Ing NNP
. .

C. NNP
Olivetti NNP
& CC
Co. NNP
, ,
claiming VBG
it PRP
has VBZ
won VBN
the DT
race NN
in IN
Europe NNP
to TO
introduce VB
computers NNS
based VBN
on IN
a DT
powerful JJ
new JJ
microprocessor NN
chip NN
, ,
unveiled VBD
its PRP$
CP486 NNP
computer NN
yesterday NN
. .

The DT
product NN
is VBZ
the DT
first JJ
from IN
a DT
European JJ
company NN
based VBN
on IN
Intel NNP
Corp. NNP
's POS
new JJ
32-bit JJ
486tm JJ
microprocessor NN
, ,
which WDT
works VBZ
several JJ
times NNS
faster RBR
than IN
previously RB
available JJ
chips NNS
. .

Hewlett-Packard NNP
Co. NNP
became VBD
the DT
first JJ
company NN
world-wide JJ
to TO
announce VB
a DT
product NN
based VBN
on IN
the DT
chip NN
earlier RBR
this DT
month NN
, ,
but CC
it PRP
wo MD
n't RB
start VB
shipping VBG
the DT
computers NNS
until IN
early JJ
next JJ
year NN
. .

An DT
Olivetti NNP
spokesman NN
said VBD
the DT
company NN
's POS
factories NNS
are VBP
already RB
beginning VBG
to TO
produce VB
the DT
machine NN
, ,
and CC
that IN
it PRP
should MD
be VB
available JJ
in IN
Europe NNP
by IN
December NNP
. .

`` ``
What WP
this DT
means VBZ
is VBZ
that IN
Europeans NNPS
will MD
have VB
these DT
machines NNS
in IN
their PRP$
offices NNS
before IN
Americans NNPS
do VBP
, ,
'' ''
the DT
spokesman NN
said VBD
. .

The DT
new JJ
chip NN
`` ``
is VBZ
a DT
very RB
big JJ
step NN
in IN
computing VBG
, ,
and CC
it PRP
is VBZ
important JJ
that WDT
Olivetti NNP
be VB
one CD
of IN
the DT
first JJ
out IN
on IN
the DT
market NN
with IN
this DT
product NN
, ,
'' ''
said VBD
Patricia NNP
Meagher NNP
Davis NNP
, ,
an DT
analyst NN
at IN
James NNP
Capel NNP
& CC
Co. NNP
in IN
London NNP
. .

Executives NNS
at IN
Olivetti NNP
, ,
whose WP$
earnings NNS
have NN
been VBN
steadily RB
sliding VBG
over IN
the DT
past JJ
couple NN
of IN
years NNS
, ,
have VBP
acknowledged VBN
that IN
in IN
the DT
past JJ
they PRP
have VBP
lagged VBN
at IN
getting VBG
new JJ
technology NN
to TO
market VB
. .

Ms. NNP
Davis NNP
said VBD
the DT
new JJ
machines NNS
could MD
steal VB
some DT
sales NNS
away RB
from IN
Olivetti NNP
's POS
own JJ
minicomputers NNS
, ,
but CC
would MD
bring VB
new JJ
sales NNS
among IN
professionals NNS
such JJ
as IN
engineers NNS
, ,
stockbrokers NNS
and CC
medical JJ
doctors NNS
. .

Although IN
Olivetti NNP
's POS
profits NNS
tumbled VBD
40 CD
% NN
in IN
the DT
first JJ
half NN
of IN
this DT
year NN
, ,
she PRP
believes VBZ
Olivetti NNP
's POS
restructuring NN
last JJ
fall NN
and CC
its PRP$
introduction NN
of IN
new JJ
products NNS
will MD
begin VB
to TO
bear VB
fruit NN
with IN
an DT
earnings NNS
rebound NN
next JJ
year NN
, ,
especially RB
if IN
it PRP
can MD
fulfill VB
its PRP$
promise NN
to TO
deliver VB
the DT
new JJ
machines NNS
by IN
December NNP
. .

`` ``
We PRP
think VBP
the DT
worst JJS
is VBZ
over IN
'' ''
in IN
the DT
European JJ
information-technology JJ
market NN
, ,
she PRP
said VBD
. .

Depending VBG
on IN
the DT
type NN
of IN
software NN
and CC
peripherals NNS
used VBN
, ,
the DT
machines NNS
can MD
serve VB
either DT
as IN
the DT
main JJ
computer NN
in IN
a DT
network NN
of IN
many JJ
terminals NNS
-LRB- (
a DT
role NN
usually RB
filled VBD
by IN
a DT
minicomputer NN
-RRB- )
, ,
as IN
a DT
technical JJ
workstation NN
or CC
as IN
a DT
very RB
fast RB
personal JJ
computer NN
. .

`` ``
It PRP
's VBZ
the DT
missing VBG
link NN
'' ''
in IN
Olivetti NNP
's POS
product NN
line NN
between IN
small JJ
personal JJ
computers NNS
and CC
higher-priced JJ
minicomputers NNS
, ,
the DT
Olivetti NNP
spokesman NN
said VBD
. .

He PRP
added VBD
that IN
Olivetti NNP
will MD
continue VB
making VBG
its PRP$
LSX NNP
minicomputer NN
line NN
. .

The DT
machines NNS
will MD
cost VB
around IN
$ $
16,250 CD
on IN
average JJ
in IN
Europe NNP
. .

The DT
Intel NNP
486 CD
chip NN
can MD
process VB
15 CD
million CD
instructions NNS
per IN
second JJ
, ,
or CC
MIPS NNP
, ,
while IN
Intel NNP
's POS
previous JJ
386 CD
chip NN
could MD
handle VB
only RB
3 CD
to TO
6 CD
MIPS NNP
. .

Olivetti NNP
also RB
plans VBZ
to TO
sell VB
the DT
CP486 NNP
computer NN
in IN
the DT
U.S. NNP
starting VBG
next JJ
year NN
through IN
Olivetti NNP
USA NNP
and CC
through IN
its PRP$
ISC\/Bunker NNP
Ramo NNP
unit NN
, ,
which WDT
specializes VBZ
in IN
automating VBG
bank-branch JJ
networks NNS
. .

Viatech NNP
Inc. NNP
said VBD
it PRP
received VBD
approval NN
from IN
the DT
French JJ
government NN
for IN
its PRP$
proposed VBN
$ $
44.7 CD
million CD
acquisition NN
of IN
Ferembal NNP
S.A NNP
. .

The DT
approval NN
satisfies VBZ
the DT
remaining VBG
conditions NNS
of IN
the DT
purchase NN
, ,
which WDT
is VBZ
expected VBN
to TO
close VB
within IN
two CD
weeks NNS
. .

erembal NNP
, ,
the DT
second-largest JJ
maker NN
of IN
food NN
cans NNS
in IN
France NNP
, ,
had VBD
1988 CD
sales NNS
of IN
$ $
150 CD
million CD
. .

Ferembal NNP
has VBZ
930 CD
workers NNS
at IN
four CD
canning NN
manufacturing NN
plants NNS
and CC
one CD
plastic NN
container NN
facility NN
. .

Viatech NNP
makes VBZ
flexible JJ
packaging NN
films NNS
and CC
machinery NN
, ,
and CC
materials NNS
for IN
the DT
food NN
and CC
pharmaceutical JJ
industries NNS
. .

Social NNP
Security NNP
benefits NNS
will MD
rise VB
4.7 CD
% NN
next JJ
year NN
to TO
keep VB
pace NN
with IN
inflation NN
, ,
boosting VBG
the DT
average JJ
monthly JJ
benefit NN
to TO
$ $
566 CD
from IN
$ $
541 CD
, ,
the DT
Department NNP
of IN
Health NNP
and CC
Human NNP
Services NNP
announced VBD
. .

The DT
higher JJR
payments NNS
will MD
start VB
with IN
Social NNP
Security NNP
checks NNS
received VBD
on IN
Jan. NNP
3 CD
, ,
1990 CD
. .

Supplemental NNP
Security NNP
Income NNP
payments NNS
to TO
the DT
disabled JJ
also RB
will MD
rise VB
4.7 CD
% NN
, ,
starting VBG
with IN
checks NNS
received VBD
on IN
Dec. NNP
29 CD
, ,
1988 CD
, ,
increasing VBG
the DT
maximum JJ
SSI NNP
payment NN
to TO
$ $
386 CD
from IN
$ $
368 CD
a DT
month NN
. .

The DT
inflation NN
adjustment NN
also RB
means VBZ
that IN
the DT
maximum JJ
annual JJ
level NN
of IN
earnings NNS
subject NN
to TO
the DT
wage NN
tax NN
that WDT
generates VBZ
revenue NN
for IN
the DT
Social NNP
Security NNP
trust NN
fund NN
will MD
rise VB
to TO
$ $
50,400 CD
in IN
1990 CD
from IN
$ $
48,000 CD
this DT
year NN
. .

As IN
mandated VBN
by IN
law NN
, ,
the DT
tax NN
rate NN
will MD
rise VB
to TO
7.65 CD
% NN
in IN
1990 CD
from IN
7.51 CD
% NN
and CC
wo MD
n't RB
rise VB
any DT
further JJ
in IN
the DT
future NN
. .

This DT
means VBZ
that IN
the DT
maximum JJ
yearly JJ
Social NNP
Security NNP
tax NN
paid VBN
by IN
workers NNS
and CC
employers NNS
each DT
will MD
rise VB
$ $
250.80 CD
next JJ
year NN
to TO
$ $
3,855.60 CD
. .

Beneficiaries NNS
aged VBN
65 CD
through IN
69 CD
will MD
be VB
able JJ
to TO
earn VB
$ $
9,360 CD
without IN
losing VBG
any DT
Social NNP
Security NNP
benefits NNS
in IN
1990 CD
, ,
up IN
from IN
$ $
8,880 CD
this DT
year NN
. .

The DT
exempt JJ
amount NN
for IN
beneficiaries NNS
under IN
65 CD
will MD
rise VB
to TO
$ $
6,840 CD
from IN
$ $
6,480 CD
. .

The DT
adjustments NNS
reflect VBP
the DT
increase NN
in IN
the DT
consumer NN
price NN
index NN
for IN
urban JJ
wage NN
earners NNS
and CC
clerical JJ
workers NNS
from IN
the DT
third JJ
quarter NN
of IN
last JJ
year NN
to TO
the DT
third JJ
quarter NN
of IN
this DT
year NN
. .

Health-care JJ
companies NNS
should MD
get VB
healthier JJR
in IN
the DT
third JJ
quarter NN
. .

Medical-supply JJ
houses NNS
are VBP
expected VBN
to TO
report VB
earnings NNS
increases NNS
of IN
about IN
15 CD
% NN
on IN
average JJ
for IN
the DT
third JJ
quarter NN
, ,
despite IN
sales NNS
increases NNS
of IN
less JJR
than IN
10 CD
% NN
, ,
analysts NNS
say VBP
. .

To TO
offset VB
sluggish JJ
sales NNS
growth NN
, ,
companies NNS
have VBP
been VBN
cutting VBG
staff NN
, ,
mostly RB
through IN
attrition NN
, ,
and CC
slowing VBG
the DT
growth NN
in IN
research NN
and CC
development NN
spending NN
. .

Sales NNS
growth NN
in IN
the DT
quarter NN
was VBD
slowed VBN
by IN
mounting VBG
pressure NN
from IN
groups NNS
of IN
buyers NNS
, ,
such JJ
as IN
hospitals NNS
, ,
to TO
hold VB
down RB
prices VBZ
. .

Suppliers NNS
were VBD
also RB
hurt VBN
by IN
the DT
stronger JJR
U.S. NNP
dollar NN
, ,
which WDT
makes VBZ
sales NNS
abroad RB
more RBR
difficult JJ
. .

In IN
some DT
cases NNS
, ,
competition NN
has VBZ
squeezed VBN
margins NNS
. .

Becton NNP
, ,
Dickinson NNP
& CC
Co. NNP
, ,
for IN
example NN
, ,
faces VBZ
stiff JJ
competition NN
from IN
a DT
Japanese JJ
supplier NN
in IN
the DT
important JJ
syringe NN
market NN
. .

The DT
Franklin NNP
Lakes NNPS
, ,
N.J. NNP
, ,
company NN
is VBZ
expected VBN
to TO
report VB
sales NNS
growth NN
of IN
only JJ
5 NN
% NN
to TO
6 CD
% NN
, ,
but CC
should MD
still RB
maintain VB
earnings NNS
growth NN
of IN
10 CD
% NN
, ,
says VBZ
Jerry NNP
E. NNP
Fuller NNP
, ,
an DT
analyst NN
with IN
Duff NNP
& CC
Phelps NNP
Inc NNP
. .

Among IN
the DT
first JJ
of IN
the DT
group NN
to TO
post VB
results NNS
, ,
Abbott NNP
Laboratories NNPS
said VBD
third-quarter JJ
net JJ
income NN
jumped VBD
14 CD
% NN
to TO
$ $
196 CD
million CD
, ,
or CC
88 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
172 CD
million CD
, ,
or CC
76 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
for IN
the DT
company NN
, ,
based VBN
in IN
Abbott NNP
Park NNP
, ,
Ill. NNP
, ,
rose VBD
8.3 CD
% NN
to TO
$ $
1.31 CD
billion CD
from IN
$ $
1.21 CD
billion CD
. .

Baxter NNP
International NNP
Inc. NNP
yesterday NN
reported VBD
net NN
climbed VBD
20 CD
% NN
in IN
the DT
third JJ
period NN
to TO
$ $
102 CD
million CD
, ,
or CC
34 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
85 CD
million CD
, ,
or CC
28 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
for IN
the DT
Deerfield NNP
, ,
Ill. NNP
, ,
company NN
rose VBD
5.8 CD
% NN
to TO
$ $
1.81 CD
billion CD
from IN
$ $
1.71 CD
billion CD
. .

But CC
not RB
every DT
company NN
expects VBZ
to TO
report VB
increased VBN
earnings NNS
. .

C.R. NNP
Bard NNP
Inc. NNP
yesterday NN
said VBD
third-quarter JJ
net NN
plunged VBD
51 CD
% NN
to TO
$ $
9.9 CD
million CD
, ,
or CC
18 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
20 CD
million CD
, ,
or CC
35 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
fell VBD
1.2 CD
% NN
to TO
$ $
190.1 CD
million CD
from IN
$ $
192.5 CD
million CD
. .
The DT
Murray NNP
Hill NNP
, ,
N.J. NNP
, ,
company NN
said VBD
full-year JJ
earnings NNS
may MD
be VB
off IN
33 CD
cents NNS
a DT
share NN
because IN
the DT
company NN
removed VBD
a DT
catheter NN
from IN
the DT
market NN
. .

In IN
1988 CD
, ,
the DT
company NN
earned VBD
$ $
1.38 CD
a DT
share NN
. .

The DT
Food NNP
and CC
Drug NNP
Administration NNP
had VBD
raised VBN
questions NNS
about IN
the DT
device NN
's POS
design NN
. .

Some DT
analysts NNS
add VBP
that IN
third-party JJ
pressures NNS
to TO
reduce VB
health NN
costs NNS
will MD
continue VB
to TO
bedevil VB
companies NNS
' POS
bottom NN
lines NNS
. .

Takeover NN
speculation NN
, ,
which WDT
has VBZ
been VBN
buoying VBG
stocks NNS
of IN
supply NN
houses NNS
, ,
may MD
also RB
ease VB
, ,
says VBZ
Peter NNP
Sidoti NNP
, ,
an DT
analyst NN
with IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc NNP
. .

`` ``
As IN
that DT
wanes VBZ
, ,
you PRP
're VBP
going VBG
to TO
see VB
the DT
stocks NNS
probably RB
wane VBP
as IN
well RB
, ,
'' ''
he PRP
says VBZ
. .

Hospitals NNS
companies NNS
, ,
meanwhile RB
, ,
are VBP
reporting VBG
improved VBN
earnings NNS
. .

Bolstered VBN
by IN
strong JJ
performances NNS
by IN
its PRP$
psychiatric JJ
hospitals NNS
, ,
National NNP
Medical NNP
Enterprises NNPS
Inc. NNP
, ,
Los NNP
Angeles NNP
, ,
reported VBD
net JJ
income NN
of IN
$ $
50 CD
million CD
, ,
or CC
65 CD
cents NNS
a DT
share NN
, ,
for IN
the DT
first JJ
quarter NN
ended VBN
Aug. NNP
31 CD
, ,
up IN
from IN
$ $
41 CD
million CD
, ,
or CC
56 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Humana NNP
Inc. NNP
, ,
Louisville NNP
, ,
Ky. NNP
, ,
also RB
reported VBD
favorable JJ
results NNS
, ,
with IN
net JJ
income NN
of IN
$ $
66.7 CD
million CD
, ,
or CC
66 CD
cents NNS
, ,
in IN
the DT
fourth JJ
quarter NN
ended VBN
Aug. NNP
31 CD
, ,
up IN
from IN
$ $
58.2 CD
million CD
, ,
or CC
59 CD
cents NNS
, ,
a DT
year NN
earlier RBR
. .

Analysts NNS
say VBP
the DT
handful NN
of IN
hospital NN
companies NNS
that WDT
are VBP
still RB
publicly RB
traded VBN
are VBP
benefiting VBG
from IN
several JJ
trends NNS
. .

Most JJS
important JJ
, ,
hospital NN
admission NN
rates NNS
are VBP
stabilizing VBG
after IN
several JJ
years NNS
of IN
decline NN
. .

Moreover RB
, ,
companies NNS
have VBP
sold VBN
off IN
many NN
of IN
their PRP$
smaller JJR
, ,
less-profitable JJ
hospitals NNS
and CC
have VBP
completed VBN
painful JJ
restructurings NNS
. .
Humana NNP
's POS
revenues NNS
, ,
for IN
example NN
, ,
are VBP
being VBG
boosted VBN
by IN
large JJ
increases NNS
in IN
enrollments NNS
in IN
the DT
company NN
's POS
health NN
maintenance NN
organizations NNS
. .

Says VBZ
Todd NNP
Richter NNP
, ,
an DT
analyst NN
with IN
Dean NNP
Witter NNP
Reynolds NNP
: :
`` ``
The DT
shakeout NN
in IN
the DT
publicly RB
traded VBN
companies NNS
is VBZ
over RB
. .

Initial JJ
claims NNS
for IN
regular JJ
state NN
unemployment NN
benefits NNS
rose VBD
to TO
a DT
seasonally RB
adjusted VBN
396,000 CD
during IN
the DT
week NN
ended VBN
Oct. NNP
7 CD
from IN
334,000 CD
the DT
previous JJ
week NN
, ,
the DT
Labor NNP
Department NNP
said VBD
. .

The DT
number NN
of IN
people NNS
receiving VBG
regular JJ
state NN
benefits NNS
in IN
the DT
week NN
ended VBN
Sept. NNP
30 CD
decreased VBD
to TO
a DT
seasonally RB
adjusted VBN
2,202,000 CD
, ,
or CC
2.2 CD
% NN
of IN
those DT
covered VBN
by IN
unemployment NN
insurance NN
, ,
from IN
2,205,000 CD
the DT
previous JJ
week NN
, ,
when WRB
the DT
insured VBN
unemployment NN
rate NN
also RB
was VBD
2.2 CD
% NN
. .

Counting VBG
all DT
state NN
and CC
federal JJ
benefit NN
programs NNS
, ,
the DT
number NN
of IN
people NNS
receiving VBG
unemployment NN
benefits NNS
in IN
the DT
week NN
ended VBN
Sept. NNP
30 CD
fell VBD
to TO
1,809,300 CD
from IN
1,838,200 CD
a DT
week NN
earlier RBR
. .

These DT
figures NNS
are VBP
n't RB
seasonally RB
adjusted VBN
. .

A DT
Labor NNP
Department NNP
spokesman NN
said VBD
the DT
unusually RB
high JJ
number NN
of IN
initial JJ
claims NNS
for IN
state NN
unemployment NN
benefits NNS
reflects VBZ
the DT
impact NN
of IN
Hurricane NNP
Hugo NNP
on IN
southern JJ
states NNS
, ,
particularly RB
North NNP
Carolina NNP
and CC
South NNP
Carolina NNP
. .

The DT
figure NN
also RB
may MD
reflect VB
initial JJ
claims NNS
filed VBN
by IN
striking JJ
Nynex NNP
Corp. NNP
workers NNS
who WP
have VBP
become VBN
eligible JJ
for IN
unemployment NN
benefits NNS
, ,
the DT
official NN
said VBD
. .

Digital NNP
Equipment NNP
Corp. NNP
reported VBD
a DT
32 CD
% NN
decline NN
in IN
net JJ
income NN
on IN
a DT
modest JJ
revenue NN
gain NN
in IN
its PRP$
fiscal JJ
first JJ
quarter NN
, ,
causing VBG
some DT
analysts NNS
to TO
predict VB
weaker JJR
results NNS
ahead RB
than IN
they PRP
had VBD
expected VBN
. .

Although IN
the DT
second-largest JJ
computer NN
maker NN
had VBD
prepared VBN
Wall NNP
Street NNP
for IN
a DT
poor JJ
quarter NN
, ,
analysts NNS
said VBD
they PRP
were VBD
troubled JJ
by IN
signs NNS
of IN
flat JJ
U.S. NNP
orders NNS
and CC
a DT
slowdown NN
in IN
the DT
rate NN
of IN
gain NN
in IN
foreign JJ
orders NNS
. .

The DT
Maynard NNP
, ,
Mass. NNP
, ,
company NN
is VBZ
in IN
a DT
transition NN
in IN
which WDT
it PRP
is VBZ
trying VBG
to TO
reduce VB
its PRP$
reliance NN
on IN
mid-range JJ
machines NNS
and CC
establish VB
a DT
presence NN
in IN
workstations NNS
and CC
mainframes NNS
. .

Net JJ
for IN
the DT
quarter NN
ended VBN
Sept. NNP
30 CD
fell VBD
to TO
$ $
150.8 CD
million CD
, ,
or CC
$ $
1.20 CD
a DT
share NN
, ,
from IN
$ $
223 CD
million CD
, ,
or CC
$ $
1.71 CD
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Revenue NN
rose VBD
6.4 CD
% NN
to TO
$ $
3.13 CD
billion CD
from IN
$ $
2.94 CD
billion CD
. .

Digital NNP
said VBD
a DT
shift NN
in IN
its PRP$
product NN
mix NN
toward IN
low-end JJ
products NNS
and CC
strong JJ
growth NN
in IN
workstation NN
sales NNS
yielded VBD
lower JJR
gross JJ
margins NNS
. .

A DT
spokesman NN
also RB
said VBD
margins NNS
for IN
the DT
company NN
's POS
service NN
business NN
narrowed VBD
somewhat RB
because IN
of IN
heavy JJ
investments NNS
made VBN
in IN
that DT
sector NN
. .

The DT
lack NN
of IN
a DT
strong JJ
product NN
at IN
the DT
high JJ
end NN
of IN
Digital NNP
's POS
line NN
was VBD
a DT
significant JJ
drag NN
on IN
sales NNS
. .

Digital NNP
hopes VBZ
to TO
address VB
that IN
with IN
the DT
debut NN
of IN
its PRP$
first JJ
mainframe-class JJ
computers NNS
next JJ
Tuesday NNP
. .

The DT
new JJ
line NN
is VBZ
aimed VBN
directly RB
at IN
International NNP
Business NNP
Machines NNP
Corp NNP
. .

`` ``
Until IN
the DT
new JJ
mainframe NN
products NNS
kick VBP
in IN
, ,
there EX
wo MD
n't RB
be VB
a DT
lot NN
of IN
revenue NN
contribution NN
at IN
the DT
high JJ
end NN
, ,
and CC
that DT
's VBZ
hurt VBN
us PRP
, ,
'' ''
said VBD
Mark NNP
Steinkrauss NNP
, ,
Digital NNP
's POS
director NN
of IN
investor NN
relations NNS
. .

He PRP
said VBD
unfavorable JJ
currency NN
translations NNS
were VBD
also RB
a DT
factor NN
in IN
the DT
quarter NN
. .

DEC NNP
shares NNS
rose VBD
$ $
1.375 CD
to TO
$ $
89.75 CD
apiece RB
in IN
consolidated JJ
New NNP
York NNP
Stock NNP
Exchange NNP
trading NN
yesterday NN
. .

But CC
analysts NNS
said VBD
that IN
against IN
the DT
backdrop NN
of IN
a DT
nearly RB
40-point JJ
rise NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
, ,
that WDT
should MD
n't RB
necessarily RB
be VB
taken VBN
as IN
a DT
sign NN
of IN
great JJ
strength NN
. .

Some DT
cut VB
their PRP$
earnings NNS
estimates NNS
for IN
the DT
stock NN
this DT
year NN
and CC
predicted VBD
more JJR
efforts NNS
to TO
control VB
costs NNS
ahead RB
. .

`` ``
I PRP
think VBP
the DT
next JJ
few JJ
quarters NNS
will MD
be VB
difficult JJ
, ,
'' ''
said VBD
Steven NNP
Milunovich NNP
of IN
First NNP
Boston NNP
. .

`` ``
Margins NNS
will MD
remain VB
under IN
pressure NN
, ,
and CC
when WRB
the DT
new JJ
mainframe NN
does VBZ
ship NN
, ,
I PRP
'm VBP
not RB
sure JJ
it PRP
will MD
be VB
a DT
big JJ
winner NN
. .

'' ''
Mr. NNP
Milunovich NNP
said VBD
he PRP
was VBD
revising VBG
his PRP$
estimate NN
for IN
DEC NNP
's POS
current JJ
year NN
from IN
$ $
8.20 CD
a DT
share NN
to TO
`` ``
well RB
below IN
$ $
8 CD
, ,
'' ''
although IN
he PRP
has VBZ
n't RB
settled VBN
on IN
a DT
final JJ
number NN
. .

One CD
troubling JJ
aspect NN
of IN
DEC NNP
's POS
results NNS
, ,
analysts NNS
said VBD
, ,
was VBD
its PRP$
performance NN
in IN
Europe NNP
. .
DEC NNP
said VBD
its PRP$
overseas JJ
business NN
, ,
which WDT
now RB
accounts VBZ
for IN
more JJR
than IN
half NN
of IN
sales NNS
, ,
improved VBN
in IN
the DT
quarter NN
. .

It PRP
even RB
took VBD
the DT
unusually RB
frank JJ
step NN
of IN
telling VBG
analysts NNS
in IN
a DT
morning NN
conference NN
call NN
that IN
orders NNS
in IN
Europe NNP
were VBD
up IN
in IN
`` ``
double JJ
digits NNS
'' ''
in IN
foreign-currency NN
terms NNS
. .

That DT
gain NN
probably RB
translated VBD
into IN
about IN
5 NN
% NN
to TO
7 CD
% NN
in IN
dollar NN
terms NNS
, ,
well RB
below IN
recent JJ
quarters NNS
' POS
gains NNS
of IN
above IN
20 CD
% NN
, ,
reckons VBZ
Jay NNP
Stevens NNP
of IN
Dean NNP
Witter NNP
Reynolds NNP
. .

`` ``
That DT
was VBD
a DT
disappointment NN
'' ''
and CC
a DT
sign NN
of IN
overall JJ
computer-market JJ
softness NN
in IN
Europe NNP
, ,
Mr. NNP
Stevens NNP
said VBD
. .

Marc NNP
Schulman NNP
, ,
with IN
UBS NNP
Securities NNP
in IN
New NNP
York NNP
, ,
dropped VBD
his PRP$
estimate NN
of IN
DEC NNP
's POS
full-year JJ
net JJ
to TO
$ $
6.80 CD
a DT
share NN
from IN
$ $
8 CD
. .

Although IN
overall JJ
revenues NNS
were VBD
stronger JJR
, ,
Mr. NNP
Schulman NNP
said VBD
, ,
DEC NNP
`` ``
drew VBD
down RB
its PRP$
European JJ
backlog NN
'' ''
and CC
had VBD
flat JJ
world-wide JJ
orders NNS
overall JJ
. .

`` ``
The DT
bottom NN
line NN
is VBZ
that IN
it PRP
's VBZ
more JJR
hand NN
to TO
mouth NN
than IN
it PRP
has VBZ
been VBN
before RB
, ,
'' ''
he PRP
said VBD
. .

Mr. NNP
Schulman NNP
said VBD
he PRP
believes VBZ
that IN
the DT
roll-out NN
of IN
DEC NNP
's POS
new JJ
mainframe NN
will MD
`` ``
occur VB
somewhat RB
more RBR
leisurely JJ
'' ''
than IN
many NN
of IN
his PRP$
investment NN
colleagues NNS
expect VBP
. .

He PRP
said VBD
current JJ
expectations NNS
are VBP
for IN
an DT
entry NN
level NN
machine NN
to TO
be VB
shipped VBN
in IN
December NNP
, ,
with IN
all DT
of IN
the DT
more RBR
sophisticated JJ
versions NNS
out IN
by IN
June NNP
. .

For IN
reasons NNS
he PRP
would MD
n't RB
elaborate VB
on IN
, ,
he PRP
said VBD
he PRP
's VBZ
sure JJ
that DT
schedule NN
wo MD
n't RB
be VB
met VBN
, ,
meaning NN
less JJR
profit NN
impact NN
from IN
the DT
product NN
for IN
DEC NNP
in IN
the DT
next JJ
few JJ
quarters NNS
. .

John NNP
R. NNP
Wilke NNP
contributed VBD
to TO
this DT
article NN
. .

Colgate NNP
Palmolive NNP
Co. NNP
reported VBD
third-quarter JJ
net JJ
income NN
rose VBD
27 CD
% NN
, ,
bolstered VBN
by IN
strong JJ
sales NNS
in IN
its PRP$
Latin NNP
American JJ
business NN
and CC
surprisingly RB
healthy JJ
profits NNS
from IN
U.S. NNP
operations NNS
. .

Colgate NNP
said VBD
net JJ
income NN
for IN
the DT
quarter NN
rose VBD
to TO
$ $
76.7 CD
million CD
, ,
or CC
$ $
1.06 CD
a DT
share NN
, ,
on IN
sales NNS
that WDT
increased VBD
6 CD
% NN
to TO
$ $
1.3 CD
billion CD
. .

In IN
the DT
year-earlier JJ
period NN
, ,
Colgate NNP
posted VBD
net JJ
income NN
of IN
$ $
60.2 CD
million CD
, ,
or CC
88 CD
cents NNS
a DT
share NN
. .

Last JJ
year NN
's POS
results NNS
included VBD
earnings NNS
from IN
discontinued VBN
operations NNS
of IN
$ $
13.1 CD
million CD
, ,
or CC
19 CD
cents NNS
a DT
share NN
. .

Reuben NNP
Mark NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
Colgate NNP
, ,
said VBD
earnings NNS
growth NN
was VBD
fueled VBN
by IN
strong JJ
sales NNS
in IN
Latin NNP
America NNP
, ,
the DT
Far NNP
East NNP
and CC
Europe NNP
. .

Results NNS
were VBD
also RB
bolstered VBN
by IN
`` ``
a DT
very RB
meaningful JJ
increase NN
in IN
operating VBG
profit NN
at IN
Colgate NNP
's POS
U.S. NNP
business NN
, ,
'' ''
he PRP
said VBD
. .

Operating NN
profit NN
at IN
Colgate NNP
's POS
U.S. NNP
household NN
products NNS
and CC
personal JJ
care NN
businesses NNS
, ,
which WDT
include VBP
such JJ
well-known JJ
brands NNS
as IN
Colgate NNP
toothpaste NN
and CC
Fab NNP
laundry NN
detergent NN
, ,
jumped VBD
more JJR
than IN
40 CD
% NN
, ,
the DT
company NN
said VBD
. .

Mr. NNP
Mark NNP
attributed VBD
the DT
improvement NN
to TO
cost VB
savings NNS
achieved VBN
by IN
consolidating VBG
manufacturing NN
operations NNS
, ,
blending VBG
together RB
two CD
sales NNS
organizations NNS
and CC
more RBR
carefully RB
focusing VBG
the DT
company NN
's POS
promotional JJ
activities NNS
. .

`` ``
We PRP
've VBP
done VBN
a DT
lot NN
to TO
improve VB
-LRB- (
U.S. NNP
. .
-RRB- )
results NNS
and CC
a DT
lot NN
more JJR
will MD
be VB
done VBN
, ,
'' ''
Mr. NNP
Mark NNP
said VBD
. .

`` ``
Improving VBG
profitability NN
of IN
U.S. NNP
operations NNS
is VBZ
an DT
extremely RB
high JJ
priority NN
in IN
the DT
company NN
. .
'' ''

Colgate NNP
's POS
results NNS
were VBD
at IN
the DT
high JJ
end NN
of IN
the DT
range NN
of IN
analysts NNS
' POS
forecasts NNS
. .

The DT
scope NN
of IN
the DT
improvement NN
in IN
the DT
U.S. NNP
business NN
caught VBD
some DT
analysts NNS
by IN
surprise NN
. .

The DT
company NN
's POS
domestic JJ
business NN
, ,
especially RB
its PRP$
household NN
products NNS
division NN
, ,
has VBZ
performed VBN
poorly RB
for IN
years NNS
. .

Analysts NNS
say VBP
the DT
earnings NNS
improvement NN
came VBD
from IN
cutting VBG
costs NNS
rather RB
than IN
increasing VBG
sales NNS
. .

For IN
the DT
nine CD
months NNS
, ,
net JJ
increased VBN
14 CD
% NN
to TO
$ $
217.5 CD
million CD
, ,
or CC
$ $
3.09 CD
a DT
share NN
. .

Sales NNS
rose VBD
7 CD
% NN
to TO
$ $
3.8 CD
billion CD
. .

The DT
company NN
earned VBD
$ $
191.1 CD
million CD
, ,
or CC
$ $
2.79 CD
a DT
share NN
, ,
in IN
the DT
year-earlier JJ
period NN
. .

Colgate NNP
's POS
1988 CD
net JJ
income NN
included VBD
$ $
40.1 CD
million CD
, ,
or CC
59 CD
cents NNS
a DT
share NN
, ,
from IN
discontinued VBN
operations NNS
. .

Colgate NNP
sold VBD
its PRP$
hospital NN
supply NN
and CC
home NN
health NN
care NN
business NN
last JJ
year NN
. .
Separately RB
, ,
Colgate NNP
Wednesday NNP
finalized VBD
an DT
agreement NN
with IN
MacroChem NNP
Corp. NNP
, ,
a DT
tiny JJ
dental JJ
products NNS
and CC
pharmaceutical JJ
concern NN
based VBN
in IN
Billerica NNP
, ,
Mass. NNP
, ,
to TO
market VB
in IN
the DT
U.S. NNP
four CD
of IN
MacroChem NNP
's POS
FDA-approved JJ
dental JJ
products NNS
. .

The DT
products NNS
-- :
sealants NNS
and CC
bonding VBG
materials NNS
used VBN
by IN
dentists NNS
-- :
all DT
contain VB
fluoride NN
that WDT
is VBZ
released VBN
over IN
time NN
. .
The DT
move NN
is VBZ
part NN
of IN
a DT
drive NN
to TO
increase VB
Colgate NNP
's POS
business NN
with IN
dentists NNS
, ,
a DT
company NN
spokeswoman NN
said VBD
. .

Terms NNS
of IN
the DT
agreement NN
were VBD
n't RB
given VBN
. .

USACafes NNP
Limited NNP
Partnership NNP
said VBD
it PRP
completed VBD
the DT
sale NN
of IN
its PRP$
Bonanza NNP
restaurant NN
franchise NN
system NN
to TO
a DT
subsidiary NN
of IN
Metromedia NNP
Co. NNP
for IN
$ $
71 CD
million CD
in IN
cash NN
. .

USACafes NNP
, ,
which WDT
is VBZ
nearly RB
half-owned JJ
by IN
Sam NNP
and CC
Charles NNP
Wyly NNP
of IN
Dallas NNP
, ,
said VBD
it PRP
will MD
distribute VB
proceeds NNS
from IN
the DT
sale NN
to TO
unit NN
holders NNS
as IN
a DT
liquidating VBG
dividend NN
as RB
soon RB
as IN
possible JJ
. .

The DT
Bonanza NNP
franchise NN
system NN
, ,
which WDT
generates VBZ
about RB
$ $
600 CD
million CD
in IN
sales NNS
annually RB
, ,
represented VBD
substantially RB
all DT
of IN
the DT
partnership NN
's POS
assets NNS
. .
The DT
sale NN
of IN
the DT
system NN
has VBZ
been VBN
challenged VBN
in IN
a DT
class-action JJ
suit NN
on IN
behalf NN
of IN
unit NN
holders NNS
filed VBD
last JJ
week NN
in IN
a DT
Delaware NNP
court NN
, ,
USACafes NNP
said VBD
. .

The DT
company NN
said VBD
it PRP
believes VBZ
the DT
suit NN
is VBZ
without IN
merit NN
. .

American NNP
Telephone NNP
& CC
Telegraph NNP
Co. NNP
unveiled VBD
a DT
sweetened VBN
pension NN
and CC
early-retirement NN
program NN
for IN
management NN
that IN
it PRP
hopes VBZ
will MD
enable VB
it PRP
to TO
save VB
$ $
450 CD
million CD
in IN
the DT
next JJ
year NN
. .

AT&T NNP
also RB
said VBD
net JJ
income NN
rose VBD
19 CD
% NN
in IN
the DT
third JJ
quarter NN
. .

AT&T NNP
said VBD
its PRP$
amended VBN
pension NN
program NN
will MD
nearly RB
double JJ
to TO
34,000 CD
the DT
number NN
of IN
managers NNS
eligible JJ
to TO
retire VB
with IN
immediate JJ
pension NN
payments NNS
. .

AT&T NNP
said VBD
that WDT
based VBD
on IN
studies NNS
of IN
other JJ
companies NNS
that WDT
have VBP
offered VBN
retirement NN
plans NNS
, ,
it PRP
expects VBZ
about IN
one-third NN
of IN
its PRP$
eligible JJ
managers NNS
to TO
retire VB
under IN
the DT
new JJ
program NN
. .

AT&T NNP
said VBD
third-quarter JJ
net JJ
income NN
grew VBD
, ,
despite IN
stiff JJ
competition NN
in IN
all DT
of IN
the DT
company NN
's POS
markets NNS
. .

Net JJ
income NN
rose VBD
to TO
$ $
699 CD
million CD
, ,
or CC
65 CD
cents NNS
a DT
share NN
, ,
from IN
the DT
year-earlier JJ
$ $
587 CD
million CD
, ,
or CC
55 NN
cents NNS
a DT
share NN
. .

Revenue NN
edged VBD
up IN
to TO
$ $
8.9 CD
billion CD
from IN
$ $
8.81 CD
billion CD
. .

The DT
latest JJS
period NN
's POS
net NN
was VBD
reduced VBN
$ $
102 CD
million CD
, ,
or CC
nine CD
cents NNS
a DT
share NN
, ,
for IN
a DT
change NN
in IN
depreciation NN
method NN
and CC
concurrent JJ
changes NNS
in IN
estimates NNS
of IN
depreciable JJ
lives NNS
and CC
net JJ
salvage NN
for IN
certain JJ
telecommunications NNS
equipment NN
. .

The DT
results NNS
roughly RB
matched VBN
estimates NNS
of IN
securities NNS
analysts NNS
, ,
who WP
were VBD
encouraged VBN
by IN
AT&T NNP
increasing VBG
its PRP$
operating NN
margin NN
to TO
13 CD
% NN
from IN
11 CD
% NN
a DT
year NN
ago RB
, ,
because IN
of IN
continued VBN
cost-cutting JJ
efforts NNS
. .

Sales NNS
of IN
long-distance JJ
services NNS
, ,
an DT
extremely RB
competitive JJ
market NN
, ,
rose VBD
6.4 CD
% NN
. .

But CC
the DT
growth NN
was VBD
partly RB
offset VB
by IN
lower JJR
equipment NN
sales NNS
and CC
rentals NNS
and CC
price NN
cuts NNS
on IN
some DT
products NNS
. .

Under IN
the DT
amended VBN
pension NN
program NN
, ,
AT&T NNP
managers NNS
who WP
have VBP
at IN
least JJS
five CD
years NNS
of IN
service NN
will MD
have VB
five CD
years NNS
added VBD
to TO
their PRP$
age NN
and CC
length NN
of IN
service NN
for IN
pension NN
purposes NNS
. .

Managers NNS
who WP
retire VBP
Dec. NNP
30 CD
will MD
have VB
an DT
additional JJ
15 CD
% NN
added VBD
to TO
their PRP$
monthly JJ
pension NN
for IN
as RB
long RB
as IN
five CD
years NNS
or CC
age NN
65 CD
, ,
whichever WDT
comes VBZ
earlier RBR
. .

An DT
AT&T NNP
spokeswoman NN
said VBD
the DT
company NN
would MD
likely RB
replace VB
about IN
one-third NN
of IN
its PRP$
managers NNS
who WP
choose VBP
to TO
retire VB
with IN
new JJ
employees NNS
. .

Analysts NNS
hailed VBD
the DT
sweetened VBN
pension NN
package NN
, ,
which WDT
they PRP
said VBD
had VBN
been VBN
the DT
subject NN
of IN
rumors NNS
for IN
several JJ
months NNS
. .

`` ``
This DT
tells VBZ
you PRP
AT&T NNP
is VBZ
serious JJ
about IN
continuing VBG
to TO
manage VB
their PRP$
cost NN
structure NN
and CC
is VBZ
committed VBN
to TO
20%-a-year VB
earnings NNS
growth NN
, ,
'' ''
said VBD
Jack NNP
Grubman NNP
, ,
an DT
analyst NN
with IN
PaineWebber NNP
Inc NNP
. .

But CC
other JJ
analysts NNS
expressed VBD
disappointment NN
that IN
the DT
cost-cutting JJ
move NN
wo MD
n't RB
result VB
in IN
even RB
greater JJR
earnings NNS
growth NN
. .
`` ``
This DT
is VBZ
a DT
good JJ
move NN
, ,
but CC
it PRP
only RB
gets VBZ
you PRP
to TO
where WRB
people NNS
's POS
expectations NNS
already RB
are VBP
, ,
'' ''
in IN
terms NNS
of IN
earnings NNS
growth NN
, ,
said VBD
Joel NNP
D. NNP
Gross NNP
, ,
an DT
analyst NN
with IN
Donaldson NNP
, ,
Lufkin NNP
& CC
Jenrette NNP
. .

Mr. NNP
Gross NNP
said VBD
he PRP
had VBD
hoped VBN
that IN
a DT
cost NN
savings NNS
of IN
$ $
450 CD
million CD
would MD
result VB
in IN
even RB
greater JJR
growth NN
than IN
the DT
20 CD
% NN
annual JJ
earnings NNS
increase NN
AT&T NNP
has VBZ
told VBN
analysts NNS
it PRP
expects VBZ
in IN
the DT
future NN
. .

AT&T NNP
said VBD
the DT
special JJ
retirement NN
option NN
will MD
increase VB
fourth-quarter JJ
expenses NNS
. .

But CC
the DT
company NN
said VBD
the DT
amount NN
ca MD
n't RB
be VB
determined VBN
until IN
it PRP
knows VBZ
how WRB
many JJ
managers NNS
opt VBP
to TO
retire VB
. .

AT&T NNP
said VBD
the DT
expense NN
increase NN
will MD
be VB
largely RB
offset VB
by IN
a DT
gain NN
from IN
its PRP$
previously RB
announced VBD
plan NN
to TO
swap VB
its PRP$
holdings NNS
in IN
Ing NNP
. .
C. NNP
Olivetti NNP
& CC
Co. NNP
for IN
shares NNS
in IN
Cie NNP
. .
Industriali NNP
Riunite NNP
, ,
an DT
Italian JJ
holding NN
company NN
. .

For IN
the DT
nine CD
months NNS
, ,
AT&T NNP
said VBD
net JJ
income NN
was VBD
$ $
1.99 CD
billion CD
, ,
or CC
$ $
1.85 CD
a DT
share NN
, ,
up IN
19 CD
% NN
from IN
$ $
1.67 CD
billion CD
, ,
or CC
$ $
1.56 CD
a DT
share NN
. .

Revenue NN
gained VBD
3.1 CD
% NN
to TO
$ $
26.81 CD
billion CD
from IN
$ $
26 CD
billion CD
. .

In IN
composite JJ
trading NN
yesterday NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
AT&T NNP
shares NNS
closed VBD
at IN
$ $
43.375 CD
, ,
up IN
87.5 CD
cents NNS
. .

When WRB
it PRP
comes VBZ
to TO
buying VBG
and CC
selling VBG
shares NNS
, ,
Westridge NNP
Capital NNP
Management NNP
Inc. NNP
takes VBZ
a DT
back JJ
seat NN
to TO
no DT
one CD
. .

Every DT
dollar NN
's POS
worth NN
of IN
stock NN
in IN
the DT
Los NNP
Angeles NNP
money NN
manager NN
's POS
portfolio NN
is VBZ
traded VBN
seven CD
or CC
eight CD
times VBZ
a DT
year NN
, ,
the DT
firm NN
estimates NNS
. .

That DT
makes VBZ
it PRP
the DT
most RBS
active JJ
trader NN
among IN
all PDT
the DT
nation NN
's POS
investment NN
advisers NNS
, ,
according VBG
to TO
Securities NNPS
and CC
Exchange NNP
Commission NNP
filings NNS
. .

But CC
wait VB
a DT
second NN
. .

Westridge NNP
Capital NNP
is VBZ
an DT
index NN
fund NN
-- :
the DT
type NN
of IN
stolid JJ
long-term JJ
investor NN
whose WP$
goal NN
is VBZ
to TO
be VB
nothing NN
more JJR
than IN
average NN
. .

Westridge NNP
Capital NNP
's POS
frenetic JJ
trading NN
reflects VBZ
the DT
changes NNS
sweeping VBG
through IN
the DT
previously RB
sleepy JJ
world NN
of IN
indexing NN
. .

Indexing NN
for IN
the DT
most RBS
part NN
has VBZ
involved VBN
simply RB
buying VBG
and CC
then RB
holding VBG
stocks NNS
in IN
the DT
correct JJ
mix NN
to TO
mirror VB
a DT
stock NN
market NN
barometer NN
, ,
such JJ
as IN
Standard NNP
& CC
Poor NNP
's POS
500-stock JJ
index NN
, ,
and CC
match VB
its PRP$
performance NN
. .

Institutional JJ
investors NNS
have VBP
poured VBN
$ $
210 CD
billion CD
into IN
stock NN
and CC
bond NN
indexing NN
as IN
a DT
cheap JJ
and CC
easy JJ
form NN
of IN
investment NN
management NN
that WDT
promises VBZ
to TO
post VB
average JJ
market NN
returns NNS
. .

These DT
big JJ
investors NNS
have VBP
flocked VBN
to TO
indexing NN
because IN
relatively RB
few JJ
`` ``
active JJ
'' ''
stock NN
pickers NNS
have VBP
been VBN
able JJ
to TO
consistently RB
match VB
the DT
returns NNS
of IN
the DT
S&P NNP
500 CD
or CC
other JJ
bellwethers NNS
, ,
much RB
less JJR
beat VB
it PRP
. .

And CC
the DT
fees NNS
investors NNS
pay VBP
for IN
indexing NN
run NN
a DT
few JJ
pennies NNS
for IN
each DT
$ $
100 CD
of IN
assets NNS
-- :
a DT
fraction NN
of IN
the DT
cost NN
of IN
active JJ
managers NNS
. .

That DT
's VBZ
because IN
computers NNS
do VBP
most RBS
of IN
the DT
work NN
, ,
and CC
low JJ
trading NN
activity NN
keeps VBZ
a DT
lid NN
on IN
commission NN
costs NNS
. .

But CC
today NN
, ,
indexing NN
is VBZ
moving VBG
from IN
a DT
passive JJ
investment NN
strategy NN
to TO
an DT
increasingly RB
active JJ
one CD
. .

Because IN
index-fund JJ
managers NNS
are VBP
no RB
longer RB
satisfied VBN
with IN
merely RB
being VBG
average JJ
, ,
they PRP
have VBP
developed VBN
`` ``
enhanced VBN
'' ''
indexing NN
strategies NNS
that WDT
are VBP
intended VBN
to TO
outperform VB
the DT
market NN
as RB
much JJ
as IN
three CD
percentage NN
points NNS
. .

`` ``
Indexing NN
has VBZ
been VBN
the DT
most RBS
single JJ
successful JJ
investment NN
concept NN
in IN
the DT
last JJ
decade NN
, ,
but CC
the DT
index NN
money NN
has VBZ
been VBN
just RB
sort NN
of IN
sitting VBG
there EX
, ,
'' ''
says VBZ
Seth NNP
M. NNP
Lynn NNP
, ,
president NN
of IN
Axe NNP
Core NNP
Investors NNP
Inc. NNP
, ,
an DT
indexer NN
based VBN
in IN
Tarrytown NNP
, ,
N.Y NNP
. .

`` ``
Now RB
the DT
interest NN
is VBZ
in IN
what WP
else RB
can MD
I PRP
do VB
with IN
that DT
money NN
. .
'' ''

Among IN
the DT
souped-up JJ
indexing NN
strategies NNS
: :
Indexed JJ
portfolios NNS
can MD
be VB
built VBN
around IN
thousands NNS
of IN
stocks NNS
, ,
or CC
just RB
a DT
few JJ
dozen NN
, ,
rather RB
than IN
being VBG
restricted VBN
to TO
the DT
S&P NNP
500 CD
companies NNS
. .

They PRP
can MD
ignore VB
the DT
S&P NNP
500 CD
stocks NNS
altogether RB
and CC
focus NN
on IN
particular JJ
types NNS
of IN
stocks NNS
, ,
such JJ
as IN
smaller JJR
companies NNS
, ,
those DT
paying VBG
high JJ
dividends NNS
or CC
companies NNS
in IN
a DT
particular JJ
industry NN
, ,
state NN
or CC
country NN
. .

With IN
today NN
's POS
computer-driven JJ
program NN
trading NN
techniques NNS
, ,
index NN
funds NNS
can MD
trade VB
back RB
and CC
forth RB
between IN
stock-index NN
futures NNS
and CC
the DT
actual JJ
stocks NNS
making VBG
up IN
indexes NNS
such JJ
as IN
the DT
S&P NNP
500 CD
. .

Futures NNS
and CC
options NNS
also RB
make VBP
it PRP
possible JJ
to TO
build VB
`` ``
synthetic JJ
'' ''
index NN
funds NNS
that WDT
do VBP
n't RB
actually RB
own VB
a DT
single JJ
share NN
of IN
stock NN
, ,
but CC
can MD
produce VB
returns NNS
that WDT
match VBP
or CC
exceed VB
the DT
broad JJ
stock NN
market NN
. .

One CD
reason NN
for IN
these DT
hybrids NNS
is VBZ
that DT
indexing NN
's POS
rapid JJ
growth NN
is VBZ
slowing VBG
, ,
particularly RB
for IN
those DT
`` ``
plain JJ
vanilla NN
'' ''
funds VBZ
that DT
mirror NN
the DT
S&P NNP
500 CD
. .

`` ``
There EX
is VBZ
n't RB
a DT
boatload NN
-LCB- (
of IN
big JJ
investors NNS
-RCB- )
out IN
there EX
still RB
waiting VBG
to TO
get VB
into IN
indexing NN
, ,
'' ''
says VBZ
P. NNP
James NNP
Kartalia NNP
, ,
vice NN
president NN
of IN
ANB NNP
Investment NNP
Management NNP
Co. NNP
, ,
Chicago NNP
, ,
which WDT
offers VBZ
both DT
indexing NN
and CC
active JJ
management NN
services NNS
. .

-LRB- (
After IN
tripling VBG
in IN
size NN
in IN
the DT
past JJ
five CD
years NNS
, ,
index NN
funds NNS
now RB
hold VBP
about IN
20 CD
% NN
of IN
the DT
stock NN
owned VBN
by IN
pension NN
funds NNS
. .
-RRB- )

A DT
further JJ
problem NN
is VBZ
razor-thin JJ
profits NNS
. .

Plain-vanilla JJ
funds NNS
have VBP
become VBN
so RB
commonplace JJ
that IN
fees NNS
they PRP
can MD
charge VB
have NN
plunged VBN
to TO
almost JJ
nothing NN
, ,
and CC
in IN
some DT
cases NNS
are VBP
just RB
that DT
. .

To TO
land VB
customers NNS
for IN
their PRP$
well-paying JJ
stock NN
custodial JJ
business NN
, ,
big JJ
banks NNS
sometimes RB
will MD
throw VB
in IN
basic JJ
indexing NN
services NNS
for IN
free JJ
. .

`` ``
It PRP
's VBZ
like IN
getting VBG
a DT
free JJ
toaster NN
when WRB
you PRP
open VB
an DT
account NN
, ,
'' ''
says VBZ
Axe NNP
Core NNP
's POS
Mr. NNP
Lynn NNP
. .

As IN
a DT
result NN
, ,
indexers NNS
have VBP
been VBN
looking VBG
for IN
ways NNS
to TO
give VB
investors NNS
something NN
more JJR
than IN
the DT
average NN
for IN
their PRP$
money NN
. .

And CC
many JJ
have NN
been VBN
successful JJ
, ,
as IN
in IN
the DT
case NN
of IN
the DT
index NN
fund NN
operated VBN
by IN
hyper-trader NN
Westridge NNP
Capital NNP
. .

Westridge NNP
Capital NNP
has VBZ
used VBN
enhanced VBN
indexing NN
techniques NNS
to TO
beat VB
the DT
S&P NNP
500 CD
's POS
returns NNS
by IN
2.5 CD
to TO
3 CD
percentage NN
points NNS
over IN
the DT
past JJ
four CD
years NNS
, ,
with IN
the DT
same JJ
risk NN
level NN
as IN
holding VBG
the DT
S&P NNP
500 CD
stocks NNS
, ,
according VBG
to TO
James NNP
Carder NNP
, ,
the DT
firm NN
's POS
president NN
. .

Strategies NNS
vary VBP
for IN
Westridge NNP
Capital NNP
, ,
which WDT
has VBZ
$ $
300 CD
million CD
under IN
management NN
. .

The DT
firm NN
sometimes RB
buys VBZ
S&P NNP
500 CD
futures NNS
when WRB
they PRP
are VBP
selling VBG
at IN
a DT
discount NN
to TO
the DT
actual JJ
stocks NNS
, ,
and CC
will MD
switch VB
back RB
and CC
forth RB
between IN
stocks NNS
and CC
stock-index NN
futures NNS
to TO
take VB
advantages NNS
of IN
any DT
momentary JJ
price NN
discrepencies NNS
. .

Mr. NNP
Carder NNP
also RB
goes VBZ
through IN
periods NNS
when WRB
he PRP
buys VBZ
stocks NNS
in IN
conjunction NN
with IN
options NNS
to TO
boost VB
returns NNS
and CC
protect VB
against IN
declines NNS
. .

And CC
in IN
some DT
months NNS
, ,
he PRP
buys VBZ
stock-index NN
futures NNS
and CC
not RB
stocks VBZ
at IN
all DT
. .

`` ``
By IN
their PRP$
nature NN
, ,
our PRP$
trades NNS
are VBP
very RB
short-term JJ
and CC
are VBP
going VBG
to TO
create VB
high JJ
turnover NN
, ,
'' ''
Mr. NNP
Carder NNP
adds VBZ
. .

`` ``
The DT
more JJR
turnover NN
, ,
the DT
better JJR
for IN
our PRP$
clients NNS
. .
'' ''

Big JJ
indexer NN
Bankers NNP
Trust NNP
Co. NNP
also RB
uses VBZ
futures NNS
in IN
a DT
strategy NN
that IN
on IN
average NN
has VBZ
added VBN
one CD
percentage NN
point NN
to TO
its PRP$
enhanced VBN
fund NN
's POS
returns NNS
. .

J. NNP
Thomas NNP
Allen NNP
, ,
president NN
of IN
Pittsburgh-based JJ
Advanced NNP
Investment NNP
Management NNP
Inc. NNP
, ,
agrees VBZ
it PRP
's VBZ
a DT
good JJ
idea NN
to TO
jump VB
between IN
the DT
S&P NNP
500 CD
stocks NNS
and CC
futures NNS
. .

`` ``
You PRP
're VBP
buying VBG
the DT
S&P NNP
, ,
and CC
you PRP
always RB
want VBP
to TO
hold VB
the DT
cheapest JJS
form NN
of IN
it PRP
, ,
'' ''
he PRP
says VBZ
. .

But CC
some DT
indexers NNS
make VBP
little JJ
or CC
no DT
use NN
of IN
futures NNS
, ,
saying VBG
that IN
these DT
instruments NNS
present NN
added VBD
risks NNS
for IN
investors NNS
. .

`` ``
If IN
the DT
futures NNS
markets NNS
have VBP
a DT
problem NN
, ,
then RB
those DT
products NNS
could MD
have VB
a DT
problem NN
, ,
'' ''
says VBZ
John NNP
Zumbrunn NNP
, ,
managing VBG
director NN
of IN
Prudential NNP
Insurance NNP
Co. NNP
of IN
America NNP
's POS
Investment NNP
Index NNP
Technologies NNP
Inc. NNP
unit NN
. .

Prudential NNP
currently RB
is VBZ
seeking VBG
approval NN
to TO
offer VB
a DT
new JJ
fund NN
offering VBG
a DT
return NN
equal JJ
to TO
the DT
S&P NNP
500 CD
index NN
plus CC
5\/100 CD
of IN
a DT
percentage NN
point NN
. .

An DT
added VBN
feature NN
is VBZ
that IN
the DT
slighty NN
improved VBD
return NN
would MD
be VB
guaranteed VBN
by IN
Prudential NNP
. .

There EX
are VBP
many JJ
other JJ
strategies NNS
to TO
bolster VB
the DT
returns NNS
of IN
index NN
funds NNS
. .

They PRP
include VBP
: :

LIMITED JJ
RISK NN
FUNDS NNS
: :

These DT
guarantee NN
protection NN
against IN
stock NN
market NN
declines NNS
while IN
still RB
passing VBG
along IN
most RBS
gains NNS
. .

Here RB
a DT
fund NN
may MD
promise VB
to TO
pay VB
back RB
, ,
say VBP
, ,
$ $
95 CD
of IN
every DT
$ $
100 CD
invested VBN
for IN
a DT
year NN
, ,
even RB
if IN
the DT
market NN
goes VBZ
much RB
lower JJR
. .

The DT
fund NN
could MD
invest VB
$ $
87 CD
for IN
one CD
year NN
in IN
Treasury NNP
bills NNS
yielding VBG
8 CD
% NN
to TO
return VB
the DT
guaranteed VBN
$ $
95 CD
. .

That DT
leaves VBZ
$ $
13 CD
, ,
which WDT
could MD
be VB
used VBN
to TO
buy VB
S&P NNP
500 CD
options NNS
that WDT
will MD
nearly RB
match VB
any DT
gain NN
in IN
the DT
S&P NNP
index NN
. .

MANAGER NN
REPLICATION NN
FUNDS NNS
: :

Say VB
a DT
big JJ
investor NN
is VBZ
interested JJ
in IN
growth NN
stocks NNS
. .

Instead RB
of IN
hiring VBG
one CD
of IN
the DT
many JJ
active JJ
managers NNS
specializing VBG
in IN
growth NN
stocks NNS
, ,
indexers NNS
can MD
design VB
a DT
portfolio NN
around IN
the DT
same JJ
stocks NNS
; :
the DT
portfolio NN
will MD
be VB
maintained VBN
by IN
computer NN
, ,
reducing VBG
both DT
fees NNS
and CC
, ,
in IN
theory NN
, ,
risk NN
-LRB- (
because IN
of IN
the DT
large JJ
number NN
of IN
stocks NNS
-RRB- )
. .

`` ``
We PRP
see VBP
a DT
lot NN
of IN
interest NN
in IN
those DT
kind NN
of IN
things NNS
, ,
'' ''
says VBZ
Frank NNP
Salerno NNP
, ,
a DT
vice NN
president NN
of IN
Bankers NNP
Trust NNP
. .

`` ``
People NNS
comfortable JJ
with IN
the DT
passive JJ
approach NN
are VBP
using VBG
them PRP
for IN
other JJ
strategies NNS
. .
'' ''

TILT NN
FUNDS NNS
: :

This DT
is VBZ
an DT
index NN
fund NN
with IN
a DT
bet NN
. .

Instead RB
of IN
replicating VBG
the DT
S&P NNP
500 CD
or CC
some DT
other JJ
index NN
exactly RB
, ,
some DT
stocks NNS
are VBP
overweighted VBN
or CC
underweighted VBN
in IN
the DT
portfolio NN
. .

One CD
simple JJ
approach NN
is VBZ
to TO
exclude VB
S&P NNP
500 CD
companies NNS
considered VBD
bankruptcy NN
candidates NNS
; :
this DT
can MD
avoid VB
weak JJ
sisters NNS
, ,
but CC
also RB
can MD
hurt VB
when WRB
a DT
company NN
like IN
Chrysler NNP
Corp. NNP
rebounds VBZ
. .
Another DT
approach NN
: :
An DT
investor NN
with IN
$ $
100 CD
million CD
might MD
use VB
$ $
75 CD
million CD
to TO
buy VB
the DT
S&P NNP
500 CD
index NN
and CC
spend VB
the DT
other JJ
$ $
25 CD
million CD
on IN
a DT
favorite JJ
group NN
of IN
stocks NNS
. .

SPECIALIZED JJ
FUNDS NNS
: :

Indexes NNS
can MD
be VB
constructed VBN
to TO
serve VB
social JJ
goals NNS
, ,
such JJ
as IN
eliminating VBG
the DT
stocks NNS
of IN
companies NNS
doing VBG
business NN
in IN
South NNP
Africa NNP
. .

Other JJ
funds NNS
have VBP
been VBN
designed VBN
to TO
concentrate VB
on IN
stocks NNS
in IN
a DT
geographic JJ
area NN
in IN
order NN
to TO
encourage VB
local JJ
investment NN
. .

Pennsylvania NNP
State NNP
Employees NNP
Retirement NNP
System NNP
, ,
for IN
example NN
, ,
has VBZ
about RB
$ $
130 CD
million CD
invested VBN
in IN
a DT
fund NN
of IN
244 CD
companies NNS
that WDT
are VBP
either DT
Pennsylvania-based JJ
or CC
have VBP
25 CD
% NN
of IN
their PRP$
work NN
forces NNS
in IN
the DT
state NN
. .

Short JJ
interest NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
declined VBD
for IN
the DT
second JJ
consecutive JJ
month NN
, ,
this DT
time NN
4.2 CD
% NN
, ,
while IN
the DT
American NNP
Stock NNP
Exchange NNP
reported VBD
its PRP$
third JJ
consecutive JJ
record NN
month NN
of IN
short JJ
interest NN
. .

The DT
Big NNP
Board NNP
reported VBD
that IN
short JJ
interest NN
dropped VBD
to TO
523,920,214 CD
shares NNS
as IN
of IN
Oct. NNP
13 CD
from IN
547,347,585 CD
shares NNS
in IN
mid-September NNP
. .

Amex NNP
short JJ
interest NN
climbed VBD
3 CD
% NN
to TO
53,496,665 CD
shares NNS
from IN
51,911,566 CD
shares NNS
. .

For IN
the DT
year-earlier JJ
month NN
, ,
the DT
Big NNP
Board NNP
reported VBD
461,539,056 CD
shares NNS
, ,
indicating VBG
a DT
13.5 CD
% NN
year-to-year JJ
rise NN
, ,
while IN
the DT
Amex NNP
reported VBD
36,015,194 CD
shares NNS
, ,
a DT
48 CD
% NN
leap NN
. .

Amex NNP
short JJ
interest NN
has VBZ
been VBN
heading VBG
upward RB
since IN
mid-December NNP
, ,
with IN
increases NNS
in IN
each DT
month NN
since IN
then RB
except IN
at IN
mid-July NN
. .

Traders NNS
who WP
sell VBP
short JJ
borrow VB
stock NN
and CC
sell VB
it PRP
, ,
betting VBG
that IN
the DT
stock NN
's POS
price NN
will MD
decline VB
and CC
that IN
they PRP
can MD
buy VB
the DT
shares NNS
back RB
later RB
at IN
a DT
lower JJR
price NN
for IN
return NN
to TO
the DT
lender NN
. .

Short JJ
interest NN
is VBZ
the DT
number NN
of IN
shares NNS
that WDT
have VBP
n't RB
yet RB
been VBN
purchased VBN
for IN
return NN
to TO
lenders NNS
. .

Although IN
a DT
substantial JJ
short JJ
position NN
reflects VBZ
heavy JJ
speculation NN
that IN
a DT
stock NN
's POS
price NN
will MD
decline VB
, ,
some DT
investors NNS
consider VBP
an DT
increase NN
in IN
short JJ
interest NN
bullish JJ
because IN
the DT
borrowed VBN
shares NNS
eventually RB
must MD
be VB
bought VBN
back RB
. .

Fluctuation NN
in IN
short JJ
interest NN
of IN
certain JJ
stocks NNS
also RB
may MD
be VB
caused VBN
partly RB
by IN
arbitraging VBG
. .

The DT
figures NNS
occasionally RB
include VBP
incomplete JJ
transactions NNS
in IN
restricted VBN
stock NN
. .

The DT
level NN
of IN
negative JJ
sentiment NN
measured VBN
by IN
the DT
Big NNP
Board NNP
short JJ
interest NN
ratio NN
slipped VBD
to TO
3.36 CD
from IN
last JJ
month NN
's POS
3.38 CD
. .

The DT
ratio NN
is VBZ
the DT
number NN
of IN
trading NN
days NNS
, ,
at IN
the DT
exchange NN
's POS
average JJ
trading NN
volume NN
, ,
that WDT
would MD
be VB
required VBN
to TO
convert VB
the DT
total JJ
short JJ
interest NN
position NN
. .

Some DT
analysts NNS
suggest VBP
, ,
however RB
, ,
that IN
the DT
ratio NN
has VBZ
weakened VBN
in IN
value NN
as IN
an DT
indicator NN
because IN
options NNS
and CC
other JJ
products NNS
can MD
be VB
used VBN
to TO
hedge VB
short JJ
positions NNS
. .

Varity NNP
Corp. NNP
led VBD
the DT
Big NNP
Board NNP
list NN
of IN
largest JJS
short JJ
volumes NNS
with IN
12,822,563 CD
shares NNS
. .

Varity NNP
has VBZ
proposed VBN
to TO
acquire VB
K-H NNP
Corp. NNP
, ,
consisting VBG
of IN
the DT
auto NN
parts NNS
division NN
and CC
some DT
debt NN
of IN
Fruehauf NNP
Corp. NNP
, ,
for IN
$ $
577.3 CD
million CD
of IN
cash NN
and CC
securities NNS
. .

Chemical NNP
Waste NNP
Management NNP
posted VBD
the DT
biggest JJS
increase NN
in IN
short JJ
volume NN
on IN
the DT
New NNP
York NNP
exchange NN
, ,
up IN
3,383,477 CD
shares NNS
to TO
5,267,238 CD
. .

Bristol-Myers NNP
Squibb NNP
Co. NNP
, ,
the DT
entity NN
formed VBN
from IN
the DT
recent JJ
acquisition NN
of IN
Squibb NNP
Corp. NNP
by IN
Bristol-Myers NNP
Co. NNP
, ,
logged VBD
the DT
largest JJS
volume NN
decline NN
, ,
7,592,988 CD
shares NNS
, ,
to TO
12,017,724 CD
. .

Short JJ
interest NN
in IN
International NNP
Business NNP
Machines NNP
Corp. NNP
plunged VBD
to TO
1,425,035 CD
shares NNS
from IN
2,387,226 CD
shares VBZ
a DT
month NN
earlier RBR
. .

Also RB
closely RB
watched VBD
is VBZ
Exxon NNP
Corp. NNP
, ,
where WRB
short JJ
interest NN
slid VBD
to TO
4,469,167 CD
shares NNS
from IN
5,088,774 CD
. .

On IN
a DT
percentage NN
basis NN
, ,
Germany NNP
Fund NNP
Inc. NNP
led VBD
the DT
gainers NNS
, ,
leaping VBG
to TO
67,972 CD
shares NNS
from IN
three CD
shares NNS
. .

TransCanada NNP
PipeLines NNP
Ltd. NNP
led VBD
the DT
percentage NN
decliners NNS
, ,
dropping VBG
to TO
59 CD
shares NNS
from IN
183,467 CD
. .

The DT
Amex NNP
short JJ
interest NN
volume NN
leader NN
again RB
was VBD
Texas NNP
Air NNP
Corp. NNP
, ,
rising VBG
to TO
3,820,634 CD
shares NNS
from IN
3,363,949 CD
. .

Bolar NNP
Pharmaceutical NNP
Co. NNP
posted VBD
the DT
largest JJS
volume NN
increase NN
, ,
552,302 CD
shares NNS
, ,
to TO
2,157,656 CD
. .

The DT
company NN
is VBZ
under IN
an DT
investigation NN
concerning VBG
procedures NNS
to TO
gain VB
Food NNP
and CC
Drug NNP
Administration NNP
approval NN
of IN
generic JJ
drugs NNS
. .

Bolar NNP
has VBZ
denied VBN
any DT
wrongdoing NN
. .

The DT
largest JJS
volume NN
drop NN
-- :
down RB
445,645 CD
shares NNS
to TO
141,903 CD
-- :
came VBD
in IN
shares NNS
represented VBN
by IN
B.A.T NNP
Industries NNP
PLC NNP
's POS
American JJ
depositary NN
receipts NNS
. .

The DT
company NN
is VBZ
facing VBG
a DT
takeover NN
proposal NN
from IN
the DT
financier NN
Sir NNP
James NNP
Goldsmith NNP
. .

First NNP
Iberian NNP
Fund NNP
led VBD
the DT
percentage NN
increases NNS
, ,
rising VBG
to TO
73,100 CD
shares NNS
from IN
184 CD
. .

Nelson NNP
Holdings NNP
International NNP
Ltd. NNP
dropped VBD
the DT
most RBS
on IN
a DT
percentage NN
basis NN
, ,
to TO
1,000 CD
shares NNS
from IN
255,923 CD
. .

The DT
adjacent JJ
tables NNS
show VBP
the DT
Big NNP
Board NNP
and CC
Amex NNP
issues NNS
in IN
which WDT
a DT
short JJ
interest NN
position NN
of IN
at IN
least JJS
100,000 CD
shares NNS
existed VBD
as IN
of IN
mid-October NNP
or CC
in IN
which WDT
there EX
was VBD
a DT
short JJ
position NN
change NN
of IN
at IN
least JJS
50,000 CD
shares NNS
since IN
mid-September NNP
. .

Your PRP$
Oct. NNP
12 CD
editorial NN
`` ``
Pitiful NNP
, ,
Helpless NNP
Presidency NNP
? .
'' ''
correctly RB
states VBZ
that IN
I PRP
was VBD
critical JJ
of IN
the DT
Bush NNP
administration NN
's POS
failure NN
to TO
have VB
any DT
plan NN
in IN
place NN
to TO
respond VB
in IN
a DT
timely JJ
fashion NN
to TO
the DT
opportunities NNS
to TO
oust VB
Manuel NNP
Noriega NNP
presented VBN
by IN
the DT
attempted VBN
military JJ
coup NN
on IN
Oct. NNP
3 CD
. .

You PRP
are VBP
absolutely RB
wrong JJ
, ,
however RB
, ,
in IN
opining VBG
that IN
this DT
position NN
is VBZ
some DT
kind NN
of IN
`` ``
flip-flop NN
, ,
'' ''
something NN
newly RB
arrived VBD
at IN
as IN
a DT
result NN
of IN
reading VBG
the DT
opinion NN
polls NNS
. .

My PRP$
position NN
is VBZ
one CD
founded VBN
on IN
both DT
the DT
facts NNS
and CC
the DT
law NN
. .

Although IN
you PRP
may MD
have VB
forgotten VBN
, ,
public JJ
opinion NN
about IN
Gen. NNP
Noriega NNP
is VBZ
where WRB
it PRP
is VBZ
in IN
large JJ
measure NN
because IN
of IN
my PRP$
investigation NN
of IN
his PRP$
years NNS
of IN
involvement NN
in IN
narcotics NNS
smuggling VBG
-LRB- (
and CC
simultaneous JJ
work NN
as IN
a DT
U.S. NNP
operative JJ
-RRB- )
. .

The DT
public RB
made VBN
up IN
its PRP$
mind NN
about IN
Gen. NNP
Noriega NNP
largely RB
as IN
a DT
result NN
of IN
the DT
hearings NNS
I PRP
chaired VBD
in IN
the DT
Subcommittee NNP
on IN
Terrorism NNP
and CC
Narcotics NNPS
of IN
the DT
Foreign NNP
Relations NNP
Committee NNP
on IN
Feb. NNP
8 CD
, ,
9 CD
, ,
10 CD
and CC
11 CD
, ,
1988 CD
, ,
and CC
again RB
on IN
April NNP
4 CD
, ,
1988 CD
. .

It PRP
was VBD
during IN
those DT
hearings NNS
that IN
the DT
nation NN
first JJ
learned VBD
the DT
breadth NN
and CC
depth NN
of IN
Gen. NNP
Noriega NNP
's POS
criminality NN
, ,
and CC
of IN
his PRP$
enduring VBG
relationships NNS
with IN
a DT
variety NN
of IN
U.S. NNP
government NN
agencies NNS
. .

Those DT
hearings NNS
also RB
highlighted VBN
how WRB
Gen. NNP
Noriega NNP
was VBD
able JJ
to TO
use VB
his PRP$
relationships NNS
with IN
these DT
agencies NNS
to TO
delay VB
U.S. NNP
action NN
against IN
him PRP
, ,
and CC
to TO
exploit VB
the DT
administration NN
's POS
obsession NN
with IN
overthrowing VBG
the DT
Sandinistas NNPS
to TO
protect VB
his PRP$
own JJ
drug-dealing NN
. .

As IN
former JJ
Ambassador NNP
to TO
Costa NNP
Rica NNP
Francis NNP
J. NNP
McNeil NNP
testified VBD
before IN
the DT
subcommittee NN
, ,
the DT
Reagan NNP
administration NN
knew VBD
that IN
Gen. NNP
Noriega NNP
was VBD
involved VBN
with IN
narcotics NNS
, ,
but CC
made VBD
a DT
decision NN
in IN
the DT
summer NN
of IN
1986 CD
`` ``
to TO
put VB
Gen. NNP
Noriega NNP
on IN
the DT
shelf NN
until IN
Nicaragua NNP
was VBD
settled VBN
. .
'' ''

As IN
the DT
report NN
issued VBN
by IN
the DT
subcommittee NN
concluded VBD
, ,
`` ``
Our PRP$
government NN
did VBD
nothing NN
regarding VBG
Gen. NNP
Noriega NNP
's POS
drug NN
business NN
and CC
substantial JJ
criminal JJ
involvement NN
because IN
the DT
first JJ
priority NN
was VBD
the DT
Contra NNP
war NN
. .

This DT
decision NN
resulted VBD
in IN
at IN
least JJS
some DT
drugs NNS
entering VBG
the DT
United NNP
States NNPS
as IN
a DT
hidden VBN
cost NN
of IN
the DT
war NN
. .
'' ''
Unfortunately RB
, ,
this DT
problem NN
continued VBD
even RB
after IN
Gen. NNP
Noriega NNP
's POS
indictment NN
. .

Throughout IN
1988 CD
and CC
this DT
year NN
, ,
I PRP
and CC
others NNS
in IN
Congress NNP
have VBP
pressed VBN
the DT
U.S. NNP
to TO
develop VB
a DT
plan NN
for IN
pushing VBG
this DT
`` ``
narcokleptocrat NN
'' ''
out IN
of IN
Panama NNP
. .

Regrettably RB
, ,
two CD
administrations NNS
in IN
a DT
row NN
have VBP
been VBN
unwilling JJ
and CC
unable JJ
to TO
develop VB
any DT
plan NN
, ,
military JJ
or CC
economic JJ
, ,
for IN
supporting VBG
the DT
Panamanian JJ
people NNS
in IN
their PRP$
attempts NNS
to TO
restore VB
democracy NN
. .

Sen. NNP
John NNP
Kerry NNP
-LRB- (
D. NNP
, ,
Mass NNP
. .
-RRB- )

For IN
Vietnamese JJ
, ,
these DT
are VBP
tricky JJ
, ,
often RB
treacherous JJ
, ,
times NNS
. .

After IN
years NNS
of IN
hesitation NN
, ,
economic JJ
and CC
political JJ
reform NN
was VBD
embraced VBN
at IN
the DT
end NN
of IN
1986 CD
, ,
but CC
ringing VBG
declarations NNS
have VBP
yet RB
to TO
be VB
translated VBN
into IN
much JJ
action NN
. .

Vietnam NNP
is VBZ
finding VBG
that IN
turning VBG
a DT
stagnant JJ
socialist JJ
order NN
into IN
a DT
dynamic JJ
free JJ
market NN
does VBZ
n't RB
come VB
easy JJ
. .

Here RB
is VBZ
how WRB
three CD
Vietnamese JJ
are VBP
coping VBG
with IN
change NN
: :

The DT
Tire NNP
King NNP

Nguyen NNP
Van NNP
Chan NNP
is VBZ
living VBG
proof NN
that IN
old JJ
ways NNS
die VBP
hard JJ
. .
Mr. NNP
Chan NNP
used VBD
to TO
be VB
an DT
oddity NN
in IN
Hanoi NNP
: :
a DT
private JJ
entrepreneur NN
. .

His PRP$
business NN
success NN
made VBD
him PRP
an DT
official JJ
target NN
in IN
pre-reform JJ
days NNS
. .

Mr. NNP
Chan NNP
, ,
now RB
64 CD
years NNS
old JJ
, ,
invented VBD
a DT
fountain NN
pen NN
he PRP
and CC
his PRP$
family NN
produced VBN
from IN
plastic NN
waste NN
. .

Later RB
, ,
he PRP
marketed VBD
glue NN
. .

Both DT
products NNS
were VBD
immensely RB
popular JJ
. .

For IN
his PRP$
troubles NNS
, ,
Mr. NNP
Chan NNP
was VBD
jailed VBN
three CD
times NNS
between IN
1960 CD
and CC
1974 CD
. .

Though IN
his PRP$
operation NN
was VBD
registered VBN
and CC
used VBN
only JJ
scrap NN
, ,
he PRP
was VBD
accused VBN
of IN
conducting VBG
illegal JJ
business NN
and CC
possessing VBG
illegal JJ
materials NNS
. .

Once RB
he PRP
was VBD
held VBN
for IN
three CD
months NNS
without IN
being VBG
charged VBN
. .

Things NNS
were VBD
supposed VBN
to TO
change VB
when WRB
Vietnam NNP
's POS
economic JJ
reforms NNS
gathered VBD
pace NN
, ,
and CC
for IN
awhile RB
they PRP
did VBD
. .

After IN
years NNS
of IN
experimenting VBG
, ,
Mr. NNP
Chan NNP
produced VBD
a DT
heavy-duty JJ
bicycle NN
tire NN
that WDT
outlasted VBD
its PRP$
state-produced JJ
rival NN
. .

By IN
1982 CD
, ,
he PRP
was VBD
selling VBG
thousands NNS
of IN
tires NNS
. .

Newspapers NNS
published VBD
articles NNS
about IN
him PRP
, ,
and CC
he PRP
was VBD
hailed VBN
as IN
`` ``
the DT
tire NN
king NN
. .
'' ''

His PRP$
efforts NNS
earned VBD
a DT
gold NN
medal NN
at IN
a DT
national JJ
exhibition NN
-- :
and CC
attracted VBN
renewed VBN
attention NN
from IN
local JJ
authorities NNS
. .

District NN
police NN
in IN
1983 CD
descended VBD
on IN
his PRP$
suburban JJ
home NN
, ,
which WDT
he PRP
and CC
his PRP$
large JJ
family NN
used VBN
as IN
both DT
residence NN
and CC
factory NN
, ,
and CC
demanded VBD
proof NN
the DT
house NN
and CC
equipment NN
were VBD
his PRP$
. .

He PRP
produced VBD
it PRP
. .

`` ``
That DT
was VBD
the DT
first JJ
time NN
they PRP
lost VBD
and CC
I PRP
won VBD
, ,
'' ''
he PRP
says VBZ
. .

He PRP
was VBD
further JJ
questioned VBD
to TO
determine VB
if IN
he PRP
was VBD
`` ``
a DT
real JJ
working NN
man NN
or CC
an DT
exploiter NN
. .
'' ''

Says VBZ
Mr. NNP
Chan NNP
: :
`` ``
When WRB
I PRP
showed VBD
it PRP
was VBD
from IN
my PRP$
own JJ
brain NN
, ,
they PRP
lost VBD
for IN
the DT
second JJ
time NN
. .
'' ''

But CC
a DT
few JJ
days NNS
later RB
the DT
police NN
accused VBD
him PRP
of IN
stealing VBG
electricity NN
, ,
acquiring VBG
rubber NN
without IN
permission NN
and CC
buying VBG
stolen VBN
property NN
. .

Warned VBD
he PRP
was VBD
to TO
be VB
jailed VBN
again RB
, ,
he PRP
fled VBD
to TO
the DT
countryside NN
. .

His PRP$
family NN
was VBD
given VBN
three CD
hours NNS
to TO
leave VB
before IN
the DT
house NN
and CC
contents NNS
were VBD
confiscated VBN
. .

With IN
only RB
the DT
clothes NNS
they PRP
were VBD
wearing VBG
, ,
family NN
members NNS
moved VBD
to TO
a DT
home NN
owned VBN
by IN
one CD
of IN
Mr. NNP
Chan NNP
's POS
sons NNS
. .

After IN
six CD
months NNS
on IN
the DT
run NN
, ,
Mr. NNP
Chan NNP
learned VBD
the DT
order NN
for IN
his PRP$
arrest NN
had VBD
been VBN
canceled VBN
. .

He PRP
rejoined VBD
his PRP$
family NN
in IN
January NNP
1984 CD
and CC
began VBD
the DT
long JJ
struggle NN
for IN
justice NN
, ,
pressing VBG
everyone NN
from IN
Hanoi NNP
municipal JJ
officials NNS
to TO
National NNP
Assembly NNP
deputies NNS
for IN
restoration NN
of IN
his PRP$
rights NNS
. .

He PRP
and CC
his PRP$
family NN
kept VBD
afloat RB
by IN
repairing VBG
bicycles NNS
, ,
selling VBG
fruit NN
and CC
doing VBG
odd JJ
jobs NNS
. .

Mr. NNP
Chan NNP
achieved VBD
a DT
breakthrough NN
in IN
1987 CD
-- :
and CC
became VBD
a DT
minor JJ
celebrity NN
again RB
-- :
when WRB
his PRP$
story NN
was VBD
published VBN
in IN
a DT
weekly JJ
newspaper NN
. .

In IN
1988 CD
, ,
18 CD
months NNS
after IN
the DT
sixth JJ
congress NN
formally RB
endorsed VBD
family-run JJ
private JJ
enterprise NN
, ,
district NN
authorities NNS
allowed VBD
Mr. NNP
Chan NNP
to TO
resume VB
work NN
. .

By IN
late JJ
last JJ
year NN
he PRP
was VBD
invited VBN
back RB
as IN
`` ``
the DT
tire NN
king NN
'' ''
to TO
display VB
his PRP$
products NNS
at IN
a DT
national JJ
exhibition NN
. .

National JJ
leaders NNS
stopped VBN
by IN
his PRP$
stand NN
to TO
commend VB
his PRP$
achievements NNS
. .

Mr. NNP
Chan NNP
now RB
produces VBZ
1,000 CD
bicycle NN
and CC
motorbike NN
tires VBZ
a DT
month NN
and CC
1,000 CD
tins NNS
of IN
tire-patching JJ
glue NN
in IN
the DT
son NN
's POS
small JJ
house NN
. .

Eighteen CD
people NNS
pack VBP
the DT
house NN
's POS
two CD
rooms NNS
-- :
the DT
Chans NNS
, ,
four CD
of IN
their PRP$
10 CD
children NNS
with IN
spouses NNS
, ,
and CC
eight CD
of IN
22 CD
grandchildren NNS
. .

Most JJS
sleep VB
on IN
the DT
floor NN
. .

Come VB
daybreak NN
, ,
eight CD
family NN
members NNS
and CC
two CD
other JJ
workers NNS
unroll VBP
a DT
sheet NN
of IN
raw JJ
rubber NN
that WDT
covers VBZ
the DT
floor NN
of IN
the DT
house NN
and CC
spills NNS
out IN
onto IN
the DT
street NN
. .

The DT
primitive JJ
operations NNS
also RB
burst VBP
out RP
the IN
back JJ
door NN
into IN
a DT
small JJ
courtyard NN
, ,
where WRB
an DT
ancient JJ
press NN
squeezes VBZ
rubber NN
solution NN
into IN
a DT
flat JJ
strip NN
and CC
newly RB
made VBN
tires NNS
are VBP
cooled VBN
in IN
a DT
bathtub NN
filled VBN
with IN
water NN
. .

Mr. NNP
Chan NNP
talks VBZ
optimistically RB
of IN
expanding VBG
, ,
maybe RB
even RB
moving VBG
into IN
the DT
import-export JJ
field NN
. .

First RB
, ,
however RB
, ,
he PRP
has VBZ
unfinished JJ
business NN
. .

When WRB
district NN
authorities NNS
allowed VBN
him PRP
to TO
resume VB
manufacturing NN
, ,
they PRP
released VBD
only RB
one CD
of IN
his PRP$
machines NNS
. .

They PRP
did VBD
n't RB
return VB
the DT
rubber NN
stocks NNS
that WDT
represent VBP
his PRP$
capital NN
. .

Nor CC
did VBD
they PRP
return VBP
his PRP$
house NN
and CC
contents NNS
, ,
which WDT
he PRP
values VBZ
at IN
about RB
$ $
44,000 CD
. .

He PRP
wants VBZ
to TO
recover VB
more JJR
than IN
just RB
his PRP$
property NN
, ,
though RB
. .

`` ``
I PRP
want VBP
my PRP$
dignity NN
back RB
, ,
'' ''
he PRP
says VBZ
. .

The DT
Editor NNP

Nguyen NNP
Ngoc NNP
seemed VBD
an DT
obvious JJ
choice NN
when WRB
the DT
Vietnamese NNP
Writers NNP
Association NNP
was VBD
looking VBG
for IN
a DT
new JJ
editor NN
to TO
reform VB
its PRP$
weekly JJ
newspaper NN
, ,
Van NNP
Nghe NNP
. .

After IN
the DT
sixth JJ
congress NN
, ,
journalists NNS
seized VBD
the DT
opportunity NN
provided VBN
by IN
the DT
liberalization NN
to TO
probe VB
previously RB
taboo JJ
subjects NNS
. .

Mr. NNP
Ngoc NNP
, ,
57 CD
years NNS
old JJ
, ,
had VBD
solid JJ
reformist NN
credentials NNS
: :
He PRP
had VBD
lost VBN
his PRP$
official JJ
position NN
in IN
the DT
association NN
in IN
he PRP
early JJ
1980s CD
because IN
he PRP
questioned VBD
the DT
intrusion NN
of IN
politics NNS
into IN
literature NN
. .

Appointed VBN
editor NN
in IN
chief JJ
in IN
July NNP
1987 CD
, ,
Mr. NNP
Ngoc NNP
rapidly RB
turned VBD
the DT
staid JJ
Van NNP
Nghe NNP
into IN
Vietnam NNP
's POS
hottest JJS
paper NN
. .

Circulation NN
soared VBD
as IN
the DT
weekly NN
went VBD
way NN
beyond IN
standard JJ
literary JJ
themes NNS
to TO
cover VB
Vietnamese JJ
society NN
and CC
its PRP$
ills NNS
. .

Readers NNS
were VBD
electrified VBN
by IN
the DT
paper NN
's POS
audacity NN
and CC
appalled VBN
by IN
the DT
dark JJ
side NN
of IN
life NN
it PRP
uncovered VBD
. .

One CD
article NN
recounted VBD
a DT
decade-long JJ
struggle NN
by IN
a DT
wounded VBN
soldier NN
to TO
prove VB
, ,
officially RB
, ,
he PRP
was VBD
alive JJ
. .

Another DT
described VBN
how WRB
tax-collection JJ
officials NNS
in IN
Thanh NNP
Hoa NNP
province NN
one CD
night NN
stormed VBD
through IN
homes NNS
and CC
confiscated VBN
rice NN
from IN
starving VBG
villagers NNS
. .

The DT
newspaper NN
also RB
ran VBD
a DT
series NN
of IN
controversial JJ
short JJ
stories NNS
by IN
Nguyen NNP
Huy NNP
Thiep NNP
, ,
a DT
former JJ
history NN
teacher NN
, ,
who WP
stirred VBD
debate NN
over IN
his PRP$
interpretation NN
of IN
Vietnamese JJ
culture NN
and CC
took VBD
a DT
thinly RB
veiled VBN
swipe NN
at IN
writers NNS
who WP
had VBD
blocked VBN
his PRP$
entry NN
into IN
their PRP$
official JJ
association NN
. .

Van NNP
Nghe NNP
quickly RB
made VBD
influential JJ
enemies NNS
. .

`` ``
Those DT
who WP
manage VBP
ideology NN
and CC
a DT
large JJ
number NN
of IN
writers NNS
reacted VBD
badly RB
'' ''
to TO
the DT
restyled VBN
paper NN
, ,
says VBZ
Lai NNP
Nguyen NNP
An DT
, ,
a DT
literary JJ
critic NN
. .

After IN
months NNS
of IN
internal JJ
rumblings NNS
, ,
Mr. NNP
Ngoc NNP
was VBD
fired VBN
last JJ
December NNP
. .

His PRP$
dismissal NN
triggered VBD
a DT
furor NN
among IN
intellectuals NNS
that WDT
continues VBZ
today NN
. .

`` ``
Under IN
Mr. NNP
Ngoc NNP
, ,
Van NNP
Nghe NNP
protected VBD
the DT
people NNS
instead RB
of IN
the DT
government NN
, ,
'' ''
says VBZ
Nguyen NNP
Duy NNP
, ,
a DT
poet NN
who WP
is VBZ
the DT
paper NN
's POS
bureau NN
chief NN
for IN
southern JJ
Vietnam NNP
. .

`` ``
The DT
paper NN
reflected VBD
the DT
truth NN
. .

For IN
the DT
leadership NN
, ,
that WDT
was VBD
too RB
painful JJ
to TO
bear VB
. .
'' ''

The DT
` ``
Billionaire NN
' ''

Nguyen NNP
Thi NNP
Thi NNP
is VBZ
Vietnam NNP
's POS
entrepreneur NN
of IN
the DT
1980s CD
. .

Her PRP$
challenge NN
is VBZ
to TO
keep VB
her PRP$
fledgling NN
empire NN
on IN
top JJ
in IN
the DT
1990s CD
. .

Mrs. NNP
Thi NNP
did VBD
n't RB
wait VB
for IN
the DT
reforms NNS
to TO
get VB
her PRP$
start NN
. .

She PRP
charged VBD
ahead RB
of IN
the DT
government NN
and CC
the DT
law NN
to TO
establish VB
Hochiminh NNP
City NNP
Food NNP
Co. NNP
as IN
the DT
biggest JJS
rice NN
dealer NN
in IN
the DT
country NN
. .

Her PRP$
success NN
, ,
which WDT
included VBD
alleviating VBG
an DT
urban JJ
food NN
shortage NN
in IN
the DT
early JJ
1980s CD
, ,
helped VBD
persuade VB
Hanoi NNP
to TO
take VB
the DT
reform NN
path NN
. .

Her PRP$
story NN
is VBZ
becoming VBG
part NN
of IN
local JJ
folklore NN
. .

A DT
lifelong JJ
revolutionary NN
with IN
little JJ
education NN
who WP
fought VBD
both DT
the DT
French JJ
and CC
the DT
U.S.-backed JJ
Saigon NNP
regime NN
, ,
she PRP
switched VBD
effortlessly RB
to TO
commerce NN
after IN
the DT
war NN
. .

Her PRP$
instincts NNS
were VBD
capitalistic JJ
, ,
despite IN
her PRP$
background NN
. .

As IN
she PRP
rode VBD
over IN
regulations NNS
, ,
only RB
her PRP$
friendship NN
with IN
party NN
leaders NNS
, ,
including VBG
Nguyen NNP
Van NNP
Linh NNP
, ,
then RB
Ho NNP
Chi NNP
Minh NNP
City NNP
party NN
secretary NN
, ,
kept VBD
her PRP
out IN
of IN
jail NN
. .

Following VBG
Mr. NNP
Linh NNP
's POS
appointment NN
as IN
secretary-general NN
of IN
the DT
party NN
at IN
the DT
sixth JJ
congress NN
, ,
Mrs. NNP
Thi NNP
has VBZ
become VBN
the DT
darling NN
of IN
`` ``
doi FW
moi FW
'' ''
, ,
the DT
Vietnamese JJ
version NN
of IN
perestroika FW
. .

The DT
authorities NNS
have VBP
steered VBN
foreign JJ
reporters NNS
to TO
her PRP$
office NN
to TO
see VB
an DT
example NN
of IN
`` ``
the DT
new JJ
way NN
of IN
thinking VBG
. .
'' ''

Foreign JJ
publications NNS
have VBP
responded VBN
with IN
articles NNS
declaring VBG
her PRP$
Vietnam NNP
's POS
richest JJS
woman NN
. .

`` ``
Some DT
people NNS
call VBP
me PRP
the DT
communist JJ
billionaire NN
, ,
'' ''
she PRP
has VBZ
told VBN
visitors NNS
. .

Actually RB
, ,
67-year-old NNP
Mrs. NNP
Thi NNP
is VBZ
about IN
as RB
poor JJ
as IN
almost JJ
everyone NN
else RB
in IN
this DT
impoverished JJ
land NN
. .

She PRP
has VBZ
indeed RB
turned VBN
Hochiminh NNP
City NNP
Food NNP
into IN
a DT
budding VBG
conglomerate NN
, ,
but CC
the DT
company NN
itself PRP
remains VBZ
state-owned JJ
. .

She PRP
manages VBZ
it PRP
with IN
the DT
title NN
of IN
general-director NN
. .

The DT
heart NN
of IN
the DT
business NN
is VBZ
the DT
purchase NN
of IN
rice NN
and CC
other JJ
commodities NNS
, ,
such JJ
as IN
corn NN
and CC
coffee NN
, ,
from IN
farmers NNS
in IN
the DT
south RB
, ,
paying VBG
with IN
fertilizer NN
, ,
farm NN
tools NNS
and CC
other JJ
items NNS
. .
Last JJ
year NN
, ,
Hochiminh NNP
City NNP
Food NNP
says VBZ
it PRP
bought VBD
two CD
million CD
metric JJ
tons NNS
of IN
unhusked VBN
rice NN
, ,
more JJR
than IN
10 CD
% NN
of IN
the DT
country NN
's POS
output NN
. .

The DT
company NN
operates VBZ
a DT
fleet NN
of IN
trucks NNS
and CC
boats NNS
to TO
transport VB
the DT
commodities NNS
to TO
its PRP$
warehouses NNS
. .

A DT
subsidiary NN
company NN
processes NNS
commodities NNS
into IN
foods NNS
such JJ
as IN
instant NN
noodles NNS
that WDT
are VBP
sold VBN
with IN
the DT
rice NN
through IN
a DT
vast JJ
retail JJ
network NN
. .

In IN
recent JJ
years NNS
, ,
Mrs. NNP
Thi NNP
has VBZ
started VBN
to TO
diversify VB
the DT
company NN
, ,
taking VBG
a DT
20 CD
% NN
stake NN
in IN
newly RB
established VBN
, ,
partly RB
private JJ
Industrial NNP
and CC
Commercial NNP
Bank NNP
, ,
and CC
setting VBG
up IN
Saigon NNP
Petro NNP
, ,
which WDT
owns VBZ
and CC
operates VBZ
Vietnam NNP
's POS
first JJ
oil NN
refinery NN
. .

Mrs. NNP
Thi NNP
says VBZ
Hochiminh NNP
City NNP
Food NNP
last JJ
year NN
increased VBD
pretax JJ
profit NN
60 CD
% NN
to TO
the DT
equivalent NN
of IN
about RB
$ $
2.7 CD
million CD
on IN
sales NNS
of IN
$ $
150 CD
million CD
. .

She PRP
expects VBZ
both DT
revenue NN
and CC
profit NN
to TO
gain VB
this DT
year NN
. .

She PRP
is VBZ
almost RB
cavalier JJ
about IN
the DT
possibility NN
Vietnam NNP
's POS
reforms NNS
will MD
create VB
rivals NNS
on IN
her PRP$
home NN
turf NN
. .

`` ``
I PRP
do VBP
n't RB
mind VB
the DT
competition NN
inside IN
the DT
country NN
, ,
'' ''
she PRP
says VBZ
. .

`` ``
I PRP
am VBP
only RB
afraid JJ
that IN
with IN
Vietnam NNP
's POS
poor-quality JJ
products NNS
we PRP
ca MD
n't RB
compete VB
with IN
neighboring VBG
countries NNS
. .

The DT
earthquake NN
that WDT
hit VBD
the DT
San NNP
Francisco NNP
Bay NNP
area NN
is VBZ
n't RB
likely JJ
to TO
result VB
in IN
wholesale JJ
downgrading NN
of IN
bond NN
ratings NNS
, ,
officials NNS
at IN
the DT
two CD
major JJ
rating NN
agencies NNS
said VBD
. .

Standard NNP
& CC
Poor NNP
's POS
Corp. NNP
is VBZ
reviewing VBG
debt NN
issued VBN
by IN
12 CD
California NNP
counties NNS
, ,
and CC
`` ``
there EX
are VBP
potential JJ
isolated VBN
problems NNS
, ,
'' ''
said VBD
Hyman NNP
Grossman NNP
, ,
a DT
managing VBG
director NN
. .

The DT
agency NN
is VBZ
preparing VBG
a DT
report NN
, ,
to TO
be VB
issued VBN
today NN
, ,
on IN
the DT
earthquake NN
's POS
impact NN
on IN
the DT
property- NN
and CC
casualty-insurance NN
industry NN
. .

The DT
only JJ
securities NNS
so RB
far RB
to TO
be VB
singled VBN
out IN
are VBP
those DT
issued VBN
by IN
Bay NNP
View NNP
Federal NNP
Savings NNP
& CC
Loan NNP
. .

Moody NNP
's POS
Investors NNP
Service NNP
Inc. NNP
said VBD
it PRP
is VBZ
reviewing VBG
, ,
with IN
an DT
eye NN
toward IN
a DT
possible JJ
downgrade NN
, ,
the DT
ratings NNS
on IN
Bay NNP
View NNP
Federal NNP
bonds NNS
, ,
long-term JJ
deposits NNS
and CC
the DT
preferred-stock JJ
rating NN
of IN
its PRP$
parent NN
company NN
, ,
Bay NNP
View NNP
Capital NNP
Corp NNP
. .

As IN
for IN
property NN
and CC
casualty NN
insurers NNS
, ,
Moody NNP
's POS
said VBD
`` ``
preliminary JJ
estimates NNS
suggest VBP
that IN
losses NNS
should MD
not RB
have VB
a DT
significant JJ
impact NN
on IN
most RBS
insurers NNS
' POS
financial JJ
condition NN
, ,
'' ''
but CC
it PRP
`` ``
raises VBZ
concerns NNS
about IN
potentially RB
substantial JJ
risks NNS
'' ''
longer-term JJ
. .

`` ``
Losses NNS
from IN
the DT
earthquake NN
are VBP
expected VBN
to TO
be VB
of IN
similar JJ
magnitude NN
to TO
those DT
of IN
Hurricane NNP
Hugo NNP
, ,
'' ''
according VBG
to TO
Moody NNP
's POS
. .

Your PRP$
Oct. NNP
5 NN
editorial NN
`` ``
A DT
Democratic NNP
Tax NNP
Cut VB
'' ''
contained VBD
an DT
error NN
. .

In IN
the DT
third JJ
paragraph NN
it PRP
referred VBD
to TO
the DT
senators NNS
seeking VBG
loophole NN
suggestions NNS
from IN
lobbyists NNS
for IN
various JJ
sectors NNS
of IN
the DT
economy NN
. .

Among IN
them PRP
, ,
`` ``
banana NN
farmers NNS
. .
'' ''

The DT
only RB
significant JJ
commercial JJ
banana NN
farmers NNS
in IN
the DT
U.S. NNP
are VBP
in IN
Hawaii NNP
. .

The DT
Hawaii NNP
Banana NNP
Industry NNP
Association NNP
, ,
to TO
which WDT
nearly RB
all DT
of IN
them PRP
belong VBP
, ,
has VBZ
no DT
lobbyist NN
. .

Thomas NNP
V. NNP
Reese NNP
Sr NNP
. .
Maui NNP
Banana NNP
Co NNP
. .

Western NNP
Digital NNP
Corp. NNP
reported VBD
a DT
net JJ
loss NN
of IN
$ $
2.7 CD
million CD
, ,
or CC
nine CD
cents NNS
a DT
share NN
, ,
for IN
its PRP$
first JJ
quarter NN
ended VBN
Sept. NNP
30 CD
, ,
citing VBG
factors NNS
as RB
varied VBN
as IN
hurricane NN
damage NN
, ,
an DT
advance NN
in IN
graphics NNS
technology NN
and CC
the DT
strengthening VBG
dollar NN
. .

In IN
the DT
year-ago JJ
period NN
, ,
the DT
company NN
earned VBD
$ $
12.9 CD
million CD
, ,
or CC
45 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
247 CD
million CD
. .

Sales NNS
for IN
the DT
just-ended JJ
period NN
fell VBD
to TO
about RB
$ $
225 CD
million CD
, ,
the DT
maker NN
of IN
computer NN
parts NNS
said VBD
. .

Nonetheless RB
, ,
Chairman NNP
Roger NNP
W. NNP
Johnson NNP
said VBD
he PRP
expects VBZ
the DT
company NN
to TO
be VB
profitable JJ
in IN
the DT
current JJ
quarter NN
. .

`` ``
We PRP
are VBP
positioned VBN
to TO
come VB
through IN
, ,
'' ''
he PRP
said VBD
, ,
noting VBG
that IN
the DT
company NN
's POS
backlog NN
was VBD
up IN
from IN
the DT
previous JJ
quarter NN
. .

In IN
its PRP$
second JJ
quarter NN
last JJ
year NN
, ,
Western NNP
Digital NNP
earned VBD
$ $
12.7 CD
million CD
, ,
or CC
44 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
258.4 CD
million CD
. .

Mr. NNP
Johnson NNP
said VBD
Western NNP
Digital NNP
's POS
plant NN
in IN
Puerto NNP
Rico NNP
was VBD
affected VBN
by IN
Hurricane NNP
Hugo NNP
, ,
losing VBG
three CD
days NNS
' POS
production NN
because IN
of IN
the DT
storm NN
, ,
which WDT
wrecked VBD
much NN
of IN
the DT
Caribbean NNP
island NN
's POS
infrastructure NN
. .

Although IN
the DT
plant NN
itself PRP
was VBD
n't RB
damaged VBN
, ,
Mr. NNP
Johnson NNP
said VBD
millions NNS
of IN
dollars NNS
in IN
first-quarter JJ
revenue NN
were VBD
lost VBN
. .

The DT
revenue NN
will MD
be VB
regained VBN
in IN
the DT
current JJ
period NN
, ,
he PRP
added VBD
. .

There EX
are VBP
no DT
plans NNS
to TO
initiate VB
a DT
common JJ
stock NN
dividend NN
, ,
Mr. NNP
Johnson NNP
said VBD
, ,
explaining VBG
that IN
the DT
board NN
continues VBZ
to TO
believe VB
shareholders NNS
are VBP
best RBS
served VBN
by IN
reinvesting VBG
excess JJ
cash NN
. .

Mr. NNP
Johnson NNP
said VBD
the DT
first-quarter JJ
loss NN
also RB
heavily RB
reflected VBD
a DT
rapid JJ
change NN
in IN
graphics NNS
technology NN
that WDT
left VBD
reseller JJR
channels NNS
with IN
too RB
many NN
of IN
the DT
old JJ
computer NN
graphics NNS
boards NNS
and CC
too RB
few JJ
new JJ
monitors NNS
compatible JJ
with IN
the DT
new JJ
graphics NNS
boards NNS
. .

Western NNP
Digital NNP
does VBZ
n't RB
make VB
the DT
monitors NNS
. .

An DT
accelerating VBG
move NN
by IN
personal JJ
computer NN
manufacturers NNS
' POS
to TO
include VB
advanced VBD
graphics NNS
capabilities NNS
as IN
standard JJ
equipment NN
further JJ
dampened VBD
reseller JJR
purchases NNS
of IN
Western NNP
Digital NNP
's POS
equipment NN
. .

`` ``
The DT
other JJ
areas NNS
of IN
the DT
business NN
-- :
storage NN
and CC
microcomputers NNS
-- :
were VBD
very RB
good JJ
, ,
'' ''
Mr. NNP
Johnson NNP
said VBD
. .

He PRP
said VBD
Western NNP
Digital NNP
has VBZ
reacted VBN
swiftly RB
to TO
the DT
movement NN
to TO
video NN
graphics NNS
array NN
, ,
VGA NNP
, ,
graphics NNS
technology NN
from IN
the DT
old JJ
enhanced VBN
graphics NNS
adapter NN
, ,
EGA NNP
, ,
which WDT
has VBZ
a DT
lower JJR
resolution NN
standard JJ
, ,
technology NN
and CC
now RB
is VBZ
one CD
of IN
the DT
leading VBG
producers NNS
of IN
these DT
newer JJR
units NNS
. .

Other JJ
makers NNS
of IN
video NN
controller NN
equipment NN
also RB
were VBD
caught VBN
in IN
the DT
EGA-VGA JJ
shift NN
, ,
he PRP
said VBD
, ,
`` ``
but CC
we PRP
were VBD
able JJ
to TO
respond VB
much RB
more RBR
quickly RB
. .
'' ''

Still RB
, ,
Mr. NNP
Johnson NNP
said VBD
, ,
`` ``
our PRP$
stock NN
is VBZ
grossly RB
undervalued VBN
. .
'' ''

He PRP
said VBD
the DT
company NN
has VBZ
cut VBN
operating VBG
expenses NNS
by IN
about IN
10 CD
% NN
over IN
the DT
last JJ
few JJ
quarters NNS
, ,
while IN
maintaining VBG
research NN
and CC
development NN
at IN
about IN
8 CD
% NN
to TO
9 CD
% NN
of IN
sales NNS
. .

As IN
part NN
of IN
its PRP$
reorganization NN
this DT
week NN
, ,
Western NNP
Digital NNP
has VBZ
divided VBN
its PRP$
business NN
into IN
two CD
segments NNS
-- :
storage NN
products NNS
, ,
including VBG
controllers NNS
and CC
disk NN
drives NNS
; :
and CC
microcomputer NN
products NNS
, ,
which WDT
include VBP
graphics NNS
, ,
communications NNS
and CC
peripheral JJ
control NN
chips NNS
. .

Graphics NNP
, ,
communications NNS
and CC
peripheral JJ
control NN
chips NNS
were VBD
combined VBN
because IN
, ,
increasingly RB
, ,
multiple JJ
functions NNS
are VBP
being VBG
governed VBN
by IN
a DT
single JJ
chip NN
. .

Storage NNP
, ,
which WDT
includes VBZ
computer NN
controllers NNS
and CC
3.5-inch CD
disk NN
drives NNS
, ,
represents VBZ
nearly RB
two-thirds NNS
of IN
the DT
company NN
's POS
business NN
. .

Disk NN
drives NNS
, ,
which WDT
allow VBP
a DT
computer NN
to TO
access VB
its PRP$
memory NN
, ,
generated VBN
38 CD
% NN
more JJR
revenue NN
in IN
the DT
most RBS
recent JJ
period NN
compared VBN
with IN
the DT
fiscal JJ
first JJ
quarter NN
a DT
year NN
earlier RBR
. .

Computer NN
parts NNS
are VBP
getting VBG
ever RB
smaller JJR
, ,
Mr. NNP
Johnson NNP
said VBD
, ,
a DT
shrinking VBG
that WDT
has VBZ
propelled VBN
laptops NNS
into IN
position NN
as IN
the DT
fastest-growing JJ
segment NN
of IN
the DT
computer NN
business NN
. .

As IN
smaller JJR
and CC
more RBR
powerful JJ
computers NNS
continue VBP
to TO
be VB
the DT
focus NN
of IN
the DT
industry NN
, ,
he PRP
said VBD
, ,
Western NNP
Digital NNP
is VBZ
strengthening VBG
development NN
of IN
laptop NN
parts NNS
. .

Next JJ
year NN
Western NNP
Digital NNP
plans VBZ
to TO
consolidate VB
its PRP$
operations NNS
from IN
11 CD
buildings NNS
in IN
Irvine NNP
into IN
two CD
buildings NNS
in IN
the DT
same JJ
city NN
a DT
new JJ
headquarters NN
and CC
, ,
a DT
block NN
away RB
, ,
a DT
modern JJ
$ $
100 CD
million CD
silicon NN
wafer NN
fabrication NN
plant NN
. .

The DT
plan NN
will MD
help VB
the DT
company NN
in IN
its PRP$
existing VBG
joint JJ
manufacturing NN
agreement NN
with IN
AT&T NNP
. .

About IN
half NN
of IN
Western NNP
Digital NNP
's POS
business NN
is VBZ
overseas JJ
, ,
and CC
Mr. NNP
Johnson NNP
expects VBZ
that DT
proportion NN
to TO
continue VB
. .

Plans NNS
to TO
dissolve VB
many NN
of IN
the DT
trade NN
barriers NNS
within IN
Europe NNP
in IN
1992 CD
creates VBZ
significant JJ
opportunities NNS
for IN
the DT
company NN
, ,
he PRP
said VBD
, ,
particularly RB
since IN
Western NNP
Digital NNP
already RB
manufactures VBZ
there RB
. .

Capitalizing VBG
on IN
that DT
presence NN
, ,
Western NNP
Digital NNP
is VBZ
launching VBG
a DT
major JJ
effort NN
to TO
develop VB
the DT
embryonic JJ
reseller JJR
market NN
in IN
Europe NNP
. .

Directors NNS
of IN
state-owned JJ
Banca NNP
Nazionale NNP
del NNP
Lavoro NNP
approved VBD
a DT
two-step JJ
capital-boosting JJ
transaction NN
and CC
a DT
change NN
in IN
the DT
bank NN
's POS
rules NNS
that WDT
will MD
help VB
it PRP
operate VB
more JJR
like IN
a DT
private-sector JJ
institution NN
. .
Until IN
now RB
, ,
BNL NNP
's POS
top JJ
managers NNS
and CC
its PRP$
directors NNS
have VBP
been VBN
appointed VBN
by IN
a DT
Treasury NNP
decree NN
. .

But CC
under IN
the DT
bank NN
's POS
proposed VBN
statutes NNS
, ,
an DT
assembly NN
of IN
shareholders NNS
must MD
approve VB
board NN
members NNS
. .

The DT
bank NN
's POS
chairman NN
and CC
director NN
general JJ
, ,
who WP
also RB
sit VB
on IN
the DT
board NN
, ,
still RB
would MD
be VB
appointed VBN
by IN
the DT
Treasury NNP
. .

BNL NNP
, ,
which WDT
is VBZ
controlled VBN
by IN
the DT
Italian NNP
Treasury NNP
, ,
was VBD
rocked VBN
by IN
the DT
disclosure NN
last JJ
month NN
that IN
its PRP$
Atlanta NNP
branch NN
extended VBN
more JJR
than IN
$ $
3 CD
billion CD
in IN
unauthorized JJ
credits NNS
to TO
Iraq NNP
. .

The DT
ensuing VBG
scandal NN
, ,
in IN
which WDT
the DT
bank NN
's POS
management NN
resigned VBD
, ,
has VBZ
helped VBN
renew VB
calls VBZ
for IN
privatization NN
, ,
or CC
at IN
least JJS
an DT
overhaul NN
, ,
of IN
Italy NNP
's POS
banking NN
system NN
, ,
which WDT
is VBZ
about IN
80 CD
% NN
state-controlled JJ
. .

In IN
a DT
related VBN
move NN
, ,
the DT
bank NN
also RB
proposed VBD
that DT
board NN
representation NN
be VB
linked VBN
more RBR
closely RB
to TO
the DT
bank NN
's POS
new JJ
shareholding NN
structure NN
. .

BNL NNP
called VBD
a DT
shareholders NNS
' POS
assembly NN
meeting NN
in IN
December NNP
to TO
vote VB
on IN
the DT
proposals NNS
. .

BNL NNP
has VBZ
about IN
75,000 CD
nonvoting JJ
shares NNS
that WDT
are VBP
listed VBN
on IN
the DT
Milan NNP
Stock NNP
Exchange NNP
. .

The DT
shares NNS
were VBD
suspended VBN
from IN
trading NN
following VBG
disclosure NN
of IN
the DT
Atlanta NNP
scandal NN
; :
Consob NNP
, ,
the DT
stock NN
exchange NN
regulatory JJ
body NN
, ,
reportedly RB
will MD
decide VB
soon RB
whether IN
to TO
end VB
the DT
trading NN
suspension NN
. .

Switzerland NNP
's POS
wholesale JJ
price NN
index NN
increased VBN
0.3 CD
% NN
in IN
September NNP
from IN
August NNP
, ,
and CC
was VBD
up IN
3.9 CD
% NN
from IN
a DT
year NN
ago RB
, ,
marking VBG
the DT
first JJ
time NN
this DT
year NN
that IN
the DT
index NN
has VBZ
fallen VBN
below IN
4 CD
% NN
on IN
a DT
year-to-year JJ
basis NN
, ,
the DT
government NN
reported VBD
. .

The DT
government NN
attributed VBD
the DT
0.3 CD
% NN
month-to-month JJ
rise NN
in IN
the DT
index NN
largely RB
to TO
higher JJR
energy NN
prices NNS
. .

In IN
August NNP
, ,
the DT
index NN
was VBD
up IN
0.2 CD
% NN
from IN
the DT
previous JJ
month NN
, ,
and CC
was VBD
up IN
4.5 CD
% NN
on IN
a DT
year-to-year JJ
basis NN
. .

The DT
wholesale JJ
price NN
index NN
, ,
based VBN
on IN
1963 CD
as IN
100 CD
, ,
was VBD
180.9 CD
in IN
September NNP
. .

American NNP
Express NNP
Co. NNP
posted VBD
a DT
21 CD
% NN
increase NN
in IN
third JJ
quarter NN
net JJ
income NN
despite IN
a DT
sharp JJ
rise NN
in IN
reserves NNS
for IN
Third NNP
World NNP
loans NNS
at IN
its PRP$
banking NN
unit NN
. .

Aided VBN
by IN
a DT
sharp JJ
gain NN
in IN
its PRP$
travel NN
business NN
, ,
American NNP
Express NNP
said VBD
net NN
rose VBD
to TO
$ $
331.8 CD
million CD
, ,
or CC
77 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
273.9 CD
million CD
, ,
or CC
64 CD
cents NNS
a DT
share NN
. .

The DT
year-earlier JJ
figures NNS
included VBD
$ $
9.9 CD
million CD
, ,
or CC
three CD
cents NNS
a DT
share NN
, ,
in IN
income NN
from IN
discontinued VBN
operations NNS
. .

Income NNP
from IN
continuing VBG
operations NNS
was VBD
up IN
26 CD
% NN
. .

Revenue NN
rose VBD
24 CD
% NN
to TO
$ $
6.5 CD
billion CD
from IN
$ $
5.23 CD
billion CD
. .

The DT
travel NN
, ,
investment NN
services NNS
, ,
insurance NN
and CC
banking NN
concern NN
added VBD
$ $
110 CD
million CD
to TO
reserves NNS
for IN
credit NN
losses NNS
at IN
its PRP$
American NNP
Express NNP
Bank NNP
unit NN
, ,
boosting VBG
the DT
reserve NN
to TO
$ $
507 CD
million CD
as IN
of IN
Sept. NNP
30 CD
. .

The DT
bank NN
's POS
Third NNP
World NNP
debt NN
portfolio NN
totals VBZ
$ $
560 CD
million CD
, ,
down RB
from IN
$ $
2.2 CD
billion CD
at IN
the DT
end NN
of IN
1986 CD
. .

The DT
bank NN
charged VBN
off IN
$ $
53 CD
million CD
in IN
loans NNS
during IN
the DT
quarter NN
. .

At IN
the DT
American NNP
Express NNP
Travel NNP
Related NNP
Services NNP
Co. NNP
unit NN
, ,
net NN
rose VBD
17 CD
% NN
to TO
a DT
record NN
$ $
240.8 CD
million CD
on IN
a DT
19 CD
% NN
revenue NN
increase NN
. .

The DT
figures NNS
exclude VBP
businesses NNS
now RB
organized VBN
as IN
American NNP
Express NNP
Information NNP
Services NNP
Co NNP
. .

American NNP
Express NNP
card NN
charge NN
volume NN
rose VBD
12 CD
% NN
. .

Travel NN
sales NNS
rose VBD
11 CD
% NN
, ,
led VBN
by IN
gains NNS
in IN
the DT
U.S. NNP
. .

At IN
IDS NNP
Financial NNP
Services NNPS
, ,
the DT
financial JJ
planning NN
and CC
mutual JJ
fund NN
unit NN
, ,
net NN
rose VBD
19 CD
% NN
to TO
a DT
record NN
$ $
47.6 CD
million CD
on IN
a DT
33 CD
% NN
revenue NN
gain NN
. .

Assets NNS
owned VBN
or CC
managed VBD
rose VBD
20 CD
% NN
to TO
$ $
45 CD
billion CD
, ,
and CC
mutual JJ
fund NN
sales NNS
rose VBD
45 CD
% NN
in IN
the DT
quarter NN
to TO
$ $
923 CD
million CD
. .

American NNP
Express NNP
Bank NNP
earnings NNS
fell VBD
50 CD
% NN
to TO
$ $
21.3 CD
million CD
from IN
$ $
42.5 CD
million CD
despite IN
a DT
29 CD
% NN
revenue NN
gain NN
. .

The DT
results NNS
include VBP
$ $
106 CD
million CD
of IN
tax NN
benefits NNS
associated VBN
with IN
previous JJ
years NNS
' POS
Third NNP
World NNP
loan NN
activity NN
, ,
compared VBN
with IN
$ $
15 CD
million CD
a DT
year NN
earlier RBR
. .

Profit NN
rose VBD
38 CD
% NN
at IN
American NNP
Express NNP
Information NNP
Services NNPS
to TO
$ $
21.6 CD
million CD
. .

Shearson NNP
Lehman NNP
Hutton NNP
Holdings NNP
Inc. NNP
, ,
as IN
previously RB
reported VBD
, ,
had VBD
net NN
of IN
$ $
65.9 CD
million CD
, ,
reversing VBG
a DT
$ $
3.5 CD
million CD
loss NN
a DT
year NN
earlier RBR
; :
its PRP$
latest JJS
results NNS
include VBP
a DT
$ $
37 CD
million CD
gain NN
from IN
the DT
sale NN
of IN
an DT
institutional JJ
money NN
management NN
business NN
. .

American NNP
Express NNP
's POS
share NN
of IN
Shearson NNP
's POS
earnings NNS
was VBD
$ $
41 CD
million CD
, ,
after IN
preferred JJ
stock NN
dividends NNS
; :
it PRP
owns VBZ
about IN
68 CD
% NN
of IN
Shearson NNP
's POS
common JJ
. .

For IN
the DT
nine CD
months NNS
, ,
American NNP
Express NNP
said VBD
net NN
rose VBD
11 CD
% NN
to TO
$ $
899.8 CD
million CD
, ,
or CC
$ $
2.09 CD
a DT
share NN
, ,
from IN
$ $
807.5 CD
million CD
, ,
or CC
$ $
1.89 CD
a DT
share NN
. .

Revenue NN
rose VBD
24 CD
% NN
to TO
$ $
18.73 CD
billion CD
from IN
$ $
15.09 CD
billion CD
. .

Textron NNP
Inc. NNP
, ,
hampered VBN
by IN
a DT
slowdown NN
in IN
its PRP$
defense NN
sales NNS
, ,
reported VBD
an DT
8 CD
% NN
decline NN
in IN
per-share JJ
earnings NNS
on IN
nearly RB
flat JJ
revenue NN
for IN
its PRP$
third JJ
quarter NN
. .

The DT
aerospace NN
and CC
financial JJ
services NNS
concern VBP
said VBD
net JJ
income NN
fell VBD
5 NN
% NN
to TO
$ $
59.5 CD
million CD
from IN
$ $
62.8 CD
million CD
. .

Revenue NN
of IN
$ $
1.73 CD
billion CD
was VBD
almost RB
unchanged JJ
from IN
last JJ
year NN
's POS
$ $
1.72 CD
billion CD
. .

Per-share JJ
net NN
of IN
66 CD
cents NNS
, ,
down RB
from IN
72 CD
cents NNS
, ,
fell VBN
by IN
more JJR
than IN
overall JJ
net NN
because IN
of IN
more JJR
shares NNS
outstanding JJ
. .

The DT
company NN
said VBD
that WDT
improved VBD
results NNS
in IN
its PRP$
financial-services NNS
sector NN
were VBD
negated VBN
by IN
increased JJ
costs NNS
in IN
its PRP$
government NN
contract NN
business NN
, ,
lower JJR
operating VBG
earnings NNS
in IN
its PRP$
commercial-products JJ
sector NN
and CC
soft JJ
automotive JJ
markets NNS
. .

Net NN
was VBD
aided VBN
by IN
a DT
lower JJR
income NN
tax NN
rate NN
. .

Profit NN
before IN
taxes NNS
fell VBD
17 CD
% NN
to TO
$ $
84.4 CD
million CD
from IN
$ $
101.4 CD
million CD
. .

For IN
the DT
nine CD
months NNS
, ,
Textron NNP
reported VBD
net NN
of IN
$ $
182.1 CD
million CD
, ,
or CC
$ $
2.06 CD
a DT
share NN
, ,
on IN
revenue NN
of IN
$ $
5.41 CD
billion CD
. .

A DT
year NN
ago RB
, ,
net NN
was VBD
$ $
170.4 CD
million CD
, ,
or CC
$ $
1.93 CD
a DT
share NN
, ,
on IN
revenue NN
of IN
$ $
5.3 CD
billion CD
. .

The DT
nine-month JJ
results NNS
included VBD
a DT
$ $
9.5 CD
million CD
special JJ
charge NN
in IN
1989 CD
for IN
an DT
arbitration NN
settlement NN
related VBN
to TO
past JJ
export NN
sales NNS
, ,
and CC
$ $
29.7 CD
million CD
in IN
extraordinary JJ
charges NNS
in IN
1988 CD
related VBN
to TO
a DT
former JJ
line NN
of IN
business NN
and CC
early JJ
redemption NN
of IN
debt NN
. .

Textron NNP
said VBD
that IN
nine-months NNS
' POS
results NNS
do VBP
n't RB
include VB
earnings NNS
of IN
Avdel NNP
PLC NNP
, ,
a DT
British JJ
maker NN
of IN
industrial JJ
fasteners NNS
, ,
but CC
do VBP
include VB
interest NN
costs NNS
of IN
$ $
16.4 CD
million CD
on IN
borrowings NNS
related VBN
to TO
the DT
proposed VBN
purchase NN
of IN
Avdel NNP
. .

A DT
federal JJ
judge NN
has VBZ
issued VBN
a DT
preliminary JJ
injunction NN
against IN
the DT
purchase NN
because IN
of IN
Federal NNP
Trade NNP
Commission NNP
concerns NNS
that IN
the DT
transaction NN
would MD
reduce VB
competition NN
in IN
the DT
production NN
of IN
two CD
kinds NNS
of IN
rivets VBZ
. .

For IN
the DT
quarter NN
, ,
Textron NNP
said VBD
aerospace NN
revenue NN
, ,
including VBG
Bell NNP
helicopter NN
and CC
jet-engine NN
manufacture NN
, ,
declined VBD
9.8 CD
% NN
to TO
$ $
755.9 CD
million CD
from IN
$ $
838.3 CD
million CD
, ,
an DT
indication NN
of IN
slowing VBG
government NN
defense NN
work NN
. .

As IN
the DT
Hunt NNP
brothers NNS
' POS
personal JJ
bankruptcy NN
cases NNS
sputter VBP
into IN
their PRP$
second JJ
year NN
, ,
Minpeco NNP
S.A. NNP
has VBZ
proposed VBN
a DT
deal NN
to TO
settle VB
its PRP$
huge JJ
claim NN
against IN
the DT
troubled JJ
Texas NNP
oil NN
men NNS
. .

But CC
the DT
plan NN
only RB
threatens VBZ
to TO
heighten VB
the DT
tension NN
and CC
confusion NN
already RB
surrounding VBG
the DT
cases NNS
that WDT
were VBD
filed VBN
in IN
September NNP
1988 CD
. .

The DT
Peruvian JJ
mineral NN
concern NN
's POS
$ $
251 CD
million CD
claim NN
stems VBZ
from IN
1988 CD
jury NN
award NN
in IN
a DT
case NN
stemming VBG
from IN
the DT
brothers NNS
' POS
alleged VBN
attempts NNS
to TO
corner VB
the DT
1979-80 CD
silver NN
market NN
. .

Minpeco NNP
now RB
says VBZ
it PRP
is VBZ
willing JJ
to TO
settle VB
for IN
up IN
to TO
$ $
65.7 CD
million CD
from IN
each DT
brother NN
, ,
although IN
the DT
actual JJ
amount NN
would MD
probably RB
be VB
much RB
less JJR
. .

Although IN
the DT
proposal NN
must MD
be VB
approved VBN
by IN
federal JJ
Judge NNP
Harold NNP
C. NNP
Abramson NNP
, ,
W. NNP
Herbert NNP
Hunt NNP
has VBZ
agreed VBN
to TO
the DT
Peruvian JJ
mineral NN
concern NN
's POS
proposal NN
. .

Nelson NNP
Bunker NNP
Hunt NNP
is VBZ
considering VBG
it PRP
, ,
although IN
his PRP$
attorney NN
says VBZ
he PRP
wo MD
n't RB
do VB
it PRP
if IN
the DT
proposal NN
jeopardizes VBZ
a DT
tentative JJ
settlement NN
he PRP
has VBZ
reached VBN
with IN
the DT
Internal NNP
Revenue NNP
Service NNP
, ,
which WDT
claims VBZ
the DT
brothers NNS
owe VBP
$ $
1 CD
billion CD
in IN
back RB
taxes VBZ
and CC
is VBZ
by IN
far RB
the DT
biggest JJS
creditor NN
in IN
both DT
cases NNS
. .

The DT
tentative JJ
agreement NN
between IN
the DT
IRS NNP
and CC
Nelson NNP
Bunker NNP
Hunt NNP
is VBZ
awaiting VBG
U.S. NNP
Justice NNP
Department NNP
approval NN
. .

Under IN
it PRP
, ,
the DT
former JJ
billionaire NN
's POS
assets NNS
would MD
be VB
liquidated VBN
with IN
the DT
IRS NNP
getting VBG
80 CD
% NN
of IN
the DT
proceeds NNS
and CC
the DT
rest NN
being VBG
divided VBN
among IN
other JJ
creditors NNS
, ,
including VBG
Minpeco NNP
and CC
Manufacturers NNP
Hanover NNP
Trust NNP
Co. NNP
, ,
which WDT
is VBZ
seeking VBG
repayment NN
of IN
a DT
$ $
36 CD
million CD
loan NN
. .

A DT
similiar JJ
proposal NN
has VBZ
been VBN
made VBN
in IN
the DT
W. NNP
Herbert NNP
Hunt NNP
case NN
although IN
he PRP
and CC
the DT
IRS NNP
are VBP
at IN
odds NNS
over IN
the DT
size NN
of IN
the DT
non-dischargable JJ
debt NN
he PRP
would MD
have VB
to TO
pay VB
to TO
the DT
government NN
from IN
future NN
earnings NNS
. .

In IN
both DT
cases NNS
, ,
Minpeco NNP
and CC
Manufacturers NNP
Hanover NNP
have VBP
been VBN
fighting VBG
ferociously RB
over IN
their PRP$
shares NNS
of IN
the DT
pie NN
. .

With IN
support NN
from IN
the DT
IRS NNP
, ,
Manufacturers NNP
Hanover NNP
has VBZ
filed VBN
suit NN
asking VBG
Judge NNP
Abramson NNP
to TO
subordinate VB
Minpeco NNP
's POS
claim NN
to TO
those DT
of IN
Manufacturer NNP
Hanover NNP
and CC
the DT
IRS NNP
. .

Minpeco NNP
has VBZ
threatened VBN
a DT
`` ``
volcano NN
'' ''
of IN
litigation NN
if IN
the DT
Manufacturers NNP
Hanover NNP
Corp. NNP
unit NN
attempts NNS
to TO
force VB
such JJ
a DT
plan NN
through IN
the DT
court NN
. .

Minpeco NNP
said VBD
it PRP
would MD
n't RB
pursue VB
such JJ
litigation NN
if IN
its PRP$
settlement NN
plan NN
in IN
the DT
W. NNP
Herbert NNP
Hunt NNP
case NN
is VBZ
approved VBN
by IN
Judge NNP
Abramson NNP
, ,
who WP
will MD
consider VB
the DT
proposal NN
at IN
a DT
hearing NN
next JJ
week NN
. .

Minpeco NNP
attorney NN
Thomas NNP
Gorman NNP
decribed VBD
the DT
plan NN
as IN
one CD
step NN
toward IN
an DT
overall JJ
settlement NN
of IN
the DT
W. NNP
Herbert NNP
Hunt NNP
case NN
but CC
Hugh NNP
Ray NNP
, ,
attorney NN
for IN
Manufacturers NNP
Hanover NNP
, ,
called VBD
it PRP
`` ``
silly JJ
'' ''
and CC
said VBD
he PRP
would MD
fight VB
it PRP
in IN
court NN
. .

`` ``
The DT
thing NN
is VBZ
so RB
fluid NN
right RB
now RB
that IN
there EX
's VBZ
really RB
no DT
way NN
to TO
say VB
what WP
will MD
happen VB
, ,
'' ''
says VBZ
Justice NNP
Department NNP
attorney NN
Grover NNP
Hartt NNP
III NNP
, ,
who WP
represents VBZ
the DT
IRS NNP
in IN
the DT
case NN
. .

`` ``
Developments NNPS
like IN
this DT
are VBP
hard JJ
to TO
predict VB
. .

Banc NNP
One CD
Corp. NNP
said VBD
it PRP
agreed VBD
in IN
principle NN
to TO
buy VB
five CD
branch NN
offices NNS
from IN
Trustcorp NNP
Inc. NNP
, ,
Toledo NNP
, ,
Ohio NNP
, ,
following VBG
the DT
planned VBN
merger NN
of IN
Trustcorp NNP
into IN
Society NNP
Corp. NNP
, ,
Cleveland NNP
. .

The DT
five CD
offices NNS
in IN
Erie NNP
and CC
Ottawa NNP
counties NNS
in IN
northern JJ
Ohio NNP
have VBP
total JJ
assets NNS
of IN
about RB
$ $
88 CD
million CD
, ,
Banc NNP
One CD
said VBD
. .

The DT
purchase NN
price NN
will MD
be VB
established VBN
after IN
Banc NNP
One CD
has VBZ
an DT
opportunity NN
to TO
study VB
the DT
quality NN
of IN
the DT
assets NNS
, ,
Banc NNP
One CD
said VBD
. .

Society NNP
Corp. NNP
already RB
has VBZ
branches NNS
in IN
the DT
area NN
, ,
and CC
selling VBG
the DT
Trustcorp NNP
offices NNS
could MD
avoid VB
a DT
problem NN
with IN
regulators NNS
over IN
excessive JJ
concentration NN
of IN
banking NN
in IN
the DT
two CD
counties NNS
after IN
the DT
merger NN
of IN
Trustcorp NNP
into IN
Society NNP
, ,
according VBG
to TO
industry NN
sources NNS
. .

The DT
merger NN
is VBZ
scheduled VBN
to TO
take VB
place NN
in IN
the DT
1990 CD
first JJ
quarter NN
. .

Stock-market NN
fears NNS
and CC
relatively RB
more RBR
attractive JJ
interest NN
rates NNS
pushed VBD
money-market JJ
mutual JJ
fund NN
assets NNS
up IN
$ $
6.07 CD
billion CD
in IN
the DT
latest JJS
week NN
, ,
the DT
sharpest JJS
increase NN
in IN
almost RB
two CD
years NNS
. .

The DT
473 CD
funds NNS
tracked VBN
by IN
the DT
Investment NNP
Company NNP
Institute NNP
, ,
a DT
Washington-based JJ
trade NN
group NN
, ,
rose VBD
to TO
$ $
356.1 CD
billion CD
, ,
a DT
record NN
. .

The DT
$ $
6.07 CD
billion CD
increase NN
was VBD
the DT
strongest JJS
weekly JJ
inflow NN
since IN
January NNP
1988 CD
. .

The DT
increase NN
was VBD
spread NN
fairly RB
evenly RB
among IN
all DT
three CD
types NNS
of IN
funds NNS
. .

Individual JJ
investors NNS
, ,
represented VBN
in IN
the DT
general-purpose JJ
and CC
broker-dealer NN
fund NN
categories NNS
, ,
pulled VBD
money NN
from IN
the DT
stock NN
market NN
after IN
its PRP$
big JJ
drop NN
last JJ
Friday NNP
and CC
put VB
the DT
money NN
into IN
funds NNS
, ,
said VBD
Jacob NNP
Dreyer NNP
, ,
vice NN
president NN
and CC
chief JJ
economist NN
of IN
the DT
Institute NNP
. .

`` ``
Insitutional JJ
investors NNS
, ,
on IN
the DT
other JJ
hand NN
, ,
reacted VBD
to TO
the DT
steep JJ
decline NN
in IN
yields NNS
on IN
direct JJ
money-market JJ
instruments NNS
following VBG
the DT
stock-market NN
decline NN
last JJ
Friday NNP
, ,
'' ''
Mr. NNP
Dreyer NNP
said VBD
. .

Yields NNS
on IN
money NN
funds NNS
dropped VBD
in IN
the DT
week NN
ended VBN
Tuesday NNP
, ,
according VBG
to TO
Donoghue NNP
's POS
Money NNP
Fund NNP
Report NNP
, ,
a DT
Holliston NNP
, ,
Mass. NNP
, ,
newsletter NN
. .

The DT
average JJ
seven-day JJ
compounded VBN
yield VB
fell VBD
to TO
8.55 CD
% NN
from IN
8.60 CD
% NN
the DT
week NN
earlier RBR
, ,
Donoghue NNP
's POS
said VBD
. .

At IN
the DT
auction NN
of IN
six-month JJ
U.S. NNP
Treasury NNP
bills NNS
on IN
Monday NNP
, ,
the DT
average JJ
yield NN
fell VBD
to TO
7.61 CD
% NN
from IN
7.82 CD
% NN
. .

Likewise RB
, ,
certificates NNS
of IN
deposit NN
on IN
average NN
posted VBD
lower JJR
yields NNS
in IN
the DT
week NN
ended VBN
Tuesday NNP
. .

The DT
142 CD
institutional-type JJ
money NN
funds NNS
rose VBD
$ $
2.23 CD
billion CD
to TO
$ $
85.49 CD
billion CD
. .

The DT
235 CD
general-purpose JJ
funds NNS
increased VBN
$ $
2.53 CD
billion CD
to TO
$ $
116.56 CD
billion CD
, ,
while IN
96 CD
broker-dealer NN
funds NNS
increased VBN
$ $
1.3 CD
billion CD
to TO
$ $
154.05 CD
billion CD
. .

Domestic JJ
lending NN
for IN
real JJ
estate NN
and CC
property NN
development NN
was VBD
the DT
source NN
of IN
Bank NNP
Bumiputra NNP
Malaysia NNP
Bhd. NNP
's POS
most RBS
recent JJ
spate NN
of IN
financial JJ
troubles NNS
, ,
the DT
institution NN
's POS
executive JJ
chairman NN
, ,
Mohamed NNP
Basir NNP
Ismail NNP
, ,
said VBD
. .

Speaking VBG
to TO
reporters NNS
this DT
week NN
after IN
Bank NNP
Bumiputra NNP
's POS
shareholders NNS
approved VBD
a DT
rescue NN
plan NN
, ,
Tan NNP
Sri NNP
Basir NNP
said VBD
heavy JJ
lending NN
to TO
the DT
property NN
sector NN
rocked VBD
the DT
bank NN
when WRB
property NN
prices NNS
in IN
Malaysia NNP
plummeted VBD
in IN
1984-85 CD
. .

He PRP
said VBD
the DT
bank NN
could MD
n't RB
wait VB
any RB
longer RB
for IN
prices NNS
to TO
recover VB
and CC
for IN
borrowers NNS
to TO
service VB
their PRP$
loans NNS
. .

So RB
the DT
bank NN
's POS
board NN
decided VBD
to TO
make VB
1.23 CD
billion CD
Malaysian JJ
dollars NNS
-LRB- (
US$ $
457 CD
million CD
-RRB- )
in IN
provisions NNS
for IN
interest NN
payments NNS
from IN
loans NNS
previously RB
recorded VBN
as IN
revenue NN
but CC
never RB
actually RB
received VBN
by IN
the DT
bank NN
, ,
and CC
to TO
submit VB
a DT
bailout NN
package NN
to TO
replenish VB
the DT
bank NN
's POS
paid-up JJ
capital NN
. .

The DT
predicament NN
, ,
he PRP
added VBD
, ,
was VBD
similar JJ
to TO
the DT
Hong NNP
Kong NNP
1982-83 CD
property-price JJ
collapse NN
, ,
which WDT
exposed VBD
the DT
involvement NN
of IN
Bank NNP
Bumiputra NNP
's POS
former JJ
subsidiary NN
in IN
the DT
colony NN
in IN
the DT
largest JJS
banking NN
scandal NN
in IN
Malaysia NNP
's POS
history NN
. .

The DT
subsidiary NN
, ,
Bumiputra NNP
Malaysia NNP
Finance NNP
Ltd. NNP
, ,
was VBD
left VBN
with IN
M$ $
2.26 CD
billion CD
in IN
bad JJ
loans NNS
made VBN
to TO
Hong NNP
Kong NNP
property NN
speculators NNS
. .

Both DT
episodes NNS
wiped VBD
out IN
Bank NNP
Bumiputra NNP
's POS
shareholders NNS
' POS
funds NNS
. .

Each DT
time NN
, ,
the DT
bank NN
's POS
90 CD
% NN
shareholder NN
-- :
Petroliam NNP
Nasional NNP
Bhd. NNP
, ,
or CC
Petronas NNP
, ,
the DT
national JJ
oil NN
company NN
-- :
has VBZ
been VBN
called VBN
upon IN
to TO
rescue VB
the DT
institution NN
. .

In IN
five CD
years NNS
, ,
Petronas NNP
, ,
which WDT
became VBD
the DT
dominant JJ
shareholder NN
in IN
a DT
1984 CD
rescue NN
exercise NN
, ,
has VBZ
spent VBN
about IN
M$ $
3.5 CD
billion CD
to TO
prop VB
up IN
the DT
troubled JJ
bank NN
. .

Tan NNP
Sri NNP
Basir NNP
said VBD
the DT
capital NN
restructuring NN
plan NN
has VBZ
been VBN
approved VBN
by IN
Malaysia NNP
's POS
Capital NNP
Issues NNP
Committee NNP
and CC
central JJ
bank NN
. .

Malaysia NNP
's POS
High NNP
Court NNP
is VBZ
expected VBN
to TO
approve VB
the DT
plan NN
. .

Once RB
the DT
plan NN
is VBZ
approved VBN
, ,
Tan NNP
Sri NNP
Basir NNP
said VBD
, ,
most RBS
of IN
Bank NNP
Bumiputra NNP
's POS
nonperforming JJ
loans NNS
will MD
have VB
been VBN
fully RB
provided VBN
for IN
and CC
the DT
bank NN
will MD
be VB
on IN
track NN
to TO
report VB
a DT
pretax JJ
profit NN
of IN
between IN
M$ $
160 CD
million CD
and CC
M$ $
170 CD
million CD
for IN
the DT
fiscal JJ
year NN
ending VBG
March NNP
31 CD
. .

For IN
the DT
previous JJ
financial JJ
year NN
, ,
the DT
bank NN
would MD
have VB
reported VBN
a DT
pretax JJ
profit NN
of IN
M$ $
168 CD
million CD
if IN
it PRP
had VBD
n't RB
made VBN
provisions NNS
for IN
the DT
nonperforming JJ
loans NNS
, ,
he PRP
said VBD
. .

Malaysia NNP
's POS
Banking NNP
Secrecy NNP
Act NNP
prohibited VBD
the DT
bank NN
from IN
identifying VBG
delinquent JJ
borrowers NNS
, ,
said VBD
Tan NNP
Sri NNP
Basir NNP
. .

But CC
public JJ
documents NNS
indicate VBP
10 CD
% NN
or CC
more JJR
of IN
the DT
bank NN
's POS
provisions NNS
were VBD
made VBN
for IN
foregone JJ
interest NN
on IN
a DT
M$ $
200 CD
million CD
loan NN
to TO
Malaysia NNP
's POS
dominant JJ
political JJ
party NN
, ,
the DT
United NNP
Malays NNP
National NNP
Organization NNP
, ,
to TO
build VB
its PRP$
convention NN
and CC
headquarters NN
complex JJ
in IN
Kuala NNP
Lumpur NNP
. .

The DT
loan NN
to TO
UMNO NNP
was VBD
made VBN
in IN
September NNP
1983 CD
. .

`` ``
We PRP
lent VBD
a DT
lot NN
of IN
money NN
all DT
over IN
the DT
place NN
, ,
'' ''
said VBD
Tan NNP
Sri NNP
Basir NNP
, ,
who WP
refused VBD
to TO
discuss VB
the DT
bank NN
's POS
outstanding JJ
loans NNS
to TO

As RB
well RB
as IN
the DT
M$ $
1.23 CD
billion CD
in IN
provisions NNS
announced VBD
on IN
Oct. NNP
6 CD
, ,
the DT
restructuring NN
package NN
covers VBZ
an DT
additional JJ
M$ $
450 CD
million CD
in IN
provisions NNS
made VBN
in IN
earlier JJR
years NNS
but CC
never RB
reflected VBD
in IN
a DT
reduction NN
of IN
the DT
bank NN
's POS
paid-up JJ
capital NN
. .

At IN
the DT
end NN
of IN
the DT
exercise NN
, ,
the DT
cash NN
injection NN
from IN
Petronas NNP
will MD
increase VB
the DT
bank NN
's POS
paid-up JJ
capital NN
to TO
M$ $
1.15 CD
billion CD
after IN
virtually RB
being VBG
wiped VBN
out IN
by IN
the DT
new JJ
provisions NNS
. .

Heidi NNP
Ehman NNP
might MD
have VB
stepped VBN
from IN
a DT
recruiting VBG
poster NN
for IN
young JJ
Republicans NNPS
. .

White NNP
, ,
24 CD
years NNS
old JJ
, ,
a DT
singer NN
in IN
her PRP$
church NN
choir NN
, ,
she PRP
symbolizes VBZ
a DT
generation NN
that WDT
gave VBD
its PRP$
heart NN
and CC
its PRP$
vote NN
to TO
Ronald NNP
Reagan NNP
. .

`` ``
I PRP
felt VBD
kind NN
of IN
safe JJ
, ,
'' ''
she PRP
says VBZ
. .

No RB
longer RB
. .

When WRB
the DT
Supreme NNP
Court NNP
opened VBD
the DT
door NN
this DT
year NN
to TO
new JJ
restrictions NNS
on IN
abortion NN
, ,
Ms. NNP
Ehman NNP
opened VBD
her PRP$
mind NN
to TO
Democratic JJ
politics NNS
. .

Then RB
a DT
political JJ
novice NN
, ,
she PRP
stepped VBD
into IN
a DT
whirl NN
of IN
`` ``
pro-choice JJ
'' ''
marches NNS
, ,
house NN
parties NNS
and CC
fund-raisers NNS
. .

Now RB
she PRP
leads VBZ
a DT
grassroots NNS
abortion-rights NNS
campaign NN
in IN
Passaic NNP
County NNP
for IN
pro-choice JJ
Democratic JJ
gubernatorial JJ
candidate NN
James NNP
Florio NNP
. .

`` ``
This DT
is VBZ
one CD
where WRB
I PRP
cross VBP
party NN
lines NNS
, ,
'' ''
she PRP
says VBZ
, ,
rejecting VBG
the DT
anti-abortion JJ
stance NN
of IN
Rep. NNP
Florio NNP
's POS
opponent NN
, ,
Reagan-Republican JJ
Rep. NNP
James NNP
Courter NNP
. .

`` ``
People NNS
my PRP$
age NN
thought VBD
it PRP
was VBD
n't RB
going VBG
to TO
be VB
an DT
issue NN
. .

Now RB
it PRP
has VBZ
-- :
especially RB
for IN
people NNS
my PRP$
age NN
. .
'' ''

Polls NNS
bear VBP
out RP
this DT
warning NN
, ,
but CC
after IN
a DT
decade NN
of IN
increased VBN
Republican NNP
influence NN
here RB
, ,
the DT
new JJ
politics NNS
of IN
abortion NN
have VBP
contributed VBN
to TO
a DT
world NN
turned VBD
upside RB
down RB
for IN
Mr. NNP
Courter NNP
. .
Unless IN
he PRP
closes VBZ
the DT
gap NN
, ,
Republicans NNPS
risk NN
losing VBG
not RB
only RB
the DT
governorship NN
but CC
also RB
the DT
assembly NN
next JJ
month NN
. .

Going VBG
into IN
the DT
1990s CD
, ,
the DT
GOP NNP
is VBZ
paying VBG
a DT
price NN
for IN
the DT
same JJ
conservative JJ
social JJ
agenda NN
that IN
it PRP
used VBD
to TO
torment VB
Democrats NNPS
in IN
the DT
past NN
. .

This DT
change NN
comes VBZ
less JJR
from IN
a DT
shift NN
in IN
public JJ
opinion NN
, ,
which WDT
has VBZ
n't RB
changed VBN
much JJ
on IN
abortion NN
over IN
the DT
past JJ
decade NN
, ,
than IN
in IN
the DT
boundaries NNS
of IN
the DT
debate NN
. .

New NNP
Jersey NNP
's POS
own JJ
highest JJS
court NN
remains VBZ
a DT
liberal JJ
bulwark NN
against IN
major JJ
restrictions NNS
on IN
abortion NN
, ,
but CC
the DT
U.S. NNP
Supreme NNP
Court NNP
ruling NN
, ,
Webster NNP
vs. IN
Missouri NNP
, ,
has VBZ
engaged VBN
voters NNS
across IN
the DT
nation NN
who WP
had VBD
been VBN
insulated VBN
from IN
the DT
issue NN
. .

Before IN
July NNP
, ,
pro-choice JJ
voters NNS
could MD
safely RB
make VB
political JJ
decisions NNS
without IN
focusing VBG
narrowly RB
on IN
abortion NN
. .

Now RB
, ,
the DT
threat NN
of IN
further JJ
restrictions NNS
adds VBZ
a DT
new JJ
dimension NN
, ,
bringing VBG
an DT
upsurge NN
in IN
political JJ
activity NN
by IN
abortion-rights NNS
forces NNS
. .

A DT
recent JJ
pro-choice JJ
rally NN
in IN
Trenton NNP
drew VBD
thousands NNS
, ,
and CC
in IN
a DT
major JJ
reversal NN
, ,
Congress NNP
is VBZ
defying VBG
a DT
presidential JJ
veto NN
and CC
demanding VBG
that IN
Medicaid NNP
abortions NNS
be VBP
permitted VBN
in IN
cases NNS
of IN
rape NN
and CC
incest NN
. .

`` ``
If IN
Webster NNP
had VBD
n't RB
happened VBN
, ,
you PRP
would MD
n't RB
be VB
here RB
, ,
'' ''
Linda NNP
Bowker NNP
tells VBZ
a DT
reporter NN
in IN
the DT
Trenton NNP
office NN
of IN
the DT
National NNP
Organization NNP
for IN
Women NNP
. .

`` ``
We PRP
could MD
have VB
shouted VBN
from IN
the DT
rooftops NNS
about IN
Courter NNP
... :
and CC
no DT
one PRP
would MD
have VB
heard VBN
us PRP
. .
'' ''

New NNP
Jersey NNP
is VBZ
a DT
proving VBG
ground NN
for IN
this DT
aggressive JJ
women's-rights JJ
movement NN
this DT
year NN
. .

The DT
infusion NN
of IN
activists NNS
can MD
bring VB
a DT
clash NN
of IN
cultures NNS
. .

In IN
Cherry NNP
Hill NNP
, ,
the DT
National NNP
Abortion NNP
Rights NNP
Action NNP
League NNP
, ,
whose WP$
goal NN
is VBZ
to TO
sign VB
up IN
50,000 CD
pro-choice JJ
voters NNS
, ,
targets VBZ
a DT
union NN
breakfast NN
to TO
build VB
labor NN
support NN
for IN
its PRP$
cause NN
. .

The DT
league NN
organizers NNS
seem VBP
more JJR
a DT
fit NN
with IN
a DT
convention NN
next JJ
door NN
of IN
young JJ
aerobics NN
instructors NNS
in IN
leotards NNS
than IN
the DT
beefy JJ
union NN
leaders NNS
; :
`` ``
I PRP
wish VBP
I PRP
could MD
go VB
work NN
out IN
, ,
'' ''
says VBZ
a DT
slim JJ
activist NN
. .

A DT
labor NN
chief NN
speaks VBZ
sardonically RB
of IN
having VBG
to TO
`` ``
man NN
and CC
woman NN
'' ''
Election NNP
Day NNP
phones NNS
. .

No DT
age NN
group NN
is VBZ
more RBR
sensitive JJ
than IN
younger JJR
voters NNS
, ,
like IN
Ms. NNP
Ehman NNP
. .

A DT
year NN
ago RB
this DT
fall NN
, ,
New NNP
Jersey NNP
voters NNS
under IN
30 CD
favored VBN
George NNP
Bush NNP
by IN
56 CD
% NN
to TO
39 CD
% NN
over IN
Michael NNP
Dukakis NNP
, ,
according VBG
to TO
a DT
survey NN
then RB
by IN
Rutgers NNP
University NNP
's POS
Eagleton NNP
Institute NNP
. .

A DT
matching VBG
Eagleton-Newark NNP
Star NNP
Ledger NNP
poll NN
last JJ
month NN
showed VBD
a DT
complete JJ
reversal NN
. .

Voters NNS
in IN
the DT
same JJ
age NN
group NN
backed VBN
Democrat NNP
Florio NNP
55 NN
% NN
to TO
29 CD
% NN
over IN
Republican NNP
Courter NNP
. .

Abortion NNP
alone RB
ca MD
n't RB
explain VB
this DT
shift NN
, ,
but CC
New NNP
Jersey NNP
is VBZ
a DT
model NN
of IN
how WRB
so RB
personal JJ
an DT
issue NN
can MD
become VB
a DT
baseline NN
of IN
sorts NNS
in IN
judging VBG
a DT
candidate NN
. .

By IN
a DT
2-to-1 JJ
ratio NN
, ,
voters NNS
appear VBP
more JJR
at IN
ease NN
with IN
Mr. NNP
Florio NNP
's POS
stance NN
on IN
abortion NN
, ,
and CC
polls NNS
indicate VBP
his PRP$
lead NN
widens VBZ
when WRB
the DT
candidates NNS
are VBP
specifically RB
linked VBN
to TO
the DT
issue NN
. .

`` ``
The DT
times NNS
are VBP
my PRP$
times NNS
, ,
'' ''
says VBZ
Mr. NNP
Florio NNP
. .

The DT
Camden NNP
County NNP
congressman NN
still RB
carries VBZ
himself PRP
with IN
a DT
trademark NN
`` ``
I'm-coming-down-your-throat JJ
'' ''
intensity NN
, ,
but CC
at IN
a DT
pause NN
in IN
Newark NNP
's POS
Columbus NNP
Day NNP
parade NN
recently RB
, ,
he PRP
was VBD
dancing VBG
with IN
his PRP$
wife NN
in IN
the DT
middle NN
of IN
the DT
avenue NN
in IN
the DT
city NN
's POS
old JJ
Italian-American JJ
ward NN
. .

After IN
losing VBG
by IN
fewer JJR
than IN
1,800 CD
votes NNS
in IN
the DT
1981 CD
governor NN
's POS
race NN
, ,
he PRP
has VBZ
prepared VBN
himself PRP
methodically RB
for IN
this DT
moment NN
, ,
including VBG
deciding VBG
in IN
recent JJ
years NNS
he PRP
could MD
no RB
longer RB
support VB
curbs NNS
on IN
federal JJ
funding NN
for IN
Medicaid NNP
abortions NNS
. .

`` ``
If IN
you PRP
're VBP
going VBG
to TO
be VB
consistent JJ
and CC
say VBP
it PRP
is VBZ
a DT
constitutionally RB
protected VBN
right NN
, ,
'' ''
he PRP
asks VBZ
, ,
`` ``
how WRB
are VBP
you PRP
going VBG
to TO
say VB
an DT
upscale JJ
woman NN
who WP
can MD
drive VB
to TO
the DT
hospital NN
or CC
clinic NN
in IN
a DT
nice JJ
car NN
has VBZ
a DT
constitutional JJ
right NN
and CC
someone NN
who WP
is VBZ
not RB
in IN
great JJ
shape NN
financially RB
does VBZ
not RB
? .
'' ''

Mr. NNP
Courter NNP
, ,
by IN
comparison NN
, ,
seems VBZ
a DT
shadow NN
of IN
the DT
confident JJ
hawk NN
who WP
defended VBD
Oliver NNP
North NNP
before IN
national JJ
cameras NNS
at IN
Iran-Contra NNP
hearings NNS
two CD
years NNS
ago RB
. .

Looking VBG
back RB
, ,
he PRP
says VBZ
he PRP
erred VBN
by IN
stating VBG
his PRP$
`` ``
personal JJ
'' ''
opposition NN
to TO
abortion NN
instead RB
of IN
assuring VBG
voters NNS
that IN
he PRP
would MD
n't RB
impose VB
his PRP$
views NNS
on IN
`` ``
policy NN
'' ''
as IN
governor NN
. .

It PRP
is VBZ
a DT
distinction NN
that WDT
satisfies VBZ
neither DT
side NN
in IN
the DT
debate NN
. .

`` ``
He PRP
does VBZ
n't RB
know VB
himself PRP
, ,
'' ''
Kathy NNP
Stanwick NNP
of IN
the DT
Abortion NNP
Rights NNP
League NNP
says NNS
of IN
Mr. NNP
Courter NNP
's POS
position NN
. .

Even JJ
abortion NN
opponents NNS
, ,
however RB
angry JJ
with IN
Mr. NNP
Florio NNP
, ,
ca MD
n't RB
hide VB
their PRP$
frustration NN
with IN
the DT
Republican NNP
's POS
ambivalence NN
. .

`` ``
He PRP
does VBZ
n't RB
want VB
to TO
lead VB
the DT
people NNS
, ,
'' ''
says VBZ
Richard NNP
Traynor NNP
, ,
president NN
of IN
New NNP
Jersey NNP
Right NNP
to TO
Life NNP
. .

Moreover RB
, ,
by IN
stepping VBG
outside IN
the DT
state NN
's POS
pro-choice JJ
tradition NN
, ,
Mr. NNP
Courter NNP
aggravates VBZ
fears NNS
that IN
he PRP
is VBZ
too RB
conservative JJ
as IN
well RB
on IN
more JJR
pressing VBG
concerns NNS
such JJ
as IN
auto NN
insurance NN
rates NNS
and CC
the DT
environment NN
. .

He PRP
hurt VBD
himself PRP
further VB
this DT
summer NN
by IN
bringing VBG
homosexual JJ
issues NNS
into IN
the DT
debate NN
; :
and CC
by IN
wavering VBG
on IN
this DT
issue NN
and CC
abortion NN
, ,
he PRP
has VBZ
weakened VBN
his PRP$
credibility NN
in IN
what WP
is VBZ
already RB
a DT
mean-spirited JJ
campaign NN
on IN
both DT
sides NNS
. .

Elected VBN
to TO
Congress NNP
in IN
1978 CD
, ,
the DT
48-year-old NNP
Mr. NNP
Courter NNP
is VBZ
part NN
of IN
a DT
generation NN
of IN
young JJ
conservatives NNS
who WP
were VBD
once RB
very RB
much RB
in IN
the DT
lead NN
of IN
the DT
rightward JJ
shift NN
under IN
Mr. NNP
Reagan NNP
. .

Like IN
many NN
of IN
his PRP$
colleagues NNS
, ,
he PRP
did VBD
n't RB
serve VB
in IN
Vietnam NNP
in IN
the DT
1960s CD
yet RB
embraced VBN
a DT
hawkish JJ
defense NN
and CC
foreign JJ
policy NN
-- :
even JJ
voting NN
against IN
a DT
1984 CD
resolution NN
critical JJ
of IN
the DT
U.S. NNP
mining NN
of IN
Nicaraguan JJ
harbors NNS
. .

Jack NNP
Kemp NNP
and CC
the DT
writers NNS
Irving NNP
Kristol NNP
and CC
George NNP
Gilder NNP
were VBD
influences NNS
, ,
and CC
Mr. NNP
Courter NNP
's POS
own JJ
conservative JJ
credentials NNS
proved VBD
useful JJ
to TO
the DT
current JJ
New NNP
Jersey NNP
GOP NNP
governor NN
, ,
Thomas NNP
Kean NNP
, ,
in IN
the DT
1981 CD
Republican NNP
primary JJ
here RB
. .

The DT
same JJ
partnership NN
is VBZ
now RB
crucial JJ
to TO
Mr. NNP
Courter NNP
's POS
fortunes NNS
, ,
but CC
the DT
abortion NN
issue NN
is VBZ
only RB
a DT
reminder NN
of IN
the DT
gap NN
between IN
his PRP$
record NN
and CC
that IN
of IN
the DT
more RBR
moderate JJ
, ,
pro-choice JJ
Gov. NNP
Kean NNP
. .
While IN
the DT
Warren NNP
County NNP
congressman NN
pursued VBD
an DT
anti-government NN
, ,
anti-tax JJ
agenda NN
in IN
Washington NNP
, ,
Gov. NNP
Kean NNP
was VBD
approving VBG
increased VBN
income NN
and CC
sales NNS
taxes NNS
at IN
home NN
and CC
overseeing VBG
a DT
near IN
doubling VBG
in IN
the DT
size NN
of IN
New NNP
Jersey NNP
's POS
budget NN
in IN
his PRP$
eight CD
years NNS
in IN
office NN
. .

Kean NNP
forces NNS
play VBP
down RP
any DT
differences NNS
with IN
Mr. NNP
Courter NNP
, ,
but CC
this DT
history NN
makes VBZ
it PRP
harder JJR
for IN
the DT
conservative JJ
to TO
run VB
against IN
government NN
. .

Mr. NNP
Courter NNP
's POS
free-market JJ
plan NN
to TO
bring VB
down JJ
auto NN
insurance NN
rates NNS
met VBD
criticism NN
from IN
Gov. NNP
Kean NNP
's POS
own JJ
insurance NN
commissioner NN
. .

Mr. NNP
Courter NNP
is VBZ
further RB
hobbled VBN
by IN
a DT
record NN
of IN
votes NNS
opposed VBN
to TO
government NN
regulation NN
on IN
behalf NN
of IN
consumers NNS
. .

Fluent JJ
in IN
Spanish JJ
from IN
his PRP$
days NNS
in IN
the DT
Peace NNP
Corps NNP
, ,
Mr. NNP
Courter NNP
actively RB
courts VBZ
minority NN
voters NNS
but CC
seems VBZ
oddly RB
over IN
his PRP$
head NN
. .

He PRP
is VBZ
warm JJ
and CC
polished VBN
before IN
a DT
Puerto NNP
Rican NNP
Congress NNP
in IN
Asbury NNP
Park NNP
. .

Yet RB
minutes NNS
after IN
promising JJ
to TO
appoint VB
Hispanics NNPS
to TO
high JJ
posts NNS
in IN
state NN
government NN
, ,
he PRP
is VBZ
unable JJ
to TO
say VB
whether IN
he PRP
has VBZ
ever RB
employed VBN
any DT
in NN
his PRP$
congressional JJ
office NN
. .

`` ``
I PRP
do VBP
n't RB
think VB
we PRP
do VB
now RB
, ,
'' ''
he PRP
says VBZ
. .

`` ``
I PRP
think VBP
we PRP
did VBD
. .
'' ''

Asked VBN
the DT
same JJ
question NN
after IN
his PRP$
appearance NN
, ,
Democrat NNP
Florio NNP
identifies VBZ
a DT
staff NN
member NN
by IN
name NN
and CC
explains VBZ
her PRP$
whereabouts NN
today NN
. .

When WRB
he PRP
is VBZ
presented VBN
with IN
a DT
poster NN
celebrating VBG
the DT
organization NN
's POS
20th JJ
anniversary NN
, ,
he PRP
recognizes VBZ
a DT
photograph NN
of IN
one CD
of IN
the DT
founders NNS
and CC
recalls VBZ
time NN
spent VBN
together RB
in IN
Camden NNP
. .

Details NNS
and CC
Camden NNP
are VBP
essential JJ
Florio NNP
. .

Elected VBN
to TO
Congress NNP
as IN
a DT
`` ``
Watergate NNP
baby NN
'' ''
in IN
1974 CD
, ,
he PRP
ran VBD
for IN
governor NN
three CD
years NNS
later RB
. .

In IN
the DT
opinion NN
of IN
many JJ
, ,
he PRP
has VBZ
n't RB
stopped VBN
running VBG
since IN
, ,
even RB
though IN
he PRP
declined VBD
a DT
rematch NN
with IN
Gov. NNP
Kean NNP
in IN
1985 CD
. .

His PRP$
base NN
in IN
South NNP
Jersey NNP
and CC
on IN
the DT
House NNP
Energy NNP
and CC
Commerce NNP
Committee NNP
helped VBD
him PRP
sustain VBP
a DT
network NN
of IN
political-action JJ
committees NNS
to TO
preserve VB
his PRP$
edge NN
. .

With IN
limited JJ
budgets NNS
for IN
television NN
in IN
a DT
high-priced JJ
market NN
, ,
Mr. NNP
Florio NNP
's POS
higher JJR
recognition NN
than IN
his PRP$
rival NN
is VBZ
a DT
major JJ
advantage NN
. .

More RBR
than IN
ever RB
, ,
his PRP$
pro-consumer NN
and CC
pro-environment NN
record NN
is VBZ
in IN
sync NN
with IN
the DT
state NN
. .

Auto NN
insurance NN
rates NNS
are VBP
soaring VBG
. .

A DT
toxic-waste-dump JJ
fire NN
destroyed VBD
part NN
of IN
an DT
interstate JJ
highway NN
this DT
summer NN
. .

In IN
Monmouth NNP
, ,
an DT
important JJ
swing NN
area NN
, ,
Republican NNP
freeholders NNS
now RB
run VBP
on IN
a DT
slogan NN
promising JJ
to TO
keep VB
the DT
county NN
`` ``
clean JJ
and CC
green JJ
. .
'' ''

Mr. NNP
Florio NNP
savors NNS
this DT
vindication NN
, ,
but CC
at IN
age NN
52 CD
, ,
the DT
congressman NN
is VBZ
also RB
a DT
product NN
of IN
his PRP$
times NNS
and CC
losses NNS
. .

He PRP
speaks VBZ
for IN
the DT
death NN
penalty NN
as IN
if IN
reading NN
from IN
Exodus NNP
21 CD
; :
to TO
increase VB
state NN
revenue NN
he PRP
focuses VBZ
not RB
on IN
`` ``
taxes NNS
'' ''
but CC
on IN
`` ``
audits NN
'' ''
to TO
cut VB
waste NN
. .

Hard-hitting JJ
consultants NNS
match VBP
ads NNS
with IN
Mr. NNP
Courter NNP
's POS
team NN
, ,
and CC
Mr. NNP
Florio NNP
retools VBZ
himself PRP
as IN
the DT
lean JJ
, ,
mean VB
Democratic JJ
fighting NN
machine NN
of IN
the DT
1990s CD
. .

Appealing VBG
to TO
a DT
young JJ
audience NN
, ,
he PRP
scraps VBZ
an DT
old JJ
reference NN
to TO
Ozzie NNP
and CC
Harriet NNP
and CC
instead RB
quotes VBZ
the DT
Grateful NNP
Dead NNP
. .

The DT
lyric JJ
chosen VBN
-- :
`` ``
long JJ
strange JJ
night NN
'' ''
-- :
may MD
be VB
an DT
apt JJ
footnote NN
to TO
television NN
spots NNS
by IN
both DT
candidates NNS
intended VBN
to TO
portray VB
each DT
other NN
as IN
a DT
liar NN
. .

The DT
Democratic JJ
lawmaker NN
fits VBZ
a DT
pattern NN
of IN
younger JJR
reformers NNS
arising VBG
out IN
of IN
old JJ
machines NNS
, ,
but CC
his PRP$
ties NNS
to TO
Camden NNP
remain VB
a DT
sore JJ
point NN
because IN
of IN
the DT
county NN
's POS
past JJ
corruption NN
. .

His PRP$
campaign NN
hierarchy NN
is VBZ
chosen VBN
from IN
elsewhere RB
in IN
the DT
state NN
, ,
and CC
faced VBD
with IN
criticism NN
of IN
a DT
sweetheart NN
bank NN
investment NN
, ,
he PRP
has VBZ
so RB
far RB
blunted VBN
the DT
issue NN
by IN
donating VBG
the DT
bulk NN
of IN
his PRP$
profits NNS
to TO
his PRP$
alma JJ
mater NN
, ,
Trenton NNP
State NNP
College NNP
. .
Mr. NNP
Florio NNP
's POS
forcefulness NN
on IN
the DT
abortion NN
issue NN
after IN
the DT
Webster NNP
ruling NN
divides VBZ
some DT
of IN
his PRP$
old JJ
constituency NN
. .

Pasquale NNP
Pignatelli NNP
, ,
an DT
unlikely JJ
but CC
enthusiastic JJ
pipe NN
major JJ
in IN
an DT
Essex NNP
County NNP
Irish JJ
bagpipe NN
band NN
, ,
speaks VBZ
sadly RB
of IN
Mr. NNP
Florio NNP
. .

`` ``
I PRP
am VBP
a DT
devout JJ
Catholic NNP
, ,
'' ''
says VBZ
Mr. NNP
Pignatelli NNP
, ,
a DT
40-year-old JJ
health NN
officer NN
. .

`` ``
I PRP
ca MD
n't RB
support VB
him PRP
because IN
of IN
abortion NN
. .
'' ''

Bill NNP
Wames NNP
Sr. NNP
, ,
72 CD
, ,
is VBZ
Catholic NNP
too RB
, ,
but CC
unfazed VBN
by IN
Mr. NNP
Florio NNP
's POS
stand NN
on IN
abortion NN
. .

A DT
security NN
guard NN
at IN
a DT
cargo NN
terminal NN
, ,
he PRP
wears VBZ
a DT
Sons NNP
of IN
Italy NNP
jacket NN
and CC
cap NN
celebrating VBG
`` ``
The DT
US PRP
1 CD
Band NNP
. .
'' ''

`` ``
I PRP
still RB
think VBP
the DT
woman NN
has VBZ
the DT
right NN
to TO
do VB
with IN
her PRP$
body NN
as IN
she PRP
pleases VBZ
, ,
'' ''
he PRP
says VBZ
. .

`` ``
If IN
you PRP
want VBP
more JJR
opinions NNS
ask VBP
my PRP$
wife NN
. .

She PRP
has VBZ
lots NNS
of IN
opinions NNS
. .

Consumer NN
prices NNS
rose VBD
a DT
surprisingly RB
moderate JJ
0.2 CD
% NN
in IN
September NNP
, ,
pushed VBD
up IN
mostly RB
by IN
a DT
jump NN
in IN
clothing NN
costs NNS
, ,
the DT
Labor NNP
Department NNP
reported VBD
. .

Energy NN
costs NNS
, ,
which WDT
drove VBD
wholesale JJ
prices NNS
up IN
sharply RB
during IN
the DT
month NN
, ,
continued VBD
to TO
decline VB
at IN
the DT
retail JJ
level NN
, ,
pulling VBG
down JJ
transportation NN
and CC
helping VBG
to TO
ease VB
housing NN
costs NNS
. .

The DT
report NN
was VBD
the DT
brightest JJS
news NN
the DT
financial JJ
markets NNS
had VBD
seen VBN
since IN
before IN
the DT
stock NN
market NN
plunged VBD
more JJR
than IN
190 CD
points NNS
last JJ
Friday NNP
. .

The DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
rallied VBD
on IN
the DT
news NN
, ,
closing VBG
39.55 CD
points NNS
higher JJR
at IN
2683.20 CD
. .

Bond NN
prices NNS
also RB
jumped VBD
as IN
traders NNS
appeared VBD
to TO
read VB
the DT
data NNS
as IN
a DT
sign NN
that IN
interest NN
rates NNS
may MD
fall VB
. .

But CC
many JJ
economists NNS
were VBD
not RB
nearly RB
as IN
jubilant JJ
. .
The DT
climb NN
in IN
wholesale JJ
energy NN
prices NNS
is VBZ
certain JJ
to TO
push VB
up IN
retail JJ
energy NN
prices NNS
in IN
the DT
next JJ
few JJ
months NNS
, ,
they PRP
warned VBD
. .

They PRP
also RB
said VBD
the DT
dollar NN
is VBZ
leveling VBG
off IN
after IN
a DT
rise NN
this DT
summer NN
that WDT
helped VBD
to TO
reduce VB
the DT
prices NNS
of IN
imported VBN
goods NNS
. .

`` ``
I PRP
think VBP
inflation NN
is VBZ
going VBG
to TO
pick VB
up IN
through IN
the DT
fall NN
, ,
'' ''
said VBD
Joel NNP
Popkin NNP
, ,
a DT
specialist NN
on IN
inflation NN
who WP
runs VBZ
an DT
economic JJ
consulting NN
firm NN
here RB
. .

`` ``
It PRP
has VBZ
been VBN
in IN
what WP
I PRP
would MD
describe VB
as IN
a DT
lull NN
for IN
the DT
past JJ
several JJ
months NNS
. .
'' ''

`` ``
We PRP
've VBP
had VBD
whopping JJ
declines NNS
in IN
consumer NN
energy NN
prices NNS
in IN
each DT
of IN
the DT
past JJ
three CD
months NNS
, ,
and CC
at IN
the DT
wholesale JJ
level NN
those DT
are VBP
fully RB
behind IN
us PRP
now RB
, ,
'' ''
said VBD
Jay NNP
Woodworth NNP
, ,
chief JJ
domestic JJ
economist NN
at IN
Bankers NNP
Trust NNP
Co. NNP
in IN
New NNP
York NNP
. .

Because IN
wholesale JJ
energy NN
prices NNS
shot NN
up IN
by IN
a DT
steep JJ
6.5 CD
% NN
last JJ
month NN
, ,
many JJ
analysts NNS
expected VBD
energy NN
prices NNS
to TO
rise VB
at IN
the DT
consumer NN
level NN
too RB
. .

As IN
a DT
result NN
, ,
many JJ
economists NNS
were VBD
expecting VBG
the DT
consumer NN
price NN
index NN
to TO
increase VB
significantly RB
more JJR
than IN
it PRP
did VBD
. .

But CC
retail JJ
energy NN
prices NNS
declined VBD
0.9 CD
% NN
in IN
September NNP
. .

Though IN
analysts NNS
say VBP
competition NN
will MD
probably RB
hold VB
down RB
increases VBZ
in IN
retail JJ
energy NN
prices NNS
, ,
many JJ
expect VBP
some DT
of IN
the DT
wholesale JJ
rise NN
to TO
be VB
passed VBN
along IN
to TO
the DT
consumer NN
before IN
the DT
end NN
of IN
the DT
year NN
. .

Still RB
, ,
some DT
analysts NNS
insisted VBD
that IN
the DT
worst JJS
of IN
the DT
inflation NN
is VBZ
behind RB
. .

`` ``
It PRP
increasingly RB
appears VBZ
that IN
1987-88 CD
was VBD
a DT
temporary JJ
inflation NN
blip NN
and CC
not RB
the DT
beginning NN
of IN
a DT
cyclical JJ
inflation NN
problem NN
, ,
'' ''
argued VBD
Edward NNP
Yardeni NNP
, ,
chief JJ
economist NN
at IN
Prudential-Bache NNP
Securities NNP
Inc. NNP
in IN
New NNP
York NNP
. .

In IN
both DT
1987 CD
and CC
1988 CD
, ,
consumer NN
prices NNS
rose VBD
4.4 CD
% NN
. .

A DT
run-up NN
in IN
world NN
oil NN
prices NNS
last JJ
winter NN
sent VBD
consumer NN
prices NNS
soaring VBG
at IN
a DT
6.7 CD
% NN
annual JJ
rate NN
in IN
the DT
first JJ
five CD
months NNS
of IN
this DT
year NN
, ,
but CC
the DT
subsequent JJ
decline NN
in IN
energy NN
prices NNS
has VBZ
pulled VBN
the DT
annual JJ
rate NN
back RB
down RB
to TO
4.4 CD
% NN
. .

Mr. NNP
Yardeni NNP
predicted VBD
that DT
world NN
business NN
competition NN
will MD
continue VB
to TO
restrain VB
prices NNS
. .

`` ``
The DT
bottom NN
line NN
is VBZ
, ,
it PRP
seems VBZ
to TO
me PRP
that IN
the DT
economic JJ
environment NN
has VBZ
become VBN
very RB
, ,
very RB
competitve JJ
for IN
a DT
lot NN
of IN
businesses NNS
, ,
'' ''
he PRP
said VBD
. .

`` ``
Back RB
in IN
1987-88 CD
, ,
business NN
was VBD
operating VBG
at IN
fairly RB
tight JJ
capacity NN
, ,
so RB
businesses NNS
felt VBD
they PRP
could MD
raise VB
prices NNS
. .
'' ''

Now RB
, ,
he PRP
said VBD
, ,
a DT
slowdown NN
in IN
economic JJ
activity NN
has VBZ
slackened VBN
demand NN
. .

The DT
mild JJ
inflation NN
figures NNS
renewed VBD
investors NNS
' POS
hopes VBZ
that IN
the DT
Federal NNP
Reserve NNP
will MD
ease VB
its PRP$
interest-rate NN
stance NN
. .

The DT
steep JJ
climb NN
in IN
producer NN
prices NNS
reported VBD
last JJ
Friday NNP
fostered VBD
pessimism NN
about IN
lower JJR
interest NN
rates NNS
and CC
contributed VBD
to TO
the DT
stock NN
market NN
's POS
6.9 CD
% NN
plunge NN
that DT
day NN
. .

In IN
the DT
past JJ
several JJ
days NNS
, ,
however RB
, ,
the DT
U.S. NNP
's POS
central JJ
bank NN
has VBZ
allowed VBN
a DT
key JJ
interest NN
rate NN
to TO
fall VB
slightly RB
to TO
try VB
to TO
stabilize VB
the DT
markets NNS
. .

Analysts NNS
say VBP
Fed NNP
policy NN
makers NNS
have VBP
been VBN
wary JJ
of IN
relaxing VBG
credit NN
too RB
much JJ
because IN
they PRP
were VBD
still RB
uncertain JJ
about IN
the DT
level NN
of IN
inflation NN
in IN
the DT
economy NN
. .

Excluding VBG
the DT
volatile JJ
categories NNS
of IN
energy NN
and CC
food NN
-- :
leaving VBG
what WP
some DT
economists NNS
call VBP
the DT
core NN
inflation NN
rate NN
-- :
consumer NN
prices NNS
still RB
rose VBD
only RB
0.2 CD
% NN
in IN
September NNP
. .

Transportation NN
costs NNS
actually RB
fell VBD
0.5 CD
% NN
, ,
and CC
housing NN
costs NNS
gained VBD
only RB
0.1 CD
% NN
. .

Apparel NN
prices NNS
rocketed VBD
up IN
1.7 CD
% NN
, ,
but CC
that DT
was VBD
after IN
three CD
months NNS
of IN
declines NNS
. .

Medical JJ
costs NNS
continued VBD
their PRP$
steep JJ
ascent NN
, ,
rising VBG
0.8 CD
% NN
after IN
four CD
consecutive JJ
months NNS
of IN
0.7 CD
% NN
increases NNS
. .

Car NN
prices NNS
, ,
another DT
area NN
that WDT
contributed VBD
to TO
the DT
steep JJ
rise NN
in IN
the DT
wholesale JJ
index NN
last JJ
month NN
, ,
still RB
showed VBD
declines NNS
at IN
the DT
consumer NN
level NN
. .

They PRP
dropped VBD
0.4 CD
% NN
as IN
dealers NNS
continued VBD
to TO
offer VB
rebates NNS
to TO
attract VB
customers NNS
. .

Food NN
prices NNS
rose VBD
0.2 CD
% NN
for IN
the DT
second JJ
month NN
in IN
a DT
row NN
, ,
far RB
slower JJR
than IN
the DT
monthly JJ
rises NNS
earlier RBR
in IN
the DT
year NN
. .

Separately RB
, ,
the DT
Labor NNP
Department NNP
reported VBD
that IN
average JJ
weekly JJ
earnings NNS
rose VBD
0.3 CD
% NN
in IN
September NNP
, ,
after IN
adjusting VBG
for IN
inflation NN
, ,
following VBG
a DT
0.7 CD
% NN
decline NN
in IN
August NNP
. .

All DT
the DT
numbers NNS
are VBP
adjusted VBN
for IN
seasonal JJ
fluctuations NNS
. .

Here RB
are VBP
the DT
seasonally RB
adjusted VBN
changes NNS
in IN
the DT
components NNS
of IN
the DT
Labor NNP
Department NNP
's POS
consumer NN
price NN
index NN
for IN
September NNP
. .

After IN
watching VBG
interest NN
in IN
the DT
sport NN
plummet NN
for IN
years NNS
, ,
the DT
ski NN
industry NN
is VBZ
trying VBG
to TO
give VB
itself PRP
a DT
lift NN
. .

Across IN
the DT
country NN
, ,
resorts NNS
are VBP
using VBG
everything NN
from IN
fireworks NNS
to TO
classical-music JJ
concerts NNS
to TO
attract VB
new JJ
customers NNS
. .

Some DT
have NN
built VBD
health NN
spas NNS
, ,
business NN
centers NNS
and CC
shopping NN
villages NNS
so RB
visitors NNS
have VBP
more JJR
to TO
do VB
than IN
ski NN
. .

And CC
this DT
week NN
, ,
the DT
industry NN
's POS
efforts NNS
will MD
go VB
national JJ
for IN
the DT
first JJ
time NN
when WRB
it PRP
unveils VBZ
a DT
$ $
7 CD
million CD
advertising NN
campaign NN
. .

Such JJ
efforts NNS
-- :
unheard JJ
of IN
only RB
a DT
few JJ
years NNS
ago RB
-- :
are VBP
the DT
latest JJS
attempts NNS
to TO
revive VB
the DT
sagging VBG
$ $
1.76 CD
billion CD
U.S. NNP
ski NN
industry NN
. .

Since IN
the DT
start NN
of IN
the DT
decade NN
, ,
lift-ticket JJ
sales NNS
have NN
grown VBN
only RB
3 CD
% NN
a DT
year NN
on IN
average JJ
, ,
compared VBN
with IN
16 CD
% NN
annual JJ
growth NN
rates NNS
in IN
the DT
'60s NNS
and CC
'70s NNS
. .

Last JJ
season NN
, ,
lift-ticket JJ
sales NNS
fell VBD
for IN
the DT
first JJ
time NN
in IN
seven CD
years NNS
. .

By IN
some DT
estimates NNS
, ,
nearly RB
a DT
fourth JJ
of IN
all DT
U.S. NNP
ski NN
areas NNS
have VBP
been VBN
forced VBN
to TO
shut VB
down RB
since IN
the DT
early JJ
'80s NNS
. .

Competition NN
and CC
mounting VBG
insurance NN
and CC
equipment NN
costs NNS
have VBP
been VBN
the DT
undoing NN
of IN
many JJ
resorts NNS
. .

But CC
another DT
big JJ
problem NN
has VBZ
been VBN
the DT
aging NN
of IN
baby NN
boomers NNS
. .

Skiing NN
, ,
after IN
all DT
, ,
has VBZ
mainly RB
been VBN
for IN
the DT
young JJ
and CC
daring JJ
and CC
many JJ
baby NN
boomers NNS
have VBP
outgrown VBN
skiing NN
or CC
have VBP
too RB
many JJ
family NN
responsibilities NNS
to TO
stick VB
with IN
the DT
sport NN
. .

In IN
its PRP$
new JJ
ad NN
campaign NN
, ,
created VBN
by IN
D'Arcy NNP
Masius NNP
Benton NNP
& CC
Bowles NNP
Inc. NNP
, ,
Chicago NNP
, ,
the DT
ski NN
industry NN
is VBZ
trying VBG
to TO
change VB
its PRP$
image NN
as IN
a DT
sport NN
primarily RB
for IN
young JJ
white JJ
people NNS
. .

One CD
60-second JJ
TV NN
spot NN
features VBZ
a DT
diverse JJ
group NN
of IN
skiers NNS
gracefully RB
gliding VBG
down RB
sun-drenched JJ
slopes NNS
: :
senior JJ
citizens NNS
, ,
minorities NNS
, ,
families NNS
with IN
children NNS
-- :
even RB
a DT
blind JJ
skier NN
. .

`` ``
Ski NNP
school NN
is VBZ
great JJ
, ,
'' ''
cries NNS
out IN
a DT
tot NN
, ,
bundled VBN
in IN
a DT
snowsuit NN
as IN
he PRP
plows VBZ
down RP
a DT
bunny NN
slope NN
. .

`` ``
You PRP
'll MD
never RB
know VB
'til NN
you PRP
try VBP
, ,
'' ''
says VBZ
a DT
black JJ
skier NN
. .

`` ``
We PRP
used VBD
to TO
show VB
some DT
hot-dog JJ
skier NN
in IN
his PRP$
twenties NNS
or CC
thirties NNS
going VBG
over IN
the DT
edge NN
of IN
a DT
cliff NN
, ,
'' ''
says VBZ
Kathe NNP
Dillmann NNP
, ,
a DT
spokeswoman NN
for IN
the DT
United NNP
Ski NNP
Industries NNP
Association NNP
, ,
the DT
trade NN
group NN
sponsoring VBG
the DT
campaign NN
. .

Ski NN
promotions NNS
have VBP
traditionally RB
avoided VBN
the DT
touchy JJ
issue NN
of IN
safety NN
. .

But CC
the DT
new JJ
commercials NNS
deal VBP
with IN
it PRP
indirectly RB
by IN
showing VBG
a DT
woman NN
smiling VBG
as IN
she PRP
tries VBZ
to TO
get VB
up IN
from IN
a DT
fall NN
. .

`` ``
We PRP
wanted VBD
to TO
show VB
it PRP
's VBZ
okay JJ
if IN
you PRP
fall VBP
, ,
'' ''
says VBZ
Ms. NNP
Dillmann NNP
. .

`` ``
Most JJS
people NNS
think VBP
if IN
you PRP
slip VBP
, ,
you PRP
'll MD
wind VB
up IN
in IN
a DT
body NN
cast NN
. .
'' ''

The DT
ad NN
campaign NN
represents VBZ
an DT
unusual JJ
spirit NN
of IN
cooperation NN
among IN
resorts NNS
and CC
ski NN
equipment NN
makers NNS
; :
normally RB
, ,
they PRP
only RB
run VBP
ads NNS
hyping VBG
their PRP$
own JJ
products NNS
and CC
facilities NNS
. .

But CC
in IN
these DT
crunch NN
times NNS
for IN
the DT
ski NN
industry NN
, ,
some DT
resorts NNS
, ,
such JJ
as IN
the DT
Angel NNP
Fire NNP
, ,
Red NNP
River NNP
and CC
Taos NNP
ski NN
areas NNS
in IN
New NNP
Mexico NNP
, ,
have VBP
even RB
started VBN
shuttle-busing NN
skiers NNS
to TO
each DT
other NN
's POS
slopes NNS
and CC
next JJ
year NN
plan NN
to TO
sell VB
tickets NNS
good JJ
for IN
all DT
local JJ
lifts NNS
. .

Many JJ
resorts NNS
also RB
are VBP
focusing VBG
more JJR
on IN
the DT
service NN
side NN
of IN
their PRP$
business NN
. .

Since IN
40 CD
% NN
of IN
skiers NNS
are VBP
parents NNS
, ,
many JJ
slopes NNS
are VBP
building VBG
nurseries NNS
, ,
expanding VBG
ski NN
schools NNS
and CC
adding VBG
entertainment NN
for IN
kids NNS
. .

Vail NNP
, ,
Colo. NNP
, ,
now RB
has VBZ
a DT
playland NN
that WDT
looks VBZ
like IN
an DT
old JJ
mining NN
town NN
; :
kids NNS
can MD
ski VB
through IN
and CC
pan NN
for IN
fool NN
's POS
gold NN
. .

For IN
$ $
15 CD
, ,
they PRP
can MD
enjoy VB
their PRP$
own JJ
nightly JJ
entertainment NN
, ,
with IN
dinner NN
, ,
without IN
mom NN
and CC
dad NN
. .

A DT
few JJ
years NNS
ago RB
, ,
parents NNS
usually RB
had VBD
to TO
hire VB
a DT
sitter NN
or CC
take VB
turns VBZ
skiing NN
while IN
one CD
spouse NN
stayed VBD
with IN
the DT
children NNS
. .

`` ``
Most JJS
parents NNS
who WP
had VBD
to TO
go VB
through IN
that DT
never RB
came VBD
back RB
, ,
'' ''
says VBZ
Michael NNP
Shannon NNP
, ,
president NN
of IN
Vail NNP
Associates NNP
Inc. NNP
, ,
which WDT
owns VBZ
and CC
operates VBZ
the DT
Vail NNP
and CC
nearby JJ
Beaver NNP
Creek NNP
resorts NNS
. .

To TO
make VB
skiing NN
more RBR
convenient JJ
for IN
time-strapped JJ
visitors NNS
, ,
several JJ
resorts NNS
are VBP
buying VBG
or CC
starting VBG
their PRP$
own JJ
travel NN
agencies NNS
. .

In IN
one CD
phone NN
call NN
, ,
ski NN
buffs NNS
can MD
make VB
hotel NN
and CC
restaurant NN
reservations NNS
, ,
buy VB
lift NN
tickets NNS
, ,
rent NN
ski NN
equipment NN
and CC
sign NN
up IN
for IN
lessons NNS
. .

And CC
resorts NNS
are VBP
adding VBG
other JJ
amenities NNS
, ,
such JJ
as IN
pricey JJ
restaurants NNS
, ,
health NN
spas NNS
and CC
vacation NN
packages NNS
with IN
a DT
twist NN
. .

During IN
Winter NNP
Carnival NNP
week NN
, ,
for IN
example NN
, ,
visitors NNS
at IN
Sunday NNP
River NNP
in IN
Maine NNP
can MD
take VB
a DT
hot-air JJ
balloon NN
ride NN
. .

`` ``
People NNS
these DT
days NNS
want VBP
something NN
else RB
to TO
do VB
besides IN
ski NN
and CC
sit VB
in IN
the DT
bar NN
, ,
'' ''
says VBZ
Don NNP
Borgeson NNP
, ,
executive JJ
director NN
of IN
Angel NNP
Fire NNP
, ,
N.M. NNP
's POS
Chamber NNP
of IN
Commerce NNP
. .

The DT
ski NN
industry NN
hopes VBZ
to TO
increase VB
the DT
number NN
of IN
skiers NNS
by IN
3.5 CD
million CD
to TO
about IN
21.7 CD
million CD
in IN
the DT
next JJ
five CD
years NNS
with IN
its PRP$
latest JJS
ads NNS
and CC
promotions NNS
. .

But CC
some DT
think NN
that WDT
's VBZ
being VBG
overly RB
optimistic JJ
. .

For IN
one CD
thing NN
, ,
it PRP
may MD
be VB
tough JJ
to TO
attract VB
people NNS
because IN
skiing NN
is VBZ
still RB
expensive JJ
: :
a DT
lift NN
ticket NN
can MD
cost VB
up IN
to TO
$ $
35 CD
a DT
day NN
and CC
equipment NN
prices NNS
are VBP
rising VBG
. .

And CC
most RBS
vacationers NNS
still RB
prefer VBP
a DT
warm JJ
climate NN
for IN
their PRP$
winter NN
excursions NNS
. .

An DT
American NNP
Express NNP
Co. NNP
survey NN
of IN
its PRP$
travel NN
agents NNS
revealed VBD
that IN
only RB
34 CD
% NN
believe VBP
their PRP$
clients NNS
will MD
pick VB
a DT
trip NN
this DT
winter NN
based VBN
on IN
the DT
availability NN
of IN
winter NN
sports NNS
, ,
as IN
opposed VBN
to TO
69 CD
% NN
who WP
think VBP
that IN
warm-weather JJ
sports NNS
will MD
be VB
the DT
deciding VBG
factor NN
. .

`` ``
Even RB
if IN
they PRP
could MD
bring VB
in IN
that DT
many JJ
new JJ
skiers NNS
, ,
I PRP
do VBP
n't RB
know VB
if IN
-LCB- (
the DT
industry NN
-RCB- )
could MD
handle VB
that DT
kind NN
of IN
an DT
increase NN
, ,
'' ''
says VBZ
I. NNP
William NNP
Berry NNP
, ,
editor NN
and CC
publisher NN
of IN
the DT
Ski NNP
Industry NNP
Letter NNP
in IN
Katonah NNP
, ,
N.Y NNP
. .

`` ``
Most JJS
people NNS
will MD
come VB
on IN
the DT
weekend NN
, ,
the DT
slopes NNS
will MD
be VB
overcrowded JJ
and CC
then RB
these DT
-LCB- (
new JJ
skiers NNS
-RCB- )
wo MD
n't RB
come VB
back RB
. .

They PRP
did VBD
n't RB
play VB
the DT
third JJ
game NN
of IN
the DT
World NNP
Series NNP
on IN
Tuesday NNP
night NN
as IN
scheduled VBN
, ,
and CC
they PRP
did VBD
n't RB
play VB
it PRP
on IN
Wednesday NNP
or CC
Thursday NNP
either RB
. .
But CC
you PRP
knew VBD
that IN
, ,
did VBD
n't RB
you PRP
? .

They PRP
are VBP
supposed VBN
to TO
play VB
the DT
game NN
next JJ
Tuesday NNP
, ,
in IN
Candlestick NNP
Park NNP
here RB
. .

The DT
theory NN
is VBZ
that IN
the DT
stadium NN
, ,
damaged VBN
by IN
Tuesday NNP
's POS
earthquake NN
, ,
will MD
be VB
repaired VBN
by IN
then RB
, ,
and CC
that IN
people NNS
will MD
be VB
able JJ
to TO
get VB
there RB
. .

Like IN
just RB
about IN
everything NN
else RB
, ,
that WDT
remains VBZ
to TO
be VB
seen VBN
. .

Aftershocks NNS
could MD
intervene VB
. .

But CC
, ,
at IN
least JJS
, ,
the DT
law NN
of IN
averages NNS
should MD
have VB
swung VBN
to TO
the DT
favorable JJ
side NN
. .

It PRP
may MD
seem VB
trivial JJ
to TO
worry VB
about IN
the DT
World NNP
Series NNP
amid IN
the DT
destruction NN
to TO
the DT
Bay NNP
Area NNP
wrought VBN
by IN
Tuesday NNP
's POS
quake NN
, ,
but CC
the DT
name NN
of IN
this DT
column NN
is VBZ
`` ``
On IN
Sports NNPS
, ,
'' ''
so IN
I PRP
feel VBP
obliged VBN
to TO
do VB
so RB
. .

You PRP
might MD
be VB
interested JJ
to TO
know VB
that DT
baseball NN
, ,
not RB
survival NN
, ,
appeared VBD
to TO
be VB
the DT
first JJ
thought VBD
of IN
most RBS
of IN
the DT
crowd NN
of IN
60,000-odd JJ
that WDT
had VBD
gathered VBN
at IN
Candlestick NNP
at IN
5:04 CD
p.m. NN
Tuesday NNP
, ,
a DT
half-hour NN
before IN
game NN
time NN
, ,
when WRB
the DT
quake NN
struck VBD
. .

As RB
soon RB
as IN
the DT
tremor NN
passed VBN
, ,
many JJ
people NNS
spontaneously RB
arose VBD
and CC
cheered VBD
, ,
as IN
though IN
it PRP
had VBD
been VBN
a DT
novel NN
kind NN
of IN
pre-game JJ
show NN
. .

One CD
fan NN
, ,
seated VBN
several JJ
rows NNS
in IN
front NN
of IN
the DT
open NN
, ,
upper-deck JJ
auxiliary JJ
press NN
section NN
where WRB
I PRP
was VBD
stationed VBN
, ,
faced VBD
the DT
assembled VBN
newsies NNS
and CC
laughingly RB
shouted VBD
, ,
`` ``
We PRP
arranged VBD
that IN
just RB
for IN
you PRP
guys NNS
! .
'' ''

I PRP
thought VBD
and CC
, ,
I PRP
'm VBP
sure JJ
, ,
others NNS
did VBD
: :
`` ``
You PRP
should MD
n't RB
have VB
bothered VBN
. .
'' ''

I PRP
'd MD
slept VBD
through IN
my PRP$
only RB
previous JJ
brush NN
with IN
natural JJ
disaster NN
, ,
a DT
tornado NN
15 CD
or CC
so RB
summers NNS
ago RB
near IN
Traverse NNP
City NNP
, ,
Mich. NNP
, ,
so IN
I PRP
was VBD
unprepared JJ
for IN
one CD
reaction NN
to TO
such JJ
things NNS
: :
the DT
urge NN
to TO
talk VB
about IN
them PRP
. .

Perhaps RB
primed VBN
by IN
the DT
daily JJ
diet NN
of IN
radio NN
and CC
TV NN
reporters NNS
thrusting VBG
microphones NNS
into IN
people NNS
's POS
faces VBZ
and CC
asking VBG
how WRB
they PRP
`` ``
feel VB
'' ''
about IN
one CD
calamity NN
or CC
another DT
, ,
fellow NN
reporters NNS
and CC
civilians NNS
who WP
spied VBD
my PRP$
press NN
credential NN
were VBD
eager JJ
to TO
chat VB
. .

`` ``
It PRP
felt VBD
like IN
I PRP
was VBD
on IN
a DT
station NN
platform NN
and CC
a DT
train NN
went VBN
by IN
, ,
'' ''
said VBD
one CD
man NN
, ,
describing VBG
my PRP$
own JJ
reaction NN
. .

A DT
women NNS
said VBD
she PRP
saw VBD
the DT
park NN
's POS
light NN
standards NNS
sway VBP
. .

A DT
man NN
said VBD
he PRP
saw VBD
the DT
upper JJ
rim NN
undulate VB
. .

I PRP
saw VBD
neither DT
. .

Dictates NNS
of IN
good JJ
sense NN
to TO
the DT
contrary JJ
not RB
withstanding VBG
, ,
the DT
general JJ
inclination NN
was VBD
to TO
believe VB
that IN
the DT
disturbance NN
would MD
be VB
brief JJ
and CC
that DT
ball NN
would MD
be VB
played VBN
. .

`` ``
I PRP
was VBD
near IN
the DT
top NN
of IN
the DT
stadium NN
, ,
and CC
saw VBD
a DT
steel NN
girder NN
bow NN
six CD
feet NNS
from IN
where WRB
I PRP
sat VBD
, ,
but CC
I PRP
stayed VBD
put VBN
for IN
10 CD
or CC
15 CD
minutes NNS
, ,
'' ''
confessed VBD
a DT
friend NN
. .

`` ``
I PRP
guess VBP
I PRP
thought VBD
, ,
` ``
This DT
is VBZ
the DT
World NNP
Series NNP
and CC
I PRP
'm VBP
not RB
gon VBG
na TO
wimp VB
out IN
! .
' ''
'' ''

Here RB
in IN
the DT
Global NNP
Village NNP
, ,
though RB
, ,
folks NNS
do VBP
not RB
stay VB
uninformed JJ
for IN
long JJ
. .

Electrical JJ
power NN
was VBD
out IN
in IN
still-daylighted JJ
Candlestick NNP
Park NNP
, ,
but CC
battery-operated JJ
radios NNS
and CC
television NN
sets NNS
were VBD
plentiful JJ
. .

Within IN
a DT
few JJ
minutes NNS
, ,
the DT
true JJ
extent NN
of IN
the DT
catastrophe NN
was VBD
becoming VBG
clear JJ
. .

Its PRP$
Richter NNP
Scale NNP
measurement NN
was VBD
reported VBN
as IN
6.5 CD
, ,
then RB
6.9 CD
, ,
then RB
7.0 CD
. .

A DT
section NN
of IN
the DT
Bay NNP
Bridge NNP
had VBD
collapsed VBN
, ,
as IN
had VBN
a DT
part NN
of IN
Interstate NNP
Highway NNP
880 CD
in IN
Oakland NNP
. .

People NNS
had VBD
died VBN
. .

At IN
5:40 CD
p.m. NN
, ,
scheduled VBN
game NN
time NN
having VBG
passed VBN
, ,
some DT
fans NNS
chanted VBD
`` ``
Let VB
's POS
Play NNP
Ball NNP
. .
'' ''

No RB
longer RB
innocent JJ
, ,
they PRP
qualified VBD
as IN
fools NNS
. .

The DT
stadium NN
was VBD
ordered VBN
evacuated VBN
soon RB
afterward RB
; :
the DT
announcement NN
, ,
made VBN
over IN
police NN
bullhorns NNS
, ,
cited VBD
the DT
power NN
outage NN
, ,
but CC
it PRP
later RB
was VBD
revealed VBN
that IN
there EX
also RB
had VBD
been VBN
damage NN
of IN
the DT
sort NN
reported VBN
by IN
my PRP$
friend NN
. .

Outside IN
, ,
I PRP
spotted VBD
two CD
young JJ
men NNS
lugging VBG
blocks NNS
of IN
concrete NN
. .

`` ``
Pieces NNP
of IN
Candlestick NNP
, ,
'' ''
they PRP
said VBD
. .

The DT
crowd NN
remained VBD
good JJ
natured JJ
, ,
even RB
bemused JJ
. .
TV NN
reporters NNS
interviewed VBD
fans NNS
in IN
the DT
parking NN
lots NNS
while IN
, ,
a DT
few JJ
feet NNS
away RB
, ,
others NNS
watched VBD
the DT
interviews NNS
on IN
their PRP$
portable JJ
TVs NNS
. .

The DT
only JJ
frenzy NN
I PRP
saw VBD
was VBD
commercial JJ
: :
Booths NNS
selling VBG
World NNP
Series NNP
commemorative JJ
stamps NNS
and CC
dated VBN
postmarks NNS
were VBD
besieged VBN
by IN
fledgling NN
speculators NNS
who WP
saw VBD
future NN
profit NN
in IN
the DT
items NNS
. .

The DT
traffic NN
jam NN
out IN
of IN
the DT
park NN
was VBD
monumental JJ
. .

It PRP
took VBD
me PRP
a DT
half-hour NN
to TO
move VB
10 CD
feet NNS
from IN
my PRP$
parking NN
spot NN
in IN
an DT
outer JJ
lot NN
to TO
an DT
aisle NN
, ,
and CC
an DT
additional JJ
hour NN
to TO
reach VB
an DT
inner JJ
roadway NN
a DT
half-block NN
away RB
. .

The DT
six-mile JJ
trip NN
to TO
my PRP$
airport NN
hotel NN
that WDT
had VBD
taken VBN
20 CD
minutes NNS
earlier RBR
in IN
the DT
day NN
took VBD
more JJR
than IN
three CD
hours NNS
. .

At IN
my PRP$
hotel NN
, ,
the DT
Westin NNP
, ,
power NN
was VBD
out IN
, ,
some DT
interior JJ
plaster NN
had VBD
broken VBN
loose JJ
and CC
there EX
had VBD
been VBN
water NN
damage NN
, ,
but CC
little JJ
else RB
. .

With IN
Garpian JJ
randomness NN
, ,
a DT
hotel NN
across IN
the DT
street NN
, ,
the DT
Amfac NNP
, ,
had VBD
been VBN
hit VBN
harder JJR
: :
A DT
large JJ
sheet NN
of IN
its PRP$
concrete JJ
facade NN
and CC
several JJ
window NN
balconies NNS
were VBD
torn VBN
away RB
. .

The DT
Westin NNP
staff NN
had VBD
, ,
kindly RB
, ,
set VBN
out RP
lighted VBN
candles NNS
in IN
the DT
ballroom NN
, ,
prepared VBD
a DT
cold-cuts NNS
buffet VBP
and CC
passed VBN
around IN
pillows NNS
and CC
blankets NNS
. .

I PRP
fell VBD
asleep RB
on IN
the DT
lobby NN
floor NN
, ,
next JJ
to TO
a DT
man NN
wearing VBG
a DT
Chicago NNP
Cubs NNPS
jacket NN
. .

I PRP
expected VBD
him PRP
to TO
say VB
, ,
`` ``
I PRP
told VBD
you PRP
so RB
, ,
'' ''
but CC
he PRP
already RB
was VBD
snoring VBG
. .

The DT
journalistic JJ
consensus NN
was VBD
that IN
the DT
earthquake NN
made VBD
the DT
World NNP
Series NNP
seem VB
unimportant JJ
. .

My PRP$
response NN
was VBD
that IN
sports NNS
rarely RB
are VBP
important JJ
, ,
only RB
diverting VBG
, ,
and CC
the DT
quake NN
merely RB
highlighted VBD
that DT
fact NN
. .

Should MD
the DT
rest NN
of IN
the DT
Series NNP
be VB
played VBN
at IN
all DT
? .

Sure RB
. .

The DT
quake NN
and CC
baseball NN
were VBD
n't RB
related VBN
, ,
unlike IN
the DT
massacre NN
of IN
athletes NNS
that WDT
attended VBD
the DT
1972 CD
Olympics NNPS
. .

That DT
heavily RB
politicized VBN
event NN
learned VBD
nothing NN
from IN
the DT
horrifying JJ
experience NN
, ,
and CC
seems VBZ
doomed VBN
to TO
repeat VB
it PRP
. .

Two CD
ironies NNS
intrude VBP
. .

This DT
has VBZ
been VBN
widely RB
dubbed VBN
the DT
BART NNP
Series NNP
, ,
after IN
the DT
local JJ
subway NN
line NN
, ,
and CC
the DT
Bay NNP
Bridge NNP
Series NNP
. .

Flags NNS
fly VBP
at IN
half-staff JJ
for IN
the DT
death NN
of IN
Bart NNP
Giamatti NNP
, ,
the DT
late JJ
baseball NN
commissioner NN
, ,
and CC
now RB
the DT
Bay NNP
Bridge NNP
lies VBZ
in IN
ruins NNS
. .

A DT
Series NNP
that WDT
was VBD
shaping VBG
up IN
as IN
the DT
dullest JJS
since IN
the DT
one-sided JJ
Detroit-over-San JJ
Diego NNP
go VB
of IN
1984 CD
has VBZ
become VBN
memorable JJ
in IN
the DT
least JJS
fortunate JJ
way NN
. .

Still RB
, ,
its PRP$
edge NN
is VBZ
lost VBN
. .

It PRP
now RB
will MD
be VB
played VBN
mostly RB
for IN
the DT
record NN
, ,
and CC
should MD
be VB
wrapped VBN
up IN
as RB
quickly RB
as IN
possible JJ
, ,
without IN
`` ``
off IN
'' ''
days NNS
. .

And CC
I PRP
will MD
never RB
again RB
complain VB
about IN
a DT
rainout NN
. .

The DT
disarray NN
in IN
the DT
junk-bond NN
market NN
that WDT
began VBD
last JJ
month NN
with IN
a DT
credit NN
crunch NN
at IN
Campeau NNP
Corp. NNP
has VBZ
offered VBN
commercial JJ
banks NNS
a DT
golden JJ
opportunity NN
to TO
play VB
a DT
greater JJR
role NN
in IN
financing VBG
billion-dollar JJ
takeovers NNS
. .

But CC
two CD
big JJ
New NNP
York NNP
banks NNS
seem VBP
to TO
have VB
kicked VBN
those DT
chances NNS
away RB
, ,
for IN
the DT
moment NN
, ,
with IN
the DT
embarrassing JJ
failure NN
of IN
Citicorp NNP
and CC
Chase NNP
Manhattan NNP
Corp. NNP
to TO
deliver VB
$ $
7.2 CD
billion CD
in IN
bank NN
financing NN
for IN
a DT
leveraged JJ
buy-out NN
of IN
United NNP
Airlines NNPS
parent NN
UAL NNP
Corp NNP
. .

For IN
more JJR
than IN
a DT
decade NN
, ,
banks NNS
have VBP
been VBN
pressing VBG
Congress NNP
and CC
banking NN
regulators NNS
for IN
expanded VBN
powers NNS
to TO
act VB
like IN
securities NNS
firms NNS
in IN
playing VBG
Wall NNP
Street NNP
's POS
lucrative JJ
takeover NN
game NN
, ,
from IN
giving VBG
mergers NNS
advice NN
all PDT
the DT
way NN
to TO
selling VBG
and CC
trading NN
high-yield JJ
junk NN
bonds NNS
. .

Those DT
expanded VBN
powers NNS
reached VBD
their PRP$
zenith NN
in IN
July NNP
when WRB
Bankers NNP
Trust NNP
New NNP
York NNP
Corp. NNP
provided VBD
mergers NNS
advice NN
, ,
an DT
equity NN
investment NN
and CC
bank NN
loans NNS
for IN
the DT
$ $
3.65 CD
billion CD
leveraged JJ
buy-out NN
of IN
Northwest NNP
Airlines NNPS
parent NN
NWA NNP
Inc NNP
. .

One CD
of IN
the DT
major JJ
selling NN
points NNS
used VBN
by IN
Los NNP
Angeles NNP
financier NN
Alfred NNP
Checchi NNP
in IN
getting VBG
the DT
takeover NN
approved VBD
was VBD
that IN
the DT
deal NN
did VBD
n't RB
include VB
any DT
junk NN
bonds NNS
. .

That DT
was VBD
seen VBN
as IN
an DT
advantage NN
in IN
lobbying VBG
airline NN
employees NNS
and CC
Washington NNP
regulators NNS
for IN
approval NN
of IN
the DT
contested VBN
takeover NN
. .

All DT
$ $
3.35 CD
billion CD
in IN
debt NN
for IN
the DT
deal NN
was VBD
supplied VBN
by IN
banks NNS
. .

Charles NNP
Nathan NNP
, ,
co-head NN
of IN
mergers NNS
and CC
acquisitions NNS
at IN
Salomon NNP
Brothers NNP
Inc. NNP
, ,
says VBZ
it PRP
is VBZ
natural JJ
for IN
banks NNS
to TO
try VB
to TO
expand VB
beyond IN
their PRP$
bread-and-butter JJ
business NN
of IN
providing VBG
senior JJ
debt NN
for IN
buy-outs NNS
. .

But CC
the DT
UAL NNP
collapse NN
, ,
he PRP
says VBZ
, ,
`` ``
may MD
tell VB
you PRP
it PRP
's VBZ
not RB
going VBG
to TO
work VB
that IN
easily RB
. .
'' ''

David NNP
Batchelder NNP
, ,
a DT
mergers NNS
adviser NN
in IN
La NNP
Jolla NNP
, ,
Calif. NNP
, ,
who WP
aided VBD
Los NNP
Angeles NNP
investor NN
Marvin NNP
Davis NNP
on IN
the DT
bids NNS
which WDT
put VBP
both DT
UAL NNP
and CC
NWA NNP
in IN
play NN
as IN
takeover NN
candidates NNS
this DT
year NN
, ,
says VBZ
that IN
banks NNS
have VBP
been VBN
`` ``
preparing VBG
to TO
play VB
a DT
larger JJR
and CC
larger JJR
role NN
in IN
acquisition NN
financing NN
. .
'' ''

Mr. NNP
Batchelder NNP
says VBZ
that IN
in IN
the DT
past NN
, ,
banks NNS
would MD
normally RB
have VB
loaned VBN
65 CD
% NN
of IN
a DT
total JJ
buy-out NN
price NN
, ,
with IN
the DT
loans NNS
secured VBN
by IN
the DT
target NN
company NN
's POS
assets NNS
. .

Another DT
20 CD
% NN
of IN
the DT
borrowed VBN
funds NNS
would MD
come VB
from IN
the DT
sale NN
to TO
investors NNS
of IN
junk NN
bonds NNS
, ,
which WDT
offer VBP
less JJR
security NN
and CC
typically RB
carry VB
higher JJR
yields NNS
than IN
bank NN
loans NNS
. .

Mr. NNP
Checchi NNP
's POS
purchase NN
of IN
NWA NNP
, ,
Mr. NNP
Batchelder NNP
notes VBZ
, ,
`` ``
was VBD
probably RB
the DT
most RBS
aggressive JJ
to TO
date VB
, ,
'' ''
with IN
bank NN
debt NN
at IN
85 CD
% NN
of IN
the DT
purchase NN
price NN
. .

But CC
Mr. NNP
Batchelder NNP
says VBZ
that IN
Citicorp NNP
's POS
`` ``
failure NN
to TO
deliver VB
'' ''
on IN
its PRP$
promise NN
to TO
raise VB
the DT
UAL NNP
bank NN
debt NN
for IN
a DT
labor-management JJ
buy-out NN
group NN
`` ``
is VBZ
very RB
distressing JJ
to TO
potential JJ
users NNS
of IN
a DT
` ``
highly-confident JJ
' ''
letter NN
from IN
commercial JJ
banks NNS
. .
'' ''

His PRP$
client NN
, ,
Mr. NNP
Davis NNP
, ,
used VBD
just RB
such JJ
a DT
letter NN
from IN
Citicorp NNP
in IN
pursuing VBG
UAL NNP
; :
Citicorp NNP
later RB
agreed VBD
to TO
work VB
with IN
a DT
competing VBG
UAL NNP
buy-out NN
group NN
. .

Executives NNS
of IN
Citicorp NNP
and CC
Chase NNP
Manhattan NNP
declined VBD
to TO
comment VB
on IN
either DT
the DT
UAL NNP
situation NN
, ,
or CC
on IN
the DT
changing VBG
nature NN
of IN
banks NNS
' POS
role NN
in IN
financing NN
takeovers NNS
. .

In IN
the DT
wake NN
of IN
Campeau NNP
's POS
problems NNS
, ,
prices VBZ
of IN
junk NN
bonds NNS
tumbled VBD
, ,
throwing VBG
into IN
doubt NN
the DT
ability NN
of IN
corporate JJ
acquirers NNS
to TO
finance VB
large JJ
takeovers NNS
with IN
the DT
help NN
of IN
junk NN
bond NN
sales NNS
. .

Mark NNP
Solow NNP
, ,
senior JJ
managing NN
director NN
at IN
Manufacturers NNP
Hanover NNP
Trust NNP
Co. NNP
, ,
says VBZ
the DT
falloff NN
in IN
junk NN
bonds NNS
may MD
yet RB
open JJ
new JJ
business NN
opportunities NNS
to TO
banks NNS
in IN
structuring VBG
takeovers NNS
. .

But CC
he PRP
warns VBZ
that IN
banks NNS
will MD
have VB
`` ``
to TO
have VB
enough JJ
discipline NN
'' ''
not RB
to TO
make VB
loans NNS
that WDT
are VBP
too RB
risky JJ
. .

In IN
fact NN
, ,
Manufacturers NNP
Hanover NNP
said VBD
in IN
its PRP$
third-quarter JJ
earnings NNS
report NN
that IN
fees NNS
from IN
syndicating VBG
loans NNS
to TO
other JJ
banks NNS
dropped VBD
48 CD
% NN
, ,
to TO
$ $
21 CD
million CD
. .

`` ``
We PRP
did VBD
n't RB
take VB
part NN
in IN
a DT
lot NN
of IN
deals NNS
because IN
their PRP$
credit NN
quality NN
was VBD
poor JJ
, ,
'' ''
says VBZ
a DT
bank NN
spokesman NN
. .

James NNP
B. NNP
Lee NNP
, ,
head NN
of IN
syndications NNS
and CC
private JJ
placements NNS
at IN
Chemical NNP
Banking NNP
Corp. NNP
, ,
said VBD
he PRP
believes VBZ
banks NNS
can MD
still RB
make VB
a DT
credible JJ
offer NN
of IN
one-stop JJ
shopping NN
for IN
takeover NN
finance NN
. .

As IN
evidence NN
, ,
he PRP
cites VBZ
yesterday NN
's POS
arrangement NN
for IN
the DT
final JJ
financing NN
of IN
a DT
$ $
3 CD
billion CD
bid NN
for IN
American NNP
Medical NNP
International NNP
Inc. NNP
in IN
which WDT
Chemical NNP
served VBD
as IN
both DT
the DT
lead NN
bank NN
and CC
an DT
equity NN
investor NN
. .

Beyond IN
the DT
current JJ
weakness NN
in IN
the DT
junk NN
bond NN
market NN
, ,
banks NNS
have VBP
another DT
advantage NN
over IN
investment NN
banks NNS
in IN
financing NN
contested VBD
takeovers NNS
. .

Arthur NNP
Fleischer NNP
Jr. NNP
, ,
a DT
takeover NN
lawyer NN
at IN
Fried NNP
Frank NNP
Harris NNP
Shriver NNP
& CC
Jacobson NNP
, ,
notes VBZ
that IN
`` ``
a DT
political JJ
and CC
emotional JJ
bias NN
'' ''
has VBZ
developed VBN
against IN
junk NN
bonds NNS
. .

One CD
hostile JJ
bidder NN
who WP
deliberately RB
avoided VBN
using VBG
junk NN
bonds NNS
was VBD
Paramount NNP
Communications NNP
Inc. NNP
in IN
its PRP$
initial JJ
offer NN
to TO
acquire VB
Time NNP
Inc. NNP
for IN
$ $
10.7 CD
billion CD
, ,
or CC
$ $
175 CD
a DT
share NN
. .

A DT
Paramount NNP
spokesman NN
says VBZ
that DT
decision NN
was VBD
based VBN
on IN
the DT
financial JJ
, ,
not RB
political JJ
, ,
drawbacks NNS
of IN
junk NN
bonds NNS
. .

But CC
some DT
observers NNS
believe VBP
Paramount NNP
Chairman NNP
Martin NNP
Davis NNP
wanted VBD
to TO
avoid VB
the DT
possible JJ
taint NN
of IN
being VBG
perceived VBN
as IN
a DT
corporate JJ
raider NN
in IN
his PRP$
controversial JJ
bid NN
for IN
Time NNP
. .

In IN
the DT
end NN
, ,
Mr. NNP
Davis NNP
used VBD
junk NN
bonds NNS
so RB
that IN
he PRP
could MD
raise VB
Paramount NNP
's POS
bid NN
to TO
$ $
200 CD
a DT
share NN
. .

Some DT
Monday-morning JJ
quarterbacks NNS
said VBD
the DT
initial JJ
lower JJR
bid NN
, ,
without IN
junk NN
bonds NNS
, ,
was VBD
a DT
factor NN
in IN
his PRP$
losing NN
the DT
company NN
. .

Time NNP
eluded VBD
Paramount NNP
by IN
acquiring VBG
Warner NNP
Communications NNP
Inc NNP
. .

The DT
success NN
of IN
the DT
NWA NNP
financing NN
, ,
and CC
the DT
failure NN
of IN
the DT
UAL NNP
deal NN
, ,
also RB
seem VB
to TO
highlight VB
the DT
important JJ
new JJ
role NN
in IN
takeover NN
financing NN
being VBG
played VBN
by IN
Japanese JJ
banks NNS
. .

Japanese JJ
banks NNS
accounted VBD
for IN
50 CD
% NN
of IN
the DT
NWA NNP
bank NN
debt NN
, ,
according VBG
to TO
a DT
report NN
by IN
Transportation NNP
Secretary NNP
Samuel NNP
Skinner NNP
. .

But CC
it PRP
was VBD
broad-scale JJ
rejection NN
by IN
Japanese JJ
banks NNS
that WDT
helped VBD
seal NN
the DT
fate NN
of IN
the DT
attempt NN
to TO
buy VB
UAL NNP
. .

Citicorp NNP
and CC
Chase NNP
are VBP
attempting VBG
to TO
put VB
together RB
a DT
new JJ
, ,
lower JJR
bid NN
. .

Takanori NNP
Mizuno NNP
, ,
chief JJ
economist NN
of IN
the DT
Institute NNP
for IN
Financial NNP
Affairs NNP
Inc. NNP
, ,
a DT
Tokyo NNP
research NN
center NN
on IN
finance NN
and CC
economics NNS
, ,
says VBZ
, ,
`` ``
The DT
junk NN
bond NN
market NN
became VBD
very RB
jittery JJ
, ,
and CC
there EX
's VBZ
a DT
fear NN
of IN
a DT
coming VBG
recession NN
and CC
the DT
possible JJ
bankruptcy NN
of IN
LBO NNP
companies NNS
. .

Harley-Davidson NNP
Inc. NNP
filed VBD
suit NN
in IN
federal JJ
court NN
here RB
, ,
alleging VBG
that IN
a DT
group NN
that WDT
holds VBZ
6.2 CD
% NN
of IN
its PRP$
stock NN
made VBN
`` ``
false JJ
, ,
deceptive JJ
and CC
misleading JJ
'' ''
statements NNS
in IN
recent JJ
regulatory JJ
filings NNS
and CC
public JJ
announcements NNS
. .

Harley-Davidson NNP
's POS
complaint NN
claims NNS
that IN
the DT
group NN
, ,
led VBN
by IN
investor NN
Malcolm NNP
I. NNP
Glazer NNP
, ,
violated VBD
securities NNS
laws NNS
by IN
failing VBG
to TO
disclose VB
plans NNS
to TO
purchase VB
15 CD
% NN
of IN
the DT
company NN
's POS
shares NNS
outstanding JJ
and CC
that IN
when WRB
the DT
required VBN
Hart-Scott-Rodino NNP
filing NN
eventually RB
was VBD
made VBN
, ,
it PRP
did VBD
n't RB
disclose VB
the DT
group NN
's POS
alleged VBN
earlier JJR
violation NN
of IN
the DT
so-called JJ
prior-notice JJ
requirements NNS
of IN
the DT
law NN
. .

Mr. NNP
Glazer NNP
could MD
n't RB
immediately RB
be VB
reached VBN
to TO
comment VB
. .

But CC
when WRB
Harley NNP
last JJ
week NN
publicly RB
questioned VBD
the DT
legality NN
of IN
the DT
group NN
's POS
filing NN
procedures NNS
, ,
the DT
Rochester NNP
, ,
N.Y. NNP
, ,
investor NN
said VBD
`` ``
we PRP
complied VBD
with IN
every DT
law NN
, ,
'' ''
and CC
he PRP
denied VBD
any DT
wrongdoing NN
. .

The DT
Glazer NNP
group NN
said VBD
in IN
a DT
Securities NNP
and CC
Exchange NNP
Commission NNP
filing NN
in IN
early JJ
October NNP
that IN
it PRP
may MD
seek VB
a DT
controlling VBG
interest NN
in IN
Harley-Davidson NNP
, ,
or CC
seek VB
representation NN
on IN
the DT
company NN
's POS
board NN
. .

Harley NNP
has VBZ
said VBD
it PRP
does VBZ
n't RB
intend VB
to TO
be VB
acquired VBN
by IN
the DT
Glazer NNP
group NN
or CC
any DT
other JJ
party NN
. .

Inland NNP
Steel NNP
Industries NNP
Inc. NNP
, ,
battered VBN
by IN
lower JJR
volume NN
and CC
higher JJR
costs NNS
, ,
posted VBD
a DT
75 CD
% NN
drop NN
in IN
third-quarter JJ
earnings NNS
. .

The DT
nation NN
's POS
fourth-largest JJ
steelmaker NN
earned VBD
$ $
18.3 CD
million CD
, ,
or CC
43 CD
cents NNS
a DT
share NN
, ,
compared VBN
with IN
$ $
61 CD
million CD
, ,
or CC
$ $
1.70 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
, ,
when WRB
the DT
industry NN
was VBD
enjoying VBG
peak NN
demand NN
and CC
strong JJ
pricing NN
. .

Sales NNS
fell VBD
to TO
$ $
981.2 CD
million CD
from IN
$ $
1.02 CD
billion CD
. .

The DT
earnings NNS
also RB
mark VBP
a DT
significant JJ
drop NN
from IN
the DT
second JJ
quarter NN
's POS
$ $
45.3 CD
million CD
or CC
$ $
1.25 CD
a DT
share NN
. .

Moreover RB
, ,
the DT
earnings NNS
were VBD
well RB
below IN
analysts NNS
' POS
expectations NNS
of IN
about RB
$ $
1.16 CD
a DT
share NN
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
Inland NNP
closed VBD
yesterday NN
at IN
$ $
35.875 CD
a DT
share NN
, ,
down RB
$ $
1 CD
. .

The DT
company NN
attributed VBD
the DT
earnings NNS
drop NN
to TO
lower JJR
volume NN
related VBN
to TO
seasonal JJ
demand NN
and CC
the DT
soft JJ
consumer NN
durable JJ
market NN
, ,
especially RB
in IN
the DT
automotive JJ
sector NN
. .
However RB
, ,
the DT
company NN
also RB
lost VBD
orders NNS
because IN
of IN
prolonged VBN
labor NN
talks NNS
in IN
the DT
second JJ
quarter NN
. .

Third-quarter JJ
shipments NNS
slipped VBD
7 CD
% NN
from IN
the DT
year-ago JJ
period NN
, ,
and CC
17 CD
% NN
from IN
this DT
year NN
's POS
second JJ
quarter NN
. .

Profit NN
of IN
steel NN
shipped VBN
for IN
the DT
company NN
's POS
steel NN
segment NN
slid VBD
to TO
$ $
26 CD
a DT
ton NN
, ,
from IN
$ $
66 CD
a DT
ton NN
a DT
year NN
earlier RBR
and CC
$ $
57 CD
a DT
ton NN
a DT
quarter NN
earlier RBR
. .

Analysts NNS
noted VBD
that IN
the DT
disappointing JJ
results NNS
do VBP
n't RB
reflect VB
lower JJR
prices NNS
for IN
steel NN
products NNS
. .

Charles NNP
Bradford NNP
, ,
an DT
analyst NN
with IN
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
, ,
said VBD
higher JJR
prices NNS
for IN
galvanized JJ
and CC
cold-rolled JJ
products NNS
offset VBP
lower JJR
prices NNS
for IN
bar NN
, ,
hot-rolled JJ
and CC
structural JJ
steel NN
. .

Structural JJ
steel NN
, ,
which WDT
primarily RB
serves VBZ
the DT
construction NN
market NN
, ,
was VBD
especially RB
hurt VBN
by IN
a DT
15 CD
% NN
price NN
drop NN
, ,
Mr. NNP
Bradford NNP
said VBD
. .

The DT
company NN
said VBD
its PRP$
integrated VBN
steel NN
sector NN
was VBD
also RB
hurt VBN
by IN
higher JJR
raw JJ
material NN
, ,
repair NN
and CC
maintenance NN
, ,
and CC
labor NN
costs NNS
. .

The DT
increased VBN
labor NN
costs NNS
became VBD
effective JJ
Aug. NNP
1 CD
under IN
terms NNS
of IN
the DT
four-year JJ
labor NN
agreement NN
with IN
the DT
United NNP
Steelworkers NNPS
union NN
. .

Meanwhile RB
, ,
the DT
company NN
's POS
service NN
center NN
segment NN
, ,
which WDT
saw VBD
operating VBG
profit NN
drop NN
to TO
$ $
11.5 CD
million CD
from IN
$ $
30.7 CD
million CD
a DT
year NN
ago RB
, ,
experienced VBN
much NN
of IN
the DT
same JJ
demand NN
and CC
cost NN
problems NNS
, ,
as RB
well RB
as IN
start-up JJ
costs NNS
associated VBN
with IN
a DT
coil NN
processing NN
facility NN
in IN
Chicago NNP
and CC
an DT
upgraded VBN
computer NN
information NN
system NN
. .

Inland NNP
Chairman NNP
Frank NNP
W. NNP
Luerssen NNP
said VBD
the DT
company NN
's POS
short-term JJ
outlook NN
is VBZ
`` ``
clouded VBN
by IN
uncertainties NNS
in IN
the DT
economy NN
and CC
financial JJ
markets NNS
. .
'' ''

However RB
, ,
he PRP
noted VBD
that DT
steel NN
mill NN
bookings NNS
are VBP
up IN
from IN
early JJ
summer NN
levels NNS
, ,
and CC
that IN
he PRP
expects VBZ
the DT
company NN
to TO
improve VB
its PRP$
cost NN
performance NN
in IN
the DT
fourth JJ
quarter NN
. .

In IN
the DT
first JJ
nine CD
months NNS
, ,
profit NN
was VBD
$ $
113 CD
million CD
, ,
or CC
$ $
3.04 CD
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
3.19 CD
billion CD
, ,
compared VBN
with IN
$ $
204.5 CD
million CD
, ,
or CC
$ $
5.76 CD
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
3.03 CD
billion CD
, ,
a DT
year NN
earlier RBR
. .
The DT
`` ``
seismic JJ
'' ''
activity NN
of IN
a DT
financial JJ
market NN
bears VBZ
a DT
resemblance NN
to TO
the DT
seismic JJ
activity NN
of IN
the DT
earth NN
. .

When WRB
things NNS
are VBP
quiet JJ
-LRB- (
low JJ
volatility NN
-RRB- )
, ,
the DT
structures NNS
on IN
which WDT
markets NNS
stand VBP
can MD
be VB
relatively RB
inefficient JJ
and CC
still RB
perform VB
their PRP$
functions NNS
adequately RB
. .

However RB
, ,
when WRB
powerful JJ
forces NNS
start VBP
shaking VBG
the DT
market NN
's POS
structure NN
, ,
the DT
more JJR
`` ``
earthquake-resistant JJ
'' ''
it PRP
is VBZ
, ,
the DT
better JJR
its PRP$
chance NN
for IN
survival NN
. .

America NNP
's POS
financial JJ
markets NNS
do VBP
not RB
yet RB
have VB
all PDT
the DT
required VBN
modern JJ
features NNS
required VBN
to TO
make VB
them PRP
fully RB
`` ``
aftershock-resistant JJ
. .
'' ''

Investors NNS
lack VBP
equal JJ
access NN
to TO
the DT
markets NNS
' POS
trading NN
arena NN
and CC
its PRP$
information NN
. .

That DT
structural JJ
lack NN
is VBZ
crucial JJ
because IN
investors NNS
are VBP
the DT
only JJ
source NN
of IN
market NN
liquidity NN
. .

And CC
liquidity NN
is VBZ
what WP
markets VBZ
need VBP
to TO
damp VB
quakes NNS
and CC
aftershocks NNS
. .

In IN
today NN
's POS
markets NNS
, ,
specialists NNS
-LRB- (
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
-RRB- )
and CC
`` ``
upstairs NN
'' ''
market NN
makers NNS
-LRB- (
in IN
the DT
over-the-counter JJ
market NN
-RRB- )
are VBP
the DT
only JJ
market NN
participants NNS
allowed VBN
to TO
play VB
a DT
direct JJ
role NN
in IN
the DT
price-determination JJ
process NN
. .

When WRB
they PRP
halt VBP
trading VBG
, ,
all DT
market NN
liquidity NN
is VBZ
gone VBN
. .

And CC
when WRB
any DT
component NN
of IN
the DT
market NN
-- :
cash NN
, ,
futures NNS
or CC
options NNS
-- :
loses VBZ
liquidity NN
, ,
the DT
price NN
discovery NN
system NN
-LRB- (
the DT
way NN
prices NNS
are VBP
determined VBN
-RRB- )
becomes VBZ
flawed JJ
or CC
is VBZ
lost VBN
entirely RB
for IN
a DT
time NN
. .

Last NNP
Friday NNP
the DT
13th JJ
-LRB- (
as RB
well RB
as IN
two CD
years NNS
ago RB
this DT
week NN
-RRB- )
the DT
markets NNS
became VBD
unlinked JJ
. .

When WRB
that WDT
happened VBD
, ,
`` ``
seismic JJ
'' ''
tremors NNS
of IN
fear NN
-- :
much JJ
like IN
the DT
shock NN
waves NNS
created VBN
by IN
an DT
earthquake NN
-- :
coursed VBN
through IN
the DT
market NN
and CC
increased VBD
the DT
market NN
's POS
volatility NN
. .

Lack NN
of IN
important JJ
, ,
needed VBN
information NN
can MD
cause VB
fear NN
. .

Fear NN
is VBZ
the DT
father NN
of IN
panic NN
. .

Panic NN
frequently RB
results VBZ
in IN
irrational JJ
behavior NN
. .

And CC
in IN
financial JJ
markets NNS
, ,
irrational JJ
behavior NN
is VBZ
sometimes RB
translated VBN
into IN
catastrophe NN
. .

When WRB
market NN
tremors NNS
start VBP
, ,
it PRP
is VBZ
crucial JJ
that IN
as IN
much JJ
information NN
about IN
transaction NN
prices NNS
and CC
the DT
supply-demand JJ
curve NN
-LRB- (
buy VB
and CC
sell VB
orders NNS
at IN
various JJ
prices NNS
-RRB- )
be VB
made VBN
available JJ
to TO
all DT
, ,
not RB
just RB
to TO
market VB
makers NNS
. .

Because IN
of IN
a DT
lack NN
of IN
information NN
and CC
access NN
, ,
many JJ
investors NNS
-- :
including VBG
the DT
very JJ
ones NNS
whose WP$
buying VBG
power NN
could MD
restore VB
stability NN
and CC
damp VB
volatility NN
-- :
are VBP
forced VBN
to TO
stand VB
on IN
the DT
sidelines NNS
when WRB
they PRP
are VBP
most RBS
needed VBN
, ,
because IN
of IN
their PRP$
ignorance NN
of IN
important JJ
market NN
information NN
. .

To TO
add VB
aftershock-damping JJ
power NN
to TO
America NNP
's POS
markets NNS
, ,
a DT
modern NN
, ,
electronic JJ
trading NN
system NN
should MD
be VB
implemented VBN
that WDT
permits VBZ
equal JJ
access NN
to TO
the DT
trading NN
arena NN
-LRB- (
and CC
the DT
information NN
that WDT
would MD
automatically RB
accompany VB
such JJ
access NN
-RRB- )
by IN
investors NNS
-- :
particularly RB
institutional JJ
investors NNS
. .

Contrary JJ
to TO
some DT
opinions NNS
, ,
the DT
trading NN
activities NNS
of IN
specialists NNS
and CC
other JJ
market NN
makers NNS
do VBP
not RB
provide VB
liquidity NN
to TO
the DT
market NN
as IN
a DT
whole NN
. .

What WP
market NN
makers NNS
provide VBP
is VBZ
immediacy NN
, ,
a DT
very RB
valuable JJ
service NN
. .

Liquidity NN
is VBZ
not RB
a DT
service NN
. .

It PRP
is VBZ
a DT
market NN
attribute VBP
-- :
the DT
ability NN
to TO
absorb VB
selling VBG
orders NNS
without IN
causing VBG
significant JJ
price NN
changes NNS
in IN
the DT
absence NN
of IN
news NN
. .

Market NN
makers NNS
buy VBP
what WP
investors NNS
wish VBP
to TO
sell VB
; :
their PRP$
business NN
is VBZ
reselling VBG
these DT
unwanted JJ
positions NNS
as RB
quickly RB
as IN
possible JJ
to TO
other JJ
investors NNS
, ,
and CC
at IN
a DT
profit NN
. .

As IN
a DT
result NN
, ,
while IN
any DT
one CD
customer NN
may MD
purchase VB
immediacy NN
by IN
selling VBG
to TO
a DT
market NN
maker NN
-LRB- (
which WDT
is VBZ
micro-liquidity NN
for IN
the DT
investor NN
-RRB- )
, ,
the DT
market NN
as IN
a DT
whole JJ
remains NNS
in IN
the DT
same JJ
circumstances NNS
it PRP
was VBD
before IN
the DT
transaction NN
: :
The DT
unwanted JJ
position NN
is VBZ
still RB
an DT
unwanted JJ
position NN
; :
only RB
the DT
identity NN
of IN
the DT
seller NN
has VBZ
changed VBN
. .

In IN
fact NN
it PRP
can MD
be VB
argued VBN
that IN
increasing VBG
capital NN
commitments NNS
by IN
market NN
makers NNS
-LRB- (
a DT
result NN
of IN
some DT
post-1987 JJ
crash NN
studies NNS
-RRB- )
also RB
increases NNS
market NN
volatility NN
, ,
since IN
the DT
more JJR
securities NNS
are VBP
held VBN
by IN
market NN
makers NNS
at IN
any DT
given VBN
time NN
, ,
the DT
more JJR
selling VBG
pressure NN
is VBZ
overhanging VBG
the DT
market NN
. .

In IN
an DT
open JJ
electronic JJ
system NN
, ,
any DT
investor NN
wishing VBG
to TO
pay VB
for IN
real-time JJ
access NN
to TO
the DT
trading NN
arena NN
through IN
a DT
registered VBN
broker-dealer NN
would MD
be VB
able JJ
to TO
see VB
the DT
entire JJ
supply-demand JJ
curve NN
-LRB- (
buy VB
and CC
sell VB
orders NNS
at IN
each DT
price NN
-RRB- )
entered VBN
by IN
dealers NNS
and CC
investors NNS
alike RB
, ,
and CC
to TO
enter VB
and CC
execute VB
orders NNS
. .

Current JJ
quotations NNS
would MD
reflect VB
the DT
combined VBN
financial JJ
judgment NN
of IN
all DT
market NN
participants NNS
-- :
not RB
just RB
those DT
of IN
intermediaries NNS
who WP
become VBP
extremely RB
risk-averse JJ
during IN
times NNS
of IN
crisis NN
. .

Investors NNS
and CC
professionals NNS
alike RB
would MD
compete VB
on IN
the DT
level NN
playing VBG
field NN
Congress NNP
sought VBD
and CC
called VBD
a DT
`` ``
national JJ
market NN
system NN
'' ''
-LRB- (
not RB
yet RB
achieved VBN
-RRB- )
almost RB
15 CD
years NNS
ago RB
when WRB
it PRP
passed VBD
the DT
Securities NNP
Reform NNP
Act NNP
of IN
1975 CD
. .

Last NNP
Friday NNP
's POS
market NN
gyrations NNS
did VBD
not RB
result VB
in IN
severe JJ
`` ``
aftershocks NNS
. .
'' ''

Were VBD
we PRP
smart JJ
or CC
just RB
lucky JJ
? .
I PRP
'm VBP
not RB
certain JJ
. .

But CC
I PRP
am VBP
sure JJ
we PRP
need VBP
to TO
maximize VB
our PRP$
`` ``
earthquake NN
'' ''
protection NN
by IN
making VBG
certain JJ
that IN
our PRP$
market NN
structures NNS
let VBP
investors NNS
add VBP
their PRP$
mighty JJ
shock-damping JJ
power NN
to TO
our PRP$
nation NN
's POS
markets NNS
. .

Mr. NNP
Peake NNP
is VBZ
chairman NN
of IN
his PRP$
own JJ
consulting NN
company NN
in IN
Englewood NNP
, ,
N.J NNP
. .

NOW RB
YOU PRP
SEE VBP
IT PRP
, ,
now RB
you PRP
do VBP
n't RB
. .

The DT
recession NN
, ,
that WDT
is VBZ
. .

The DT
economy NN
's POS
stutter NN
steps NNS
leave VBP
investors NNS
wondering VBG
whether IN
things NNS
are VBP
slowing VBG
down RB
or CC
speeding VBG
up RB
. .

So RB
often RB
are VBP
government NN
statistics NNS
revised VBN
that IN
they PRP
seem VBP
to TO
resemble VB
a DT
spinning VBG
weather NN
vane NN
. .

For IN
the DT
past JJ
seven CD
years NNS
, ,
investors NNS
have VBP
had VBN
the DT
wind NN
at IN
their PRP$
backs NNS
, ,
in IN
the DT
form NN
of IN
a DT
generally RB
growing VBG
economy NN
. .

Some DT
may MD
have VB
forgotten VBN
-- :
and CC
some DT
younger JJR
ones NNS
may MD
never RB
have VB
experienced VBN
-- :
what WP
it PRP
's VBZ
like VB
to TO
invest VB
during IN
a DT
recession NN
. .

Different JJ
tactics NNS
are VBP
called VBN
for IN
, ,
as IN
losing VBG
money NN
becomes VBZ
easier JJR
and CC
making VBG
money NN
becomes VBZ
tougher JJR
. .

For IN
those DT
investors NNS
who WP
believe VBP
-- :
or CC
fear NN
-- :
that IN
1990 CD
will MD
be VB
a DT
recession NN
year NN
, ,
many JJ
economists NNS
and CC
money NN
managers NNS
agree VBP
on IN
steps NNS
that WDT
can MD
be VB
taken VBN
to TO
lower JJR
the DT
risks NNS
in IN
a DT
portfolio NN
. .

In IN
a DT
nutshell NN
, ,
pros NNS
advise VBP
investors NNS
who WP
expect VBP
a DT
slowdown NN
to TO
hold VB
fewer JJR
stocks NNS
than IN
usual JJ
and CC
to TO
favor VB
shares NNS
of IN
big JJ
companies NNS
in IN
`` ``
defensive JJ
'' ''
industries NNS
. .

A DT
heavy JJ
dose NN
of IN
cash NN
is VBZ
prescribed VBN
, ,
along IN
with IN
a DT
heavier-than-usual JJ
allotment NN
to TO
bonds NNS
-- :
preferably RB
government NN
bonds NNS
. .

It PRP
's VBZ
tempting JJ
to TO
think VB
these DT
defensive JJ
steps NNS
can MD
be VB
delayed VBN
until IN
a DT
recession NN
is VBZ
clearly RB
at IN
hand NN
. .

But CC
that DT
may MD
not RB
be VB
possible JJ
, ,
because IN
recessions NNS
often RB
take VBP
investors NNS
by IN
surprise NN
. .

`` ``
They PRP
always RB
seem VBP
to TO
come VB
a DT
bit NN
later RB
than IN
you PRP
expect VBP
. .

When WRB
they PRP
do VBP
hit VBD
, ,
they PRP
hit VBD
fast RB
, ,
'' ''
says VBZ
David NNP
A. NNP
Wyss NNP
, ,
chief JJ
financial JJ
economist NN
at IN
the DT
Data NNP
Resources NNPS
division NN
of IN
McGraw-Hill NNP
Inc NNP
. .

Though IN
he PRP
himself PRP
does VBZ
n't RB
expect VB
a DT
recession NN
soon RB
, ,
Mr. NNP
Wyss NNP
advises VBZ
people NNS
who WP
do VBP
that IN
`` ``
the DT
best JJS
thing NN
to TO
be VB
in IN
is VBZ
long JJ
that DT
is VBZ
, ,
20-year JJ
to TO
30-year NNP
Treasury NNP
bonds NNS
. .
'' ''

The DT
reason NN
is VBZ
simple JJ
, ,
Mr. NNP
Wyss NNP
says VBZ
: :
`` ``
Interest NN
rates NNS
almost RB
always RB
decline VBP
during IN
recession NN
. .
'' ''

As RB
surely RB
as IN
a DT
seesaw NN
tilts VBZ
, ,
falling VBG
interest NN
rates NNS
force VBP
up IN
the DT
price NN
of IN
previously RB
issued VBN
bonds NNS
. .

They PRP
are VBP
worth RB
more JJR
because IN
they PRP
pay VBP
higher JJR
interest NN
than IN
newly RB
issued VBN
bonds NNS
do VBP
. .

That DT
effect NN
holds VBZ
true JJ
for IN
both DT
short-term JJ
and CC
long-term JJ
bonds NNS
. .

But CC
short-term JJ
bonds NNS
ca MD
n't RB
rise VB
too RB
much JJ
, ,
because IN
everyone NN
knows VBZ
they PRP
will MD
be VB
redeemed VBN
at IN
a DT
preset JJ
price NN
fairly RB
soon RB
. .
Long-term JJ
bonds NNS
, ,
with IN
many JJ
years NNS
left VBN
before IN
maturity NN
, ,
swing NN
more RBR
widely RB
in IN
price NN
. .

But CC
not RB
just RB
any DT
bonds NNS
will MD
do VB
. .

Corporate JJ
bonds NNS
`` ``
are VBP
usually RB
not RB
a DT
good JJ
bet NN
in IN
a DT
recession NN
, ,
'' ''
Mr. NNP
Wyss NNP
says VBZ
. .

As IN
times NNS
get VBP
tougher JJR
, ,
investors NNS
fret VBP
about IN
whether IN
companies NNS
will MD
have VB
enough JJ
money NN
to TO
pay VB
their PRP$
debts NNS
. .

This DT
hurts VBZ
the DT
price NN
of IN
corporate JJ
bonds NNS
. .

Also RB
, ,
he PRP
notes VBZ
, ,
`` ``
most RBS
corporate JJ
bonds NNS
are VBP
callable JJ
. .
'' ''

That DT
means VBZ
that IN
a DT
corporation NN
, ,
after IN
a DT
specified VBN
amount NN
of IN
time NN
has VBZ
passed VBN
, ,
can MD
buy VB
back RB
its PRP$
bonds NNS
by IN
paying VBG
investors NNS
the DT
face NN
value NN
-LRB- (
plus CC
, ,
in IN
some DT
cases NNS
, ,
a DT
sweetener NN
-RRB- )
. .

When WRB
interest NN
rates NNS
have VBP
dropped VBN
, ,
it PRP
makes VBZ
sense NN
for IN
corporations NNS
to TO
do VB
just RB
that IN
; :
they PRP
then RB
save VBP
on IN
interest NN
costs NNS
. .

But CC
the DT
investors NNS
are VBP
left VBN
stranded VBN
with IN
money NN
to TO
reinvest VB
at IN
a DT
time NN
when WRB
interest NN
rates NNS
are VBP
puny JJ
. .

If IN
corporate JJ
bonds NNS
are VBP
bad JJ
in IN
recessions NNS
, ,
junk NN
bonds NNS
are VBP
likely JJ
to TO
be VB
the DT
worst JJS
of IN
all DT
. .

It PRP
's VBZ
an DT
`` ``
absolute JJ
necessity NN
'' ''
to TO
get VB
out IN
of IN
junk NN
bonds NNS
when WRB
a DT
recession NN
is VBZ
in IN
the DT
offing NN
, ,
says VBZ
Avner NNP
Arbel NNP
, ,
professor NN
of IN
finance NN
at IN
Cornell NNP
University NNP
. .

`` ``
Such JJ
bonds NNS
are VBP
very RB
sensitive JJ
to TO
the DT
downside NN
, ,
and CC
this DT
could MD
be VB
a DT
disaster NN
. .
'' ''

Municipal JJ
bonds NNS
are VBP
generally RB
a DT
bit NN
safer JJR
than IN
corporate JJ
bonds NNS
in IN
a DT
recession NN
, ,
but CC
not RB
as RB
safe JJ
as IN
bonds NNS
issued VBN
by IN
the DT
federal JJ
government NN
. .

During IN
an DT
economic JJ
slump NN
, ,
local JJ
tax NN
revenues NNS
often RB
go VBP
down RB
, ,
raising VBG
the DT
risks NNS
associated VBN
with IN
at IN
least JJS
some DT
municipals NNS
. .

And CC
, ,
like IN
corporates NNS
, ,
many JJ
municipal JJ
bonds NNS
are VBP
callable JJ
. .

But CC
a DT
few JJ
experts NNS
, ,
going VBG
against IN
the DT
consensus NN
, ,
do VBP
n't RB
think VB
bonds NNS
would MD
help VB
investors NNS
even RB
if IN
a DT
recession NN
is VBZ
in IN
the DT
offing NN
. .

One CD
of IN
these DT
is VBZ
Jeffrey NNP
L. NNP
Beach NNP
, ,
director NN
of IN
research NN
for IN
Underwood NNP
Neuhaus NNP
& CC
Co. NNP
, ,
a DT
brokerage NN
house NN
in IN
Houston NNP
, ,
who WP
thinks VBZ
that IN
`` ``
we PRP
're VBP
either DT
in NN
a DT
recession NN
or CC
about IN
to TO
go VB
into IN
one CD
. .
'' ''

What WP
's VBZ
more JJR
, ,
he PRP
thinks VBZ
this DT
could MD
be VB
a DT
nastier JJR
recession NN
than IN
usual JJ
: :
`` ``
Once RB
the DT
downturn NN
comes VBZ
, ,
it PRP
's VBZ
going VBG
to TO
be VB
very RB
hard JJ
to TO
reverse VB
. .
'' ''

Investors NNS
, ,
he PRP
advises VBZ
, ,
`` ``
should MD
be VB
cautious JJ
, ,
'' ''
holding VBG
fewer JJR
stocks NNS
than IN
usual JJ
and CC
also RB
shunning VBG
bonds NNS
. .

Because IN
he PRP
sees VBZ
a DT
`` ``
5 NN
% NN
to TO
6 CD
% NN
base NN
rate NN
of IN
inflation NN
in IN
the DT
economy NN
, ,
'' ''
he PRP
doubts VBZ
that IN
interest NN
rates NNS
will MD
fall VB
much JJ
any DT
time NN
soon RB
. .

Instead RB
, ,
Mr. NNP
Beach NNP
says VBZ
, ,
investors NNS
`` ``
probably RB
should MD
be VB
carrying VBG
a DT
very RB
high JJ
level NN
of IN
cash NN
, ,
'' ''
by IN
which WDT
he PRP
means VBZ
such JJ
so-called JJ
cash NN
equivalents NNS
as IN
money-market JJ
funds NNS
and CC
Treasury NNP
bills NNS
. .

Greg NNP
Confair NNP
, ,
president NN
of IN
Sigma NNP
Financial NNP
Inc. NNP
in IN
Allentown NNP
, ,
Pa. NNP
, ,
also RB
recommends VBZ
that IN
investors NNS
go VBP
heavily RB
for IN
cash NN
. .

He PRP
is VBZ
n't RB
sure JJ
a DT
recession NN
is VBZ
coming VBG
, ,
but CC
says VBZ
the DT
other JJ
likely JJ
alternative NN
-- :
reignited VBD
inflation NN
-- :
is VBZ
just RB
as IN
bad NN
. .

`` ``
This DT
late RB
in IN
an DT
expansion NN
, ,
'' ''
the DT
economy NN
tends VBZ
to TO
veer VB
off IN
either DT
into IN
damaging JJ
inflation NN
or CC
into IN
a DT
recession NN
, ,
Mr. NNP
Confair NNP
says VBZ
. .

The DT
Federal NNP
Reserve NNP
Board NNP
's POS
plan NN
for IN
a DT
`` ``
soft JJ
landing NN
, ,
'' ''
he PRP
says VBZ
, ,
requires VBZ
the DT
Fed NNP
to TO
navigate VB
`` ``
an DT
ever-narrowing JJ
corridor NN
. .
'' ''

A DT
soft JJ
landing NN
is VBZ
n't RB
something NN
that WDT
can MD
be VB
achieved VBN
once RB
and CC
for IN
all DT
, ,
Mr. NNP
Confair NNP
adds VBZ
. .

It PRP
has VBZ
to TO
be VB
engineered VBN
over IN
and CC
over IN
again RB
, ,
month NN
after IN
month NN
. .

He PRP
believes VBZ
that IN
the DT
task NN
facing VBG
Fed NNP
Chairman NNP
Alan NNP
Greenspan NNP
is VBZ
so RB
difficult JJ
that IN
it PRP
resembles VBZ
`` ``
juggling VBG
a DT
double-bladed JJ
ax NN
and CC
a DT
buzz NN
saw VBD
. .
'' ''

And CC
, ,
in IN
a DT
sense NN
, ,
that DT
's VBZ
the DT
kind NN
of IN
task NN
individuals NNS
face VBP
in IN
deciding VBG
what WP
to TO
do VB
about IN
stocks NNS
-- :
the DT
mainstay NN
of IN
most RBS
serious JJ
investors NNS
' POS
portfolios NNS
. .

It PRP
comes VBZ
down RB
to TO
a DT
question NN
of IN
whether IN
to TO
try VB
to TO
`` ``
time NN
'' ''
the DT
market NN
. .

For IN
people NNS
who WP
can MD
ride VB
out RP
market NN
waves NNS
through IN
good JJ
times NNS
and CC
bad JJ
, ,
stocks NNS
have VBP
been VBN
rewarding JJ
long-term JJ
investments NNS
. .

Most JJS
studies NNS
show VBP
that IN
buy-and-hold JJ
investors NNS
historically RB
have VBP
earned VBN
an DT
annual JJ
return NN
from IN
stocks NNS
of IN
9 CD
% NN
to TO
10 CD
% NN
, ,
including VBG
both DT
dividends NNS
and CC
price NN
appreciation NN
. .

That DT
's VBZ
well RB
above IN
what WP
bonds NNS
or CC
bank NN
certificates NNS
have VBP
paid VBN
. .

Moreover RB
, ,
because IN
no DT
one CD
knows VBZ
for IN
sure JJ
just RB
when WRB
a DT
recession NN
is VBZ
coming VBG
, ,
some DT
analysts NNS
think VBP
investors NNS
should MD
n't RB
even RB
worry VB
too RB
much JJ
about IN
timing NN
. .

`` ``
Trying VBG
to TO
time VB
the DT
economy NN
is VBZ
a DT
mistake NN
, ,
'' ''
says VBZ
David NNP
Katz NNP
, ,
chief JJ
investment NN
officer NN
of IN
Value NNP
Matrix NNP
Management NNP
Inc. NNP
in IN
New NNP
York NNP
. .

Mr. NNP
Katz NNP
notes VBZ
that IN
some DT
economists NNS
have VBP
been VBN
predicting VBG
a DT
recession NN
for IN
at IN
least JJS
two CD
years NNS
. .

Investors NNS
who WP
listened VBD
, ,
and CC
lightened VBD
up IN
on IN
stocks NNS
, ,
`` ``
have VBP
just RB
hurt VBN
themselves PRP
, ,
'' ''
he PRP
says VBZ
. .

Mr. NNP
Katz NNP
adds VBZ
that IN
people NNS
who WP
jump VBP
in IN
and CC
out IN
of IN
the DT
stock NN
market NN
need NN
to TO
be VB
right NN
about IN
70 CD
% NN
of IN
the DT
time NN
to TO
beat VB
a DT
buy-and-hold JJ
strategy NN
. .

Frequent JJ
trading NN
runs VBZ
up IN
high JJ
commission NN
costs NNS
. .

And CC
the DT
in-and-outer NN
might MD
miss VB
the DT
sudden JJ
spurts NNS
that WDT
account VBP
for IN
much NN
of IN
the DT
stock NN
market NN
's POS
gains NNS
over IN
time NN
. .

Still RB
, ,
few JJ
investors NNS
are VBP
able JJ
to TO
sit VB
tight JJ
when WRB
they PRP
are VBP
convinced VBN
a DT
recession NN
is VBZ
coming VBG
. .

After IN
all DT
, ,
in IN
all DT
five CD
recessions NNS
since IN
1960 CD
, ,
stocks NNS
declined VBD
. .

According VBG
to TO
Ned NNP
Davis NNP
, ,
president NN
of IN
Ned NNP
Davis NNP
Research NNP
Inc. NNP
in IN
Nokomis NNP
, ,
Fla. NNP
, ,
the DT
average JJ
drop NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
was VBD
about IN
21 CD
% NN
, ,
and CC
the DT
decrease NN
began VBD
an DT
average NN
of IN
six CD
months NNS
before IN
a DT
recession NN
officially RB
started VBD
. .

By IN
the DT
time NN
a DT
recession NN
is VBZ
`` ``
official NN
'' ''
-LRB- (
two CD
consecutive JJ
quarters NNS
of IN
declining VBG
gross JJ
national JJ
product NN
-RRB- )
, ,
much NN
of IN
the DT
damage NN
to TO
stocks NNS
has VBZ
already RB
been VBN
done VBN
- :
and CC
, ,
in IN
the DT
typical JJ
case NN
, ,
the DT
recession NN
is VBZ
already RB
half NN
over RB
. .

About IN
six CD
months NNS
before IN
a DT
recession NN
ends NNS
, ,
stocks NNS
typically RB
begin VBP
to TO
rise VB
again RB
, ,
as IN
investors NNS
anticipate VBP
a DT
recovery NN
. .

The DT
average JJ
recession NN
lasts VBZ
about IN
a DT
year NN
. .

Unfortunately RB
, ,
though RB
, ,
recessions NNS
vary VBP
enough RB
in IN
length NN
so RB
that IN
the DT
average JJ
ca MD
n't RB
reliably RB
be VB
used VBN
to TO
guide VB
investors NNS
in IN
timing NN
stock NN
sales NNS
or CC
purchases NNS
. .
But CC
whatever WDT
their PRP$
advice NN
about IN
timing NN
, ,
none NN
of IN
these DT
experts NNS
recommend VBP
jettisoning VBG
stocks NNS
entirely RB
during IN
a DT
recession NN
. .

For IN
the DT
portion NN
of IN
an DT
investor NN
's POS
portfolio NN
that WDT
stays VBZ
in IN
stocks NNS
, ,
professionals NNS
have VBP
a DT
number NN
of IN
suggestions NNS
. .

Mr. NNP
Katz NNP
advocates VBZ
issues NNS
with IN
low JJ
price-earnings JJ
ratios NNS
-- :
that DT
is VBZ
, ,
low JJ
prices NNS
in IN
relation NN
to TO
the DT
company NN
's POS
earnings NNS
per IN
share NN
. .

`` ``
Low NNP
P-E NNP
'' ''
stocks NNS
, ,
he PRP
says VBZ
, ,
vastly RB
outperform VB
others NNS
`` ``
during IN
a DT
recession NN
or CC
bear VB
market NN
. .
'' ''

In IN
good JJ
times NNS
, ,
he PRP
says VBZ
, ,
they PRP
lag VBP
a DT
bit NN
, ,
but CC
overall JJ
they PRP
provide VBP
superior JJ
performance NN
. .

Prof. NNP
Arbel NNP
urges VBZ
investors NNS
to TO
discard VB
stocks NNS
in IN
small JJ
companies NNS
. .

Small-company JJ
shares NNS
typically RB
fall VBP
more JJR
than IN
big-company JJ
stocks NNS
in IN
a DT
recession NN
, ,
he PRP
says VBZ
. .

And CC
in IN
any DT
case NN
, ,
he PRP
argues VBZ
, ,
stocks VBZ
of IN
small JJ
companies NNS
are VBP
`` ``
almost RB
as RB
overpriced VBN
as IN
they PRP
were VBD
Sept. NNP
30 CD
, ,
1987 CD
, ,
just RB
before IN
the DT
crash NN
. .
'' ''

For IN
example NN
, ,
Mr. NNP
Arbel NNP
says VBZ
, ,
stocks VBZ
of IN
small JJ
companies NNS
are VBP
selling VBG
for IN
about IN
19 CD
times NNS
cash NN
flow NN
. .

-LRB- (
Cash NNP
flow NN
, ,
basically RB
earnings NNS
plus CC
depreciation NN
, ,
is VBZ
one CD
common JJ
gauge NN
of IN
a DT
company NN
's POS
financial JJ
health NN
. .
-RRB- )

That DT
ratio NN
is VBZ
dangerously RB
close RB
to TO
the DT
ratio NN
of IN
19.7 CD
that WDT
prevailed VBD
before IN
the DT
1987 CD
stock-market NN
crash NN
, ,
Mr. NNP
Arbel NNP
says VBZ
. .

And CC
it PRP
's VBZ
way NN
above IN
the DT
ratio NN
-LRB- (
7.5 CD
times NNS
cash NN
flow NN
-RRB- )
that IN
bigger JJR
companies NNS
are VBP
selling VBG
for RB
. .

Another DT
major JJ
trick NN
in IN
making VBG
a DT
portfolio NN
recession-resistant JJ
is VBZ
choosing VBG
stocks NNS
in IN
`` ``
defensive JJ
'' ''
industries NNS
. .

Food NNP
, ,
tobacco NN
, ,
drugs NNS
and CC
utilities NNS
are VBP
the DT
classic JJ
examples NNS
. .

Recession NN
or CC
not RB
, ,
people NNS
still RB
eat VBP
, ,
smoke NN
, ,
and CC
take VB
medicine NN
when WRB
they PRP
're VBP
sick JJ
. .

George NNP
Putnam NNP
III NNP
, ,
editor NN
of IN
Turnaround NNP
Letter NNP
in IN
Boston NNP
, ,
offers VBZ
one CD
final JJ
tip NN
for IN
recession-wary JJ
investors NNS
. .

`` ``
Keep VB
some DT
money NN
available JJ
for IN
opportunities NNS
, ,
'' ''
he PRP
says VBZ
. .

`` ``
If IN
the DT
recession NN
does VBZ
hit VBN
, ,
there EX
will MD
be VB
some DT
great JJ
investment NN
opportunities NNS
just RB
when WRB
things NNS
seem VBP
the DT
blackest JJS
. .
'' ''

Mr. NNP
Dorfman NNP
covers VBZ
investing VBG
issues NNS
from IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
New NNP
York NNP
bureau NN
. .

Some DT
industry NN
groups NNS
consistently RB
weather VBP
the DT
storm NN
better JJR
than IN
others NNS
. .

The DT
following VBG
shows VBZ
the DT
number NN
of IN
times VBZ
these DT
industries NNS
outperformed VBD
the DT
Standard NNP
& CC
Poor NNP
's POS
500-Stock NNP
Index NNP
during IN
the DT
first JJ
six CD
months NNS
of IN
the DT
past JJ
seven CD
recessions NNS
. .

Bond NN
prices NNS
posted VBD
strong JJ
gains NNS
as IN
investors NNS
went VBD
on IN
a DT
bargain NN
hunt NN
. .

But CC
while IN
the DT
overall JJ
market NN
improved VBN
, ,
the DT
new-issue JJ
junk-bond NN
market NN
continued VBD
to TO
count VB
casualties NNS
, ,
even RB
as IN
junk-bond NN
prices NNS
rose VBD
. .

Yesterday NN
, ,
Prudential-Bache NNP
Securities NNP
Inc. NNP
said VBD
it PRP
postponed VBD
a DT
$ $
220 CD
million CD
senior JJ
subordinated VBN
debenture NN
offering NN
by IN
York NNP
International NNP
Corp NNP
. .

And CC
Donaldson NNP
, ,
Lufkin NNP
& CC
Jenrette NNP
Securities NNP
Corp. NNP
scrambled VBD
to TO
restructure VB
and CC
improve VB
the DT
potential JJ
returns NNS
on IN
a DT
$ $
475 CD
million CD
debenture NN
offering NN
by IN
Chicago NNP
& CC
North NNP
Western NNP
Acquisition NNP
Corp. NNP
that WDT
was VBD
still RB
being VBG
negotiated VBN
late JJ
last JJ
night NN
. .

The DT
issue NN
by IN
Chicago NNP
& CC
North NNP
Western NN
is VBZ
one CD
of IN
the DT
so-called JJ
good JJ
junk-bond NN
offerings NNS
on IN
the DT
new-issue JJ
calendar NN
. .

Some DT
analysts NNS
said VBD
the DT
restructuring NN
of IN
the DT
railroad NN
concern NN
's POS
issue NN
shows VBZ
how WRB
tough JJ
it PRP
is VBZ
for IN
underwriters NNS
to TO
sell VB
even RB
the DT
junk NN
bonds NNS
of IN
a DT
company NN
considered VBN
to TO
be VB
a DT
relatively RB
good JJ
credit NN
risk NN
. .

Since IN
last JJ
week NN
's POS
junk-bond NN
market NN
debacle NN
, ,
many JJ
new JJ
issues NNS
of IN
high-yield JJ
, ,
high-risk JJ
corporate JJ
bonds NNS
have VBP
either DT
been VBN
scaled VBN
back RB
, ,
delayed VBN
or CC
dropped VBD
. .

On IN
Wednesday NNP
, ,
Drexel NNP
Burnham NNP
Lambert NNP
Inc. NNP
had VBD
to TO
slash VB
the DT
size NN
of IN
Continental NNP
Airlines NNPS
' POS
junk-bond NN
offering NN
to TO
$ $
71 CD
million CD
from IN
$ $
150 CD
million CD
. .

Salomon NNP
Brothers NNP
Inc. NNP
has VBZ
delayed VBN
Grand NNP
Union NNP
Co. NNP
's POS
$ $
1.16 CD
billion CD
junk-bond NN
offering NN
while IN
it PRP
restructures VBZ
the DT
transaction NN
. .

Last JJ
week NN
, ,
the DT
Grand NNP
Union NNP
offering NN
was VBD
sweetened VBN
to TO
include VB
warrants NNS
that WDT
allow VBP
bondholders NNS
to TO
acquire VB
common JJ
stock NN
. .

Prudential-Bache NNP
said VBD
the DT
York NNP
issue NN
was VBD
delayed VBN
because IN
of IN
market NN
conditions NNS
. .

`` ``
Everything NN
is VBZ
going VBG
through IN
firehoops NNS
right RB
now RB
, ,
and CC
-LCB- (
Chicago NNP
& CC
North NNP
Western JJ
-RCB- )
is VBZ
no DT
exception NN
, ,
'' ''
said VBD
Mariel NNP
Clemensen NNP
, ,
vice NN
president NN
, ,
high-yield JJ
research NN
, ,
at IN
Citicorp NNP
. .

Portfolio NN
managers NNS
say VBP
sweeteners NNS
like IN
equity NN
kickers NNS
and CC
stricter JJR
protective JJ
covenants NNS
may MD
increasingly RB
be VB
required VBN
to TO
sell VB
junk-bond NN
deals NNS
. .

Dan NNP
Baldwin NNP
, ,
managing VBG
director NN
of IN
high-yield JJ
investments NNS
at IN
Chancellor NNP
Capital NNP
Management NNP
, ,
said VBD
the DT
Chicago NNP
& CC
North NNP
Western JJ
offering NN
was VBD
restructured VBN
in IN
part NN
because IN
`` ``
several JJ
large JJ
insurance NN
buyers NNS
right RB
now RB
are VBP
demanding VBG
equity NN
as IN
part NN
of IN
the DT
package NN
. .

If IN
you PRP
're VBP
going VBG
to TO
take VB
the DT
risk NN
in IN
this DT
market NN
, ,
you PRP
want VBP
something NN
extra JJ
. .
'' ''

Mr. NNP
Baldwin NNP
likes VBZ
the DT
offering NN
. .

But CC
several JJ
mutual-fund JJ
managers NNS
, ,
nervous JJ
about IN
the DT
deteriorating VBG
quality NN
of IN
their PRP$
junk-bond NN
portfolios NNS
and CC
shy JJ
about IN
buying VBG
new JJ
issues NNS
, ,
said VBD
they PRP
're VBP
staying VBG
away RB
from IN
any DT
junk NN
security NN
that WDT
is VBZ
n't RB
considered VBN
first JJ
rate NN
for IN
its PRP$
class NN
. .

While IN
they PRP
consider VBP
the DT
Chicago NNP
& CC
North NNP
Western JJ
issue NN
to TO
be VB
good JJ
, ,
they PRP
do VBP
n't RB
view VB
it PRP
as IN
the DT
best JJS
. .

To TO
lure VB
buyers NNS
to TO
the DT
Chicago NNP
& CC
North NNP
Western JJ
bonds NNS
, ,
portfolio NN
managers NNS
said VBD
Donaldson NNP
Lufkin NNP
sweetened VBD
the DT
transaction NN
by IN
offering VBG
the DT
bonds NNS
with IN
a DT
resettable JJ
interest NN
rate NN
and CC
a DT
10 CD
% NN
equity NN
kicker NN
. .

The DT
bonds NNS
are VBP
expected VBN
to TO
have VB
a DT
14 CD
1\/2 CD
% NN
coupon NN
rate NN
. .

The DT
equity NN
arrangement NN
apparently RB
would MD
allow VB
bondholders NNS
to TO
buy VB
a DT
total NN
of IN
10 CD
% NN
of IN
the DT
stock NN
of IN
CNW NNP
Corp. NNP
, ,
Chicago NNP
& CC
North NNP
Western NN
's POS
parent NN
company NN
. .

Donaldson NNP
Lufkin NNP
declined VBD
to TO
comment VB
on IN
the DT
restructuring NN
. .

According VBG
to TO
some DT
analysts NNS
familiar JJ
with IN
the DT
negotiations NNS
, ,
the DT
10 CD
% NN
of IN
equity NN
would MD
come VB
directly RB
from IN
Donaldson NNP
Lufkin NNP
and CC
a DT
fund NN
affiliated VBN
with IN
the DT
investment NN
bank NN
Blackstone NNP
Group NNP
, ,
which WDT
would MD
reduce VB
their PRP$
CNW NNP
equity NN
holdings NNS
by IN
5 NN
% NN
each DT
. .

That DT
would MD
leave VB
the DT
Blackstone NNP
fund NN
with IN
a DT
60 CD
% NN
stake NN
and CC
Donaldson NNP
Lufkin NNP
with IN
15 CD
% NN
. .

Despite IN
the DT
problems NNS
with IN
new JJ
issues NNS
, ,
high-yield JJ
bonds NNS
showed VBD
gains NNS
in IN
the DT
secondary JJ
, ,
or CC
resell VB
, ,
market NN
. .

Junk NN
bonds NNS
ended VBD
about IN
one-half NN
point NN
higher JJR
with IN
so-called JJ
high-quality JJ
issues NNS
from IN
RJR NNP
Capital NNP
Holdings NNP
Corp. NNP
and CC
Petrolane NNP
Gas NNP
Service NNP
Limited NNP
Partnership NNP
rising VBG
one CD
point NN
. .

In IN
the DT
Treasury NNP
market NN
, ,
the DT
benchmark NN
30-year JJ
bond NN
rose VBD
seven-eighths NNS
point VBP
, ,
or CC
$ $
8.75 CD
for IN
each DT
$ $
1,000 CD
face NN
amount NN
. .

The DT
gain NN
reflects VBZ
fresh JJ
economic JJ
evidence NN
that DT
inflation NN
is VBZ
moderating VBG
while IN
the DT
economy NN
slows NNS
. .

That DT
raised VBN
hopes VBZ
that IN
interest NN
rates NNS
will MD
continue VB
to TO
move VB
lower JJR
. .

The DT
Labor NNP
Department NNP
reported VBD
that IN
consumer NN
prices NNS
rose VBD
just RB
0.2 CD
% NN
last JJ
month NN
, ,
slightly RB
lower JJR
than IN
some DT
economists NNS
had VBD
expected VBN
. .

But CC
there EX
were VBD
also RB
rumors VBZ
yesterday NN
that IN
several JJ
Japanese JJ
institutional JJ
investors NNS
were VBD
shifting VBG
their PRP$
portfolios NNS
and CC
buying VBG
long-term JJ
bonds NNS
while IN
selling VBG
shorter-term JJ
Treasurys NNPS
. .

Short-term NNP
Treasury NNP
securities NNS
ended VBD
narrowly RB
mixed VBN
, ,
with IN
two-year JJ
notes NNS
posting VBG
slight JJ
declines NNS
while IN
three-year JJ
notes NNS
were VBD
slightly RB
higher JJR
. .

Yesterday NN
, ,
the DT
Fed NNP
executed VBD
four-day JJ
matched VBN
sales NNS
, ,
a DT
technical JJ
trading NN
operation NN
designed VBN
to TO
drain VB
reserves NNS
from IN
the DT
banking NN
system NN
. .

The DT
move NN
was VBD
interpreted VBN
by IN
some DT
economists NNS
as IN
a DT
sign NN
that IN
the DT
Fed NNP
does VBZ
n't RB
want VB
the DT
federal JJ
funds NNS
rate NN
to TO
move VB
any DT
lower JJR
than IN
the DT
8 CD
3\/4 CD
% NN
at IN
which WDT
it PRP
has VBZ
been VBN
hovering VBG
around IN
during IN
the DT
past JJ
week NN
. .

The DT
closely RB
watched VBN
funds NNS
rate NN
is VBZ
what WP
banks VBZ
charge VBP
each DT
other NN
on IN
overnight JJ
loans NNS
. .

It PRP
is VBZ
considered VBN
an DT
early JJ
signal NN
of IN
Fed NNP
credit NN
policy NN
changes NNS
. .

`` ``
The DT
fact NN
that IN
they PRP
did VBD
four-day JJ
matched VBN
sales NNS
means VBZ
they PRP
are VBP
not RB
in IN
a DT
mood NN
to TO
ease VB
aggressively RB
. .

They PRP
are VBP
telling VBG
us PRP
that IN
-LCB- (
8 CD
3\/4 CD
% NN
-RCB- )
is VBZ
as RB
low JJ
as IN
they PRP
want VBP
to TO
see VB
the DT
fed VBN
funds NNS
rate NN
, ,
'' ''
said VBD
Robert NNP
Chandross NNP
at IN
Lloyds NNP
Bank NNP
PLC NNP
. .

Treasury NNP
Securities NNPS

The DT
benchmark NN
30-year JJ
bond NN
was VBD
quoted VBN
late RB
at IN
a DT
price NN
of IN
101 CD
25\/32 CD
to TO
yield VB
7.955 CD
% NN
, ,
compared VBN
with IN
100 CD
29\/32 CD
to TO
yield VB
8.032 CD
% NN
Wednesday NNP
. .

The DT
latest JJS
10-year JJ
notes NNS
were VBD
quoted VBN
late RB
at IN
100 CD
9\/32 CD
to TO
yield VB
7.937 CD
% NN
, ,
compared VBN
with IN
99 CD
26\/32 CD
to TO
yield VB
8.007 CD
% NN
. .

Short-term JJ
rates NNS
rose VBD
yesterday NN
. .

The DT
discount NN
rate NN
on IN
three-month JJ
Treasury NNP
bills NNS
rose VBD
to TO
7.56 CD
% NN
from IN
7.51 CD
% NN
Wednesday NNP
, ,
while IN
the DT
rate NN
on IN
six-month JJ
bills NNS
rose VBD
to TO
7.57 CD
% NN
from IN
7.53 CD
% NN
. .

Meanwhile RB
, ,
the DT
Treasury NNP
sold VBD
$ $
9.75 CD
billion CD
of IN
52-week JJ
bills NNS
yesterday NN
. .

The DT
average JJ
yield NN
on IN
the DT
bills NNS
was VBD
7.35 CD
% NN
, ,
down RB
from IN
7.61 CD
% NN
at IN
the DT
previous JJ
52-week JJ
bill NN
auction NN
Sept. NNP
21 CD
. .

Yesterday NN
's POS
yield NN
was VBD
the DT
lowest JJS
since IN
7.22 CD
% NN
on IN
July NNP
27 CD
. .

Here RB
are VBP
details NNS
of IN
the DT
auction NN
: :

Rates NNS
are VBP
determined VBN
by IN
the DT
difference NN
between IN
the DT
purchase NN
price NN
and CC
face NN
value NN
. .

Thus RB
, ,
higher JJR
bidding NN
narrows VBZ
the DT
investor NN
's POS
return NN
while IN
lower JJR
bidding NN
widens VBZ
it PRP
. .

The DT
percentage NN
rates NNS
are VBP
calculated VBN
on IN
a DT
360-day JJ
year NN
, ,
while IN
the DT
coupon-equivalent JJ
yield NN
is VBZ
based VBN
on IN
a DT
365-day JJ
year NN
. .

Corporate JJ
Issues NNS

Junk NN
bond NN
price NN
climbed VBD
yesterday NN
despite IN
skittishness NN
in IN
the DT
new-issue JJ
market NN
for IN
high-yield JJ
securities NNS
. .

Dealers NNS
said VBD
junk NN
bond NN
issues NNS
on IN
average NN
were VBD
up IN
by IN
1\/4 CD
to TO
1\/2 CD
point NN
with IN
so-called JJ
quality NN
issues NNS
from IN
RJR NNP
Capital NNP
Holdings NNP
Corp. NNP
and CC
Petrolane NNP
Gas NNP
Service NNP
Limited NNP
Partnership NNP
posting VBG
one-point JJ
gains NNS
. .

Petrolane NNP
Gas NNP
Service NNP
's POS
13 CD
1\/4 CD
% NN
debentures NNS
traded VBN
at IN
102 CD
, ,
after IN
trading NN
around IN
par NN
earlier RBR
this DT
week NN
, ,
and CC
RJR NNP
's POS
13 CD
1\/2 CD
% NN
subordinated VBD
debentures NNS
of IN
2001 CD
were VBD
at IN
101 CD
5\/8 CD
after IN
trading NN
at IN
below IN
par NN
earlier RBR
this DT
week NN
. .

Investment-grade JJ
bonds NNS
were VBD
unchanged JJ
. .

Municipals NNS

Activity NN
was VBD
brisk JJ
in IN
the DT
high-grade JJ
general JJ
obligation NN
market NN
, ,
as IN
a DT
series NN
of IN
sell NN
lists NNS
hit VBD
the DT
Street NNP
and CC
capped VBD
upward JJ
price NN
movement NN
in IN
the DT
sector NN
. .

Traders NNS
estimated VBN
that IN
more JJR
than IN
$ $
140 CD
million CD
of IN
high-grade JJ
bonds NNS
was VBD
put VBN
up IN
for IN
sale NN
via IN
bid-wanted JJ
lists NNS
circulated VBN
by IN
a DT
handful NN
of IN
major JJ
brokers NNS
. .

There EX
was VBD
speculation NN
that IN
the DT
supply NN
was VBD
coming VBG
from IN
a DT
commercial JJ
bank NN
's POS
portfolios NNS
. .

According VBG
to TO
market VB
participants NNS
, ,
the DT
bonds NNS
were VBD
met VBN
with IN
decent JJ
bids NNS
, ,
but CC
the DT
volume NN
of IN
paper NN
left VBD
high JJ
grades NNS
in IN
the DT
10-year JJ
and CC
under IN
maturity NN
range NN
unchanged JJ
to TO
0.05 CD
percentage NN
point NN
higher JJR
in IN
yield NN
. .

Away RB
from IN
the DT
general JJ
obligation NN
sector NN
, ,
activity NN
was VBD
modest JJ
. .

Long JJ
dollar NN
bonds NNS
were VBD
flat JJ
to TO
up IN
3\/8 CD
point NN
. .

New NNP
Jersey NNP
Turnpike NNP
Authority NNP
's POS
7.20 CD
% NN
issue NN
of IN
2018 CD
was VBD
up IN
3\/8 CD
at IN
98 CD
3\/8 CD
bid NN
to TO
yield VB
about IN
7.32 CD
% NN
, ,
down RB
0.03 CD
percentage NN
point NN
. .

The DT
debt NN
of IN
some DT
California NNP
issuers NNS
pulled VBD
off IN
lows NNS
reached VBN
after IN
Tuesday NNP
's POS
massive JJ
earthquake NN
, ,
although IN
traders NNS
said VBD
market NN
participants NNS
remained VBD
cautious JJ
. .

California NNP
expects VBZ
to TO
rely VB
on IN
federal JJ
emergency NN
funds NNS
and CC
its PRP$
$ $
1.06 CD
billion CD
in IN
general JJ
fund NN
reserves NNS
to TO
meet VB
the DT
estimated VBN
$ $
500 CD
million CD
to TO
$ $
1 CD
billion CD
in IN
damages NNS
resulting VBG
from IN
the DT
quake NN
, ,
according VBG
to TO
a DT
state NN
official NN
. .

It PRP
's VBZ
also RB
unclear JJ
precisely RB
how WRB
the DT
state NN
will MD
rebuild VB
its PRP$
reserve NN
, ,
said VBD
Cindy NNP
Katz NNP
, ,
assistant NN
director NN
of IN
California NNP
's POS
department NN
of IN
finance NN
, ,
although IN
she PRP
noted VBD
that IN
a DT
bond NN
offering NN
for IN
that DT
purpose NN
is VBZ
n't RB
anticipated VBN
. .

Meanwhile RB
, ,
new JJ
issuance NN
was VBD
slow JJ
. .

The DT
largest JJS
sale NN
in IN
the DT
competitive JJ
arena NN
was VBD
a DT
$ $
55.7 CD
million CD
issue NN
of IN
school NN
financing NN
bonds NNS
from IN
the DT
Virginia NNP
Public NNP
School NNP
Authority NNP
. .

A DT
balance NN
of IN
$ $
25.8 CD
million CD
remained VBD
in IN
late JJ
order-taking NN
, ,
according VBG
to TO
the DT
lead NN
manager NN
. .

Mortgage-Backed JJ
Securities NNPS

Mortgage NN
securities NNS
generally RB
ended VBD
6\/32 CD
to TO
9\/32 CD
point NN
higher JJR
, ,
but CC
lagged VBD
gains NNS
in IN
the DT
Treasury NNP
market NN
because IN
of IN
a DT
shift NN
in IN
the DT
shape NN
of IN
the DT
Treasury NNP
yield NN
curve NN
and CC
rumored VBN
mortgage NN
sales NNS
by IN
thrifts NNS
. .

Premium NNP
Government NNP
National NNP
Mortgage NNP
Association NNP
securities NNS
with IN
coupon NN
rates NNS
of IN
13 CD
% NN
and CC
higher JJR
actually RB
declined VBD
amid IN
concerns NNS
about IN
increased VBN
prepayments NNS
because IN
of IN
a DT
plan NN
being VBG
considered VBN
by IN
Congress NNP
to TO
speed VB
the DT
refinancing NN
of IN
government-subsidized JJ
mortgages NNS
. .

Ginnie NNP
Mae NNP
13 CD
% NN
securities NNS
were VBD
down RB
about IN
1\/4 CD
at IN
109 CD
30\/32 CD
. .

If IN
the DT
refinancing NN
plan NN
clears VBZ
Congress NNP
, ,
there EX
could MD
be VB
fairly RB
heavy JJ
prepayments NNS
on IN
the DT
premium NN
securities NNS
, ,
hurting VBG
any DT
investor NN
paying VBG
much JJ
above IN
par NN
for IN
them PRP
. .

In IN
the DT
current-coupon JJ
sector NN
, ,
a DT
shift NN
in IN
the DT
Treasury NNP
yield NN
curve NN
resulting VBG
from IN
the DT
better JJR
performance NN
of IN
long-dated JJ
issues NNS
over IN
short-dated JJ
securities NNS
hurt VBD
major JJ
coupons NNS
because IN
it PRP
will MD
become VB
more RBR
difficult JJ
to TO
structure VB
new JJ
derivative JJ
securities NNS
offerings NNS
. .

Ginnie NNP
Mae NNP
9 CD
% NN
securities NNS
ended VBD
at IN
98 CD
6\/32 CD
, ,
up IN
9\/32 CD
, ,
and CC
Federal NNP
Home NNP
Loan NNP
Mortgage NNP
Corp. NNP
9 CD
% NN
securities NNS
were VBD
at IN
97 CD
10\/32 CD
, ,
up IN
6\/32 CD
. .

The DT
Ginnie NNP
Mae NNP
9 CD
% NN
issue NN
was VBD
yielding VBG
9.42 CD
% NN
to TO
a DT
12-year JJ
average JJ
life NN
assumption NN
, ,
as IN
the DT
spread NN
above IN
the DT
Treasury NNP
10-year JJ
note NN
widened VBD
0.03 CD
percentage NN
point NN
to TO
1.48 CD
. .

While IN
Remic NNP
issuance NN
may MD
slow VB
in IN
the DT
coming VBG
days NNS
because IN
of IN
the DT
shift NN
in IN
the DT
Treasury NNP
yield NN
curve NN
, ,
underwriters NNS
continued VBD
to TO
crank VB
out IN
new JJ
real JJ
estate NN
mortgage NN
investment NN
conduits NNS
structured VBN
when WRB
the DT
yield NN
curve NN
was VBD
more RBR
favorable JJ
. .

Two CD
new JJ
Remics NNS
totaling VBG
$ $
900 CD
million CD
were VBD
announced VBN
by IN
Freddie NNP
Mac NNP
yesterday NN
. .

Foreign JJ
Bonds NNS

British JJ
government NN
bonds NNS
ended VBD
little RB
changed VBN
as IN
investors NNS
awaited VBD
an DT
economic JJ
policy NN
address NN
last JJ
night NN
by IN
Chancellor NNP
of IN
the DT
Exchequer NNP
Nigel NNP
Lawson NNP
. .

The DT
Treasury NNP
11 CD
3\/4 CD
% NN
bond NN
due JJ
2003\/2007 CD
was VBD
down RB
2\/32 CD
at IN
111 CD
29\/32 CD
to TO
yield VB
10.09 CD
% NN
, ,
while IN
the DT
11 CD
3\/4 CD
% NN
notes NNS
due JJ
1991 CD
were VBD
unchanged JJ
at IN
98 CD
19\/32 CD
to TO
yield VB
12.94 CD
% NN
. .

In IN
Japan NNP
, ,
the DT
bellwether NN
No. NN
111 CD
4.6 CD
% NN
bond NN
of IN
1998 CD
ended VBD
off IN
0.03 CD
at IN
95.72 CD
, ,
to TO
yield VB
5.32 CD
% NN
, ,
and CC
in IN
West NNP
Germany NNP
, ,
the DT
7 CD
% NN
benchmark NN
issue NN
due JJ
October NNP
1999 CD
ended VBD
0.05 CD
point NN
lower JJR
at IN
99.85 CD
to TO
yield VB
7.02 CD
% NN
. .

THE DT
PANHANDLER NN
approaches NNS
, ,
makes VBZ
his PRP$
pitch NN
. .

It PRP
may MD
be VB
straightforward JJ
-- :
he PRP
wants VBZ
money NN
for IN
food NN
-- :
or CC
incredibly RB
convoluted JJ
; :
his PRP$
sister NN
is VBZ
at IN
this DT
very JJ
moment NN
near IN
death NN
in IN
Hoboken NNP
, ,
he PRP
has VBZ
lost VBN
his PRP$
wallet NN
and CC
has VBZ
only RB
$ $
1.22 CD
in IN
change NN
to TO
put VB
toward IN
a DT
bus NN
ticket NN
costing VBG
$ $
3.83 CD
, ,
and CC
wo MD
n't RB
you PRP
give VB
him PRP
the DT
difference NN
? .

No DT
? .

Well UH
, ,
how WRB
about IN
a DT
loan NN
, ,
he PRP
'll MD
take VB
your PRP$
name NN
and CC
address NN
... :

Figuring VBG
that IN
their PRP$
money NN
would MD
more RBR
likely JJ
go NN
toward IN
a DT
bottle NN
of IN
Night NNP
Train NNP
Express NNP
, ,
most RBS
people NNS
have VBP
little JJ
trouble NN
saying VBG
no DT
to TO
propositions NNS
like IN
this DT
. .

But CC
healthy JJ
skepticism NN
vanishes VBZ
when WRB
they PRP
are VBP
solicited VBN
by IN
an DT
organized VBN
charity NN
to TO
help VB
fight VB
cancer NN
, ,
famine NN
, ,
child NN
abuse NN
, ,
or CC
what WP
have VBP
you PRP
. .

Most JJS
see VB
little JJ
reason NN
to TO
doubt VB
that IN
their PRP$
cash NN
will MD
go VB
toward IN
these DT
noble JJ
goals NNS
. .

But CC
will MD
it PRP
? .
In IN
a DT
distressing JJ
number NN
of IN
cases NNS
, ,
no DT
. .

In IN
fact NN
, ,
the DT
donors NNS
sometimes RB
might MD
be VB
better JJR
off IN
giving VBG
the DT
money NN
to TO
the DT
panhandler NN
: :
at IN
least JJS
he PRP
has VBZ
no DT
overhead NN
, ,
and CC
he PRP
might MD
even RB
be VB
telling VBG
the DT
truth NN
. .

Last JJ
year NN
, ,
more JJR
than IN
$ $
100 CD
billion CD
was VBD
donated VBN
to TO
the DT
nation NN
's POS
400,000 CD
charities NNS
. .

While IN
the DT
vast JJ
bulk NN
of IN
it PRP
was VBD
indeed RB
spent VBN
by IN
reputable JJ
organizations NNS
on IN
the DT
good JJ
works NNS
it PRP
was VBD
raised VBN
for IN
, ,
it PRP
's VBZ
equally RB
true JJ
that IN
a DT
sizable JJ
hunk NN
was VBD
consumed VBN
in IN
`` ``
expenses NNS
'' ''
claimed VBN
by IN
other JJ
operators NNS
, ,
including VBG
fraudulent JJ
expenses NNS
. .

In IN
many JJ
cases NNS
the DT
costs NNS
claimed VBD
were VBD
so RB
high JJ
that IN
only RB
a DT
dribble NN
of IN
cash NN
was VBD
left VBN
for IN
the DT
purported JJ
beneficiaries NNS
. .

It PRP
's VBZ
impossible JJ
to TO
say VB
exactly RB
how WRB
much NN
of IN
the DT
total JJ
charity NN
intake NN
is VBZ
devoured VBN
by IN
stratospheric JJ
fund-raising NN
costs NNS
, ,
high-living JJ
operators NNS
, ,
and CC
downright JJ
fraud NN
. .

But CC
the DT
problem NN
clearly RB
is VBZ
widespread JJ
and CC
persistent JJ
. .

State NN
law NN
enforcers NNS
can MD
barely RB
keep VB
up IN
with IN
charity NN
scams NNS
, ,
and CC
reports NNS
from IN
watchdog NN
groups NNS
such JJ
as IN
the DT
Council NNP
of IN
Better NNP
Business NNP
Bureaus NNP
are VBP
not RB
encouraging VBG
. .

The DT
Philanthropic NNP
Advisory NNP
Service NNP
of IN
the DT
BBB NNP
reviews NNS
hundreds NNS
of IN
new JJ
charities NNS
every DT
year NN
, ,
measuring VBG
them PRP
against IN
minimum JJ
standards NNS
for IN
accountability NN
; :
for IN
accuracy NN
and CC
honesty NN
in IN
solicitation NN
; :
and CC
for IN
percentage NN
of IN
funds NNS
actually RB
going VBG
to TO
work VB
for IN
which WDT
the DT
charity NN
was VBD
supposedly RB
established VBN
. .

The DT
Service NNP
figures NNS
at IN
least JJS
half NN
of IN
the DT
money NN
taken VBN
in IN
should MD
be VB
spent VBN
on IN
program NN
. .

Roughly RB
a DT
third JJ
of IN
the DT
charities NNS
reviewed VBN
flunk VBP
the DT
test NN
. .

Which WDT
, ,
it PRP
should MD
be VB
added VBN
, ,
does VBZ
n't RB
prevent VB
the DT
charities NNS
from IN
raking VBG
in IN
a DT
lot NN
of IN
money NN
anyway RB
. .

Without IN
a DT
microscope NN
and CC
a DT
subpoena NN
, ,
it PRP
's VBZ
often RB
hard JJ
to TO
sort VB
out RP
worthwhile JJ
causes NNS
from IN
ripoffs NNS
if IN
all DT
you PRP
've VBP
got VBD
to TO
go VB
on IN
is VBZ
the DT
solicitation NN
itself PRP
. .

On IN
this DT
basis NN
, ,
`` ``
there EX
's VBZ
no DT
way NN
the DT
average JJ
person NN
can MD
know VB
a DT
good JJ
charity NN
from IN
a DT
bad JJ
one CD
, ,
'' ''
says VBZ
David NNP
Ormstedt NNP
, ,
an DT
assistant NN
attorney NN
general JJ
in IN
Connecticut NNP
. .

`` ``
A DT
lot NN
of IN
donors NNS
just RB
get VBP
taken VBN
. .
'' ''

Including VBG
those DT
, ,
he PRP
contends VBZ
, ,
who WP
put VBP
about RB
$ $
1 CD
million CD
into IN
the DT
kitty NN
for IN
the DT
Connecticut NNP
Association NNP
of IN
Concerned NNP
Veterans NNP
and CC
the DT
Vietnam NNP
Veterans NNP
Service NNP
Center NNP
. .

The DT
state NN
has VBZ
sued VBN
these DT
charities NNS
in IN
state NN
court NN
, ,
complaining VBG
that IN
much NN
of IN
the DT
money NN
was VBD
grossly RB
misspent VBN
; :
82 CD
% NN
, ,
says VBZ
Mr. NNP
Ormstedt NNP
, ,
went VBD
to TO
fund VB
raisers NNS
and CC
most RBS
of IN
the DT
rest NN
to TO
the DT
people NNS
who WP
ran VBD
the DT
charities NNS
and CC
to TO
their PRP$
relatives NNS
-- :
for IN
fur NN
coats NNS
, ,
trips NNS
to TO
Florida NNP
, ,
Lucullan JJ
restaurant NN
tabs NNS
. .

The DT
telephone NN
number NN
for IN
the DT
charity NN
in IN
Shelton NNP
, ,
Conn. NNP
, ,
has VBZ
been VBN
disconnected VBN
, ,
and CC
the DT
former JJ
officials NNS
could MD
n't RB
be VB
located VBN
. .

Running VBG
a DT
charity NN
does VBZ
cost NN
money NN
, ,
but CC
reputable JJ
organizations NNS
manage VBP
to TO
get VB
the DT
lion NN
's POS
share NN
of IN
donations NNS
out IN
to TO
where WRB
they PRP
are VBP
really RB
needed VBN
. .

The DT
Arthritis NNP
Foundation NNP
, ,
the DT
American NNP
Cancer NNP
Society NNP
and CC
the DT
United NNP
Way NN
of IN
America NNP
all DT
say NN
that IN
they PRP
spend VBP
roughly RB
90 CD
% NN
of IN
their PRP$
income NN
on IN
programs NNS
, ,
not RB
overhead JJ
. .

With IN
some DT
other JJ
charities NNS
, ,
however RB
, ,
it PRP
s PRP
the DT
other JJ
way NN
around RB
. .

The DT
fledgling NN
National NNP
Children NNS
's POS
Cancer NNP
Society NNP
, ,
for IN
example NN
, ,
took VBD
in IN
$ $
2.5 CD
million CD
last JJ
year NN
to TO
finance VB
bone-marrow NN
transplants NNS
for IN
children NNS
. .

By IN
the DT
time NN
it PRP
paid VBD
its PRP$
expenses NNS
it PRP
only RB
had VBD
$ $
120,000 CD
left VBN
-- :
not RB
enough RB
to TO
treat VB
even RB
one CD
child NN
. .

The DT
state NN
of IN
Illinois NNP
is VBZ
suing VBG
the DT
charity NN
for IN
fraud NN
in IN
Chicago NNP
, ,
along IN
with IN
Telesystems NNP
Marketing NNP
Inc. NNP
, ,
its PRP$
Houston-based JJ
fund NN
raiser NN
. .

Both DT
deny VB
wrongdoing NN
. .

The DT
charity NN
admits VBZ
spending VBG
a DT
lot NN
on IN
fund NN
raising VBG
, ,
but CC
says VBZ
that WDT
was VBD
necessary JJ
to TO
establish VB
a DT
donor NN
base NN
it PRP
can MD
tap VB
at IN
much RB
lower JJR
cost NN
in IN
years NNS
to TO
come VB
. .

Michael NNP
Burns NNP
, ,
president NN
of IN
Telesystems NNP
, ,
says VBZ
his PRP$
concern NN
has VBZ
only RB
benefited VBN
from IN
the DT
publicity NN
surrounding VBG
the DT
case NN
, ,
noting VBG
that IN
three CD
other JJ
charities NNS
have VBP
signed VBN
on IN
as IN
clients NNS
because IN
they PRP
were VBD
impressed VBN
with IN
the DT
amount NN
he PRP
raised VBD
for IN
National NNP
Children NNS
's POS
. .

Meanwhile RB
, ,
a DT
state NN
court NN
judge NN
has VBZ
allowed VBN
the DT
charity NN
to TO
go VB
on IN
soliciting VBG
funds NNS
. .

Enforcers NNS
ca MD
n't RB
put VB
charities NNS
out IN
of IN
business NN
simply RB
because IN
they PRP
spend VBP
the DT
lion NN
's POS
share NN
of IN
their PRP$
income NN
on IN
fund NN
raising VBG
. .

State NN
laws NNS
previously RB
used VBN
as IN
a DT
yardstick NN
minimum JJ
percentages NNS
of IN
income NN
-- :
usually RB
half NN
-- :
that WDT
had VBD
to TO
be VB
spent VBN
on IN
the DT
program NN
rather RB
than IN
overhead JJ
, ,
but CC
these DT
have NN
been VBN
overturned VBN
by IN
the DT
U.S. NNP
Supreme NNP
Court NNP
. .

It PRP
has VBZ
ruled VBN
that IN
such JJ
laws NNS
might MD
work VB
to TO
stifle VB
fund NN
raising VBG
, ,
which WDT
would MD
amount VB
to TO
limiting VBG
the DT
charities NNS
' POS
first-amendment JJ
right NN
to TO
freedom NN
of IN
expression NN
. .

This DT
puts VBZ
upon IN
enforcers NNS
the DT
burden NN
of IN
proving VBG
outright JJ
fraud NN
or CC
misrepresentation NN
, ,
and CC
such JJ
actions NNS
have VBP
been VBN
brought VBN
against IN
hundreds NNS
of IN
charities NNS
recently RB
. .

The DT
attorney NN
general NN
's POS
office NN
in IN
Connecticut NNP
alone RB
has VBZ
put VBN
seven CD
of IN
them PRP
out IN
of IN
business NN
over IN
the DT
past JJ
couple NN
of IN
years NNS
, ,
and CC
the DT
enforcement NN
drive NN
is VBZ
continuing VBG
there EX
and CC
elsewhere RB
. .

In IN
making VBG
cases NNS
, ,
the DT
authorities NNS
frequently RB
zero CD
in IN
on IN
alleged VBN
misrepresentations NNS
made VBN
by IN
the DT
charities NNS
' POS
fund NN
raisers NNS
. .

Illinois NNP
, ,
for IN
instance NN
, ,
currently RB
has VBZ
under IN
investigation NN
10 CD
of IN
the DT
30 CD
companies NNS
drumming VBG
up IN
funds NNS
for IN
charities NNS
soliciting VBG
there RB
. .

Enforcers NNS
pay VBP
special JJ
attention NN
to TO
operators NNS
using VBG
sweepstakes NN
prizes NNS
as IN
an DT
additional JJ
inducement NN
to TO
give VB
. .

Attorneys NNS
general JJ
in IN
several JJ
states NNS
, ,
including VBG
Illinois NNP
, ,
are VBP
already RB
suing VBG
Watson NNP
& CC
Hughey NNP
Co. NNP
, ,
an DT
Alexandria NNP
, ,
Va.-based JJ
outfit NN
that IN
they PRP
say VBP
has VBZ
used VBN
deceptive JJ
sweepstakes NN
ads NNS
to TO
solicit VB
donations NNS
for IN
the DT
American NNP
Heart NNP
Disease NNP
Foundation NNP
and CC
the DT
Cancer NNP
Fund NNP
of IN
America NNP
. .

According VBG
to TO
the DT
Illinois NNP
attorney NN
general NN
's POS
suit NN
, ,
Watson NNP
& CC
Hughey NNP
sent VBD
mailings NNS
indicating VBG
that IN
recipients NNS
were VBD
guaranteed VBN
cash NN
prizes NNS
, ,
and CC
could MD
win VB
up IN
to TO
an DT
additional JJ
$ $
1,000 CD
on IN
top NN
of IN
them PRP
, ,
if IN
they PRP
contributed VBD
as RB
little JJ
as IN
$ $
7 CD
. .

But CC
the DT
total JJ
value NN
of IN
the DT
prizes NNS
was VBD
only RB
$ $
5,000 CD
and CC
most RBS
`` ``
winners NNS
'' ''
will MD
receive VB
just RB
10 CD
cents NNS
, ,
according VBG
to TO
the DT
attorney NN
general NN
's POS
office NN
. .

The DT
suit NN
is VBZ
still RB
pending VBG
in IN
Illinois NNP
state NN
court NN
. .

Watson NNP
& CC
Hughey NNP
has VBZ
denied VBN
the DT
allegations NNS
in IN
court NN
; :
officials NNS
decline VBP
to TO
comment VB
further JJ
. .

While IN
they PRP
can MD
target VB
some DT
of IN
the DT
most RBS
obvious JJ
miscreants NNS
, ,
enforcers NNS
concede VBP
that IN
they PRP
are VBP
only RB
scratching VBG
the DT
surface NN
. .

There EX
are VBP
so RB
many JJ
cunning JJ
ploys NNS
used VBN
by IN
so RB
many JJ
dubious JJ
operators NNS
, ,
they PRP
say VBP
, ,
that IN
it PRP
is VBZ
probably RB
impossible JJ
to TO
stop VB
them PRP
all DT
. .

One CD
maneuver NN
: :
the DT
`` ``
public JJ
education NN
'' ''
gambit NN
. .

The DT
solicitation NN
material NN
indicates VBZ
that IN
donations NNS
will MD
go VB
toward IN
a DT
campaign NN
alerting VBG
and CC
informing VBG
the DT
public NN
about IN
some DT
health NN
or CC
other JJ
issue NN
. .

What WP
it PRP
does VBZ
n't RB
say VB
is VBZ
that IN
the DT
entire JJ
`` ``
campaign NN
'' ''
may MD
be VB
the DT
fund-raising NN
letter NN
itself PRP
. .

`` ``
All DT
too RB
often RB
this DT
will MD
merely RB
be VB
a DT
statement NN
on IN
the DT
solicitation NN
such JJ
as IN
, ,
` ``
Do VBP
n't RB
smoke VB
! .
' ''
or CC
` ``
Wear VB
suntan NN
lotion NN
, ,
' POS
`` ``
says VBZ
William NNP
Webster NNP
, ,
attorney NN
general NN
of IN
Missouri NNP
. .

`` ``
By IN
putting VBG
these DT
pithy JJ
statements NNS
on IN
the DT
solicitations NNS
, ,
hundreds NNS
of IN
thousands NNS
of IN
dollars NNS
are VBP
claimed VBN
to TO
have VB
been VBN
spent VBN
on IN
education NN
to TO
consumers NNS
when WRB
in IN
fact NN
this DT
represents VBZ
the DT
costs NNS
of IN
sending VBG
the DT
newsletters NNS
. .
'' ''

Mr. NNP
Webster NNP
cites VBZ
a DT
four-page JJ
mailing NN
from IN
the DT
United NNP
Cancer NNP
Council NNP
that WDT
offers VBZ
a DT
chance NN
to TO
win VB
$ $
5,000 CD
in IN
gold NN
bullion NN
to TO
those DT
giving VBG
as RB
little JJ
as IN
$ $
5 NN
to TO
cancer NN
education NN
. .

`` ``
A DT
few JJ
boilerplate NN
warnings NNS
about IN
cancer NN
appear VB
but CC
that DT
's VBZ
only RB
two CD
inches NNS
in IN
all DT
four CD
pages NNS
. .

I PRP
think VBP
some DT
people NNS
may MD
believe VB
they PRP
're VBP
helping VBG
fund NN
a DT
massive JJ
TV NN
and CC
print NN
campaign NN
, ,
but CC
we PRP
could MD
n't RB
find VB
that IN
the DT
charity NN
does VBZ
anything NN
except IN
write VB
these DT
letters NNS
, ,
'' ''
he PRP
says VBZ
. .

Officials NNS
at IN
the DT
Washington NNP
D.C.-based JJ
charity NN
did VBD
n't RB
return VB
repeated VBN
phone NN
calls NNS
. .

Many JJ
fly-by-night JJ
charities NNS
ride VBP
the DT
coattails NNS
of IN
the DT
biggest JJS
, ,
best-known JJ
and CC
most RBS
reputable JJ
ones NNS
by IN
adopting VBG
names NNS
similar JJ
to TO
theirs PRP
. .

The DT
established VBN
charities NNS
are VBP
bothered VBN
by IN
this DT
but CC
say VBP
they PRP
can MD
do VB
little JJ
about IN
it PRP
. .

`` ``
We PRP
ca MD
n't RB
police VB
the DT
many JJ
organizations NNS
that WDT
have VBP
sprung VBN
up IN
in IN
the DT
last JJ
few JJ
years NNS
using VBG
part NN
of IN
our PRP$
name NN
. .

Most JJS
of IN
them PRP
do VBP
n't RB
last JJ
for IN
long JJ
, ,
but CC
in IN
the DT
meantime NN
all DT
we PRP
can MD
do VB
is VBZ
tell VB
people NNS
they PRP
are VBP
n't RB
connected VBN
with IN
us PRP
, ,
'' ''
says VBZ
a DT
spokeswoman NN
for IN
the DT
American NNP
Heart NNP
Association NNP
. .

And CC
sometimes RB
a DT
reputable JJ
charity NN
with IN
a DT
household NN
name NN
gets VBZ
used VBN
and CC
does VBZ
n't RB
even RB
know VB
it PRP
. .

A DT
couple NN
in IN
Rockford NNP
, ,
Ill. NNP
, ,
raised VBD
$ $
12,591 CD
earlier RBR
this DT
year NN
using VBG
the DT
name NN
and CC
logo NN
of IN
Mothers NNPS
Against IN
Drunk JJ
Driving VBG
, ,
without IN
permission NN
from IN
the DT
group NN
. .

MADD NNP
did VBD
n't RB
learn VB
of IN
the DT
fund NN
raising VBG
until IN
the DT
couple NN
sent VBD
it PRP
a DT
check NN
for IN
$ $
613 CD
, ,
along IN
with IN
a DT
letter NN
saying VBG
that WDT
was VBD
the DT
charity NN
's POS
`` ``
share NN
. .
'' ''

The DT
Illinois NNP
Attorney NNP
General NNP
won VBD
a DT
court NN
order NN
to TO
prevent VB
the DT
couple NN
from IN
raising VBG
further JJ
funds NNS
without IN
MADD NNP
's POS
permission NN
. .

The DT
couple NN
could MD
n't RB
be VB
reached VBN
for IN
comment NN
and CC
apparently RB
have VBP
left VBN
Rockford NNP
, ,
law NN
enforcement NN
officials NNS
report VBP
. .

Denise NNP
McDonald NNP
, ,
a DT
spokeswoman NN
for IN
MADD NNP
, ,
says VBZ
, ,
`` ``
It PRP
's VBZ
scary JJ
, ,
because IN
anybody NN
could MD
do VB
this DT
. .
'' ''

Mr. NNP
Johnson NNP
is VBZ
a DT
staff NN
reporter NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Chicago NNP
bureau NN
. .

Overhead NN
costs NNS
at IN
some DT
of IN
the DT
largest JJS
charities NNS
, ,
in IN
millions NNS
of IN
dollars NNS

British JJ
Airways NNP
PLC NNP
, ,
a DT
crucial JJ
participant NN
in IN
the DT
proposed VBN
buy-out NN
of IN
UAL NNP
Corp. NNP
, ,
washed VBD
its PRP$
hands NNS
of IN
the DT
current JJ
efforts NNS
to TO
revive VB
a DT
bid NN
for IN
the DT
parent NN
of IN
United NNP
Airlines NNPS
. .

Specifically RB
, ,
the DT
British JJ
carrier NN
said VBD
it PRP
currently RB
has VBZ
no DT
plans NNS
to TO
participate VB
in IN
any DT
new JJ
offer NN
for IN
UAL NNP
. .

In IN
addition NN
, ,
British NNP
Air NNP
officially RB
withdrew VBD
its PRP$
support NN
for IN
the DT
previous JJ
$ $
300-a-share JJ
bid NN
in IN
a DT
terse JJ
statement NN
that WDT
said VBD
`` ``
the DT
original JJ
deal NN
is VBZ
closed VBN
. .
'' ''

Company NN
officials NNS
said VBD
later RB
that IN
British JJ
Airways NNPS
believes VBZ
its PRP$
involvement NN
in IN
the DT
UAL NNP
buy-out NN
ended VBD
last JJ
Friday NNP
when WRB
the DT
buy-out NN
group NN
, ,
which WDT
also RB
includes VBZ
UAL NNP
's POS
management NN
and CC
pilot NN
union NN
, ,
failed VBD
to TO
obtain VB
financing NN
for IN
the DT
$ $
6.79 CD
billion CD
transaction NN
. .

The DT
carrier NN
stopped VBD
short NN
of IN
saying VBG
it PRP
would MD
n't RB
at IN
some DT
point NN
reconsider VB
participating VBG
in IN
any DT
new JJ
bid NN
for IN
UAL NNP
. .

However RB
, ,
company NN
officials NNS
said VBD
they PRP
plan VBP
to TO
take VB
`` ``
no DT
initiatives NNS
'' ''
to TO
resurrect VB
the DT
transaction NN
, ,
and CC
`` ``
are VBP
n't RB
aware JJ
'' ''
of IN
any DT
restructured VBN
bid NN
in IN
the DT
making NN
. .

Collectively RB
, ,
the DT
statements NNS
raised VBD
questions NNS
about IN
whether IN
a DT
new JJ
bid NN
for IN
UAL NNP
will MD
ever RB
get VB
off IN
the DT
ground NN
. .

The DT
transaction NN
has VBZ
had VBN
a DT
series NN
of IN
setbacks NNS
since IN
the DT
financing NN
problems NNS
became VBD
known VBN
last JJ
Friday NNP
, ,
with IN
no DT
signs NNS
or CC
statements NNS
from IN
the DT
buy-out NN
group NN
to TO
indicate VB
that IN
any DT
progress NN
has VBZ
taken VBN
place NN
. .

However RB
, ,
in IN
response NN
to TO
the DT
British NNP
Air NNP
decision NN
, ,
United NNP
's POS
pilot NN
union NN
vowed VBD
to TO
continue VB
efforts NNS
to TO
revive VB
the DT
buy-out NN
. .

Pilot NN
union NN
Chairman NNP
Frederick NNP
C. NNP
Dubinsky NNP
said VBD
advisers NNS
to TO
UAL NNP
management NN
and CC
the DT
union NN
will MD
begin VB
meeting NN
in IN
New NNP
York NNP
today NN
and CC
will MD
work VB
through IN
the DT
weekend NN
to TO
devise VB
a DT
new JJ
proposal NN
to TO
present VB
to TO
UAL NNP
's POS
board NN
`` ``
at IN
the DT
earliest JJS
time NN
possible JJ
. .
'' ''

Pilot NN
union NN
advisers NNS
appeared VBD
confident JJ
that IN
a DT
new JJ
bid NN
could MD
go VB
forward RB
even RB
without IN
British NNP
Air NNP
's POS
participation NN
. .

UAL NNP
declined VBD
to TO
comment VB
on IN
British NNP
Air NNP
's POS
statement NN
. .

UAL NNP
Chairman NNP
Stephen NNP
M. NNP
Wolf NNP
, ,
who WP
is VBZ
leading VBG
the DT
management NN
end NN
of IN
the DT
buy-out NN
, ,
has VBZ
n't RB
provided VBN
investors NNS
with IN
any DT
assurances NNS
about IN
the DT
prospect NN
of IN
a DT
new JJ
deal NN
. .

In IN
another DT
setback NN
yesterday NN
, ,
United NNP
's POS
machinist NN
union NN
asked VBD
the DT
Treasury NNP
Department NNP
to TO
investigate VB
whether IN
certain JJ
aspects NNS
of IN
the DT
original JJ
buy-out NN
proposal NN
violated VBD
tax NN
laws NNS
. .

In IN
an DT
effort NN
to TO
derail VB
the DT
buy-out NN
, ,
the DT
union NN
has VBZ
already RB
called VBN
for IN
investigations NNS
by IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
Transportation NNP
Department NNP
and CC
Labor NNP
Department NNP
. .

But CC
there EX
was VBD
one CD
bright JJ
spot NN
yesterday NN
. .

The DT
United NNP
flight-attendants NNS
union NN
agreed VBD
to TO
negotiations NNS
that WDT
could MD
lead VB
to TO
the DT
flight NN
attendants NNS
contributing VBG
concessions NNS
to TO
a DT
revived VBN
bid NN
in IN
exchange NN
for IN
an DT
ownership NN
stake NN
. .

The DT
pilot NN
union NN
, ,
the DT
only RB
one CD
to TO
support VB
the DT
buy-out NN
thus RB
far RB
, ,
said VBD
the DT
flight NN
attendants NNS
' POS
decision NN
`` ``
enforces VBZ
our PRP$
belief NN
that IN
an DT
all-employee JJ
owned VBN
airline NN
is VBZ
practical JJ
and CC
achievable JJ
. .
'' ''

Still RB
, ,
without IN
the DT
assurance NN
of IN
British JJ
Airways NNPS
' POS
financial JJ
backing NN
, ,
it PRP
will MD
be VB
tougher JJR
for IN
the DT
buy-out NN
group NN
to TO
convince VB
already-reluctant JJ
banks NNS
to TO
make VB
loan NN
commitments NNS
for IN
a DT
revised VBN
bid NN
, ,
especially RB
since IN
British NNP
Air NNP
's POS
original JJ
investment NN
represented VBN
78 CD
% NN
of IN
the DT
cash NN
equity NN
contribution NN
for IN
the DT
bid NN
. .

Under IN
the DT
previous JJ
plan NN
, ,
British NNP
Air NNP
would MD
have VB
received VBN
a DT
15 CD
% NN
stake NN
in IN
UAL NNP
in IN
exchange NN
for IN
a DT
$ $
750 CD
million CD
equity NN
investment NN
, ,
with IN
a DT
75 CD
% NN
stake NN
going VBG
to TO
UAL NNP
employees NNS
and CC
10 CD
% NN
to TO
UAL NNP
management NN
. .

British NNP
Air NNP
officials NNS
said VBD
the DT
airline NN
's POS
chairman NN
, ,
Lord NNP
King NNP
, ,
was VBD
concerned VBN
about IN
news NN
reports NNS
indicating VBG
that IN
British NNP
Air NNP
might MD
be VB
willing JJ
to TO
participate VB
in IN
a DT
bid NN
that WDT
included VBD
a DT
lower JJR
purchase NN
price NN
and CC
better JJR
investment NN
terms NNS
for IN
the DT
British JJ
carrier NN
. .

The DT
previous JJ
reports NNS
were VBD
based VBN
on IN
remarks NNS
by IN
British NNP
Air NNP
's POS
chief JJ
financial JJ
officer NN
, ,
Derek NNP
Stevens NNP
, ,
who WP
said VBD
any DT
revised VBN
bid NN
would MD
have VB
to TO
include VB
a DT
lower JJR
purchase NN
price NN
to TO
reflect VB
the DT
sharp JJ
drop NN
in IN
UAL NNP
's POS
stock NN
in IN
the DT
past JJ
week NN
. .

UAL NNP
stock NN
dropped VBD
$ $
1.625 CD
yesterday NN
to TO
$ $
190.125 CD
on IN
volume NN
of IN
923,500 CD
shares NNS
in IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
. .

UAL NNP
declined VBD
to TO
comment VB
on IN
British NNP
Air NNP
's POS
statement NN
. .

In IN
an DT
interview NN
Wednesday NNP
with IN
Dow NNP
Jones NNP
Professional NNP
Investor NNP
Report NNP
, ,
Mr. NNP
Stevens NNP
said VBD
, ,
`` ``
We PRP
're VBP
in IN
no DT
way NN
committed VBN
to TO
a DT
deal NN
going VBG
through IN
at IN
all DT
. .

We PRP
're VBP
not RB
rushing VBG
into IN
anything NN
. .

We PRP
do VBP
n't RB
want VB
to TO
be VB
party NN
to TO
a DT
second JJ
rejection NN
. .
'' ''

Indeed RB
, ,
British NNP
Air NNP
seemed VBD
to TO
be VB
distancing VBG
itself PRP
from IN
the DT
troubled JJ
transaction NN
early RB
in IN
an DT
effort NN
to TO
avoid VB
any DT
further JJ
embarrassment NN
. .

The DT
original JJ
transaction NN
fell VBD
through IN
on IN
the DT
same JJ
day NN
British NNP
Air NNP
shareholders NNS
approved VBD
the DT
plan NN
at IN
a DT
special JJ
meeting NN
after IN
the DT
British JJ
succeeded VBN
in IN
arranging VBG
the DT
financing NN
for IN
its PRP$
equity NN
contribution NN
. .

The DT
carrier NN
also RB
seemed VBD
eager JJ
to TO
place VB
blame NN
on IN
its PRP$
American JJ
counterparts NNS
. .

`` ``
The DT
-LCB- (
buy-out NN
-RCB- )
consortium NN
ceased VBD
to TO
exist VB
because IN
our PRP$
American JJ
partners NNS
were VBD
not RB
capable JJ
of IN
organizing VBG
the DT
financing NN
, ,
'' ''
a DT
British NNP
Air NNP
spokesman NN
said VBD
. .

British JJ
Airways NNPS
may MD
have VB
begun VBN
to TO
have VB
second JJ
thoughts NNS
about IN
the DT
transaction NN
after IN
the DT
Transportation NNP
Department NNP
forced VBD
Northwest NNP
's POS
Airlines NNPS
' POS
new JJ
owners NNS
to TO
restructure VB
the DT
equity NN
contribution NN
of IN
KLM NNP
Royal NNP
Dutch JJ
Airlines NNPS
in IN
that DT
carrier NN
. .

Most JJS
of IN
the DT
department NN
's POS
statements NNS
since IN
the DT
Northwest NNP
transaction NN
indicated VBD
it PRP
planned VBD
to TO
curtail VB
foreign JJ
ownership NN
stakes NNS
in IN
U.S. NNP
carriers NNS
. .

Even RB
before IN
British NNP
Air NNP
's POS
announcement NN
, ,
pilot NN
union NN
leaders NNS
had VBD
been VBN
meeting NN
in IN
Chicago NNP
yesterday NN
to TO
consider VB
their PRP$
options NNS
. .

The DT
leaders NNS
expressed VBD
support NN
for IN
trying VBG
to TO
revive VB
the DT
bid NN
following VBG
a DT
briefing NN
Wednesday NNP
by IN
the DT
union NN
's POS
advisers NNS
, ,
Lazard NNP
Freres NNP
& CC
Co. NNP
and CC
Paul NNP
, ,
Weiss NNP
, ,
Rifkind NNP
Wharton NNP
& CC
Garrison NNP
. .

They PRP
also RB
unanimously RB
re-elected VBN
Mr. NNP
Dubinsky NNP
, ,
the DT
union NN
chairman NN
who WP
has VBZ
led VBN
the DT
pilots NNS
' POS
2 CD
1\/2-year JJ
fight NN
to TO
take VB
control NN
of IN
the DT
airline NN
. .

UAL NNP
's POS
advisers NNS
have VBP
indicated VBN
previously RB
that IN
it PRP
may MD
take VB
a DT
while JJ
to TO
come VB
forward RB
with IN
a DT
revised VBN
plan NN
since IN
they PRP
want VBP
to TO
have VB
firm NN
bank NN
commitments NNS
before IN
launching VBG
a DT
new JJ
bid NN
. .

They PRP
have VBP
maintained VBN
that IN
banks NNS
remain VBP
interested JJ
in IN
financing VBG
the DT
transaction NN
. .

The DT
buy-out NN
fell VBD
through IN
after IN
Citicorp NNP
and CC
Chase NNP
Manhattan NNP
Corp. NNP
, ,
the DT
lead NN
banks NNS
in IN
the DT
transaction NN
, ,
failed VBD
to TO
obtain VB
$ $
7.2 CD
billion CD
in IN
financing NN
needed VBN
for IN
the DT
plan NN
. .

Italy NNP
's POS
industrial JJ
wholesale JJ
sales NNS
index NN
rose VBD
13.2 CD
% NN
in IN
June NNP
from IN
a DT
year NN
earlier RBR
, ,
the DT
state NN
statistical JJ
institute NN
Istat NNP
said VBD
. .

The DT
June NNP
increase NN
compared VBN
with IN
a DT
rise NN
of IN
10.5 CD
% NN
in IN
May NNP
from IN
a DT
year NN
earlier RBR
. .

Domestic JJ
wholesale JJ
sales NNS
rose VBD
11.9 CD
% NN
from IN
a DT
year NN
earlier RBR
, ,
while IN
foreign JJ
sales NNS
jumped VBD
17.3 CD
% NN
, ,
Istat NNP
said VBD
. .

For IN
the DT
first JJ
six CD
months NNS
, ,
wholesale JJ
sales NNS
rose VBD
12.3 CD
% NN
from IN
the DT
year NN
before RB
, ,
reflecting VBG
to TO
a DT
11.5 CD
% NN
jump NN
in IN
domestic JJ
sales NNS
and CC
a DT
14.6 CD
% NN
boost NN
in IN
foreign JJ
sales NNS
. .

Sales NNS
of IN
capital NN
goods NNS
to TO
foreign JJ
and CC
domestic JJ
destinations NNS
increased VBN
16.6 CD
% NN
in IN
the DT
January-June JJ
period NN
from IN
a DT
year NN
earlier RBR
. .

Sales NNS
of IN
consumer NN
goods NNS
rose VBD
6.9 CD
% NN
in IN
the DT
same JJ
period NN
, ,
while IN
sales NNS
of IN
intermediate JJ
goods NNS
were VBD
up IN
13.8 CD
% NN
from IN
a DT
year NN
ago RB
. .

Senate NNP
Democrats NNPS
favoring VBG
a DT
cut NN
in IN
the DT
capital-gains NNS
tax VBP
have VBP
decided VBN
, ,
under IN
pressure NN
from IN
their PRP$
leaders NNS
, ,
not RB
to TO
offer VB
their PRP$
own JJ
proposal NN
, ,
placing VBG
another DT
obstacle NN
in IN
the DT
path NN
of IN
President NNP
Bush NNP
's POS
legislative JJ
priority NN
. .

A DT
core NN
group NN
of IN
six CD
or CC
so RB
Democratic JJ
senators NNS
has VBZ
been VBN
working VBG
behind IN
the DT
scenes NNS
to TO
develop VB
a DT
proposal NN
to TO
reduce VB
the DT
tax NN
on IN
the DT
gain NN
from IN
the DT
sale NN
of IN
assets NNS
. .

The DT
plan NN
was VBD
complete JJ
except IN
for IN
finishing VBG
touches NNS
, ,
and CC
there EX
was VBD
talk VB
that IN
it PRP
would MD
be VB
unveiled VBN
as RB
early RB
as IN
yesterday NN
. .

But CC
Senate NNP
Majority NNP
Leader NNP
George NNP
Mitchell NNP
-LRB- (
D. NNP
, ,
Maine NNP
-RRB- )
, ,
a DT
vigorous JJ
opponent NN
of IN
the DT
capital-gains NNS
tax VBP
cut VB
, ,
called VBD
the DT
group NN
to TO
meet VB
with IN
him PRP
Wednesday NNP
night NN
and CC
again RB
yesterday NN
. .

Sen. NNP
Mitchell NNP
urged VBD
them PRP
to TO
desist VB
. .
Afterward RB
, ,
leaders NNS
of IN
the DT
dissident JJ
Democrats NNPS
relented VBD
, ,
and CC
said VBD
they PRP
would MD
n't RB
offer VB
their PRP$
own JJ
proposal NN
as IN
they PRP
had VBD
planned VBN
. .

The DT
decision NN
is VBZ
a DT
setback NN
for IN
President NNP
Bush NNP
, ,
who WP
needs VBZ
the DT
support NN
of IN
Democrats NNPS
to TO
pass VB
the DT
tax NN
cut NN
through IN
the DT
Democratic-controlled JJ
Senate NNP
. .

Having VBG
a DT
proposal NN
sponsored VBN
by IN
Democrats NNPS
would MD
have VB
given VBN
the DT
president NN
an DT
advantage NN
. .

Having VBG
only RB
a DT
Republican NNP
measure NN
makes VBZ
the DT
task NN
harder JJR
. .

Still RB
, ,
Sen. NNP
Bob NNP
Packwood NNP
-LRB- (
R. NNP
, ,
Ore. NNP
-RRB- )
, ,
the DT
lead NN
sponsor NN
of IN
the DT
Republican NNP
capital-gains NNS
amendment NN
, ,
predicted VBD
that IN
the DT
tax NN
cut NN
would MD
be VB
enacted VBN
this DT
year NN
. .

He PRP
said VBD
a DT
clear JJ
majority NN
of IN
senators NNS
back RB
the DT
tax NN
reduction NN
and CC
that IN
ultimately RB
there EX
would MD
be VB
enough JJ
senators NNS
to TO
overcome VB
any DT
procedural JJ
hurdle NN
the DT
Democratic JJ
leadership NN
might MD
erect VB
. .

But CC
Sen. NNP
Mitchell NNP
, ,
buoyed VBN
by IN
his PRP$
victory NN
among IN
fellow NN
Democrats NNPS
, ,
strongly RB
disagreed VBD
. .

Mr. NNP
Mitchell NNP
has VBZ
been VBN
predicting VBG
that IN
the DT
president NN
's POS
initiative NN
would MD
fail VB
this DT
year NN
. .

Yesterday NN
, ,
in IN
an DT
interview NN
, ,
he PRP
added VBD
that IN
the DT
Democrats NNPS
' POS
decision NN
`` ``
increases VBZ
the DT
likelihood NN
that IN
a DT
capital-gains NNS
tax VBP
cut VB
will MD
not RB
pass VB
this DT
year NN
. .
'' ''

Mr. NNP
Mitchell NNP
's POS
first JJ
victory NN
came VBD
last JJ
week NN
, ,
when WRB
the DT
Senate NNP
passed VBD
a DT
deficit-reduction NN
bill NN
that WDT
did VBD
n't RB
contain VB
a DT
capital-gains NNS
provision NN
. .

That DT
vote NN
made VBD
it PRP
unlikely JJ
that IN
a DT
capital-gains NNS
tax VBP
cut VB
would MD
be VB
included VBN
in IN
the DT
final JJ
bill NN
, ,
now RB
being VBG
drafted VBN
by IN
House NNP
and CC
Senate NNP
negotiators NNS
. .

The DT
House NNP
version NN
of IN
the DT
bill NN
does VBZ
include VBP
the DT
tax NN
cut NN
. .

Now RB
Republican NNP
leaders NNS
are VBP
concentrating VBG
on IN
attaching VBG
a DT
capital-gains NNS
amendment NN
to TO
some DT
other JJ
bill NN
, ,
perhaps RB
a DT
measure NN
raising VBG
the DT
federal JJ
borrowing NN
limit NN
or CC
a DT
second JJ
tax NN
bill NN
that WDT
would MD
follow VB
on IN
the DT
heels NNS
of IN
the DT
deficit-reduction NN
legislation NN
. .

To TO
help VB
lay VBD
the DT
groundwork NN
for IN
that DT
fight NN
, ,
President NNP
Bush NNP
plans VBZ
early JJ
next JJ
week NN
to TO
meet VB
at IN
the DT
White NNP
House NNP
with IN
some DT
20 CD
Democratic JJ
senators NNS
who WP
favor VBP
cutting VBG
the DT
capital-gains NNS
tax VBP
or CC
are VBP
undecided JJ
on IN
the DT
issue NN
. .

The DT
president NN
apparently RB
will MD
have VB
only RB
one CD
bill NN
to TO
push VB
, ,
Sen. NNP
Packwood NNP
's POS
, ,
and CC
at IN
least JJS
some DT
of IN
the DT
dissident JJ
Democrats NNPS
plan NN
to TO
support VB
it PRP
. .

`` ``
I PRP
may MD
want VB
to TO
offer VB
additional JJ
amendments NNS
to TO
improve VB
it PRP
when WRB
the DT
bill NN
comes VBZ
to TO
the DT
floor NN
, ,
'' ''
said VBD
Sen. NNP
David NNP
Boren NNP
-LRB- (
D. NNP
, ,
Okla. NNP
-RRB- )
, ,
a DT
leader NN
of IN
those DT
Democrats NNPS
. .
The DT
Packwood NNP
plan NN
, ,
as IN
expected VBN
, ,
would MD
allow VB
individuals NNS
to TO
exclude VB
from IN
income NN
5 NN
% NN
of IN
the DT
gain NN
from IN
the DT
sale NN
of IN
a DT
capital NN
asset NN
held VBN
for IN
more JJR
than IN
one CD
year NN
. .

The DT
exclusion NN
would MD
rise VB
five CD
percentage NN
points NNS
for IN
each DT
year NN
the DT
asset NN
was VBD
held VBN
, ,
until IN
it PRP
reached VBD
a DT
maximum NN
of IN
35 CD
% NN
after IN
seven CD
years NNS
. .

The DT
exclusion NN
would MD
apply VB
to TO
assets NNS
sold VBN
after IN
Oct. NNP
1 CD
. .

As IN
an DT
alternative NN
, ,
taxpayers NNS
could MD
chose VBD
to TO
reduce VB
their PRP$
gains NNS
by IN
an DT
inflation NN
index NN
. .

For IN
corporations NNS
, ,
the DT
top JJ
tax NN
rate NN
on IN
the DT
sale NN
of IN
assets NNS
held VBN
for IN
more JJR
than IN
three CD
years NNS
would MD
be VB
cut VBN
to TO
33 CD
% NN
from IN
the DT
current JJ
top JJ
rate NN
of IN
34 CD
% NN
. .

That DT
rate NN
would MD
gradually RB
decline VB
to TO
as RB
little JJ
as IN
29 CD
% NN
for IN
corporate JJ
assets NNS
held VBN
for IN
15 CD
years NNS
. .

The DT
Packwood NNP
plan NN
also RB
would MD
include VB
a DT
proposal NN
, ,
designed VBN
by IN
Sen. NNP
William NNP
Roth NNP
-LRB- (
R. NNP
, ,
Del. NNP
-RRB- )
, ,
that WDT
would MD
create VB
new JJ
tax NN
benefits NNS
for IN
individual JJ
retirement NN
accounts NNS
. .
The DT
Roth NNP
plan NN
would MD
create VB
a DT
new JJ
, ,
non-deductible JJ
IRA NNP
from IN
which WDT
money NN
could MD
be VB
withdrawn VBN
tax-free JJ
not RB
only RB
for IN
retirement NN
, ,
but CC
also RB
for IN
the DT
purchase NN
of IN
a DT
first JJ
home NN
, ,
education NN
expenses NNS
and CC
medical JJ
expenses NNS
. .

Current JJ
IRAs NNS
could MD
be VB
rolled VBN
over IN
into IN
the DT
new JJ
IRAs NNS
, ,
but CC
would MD
be VB
subject NN
to TO
tax VB
though IN
no DT
penalty NN
. .

Westmoreland NNP
Coal NNP
Co. NNP
, ,
realizing VBG
benefits NNS
of IN
a DT
sustained VBN
effort NN
to TO
cut VB
costs NNS
and CC
boost VB
productivity NN
, ,
reported VBD
sharply RB
improved VBN
third-quarter JJ
results NNS
. .

The DT
producer NN
and CC
marketer NN
of IN
low-sulfur JJ
coal NN
said VBD
net JJ
income NN
for IN
the DT
quarter NN
was VBD
$ $
5.9 CD
million CD
, ,
or CC
71 CD
cents NNS
a DT
share NN
, ,
on IN
revenue NN
of IN
$ $
145.4 CD
million CD
. .

For IN
the DT
year-earlier JJ
period NN
, ,
the DT
company NN
reported VBD
a DT
loss NN
of IN
$ $
520,000 CD
or CC
six CD
cents NNS
a DT
share NN
. .

In IN
the DT
latest JJS
nine CD
months NNS
, ,
the DT
company NN
earned VBD
$ $
8.5 CD
million CD
, ,
or CC
$ $
1.03 CD
a DT
share NN
. .

Last JJ
year NN
's POS
net JJ
loss NN
of IN
$ $
3,524,000 CD
included VBD
a DT
benefit NN
of IN
$ $
1,640,000 CD
from IN
an DT
accounting NN
change NN
. .
Revenue NN
for IN
the DT
nine CD
months NNS
rose VBD
to TO
$ $
449 CD
million CD
from IN
$ $
441.1 CD
million CD
. .

In IN
an DT
interview NN
, ,
Pemberton NNP
Hutchinson NNP
, ,
president NN
and CC
chief JJ
executive NN
, ,
cited VBD
several JJ
reasons NNS
for IN
the DT
improvement NN
: :
higher JJR
employee NN
productivity NN
and CC
`` ``
good JJ
natural JJ
conditions NNS
'' ''
in IN
the DT
mines NNS
, ,
as RB
well RB
as IN
lower JJR
costs NNS
for IN
materials NNS
, ,
administrative JJ
overhead NN
and CC
debt NN
interest NN
. .

In IN
the DT
latest JJS
nine CD
months NNS
, ,
Mr. NNP
Hutchinson NNP
said VBD
, ,
total JJ
coal NN
sales NNS
rose VBD
to TO
about IN
14.6 CD
million CD
tons NNS
from IN
about IN
14.3 CD
million CD
tons NNS
a DT
year NN
earlier RBR
. .

In IN
addition NN
, ,
long-term JJ
debt NN
has VBZ
been VBN
trimmed VBN
to TO
about RB
$ $
72 CD
million CD
from IN
$ $
96 CD
million CD
since IN
Jan. NNP
1 CD
. .

He PRP
predicted VBD
the DT
debt NN
ratio NN
will MD
improve VB
further JJ
in IN
coming VBG
quarters NNS
. .

Westmoreland NNP
's POS
strategy NN
is VBZ
to TO
retain VB
and CC
expand VB
its PRP$
core NN
business NN
of IN
mining NN
and CC
selling VBG
low-sulphur JJ
coal NN
in IN
the DT
Appalachia NNP
region NN
. .

The DT
operating VBG
territory NN
includes VBZ
coal NN
terminals NNS
on IN
the DT
Ohio NNP
River NNP
and CC
in IN
Newport NNP
News NNP
, ,
Va NNP
. .

Westmoreland NNP
exports NNS
about IN
a DT
fourth JJ
of IN
its PRP$
coal NN
tonnage NN
, ,
including VBG
a DT
significant JJ
amount NN
of IN
metallurgical JJ
coal NN
produced VBN
by IN
others NNS
that WDT
is VBZ
used VBN
by IN
steelmakers NNS
overseas JJ
. .

For IN
the DT
past JJ
couple NN
of IN
years NNS
, ,
Westmoreland NNP
has VBZ
undertaken VBN
an DT
aggressive JJ
streamlining NN
of IN
all DT
aspects NNS
of IN
its PRP$
business NN
. .

Marginal JJ
operations NNS
and CC
assets NNS
have VBP
been VBN
sold VBN
. .

The DT
size NN
of IN
the DT
company NN
's POS
board NN
has VBZ
been VBN
reduced VBN
to TO
eight CD
directors NNS
from IN
13 CD
. .

About IN
140 CD
salaried JJ
management NN
jobs NNS
and CC
hundreds NNS
of IN
hourly JJ
wage NN
positions NNS
have VBP
been VBN
eliminated VBN
. .

Even JJ
perks NNS
have VBP
been VBN
reduced VBN
. .

For IN
example NN
, ,
the DT
chief JJ
executive NN
himself PRP
now RB
pays VBZ
20 CD
% NN
of IN
the DT
cost NN
of IN
his PRP$
health NN
benefits NNS
; :
the DT
company NN
used VBN
to TO
pay VB
100 CD
% NN
. .

`` ``
I PRP
think VBP
the DT
ship NN
is VBZ
now RB
righted VBN
, ,
the DT
bilges NNS
are VBP
pumped VBN
and CC
we PRP
are VBP
on IN
course NN
, ,
'' ''
Mr. NNP
Hutchinson NNP
said VBD
of IN
the DT
restructuring NN
program NN
. .

`` ``
Much RB
of IN
what WP
we PRP
set VBD
out IN
to TO
do VB
is VBZ
completed VBN
. .
'' ''

But CC
he PRP
cautioned VBD
that IN
Westmoreland NNP
's POS
third JJ
quarter NN
is VBZ
typically RB
better JJR
than IN
the DT
fourth JJ
, ,
so RB
investors NNS
`` ``
should MD
n't RB
just RB
multiply VB
the DT
third JJ
quarter NN
by IN
four CD
'' ''
and CC
assume VB
the DT
same JJ
rate NN
of IN
improvement NN
can MD
be VB
sustained VBN
. .

One CD
difference NN
, ,
he PRP
said VBD
, ,
is VBZ
that IN
the DT
fourth JJ
quarter NN
has VBZ
significantly RB
fewer JJR
workdays NNS
because IN
of IN
holidays NNS
and CC
the DT
hunting NN
season NN
. .

`` ``
I PRP
do VBP
n't RB
want VB
to TO
give VB
the DT
impression NN
that DT
everybody NN
can MD
relax VB
now RB
, ,
'' ''
he PRP
said VBD
. .

`` ``
We PRP
have VBP
to TO
keep VB
working VBG
at IN
improving VBG
our PRP$
core NN
business NN
to TO
stay VB
efficient JJ
. .

It PRP
's VBZ
a DT
process NN
that IN
never RB
really RB
ends VBZ
. .
'' ''

Nevertheless RB
, ,
Mr. NNP
Hutchinson NNP
predicted VBD
that IN
1989 CD
would MD
be VB
`` ``
solidly RB
profitable JJ
'' ''
for IN
Westmoreland NNP
and CC
that IN
1990 CD
would MD
bring VB
`` ``
more JJR
of IN
the DT
same JJ
. .
'' ''

For IN
all DT
of IN
1988 CD
, ,
the DT
company NN
reported VBD
an DT
after-tax JJ
operating NN
loss NN
of IN
$ $
134,000 CD
on IN
revenue NN
of IN
$ $
593.5 CD
million CD
. .

An DT
accounting NN
adjustment NN
made VBD
net JJ
income NN
$ $
1.5 CD
million CD
, ,
or CC
18 CD
cents NNS
a DT
share NN
. .

In IN
a DT
move NN
that WDT
complements VBZ
the DT
company NN
's POS
basic JJ
strategy NN
, ,
its PRP$
Westmoreland NNP
Energy NNP
Inc. NNP
unit NN
is VBZ
developing VBG
four CD
coal-fired JJ
cogeneration NN
plants NNS
with IN
a DT
partner NN
in IN
Virginia NNP
. .

Some DT
of IN
the DT
coal NN
the DT
plants NNS
buy VBP
will MD
come VB
from IN
Westmoreland NNP
mines NNS
. .

Mr. NNP
Hutchinson NNP
predicted VBD
that IN
the DT
unit NN
's POS
contribution NN
to TO
company NN
results NNS
in IN
the DT
1990s CD
`` ``
will MD
be VB
exciting JJ
. .
'' ''

He PRP
said VBD
Westmoreland NNP
is VBZ
looking VBG
at IN
investment NN
stakes NNS
in IN
other JJ
cogeneration NN
plants NNS
east NN
of IN
the DT
Mississippi NNP
River NNP
. .

Westmoreland NNP
expects VBZ
energy NN
demand NN
to TO
grow VB
annually RB
in IN
the DT
2.5 CD
% NN
range NN
in IN
the DT
early JJ
1990s CD
. .

`` ``
We PRP
see VBP
coal NN
's POS
piece NN
of IN
the DT
action NN
growing VBG
, ,
'' ''
Mr. NNP
Hutchinson NNP
said VBD
. .

`` ``
Coal NNP
prices NNS
, ,
while IN
not RB
skyrocketing VBG
, ,
will MD
grow VB
modestly RB
in IN
real JJ
terms NNS
, ,
we PRP
think VBP
. .

Chase NNP
Manhattan NNP
Corp. NNP
, ,
after IN
trying VBG
unsuccessfully RB
to TO
sell VB
its PRP$
interest NN
in IN
its PRP$
lower JJR
Manhattan NNP
operations NNS
building NN
, ,
has VBZ
exercised VBN
its PRP$
option NN
to TO
purchase VB
the DT
50-story JJ
office NN
tower NN
. .

Chase NNP
had VBD
purchased VBN
an DT
option NN
to TO
buy VB
the DT
building NN
at IN
One CD
New NNP
York NNP
Plaza NNP
for IN
an DT
undisclosed JJ
sum NN
from IN
the DT
late JJ
Sol NNP
Atlas NNP
as IN
part NN
of IN
its PRP$
original JJ
lease NN
in IN
1970 CD
. .

The DT
current JJ
transaction NN
cost NN
the DT
bank NN
approximately RB
$ $
140 CD
million CD
. .

Of IN
that DT
amount NN
, ,
$ $
20 CD
million CD
was VBD
payment NN
for IN
the DT
land NN
underneath IN
the DT
building NN
and CC
the DT
rest NN
was VBD
for IN
the DT
building NN
itself PRP
. .

The DT
building NN
houses NNS
about IN
4,500 CD
Chase NNP
workers NNS
, ,
most RBS
of IN
whom WP
will MD
be VB
moved VBN
to TO
downtown NN
Brooklyn NNP
after IN
the DT
bank NN
's POS
new JJ
back JJ
office NN
center NN
is VBZ
completed VBN
in IN
1993 CD
. .

The DT
move NN
is VBZ
part NN
of IN
Chase NNP
's POS
strategy NN
to TO
consolidate VB
its PRP$
back JJ
offices NNS
under IN
one CD
roof NN
. .

The DT
headquarters NN
is VBZ
located VBN
a DT
few JJ
blocks NNS
away RB
at IN
1 CD
Chase NNP
Manhattan NNP
Plaza NNP
. .

As IN
part NN
of IN
its PRP$
decision NN
to TO
leave VB
the DT
building NN
, ,
Chase NNP
tried VBD
to TO
sell VB
its PRP$
interest NN
, ,
along IN
with IN
the DT
Atlas NNP
estate NN
's POS
interest NN
, ,
shortly RB
after IN
the DT
October NNP
1987 CD
stock NN
market NN
crash NN
. .

Chase NNP
Senior NNP
Vice NNP
President NNP
George NNP
Scandalios NNP
said VBD
the DT
bank NN
decided VBD
to TO
exercise VB
its PRP$
option NN
after IN
bids NNS
fell VBD
short NN
of IN
expectations NNS
. .

He PRP
said VBD
Chase NNP
and CC
the DT
Atlas NNP
estate NN
were VBD
looking VBG
to TO
sell VB
the DT
entire JJ
building NN
for IN
$ $
400 CD
million CD
to TO
$ $
475 CD
million CD
, ,
but CC
did VBD
n't RB
get VB
an DT
offer NN
for IN
more JJR
than IN
$ $
375 CD
million CD
. .

As IN
the DT
building NN
's POS
new JJ
owner NN
, ,
Chase NNP
will MD
have VB
its PRP$
work NN
cut NN
out IN
for IN
it PRP
. .

Chase NNP
is VBZ
vacating VBG
1.1 CD
million CD
square NN
feet NNS
of IN
space NN
, ,
and CC
Salomon NNP
Brothers NNP
Inc. NNP
, ,
whose WP$
headquarters NN
is VBZ
in IN
the DT
building NN
, ,
also RB
plans VBZ
to TO
move VB
shortly RB
. .

In IN
addition NN
, ,
another DT
major JJ
building NN
tenant NN
, ,
Thomson NNP
McKinnon NNP
Inc. NNP
's POS
Thomson NNP
McKinnon NNP
Securities NNPS
, ,
likely JJ
will MD
vacate VB
the DT
premises NNS
as IN
part NN
of IN
its PRP$
liquidation NN
. .

New NNP
York NNP
real JJ
estate NN
brokerage NN
Edward NNP
S. NNP
Gordon NNP
Co. NNP
will MD
have VB
the DT
difficult JJ
task NN
of IN
finding VBG
new JJ
tenants NNS
. .

Even RB
with IN
its PRP$
striking JJ
views NNS
of IN
the DT
New NNP
York NNP
harbor NN
, ,
the DT
building NN
is VBZ
considered VBN
antiquated JJ
by IN
modern JJ
office NN
standards NNS
. .

And CC
Chase NNP
will MD
have VB
to TO
spend VB
approximately RB
$ $
50 CD
million CD
to TO
remove VB
asbestos NN
from IN
the DT
premises NNS
. .

WALL NNP
STREET NNP
, ,
SHAKE VB
hands NNS
with IN
George NNP
Orwell NNP
. .

The DT
author NN
of IN
the DT
futuristic JJ
novel NN
`` ``
1984 CD
'' ''
invented VBN
a DT
language NN
called VBN
Newspeak NNP
that WDT
made VBD
it PRP
impossible JJ
to TO
fully RB
develop VB
a DT
heretical JJ
thought VBD
-- :
that DT
is VBZ
, ,
anything NN
negative JJ
about IN
the DT
policies NNS
and CC
practices NNS
of IN
the DT
state NN
. .

Wall NNP
Street NNP
has VBZ
n't RB
gotten VBN
that IN
far RB
yet RB
, ,
but CC
it PRP
has VBZ
made VBN
a DT
promising JJ
start NN
. .

Its PRP$
language NN
-- :
call VB
it PRP
Streetspeak NNP
-- :
is VBZ
increasingly RB
mellifluous JJ
, ,
reassuring VBG
, ,
and CC
designed VBD
to TO
make VB
financial JJ
products NNS
and CC
maneuvers NNS
appear VBP
better JJR
, ,
safer JJR
or CC
cheaper JJR
than IN
they PRP
really RB
are VBP
. .

When WRB
something NN
undeniably RB
nasty JJ
happens VBZ
, ,
a DT
few JJ
euphemisms NNS
are VBP
deployed VBN
to TO
simply RB
make VB
it PRP
disappear VB
, ,
much JJ
as IN
a DT
fresh JJ
grave NN
may MD
be VB
covered VBN
by IN
a DT
blanket NN
of IN
flowers NNS
. .

For IN
example NN
, ,
we PRP
'll MD
bet VB
you PRP
thought VBD
that IN
the DT
stock NN
market NN
crashed VBD
two CD
years NNS
ago RB
. .

Wrong JJ
. .

According VBG
to TO
some DT
of IN
the DT
grand JJ
panjandrums NNS
of IN
the DT
market NN
, ,
it PRP
never RB
happened VBD
. .

In IN
their PRP$
lexicon NN
the DT
508-point JJ
collapse NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
on IN
Oct. NNP
19 CD
, ,
1987 CD
, ,
was VBD
just RB
a DT
big JJ
blip NN
. .

Trotting VBG
out RP
a DT
much-beloved JJ
Streetspeak NNP
term NN
, ,
New NNP
York NNP
Stock NNP
Exchange NNP
Chairman NNP
John NNP
Phelan NNP
recently RB
declared VBD
that DT
history NN
would MD
record VB
the DT
event NN
as IN
only RB
`` ``
a DT
major JJ
technical JJ
correction NN
. .
'' ''

-LRB- (
Another DT
much-beloved JJ
saying NN
, ,
however RB
, ,
this DT
one CD
in IN
plain JJ
English NNP
, ,
holds VBZ
that IN
if IN
something NN
walks VBZ
like IN
a DT
duck NN
and CC
quacks NNS
like IN
a DT
duck NN
, ,
it PRP
is VBZ
a DT
duck NN
. .

On IN
Oct. NNP
29 CD
, ,
1929 CD
-- :
a DT
date NN
historians NNS
stubbornly RB
insist VBP
on IN
associating VBG
with IN
the DT
dreaded VBN
C-word NN
-- :
the DT
DJ NNP
industrials NNS
fell VBD
12.8 CD
% NN
. .

In IN
the DT
`` ``
technical JJ
correction NN
'' ''
of IN
two CD
years NNS
ago RB
, ,
they PRP
lost VBD
a DT
whopping JJ
22.6 CD
% NN
. .
-RRB- )

Customers NNS
hear VBP
a DT
lot NN
of IN
this DT
stuff NN
from IN
people NNS
who WP
try VBP
to TO
sell VB
them PRP
stock VB
. .

These DT
people NNS
used VBN
to TO
be VB
called VBN
brokers NNS
, ,
but CC
apparently RB
this DT
word NN
either DT
is VBZ
not RB
grandiose JJ
enough RB
or CC
carries VBZ
too RB
many JJ
negative JJ
connotations NNS
from IN
the DT
aforementioned JJ
technical JJ
correction NN
, ,
when WRB
terrified VBN
customers NNS
could MD
n't RB
raise VB
brokers NNS
on IN
the DT
phone NN
. .

Either CC
way NN
, ,
the DT
word NN
`` ``
broker NN
'' ''
is VBZ
clearly RB
out IN
of IN
favor NN
. .

Of IN
the DT
major JJ
New NNP
York-based JJ
securities NNS
firms NNS
, ,
only RB
Morgan NNP
Stanley NNP
& CC
Co. NNP
still RB
calls VBZ
its PRP$
salespeople NN
brokers NNS
. .

At IN
Merrill NNP
Lynch NNP
& CC
Co. NNP
and CC
Shearson NNP
Lehman NNP
Hutton NNP
Inc. NNP
, ,
they PRP
are VBP
`` ``
financial JJ
consultants NNS
. .
'' ''

At IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc. NNP
, ,
Prudential NNP
Bache NNP
Securities NNPS
, ,
and CC
Dean NNP
Witter NNP
Reynolds NNP
Inc. NNP
, ,
they PRP
are VBP
`` ``
account NN
executives NNS
. .
'' ''

At IN
PaineWebber NNP
Inc. NNP
, ,
they PRP
are VBP
`` ``
investment NN
executives NNS
. .
'' ''

Such JJ
titles NNS
are VBP
designed VBN
to TO
convey VB
a DT
sense NN
of IN
dignified VBN
, ,
broad-scale JJ
competence NN
and CC
expertise NN
in IN
selling VBG
today NN
's POS
myriad JJ
financial JJ
products NNS
. .

It PRP
is VBZ
a DT
competence NN
and CC
expertise NN
that IN
some DT
brokers NNS
themselves PRP
, ,
overwhelmed VBN
by IN
all PDT
the DT
new JJ
things NNS
being VBG
dreamed VBN
up IN
for IN
them PRP
to TO
peddle VB
, ,
do VB
n't RB
feel VB
. .

`` ``
It PRP
s PRP
almost JJ
product NN
de FW
jour FW
, ,
'' ''
grouses VBZ
one CD
account NN
executive NN
at IN
Dean NNP
Witter NNP
. .

The DT
transmogrified VBD
brokers NNS
never RB
let VBP
the DT
C-word NN
cross VB
their PRP$
lips NNS
, ,
instead RB
stressing VBG
such JJ
terms NNS
as IN
`` ``
safe JJ
, ,
'' ''
`` ``
insured VBN
'' ''
and CC
`` ``
guaranteed VBN
'' ''
-- :
even RB
though IN
these DT
terms NNS
may MD
be VB
severely RB
limited JJ
in IN
their PRP$
application NN
to TO
a DT
particular JJ
new JJ
financial JJ
product NN
. .

The DT
names NNS
of IN
some DT
of IN
these DT
products NNS
do VBP
n't RB
suggest VB
the DT
risk NN
involved VBN
in IN
buying VBG
them PRP
, ,
either RB
. .

A DT
case NN
in IN
point NN
: :
`` ``
government-plus JJ
'' ''
bond NN
funds NNS
. .

What WP
could MD
imply VB
more JJR
safety NN
than IN
investing VBG
in IN
government NN
bonds NNS
? .

What WP
could MD
be VB
better JJR
than IN
getting VBG
a DT
tad NN
more JJR
income NN
from IN
them PRP
-LRB- (
the DT
plus CC
-RRB- )
than IN
other JJ
people NNS
? .

Indeed RB
, ,
conservative JJ
investors NNS
, ,
many NN
of IN
them PRP
elderly JJ
, ,
have VBP
poured VBN
more JJR
than IN
$ $
50 CD
billion CD
into IN
such JJ
funds NNS
, ,
which WDT
promise VBP
fatter JJR
yields NNS
than IN
ordinary JJ
Treasury NNP
bonds NNS
-- :
only RB
to TO
learn VB
later RB
that IN
these DT
funds NNS
use VBP
part NN
of IN
their PRP$
money NN
to TO
dabble VB
in IN
high-risk JJ
bond NN
options NNS
, ,
a DT
gambler NN
's POS
game NN
. .

When WRB
a DT
certain JJ
class NN
of IN
investment NN
performs VBZ
so RB
poorly RB
that IN
its PRP$
reputation NN
is VBZ
tarnished VBN
, ,
look VB
for IN
Wall NNP
Street NNP
to TO
give VB
it PRP
a DT
new JJ
moniker NN
. .

This DT
seems VBZ
to TO
be VB
happening VBG
now RB
to TO
limited JJ
partnerships NNS
, ,
many NN
of IN
which WDT
either DT
have NN
gone VBN
into IN
the DT
tank NN
in IN
recent JJ
years NNS
or CC
have VBP
otherwise RB
been VBN
grievous JJ
disappointments NNS
. .

They PRP
are VBP
still RB
being VBG
sold VBN
, ,
but CC
more JJR
and CC
more RBR
often RB
as IN
`` ``
direct JJ
investments NNS
'' ''
-- :
with IN
all PDT
the DT
same JJ
risks NNS
they PRP
had VBD
under IN
the DT
old JJ
label NN
. .

In IN
such JJ
cases NNS
, ,
the DT
game NN
has VBZ
n't RB
changed VBN
, ,
only RB
the DT
name NN
. .

In IN
others NNS
a DT
familiar JJ
old JJ
name NN
still RB
prevails VBZ
, ,
but CC
the DT
underlying VBG
game NN
has VBZ
changed VBN
. .

For IN
example NN
, ,
`` ``
no DT
load NN
'' ''
mutual JJ
funds NNS
remain VBP
a DT
favorite NN
with IN
investors NNS
because IN
they PRP
do VBP
n't RB
carry VB
a DT
frontend NN
sales NNS
commission NN
. .

Getting VBG
out IN
of IN
them PRP
, ,
however RB
, ,
may MD
be VB
a DT
different JJ
story NN
now RB
. .

Traditional JJ
no-loads NNS
made VBD
their PRP$
money NN
by IN
charging VBG
an DT
annual JJ
management NN
fee NN
, ,
usually RB
a DT
modest JJ
one CD
; :
they PRP
imposed VBD
no DT
other JJ
fees NNS
, ,
and CC
many JJ
still RB
do VBP
n't RB
. .

In IN
recent JJ
years NNS
, ,
though RB
, ,
a DT
passel NN
of IN
others NNS
flying VBG
the DT
no-load JJ
flag NN
have VBP
been VBN
imposing VBG
hefty JJ
charges NNS
-- :
all PDT
the DT
way NN
up IN
to TO
6 CD
% NN
-- :
when WRB
an DT
investor NN
sells VBZ
his PRP$
shares NNS
. .

Should MD
n't RB
they PRP
properly RB
be VBP
called VBN
exit-load JJ
funds NNS
? .

The DT
mutual-fund JJ
industry NN
is VBZ
debating VBG
the DT
question NN
, ,
but CC
do VBP
n't RB
expect VB
a DT
new JJ
name NN
while IN
the DT
old JJ
one CD
is VBZ
working VBG
so RB
well RB
. .

And CC
do VBP
n't RB
expect VB
anyone NN
to TO
change VB
the DT
term NN
`` ``
blue JJ
chip NN
, ,
'' ''
either DT
, ,
even RB
though IN
some DT
of IN
the DT
companies NNS
that WDT
still RB
enjoy VB
the DT
title NN
may MD
be VB
riskier JJR
investments NNS
than IN
they PRP
were VBD
. .

American NNP
Telephone NNP
& CC
Telegraph NNP
Co. NNP
, ,
for IN
one CD
, ,
is VBZ
still RB
a DT
favorite NN
of IN
widows NNS
, ,
orphans NNS
and CC
trust NN
departments NNS
-- :
but CC
shorn VB
of IN
its PRP$
regional JJ
telephone NN
units NNS
and CC
exposed VBN
to TO
competition NN
on IN
every DT
side NN
, ,
it PRP
is VBZ
a DT
far RB
different JJ
investment NN
prospect NN
than IN
it PRP
was VBD
before IN
divestiture NN
. .

Also RB
, ,
blue JJ
chips NNS
in IN
general JJ
have NN
suffered VBN
much RB
more RBR
short-term JJ
price NN
volatility NN
in IN
recent JJ
years NNS
. .

Larry NNP
Biehl NNP
, ,
a DT
money NN
manager NN
in IN
San NNP
Mateo NNP
, ,
Calif. NNP
, ,
blames VBZ
that IN
on IN
the DT
advent NN
of IN
program NN
trading NN
, ,
in IN
which WDT
computers NNS
used VBN
by IN
big JJ
institutional JJ
investors NNS
are VBP
programmed VBN
to TO
buy VB
and CC
sell VB
big JJ
blocks NNS
when WRB
certain JJ
market NN
conditions NNS
prevail VBP
. .

Blue JJ
chips NNS
, ,
he PRP
says VBZ
, ,
`` ``
are VBP
now RB
being VBG
referred VBN
to TO
as IN
poker NN
chips NNS
. .
'' ''

Finally RB
, ,
even RB
the DT
time-honored JJ
strategy NN
called VBN
`` ``
value NN
investing VBG
'' ''
no RB
longer RB
means VBZ
what WP
it PRP
once RB
did VBD
. .

Before IN
the DT
takeover NN
mania NN
of IN
the DT
'80s NNS
, ,
it PRP
referred VBD
to TO
rooting VBG
out IN
through IN
analysis NN
undervalued VBD
stocks NNS
, ,
especially RB
those DT
with IN
shrewd JJ
management NN
, ,
sound NN
fundamentals NNS
and CC
decent JJ
prospects NNS
. .

Now RB
, ,
says VBZ
Mr. NNP
Biehl NNP
, ,
value NN
investing VBG
often RB
means VBZ
`` ``
looking VBG
for IN
downtrodden JJ
companies NNS
with IN
terrible JJ
management NN
that WDT
are VBP
in IN
real JJ
trouble NN
. .
'' ''
To TO
institutional JJ
investors NNS
or CC
brokers NNS
, ,
he PRP
adds VBZ
, ,
a DT
company NN
with IN
value NN
is VBZ
a DT
company NN
at IN
risk NN
of IN
being VBG
swallowed VBN
up RB
. .

Ms. NNP
Bettner NNP
covers VBZ
personal JJ
finance NN
from IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
Los NNP
Angeles NNP
bureau NN
. .

I PRP
was VBD
amused VBN
to TO
read VB
your PRP$
recent JJ
news NN
stories NNS
on IN
the DT
banking NN
industry NN
's POS
reserve NN
additions NNS
and CC
concomitant JJ
threats NNS
to TO
cease VB
making VBG
new JJ
loans NNS
to TO
less-developed JJ
countries NNS
. .

If IN
the DT
whole JJ
story NN
were VBD
told VBN
, ,
it PRP
would MD
read VB
something NN
like IN
this DT
: :

-- :
During IN
the DT
1970s NNS
the DT
commercial JJ
banks NNS
lured VBD
the DT
country NN
loan NN
business NN
away RB
from IN
the DT
bond NN
markets NNS
where WRB
the DT
discipline NN
of IN
a DT
prospectus NN
and CC
`` ``
Use VB
of IN
Proceeds NNS
'' ''
confirmation NN
allowed VBD
lenders NNS
to TO
audit VB
expenditures NNS
of IN
old JJ
loans NNS
before IN
new JJ
loans NNS
were VBD
made VBN
. .

-- :
The DT
reward NN
for IN
that DT
reckless JJ
lending NN
was VBD
high NN
reported VBD
earnings NNS
-LRB- (
and CC
management NN
bonuses NNS
-RRB- )
; :
the DT
price NN
, ,
a DT
sea NN
of IN
bad JJ
loans NNS
. .

-- :
For IN
the DT
past JJ
several JJ
years NNS
, ,
the DT
banks NNS
, ,
lacking VBG
a DT
private JJ
navy NN
to TO
enforce VB
their PRP$
interests NNS
, ,
have VBP
been VBN
pressuring VBG
the DT
U.S. NNP
Treasury NNP
to TO
underwrite VB
their PRP$
bad JJ
LDC NNP
credits NNS
. .

-- :
The DT
Treasury NNP
wisely RB
has VBZ
refused VBN
, ,
but CC
has VBZ
concluded VBN
that IN
indirect JJ
credit NN
support NN
through IN
various JJ
multinational JJ
agencies NNS
should MD
be VB
made VBN
available JJ
for IN
a DT
price NN
: :
either DT
debt NN
reduction NN
or CC
debt-service JJ
reduction NN
or CC
new JJ
loans NNS
-LRB- (
the DT
Brady NNP
Plan NNP
-RRB- )
. .

-- :
The DT
banks NNS
will MD
threaten VB
not RB
to TO
make VB
further JJ
loans NNS
, ,
but CC
in IN
truth NN
, ,
lacking VBG
the DT
capital NN
to TO
write VB
off IN
their PRP$
mistakes NNS
or CC
to TO
build VB
a DT
navy NN
, ,
they PRP
have VBP
no DT
alternative NN
but CC
to TO
go VB
along RB
. .

George NNP
A. NNP
Wiegers NNP

Gillette NNP
Co. NNP
elected VBD
Warren NNP
E. NNP
Buffett NNP
, ,
chairman NN
of IN
Berkshire NNP
Hathaway NNP
Inc. NNP
, ,
to TO
its PRP$
board NN
, ,
increasing VBG
the DT
number NN
of IN
directors NNS
to TO
12 CD
from IN
11 CD
. .

Berkshire NNP
Hathaway NNP
earlier RBR
this DT
year NN
bought VBD
$ $
600 CD
million CD
of IN
preferred JJ
stock NN
in IN
Gillette NNP
that WDT
is VBZ
convertible JJ
into IN
an DT
11 CD
% NN
stake NN
, ,
and CC
Gillette NNP
said VBD
at IN
the DT
time NN
that IN
Mr. NNP
Buffett NNP
would MD
be VB
added VBN
to TO
the DT
board NN
. .

Separately RB
, ,
Gillette NNP
said VBD
its PRP$
third-quarter JJ
earnings NNS
rose VBD
2 CD
% NN
to TO
$ $
65.2 CD
million CD
, ,
or CC
57 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
63.9 CD
million CD
, ,
or CC
57 CD
cents NNS
a DT
share NN
, ,
in IN
the DT
year-earlier JJ
period NN
; :
per-share JJ
earnings NNS
remained VBD
flat JJ
despite IN
an DT
increase NN
in IN
net JJ
income NN
in IN
part NN
because IN
the DT
company NN
paid VBD
a DT
$ $
10.4 CD
million CD
dividend NN
on IN
the DT
new JJ
preferred JJ
stock NN
in IN
the DT
period NN
. .

Sales NNS
rose VBD
9 CD
% NN
to TO
$ $
921.6 CD
million CD
from IN
$ $
845.7 CD
million CD
, ,
with IN
sales NNS
of IN
the DT
company NN
's POS
international\/diversified VBN
operations NNS
`` ``
well RB
above IN
'' ''
the DT
year NN
earlier-period NN
. .

For IN
the DT
nine CD
months NNS
, ,
Gillette NNP
's POS
net JJ
income NN
declined VBD
1 CD
% NN
to TO
$ $
205.3 CD
million CD
, ,
or CC
$ $
2.02 CD
a DT
share NN
, ,
from IN
$ $
207 CD
million CD
, ,
or CC
$ $
1.82 CD
a DT
share NN
, ,
in IN
the DT
1988 CD
period NN
. .

Sales NNS
rose VBD
6 CD
% NN
to TO
$ $
2.77 CD
billion CD
from IN
$ $
2.61 CD
billion CD
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
the DT
company NN
closed VBD
yesterday NN
at IN
$ $
45.50 CD
a DT
share NN
, ,
up IN
25 CD
cents NNS
. .

When WRB
Walter NNP
Yetnikoff NNP
, ,
the DT
president NN
of IN
Sony NNP
Corp. NNP
's POS
CBS NNP
Records NNPS
, ,
last JJ
month NN
told VBD
producer NN
Peter NNP
Guber NNP
that IN
Sony NNP
was VBD
about IN
to TO
make VB
a DT
$ $
3.4 CD
billion CD
bid NN
for IN
Columbia NNP
Pictures NNPS
and CC
needed VBN
someone NN
to TO
run VB
the DT
studio NN
, ,
Mr. NNP
Guber NNP
jumped VBD
at IN
the DT
chance NN
. .

Within IN
two CD
days NNS
, ,
he PRP
was VBD
on IN
his PRP$
way NN
to TO
New NNP
York NNP
and CC
Tokyo NNP
to TO
meet VB
with IN
top JJ
brass NN
at IN
Sony NNP
. .
And CC
before IN
the DT
week NN
was VBD
out IN
, ,
Sony NNP
had VBD
offered VBN
Mr. NNP
Guber NNP
and CC
his PRP$
partner NN
, ,
Jon NNP
Peters NNP
, ,
the DT
most RBS
lucrative JJ
employment NN
contracts NNS
in IN
the DT
history NN
of IN
the DT
movie NN
business NN
. .

Not RB
only RB
that IN
, ,
Sony NNP
also RB
agreed VBD
to TO
give VB
them PRP
a DT
stake NN
in IN
Columbia NNP
's POS
future NN
profits NNS
and CC
buy VB
their PRP$
company NN
, ,
Guber NNP
Peters NNP
Entertainment NNP
Co. NNP
, ,
for IN
$ $
200 CD
million CD
, ,
almost RB
40 CD
% NN
more JJR
than IN
the DT
market NN
value NN
of IN
the DT
company NN
. .

There EX
was VBD
just RB
one CD
sticking VBG
point NN
: :
The DT
two CD
had VBD
a DT
prior JJ
commitment NN
. .

Just RB
seven CD
months NNS
earlier RBR
, ,
they PRP
had VBD
signed VBN
a DT
five-year JJ
exclusive JJ
contract NN
to TO
make VB
movies NNS
for IN
Warner NNP
Bros. NNP
for IN
which WDT
they PRP
had VBD
just RB
produced VBN
the DT
smash NN
hit VBD
`` ``
Batman NNP
. .
'' ''

But CC
Mr. NNP
Guber NNP
figured VBD
that IN
Warner NNP
Communications NNP
Inc. NNP
chairman NN
Steven NNP
Ross NNP
, ,
would MD
empathize VB
and CC
let VB
the DT
producers NNS
go VBP
, ,
knowing VBG
the DT
Sony NNP
offer NN
was VBD
`` ``
the DT
culmination NN
of IN
a DT
life NN
's POS
work NN
. .
'' ''

He PRP
figured VBD
wrong JJ
. .

Last JJ
week NN
, ,
following VBG
fruitless JJ
settlement NN
talks NNS
, ,
Warner NNP
, ,
now RB
merging VBG
with IN
Time NNP
Inc. NNP
, ,
filed VBD
a DT
$ $
1 CD
billion CD
breach NN
of IN
contract NN
suit NN
in IN
Los NNP
Angeles NNP
Superior NNP
Court NNP
against IN
both DT
Sony NNP
and CC
Guber NNP
Peters NNP
. .

Sony NNP
promptly RB
countersued VBD
, ,
charging VBG
Warner NNP
with IN
trying VBG
to TO
sabotage VB
its PRP$
acquisitions NNS
and CC
hurt VBN
its PRP$
efforts NNS
to TO
enter VB
the DT
U.S. NNP
movie NN
business NN
. .

The DT
accusations NNS
of IN
lying VBG
and CC
duplicity NN
are VBP
flying VBG
thick JJ
and CC
fast RB
on IN
both DT
sides NNS
: :
As IN
one CD
Sony NNP
executive NN
puts VBZ
it PRP
, ,
`` ``
It PRP
's VBZ
World NNP
War NNP
III NNP
. .
'' ''

That DT
two CD
successful JJ
producers NNS
who WP
are VBP
n't RB
all DT
that NN
well RB
known VBN
outside IN
Hollywood NNP
could MD
occasion VB
such JJ
a DT
clash NN
of IN
corporate JJ
titans NNS
suggests VBZ
how WRB
desperate JJ
the DT
quest NN
for IN
proven VBN
talent NN
is VBZ
in IN
the DT
movie NN
business NN
. .
And CC
they PRP
are VBP
a DT
very RB
odd JJ
team NN
in IN
any DT
case NN
. .

Mr. NNP
Guber NNP
was VBD
raised VBN
in IN
Boston NNP
and CC
educated VBN
in IN
New NNP
York NNP
. .

He PRP
is VBZ
a DT
lawyer NN
with IN
a DT
string NN
of IN
academic JJ
degrees NNS
. .

Mr. NNP
Peters NNP
is VBZ
a DT
high-school NN
dropout NN
who WP
came VBD
to TO
fame VB
as IN
Barbra NNP
Streisand NNP
's POS
hairdresser NN
. .

Yet RB
, ,
they PRP
are VBP
far RB
and CC
away RB
the DT
most RBS
prolific JJ
producers NNS
in IN
Hollywood NNP
. .

And CC
despite IN
their PRP$
share NN
of IN
duds NNS
, ,
they PRP
make VBP
movies NNS
that WDT
make VBP
money NN
. .

That DT
is VBZ
a DT
skill NN
Sony NNP
badly RB
needs VBZ
-- :
and CC
Warner NNP
is VBZ
loath JJ
to TO
lose VB
. .

Although IN
Columbia NNP
had VBD
a DT
good JJ
summer NN
with IN
`` ``
Ghostbusters NNP
II NNP
'' ''
and CC
`` ``
When WRB
Harry NNP
Met NNP
Sally NNP
, ,
'' ''
rivals NNS
such JJ
as IN
Warner NNP
, ,
Paramount NNP
Pictures NNPS
, ,
Walt NNP
Disney NNP
Co. NNP
and CC
Universal NNP
Studios NNP
have VBP
been VBN
thrashing NN
Columbia NNP
at IN
the DT
box NN
office NN
. .

After IN
five CD
years NNS
of IN
management NN
turmoil NN
, ,
with IN
four CD
different JJ
studio NN
heads NNS
, ,
Columbia NNP
sorely RB
needs VBZ
a DT
stable NN
, ,
savvy JJ
team NN
to TO
restore VB
its PRP$
credibility NN
and CC
get VB
it PRP
back RB
in IN
the DT
business NN
of IN
making VBG
hits NNS
. .

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
are VBP
n't RB
universally RB
loved VBD
in IN
Hollywood NNP
but CC
they PRP
are VBP
well RB
connected VBN
. .

Their PRP$
stock NN
in IN
trade NN
as IN
`` ``
executive NN
producers NNS
'' ''
is VBZ
sniffing VBG
out RP
hot JJ
properties NNS
, ,
locking JJ
them PRP
up IN
and CC
then RB
getting VBG
big JJ
studios NNS
to TO
bankroll VB
and CC
distribute VB
them PRP
. .

Sometimes RB
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
do VBP
little RB
more JJR
than IN
grab NN
the DT
first JJ
draft NN
of IN
a DT
screenplay NN
for IN
a DT
`` ``
Flashdance NNP
, ,
'' ''
or CC
buy VB
rights NNS
to TO
a DT
best JJS
seller NN
such JJ
as IN
`` ``
The DT
Color NNP
Purple NNP
. .
'' ''

It PRP
falls VBZ
to TO
others NNS
to TO
do VB
the DT
writing NN
, ,
directing VBG
and CC
producing VBG
. .

With IN
MGM\/UA NNP
's POS
`` ``
Rainman NNP
, ,
'' ''
for IN
instance NN
, ,
Messrs. NNP
Guber NNP
and CC
Peters NNP
had VBD
virtually JJ
nothing NN
to TO
do VB
with IN
day-to-day JJ
production NN
, ,
but CC
their PRP$
names NNS
still RB
appear VBP
in IN
big JJ
letters NNS
on IN
the DT
credits NNS
, ,
and CC
they PRP
are VBP
inevitably RB
associated VBN
with IN
its PRP$
success NN
. .

Sometimes RB
, ,
as IN
with IN
`` ``
Batman NNP
, ,
'' ''
the DT
pair NN
really RB
do VBP
make VB
the DT
film NN
. .

In IN
that DT
case NN
, ,
Guber NNP
Peters NNP
acquired VBD
the DT
rights NNS
in IN
1979 CD
, ,
nursed VBD
the DT
movie NN
through IN
a DT
dozen NN
scripts NNS
, ,
and CC
were VBD
on IN
the DT
set NN
in IN
London NNP
for IN
11 CD
months NNS
hovering VBG
over IN
the DT
most RBS
minute NN
changes NNS
in IN
casting VBG
and CC
production NN
. .

`` ``
They PRP
're VBP
the DT
best JJS
production NN
talent NN
around IN
, ,
'' ''
says VBZ
Brian NNP
De NNP
Palma NNP
, ,
beholden JJ
to TO
Guber NNP
Peters NNP
for IN
hiring VBG
him PRP
to TO
direct VB
the DT
Warner NNP
movie NN
of IN
Tom NNP
Wolfe NNP
's POS
novel NN
`` ``
Bonfire NN
of IN
the DT
Vanities NNS
. .
'' ''

On IN
that DT
film NN
, ,
which WDT
is VBZ
to TO
start VB
shooting NN
in IN
a DT
few JJ
months NNS
, ,
`` ``
they PRP
've VBP
been VBN
very RB
much RB
involved VBN
, ,
hiring VBG
talent NN
and CC
discussing VBG
the DT
development NN
of IN
the DT
script NN
. .

And CC
when WRB
you PRP
're VBP
making VBG
a DT
movie NN
this DT
big JJ
, ,
you PRP
need VBP
all PDT
the DT
help NN
you PRP
can MD
get VB
, ,
'' ''
Mr. NNP
De NNP
Palma NNP
adds VBZ
. .

`` ``
I PRP
wish VBP
they PRP
were VBD
around IN
24 CD
hours VBZ
a DT
day NN
. .
'' ''

And CC
some DT
movies NNS
seem VBP
to TO
have VB
been VBN
hurt VBN
by IN
their PRP$
inattention NN
. .

Warner NNP
executives NNS
blame VBP
Mr. NNP
Guber NNP
's POS
and CC
Mr. NNP
Peters NNP
's POS
lack NN
of IN
involvement NN
in IN
`` ``
Caddyshack NNP
II NNP
'' ''
for IN
casting VBG
and CC
production NN
problems NNS
and CC
the DT
film NN
's POS
ultimate JJ
dismal JJ
failure NN
. .

`` ``
We PRP
've VBP
had VBD
a DT
few JJ
bombs NNS
, ,
'' ''
admits VBZ
Mr. NNP
Peters NNP
. .

`` ``
But CC
by IN
and CC
large JJ
this DT
company NN
has VBZ
only RB
been VBN
profitable JJ
. .
'' ''

He PRP
says VBZ
his PRP$
company NN
's POS
prowess NN
at IN
packaging NN
and CC
marketing NN
`` ``
is VBZ
why WRB
we PRP
'll MD
be VB
good JJ
at IN
Columbia NNP
. .

We PRP
practically RB
ran VBD
our PRP$
own JJ
studio NN
. .
'' ''

Longtime JJ
Hollywood NNP
associates NNS
describe VBP
Mr. NNP
Guber NNP
as IN
the DT
intellectual JJ
powerhouse NN
of IN
the DT
two CD
, ,
a DT
man NN
with IN
a DT
flair NN
for IN
deal-making NN
and CC
marketing NN
. .

`` ``
Peter NNP
is VBZ
a DT
major JJ
piece NN
of IN
Hollywood NNP
manpower NN
who WP
has VBZ
really RB
earned VBN
his PRP$
success NN
, ,
'' ''
says VBZ
Robert NNP
Bookman NNP
, ,
an DT
agent NN
at IN
Creative NNP
Artists NNP
Agency NNP
. .

Mark NNP
Johnson NNP
, ,
the DT
producer NN
of IN
`` ``
Rainman NNP
, ,
'' ''
chimes VBZ
in IN
: :
`` ``
He PRP
has VBZ
a DT
great JJ
ability NN
to TO
hire VB
terrific JJ
people NNS
and CC
delegate NN
authority NN
... :
. .

It PRP
's VBZ
no DT
accident NN
that IN
they PRP
've VBP
been VBN
able JJ
to TO
develop VB
such JJ
successful JJ
material NN
. .
'' ''

Mr. NNP
Peters NNP
, ,
on IN
the DT
other JJ
hand NN
, ,
has VBZ
fewer JJR
fans NNS
in IN
Hollywood NNP
, ,
and CC
his PRP$
detractors NNS
like NN
to TO
characterize VB
him PRP
as IN
something NN
of IN
a DT
hot-tempered JJ
bully NN
. .

He PRP
gets VBZ
better JJR
reviews NNS
as IN
a DT
creative JJ
whiz NN
, ,
an DT
enthusiast NN
, ,
an DT
idea NN
man NN
. .

He PRP
also RB
had VBD
to TO
fight VB
harder JJR
for IN
credibility NN
than IN
his PRP$
partner NN
did VBD
. .

Barbra NNP
Streisand NNP
made VBD
him PRP
famous JJ
. .
He PRP
cut VBP
her PRP$
hair NN
. .

He PRP
lived VBD
with IN
her PRP$
. .

He PRP
came VBD
to TO
produce VB
her PRP$
records NNS
and CC
her PRP$
movies NNS
-- :
`` ``
A DT
Star NNP
Is VBZ
Born VBN
'' ''
and CC
`` ``
The DT
Main NNP
Event NN
. .
'' ''

Thrice RB
married VBN
but CC
now RB
single JJ
, ,
Mr. NNP
Peters NNP
got VBD
plenty NN
of IN
ink NN
last JJ
summer NN
for IN
an DT
on-set JJ
romance NN
with IN
actress NN
Kim NNP
Basinger NNP
during IN
the DT
making NN
of IN
`` ``
Batman NNP
. .
'' ''

Mr. NNP
Guber NNP
, ,
by IN
contrast NN
, ,
has VBZ
been VBN
married VBN
to TO
one CD
woman NN
for IN
more JJR
than IN
20 CD
years NNS
. .

But CC
for IN
all DT
their PRP$
intellectual JJ
and CC
stylistic JJ
differences NNS
, ,
they PRP
make VBP
the DT
perfect JJ
`` ``
good JJ
cop NN
, ,
bad JJ
cop NN
'' ''
team NN
, ,
Hollywood NNP
associates NNS
say VBP
. .

`` ``
Peter NNP
is VBZ
the DT
bright JJ
, ,
sympathetic JJ
guy NN
when WRB
you PRP
're VBP
doing VBG
a DT
deal NN
, ,
'' ''
says VBZ
one CD
agent NN
. .

`` ``
If IN
there EX
's VBZ
a DT
problem NN
, ,
Peter NNP
disappears VBZ
, ,
and CC
all DT
of IN
a DT
sudden JJ
Jon NNP
shows VBZ
up IN
. .
'' ''

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
rub NN
many JJ
people NNS
in IN
Hollywood NNP
the DT
wrong JJ
way NN
. .

Producers NNP
Don NNP
Simpson NNP
and CC
Jerry NNP
Bruckheimer NNP
, ,
who WP
shepherded VBD
`` ``
Flashdance NNP
'' ''
through IN
several JJ
scripts NNS
and CC
ultimately RB
produced VBN
the DT
movie NN
, ,
bristle VBP
when WRB
Messrs. NNP
Guber NNP
and CC
Peters NNP
take VB
credit NN
for IN
the DT
film NN
. .

Says VBZ
Mr. NNP
Simpson NNP
: :
`` ``
The DT
script NN
was VBD
unreadable JJ
. .

We PRP
reinvented VBD
it PRP
. .

We PRP
are VBP
the DT
producers NNS
of IN
that DT
movie NN
. .

They PRP
got VBD
a DT
small JJ
piece NN
of IN
the DT
net JJ
profits NNS
and CC
a DT
screen NN
credit NN
'' ''
as IN
executive NN
producers NNS
. .

When WRB
Roger NNP
Birnbaum NNP
, ,
an DT
executive NN
who WP
worked VBD
for IN
Guber NNP
Peters NNP
in IN
the DT
early JJ
1980s CD
, ,
left VBN
to TO
take VB
a DT
job NN
as IN
head NN
of IN
production NN
at IN
the DT
United NNP
Artists NNPS
studio NN
, ,
they PRP
made VBD
him PRP
forfeit VB
all DT
credits NNS
and CC
financial JJ
interest NN
in IN
the DT
films NNS
he PRP
had VBD
helped VBN
develop VB
, ,
including VBG
`` ``
Rainman NNP
'' ''
and CC
`` ``
Batman NNP
. .
'' ''

Mr. NNP
Peters NNP
acknowledges VBZ
that IN
and CC
says VBZ
it PRP
's VBZ
not RB
unlike IN
the DT
situation NN
he PRP
and CC
Mr. NNP
Guber NNP
are VBP
in IN
with IN
Warner NNP
. .

`` ``
I PRP
was VBD
upset VBN
with IN
Roger NNP
, ,
I PRP
fumpered VBD
and CC
schmumpered VBD
, ,
'' ''
says VBZ
Mr. NNP
Peters NNP
. .

`` ``
But CC
he PRP
wanted VBD
to TO
pursue VB
his PRP$
own JJ
dream NN
, ,
and CC
he PRP
went VBD
. .
'' ''

Still RB
, ,
Mr. NNP
Birnbaum NNP
says VBZ
his PRP$
relationship NN
with IN
Guber NNP
Peters NNP
was VBD
`` ``
one CD
of IN
the DT
most RBS
successful JJ
I PRP
've VBP
had VBD
in IN
Hollywood NNP
. .
'' ''

The DT
two CD
`` ``
have VBP
a DT
wonderful JJ
chemistry NN
-- :
Jon NNP
is VBZ
very RB
impulsive JJ
, ,
and CC
Peter NNP
is VBZ
very RB
compulsive JJ
, ,
'' ''
adds VBZ
Mr. NNP
Birnbaum NNP
, ,
who WP
is VBZ
now JJ
head NN
of IN
production NN
at IN
News NNP
Corp. NNP
's POS
20th NNP
Century NNP
Fox NNP
Film NNP
Co NNP
. .

`` ``
Jon NNP
Peters NNP
will MD
come VB
barreling VBG
into IN
a DT
room NN
, ,
say VBP
he PRP
's VBZ
got VBD
a DT
great JJ
idea NN
, ,
and CC
be VB
gone VBN
. .

Peter NNP
will MD
take VB
the DT
kernel NN
of IN
that DT
idea NN
and CC
make VB
it PRP
grow VB
into IN
something NN
specific JJ
... :
. .
'' ''

Mr. NNP
Birnbaum NNP
recalls VBZ
that IN
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
shifted VBD
into IN
high JJ
gear NN
a DT
few JJ
years NNS
back RB
upon IN
learning VBG
that IN
they PRP
had VBD
competition NN
for IN
the DT
story NN
of IN
the DT
murdered VBN
naturalist NN
Dian NNP
Fossey NNP
, ,
which WDT
became VBD
`` ``
Gorillas NNP
in IN
the DT
Mist NNP
. .
'' ''

He PRP
says VBZ
, ,
`` ``
Within IN
a DT
few JJ
weeks NNS
, ,
we PRP
made VBD
deals NNS
with IN
the DT
government NN
of IN
Rwanda NNP
and CC
everyone NN
who WP
had VBD
ever RB
met VBN
or CC
talked VBD
to TO
Dian NNP
Fossey NNP
. .

I PRP
think VBP
Peter NNP
even RB
made VBD
some DT
deals NNS
with IN
the DT
gorillas NNS
. .
'' ''

Universal NNP
Studios NNP
was VBD
working VBG
on IN
a DT
competing VBG
film NN
, ,
but CC
the DT
studio NN
and CC
its PRP$
producers NNS
ultimately RB
agreed VBD
to TO
co-produce VB
the DT
film NN
with IN
Guber NNP
Peters NNP
and CC
Warner NNP
. .

More RBR
recently RB
, ,
Guber NNP
Peters NNP
beat VB
out RP
a DT
dozen NN
other JJ
producers NNS
, ,
reportedly RB
including VBG
Robert NNP
Redford NNP
and CC
Ted NNP
Turner NNP
, ,
for IN
rights NNS
to TO
the DT
life NN
story NN
of IN
Chico NNP
Mendes NNP
, ,
the DT
murdered VBN
Brazilian JJ
union NN
leader NN
who WP
fought VBD
developers NNS
in IN
the DT
Amazon NNP
rain NN
forest NN
. .

Messrs. NNP
Guber NNP
and CC
Peters NNP
assiduously RB
courted VBD
the DT
man NN
's POS
widow NN
for IN
months NNS
, ,
showing VBG
her PRP$
a DT
tape NN
of IN
`` ``
Gorillas NNP
in IN
the DT
Mist NNP
'' ''
to TO
impress VB
her PRP
with IN
the DT
quality NN
of IN
their PRP$
work NN
. .

Money NNP
helped VBD
, ,
too RB
. .

Ultimately RB
, ,
they PRP
paid VBD
more JJR
than IN
$ $
1 CD
million CD
for IN
the DT
rights NNS
. .

-LRB- (
The DT
sale NN
caused VBD
a DT
rift NN
between IN
the DT
widow NN
and CC
some DT
of IN
her PRP$
husband NN
's POS
followers NNS
. .

Some DT
of IN
the DT
money NN
will MD
go VB
to TO
the DT
Chico NNP
Mendes NNP
Foundation NNP
, ,
but CC
it PRP
is VBZ
n't RB
earmarked VBN
for IN
groups NNS
trying VBG
to TO
save VB
the DT
rain NN
forest NN
. .
-RRB- )

It PRP
's VBZ
hardly RB
astonishing JJ
-LRB- (
given VBN
the DT
men NNS
's POS
track NN
record NN
-RRB- )
that IN
Sony NNP
wants VBZ
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
. .

But CC
it PRP
is VBZ
puzzling JJ
to TO
some DT
Hollywood NNP
executives NNS
that IN
Sony NNP
rushed VBD
to TO
hire VB
them PRP
without IN
clearing VBG
up IN
the DT
Warner NNP
situation NN
first JJ
. .

Some DT
note NN
that IN
Sony NNP
might MD
have VB
saved VBN
itself PRP
some DT
trouble NN
by IN
just RB
hiring VBG
Mr. NNP
Guber NNP
and CC
letting VBG
Mr. NNP
Peters NNP
stay VB
on IN
to TO
fulfill VB
the DT
Warner NNP
contract NN
. .

But CC
though IN
`` ``
people NNS
in IN
town NN
may MD
ask VB
why WRB
Guber NNP
needs VBZ
Peters NNP
, ,
it PRP
's VBZ
good JJ
to TO
have VB
a DT
partner NN
, ,
and CC
obviously RB
the DT
chemistry NN
works NNS
, ,
'' ''
says VBZ
Steven NNP
Tisch NNP
, ,
a DT
producer NN
who WP
once RB
worked VBD
for IN
Mr. NNP
Guber NNP
. .

`` ``
This DT
business NN
is VBZ
n't RB
about IN
personalities NNS
at IN
the DT
end NN
of IN
the DT
day NN
-- :
it PRP
s PRP
about IN
whether IN
the DT
ink NN
is VBZ
red JJ
or CC
black JJ
. .

In IN
the DT
case NN
of IN
Peter NNP
and CC
Jon NNP
, ,
the DT
ink NN
has VBZ
been VBN
very RB
, ,
very RB
black JJ
. .
'' ''

Mr. NNP
Guber NNP
got VBD
his PRP$
start NN
in IN
the DT
movie NN
business NN
at IN
Columbia NNP
two CD
decades NNS
ago RB
. .

Recruited VBN
from IN
New NNP
York NNP
University NNP
's POS
MBA NN
program NN
, ,
he PRP
rose VBD
within IN
two CD
years NNS
to TO
head VB
of IN
production NN
, ,
overseeing VBG
such JJ
films NNS
as IN
`` ``
The DT
Way NN
We PRP
Were VBD
, ,
'' ''
`` ``
Taxi NN
Driver NNP
, ,
'' ''
`` ``
Tommy NNP
'' ''
and CC
`` ``
Shampoo NNP
. .
'' ''

In IN
1976 CD
, ,
he PRP
teamed VBD
up IN
with IN
record NN
producer NN
Neil NNP
Bogart NNP
in IN
Casablanca NNP
Records NNPS
and CC
Filmworks NNP
-- :
later RB
called VBN
Polygram NNP
Pictures NNPS
-- :
where WRB
they PRP
produced VBD
such JJ
hits NNS
as IN
as IN
`` ``
The DT
Deep NNP
, ,
'' ''
and CC
`` ``
Midnight NNP
Express NNP
. .
'' ''

In IN
1980 CD
, ,
Mr. NNP
Guber NNP
got VBD
together RB
with IN
Mr. NNP
Peters NNP
, ,
by IN
then RB
a DT
successful JJ
producer NN
in IN
his PRP$
own JJ
right NN
, ,
after IN
the DT
death NN
of IN
Mr. NNP
Bogart NNP
. .

While IN
Guber NNP
Peters NNP
produced VBD
a DT
number NN
of IN
hits NNS
for IN
Warner NNP
and CC
others NNS
, ,
their PRP$
record NN
was VBD
n't RB
always RB
so RB
impressive JJ
. .

Among IN
their PRP$
clinkers NNS
were VBD
`` ``
The DT
Legend NNP
of IN
Billie NNP
Jean NNP
, ,
'' ''
`` ``
VisionQuest NNP
, ,
'' ''
`` ``
Clue NNP
'' ''
and CC
`` ``
Clan NNP
of IN
the DT
Cave NNP
Bear NNP
. .
'' ''

And CC
the DT
failures NNS
make VBP
it PRP
possible JJ
for IN
Warner NNP
in IN
its PRP$
current JJ
lawsuit NN
to TO
paint VB
the DT
producers NNS
as IN
ingrates NNS
. .

The DT
studio NN
says VBZ
it PRP
stuck VBD
with IN
them PRP
`` ``
even RB
in IN
the DT
early JJ
years NNS
when WRB
the DT
creative JJ
partnership NN
was VBD
not RB
particularly RB
profitable JJ
for IN
Warner NNP
. .
'' ''

Mr. NNP
Guber NNP
replies VBZ
that IN
`` ``
this DT
is VBZ
a DT
Goliath NNP
, ,
this DT
Time NNP
Warner NNP
, ,
trying VBG
to TO
chew VB
up IN
two CD
fellows NNS
who WP
have VBP
done VBN
only RB
well RB
for IN
them PRP
for IN
a DT
long JJ
period NN
of IN
time NN
. .
'' ''

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
maintain VB
that IN
executives NNS
at IN
Warner NNP
have VBP
always RB
known VBN
of IN
their PRP$
ambitions NNS
to TO
run VB
a DT
major JJ
entertainment NN
powerhouse NN
, ,
but CC
that IN
Warner NNP
never RB
felt VBD
threatened VBN
until IN
they PRP
linked VBD
up IN
with IN
Sony NNP
. .

`` ``
From IN
the DT
beginning NN
, ,
-LCB- (
they PRP
-RCB- )
knew VBD
we PRP
had VBD
a DT
goal NN
and CC
a DT
dream NN
, ,
'' ''
says VBZ
Mr. NNP
Guber NNP
. .

On IN
a DT
number NN
of IN
occasions NNS
, ,
he PRP
adds VBZ
, ,
he PRP
tried VBD
to TO
get VB
Warner NNP
to TO
buy VB
Guber NNP
Peters NNP
outright JJ
. .

`` ``
They PRP
always RB
listened VBD
, ,
but CC
they PRP
never RB
acted VBD
, ,
'' ''
Mr. NNP
Guber NNP
says VBZ
. .

In IN
1987 CD
, ,
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
contributed VBD
their PRP$
company NN
's POS
assets NNS
in IN
exchange NN
for IN
a DT
28 CD
% NN
stake NN
in IN
Barris NNP
Entertainment NNP
, ,
a DT
small-fry JJ
TV NN
production NN
company NN
controlled VBN
by IN
Giant NNP
Industries NNP
Inc. NNP
Chairman NNP
Burt NNP
Sugarman NNP
. .

In IN
July NNP
a DT
year NN
later RB
, ,
Warner NNP
agreed VBD
to TO
release VB
the DT
producers NNS
from IN
their PRP$
old JJ
contract NN
when WRB
Messrs. NNP
Guber NNP
, ,
Peters NNP
and CC
Sugarman NNP
made VBD
a DT
$ $
100 CD
million CD
offer NN
to TO
buy VB
25 CD
% NN
of IN
MGM\/UA NNP
. .

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
planned VBD
to TO
run VB
the DT
nearly RB
dormant JJ
MGM NNP
studio NN
, ,
and CC
the DT
two CD
even RB
tried VBD
to TO
interest VB
Warner NNP
Bros NNP
. .
' ''
President NNP
Terry NNP
Semel NNP
in IN
becoming VBG
a DT
partner NN
after IN
he PRP
advised VBD
them PRP
on IN
the DT
deal NN
. .

But CC
the DT
MGM NNP
plan NN
collapsed VBD
just RB
two CD
weeks NNS
later RB
. .

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
say VBP
they PRP
got VBD
a DT
look NN
at IN
the DT
books NNS
and CC
balked VBD
at IN
the DT
price NN
. .

Their PRP$
relationship NN
with IN
Mr. NNP
Sugarman NNP
soured VBD
shortly RB
thereafter RB
. .

Last NNP
May NNP
, ,
he PRP
sold VBD
his PRP$
24 CD
% NN
stake NN
in IN
Barris NNP
to TO
a DT
passive JJ
Australian JJ
investor NN
and CC
Barris NNP
was VBD
renamed VBN
Guber NNP
Peters NNP
Entertainment NNP
Co NNP
. .

Meanwhile RB
, ,
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
had VBD
agreed VBN
to TO
extend VB
their PRP$
Warner NNP
agreement NN
with IN
the DT
new JJ
five-year JJ
exclusive JJ
contract NN
. .

The DT
new JJ
deal NN
was VBD
considered VBN
the DT
most RBS
generous JJ
of IN
its PRP$
kind NN
, ,
both DT
financially RB
and CC
in IN
terms NNS
of IN
creative JJ
freedom NN
. .

But CC
it PRP
paled VBN
by IN
comparison NN
to TO
what WP
Sony NNP
was VBD
to TO
offer VB
last JJ
month NN
: :
the DT
chance NN
, ,
at IN
last JJ
, ,
to TO
run VB
a DT
major JJ
studio NN
, ,
about RB
$ $
50 CD
million CD
in IN
deferred VBN
compensation NN
, ,
up IN
to TO
10 CD
% NN
of IN
Columbia NNP
's POS
future NN
cash NN
flow NN
, ,
8 CD
% NN
of IN
the DT
future NN
appreciation NN
of IN
Columbia NNP
's POS
market NN
value NN
, ,
and CC
annual JJ
salaries NNS
of IN
$ $
2.7 CD
million CD
for IN
each DT
. .

The DT
producers NNS
' POS
28 CD
% NN
share NN
of IN
publicly RB
held VBN
Guber NNP
Peters NNP
would MD
net VB
them PRP
an DT
additional JJ
$ $
50 CD
million CD
. .

Sony NNP
also RB
agreed VBD
to TO
indemnify VB
the DT
producers NNS
against IN
any DT
liability NN
to TO
Warner NNP
. .

Sony NNP
is VBZ
paying VBG
a DT
hefty JJ
price NN
for IN
a DT
company NN
that WDT
had VBD
revenue NN
of IN
only RB
$ $
42 CD
million CD
last JJ
year NN
. .

And CC
earnings NNS
have NN
been VBN
erratic JJ
. .

In IN
the DT
the DT
latest JJS
quarter NN
, ,
thanks VBZ
in IN
part NN
to TO
`` ``
Batman NNP
, ,
'' ''
Guber NNP
Peters NNP
earned VBD
$ $
5.8 CD
million CD
, ,
or CC
50 CD
cents NNS
a DT
share NN
, ,
compared VBN
to TO
a DT
loss NN
of IN
$ $
6.8 CD
million CD
, ,
or CC
62 CD
cents NNS
a DT
share NN
, ,
in IN
last JJ
year NN
's POS
quarter NN
. .

Guber NNP
Peters NNP
stock NN
, ,
which WDT
traded VBD
as RB
low JJ
as IN
$ $
6 CD
a DT
share NN
last JJ
year NN
, ,
closed VBD
yesterday NN
at IN
$ $
16.625 CD
. .

The DT
two CD
sides NNS
now RB
are VBP
accusing VBG
each DT
other NN
of IN
lying VBG
. .

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
claim NN
they PRP
have VBP
an DT
oral JJ
agreement NN
with IN
Warner NNP
executives NNS
that WDT
allows VBZ
them PRP
to TO
terminate VB
their PRP$
contract NN
should MD
the DT
opportunity NN
to TO
run VB
a DT
major JJ
studio NN
arise VB
. .

But CC
in IN
affidavits NNS
filed VBD
yesterday NN
in IN
the DT
Los NNP
Angeles NNP
court NN
, ,
Mr. NNP
Ross NNP
, ,
Warner NNP
Bros. NNP
Chairman NNP
Robert NNP
Daly NNP
and CC
President NNP
Semel NNP
deny VB
that IN
such JJ
an DT
oral JJ
agreement NN
was VBD
ever RB
made VBN
. .

Warner NNP
, ,
in IN
its PRP$
court NN
filings NNS
, ,
calls VBZ
it PRP
`` ``
a DT
piece NN
of IN
fiction NN
created VBN
for IN
this DT
litigation NN
. .
'' ''

Mr. NNP
Daly NNP
in IN
his PRP$
affidavit NN
acknowledges VBZ
that IN
Warner NNP
agreed VBD
to TO
release VB
the DT
producers NNS
last JJ
year NN
to TO
take VB
over IN
MGM NNP
but CC
says VBZ
that DT
situation NN
was VBD
altogether RB
different JJ
. .

For IN
one CD
thing NN
, ,
according VBG
to TO
Mr. NNP
Daly NNP
, ,
the DT
producers NNS
requested VBD
a DT
release NN
in IN
advance NN
. .

Moreover RB
, ,
the DT
old JJ
contract NN
was VBD
about IN
to TO
expire VB
, ,
and CC
the DT
lineup NN
of IN
Guber NNP
Peters NNP
pictures NNS
for IN
Warner NNP
was VBD
n't RB
as RB
strong JJ
as IN
it PRP
is VBZ
now RB
. .

Warner NNP
itself PRP
was VBD
in IN
negotiations NNS
with IN
MGM NNP
over IN
certain JJ
movie NN
and CC
other JJ
rights NNS
, ,
and CC
it PRP
was VBD
`` ``
in IN
Warner NNP
's POS
interest NN
to TO
accommodate VB
MGM\/UA NNP
, ,
Guber NNP
and CC
Peters NNP
by IN
permitting VBG
them PRP
to TO
become VB
MGM NNP
executives NNS
, ,
'' ''
Mr. NNP
Daly NNP
said VBD
in IN
his PRP$
affidavit NN
. .

Warner NNP
obviously RB
does VBZ
n't RB
think VB
that IN
it PRP
is VBZ
in IN
its PRP$
own JJ
interests NNS
to TO
let VB
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
go VB
off IN
to TO
Columbia NNP
. .

At IN
the DT
very RB
least JJS
, ,
Mr. NNP
Ross NNP
clearly RB
sees VBZ
an DT
opportunity NN
to TO
use VB
the DT
two CD
men NNS
to TO
get VB
a DT
pound NN
of IN
flesh NN
from IN
Sony NNP
. .

During IN
settlement NN
talks NNS
, ,
for IN
example NN
, ,
Warner NNP
demanded VBD
such JJ
things NNS
as IN
cable NN
TV NN
rights NNS
to TO
Columbia NNP
movies NNS
and CC
Columbia NNP
's POS
interest NN
in IN
the DT
studio NN
it PRP
jointly RB
owns VBZ
with IN
Warner NNP
, ,
according VBG
to TO
executives NNS
involved VBN
in IN
the DT
talks NNS
. .

In IN
any DT
settlement NN
, ,
Warner NNP
is VBZ
almost RB
certain JJ
to TO
demand VB
rights NNS
to TO
most RBS
of IN
the DT
50 CD
or CC
so RB
projects VBZ
Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
have VBP
locked VBN
up IN
for IN
the DT
next JJ
few JJ
years NNS
, ,
notably RB
sequels NNS
to TO
`` ``
Batman NNP
. .
'' ''

Mr. NNP
Guber NNP
and CC
Mr. NNP
Peters NNP
refuse VB
to TO
concede VB
that IN
they PRP
may MD
have VB
made VBN
a DT
tactical JJ
error NN
in IN
accepting VBG
the DT
Sony NNP
offer NN
before IN
taking VBG
it PRP
up IN
with IN
Warner NNP
. .

And CC
they PRP
say VBP
there EX
are VBP
plenty NN
of IN
precedents NNS
in IN
Hollywood NNP
for IN
letting VBG
people NNS
out IN
of IN
contracts NNS
. .

The DT
last JJ
time NN
Columbia NNP
Pictures NNPS
was VBD
looking VBG
for IN
a DT
studio NN
chief NN
, ,
they PRP
note VBP
, ,
Warner NNP
released VBD
producer NN
David NNP
Puttnam NNP
from IN
his PRP$
contract NN
, ,
then RB
took VBD
him PRP
back RB
after IN
he PRP
was VBD
subsequently RB
fired VBN
by IN
his PRP$
bosses NNS
at IN
Columbia NNP
. .

In IN
his PRP$
affidavit NN
filed VBD
yesterday NN
, ,
Warner NNP
's POS
Mr. NNP
Ross NNP
indicated VBD
he PRP
is VBZ
n't RB
buying VBG
any DT
such JJ
argument NN
: :
`` ``
If IN
Sony NNP
succeeds VBZ
here RB
, ,
no DT
written VBN
contract NN
in IN
Hollywood NNP
will MD
be VB
worth JJ
the DT
paper NN
it PRP
's VBZ
written VBN
on RB
. .

THE DT
SALES NNP
PITCH NNP
could MD
n't RB
sound VB
better JJR
. .

First RB
, ,
there EX
's VBZ
the DT
name NN
: :
`` ``
asset-backed JJ
securities NNS
. .
'' ''
Better NNP
than IN
all PDT
those DT
offers VBZ
you PRP
get VBP
to TO
buy VB
securities NNS
backed VBN
by IN
nothing NN
. .

And CC
there EX
's VBZ
more JJR
. .

The DT
assets NNS
backing VBG
the DT
securities NNS
come VBP
from IN
some DT
of IN
the DT
country NN
's POS
biggest JJS
-- :
and CC
most RBS
secure VB
-- :
institutions NNS
. .

Most JJS
earn VB
high JJ
ratings NNS
from IN
credit NN
agencies NNS
. .

Their PRP$
yields NNS
are VBP
higher JJR
than IN
those DT
of IN
U.S. NNP
Treasury NNP
issues NNS
. .

And CC
the DT
booming JJ
market NN
has VBZ
already RB
attracted VBN
many NN
of IN
the DT
nation NN
's POS
biggest JJS
institutional JJ
investors NNS
. .

Ready JJ
to TO
jump VB
? .

Well UH
, ,
think VBP
twice RB
. .

The DT
concept NN
may MD
be VB
simple JJ
: :
Take VB
a DT
bunch NN
of IN
loans NNS
, ,
tie NN
them PRP
up IN
in IN
one CD
neat JJ
package NN
, ,
and CC
sell VB
pieces NNS
of IN
the DT
package NN
to TO
investors NNS
. .

But CC
the DT
simplicity NN
may MD
be VB
misleading JJ
. .

Skeptics NNS
say VBP
the DT
slightly RB
higher JJR
returns NNS
are VBP
n't RB
enough RB
to TO
compensate VB
for IN
the DT
extra JJ
risk NN
. .

They PRP
warn VBP
that IN
asset-backed JJ
securities NNS
are VBP
only RB
as RB
good JJ
as IN
the DT
assets NNS
and CC
credit NN
backing VBG
that DT
support NN
them PRP
-- :
and CC
those DT
are VBP
hard JJ
to TO
evaluate VB
. .

Moreover RB
, ,
the DT
securities NNS
were VBD
introduced VBN
only RB
about IN
4 CD
1\/2 CD
years NNS
ago RB
; :
the DT
biggest JJS
unknown NN
is VBZ
how WRB
they PRP
will MD
fare VB
in IN
a DT
recession NN
. .

`` ``
A DT
lot NN
of IN
this DT
stuff NN
really RB
is VBZ
in IN
untested JJ
waters NNS
, ,
'' ''
says VBZ
Owen NNP
Carney NNP
, ,
director NN
of IN
the DT
investment NN
securities NNS
division NN
of IN
the DT
U.S. NNP
comptroller NN
of IN
the DT
currency NN
. .

`` ``
We PRP
do VBP
n't RB
know VB
how WRB
this DT
whole JJ
market NN
will MD
work VB
in IN
a DT
serious JJ
economic JJ
downturn NN
. .
'' ''

Such JJ
concerns NNS
, ,
however RB
, ,
have VBP
n't RB
stopped VBN
asset-backed JJ
securities NNS
from IN
becoming VBG
one CD
of IN
Wall NNP
Street NNP
's POS
hottest JJS
new JJ
products NNS
. .

Since IN
the DT
spring NN
of IN
1985 CD
, ,
financial JJ
alchemists NNS
have VBP
transformed VBN
a DT
wide JJ
variety NN
of IN
debt NN
into IN
these DT
new JJ
securities NNS
. .

They PRP
have VBP
sold VBN
issues NNS
backed VBN
by IN
car NN
loans NNS
, ,
boat NN
loans NNS
and CC
recreational-vehicle NN
loans NNS
. .

They PRP
have VBP
offered VBN
bundles NNS
of IN
homeequity NN
loans NNS
, ,
as RB
well RB
as IN
packages NNS
of IN
loans NNS
used VBN
to TO
buy VB
vacation NN
time-shares NNS
. .

Last JJ
year NN
, ,
there EX
was VBD
an DT
issue NN
of IN
`` ``
death-backed JJ
bonds NNS
'' ''
-- :
securities NNS
backed VBN
by IN
loans NNS
to TO
life-insurance NN
policyholders NNS
. .

Some DT
predict VBP
there EX
will MD
be VB
`` ``
Third NNP
World NNP
bonds NNS
, ,
'' ''
backed VBN
by IN
loans NNS
to TO
Brazil NNP
, ,
Argentina NNP
and CC
other JJ
debt-ridden JJ
nations NNS
. .

And CC
the DT
biggest JJS
volume NN
this DT
year NN
has VBZ
been VBN
on IN
securities NNS
backed VBN
by IN
credit-card NN
receivables NN
, ,
sometimes RB
known VBN
as IN
`` ``
plastic NN
bonds NNS
. .
'' ''

`` ``
This DT
is VBZ
the DT
heyday NN
of IN
debt NN
, ,
'' ''
says VBZ
James NNP
Grant NNP
, ,
editor NN
of IN
Grant NNP
's POS
Interest NNP
Rate NNP
Observer NNP
, ,
a DT
newsletter NN
. .

`` ``
Before IN
the DT
sun NN
sets NNS
on IN
the DT
'80s NNS
, ,
it PRP
seems VBZ
nothing NN
will MD
be VB
left VBN
unhocked VBN
. .
'' ''

The DT
result NN
is VBZ
a DT
$ $
45 CD
billion CD
market NN
, ,
according VBG
to TO
Securities NNP
Data NNP
Co NNP
. .

That DT
includes VBZ
more JJR
than IN
$ $
9.5 CD
billion CD
issued VBN
through IN
August NNP
of IN
this DT
year NN
, ,
up IN
sharply RB
from IN
$ $
6.5 CD
billion CD
in IN
the DT
comparable JJ
1988 CD
period NN
-- :
and CC
more JJR
than IN
in IN
all DT
of IN
1987 CD
. .

Most JJS
issues NNS
have VBP
been VBN
sold VBN
to TO
professional JJ
money NN
managers NNS
, ,
pension NN
funds NNS
, ,
bank NN
trust NN
departments NNS
and CC
other JJ
institutions NNS
. .

But CC
wealthy JJ
individuals NNS
also RB
have VBP
been VBN
jumping VBG
in IN
, ,
and CC
lately RB
brokers NNS
have VBP
been VBN
pushing VBG
smaller JJR
investors NNS
into IN
the DT
asset-backed JJ
market NN
. .

The DT
entry NN
fee NN
is VBZ
affordable JJ
: :
Issues NNS
typically RB
are VBP
sold VBN
in IN
minimum JJ
denominations NNS
of IN
$ $
1,000 CD
. .

`` ``
We PRP
expect VBP
additional JJ
offerings NNS
'' ''
of IN
asset-backed JJ
securities NNS
targeted VBN
toward IN
individual JJ
investors NNS
, ,
says VBZ
Bill NNP
Addiss NNP
, ,
a DT
senior JJ
vice NN
president NN
at IN
Shearson NNP
Lehman NNP
Hutton NNP
Inc NNP
. .

The DT
process NN
typically RB
begins VBZ
when WRB
an DT
institution NN
, ,
such JJ
as IN
Citibank NNP
or CC
Sears NNP
, ,
Roebuck NNP
& CC
Co. NNP
, ,
takes VBZ
a DT
pool NN
of IN
credit-card NN
or CC
other JJ
receivables NN
and CC
sells VBZ
them PRP
to TO
a DT
specially RB
created VBN
trust NN
. .

The DT
trust NN
then RB
issues VBZ
securities NNS
-- :
generally RB
due JJ
in IN
five CD
years NNS
or CC
less JJR
-- :
that WDT
are VBP
underwritten VBN
by IN
Wall NNP
Street NNP
brokerage NN
firms NNS
and CC
offered VBN
to TO
investors NNS
. .
Issues NNS
typically RB
come VBP
with IN
`` ``
credit NN
enhancements NNS
, ,
'' ''
such JJ
as IN
a DT
bank NN
letter NN
of IN
credit NN
, ,
and CC
thus RB
have VBP
received VBN
high JJ
credit NN
ratings NNS
. .

Enthusiasts NNS
say VBP
the DT
booming JJ
market NN
has VBZ
opened VBN
up IN
a DT
valuable JJ
new JJ
source NN
of IN
funds NNS
to TO
issuers NNS
, ,
while IN
providing VBG
a DT
valuable JJ
new JJ
investment NN
for IN
individuals NNS
and CC
institutions NNS
. .

Asset-backed JJ
securities NNS
`` ``
are VBP
an DT
attractive JJ
investment NN
compared VBN
to TO
bank VB
certificates NNS
of IN
deposit NN
or CC
other JJ
corporate JJ
bonds NNS
, ,
'' ''
says VBZ
Craig NNP
J. NNP
Goldberg NNP
, ,
managing VBG
director NN
and CC
head NN
of IN
the DT
asset-backed JJ
securities NNS
group VBP
at IN
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
. .

But CC
skeptics NNS
question VBP
whether IN
asset-backed JJ
bonds NNS
offer VBP
sufficient JJ
rewards NNS
to TO
compensate VB
for IN
the DT
extra JJ
risks NNS
. .

Consider VB
a DT
$ $
500 CD
million CD
offering NN
of IN
9 CD
% NN
securities NNS
issued VBD
last JJ
spring NN
and CC
backed VBN
by IN
Citibank NNP
credit-card NN
receivables NN
. .

The DT
triple-A-rated JJ
issue NN
offered VBD
a DT
yield NN
of IN
only RB
about IN
0.5 CD
percentage NN
point NN
above IN
four-year JJ
Treasury NNP
issues NNS
. .

On IN
a DT
$ $
10,000 CD
investment NN
, ,
that DT
's VBZ
a DT
difference NN
of IN
only RB
$ $
50 CD
a DT
year NN
. .

That DT
kind NN
of IN
spread NN
can MD
be VB
critical JJ
for IN
money NN
managers NNS
who WP
buy VBP
bonds NNS
in IN
large JJ
quantities NNS
and CC
whose WP$
livelihood NN
depends VBZ
on IN
outperforming VBG
the DT
money NN
manager NN
across IN
the DT
street NN
. .

But CC
for IN
individuals NNS
who WP
buy VBP
much RB
smaller JJR
amounts NNS
and CC
care NN
less JJR
about IN
relative JJ
performance NN
than IN
in IN
preserving VBG
what WP
they PRP
have VBP
, ,
that DT
margin NN
is VBZ
meaningless JJ
. .

`` ``
If IN
you PRP
're VBP
in IN
the DT
bond NN
business NN
playing VBG
the DT
relative-performance JJ
derby NN
, ,
then RB
even RB
an DT
extra JJ
25 CD
basis NN
points NNS
-LRB- (
0.25 CD
percentage NN
point NN
-RRB- )
becomes VBZ
an DT
important JJ
consideration NN
on IN
a DT
career NN
basis NN
, ,
'' ''
says VBZ
Mr. NNP
Grant NNP
. .

`` ``
But CC
if IN
you PRP
're VBP
an DT
individual JJ
investing NN
money NN
and CC
trying VBG
to TO
get VB
it PRP
back RB
again RB
, ,
then RB
that WDT
is VBZ
n't RB
of IN
overwhelming JJ
importance NN
. .
'' ''

Moreover RB
, ,
the DT
interest NN
on IN
asset-backed JJ
securities NNS
is VBZ
fully RB
taxable JJ
, ,
while IN
interest NN
on IN
Treasury NNP
issues NNS
is VBZ
tax-free JJ
at IN
the DT
state NN
and CC
local JJ
level NN
. .

That DT
's VBZ
why WRB
some DT
investment NN
managers NNS
, ,
such JJ
as IN
Alex NNP
Powers NNP
, ,
a DT
vice NN
president NN
of IN
Chase NNP
Manhattan NNP
Bank NNP
's POS
private JJ
banking NN
division NN
, ,
do VBP
n't RB
recommend VB
most RBS
asset-backed JJ
issues NNS
for IN
individuals NNS
in IN
high-tax JJ
states NNS
, ,
such JJ
as IN
New NNP
York NNP
or CC
California NNP
. .

But CC
Mr. NNP
Powers NNP
has VBZ
purchased VBN
asset-backed JJ
issues NNS
for IN
individuals NNS
with IN
tax-deferred JJ
accounts NNS
, ,
such JJ
as IN
retirement NN
plans NNS
. .

He PRP
points VBZ
out RP
that IN
institutions NNS
buying VBG
asset-backed JJ
issues NNS
in IN
large JJ
quantities NNS
can MD
earn VB
higher JJR
spreads VBZ
over IN
Treasurys NNPS
than IN
individuals NNS
buying VBG
smaller JJR
amounts NNS
. .

Another DT
concern NN
is VBZ
liquidity NN
, ,
or CC
how WRB
easily RB
a DT
security NN
can MD
be VB
converted VBN
into IN
cash NN
. .

The DT
secondary JJ
, ,
or CC
resale NN
, ,
market NN
for IN
asset-backed JJ
securities NNS
is VBZ
relatively RB
new JJ
and CC
much RB
less RBR
active JJ
than IN
for IN
Treasury NNP
issues NNS
. .

That DT
could MD
make VB
it PRP
tricky JJ
for IN
investors NNS
who WP
need VBP
to TO
sell VB
their PRP$
holdings NNS
quickly RB
before IN
the DT
securities NNS
mature JJ
. .

That DT
's VBZ
particularly RB
true JJ
, ,
analysts NNS
say VBP
, ,
for IN
certain JJ
of IN
the DT
securities NNS
, ,
such JJ
as IN
those DT
backed VBN
by IN
time-share JJ
loans NNS
. .

`` ``
You PRP
could MD
see VB
massive JJ
gyrations NNS
here RB
because IN
it PRP
's VBZ
such JJ
a DT
thinly RB
traded VBN
market NN
, ,
'' ''
says VBZ
Jonathan NNP
S. NNP
Paris NNP
, ,
a DT
vice NN
president NN
of IN
European JJ
Investors NNP
Inc. NNP
, ,
a DT
New NNP
York NNP
investment-management NN
firm NN
. .

In IN
addition NN
, ,
an DT
investor NN
who WP
wants VBZ
to TO
know VB
the DT
daily JJ
value NN
of IN
Treasury NNP
bonds NNS
, ,
or CC
corporate JJ
bonds NNS
traded VBN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
can MD
simply RB
check VB
newspaper NN
listings NNS
. .

There EX
are VBP
n't RB
any DT
such JJ
listings NNS
for IN
asset-backed JJ
securities NNS
. .

Evaluating VBG
asset-backed JJ
securities NNS
poses VBZ
another DT
problem NN
. .

Investors NNS
, ,
for IN
instance NN
, ,
may MD
mistakenly RB
assume VB
that IN
the DT
bank NN
or CC
company NN
that IN
originally RB
held VBN
the DT
assets NNS
is VBZ
guaranteeing VBG
the DT
securities NNS
. .

It PRP
is VBZ
n't RB
. .

The DT
front NN
cover NN
of IN
the DT
prospectus NN
for IN
the DT
Citibank NNP
credit-card NN
receivables NN
offering NN
points NNS
out IN
in IN
bold JJ
capital NN
letters NNS
that IN
the DT
certificates NNS
represent VBP
an DT
interest NN
only RB
in IN
the DT
specially RB
created VBN
trust NN
and CC
`` ``
do VBP
not RB
represent VB
interests NNS
in IN
or CC
obligations NNS
of IN
the DT
banks NNS
, ,
Citibank NNP
N.A. NNP
, ,
Citicorp NNP
or CC
any DT
affiliate NN
thereof RB
. .
'' ''

In IN
other JJ
words NNS
, ,
if IN
there EX
's VBZ
a DT
problem NN
, ,
do VBP
n't RB
expect VB
Citibank NNP
to TO
come VB
to TO
the DT
rescue NN
. .

The DT
prospectus NN
also RB
notes VBZ
that IN
the DT
securities NNS
are VBP
not RB
guaranteed VBN
by IN
any DT
government NN
agency NN
. .

That DT
means VBZ
investors NNS
have VBP
to TO
focus VB
on IN
the DT
quality NN
of IN
the DT
debt NN
that WDT
lies VBZ
beneath IN
the DT
securities NNS
, ,
as RB
well RB
as IN
on IN
the DT
credit NN
enhancement NN
for IN
the DT
issue NN
and CC
the DT
credit NN
ratings NNS
the DT
issue NN
has VBZ
received VBN
. .

That DT
also RB
is VBZ
n't RB
easy JJ
. .

Take VB
the DT
`` ``
credit NN
enhancements NNS
, ,
'' ''
which WDT
typically RB
include VBP
a DT
bank NN
letter NN
of IN
credit NN
or CC
insurance NN
from IN
a DT
bond-insurance JJ
company NN
. .
The DT
letter NN
of IN
credit NN
typically RB
is VBZ
not RB
offered VBN
by IN
the DT
bank NN
selling VBG
the DT
assets NNS
to TO
back RB
the DT
securities NNS
. .

Nor CC
does VBZ
it PRP
cover VBP
the DT
entire JJ
portfolio NN
. .

Details NNS
of IN
credit NN
enhancements NNS
vary VBP
widely RB
from IN
issue NN
to TO
issue VB
. .

Still RB
, ,
they PRP
play VBP
a DT
crucial JJ
role NN
in IN
winning VBG
top JJ
ratings NNS
for IN
most RBS
asset-backed JJ
issues NNS
-- :
which WDT
in IN
turn NN
is VBZ
why WRB
the DT
yield NN
above IN
Treasurys NNPS
is VBZ
so RB
slim JJ
. .

But CC
skeptics NNS
ask VBP
why WRB
you PRP
should MD
bother VB
buying VBG
this DT
stuff NN
when WRB
you PRP
can MD
get VB
only RB
slightly RB
lower JJR
yields NNS
on IN
government-guaranteed JJ
paper NN
. .

When WRB
you PRP
buy VBP
an DT
asset-backed JJ
issue NN
, ,
you PRP
take VBP
the DT
risk NN
that IN
a DT
bank NN
or CC
an DT
insurer NN
could MD
run VB
into IN
unexpected JJ
difficulties NNS
. .
If IN
a DT
bank NN
's POS
credit NN
rating NN
was VBD
lowered VBN
because IN
of IN
, ,
say VBP
, ,
its PRP$
loans NNS
to TO
Third NNP
World NNP
nations NNS
, ,
that WDT
could MD
also RB
affect VB
the DT
ratings NNS
, ,
liquidity NN
and CC
prices NNS
of IN
the DT
asset-backed JJ
issues NNS
that IN
the DT
bank NN
supports NNS
. .

Underwriters NNS
insist VBP
these DT
issues NNS
are VBP
constructed VBN
to TO
withstand VB
extremely RB
tough JJ
economic JJ
conditions NNS
. .

But CC
despite IN
the DT
credit NN
enhancements NNS
, ,
despite IN
the DT
high JJ
ratings NNS
, ,
some DT
money NN
managers NNS
still RB
worry VBP
that IN
a DT
recession NN
could MD
wreak VB
havoc NN
on IN
the DT
underlying VBG
assets NNS
. .

At IN
a DT
time NN
when WRB
Americans NNPS
are VBP
leveraged JJ
to TO
their PRP$
eyeballs NNS
, ,
asset-backed JJ
investors NNS
may MD
be VB
taking VBG
a DT
heady JJ
gamble NN
that IN
consumers NNS
will MD
be VB
able JJ
to TO
repay VB
loans NNS
in IN
hard JJ
times NNS
. .

At IN
the DT
very RB
least JJS
, ,
a DT
recession NN
would MD
prompt VB
investors NNS
to TO
buy VB
the DT
highest-quality JJ
bonds NNS
they PRP
can MD
find VB
-- :
that DT
is VBZ
, ,
Treasurys NNPS
. .

That DT
could MD
widen VB
the DT
yield NN
spread NN
between IN
Treasurys NNPS
and CC
asset-backed JJ
securities NNS
, ,
as RB
well RB
as IN
make NN
it PRP
tougher JJR
to TO
unload VB
the DT
latter NN
. .

But CC
it PRP
could MD
be VB
much RB
worse JJR
. .

Some DT
analysts NNS
are VBP
especially RB
wary JJ
of IN
credit-card NN
issues NNS
. .

For IN
one CD
thing NN
, ,
credit-card NN
loans NNS
are VBP
unsecured JJ
. .

In IN
addition NN
, ,
they PRP
fear VBP
that IN
banks NNS
have VBP
been VBN
overeager JJ
to TO
issue VB
cards NNS
to TO
the DT
public JJ
-- :
giving VBG
cards NNS
to TO
too RB
many JJ
big JJ
spenders NNS
who WP
will MD
default VB
during IN
a DT
recession NN
. .

`` ``
A DT
day NN
of IN
reckoning NN
is VBZ
coming VBG
where WRB
we PRP
think VBP
the DT
market NN
will MD
place VB
a DT
high JJ
premium NN
on IN
the DT
highest-quality JJ
debt NN
issues NNS
, ,
and CC
therefore RB
we PRP
think VBP
the DT
best JJS
debt NN
investment NN
is VBZ
U.S. NNP
government NN
bonds NNS
, ,
'' ''
says VBZ
Craig NNP
Corcoran NNP
of IN
Davis\/Zweig NNP
Futures NNP
Inc. NNP
, ,
an DT
investment NN
advisory JJ
firm NN
. .

What WP
about IN
triple-A-rated JJ
asset-backed JJ
issues NNS
? .

`` ``
Nope UH
, ,
we PRP
still RB
say VBP
to TO
stick VB
with IN
Treasurys NNPS
, ,
'' ''
Mr. NNP
Corcoran NNP
replies VBZ
. .

Ratings NNS
, ,
he PRP
notes VBZ
, ,
`` ``
are VBP
subject NN
to TO
change VB
. .
'' ''

All DT
this DT
makes VBZ
asset-backed JJ
securities NNS
seem VBP
too RB
risky JJ
for IN
many JJ
people NNS
. .

And CC
it PRP
reminds VBZ
Raymond NNP
F. NNP
DeVoe NNP
Jr. NNP
, ,
a DT
market NN
strategist NN
at IN
Legg NNP
Mason NNP
Wood NNP
Walker NNP
Inc. NNP
, ,
of IN
what WP
he PRP
calls VBZ
`` ``
DeVoe NNP
's POS
Unprovable JJ
but CC
Highly RB
Probable NNP
Theory NNP
No. NN
1 CD
: :

`` ``
More JJR
money NN
has VBZ
been VBN
lost VBN
reaching VBG
for IN
yield NN
than IN
in IN
all PDT
the DT
stock NN
speculations NNS
, ,
scams NNS
and CC
frauds NNS
of IN
all DT
time NN
. .
'' ''

Mr. NNP
Herman NNP
is VBZ
a DT
staff NN
reporter NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
New NNP
York NNP
bureau NN
. .

Volume NN
of IN
asset-backed JJ
securities NNS
issued VBN
annually RB

\* SYM
Principal NNP
amount NN

\*\* SYM
As IN
of IN
August NNP
30 CD

\* SYM
Principal NNP
amount NN

Source NN
: :
Securities NNP
Data NNP
Co NNP
. .

IF IN
YOU PRP
FORCE VBP
financial JJ
planners NNS
to TO
sum VB
up IN
their PRP$
most RBS
important JJ
advice NN
in IN
a DT
single JJ
sentence NN
, ,
it PRP
would MD
probably RB
be VB
a DT
one-word JJ
sentence NN
: :
Diversify VB
. .

Judging VBG
by IN
a DT
poll NN
of IN
Wall NNP
Street NNP
Journal NNP
readers NNS
conducted VBD
this DT
summer NN
by IN
Erdos NNP
& CC
Morgan NNP
Inc. NNP
, ,
serious JJ
investors NNS
have VBP
taken VBN
that DT
advice NN
to TO
heart VB
. .

Nearly RB
1,000 CD
investors NNS
responded VBD
to TO
the DT
Journal NNP
's POS
poll NN
, ,
providing VBG
an DT
in-depth JJ
look NN
at IN
their PRP$
portfolios NNS
. .

Those DT
portfolios NNS
are VBP
remarkably RB
diversified JJ
. .

By IN
spreading VBG
their PRP$
wealth NN
among IN
several JJ
investment NN
alternatives NNS
, ,
the DT
respondents NNS
have VBP
protected VBN
themselves PRP
against IN
squalls NNS
in IN
any DT
one CD
area NN
, ,
be VB
it PRP
stocks VBZ
, ,
bonds NNS
or CC
real JJ
estate NN
. .

For IN
example NN
, ,
about IN
88 CD
% NN
of IN
Journal NNP
readers NNS
owned VBD
stock NN
-LRB- (
down RB
slightly RB
from IN
91 CD
% NN
in IN
a DT
similar JJ
poll NN
last JJ
year NN
-RRB- )
. .

But CC
only RB
17.5 CD
% NN
said VBD
they PRP
had VBD
more JJR
than IN
half VB
their PRP$
money NN
in IN
the DT
stock NN
market NN
. .

Similarly RB
, ,
57 CD
% NN
of IN
respondents NNS
own JJ
shares NNS
in IN
a DT
money-market JJ
mutual JJ
fund NN
, ,
and CC
33 CD
% NN
own JJ
municipal JJ
bonds NNS
. .

But CC
only RB
6 CD
% NN
to TO
7 CD
% NN
of IN
the DT
investors NNS
were VBD
committing VBG
more JJR
than IN
half VB
their PRP$
funds NNS
to TO
either DT
of IN
those DT
alternatives NNS
. .

The DT
poll NN
, ,
conducted VBN
Aug. NNP
7-28 JJ
, ,
also RB
provides VBZ
a DT
glimpse NN
into IN
the DT
thinking NN
of IN
serious JJ
investors NNS
on IN
a DT
variety NN
of IN
other JJ
topics NNS
. .

It PRP
found VBD
them PRP
in IN
a DT
cautious JJ
, ,
but CC
not RB
downbeat JJ
, ,
mood NN
. .

Of IN
1,500 CD
people NNS
sent VBD
a DT
questionnaire NN
, ,
951 CD
replied VBD
. .

The DT
response NN
rate NN
, ,
more JJR
than IN
63 CD
% NN
, ,
allows VBZ
the DT
results NNS
to TO
be VB
interpreted VBN
with IN
a DT
high JJ
degree NN
of IN
confidence NN
. .

The DT
results NNS
ca MD
n't RB
be VB
extrapolated VBN
to TO
all DT
investors NNS
, ,
though RB
. .

Journal NN
readers NNS
are VBP
relatively RB
affluent JJ
, ,
with IN
a DT
median JJ
household NN
income NN
of IN
between IN
$ $
75,000 CD
and CC
$ $
99,000 CD
. .

Nearly RB
half NN
of IN
the DT
respondents NNS
-LRB- (
47 CD
% NN
-RRB- )
said VBD
their PRP$
investment NN
portfolio NN
was VBD
worth JJ
$ $
250,000 CD
or CC
more JJR
, ,
and CC
17 CD
% NN
said VBD
it PRP
was VBD
worth JJ
$ $
1 CD
million CD
or CC
more JJR
. .

The DT
respondents NNS
were VBD
mildly RB
optimistic JJ
about IN
the DT
economy NN
and CC
investment NN
markets NNS
, ,
but CC
their PRP$
collective JJ
judgments NNS
were VBD
a DT
notch NN
more RBR
sober JJ
than IN
they PRP
were VBD
a DT
year NN
ago RB
. .

For IN
example NN
, ,
12 CD
% NN
of IN
this DT
year NN
's POS
respondents NNS
said VBD
they PRP
expect VBP
a DT
recession NN
within IN
12 CD
months NNS
. .

Last JJ
year NN
, ,
only RB
8 CD
% NN
were VBD
expecting VBG
a DT
recession NN
. .

An DT
additional JJ
56 CD
% NN
of IN
this DT
year NN
's POS
respondents NNS
expect VBP
the DT
economy NN
to TO
slow VB
down RB
during IN
the DT
next JJ
12 CD
months NNS
. .

Only RB
42 CD
% NN
of IN
last JJ
year NN
's POS
respondents NNS
anticipated VBN
slowing VBG
growth NN
. .

Apparently RB
, ,
the DT
respondents NNS
do VBP
n't RB
think VB
that IN
an DT
economic JJ
slowdown NN
would MD
harm VB
the DT
major JJ
investment NN
markets NNS
very RB
much RB
. .

A DT
slim JJ
majority NN
-LRB- (
51 CD
% NN
-RRB- )
think VBP
stock NN
prices NNS
will MD
be VB
higher JJR
in IN
August NNP
1990 CD
than IN
they PRP
were VBD
in IN
August NNP
1989 CD
. .

Their PRP$
verdict NN
on IN
real JJ
estate NN
is VBZ
almost RB
the DT
same JJ
. .

Some DT
50 CD
% NN
expect VBP
real JJ
estate NN
in IN
their PRP$
local JJ
area NN
to TO
increase VB
in IN
value NN
over IN
the DT
next JJ
12 CD
months NNS
. .
By IN
contrast NN
, ,
only RB
32 CD
% NN
expect VBP
an DT
increase NN
in IN
the DT
price NN
of IN
gold NN
. .

Since IN
gold NN
tends VBZ
to TO
soar VB
when WRB
inflation NN
is VBZ
high JJ
, ,
that IN
finding VBG
suggests VBZ
that IN
people NNS
believe VBP
inflation NN
remains VBZ
under IN
control NN
. .

Even RB
though IN
only RB
12 CD
% NN
actually RB
predicted VBD
a DT
recession NN
, ,
many JJ
respondents NNS
were VBD
taking VBG
a DT
better-safe-than JJ
sorry JJ
investment NN
stance NN
. .
Nearly RB
a DT
third JJ
said VBD
they PRP
have VBP
made VBN
some DT
portfolio NN
changes NNS
to TO
anticipate VB
a DT
possible JJ
recession NN
. .

For IN
the DT
most RBS
part NN
, ,
the DT
changes NNS
were VBD
`` ``
slight JJ
. .
'' ''

The DT
two-thirds NNS
who WP
have VBP
n't RB
tried VBN
to TO
make VB
their PRP$
portfolios NNS
more RBR
recession-resistant JJ
were VBD
split NN
about IN
evenly RB
between IN
investors NNS
who WP
`` ``
do VBP
n't RB
believe VB
in IN
trying VBG
to TO
predict VB
the DT
markets NNS
'' ''
-LRB- (
about IN
31 CD
% NN
-RRB- )
and CC
investors NNS
who WP
`` ``
do VBP
n't RB
expect VB
a DT
recession NN
'' ''
-LRB- (
about IN
15 CD
% NN
-RRB- )
or CC
are VBP
`` ``
unsure JJ
if IN
and CC
when WRB
a DT
recession NN
might MD
come VB
'' ''
-LRB- (
about IN
22 CD
% NN
-RRB- )
. .

A DT
buy-and-hold JJ
approach NN
to TO
stocks NNS
continues VBZ
to TO
be VB
the DT
rule NN
among IN
respondents NNS
. .

Most JJS
own JJ
two CD
to TO
10 CD
stocks NNS
, ,
and CC
buy VB
or CC
sell VB
no DT
more JJR
than IN
three CD
times VBZ
a DT
year NN
. .

Some DT
71 CD
% NN
had VBD
bought VBN
some DT
stock NN
in IN
the DT
past JJ
year NN
; :
only RB
57 CD
% NN
had VBD
sold VBN
any DT
. .

But CC
the DT
lurking VBG
shadow NN
of IN
1987 CD
's POS
stock-market NN
crash NN
still RB
seems VBZ
dark JJ
. .

About IN
33 CD
% NN
considered VBD
another DT
crash NN
`` ``
likely JJ
, ,
'' ''
while IN
about IN
63 CD
% NN
said VBD
one CD
is VBZ
`` ``
unlikely JJ
. .
'' ''

Those DT
percentages NNS
hardly RB
changed VBN
from IN
the DT
previous JJ
year NN
's POS
poll NN
. .

And CC
the DT
respondents NNS
' POS
commitment NN
to TO
the DT
stock NN
market NN
remains VBZ
somewhat RB
lighter JJR
than IN
usual JJ
. .

About IN
60 CD
% NN
of IN
them PRP
said VBD
they PRP
would MD
`` ``
ordinarily RB
'' ''
have VBP
at IN
least JJS
25 CD
% NN
of IN
their PRP$
money NN
in IN
stocks NNS
. .

But CC
as IN
of IN
August NNP
, ,
only RB
50 CD
% NN
actually RB
had VBD
stock-market NN
investments NNS
of IN
that DT
size NN
. .

Most JJS
stock-market NN
indexes NNS
were VBD
hitting VBG
all-time JJ
highs NNS
at IN
around IN
the DT
time NN
of IN
the DT
poll NN
. .

But CC
it PRP
appears VBZ
that IN
many JJ
Journal NNP
readers NNS
were VBD
taking VBG
that DT
news NN
as IN
a DT
sign NN
to TO
be VB
cautious JJ
, ,
rather RB
than IN
a DT
signal NN
to TO
jump VB
on IN
the DT
bandwagon NN
. .

Mr. NNP
Dorfman NNP
covers VBZ
investing VBG
issues NNS
from IN
The DT
Wall NNP
Street NNP
Journal NNP
's POS
New NNP
York NNP
bureau NN
. .

Canadian JJ
steel NN
ingot NN
production NN
totaled VBD
276,334 CD
metric JJ
tons NNS
in IN
the DT
week NN
ended VBN
Oct. NNP
14 CD
, ,
down RB
5.3 CD
% NN
from IN
the DT
preceding VBG
week NN
's POS
total NN
of IN
291,890 CD
tons NNS
, ,
Statistics NNP
Canada NNP
, ,
a DT
federal JJ
agency NN
, ,
said VBD
. .

The DT
week NN
's POS
total NN
was VBD
down RB
7.1 CD
% NN
from IN
297,446 CD
tons NNS
a DT
year NN
earlier RBR
. .

A DT
metric JJ
ton NN
is VBZ
equal JJ
to TO
2,204.62 CD
pounds NNS
. .

The DT
cumulative JJ
total NN
in IN
1989 CD
was VBD
12,283,217 CD
tons NNS
, ,
up IN
7.5 CD
% NN
from IN
11,429,243 CD
tons NNS
a DT
year NN
earlier RBR
. .

Health NNP
Care NNP
Property NNP
Investors NNP
Inc. NNP
said VBD
it PRP
acquired VBD
three CD
long-term JJ
care NN
facilities NNS
and CC
one CD
assisted-living JJ
facility NN
in IN
a DT
purchase-and-lease JJ
transaction NN
valued VBN
at IN
$ $
15 CD
million CD
. .

The DT
real JJ
estate NN
investment NN
trust NN
said VBD
that IN
it PRP
leased VBD
the DT
three CD
Florida NNP
facilities NNS
to TO
National NNP
Health NNP
Care NNP
Affiliates NNP
Inc. NNP
of IN
Buffalo NNP
, ,
N.Y NNP
. .

Health NNP
Care NNP
Property NNP
holds VBZ
an DT
interest NN
in IN
139 CD
facilities NNS
in IN
30 CD
states NNS
. .

Moody NNP
's POS
Investors NNP
Service NNP
said VBD
it PRP
lowered VBD
its PRP$
rating NN
on IN
about RB
$ $
75 CD
million CD
of IN
this DT
Chatsworth NNP
, ,
Calif. NNP
, ,
concern NN
's POS
convertible JJ
subordinated VBN
debentures NNS
, ,
due JJ
2012 CD
, ,
to TO
Caa NNP
from IN
B2 NN
. .

It PRP
said VBD
the DT
reduction NN
reflects VBZ
impaired VBN
business NN
prospects NNS
and CC
reduced VBN
financial JJ
flexibility NN
caused VBN
by IN
continuing VBG
losses NNS
at IN
the DT
maker NN
of IN
Winchester NNP
disk NN
drives NNS
. .

VALLEY NNP
National NNP
Corp. NNP
-- :

Moody NNP
's POS
Investors NNP
Service NNP
Inc. NNP
said VBD
it PRP
lowered VBD
its PRP$
rating NN
on IN
about RB
$ $
400 CD
million CD
of IN
this DT
bank NN
holding VBG
company NN
's POS
senior JJ
debt NN
to TO
B2 NN
from IN
Ba3 NN
. .

Moody NNP
's POS
said VBD
it PRP
expects VBZ
Valley NNP
National NNP
, ,
of IN
Phoenix NNP
, ,
Ariz. NNP
, ,
to TO
make VB
substantial JJ
further JJ
provisions NNS
against IN
its PRP$
real-estate NN
portfolio NN
, ,
and CC
that IN
it PRP
continues VBZ
to TO
suffer VB
from IN
the DT
high JJ
cost NN
of IN
carrying VBG
nonperforming JJ
assets NNS
, ,
and CC
from IN
high JJ
loan-loss NN
provisions NNS
. .

Electronic JJ
theft NN
by IN
foreign JJ
and CC
industrial JJ
spies NNS
and CC
disgruntled JJ
employees NNS
is VBZ
costing VBG
U.S. NNP
companies NNS
billions NNS
and CC
eroding VBG
their PRP$
international JJ
competitive JJ
advantage NN
. .

That DT
was VBD
the DT
message NN
delivered VBN
by IN
government NN
and CC
private JJ
security NN
experts NNS
at IN
an DT
all-day JJ
conference NN
on IN
corporate JJ
electronic JJ
espionage NN
. .

`` ``
Hostile JJ
and CC
even RB
friendly JJ
nations NNS
routinely RB
steal VBP
information NN
from IN
U.S. NNP
companies NNS
and CC
share NN
it PRP
with IN
their PRP$
own JJ
companies NNS
, ,
'' ''
said VBD
Noel NNP
D. NNP
Matchett NNP
, ,
a DT
former JJ
staffer NN
at IN
the DT
federal JJ
National NNP
Security NNP
Agency NNP
and CC
now JJ
president NN
of IN
Information NNP
Security NNP
Inc. NNP
, ,
Silver NNP
Spring NNP
, ,
Md NNP
. .

It PRP
`` ``
may MD
well RB
be VB
'' ''
that DT
theft NN
of IN
business NN
data NNS
is VBZ
`` ``
as IN
serious JJ
a DT
strategic JJ
threat NN
to TO
national JJ
security NN
'' ''
as IN
it PRP
is VBZ
a DT
threat NN
to TO
the DT
survival NN
of IN
victimized VBN
U.S. NNP
firms NNS
, ,
said VBD
Michelle NNP
Van NNP
Cleave NNP
, ,
the DT
White NNP
House NNP
's POS
assistant NN
director NN
for IN
National NNP
Security NNP
Affairs NNP
. .

The DT
conference NN
was VBD
jointly RB
sponsored VBN
by IN
the DT
New NNP
York NNP
Institute NNP
of IN
Technology NNP
School NNP
of IN
Management NNP
and CC
the DT
Armed NNP
Forces NNPS
Communications NNPS
and CC
Electronics NNP
Association NNP
, ,
a DT
joint JJ
industry-government JJ
trade NN
group NN
. .

Any DT
secret NN
can MD
be VB
pirated VBN
, ,
the DT
experts NNS
said VBD
, ,
if IN
it PRP
is VBZ
transmitted VBN
over IN
the DT
air NN
. .

Even JJ
rank NN
amateurs NNS
can MD
do VB
it PRP
if IN
they PRP
spend VBP
a DT
few JJ
thousand CD
dollars NNS
for IN
a DT
commercially RB
available JJ
microwave NN
receiver NN
with IN
amplifier NN
and CC
a DT
VCR NNP
recorder NN
. .

They PRP
need VBP
only JJ
position NN
themselves PRP
near IN
a DT
company NN
's POS
satellite NN
dish NN
and CC
wait VB
. .

`` ``
You PRP
can MD
have VB
a DT
dozen NN
competitors NNS
stealing VBG
your PRP$
secrets NNS
at IN
the DT
same JJ
time NN
, ,
'' ''
Mr. NNP
Matchett NNP
said VBD
, ,
adding VBG
: :
`` ``
It PRP
's VBZ
a DT
pretty RB
good JJ
bet NN
they PRP
wo MD
n't RB
get VB
caught VBN
. .
'' ''

The DT
only JJ
way NN
to TO
catch VB
an DT
electronic JJ
thief NN
, ,
he PRP
said VBD
, ,
is VBZ
to TO
set VB
him PRP
up IN
with IN
erroneous JJ
information NN
. .

Even RB
though IN
electronic JJ
espionage NN
may MD
cost VB
U.S. NNP
firms NNS
billions NNS
of IN
dollars NNS
a DT
year NN
, ,
most RBS
are VBP
n't RB
yet RB
taking VBG
precautions NNS
, ,
the DT
experts NNS
said VBD
. .

By IN
contrast NN
, ,
European JJ
firms NNS
will MD
spend VB
$ $
150 CD
million CD
this DT
year NN
on IN
electronic JJ
security NN
, ,
and CC
are VBP
expected VBN
to TO
spend VB
$ $
1 CD
billion CD
by IN
1992 CD
. .

Already RB
many JJ
foreign JJ
firms NNS
, ,
especially RB
banks VBZ
, ,
have VBP
their PRP$
own JJ
cryptographers NNS
, ,
conference NN
speakers NNS
reported VBD
. .

Still RB
, ,
encrypting VBG
corporate JJ
communications NNS
is VBZ
only RB
a DT
partial JJ
remedy NN
. .

One CD
expert NN
, ,
whose WP$
job NN
is VBZ
so RB
politically RB
sensitive JJ
that IN
he PRP
spoke VBD
on IN
condition NN
that IN
he PRP
would MD
n't RB
be VB
named VBN
or CC
quoted VBN
, ,
said VBD
the DT
expected VBN
influx NN
of IN
East NNP
European JJ
refugees NNS
over IN
the DT
next JJ
few JJ
years NNS
will MD
greatly RB
increase VB
the DT
chances NNS
of IN
computer-maintenance NN
workers NNS
, ,
for IN
example NN
, ,
doubling VBG
as IN
foreign JJ
spies NNS
. .

Moreover RB
, ,
he PRP
said VBD
, ,
technology NN
now RB
exists VBZ
for IN
stealing VBG
corporate JJ
secrets NNS
after IN
they PRP
've VBP
been VBN
`` ``
erased VBN
'' ''
from IN
a DT
computer NN
's POS
memory NN
. .

He PRP
said VBD
that IN
Oliver NNP
North NNP
of IN
Iran-Contra NNP
notoriety NN
thought VBD
he PRP
had VBD
erased VBN
his PRP$
computer NN
but CC
that IN
the DT
information NN
was VBD
later RB
retrieved VBN
for IN
congressional JJ
committees NNS
to TO
read VB
. .

No DT
personal JJ
computer NN
, ,
not RB
even RB
the DT
one CD
on IN
a DT
chief JJ
executive NN
's POS
desk NN
, ,
is VBZ
safe JJ
, ,
this DT
speaker NN
noted VBD
. .

W. NNP
Mark NNP
Goode NNP
, ,
president NN
of IN
Micronyx NNP
Inc. NNP
, ,
a DT
Richardson NNP
, ,
Texas NNP
, ,
firm NN
that WDT
makes VBZ
computer-security JJ
products NNS
, ,
provided VBD
a DT
new JJ
definition NN
for IN
Mikhail NNP
Gorbachev NNP
's POS
campaign NN
for IN
greater JJR
openness NN
, ,
known VBN
commonly RB
as IN
glasnost FW
. .

Under IN
Mr. NNP
Gorbachev NNP
, ,
Mr. NNP
Goode NNP
said VBD
, ,
the DT
Soviets NNPS
are VBP
openly RB
stealing VBG
Western JJ
corporate JJ
communications NNS
. .

He PRP
cited VBD
the DT
case NN
of IN
a DT
Swiss JJ
oil NN
trader NN
who WP
recently RB
put VB
out RP
bids NNS
via IN
telex NN
for IN
an DT
oil NN
tanker NN
to TO
pick VB
up IN
a DT
cargo NN
of IN
crude NN
in IN
the DT
Middle NNP
East NNP
. .

Among IN
the DT
responses NNS
the DT
Swiss JJ
trader NN
got VBD
was VBD
one CD
from IN
the DT
Soviet JJ
national JJ
shipping NN
company NN
, ,
which WDT
had VBD
n't RB
been VBN
invited VBN
to TO
submit VB
a DT
bid NN
. .

The DT
Soviets NNPS
' POS
eavesdropping NN
paid VBN
off IN
, ,
however RB
, ,
because IN
they PRP
got VBD
the DT
contract NN
. .

The DT
University NNP
of IN
Toronto NNP
stepped VBD
deeper JJR
into IN
the DT
contest NN
for IN
Connaught NNP
BioSciences NNP
Inc. NNP
by IN
reaching VBG
an DT
unusual JJ
agreement NN
with IN
Ciba-Geigy NNP
Ltd. NNP
and CC
Chiron NNP
Corp NNP
. .

The DT
University NNP
said VBD
the DT
two CD
companies NNS
agreed VBD
to TO
spend VB
25 CD
million CD
Canadian JJ
dollars NNS
-LRB- (
$ $
21.3 CD
million CD
-RRB- )
over IN
10 CD
years NNS
on IN
research NN
at IN
Canadian JJ
universities NNS
if IN
they PRP
are VBP
successful JJ
in IN
acquiring VBG
the DT
vaccine NN
maker NN
. .

It PRP
said VBD
$ $
10 CD
million CD
would MD
go VB
to TO
the DT
University NNP
of IN
Toronto NNP
. .

Ciba-Geigy NNP
and CC
Chiron NNP
have VBP
made VBN
a DT
joint JJ
bid NN
of IN
C$ $
866 CD
million CD
for IN
Connaught NNP
, ,
and CC
Institut NNP
Merieux NNP
S.A. NNP
of IN
France NNP
has VBZ
made VBN
a DT
rival JJ
bid NN
of IN
C$ $
942 CD
million CD
. .

The DT
University NNP
is VBZ
seeking VBG
an DT
injunction NN
against IN
the DT
Merieux NNP
bid NN
, ,
arguing VBG
that IN
Connaught NNP
's POS
predecessor NN
company NN
agreed VBD
in IN
1972 CD
that IN
Connaught NNP
's POS
ownership NN
would MD
n't RB
be VB
transferred VBN
to TO
foreigners NNS
. .

The DT
university NN
implied VBN
that IN
it PRP
would MD
drop VB
its PRP$
opposition NN
to TO
foreign JJ
ownership NN
if IN
Ciba-Geigy NNP
and CC
Chiron NNP
are VBP
successful JJ
with IN
their PRP$
lower JJR
bid NN
. .
It PRP
said VBD
the DT
new JJ
agreement NN
would MD
`` ``
replace VB
'' ''
the DT
old JJ
one CD
that IN
forms VBZ
the DT
basis NN
of IN
its PRP$
suit NN
against IN
the DT
Merieux NNP
takeover NN
. .

`` ``
Notwithstanding IN
foreign JJ
ownership NN
of IN
Connaught NNP
, ,
this DT
accord NN
would MD
enhance VB
research NN
and CC
development NN
in IN
Canada NNP
, ,
'' ''
said VBD
James NNP
Keffer NNP
, ,
the DT
university NN
's POS
vice NN
president NN
of IN
research NN
. .

Ciba-Geigy NNP
is VBZ
a DT
Swiss JJ
pharmaceutical JJ
company NN
and CC
Chiron NNP
is VBZ
based VBN
in IN
Emeryville NNP
, ,
Calif NNP
. .

In IN
a DT
statement NN
, ,
Jacques-Francois NNP
Martin NNP
, ,
director NN
general NN
of IN
Merieux NNP
, ,
said VBD
the DT
French JJ
company NN
is VBZ
still RB
determined VBN
to TO
acquire VB
Connaught NNP
. .

While IN
he PRP
did VBD
n't RB
comment VB
directly RB
on IN
the DT
pact NN
between IN
Ciba-Geigy NNP
and CC
the DT
university NN
, ,
he PRP
said VBD
Merieux NNP
can MD
transfer VB
new JJ
products NNS
and CC
technologies NNS
to TO
Connaught NNP
more RBR
rapidly RB
than IN
other JJ
companies NNS
`` ``
not RB
currently RB
producing VBG
and CC
marketing NN
vaccines NNS
-LCB- (
who WP
-RCB- )
can MD
only RB
promise VB
this DT
for IN
some DT
... :
years NNS
in IN
the DT
future NN
. .
'' ''

In IN
national JJ
over-the-counter JJ
trading NN
yesterday NN
, ,
Connaught NNP
closed VBD
at IN
$ $
28.625 CD
, ,
up IN
$ $
1.25 CD
. .

Microsoft NNP
and CC
other JJ
software NN
stocks NNS
surged VBD
, ,
leading VBG
the DT
Nasdaq NNP
composite JJ
index NN
of IN
over-the-counter JJ
stocks NNS
to TO
its PRP$
biggest JJS
advance NN
of IN
the DT
year NN
on IN
breathtaking JJ
volume NN
. .

Leading VBG
the DT
pack NN
, ,
Microsoft NNP
soared VBD
3 CD
3\/4 CD
, ,
or CC
4 CD
% NN
, ,
to TO
a DT
record NN
price NN
of IN
84 CD
1\/4 CD
on IN
1.2 CD
million CD
shares NNS
. .

On IN
the DT
other JJ
hand NN
, ,
Valley NNP
National NNP
tumbled VBD
24 CD
% NN
after IN
reporting VBG
a DT
sizable JJ
third-quarter JJ
loss NN
. .

The DT
Nasdaq NNP
composite NN
leaped VBD
7.52 CD
points NNS
, ,
or CC
1.6 CD
% NN
, ,
to TO
470.80 CD
. .

Its PRP$
largest JJS
previous JJ
rise NN
this DT
year NN
came VBD
Aug. NNP
7 CD
, ,
when WRB
it PRP
gained VBD
4.31 CD
. .

The DT
OTC NNP
market NN
's POS
largest JJS
stocks NNS
soared VBD
as IN
well RB
, ,
as IN
the DT
Nasdaq NNP
100 CD
Index NNP
jumped VBD
10.01 CD
, ,
or CC
2 CD
% NN
, ,
to TO
463.06 CD
. .

The DT
Nasdaq NNP
Financial NNP
Index NNP
rose VBD
5.04 CD
, ,
or CC
1.1 CD
% NN
, ,
to TO
460.33 CD
. .

By IN
comparison NN
, ,
the DT
Dow NNP
Jones NNP
Industrials NNP
and CC
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
Composite NNP
each DT
rose VBD
1.5 CD
% NN
. .

Volume NN
totaled VBD
173.5 CD
million CD
shares NNS
, ,
30 CD
% NN
above IN
this DT
year NN
's POS
average JJ
daily JJ
turnover NN
on IN
Nasdaq NNP
. .

Among IN
broader JJR
Nasdaq NNP
industry NN
groups NNS
, ,
the DT
utility NN
index NN
gained VBD
18.11 CD
to TO
761.38 CD
. .

The DT
transportation NN
and CC
insurance NN
sectors NNS
each DT
posted VBD
gains NNS
of IN
8.59 CD
, ,
with IN
the DT
transports NNS
finishing VBG
at IN
486.74 CD
and CC
the DT
insurers NNS
at IN
537.91 CD
. .

The DT
Nasdaq NNP
industrial JJ
index NN
climbed VBD
8.17 CD
to TO
458.52 CD
, ,
and CC
the DT
`` ``
other JJ
finance NN
'' ''
index NN
, ,
made VBN
up IN
of IN
commercial JJ
banks NNS
and CC
real JJ
estate NN
and CC
brokerage NN
firms NNS
, ,
rose VBD
3.97 CD
to TO
545.96 CD
. .

The DT
index NN
of IN
smaller JJR
banks NNS
improved VBN
1.97 CD
. .

Of IN
the DT
4,346 CD
issues NNS
that WDT
changed VBD
hands NNS
, ,
1,435 CD
rose VBD
and CC
629 CD
fell VBD
. .

Jeremiah NNP
Mullins NNP
, ,
head NN
of IN
OTC NNP
trading NN
at IN
Dean NNP
Witter NNP
Reynolds NNP
, ,
said VBD
both DT
institutional JJ
and CC
retail JJ
investors NNS
were VBD
buying VBG
. .

But CC
there EX
was VBD
a DT
dearth NN
of IN
sellers NNS
, ,
traders NNS
said VBD
, ,
so RB
buyers NNS
had VBD
to TO
bid VB
prices NNS
up VB
to TO
entice VB
them PRP
. .

`` ``
There EX
's VBZ
no DT
pressure NN
on IN
OTC NNP
stocks NNS
at IN
this DT
point NN
, ,
'' ''
said VBD
Mr. NNP
Mullins NNP
, ,
who WP
said VBD
some DT
buyers NNS
are VBP
beginning VBG
to TO
shop VB
among IN
smaller JJR
OTC NNP
issues NNS
. .

Microsoft NNP
's POS
surge NN
followed VBD
a DT
report NN
this DT
week NN
of IN
substantially RB
improved VBN
earnings NNS
for IN
its PRP$
first JJ
quarter NN
, ,
ended VBN
Sept. NNP
30 CD
. .

The DT
stock NN
was VBD
trading VBG
at IN
69 CD
just RB
two CD
weeks NNS
ago RB
. .

Rick NNP
Sherlund NNP
, ,
a DT
Goldman NNP
Sachs NNP
analyst NN
, ,
has VBZ
raised VBN
his PRP$
earnings NNS
estimates NNS
for IN
the DT
company NN
twice RB
in IN
the DT
past JJ
two CD
weeks NNS
, ,
citing VBG
improved VBN
margins NNS
. .

After IN
the DT
earnings NNS
were VBD
announced VBN
, ,
he PRP
raised VBD
his PRP$
fiscal JJ
1990 CD
estimate NN
to TO
between IN
$ $
3.80 CD
and CC
$ $
4 CD
a DT
share NN
. .

Microsoft NNP
earned VBD
$ $
3.03 CD
a DT
share NN
in IN
fiscal JJ
1989 CD
. .

Among IN
other JJ
software NN
issues NNS
, ,
Autodesk NNP
jumped VBD
1 CD
1\/4 CD
to TO
42 CD
, ,
Lotus NNP
Development NNP
was VBD
unchanged JJ
at IN
32 CD
1\/2 CD
, ,
Novell NNP
jumped VBD
7\/8 CD
to TO
30 CD
3\/4 CD
, ,
Ashton-Tate NNP
gained VBD
1\/4 CD
to TO
10 CD
5\/8 CD
, ,
and CC
Oracle NNP
Systems NNP
rose VBD
3\/4 CD
to TO
25 CD
3\/4 CD
. .

Caere NNP
, ,
a DT
new JJ
software NN
issue NN
, ,
surged VBD
from IN
its PRP$
offering NN
price NN
of IN
12 CD
to TO
close VB
at IN
16 CD
1\/8 CD
. .

The DT
company NN
also RB
makes VBZ
optical JJ
character NN
recognition NN
equipment NN
. .

Caere NNP
was VBD
underwritten VBN
by IN
Alex NNP
. .
Brown NNP
& CC
Sons NNP
. .

Another DT
recently RB
offered VBN
Alex NNP
. .
Brown NNP
issue NN
, ,
Rally NNP
's POS
, ,
surged VBD
3 CD
1\/8 CD
to TO
23 CD
. .

The DT
operator NN
of IN
fast-food NN
restaurants NNS
, ,
whose WP$
shares NNS
began VBD
trading NN
last JJ
Friday NNP
, ,
climbed VBD
3 CD
1\/8 CD
to TO
23 CD
on IN
944,000 CD
shares NNS
. .

Its PRP$
1.7 CD
million-share JJ
offering NN
was VBD
priced VBN
at IN
15 CD
. .

Valley NNP
National NNP
's POS
slide NN
of IN
5 NN
3\/4 CD
points NNS
to TO
18 CD
1\/2 CD
on IN
4.2 CD
million CD
shares NNS
followed VBD
its PRP$
report NN
late JJ
Wednesday NNP
of IN
a DT
$ $
72.2 CD
million CD
third-quarter JJ
loss NN
. .

In IN
the DT
1988 CD
quarter NN
, ,
the DT
Phoenix NNP
, ,
Ariz. NNP
, ,
commercial JJ
banking NN
concern NN
earned VBD
$ $
18.7 CD
million CD
. .

Valley NNP
National NNP
said VBD
its PRP$
$ $
110 CD
million CD
provision NN
for IN
credit NN
losses NNS
and CC
$ $
11 CD
million CD
provision NN
for IN
other JJ
real JJ
estate NN
owned VBN
is VBZ
related VBN
to TO
weakness NN
in IN
the DT
Arizona NNP
real JJ
estate NN
market NN
. .

Additionally RB
, ,
Moody NNP
's POS
Investors NNP
Service NNP
said VBD
it PRP
downgraded VBD
Valley NNP
National NNP
's POS
senior JJ
debt NN
and CC
confirmed VBD
the DT
company NN
's POS
commercial JJ
paper NN
rating NN
of IN
`` ``
not RB
prime JJ
. .
'' ''

A DT
new JJ
issue NN
, ,
Exabyte NNP
, ,
surged VBD
2 CD
1\/8 CD
from IN
its PRP$
initial JJ
offering NN
price NN
to TO
close VB
at IN
12 CD
1\/8 CD
. .

The DT
offering NN
was VBD
for IN
about IN
2.8 CD
million CD
shares NNS
of IN
the DT
data NNS
storage NN
equipment NN
maker NN
; :
more JJR
than IN
2.2 CD
million CD
shares NNS
changed VBD
hands NNS
after IN
trading NN
began VBD
. .

Dell NNP
Computer NNP
dropped VBD
7\/8 CD
to TO
6 CD
. .

The DT
company NN
said VBD
earnings NNS
for IN
the DT
year NN
ending VBG
Jan. NNP
28 CD
, ,
1990 CD
, ,
are VBP
expected VBN
to TO
be VB
25 CD
to TO
35 CD
cents NNS
a DT
share NN
, ,
compared VBN
with IN
a DT
previous JJ
estimate NN
of IN
50 CD
to TO
60 CD
cents NNS
a DT
share NN
. .

Nutmeg NNP
Industries NNPS
lost VBD
1 CD
3\/4 CD
to TO
14 CD
. .

Raymond NNP
James NNP
& CC
Associates NNPS
in IN
St. NNP
Petersburg NNP
, ,
Fla. NNP
, ,
lowered VBD
its PRP$
third-quarter JJ
earnings NNS
estimate NN
for IN
the DT
company NN
, ,
according VBG
to TO
Dow NNP
Jones NNP
Professional NNP
Investor NNP
Report NNP
. .

A.P. NNP
Green NNP
Industries NNPS
advanced VBD
1 CD
5\/8 CD
to TO
36 CD
1\/8 CD
. .

East NNP
Rock NNP
Partners NNPS
, ,
which WDT
has VBZ
indicated VBN
it PRP
might MD
make VB
a DT
bid NN
for IN
the DT
company NN
, ,
said VBD
A.P. NNP
Green NNP
, ,
a DT
refractory JJ
products NNS
maker NN
, ,
told VBD
the DT
partnership NN
it PRP
is VBZ
n't RB
for IN
sale NN
. .

Row NNP
21 CD
of IN
Section NN
9 CD
of IN
the DT
Upper NNP
Reserved NNP
at IN
Candlestick NNP
Park NNP
is VBZ
a DT
lofty JJ
perch NN
, ,
only RB
a DT
few JJ
steps NNS
from IN
the DT
very JJ
top NN
of IN
the DT
stands NNS
. .

From IN
my PRP$
orange JJ
seat NN
, ,
I PRP
looked VBD
over IN
the DT
first-base JJ
line NN
and CC
the DT
new-mown JJ
ball NN
field NN
in IN
the DT
warm JJ
sun NN
of IN
the DT
last JJ
few JJ
minutes NNS
before IN
what WP
was VBD
to TO
have VB
been VBN
the DT
third JJ
game NN
of IN
the DT
World NNP
Series NNP
. .

It PRP
was VBD
five CD
in IN
the DT
afternoon NN
, ,
but CC
that DT
was VBD
Pacific NNP
time NN
. .

Back RB
in IN
New NNP
York NNP
the DT
work NN
day NN
was VBD
already RB
over IN
, ,
so IN
I PRP
did VBD
n't RB
have VB
to TO
feel VB
guilty JJ
. .

Even RB
still RB
, ,
I PRP
did VBD
feel VB
self-indulgent JJ
, ,
and CC
I PRP
could MD
n't RB
help VB
remembering VBG
my PRP$
father NN
's POS
contempt NN
for IN
a DT
rich JJ
medical JJ
colleague NN
who WP
would MD
go VB
to TO
watch VB
the DT
Tigers NNP
on IN
summer NN
afternoons NNS
. .

This DT
ballpark NN
, ,
the DT
Stick NNP
, ,
was VBD
not RB
a DT
classic JJ
baseball NN
stadium NN
-- :
too RB
symmetrical JJ
, ,
too RB
much JJ
bald JJ
concrete NN
. .

And CC
it PRP
did VBD
n't RB
have VB
the DT
crowded VBN
wild JJ
intimacy NN
of IN
Yankee NNP
Stadium NNP
. .

But CC
I PRP
liked VBD
the DT
easy JJ
friendliness NN
of IN
the DT
people NNS
around IN
me PRP
, ,
liked VBD
it PRP
that IN
they PRP
'd MD
brought VBN
their PRP$
children NNS
, ,
found VBD
it PRP
charming JJ
that IN
, ,
true JJ
citizens NNS
of IN
the DT
state NN
of IN
the DT
future NN
, ,
they PRP
had VBD
brought VBN
so RB
many JJ
TVs NNS
and CC
radios NNS
to TO
stay VB
in IN
touch NN
with IN
electroreality NN
at IN
a DT
live JJ
event NN
. .

Maybe RB
it PRP
was VBD
their PRP$
peculiar JJ
sense NN
of IN
history NN
. .

The DT
broadcasters NNS
were VBD
, ,
after IN
all DT
, ,
documenting VBG
the DT
game NN
, ,
ratifying VBG
its PRP$
occurrence NN
for IN
millions NNS
outside IN
the DT
Stick NNP
. .

Why WRB
not RB
watch VB
or CC
hear VB
your PRP$
experience NN
historicized VBN
while IN
you PRP
were VBD
living VBG
it PRP
? .

The DT
day NN
was VBD
saturated VBN
with IN
the DT
weight NN
of IN
its PRP$
own JJ
impending JJ
history NN
. .

Long JJ
lines NNS
of IN
people NNS
waited VBD
to TO
buy VB
special JJ
souvenir NN
World NNP
Series NNP
postcards NNS
with IN
official JJ
postmarks NNS
. .

Thousands NNS
of IN
us PRP
had VBD
paid VBN
$ $
5 NN
for IN
the DT
official JJ
souvenir NN
book NN
with IN
its PRP$
historical JJ
essays NNS
on IN
Series NNP
trivia NNS
, ,
its PRP$
historical JJ
photographs NNS
of IN
great JJ
moments NNS
in IN
Series NNP
past JJ
, ,
and CC
its PRP$
instructions NNS
, ,
in IN
English NNP
and CC
Spanish JJ
, ,
for IN
filling VBG
in IN
the DT
scorecard NN
. .

Pitcher NN
= SYM
lanzador FW
. .

Homerun NN
= SYM
jonron FW
. .

Players NNS
ran VBD
out IN
on IN
the DT
field NN
way NN
below IN
, ,
and CC
the DT
stands NNS
began VBD
to TO
reverberate VB
. .

It PRP
must MD
be VB
a DT
local JJ
custom NN
, ,
I PRP
thought VBD
, ,
stamping VBG
feet NNS
to TO
welcome VB
the DT
team NN
. .

But CC
then RB
the DT
noise NN
turned VBD
into IN
a DT
roar NN
. .

And CC
no DT
one CD
was VBD
shouting VBG
. .

No DT
one CD
around IN
me PRP
was VBD
saying VBG
anything NN
. .

Because IN
we PRP
all DT
were VBD
busy JJ
riding VBG
a DT
wave NN
. .

Sixty CD
thousand CD
surfers NNS
atop IN
a DT
concrete JJ
wall NN
, ,
waiting VBG
for IN
the DT
wipeout NN
. .

Only RB
at IN
the DT
moment NN
of IN
maximum JJ
roll NN
did VBD
I PRP
grasp VBP
what WP
was VBD
going VBG
on RB
. .

Then RB
I PRP
remembered VBD
the DT
quake NN
of IN
'71 CD
, ,
which WDT
I PRP
experienced VBD
in IN
Santa NNP
Barbara NNP
in IN
a DT
second-story JJ
motel NN
room NN
. .

When WRB
the DT
swaying NN
of IN
the DT
building NN
woke VBD
me PRP
up IN
, ,
I PRP
reasoned VBD
that IN
a DT
-RRB- )
I PRP
was VBD
in IN
Southern NNP
California NNP
; :
b NN
-RRB- )
the DT
bed NN
was VBD
moving VBG
; :
c NN
-RRB- )
it PRP
must MD
be VB
a DT
Magic NNP
Fingers NNP
bed NN
that WDT
had VBD
short-circuited VBN
. .

Then RB
I PRP
noticed VBD
the DT
overhead JJ
light NN
was VBD
swaying VBG
on IN
its PRP$
cord NN
and CC
realized VBD
what WP
had VBD
happened VBN
. .

What WP
should MD
I PRP
do VB
? .

Get VB
out IN
of IN
the DT
possibly RB
collapsing VBG
building NN
to TO
the DT
parking NN
lot NN
. .

But CC
the DT
lot NN
might MD
split VB
into IN
crevasses NNS
, ,
so IN
I PRP
had VBD
better JJR
stand VB
on IN
my PRP$
car NN
, ,
which WDT
probably RB
was VBD
wider JJR
than IN
the DT
average JJ
crevasse NN
. .

Fortunately RB
, ,
the DT
quake NN
was VBD
over IN
before IN
I PRP
managed VBD
to TO
run VB
out IN
and CC
stand NN
naked JJ
on IN
the DT
hood NN
. .

At IN
the DT
Stick NNP
, ,
while IN
the DT
world NN
shook VBD
, ,
I PRP
thought VBD
of IN
that DT
morning NN
and CC
then RB
it PRP
struck VBD
me PRP
that IN
this DT
time NN
was VBD
different JJ
. .

If IN
I PRP
survived VBD
, ,
I PRP
would MD
have VB
achieved VBN
every DT
journalist NN
's POS
highest JJS
wish VBP
. .

I PRP
was VBD
an DT
eyewitness NN
of IN
the DT
most RBS
newsworthy JJ
event NN
on IN
the DT
planet NN
at IN
that DT
moment NN
. .

What WP
was VBD
my PRP$
angle NN
? .

How WRB
would MD
I PRP
file VB
? .

All DT
these DT
thoughts NNS
raced VBD
through IN
my PRP$
head NN
in IN
the DT
15 CD
seconds NNS
of IN
the DT
earthquake NN
's POS
actual JJ
duration NN
. .

The DT
rest NN
is VBZ
, ,
of IN
course NN
, ,
history NN
. .

The DT
Stick NNP
did VBD
n't RB
fall VB
. .

The DT
real JJ
tragedies NNS
occurred VBD
elsewhere RB
, ,
as IN
we PRP
soon RB
found VBD
out RB
. .

But CC
for IN
a DT
few JJ
minutes NNS
there EX
, ,
relief NN
abounded VBD
. .

A DT
young JJ
mother NN
found VBD
her PRP$
boy NN
, ,
who WP
had VBD
been VBN
out IN
buying VBG
a DT
hotdog NN
. .

The DT
wall NN
behind IN
me PRP
was VBD
slightly RB
deformed JJ
, ,
but CC
the DT
center NN
had VBD
held VBN
. .

And CC
most RBS
of IN
us PRP
waited VBD
for IN
a DT
while NN
for IN
the DT
game NN
to TO
start VB
. .

Then RB
we PRP
began VBD
to TO
file VB
out IN
, ,
to TO
wait VB
safely RB
on IN
terra FW
firma FW
for IN
the DT
opening NN
pitch NN
. .

It PRP
was VBD
during IN
the DT
quiet JJ
exodus NN
down RP
the DT
pristine JJ
concrete JJ
ramps NNS
of IN
the DT
Stick NNP
that IN
I PRP
really RB
understood VBD
the DT
point NN
of IN
all PDT
those DT
Walkmen NNP
and CC
Watchmen NNP
. .

The DT
crowd NN
moved VBD
in IN
clumps NNS
, ,
clumps NNS
magnetized VBN
around IN
an DT
electronic JJ
nucleus NN
. .

In IN
this DT
way NN
, ,
while IN
the DT
Stick NNP
itself PRP
was VBD
blacked VBN
out IN
, ,
we PRP
kept VBD
up VB
to TO
date VB
on IN
events NNS
. .

Within IN
15 CD
minutes NNS
of IN
the DT
quake NN
itself PRP
, ,
I PRP
was VBD
able JJ
to TO
see VB
pictures NNS
of IN
the DT
collapsed VBN
section NN
of IN
the DT
Bay NNP
Bridge NNP
. .

Increasingly RB
accurate JJ
estimates NNS
of IN
the DT
severity NN
of IN
the DT
quake NN
became VBD
available JJ
before IN
I PRP
got VBD
to TO
my PRP$
car NN
. .

And CC
by IN
then RB
, ,
expensive JJ
automobile NN
sound NN
systems NNS
were VBD
keeping VBG
the DT
gridlocked VBN
parking NN
lot NN
by IN
the DT
bay NN
informed VBN
about IN
the DT
fire NN
causing VBG
the DT
big JJ
black JJ
plume NN
of IN
smoke NN
we PRP
saw VBD
on IN
the DT
northern JJ
horizon NN
. .

Darkness NN
fell VBD
. .

But CC
the DT
broadcasts NNS
continued VBD
through IN
the DT
blacked-out JJ
night NN
, ,
with IN
pictures NNS
of IN
the DT
sandwiched VBN
highway NN
ganglion NN
in IN
Oakland NNP
and CC
firefighting NN
in IN
the DT
Marina NNP
district NN
. .

By IN
then RB
, ,
our PRP$
little JJ
sand NN
village NN
of IN
cars NNS
had VBD
been VBN
linked VBN
with IN
a DT
global JJ
village NN
of IN
listeners NNS
and CC
viewers NNS
. .

Everyone NN
at IN
the DT
Stick NNP
that DT
day NN
had VBD
started VBN
out IN
as IN
a DT
spectator NN
and CC
ended VBD
up IN
as IN
a DT
participant NN
. .
In IN
fact NN
, ,
the DT
entire JJ
population NN
of IN
the DT
Bay NNP
Area NNP
had VBD
ended VBN
up IN
with IN
this DT
dual JJ
role NN
of IN
actor NN
and CC
audience NN
. .

The DT
reporters NNS
were VBD
victims NNS
and CC
some DT
of IN
the DT
victims NNS
turned VBD
into IN
unofficial JJ
reporters NNS
. .

The DT
outstanding JJ
example NN
of IN
this DT
was VBD
the DT
motorist NN
on IN
the DT
Bay NNP
Bridge NNP
who WP
had VBD
the DT
presence NN
of IN
mind NN
to TO
take VB
out RP
a DT
video NN
camera NN
at IN
the DT
absolutely RB
crucial JJ
moment NN
and CC
record VB
the DT
car NN
in IN
front NN
as IN
it PRP
fell VBD
into IN
the DT
gap NN
in IN
the DT
roadway NN
. .

The DT
tape NN
was VBD
on IN
tv NN
before IN
the DT
night NN
was VBD
out RB
. .

Marshall NNP
McLuhan NNP
, ,
you PRP
should MD
have VB
been VBN
there RB
at IN
that DT
hour NN
. .

Investors NNS
who WP
received VBD
Shearson NNP
Lehman NNP
Hutton NNP
Inc. NNP
's POS
latest JJS
stock NN
commentary NN
may MD
be VB
left VBN
with IN
blank JJ
expressions NNS
. .

The DT
first JJ
10 CD
pages NNS
of IN
the DT
76-page NNP
Weekly NNP
Portfolio NNP
Perspective NNP
are VBP
completely RB
blank JJ
, ,
except IN
for IN
the DT
page NN
numbers NNS
. .

Rather RB
than IN
printing NN
devils NNS
, ,
Shearson NNP
puts VBZ
all PDT
the DT
blame NN
on IN
the DT
unpredictable JJ
stock NN
market NN
. .

The DT
plunge NN
made VBN
Shearson NNP
's POS
market NN
commentary NN
instantly RB
out IN
of IN
date NN
. .

In IN
fact NN
, ,
last JJ
Friday NNP
's POS
190.58-point JJ
tumble NN
in IN
the DT
stock NN
market NN
caught VBD
many JJ
people NNS
and CC
businesses NNS
by IN
surprise NN
, ,
not RB
the DT
least JJS
of IN
them PRP
brokerage NN
firms NNS
such JJ
as IN
Shearson NNP
that DT
print VB
their PRP$
weekly JJ
market NN
commentaries NNS
on IN
Fridays NNPS
for IN
dissemination NN
the DT
following VBG
week NN
. .

Shearson NNP
, ,
a DT
62%-owned JJ
unit NN
of IN
American NNP
Express NNP
Co. NNP
, ,
did VBD
n't RB
have VB
enough JJ
time NN
to TO
update VB
its PRP$
market NN
commentary NN
so RB
, ,
`` ``
We PRP
decided VBD
to TO
kill VB
our PRP$
strategy NN
pieces NNS
, ,
'' ''
says VBZ
Jack NNP
Rivkin NNP
, ,
the DT
head NN
of IN
Shearson NNP
's POS
research NN
department NN
. .

The DT
first JJ
thought VBD
some DT
investors NNS
had VBD
was VBD
that IN
a DT
red-faced JJ
Shearson NNP
must MD
have VB
been VBN
wildly RB
bullish JJ
on IN
stocks NNS
in IN
its PRP$
original JJ
commentary NN
, ,
and CC
that DT
's VBZ
why WRB
it PRP
purged VBD
its PRP$
pages NNS
. .

Investors NNS
recalled VBD
that IN
Shearson NNP
last JJ
week NN
had VBD
been VBN
advising VBG
that IN
`` ``
the DT
market NN
is VBZ
still RB
exhibiting VBG
all PDT
the DT
signs NNS
of IN
a DT
further JJ
advance NN
. .
'' ''

Many JJ
other JJ
brokerage NN
firms NNS
had VBD
similarly RB
bullish JJ
views NNS
. .

But CC
Mr. NNP
Rivkin NNP
insists VBZ
that IN
the DT
10 CD
pages NNS
were VBD
n't RB
pulled VBN
because IN
they PRP
were VBD
too RB
bullish JJ
. .

Instead RB
, ,
he PRP
says VBZ
, ,
`` ``
they PRP
were VBD
cautious JJ
, ,
and CC
that DT
was VBD
n't RB
the DT
message NN
we PRP
wanted VBD
to TO
deliver VB
'' ''
on IN
Monday NNP
. .

As IN
Mr. NNP
Rivkin NNP
explains VBZ
it PRP
, ,
`` ``
We PRP
were VBD
raising VBG
some DT
caution NN
flags NNS
about IN
rate NN
rises VBZ
in IN
Europe NNP
and CC
concerns NNS
about IN
the DT
LBO NNP
market NN
. .

And CC
by IN
late JJ
Friday NNP
afternoon NN
, ,
actually RB
after IN
the DT
close NN
, ,
we PRP
decided VBD
that WDT
was VBD
the DT
wrong JJ
tone NN
to TO
take VB
. .

With IN
the DT
market NN
down RB
, ,
we PRP
wanted VBD
to TO
tell VB
people NNS
to TO
put VB
their PRP$
orders NNS
in IN
on IN
the DT
opening NN
. .
'' ''

Both DT
before IN
and CC
after IN
the DT
Friday NNP
plunge NN
, ,
Shearson NNP
has VBZ
maintained VBN
a DT
recommended VBN
portfolio NN
weighting NN
of IN
65 CD
% NN
stocks NNS
, ,
20 CD
% NN
bonds NNS
and CC
15 CD
% NN
cash NN
. .

Sheldon NNP
B. NNP
Lubar NNP
, ,
chairman NN
of IN
Lubar NNP
& CC
Co. NNP
, ,
and CC
John NNP
L. NNP
Murray NNP
, ,
chairman NN
of IN
Universal NNP
Foods NNP
Corp. NNP
, ,
were VBD
elected VBN
to TO
the DT
board NN
of IN
this DT
engine NN
maker NN
. .

They PRP
succeed VBP
Robert NNP
W. NNP
Kasten NNP
and CC
John NNP
R. NNP
Parker NNP
, ,
who WP
reached VBD
the DT
mandatory JJ
retirement NN
age NN
. .

China NNP
's POS
slide NN
toward IN
recession NN
is VBZ
beginning VBG
to TO
look VB
like IN
a DT
free JJ
fall NN
. .

In IN
a DT
report NN
on IN
China NNP
's POS
foundering VBG
economy NN
, ,
the DT
official NN
State NNP
Statistical NNP
Bureau NNP
disclosed VBD
that IN
industrial JJ
output NN
last JJ
month NN
rose VBD
0.9 CD
% NN
from IN
a DT
year NN
earlier RBR
- :
the DT
lowest JJS
growth NN
rate NN
in IN
a DT
decade NN
for IN
September NNP
. .

Retail JJ
sales NNS
are VBP
plummeting VBG
, ,
while IN
consumer NN
prices NNS
still RB
are VBP
rising VBG
. .

Chinese JJ
and CC
foreign JJ
economists NNS
now RB
predict VBP
prolonged VBN
stagflation NN
: :
low JJ
growth NN
and CC
high JJ
inflation NN
. .

`` ``
The DT
economy NN
is VBZ
crashing VBG
hard JJ
, ,
'' ''
says VBZ
an DT
Asian JJ
economist NN
in IN
Beijing NNP
. .

`` ``
The DT
slowdown NN
is VBZ
taking VBG
hold VB
a DT
lot NN
more RBR
quickly RB
and CC
devastatingly RB
than IN
anyone NN
had VBD
expected VBN
. .
'' ''

A DT
lengthy JJ
recession NN
, ,
if IN
it PRP
materializes VBZ
, ,
would MD
drain VB
state NN
coffers NNS
and CC
create VB
severe JJ
hardships NNS
for IN
urban JJ
workers NNS
. .

Experts NNS
predict VBP
the DT
coming VBG
year NN
will MD
be VB
characterized VBN
by IN
flat JJ
or CC
negative JJ
industrial JJ
growth NN
, ,
rising VBG
unemployment NN
and CC
a DT
widening VBG
budget NN
deficit NN
. .

Unless IN
the DT
government NN
suddenly RB
reverses VBZ
course NN
, ,
wages NNS
for IN
most RBS
workers NNS
wo MD
n't RB
keep VB
pace NN
with IN
inflation NN
, ,
creating VBG
a DT
potential JJ
source NN
of IN
urban JJ
unrest NN
. .

The DT
economy NN
's POS
slowdown NN
is VBZ
due JJ
only RB
partly RB
to TO
the DT
austerity NN
program NN
launched VBN
in IN
September NNP
1988 CD
to TO
cool VB
an DT
overheated VBN
economy NN
and CC
tame JJ
inflation NN
. .

-LRB- (
Industrial NNP
output NN
surged VBD
21 CD
% NN
in IN
1988 CD
, ,
while IN
inflation NN
peaked VBD
last JJ
February NNP
at IN
nearly RB
30 CD
% NN
. .
-RRB- )
The DT
slowdown NN
also RB
results VBZ
from IN
chronic JJ
energy NN
and CC
raw-materials NNS
shortages NNS
that WDT
force VBP
many JJ
factories NNS
to TO
restrict VB
operations NNS
to TO
two CD
or CC
three CD
days NNS
a DT
week NN
. .

In IN
Western JJ
, ,
market-driven JJ
countries NNS
, ,
recessions NNS
often RB
have VBP
a DT
bright JJ
side NN
: :
prodding VBG
the DT
economy NN
to TO
greater JJR
efficiency NN
. .

In IN
China NNP
, ,
however RB
, ,
there EX
is VBZ
n't RB
likely JJ
to TO
be VB
any DT
silver NN
lining VBG
because IN
the DT
economy NN
remains VBZ
guided VBN
primarily RB
by IN
the DT
state NN
. .

Instead RB
, ,
China NNP
is VBZ
likely JJ
to TO
shell VB
out RP
ever-greater JJ
subsidies NNS
to TO
its PRP$
coddled VBN
state-run JJ
enterprises NNS
, ,
which WDT
ate VBD
up IN
$ $
18 CD
billion CD
in IN
bailouts NNS
last JJ
year NN
. .

Nor CC
are VBP
any DT
of IN
these DT
inefficient JJ
monoliths NNS
likely JJ
to TO
be VB
allowed VBN
to TO
go VB
bankrupt JJ
. .

Rather RB
, ,
the DT
brunt NN
of IN
the DT
slowdown NN
will MD
be VB
felt VBN
in IN
the DT
fast-growing JJ
private JJ
and CC
semi-private JJ
`` ``
township NN
'' ''
enterprises NNS
, ,
which WDT
have VBP
fallen VBN
into IN
disfavor NN
as IN
China NNP
's POS
leaders NNS
re-emphasize VBP
an DT
orthodox JJ
Marxist JJ
preference NN
for IN
public JJ
ownership NN
. .

`` ``
When WRB
the DT
going VBG
gets VBZ
rough JJ
, ,
China NNP
penalizes VBZ
the DT
efficient JJ
and CC
rewards VBZ
the DT
incompetent JJ
, ,
'' ''
says VBZ
a DT
Western JJ
economist NN
. .

Reports NNS
of IN
an DT
economy NN
near VB
recession NN
come VB
as IN
officials NNS
prepare VBP
a DT
major JJ
Communist NNP
Party NNP
plenum NN
for IN
sometime RB
in IN
the DT
next JJ
few JJ
weeks NNS
. .

The DT
meeting NN
is VBZ
expected VBN
to TO
call VB
for IN
heightened VBN
austerity NN
for IN
two CD
years NNS
. .

But CC
with IN
industrial JJ
growth NN
stagnant JJ
and CC
inflation NN
showing VBG
signs NNS
of IN
easing VBG
, ,
some DT
voices NNS
may MD
call VB
for IN
measures NNS
to TO
pump VB
new JJ
life NN
into IN
the DT
economy NN
. .

Some DT
analysts NNS
believe VBP
China NNP
soon RB
will MD
begin VB
relaxing VBG
economic JJ
controls NNS
, ,
particularly RB
by IN
loosening VBG
credit NN
. .

That DT
would MD
benefit VB
Chinese JJ
enterprises NNS
as RB
well RB
as IN
Sino-foreign JJ
joint JJ
ventures NNS
, ,
both DT
of IN
which WDT
have VBP
been VBN
plagued VBN
by IN
shortages NNS
of IN
working VBG
capital NN
. .

A DT
dangerous JJ
buildup NN
this DT
year NN
of IN
billions NNS
of IN
dollars NNS
in IN
inter-company JJ
debts NNS
threatens VBZ
, ,
if IN
unchecked JJ
, ,
to TO
bring VB
the DT
economy NN
to TO
a DT
collapse NN
. .

One CD
sign NN
of IN
a DT
possible JJ
easing NN
of IN
credit NN
policy NN
was VBD
the DT
decision NN
this DT
week NN
of IN
People NNS
's POS
Bank NNP
of IN
China NNP
, ,
the DT
central JJ
bank NN
, ,
to TO
allocate VB
$ $
5.4 CD
billion CD
in IN
short-term JJ
loans NNS
to TO
pay VB
farmers NNS
for IN
the DT
autumn NN
harvest NN
, ,
the DT
official NN
China NNP
Daily NNP
reported VBD
. .

But CC
while IN
pumping VBG
more JJR
money NN
into IN
the DT
economy NN
would MD
bring VB
relief NN
to TO
many VB
industries NNS
, ,
it PRP
also RB
runs VBZ
the DT
risk NN
of IN
triggering VBG
another DT
period NN
of IN
runaway JJ
growth NN
and CC
steep JJ
inflation NN
. .

The DT
cycle NN
has VBZ
been VBN
repeated VBN
several JJ
times NNS
since IN
China NNP
began VBD
reforming VBG
its PRP$
planned VBN
economy NN
in IN
1979 CD
. .

And CC
, ,
because IN
China NNP
's POS
leaders NNS
have VBP
abandoned VBN
plans NNS
to TO
drastically RB
reform NN
the DT
economy NN
, ,
it PRP
is VBZ
likely JJ
to TO
continue VB
, ,
analysts NNS
say VBP
. .

The DT
statistical JJ
bureau NN
's POS
report NN
, ,
cited VBD
in IN
China NNP
Daily NNP
, ,
notes VBZ
that IN
industrial JJ
output NN
in IN
September NNP
totaled VBD
$ $
29.4 CD
billion CD
, ,
a DT
rise NN
of IN
just RB
0.9 CD
% NN
from IN
a DT
year NN
earlier RBR
. .

Output NN
declined VBD
in IN
several JJ
provinces NNS
, ,
including VBG
Jiangsu NNP
and CC
Zhejiang NNP
, ,
two CD
key JJ
coastal JJ
areas NNS
, ,
and CC
Sichuan NNP
, ,
the DT
nation NN
's POS
agricultural JJ
breadbasket NN
. .

Production NN
in IN
Shanghai NNP
, ,
China NNP
's POS
industrial JJ
powerhouse NN
and CC
the DT
largest JJS
source NN
of IN
tax NN
revenue NN
for IN
the DT
central JJ
government NN
, ,
fell VBD
1.8 CD
% NN
for IN
the DT
month NN
. .

Nationwide NNP
, ,
output NN
of IN
light NN
industrial JJ
products NNS
declined VBD
1.8 CD
% NN
-- :
`` ``
the DT
first JJ
decline NN
in IN
10 CD
years NNS
, ,
'' ''
a DT
bureau NN
spokesman NN
told VBD
China NNP
Daily NNP
. .

In IN
an DT
unusually RB
direct JJ
statement NN
, ,
the DT
bureau NN
spokesman NN
recommended VBD
that IN
state NN
banks NNS
extend VBP
more JJR
credit NN
to TO
shopkeepers NNS
so RB
that IN
they PRP
can MD
purchase VB
manufacturers NNS
' POS
goods NNS
. .

`` ``
This DT
will MD
prevent VB
a DT
slide NN
in IN
industrial JJ
production NN
, ,
which WDT
will MD
otherwise RB
cause VB
new JJ
panic NN
buyings NNS
, ,
'' ''
the DT
spokesman NN
said VBD
. .

The DT
1986 CD
tax NN
overhaul NN
, ,
the DT
biggest JJS
achievement NN
of IN
President NNP
Reagan NNP
's POS
second JJ
term NN
, ,
is VBZ
beginning VBG
to TO
fall VB
apart RB
, ,
and CC
interest NN
groups NNS
are VBP
lining VBG
up IN
for IN
tax NN
goodies NNS
all DT
over IN
Capitol NNP
Hill NNP
. .

Real-estate NN
executives NNS
are VBP
lobbying VBG
to TO
ease VB
anti-tax-shelter JJ
rules NNS
. .
Charitable JJ
groups NNS
are VBP
trying VBG
to TO
reinstate VB
the DT
write-off NN
for IN
contributions NNS
made VBN
by IN
individuals NNS
who WP
do VBP
n't RB
itemize VB
their PRP$
deductions NNS
. .

Big JJ
auction NN
houses NNS
want VBP
to TO
make VB
collectibles NNS
eligible JJ
for IN
lower JJR
capital-gains NNS
taxes NNS
. .

And CC
heavy-industry NN
lobbyists NNS
are VBP
quietly RB
discussing VBG
the DT
possibility NN
of IN
reinstating VBG
the DT
investment NN
tax NN
credit NN
. .

`` ``
Everything NN
is VBZ
up IN
for IN
grabs NNS
, ,
'' ''
says VBZ
Theodore NNP
Groom NNP
, ,
a DT
lobbyist NN
for IN
mutual JJ
life-insurance NN
companies NNS
. .

Adds VBZ
Robert NNP
Juliano NNP
, ,
the DT
head NN
lobbyist NN
for IN
a DT
variety NN
of IN
interests NNS
that WDT
want VBP
to TO
protect VB
the DT
tax NN
deduction NN
for IN
travel NN
and CC
entertainment NN
expenses NNS
: :
`` ``
It PRP
appears VBZ
as IN
though IN
the DT
whole JJ
thing NN
is VBZ
wide JJ
open JJ
again RB
. .
'' ''

The DT
catalyst NN
has VBZ
been VBN
the DT
congressional JJ
move NN
to TO
restore VB
preferential JJ
tax NN
treatment NN
for IN
capital NN
gains NNS
, ,
an DT
effort NN
that WDT
is VBZ
likely JJ
to TO
succeed VB
in IN
this DT
Congress NNP
. .

Other JJ
fundamental JJ
`` ``
reforms NNS
'' ''
of IN
the DT
1986 CD
act NN
have VBP
been VBN
threatened VBN
as IN
well RB
. .

The DT
House NNP
seriously RB
considered VBD
raising VBG
the DT
top JJ
tax NN
rate NN
paid VBN
by IN
individuals NNS
with IN
the DT
highest JJS
incomes NNS
. .

The DT
Senate NNP
Finance NNP
Committee NNP
voted VBD
to TO
expand VB
the DT
deduction NN
for IN
individual JJ
retirement NN
accounts NNS
, ,
and CC
also RB
to TO
bring VB
back JJ
income NN
averaging VBG
for IN
farmers NNS
, ,
a DT
tax NN
preference NN
that WDT
allows VBZ
income NN
to TO
be VB
spread VBN
out IN
over IN
several JJ
years NNS
. .

As IN
part NN
of IN
the DT
same JJ
bill NN
, ,
the DT
finance NN
panel NN
also RB
voted VBD
in IN
favor NN
of IN
billions NNS
of IN
dollars NNS
in IN
narrow JJ
tax NN
breaks NNS
for IN
individuals NNS
and CC
corporations NNS
, ,
in IN
what WP
committee NN
member NN
Sen. NNP
David NNP
Pryor NNP
-LRB- (
D. NNP
, ,
Ark NNP
. .
-RRB- )
calls VBZ
a DT
`` ``
feeding VBG
frenzy NN
'' ''
of IN
special-interest JJ
legislating NN
. .

The DT
beneficiaries NNS
would MD
range VB
from IN
pineapple NN
growers NNS
to TO
rich JJ
grandparents NNS
to TO
tuxedo-rental JJ
shops NNS
. .

To TO
be VB
sure JJ
, ,
the DT
full JJ
Senate NNP
, ,
facing VBG
a DT
fast-approaching JJ
budget NN
deadline NN
, ,
last JJ
Friday NNP
stripped VBD
away RB
all DT
of IN
the DT
tax NN
breaks NNS
that WDT
were VBD
contained VBN
in IN
the DT
Finance NNP
Committee NNP
bill NN
. .

But CC
lawmakers NNS
of IN
both DT
parties NNS
agree VBP
that IN
the DT
streamlining VBG
was VBD
temporary JJ
. .

Other JJ
bills NNS
will MD
be VB
moving VBG
soon RB
that WDT
are VBP
expected VBN
to TO
carry VB
many NN
of IN
the DT
tax NN
cuts NNS
, ,
including VBG
both DT
the DT
capital-gains NNS
and CC
IRA NNP
provisions NNS
. .

`` ``
There EX
is VBZ
n't RB
any DT
doubt NN
that IN
the DT
thread NN
of IN
the DT
'86 CD
code NN
has VBZ
been VBN
given VBN
a DT
mighty JJ
tug NN
, ,
'' ''
says VBZ
Rep. NNP
Thomas NNP
Downey NNP
-LRB- (
D. NNP
, ,
N.Y NNP
. .
-RRB- )
. .

`` ``
You PRP
'll MD
see VB
the DT
annual JJ
unraveling NN
of IN
it PRP
. .
'' ''

`` ``
It PRP
's VBZ
back RB
to TO
tax-give-away JJ
time NN
for IN
the DT
select JJ
few NN
, ,
'' ''
says VBZ
Rep. NNP
William NNP
Gray NNP
of IN
Pennsylvania NNP
, ,
the DT
third-ranking JJ
Democrat NNP
in IN
the DT
House NNP
. .

Referring VBG
to TO
the DT
chairmen NNS
of IN
the DT
Senate NNP
and CC
House NNP
tax-writing JJ
committees NNS
, ,
he PRP
adds VBZ
, ,
`` ``
Next JJ
year NN
, ,
every DT
special-interest JJ
group NN
is VBZ
going VBG
to TO
be VB
there RB
knocking VBG
on IN
Lloyd NNP
Bentsen NNP
's POS
door NN
, ,
on IN
Danny NNP
Rostenkowski NNP
's POS
door NN
. .
'' ''

Many JJ
groups NNS
are VBP
n't RB
waiting VBG
that DT
long JJ
. .

Just RB
last JJ
week NN
, ,
a DT
House NNP
Ways NNPS
and CC
Means NNP
subcommittee NN
held VBD
a DT
lengthy JJ
meeting NN
to TO
hear VB
the DT
pleas NNS
of IN
individual JJ
cities NNS
, ,
companies NNS
and CC
interest NN
groups NNS
who WP
want VBP
to TO
open VB
their PRP$
own JJ
special JJ
loopholes NNS
. .

`` ``
It PRP
's VBZ
a DT
Swiss-cheese NN
factory NN
and CC
the DT
cheese NN
smells VBZ
pretty RB
good JJ
, ,
'' ''
commented VBD
one CD
veteran NN
lobbyist NN
who WP
was VBD
watching VBG
the DT
proceedings NNS
. .

Even JJ
lobbyists NNS
for IN
heavy JJ
industry NN
, ,
one CD
of IN
the DT
interests NNS
hit VBD
hardest JJS
in IN
the DT
1986 CD
bill NN
, ,
are VBP
encouraged VBN
. .

The DT
return NN
of IN
pro-investment JJ
tax NN
breaks NNS
such JJ
as IN
those DT
for JJ
capital NN
gains NNS
and CC
IRAs NNS
`` ``
creates VBZ
more JJR
of IN
a DT
mood NN
or CC
a DT
mindset NN
that WDT
is VBZ
helpful JJ
for IN
getting VBG
better JJR
depreciation NN
-LRB- (
write-offs NNS
-RRB- )
or CC
investment NN
credits NNS
, ,
'' ''
says VBZ
Paul NNP
Huard NNP
, ,
a DT
vice NN
president NN
for IN
the DT
National NNP
Association NNP
of IN
Manufacturers NNPS
. .

Corporate JJ
lobbyist NN
Charls NNP
Walker NNP
is VBZ
planning VBG
a DT
spring NN
conference NN
to TO
discuss VB
what WP
tax NN
changes NNS
to TO
make VB
to TO
improve VB
`` ``
competitiveness NN
. .
'' ''

In IN
reaction NN
to TO
proposed VBN
capital-gains NNS
legislation NN
, ,
groups NNS
are VBP
lobbying VBG
to TO
make VB
sure JJ
they PRP
are VBP
n't RB
left VBN
off IN
the DT
gravy NN
train NN
. .

Real-estate NN
interests NNS
, ,
for IN
example NN
, ,
are VBP
protesting VBG
an DT
omission NN
in IN
President NNP
Bush NNP
's POS
capital-gains NNS
proposal NN
: :
It PRP
does VBZ
n't RB
include VB
real-estate NN
gains NNS
. .

`` ``
If IN
there EX
is VBZ
going VBG
to TO
be VB
a DT
tax NN
scheme NN
that WDT
contemplates VBZ
lower JJR
treatment NN
of IN
capital NN
gains NNS
, ,
they PRP
certainly RB
want VBP
to TO
be VB
part NN
of IN
it PRP
, ,
'' ''
says VBZ
real-estate NN
lobbyist NN
Wayne NNP
Thevenot NNP
of IN
Concord NNP
Associates NNPS
. .

In IN
the DT
House-passed JJ
tax NN
bill NN
, ,
Mr. NNP
Thevenot NNP
got VBD
his PRP$
wish VBP
; :
real-estate NN
assets NNS
are VBP
included VBN
in IN
the DT
capital-gains NNS
provision NN
. .

But CC
Sotheby NNP
's POS
, ,
Christie NNP
's POS
and CC
the DT
National NNP
Association NNP
of IN
Antique NNP
Dealers NNS
are VBP
still RB
trying VBG
to TO
get VB
theirs PRP
. .

They PRP
have VBP
sent VBN
a DT
letter NN
to TO
congressional JJ
tax-writers NNS
asking VBG
that IN
gains NNS
from IN
the DT
sale NN
of IN
collectibles NNS
also RB
be VBP
given VBN
preferential JJ
treatment NN
. .

`` ``
Collectibles NNS
should MD
continue VB
to TO
be VB
recognized VBN
as IN
capital NN
assets NNS
, ,
'' ''
the DT
letter NN
states NNS
. .

All DT
of IN
this DT
talk NN
is VBZ
antithetical JJ
to TO
the DT
Tax NNP
Reform NNP
Act NNP
of IN
1986 CD
. .

In IN
exchange NN
for IN
dramatically RB
lower JJR
tax NN
rates NNS
, ,
the DT
framers NNS
of IN
that DT
legislation NN
sought VBD
to TO
eliminate VB
most RBS
of IN
the DT
exemptions NNS
, ,
deductions NNS
and CC
credits NNS
that WDT
gave VBD
some DT
taxpayers NNS
an DT
advantage NN
over IN
others NNS
. .

The DT
goal NN
was VBD
to TO
tax VB
people NNS
with IN
roughly RB
equivalent NN
incomes NNS
equally RB
, ,
and CC
to TO
eliminate VB
the DT
many JJ
shelters NNS
that WDT
allowed VBD
the DT
wealthy JJ
to TO
escape VB
taxes NNS
. .

Two CD
of IN
the DT
major JJ
ways NNS
that IN
tax-writers NNS
managed VBD
to TO
attain VB
these DT
ends NNS
were VBD
to TO
scrap VB
the DT
preferential JJ
treatment NN
of IN
capital NN
gains NNS
and CC
to TO
curtail VB
the DT
use NN
of IN
paper NN
losses NNS
, ,
also RB
known VBN
as IN
passive JJ
losses NNS
, ,
that WDT
made VBD
many JJ
tax NN
shelters NNS
possible JJ
. .

Many JJ
other JJ
tax NN
benefits NNS
also RB
were VBD
swept VBN
away RB
. .

This DT
year NN
Congress NNP
, ,
with IN
prodding VBG
from IN
President NNP
Bush NNP
, ,
has VBZ
been VBN
busy JJ
trying NN
to TO
put VB
many NN
of IN
these DT
same JJ
tax NN
preferences NNS
back RB
into IN
the DT
code NN
. .

It PRP
appears VBZ
likely JJ
that IN
, ,
this DT
year NN
or CC
next JJ
, ,
some DT
form NN
of IN
capital-gains NNS
preference NN
and CC
passive-loss JJ
restoration NN
will MD
be VB
enacted VBN
. .

Other JJ
tax NN
benefits NNS
probably RB
will MD
be VB
restored VBN
and CC
created VBN
. .

The DT
main JJ
obstacle NN
is VBZ
finding VBG
a DT
way NN
to TO
pay VB
for IN
them PRP
. .

`` ``
The DT
'86 CD
act NN
was VBD
a DT
fluke NN
. .

They PRP
wanted VBD
reform NN
and CC
they PRP
got VBD
a DT
revolution NN
, ,
'' ''
says VBZ
overhaul NN
advocate NN
Rep. NNP
Willis NNP
Gradison NNP
-LRB- (
R. NNP
, ,
Ohio NNP
-RRB- )
. .

So RB
, ,
is VBZ
the DT
tax NN
code NN
now RB
open JJ
game NN
again RB
? .

Mr. NNP
Juliano NNP
thinks VBZ
so RB
. .

One CD
recent JJ
Saturday NNP
morning NN
he PRP
stayed VBD
inside IN
the DT
Capitol NNP
monitoring VBG
tax-and-budget JJ
talks NNS
instead RB
of IN
flying VBG
to TO
San NNP
Francisco NNP
for IN
a DT
fund-raiser NN
and CC
then RB
to TO
his PRP$
hometown NN
of IN
Chicago NNP
for IN
the DT
30th JJ
reunion NN
of IN
St. NNP
Ignatius NNP
High NNP
School NNP
. .

`` ``
I PRP
'm VBP
too RB
old JJ
to TO
waste VB
a DT
weekend NN
, ,
but CC
that DT
's VBZ
what WP
I PRP
did VBD
, ,
'' ''
the DT
48-year-old NNP
Mr. NNP
Juliano NNP
moans VBZ
. .

`` ``
These DT
days NNS
, ,
anything NN
can MD
happen VB
. .

Lufthansa NNP
AG NNP
said VBD
passenger NN
volume NN
climbed VBD
5.2 CD
% NN
for IN
the DT
first JJ
nine CD
months NNS
of IN
1989 CD
to TO
15.3 CD
million CD
passengers NNS
from IN
14.5 CD
million CD
passengers NNS
in IN
the DT
year-earlier JJ
period NN
. .

The DT
West JJ
German JJ
national JJ
air NN
carrier NN
said VBD
cargo NN
volume NN
jumped VBD
12 CD
% NN
to TO
638,000 CD
metric JJ
tons NNS
from IN
569,000 CD
tons NNS
a DT
year NN
ago RB
. .

Load NN
factor NN
, ,
or CC
percentage NN
of IN
seats NNS
filled VBN
, ,
climbed VBD
to TO
67.1 CD
% NN
from IN
66.6 CD
% NN
, ,
even RB
though IN
the DT
number NN
of IN
flights NNS
rose VBD
6.9 CD
% NN
to TO
215,845 CD
in IN
the DT
first-three JJ
quarters NNS
. .

From IN
January NNP
through IN
September NNP
, ,
the DT
distance NN
flown VBN
by IN
Lufthansa NNP
airplanes NNS
rose VBD
5.6 CD
% NN
to TO
266.2 CD
million CD
kilometers NNS
from IN
a DT
year NN
earlier RBR
, ,
the DT
company NN
added VBD
. .

Raymond NNP
Chandler NNP
, ,
in IN
a DT
1950 CD
letter NN
defending VBG
a DT
weak JJ
Hemingway NNP
book NN
, ,
likened VBD
a DT
champion NN
writer NN
to TO
a DT
baseball NN
pitcher NN
. .

When WRB
the DT
champ NN
has VBZ
lost VBN
his PRP$
stuff NN
, ,
the DT
great JJ
mystery NN
novelist NN
wrote VBD
, ,
`` ``
when WRB
he PRP
can MD
no RB
longer RB
throw VB
the DT
high JJ
hard JJ
one CD
, ,
he PRP
throws VBZ
his PRP$
heart NN
instead RB
. .

He PRP
throws VBZ
something NN
. .

He PRP
does VBZ
n't RB
just RB
walk VB
off IN
the DT
mound NN
and CC
weep VB
. .
'' ''

Chandler NNP
might MD
have VB
been VBN
predicting VBG
the DT
course NN
of IN
his PRP$
own JJ
career NN
. .

His PRP$
last RB
published VBN
novel NN
featuring VBG
private JJ
detective NN
Philip NNP
Marlowe NNP
, ,
the DT
inferior JJ
`` ``
Playback NNP
'' ''
-LRB- (
1958 CD
-RRB- )
, ,
at IN
times NNS
read VBP
almost RB
like IN
a DT
parody NN
of IN
his PRP$
previous JJ
work NN
. .

When WRB
he PRP
died VBD
in IN
1959 CD
, ,
Chandler NNP
left VBD
behind IN
four CD
chapters NNS
of IN
yet RB
another DT
Marlowe NNP
book NN
, ,
`` ``
The DT
Poodle NNP
Springs NNP
Story NNP
, ,
'' ''
which WDT
seemed VBD
to TO
go VB
beyond IN
parody NN
into IN
something NN
like IN
burlesque JJ
. .

`` ``
Champ NNP
'' ''
Chandler NNP
's POS
last JJ
pitch NN
, ,
apparently RB
, ,
was VBD
a DT
screwball NN
. .

Now RB
Robert NNP
Parker NNP
, ,
author NN
of IN
several JJ
best JJS
sellers NNS
featuring VBG
Spenser NNP
, ,
a DT
contemporary JJ
private JJ
eye NN
in IN
the DT
Marlowe NNP
mold NN
, ,
has VBZ
with IN
the DT
blessings NNS
of IN
the DT
Chandler NNP
estate NN
been VBN
hired VBN
to TO
complete VB
`` ``
The DT
Poodle NNP
Springs NNP
Story NNP
. .
'' ''

The DT
result NN
, ,
`` ``
Poodle NNP
Springs NNP
'' ''
-LRB- (
Putnam NNP
's POS
, ,
288 CD
pages NNS
, ,
$ $
18.95 CD
-RRB- )
is VBZ
an DT
entertaining NN
, ,
easy JJ
to TO
read VB
and CC
fairly RB
graceful JJ
extension NN
of IN
the DT
Marlowe NNP
chronicle NN
, ,
full JJ
of IN
hard-boiled JJ
wisecracks NNS
and CC
California NNP
color NN
. .

If IN
it PRP
does VBZ
not RB
quite RB
have VB
Chandler NNP
's POS
special JJ
magic NN
-- :
well RB
, ,
at IN
the DT
end NN
, ,
neither DT
did VBD
Chandler NNP
. .

As IN
the DT
book NN
begins VBZ
, ,
a DT
newly RB
wed VBN
Marlowe NNP
roars VBZ
into IN
the DT
desert NN
resort NN
of IN
Poodle NNP
-LRB- (
a.k.a JJ
. .
Palm NNP
-RRB- )
Springs NNP
at IN
the DT
wheel NN
of IN
a DT
Cadillac NNP
Fleetwood NNP
. .

His PRP$
bride NN
is VBZ
the DT
rich JJ
and CC
beautiful JJ
Linda NNP
Loring NNP
, ,
a DT
character NN
who WP
also RB
appeared VBD
in IN
Chandler NNP
's POS
`` ``
The DT
Long NNP
Goodbye NNP
'' ''
and CC
`` ``
Playback NNP
. .
'' ''

Philip NNP
and CC
Linda NNP
move NN
into IN
her PRP$
mansion NN
and CC
ca MD
n't RB
keep VB
their PRP$
hands NNS
off IN
each DT
other NN
, ,
even RB
in IN
front NN
of IN
the DT
Hawaiian\/Japanese JJ
houseman NN
. .

But CC
the DT
lovebirds NNS
have VBP
a DT
conflict NN
. .

He PRP
wants VBZ
to TO
continue VB
being VBG
a DT
low-paid JJ
private JJ
eye NN
, ,
and CC
she PRP
wants VBZ
him PRP
to TO
live VB
off IN
the DT
million CD
dollars NNS
she PRP
's VBZ
settled VBD
on IN
him PRP
. .

That DT
's VBZ
Chandler NNP
's POS
setup NN
. .

Mr. NNP
Parker NNP
spins VBZ
it PRP
into IN
a DT
pretty RB
satisfying JJ
tale NN
involving VBG
Poodle NNP
Springs NNP
high JJ
life NN
, ,
Hollywood NNP
low JJ
life NN
and CC
various JJ
folk NN
who WP
hang VBP
their PRP$
hats NNS
in IN
both DT
worlds NNS
. .

The DT
supporting VBG
lineup NN
is VBZ
solid JJ
, ,
the DT
patter NN
is VBZ
amusing JJ
and CC
there EX
's VBZ
even RB
a DT
cameo NN
by IN
Bernie NNP
Ohls NNP
, ,
the DT
`` ``
good JJ
cop NN
'' ''
of IN
previous JJ
Chandler NNP
books NNS
who WP
still RB
does VBZ
n't RB
hesitate VB
to TO
have VB
Marlowe NNP
jailed VBN
when WRB
it PRP
suits VBZ
his PRP$
purposes NNS
. .

The DT
style NN
throughout IN
bears VBZ
a DT
strong JJ
resemblance NN
to TO
Chandler NNP
's POS
prose NN
at IN
its PRP$
most RBS
pared VBN
down RB
. .

All DT
told VBD
, ,
Mr. NNP
Parker NNP
does VBZ
a DT
better JJR
job NN
of IN
making VBG
a DT
novel NN
out IN
of IN
this DT
abandoned VBN
fragment NN
than IN
anyone NN
might MD
have VB
had VBN
a DT
right NN
to TO
expect VB
. .

But CC
there EX
are VBP
grounds NNS
for IN
complaint NN
. .

At IN
one CD
point NN
, ,
the DT
reader NN
is VBZ
two CD
steps NNS
ahead RB
of IN
Marlowe NNP
in IN
catching VBG
on IN
to TO
a DT
double JJ
identity NN
scam NN
-- :
and CC
Marlowe NNP
is VBZ
supposed VBN
to TO
be VB
the DT
pro FW
. .

More RBR
bothersome JJ
, ,
there EX
are VBP
several JJ
apparent JJ
anachronisms NNS
. .

Contact NN
lenses NNS
, ,
tank NN
tops NNS
, ,
prostitutes NNS
openly RB
working VBG
the DT
streets NNS
of IN
Hollywood NNP
and CC
the DT
Tequila NNP
Sunrise NNP
cocktail NN
all DT
seem VB
out IN
of IN
place NN
in IN
the DT
1950s CD
. .

A DT
little RB
more JJR
care NN
in IN
re-creating NN
Marlowe NNP
's POS
universe NN
would MD
have VB
made VBN
the DT
book NN
that IN
much RB
more RBR
enjoyable JJ
. .

Mr. NNP
Nolan NNP
is VBZ
a DT
contributing VBG
editor NN
at IN
Los NNP
Angeles NNP
Magazine NNP
. .

Ko NNP
Shioya NNP
spent VBD
eight CD
years NNS
as IN
the DT
editor NN
in IN
chief NN
of IN
the DT
Japanese JJ
edition NN
of IN
Reader NNP
's POS
Digest NNP
. .

`` ``
Japan NNP
has VBZ
been VBN
a DT
major JJ
importer NN
of IN
foreign JJ
information NN
and CC
news NN
, ,
'' ''
says VBZ
Mr. NNP
Shioya NNP
. .

`` ``
But CC
one CD
gets VBZ
fed VBN
up IN
with IN
importing VBG
information NN
and CC
news NN
. .
'' ''

Mr. NNP
Shioya NNP
has VBZ
turned VBN
the DT
tables NNS
. .

Today NN
, ,
he PRP
is VBZ
publisher NN
of IN
Business NNP
Tokyo NNP
magazine NN
, ,
the DT
first JJ
English-language JJ
business NN
magazine NN
devoted VBN
to TO
coverage NN
of IN
Japanese JJ
business NN
. .

After IN
a DT
slick JJ
redesign NN
, ,
the DT
two-year-old JJ
magazine NN
has VBZ
been VBN
relaunched VBN
this DT
month NN
by IN
its PRP$
parent NN
company NN
, ,
Keizaikai NNP
Corp. NNP
, ,
the DT
Tokyo-based JJ
company NN
with IN
interests NNS
that WDT
include VBP
financial JJ
services NNS
, ,
book NN
publishing NN
and CC
a DT
tourist NN
agency NN
. .

Printed JJ
in IN
the DT
U.S. NNP
and CC
carrying VBG
the DT
line NN
`` ``
The DT
Insider NNP
's POS
Japan NNP
, ,
'' ''
Business NNP
Tokyo NNP
's POS
October NNP
cover NN
story NN
was VBD
`` ``
The DT
World NNP
's POS
No. NN
1 CD
Customer NN
'' ''
-- :
Japanese JJ
women NNS
. .

Keizaikai NNP
is VBZ
one CD
of IN
a DT
small JJ
but CC
growing VBG
band NN
of IN
Japanese JJ
companies NNS
taking VBG
their PRP$
first JJ
steps NNS
into IN
American JJ
publishing NN
, ,
after IN
making VBG
major JJ
investments NNS
in IN
entertainment NN
, ,
real JJ
estate NN
and CC
banking NN
companies NNS
here RB
. .

Japanese JJ
concerns NNS
have VBP
retained VBN
a DT
number NN
of IN
publishing NN
consultants NNS
and CC
media NNS
brokers NNS
to TO
study VB
the DT
U.S. NNP
market NN
, ,
including VBG
the DT
New NNP
York-based JJ
investment NN
banker NN
Veronis NNP
, ,
Suhler NNP
& CC
Associates NNPS
. .

And CC
they PRP
are VBP
quietly RB
linking VBG
up IN
with IN
U.S. NNP
publishing NN
trade NN
groups NNS
. .

`` ``
Japanese JJ
publishers NNS
want VBP
to TO
be VB
introduced VBN
to TO
the DT
publishing NN
and CC
information NN
industries NNS
, ,
'' ''
said VBD
John NNP
Veronis NNP
, ,
chairman NN
of IN
Veronis NNP
Suhler NNP
. .

While IN
there EX
are VBP
n't RB
any DT
major JJ
deals NNS
in IN
the DT
works NNS
currently RB
on IN
the DT
scale NN
of IN
Sony NNP
Corp. NNP
's POS
recent JJ
$ $
3.4 CD
billion CD
agreement NN
to TO
buy VB
Columbia NNP
Pictures NNP
Entertainment NNP
Inc. NNP
, ,
observers NNS
do VBP
n't RB
rule VB
out RP
a DT
transaction NN
of IN
that DT
size NN
. .

`` ``
The DT
Japanese JJ
take NN
the DT
long JJ
view NN
. .
'' ''
said VBD
Mr. NNP
Veronis NNP
. .

`` ``
It PRP
may MD
not RB
be VB
weeks NNS
or CC
months NNS
, ,
but CC
they PRP
are VBP
also RB
opportunistic JJ
and CC
if IN
they PRP
feel VBP
comfortable JJ
, ,
they PRP
will MD
move VB
on IN
a DT
deal NN
, ,
'' ''
he PRP
said VBD
. .

In IN
recent JJ
months NNS
, ,
three CD
big JJ
Tokyo-based JJ
publishing NN
concerns NNS
-- :
including VBG
Nikkei NNP
Business NNP
Publications NNPS
, ,
Nikkei NNP
Home NNP
-LRB- (
no DT
relation NN
-RRB- )
, ,
and CC
Magazine NNP
House NNP
-- :
applied VBN
for IN
membership NN
in IN
Magazine NNP
Publishers NNPS
of IN
America NNP
, ,
which WDT
represents VBZ
almost RB
all DT
U.S. NNP
consumer NN
magazines NNS
. .

Japanese JJ
involvement NN
in IN
American JJ
publishing NN
has VBZ
been VBN
so RB
small JJ
to TO
date VB
that IN
magazines NNS
such JJ
as IN
Business NNP
Tokyo NNP
are VBP
considered VBN
groundbreakers NNS
. .

When WRB
Keizaikai NNP
launched VBD
Business NNP
Tokyo NNP
in IN
1987 CD
, ,
it PRP
appealed VBD
to TO
a DT
more RBR
multinational JJ
audience NN
. .

The DT
magazine NN
was VBD
overhauled VBN
with IN
the DT
aid NN
of IN
American JJ
magazine NN
design NN
gurus NNS
Milton NNP
Glaser NNP
and CC
Walter NNP
Bernard NNP
, ,
and CC
targets NNS
top-level JJ
U.S. NNP
executives NNS
with IN
Japanese JJ
and CC
American JJ
advertisers NNS
. .

American JJ
publishers NNS
appear VBP
more JJR
than IN
ready JJ
to TO
do VB
some DT
selling NN
. .

Susumu NNP
Ohara NNP
, ,
president NN
of IN
Nihon NNP
Keizai NNP
Shinbun NNP
America NNP
Inc. NNP
, ,
publisher NN
of IN
the DT
Japan NNP
Economic NNP
Journal NNP
, ,
said VBD
he PRP
receives VBZ
telephone NN
calls VBZ
weekly JJ
from IN
media NNS
bankers NNS
on IN
whether IN
his PRP$
parent NN
company NN
is VBZ
interested JJ
in IN
buying VBG
a DT
U.S. NNP
consumer NN
or CC
business NN
magazine NN
. .

`` ``
The DT
Japanese JJ
are VBP
in IN
the DT
early JJ
stage NN
right RB
now RB
, ,
'' ''
said VBD
Thomas NNP
Kenney NNP
, ,
a DT
onetime JJ
media NNS
adviser NN
for IN
First NNP
Boston NNP
Corp. NNP
who WP
was VBD
recently RB
appointed VBN
president NN
of IN
Reader NNP
's POS
Digest NNP
Association NNP
's POS
new JJ
Magazine NNP
Publishing NNP
Group NNP
. .

`` ``
Before IN
, ,
they PRP
were VBD
interested JJ
in IN
hard JJ
assets NNS
and CC
they PRP
saw VBD
magazines NNS
as IN
soft JJ
. .

Now RB
they PRP
realize VBP
magazines NNS
are VBP
as IN
much JJ
a DT
franchise NN
as IN
Nabisco NNP
is VBZ
a DT
franchise NN
. .

Bell NNP
Atlantic NNP
Corp. NNP
and CC
Southern NNP
New NNP
England NNP
Telecommunications NNPS
posted VBD
strong JJ
profit NN
gains NNS
for IN
the DT
third JJ
quarter NN
, ,
while IN
Nynex NNP
Corp. NNP
, ,
Pacific NNP
Telesis NNP
Group NNP
and CC
U NNP
S NNP
West NNP
Inc. NNP
reported VBD
earnings NNS
declines NNS
for IN
the DT
period NN
. .

Rate NN
settlements NNS
in IN
Minnesota NNP
and CC
Colorado NNP
depressed JJ
U NNP
S NNP
West NNP
's POS
third-quarter JJ
profit NN
. .

Denver-based NNP
U NNP
S NNP
West NNP
said VBD
net JJ
income NN
dropped VBD
8.9 CD
% NN
, ,
noting VBG
that IN
the DT
year-ago JJ
quarter NN
included VBD
the DT
sale NN
of IN
a DT
building NN
by IN
its PRP$
BetaWest NNP
Properties NNP
unit NN
. .

Revenue NN
dropped VBD
4.3 CD
% NN
to TO
$ $
2.3 CD
billion CD
from IN
$ $
2.4 CD
billion CD
, ,
reflecting VBG
declines NNS
in IN
its PRP$
consumer-telephone JJ
sector NN
, ,
long-distance JJ
carrier NN
business NN
and CC
diversified JJ
division NN
. .

Revenue NN
from IN
business-telephone JJ
operations NNS
grew VBD
3.3 CD
% NN
to TO
$ $
618.9 CD
million CD
from IN
$ $
599.4 CD
million CD
a DT
year NN
ago RB
. .

New JJ
telephone NN
lines NNS
posted VBD
healthy JJ
growth NN
. .

Overall RB
they PRP
increased VBD
2.8 CD
% NN
to TO
12.1 CD
million CD
, ,
putting VBG
U NNP
S NNP
West NNP
over IN
the DT
12 CD
million CD
mark NN
for IN
the DT
first JJ
time NN
. .

Business NN
lines NNS
increased VBN
3.7 CD
% NN
to TO
3.3 CD
million CD
. .

`` ``
On IN
a DT
truly RB
comparable JJ
basis NN
, ,
we PRP
've VBP
seen VBN
modest JJ
earnings NNS
growth NN
this DT
year NN
from IN
the DT
operations NNS
of IN
our PRP$
company NN
, ,
'' ''
said VBD
Jack NNP
MacAllister NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
. .

`` ``
The DT
major JJ
negative JJ
factor NN
was VBD
the DT
cumulative JJ
impact NN
of IN
regulatory JJ
activity NN
over IN
the DT
past JJ
two CD
years NNS
. .
'' ''

He PRP
said VBD
the DT
company NN
expects VBZ
to TO
be VB
`` ``
on IN
target NN
'' ''
with IN
analysts NNS
' POS
projections NNS
by IN
year NN
end NN
but CC
conceded VBD
that IN
the DT
fourth JJ
quarter NN
represents VBZ
`` ``
a DT
significant JJ
challenge NN
. .
'' ''

Expenses NNS
in IN
the DT
quarter NN
dropped VBD
11.2 CD
% NN
to TO
$ $
664.3 CD
million CD
from IN
$ $
747.7 CD
million CD
a DT
year NN
ago RB
. .

Yesterday NN
, ,
U NNP
S NNP
West NNP
shares NNS
rose VBD
75 CD
cents NNS
to TO
close VB
at IN
$ $
71.25 CD
in IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
. .

Philadelphia-based JJ
Bell NNP
Atlantic NNP
said VBD
net NN
rose VBD
6.5 CD
% NN
, ,
aided VBN
by IN
strong JJ
growth NN
in IN
the DT
network-services JJ
business NN
and CC
an DT
increase NN
in IN
the DT
number NN
of IN
new JJ
telephone NN
lines NNS
. .

Revenue NN
jumped VBD
5.6 CD
% NN
to TO
$ $
2.9 CD
billion CD
from IN
$ $
2.8 CD
billion CD
in IN
the DT
year-ago JJ
quarter NN
. .

Revenue NN
from IN
financial JJ
and CC
real-estate NN
services NNS
jumped VBD
23 CD
% NN
to TO
$ $
177.4 CD
million CD
from IN
$ $
144.1 CD
million CD
a DT
year NN
ago RB
. .

Network-access JJ
revenue NN
from IN
long-distance JJ
telephone NN
companies NNS
increased VBN
6.4 CD
% NN
to TO
$ $
618.6 CD
million CD
. .

Bell NNP
Atlantic NNP
added VBD
148,000 CD
new JJ
telephone NN
lines NNS
in IN
the DT
quarter NN
for IN
a DT
total NN
of IN
16.9 CD
million CD
. .

The DT
company NN
said VBD
per-share JJ
earnings NNS
were VBD
slightly RB
reduced VBN
by IN
the DT
sale NN
of IN
4.1 CD
million CD
shares NNS
of IN
treasury NN
stock NN
to TO
the DT
company NN
's POS
newly RB
formed VBN
Employee NNP
Stock NNP
Ownership NNP
Plans NNS
. .

In IN
composite JJ
trading NN
on IN
the DT
Big NNP
Board NNP
, ,
Bell NNP
Atlantic NNP
closed VBD
at IN
$ $
100.625 CD
, ,
up IN
$ $
1.50 CD
a DT
share NN
. .

At IN
Nynex NNP
, ,
net NN
slumped VBD
14.8 CD
% NN
, ,
primarily RB
because IN
of IN
a DT
continuing VBG
strike NN
by IN
60,000 CD
employees NNS
, ,
lower-than-expected JJ
profit NN
at IN
its PRP$
New NNP
York NNP
Telephone NNP
unit NN
and CC
significantly RB
higher JJR
taxes NNS
and CC
costs NNS
. .

State NNP
and CC
local JJ
taxes NNS
increased VBN
to TO
$ $
131.3 CD
million CD
from IN
$ $
99.1 CD
million CD
a DT
year NN
ago RB
. .

Nynex NNP
said VBD
expenses NNS
rose VBD
4.5 CD
% NN
to TO
$ $
2.73 CD
billion CD
from IN
$ $
2.61 CD
billion CD
, ,
a DT
$ $
119 CD
million CD
increase NN
. .

Most JJS
of IN
the DT
higher JJR
costs NNS
were VBD
associated VBN
with IN
acquisitions NNS
and CC
growth NN
in IN
nonregulated JJ
business NN
units NNS
, ,
it PRP
added VBD
. .

`` ``
Our PRP$
net JJ
income NN
is VBZ
n't RB
where WRB
we PRP
would MD
want VB
it PRP
to TO
be VB
at IN
this DT
point NN
, ,
'' ''
said VBD
William NNP
C. NNP
Ferguson NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
. .

`` ``
This DT
deviation NN
from IN
our PRP$
past JJ
growth NN
patterns NNS
is VBZ
caused VBN
largely RB
by IN
lower JJR
earnings NNS
at IN
New NNP
York NNP
Telephone NNP
. .
'' ''

Mr. NNP
Ferguson NNP
said VBD
a DT
continued VBN
softness NN
in IN
New NNP
York NNP
City NNP
area NN
's POS
economy NN
and CC
increased VBN
competition NN
, ,
particularly RB
in IN
the DT
private-line JJ
market NN
, ,
took VBD
a DT
heavy JJ
toll NN
on IN
earnings NNS
. .

The DT
three-month-old JJ
strike NN
at IN
Nynex NNP
seriously RB
hurt VBD
the DT
installation NN
of IN
new JJ
telephone NN
lines NNS
in IN
the DT
quarter NN
. .

Nynex NNP
said VBD
access NN
lines NNS
in IN
service NN
at IN
the DT
end NN
of IN
the DT
quarter NN
were VBD
off IN
18,000 CD
from IN
the DT
previous JJ
quarter NN
, ,
which WDT
reported VBD
an DT
increase NN
of IN
160,000 CD
new JJ
access NN
lines NNS
. .

Revenue NN
rose VBD
to TO
$ $
3.31 CD
billion CD
from IN
$ $
3.18 CD
billion CD
, ,
mostly RB
from IN
acquisition NN
of IN
AGS NNP
Computers NNPS
and CC
robust JJ
non-regulated JJ
businesses NNS
. .

In IN
Big NNP
Board NNP
composite JJ
trading NN
yesterday NN
, ,
Nynex NNP
common NN
closed VBD
at IN
$ $
81.125 CD
, ,
up IN
$ $
1.625 CD
. .

Southern NNP
New NNP
England NNP
Telecommunications NNPS
, ,
which WDT
bolstered VBD
its PRP$
marketing NN
efforts NNS
for IN
telephone NN
and CC
non-telephone JJ
subsidiaries NNS
, ,
reported VBD
that IN
net JJ
increased VBN
8.1 CD
% NN
. .

Walter NNP
H. NNP
Monteith NNP
Jr. NNP
, ,
SNET NNP
chairman NN
and CC
chief JJ
executive JJ
officer NN
, ,
said VBD
: :
`` ``
Innovative JJ
marketing NN
of IN
our PRP$
products NNS
and CC
services NNS
contributed VBD
to TO
increase VB
revenue NN
. .
'' ''
Revenue NN
and CC
sales NNS
increased VBN
7.5 CD
% NN
to TO
$ $
423.9 CD
million CD
from IN
$ $
394.4 CD
million CD
a DT
year NN
earlier RBR
. .

Yellow JJ
pages NNS
advertising NN
sales NNS
rose VBD
11.8 CD
% NN
to TO
$ $
41.2 CD
million CD
. .

Cost NN
and CC
expenses NNS
for IN
the DT
quarter NN
, ,
excluding VBG
interest NN
, ,
increased VBN
6.1 CD
% NN
to TO
$ $
333.3 CD
million CD
from IN
$ $
314 CD
million CD
the DT
year NN
before RB
. .

SNET NNP
common NN
rose VBD
$ $
1.25 CD
to TO
$ $
85.50 CD
a DT
share NN
yesterday NN
in IN
composite JJ
trading NN
on IN
the DT
Big NNP
Board NNP
. .

San NNP
Francisco-based JJ
Pacific NNP
Telesis NNP
said VBD
net NN
declined VBD
12.6 CD
% NN
, ,
primarily RB
because IN
of IN
regulatory JJ
action NN
. .

Revenue NN
was VBD
about IN
flat JJ
at IN
$ $
2.4 CD
billion CD
. .

Revenue NN
was VBD
reduced VBN
$ $
33 CD
million CD
by IN
three CD
extraordinary JJ
items NNS
: :
a DT
California NNP
Public NNP
Utilities NNP
Commission NNP
refund NN
for IN
an DT
American NNP
Telephone NNP
& CC
Telegraph NNP
Co. NNP
billing NN
adjustment NN
; :
a DT
provision NN
for IN
productivity NN
sharing VBG
to TO
be VB
paid VBN
to TO
customers NNS
in IN
1990 CD
and CC
a DT
one-time JJ
accrual NN
for IN
a DT
toll NN
settlement NN
with IN
long-distance JJ
telephone NN
companies NNS
. .

Excluding VBG
the DT
one-time JJ
charges NNS
, ,
the DT
company NN
would MD
have VB
posted VBN
earnings NNS
of IN
$ $
298 CD
million CD
, ,
or CC
73 CD
cents NNS
a DT
share NN
. .

The DT
company NN
also RB
was VBD
hurt VBN
by IN
a DT
$ $
289 CD
million CD
rate NN
reduction NN
that WDT
went VBD
into IN
effect NN
in IN
1989 CD
. .

`` ``
This DT
is VBZ
a DT
good JJ
quarter NN
for IN
us PRP
in IN
terms NNS
of IN
our PRP$
business NN
fundamentals NNS
, ,
'' ''
said VBD
Sam NNP
Ginn NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
. .

Pacific NNP
Telesis NNP
said VBD
new JJ
telephone NN
lines NNS
increased VBN
4.5 CD
% NN
for IN
a DT
total NN
of IN
about RB
$ $
13.5 CD
million CD
for IN
the DT
quarter NN
; :
toll NN
calls VBZ
increased VBN
9.6 CD
% NN
to TO
807 CD
million CD
and CC
minutes NNS
of IN
telephone NN
usage NN
increased VBN
to TO
9.9 CD
billion CD
. .

In IN
Big NNP
Board NNP
composite JJ
trading NN
yesterday NN
, ,
Pacific NNP
Telesis NNP
common NN
closed VBD
at IN
$ $
45.50 CD
, ,
up IN
87.5 CD
cents NNS
. .

a DT
- :
Includes VBZ
a DT
one-time JJ
gain NN
of IN
$ $
88.7 CD
million CD
from IN
a DT
commonstock NN
sale NN
by IN
U NNP
S NNP
West NNP
's POS
U NNP
S NNP
West NNP
New NNP
Vector NNP
Group NNP
. .

b NN
- :
Includes VBZ
a DT
$ $
41.3 CD
million CD
gain NN
on IN
the DT
sale NN
of IN
FiberCom NNP
. .

Amoco NNP
Corp. NNP
said VBD
third-quarter JJ
net JJ
income NN
plunged VBD
39 CD
% NN
to TO
$ $
336 CD
million CD
, ,
or CC
65 CD
cents NNS
a DT
share NN
, ,
as IN
gasoline NN
refining NN
and CC
marketing NN
profits NNS
lagged VBN
substantially RB
behind IN
last JJ
year NN
's POS
record NN
level NN
. .

A DT
charge NN
of IN
$ $
80 CD
million CD
related VBN
to TO
projected VBN
environmental JJ
costs NNS
in IN
its PRP$
refining NN
and CC
marketing NN
operations NNS
further JJ
depressed JJ
results NNS
. .

A DT
spokesman NN
said VBD
Amoco NNP
completed VBD
an DT
environmental JJ
analysis NN
last JJ
quarter NN
but CC
that IN
no DT
single JJ
clean-up JJ
project NN
was VBD
responsible JJ
. .

In IN
the DT
1988 CD
third JJ
quarter NN
, ,
the DT
Chicago-based JJ
oil NN
company NN
earned VBD
$ $
552 CD
million CD
, ,
or CC
$ $
1.07 CD
a DT
share NN
. .

Revenue NN
in IN
the DT
latest JJS
quarter NN
rose VBD
12 CD
% NN
to TO
$ $
6.6 CD
billion CD
from IN
$ $
5.91 CD
billion CD
. .

Aside RB
from IN
the DT
special JJ
charge NN
, ,
Amoco NNP
's POS
results NNS
were VBD
in IN
line NN
with IN
Wall NNP
Street NNP
estimates NNS
. .

The DT
company NN
's POS
stock NN
ended VBD
at IN
$ $
48.375 CD
, ,
up IN
25 CD
cents NNS
in IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
. .

Amoco NNP
is VBZ
the DT
first JJ
major JJ
oil NN
company NN
to TO
report VB
third-quarter JJ
results NNS
. .

Analysts NNS
expect VBP
others NNS
to TO
show VB
a DT
similar JJ
pattern NN
. .

Generally RB
in IN
the DT
quarter NN
, ,
overproduction NN
of IN
gasoline NN
and CC
higher JJR
crude JJ
oil NN
prices NNS
pressured VBD
profitability NN
. .

The DT
industry NN
's POS
chemical NN
profits NNS
also RB
declined VBD
because IN
excess JJ
capacity NN
has VBZ
depressed JJ
prices NNS
. .

Gasoline NN
margins NNS
may MD
rebound VB
this DT
quarter NN
, ,
some DT
industry NN
officials NNS
say VBP
, ,
but CC
they PRP
believe VBP
chemical NN
margins NNS
could MD
worsen VB
. .

American NNP
Petrofina NNP
Inc. NNP
, ,
a DT
Dallas-based JJ
integrated VBN
oil NN
company NN
, ,
yesterday NN
said VBD
its PRP$
third-quarter JJ
earnings NNS
declined VBN
by IN
more JJR
than IN
half NN
. .

Fina NNP
blamed VBD
lower JJR
chemical NN
prices NNS
, ,
reduced VBN
gasoline NN
margins NNS
and CC
refinery NN
maintenance NN
shutdowns NNS
. .

It PRP
said VBD
net JJ
income NN
dropped VBD
to TO
$ $
15.1 CD
million CD
, ,
or CC
98 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
35.2 CD
million CD
, ,
or CC
$ $
2.66 CD
a DT
share NN
. .

Sales NNS
rose VBD
2.2 CD
% NN
to TO
$ $
711.9 CD
million CD
from IN
$ $
696.1 CD
million CD
. .

Amoco NNP
's POS
refining NN
and CC
marketing NN
profit NN
in IN
the DT
quarter NN
fell VBD
to TO
$ $
134 CD
million CD
from IN
$ $
319 CD
million CD
. .

Chemical JJ
earnings NNS
declined VBN
by IN
one-third NN
to TO
$ $
120 CD
million CD
last JJ
year NN
's POS
robust JJ
levels NNS
. .

Amoco NNP
's POS
domestic JJ
oil NN
and CC
natural JJ
gas NN
operations NNS
recorded VBD
a DT
profit NN
of IN
$ $
104 CD
million CD
in IN
the DT
quarter NN
compared VBN
with IN
a DT
loss NN
of IN
$ $
5 NN
million CD
, ,
`` ``
primarily RB
on IN
the DT
strength NN
of IN
higher JJR
crude JJ
oil NN
prices NNS
, ,
'' ''
said VBD
Chairman NNP
Richard NNP
M. NNP
Morrow NNP
. .

Amoco NNP
also RB
sharply RB
boosted VBD
natural-gas NN
output NN
, ,
part NN
of IN
it PRP
from IN
properties NNS
acquired VBN
from IN
Tenneco NNP
Inc. NNP
last JJ
year NN
. .

But CC
foreign JJ
exploration NN
and CC
production NN
earnings NNS
fell VBD
sharply RB
, ,
to TO
$ $
12 CD
million CD
from IN
$ $
95 CD
million CD
. .

Higher JJR
oil NN
prices NNS
were VBD
n't RB
enough RB
to TO
offset VB
a DT
roughly RB
$ $
20 CD
million CD
charge NN
related VBN
to TO
a DT
10 CD
% NN
reduction NN
in IN
Amoco NNP
's POS
Canadian JJ
work NN
force NN
as RB
well RB
as IN
increased VBN
exploration NN
expenses NNS
. .

For IN
the DT
nine CD
months NNS
, ,
Amoco NNP
said VBD
that IN
net JJ
income NN
fell VBD
to TO
$ $
1.29 CD
billion CD
from IN
$ $
1.69 CD
billion CD
but CC
if IN
unusual JJ
items NNS
are VBP
excluded VBN
, ,
operations NNS
produced VBN
essentially RB
flat JJ
results NNS
. .

Revenue NN
rose VBD
12 CD
% NN
to TO
$ $
19.93 CD
billion CD
from IN
$ $
17.73 CD
billion CD
. .

James NNP
F. NNP
Gero NNP
, ,
former JJ
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
Varo NNP
Inc. NNP
, ,
and CC
Richard NNP
J. NNP
Hatchett NNP
III NNP
, ,
a DT
Dallas NNP
investment NN
banker NN
, ,
were VBD
elected VBN
directors NNS
of IN
this DT
medical-products NNS
concern VBP
, ,
boosting VBG
the DT
board NN
to TO
seven CD
members NNS
. .
For IN
retailers NNS
, ,
Christmas NNP
, ,
not RB
Halloween NNP
, ,
promises VBZ
to TO
be VB
this DT
year NN
's POS
spookiest JJS
season NN
. .

Many JJ
retailers NNS
fear VBP
a DT
price NN
war NN
will MD
erupt VB
if IN
cash-strapped JJ
companies NNS
such JJ
as IN
Campeau NNP
Corp. NNP
slash VB
tags NNS
to TO
spur VB
sales NNS
. .

Concerns NNS
about IN
the DT
stock NN
market NN
, ,
doubts VBZ
about IN
the DT
economy NN
in IN
general JJ
and CC
rising VBG
competition NN
from IN
catalog NN
companies NNS
also RB
haunt VBP
store NN
operators NNS
. .

`` ``
Profits NNS
at IN
Christmas NNP
could MD
be VB
under IN
attack NN
for IN
every DT
retailer NN
, ,
'' ''
asserts VBZ
Norman NNP
Abramson NNP
, ,
president NN
and CC
chief JJ
operating VBG
officer NN
of IN
Clothestime NNP
Inc. NNP
, ,
an DT
off-price JJ
chain NN
. .

Even RB
if IN
there EX
is VBZ
n't RB
any DT
widespread JJ
discounting NN
, ,
the DT
outlook NN
for IN
industry NN
profits NNS
is VBZ
n't RB
good JJ
. .

Management NNP
Horizons NNP
forecasts VBZ
a DT
1.4 CD
% NN
profit NN
decline NN
for IN
non-auto JJ
retailers NNS
this DT
year NN
, ,
after IN
annual JJ
drops NNS
that WDT
averaged VBD
4.5 CD
% NN
in IN
1988 CD
and CC
1987 CD
. .

`` ``
For IN
the DT
last JJ
two CD
and CC
a DT
half NN
years NNS
, ,
retailing NN
has VBZ
been VBN
in IN
a DT
mild JJ
recession NN
, ,
'' ''
says VBZ
Carl NNP
Steidtmann NNP
, ,
chief JJ
economist NN
at IN
the DT
Columbus NNP
, ,
Ohio NNP
, ,
consulting NN
firm NN
. .

This DT
year NN
, ,
many JJ
stores NNS
are VBP
entering VBG
the DT
Christmas NNP
season NN
in IN
turmoil NN
: :
Bonwit NNP
Teller NNP
and CC
B. NNP
Altman NNP
parent NN
L.J. NNP
Hooker NNP
Corp. NNP
is VBZ
operating VBG
under IN
Chapter NN
11 CD
of IN
the DT
federal JJ
Bankruptcy NNP
Code NNP
; :
B.A.T NNP
Industries NNP
PLC NNP
's POS
healthy JJ
Saks NNP
Fifth NNP
Avenue NNP
and CC
Marshall NNP
Field NNP
's POS
chains NNS
are VBP
on IN
the DT
auction NN
block NN
; :
Campeau NNP
's POS
Bloomingdale NNP
's POS
is VBZ
also RB
on IN
the DT
block NN
. .

Industry NN
observers NNS
expect VBP
a DT
wide JJ
divergence NN
in IN
performance NN
. .

Stores NNS
in IN
a DT
state NN
of IN
confusion NN
are VBP
likely JJ
to TO
fare VB
poorly RB
, ,
and CC
to TO
lose VB
customers NNS
to TO
stable JJ
chains NNS
such JJ
as IN
Limited NNP
Inc. NNP
, ,
May NNP
Department NNP
Stores NNP
Co. NNP
and CC
Dillard NNP
Department NNP
Stores NNP
Inc. NNP
, ,
which WDT
should MD
do VB
well RB
. .

`` ``
There EX
are VBP
going VBG
to TO
be VB
very RB
clear JJ
winners NNS
and CC
very RB
clear JJ
losers NNS
, ,
'' ''
says VBZ
Cynthia NNP
Turk NNP
, ,
a DT
Touche NNP
Ross NNP
& CC
Co. NNP
retail JJ
consultant NN
. .

Says VBZ
Mr. NNP
Steidtmann NNP
: :
`` ``
I PRP
'm VBP
looking VBG
for IN
a DT
bi-polar JJ
Christmas NNP
. .
'' ''

Economists NNS
expect VBP
general JJ
merchandise NN
sales NNS
in IN
the DT
fourth JJ
quarter NN
to TO
rise VB
4.5 CD
% NN
to TO
6 CD
% NN
from IN
year-ago JJ
figures NNS
. .

But CC
Mr. NNP
Steidtmann NNP
predicts VBZ
that IN
healthy JJ
stores NNS
hawking VBG
mostly JJ
apparel NN
could MD
ring VB
up IN
gains NNS
of IN
as RB
much JJ
as IN
25 CD
% NN
to TO
30 CD
% NN
. .

Troubled JJ
chains NNS
could MD
see VB
their PRP$
sales NNS
drop NN
as RB
much JJ
as IN
8 CD
% NN
, ,
he PRP
believes VBZ
, ,
as IN
managers NNS
distracted VBN
by IN
fears NNS
about IN
the DT
future NN
allow VB
their PRP$
stores NNS
to TO
get VB
sloppy JJ
. .

Thin JJ
merchandise NN
selections NNS
at IN
the DT
most RBS
troubled JJ
chains NNS
are VBP
also RB
expected VBN
to TO
hurt VB
sales NNS
. .

Catalog NN
companies NNS
are VBP
likely JJ
to TO
pose VB
a DT
bigger JJR
threat NN
to TO
all DT
stores VBZ
this DT
year NN
, ,
particularly RB
in IN
December NNP
. .

More RBR
than IN
200 CD
catalog NN
outfits NN
are VBP
promoting VBG
a DT
low-cost JJ
Federal NNP
Express NNP
service NN
that IN
guarantees NNS
pre-Christmas JJ
delivery NN
of IN
orders NNS
made VBN
by IN
a DT
certain JJ
date NN
. .

`` ``
Traditionally RB
, ,
consumers NNS
were VBD
concerned VBN
about IN
ordering VBG
after IN
the DT
first JJ
of IN
December NNP
because IN
they PRP
did VBD
n't RB
believe VB
they PRP
would MD
get VB
it PRP
by IN
Christmas NNP
, ,
'' ''
says VBZ
Adam NNP
Strum NNP
, ,
chairman NN
of IN
the DT
Wine NNP
Enthusiast NNP
Inc. NNP
, ,
which WDT
sells VBZ
wine NN
cellars NNS
and CC
accessories NNS
through IN
the DT
mail NN
. .

Using VBG
Federal NNP
Express NNP
delivery NN
last JJ
year NN
, ,
Mr. NNP
Strum NNP
says VBZ
, ,
`` ``
December NNP
was VBD
our PRP$
biggest JJS
month NN
. .
'' ''

Even RB
Sears NNP
, ,
Roebuck NNP
& CC
Co. NNP
is VBZ
getting VBG
into IN
the DT
act NN
, ,
offering NN
for IN
the DT
first JJ
time NN
to TO
have VB
Federal NNP
Express NNP
deliver VB
toys NNS
ordered VBN
by IN
Dec. NNP
20 CD
from IN
its PRP$
Wish VB
Book NNP
catalog NN
. .

K NNP
mart NNP
Corp. NNP
Chairman NNP
Joseph NNP
E. NNP
Antonini NNP
summed VBD
up IN
his PRP$
outlook NN
for IN
the DT
Christmas NNP
season NN
as IN
`` ``
not RB
troublesome JJ
. .
'' ''

He PRP
's VBZ
not RB
predicting VBG
a DT
blockbuster NN
, ,
but CC
he PRP
is VBZ
`` ``
more RBR
optimistic JJ
than IN
three CD
months NNS
ago RB
'' ''
because IN
employment NN
remains VBZ
strong JJ
and CC
inflation NN
low JJ
. .

Other JJ
retailers NNS
are VBP
also RB
preparing VBG
for IN
a DT
ho-hum JJ
holiday NN
. .

Philip NNP
M. NNP
Hawley NNP
, ,
chairman NN
of IN
Carter NNP
Hawley NNP
Hale NNP
Stores NNP
Inc. NNP
, ,
expects VBZ
sales NNS
at IN
department NN
stores NNS
open JJ
at IN
least JJS
a DT
year NN
to TO
rise VB
a DT
modest JJ
3 CD
% NN
to TO
5 VB
% NN
over IN
last JJ
year NN
's POS
totals VBZ
, ,
both DT
for IN
his PRP$
company NN
and CC
the DT
industry NN
in IN
general NN
. .

`` ``
I PRP
'm VBP
not RB
looking VBG
for IN
a DT
runaway JJ
Christmas NNP
at IN
all DT
, ,
'' ''
he PRP
says VBZ
. .

`` ``
It PRP
is VBZ
n't RB
a DT
real JJ
boom NN
holiday NN
season NN
in IN
our PRP$
eyes NNS
, ,
'' ''
says VBZ
Woolworth NNP
Corp. NNP
Chairman NNP
Harold NNP
E. NNP
Sells NNP
, ,
`` ``
but CC
it PRP
is VBZ
n't RB
going VBG
to TO
be VB
a DT
bust NN
either RB
. .
'' ''

Mr. NNP
Sells NNP
expects VBZ
fourth-quarter JJ
sales NNS
at IN
his PRP$
company NN
-- :
which WDT
besides IN
Woolworth NNP
stores NNS
includes VBZ
Kinney NNP
and CC
Foot NNP
Locker NNP
shoe NN
stores NNS
and CC
other JJ
specialty NN
chains NNS
-- :
to TO
rise VB
`` ``
pretty RB
much JJ
in IN
line NN
'' ''
with IN
its PRP$
year-to-date JJ
increases NNS
of IN
between IN
8 CD
% NN
and CC
9 CD
% NN
. .

The DT
estimate NN
includes VBZ
the DT
results NNS
of IN
new JJ
stores NNS
. .

A DT
consumer NN
poll NN
conducted VBN
in IN
early JJ
September NNP
by IN
Leo NNP
J. NNP
Shapiro NNP
& CC
Associates NNPS
, ,
a DT
market NN
researcher NN
based VBN
in IN
Chicago NNP
, ,
also RB
suggests VBZ
a DT
modest JJ
holiday NN
. .

Of IN
the DT
450 CD
survey NN
respondents NNS
, ,
35 CD
% NN
said VBD
they PRP
expect VBP
to TO
spend VB
less JJR
buying VBG
Christmas NNP
gifts NNS
this DT
year NN
than IN
last JJ
year NN
, ,
while IN
28 CD
% NN
said VBD
they PRP
expect VBP
to TO
spend VB
more JJR
and CC
37 CD
% NN
said VBD
their PRP$
gift NN
budget NN
would MD
stay VB
the DT
same JJ
. .

The DT
results NNS
are VBP
almost RB
identical JJ
to TO
Shapiro NNP
's POS
September NNP
1988 CD
numbers NNS
. .

Retailers NNS
could MD
get VB
a DT
boost NN
this DT
year NN
from IN
the DT
calendar NN
. .

Christmas NNP
falls VBZ
on IN
a DT
Monday NNP
, ,
creating VBG
a DT
big JJ
last-minute JJ
weekend NN
opportunity NN
for IN
stores NNS
. .

Most JJS
will MD
stay VB
open JJ
late JJ
Saturday NNP
night NN
and CC
open JJ
their PRP$
doors NNS
again RB
Sunday NNP
. .

But CC
many JJ
consumers NNS
probably RB
will MD
use VB
the DT
extra JJ
time NN
to TO
put VB
off IN
some DT
purchasing NN
until IN
the DT
last JJ
minute NN
. .

`` ``
What WP
you PRP
'll MD
hear VB
as IN
we PRP
get VBP
into IN
December NNP
is VBZ
that IN
sales NNS
are VBP
sluggish JJ
, ,
'' ''
predicts VBZ
Woolworth NNP
's POS
Mr. NNP
Sells NNP
. .

`` ``
The DT
week NN
ending VBG
the DT
24th NN
is VBZ
going VBG
to TO
save VB
the DT
entire JJ
month NN
for IN
everyone NN
. .

The DT
Spanish JJ
author NN
Camilo NNP
Jose NNP
Cela NNP
won VBD
the DT
Nobel NNP
Prize NNP
for IN
literature NN
yesterday NN
, ,
a DT
surprising JJ
choice NN
, ,
but CC
given VBN
the DT
Swedish NNP
Academy NNP
's POS
past JJ
perversities NNS
, ,
hardly RB
the DT
most RBS
undeserved JJ
and CC
ridiculous JJ
accolade NN
handed VBD
out IN
by IN
the DT
awarding VBG
committee NN
. .

In IN
Spain NNP
, ,
anyway RB
, ,
the DT
73-year-old NNP
Mr. NNP
Cela NNP
enjoys VBZ
some DT
renown NN
for IN
the DT
novels NNS
and CC
travel NN
books NNS
he PRP
wrote VBD
during IN
the DT
parched VBN
Franco NNP
years NNS
, ,
the DT
everyday JJ
poverty NN
and CC
stagnant JJ
atmosphere NN
of IN
which WDT
he PRP
described VBD
in IN
brutally RB
direct JJ
, ,
vivid JJ
prose NN
, ,
beginning VBG
with IN
`` ``
The DT
Family NNP
of IN
Pascal NNP
Duarte NNP
'' ''
-LRB- (
1942 CD
-RRB- )
. .

Unlike IN
other JJ
writers NNS
who WP
either DT
battled VBD
the DT
fascists NNS
during IN
the DT
Civil NNP
War NNP
, ,
or CC
left VBD
Spain NNP
when WRB
Franco NNP
triumphed VBD
, ,
Mr. NNP
Cela NNP
fought VBD
briefly NN
on IN
the DT
general NN
's POS
side NN
, ,
no DT
doubt NN
earning VBG
with IN
his PRP$
war NN
wound NN
some DT
forbearance NN
when WRB
he PRP
went VBD
on IN
to TO
depict VB
a DT
country NN
with IN
a DT
high JJ
population NN
of IN
vagabonds NNS
, ,
murderers NNS
and CC
rural JJ
idiots NNS
trudging VBG
aimlessly RB
through IN
a DT
dried-out JJ
land NN
. .

Still RB
, ,
it PRP
was VBD
in IN
Argentine JJ
editions NNS
that IN
his PRP$
countrymen NNS
first JJ
read VB
his PRP$
story NN
of IN
Pascal NNP
Duarte NNP
, ,
a DT
field NN
worker NN
who WP
stabbed VBD
his PRP$
mother NN
to TO
death NN
and CC
has VBZ
no DT
regrets VBZ
as IN
he PRP
awaits VBZ
his PRP$
end NN
in IN
a DT
prison NN
cell NN
: :
`` ``
Fate NNP
directs VBZ
some DT
men NNS
down IN
the DT
flower-bordered JJ
path NN
, ,
and CC
others NNS
down IN
the DT
road NN
bordered VBN
with IN
thistles NNS
and CC
prickly JJ
pears NNS
. .

The DT
lucky JJ
ones NNS
gaze VBP
out IN
at IN
life NN
with IN
serene JJ
eyes NNS
and CC
smile NN
with IN
a DT
face NN
of IN
innocence NN
at IN
their PRP$
perfumed JJ
happiness NN
. .

The DT
others NNS
endure VBP
the DT
hot JJ
sun NN
of IN
the DT
plains NNS
and CC
scowl VBP
like IN
cornered VBN
wild JJ
beasts NNS
. .
'' ''

Mr. NNP
Cela NNP
himself PRP
was VBD
one CD
of IN
the DT
lucky JJ
ones NNS
, ,
his PRP$
fortunes NNS
steadily RB
increasing VBG
over IN
the DT
decades NNS
he PRP
spent VBD
putting VBG
out RP
some DT
70 CD
travelogues NNS
, ,
novels NNS
, ,
short JJ
story NN
collections NNS
and CC
poetry NN
. .

These DT
days NNS
, ,
he PRP
is VBZ
as IN
known VBN
for IN
his PRP$
flamboyant JJ
tastes NNS
and CC
the DT
youthful JJ
muse NN
who WP
shares VBZ
his PRP$
life NN
as IN
he PRP
is VBZ
for IN
his PRP$
books NNS
. .

The DT
man NN
who WP
wore VBD
out RP
his PRP$
shoes NNS
wandering VBG
around IN
Guadalajara NNP
in IN
1958 CD
, ,
describing VBG
in IN
his PRP$
travel NN
book NN
`` ``
Viaje NNP
a DT
la FW
Alcarria NNP
'' ''
how WRB
he PRP
scrounged VBD
for IN
food NN
and CC
stayed VBD
in IN
squalid JJ
inns NNS
, ,
now RB
tours VBZ
Spain NNP
in IN
a DT
Rolls-Royce NNP
. .

Of IN
his PRP$
10 CD
novels NNS
, ,
`` ``
The DT
Hive NNP
'' ''
-LRB- (
1951 CD
-RRB- )
, ,
full JJ
of IN
sharp JJ
vignettes NNS
of IN
Madrid NNP
life NN
and CC
centered VBN
on IN
a DT
cafe NN
run NN
by IN
Dona NNP
Rosa NNP
, ,
a DT
foul-mouthed JJ
, ,
broad-based JJ
woman NN
with IN
blackened VBN
little JJ
teeth NNS
encrusted VBN
in IN
filth NN
, ,
used VBN
to TO
be VB
available JJ
in IN
English NNP
, ,
translated VBN
by IN
J.M. NNP
Cohen NNP
and CC
published VBN
by IN
Ecco NNP
Press NNP
, ,
which WDT
now RB
no DT
doubt NN
regrets VBZ
relinquishing VBG
its PRP$
copyright NN
. .

Here RB
is VBZ
an DT
excerpt NN
: :

The DT
lonely JJ
woman NN
walks VBZ
on IN
in IN
the DT
direction NN
of IN
the DT
Plaza NNP
de FW
Alonso NNP
Martinez NNP
. .

Two CD
men NNS
have VBP
a DT
conversation NN
behind IN
one CD
of IN
the DT
windows NNS
of IN
the DT
cafe NN
on IN
the DT
corner NN
of IN
the DT
boulevard NN
. .

Both DT
are VBP
young JJ
, ,
one CD
twenty CD
odd JJ
, ,
the DT
other JJ
thirty CD
odd JJ
. .

The DT
older JJR
one CD
looks VBZ
like IN
a DT
member NN
of IN
the DT
jury NN
for IN
a DT
literary JJ
award NN
, ,
the DT
younger JJR
one CD
looks VBZ
like IN
a DT
novelist NN
. .

It PRP
is VBZ
evident JJ
that IN
their PRP$
conversation NN
runs VBZ
more JJR
or CC
less JJR
on IN
the DT
following VBG
lines NNS
: :
`` ``
I PRP
've VBP
submitted VBN
the DT
manuscript NN
of IN
my PRP$
novel NN
under IN
the DT
title NN
` ``
Teresa NNP
de FW
Cepeda NNP
, ,
' POS
and CC
in IN
it PRP
I PRP
've VBP
treated VBN
a DT
few RB
neglected VBN
aspects NNS
of IN
that DT
eternal JJ
problem NN
which WDT
... :
'' ''

`` ``
Oh UH
, ,
yes UH
. .

Will MD
you PRP
pour VB
me PRP
a DT
drop NN
of IN
water NN
, ,
if IN
you PRP
do VBP
n't RB
mind VB
? .
'' ''

`` ``
With IN
pleasure NN
. .

I PRP
've VBP
revised VBN
it PRP
several JJ
times NNS
and CC
I PRP
think VBP
I PRP
may MD
say VB
with IN
pride NN
that IN
there EX
is VBZ
not RB
a DT
single JJ
discordant JJ
word NN
in IN
the DT
whole JJ
text NN
. .
'' ''

`` ``
How WRB
interesting JJ
. .
'' ''

`` ``
I PRP
think VBP
so RB
. .

I PRP
do VBP
n't RB
know VB
the DT
quality NN
of IN
the DT
works NNS
my PRP$
colleagues NNS
have VBP
sent VBN
in IN
, ,
but CC
in IN
any DT
case NN
I PRP
feel VBP
confident JJ
that IN
good JJ
sense NN
and CC
honest JJ
judgment NN
... :
'' ''

`` ``
Rest VB
assured VBN
, ,
we PRP
proceed VBP
with IN
exemplary JJ
fairness NN
. .
'' ''

`` ``
I PRP
do VBP
n't RB
doubt VB
it PRP
for IN
a DT
moment NN
. .

It PRP
does VBZ
not RB
matter VB
if IN
one CD
is VBZ
defeated VBN
, ,
provided VBD
the DT
work NN
that WDT
gets VBZ
the DT
award NN
has VBZ
unmistakable JJ
qualities NNS
. .

What WP
's VBZ
so RB
discouraging VBG
is VBZ
... :
'' ''

In IN
passing VBG
the DT
window NN
, ,
Senorita NNP
Elvira NNP
gives VBZ
them PRP
a DT
smile NN
-- :
simply RB
out IN
of IN
habit NN
. .

Ashland NNP
Oil NNP
Inc. NNP
said VBD
it PRP
will MD
take VB
after-tax JJ
charges NNS
of IN
$ $
78 CD
million CD
, ,
or CC
$ $
1.40 CD
a DT
share NN
, ,
in IN
its PRP$
fiscal JJ
fourth JJ
quarter NN
, ,
ended VBN
Sept. NNP
30 CD
. .

Because IN
of IN
the DT
charge NN
, ,
Ashland NNP
expects VBZ
to TO
report VB
a DT
loss NN
for IN
the DT
fourth JJ
quarter NN
and CC
`` ``
significantly RB
lower JJR
results NNS
'' ''
for IN
fiscal JJ
1989 CD
. .

The DT
oil NN
refiner NN
said VBD
it PRP
will MD
report VB
fiscal JJ
fourth JJ
quarter NN
and CC
1989 CD
results NNS
next JJ
week NN
. .

The DT
company NN
earned VBD
$ $
66 CD
million CD
, ,
or CC
$ $
1.19 CD
a DT
share NN
, ,
on IN
revenue NN
of IN
$ $
2.1 CD
billion CD
in IN
the DT
year-ago JJ
fourth JJ
quarter NN
. .

For IN
fiscal JJ
1988 CD
, ,
Ashland NNP
had VBD
net NN
of IN
$ $
224 CD
million CD
, ,
or CC
$ $
4.01 CD
a DT
share NN
, ,
on IN
revenue NN
of IN
$ $
7.8 CD
billion CD
. .

Both DT
revenue NN
figures NNS
exclude VBP
excise NN
taxes NNS
. .

The DT
charges NNS
consist VBP
of IN
: :
a DT
$ $
25 CD
million CD
after-tax JJ
charge NN
to TO
cover VB
cost NN
overruns NNS
in IN
Ashland NNP
's POS
Riley NNP
Consolidated NNP
subsidiary NN
; :
a DT
previously RB
announced VBN
$ $
38 CD
million CD
after-tax JJ
charge NN
resulting VBG
from IN
a DT
$ $
325 CD
million CD
settlement NN
with IN
National NNP
Iranian NNP
Oil NNP
Co. NNP
and CC
a DT
$ $
15 CD
million CD
after-tax JJ
charge NN
from IN
the DT
previously RB
announced VBN
sale NN
of IN
its PRP$
Ashland NNP
Technology NNP
Corp. NNP
subsidiary NN
. .

Ashland NNP
expects VBZ
that DT
sale NN
to TO
be VB
complete JJ
next JJ
year NN
. .

The DT
charge NN
for IN
the DT
Riley NNP
subsidiary NN
is VBZ
for IN
expected VBN
costs NNS
to TO
correct VB
problems NNS
with IN
certain JJ
bed NN
boilers NNS
built VBN
for IN
utilities NNS
. .

The DT
charge NN
will MD
be VB
added VBN
to TO
$ $
20 CD
million CD
in IN
reserves NNS
established VBD
a DT
year NN
ago RB
to TO
cover VB
the DT
cost NN
overruns NNS
. .

When WRB
President NNP
Bush NNP
arrives VBZ
here RB
next JJ
week NN
for IN
a DT
hemispheric JJ
summit NN
organized VBN
to TO
commemorate VB
a DT
century NN
of IN
Costa NNP
Rican JJ
democracy NN
, ,
will MD
he PRP
be VB
able JJ
to TO
deliver VB
a DT
credible JJ
message NN
in IN
the DT
wake NN
of IN
the DT
Panamanian JJ
fiasco NN
? .

Undoubtedly RB
Mr. NNP
Bush NNP
will MD
be VB
praised VBN
by IN
some DT
Latin NNP
leaders NNS
prone JJ
to TO
pay VB
lip NN
service NN
to TO
nonintervention NN
, ,
while IN
they PRP
privately RB
encourage VBP
more RBR
assertive JJ
U.S. NNP
action NN
to TO
remove VB
Gen. NNP
Manuel NNP
Noriega NNP
and CC
safeguard VB
their PRP$
countries NNS
from IN
a DT
Sandinista NNP
onslaught NN
. .

The DT
Panamanian JJ
affair NN
is VBZ
only RB
the DT
tip NN
of IN
a DT
more RBR
alarming JJ
iceberg NN
. .

It PRP
originates VBZ
in IN
a DT
Bush NNP
administration NN
decision NN
not RB
to TO
antagonize VB
the DT
U.S. NNP
Congress NNP
and CC
avoid VB
, ,
at IN
all DT
costs NNS
, ,
being VBG
accused VBN
of IN
meddling VBG
in IN
the DT
region NN
. .

The DT
result NN
has VBZ
been VBN
a DT
dangerous JJ
vacuum NN
of IN
U.S. NNP
leadership NN
, ,
which WDT
leaves VBZ
Central NNP
America NNP
open JJ
to TO
Soviet JJ
adventurism NN
. .

`` ``
The DT
-LCB- (
influence NN
of IN
the DT
-RCB- )
U.S. NNP
is VBZ
not RB
being VBG
felt VBN
in IN
Central NNP
America NNP
; :
Washington NNP
's POS
decisions NNS
do VBP
not RB
respond VB
to TO
a DT
policy NN
, ,
and CC
are VBP
divorced VBN
from IN
reality NN
, ,
'' ''
says VBZ
Fernando NNP
Volio NNP
, ,
a DT
Costa NNP
Rican JJ
congressman NN
and CC
former JJ
foreign JJ
minister NN
. .

The DT
disarray NN
of IN
the DT
Bush NNP
administration NN
's POS
Latin NNP
diplomacy NN
was VBD
evident JJ
in IN
the DT
failure NN
of IN
the DT
Organization NNP
of IN
American NNP
States NNPS
to TO
condemn VB
categorically RB
Gen. NNP
Noriega NNP
. .

Faced VBN
with IN
this DT
embarrassment NN
, ,
U.S. NNP
diplomats NNS
expressed VBD
confidence NN
that IN
the DT
influential JJ
Rio NNP
Group NNP
of IN
South JJ
American JJ
nations NNS
, ,
which WDT
gathered VBD
last JJ
week NN
in IN
Peru NNP
, ,
would MD
take VB
a DT
stronger JJR
posture NN
toward IN
the DT
Panamanian JJ
dictator NN
. .

But CC
other JJ
than IN
a DT
few JJ
slaps NNS
on IN
the DT
wrist NN
, ,
Gen. NNP
Noriega NNP
went VBD
unpunished JJ
by IN
that DT
body NN
, ,
too RB
; :
he PRP
was VBD
not RB
even RB
singled VBD
out IN
in IN
the DT
closing VBG
statement NN
. .

Now RB
Mr. NNP
Bush NNP
will MD
come VB
to TO
Costa NNP
Rica NNP
and CC
encounter NN
Nicaraguan JJ
strongman NN
Daniel NNP
Ortega NNP
, ,
eager JJ
for IN
photo NN
opportunities NNS
with IN
the DT
U.S. NNP
president NN
. .

The DT
host NN
, ,
Costa NNP
Rican NNP
President NNP
Oscar NNP
Arias NNP
, ,
did VBD
not RB
invite VB
Chile NNP
, ,
Cuba NNP
, ,
Panama NNP
or CC
Haiti NNP
to TO
the DT
summit NN
, ,
which WDT
was VBD
to TO
be VB
restricted VBN
to TO
democracies NNS
. .

However RB
, ,
Mr. NNP
Ortega NNP
was VBD
included VBN
. .

Formally RB
upgrading VBG
the DT
Sandinistas NNPS
to TO
a DT
democratic JJ
status NN
was VBD
an DT
initiative NN
harshly RB
criticized VBD
in IN
the DT
Costa NNP
Rican JJ
press NN
. .

Even RB
Carlos NNP
Manuel NNP
Castillo NNP
-- :
the DT
presidential JJ
candidate NN
for IN
Mr. NNP
Arias NNP
's POS
National NNP
Liberation NNP
Party NNP
-- :
made VBN
public JJ
his PRP$
opposition NN
to TO
the DT
presence NN
of IN
Nicaragua NNP
`` ``
in IN
a DT
democratic JJ
festivity NN
. .
'' ''

Nevertheless RB
, ,
the DT
Bush NNP
administration NN
agreed VBD
to TO
the DT
dubious JJ
arrangement NN
in IN
July NNP
, ,
a DT
few JJ
weeks NNS
before IN
the DT
Central NNP
American JJ
presidents NNS
met VBD
in IN
Tela NNP
, ,
Honduras NNP
, ,
to TO
discuss VB
a DT
timetable NN
for IN
disbanding VBG
the DT
anti-Sandinista JJ
rebels NNS
. .
According VBG
to TO
officials NNS
in IN
Washington NNP
, ,
the DT
State NNP
Department NNP
hoped VBD
that IN
by IN
pleasing JJ
President NNP
Arias NNP
, ,
it PRP
would MD
gain VB
his PRP$
support NN
to TO
postpone VB
any DT
decision NN
on IN
the DT
Contras NNPS
until IN
after IN
Mr. NNP
Ortega NNP
's POS
promises NNS
of IN
democratic JJ
elections NNS
were VBD
tested VBN
next JJ
February NNP
. .

However RB
, ,
relying VBG
on IN
an DT
ardent JJ
critic NN
of IN
the DT
Reagan NNP
administration NN
and CC
the DT
Contra NNP
movement NN
for IN
help NN
in IN
delaying VBG
the DT
disarming VBG
of IN
the DT
Contras NNPS
was VBD
risky JJ
business NN
. .

And CC
even RB
some DT
last-minute JJ
phone NN
calls NNS
that IN
Mr. NNP
Bush NNP
made VBD
-LRB- (
at IN
the DT
behest NN
of IN
some DT
conservative JJ
U.S. NNP
senators NNS
-RRB- )
to TO
enlist VB
backing VBG
for IN
the DT
U.S. NNP
position NN
failed VBD
to TO
stop VB
the DT
march NN
of IN
Mr. NNP
Arias NNP
's POS
agenda NN
. .

Prior RB
to TO
this DT
episode NN
, ,
Sen. NNP
Christopher NNP
Dodd NNP
-LRB- (
D. NNP
, ,
Conn. NNP
-RRB- )
, ,
sensing VBG
an DT
open JJ
field NN
, ,
undertook VBD
a DT
personal JJ
diplomatic JJ
mission NN
through IN
Central NNP
America NNP
to TO
promote VB
an DT
early JJ
disbanding NN
of IN
the DT
rebels NNS
. .

Visiting VBG
Nicaragua NNP
, ,
he PRP
praised VBD
the DT
Sandinistas NNPS
for IN
their PRP$
electoral JJ
system NN
and CC
chided VBD
the DT
Bush NNP
administration NN
for IN
not RB
rewarding JJ
the DT
Sandinistas NNPS
. .

In IN
Honduras NNP
, ,
where WRB
the DT
Contras NNPS
are VBP
a DT
hot JJ
political JJ
issue NN
, ,
he PRP
promised VBD
to TO
help VB
unblock VB
some DT
$ $
70 CD
million CD
in IN
assistance NN
withheld VBD
due JJ
to TO
the DT
failure NN
of IN
local JJ
agencies NNS
to TO
comply VB
with IN
conditions NNS
agreed VBD
upon IN
with IN
Washington NNP
. .

Aid NNP
was VBD
also RB
the DT
gist NN
of IN
the DT
talks NNS
Sen. NNP
Dodd NNP
had VBD
with IN
Salvadoran NNP
President NNP
Alfredo NNP
Cristiani NNP
; :
Mr. NNP
Cristiani NNP
's POS
government NN
is VBZ
very RB
much RB
at IN
the DT
mercy NN
of IN
U.S. NNP
largess NN
and CC
is VBZ
forced VBN
to TO
listen VB
very RB
carefully RB
to TO
Sen. NNP
Dodd NNP
's POS
likes VBZ
and CC
dislikes VBZ
. .

It PRP
was VBD
therefore RB
not RB
surprising JJ
that WDT
close VBP
allies NNS
of IN
the DT
U.S. NNP
, ,
virtually RB
neglected VBN
by IN
the DT
Bush NNP
administration NN
, ,
ordered VBD
the DT
Nicaraguan JJ
insurgents NNS
dismantled VBN
by IN
December NNP
, ,
long RB
before IN
the DT
elections NNS
. .

Fittingly RB
, ,
the DT
Tela NNP
Accords NNPS
were VBD
nicknamed VBN
by IN
Hondurans NNS
`` ``
the DT
Dodd NNP
plan NN
. .
'' ''

The DT
individual JJ
foreign JJ
policy NN
carried VBD
out IN
by IN
U.S. NNP
legislators NNS
adds VBZ
to TO
a DT
confusing JJ
U.S. NNP
performance NN
that WDT
has VBZ
emboldened VBN
Soviet JJ
initiatives NNS
in IN
Central NNP
America NNP
. .

On IN
Oct. NNP
3 CD
, ,
following VBG
conversations NNS
with IN
Secretary NNP
of IN
State NNP
James NNP
Baker NNP
, ,
Soviet NNP
Foreign NNP
Minister NNP
Eduard NNP
Shevardnadze NNP
arrived VBD
in IN
Managua NNP
to TO
acclaim VB
`` ``
Nicaragua NNP
's POS
great JJ
peace NN
efforts NNS
. .
'' ''

There EX
, ,
Mr. NNP
Shevardnadze NNP
felt VBD
legitimized VBN
to TO
unveil VB
his PRP$
own JJ
peace NN
plan NN
: :
The DT
U.S.S.R. NNP
would MD
prolong VB
a DT
suspension NN
of IN
arms NNS
shipments NNS
to TO
Nicaragua NNP
after IN
the DT
February NNP
election NN
if IN
the DT
U.S. NNP
did VBD
likewise RB
with IN
its PRP$
allies NNS
in IN
Central NNP
America NNP
. .

He PRP
also RB
called VBD
on IN
Nicaragua NNP
's POS
neighbors NNS
to TO
accept VB
a DT
`` ``
military JJ
equilibrium NN
'' ''
guaranteed VBN
by IN
both DT
superpowers NNS
. .

The DT
Pentagon NNP
claims NNS
that IN
in IN
spite NN
of IN
Moscow NNP
's POS
words NNS
, ,
East NNP
bloc NN
weapons NNS
continue VBP
to TO
flow VB
into IN
Nicaragua NNP
through IN
Cuba NNP
at IN
near-record JJ
levels NNS
. .

Since IN
Mr. NNP
Shevardnadze NNP
's POS
proposals NNS
followed VBD
discussions NNS
with IN
Mr. NNP
Baker NNP
, ,
speculations NNS
arose VBD
that IN
the DT
Bush NNP
administration NN
was VBD
seeking VBG
an DT
accommodation NN
with IN
the DT
Soviets NNPS
in IN
Central NNP
America NNP
. .

This DT
scheme NN
would MD
fit VB
the DT
Arias NNP
Plan NNP
, ,
which WDT
declared VBD
a DT
false JJ
symmetry NN
between IN
Soviet JJ
military JJ
aid NN
to TO
the DT
Sandinista NNP
dictatorship NN
and CC
that DT
provided VBD
by IN
Washington NNP
to TO
freely RB
elected VBN
governments NNS
. .

Furthermore RB
, ,
it PRP
is VBZ
also RB
likely JJ
to TO
encourage VB
those DT
on IN
Capitol NNP
Hill NNP
asking VBG
for IN
cuts NNS
in IN
the DT
assistance NN
to TO
El NNP
Salvador NNP
if IN
President NNP
Cristiani NNP
does VBZ
not RB
bend VB
to TO
demands NNS
of IN
the DT
Marxist JJ
guerrillas NNS
. .

The DT
sad JJ
condition NN
of IN
U.S. NNP
policy NN
in IN
Central NNP
America NNP
is VBZ
best RBS
depicted VBN
by IN
the DT
recent JJ
end NN
to TO
U.S. NNP
sponsorship NN
of IN
Radio NNP
Costa NNP
Rica NNP
. .

In IN
1984 CD
, ,
the DT
Costa NNP
Rican JJ
government NN
requested VBD
help VB
to TO
establish VB
a DT
radio NN
station NN
in IN
the DT
northern JJ
part NN
of IN
the DT
country NN
, ,
flooded VBN
by IN
airwaves NNS
of IN
Sandinista NNP
propaganda NN
. .

Recovering VBG
radiophonic JJ
sovereignty NN
was VBD
the DT
purpose NN
of IN
Radio NNP
Costa NNP
Rica NNP
, ,
funded VBN
by IN
the DT
U.S. NNP
and CC
affiliated VBN
with IN
the DT
Voice NNP
of IN
America NNP
-LRB- (
VOA NNP
-RRB- )
. .

A DT
few JJ
months NNS
ago RB
, ,
the DT
Bush NNP
administration NN
decided VBD
to TO
stop VB
this DT
cooperation NN
, ,
leaving VBG
Radio NNP
Costa NNP
Rica NNP
operating VBG
on IN
a DT
shoestring NN
. .

According VBG
to TO
news NN
reports NNS
, ,
the DT
abrupt JJ
termination NN
was VBD
due JJ
to TO
fears NNS
that IN
VOA NNP
transmissions NNS
could MD
interfere VB
with IN
the DT
peace NN
process NN
. .

In IN
the DT
meantime NN
, ,
Russia NNP
gave VBD
Nicaragua NNP
another DT
powerful JJ
radio NN
transmitter NN
, ,
which WDT
has VBZ
been VBN
installed VBN
in IN
the DT
city NN
of IN
Esteli NNP
. .

It PRP
is VBZ
capable JJ
of IN
reaching VBG
the DT
entire JJ
Caribbean NNP
area NN
and CC
deep JJ
into IN
North NNP
America NNP
. .

Perhaps RB
its PRP$
loud JJ
signal NN
may MD
generate VB
some DT
awareness NN
of IN
the DT
Soviet JJ
condominium NN
being VBG
created VBN
in IN
the DT
isthmus NN
thanks NNS
to TO
U.S. NNP
default NN
. .

The DT
Soviet JJ
entrenchment NN
in IN
Nicaragua NNP
is VBZ
alarming JJ
for IN
Costa NNP
Rica NNP
, ,
a DT
peaceful JJ
democracy NN
without IN
an DT
army NN
. .

Questioned VBN
in IN
Washington NNP
about IN
what WP
would MD
happen VB
if IN
his PRP$
much-heralded JJ
peace NN
plan NN
would MD
fail VB
, ,
President NNP
Arias NNP
voiced VBD
expectations NNS
of IN
direct JJ
U.S. NNP
action NN
. .

A DT
poll NN
conducted VBN
in IN
July NNP
by IN
a DT
Gallup NNP
affiliate NN
showed VBD
that IN
64 CD
% NN
of IN
Costa NNP
Ricans NNS
believe VBP
that IN
if IN
their PRP$
country NN
is VBZ
militarily RB
attacked VBN
by IN
either DT
Nicaragua NNP
or CC
Panama NNP
, ,
the DT
U.S. NNP
will MD
come VB
to TO
its PRP$
defense NN
. .

But CC
in IN
the DT
light NN
of IN
events NNS
in IN
Panama NNP
, ,
where WRB
the DT
U.S. NNP
has VBZ
such JJ
clear JJ
strategic JJ
interests NNS
, ,
waiting VBG
for IN
the DT
Delta NNP
Force NNP
may MD
prove VB
to TO
be VB
a DT
dangerous JJ
gambit NN
. .

Mr. NNP
Daremblum NNP
is VBZ
a DT
lawyer NN
and CC
a DT
columnist NN
for IN
La NNP
Nacion NNP
newspaper NN
. .

Holiday NNP
Corp. NNP
said VBD
net JJ
income NN
jumped VBD
89 CD
% NN
, ,
partly RB
on IN
the DT
strength NN
of IN
record NN
operating VBG
income NN
in IN
its PRP$
gaming NN
division NN
. .

Separately RB
, ,
the DT
hotel NN
and CC
gambling NN
giant NN
said VBD
it PRP
was VBD
proceeding VBG
with IN
plans NNS
to TO
make VB
a DT
tender NN
offer NN
and CC
solicit VB
consents NNS
with IN
respect NN
to TO
approximately RB
$ $
1.4 CD
billion CD
of IN
its PRP$
publicly RB
traded VBN
debt NN
. .

That DT
debt NN
is VBZ
part NN
of IN
the DT
$ $
2.1 CD
billion CD
of IN
Holiday NNP
debt NN
that IN
Bass NNP
PLC NNP
of IN
Britain NNP
said VBD
it PRP
would MD
retire VB
or CC
assume VB
when WRB
it PRP
agreed VBD
to TO
buy VB
the DT
Holiday NNP
Inn NNP
business NN
in IN
August NNP
. .

Holiday NNP
said VBD
third-quarter JJ
earnings NNS
rose VBD
to TO
$ $
39.8 CD
million CD
, ,
or CC
$ $
1.53 CD
a DT
share NN
, ,
from IN
$ $
21 CD
million CD
, ,
or CC
84 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Results NNS
for IN
the DT
quarter NN
included VBD
$ $
19.2 CD
million CD
in IN
pretax JJ
gains NNS
from IN
property NN
transactions NNS
, ,
including VBG
the DT
sale NN
of IN
one CD
Embassy NNP
Suites NNPS
hotel NN
, ,
and CC
$ $
3.5 CD
million CD
of IN
nonrecurring VBG
costs NNS
associated VBN
with IN
the DT
acquisition NN
of IN
the DT
Holiday NNP
Inn NNP
business NN
by IN
Bass NNP
. .

Holiday NNP
said VBD
operating VBG
income NN
related VBN
to TO
gaming NN
increased VBN
4.5 CD
% NN
to TO
a DT
record NN
$ $
61.4 CD
million CD
from IN
$ $
58.8 CD
million CD
a DT
year NN
earlier RBR
. .
The DT
jump NN
reflected VBD
record NN
results NNS
in IN
Las NNP
Vegas NNP
, ,
Nev. NNP
, ,
and CC
Atlantic NNP
City NNP
, ,
N.J. NNP
, ,
as RB
well RB
as IN
a DT
full JJ
quarter NN
's POS
results NNS
from IN
Harrah NNP
's POS
Del NNP
Rio NNP
in IN
Laughlin NNP
, ,
Nev NNP
. .

Third-quarter JJ
revenue NN
rose VBD
2.7 CD
% NN
to TO
$ $
433.5 CD
million CD
from IN
$ $
422.1 CD
million CD
. .

For IN
the DT
nine CD
months NNS
, ,
earnings NNS
fell VBD
2.9 CD
% NN
to TO
$ $
99.1 CD
million CD
, ,
or CC
$ $
3.86 CD
a DT
share NN
, ,
from IN
$ $
102.1 CD
million CD
, ,
or CC
$ $
4.10 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Revenue NN
dropped VBD
1.6 CD
% NN
to TO
$ $
1.21 CD
billion CD
from IN
$ $
1.23 CD
billion CD
. .

The DT
tender NN
offer NN
and CC
consent NN
solicitation NN
will MD
be VB
made VBN
to TO
debtholders NNS
in IN
December NNP
. .

In IN
effect NN
, ,
Holiday NNP
is VBZ
asking VBG
holders NNS
for IN
permission NN
for IN
Bass NNP
to TO
buy VB
their PRP$
debt NN
. .

Holiday NNP
said VBD
Salomon NNP
Brothers NNP
Inc. NNP
has VBZ
been VBN
retained VBN
to TO
act VB
as IN
the DT
dealer-manager NN
and CC
financial JJ
adviser NN
in IN
connection NN
with IN
the DT
offer NN
and CC
solicitation NN
. .

The DT
debt NN
issues NNS
involved VBN
and CC
the DT
proposed VBN
consent NN
fees NNS
and CC
cash NN
tender NN
offer NN
prices NNS
-LRB- (
expressed VBN
per IN
$ $
1,000 CD
of IN
principal JJ
amount NN
-RRB- )
are VBP
as IN
follows VBZ
: :
10 CD
1\/2 CD
% NN
senior JJ
notes NNS
due JJ
1994 CD
at IN
101 CD
% NN
; :
11 CD
% NN
subordinated VBD
debt NN
due JJ
1999 CD
at IN
102 CD
% NN
; :
9 CD
3\/8 CD
% NN
notes NNS
due JJ
1993 CD
at IN
100 CD
% NN
; :
and CC
8 CD
3\/8 CD
% NN
notes NNS
due JJ
1996 CD
at IN
95.25 CD
% NN
. .

Holiday NNP
said VBD
its PRP$
15 CD
% NN
notes NNS
due JJ
1992 CD
also RB
will MD
be VB
included VBN
in IN
the DT
tender NN
offer NN
and CC
consent NN
solicitation NN
at IN
a DT
price NN
to TO
be VB
determined VBN
by IN
Holiday NNP
prior RB
to TO
the DT
commencement NN
of IN
the DT
offer NN
. .

The DT
television NN
units NNS
of IN
Paramount NNP
Communications NNP
Inc. NNP
and CC
MCA NNP
Inc. NNP
are VBP
exploring VBG
the DT
possibility NN
of IN
offering NN
prime-time JJ
programming NN
to TO
independent JJ
stations NNS
two CD
nights NNS
a DT
week NN
, ,
industry NN
executives NNS
say VBP
. .
Although IN
such JJ
a DT
venture NN
would MD
n't RB
match VB
the DT
`` ``
fourth JJ
network NN
'' ''
created VBN
by IN
News NNP
Corp. NNP
's POS
Fox NNP
Broadcasting NNP
Co. NNP
, ,
MCA NNP
and CC
Paramount NNP
may MD
have VB
similar JJ
ambitions NNS
. .

Fox NNP
, ,
which WDT
also RB
owns VBZ
six CD
TV NN
stations NNS
, ,
provides VBZ
programs NNS
three CD
nights NNS
a DT
week NN
to TO
those DT
and CC
other JJ
affiliates NNS
. .

Paramount NNP
Domestic JJ
TV NN
and CC
MCA NNP
TV NN
formed VBD
a DT
joint JJ
venture NN
last JJ
month NN
, ,
named VBN
Premier NNP
Advertiser NNP
Sales NNS
, ,
to TO
sell VB
advertising NN
in IN
programs NNS
syndicated VBN
by IN
both DT
companies NNS
, ,
such JJ
as IN
`` ``
Star NNP
Trek NNP
: :
the DT
Next NNP
Generation NNP
, ,
'' ''
`` ``
Charles NNP
in IN
Charge NNP
'' ''
and CC
`` ``
Friday NNP
the DT
13th JJ
: :
the DT
Series NNP
. .
'' ''

A DT
spokeswoman NN
for IN
Paramount NNP
said VBD
the DT
company NN
does VBZ
n't RB
comment VB
on IN
speculation NN
. .

Calls NNS
to TO
Shelly NNP
Schwab NNP
, ,
president NN
of IN
MCA NNP
TV NN
, ,
were VBD
n't RB
returned VBN
. .

The DT
two CD
companies NNS
, ,
like IN
Fox NNP
, ,
already RB
have VBP
their PRP$
own JJ
TV NN
stations NNS
. .

MCA NNP
owns VBZ
WWOR NNP
in IN
New NNP
York NNP
and CC
Paramount NNP
last JJ
month NN
agreed VBD
to TO
purchase VB
a DT
79 CD
% NN
stake NN
in IN
the DT
TVX NNP
Broadcast NNP
Group NNP
from IN
Salomon NNP
Inc. NNP
in IN
a DT
deal NN
valued VBN
at IN
$ $
140 CD
million CD
. .

TVX NNP
owns VBZ
five CD
stations NNS
, ,
including VBG
WTXF NNP
, ,
a DT
Fox NNP
affiliate NN
, ,
in IN
Philadelphia NNP
. .

One CD
broadcasting NN
executive NN
familiar JJ
with IN
the DT
project NN
said VBD
the DT
co-venture NN
would MD
target VB
stations NNS
affiliated VBN
with IN
Fox NNP
because IN
Fox NNP
has VBZ
the DT
desirable JJ
independent JJ
stations NNS
in IN
most RBS
of IN
the DT
key JJ
cities NNS
. .

Currently RB
, ,
Fox NNP
supplies NNS
programs NNS
on IN
Saturdays NNPS
, ,
Sundays NNPS
and CC
Mondays NNPS
, ,
although IN
the DT
company NN
plans NNS
to TO
expand VB
to TO
other JJ
weeknights NNS
. .

Jamie NNP
Kellner NNP
, ,
president NN
of IN
Fox NNP
Broadcasting NNP
, ,
said VBD
, ,
`` ``
We PRP
believe VBP
the DT
partnership NN
of IN
Fox NNP
, ,
its PRP$
affiliates NNS
and CC
advertisers NNS
is VBZ
succeeding VBG
and CC
will MD
continue VB
to TO
grow VB
. .
'' ''

Another DT
Fox NNP
official NN
, ,
who WP
declined VBD
to TO
be VB
identified VBN
, ,
said VBD
Fox NNP
was VBD
n't RB
pleased VBN
by IN
the DT
possible JJ
Paramount-MCA JJ
venture NN
into IN
prime-time JJ
programming NN
. .

`` ``
To TO
make VB
the DT
venture NN
work NN
, ,
they PRP
would MD
need VB
Fox NNP
affiliates NNS
, ,
'' ''
he PRP
said VBD
. .

`` ``
We PRP
spent VBD
a DT
lot NN
of IN
time NN
and CC
money NN
in IN
building VBG
our PRP$
group NN
of IN
stations NNS
, ,
'' ''
he PRP
said VBD
, ,
adding VBG
that IN
Fox NNP
does VBZ
n't RB
`` ``
appreciate VB
'' ''
another DT
company NN
attempting VBG
to TO
usurp VB
its PRP$
station NN
lineup NN
. .

Fox NNP
said VBD
it PRP
plans VBZ
to TO
offer VB
its PRP$
stations NNS
movies NNS
, ,
theatrical JJ
and CC
made-for-TV JJ
ventures NNS
, ,
probably RB
on IN
Wednesdays NNS
, ,
sometime RB
next JJ
year NN
. .

It PRP
is VBZ
also RB
planning VBG
another DT
night NN
of IN
original JJ
series NN
. .

Paramount NNP
and CC
MCA NNP
, ,
according VBG
to TO
the DT
broadcasting NN
executive NN
, ,
plan NN
to TO
offer VB
theatrical JJ
movies NNS
produced VBN
separately RB
by IN
Paramount NNP
and CC
MCA NNP
for IN
Wednesdays NNS
and CC
perhaps RB
a DT
block NN
of IN
original JJ
shows NNS
Fridays NNPS
. .

The DT
executive NN
said VBD
Paramount NNP
and CC
MCA NNP
have VBP
also RB
held VBN
discussions NNS
with IN
Chris-Craft NNP
Industries NNPS
' POS
broadcasting NN
unit NN
, ,
which WDT
owns VBZ
five CD
independent JJ
stations NNS
in IN
cities NNS
such JJ
as IN
Los NNP
Angeles NNP
, ,
San NNP
Francisco NNP
and CC
Portland NNP
, ,
Ore NNP
. .

A DT
Chris-Craft NNP
station NN
manager NN
said VBD
there EX
have VBP
been VBN
no DT
formal JJ
talks NNS
. .

`` ``
I PRP
think VBP
it PRP
's VBZ
to TO
Fox NNP
's POS
advantage NN
to TO
be VB
associated VBN
with IN
the DT
Paramount-MCA JJ
venture NN
, ,
'' ''
said VBD
Michael NNP
Conway NNP
, ,
station NN
manager NN
of IN
WTXF NNP
, ,
the DT
TVX NNP
station NN
that WDT
is VBZ
a DT
Fox NNP
affiliate NN
. .

Mr. NNP
Conway NNP
said VBD
the DT
Fox NNP
shows VBZ
appearing VBG
on IN
nights NNS
when WRB
Paramount-MCA JJ
shows NNS
would MD
n't RB
be VB
offered VBN
could MD
be VB
promoted VBN
on IN
the DT
programs NNS
produced VBN
by IN
Paramount-MCA JJ
. .

Michael NNP
Fisher NNP
, ,
general JJ
manager NN
of IN
KTXL NNP
, ,
a DT
Fox NNP
affiliate NN
in IN
Sacramento NNP
, ,
Calif. NNP
, ,
said VBD
, ,
`` ``
The DT
real JJ
question NN
is VBZ
whether IN
the DT
Paramount-MCA JJ
offering NN
is VBZ
practical JJ
. .

It PRP
is VBZ
n't RB
... :
. .

Why WRB
would MD
I PRP
consider VB
giving VBG
up IN
Fox NNP
, ,
a DT
proven VBN
commodity NN
, ,
'' ''
for IN
an DT
unknown JJ
venture NN
? .

Fox NNP
attracts VBZ
a DT
young JJ
audience NN
with IN
shows VBZ
such JJ
as IN
`` ``
Married VBN
... :
With IN
Children NNS
, ,
'' ''
its PRP$
most RBS
successful JJ
series NN
. .

Banco NNP
Popular NNP
de FW
Puerto NNP
Rico NNP
and CC
BanPonce NNP
Corp. NNP
-- :
agreed VBD
to TO
merge VB
in IN
a DT
transaction NN
valued VBN
at IN
$ $
324 CD
million CD
. .

Under IN
the DT
agreement NN
, ,
BanPonce NNP
stockholders NNS
will MD
be VB
able JJ
to TO
exchange VB
each DT
of IN
their PRP$
shares NNS
for IN
either DT
shares NNS
in IN
the DT
new JJ
entity NN
or CC
cash NN
. .

In IN
each DT
case NN
, ,
the DT
exchange NN
is VBZ
valued VBN
at IN
$ $
56.25 CD
a DT
share NN
. .

The DT
two CD
companies NNS
, ,
both DT
based VBN
in IN
San NNP
Juan NNP
, ,
will MD
form VB
a DT
bank NN
holding VBG
company NN
with IN
assets NNS
of IN
just RB
over IN
$ $
9 CD
billion CD
. .

The DT
holding VBG
company NN
will MD
be VB
called VBN
BanPonce NNP
Corp NNP
. .

The DT
primary JJ
subsidiary NN
will MD
be VB
the DT
combined VBN
banking NN
operations NNS
of IN
the DT
two CD
companies NNS
and CC
will MD
be VB
known VBN
as IN
Banco NNP
Popular NNP
de FW
Puerto NNP
Rico NNP
. .

Rafael NNP
Carrion NNP
Jr. NNP
, ,
chairman NN
of IN
Banco NNP
Popular NNP
, ,
will MD
be VB
the DT
chairman NN
of IN
the DT
holding VBG
company NN
. .

Alberto NNP
M. NNP
Paracchini NNP
, ,
currently JJ
chairman NN
of IN
BanPonce NNP
, ,
will MD
serve VB
as IN
president NN
of IN
the DT
bank NN
holding VBG
company NN
and CC
chairman NN
of IN
the DT
subsidiary NN
. .

Banco NNP
Popular NNP
originally RB
proposed VBD
the DT
merger NN
in IN
July NNP
, ,
in IN
a DT
cash NN
and CC
stock NN
transaction NN
valued VBN
at IN
$ $
50 CD
a DT
share NN
, ,
or CC
about RB
$ $
293 CD
million CD
. .
BanPonce NNP
reacted VBD
cooly RB
at IN
first JJ
, ,
but CC
appeared VBD
to TO
be VB
won VBN
over IN
, ,
analysts NNS
said VBD
, ,
by IN
Banco NNP
Popular NNP
's POS
assurances NNS
that IN
it PRP
wanted VBD
only RB
a DT
friendly JJ
transaction NN
. .

`` ``
Banco NNP
Popular NNP
just RB
kept VBD
waiting VBG
, ,
'' ''
said VBD
Edward NNP
Thompson NNP
, ,
a DT
vice NN
president NN
and CC
analyst NN
at IN
Thomson NNP
BankWatch NNP
Inc. NNP
in IN
New NNP
York NNP
. .

`` ``
They PRP
got VBD
a DT
transaction NN
that WDT
's VBZ
good JJ
for IN
both DT
companies NNS
. .
'' ''

The DT
two CD
banks NNS
appear VBP
to TO
be VB
a DT
good JJ
fit NN
. .

BanPonce NNP
caters VBZ
to TO
a DT
more RBR
affluent JJ
customer NN
, ,
while IN
Banco NNP
Popular NNP
has VBZ
always RB
had VBN
a DT
large JJ
presence NN
among IN
middle-income JJ
and CC
lower-income JJ
markets NNS
. .

The DT
merger NN
should MD
also RB
allow VB
the DT
companies NNS
to TO
reduce VB
costs NNS
by IN
combining VBG
operations NNS
in IN
many JJ
locations NNS
in IN
Puerto NNP
Rico NNP
. .

`` ``
They PRP
're VBP
often RB
right NN
across IN
the DT
street NN
from IN
one CD
another DT
, ,
'' ''
Mr. NNP
Thompson NNP
said VBD
. .

Richard NNP
Carrion NNP
, ,
who WP
is VBZ
currently JJ
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
Banco NNP
Popular NNP
, ,
said VBD
the DT
merger NN
will MD
result VB
in IN
a DT
`` ``
larger JJR
and CC
stronger RBR
locally RB
based VBN
bank NN
. .
'' ''
Mr. NNP
Carrion NNP
, ,
who WP
will MD
now RB
serve VB
as IN
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
the DT
subsidiary NN
bank NN
, ,
added VBD
: :
`` ``
We PRP
'll MD
be VB
able JJ
to TO
better JJR
compete VB
with IN
large JJ
foreign JJ
banks NNS
. .

It PRP
makes VBZ
sense NN
from IN
a DT
strategic JJ
standpoint NN
. .
'' ''

The DT
newly RB
merged VBN
company NN
will MD
have VB
165 CD
branches NNS
in IN
Puerto NNP
Rico NNP
and CC
27 CD
branches NNS
outside IN
of IN
the DT
island NN
. .

The DT
banks NNS
said VBD
they PRP
do VBP
n't RB
expect VB
the DT
merger NN
to TO
face VB
any DT
regulatory JJ
hurdles NNS
. .

Mr. NNP
Carrion NNP
said VBD
the DT
merger NN
should MD
be VB
completed VBN
in IN
six CD
to TO
nine CD
months NNS
. .

Hit VBN
by IN
higher JJR
costs NNS
and CC
lower JJR
sales NNS
, ,
Caterpillar NNP
Inc. NNP
said VBD
third-quarter JJ
earnings NNS
tumbled VBD
43 CD
% NN
and CC
full-year JJ
earnings NNS
will MD
trail VB
last JJ
year NN
's POS
results NNS
. .

The DT
construction NN
equipment NN
maker NN
said VBD
third-quarter JJ
profit NN
fell VBD
to TO
$ $
108 CD
million CD
, ,
or CC
$ $
1.07 CD
a DT
share NN
, ,
from IN
$ $
190 CD
million CD
, ,
or CC
$ $
1.87 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
dropped VBD
6 CD
% NN
to TO
$ $
2.58 CD
billion CD
from IN
$ $
2.74 CD
billion CD
, ,
reflecting VBG
eight CD
fewer JJR
business NN
days NNS
in IN
the DT
latest JJS
quarter NN
. .

The DT
company NN
, ,
which WDT
is VBZ
in IN
a DT
costly JJ
modernization NN
program NN
, ,
said VBD
earnings NNS
were VBD
hurt VBN
by IN
higher JJR
start-up JJ
and CC
new JJ
program NN
costs NNS
, ,
increased VBN
costs NNS
of IN
materials NNS
, ,
higher JJR
wages NNS
and CC
an DT
$ $
11 CD
million CD
provision NN
for IN
bad JJ
debts NNS
in IN
Latin NNP
America NNP
. .

In IN
announcing VBG
a DT
1989 CD
capital NN
spending NN
plan NN
of IN
$ $
950 CD
million CD
early JJ
this DT
year NN
, ,
Caterpillar NNP
said VBD
full-year JJ
earnings NNS
would MD
be VB
flat RB
compared VBN
with IN
last JJ
year NN
's POS
$ $
616 CD
million CD
, ,
or CC
$ $
6.07 CD
a DT
share NN
. .

But CC
yesterday NN
, ,
the DT
company NN
said VBD
this DT
year NN
's POS
profit NN
will MD
be VB
lower JJR
. .

It PRP
did VBD
n't RB
say VB
by IN
how WRB
much JJ
. .

Suffering VBG
from IN
a DT
downturn NN
in IN
heavy JJ
truck NN
production NN
that WDT
cut VBP
orders NNS
for IN
its PRP$
engines NNS
, ,
Caterpillar NNP
also RB
said VBD
it PRP
will MD
indefinitely RB
lay VB
off IN
about IN
325 CD
workers NNS
in IN
the DT
Peoria NNP
area NN
and CC
temporarily RB
shut VBN
its PRP$
plant NN
in IN
York NNP
, ,
Pa. NNP
, ,
for IN
two CD
weeks NNS
in IN
both DT
November NNP
and CC
December NNP
. .

For IN
the DT
first JJ
nine CD
months NNS
of IN
the DT
year NN
, ,
Caterpillar NNP
said VBD
earnings NNS
fell VBD
14 CD
% NN
to TO
$ $
390 CD
million CD
, ,
or CC
$ $
3.85 CD
a DT
share NN
, ,
from IN
$ $
453 CD
million CD
, ,
or CC
$ $
4.46 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
rose VBD
to TO
$ $
8.19 CD
billion CD
from IN
$ $
7.65 CD
billion CD
. .

Millicom NNP
Inc. NNP
said VBD
it PRP
is VBZ
one CD
of IN
two CD
companies NNS
to TO
receive VB
a DT
license NN
to TO
introduce VB
and CC
operate VB
a DT
cellular JJ
mobile JJ
telephone NN
system NN
in IN
Pakistan NNP
. .

The DT
market NN
during IN
the DT
start-up NN
is VBZ
estimated VBN
at IN
25,000 CD
subscribers NNS
. .

A DT
spokeswoman NN
for IN
Millicom NNP
, ,
a DT
telecommunications NNS
company NN
, ,
said VBD
she PRP
did VBD
n't RB
know VB
the DT
value NN
of IN
the DT
contract NN
. .

Cable NNP
& CC
Wireless NNP
PLC NNP
of IN
Britain NNP
won VBD
the DT
other JJ
license NN
. .

Millicom NNP
said VBD
it PRP
would MD
build VB
and CC
operate VB
the DT
system NN
in IN
Pakistan NNP
with IN
Comvik NNP
International NNP
AB NNP
, ,
part NN
of IN
the DT
Kinnevik NNP
group NN
of IN
Sweden NNP
, ,
and CC
Arfeen NNP
International NNP
, ,
Pakistan NNP
. .

B.A.T NNP
Industries NNP
PLC NNP
won VBD
overwhelming JJ
shareholder NN
approval NN
for IN
a DT
defensive JJ
restructuring NN
to TO
fend VB
off IN
a DT
# #
13.35 CD
billion CD
-LRB- (
$ $
21.23 CD
billion CD
-RRB- )
takeover NN
bid NN
from IN
Sir NNP
James NNP
Goldsmith NNP
. .

At IN
a DT
shareholders NNS
' POS
meeting NN
in IN
London NNP
, ,
the DT
tobacco NN
, ,
financial-services NNS
and CC
retailing NN
giant NN
said VBD
it PRP
received VBD
99.9 CD
% NN
approval NN
from IN
voting NN
holders NNS
for IN
plans NNS
to TO
spin VB
off IN
about RB
$ $
6 CD
billion CD
in IN
assets NNS
. .

B.A.T NNP
aims VBZ
to TO
sell VB
such JJ
U.S. NNP
retailing NN
units NNS
as IN
Marshall NNP
Field NNP
and CC
Saks NNP
Fifth NNP
Avenue NNP
and CC
float VB
its PRP$
big JJ
paper NN
and CC
British JJ
retailing NN
businesses NNS
via IN
share NN
issues NNS
to TO
existing VBG
holders NNS
. .

Proceeds NNS
will MD
help VB
pay VB
for IN
a DT
planned VBN
buy-back NN
of IN
10 CD
% NN
, ,
or CC
about IN
153 CD
million CD
, ,
of IN
its PRP$
shares NNS
and CC
a DT
50 CD
% NN
dividend NN
increase NN
. .

B.A.T NN
yesterday NN
started VBD
its PRP$
share NN
buy-back NN
. .

The DT
company NN
said VBD
it PRP
acquired VBD
2.5 CD
million CD
shares NNS
for IN
785 CD
pence NN
-LRB- (
$ $
12.48 CD
-RRB- )
each DT
, ,
or CC
a DT
total NN
of IN
# #
19.6 CD
million CD
-LRB- (
$ $
31.2 CD
million CD
-RRB- )
, ,
from IN
its PRP$
broker NN
, ,
Barclays NNP
de FW
Zoete NNP
Wedd NNP
. .

The DT
share NN
buy-back NN
plan NN
is VBZ
likely JJ
to TO
underpin VB
B.A.T NNP
's POS
share NN
price NN
. .

B.A.T NNP
said VBD
it PRP
may MD
make VB
more JJR
equity NN
purchases NNS
until IN
the DT
close NN
of IN
business NN
today NN
, ,
depending VBG
on IN
market NN
conditions NNS
, ,
but CC
will MD
cease VB
further JJ
purchases NNS
until IN
Nov. NNP
22 CD
, ,
when WRB
it PRP
releases VBZ
third-quarter JJ
results NNS
. .

B.A.T NN
shares NNS
rose VBD
29 CD
pence NN
to TO
783 CD
pence NN
on IN
London NNP
's POS
stock NN
exchange NN
yesterday NN
. .

Shareholder NN
approval NN
sets VBZ
the DT
stage NN
for IN
a DT
lengthy JJ
process NN
of IN
restructuring NN
that WDT
might MD
not RB
be VB
completed VBN
until IN
next JJ
year NN
's POS
second JJ
half NN
. .

Before IN
the DT
recent JJ
tumult NN
in IN
global JJ
financial JJ
markets NNS
, ,
B.A.T NNP
officials NNS
, ,
holders NNS
and CC
analysts NNS
had VBD
expected VBN
a DT
substantial JJ
part NN
of IN
the DT
restructuring NN
to TO
be VB
complete JJ
by IN
the DT
end NN
of IN
the DT
first JJ
half NN
. .

`` ``
We PRP
are VBP
not RB
in IN
any DT
hurry NN
to TO
sell VB
'' ''
Saks NNP
, ,
Marshall NNP
Field NNP
or CC
B.A.T NNP
's POS
other JJ
U.S. NNP
retail JJ
properties NNS
, ,
said VBD
Chairman NNP
Patrick NNP
Sheehy NNP
. .

`` ``
This DT
is VBZ
n't RB
a DT
distress NN
sale NN
. .

We PRP
are VBP
determined VBN
to TO
get VB
good JJ
prices NNS
. .
'' ''

Company NN
officials NNS
say VBP
the DT
flotations NNS
of IN
the DT
paper NN
and CC
British JJ
retailing NN
businesses NNS
are VBP
likely JJ
only RB
after IN
the DT
disposals NNS
of IN
the DT
U.S. NNP
retailing NN
assets NNS
. .

Meanwhile RB
, ,
Sir NNP
James NNP
still RB
is VBZ
pursuing VBG
efforts NNS
to TO
gain VB
U.S. NNP
insurance NN
regulators NNS
' POS
approval NN
for IN
a DT
change NN
in IN
control NN
of IN
B.A.T NNP
's POS
Farmers NNP
Group NNP
Inc. NNP
unit NN
. .

The DT
Anglo-French JJ
financier NN
has VBZ
indicated VBN
he PRP
intends VBZ
to TO
bid VB
again RB
for IN
B.A.T NNP
if IN
he PRP
receives VBZ
approval NN
. .

Hasbro NNP
Inc. NNP
, ,
the DT
nation NN
's POS
largest JJS
toy NN
maker NN
, ,
reported VBD
third-quarter JJ
earnings NNS
increased VBN
73 CD
% NN
from IN
a DT
year NN
earlier RBR
on IN
a DT
9.4 CD
% NN
sales NNS
gain NN
, ,
reflecting VBG
improved VBN
margins NNS
. .
Hasbro NNP
said VBD
it PRP
had VBD
net JJ
income NN
of IN
$ $
31.3 CD
million CD
, ,
or CC
53 CD
cents NNS
a DT
share NN
, ,
up IN
from IN
$ $
18.1 CD
million CD
, ,
or CC
31 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
, ,
when WRB
it PRP
took VBD
a DT
pretax JJ
charge NN
of IN
$ $
10 CD
million CD
after IN
dropping VBG
development NN
of IN
an DT
interactive JJ
video NN
entertainment NN
system NN
. .

Revenue NN
rose VBD
to TO
$ $
403 CD
million CD
from IN
$ $
368.4 CD
million CD
. .

The DT
company NN
cited VBD
sales NNS
gains NNS
at IN
its PRP$
Milton NNP
Bradley NNP
and CC
Playskool NNP
units NNS
and CC
in IN
its PRP$
international JJ
business NN
for IN
the DT
increase NN
in IN
revenue NN
. .

Alan NNP
G. NNP
Hassenfeld NNP
, ,
chairman NN
and CC
chief JJ
executive NN
, ,
added VBD
that IN
Hasbro NNP
's POS
new JJ
line NN
of IN
battery-powered JJ
racing NN
cars NNS
, ,
called VBN
Record NNP
Breakers NNP
, ,
and CC
its PRP$
acquisition NN
of IN
Cabbage NNP
Patch NNP
Kids NNP
, ,
Scrabble NNP
and CC
other JJ
lines NNS
from IN
Coleco NNP
Industries NNP
Inc. NNP
puts VBZ
the DT
company NN
`` ``
in IN
a DT
good JJ
position NN
as IN
we PRP
enter VBP
the DT
Christmas NNP
buying VBG
season NN
. .
'' ''

For IN
the DT
first JJ
nine CD
months NNS
of IN
the DT
year NN
, ,
Hasbro NNP
's POS
net JJ
income NN
rose VBD
33 CD
% NN
to TO
$ $
68.2 CD
million CD
, ,
or CC
$ $
1.15 CD
a DT
share NN
, ,
from IN
$ $
51.3 CD
million CD
, ,
or CC
88 CD
cents NNS
a DT
share NN
, ,
on IN
a DT
3.1 CD
% NN
increase NN
in IN
revenue NN
to TO
$ $
992.7 CD
million CD
from IN
$ $
963 CD
million CD
a DT
year NN
earlier RBR
. .

Reebok NNP
International NNP
Ltd. NNP
posted VBD
a DT
35 CD
% NN
increase NN
in IN
third-quarter JJ
net JJ
income NN
despite IN
a DT
slight JJ
decline NN
in IN
sales NNS
. .

The DT
athletic JJ
footwear NN
maker NN
said VBD
net NN
rose VBD
to TO
$ $
49.9 CD
million CD
, ,
or CC
44 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
37.1 CD
million CD
, ,
or CC
32 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
declined VBD
3 CD
% NN
to TO
$ $
524.5 CD
million CD
from IN
$ $
539.4 CD
million CD
. .

Paul NNP
Fireman NNP
, ,
Reebok NNP
chairman NN
and CC
chief JJ
executive JJ
officer NN
, ,
said VBD
, ,
`` ``
Our PRP$
gains NNS
in IN
earnings NNS
provide VBP
further JJ
evidence NN
that IN
the DT
controls NNS
we PRP
have VBP
put VBN
in IN
place NN
and CC
our PRP$
sales NNS
mix NN
are VBP
continuing VBG
to TO
improve VB
the DT
company NN
's POS
overall JJ
profit NN
performance NN
. .
'' ''

The DT
company NN
said VBD
it PRP
expects VBZ
sales NNS
to TO
improve VB
due JJ
to TO
a DT
number NN
of IN
new JJ
products NNS
, ,
including VBG
a DT
`` ``
pump NN
'' ''
basketball NN
shoe NN
that WDT
can MD
be VB
inflated JJ
to TO
better JJR
fit VB
the DT
foot NN
. .
In IN
the DT
first JJ
nine CD
months NNS
, ,
net NN
was VBD
$ $
140 CD
million CD
, ,
or CC
$ $
1.23 CD
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
1.44 CD
billion CD
. .

Separately RB
, ,
Reebok NNP
completed VBD
the DT
acquisition NN
of IN
CML NNP
Group NNP
Inc. NNP
's POS
Boston NNP
Whaler NNP
unit NN
, ,
a DT
builder NN
of IN
power NN
boats NNS
. .

CML NNP
, ,
Acton NNP
, ,
Mass. NNP
, ,
had VBD
agreed VBN
to TO
sell VB
the DT
unit NN
to TO
Reebok NNP
for IN
about RB
$ $
42 CD
million CD
. .

The DT
agreement NN
also RB
called VBD
for IN
Reebok NNP
to TO
receive VB
warrants NNS
to TO
purchase VB
400,000 CD
shares NNS
of IN
CML NNP
common JJ
at IN
$ $
31.25 CD
a DT
share NN
, ,
exercisable JJ
at IN
any DT
time NN
before IN
July NNP
1 CD
, ,

An DT
outside JJ
spokesman NN
for IN
CML NNP
said VBD
the DT
terms NNS
were VBD
changed VBN
to TO
a DT
minor JJ
extent NN
but CC
would MD
n't RB
disclose VB
what WP
those DT
changes NNS
were VBD
. .

Pitney NNP
Bowes NNP
Inc. NNP
directors NNS
authorized VBD
the DT
company NN
to TO
seek VB
buyers NNS
for IN
its PRP$
Wheeler NNP
Group NNP
Inc. NNP
subsidiary NN
, ,
a DT
direct JJ
mail NN
marketer NN
of IN
office NN
supplies NNS
. .

Pitney NNP
Bowes NNP
said VBD
the DT
decision NN
was VBD
based VBN
on IN
a DT
long-term JJ
analysis NN
of IN
the DT
compatibility NN
of IN
Wheeler NNP
Group NNP
's POS
marketing NN
business NN
with IN
other JJ
Pitney NNP
Bowes NNP
operations NNS
. .
Pitney NNP
Bowes NNP
acquired VBD
the DT
core NN
of IN
what WP
evolved VBD
into IN
Wheeler NNP
Group NNP
in IN
1979 CD
by IN
buying VBG
Dictaphone NNP
Corp NNP
. .

A DT
spokeswoman NN
would MD
n't RB
comment VB
on IN
whether IN
the DT
company NN
had VBD
talked VBN
with IN
any DT
potential JJ
buyers NNS
for IN
the DT
New NNP
Hartford NNP
, ,
Conn. NNP
, ,
unit NN
, ,
which WDT
had VBD
1988 CD
sales NNS
of IN
about RB
$ $
75 CD
million CD
. .

She PRP
said VBD
Wheeler NNP
Group NNP
was VBD
profitable JJ
but CC
would MD
n't RB
give VB
figures NNS
. .

The DT
spokeswoman NN
said VBD
the DT
company NN
does VBZ
n't RB
have VB
a DT
timetable NN
for IN
the DT
sale NN
, ,
adding VBG
that IN
the DT
board NN
's POS
decision NN
just RB
starts VBZ
the DT
search NN
for IN
a DT
buyer NN
. .

Separately RB
, ,
Pitney NNP
Bowes NNP
said VBD
third-quarter JJ
net JJ
income NN
gained VBD
15 CD
% NN
to TO
$ $
62 CD
million CD
, ,
or CC
78 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
54 CD
million CD
, ,
or CC
68 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Revenue NN
grew VBD
13 CD
% NN
to TO
$ $
734.8 CD
million CD
from IN
$ $
650.9 CD
million CD
. .

The DT
company NN
said VBD
the DT
growth NN
was VBD
led VBN
by IN
its PRP$
major JJ
operations NNS
, ,
particularly RB
mailing VBG
, ,
shipping VBG
, ,
dictating VBG
and CC
facsimile NN
businesses NNS
. .

Steel NN
jackets NNS
of IN
a DT
type NN
that WDT
may MD
have VB
prevented VBN
collapse NN
of IN
the DT
columns NNS
of IN
a DT
1.5-mile CD
stretch NN
of IN
the DT
Nimitz NNP
Freeway NNP
had VBD
been VBN
installed VBN
on IN
at IN
least JJS
a DT
small JJ
test NN
section NN
of IN
the DT
double-decker JJ
highway NN
last JJ
year NN
by IN
California NNP
's POS
Department NNP
of IN
Transportation NNP
, ,
employees NNS
familiar JJ
with IN
the DT
project NN
say VBP
. .

The DT
test NN
project NN
-- :
which WDT
reportedly RB
survived VBD
Tuesday NNP
's POS
earthquake NN
-- :
was VBD
a DT
prelude NN
to TO
a DT
state NN
plan NN
to TO
retrofit VB
that IN
critical JJ
section NN
of IN
the DT
freeway NN
with IN
the DT
steel NN
casings NNS
. .

State NN
engineers NNS
have VBP
made VBN
a DT
preliminary JJ
finding NN
that IN
it PRP
was VBD
failure NN
of IN
the DT
concrete JJ
columns NNS
, ,
wrenched VBD
and CC
separated VBN
from IN
the DT
double-decker JJ
roadbed NN
, ,
that WDT
was VBD
responsible JJ
for IN
the DT
collapse NN
. .

The DT
failure NN
in IN
Oakland NNP
of IN
the DT
freeway NN
segment NN
known VBN
as IN
the DT
Cypress NNP
structure NN
was VBD
the DT
deadliest JJS
aspect NN
of IN
the DT
quake NN
, ,
although IN
officials NNS
were VBD
hopeful JJ
yesterday NN
that IN
the DT
death NN
toll NN
there EX
might MD
be VB
significantly RB
lower JJR
than IN
the DT
250 CD
initially RB
feared VBD
. .

Sorting VBG
out RP
the IN
wreckage NN
is VBZ
expected VBN
to TO
take VB
several JJ
days NNS
. .

Red JJ
tractors NNS
gingerly RB
picked VBD
at IN
the DT
rubble NN
while IN
jackhammers NNS
tried VBD
to TO
break VB
up IN
some DT
of IN
the DT
massive JJ
slabs NNS
of IN
concrete NN
. .

Giant NNP
yellow JJ
cranes NNS
were VBD
wheeled VBN
up IN
alongside IN
the DT
collapsed VBN
segment NN
, ,
preparing VBG
to TO
lift VB
off IN
chunks NNS
of IN
the DT
debris NN
. .

In IN
Sacramento NNP
, ,
a DT
transportation NN
department NN
spokesman NN
said VBD
he PRP
could MD
n't RB
immediately RB
confirm VB
or CC
deny VB
existence NN
of IN
the DT
test NN
work NN
. .

However RB
, ,
he PRP
asserted VBD
that IN
the DT
department NN
had VBD
n't RB
mastered VBN
the DT
technology NN
needed VBN
to TO
retrofit VB
the DT
entire JJ
Cypress NNP
structure NN
. .

Moreover RB
, ,
other JJ
officials NNS
noted VBD
, ,
snafus NNS
in IN
transportation NN
funding NN
that IN
the DT
state NN
has VBZ
experienced VBN
over IN
the DT
years NNS
may MD
have VB
restricted VBN
the DT
availability NN
of IN
funds NNS
for IN
such JJ
a DT
retrofitting NN
, ,
even RB
if IN
it PRP
were VBD
technologically RB
feasible JJ
. .

Knowledgeable JJ
employees NNS
said VBD
the DT
retrofitting NN
, ,
which WDT
had VBD
n't RB
yet RB
been VBN
budgeted VBN
, ,
was VBD
part NN
of IN
a DT
planned VBN
, ,
three-stage JJ
reinforcement NN
of IN
the DT
Cypress NNP
structure NN
begun VBN
by IN
the DT
California NNP
transportation NN
department NN
several JJ
years NNS
ago RB
. .

The DT
Cypress NNP
reinforcement NN
project NN
itself PRP
was VBD
part NN
of IN
an DT
annual JJ
effort NN
to TO
shore VB
up IN
structures NNS
believed VBD
vulnerable JJ
to TO
earthquakes NNS
. .

The DT
state NN
began VBD
such JJ
work NN
after IN
a DT
1971 CD
tremblor NN
in IN
Southern NNP
California NNP
, ,
when WRB
numerous JJ
bridges NNS
collapsed VBD
. .

`` ``
We PRP
had VBD
just RB
finished VBN
phase NN
two CD
'' ''
of IN
the DT
Cypress NNP
project NN
that WDT
involved VBD
installing VBG
a DT
series NN
of IN
retaining VBG
cables NNS
designed VBN
to TO
prevent VB
sections NNS
of IN
the DT
roadway NN
from IN
separating VBG
as IN
a DT
result NN
of IN
seismic JJ
shock NN
, ,
a DT
state NN
DOT NNP
engineer NN
said VBD
. .

After IN
completing VBG
installation NN
of IN
the DT
jackets NNS
on IN
`` ``
one CD
frame NN
'' ''
of IN
the DT
freeway NN
last JJ
year NN
, ,
the DT
state NN
DOT NNP
had VBD
sent VBN
the DT
project NN
over IN
to TO
its PRP$
Sacramento NNP
engineers NNS
to TO
draw VB
up IN
a DT
final JJ
design NN
. .

Knowledgeable JJ
employees NNS
said VBD
the DT
project NN
had VBD
been VBN
stymied VBN
somewhat RB
by IN
`` ``
the DT
difficulty NN
of IN
designing VBG
'' ''
the DT
jackets NNS
. .

The DT
procedure NN
involves VBZ
encasing VBG
the DT
concrete JJ
columns NNS
with IN
steel NN
, ,
then RB
connecting VBG
them PRP
more RBR
securely RB
to TO
the DT
double-decker JJ
roadbed NN
. .

The DT
employees NNS
also RB
said VBD
the DT
project NN
may MD
have VB
been VBN
snagged VBN
by IN
budgetary JJ
concerns NNS
. .

One CD
preliminary JJ
estimate NN
put NN
the DT
retrofitting NN
cost NN
at IN
as RB
much JJ
as IN
$ $
50 CD
million CD
. .

The DT
collapse NN
of IN
the DT
span NN
has VBZ
provoked VBN
surprise NN
and CC
anger NN
among IN
state NN
officials NNS
. .
Gov. NNP
George NNP
Deukmejian NNP
, ,
who WP
said VBD
he PRP
had VBD
been VBN
assured VBN
by IN
state NN
transportation NN
officials NNS
that IN
the DT
structure NN
could MD
withstand VB
an DT
even RB
larger JJR
quake NN
, ,
called VBN
for IN
an DT
immediate JJ
investigation NN
. .

`` ``
I PRP
want VBP
to TO
know VB
who WP
made VBD
the DT
decision NN
that IN
it PRP
was VBD
safe JJ
for IN
186,000 CD
people NNS
to TO
use VB
every DT
day NN
, ,
'' ''
said VBD
Richard NNP
Katz NNP
, ,
a DT
state NN
legislator NN
who WP
is VBZ
chairman NN
of IN
the DT
California NNP
Assembly NNP
's POS
transportation NN
committee NN
. .

He PRP
said VBD
he PRP
would MD
convene VB
hearings NNS
within IN
two CD
weeks NNS
. .

The DT
Cypress NNP
structure NN
opened VBD
in IN
June NNP
1957 CD
, ,
and CC
as IN
such JJ
, ,
like IN
many JJ
buildings NNS
in IN
the DT
San NNP
Francisco NNP
Bay NNP
area NN
, ,
does VBZ
not RB
meet VB
current JJ
building NN
codes NNS
requiring VBG
considerably RB
more JJR
steel NN
support NN
. .
The DT
northern JJ
piers NNS
of IN
the DT
span NN
lie NN
in IN
estuarian NN
deposits NNS
that WDT
were VBD
of IN
a DT
type NN
to TO
have VB
liquefied VBN
easily RB
during IN
the DT
1906 CD
quake NN
. .

Transportation NN
department NN
officials NNS
, ,
however RB
, ,
said VBD
they PRP
were VBD
as RB
surprised VBN
as IN
anyone NN
by IN
the DT
Cypress NNP
destruction NN
. .

They PRP
said VBD
previous JJ
earthquakes NNS
suggested VBD
that IN
multiple-column JJ
viaducts NNS
would MD
stand VB
up IN
well RB
, ,
although IN
they PRP
were VBD
working VBG
on IN
ways NNS
to TO
bolster VB
them PRP
. .

`` ``
Unfortunately RB
, ,
there EX
is VBZ
only RB
one CD
laboratory NN
for IN
developing VBG
techniques NNS
to TO
withstand VB
earthquakes NNS
, ,
and CC
that DT
is VBZ
an DT
earthquake NN
, ,
'' ''
said VBD
Burch NNP
Bachtold NNP
, ,
San NNP
Francisco NNP
district NN
director NN
for IN
the DT
transportation NN
department NN
. .

He PRP
said VBD
: :
`` ``
We PRP
know VBP
of IN
no DT
technology NN
that WDT
exists VBZ
anywhere RB
in IN
the DT
world NN
that WDT
would MD
allow VB
us PRP
to TO
'' ''
reinforce VB
the DT
columns NNS
. .

Financial NNP
Corp. NNP
of IN
Santa NNP
Barbara NNP
said VBD
it PRP
rescheduled VBD
to TO
Nov. NNP
29 CD
a DT
special JJ
shareholder NN
meeting NN
to TO
vote VB
on IN
a DT
$ $
75 CD
million CD
stock-for-debt JJ
exchange NN
. .

The DT
meeting NN
had VBD
been VBN
scheduled VBN
for IN
Nov. NNP
10 CD
but CC
the DT
company NN
delayed VBD
the DT
meeting NN
to TO
allow VB
time NN
for IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
to TO
review VB
the DT
proposal NN
. .

As IN
part NN
of IN
a DT
restructuring NN
announced VBD
earlier RBR
this DT
year NN
, ,
the DT
company NN
proposed VBN
in IN
August NNP
to TO
exchange VB
168 CD
newly RB
issued VBN
common JJ
shares NNS
for IN
each DT
$ $
1,000 CD
face NN
value NN
of IN
debt NN
. .

However RB
, ,
that DT
figure NN
could MD
be VB
revised VBN
, ,
Financial NNP
Corp. NNP
said VBD
. .

Currently RB
, ,
the DT
company NN
has VBZ
about IN
six CD
million CD
common JJ
shares NNS
outstanding JJ
. .

If IN
all PDT
the DT
debt NN
was VBD
converted VBN
, ,
about IN
13 CD
million CD
new JJ
shares NNS
would MD
be VB
issued VBN
. .

In IN
composite JJ
trading NN
Wednesday NNP
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
Financial NNP
Corp. NNP
closed VBD
at IN
$ $
1.125 CD
, ,
unchanged JJ
. .

The DT
debt NN
consists VBZ
of IN
$ $
50 CD
million CD
of IN
13 CD
3\/8 CD
% NN
subordinated VBD
notes NNS
due JJ
1998 CD
, ,
and CC
$ $
25 CD
million CD
of IN
9 CD
% NN
convertible JJ
subordinated VBN
debentures NNS
due JJ
2012 CD
. .

Financial NNP
Corp. NNP
also RB
is VBZ
proposing VBG
to TO
exchange VB
each DT
of IN
its PRP$
130,000 CD
outstanding JJ
shares NNS
of IN
cumulative JJ
convertible JJ
preferred JJ
series NN
A DT
stock NN
for IN
two CD
shares NNS
of IN
common NN
. .

After IN
years NNS
of IN
quarreling VBG
over IN
Bonn NNP
's POS
`` ``
Ostpolitik NNP
'' ''
, ,
West NNP
Germany NNP
and CC
the DT
U.S. NNP
appear VB
to TO
have VB
shifted VBN
onto IN
a DT
united VBN
course NN
in IN
Eastern NNP
Europe NNP
. .

Bonn NNP
and CC
Washington NNP
have VBP
taken VBN
a DT
leading VBG
role NN
in IN
aid NN
for IN
the DT
reformist NN
countries NNS
, ,
pledging VBG
billions NNS
of IN
dollars NNS
in IN
fresh JJ
credit NN
and CC
forgiving VBG
old JJ
debt NN
while IN
urging VBG
other JJ
industrial JJ
nations NNS
to TO
follow VB
suit NN
. .

Both DT
hope NN
to TO
encourage VB
pressure NN
for IN
change NN
in IN
East NNP
bloc NN
countries NNS
still RB
ruled VBN
by IN
Stalinist JJ
holdouts NNS
by IN
arranging VBG
liberal JJ
financial JJ
aid NN
and CC
trade NN
benefits NNS
for IN
Poland NNP
, ,
Hungary NNP
and CC
, ,
to TO
a DT
lesser JJR
extent NN
, ,
the DT
Soviet NNP
Union NNP
. .

West JJ
German JJ
officials NNS
also RB
have VBP
the DT
special JJ
goal NN
of IN
holding VBG
out RP
hope NN
for IN
East NNP
Germany NNP
's POS
fledgling NN
reform NN
movement NN
. .

`` ``
The DT
change NN
taking VBG
place NN
in IN
the DT
Soviet NNP
Union NNP
, ,
Poland NNP
and CC
Hungary NNP
has VBZ
aroused VBN
new JJ
hope NN
in IN
both DT
German JJ
states NNS
that IN
reforms NNS
will MD
be VB
undertaken VBN
in IN
-LCB- (
East NNP
Germany NNP
-RCB- )
, ,
and CC
that IN
relations NNS
between IN
the DT
two CD
German JJ
states NNS
, ,
too RB
, ,
will MD
get VB
better JJR
, ,
'' ''
said VBD
Foreign NNP
Minister NNP
Hans-Dietrich NNP
Genscher NNP
. .

Addressing VBG
a DT
conference NN
of IN
the DT
New NNP
York-based JJ
Institute NNP
for IN
East-West NNP
Security NNP
Studies NNS
in IN
Frankfurt NNP
yesterday NN
, ,
Mr. NNP
Genscher NNP
said VBD
, ,
`` ``
History NN
will MD
judge VB
us PRP
by IN
whether IN
we PRP
have VBP
taken VBN
the DT
opportunities NNS
that WDT
emerge VBP
from IN
these DT
reforms NNS
. .
'' ''

The DT
ultimate JJ
aim NN
of IN
Western JJ
support NN
for IN
East NNP
bloc NN
reforms NNS
, ,
he PRP
said VBD
, ,
is VBZ
to TO
create VB
`` ``
an DT
equitable JJ
and CC
stable JJ
peaceful JJ
order NN
in IN
Europe NNP
from IN
the DT
Atlantic NNP
to TO
the DT
Urals NNPS
. .
'' ''

Mr. NNP
Genscher NNP
and CC
U.S. NNP
Secretary NNP
of IN
Commerce NNP
Robert NNP
A. NNP
Mosbacher NNP
, ,
in IN
separate JJ
speeches NNS
at IN
the DT
conference NN
, ,
appealed VBD
for IN
more RBR
Western JJ
contributions NNS
to TO
economic JJ
reforms NNS
and CC
business NN
development NN
in IN
Hungary NNP
and CC
Poland NNP
. .

Bonn NNP
and CC
Washington NNP
are VBP
leading VBG
supporters NNS
of IN
Poland NNP
's POS
request NN
for IN
a DT
$ $
1 CD
billion CD
stand-by JJ
credit NN
from IN
the DT
International NNP
Monetary NNP
Fund NNP
. .

`` ``
We PRP
want VBP
the DT
bold JJ
programs NNS
of IN
market NN
development NN
and CC
political JJ
freedom NN
in IN
Hungary NNP
and CC
in IN
Poland NNP
to TO
succeed VB
. .

We PRP
are VBP
prepared VBN
to TO
support VB
those DT
changes NNS
, ,
'' ''
said VBD
Mr. NNP
Mosbacher NNP
. .

U.S. NNP
curbs NNS
on IN
the DT
exports NNS
of IN
sensitive JJ
technology NN
to TO
East NNP
bloc NN
countries NNS
will MD
remain VB
in IN
place NN
, ,
however RB
. .
Meanwhile RB
, ,
the DT
U.S. NNP
House NNP
of IN
Representatives NNPS
yesterday NN
approved VBD
an DT
$ $
837.5 CD
million CD
aid NN
package NN
for IN
Poland NNP
and CC
Hungary NNP
that IN
more JJR
than IN
doubles VBZ
the DT
amount NN
President NNP
Bush NNP
had VBD
requested VBN
. .

The DT
package NN
was VBD
brought VBN
to TO
the DT
House NNP
just RB
15 CD
days NNS
after IN
it PRP
was VBD
introduced VBN
, ,
indicating VBG
Congress NNP
's POS
eagerness NN
to TO
reward VB
Poland NNP
and CC
Hungary NNP
for IN
their PRP$
moves NNS
toward IN
democracy NN
and CC
freemarket JJ
economic JJ
reforms NNS
. .

The DT
legislation NN
, ,
approved VBD
345-47 JJ
and CC
sent VBD
to TO
the DT
Senate NNP
, ,
establishes VBZ
two CD
enterprise NN
funds NNS
, ,
to TO
be VB
governed VBN
by IN
independent JJ
nonprofit JJ
boards NNS
, ,
which WDT
will MD
make VB
loans NNS
and CC
investments NNS
in IN
new JJ
business NN
ventures NNS
in IN
Hungary NNP
and CC
Poland NNP
. .

The DT
Polish JJ
fund NN
would MD
be VB
seeded VBN
with IN
$ $
160 CD
million CD
, ,
the DT
Hungarian JJ
fund NN
with IN
$ $
40 CD
million CD
. .

In IN
addition NN
, ,
a DT
group NN
of IN
24 CD
industrialized VBN
countries NNS
, ,
including VBG
the DT
U.S. NNP
and CC
Japan NNP
and CC
coordinated VBN
by IN
the DT
European NNP
Community NNP
Commission NNP
, ,
has VBZ
promised VBN
Poland NNP
and CC
Hungary NNP
trade NN
advice NN
and CC
a DT
line NN
of IN
credit NN
equivalent NN
to TO
$ $
1.11 CD
billion CD
through IN
the DT
European NNP
Investment NNP
Bank NNP
, ,
while IN
the DT
EC NNP
plans VBZ
$ $
222 CD
million CD
in IN
direct JJ
aid NN
. .

When WRB
Chancellor NNP
Helmut NNP
Kohl NNP
travels VBZ
to TO
Poland NNP
Nov. NNP
9 CD
, ,
he PRP
is VBZ
expected VBN
to TO
take VB
with IN
him PRP
a DT
promise NN
of IN
three CD
billion CD
West JJ
German JJ
marks NNS
-LRB- (
$ $
1.6 CD
billion CD
-RRB- )
in IN
new JJ
credit NN
guarantees NNS
for IN
industrial JJ
projects NNS
. .

Last JJ
week NN
, ,
Bonn NNP
agreed VBD
to TO
reschedule VB
2.5 CD
billion CD
marks NNS
in IN
Polish JJ
debt NN
that WDT
came VBD
due JJ
last JJ
year NN
. .

In IN
addition NN
, ,
a DT
one CD
billion CD
mark NN
credit NN
dating VBG
from IN
1974 CD
is VBZ
to TO
be VB
written VBN
off RB
. .

Poland NNP
's POS
plan NN
to TO
switch VB
to TO
a DT
free-market JJ
economy NN
by IN
1991 CD
is VBZ
hampered VBN
by IN
a DT
foreign JJ
debt NN
load NN
of IN
$ $
39.2 CD
billion CD
. .

West NNP
Germany NNP
also RB
has VBZ
increased VBN
its PRP$
credit NN
guarantees NNS
to TO
Hungary NNP
by IN
500 CD
million CD
marks NNS
to TO
1.5 CD
billion CD
marks NNS
as IN
the DT
emerging VBG
democratic JJ
state NN
rushes VBZ
through IN
its PRP$
own JJ
economic JJ
reforms NNS
, ,
including VBG
a DT
broad JJ
privatization NN
of IN
state-owned JJ
industry NN
and CC
tax NN
incentives NNS
for IN
industrial JJ
investment NN
. .

An DT
additional JJ
500 CD
million CD
marks NNS
in IN
credit-backing NN
was VBD
promised VBN
by IN
the DT
West JJ
German JJ
state NN
governments NNS
of IN
Bavaria NNP
and CC
Baden-Wuerttemberg NNP
. .

Deutsche NNP
Bank NNP
AG NNP
, ,
which WDT
last JJ
year NN
arranged VBD
a DT
three CD
billion CD
mark NN
credit NN
for IN
the DT
Soviet NNP
Union NNP
, ,
is VBZ
now RB
moving VBG
to TO
become VB
the DT
first JJ
West JJ
German JJ
bank NN
to TO
set VB
up IN
independent JJ
business NN
offices NNS
in IN
Hungary NNP
and CC
Poland NNP
as IN
they PRP
shift VBP
to TO
free-market JJ
economies NNS
. .

A DT
maxim NN
of IN
Frankfurt NNP
banking NN
holds VBZ
that IN
wherever WRB
Deutsche NNP
Bank NNP
goes VBZ
, ,
other JJ
West JJ
German JJ
banks NNS
follow VBP
. .

Indeed RB
, ,
at IN
least JJS
four CD
other JJ
West JJ
German JJ
banks NNS
are VBP
believed VBN
to TO
be VB
making VBG
inquiries NNS
. .

Mattel NNP
Inc. NNP
said VBD
third-quarter JJ
net JJ
income NN
rose VBD
73 CD
% NN
, ,
to TO
$ $
38 CD
million CD
, ,
or CC
76 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
21.9 CD
million CD
, ,
or CC
45 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Revenue NN
rose VBD
34 CD
% NN
to TO
$ $
410 CD
million CD
from IN
$ $
306.6 CD
million CD
a DT
year NN
earlier RBR
. .

`` ``
Mattel NNP
's POS
world-wide JJ
volume NN
has VBZ
grown VBN
25 CD
% NN
in IN
a DT
climate NN
of IN
relatively RB
flat JJ
industry NN
sales NNS
, ,
'' ''
said VBD
John NNP
W. NNP
Amerman NNP
, ,
chairman NN
. .

He PRP
said VBD
the DT
toy NN
company NN
's POS
`` ``
prospects NNS
for IN
a DT
strong JJ
fourth JJ
quarter NN
'' ''
are VBP
also RB
good JJ
. .

Mattel NNP
attributed VBD
the DT
jump NN
in IN
quarter NN
net JJ
to TO
strong JJ
world-wide JJ
sales NNS
of IN
its PRP$
Barbie NNP
doll NN
, ,
Hot NNP
Wheels NNP
cars NNS
, ,
Disney NNP
toys NNS
and CC
other JJ
well-known JJ
toy NN
lines NNS
. .

The DT
company NN
also RB
cited VBD
retail JJ
trade NN
and CC
consumer NN
demand NN
for IN
new JJ
products NNS
introduced VBD
this DT
year NN
, ,
such JJ
as IN
Cherry NNP
Merry NNP
Muffin NNP
and CC
Turtle NNP
Tots NNP
. .

For IN
the DT
nine CD
months NNS
, ,
Mattel NNP
net JJ
more RBR
than IN
doubled VBN
to TO
$ $
58.9 CD
million CD
, ,
or CC
$ $
1.19 CD
a DT
share NN
, ,
from IN
$ $
25.4 CD
million CD
, ,
or CC
53 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Revenue NN
rose VBD
25 CD
% NN
, ,
to TO
$ $
877.6 CD
million CD
, ,
from IN
$ $
702.4 CD
million CD
. .

Mattel NNP
said VBD
the DT
company NN
's POS
sale NN
of IN
rights NNS
to TO
land VB
and CC
buildings NNS
at IN
its PRP$
Hawthorne NNP
, ,
Calif. NNP
, ,
headquarters NN
resulted VBD
in IN
a DT
$ $
13 CD
million CD
charge NN
to TO
third-quarter JJ
operating NN
profit NN
. .

The DT
charge NN
did VBD
n't RB
affect VB
net JJ
for IN
the DT
quarter NN
as IN
it PRP
was VBD
offset VBN
by IN
tax NN
benefits NNS
. .

Mattel NNP
has VBZ
purchased VBN
a DT
new JJ
headquarters NN
building NN
in IN
El NNP
Segundo NNP
, ,
Calif. NNP
, ,
which WDT
it PRP
will MD
occupy VB
by IN
the DT
end NN
of IN
next JJ
year NN
. .

Democracy NNP
can MD
be VB
cruel JJ
to TO
politicians NNS
: :
Sometimes RB
it PRP
forces VBZ
them PRP
to TO
make VB
choices NNS
. .

Now RB
that IN
the DT
Supreme NNP
Court NNP
opened VBD
the DT
door NN
on IN
the DT
subject NN
of IN
abortion NN
, ,
politicians NNS
are VBP
squinting VBG
under IN
the DT
glare NN
of IN
democratic JJ
choice NN
. .

Their PRP$
discomfort NN
is VBZ
a DT
healthy JJ
sign NN
for IN
the DT
rest NN
of IN
us PRP
. .

Republicans NNS
are VBP
squinting VBG
most RBS
painfully RB
, ,
at IN
least JJS
at IN
first JJ
, ,
which WDT
is VBZ
only RB
fair JJ
because IN
they PRP
've VBP
been VBN
shielded VBN
the DT
most RBS
. .

So RB
long RB
as IN
abortion NN
was VBD
a DT
question NN
for IN
litigation NN
, ,
not RB
legislation NN
, ,
Republicans NNPS
could MD
find VB
political JJ
security NN
in IN
absolutism NN
. .

They PRP
could MD
attract VB
one-issue JJ
voters NNS
by IN
adopting VBG
the DT
right-to-life JJ
movement NN
's POS
strongest JJS
position NN
, ,
even RB
as IN
pro-choice JJ
Republicans NNPS
knew VBD
this DT
mattered VBD
little JJ
on IN
an DT
issue NN
monopolized VBN
by IN
the DT
court NN
. .

Now RB
it PRP
matters VBZ
. .

Much RB
of IN
Washington NNP
thought VBD
it PRP
detected VBD
George NNP
Bush NNP
in IN
a DT
characteristic JJ
waffle NN
on IN
abortion NN
the DT
past JJ
week NN
. .

Only RB
a DT
month NN
ago RB
he PRP
'd MD
warned VBD
Congress NNP
not RB
to TO
pass VB
legislation NN
to TO
pay VB
for IN
abortions NNS
in IN
cases NNS
of IN
rape NN
or CC
incest NN
. .

Last NNP
Friday NNP
, ,
after IN
Congress NNP
passed VBD
it PRP
anyway RB
, ,
he PRP
hinted VBD
he PRP
was VBD
looking VBG
for IN
compromise NN
. .

Was VBD
the DT
man NN
who WP
once RB
was VBD
pro-choice JJ
, ,
but CC
later RB
pro-life JJ
, ,
converting VBG
again RB
? .

In IN
fact NN
, ,
Mr. NNP
Bush NNP
's POS
dance NN
was VBD
more JJR
wiggle NN
than IN
waffle NN
. .

Pro-life JJ
advocates NNS
say VBP
the DT
White NNP
House NNP
never RB
wavered VBD
over IN
the DT
veto NN
. .

Christopher NNP
Smith NNP
-LRB- (
R. NNP
, ,
N.J. NNP
-RRB- )
, ,
a DT
pro-life JJ
leader NN
in IN
the DT
House NNP
, ,
suggested VBD
a DT
compromise NN
that WDT
would MD
have VB
adapted VBN
restrictive JJ
language NN
from IN
rape NN
and CC
incest NN
exceptions NNS
in IN
the DT
states NNS
. .

The DT
White NNP
House NNP
, ,
never RB
eager JJ
for IN
a DT
fight NN
, ,
was VBD
happy JJ
to TO
try VB
, ,
which WDT
is VBZ
why WRB
George NNP
Bush NNP
said VBD
he PRP
was VBD
looking VBG
for IN
`` ``
flexibility NN
'' ''
last JJ
week NN
. .

When WRB
Democrats NNPS
refused VBD
to TO
budge VB
, ,
pro-life JJ
Republicans NNPS
met VBD
at IN
the DT
White NNP
House NNP
with IN
Chief NNP
of IN
Staff NNP
John NNP
Sununu NNP
on IN
Monday NNP
, ,
and CC
Mr. NNP
Bush NNP
quickly RB
signaled VBD
a DT
veto NN
. .

Amid IN
charges NNS
of IN
`` ``
timidity NN
'' ''
on IN
Panama NNP
and CC
elsewhere RB
, ,
the DT
president NN
was VBD
n't RB
about IN
to TO
offend VB
his PRP$
most RBS
energetic JJ
constituency NN
. .

The DT
GOP NNP
doubters NNS
were VBD
in IN
Congress NNP
. .

In IN
last JJ
week NN
's POS
House NNP
vote NN
, ,
41 CD
Republicans NNPS
defected VBD
. .

After IN
the DT
vote NN
, ,
Connecticut NNP
Rep. NNP
Nancy NNP
Johnson NNP
rounded VBD
up IN
nearly RB
as IN
many JJ
signatures NNS
on IN
a DT
letter NN
to TO
Mr. NNP
Bush NNP
urging VBG
him PRP
not RB
to TO
veto VB
. .

Even RB
such JJ
a DT
pro-life JJ
stalwart NN
as IN
Sen. NNP
Orrin NNP
Hatch NNP
-LRB- (
R. NNP
, ,
Utah NNP
-RRB- )
had VBD
counseled VBN
some DT
kind NN
of IN
compromise NN
. .

The DT
Senate NNP
passed VBD
the DT
same JJ
bill NN
yesterday NN
, ,
with IN
a DT
veto-proof JJ
majority NN
of IN
67 CD
. .

The DT
manuevering NN
illustrates VBZ
an DT
emerging VBG
Republican NNP
donnybrook NN
, ,
pacified VBD
since IN
the DT
early JJ
1980s CD
. .

At IN
the DT
1988 CD
GOP NNP
convention NN
, ,
abortion NN
was VBD
barely RB
discussed VBN
at IN
all DT
, ,
though IN
delegates NNS
were VBD
evenly RB
divided VBN
on IN
the DT
question NN
of IN
an DT
anti-abortion JJ
constitutional JJ
amendment NN
. .

Ms. NNP
Johnson NNP
made VBD
a DT
passionate JJ
statement NN
to TO
the DT
platform NN
committee NN
, ,
but CC
she PRP
was VBD
talking VBG
to TO
herself PRP
. .

Now RB
many JJ
Republicans NNPS
are VBP
listening VBG
. .

They PRP
're VBP
frightened VBN
by IN
what WP
they PRP
see VBP
in IN
New NNP
Jersey NNP
, ,
and CC
especially RB
Virginia NNP
, ,
where WRB
pro-life JJ
GOP NNP
candidates NNS
for IN
governor NN
are VBP
being VBG
pummeled VBN
on IN
abortion NN
. .

Eddie NNP
Mahe NNP
, ,
a DT
Republican NNP
consultant NN
, ,
says VBZ
the DT
two CD
GOP NNP
candidates NNS
could MD
have VB
avoided VBN
trouble NN
if IN
they PRP
had VBD
framed VBN
the DT
issue NN
first JJ
. .

-LRB- (
In IN
Virginia NNP
, ,
Marshall NNP
Coleman NNP
and CC
his PRP$
running NN
mate NN
, ,
Eddy NNP
Dalton NNP
, ,
are VBP
both DT
on IN
the DT
defensive NN
for IN
opposing VBG
abortions NNS
even RB
in IN
cases NNS
of IN
rape NN
or CC
incest NN
. .
-RRB- )

But CC
Mr. NNP
Mahe NNP
adds VBZ
, ,
`` ``
The DT
net JJ
loser NN
in IN
the DT
next JJ
few JJ
years NNS
is VBZ
the DT
right-to-life JJ
side NN
. .
'' ''

Darla NNP
St. NNP
Martin NNP
, ,
of IN
the DT
National NNP
Right NNP
to TO
Life NNP
Committee NNP
, ,
says VBZ
exit NN
polls NNS
from IN
the DT
1988 CD
election NN
had VBD
single-issue JJ
, ,
pro-life JJ
voters NNS
giving VBG
Mr. NNP
Bush NNP
about IN
five CD
more JJR
percentage NN
points NNS
of IN
support NN
than IN
pro-choice JJ
voters NNS
gave VBD
Michael NNP
Dukakis NNP
. .

But CC
the DT
Supreme NNP
Court NNP
's POS
opening NN
of IN
debate NN
may MD
have VB
changed VBN
even RB
that DT
. .

GOP NNP
pollster NN
Neil NNP
Newhouse NNP
, ,
of IN
the DT
Wirthlin NNP
Group NNP
, ,
says VBZ
polls VBZ
this DT
summer NN
showed VBD
that IN
the DT
single-issue JJ
voters NNS
had VBD
about IN
evened VBN
out RB
. .

Polls NNS
are VBP
no DT
substitute NN
for IN
principle NN
, ,
but CC
they PRP
'll MD
do VB
for IN
some DT
politicians NNS
. .

The DT
Republican NNP
danger NN
is VBZ
that DT
abortion NN
could MD
become VB
for IN
them PRP
what WP
it PRP
's VBZ
long RB
been VBN
for IN
Democrats NNPS
, ,
a DT
divisive JJ
litmus NN
test NN
. .

It PRP
's VBZ
already RB
that IN
in IN
the DT
Bush NNP
administration NN
, ,
at IN
least JJS
for IN
any DT
job NN
in IN
which WDT
abortion NN
is VBZ
even RB
remotely RB
an DT
issue NN
. .

Oklahoma NNP
official NN
Robert NNP
Fulton NNP
lost VBD
a DT
chance NN
for IN
a DT
senior JJ
job NN
in IN
the DT
Department NNP
of IN
Health NNP
and CC
Human NNP
Services NNP
after IN
right-to-life JJ
activists NNS
opposed VBN
him PRP
. .

Caldwell NNP
Butler NNP
, ,
a DT
conservative JJ
former JJ
congressman NN
, ,
was VBD
barred VBN
from IN
a DT
Legal NNP
Services NNPS
post NN
, ,
after IN
he PRP
gave VBD
wrong JJ
answers NNS
on IN
abortion NN
. .
Even RB
the DT
president NN
's POS
doctor NN
, ,
Burton NNP
Lee NNP
, ,
has VBZ
said VBD
on IN
the DT
record NN
that IN
he PRP
'd MD
love VB
to TO
be VB
surgeon NN
general JJ
but CC
could MD
n't RB
pass VB
the DT
pro-life JJ
test NN
. .

In IN
the DT
case NN
of IN
HHS NNP
Secretary NNP
Louis NNP
Sullivan NNP
, ,
the DT
litmus NN
test NN
could MD
yet RB
damage VB
issues NNS
important JJ
to TO
other JJ
parts NNS
of IN
the DT
Republican NNP
coalition NN
. .

After IN
Mr. NNP
Sullivan NNP
waffled VBD
on IN
abortion NN
last JJ
year NN
, ,
the DT
White NNP
House NNP
appeased VBD
right-to-lifers NNS
by IN
surrounding VBG
him PRP
with IN
pro-life JJ
deputies NNS
. .

Their PRP$
views NNS
on IN
health NN
care NN
and CC
welfare NN
did VBD
n't RB
much JJ
matter NN
, ,
though IN
HHS NNP
spends VBZ
billions NNS
a DT
year NN
on IN
both DT
. .

It PRP
makes VBZ
only RB
a DT
handful NN
of IN
abortion-related JJ
decisions NNS
. .

Though IN
Democrats NNPS
can MD
gloat VB
at IN
all PDT
this DT
for IN
now RB
, ,
they PRP
may MD
want VB
to TO
contain VB
their PRP$
glee NN
. .

On IN
abortion NN
, ,
their PRP$
own JJ
day NN
will MD
come VB
. .

Eventually RB
even RB
Republicans NNPS
will MD
find VB
a DT
way NN
to TO
frame VB
the DT
issue NN
in IN
ways NNS
that WDT
expose VBP
pro-choice JJ
absolutism NN
. .

Does VBZ
the DT
candidate NN
favor NN
parental JJ
consent NN
for IN
teen-age JJ
abortions NNS
? .

-LRB- (
The DT
pro-choice JJ
lobby NN
does VBZ
n't RB
. .
-RRB- )
What WP
about IN
banning VBG
abortions NNS
in IN
the DT
second JJ
and CC
third JJ
trimesters NNS
? .

-LRB- (
The DT
lobby NN
says VBZ
no DT
again RB
. .
-RRB- )

Democracy NNP
is VBZ
forcing VBG
the DT
abortion NN
debate NN
toward IN
healthy JJ
compromise NN
, ,
toward IN
the DT
unpolarizing VBG
middle NN
. .

Roe NNP
v. CC
Wade NNP
pre-empted VBD
political JJ
debate NN
, ,
so RB
the DT
extremes NNS
blossomed VBD
. .

Now RB
the DT
ambivalent JJ
middle NN
, ,
a DT
moral JJ
majority NN
of IN
sorts NNS
, ,
is VBZ
reasserting VBG
itself PRP
. .

Within IN
a DT
few JJ
years NNS
, ,
the DT
outcome NN
in IN
most RBS
states NNS
is VBZ
likely JJ
to TO
be VB
that DT
abortion NN
will MD
be VB
more RBR
restricted VBN
, ,
but CC
not RB
completely RB
banned VBN
. .

This DT
is VBZ
where WRB
the DT
voters NNS
are VBP
, ,
which WDT
is VBZ
where WRB
politicians NNS
usually RB
end VBP
up RB
. .

Union NNP
Pacific NNP
Corp NNP
. .
third-quarter JJ
net JJ
income NN
fell VBD
17 CD
% NN
. .

Excluding VBG
earnings NNS
from IN
discontinued VBN
operations NNS
a DT
year NN
earlier RBR
, ,
net NN
fell VBD
only RB
2 CD
% NN
. .

The DT
energy NN
, ,
natural JJ
resources NNS
and CC
railroad NN
concern NN
had VBD
net NN
of IN
$ $
137.4 CD
million CD
, ,
or CC
$ $
1.35 CD
a DT
share NN
, ,
down RB
from IN
$ $
165 CD
million CD
, ,
or CC
$ $
1.44 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .
In IN
the DT
1988 CD
third JJ
quarter NN
, ,
profit NN
from IN
continuing VBG
operations NNS
totaled VBD
$ $
140.1 CD
million CD
. .

A DT
year NN
earlier RBR
, ,
the DT
company NN
had VBD
profit NN
from IN
discontinued VBN
operations NNS
of IN
$ $
24.9 CD
million CD
from IN
sale NN
of IN
a DT
pipeline NN
, ,
a DT
refinery NN
and CC
an DT
interest NN
in IN
a DT
second JJ
refinery NN
. .

Revenue NN
rose VBD
2 CD
% NN
to TO
$ $
1.58 CD
billion CD
from IN
$ $
1.54 CD
billion CD
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
Union NNP
Pacific NNP
jumped VBD
$ $
1.375 CD
to TO
$ $
75 CD
a DT
share NN
. .

The DT
company NN
said VBD
its PRP$
Union NNP
Pacific NNP
Railroad NNP
had VBD
a DT
3 CD
% NN
profit NN
increase NN
, ,
despite IN
a DT
14 CD
% NN
rise NN
in IN
fuel NN
costs NNS
and CC
a DT
4 CD
% NN
drop NN
in IN
car NN
loadings NNS
. .

Most JJS
of IN
the DT
commodity NN
traffic NN
was VBD
off IN
, ,
the DT
company NN
said VBD
. .

Earnings NNS
from IN
continuing VBG
operations NNS
of IN
the DT
Union NNP
Pacific NNP
Resources NNPS
unit NN
almost RB
doubled VBD
, ,
the DT
company NN
said VBD
. .

It PRP
added VBD
that IN
higher JJR
revenue NN
, ,
strong JJ
crude JJ
oil NN
prices NNS
and CC
higher JJR
natural JJ
gas NN
prices NNS
offset VBP
declines NNS
in IN
production NN
of IN
oil NN
, ,
gas NN
and CC
plant NN
liquids NNS
. .

In IN
addition NN
, ,
the DT
company NN
cited VBD
cost-reduction JJ
moves NNS
and CC
interest NN
income NN
. .

Earnings NNS
from IN
Union NNP
Pacific NNP
Realty NNP
dropped VBD
50 CD
% NN
to TO
$ $
3 CD
million CD
. .

Before IN
good JJ
will NN
, ,
Overnite NNP
Transportation NNP
earnings NNS
fell VBD
11 CD
% NN
to TO
$ $
15 CD
million CD
, ,
Union NNP
Pacific NNP
said VBD
. .

In IN
the DT
nine CD
months NNS
, ,
net NN
fell VBD
6.3 CD
% NN
to TO
$ $
427.7 CD
million CD
, ,
or CC
$ $
3.98 CD
a DT
share NN
, ,
from IN
$ $
456.4 CD
million CD
, ,
or CC
$ $
4 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Profit NN
from IN
continuing VBG
operations NNS
in IN
the DT
year-earlier JJ
period NN
was VBD
$ $
402.7 CD
million CD
. .

Revenue NN
was VBD
$ $
4.75 CD
billion CD
, ,
up IN
6 CD
% NN
from IN
$ $
4.49 CD
billion CD
. .

The DT
Federal NNP
Trade NNP
Commission NNP
ruled VBD
that IN
five CD
major JJ
title-insurance JJ
companies NNS
illegally RB
fixed VBN
prices NNS
for IN
title NN
search-and-examination JJ
services NNS
by IN
participating VBG
in IN
joint JJ
`` ``
rating NN
bureaus NN
'' ''
in IN
six CD
states NNS
. .

The DT
FTC NNP
ordered VBD
the DT
companies NNS
not RB
to TO
use VB
rating NN
bureaus NN
in IN
those DT
six CD
states NNS
. .

The DT
commission NN
order NN
named VBD
the DT
following VBG
companies NNS
: :
Ticor NNP
Title NNP
Insurance NNP
Co. NNP
of IN
California NNP
, ,
a DT
unit NN
of IN
Los NNP
Angeles-based JJ
Ticor NNP
; :
Chicago NNP
Title NNP
Insurance NNP
Co. NNP
and CC
Safeco NNP
Title NNP
Insurance NNP
Co. NNP
, ,
units NNS
of IN
Chicago NNP
Title NN
& CC
Trust NNP
Co. NNP
; :
Lawyers NNS
Title NNP
Insurance NNP
Corp. NNP
, ,
a DT
unit NN
of IN
Richmond NNP
, ,
Va.-based JJ
Universal NNP
Corp. NNP
; :
and CC
Stewart NNP
Title NNP
Guaranty NNP
Co. NNP
, ,
a DT
unit NN
of IN
Houston-based NNP
Stewart NNP
Information NNP
Services NNP
Corp NNP
. .

Chicago NNP
Title NN
& CC
Trust NNP
acquired VBD
Safeco NNP
in IN
1987 CD
and CC
changed VBD
the DT
unit NN
's POS
name NN
to TO
Security NNP
Union NNP
Title NNP
Insurance NNP
Co NNP
. .

The DT
FTC NNP
ruled VBD
that IN
the DT
companies NNS
violated VBD
federal JJ
antitrust JJ
law NN
by IN
fixing VBG
rates NNS
in IN
the DT
following VBG
states NNS
: :
New NNP
Jersey NNP
, ,
Pennsylvania NNP
, ,
Connecticut NNP
, ,
Wisconsin NNP
, ,
Arizona NNP
and CC
Montana NNP
. .

The DT
FTC NNP
first RB
issued VBN
an DT
administrative JJ
complaint NN
in IN
the DT
case NN
in IN
1985 CD
. .

John NNP
Christie NNP
, ,
a DT
lawyer NN
here RB
for IN
the DT
two CD
Chicago NNP
Title NN
& CC
Trust NNP
units NNS
accused VBD
the DT
FTC NNP
of IN
`` ``
second-guessing NN
'' ''
state-level JJ
regulations NNS
, ,
with IN
which WDT
, ,
he PRP
said VBD
, ,
his PRP$
clients NNS
had VBD
complied VBN
. .

`` ``
I PRP
expect VBP
all PDT
the DT
companies NNS
to TO
appeal VB
, ,
'' ''
he PRP
added VBD
. .

A DT
lawyer NN
for IN
Lawyers NNS
Title NN
said VBD
that IN
, ,
because IN
the DT
named VBN
companies NNS
no RB
longer RB
use VBP
the DT
type NN
of IN
cooperative JJ
rating NN
bureaus NN
attacked VBN
by IN
the DT
FTC NNP
, ,
the DT
commission NN
's POS
order NN
wo MD
n't RB
have VB
much JJ
practical JJ
impact NN
. .

Officials NNS
for IN
the DT
other JJ
named VBN
companies NNS
did VBD
n't RB
return VB
telephone NN
calls VBZ
seeking VBG
comment VB
. .

MARK NNP
RESOURCES NNP
INC. NNP
, ,
Calgary NNP
, ,
Alberta NNP
, ,
said VBD
it PRP
agreed VBD
to TO
sell VB
75 CD
million CD
Canadian JJ
dollars NNS
-LRB- (
US$ $
63.9 CD
million CD
-RRB- )
of IN
8 CD
% NN
convertible JJ
debentures NNS
to TO
a DT
group NN
of IN
securities NNS
dealers NNS
. .

Mark NNP
, ,
an DT
oil NN
and CC
gas NN
concern NN
, ,
said VBD
the DT
15-year JJ
debentures NNS
are VBP
convertible JJ
before IN
maturity NN
at IN
C$ $
12.50 CD
for IN
each DT
Mark NNP
common JJ
share NN
, ,
and CC
can MD
be VB
redeemed VBN
at IN
the DT
company NN
's POS
option NN
, ,
under IN
certain JJ
conditions NNS
, ,
after IN
Nov. NNP
30 CD
, ,
1992 CD
. .

The DT
government NN
will MD
try VB
to TO
sell VB
all PDT
the DT
real JJ
estate NN
managed VBN
by IN
the DT
Federal NNP
Asset NNP
Disposition NNP
Association NNP
in IN
one CD
fell VBD
swoop NN
, ,
said VBD
William NNP
Seidman NNP
, ,
chairman NN
of IN
the DT
Federal NNP
Deposit NNP
Insurance NNP
Corp NNP
. .

The DT
FADA NNP
real-estate NN
package NN
, ,
with IN
an DT
asking VBG
price NN
of IN
$ $
428 CD
million CD
, ,
is VBZ
comprised VBN
of IN
150 CD
properties NNS
in IN
Texas NNP
, ,
California NNP
, ,
Colorado NNP
, ,
Arizona NNP
and CC
Florida NNP
. .

It PRP
includes VBZ
apartments NNS
, ,
shopping NN
centers NNS
, ,
office NN
buildings NNS
and CC
undeveloped JJ
land NN
. .

Mr. NNP
Seidman NNP
is VBZ
chairman NN
of IN
the DT
Resolution NNP
Trust NNP
Corp. NNP
, ,
established VBN
to TO
sell VB
or CC
merge VB
the DT
nation NN
's POS
hundreds NNS
of IN
insolvent JJ
savings-and-loan JJ
associations NNS
. .

The DT
RTC NNP
, ,
created VBN
by IN
this DT
year NN
's POS
S&L NNP
bailout NN
legislation NN
, ,
is VBZ
trying VBG
to TO
sell VB
FADA NNP
's POS
network NN
of IN
offices NNS
separately RB
. .

FADA NNP
, ,
which WDT
holds VBZ
problem NN
assets NNS
of IN
thrifts NNS
that WDT
were VBD
closed VBN
before IN
the DT
bailout NN
legislation NN
was VBD
enacted VBN
, ,
is VBZ
being VBG
liquidated VBN
. .

The DT
properties NNS
held VBN
by IN
FADA NNP
wo MD
n't RB
be VB
sold VBN
piecemeal RB
, ,
Mr. NNP
Seidman NNP
said VBD
in IN
a DT
speech NN
before IN
Southern NNP
Methodist NNP
University NNP
Business NNP
School NNP
in IN
Dallas NNP
. .

`` ``
You PRP
need VBP
to TO
buy VB
the DT
entire JJ
lot NN
, ,
'' ''
Mr. NNP
Seidman NNP
said VBD
, ,
`` ``
so RB
get VB
out RP
your PRP$
checkbooks NNS
. .

The DT
following VBG
were VBD
among IN
yesterday NN
's POS
offerings NNS
and CC
pricings NNS
in IN
the DT
U.S. NNP
and CC
non-U.S. JJ
capital NN
markets NNS
, ,
with IN
terms NNS
and CC
syndicate NN
manager NN
, ,
as IN
compiled VBN
by IN
Dow NNP
Jones NNP
Capital NNP
Markets NNP
Report NNP
: :

Sequa NNP
Corp. NNP
-- :
$ $
150 CD
million CD
of IN
9 CD
5\/8 CD
% NN
notes NNS
due JJ
Oct. NNP
15 CD
, ,
1999 CD
, ,
priced VBN
at IN
99.75 CD
to TO
yield VB
9.664 CD
% NN
. .

The DT
noncallable JJ
issue NN
was VBD
priced VBN
at IN
a DT
spread NN
of IN
170 CD
basis NN
points NNS
above IN
the DT
Treasury NNP
's POS
10-year JJ
note NN
. .

Rated VBN
Baa-2 JJ
by IN
Moody NNP
's POS
Investors NNP
Service NNP
Inc. NNP
and CC
triple-B-minus NNP
by IN
Standard NNP
& CC
Poor NNP
's POS
Corp. NNP
, ,
the DT
issue NN
will MD
be VB
sold VBN
through IN
underwriters NNS
led VBN
by IN
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
. .

Virginia NNP
Public NNP
School NNP
Authority NNP
-- :
$ $
55.7 CD
million CD
of IN
school NN
financing NN
bonds NNS
, ,
1989 CD
Series NNP
B NNP
-LRB- (
1987 CD
resolution NN
-RRB- )
, ,
due JJ
19912000 CD
, ,
2005 CD
and CC
2010 CD
, ,
through IN
a DT
BT NNP
Securities NNP
Corp. NNP
group NN
. .
The DT
bonds NNS
, ,
rated VBN
double-A JJ
by IN
Moody NNP
's POS
and CC
S&P NNP
, ,
were VBD
priced VBN
to TO
yield VB
from IN
6 CD
% NN
in IN
1991 CD
to TO
7.10 CD
% NN
in IN
2010 CD
. .

Serial JJ
bonds NNS
were VBD
priced VBN
to TO
yield VB
to TO
6.75 CD
% NN
in IN
2000 CD
. .

Bonds NNS
due JJ
1991-1996 CD
carry VB
6.70 CD
% NN
coupons NNS
and CC
bonds NNS
due JJ
1997-2000 CD
carry VB
6 CD
3\/4 CD
% NN
coupons NNS
. .

Term NN
bonds NNS
due JJ
2005 CD
are VBP
n't RB
being VBG
formally RB
reoffered VBN
. .

They PRP
carry VBP
a DT
7 CD
% NN
coupon NN
. .

Term NN
bonds NNS
due JJ
2010 CD
are VBP
7.10 CD
% NN
securities NNS
priced VBN
at IN
par NN
. .

St. NNP
Johns NNP
River NNP
Water NNP
Management NNP
District NNP
, ,
Fla. NNP
-- :
$ $
50,005,000 CD
of IN
land NN
acquisition NN
revenue NN
bonds NNS
, ,
Series NNP
1989 CD
, ,
due JJ
1990-2000 CD
, ,
2003 CD
, ,
2006 CD
and CC
2009 CD
, ,
tentatively RB
priced VBN
by IN
a DT
Smith NNP
Barney NNP
, ,
Harris NNP
Upham NNP
& CC
Co. NNP
group NN
to TO
yield VB
from IN
6 CD
% NN
in IN
1990 CD
to TO
about IN
7.03 CD
% NN
in IN
2003 CD
. .

There EX
are VBP
$ $
9.76 CD
million CD
of IN
7 CD
% NN
term NN
bonds NNS
due JJ
2003 CD
, ,
priced VBN
at IN
99 CD
3\/4 CD
to TO
yield VB
about IN
7.03 CD
% NN
. .

The DT
$ $
11,775,000 CD
of IN
term NN
bonds NNS
due JJ
2006 CD
and CC
the DT
$ $
13,865,000 CD
of IN
term NN
bonds NNS
due JJ
2009 CD
are VBP
n't RB
being VBG
formally RB
reoffered VBN
. .

Serial JJ
bonds NNS
were VBD
priced VBN
at IN
par NN
to TO
yield VB
to TO
6.90 CD
% NN
in IN
2000 CD
. .

The DT
bonds NNS
are VBP
insured VBN
and CC
rated VBN
triple-A JJ
by IN
Moody NNP
's POS
and CC
S&P NNP
. .

Federal NNP
Home NNP
Loan NNP
Mortgage NNP
Corp. NNP
-- :
$ $
500 CD
million CD
of IN
Remic NNP
mortgage NN
securities NNS
being VBG
offered VBN
in IN
12 CD
classes NNS
by IN
Salomon NNP
Brothers NNP
Inc NNP
. .

The DT
offering NN
, ,
Series NNP
105 CD
, ,
is VBZ
backed VBN
by IN
Freddie NNP
Mac NNP
9 CD
1\/2 CD
% NN
securities NNS
. .

Separately RB
, ,
$ $
400 CD
million CD
of IN
Freddie NNP
Mac NNP
Remic NNP
mortgage NN
securities NNS
is VBZ
being VBG
offered VBN
in IN
10 CD
classes NNS
by IN
Kidder NNP
, ,
Peabody NNP
& CC
Co NNP
. .

The DT
offering NN
, ,
Series NNP
106 CD
, ,
is VBZ
backed VBN
by IN
Freddie NNP
Mac NNP
9 CD
1\/2 CD
% NN
securities NNS
. .

According VBG
to TO
available JJ
details NNS
, ,
yields NNS
range VBP
from IN
8.70 CD
% NN
, ,
a DT
spread NN
of IN
80 CD
basis NN
points NNS
over IN
three-year JJ
Treasury NNP
securities NNS
, ,
to TO
10.37 CD
% NN
, ,
a DT
spread NN
of IN
230 CD
basis NN
points NNS
over IN
20-year JJ
Treasurys NNPS
. .

The DT
offerings NNS
bring VBP
Freddie NNP
Mac NNP
's POS
1989 CD
Remic NNP
issuance NN
to TO
$ $
32.6 CD
billion CD
and CC
its PRP$
total JJ
volume NN
to TO
$ $
46.5 CD
billion CD
since IN
the DT
program NN
began VBD
in IN
February NNP
1988 CD
. .

European NNP
Investment NNP
Bank NNP
-LRB- (
agency NN
-RRB- )
-- :
200 CD
billion CD
lire NNS
of IN
12 CD
% NN
bonds NNS
due JJ
Nov. NNP
16 CD
, ,
1995 CD
, ,
priced VBN
at IN
101 CD
3\/4 CD
to TO
yield VB
12 CD
% NN
less RBR
full JJ
fees NNS
, ,
via IN
lead NN
manager NN
Banco NNP
Commercial NNP
Italiana NNP
. .
Fees NNS
1 CD
3\/4 CD
. .

IBM NNP
International NNP
Finance NNP
-LRB- (
U.S. NNP
parent NN
-RRB- )
-- :
125 CD
million CD
European JJ
currency NN
units NNS
of IN
9 CD
1\/8 CD
% NN
bonds NNS
due JJ
Nov. NNP
10 CD
, ,
1994 CD
, ,
priced VBN
at IN
101 CD
5\/8 CD
to TO
yield VB
9.13 CD
% NN
at IN
the DT
recommended VBN
reoffered VBN
price NN
of IN
par NN
, ,
via IN
Banque NNP
Paribas NNP
Capital NNP
Markets NNPS
. .

Societe NNP
Generale NNP
Australia NNP
Ltd NNP
. .
-LRB- (
French JJ
parent NN
-RRB- )
-- :
50 CD
million CD
Australian JJ
dollars NNS
of IN
17 CD
% NN
bonds NNS
due JJ
Nov. NNP
20 CD
, ,
1991 CD
, ,
priced VBN
at IN
101.90 CD
to TO
yield VB
16.59 CD
less JJR
fees NNS
, ,
via IN
Westpac NNP
Banking NNP
Corp NNP
. .

Guaranteed VBN
by IN
Societe NNP
Generale NNP
. .

Fees NNS
1 CD
1\/4 CD
. .

Mitsubishi NNP
Trust NNP
& CC
Banking NNP
Corp NNP
. .
-LRB- (
Japan NNP
-RRB- )
-- :
200 CD
million CD
Swiss JJ
francs NNS
of IN
privately RB
placed VBN
convertible JJ
notes NNS
due JJ
March NNP
31 CD
, ,
1994 CD
, ,
with IN
a DT
fixed VBN
0.75 CD
% NN
coupon NN
at IN
par NN
, ,
via IN
Union NNP
Bank NNP
of IN
Switzerland NNP
. .

Put VB
option NN
on IN
March NNP
31 CD
, ,
1992 CD
, ,
at IN
a DT
fixed VBN
107 CD
3\/4 CD
to TO
yield VB
3.5 CD
% NN
. .

Callable JJ
from IN
March NNP
31 CD
, ,
1992 CD
, ,
at IN
107 CD
3\/4 CD
, ,
declining VBG
two CD
points NNS
semi-annually RB
to TO
par NN
. .

Each DT
50,000 CD
Swiss JJ
franc NN
note NN
is VBZ
convertible JJ
from IN
Nov NNP
, ,
27 CD
, ,
1989 CD
, ,
to TO
March NNP
21 CD
, ,
1994 CD
, ,
at IN
a DT
premium NN
over IN
the DT
closing VBG
share NN
price NN
Oct. NNP
25 CD
, ,
when WRB
terms NNS
are VBP
scheduled VBN
to TO
be VB
fixed VBN
. .

Also RB
, ,
the DT
company NN
issued VBN
300 CD
million CD
marks NNS
of IN
convertible JJ
bonds NNS
with IN
an DT
indicated VBD
2 CD
3\/4 CD
% NN
coupon NN
due JJ
March NNP
31 CD
, ,
1995 CD
, ,
at IN
par NN
, ,
via IN
Westdeutsche NNP
Landesbank NNP
Girozentrale NNP
Bank NNP
. .

Put VB
on IN
March NNP
31 CD
, ,
1992 CD
, ,
at IN
an DT
indicated VBD
105 CD
to TO
yield VB
4.80 CD
% NN
. .

Call VB
option NN
beginning VBG
March NNP
31 CD
, ,
1992 CD
, ,
if IN
the DT
price NN
of IN
the DT
stock NN
rises VBZ
more JJR
than IN
50 CD
% NN
within IN
30 CD
trading NN
days NNS
as RB
well RB
as IN
a DT
call NN
option NN
for IN
tax NN
reasons NNS
. .

Each DT
1,000 CD
mark NN
and CC
10,000 CD
mark NN
bond NN
is VBZ
convertible JJ
from IN
Nov. NNP
27 CD
, ,
1989 CD
, ,
to TO
March NNP
21 CD
, ,
1995 CD
, ,
at IN
a DT
price NN
to TO
be VB
determined VBN
when WRB
terms NNS
are VBP
fixed VBN
Oct. NNP
25 CD
. .

Scandinavian NNP
Airlines NNP
System NNP
-LRB- (
Sweden NNP
-RRB- )
-- :
100 CD
million CD
Swiss JJ
francs NNS
of IN
6 CD
1\/8 CD
% NN
bonds NNS
due JJ
Nov. NNP
24 CD
, ,
1999 CD
, ,
priced VBN
at IN
100 CD
3\/4 CD
to TO
yield VB
6.03 CD
% NN
, ,
via IN
Union NNP
Bank NNP
of IN
Switzerland NNP
. .

Call VB
from IN
Nov. NNP
24 CD
, ,
1994 CD
, ,
at IN
101 CD
1\/2 CD
, ,
declining VBG
1\/4 CD
point NN
a DT
year NN
. .

Federal NNP
Home NNP
Loan NNP
Mortgage NNP
Corp. NNP
-- :
$ $
400 CD
million CD
of IN
10-year JJ
debentures NNS
with IN
a DT
coupon NN
rate NN
of IN
8.80 CD
% NN
, ,
priced VBN
at IN
par NN
. .

The DT
debentures NNS
, ,
callable JJ
at IN
par NN
in IN
five CD
years NNS
, ,
were VBD
priced VBN
at IN
a DT
yield NN
spread NN
of IN
about IN
86 CD
basis NN
points NNS
above IN
the DT
Treasury NNP
10-year JJ
note NN
. .

The DT
issue NN
is VBZ
being VBG
sold VBN
through IN
Freddie NNP
Mac NNP
's POS
17-member JJ
securities NNS
selling VBG
group NN
. .

The DT
debentures NNS
mature NNP
Oct. NNP
27 CD
, ,
1999 CD
. .

The DT
debentures NNS
will MD
be VB
available JJ
in IN
book-entry JJ
form NN
only RB
in IN
a DT
minimum JJ
amount NN
of IN
$ $
5,000 CD
and CC
additional JJ
increments NNS
of IN
$ $
5,000 CD
. .

Interest NN
will MD
be VB
paid VBN
semi-annually RB
. .

First NNP
they PRP
get VBP
us PRP
to TO
buy VB
computers NNS
so IN
we PRP
can MD
get VB
more JJR
information NN
. .

Then RB
the DT
computers NNS
give VBP
us PRP
more JJR
information NN
than IN
we PRP
can MD
ever RB
read VB
. .

Now RB
they PRP
plan VBP
to TO
sell VB
us PRP
products NNS
that WDT
sift VBP
through IN
all PDT
the DT
information NN
to TO
give VB
us PRP
what WP
we PRP
really RB
want VBP
to TO
know VB
. .

The DT
products NNS
range VBP
from IN
computer-edited JJ
, ,
personal JJ
newsletters NNS
to TO
systems NNS
that WDT
sit VBP
inside IN
a DT
personal JJ
computer NN
and CC
pick VB
stories NNS
on IN
selected VBN
topics NNS
off IN
news NN
wires NNS
. .

`` ``
Filtered VBN
news NN
is VBZ
what WP
people NNS
want VBP
, ,
'' ''
says VBZ
Esther NNP
Dyson NNP
, ,
editor NN
of IN
Release NNP
1.0 CD
, ,
an DT
industry NN
newsletter NN
that IN
spots VBZ
new JJ
developments NNS
. .

`` ``
Most JJS
people NNS
read VBP
10 CD
times NNS
more JJR
than IN
necessary JJ
in IN
order NN
to TO
find VB
out IN
what WP
they PRP
really RB
need VBP
. .
'' ''

Geoffrey NNP
Goodfellow NNP
, ,
who WP
dropped VBD
out IN
of IN
high JJ
school NN
back RB
in IN
the DT
1970s NNS
to TO
manage VB
a DT
computer NN
network NN
at IN
a DT
California NNP
research NN
firm NN
, ,
says VBZ
: :
`` ``
Old NNP
network NN
hands NNS
have VBP
started VBN
to TO
turn VB
off IN
the DT
network NN
because IN
they PRP
do VBP
n't RB
have VB
time NN
to TO
wade VB
through IN
the DT
muck NN
. .
'' ''

Mr. NNP
Goodfellow NNP
has VBZ
started VBN
a DT
Menlo NNP
Park NNP
, ,
Calif. NNP
, ,
company NN
called VBN
Anterior NNP
Technology NNP
that WDT
provides VBZ
human JJ
editors NNS
for IN
public JJ
electronic JJ
networks NNS
. .
`` ``
I PRP
see VBP
it PRP
as IN
a DT
sewage NN
treatment NN
plant NN
, ,
'' ''
he PRP
says VBZ
. .

A DT
new JJ
product NN
, ,
NewsEdge NNP
, ,
carries VBZ
five CD
business NN
news NN
wires NNS
simultaneously RB
into IN
a DT
user NN
's POS
computer NN
and CC
beeps NNS
and CC
flashes NNS
whenever WRB
an DT
article NN
appears VBZ
that WDT
is NNS
of IN
interest NN
to TO
the DT
user NN
. .

The DT
product NN
, ,
developed VBN
by IN
Desktop NNP
Data NNP
Corp. NNP
, ,
a DT
new JJ
company NN
based VBN
in IN
Waltham NNP
, ,
Mass. NNP
, ,
scans VBZ
the DT
wires NNS
looking VBG
for IN
articles NNS
that WDT
contain VBP
key JJ
words NNS
specified VBN
by IN
the DT
user NN
. .

One CD
early JJ
user NN
, ,
David NNP
Semmel NNP
, ,
a DT
Chicago NNP
venture NN
capitalist NN
and CC
investor NN
in IN
Desktop NNP
Data NNP
, ,
says VBZ
he PRP
uses VBZ
it PRP
to TO
track VB
takeover NN
developments NNS
. .

He PRP
says VBZ
he PRP
told VBD
NewsEdge NNP
to TO
look VB
for IN
stories NNS
containing VBG
such JJ
words NNS
as IN
takeover NN
, ,
acquisition NN
, ,
acquire VB
, ,
LBO NNP
, ,
tender NN
, ,
merger NN
, ,
junk NN
and CC
halted VBN
. .

`` ``
I PRP
'm VBP
pretty RB
confident JJ
I PRP
'm VBP
catching VBG
everything NN
, ,
'' ''
he PRP
says VBZ
. .

NewsEdge NNP
is VBZ
pricey JJ
: :
$ $
7,500 CD
a DT
year NN
for IN
a DT
limited JJ
version NN
, ,
$ $
40,000 CD
a DT
year NN
if IN
the DT
cost NN
of IN
all PDT
the DT
news NN
wires NNS
is VBZ
included VBN
. .

And CC
it PRP
works VBZ
best JJS
in IN
high-powered JJ
personal JJ
computers NNS
. .

But CC
some DT
investors NNS
and CC
consultants NNS
who WP
have VBP
tried VBN
it PRP
are VBP
enthusiastic JJ
. .

Jeffrey NNP
Tarter NNP
, ,
editor NN
of IN
SoftLetter NNP
, ,
a DT
Watertown NNP
, ,
Mass. NNP
, ,
industry NN
newsletter NN
, ,
says VBZ
: :
`` ``
I PRP
've VBP
seen VBN
a DT
lot NN
of IN
people NNS
fooling VBG
around IN
on IN
the DT
fringes NNS
of IN
filtering VBG
information NN
. .

This DT
is VBZ
the DT
first JJ
time NN
I PRP
've VBP
seen VBN
something NN
I PRP
could MD
imagine VB
a DT
lot NN
of IN
people NNS
using VBG
. .
'' ''

NewsEdge NNP
uses VBZ
an DT
FM NNP
radio NN
band NN
to TO
carry VB
news NN
wires NNS
provided VBN
by IN
Reuters NNP
, ,
McGraw-Hill NNP
and CC
Dow NNP
Jones NNP
& CC
Co. NNP
, ,
as RB
well RB
as IN
PR NNP
Newswire NNP
, ,
which WDT
carries VBZ
corporate JJ
press NN
releases NNS
. .
An DT
FM NNP
receiver NN
attached VBN
to TO
a DT
user NN
's POS
personal JJ
computer NN
receives VBZ
the DT
information NN
. .

Some DT
organizations NNS
have VBP
devised VBN
their PRP$
own JJ
systems NNS
to TO
sort VB
through IN
news NN
wire NN
items NNS
as IN
they PRP
come VBP
in RB
. .

George NNP
Goodwin NNP
, ,
an DT
account NN
manager NN
at IN
Royal NNP
Bank NNP
of IN
Canada NNP
, ,
adapted VBD
a DT
Lotus NNP
Development NNP
Corp. NNP
program NN
called VBN
Agenda NNP
to TO
sort VB
through IN
international JJ
news NN
wires NNS
. .

It PRP
automatically RB
selects VBZ
stories NNS
from IN
particular JJ
countries NNS
for IN
reading NN
by IN
the DT
international JJ
bankers NNS
responsible JJ
for IN
lending NN
in IN
those DT
areas NNS
. .

For IN
those DT
who WP
do VBP
n't RB
need VB
their PRP$
personalized VBN
information NN
moment NN
by IN
moment NN
, ,
some DT
services NNS
are VBP
offering VBG
overnight JJ
newsletters NNS
. .

Individual NNP
Inc. NNP
, ,
a DT
new JJ
company NN
in IN
Brookline NNP
, ,
Mass. NNP
, ,
uses VBZ
filtering VBG
technology NN
developed VBN
by IN
Cornell NNP
University NNP
computer NN
scientist NN
Gerard NNP
Salton NNP
, ,
to TO
automatically RB
produce VB
customized VBN
newsletters NNS
it PRP
sends VBZ
electronically RB
to TO
subscribers NNS
by IN
8 CD
a.m. NN
the DT
next JJ
day NN
. .

`` ``
We PRP
are VBP
operating VBG
an DT
information NN
refinery NN
that WDT
takes VBZ
a DT
broad JJ
stream NN
of IN
raw JJ
data NNS
and CC
turns VBZ
it PRP
into IN
actionable JJ
knowledge NN
, ,
'' ''
says VBZ
Yosi NNP
Amram NNP
, ,
founder NN
and CC
president NN
. .
The DT
daily JJ
newsletter NN
, ,
which WDT
is VBZ
n't RB
widely RB
available JJ
yet RB
, ,
will MD
have VB
a DT
base NN
cost NN
of IN
$ $
2,000 CD
a DT
year NN
and CC
provides VBZ
full JJ
text NN
of IN
relevant JJ
articles NNS
under IN
license NN
agreements NNS
with IN
Reuters NNP
, ,
McGraw NNP
Hill NNP
, ,
United NNP
Press NNP
International NNP
, ,
two CD
press NN
release NN
news NN
wires NNS
and CC
Japan NNP
's POS
Kyodo NNP
news NN
service NN
. .

One CD
early JJ
user NN
is VBZ
NEC NNP
Corp. NNP
's POS
U.S. NNP
printer NN
marketing NN
arm NN
. .

`` ``
They PRP
want VBP
the DT
full JJ
press NN
releases NNS
on IN
printer NN
announcements NNS
by IN
their PRP$
competition NN
, ,
'' ''
Mr. NNP
Amram NNP
says VBZ
. .

It PRP
also RB
tracks VBZ
personnel NNS
and CC
financial JJ
announcements NNS
by IN
NEC NNP
's POS
distributors NNS
and CC
customers NNS
. .

Individual NNP
Inc. NNP
's POS
technology NN
goes VBZ
beyond IN
word NN
searches NNS
by IN
using VBG
a DT
computerized JJ
thesaurus NN
. .
If IN
a DT
customer NN
asks VBZ
for IN
stories NNS
about IN
`` ``
IBM NNP
, ,
'' ''
the DT
computer NN
will MD
also RB
supply VB
stories NNS
that WDT
mention VBP
`` ``
I.B.M. NNP
, ,
International NNP
Business NNP
Machines NNPS
, ,
or CC
Big NNP
Blue NNP
, ,
'' ''
Mr. NNP
Amram NNP
says VBZ
. .

Moreover RB
, ,
Individual NNP
Inc. NNP
's POS
computers NNS
can MD
weigh VB
the DT
value NN
of IN
an DT
article NN
based VBN
on IN
how WRB
closely RB
the DT
story NN
matches VBZ
the DT
subscriber NN
's POS
interest NN
area NN
. .

It PRP
compares VBZ
the DT
position NN
of IN
key JJ
words NNS
in IN
the DT
story NN
; :
words NNS
in IN
the DT
headline NN
or CC
first JJ
paragraph NN
get VB
a DT
higher JJR
value NN
. .

And CC
it PRP
calculates VBZ
how WRB
often RB
the DT
words NNS
appear VBP
in IN
the DT
story NN
compared VBN
with IN
how WRB
often RB
they PRP
appear VBP
in IN
the DT
entire JJ
data NNS
base VBP
. .

The DT
higher JJR
the DT
ratio NN
of IN
hits NNS
to TO
total VB
words NNS
, ,
the DT
higher JJR
the DT
presumed VBN
value NN
to TO
the DT
reader NN
. .

Pinpoint NNP
Information NNP
Corp. NNP
, ,
Chantilly NNP
, ,
Va. NNP
, ,
a DT
producer NN
of IN
$ $
1,800-a-year RB
personalized VBN
newsletters NNS
about IN
the DT
computer NN
industry NN
that WDT
started VBD
full JJ
operation NN
last JJ
month NN
, ,
relies VBZ
on IN
12 CD
human JJ
readers NNS
to TO
code VB
news NN
releases NNS
by IN
topic NN
in IN
order NN
to TO
select VB
items NNS
for IN
each DT
subscriber NN
. .
`` ``
The DT
computers NNS
find VBP
all PDT
the DT
key JJ
words NNS
they PRP
can MD
, ,
but CC
the DT
editors NNS
confirm VBP
every DT
one CD
. .

Computer NNP
picking VBG
is VBZ
n't RB
perfect JJ
, ,
'' ''
says VBZ
Harvey NNP
Golomb NNP
, ,
president NN
and CC
founder NN
of IN
Pinpoint NNP
. .

The DT
humans NNS
also RB
write VBP
abstracts NNS
of IN
articles NNS
from IN
some DT
200 CD
computer NN
industry NN
publications NNS
. .

Once RB
all PDT
the DT
articles NNS
are VBP
coded VBN
and CC
put VB
in IN
a DT
data NNS
base VBP
, ,
Pinpoint NNP
's POS
computers NNS
pick VBP
the DT
most RBS
relevant JJ
for IN
each DT
subscriber NN
and CC
lay VBD
them PRP
out IN
in IN
a DT
three-to-five-page JJ
newsletter NN
format NN
; :
each DT
newsletter NN
is VBZ
sent VBN
directly RB
from IN
the DT
computer NN
to TO
the DT
subscriber NN
's POS
fax NN
machine NN
. .

Mr. NNP
Golomb NNP
says VBZ
each DT
of IN
his PRP$
computers NNS
can MD
produce VB
and CC
send VB
about IN
75 CD
unique JJ
newsletters NNS
a DT
night NN
. .

Many JJ
computer NN
network NN
users NNS
who WP
never RB
see VB
news NN
wires NNS
would MD
like VB
to TO
sort VB
through IN
their PRP$
electronic JJ
mail NN
automatically RB
. .

So-called JJ
E-mail NN
is VBZ
the DT
collection NN
of IN
inter-office JJ
memos NNS
, ,
gossip NN
, ,
technical JJ
data NNS
, ,
schedules NNS
and CC
directives NNS
distributed VBN
over IN
local JJ
and CC
national JJ
computer NN
networks NNS
. .

`` ``
All DT
these DT
interconnected VBN
computers NNS
make VBP
it PRP
difficult JJ
to TO
sort VB
out IN
what WP
's VBZ
junk NN
and CC
what WP
's VBZ
important JJ
, ,
'' ''
says VBZ
Chuck NNP
Digate NNP
, ,
a DT
former JJ
Lotus NNP
Development NNP
executive NN
who WP
has VBZ
started VBN
a DT
new JJ
company NN
to TO
cope VB
with IN
the DT
problem NN
. .

Mr. NNP
Digate NNP
says VBZ
his PRP$
firm NN
, ,
Beyond IN
Inc. NNP
, ,
has VBZ
licensed VBN
technology NN
known VBN
as IN
Information NNP
Lens NNP
from IN
Massachusetts NNP
Institute NNP
of IN
Technology NNP
and CC
plans NNS
to TO
develop VB
it PRP
for IN
commercial JJ
use NN
. .

The DT
MIT NNP
project NN
devised VBD
ways NNS
for IN
E-mail NN
to TO
be VB
automatically RB
categorized VBN
as IN
top JJ
priority NN
if IN
it PRP
comes VBZ
from IN
certain RB
designated VBN
senders NNS
or CC
requires VBZ
action NN
in IN
the DT
next JJ
couple NN
of IN
days NNS
. .

Mr. NNP
Digate NNP
says VBZ
that IN
Beyond IN
will MD
refine VB
the DT
product NN
`` ``
so RB
the DT
message NN
will MD
be VB
smart JJ
enough RB
to TO
know VB
to TO
come VB
back RB
and CC
bother VB
you PRP
again RB
next JJ
week NN
. .
'' ''

And CC
if IN
a DT
user NN
is VBZ
busy JJ
, ,
`` ``
he PRP
can MD
set VB
it PRP
for IN
crisis NN
mode NN
: :
` ``
Do VBP
n't RB
bother VB
me PRP
with IN
reports NNS
until IN
Monday NNP
. .
' ''
'' ''

A DT
program NN
called VBD
Notes NNS
, ,
which WDT
is VBZ
under IN
development NN
by IN
Lotus NNP
, ,
also RB
is VBZ
designed VBN
to TO
sort VB
E-mail NN
sent VBD
within IN
work NN
groups NNS
. .

One CD
thing NN
that WDT
makes VBZ
E-mail NN
difficult JJ
to TO
sift VB
through IN
is VBZ
that IN
each DT
item NN
looks VBZ
the DT
same JJ
. .

Notes NNS
, ,
which WDT
is VBZ
designed VBN
for IN
advanced VBN
computers NNS
that IN
display NN
graphics NNS
, ,
allows VBZ
mail NN
senders NNS
to TO
put VB
different JJ
logos NNS
on IN
their PRP$
mail NN
. .

A DT
daily JJ
news NN
briefing NN
from IN
the DT
company NN
librarian NN
, ,
for IN
example NN
, ,
would MD
have VB
a DT
distinctive JJ
format NN
on IN
the DT
screen NN
, ,
just RB
as IN
a DT
paper NN
version NN
would MD
have VB
. .

`` ``
With IN
E-mail NN
, ,
you PRP
do VBP
n't RB
have VB
the DT
visual JJ
clues NNS
of IN
paper NN
, ,
'' ''
says VBZ
Mr. NNP
Tarter NNP
, ,
the DT
editor NN
of IN
SoftLetter NNP
. .

`` ``
With IN
Notes NNS
, ,
they PRP
're VBP
visually RB
distinct JJ
. .

Dean NNP
Witter NNP
Reynolds NNP
Inc. NNP
lost VBD
its PRP$
second JJ
recent JJ
arbitration NN
case NN
involving VBG
a DT
former JJ
bond-trading JJ
executive NN
. .

A DT
New NNP
York NNP
Stock NNP
Exchange NNP
arbitration NN
panel NN
ordered VBD
Dean NNP
Witter NNP
to TO
pay VB
$ $
404,294 CD
in IN
back RB
bonuses VBZ
to TO
William NNP
Kelly NNP
, ,
the DT
company NN
's POS
former JJ
head NN
of IN
high-yield JJ
, ,
high-risk JJ
junk-bond NN
trading NN
and CC
sales NNS
. .

It PRP
also RB
awarded VBD
$ $
196,785 CD
in IN
back RB
bonuses VBZ
to TO
former JJ
trader NN
Michael NNP
Newcomb NNP
and CC
$ $
69,105 CD
in IN
fees NNS
to TO
the DT
two CD
men NNS
's POS
attorneys NNS
. .

The DT
sums NNS
awarded VBN
to TO
Messrs. NNP
Kelly NNP
and CC
Newcomb NNP
represent VB
bonuses VBZ
the DT
two CD
men NNS
said VBD
they PRP
deserved VBD
from IN
the DT
first JJ
half NN
of IN
1988 CD
, ,
but CC
which WDT
were VBD
n't RB
paid VBN
because IN
of IN
a DT
dispute NN
over IN
an DT
incentive NN
contract NN
. .

Jeffrey NNP
L. NNP
Liddle NNP
, ,
the DT
two CD
men NNS
's POS
attorney NN
at IN
Liddle NNP
, ,
O'Connor NNP
, ,
Finkelstein NNP
& CC
Robinson NNP
, ,
said VBD
Mr. NNP
Kelly NNP
began VBD
working VBG
at IN
Dean NNP
Witter NNP
in IN
1987 CD
. .

Mr. NNP
Kelly NNP
built VBD
the DT
company NN
's POS
high-yield JJ
bond NN
group NN
, ,
which WDT
has VBZ
been VBN
a DT
minor JJ
player NN
in IN
the DT
junk-bond NN
arena NN
. .

Dean NNP
Witter NNP
lost VBD
a DT
separate JJ
case NN
involving VBG
a DT
former JJ
bond NN
executive NN
earlier RBR
this DT
year NN
; :
in IN
August NNP
it PRP
paid VBD
$ $
666,666 CD
in IN
back JJ
pay NN
and CC
a DT
bonus NN
to TO
a DT
former JJ
corporate-bond JJ
trading NN
chief NN
, ,
Harold NNP
Bachman NNP
. .

That DT
award NN
ended VBD
a DT
dispute NN
between IN
Dean NNP
Witter NNP
and CC
Mr. NNP
Bachman NNP
over IN
who WP
was VBD
responsible JJ
for IN
certain JJ
bond-trading JJ
losses NNS
around IN
the DT
time NN
of IN
the DT
1987 CD
stock-market NN
crash NN
. .

A DT
spokesman NN
for IN
Dean NNP
Witter NNP
, ,
a DT
unit NN
of IN
Sears NNP
, ,
Roebuck NNP
& CC
Co. NNP
, ,
declined VBD
to TO
comment VB
. .

DILLARD NNP
DEPARTMENT NNP
STORES NNP
Inc. NNP
said VBD
it PRP
offered VBD
$ $
50 CD
million CD
of IN
9 CD
1\/2 CD
% NN
debentures NNS
due JJ
2001 CD
at IN
par NN
. .

The DT
Little NNP
Rock NNP
, ,
Ark. NNP
, ,
department-store NN
retailer NN
said VBD
proceeds NNS
will MD
be VB
used VBN
to TO
reduce VB
short-term JJ
debt NN
. .

Goldman NNP
, ,
Sachs NNP
& CC
Co. NNP
was VBD
the DT
underwriter NN
. .

American NNP
Brands NNP
Inc. NNP
said VBD
third-quarter JJ
net JJ
income NN
rose VBD
13 CD
% NN
, ,
reflecting VBG
strong JJ
gains NNS
in IN
its PRP$
tobacco NN
and CC
distilled VBN
spirits NNS
businesses NNS
. .

The DT
company NN
, ,
which WDT
also RB
has VBZ
businesses NNS
in IN
life NN
insurance NN
, ,
office NN
products NNS
and CC
hardware NN
, ,
and CC
home-improvement NN
products NNS
, ,
said VBD
net JJ
income NN
rose VBD
to TO
$ $
166.4 CD
million CD
, ,
or CC
$ $
1.71 CD
a DT
share NN
, ,
from IN
$ $
146.8 CD
million CD
, ,
or CC
$ $
1.53 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Year-earlier JJ
results NNS
for IN
the DT
quarter NN
and CC
the DT
nine CD
months NNS
were VBD
restated VBN
to TO
reflect VB
a DT
change NN
in IN
accounting NN
standards NNS
. .

Revenue NN
declined VBD
2 CD
% NN
, ,
to TO
$ $
3.06 CD
billion CD
from IN
$ $
3.13 CD
billion CD
, ,
because IN
of IN
the DT
sale NN
of IN
Southland NNP
Life NNP
in IN
March NNP
, ,
and CC
the DT
impact NN
of IN
the DT
stronger JJR
U.S. NNP
dollar NN
on IN
overseas JJ
results NNS
. .

Operating NN
profit NN
for IN
world-wide JJ
tobacco NN
products NNS
rose VBD
10 CD
% NN
to TO
$ $
247.6 CD
million CD
. .

For IN
distilled VBN
spirits NNS
, ,
operating VBG
profit NN
rose VBD
36 CD
% NN
, ,
to TO
$ $
24.8 CD
million CD
. .

In IN
the DT
first JJ
nine CD
months NNS
, ,
net NN
rose VBD
1.5 CD
% NN
, ,
to TO
$ $
458.8 CD
million CD
, ,
or CC
$ $
4.76 CD
a DT
share NN
, ,
from IN
$ $
452 CD
million CD
, ,
or CC
$ $
4.50 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

The DT
year-earlier JJ
period NN
included VBD
$ $
40.1 CD
million CD
, ,
or CC
41 CD
cents NNS
a DT
share NN
, ,
from IN
discontinued VBN
operations NNS
. .

Revenue NN
rose VBD
to TO
$ $
9.03 CD
billion CD
from IN
$ $
8.98 CD
billion CD
. .

The DT
average JJ
number NN
of IN
shares NNS
outstanding JJ
rose VBD
2 CD
% NN
in IN
the DT
third JJ
quarter NN
but CC
was VBD
down RB
4 CD
% NN
for IN
the DT
nine CD
months NNS
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
American NNP
Brands NNP
shares NNS
rose VBD
$ $
1.75 CD
to TO
$ $
73 CD
. .

SANTA NNP
FE NNP
PACIFIC NNP
PIPELINE NNP
PARTNERS NNP
Limited NNP
Partnership NNP
, ,
of IN
Los NNP
Angeles NNP
, ,
increased VBD
its PRP$
quarterly JJ
cash NN
dividend NN
to TO
60 CD
cents NNS
a DT
unit NN
from IN
55 NN
cents NNS
, ,
payable JJ
Nov. NNP
14 CD
to TO
units NNS
of IN
record NN
Oct. NNP
31 CD
. .

The DT
company NN
is VBZ
an DT
independent JJ
refined-petroleum-products JJ
pipeline NN
serving VBG
six CD
Western JJ
states NNS
. .

WASHINGTON NNP
LIES VBZ
LOW RB
after IN
the DT
stock NN
market NN
's POS
roller-coaster NN
ride NN
. .

Lawmakers NNS
, ,
haunted VBN
by IN
charges NNS
that IN
some DT
of IN
their PRP$
comments NNS
contributed VBD
to TO
the DT
1987 CD
crash NN
, ,
generally RB
shy JJ
away RB
from IN
calls VBZ
for IN
sweeping VBG
new JJ
legislation NN
. .

But CC
a DT
House NNP
Energy NNP
and CC
Commerce NNP
subcommittee NN
will MD
quiz VB
SEC NNP
Chairman NNP
Breeden NNP
Wednesday NNP
, ,
and CC
Treasury NNP
Secretary NNP
Brady NNP
will MD
go VB
before IN
the DT
Senate NNP
Banking NNP
panel NN
Thursday NNP
. .

The DT
market NN
's POS
wild JJ
week NN
may MD
speed VB
along IN
the DT
market-reform JJ
legislation NN
that WDT
has VBZ
been VBN
pending VBG
for IN
months NNS
in IN
the DT
aftermath NN
of IN
the DT
1987 CD
crash NN
. .

It PRP
may MD
also RB
expedite VB
the DT
SEC NNP
's POS
modest JJ
pending VBG
changes NNS
in IN
junk-bond NN
disclosure NN
rules NNS
and CC
intensify VB
the DT
Treasury NNP
's POS
look NN
at IN
plans NNS
for IN
giving VBG
new JJ
tax NN
breaks NNS
on IN
dividends NNS
and CC
raising VBG
taxes NNS
on IN
short-term JJ
trades NNS
by IN
pension NN
funds NNS
. .

Brady NNP
and CC
Breeden NNP
work NN
well RB
together RB
on IN
the DT
plunge NN
, ,
despite IN
the DT
fact NN
that IN
the DT
Treasury NNP
secretary NN
opposed VBN
Breeden NNP
's POS
nomination NN
to TO
the DT
SEC NNP
post NN
. .

BAKER NNP
FALTERS NNP
in IN
the DT
Mideast NNP
amid IN
Israeli JJ
paralysis NN
and CC
Palestinian JJ
politics NNS
. .

Despite IN
seeing VBG
his PRP$
plan NN
for IN
Israeli-Palestinian JJ
elections NNS
wither VBP
, ,
the DT
cautious JJ
secretary NN
of IN
state NN
is VBZ
so RB
far RB
unwilling JJ
to TO
cut VB
U.S. NNP
economic JJ
or CC
military JJ
aid NN
to TO
force VB
Israeli JJ
cooperation NN
. .
Baker NNP
nonetheless RB
remains VBZ
furious JJ
both DT
at IN
Shamir NNP
, ,
for IN
backing VBG
down RB
on IN
the DT
elections NNS
, ,
and CC
at IN
Shamir NNP
's POS
rival JJ
, ,
Peres NNP
, ,
for IN
political JJ
ineptitude NN
in IN
forcing VBG
a DT
premature JJ
cabinet NN
vote NN
on IN
Baker NNP
's POS
plan NN
. .

Meanwhile RB
, ,
some DT
U.S. NNP
officials NNS
fear VBP
PLO NNP
chief JJ
Arafat NNP
is VBZ
getting VBG
cold JJ
feet NNS
and CC
may MD
back RB
off IN
from IN
his PRP$
recent JJ
moderation NN
and CC
renunciation NN
of IN
terrorism NN
. .

He PRP
is VBZ
under IN
intense JJ
fire NN
from IN
other JJ
Palestinian JJ
groups NNS
; :
Syria NNP
is VBZ
pushing VBG
Ahmad NNP
Jibril NNP
, ,
whose WP$
terrorist JJ
band NN
is VBZ
blamed VBN
for IN
the DT
Pan NNP
Am NNP
103 CD
bombing NN
, ,
as IN
an DT
alternative NN
to TO
Arafat NNP
. .

DARMAN'S NNP
MANEUVERS NNS
on IN
the DT
budget NN
and CC
capital NN
gains NNS
hurt VBN
him PRP
in IN
Congress NNP
. .

Republicans NNS
as RB
well RB
as IN
Democrats NNPS
were VBD
angered VBN
by IN
the DT
budget NN
director NN
's POS
rejection NN
of IN
Speaker NNP
Foley NNP
's POS
effort NN
to TO
expedite VB
a DT
deficitcutting NN
measure NN
by IN
stripping VBG
it PRP
of IN
the DT
capital-gains NNS
tax VBP
cut VB
as RB
well RB
as IN
pet NN
Democratic JJ
projects NNS
. .

Darman NNP
now RB
blames VBZ
the DT
clash NN
on IN
miscommunication NN
, ,
but CC
House NNP
GOP NNP
leader NN
Michel NNP
, ,
who WP
carried VBD
the DT
offer NN
to TO
him PRP
, ,
observes VBZ
, ,
`` ``
I PRP
was VBD
speaking VBG
English NNP
at IN
the DT
time NN
, ,
and CC
quite RB
loud JJ
so IN
I PRP
could MD
be VB
understood VBN
. .
'' ''

Senate NNP
GOP NNP
leader NN
Dole NNP
ridicules VBZ
the DT
budget NN
chief NN
on IN
the DT
Senate NNP
floor NN
. .

Democratic JJ
counterpart NN
Mitchell NNP
, ,
asked VBD
to TO
interpret VB
Darman NNP
's POS
threat NN
to TO
make VB
permanent JJ
the DT
across-the-board JJ
Gramm-Rudman NNP
cuts NNS
that WDT
took VBD
effect NN
this DT
week NN
, ,
says VBZ
, ,
`` ``
I PRP
do VBP
n't RB
even RB
bother VB
to TO
interpret VB
them PRP
. .
'' ''

But CC
Darman NNP
suggests VBZ
such JJ
tensions NNS
will MD
dissipate VB
quickly RB
. .

`` ``
If IN
I PRP
can MD
show VB
signs NNS
of IN
maturity NN
, ,
almost JJ
anybody NN
can MD
, ,
'' ''
he PRP
jokes VBZ
. .

HHS NNP
OFFICIALS NNS
expect VBP
Secretary NNP
Sullivan NNP
to TO
continue VB
a DT
ban NN
on IN
research NN
using VBG
fetal JJ
tissue NN
. .

Before IN
he PRP
was VBD
confirmed VBN
, ,
Sullivan NNP
said VBD
he PRP
had VBD
`` ``
reservations NNS
about IN
any DT
blanket NN
prohibitions NNS
on IN
medical JJ
research NN
. .
'' ''

But CC
now RB
, ,
an DT
official NN
says VBZ
, ,
he PRP
is VBZ
`` ``
surrounded VBN
by IN
right-to-lifers NNS
, ,
'' ''
who WP
contend VBP
that IN
any DT
breakthroughs NNS
in IN
fetal-tissue JJ
research NN
could MD
increase VB
the DT
demand NN
for IN
abortions NNS
. .

COOPERATION NN
WANES VBZ
on IN
weapons NNS
development NN
between IN
the DT
U.S. NNP
and CC
Europe NNP
. .

Britain NNP
, ,
France NNP
and CC
Italy NNP
pull VB
out IN
of IN
a DT
proposal NN
to TO
build VB
new JJ
NATO NNP
frigates NNS
; :
the DT
U.S. NNP
and CC
West NNP
Germany NNP
have VBP
each DT
withdrawn VBN
from IN
missile NN
projects NNS
. .

Defense NN
experts NNS
say VBP
joint JJ
projects NNS
are VBP
increasingly RB
squeezed VBN
by IN
budget NN
pressures NNS
and CC
the DT
desire NN
to TO
save VB
domestic JJ
jobs NNS
; :
some DT
also RB
fear VBP
rising VBG
protectionism NN
as IN
European JJ
unity NN
nears NNS
. .

BOTH DT
SIDES NNS
NOW RB
: :

Virginia NNP
GOP NNP
lieutenant NN
governor NN
candidate NN
Eddy NNP
Dalton NNP
tries VBZ
to TO
have VB
it PRP
both DT
ways NNS
on IN
the DT
abortion NN
issue NN
. .

Though IN
she PRP
opposes VBZ
abortion NN
in IN
almost RB
all DT
cases NNS
, ,
she PRP
airs VBZ
a DT
TV NN
commercial JJ
using VBG
pro-choice JJ
buzzwords NNS
. .

`` ``
A DT
woman NN
ought MD
to TO
have VB
a DT
choice NN
in IN
cases NNS
where WRB
her PRP$
life NN
or CC
health NN
are VBP
in IN
danger NN
and CC
in IN
cases NNS
of IN
rape NN
or CC
incest NN
, ,
'' ''
she PRP
proclaims VBZ
. .

HOT JJ
TOPIC NN
: :

Interest NN
in IN
the DT
abortion NN
issue NN
is VBZ
so RB
great JJ
that IN
the DT
Hotline NNP
, ,
a DT
daily NN
, ,
computer-distributed JJ
political JJ
newsletter NN
, ,
comes VBZ
up IN
with IN
a DT
spinoff NN
product NN
called VBD
the DT
Abortion NNP
Report NNP
dealing VBG
solely RB
with IN
its PRP$
political JJ
implications NNS
. .

CONSERVATIVES NNS
EXPECT VBP
Bush NNP
to TO
solidify VB
their PRP$
majority NN
on IN
a DT
key JJ
court NN
. .

Bush NNP
has VBZ
three CD
vacancies NNS
to TO
fill VB
on IN
the DT
prestigious JJ
D.C. NNP
Circuit NNP
Court NNP
, ,
which WDT
handles VBZ
many JJ
important JJ
regulatory JJ
issues NNS
and CC
is VBZ
often RB
considered VBN
a DT
warm-up NN
for IN
future NN
Supreme NNP
Court NNP
nominees NNS
. .

Conservatives NNS
now RB
hold VBP
only RB
a DT
5-4 JJ
edge NN
. .

One CD
slot NN
is VBZ
expected VBN
to TO
go VB
to TO
EEOC NNP
Chairman NNP
Clarence NNP
Thomas NNP
, ,
a DT
black JJ
conservative JJ
; :
after IN
mulling VBG
a DT
fight NN
, ,
liberals NNS
now RB
probably RB
wo MD
n't RB
put VB
up IN
a DT
major JJ
struggle NN
against IN
him PRP
. .

Other JJ
conservatives NNS
thought VBD
to TO
be VB
on IN
the DT
administration NN
's POS
short JJ
list NN
include VBP
Washington NNP
lawyer NN
Michael NNP
Uhlmann NNP
, ,
who WP
was VBD
passed VBN
over IN
for IN
the DT
No. NN
2 CD
job NN
at IN
the DT
Justice NNP
Department NNP
, ,
and CC
Marshall NNP
Breger NNP
, ,
chairman NN
of IN
a DT
U.S. NNP
agency NN
on IN
administration NN
. .

The DT
Bush NNP
administration NN
would MD
also RB
like VB
to TO
nominate VB
a DT
woman NN
; :
one CD
possibility NN
is VBZ
former JJ
Justice NNP
Department NNP
official NN
Victoria NNP
Toensing NNP
. .

MINOR JJ
MEMOS NNS
: :

In IN
the DT
wake NN
of IN
the DT
failed VBN
Panama NNP
coup NN
, ,
a DT
bumper NN
sticker NN
appears VBZ
: :
`` ``
Ollie NNP
Would MD
Have VB
Got VB
Him PRP
. .
'' ''
... :

Rep. NNP
Garcia NNP
, ,
on IN
trial NN
for IN
bribery NN
and CC
extortion NN
, ,
puts VBZ
statements NNS
in IN
the DT
Congressional NNP
Record NNP
attributing VBG
missed VBN
votes NNS
to TO
`` ``
scheduling NN
conflicts NNS
. .
'' ''
... :

A DT
GOP NNP
Senate NNP
fund-raising NN
letter NN
from IN
Sen. NNP
Burns NNP
of IN
Montana NNP
is VBZ
made VBN
to TO
appear VB
personally RB
written VBN
, ,
and CC
its PRP$
opening NN
line NN
is VBZ
, ,
`` ``
Please VB
excuse VB
my PRP$
handwriting NN
. .
'' ''

But CC
Burns NNP
confesses VBZ
in IN
an DT
interview NN
: :
`` ``
That DT
's VBZ
not RB
my PRP$
handwriting NN
. .

MC NNP
SHIPPING NNP
Inc. NNP
, ,
New NNP
York NNP
, ,
declared VBD
an DT
initial JJ
quarterly NN
of IN
60 CD
cents NNS
a DT
share NN
payable JJ
Nov. NNP
15 CD
to TO
shares NNS
of IN
record NN
Oct. NNP
30 CD
. .

The DT
announcement NN
boosted VBD
the DT
charter-shipping JJ
company NN
's POS
shares NNS
, ,
which WDT
closed VBD
at IN
$ $
15.125 CD
, ,
up IN
$ $
1.25 CD
a DT
share NN
, ,
in IN
composite JJ
trading NN
on IN
the DT
American NNP
Stock NNP
Exchange NNP
. .

The DT
company NN
, ,
which WDT
went VBD
public JJ
in IN
May NNP
, ,
intends VBZ
to TO
pay VB
dividends NNS
from IN
available JJ
cash NN
flow NN
; :
the DT
amount NN
may MD
vary VB
from IN
quarter NN
to TO
quarter NN
. .

Ever RB
since IN
the DT
hotly RB
contested VBN
America NNP
's POS
Cup NNP
race NN
last JJ
year NN
, ,
the DT
famous JJ
yachting NN
match NN
has VBZ
run VBN
into IN
more RBR
rough JJ
sailing NN
out IN
of IN
the DT
water NN
than IN
in IN
it PRP
. .

Now RB
that IN
a DT
key JJ
member NN
of IN
the DT
San NNP
Diego NNP
Yacht NNP
Club NNP
team NN
is VBZ
splitting VBG
off IN
to TO
form VB
his PRP$
own JJ
team NN
, ,
even RB
more JJR
competition NN
lies VBZ
ahead RB
. .

Peter NNP
Isler NNP
, ,
the DT
winning VBG
navigator NN
in IN
the DT
past JJ
two CD
America NNP
's POS
Cup NNP
challenges NNS
, ,
has VBZ
split NN
from IN
the DT
team NN
led VBN
by IN
Dennis NNP
Conner NNP
, ,
skipper NN
of IN
the DT
victorious JJ
Stars NNP
& CC
Stripes NNP
, ,
to TO
form VB
his PRP$
own JJ
team NN
for IN
the DT
next JJ
contest NN
in IN
1992 CD
. .

And CC
, ,
in IN
addition NN
to TO
a DT
crack NN
team NN
of IN
sailors NNS
, ,
Mr. NNP
Isler NNP
has VBZ
lined VBN
up IN
some DT
real JJ
brass NN
to TO
help VB
him PRP
finance VB
the DT
syndicate NN
. .
Isler NNP
Sailing NNP
International NNP
's POS
advisory JJ
board NN
includes VBZ
Ted NNP
Turner NNP
, ,
Turner NNP
Broadcasting NNP
chairman NN
and CC
a DT
former JJ
Cup NNP
victor NN
; :
Peter NNP
G. NNP
Diamandis NNP
, ,
head NN
of IN
Diamandis NNP
Communications NNPS
, ,
and CC
Joseph NNP
B. NNP
Vittoria NNP
, ,
chairman NN
and CC
chief JJ
executive NN
of IN
Avis NNP
Inc NNP
. .

His PRP$
steering NN
committee NN
includes VBZ
other JJ
notable JJ
businessmen NNS
, ,
including VBG
the DT
California NNP
investor NN
and CC
old JJ
salt NN
Roy NNP
E. NNP
Disney NNP
. .

`` ``
We PRP
have VBP
the DT
structure NN
, ,
people NNS
and CC
plan NN
, ,
'' ''
Mr. NNP
Isler NNP
said VBD
in IN
a DT
statement NN
. .

Now RB
, ,
the DT
first JJ
order NN
of IN
business NN
is VBZ
raising VBG
enough JJ
money NN
to TO
keep VB
his PRP$
team NN
afloat RB
-- :
a DT
new JJ
yacht NN
will MD
cost VB
about RB
$ $
3 CD
million CD
alone RB
, ,
and CC
sailing NN
syndicate NN
budgets NNS
can MD
easily RB
run VB
to TO
$ $
25 CD
million CD
for IN
a DT
Cup NNP
challenge NN
. .

The DT
split NN
comes VBZ
in IN
the DT
midst NN
of IN
a DT
court NN
battle NN
over IN
whether IN
the DT
San NNP
Diego NNP
Yacht NNP
Club NNP
should MD
be VB
allowed VBN
to TO
keep VB
the DT
international JJ
trophy NN
for IN
sailing VBG
a DT
catamaran NN
against IN
the DT
New NNP
Zealand NNP
challengers NNS
' POS
90-foot JJ
monohull NN
. .

In IN
September NNP
, ,
a DT
New NNP
York NNP
appellate JJ
court NN
overturned VBD
a DT
state NN
judge NN
's POS
ruling NN
that WDT
awarded VBD
the DT
Cup NNP
to TO
the DT
New NNP
Zealand NNP
team NN
. .

Pending VBG
an DT
appeal NN
by IN
the DT
New NNP
Zealand NNP
team NN
, ,
led VBN
by IN
Michael NNP
Fay NNP
, ,
the DT
finals NNS
for IN
the DT
next JJ
Cup NNP
challenge NN
are VBP
scheduled VBN
to TO
be VB
held VBN
in IN
mid-1992 NN
in IN
San NNP
Diego NNP
. .

But CC
because IN
of IN
the DT
uncertainty NN
of IN
the DT
outcome NN
of IN
the DT
suit NN
, ,
Mr. NNP
Conner NNP
's POS
team NN
has VBZ
done VBN
little JJ
to TO
begin VB
gearing VBG
up VB
to TO
defend VB
its PRP$
title NN
. .

`` ``
If IN
you PRP
do VBP
n't RB
know VB
what WP
the DT
rules NNS
of IN
the DT
game NN
are VBP
, ,
it PRP
's VBZ
hard JJ
to TO
start VB
your PRP$
fund-raising NN
or CC
design NN
, ,
'' ''
said VBD
Dana NNP
Smith NNP
, ,
an DT
official NN
with IN
Team NNP
Dennis NNP
Conner NNP
. .

The DT
Conner NNP
team NN
wo MD
n't RB
be VB
able JJ
to TO
negotiate VB
with IN
corporate JJ
sponsors NNS
until IN
the DT
suit NN
is VBZ
resolved VBN
and CC
the DT
race NN
site NN
is VBZ
determined VBN
, ,
Mr. NNP
Smith NNP
said VBD
, ,
and CC
the DT
syndicate NN
's POS
budget NN
could MD
easily RB
reach VB
$ $
30 CD
million CD
. .

But CC
spokesmen NNS
for IN
both DT
Mr. NNP
Isler NNP
and CC
Mr. NNP
Conner NNP
say VBP
the DT
formation NN
of IN
the DT
new JJ
syndicate NN
has VBZ
to TO
do VB
with IN
Mr. NNP
Isler NNP
's POS
desire NN
to TO
skipper VB
his PRP$
own JJ
team NN
and CC
begin VB
planning NN
now RB
, ,
rather RB
than IN
any DT
falling NN
out IN
between IN
the DT
two CD
sportsmen NNS
. .

Mr. NNP
Smith NNP
and CC
a DT
spokesman NN
for IN
the DT
America NNP
's POS
Cup NNP
Organizing NNP
Committee NNP
insist VBP
that IN
the DT
added VBN
competition NN
for IN
the DT
defender NN
's POS
spot NN
will MD
only RB
improve VB
the DT
race NN
. .

Missouri NNP
farmer NN
Blake NNP
Hurst NNP
writing VBG
in IN
the DT
fall NN
issue NN
of IN
the DT
Heritage NNP
Foundation NNP
's POS
Policy NNP
Review NNP
about IN
the DT
proposed VBN
location NN
of IN
a DT
hazardous-waste NN
incinerator NN
in IN
his PRP$
county NN
: :

Of IN
course NN
I PRP
'd MD
rather RB
have VB
a DT
computer NN
software NN
firm NN
in IN
my PRP$
backyard NN
than IN
a DT
hazardous JJ
waste NN
incinerator NN
. .

But CC
I PRP
'd MD
also RB
rather RB
live VB
next JJ
door NN
to TO
an DT
incinerator NN
than IN
to TO
some DT
of IN
the DT
hog NN
farms NNS
I PRP
've VBP
seen VBN
-LRB- (
and CC
smelt VBD
-RRB- )
in IN
these DT
parts NNS
. .

An DT
incinerator NN
is VBZ
also RB
probably RB
better JJR
than IN
having VBG
nobody NN
next JJ
door NN
-- :
on IN
our PRP$
farm NN
there EX
are VBP
four CD
unoccupied JJ
houses NNS
. .

On IN
my PRP$
four-mile JJ
drive NN
to TO
farm VB
headquarters NN
each DT
morning NN
, ,
I PRP
drive VBP
by IN
another DT
four CD
empty JJ
houses NNS
. .

A DT
community NN
of IN
abandoned VBN
farmsteads NNS
, ,
failing VBG
businesses NNS
, ,
and CC
crumbling VBG
roads NNS
and CC
bridges NNS
is VBZ
hardly RB
a DT
desirable JJ
one CD
... :
. .

The DT
loss NN
of IN
40 CD
jobs NNS
by IN
a DT
depressed JJ
county NN
in IN
rural JJ
Missouri NNP
is VBZ
hardly RB
of IN
national JJ
importance NN
except IN
for IN
this DT
: :
If IN
the DT
most RBS
environmentally RB
safe JJ
way NN
of IN
dealing VBG
with IN
a DT
national JJ
problem NN
can MD
not RB
be VB
built VBN
in IN
Atchinson NNP
County NNP
, ,
what WP
hope NN
have VBP
we PRP
for IN
dealing VBG
with IN
the DT
wastes NNS
our PRP$
economy NN
produces VBZ
? .

After IN
all DT
, ,
farmers NNS
here RB
work VBP
with IN
`` ``
hazardous JJ
'' ''
chemicals NNS
every DT
day NN
, ,
many NN
of IN
them PRP
the DT
same JJ
chemicals NNS
that WDT
would MD
have VB
been VBN
destroyed VBN
in IN
the DT
incinerator NN
. .

We PRP
know VBP
they PRP
are VBP
dangerous JJ
, ,
but CC
if IN
handled VBN
with IN
care NN
, ,
their PRP$
benefits NNS
far RB
outweigh VBP
any DT
risk NN
to TO
the DT
environment NN
. .

Just RB
because IN
Stamford NNP
, ,
Conn. NNP
, ,
High NNP
School NNP
did VBD
nothing NN
when WRB
its PRP$
valuable JJ
1930s CD
mural NN
was VBD
thrown VBN
in IN
the DT
trash NN
does VBZ
n't RB
mean VB
the DT
city NN
no RB
longer RB
owns VBZ
the DT
work NN
of IN
art NN
, ,
a DT
federal JJ
judge NN
ruled VBD
. .

The DT
mural NN
, ,
now RB
valued VBN
at IN
$ $
1.3 CD
million CD
according VBG
to TO
appraisers NNS
, ,
was VBD
tossed VBN
in IN
a DT
trash NN
heap NN
in IN
1971 CD
by IN
workers NNS
who WP
were VBD
renovating VBG
the DT
building NN
. .

The DT
100-foot-long JJ
mural NN
, ,
painted VBN
by IN
James NNP
Daugherty NNP
in IN
1934 CD
, ,
was VBD
commissioned VBN
by IN
the DT
federal JJ
Works NNP
Project NNP
Administration NNP
. .

After IN
the DT
discarded VBN
mural NN
was VBD
found VBN
outside IN
the DT
school NN
by IN
a DT
concerned VBN
Stamford NNP
graduate NN
, ,
it PRP
eventually RB
was VBD
turned VBN
over IN
to TO
Hiram NNP
Hoelzer NNP
, ,
a DT
professional JJ
art NN
restorer NN
. .

Throughout IN
the DT
1970s NNS
, ,
Stamford NNP
school NN
and CC
city NN
officials NNS
made VBD
no DT
effort NN
to TO
locate VB
the DT
mural NN
. .

Apparently RB
the DT
officials NNS
did VBD
n't RB
even RB
know VB
the DT
mural NN
was VBD
missing VBG
until IN
1980 CD
, ,
when WRB
a DT
researcher NN
found VBD
that IN
the DT
painting NN
was VBD
in IN
Mr. NNP
Hoelzer NNP
's POS
studio NN
and CC
questioned VBD
school NN
officials NNS
about IN
it PRP
. .

In IN
1986 CD
, ,
Stamford NNP
officials NNS
thanked VBD
Mr. NNP
Hoelzer NNP
for IN
taking VBG
care NN
of IN
the DT
mural NN
-- :
and CC
demanded VBD
he PRP
return VBP
it PRP
as RB
soon RB
as IN
possible JJ
. .

Mr. NNP
Hoelzer NNP
, ,
however RB
, ,
sued VBD
Stamford NNP
, ,
claiming VBG
that IN
the DT
city NN
had VBD
abandoned VBN
the DT
artwork NN
and CC
that IN
it PRP
had VBD
waited VBN
too RB
long JJ
to TO
reclaim VB
it PRP
. .

But CC
Judge NNP
Louis NNP
L. NNP
Stanton NNP
of IN
federal JJ
court NN
in IN
Manhattan NNP
ruled VBD
that IN
the DT
city NN
could MD
n't RB
be VB
faulted VBN
for IN
waiting VBG
too RB
long RB
because IN
it PRP
did VBD
n't RB
realize VB
until IN
1986 CD
that IN
its PRP$
ownership NN
of IN
the DT
painting NN
was VBD
in IN
dispute NN
. .

The DT
judge NN
also RB
ruled VBD
that IN
the DT
painting NN
was VBD
n't RB
abandoned VBN
because IN
officials NNS
did VBD
n't RB
intend VB
for IN
it PRP
to TO
be VB
thrown VBN
away RB
and CC
were VBD
unaware JJ
that IN
the DT
workmen NNS
had VBD
discarded VBN
it PRP
. .

Mr. NNP
Hoelzer NNP
did VBD
n't RB
return VB
phone NN
calls NNS
seeking VBG
comment VB
on IN
the DT
judge NN
's POS
decision NN
. .

The DT
judge NN
ordered VBD
that IN
a DT
hearing NN
be VB
held VBN
Nov. NNP
17 CD
to TO
determine VB
how WRB
much JJ
the DT
city NN
should MD
pay VB
Mr. NNP
Hoelzer NNP
for IN
his PRP$
services NNS
. .

Mary NNP
E. NNP
Sommer NNP
, ,
corporate JJ
counsel NN
for IN
Stamford NNP
, ,
said VBD
the DT
city NN
has VBZ
discussed VBN
several JJ
possible JJ
plans NNS
for IN
displaying VBG
the DT
mural NN
, ,
which WDT
portrays VBZ
various JJ
scenes NNS
from IN
the DT
Great NNP
Depression NNP
. .

She PRP
said VBD
the DT
mural NN
`` ``
preserves VBZ
an DT
era NN
in IN
Stamford NNP
and CC
in IN
our PRP$
country NN
when WRB
this DT
type NN
of IN
work NN
was VBD
being VBG
done VBN
. .

The DT
prices NNS
of IN
corn NN
futures NNS
contracts NNS
jumped VBD
amid IN
rumors NNS
that IN
the DT
Soviet NNP
Union NNP
is VBZ
keeping VBG
up IN
its PRP$
dizzying JJ
October NNP
buying VBG
binge NN
of IN
U.S. NNP
corn NN
. .

Those DT
rumors NNS
were VBD
confirmed VBN
after IN
the DT
end NN
of IN
trading NN
yesterday NN
when WRB
the DT
U.S. NNP
Agriculture NNP
Department NNP
announced VBD
that IN
the DT
Soviets NNPS
had VBD
bought VBN
1.2 CD
million CD
metric JJ
tons NNS
of IN
U.S. NNP
corn NN
, ,
bringing VBG
their PRP$
U.S. NNP
corn NN
purchases NNS
confirmed VBD
so RB
far RB
this DT
month NN
to TO
about IN
five CD
million CD
metric JJ
tons NNS
. .

In IN
trading NN
at IN
the DT
Chicago NNP
Board NNP
of IN
Trade NNP
, ,
the DT
corn NN
contract NN
for IN
December NNP
delivery NN
jumped VBD
5.75 CD
cents NNS
a DT
bushel NN
to TO
settle VB
at IN
$ $
2.44 CD
a DT
bushel NN
. .

The DT
Soviet JJ
purchases NNS
are VBP
close RB
to TO
exceeding VBG
what WP
some DT
analysts NNS
had VBD
expected VBN
the DT
Soviet NNP
Union NNP
to TO
buy VB
this DT
fall NN
, ,
the DT
season NN
in IN
which WDT
it PRP
usually RB
buys VBZ
much NN
of IN
the DT
corn NN
it PRP
imports VBZ
from IN
the DT
U.S. NNP
. .

That DT
pace NN
is VBZ
causing VBG
some DT
analysts NNS
to TO
speculate VB
that IN
the DT
Soviet NNP
Union NNP
might MD
soon RB
purchase VB
as RB
much JJ
as IN
another DT
two CD
million CD
metric JJ
tons NNS
. .

One CD
sign NN
that IN
more RBR
Soviet JJ
purchases NNS
are VBP
possible JJ
is VBZ
that IN
U.S. NNP
grain NN
companies NNS
yesterday NN
bought VBD
an DT
unusually RB
large JJ
amount NN
of IN
corn NN
futures NNS
contracts NNS
. .

That DT
sometimes RB
signals VBZ
that IN
they PRP
are VBP
laying VBG
plans NNS
to TO
export VB
corn NN
. .

By IN
some DT
estimates NNS
, ,
several JJ
grain NN
companies NNS
combined VBN
bought VBD
contracts NNS
for IN
the DT
possession NN
of IN
roughly RB
one CD
million CD
metric JJ
tons NNS
of IN
corn NN
. .

By IN
buying VBG
futures NNS
contracts NNS
, ,
these DT
companies NNS
attempt VBP
to TO
protect VB
themselves PRP
from IN
swings NNS
in IN
the DT
price NN
of IN
the DT
corn NN
that IN
they PRP
are VBP
obligated VBN
to TO
deliver VB
. .

Rumors NNS
of IN
Soviet JJ
interest NN
also RB
pushed VBD
up IN
the DT
prices NNS
of IN
soybean NN
futures NNS
contracts NNS
. .

Among IN
other JJ
things NNS
, ,
the DT
Agriculture NNP
Department NNP
is VBZ
widely RB
thought VBN
to TO
be VB
mulling VBG
whether IN
to TO
subsidize VB
the DT
sale NN
of IN
soybean NN
oil NN
to TO
the DT
Soviet NNP
Union NNP
. .

On IN
top NN
of IN
all PDT
this DT
, ,
corn NN
and CC
soybean NN
prices NNS
rose VBD
on IN
reports NNS
that IN
the DT
Midwest NNP
harvest NN
was VBD
disrupted VBN
by IN
a DT
freakishly RB
early JJ
snow NN
storm NN
that WDT
dumped VBD
several JJ
inches NNS
in IN
parts NNS
of IN
Indiana NNP
and CC
Ohio NNP
. .

The DT
harvest NN
delays NNS
, ,
however RB
, ,
are VBP
expected VBN
to TO
be VB
temporary JJ
. .

Balmy JJ
temperatures NNS
are VBP
forecast NN
for IN
next JJ
week NN
, ,
said VBD
Robert NNP
Lekberg NNP
, ,
an DT
analyst NN
at IN
Farmers NNP
Grain NNP
& CC
Livestock NNP
Corp. NNP
, ,
Chicago NNP
. .

Many JJ
farmers NNS
used VBD
the DT
jump NN
in IN
prices NNS
to TO
sell VB
their PRP$
recently RB
harvested VBN
crop NN
to TO
grain NN
elevator NN
companies NNS
. .

The DT
heavy JJ
selling NN
by IN
farmers NNS
helped VBD
to TO
damp VB
the DT
price NN
rally NN
. .

Wheat JJ
futures NNS
prices NNS
rose VBD
slightly RB
. .

In IN
other JJ
commodity NN
markets NNS
yesterday NN
: :

PRECIOUS JJ
METALS NNS
: :

Futures NNS
prices NNS
declined VBD
. .
A DT
number NN
of IN
developments NNS
were VBD
negatively RB
interpreted VBN
by IN
traders NNS
. .

December NNP
delivery NN
gold NN
fell VBD
$ $
1.80 CD
an DT
ounce NN
to TO
$ $
370.60 CD
. .

December NNP
silver NN
eased VBD
2.7 CD
cents NNS
an DT
ounce NN
to TO
$ $
5.133 CD
. .

January NNP
platinum NN
was VBD
down RB
$ $
3.60 CD
an DT
ounce NN
at IN
$ $
491.10 CD
. .

One CD
price-depressing JJ
development NN
was VBD
the DT
lower-than-expected JJ
increase NN
of IN
only RB
0.2 CD
% NN
in IN
the DT
consumer NN
price NN
index NN
for IN
September NNP
, ,
an DT
analyst NN
said VBD
. .

He PRP
noted VBD
that IN
the DT
`` ``
core NN
inflation NN
rate NN
, ,
'' ''
which WDT
excludes VBZ
food NN
and CC
energy NN
, ,
was VBD
also RB
low JJ
at IN
0.2 CD
% NN
. .

Other JJ
news NN
that WDT
weighed VBD
on IN
the DT
market NN
: :
Initial JJ
unemployment NN
claims NNS
rose VBD
by IN
62,000 CD
last JJ
week NN
; :
American NNP
Telephone NNP
& CC
Telegraph NNP
Co. NNP
will MD
reduce VB
its PRP$
managerial JJ
staff NN
by IN
15,000 CD
through IN
attrition NN
; :
the DT
oil NN
market NN
turned VBD
weaker JJR
; :
there EX
was VBD
n't RB
any DT
investor NN
demand NN
for IN
bullion NN
; :
and CC
the DT
dollar NN
strengthened VBN
during IN
the DT
day NN
, ,
putting VBG
pressure NN
on IN
gold NN
. .

Also RB
, ,
the DT
analyst NN
said VBD
, ,
economic JJ
circumstances NNS
are VBP
such JJ
that IN
both DT
South NNP
Africa NNP
and CC
the DT
Soviet NNP
Union NNP
, ,
the DT
principal JJ
gold NN
and CC
platinum NN
producers NNS
, ,
are VBP
being VBG
forced VBN
to TO
continue VB
selling VBG
the DT
metals NNS
. .

Both DT
are VBP
in IN
great JJ
need NN
of IN
foreign JJ
exchange NN
, ,
and CC
South NNP
Africa NNP
is VBZ
also RB
under IN
pressure NN
to TO
meet VB
foreign JJ
loan NN
commitments NNS
, ,
he PRP
said VBD
. .

`` ``
Putting VBG
it PRP
all DT
together RB
, ,
we PRP
have VBP
a DT
negative JJ
scenario NN
that WDT
does VBZ
n't RB
look VB
like IN
it PRP
will MD
improve VB
overnight JJ
, ,
'' ''
he PRP
said VBD
. .

COPPER NN
: :

Futures NNS
prices NNS
recovered VBD
in IN
quiet JJ
trading NN
. .

The DT
December NNP
contract NN
rose VBD
1.50 CD
cents NNS
a DT
pound NN
to TO
$ $
1.2795 CD
. .

That DT
contract NN
fell VBD
a DT
total NN
of IN
5.75 CD
cents NNS
during IN
the DT
first JJ
three CD
days NNS
of IN
this DT
week NN
, ,
mostly RB
in IN
reaction NN
to TO
last VB
Friday NNP
's POS
stock NN
market NN
plunge NN
, ,
which WDT
prompted VBD
concern NN
that IN
it PRP
might MD
signal VB
a DT
similar JJ
sharp JJ
slowing NN
of IN
the DT
U.S. NNP
economy NN
and CC
thus RB
reduced VBN
demand NN
for IN
copper NN
, ,
a DT
leading VBG
industrial JJ
metal NN
. .

In IN
recent JJ
days NNS
, ,
however RB
, ,
there EX
has VBZ
been VBN
increased VBN
purchasing VBG
of IN
copper NN
in IN
London NNP
, ,
an DT
analyst NN
said VBD
. .

Some DT
of IN
this DT
buying VBG
was VBD
by IN
Japan NNP
, ,
which WDT
has VBZ
had VBN
its PRP$
supplies NNS
sharply RB
reduced VBN
by IN
long JJ
production NN
stoppages NNS
at IN
the DT
Bougainville NNP
mine NN
in IN
Papua NNP
New NNP
Guinea NNP
, ,
Highland NNP
Valley NNP
mine NN
in IN
British NNP
Columbia NNP
, ,
and CC
the DT
Cananea NNP
mine NN
in IN
Mexico NNP
, ,
which WDT
are VBP
major JJ
shippers NNS
to TO
Japan NNP
. .

The DT
increasing VBG
likelihood NN
that IN
Cananea NNP
and CC
Highland NNP
Valley NNP
will MD
soon RB
return VB
to TO
production NN
may MD
have VB
cut VBN
some DT
of IN
that DT
purchasing NN
, ,
but CC
even RB
if IN
any DT
of IN
these DT
mines NNS
begin VBP
operating VBG
soon RB
, ,
their PRP$
output NN
wo MD
n't RB
be VB
significant JJ
until IN
at IN
least JJS
the DT
end NN
of IN
the DT
year NN
, ,
analysts NNS
note VBP
. .

So RB
, ,
one CD
analyst NN
said VBD
, ,
even RB
though IN
the DT
long-term JJ
production NN
problems NNS
may MD
be VB
easing VBG
, ,
there EX
will MD
still RB
be VB
a DT
significant JJ
need NN
for IN
copper NN
over IN
the DT
next JJ
three CD
months NNS
, ,
when WRB
inventories NNS
will MD
remain VB
relatively RB
low JJ
. .

ENERGY NN
: :

Crude JJ
oil NN
prices NNS
ended VBD
mixed VBN
. .

West NNP
Texas NNP
Intermediate NNP
for IN
November NNP
delivery NN
fell VBD
14 CD
cents NNS
a DT
barrel NN
to TO
$ $
20.42 CD
. .

But CC
so-called JJ
outer JJ
month NN
contracts NNS
finished VBD
higher JJR
. .

For IN
instance NN
, ,
December NNP
contracts NNS
for IN
WTI NNP
rose VBD
17 CD
cents NNS
to TO
$ $
20.42 CD
. .

Most JJS
energy NN
futures NNS
opened VBD
lower JJR
, ,
following VBG
Wednesday NNP
's POS
market NN
downturn NN
. .

But CC
a DT
flurry NN
of IN
late JJ
trading NN
yesterday NN
beefed VBN
up IN
prices NNS
. .

Heating NN
oil NN
and CC
gasoline NN
futures NNS
ended VBD
higher JJR
as IN
well RB
. .

Melvin NNP
Belli NNP
's POS
San NNP
Francisco NNP
law NN
offices NNS
may MD
have VB
been VBN
the DT
epicenter NN
of IN
legal JJ
activity NN
after IN
Tuesday NNP
's POS
earthquake NN
. .

In IN
the DT
first JJ
25 CD
minutes NNS
after IN
his PRP$
office NN
's POS
telephone NN
service NN
was VBD
restored VBN
yesterday NN
morning NN
, ,
17 CD
potential JJ
clients NNS
had VBD
called VBN
seeking VBG
the DT
services NNS
of IN
the DT
self-proclaimed JJ
King NNP
of IN
Torts NNP
. .

Mr. NNP
Belli NNP
, ,
like IN
many JJ
other JJ
personal-injury JJ
lawyers NNS
, ,
suspects VBZ
that IN
the DT
earthquake NN
, ,
which WDT
measured VBD
6.9 CD
on IN
the DT
Richter NNP
scale NN
, ,
will MD
generate VB
enough JJ
lawsuits NNS
to TO
keep VB
this DT
city NN
's POS
personal-injury NN
and CC
construction NN
lawyers NNS
busy JJ
for IN
quite RB
some DT
time NN
. .

Suits NNS
are VBP
likely JJ
to TO
be VB
filed VBN
against IN
engineering NN
firms NNS
, ,
contractors NNS
and CC
developers NNS
, ,
as RB
well RB
as IN
against IN
local-government JJ
agencies NNS
. .

But CC
lawyers NNS
looking VBG
to TO
cash VB
in IN
on IN
the DT
quake NN
may MD
have VB
a DT
tough JJ
time NN
once RB
their PRP$
cases NNS
reach VBP
a DT
judge NN
. .

Experts NNS
on IN
California NNP
tort NN
law NN
say VBP
protections NNS
afforded VBD
government NN
agencies NNS
in IN
such JJ
cases NNS
are VBP
pretty RB
ironclad JJ
. .

Even RB
claims VBZ
against IN
individuals NNS
and CC
companies NNS
face VBP
significant JJ
roadblocks NNS
. .

The DT
major JJ
legal JJ
barrier NN
is VBZ
the DT
principle NN
that IN
no DT
one PRP
can MD
be VB
held VBN
liable JJ
for IN
an DT
`` ``
act NN
of IN
God NNP
. .
'' ''

For IN
now RB
, ,
says VBZ
Laurence NNP
Drivon NNP
, ,
president-elect NN
of IN
the DT
6,000-member NNP
California NNP
Trial NNP
Lawyers NNP
Association NNP
, ,
`` ``
the DT
last JJ
thing NN
we PRP
really RB
need VBP
to TO
worry VB
about IN
is VBZ
whether IN
anybody NN
is VBZ
going VBG
to TO
get VB
sued VBD
, ,
or CC
whether IN
they PRP
have VBP
liability NN
or CC
not RB
. .

We PRP
still RB
have VBP
people NNS
wandering VBG
around IN
in IN
a DT
daze NN
in IN
San NNP
Francisco NNP
worrying VBG
about IN
whether IN
it PRP
's VBZ
going VBG
to TO
rain VB
tonight RB
. .
'' ''

But CC
that DT
wo MD
n't RB
stop VB
plaintiffs NNS
' POS
lawyers NNS
from IN
seeking VBG
a DT
little JJ
room NN
for IN
maneuvering NN
. .

In IN
San NNP
Francisco NNP
, ,
they PRP
argue VBP
, ,
an DT
earthquake NN
was VBD
a DT
near JJ
certainty NN
. .

Therefore RB
, ,
engineering NN
firms NNS
, ,
construction NN
contractors NNS
and CC
developers NNS
can MD
be VB
sued VBN
for IN
not RB
keeping VBG
structures NNS
up IN
to TO
standard JJ
, ,
and CC
government NN
agencies NNS
can MD
be VB
held VBN
accountable JJ
for IN
failing VBG
to TO
properly RB
protect VB
citizens NNS
from IN
such JJ
a DT
foreseeable JJ
disaster NN
, ,
if IN
negligence NN
can MD
be VB
proven VBN
. .

`` ``
My PRP$
prediction NN
is VBZ
there EX
will MD
be VB
mass NN
litigation NN
over IN
errors NNS
and CC
omissions NNS
in IN
engineering NN
and CC
contracting NN
, ,
'' ''
says VBZ
Stanley NNP
Chesley NNP
, ,
a DT
well-known JJ
Cincinnati NNP
plaintiffs NNS
lawyer NN
. .

From IN
what WP
he PRP
saw VBD
on IN
television NN
, ,
Mr. NNP
Chesley NNP
points VBZ
out RP
that IN
Interstate NNP
880 CD
, ,
which WDT
collapsed VBD
and CC
killed VBN
more JJR
than IN
200 CD
commuters NNS
, ,
suffered VBD
serious JJ
damage NN
while IN
surrounding VBG
buildings NNS
appeared VBD
to TO
sustain VB
no DT
damage NN
whatsoever RB
. .

He PRP
adds VBZ
that IN
`` ``
they PRP
were VBD
aware JJ
of IN
the DT
propensity NN
for IN
earthquakes NNS
and CC
the DT
San NNP
Andreas NNP
Fault NNP
. .
'' ''

The DT
flamboyant JJ
and CC
publicity-conscious JJ
Mr. NNP
Belli NNP
says VBZ
he PRP
already RB
has VBZ
investigators NNS
looking VBG
into IN
who WP
could MD
be VB
held VBN
liable JJ
for IN
the DT
damage NN
on IN
the DT
Bay NNP
Bridge NNP
and CC
the DT
interstate JJ
approaching VBG
it PRP
. .

`` ``
We PRP
wo MD
n't RB
know VB
until IN
the DT
smoke NN
clears VBZ
-- :
but CC
yes UH
, ,
we PRP
're VBP
looking VBG
into IN
it PRP
, ,
'' ''
he PRP
says VBZ
. .

Mr. NNP
Belli NNP
says VBZ
he PRP
wants VBZ
to TO
know VB
whether IN
state NN
or CC
federal JJ
engineers NNS
or CC
private JJ
companies NNS
could MD
have VB
prevented VBN
the DT
damage NN
. .

Mr. NNP
Belli NNP
, ,
who WP
was VBD
at IN
Candlestick NNP
Park NNP
for IN
the DT
World NNP
Series NNP
Tuesday NNP
night NN
, ,
says VBZ
he PRP
has VBZ
hired VBN
civil JJ
engineers NNS
to TO
check VB
out IN
his PRP$
own JJ
mildly RB
damaged VBN
building NN
and CC
to TO
investigate VB
the DT
bridge NN
collapse NN
. .

Defense NN
lawyers NNS
, ,
perhaps RB
understandably RB
, ,
say VBP
that IN
plaintiffs NNS
' POS
lawyers NNS
taking VBG
such JJ
an DT
approach NN
will MD
have VB
little JJ
success NN
in IN
pursuing VBG
their PRP$
claims NNS
, ,
though IN
they PRP
add VBP
that IN
the DT
facts NNS
of IN
each DT
case NN
must MD
be VB
looked VBN
at IN
individually RB
. .

`` ``
A DT
lot NN
of IN
this DT
is VBZ
going VBG
to TO
be VB
code-related JJ
, ,
'' ''
says VBZ
Ignazio NNP
J. NNP
Ruvolo NNP
, ,
a DT
construction NN
law NN
specialist NN
at IN
Bronson NNP
, ,
Bronson NNP
& CC
McKinnon NNP
, ,
a DT
San NNP
Francisco NNP
law NN
firm NN
. .

Plaintiffs NNS
, ,
he PRP
says VBZ
, ,
will MD
argue VB
that WDT
damaged VBD
structures NNS
were VBD
n't RB
built VBN
to TO
proper JJ
design NN
standards NNS
. .

But CC
if IN
defendants NNS
can MD
prove VB
that IN
they PRP
met VBD
San NNP
Francisco NNP
's POS
stringent JJ
building NN
codes NNS
, ,
`` ``
that DT
's VBZ
probably RB
going VBG
to TO
protect VB
them PRP
, ,
'' ''
Mr. NNP
Ruvolo NNP
says VBZ
. .

Government NN
entities NNS
, ,
continues VBZ
Mr. NNP
Ruvolo NNP
, ,
could MD
be VB
protected VBN
by IN
the DT
California NNP
Government NNP
Tort NNP
Liability NNP
Act NNP
. .

Under IN
the DT
statute NN
, ,
agencies NNS
are VBP
provided VBN
`` ``
defenses NNS
that IN
normally RB
are VBP
n't RB
available JJ
in IN
the DT
private JJ
sector NN
, ,
'' ''
Mr. NNP
Ruvolo NNP
says VBZ
. .

`` ``
The DT
legislature NN
does VBZ
not RB
want VB
to TO
inhibit VB
the DT
unique JJ
government NN
activities NNS
by IN
exposing VBG
public JJ
entities NNS
to TO
liability NN
. .
'' ''

Built VBN
into IN
the DT
statute NN
are VBP
so-called JJ
design NN
immunities NNS
, ,
which WDT
are VBP
likely JJ
to TO
protect VB
government NN
agencies NNS
, ,
according VBG
to TO
Mr. NNP
Ruvolo NNP
and CC
Richard NNP
Covert NNP
, ,
a DT
lawyer NN
with IN
the DT
California NNP
Department NNP
of IN
Transportation NNP
, ,
which WDT
oversees VBZ
the DT
damaged VBN
Bay NNP
Bridge NNP
. .

The DT
state NN
is VBZ
protected VBN
when WRB
plans NNS
and CC
designs NNS
for IN
public JJ
structures NNS
were VBD
approved VBN
ahead RB
of IN
time NN
or CC
when WRB
structures NNS
met VBD
previously RB
approved VBN
standards NNS
, ,
says VBZ
Mr. NNP
Covert NNP
. .

He PRP
believes VBZ
those DT
defenses NNS
might MD
well RB
apply VB
to TO
the DT
Bay NNP
Bridge NNP
collapse NN
. .

Nevertheless RB
, ,
he PRP
adds VBZ
, ,
`` ``
I PRP
would MD
n't RB
get VB
totally RB
shocked VBN
if IN
we PRP
get VBP
lawsuits NNS
out IN
of IN
the DT
Bay NNP
Bridge NNP
. .
'' ''

If IN
there EX
's VBZ
going VBG
to TO
be VB
a DT
race NN
to TO
the DT
courthouse NN
, ,
it PRP
has VBZ
n't RB
started VBN
yet RB
. .

Mr. NNP
Covert NNP
had VBD
to TO
search VB
through IN
law NN
books NNS
scattered VBN
on IN
the DT
floor NN
of IN
his PRP$
office NN
yesterday NN
, ,
and CC
Mr. NNP
Belli NNP
's POS
courtyard NN
was VBD
strewn VBN
with IN
bricks NNS
. .

Wednesday NNP
, ,
Mr. NNP
Belli NNP
's POS
staff NN
was VBD
n't RB
permitted VBN
into IN
his PRP$
office NN
by IN
city NN
officials NNS
worried VBN
about IN
their PRP$
safety NN
. .

He PRP
said VBD
he PRP
set VBD
up IN
shop NN
on IN
the DT
sidewalk NN
in IN
front NN
of IN
his PRP$
town-house JJ
office NN
and CC
helped VBD
victims NNS
apply VBP
for IN
federal JJ
aid NN
-- :
free JJ
of IN
charge NN
. .

In IN
a DT
news NN
release NN
issued VBN
by IN
Mr. NNP
Drivon NNP
, ,
the DT
trial NN
lawyers NNS
association NN
also RB
promised VBD
free JJ
assistance NN
to TO
victims NNS
. .

The DT
association NN
said VBD
it PRP
would MD
monitor VB
the DT
conduct NN
of IN
lawyers NNS
and CC
warned VBD
that DT
solicitation NN
of IN
business NN
is VBZ
unethical JJ
. .

What WP
's VBZ
in IN
a DT
name NN
? .

Apparently RB
a DT
lot NN
, ,
according VBG
to TO
the DT
British JJ
firm NN
of IN
Deloitte NNP
, ,
Haskins NNP
& CC
Sells NNP
. .

The DT
British JJ
firm NN
has VBZ
begun VBN
court NN
proceedings NNS
in IN
London NNP
to TO
prevent VB
the DT
use NN
of IN
the DT
name NN
`` ``
Deloitte NNP
'' ''
by IN
Deloitte NNP
, ,
Haskins NNP
& CC
Sells NNP
and CC
Touche NNP
Ross NNP
& CC
Co. NNP
in IN
England NNP
and CC
the DT
rest NN
of IN
the DT
world NN
. .

The DT
British NNP
Deloitte NNP
firm NN
recently RB
withdrew VBD
from IN
the DT
merger NN
of IN
Deloitte NNP
and CC
Touche NNP
world-wide JJ
and CC
joined VBD
Coopers NNP
& CC
Lybrand NNP
. .

John NNP
Bullock NNP
, ,
senior JJ
partner NN
of IN
Deloitte NNP
in IN
the DT
U.K. NNP
, ,
said VBD
`` ``
the DT
decision NN
to TO
start VB
these DT
proceedings NNS
has VBZ
n't RB
been VBN
taken VBN
lightly RB
. .
'' ''

Mr. NNP
Bullock NNP
said VBD
the DT
British JJ
firm NN
has VBZ
used VBN
the DT
name NN
`` ``
Deloitte NNP
'' ''
since IN
1845 CD
. .

In IN
the DT
U.S. NNP
, ,
Deloitte NNP
, ,
Haskins NNP
& CC
Sells NNP
was VBD
known VBN
as IN
Haskins NNP
& CC
Sells NNP
until IN
1978 CD
, ,
when WRB
it PRP
added VBD
the DT
`` ``
Deloitte NNP
'' ''
name NN
of IN
its PRP$
British JJ
affiliate NN
. .

John NNP
C. NNP
Burton NNP
, ,
an DT
accounting NN
professor NN
at IN
Columbia NNP
University NNP
's POS
Graduate NNP
School NNP
of IN
Business NNP
, ,
said VBD
`` ``
there EX
's VBZ
a DT
lot NN
of IN
emotion NN
involved VBN
in IN
the DT
name NN
of IN
an DT
accounting NN
firm NN
with IN
a DT
long JJ
history NN
and CC
with IN
roots NNS
in IN
England NNP
, ,
where WRB
accounting NN
predates VBZ
the DT
U.S. NNP
. .
'' ''

Although IN
accountants NNS
are VBP
n't RB
noted VBN
as IN
`` ``
being VBG
deeply RB
emotional JJ
, ,
they PRP
really RB
hold VBP
it PRP
all DT
in NN
, ,
'' ''
said VBD
Mr. NNP
Burton NNP
, ,
former JJ
chief JJ
accountant NN
of IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
. .

J. NNP
Michael NNP
Cook NNP
, ,
chairman NN
of IN
Deloitte NNP
, ,
Haskins NNP
& CC
Sells NNP
International NNP
, ,
said VBD
he PRP
believes VBZ
the DT
legal JJ
action NN
by IN
the DT
British JJ
firm NN
`` ``
to TO
be VB
without IN
merit NN
. .
'' ''

Mr. NNP
Cook NNP
said VBD
that IN
last JJ
June NNP
, ,
the DT
international JJ
executive NN
committes NNS
of IN
Deloitte NNP
and CC
Touche NNP
agreed VBD
to TO
a DT
world-wide JJ
merger NN
. .

`` ``
The DT
merger NN
is VBZ
proceeding VBG
according VBG
to TO
plan VB
, ,
except IN
as IN
to TO
the DT
withdrawal NN
of IN
the DT
Deloitte NNP
U.K. NNP
firm NN
, ,
'' ''
he PRP
said VBD
. .

Partners NNS
at IN
other JJ
accounting NN
firms NNS
say VBP
that IN
the DT
Deloitte NNP
firm NN
in IN
the DT
U.K. NNP
is VBZ
filing VBG
the DT
suit NN
to TO
get VB
even RB
with IN
the DT
merged VBN
Deloitte-Touche NNP
firm NN
for IN
keeping VBG
major JJ
auditing NN
work NN
in IN
England NNP
. .

General NNP
Motors NNPS
Corp. NNP
, ,
a DT
Deloitte NNP
audit NN
client NN
, ,
for IN
example NN
, ,
has VBZ
agreed VBN
to TO
keep VB
its PRP$
annual JJ
$ $
18 CD
million CD
world-wide JJ
audit NN
and CC
associated VBN
tax NN
work NN
with IN
the DT
merged VBN
Deloitte-Touche NNP
firm NN
, ,
to TO
be VB
known VBN
as IN
Deloitte NNP
& CC
Touche NNP
in IN
the DT
U.S. NNP
. .

In IN
England NNP
, ,
this DT
would MD
mean VB
that IN
the DT
British NNP
Deloitte NNP
would MD
lose VB
revenue NN
for IN
its PRP$
audit NN
of IN
GM NNP
's POS
Vauxhill NNP
unit NN
. .

The DT
defection NN
of IN
Deloitte NNP
's POS
affiliates NNS
in IN
Britain NNP
and CC
the DT
Netherlands NNP
to TO
Coopers NNP
& CC
Lybrand NNP
will MD
make VB
Coopers NNP
one CD
of IN
the DT
biggest JJS
accounting NN
firms NNS
in IN
Europe NNP
, ,
rivaling VBG
KPMG NNP
Peat NNP
Marwick NNP
there RB
. .
Although IN
Coopers NNP
has VBZ
n't RB
been VBN
courted VBN
by IN
other JJ
major JJ
accounting NN
firms NNS
for IN
a DT
merger NN
, ,
it PRP
is VBZ
benefiting VBG
greatly RB
from IN
fallout NN
from IN
the DT
Deloitte-Touche NNP
merger NN
. .

In IN
New NNP
York NNP
, ,
Harris NNP
Amhowitz NNP
, ,
general JJ
counsel NN
of IN
Coopers NNP
, ,
said VBD
Coopers NNP
`` ``
was VBD
aware JJ
of IN
the DT
litigation NN
, ,
'' ''
but CC
he PRP
declined VBD
further JJ
comment NN
. .

He PRP
also RB
declined VBD
to TO
comment VB
on IN
the DT
name NN
that IN
Coopers NNP
would MD
use VB
in IN
England NNP
if IN
Deloitte NNP
UK NNP
won VBD
its PRP$
litigation NN
to TO
keep VB
its PRP$
name NN
. .

Coopers NNP
uses VBZ
the DT
Coopers NNP
& CC
Lybrand NNP
name NN
world-wide JJ
. .

William NNP
Bennett NNP
, ,
the DT
White NNP
House NNP
drug-policy NN
director NN
, ,
accused VBN
local JJ
officials NNS
in IN
the DT
Washington NNP
area NN
of IN
blocking VBG
construction NN
of IN
prison NN
facilities NNS
to TO
house VB
convicted VBN
drug NN
dealers NNS
. .

`` ``
Politics NNP
has VBZ
essentially RB
put VB
up IN
a DT
roadblock NN
'' ''
to TO
finding VBG
sites NNS
for IN
new JJ
federal JJ
prisons NNS
, ,
Mr. NNP
Bennett NNP
said VBD
at IN
a DT
news NN
conference NN
called VBN
to TO
report VB
on IN
his PRP$
`` ``
emergency NN
assistance NN
program NN
'' ''
for IN
the DT
capital NN
. .

Without IN
more JJR
space NN
to TO
incarcerate VB
convicted VBN
criminals NNS
, ,
he PRP
added VBD
, ,
`` ``
we PRP
will MD
not RB
win VB
the DT
war NN
on IN
drugs NNS
. .
'' ''

Mr. NNP
Bennett NNP
declared VBD
in IN
April NNP
that IN
he PRP
would MD
make VB
Washington NNP
a DT
`` ``
test NN
case NN
'' ''
for IN
how WRB
the DT
Bush NNP
administration NN
would MD
aid VB
cities NNS
afflicted VBN
by IN
heavy JJ
drug NN
trafficking NN
and CC
violence NN
. .

The DT
drug NN
czar NN
claimed VBD
that IN
enforcement NN
efforts NNS
are VBP
working VBG
here RB
, ,
`` ``
albeit IN
at IN
a DT
slower JJR
and CC
more JJR
halting VBG
pace NN
than IN
we PRP
would MD
like IN
. .
'' ''

He PRP
acknowledged VBD
, ,
however RB
, ,
that IN
Washington NNP
's POS
`` ``
drug-related JJ
murder NN
rate NN
is VBZ
intolerably RB
high JJ
. .

The DT
prisons NNS
are VBP
too RB
crowded VBN
. .

Drugs NNS
continue VBP
to TO
be VB
sold VBN
openly RB
around IN
schools NNS
, ,
parks NNS
and CC
housing NN
projects NNS
. .
'' ''

Mr. NNP
Bennett NNP
declined VBD
to TO
name VB
the DT
area NN
officials NNS
who WP
he PRP
believes VBZ
have VBP
impeded VBN
plans NNS
for IN
building NN
more RBR
federal JJ
prisons NNS
to TO
ease VB
Washington NNP
's POS
problem NN
. .

But CC
other JJ
Bush NNP
administration NN
officials NNS
have VBP
criticized VBN
Maryland NNP
Gov. NNP
William NNP
Schaefer NNP
for IN
blocking VBG
the DT
use NN
of IN
possible JJ
sites NNS
in IN
that DT
state NN
. .

Administration NN
officials NNS
also RB
have VBP
said VBD
that IN
Washington NNP
Mayor NNP
Marion NNP
Barry NNP
has VBZ
delayed VBN
consideration NN
of IN
sites NNS
in IN
the DT
city NN
. .

In IN
a DT
letter NN
to TO
Mr. NNP
Bennett NNP
's POS
office NN
, ,
released VBN
yesterday NN
, ,
Washington NNP
's POS
city NN
administrator NN
, ,
Carol NNP
Thompson NNP
, ,
complained VBD
that IN
the DT
drug NN
czar NN
had VBD
exaggerated VBN
the DT
amount NN
of IN
federal JJ
drug-related JJ
assistance NN
provided VBN
to TO
the DT
capital NN
. .

Referring VBG
to TO
Mr. NNP
Bennett NNP
's POS
claim NN
that IN
the DT
federal JJ
government NN
would MD
provide VB
$ $
97 CD
million CD
in IN
emergency NN
federal JJ
support NN
, ,
Ms. NNP
Thompson NNP
wrote VBD
, ,
`` ``
Our PRP$
analysis NN
was VBD
unable JJ
to TO
even RB
come VB
close RB
to TO
documenting VBG
that DT
figure NN
. .
'' ''

Of IN
his PRP$
successes NNS
in IN
Washington NNP
, ,
Mr. NNP
Bennett NNP
stressed VBD
that IN
existing VBG
federal JJ
prisons NNS
have VBP
taken VBN
custody NN
of IN
375 CD
local JJ
inmates NNS
. .

He PRP
also RB
noted VBD
that IN
the DT
federal JJ
Drug NNP
Enforcement NNP
Administration NNP
has VBZ
established VBN
a DT
federal-local JJ
task NN
force NN
responsible JJ
since IN
April NNP
for IN
106 CD
arrests NNS
and CC
more JJR
than IN
$ $
2 CD
million CD
in IN
seizures NNS
of IN
drug NN
dealers NNS
' POS
assets NNS
. .

The DT
Defense NNP
Department NNP
has VBZ
lent VBN
the DT
Washington NNP
U.S. NNP
attorney NN
10 CD
prosecutors NNS
, ,
and CC
the DT
Federal NNP
Bureau NNP
of IN
Investigation NNP
has VBZ
provided VBN
crime NN
laboratory NN
facilities NNS
and CC
training NN
, ,
he PRP
added VBD
. .

What WP
if IN
it PRP
happened VBD
to TO
us PRP
? .

In IN
the DT
wake NN
of IN
the DT
earthquake NN
in IN
California NNP
and CC
the DT
devastation NN
of IN
Hurricane NNP
Hugo NNP
, ,
many JJ
companies NNS
in IN
disaster-prone JJ
areas NNS
are VBP
pondering VBG
the DT
question NN
of IN
preparedness NN
. .

Some DT
, ,
particularly RB
in IN
West NNP
Coast NNP
earthquake NN
zones NNS
, ,
are VBP
dusting VBG
off IN
their PRP$
evacuation NN
plans NNS
, ,
checking VBG
food NN
stocks NNS
and CC
reminding VBG
employees NNS
of IN
what WP
to TO
do VB
if IN
emergency NN
strikes NNS
. .

Others NNS
say VBP
they PRP
feel VBP
confident JJ
that IN
steps NNS
they PRP
've VBP
already RB
taken VBN
would MD
see VB
them PRP
through IN
a DT
disaster NN
. .

Preparedness NN
involves VBZ
more JJR
than IN
flashlights NNS
and CC
fire NN
alarms VBZ
these DT
days NNS
. .

Some DT
big JJ
companies NNS
have VBP
teams NNS
of IN
in-house JJ
experts NNS
focusing VBG
on IN
safety NN
and CC
business NN
resumption NN
. .

Many JJ
companies NNS
in IN
the DT
path NN
of IN
potential JJ
disaster NN
have VBP
set VBN
up IN
contingency NN
offices NNS
in IN
safe JJ
regions NNS
, ,
hoping VBG
they PRP
can MD
transport VB
employees NNS
there EX
and CC
resume VB
operations NNS
quickly RB
. .

That DT
means VBZ
making VBG
sure JJ
that IN
copies NNS
of IN
vital JJ
computer NN
software NN
and CC
company NN
records NNS
are VBP
out IN
of IN
harm NN
's POS
way NN
. .

Some DT
businesses NNS
-- :
like IN
Disneyland NNP
-- :
claim NN
that IN
even RB
if IN
they PRP
became VBD
isolated VBN
in IN
a DT
crisis NN
, ,
they PRP
would MD
be VB
able JJ
to TO
feed VB
and CC
care NN
for IN
their PRP$
people NNS
for IN
as RB
long RB
as IN
five CD
days NNS
. .

`` ``
Self-sufficiency NN
has VBZ
to TO
be VB
the DT
cornerstone NN
of IN
your PRP$
plan NN
, ,
'' ''
says VBZ
Stephanie NNP
Masaki-Schatz NNP
, ,
manager NN
of IN
corporate JJ
emergency NN
planning NN
at IN
Atlantic NNP
Richfield NNP
Co. NNP
in IN
Los NNP
Angeles NNP
. .

`` ``
If IN
you PRP
do VBP
n't RB
save VB
your PRP$
critical JJ
people NNS
, ,
you PRP
wo MD
n't RB
be VB
able JJ
to TO
bring VB
up IN
your PRP$
vital JJ
business NN
functions NNS
. .
'' ''

Although IN
ARCO NNP
's POS
head NN
office NN
, ,
more JJR
than IN
300 CD
miles NNS
from IN
the DT
epicenter NN
, ,
was VBD
n't RB
affected VBN
by IN
this DT
week NN
's POS
tremors NNS
, ,
Ms. NNP
Masaki-Schatz NNP
used VBD
the DT
occasion NN
to TO
distribute VB
a DT
three-page JJ
memo NN
of IN
`` ``
Earthquake NNP
Tips NNP
'' ''
to TO
1,200 CD
ARCO NNP
employees NNS
. .

`` ``
You PRP
need VBP
to TO
capitalize VB
on IN
these DT
moments NNS
when WRB
you PRP
have VBP
everyone NN
's POS
attention NN
, ,
'' ''
she PRP
says VBZ
. .

`` ``
It PRP
was VBD
a DT
good JJ
reminder NN
that IN
we PRP
all DT
need NN
to TO
prepare VB
prior RB
to TO
an DT
event NN
. .
'' ''

The DT
ARCO NNP
memo NN
urges VBZ
employees NNS
to TO
keep VB
certain JJ
supplies NNS
at IN
work NN
, ,
such JJ
as IN
solid JJ
shoes NNS
and CC
`` ``
heavy JJ
gloves NNS
to TO
clear VB
debris NN
. .
'' ''

It PRP
also RB
recommends VBZ
that IN
employees NNS
be VBP
aware JJ
of IN
everyday JJ
office NN
items NNS
that WDT
could MD
be VB
used VBN
for IN
emergency NN
care NN
or CC
shelter NN
. .

Among IN
the DT
suggestions NNS
: :
Pantyhose NN
and CC
men NNS
's POS
ties NNS
could MD
be VB
used VBN
for IN
slings NNS
, ,
while IN
removable JJ
wooden JJ
shelves NNS
might MD
aid VB
in IN
`` ``
breaking VBG
through IN
office NN
walls NNS
. .
'' ''

ARCO NNP
maintains VBZ
an DT
office NN
in IN
Dallas NNP
that WDT
would MD
take VB
over IN
if IN
payroll NN
operations NNS
in IN
Pasadena NNP
were VBD
disrupted VBN
. .

Two CD
months NNS
ago RB
the DT
company NN
set VBN
up IN
a DT
toll-free JJ
number NN
, ,
based VBN
outside IN
California NNP
, ,
to TO
handle VB
queries NNS
from IN
employees NNS
about IN
when WRB
they PRP
should MD
report VB
back RB
to TO
work VB
after IN
an DT
earthquake NN
or CC
other JJ
disaster NN
. .

The DT
ARCO NNP
plan NN
takes VBZ
into IN
account NN
such JJ
details NNS
as IN
which WDT
aspects NNS
of IN
business NN
are VBP
busier JJR
at IN
certain JJ
times NNS
of IN
the DT
year NN
. .

This DT
way NN
, ,
depending VBG
on IN
when WRB
a DT
quake NN
might MD
strike VB
, ,
priorities NNS
can MD
be VB
assigned VBN
to TO
departments NNS
that WDT
should MD
be VB
brought VBN
back RB
on IN
line NN
first JJ
. .

At IN
Hewlett-Packard NNP
Co. NNP
, ,
the DT
earthquake NN
came VBD
just RB
as IN
the DT
company NN
was VBD
reviewing VBG
its PRP$
own JJ
emergency NN
procedures NNS
. .

`` ``
We PRP
were VBD
talking VBG
about IN
scheduling VBG
a DT
practice NN
drill NN
for IN
November NNP
, ,
'' ''
says VBZ
Joan NNP
Tharp NNP
, ,
a DT
spokeswoman NN
. .

`` ``
Then RB
we PRP
had VBD
a DT
real JJ
one CD
in IN
the DT
afternoon NN
. .
'' ''

The DT
Palo NNP
Alto NNP
, ,
Calif. NNP
, ,
computer NN
maker NN
scrambled VBD
to TO
set VB
up IN
a DT
special JJ
phone NN
line NN
to TO
tell VB
manufacturing NN
and CC
support NN
staff NN
to TO
stay VB
home NN
Wednesday NNP
. .
Sales NNS
and CC
service NN
employees NNS
were VBD
asked VBN
to TO
report VB
to TO
work VB
to TO
help VB
Bay NNP
area NN
clients NNS
who WP
called VBD
with IN
computer NN
problems NNS
. .

Hewlett-Packard NNP
also RB
called VBD
in IN
its PRP$
systems NNS
experts NNS
to TO
restore VB
its PRP$
own JJ
computer NN
operations NNS
. .

`` ``
That DT
means VBZ
we PRP
can MD
accept VB
orders NNS
'' ''
and CC
begin VB
getting VBG
back RB
to TO
normal JJ
, ,
says VBZ
Ms. NNP
Tharp NNP
. .

Prompted VBN
by IN
an DT
earlier RBR
California NNP
earthquake NN
, ,
as RB
well RB
as IN
a DT
fire NN
in IN
a DT
Los NNP
Angeles NNP
office NN
tower NN
, ,
Great NNP
Western NNP
Bank NNP
in IN
the DT
past JJ
year NN
hired VBN
three CD
emergency NN
planners NNS
and CC
spent VBD
$ $
75,000 CD
equipping VBG
a DT
trailer NN
with IN
communications NNS
gear VBP
to TO
serve VB
as IN
an DT
emergency NN
headquarters NN
. .

Although IN
officials NNS
of IN
the DT
savings NNS
and CC
loan NN
, ,
a DT
unit NN
of IN
Great NNP
Western NNP
Financial NNP
Corp. NNP
, ,
used VBD
some DT
of IN
their PRP$
new JJ
plans NNS
and CC
equipment NN
during IN
this DT
week NN
's POS
quake NN
, ,
they PRP
still RB
lost VBD
touch NN
for IN
more JJR
than IN
24 CD
hours NNS
with IN
15 CD
branches NNS
in IN
the DT
affected VBN
areas NNS
, ,
not RB
knowing VBG
if IN
employees NNS
were VBD
injured VBN
or CC
vaults NNS
were VBD
broken VBN
open JJ
. .

`` ``
Some DT
people NNS
flat JJ
out IN
did VBD
n't RB
know VB
what WP
to TO
do VB
, ,
'' ''
says VBZ
Robert NNP
G. NNP
Lee NNP
, ,
vice NN
president NN
for IN
emergency NN
planning NN
and CC
corporate JJ
security NN
at IN
Great NNP
Western JJ
. .

As IN
it PRP
turned VBD
out IN
, ,
bank NN
employees NNS
were VBD
n't RB
hurt VBN
and CC
the DT
vaults NNS
withstood VBD
the DT
jolts NNS
. .

Still RB
, ,
says VBZ
Mr. NNP
Lee NNP
: :
`` ``
We PRP
need VBP
to TO
educate VB
people NNS
that IN
they PRP
need VBP
to TO
get VB
to TO
a DT
phone NN
somehow RB
, ,
some DT
way NN
, ,
to TO
let VB
someone NN
know NN
what WP
their PRP$
status NN
is NNS
. .
'' ''

Some DT
companies NNS
are VBP
confident JJ
that IN
they PRP
're VBP
prepared VBN
. .

Occidental NNP
Petroleum NNP
Corp. NNP
holds VBZ
regular JJ
evacuation NN
drills NNS
and CC
stocks NNS
food NN
, ,
oxygen NN
and CC
non-prescription JJ
drugs NNS
at IN
checkpoints NNS
in IN
its PRP$
16-story JJ
headquarters NN
. .

The DT
company NN
also RB
maintains VBZ
rechargeable JJ
flashlights NNS
in IN
offices NNS
and CC
changes NNS
its PRP$
standby JJ
supply NN
of IN
drinking NN
water NN
every DT
three CD
months NNS
. .

`` ``
We PRP
feel VBP
we PRP
are VBP
doing VBG
everything NN
we PRP
can MD
, ,
'' ''
an DT
Occidental NNP
spokesman NN
says NNS
. .

Walt NNP
Disney NNP
Co. NNP
's POS
Disneyland NNP
in IN
Anaheim NNP
, ,
Calif. NNP
, ,
stocks NNS
rescue NN
equipment NN
, ,
medical JJ
supplies NNS
, ,
and CC
enough JJ
food NN
and CC
water NN
to TO
feed VB
at IN
least JJS
10,000 CD
visitors NNS
for IN
as RB
long RB
as IN
five CD
days NNS
in IN
the DT
event NN
that IN
a DT
calamity NN
isolates VBZ
the DT
theme NN
park NN
. .

The DT
park NN
also RB
has VBZ
emergency NN
centers NNS
where WRB
specially RB
trained VBN
employees NNS
would MD
go VB
to TO
coordinate VB
evacuation NN
and CC
rescue NN
plans NNS
using VBG
walkie-talkies NNS
, ,
cellular JJ
phones NNS
, ,
and CC
a DT
public-address JJ
system NN
. .

The DT
centers NNS
are VBP
complete JJ
with IN
maps NNS
detailing VBG
utility NN
lines NNS
beneath IN
rides NNS
and CC
`` ``
safe JJ
havens NNS
'' ''
where WRB
people NNS
can MD
be VB
assembled VBN
away RB
from IN
major JJ
structures NNS
. .

Vista NNP
Chemical NNP
Co. NNP
, ,
with IN
three CD
chemical NN
plants NNS
in IN
and CC
near IN
Lake NNP
Charles NNP
, ,
La. NNP
, ,
`` ``
prepares VBZ
for IN
every DT
hurricane NN
that WDT
enters VBZ
the DT
Gulf NNP
of IN
Mexico NNP
, ,
'' ''
says VBZ
Keith NNP
L. NNP
Fogg NNP
, ,
a DT
company NN
safety NN
director NN
. .

Hurricane NNP
Hugo NNP
, ,
an DT
Atlantic NNP
storm NN
, ,
did VBD
n't RB
affect VB
Vista NNP
. .

But CC
two CD
other JJ
major JJ
storms NNS
have VBP
threatened VBN
operations NNS
so RB
far RB
this DT
year NN
, ,
most RBS
recently RB
Hurricane NNP
Jerry NNP
this DT
week NN
. .

Because IN
hurricanes NNS
can MD
change VB
course NN
rapidly RB
, ,
the DT
company NN
sends VBZ
employees NNS
home VBP
and CC
shuts VBZ
down JJ
operations NNS
in IN
stages NNS
-- :
the DT
closer JJR
a DT
storm NN
gets VBZ
, ,
the DT
more RBR
complete VB
the DT
shutdown NN
. .

The DT
company NN
does VBZ
n't RB
wait VB
until IN
the DT
final JJ
hours NNS
to TO
get VB
ready JJ
for IN
hurricanes NNS
. .

`` ``
There EX
are VBP
just RB
tons NNS
of IN
things NNS
that WDT
have VBP
to TO
be VB
considered VBN
, ,
'' ''
Mr. NNP
Fogg NNP
says VBZ
. .

`` ``
Empty JJ
tank NN
cars NNS
will MD
float VB
away RB
on IN
you PRP
if IN
you PRP
get VBP
a DT
big JJ
tidal JJ
surge NN
. .
'' ''

Still RB
, ,
Vista NNP
officials NNS
realize VBP
they PRP
're VBP
relatively RB
fortunate JJ
. .

`` ``
With IN
a DT
hurricane NN
you PRP
know VBP
it PRP
's VBZ
coming VBG
. .

You PRP
have VBP
time NN
to TO
put VB
precautionary JJ
mechanisms NNS
in IN
place NN
, ,
'' ''
notes VBZ
a DT
Vista NNP
spokeswoman NN
. .

`` ``
A DT
situation NN
like IN
San NNP
Francisco NNP
is VBZ
so RB
frightening JJ
because IN
there EX
's VBZ
no DT
warning NN
. .

Former JJ
Democratic JJ
fund-raiser NN
Thomas NNP
M. NNP
Gaubert NNP
, ,
whose WP$
savings NNS
and CC
loan NN
was VBD
wrested VBN
from IN
his PRP$
control NN
by IN
federal JJ
thrift NN
regulators NNS
, ,
has VBZ
been VBN
granted VBN
court NN
permission NN
to TO
sue VB
the DT
regulators NNS
. .

In IN
a DT
ruling NN
by IN
the DT
Fifth NNP
U.S. NNP
Circuit NNP
Court NNP
of IN
Appeals NNPS
in IN
New NNP
Orleans NNP
, ,
Mr. NNP
Gaubert NNP
received VBD
the DT
go-ahead NN
to TO
pursue VB
a DT
claim NN
against IN
the DT
Federal NNP
Home NNP
Loan NNP
Bank NNP
Board NNP
and CC
the DT
Federal NNP
Home NNP
Loan NNP
Bank NNP
of IN
Dallas NNP
for IN
losses NNS
he PRP
suffered VBD
when WRB
the DT
Bank NNP
Board NNP
closed VBD
the DT
Independent NNP
American NNP
Savings NNP
Association NNP
of IN
Irving NNP
, ,
Texas NNP
. .

Mr. NNP
Gaubert NNP
, ,
who WP
was VBD
chairman NN
and CC
the DT
majority NN
stockholder NN
of IN
Independent NNP
American NNP
, ,
had VBD
relinquished VBN
his PRP$
control NN
in IN
exchange NN
for IN
federal JJ
regulators NNS
' POS
agreement NN
to TO
drop VB
their PRP$
inquiry NN
into IN
his PRP$
activities NNS
at IN
another DT
savings NNS
and CC
loan NN
. .

As IN
part NN
of IN
the DT
agreement NN
, ,
Mr. NNP
Gaubert NNP
contributed VBD
real JJ
estate NN
valued VBN
at IN
$ $
25 CD
million CD
to TO
the DT
assets NNS
of IN
Independent NNP
American NNP
. .

While IN
under IN
the DT
control NN
of IN
federal JJ
regulators NNS
, ,
Independent NNP
American NNP
's POS
net JJ
worth NN
dropped VBD
from IN
$ $
75 CD
million CD
to TO
a DT
negative JJ
$ $
400 CD
million CD
, ,
wiping VBG
out IN
the IN
value NN
of IN
Mr. NNP
Gaubert NNP
's POS
real JJ
estate NN
contribution NN
and CC
his PRP$
stock NN
in IN
the DT
institution NN
. .

Mr. NNP
Gaubert NNP
's POS
suit NN
to TO
recover VB
his PRP$
damages NNS
was VBD
dismissed VBN
last JJ
year NN
by IN
U.S. NNP
District NNP
Judge NNP
Robert NNP
Maloney NNP
of IN
Dallas NNP
under IN
the DT
Federal NNP
Tort NNP
Claims NNP
Act NNP
, ,
which WDT
offers VBZ
broad JJ
protection NN
for IN
actions NNS
by IN
federal JJ
agencies NNS
and CC
employees NNS
. .

Earlier RBR
this DT
week NN
, ,
a DT
Fifth NNP
Circuit NNP
appellate JJ
panel NN
upheld VBD
Judge NNP
Maloney NNP
's POS
dismissal NN
of IN
Mr. NNP
Gaubert NNP
's POS
claim NN
as IN
a DT
shareholder NN
but CC
said VBD
the DT
judge NN
should MD
reconsider VB
Mr. NNP
Gaubert NNP
's POS
claim NN
for IN
the DT
loss NN
of IN
his PRP$
property NN
. .

`` ``
It PRP
may MD
depend VB
on IN
whether IN
there EX
was VBD
an DT
express NN
or CC
implied VBN
promise NN
... :
that IN
the DT
federal JJ
officials NNS
would MD
not RB
negligently RB
cause VBG
the DT
deterioration NN
'' ''
of IN
Independent NNP
American NNP
, ,
the DT
court NN
wrote VBD
. .

Mr. NNP
Gaubert NNP
's POS
lawyer NN
, ,
Abbe NNP
David NNP
Lowell NNP
of IN
Washington NNP
, ,
D.C. NNP
, ,
says VBZ
the DT
impact NN
of IN
the DT
ruling NN
on IN
other JJ
cases NNS
involving VBG
thrift NN
takeovers NNS
will MD
depend VB
on IN
the DT
degree NN
of IN
similarity NN
in IN
the DT
facts NNS
. .

`` ``
I PRP
do VBP
n't RB
know VB
if IN
this DT
will MD
affect VB
one CD
institution NN
or CC
a DT
hundred CD
, ,
'' ''
Mr. NNP
Lowell NNP
says VBZ
. .

`` ``
It PRP
does VBZ
establish VB
a DT
very RB
clear JJ
precedent NN
for IN
suing VBG
the DT
FHLBB NNP
where WRB
there EX
was VBD
none NN
before IN
. .
'' ''

MAITRE'D NNP
CLAIMS VBZ
in IN
suit NN
that DT
restaurant NN
fired VBD
her PRP
because IN
she PRP
was VBD
pregnant JJ
. .

In IN
a DT
suit NN
filed VBN
in IN
state NN
court NN
in IN
Manhattan NNP
, ,
the DT
American NNP
Civil NNP
Liberties NNP
Union NNP
is VBZ
representing VBG
the DT
former JJ
maitre NNP
'd MD
of IN
the DT
chic JJ
Odeon NNP
restaurant NN
. .

The DT
suit NN
, ,
which WDT
seeks VBZ
compensatory JJ
and CC
punitive JJ
damages NNS
of IN
$ $
1 CD
million CD
, ,
alleges VBZ
that IN
the DT
firing NN
of IN
Marcia NNP
Trees NNP
Levine NNP
violated VBD
New NNP
York NNP
state NN
's POS
human-rights JJ
law NN
. .

Among IN
other JJ
things NNS
, ,
the DT
law NN
prohibits VBZ
discrimination NN
on IN
the DT
basis NN
of IN
sex NN
and CC
pregnancy NN
. .

The DT
suit NN
alleges VBZ
that IN
Ms. NNP
Levine NNP
was VBD
fired VBN
after IN
she PRP
refused VBD
to TO
accept VB
a DT
lower JJR
paying VBG
, ,
less RBR
visible JJ
job NN
upon IN
reaching VBG
her PRP$
sixth JJ
month NN
of IN
pregnancy NN
. .

Ms. NNP
Levine NNP
told VBD
her PRP$
employer NN
that IN
she PRP
was VBD
pregnant JJ
in IN
February NNP
; :
a DT
month NN
later RB
, ,
the DT
suit NN
says VBZ
, ,
the DT
restaurant NN
manager NN
told VBD
Ms. NNP
Levine NNP
that IN
she PRP
would MD
be VB
demoted VBN
to TO
his PRP$
assistant NN
because IN
he PRP
felt VBD
customers NNS
would MD
be VB
uncomfortable JJ
with IN
a DT
pregnant JJ
maitre NNP
'd MD
. .

Kary NNP
Moss NNP
, ,
an DT
attorney NN
with IN
the DT
ACLU NNP
's POS
Women NNP
's POS
Rights NNP
Project NNP
, ,
said VBD
, ,
`` ``
They PRP
wanted VBD
a DT
svelte-looking JJ
woman NN
, ,
and CC
a DT
pregnant JJ
woman NN
is VBZ
not RB
svelte JJ
. .

They PRP
told VBD
her PRP$
, ,
` ``
We PRP
do VBP
n't RB
hire VB
fat JJ
people NNS
and CC
we PRP
do VBP
n't RB
hire VB
cripples NNS
. .

And CC
pregnant JJ
women NNS
are VBP
fat JJ
. .
' ''
'' ''

Ms. NNP
Moss NNP
said VBD
Ms. NNP
Levine NNP
secretly RB
taped VBD
many JJ
conversations NNS
with IN
her PRP$
bosses NNS
at IN
the DT
Odeon NNP
in IN
which WDT
they PRP
told VBD
her PRP$
she PRP
was VBD
being VBG
fired VBN
as IN
maitre NNP
'd MD
because IN
she PRP
was VBD
pregnant JJ
. .

Paul NNP
H. NNP
Aloe NNP
, ,
an DT
attorney NN
for IN
Odeon NNP
owner NN
Keith NNP
McNally NNP
, ,
denied VBD
the DT
allegations NNS
. .

He PRP
said VBD
Ms. NNP
Levine NNP
had VBD
never RB
been VBN
fired VBN
, ,
although IN
she PRP
had VBD
stopped VBN
working VBG
at IN
the DT
restaurant NN
. .

`` ``
The DT
Odeon NNP
made VBD
a DT
written VBN
offer NN
to TO
Marcia NNP
Levine NNP
on IN
July NNP
10 CD
to TO
return VB
to TO
work VB
as IN
the DT
maitre NNP
'd MD
, ,
at IN
the DT
same JJ
pay NN
, ,
same JJ
hours NNS
and CC
with IN
back JJ
pay NN
accrued VBN
, ,
'' ''
he PRP
said VBD
. .

Mr. NNP
Aloe NNP
said VBD
the DT
Odeon NNP
`` ``
has VBZ
no DT
policy NN
against IN
hiring VBG
pregnant JJ
people NNS
. .
'' ''

LAWYERS NNS
IN IN
Texas NNP
's POS
biggest JJS
bank-fraud NN
case NN
want VBP
out IN
in IN
face NN
of IN
retrial NN
. .

Lawyers NNS
representing VBG
five CD
of IN
the DT
seven CD
defendants NNS
in IN
the DT
case NN
say VBP
their PRP$
clients NNS
can MD
no RB
longer RB
afford VB
their PRP$
services NNS
. .
The DT
trial NN
of IN
the DT
case NN
lasted VBD
seven CD
months NNS
and CC
ended VBD
in IN
September NNP
with IN
a DT
hung VBN
jury NN
. .

The DT
defendants NNS
were VBD
indicted VBN
two CD
years NNS
ago RB
on IN
charges NNS
that IN
they PRP
conspired VBD
to TO
defraud VB
five CD
thrifts NNS
of IN
more JJR
than IN
$ $
130 CD
million CD
through IN
a DT
complicated VBN
scheme NN
to TO
inflate VB
the DT
price NN
of IN
land NN
and CC
condominium NN
construction NN
along IN
Interstate NNP
30 CD
, ,
east NN
of IN
Dallas NNP
. .

The DT
defense NN
lawyers NNS
, ,
three CD
of IN
whom WP
are VBP
solo NN
practitioners NNS
, ,
say VBP
they PRP
ca MD
n't RB
afford VB
to TO
put VB
their PRP$
law NN
practices NNS
on IN
hold NN
for IN
another DT
seven-month JJ
trial NN
. .

Some DT
of IN
the DT
lawyers NNS
say VBP
they PRP
would MD
continue VB
to TO
represent VB
their PRP$
clients NNS
if IN
the DT
government NN
pays VBZ
their PRP$
tab NN
as IN
court-appointed JJ
lawyers NNS
. .

Assistant NNP
U.S. NNP
Attorney NNP
Terry NNP
Hart NNP
of IN
Dallas NNP
says VBZ
the DT
government NN
will MD
oppose VB
any DT
efforts NNS
to TO
bring VB
in IN
a DT
new JJ
defense NN
team NN
because IN
it PRP
would MD
delay VB
a DT
retrial NN
. .

FEDERAL JJ
JUDGE NNP
ALCEE NNP
HASTINGS NNP
of IN
Florida NNP
, ,
facing VBG
impeachment NN
, ,
received VBD
an DT
unanticipated JJ
boost NN
yesterday NN
. .

Sen. NNP
Arlen NNP
Specter NNP
-LRB- (
R. NNP
, ,
Pa NNP
. .
-RRB- )
urged VBD
acquittal NN
of IN
the DT
judge NN
in IN
a DT
brief NN
circulated VBD
to TO
his PRP$
Senate NNP
colleagues NNS
during IN
closed-door JJ
deliberations NNS
. .

Among IN
other JJ
things NNS
, ,
the DT
brief NN
cited VBD
insufficient JJ
evidence NN
. .

Sen. NNP
Specter NNP
was VBD
vice NN
chairman NN
of IN
the DT
impeachment NN
trial NN
committee NN
that WDT
heard VBD
evidence NN
in IN
the DT
Hastings NNP
case NN
last JJ
summer NN
. .

A DT
former JJ
prosecutor NN
and CC
member NN
of IN
the DT
Senate NNP
Judiciary NNP
Committee NNP
, ,
Sen. NNP
Specter NNP
is VBZ
expected VBN
to TO
exercise VB
influence NN
when WRB
the DT
Senate NNP
votes NNS
on IN
the DT
impeachment NN
today NN
. .

RICHMOND NNP
RESIGNATIONS NNS
: :

Six CD
partners NNS
in IN
the DT
Richmond NNP
, ,
Va. NNP
, ,
firm NN
of IN
Browder NNP
, ,
Russell NNP
, ,
Morris NNP
& CC
Butcher NNP
announced VBD
they PRP
are VBP
resigning VBG
. .

Five CD
of IN
the DT
partners NNS
-- :
James NNP
W. NNP
Morris NNP
, ,
Philip NNP
B. NNP
Morris NNP
, ,
Robert NNP
M. NNP
White NNP
, ,
Ann NNP
Adams NNP
Webster NNP
and CC
Jacqueline NNP
G. NNP
Epps NNP
-- :
are VBP
opening VBG
a DT
boutique NN
in IN
Richmond NNP
to TO
concentrate VB
on IN
corporate JJ
defense NN
litigation NN
, ,
particularly RB
in IN
product NN
liability NN
cases NNS
. .

The DT
sixth JJ
partner NN
, ,
John NNP
H. NNP
OBrion NNP
, ,
Jr. NNP
, ,
is VBZ
joining VBG
Cowan NNP
& CC
Owen NNP
, ,
a DT
smaller JJR
firm NN
outside IN
Richmond NNP
. .

LAW NN
FIRM NN
NOTES NNS
: :

Nixon NNP
, ,
Hargrave NNP
, ,
Devans NNP
& CC
Doyle NNP
, ,
based VBN
in IN
Rochester NNP
, ,
N.Y. NNP
, ,
has VBZ
opened VBN
an DT
office NN
in IN
Buffalo NNP
, ,
N.Y NNP
... :
. .

Mayer NNP
, ,
Brown NNP
& CC
Platt NNP
, ,
Chicago NNP
, ,
added VBD
two CD
partners NNS
to TO
its PRP$
Houston NNP
office NN
, ,
Eddy NNP
J. NNP
Roger NNP
Jr. NNP
, ,
and CC
Jeff NNP
C. NNP
Dodd NNP
... :
. .

Copyright NN
specialist NN
Neil NNP
Boorstyn NNP
, ,
who WP
writes VBZ
the DT
monthly JJ
Copyright NNP
Law NNP
Journal NNP
newsletter NN
, ,
is VBZ
joining VBG
McCutchen NNP
, ,
Doyle NNP
, ,
Brown NNP
& CC
Enersen NNP
. .

New NNP
York NNP
Times NNP
Co. NNP
's POS
third-quarter JJ
earnings NNS
report NN
is VBZ
reinforcing VBG
analysts NNS
' POS
belief NN
that IN
newspaper NN
publishers NNS
will MD
be VB
facing VBG
continued VBN
poor JJ
earnings NNS
comparisons NNS
through IN
1990 CD
. .

The DT
publisher NN
was VBD
able JJ
to TO
register VB
soaring VBG
quarter NN
net JJ
income NN
because IN
of IN
a DT
onetime JJ
gain NN
on IN
the DT
sale NN
of IN
its PRP$
cable-TV NN
system NN
. .

However RB
, ,
operating VBG
profit NN
fell VBD
35 CD
% NN
to TO
$ $
16.4 CD
million CD
. .

The DT
decline NN
reflected VBD
the DT
expense NN
of IN
buying VBG
three CD
magazines NNS
, ,
lower JJR
earnings NNS
from IN
the DT
forest-products NNS
group VBP
, ,
and CC
what WP
is VBZ
proving VBG
to TO
be VB
a DT
nagging JJ
major JJ
problem NN
, ,
continued VBD
declines NNS
in IN
advertising NN
linage NN
at IN
the DT
New NNP
York NNP
Times NNP
, ,
the DT
company NN
's POS
flagship NN
daily JJ
newspaper NN
. .

In IN
composite JJ
trading NN
on IN
the DT
American NNP
Stock NNP
Exchange NNP
, ,
New NNP
York NNP
Times NNP
closed VBD
at IN
$ $
28.125 CD
a DT
share NN
, ,
down RB
37.5 CD
cents NNS
. .

Analysts NNS
said VBD
the DT
company NN
's POS
troubles NNS
mirror VBP
those DT
of IN
the DT
industry NN
. .

Retail JJ
advertising NN
, ,
which WDT
often RB
represents VBZ
half NN
of IN
the DT
advertising NN
volume NN
at IN
most RBS
daily JJ
newspapers NNS
, ,
largely RB
is VBZ
n't RB
rebounding VBG
in IN
the DT
second JJ
half NN
from IN
extended VBN
doldrums NNS
as IN
expected VBN
. .

At IN
the DT
same JJ
time NN
, ,
newspapers NNS
are VBP
bedeviled VBN
by IN
lagging VBG
national JJ
advertising NN
, ,
especially RB
in IN
its PRP$
financial JJ
component NN
. .

Dow NNP
Jones NNP
& CC
Co. NNP
recently RB
reported VBD
net NN
fell VBD
9.9 CD
% NN
, ,
a DT
reflection NN
, ,
in IN
part NN
, ,
of IN
continued VBN
softness NN
in IN
financial JJ
advertising NN
at IN
The DT
Wall NNP
Street NNP
Journal NNP
and CC
Barron NNP
's POS
magazine NN
. .

`` ``
We PRP
expect VBP
next JJ
year NN
to TO
be VB
a DT
fairly RB
soft JJ
year NN
in IN
newspaper-industry JJ
advertising NN
, ,
'' ''
said VBD
John NNP
Morton NNP
, ,
an DT
analyst NN
for IN
Lynch NNP
, ,
Jones NNP
& CC
Ryan NNP
. .

`` ``
Next JJ
year NN
, ,
earnings NNS
will MD
hold VB
steady JJ
, ,
but CC
we PRP
just RB
do VBP
n't RB
see VB
a DT
big JJ
turnaround NN
in IN
the DT
trend NN
in IN
advertising NN
. .
'' ''

John NNP
S. NNP
Reidy NNP
, ,
an DT
analyst NN
for IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc. NNP
, ,
said VBD
, ,
`` ``
The DT
Times NNP
faces VBZ
the DT
same JJ
problem NN
of IN
other JJ
publishers NNS
: :
linage NN
is VBZ
down RB
. .

It PRP
will MD
be VB
hard JJ
to TO
do VB
handstands NNS
until IN
real JJ
linage NN
starts VBZ
heading VBG
back RB
up IN
. .
'' ''

In IN
the DT
quarterly JJ
report NN
, ,
Arthur NNP
Ochs NNP
Sulzberger NNP
, ,
New NNP
York NNP
Times NNP
Co. NNP
chairman NN
and CC
chief JJ
executive JJ
officer NN
, ,
said VBD
negative JJ
factors NNS
affecting VBG
third-quarter JJ
earnings NNS
will MD
continue VB
. .

Analysts NNS
agreed VBD
with IN
company NN
expectations NNS
that IN
operating VBG
profit NN
will MD
be VB
down RP
this DT
year NN
and CC
in IN
1990 CD
. .

Mr. NNP
Sulzberger NNP
said VBD
the DT
scheduled VBN
opening NN
of IN
a DT
new JJ
color-printing JJ
plant NN
in IN
Edison NNP
, ,
N.J. NNP
, ,
in IN
1990 CD
would MD
involve VB
heavy JJ
startup NN
and CC
depreciation NN
costs NNS
. .

`` ``
With IN
the DT
Edison NNP
plant NN
coming VBG
on IN
line NN
next JJ
summer NN
, ,
the DT
Times NNP
is VBZ
facing VBG
some DT
tough JJ
earnings NNS
comparison NN
in IN
the DT
future NN
, ,
'' ''
said VBD
Peter NNP
Appert NNP
, ,
an DT
analyst NN
with IN
C.J. NNP
Lawrence NNP
, ,
Morgan NNP
Grenfell NNP
. .

`` ``
But CC
many JJ
newspapers NNS
are VBP
facing VBG
similar JJ
comparisons NNS
. .
'' ''
The DT
sale NN
of IN
the DT
company NN
's POS
cable NN
franchise NN
brought VBD
an DT
after-tax JJ
gain NN
of IN
$ $
193.3 CD
million CD
, ,
part NN
of IN
which WDT
will MD
be VB
used VBN
to TO
reduce VB
debt NN
. .

The DT
company NN
also RB
has VBZ
a DT
stock-repurchase JJ
plan NN
. .

Analysts NNS
said VBD
they PRP
were VBD
impressed VBN
by IN
the DT
performance NN
of IN
the DT
company NN
's POS
newspaper NN
group NN
, ,
which WDT
consists VBZ
of IN
the DT
Times NNP
, ,
35 CD
regional JJ
newspapers NNS
and CC
a DT
one-third NN
interest NN
in IN
the DT
International NNP
Herald NNP
Tribune NNP
; :
group NN
operating VBG
profit NN
for IN
the DT
quarter NN
increased VBN
slightly RB
to TO
$ $
34.9 CD
million CD
from IN
$ $
34.5 CD
million CD
on IN
flat JJ
revenue NN
. .

Drexel NNP
Burnham NNP
's POS
Mr. NNP
Reidy NNP
pointed VBD
out RP
that IN
`` ``
profits NNS
held VBN
up IN
in IN
a DT
tough JJ
revenue NN
environment NN
. .

That DT
's VBZ
a DT
good JJ
sign NN
when WRB
profits NNS
are VBP
stable JJ
during IN
a DT
time NN
revenue NN
is VBZ
in IN
the DT
trough NN
. .

Investors NNS
celebrated VBD
the DT
second JJ
anniversary NN
of IN
Black NNP
Monday NNP
with IN
a DT
buying VBG
spree NN
in IN
both DT
stocks NNS
and CC
bonds NNS
. .

But CC
the DT
dollar NN
was VBD
mixed VBN
. .

Stock NNP
and CC
bond NN
investors NNS
were VBD
cheered VBN
by IN
last JJ
month NN
's POS
encouragingly RB
low JJ
inflation NN
rate NN
. .

This DT
news NN
raised VBN
hopes VBZ
for IN
further JJ
interest-rate NN
cuts NNS
. .

Treasury-bond JJ
prices NNS
immediately RB
rallied VBD
, ,
setting VBG
the DT
stock NN
market NN
rolling VBG
from IN
the DT
opening NN
bell NN
. .

The DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
, ,
up IN
about IN
60 CD
points NNS
in IN
mid-afternoon JJ
, ,
finished VBD
with IN
a DT
gain NN
of IN
39.55 CD
points NNS
, ,
to TO
2683.20 CD
. .

That DT
brought VBN
the DT
average NN
's POS
cumulative JJ
gain NN
this DT
week NN
to TO
about IN
114 CD
points NNS
. .

Since IN
the DT
1987 CD
crash NN
, ,
the DT
industrials NNS
have VBP
soared VBN
more JJR
than IN
54 CD
% NN
, ,
and CC
the DT
widely RB
watched VBN
market NN
barometer NN
is VBZ
about IN
4 CD
% NN
below IN
its PRP$
record NN
high RB
set VBD
earlier RBR
this DT
month NN
. .

The DT
stock-market NN
rally NN
was VBD
led VBN
by IN
blue-chip JJ
issues NNS
, ,
but CC
, ,
unlike IN
Monday NNP
's POS
rebound NN
, ,
was VBD
broadly RB
based VBN
. .

Indeed RB
, ,
over-the-counter JJ
stocks NNS
, ,
led VBN
by IN
technology NN
issues NNS
, ,
outleaped VBD
the DT
industrial JJ
average NN
. .

The DT
Nasdaq NNP
Composite NNP
Index NNP
soared VBD
7.52 CD
, ,
or CC
1.6 CD
% NN
, ,
to TO
470.80 CD
, ,
its PRP$
highest JJS
one-day JJ
jump NN
in IN
points VBZ
this DT
year NN
. .

Many JJ
takeover-related JJ
stocks NNS
rose VBD
after IN
news NN
that IN
a DT
group NN
obtained VBD
financing NN
commitments NNS
for IN
the DT
proposed VBN
buy-out NN
of IN
American NNP
Medical NNP
International NNP
Inc NNP
. .

Among IN
the DT
biggest JJS
winners NNS
were VBD
brokerage-house NN
stocks NNS
, ,
responding VBG
to TO
heavy JJ
trading NN
volume NN
. .

The DT
government NN
said VBD
consumer NN
prices NNS
rose VBD
only RB
0.2 CD
% NN
last JJ
month NN
. .

Economists NNS
expected VBN
twice RB
as IN
large JJ
an DT
increase NN
. .

That DT
news NN
, ,
plus CC
recent JJ
signs NNS
of IN
economic JJ
sluggishness NN
, ,
greatly RB
increases NNS
pressure VBP
on IN
the DT
Federal NNP
Reserve NNP
to TO
ease VB
credit NN
further RBR
, ,
which WDT
in IN
turn NN
would MD
be VB
good JJ
news NN
for IN
stocks NNS
, ,
investment NN
managers NNS
say VBP
. .

`` ``
I PRP
see VBP
a DT
lot NN
of IN
evidence NN
indicating VBG
a DT
slower JJR
economy NN
, ,
and CC
that DT
means VBZ
my PRP$
interest-rate NN
outlook NN
has VBZ
a DT
downward JJ
tilt NN
, ,
'' ''
said VBD
Garnett NNP
L. NNP
Keith NNP
Jr. NNP
, ,
vice NN
chairman NN
of IN
Prudential NNP
Insurance NNP
Co. NNP
of IN
America NNP
, ,
one CD
of IN
the DT
nation NN
's POS
largest JJS
institutional JJ
investors NNS
. .

Fed JJ
officials NNS
probably RB
wo MD
n't RB
drive VB
down RB
rates VBZ
immediately RB
, ,
Mr. NNP
Keith NNP
said VBD
. .

Despite IN
the DT
inflation NN
news NN
, ,
several JJ
Fed NNP
officials NNS
still JJ
fear NN
consumer-price JJ
pressures NNS
will MD
intensify VB
because IN
they PRP
insist VBP
the DT
economy NN
is VBZ
stronger JJR
than IN
generally RB
believed VBD
. .

But CC
Wall NNP
Street NNP
analysts NNS
expect VBP
further JJ
signs NNS
of IN
economic JJ
weakness NN
in IN
government NN
reports NNS
during IN
the DT
next JJ
few JJ
weeks NNS
. .

If IN
so RB
, ,
that WDT
will MD
cinch VB
the DT
case NN
for IN
another DT
shot NN
of IN
credit-easing JJ
within IN
a DT
month NN
or CC
so RB
. .

That DT
, ,
in IN
turn NN
, ,
is VBZ
expected VBN
to TO
persuade VB
banks NNS
to TO
cut VB
their PRP$
prime JJ
lending NN
rate NN
, ,
a DT
benchmark NN
rate NN
on IN
many JJ
corporate JJ
and CC
consumer NN
loans NNS
, ,
by IN
half PDT
a DT
percentage NN
point NN
, ,
to TO
10 CD
% NN
. .

`` ``
We PRP
're VBP
not RB
out IN
of IN
the DT
woods NNS
yet RB
by IN
any DT
means VBZ
, ,
'' ''
said VBD
George NNP
R. NNP
Mateyo NNP
, ,
president NN
and CC
chief JJ
executive NN
of IN
Carnegie NNP
Capital NNP
Management NNP
Co. NNP
, ,
Cleveland NNP
. .

But CC
the DT
economy NN
`` ``
is VBZ
slowing VBG
enough RB
to TO
give VB
the DT
Federal NNP
Reserve NNP
leeway NN
to TO
reduce VB
interest NN
rates NNS
. .
'' ''
But CC
many JJ
individual JJ
investors NNS
are VBP
leery JJ
about IN
stocks NNS
because IN
of IN
fresh JJ
signs NNS
of IN
fragility NN
in IN
the DT
huge JJ
junk-bond NN
market NN
. .

Investors NNS
also RB
are VBP
anxious JJ
about IN
today NN
's POS
`` ``
witching JJ
hour NN
, ,
'' ''
the DT
monthly JJ
expiration NN
of IN
stock-index NN
futures NNS
and CC
options NNS
, ,
and CC
options NNS
on IN
individual JJ
stocks NNS
. .

This DT
phenomenon NN
often RB
makes VBZ
stock NN
prices NNS
swing VBP
wildly RB
at IN
the DT
end NN
of IN
the DT
trading NN
session NN
. .

In IN
major JJ
market NN
activity NN
: :
Stock NNP
prices NNS
surged VBD
in IN
heavy JJ
trading NN
. .

Volume NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
rose VBD
to TO
198.1 CD
million CD
shares NNS
from IN
166.9 CD
million CD
Wednesday NNP
. .

Gaining VBG
Big NNP
Board NNP
issues NNS
outnumbered VBD
decliners NNS
by IN
1,235 CD
to TO
355 CD
. .

The DT
dollar NN
was VBD
mixed VBN
. .

In IN
New NNP
York NNP
late JJ
yesterday NN
, ,
it PRP
was VBD
at IN
141.70 CD
yen NN
, ,
up IN
from IN
141.45 CD
yen NN
late JJ
Wednesday NNP
. .

But CC
it PRP
fell VBD
to TO
1.8470 CD
marks NNS
from IN
1.8485 CD
. .

Tuesday NNP
's POS
rout NN
of IN
a DT
GOP NNP
congressional JJ
hopeful NN
in IN
a DT
Mississippi NNP
district NN
that WDT
has VBZ
n't RB
backed VBN
a DT
Democratic JJ
presidential JJ
candidate NN
since IN
Adlai NNP
Stevenson NNP
is VBZ
another DT
reminder NN
that IN
, ,
at IN
least JJS
at IN
the DT
federal JJ
level NN
, ,
political JJ
`` ``
ticket NN
splitting NN
'' ''
has VBZ
been VBN
on IN
the DT
rise NN
over IN
the DT
past JJ
half NN
century NN
. .

In IN
only RB
one CD
presidential JJ
election NN
year NN
prior RB
to TO
1948 CD
did VBD
more JJR
than IN
20 CD
% NN
of IN
the DT
nation NN
's POS
congressional JJ
districts NNS
choose VBP
a DT
different JJ
party NN
's POS
candidate NN
for IN
the DT
White NNP
House NNP
than IN
for IN
the DT
House NNP
of IN
Representatives NNPS
. .
Now RB
that DT
percentage NN
routinely RB
equals VBZ
a DT
third JJ
and CC
twice RB
has VBZ
been VBN
above IN
40 CD
% NN
. .

As IN
we PRP
know VBP
, ,
voters NNS
tend VBP
to TO
favor VB
Republicans NNPS
more JJR
in IN
races NNS
for IN
president NN
than IN
in IN
those DT
for IN
Congress NNP
. .

In IN
every DT
presidential JJ
election NN
over IN
the DT
past JJ
half NN
century NN
, ,
except IN
for IN
the DT
Goldwater NNP
presidential JJ
candidacy NN
, ,
the DT
GOP NNP
has VBZ
captured VBN
a DT
greater JJR
percentage NN
of IN
the DT
major-party JJ
popular JJ
vote NN
for IN
president NN
than IN
it PRP
has VBZ
of IN
congressional JJ
seats NNS
or CC
the DT
popular JJ
vote NN
for IN
Congress NNP
. .

Prior RB
to TO
1932 CD
, ,
the DT
pattern NN
was VBD
nearly RB
the DT
opposite NN
. .

What WP
accounts VBZ
for IN
the DT
results NNS
of IN
recent JJ
decades NNS
? .

A DT
simple JJ
economic JJ
theory NN
may MD
provide VB
at IN
least JJS
a DT
partial JJ
explanation NN
for IN
the DT
split NN
personality NN
displayed VBN
by IN
Americans NNPS
in IN
the DT
voting NN
booth NN
. .

The DT
theory NN
relies VBZ
on IN
three CD
assumptions NNS
: :

1 CD
-RRB- )
Voters NNS
can MD
`` ``
buy VB
'' ''
one CD
of IN
two CD
brands NNS
when WRB
they PRP
select VBP
their PRP$
political JJ
agents NNS
-- :
a DT
Republican NNP
brand NN
that WDT
believes VBZ
in IN
the DT
minimalist JJ
state NN
and CC
in IN
the DT
virtues NNS
of IN
private JJ
markets NNS
over IN
the DT
vices NNS
of IN
public JJ
action NN
, ,
and CC
a DT
Democratic JJ
brand NN
that WDT
believes VBZ
in IN
big JJ
government NN
and CC
in IN
public JJ
intervention NN
to TO
remedy VB
the DT
excesses NNS
attendant NN
to TO
the DT
pursuit NN
of IN
private JJ
interest NN
. .

2 CD
-RRB- )
Congressional NNP
representatives NNS
have VBP
two CD
basic JJ
responsibilities NNS
while IN
voting NN
in IN
office NN
-- :
dealing VBG
with IN
national JJ
issues NNS
-LRB- (
programmatic JJ
actions NNS
such JJ
as IN
casting VBG
roll NN
call NN
votes NNS
on IN
legislation NN
that WDT
imposes VBZ
costs NNS
and\/or NN
confers VBZ
benefits NNS
on IN
the DT
population NN
at IN
large JJ
-RRB- )
and CC
attending VBG
to TO
local JJ
issues NNS
-LRB- (
constituency NN
service NN
and CC
pork NN
barrel NN
-RRB- )
. .

3 CD
-RRB- )
Republican NNP
congressional JJ
representatives NNS
, ,
because IN
of IN
their PRP$
belief NN
in IN
a DT
minimalist JJ
state NN
, ,
are VBP
less RBR
willing JJ
to TO
engage VB
in IN
local JJ
benefit-seeking NN
than IN
are VBP
Democratic JJ
members NNS
of IN
Congress NNP
. .

If IN
these DT
assumptions NNS
hold VBP
, ,
voters NNS
in IN
races NNS
for IN
Congress NNP
face NN
what WP
in IN
economic JJ
theory NN
is VBZ
called VBN
a DT
prisoner NN
's POS
dilemma NN
and CC
have VBP
an DT
incentive NN
, ,
at IN
the DT
margin NN
, ,
to TO
lean VB
Democratic JJ
. .

If IN
they PRP
put VBP
a DT
Republican NNP
into IN
office NN
, ,
not RB
only RB
will MD
they PRP
acquire VB
less JJR
in IN
terms NNS
of IN
local JJ
benefits NNS
but CC
their PRP$
selected VBN
legislator NN
will MD
be VB
relatively RB
powerless JJ
to TO
prevent VB
other JJ
legislators NNS
from IN
`` ``
bringing VBG
home NN
the DT
bacon NN
'' ''
to TO
their PRP$
respective JJ
constituencies NNS
. .

Each DT
legislator NN
, ,
after IN
all DT
, ,
is VBZ
only RB
one CD
out IN
of IN
535 CD
when WRB
it PRP
comes VBZ
to TO
national JJ
policy NN
making VBG
. .

In IN
races NNS
for IN
the DT
White NNP
House NNP
, ,
a DT
voter NN
's POS
incentive NN
, ,
at IN
the DT
margin NN
, ,
is VBZ
to TO
lean VB
Republican NNP
. .

Although IN
a DT
GOP NNP
president NN
may MD
limit VB
local JJ
benefits NNS
to TO
the DT
voter NN
's POS
particular JJ
district\/state NN
, ,
such JJ
a DT
president NN
is VBZ
also RB
likely JJ
to TO
be VB
more RBR
effective JJ
at IN
preventing VBG
other JJ
districts\/states NNS
and CC
their PRP$
legislators NNS
from IN
bringing VBG
home NN
the DT
local JJ
benefits NNS
. .

The DT
individual JJ
voter NN
's POS
standing VBG
consequently RB
will MD
be VB
enhanced VBN
through IN
lower JJR
taxes NNS
. .

While IN
this DT
theory NN
is VBZ
exceedingly RB
simple JJ
, ,
it PRP
appears VBZ
to TO
explain VB
several JJ
things NNS
. .

First RB
, ,
why WRB
ticket NN
splitting NN
has VBZ
increased VBN
and CC
taken VBN
the DT
peculiar JJ
pattern NN
that IN
it PRP
has VBZ
over IN
the DT
past JJ
half NN
century NN
: :
Prior RB
to TO
the DT
election NN
of IN
Franklin NNP
Roosevelt NNP
as IN
president NN
and CC
the DT
advent NN
of IN
the DT
New NNP
Deal NNP
, ,
government NN
occupied VBD
a DT
much RB
smaller JJR
role NN
in IN
society NN
and CC
the DT
prisoner NN
's POS
dilemma NN
problem NN
confronting VBG
voters NNS
in IN
races NNS
for IN
Congress NNP
was VBD
considerably RB
less RBR
severe JJ
. .

Second JJ
, ,
it PRP
explains VBZ
why WRB
voters NNS
hold VBP
Congress NNP
in IN
disdain NN
but CC
generally RB
love VBP
their PRP$
own JJ
congressional JJ
representatives NNS
: :
Any DT
individual JJ
legislator NN
's POS
constituents NNS
appreciate VBP
the DT
specific JJ
benefits NNS
that IN
the DT
legislator NN
wins VBZ
for IN
them PRP
but CC
not RB
the DT
overall JJ
cost NN
associated VBN
with IN
every DT
other JJ
legislator NN
doing VBG
likewise RB
for IN
his PRP$
own JJ
constituency NN
. .

Third NNP
, ,
the DT
theory NN
suggests VBZ
why WRB
legislators NNS
who WP
pay VBP
too RB
much JJ
attention NN
to TO
national JJ
policy NN
making VBG
relative JJ
to TO
local JJ
benefit-seeking NN
have VBP
lower JJR
security NN
in IN
office NN
. .

For IN
example NN
, ,
first-term JJ
members NNS
of IN
the DT
House NNP
, ,
once RB
the DT
most RBS
vulnerable JJ
of IN
incumbents NNS
, ,
have VBP
become VBN
virtually RB
immune JJ
to TO
defeat VB
. .

The DT
one CD
exception NN
to TO
this DT
recent JJ
trend NN
was VBD
the DT
defeat NN
of IN
13 CD
of IN
the DT
52 CD
freshman NN
Republicans NNPS
brought VBN
into IN
office NN
in IN
1980 CD
by IN
the DT
Reagan NNP
revolution NN
and CC
running VBG
for IN
re-election NN
in IN
1982 CD
. .

Because IN
these DT
freshmen NNS
placed VBN
far RB
more JJR
emphasis NN
on IN
their PRP$
partisan JJ
role NN
-- :
spreading VBG
the DT
Reagan NNP
revolution NN
-- :
in IN
national JJ
policy NN
making VBG
, ,
they PRP
were VBD
more RBR
vulnerable JJ
to TO
defeat VB
. .
Fourth NNP
, ,
the DT
theory NN
indicates VBZ
why WRB
the DT
Republican NNP
Party NNP
may MD
have VB
a DT
difficult JJ
time NN
attracting VBG
viable JJ
candidates NNS
for IN
congressional JJ
office NN
. .

Potential JJ
candidates NNS
may MD
be VB
discouraged VBN
from IN
running VBG
less JJR
by IN
the DT
congressional JJ
salary NN
than IN
by IN
the DT
prospect NN
of IN
defeat NN
at IN
the DT
hands NNS
of IN
a DT
Democratic JJ
opponent NN
. .

To TO
the DT
extent NN
that IN
potential JJ
Republican NNP
candidates NNS
and CC
their PRP$
financial JJ
backers NNS
realize VBP
that IN
the DT
congressional JJ
prisoner NN
's POS
dilemma NN
game NN
works NNS
to TO
their PRP$
disadvantage NN
, ,
the DT
Republican NNP
Party NNP
will MD
be VB
hindered VBN
in IN
its PRP$
attempts NNS
to TO
field VB
a DT
competitive JJ
slate NN
of IN
congressional JJ
candidates NNS
. .

Fifth NNP
, ,
the DT
theory NN
may MD
provide VB
at IN
least JJS
a DT
partial JJ
reason NN
for IN
why WRB
ticket NN
splitting NN
has VBZ
been VBN
particularly RB
pronounced VBN
in IN
the DT
South NNP
. .

To TO
the DT
extent NN
that IN
Democratic JJ
legislators NNS
from IN
the DT
South NNP
have VBP
held VBN
a DT
disproportionate JJ
share NN
of IN
power NN
in IN
Congress NNP
since IN
1932 CD
and CC
have VBP
been VBN
able JJ
to TO
translate VB
such JJ
clout NN
into IN
relatively RB
more RBR
local JJ
benefits NNS
for IN
their PRP$
respective JJ
constituencies NNS
, ,
voters NNS
in IN
the DT
South NNP
have VBP
had VBN
an DT
especially RB
strong JJ
incentive NN
to TO
keep VB
such JJ
Democrats NNPS
in IN
office NN
. .

Finally RB
, ,
the DT
theory NN
suggests VBZ
why WRB
Republicans NNPS
generally RB
have VBP
fared VBN
better JJR
in IN
Senate NNP
races NNS
than IN
in IN
campaigns NNS
for IN
the DT
House NNP
. .

Since IN
local JJ
benefit-seeking NN
matters NNS
more JJR
and CC
national JJ
policy NN
making VBG
matters NNS
less JJR
in IN
the DT
lower JJR
chamber NN
of IN
Congress NNP
, ,
this DT
is VBZ
precisely RB
the DT
pattern NN
one PRP
would MD
expect VB
if IN
Republicans NNPS
are VBP
less RBR
willing JJ
to TO
engage VB
in IN
local JJ
benefit-seeking NN
than IN
their PRP$
Democratic JJ
counterparts NNS
. .
Is VBZ
there EX
any DT
empirical JJ
support NN
for IN
this DT
theory NN
? .

Three CD
pieces NNS
of IN
evidence NN
corroborate VB
the DT
key JJ
assumption NN
that IN
Democratic JJ
legislators NNS
are VBP
more RBR
willing JJ
to TO
engage VB
in IN
local JJ
benefit-seeking NN
than IN
their PRP$
Republican NNP
colleagues NNS
. .

First RB
, ,
economists NNS
James NNP
Bennett NNP
and CC
Thomas NNP
DiLorenzo NNP
find VB
that IN
GOP NNP
senators NNS
turn VBP
back RB
roughly RB
10 CD
% NN
more JJR
of IN
their PRP$
allocated VBN
personal JJ
staff NN
budgets NNS
than IN
Democrats NNPS
do VBP
. .

To TO
the DT
extent NN
that IN
the DT
primary JJ
duty NN
of IN
personal JJ
staff NN
involves VBZ
local JJ
benefit-seeking NN
, ,
this DT
indicates VBZ
that IN
political JJ
philosophy NN
leads VBZ
congressional JJ
Republicans NNPS
to TO
pay VB
less JJR
attention NN
to TO
narrow VB
constituent NN
concerns NNS
. .

Second JJ
, ,
if IN
the DT
key JJ
assumption NN
is VBZ
valid JJ
, ,
Democrats NNPS
should MD
have VB
lower JJR
attendance NN
rates NNS
on IN
roll-call JJ
votes NNS
than IN
Republicans NNPS
do VBP
to TO
the DT
extent NN
that IN
such JJ
votes NNS
reflect VBP
national JJ
policy NN
making VBG
and CC
that IN
participating VBG
in IN
such JJ
votes NNS
takes VBZ
away RB
from IN
the DT
time NN
a DT
legislator NN
could MD
otherwise RB
devote VB
to TO
local JJ
benefit-seeking NN
. .

This DT
is VBZ
indeed RB
what WP
the DT
data NNS
indicate VBP
, ,
particularly RB
in IN
the DT
case NN
of IN
the DT
House NNP
. .

The DT
Democratic NNP
House NNP
attendance NN
rate NN
has VBZ
not RB
exceeded VBN
the DT
Republican NNP
House NNP
attendance NN
rate NN
since IN
1959 CD
. .

Finally RB
, ,
as IN
shown VBN
in IN
the DT
table NN
, ,
Democrats NNPS
allocate VBP
a DT
higher JJR
proportion NN
of IN
their PRP$
personal JJ
staffs NNS
to TO
district NN
offices NNS
-- :
where WRB
local JJ
benefit-seeking NN
duties NNS
matter VBP
more JJR
and CC
national JJ
policy NN
making VBG
activities NNS
matter VBP
less RBR
relative JJ
to TO
Washington NNP
offices NNS
. .

An DT
examination NN
of IN
changes NNS
in IN
personal JJ
staffing NN
decisions NNS
in IN
the DT
Senate NNP
between IN
1986 CD
and CC
1987 CD
-LRB- (
when WRB
control NN
of IN
that DT
body NN
changed VBD
party NN
hands NNS
-RRB- )
, ,
moreover RB
, ,
reveals VBZ
that IN
the DT
personal JJ
staffing NN
differences NNS
noted VBD
in IN
the DT
table NN
can MD
not RB
be VB
attributed VBN
to TO
the DT
disproportionate JJ
control NN
Democrats NNPS
exercise NN
, ,
due JJ
to TO
their PRP$
majority-party JJ
status NN
, ,
over IN
other JJ
resources NNS
such JJ
as IN
committee NN
staff NN
. .

An DT
additional JJ
piece NN
of IN
evidence NN
from IN
the DT
Senate NNP
: :
Holding NNP
other JJ
factors NNS
constant JJ
, ,
such JJ
as IN
incumbency NN
advantages NNS
and CC
regional JJ
factors NNS
, ,
the DT
difference NN
between IN
popular JJ
votes NNS
for IN
Republican NNP
presidential JJ
and CC
senatorial JJ
candidates NNS
in IN
states NNS
conducting VBG
a DT
Senate NNP
election NN
turns VBZ
out IN
to TO
be VB
a DT
positive JJ
function NN
of IN
how WRB
onerous JJ
the DT
federal JJ
government NN
's POS
tax NN
burden NN
is VBZ
per IN
state NN
-LRB- (
a DT
progressive JJ
tax NN
rate NN
hits VBZ
higher-income JJ
states NNS
harder JJR
-RRB- )
. .

Put VB
more RBR
simply RB
, ,
GOP NNP
candidates NNS
for IN
president NN
are VBP
looked VBN
on IN
more RBR
kindly RB
by IN
voters NNS
than IN
Republican NNP
candidates NNS
for IN
the DT
Senate NNP
when WRB
the DT
prisoner NN
's POS
dilemma NN
is VBZ
more RBR
severe JJ
. .

Moreover RB
, ,
ticket NN
splitting NN
appears VBZ
to TO
take VB
the DT
same JJ
peculiar JJ
pattern NN
at IN
the DT
state NN
government NN
level NN
as IN
it PRP
does VBZ
at IN
the DT
federal JJ
level NN
. .
State NN
government NN
is VBZ
more RBR
typically RB
split VBP
along IN
Republican-governor\/Democratic-legislature NNP
lines NNS
than IN
the DT
reverse NN
. .

A DT
cross-state JJ
econometric JJ
investigation NN
, ,
furthermore RB
, ,
reveals VBZ
that IN
, ,
holding VBG
other JJ
factors NNS
constant JJ
, ,
the DT
difference NN
between IN
a DT
state NN
's POS
major-party JJ
vote NN
going VBG
to TO
the DT
Republican NNP
gubernatorial JJ
candidate NN
and CC
the DT
Republican NNP
share NN
of IN
the DT
lower JJR
state NN
house NN
is VBZ
a DT
positive JJ
function NN
of IN
the DT
state NN
tax NN
rate NN
. .

In IN
sum NN
, ,
at IN
both DT
the DT
federal JJ
and CC
state NN
government NN
levels NNS
at IN
least JJS
part NN
of IN
the DT
seemingly RB
irrational JJ
behavior NN
voters NNS
display VBP
in IN
the DT
voting NN
booth NN
may MD
have VB
an DT
exceedingly RB
rational JJ
explanation NN
. .

Mr. NNP
Zupan NNP
teaches VBZ
at IN
the DT
University NNP
of IN
Southern NNP
California NNP
's POS
business NN
school NN
. .

A DT
House-Senate NNP
conference NN
approved VBD
a DT
nearly RB
$ $
17 CD
billion CD
State NNP
, ,
Justice NNP
and CC
Commerce NNP
Department NNP
bill NN
that WDT
makes VBZ
federal JJ
reparations NNS
for IN
Japanese-Americans NNPS
held VBN
in IN
World NNP
War NNP
II NNP
internment NN
camps NNS
a DT
legal JJ
entitlement NN
after IN
next JJ
Oct. NNP
1 CD
. .

The DT
measure NN
provides VBZ
no DT
money NN
for IN
the DT
promised VBN
payments NNS
until IN
then RB
, ,
but CC
beginning VBG
in IN
fiscal JJ
1991 CD
, ,
the DT
government NN
would MD
be VB
committed VBN
to TO
meeting VBG
annual JJ
payments NNS
of IN
as RB
much JJ
as IN
$ $
500 CD
million CD
until IN
the DT
total JJ
liability NN
of IN
approximately RB
$ $
1.25 CD
billion CD
is VBZ
paid VBN
. .

The DT
action NN
abandons VBZ
earlier JJR
efforts NNS
to TO
find VB
offsetting VBG
cuts NNS
to TO
fund VB
the DT
payments NNS
, ,
but CC
is VBZ
widely RB
seen VBN
as IN
a DT
more RBR
realistic JJ
means NNS
of IN
expediting VBG
reparations NNS
first RB
authorized VBN
in IN
1988 CD
. .

The DT
action NN
came VBD
as IN
Congress NNP
sent VBD
to TO
President NNP
Bush NNP
a DT
fiscal JJ
1990 CD
bill NN
providing VBG
an DT
estimated VBN
$ $
156.7 CD
billion CD
for IN
the DT
Departments NNPS
of IN
Labor NNP
, ,
Education NNP
, ,
Health NNP
and CC
Human NNP
Services NNP
. .

Final JJ
approval NN
was VBD
on IN
a DT
67-31 JJ
roll NN
call NN
in IN
the DT
Senate NNP
, ,
which WDT
sets VBZ
the DT
stage NN
for IN
a DT
veto NN
confrontation NN
with IN
Mr. NNP
Bush NNP
over IN
the DT
issue NN
of IN
publicly RB
financed VBN
abortions NNS
for IN
poor JJ
women NNS
. .
Reversing VBG
an DT
eight-year JJ
federal JJ
policy NN
, ,
the DT
measure NN
supports VBZ
Medicaid NNP
abortions NNS
in IN
cases NNS
of IN
rape NN
and CC
incest NN
, ,
but CC
Mr. NNP
Bush NNP
has VBZ
so RB
far RB
refused VBN
to TO
support VB
any DT
specific JJ
exemption NN
beyond IN
instances NNS
in IN
which WDT
the DT
mother NN
's POS
life NN
is VBZ
in IN
danger NN
. .

Mr. NNP
Bush NNP
's POS
veto NN
power NN
puts VBZ
him PRP
a DT
commanding VBG
position NN
in IN
the DT
narrowly RB
divided VBN
House NNP
, ,
but CC
a DT
vote NN
to TO
override VB
his PRP$
position NN
could MD
well RB
pick VB
up IN
new JJ
support NN
because IN
of IN
the DT
wealth NN
of IN
health NN
and CC
education NN
programs NNS
financed VBN
in IN
the DT
underlying VBG
bill NN
. .

The DT
measure NN
before IN
the DT
conference NN
yesterday NN
funds VBZ
the DT
Departments NNPS
of IN
State NNP
, ,
Justice NNP
and CC
Commerce NNP
through IN
fiscal JJ
1990 CD
. .

An DT
estimated VBN
$ $
1.32 CD
billion CD
is VBZ
provided VBN
for IN
next JJ
year NN
's POS
census NN
, ,
and CC
negotiators NNS
stripped VBD
a DT
Senate-passed JJ
rider NN
seeking VBG
to TO
block VB
the DT
counting NN
of IN
illegal JJ
aliens NNS
. .

Elsewhere RB
in IN
the DT
Commerce NNP
Department NNP
, ,
nearly RB
$ $
191.2 CD
million CD
is VBZ
preserved VBN
for IN
assistance NN
programs NNS
under IN
the DT
Economic NNP
Development NNP
Administration NNP
. .

And CC
in IN
a DT
footnote NN
to TO
the DT
fall NN
of IN
House NNP
Speaker NNP
James NNP
Wright NNP
this DT
year NN
, ,
the DT
conference NN
voted VBD
to TO
rescind VB
$ $
11.8 CD
million CD
in IN
unspent JJ
EDA NNP
funds NNS
for IN
a DT
Fort NNP
Worth NNP
, ,
Texas NNP
, ,
stockyards NNS
project VBP
that WDT
figured VBD
in IN
ethics NNS
charges NNS
against IN
the DT
former JJ
Democratic JJ
leader NN
. .

Fiscal JJ
pressures NNS
also RB
forced VBN
the DT
adoption NN
of IN
new JJ
fees NNS
charged VBN
by IN
federal JJ
agencies NNS
, ,
and CC
an DT
18 CD
% NN
increase NN
in IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
's POS
budget NN
would MD
be VB
financed VBN
entirely RB
by IN
an DT
added VBD
$ $
26 CD
million CD
in IN
filing NN
fees NNS
. .

In IN
an DT
unprecedented JJ
step NN
, ,
the DT
measure NN
anticipates VBZ
another DT
$ $
30 CD
million CD
in IN
receipts NNS
by IN
having VBG
the DT
Federal NNP
Bureau NNP
of IN
Investigation NNP
charge NN
for IN
fingerprint NN
services NNS
in IN
civil JJ
cases NNS
-- :
a DT
change NN
that WDT
is VBZ
almost RB
certain JJ
to TO
increase VB
Pentagon NNP
costs NNS
in IN
processing NN
personnel NNS
and CC
security NN
clearances NNS
. .
The DT
bill NN
does VBZ
n't RB
include VB
an DT
estimated VBN
$ $
1.9 CD
billion CD
in IN
supplemental JJ
anti-drug JJ
funds NNS
for IN
Justice NNP
Department NNP
and CC
law-enforcement NN
accounts NNS
that WDT
are VBP
still RB
in IN
conference NN
with IN
the DT
House NNP
. .

But CC
yesterday NN
's POS
agreement NN
would MD
make VB
it PRP
easier JJR
for IN
state NN
governments NNS
to TO
handle VB
the DT
promised VBN
aid NN
by IN
deferring VBG
for IN
one CD
year NN
a DT
scheduled VBN
50 CD
% NN
increase NN
in IN
the DT
required VBN
state NN
matching VBG
funds NNS
for IN
law-enforcement NN
grants NNS
. .

Similarly RB
, ,
the DT
measure NN
adjusts VBZ
the DT
current JJ
funding NN
formula NN
to TO
promise VB
smaller JJR
states NNS
such JJ
as IN
New NNP
Hampshire NNP
and CC
Delaware NNP
a DT
minimum JJ
allocation NN
of IN
$ $
1.6 CD
million CD
each DT
in NN
drug NN
grants NNS
, ,
or CC
three CD
times VBZ
the DT
current JJ
minimum NN
. .

The DT
odd JJ
mix NN
of IN
departments NNS
in IN
the DT
bill NN
makes VBZ
it PRP
one CD
of IN
the DT
more JJR
eclectic NN
of IN
the DT
annual JJ
appropriations NNS
measures NNS
, ,
and CC
the DT
assorted JJ
provisions NNS
attached VBN
by IN
lawmakers NNS
run VBP
from IN
$ $
1.5 CD
million CD
for IN
a DT
fish NN
farm NN
in IN
Arkansas NNP
to TO
a DT
music NN
festival NN
in IN
Moscow NNP
under IN
the DT
United NNP
States NNP
Information NNP
Agency NNP
. .

Lawmakers NNS
scrapped VBD
all DT
of IN
a DT
$ $
7.4 CD
million CD
State NNP
Department NNP
request NN
for IN
the DT
1992 CD
Expo NNP
in IN
Seville NNP
, ,
Spain NNP
, ,
but CC
agreed VBD
elsewhere RB
to TO
$ $
15,000 CD
for IN
an DT
oil NN
portrait NN
of IN
former JJ
Chief NNP
Justice NNP
Warren NNP
Burger NNP
. .

Senate NNP
Commerce NNP
Committee NNP
Chairman NNP
Ernest NNP
Hollings NNP
-LRB- (
D. NNP
, ,
S.C. NNP
-RRB- )
, ,
who WP
also RB
chairs VBZ
the DT
Senate NNP
appropriations NNS
subcommittee NN
for IN
the DT
department NN
, ,
attached VBD
$ $
10 CD
million CD
for IN
an DT
advanced VBN
technology NN
initiative NN
, ,
including VBG
work NN
on IN
high-definition JJ
television NN
. .

His PRP$
Republican NNP
counterpart NN
, ,
Sen. NNP
Warren NNP
Rudman NNP
-LRB- (
R. NNP
, ,
N.H. NNP
-RRB- )
, ,
has VBZ
used VBN
his PRP$
position NN
to TO
wage VB
a DT
legislative JJ
war NN
with IN
the DT
conservative JJ
board NN
of IN
the DT
Legal NNP
Services NNP
Corp NNP
. .

An DT
estimated VBN
$ $
321 CD
million CD
is VBZ
provided VBN
to TO
maintain VB
the DT
program NN
, ,
but CC
Mr. NNP
Rudman NNP
also RB
succeeded VBD
in IN
attaching VBG
language NN
seeking VBG
to TO
curb VB
the DT
authority NN
of IN
the DT
current JJ
board NN
until IN
new JJ
members NNS
are VBP
confirmed VBN
. .

The DT
effective JJ
date NN
of IN
any DT
new JJ
regulations NNS
by IN
the DT
current JJ
board NN
would MD
be VB
delayed VBN
until IN
Oct. NNP
1 CD
next JJ
year NN
, ,
and CC
the DT
bill NN
seeks VBZ
to TO
reverse VB
efforts NNS
by IN
the DT
corporation NN
to TO
cut VB
off IN
funds NNS
to TO
service VB
organizations NNS
such JJ
as IN
the DT
Food NNP
Research NNP
and CC
Action NNP
Center NNP
. .
The DT
bill NN
also RB
provides VBZ
$ $
620.5 CD
million CD
to TO
meet VB
U.S. NNP
contributions NNS
to TO
international JJ
organizations NNS
and CC
$ $
80 CD
million CD
for IN
peace-keeping NN
activities NNS
. .

Both DT
accounts NNS
reflect VBP
significant JJ
increases NNS
from IN
fiscal JJ
1989 CD
, ,
although IN
the DT
amount NN
for IN
peace-keeping NN
shows VBZ
a DT
27 CD
% NN
cut NN
from IN
the DT
administration NN
's POS
request NN
. .

Mercury NNP
Savings NNP
& CC
Loan NNP
Association NNP
said VBD
it PRP
retained VBD
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
as IN
its PRP$
lead NN
investment NN
banker NN
to TO
advise VB
it PRP
regarding VBG
a DT
possible JJ
sale NN
or CC
other JJ
combination NN
of IN
the DT
Huntington NNP
Beach NNP
, ,
Calif. NNP
, ,
thrift NN
. .

Mercury NNP
, ,
which WDT
has VBZ
assets NNS
of IN
more JJR
than IN
$ $
2 CD
billion CD
and CC
24 CD
branches NNS
in IN
California NNP
, ,
said VBD
the DT
action NN
to TO
improve VB
its PRP$
regulatory JJ
capital NN
position NN
is VBZ
related VBN
directly RB
to TO
new JJ
capital NN
requirements NNS
mandated VBN
by IN
recently RB
adopted VBN
federal JJ
legislation NN
. .

Mercury NNP
also RB
said VBD
it PRP
extended VBD
its PRP$
two-year JJ
advisory JJ
relationship NN
with IN
Montgomery NNP
Securities NNP
of IN
San NNP
Francisco NNP
. .

Mercury NNP
's POS
stock NN
closed VBD
yesterday NN
at IN
$ $
4.875 CD
, ,
unchanged JJ
in IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
. .

Watching VBG
Congress NNP
sweat NN
and CC
grimace NN
through IN
its PRP$
annual JJ
budget NN
labors NNS
, ,
fighting VBG
the DT
urge NN
to TO
spend VB
more JJR
, ,
we PRP
're VBP
reminded VBD
of IN
those DT
late-night JJ
movies NNS
in IN
which WDT
the DT
anguished JJ
serial JJ
killer NN
turns VBZ
himself PRP
in IN
to TO
police VB
and CC
says VBZ
, ,
`` ``
Stop VB
me PRP
before IN
I PRP
kill VBP
again RB
. .
'' ''

The DT
Members NNS
know VBP
they PRP
're VBP
doing VBG
wrong JJ
, ,
but CC
they PRP
need VBP
help NN
to TO
restrain VB
their PRP$
darker JJR
compulsions NNS
. .

Arkansas NNP
Democrat NNP
David NNP
Pryor NNP
spilled VBD
his PRP$
guts NNS
on IN
the DT
Senate NNP
floor NN
the DT
other JJ
day NN
after IN
he PRP
'd MD
joined VBD
the DT
Finance NNP
Committee NNP
's POS
early-morning JJ
pork-barrel JJ
revels NNS
: :
`` ``
I PRP
must MD
tell VB
you PRP
... :

I PRP
come VBP
to TO
the DT
floor NN
tonight RB
as IN
one CD
who WP
ended VBD
up IN
with IN
a DT
busload NN
of IN
extraneous JJ
matter NN
. .

It PRP
was VBD
nothing NN
more JJR
or CC
nothing NN
less JJR
than IN
a DT
feeding VBG
frenzy NN
. .
'' ''

He PRP
was VBD
turning VBG
himself PRP
in RB
. .

`` ``
Frankly RB
, ,
as IN
I PRP
was VBD
walking VBG
back RB
to TO
get VB
in IN
my PRP$
car NN
, ,
I PRP
heard VBD
many JJ
, ,
many JJ
people NNS
... :
opening NN
champagne NN
bottles NNS
and CC
celebrating VBG
individual JJ
victories NNS
that IN
some DT
of IN
us PRP
had VBD
accomplished VBN
in IN
getting VBG
our PRP$
little JJ
deal NN
in IN
the DT
tax NN
bill NN
and CC
winking VBG
at IN
this DT
person NN
for IN
slipping VBG
this DT
in NN
, ,
'' ''
he PRP
said VBD
. .

`` ``
As IN
I PRP
was VBD
driving VBG
home NN
, ,
I PRP
did VBD
not RB
feel VB
very RB
good JJ
about IN
myself PRP
. .
'' ''

We PRP
can MD
applaud VB
Mr. NNP
Pryor NNP
's POS
moment NN
of IN
epiphany NN
, ,
even RB
as IN
we PRP
understand VBP
that IN
he PRP
and CC
his PRP$
confreres FW
need NN
restraint NN
lest IN
they PRP
kill VBP
again RB
. .

A DT
good JJ
place NN
to TO
start VB
the DT
rehabilitation NN
is VBZ
a DT
`` ``
legislative JJ
line-item JJ
veto NN
'' ''
bill NN
now RB
being VBG
offered VBN
by IN
Indiana NNP
Senator NNP
Dan NNP
Coats NNP
. .

The DT
Coats NNP
bill NN
, ,
which WDT
already RB
has VBZ
32 CD
Senate NNP
co-sponsors NNS
, ,
is VBZ
n't RB
a DT
pure JJ
line-item JJ
veto NN
because IN
it PRP
would MD
apply VB
only RB
to TO
spending NN
bills NNS
. .

Instead RB
it PRP
's VBZ
a DT
form NN
of IN
`` ``
enhanced VBN
rescission NN
, ,
'' ''
giving VBG
a DT
President NNP
a DT
chance NN
to TO
rescind VB
, ,
or CC
strike NN
, ,
specific JJ
spending NN
items NNS
that WDT
just RB
go VB
too RB
far RB
. .

Under IN
the DT
proposal NN
, ,
a DT
President NNP
would MD
have VB
a DT
chance NN
twice RB
each DT
year NN
to TO
return VB
a DT
package NN
of IN
`` ``
rescissions NNS
'' ''
to TO
the DT
Hill NNP
-- :
once RB
when WRB
he PRP
proposes VBZ
his PRP$
budget NN
and CC
again RB
after IN
Congress NNP
disposes VBZ
. .
Congress NNP
would MD
have VB
20 CD
days NNS
to TO
reject VB
the DT
package NN
with IN
a DT
50 CD
% NN
majority NN
, ,
but CC
then RB
a DT
President NNP
could MD
veto VB
that DT
rejection NN
. .

Congress NNP
would MD
then RB
need VB
the DT
usual JJ
two-thirds NNS
majority NN
to TO
override VB
any DT
veto NN
. .

The DT
proposal NN
would MD
restore VB
some DT
discipline NN
erased VBN
from IN
the DT
budget NN
process NN
by IN
the DT
1974 CD
Budget NNP
`` ``
Reform NNP
'' ''
Act NNP
. .
Before IN
1974 CD
, ,
a DT
President NNP
could MD
`` ``
impound VB
, ,
'' ''
or CC
refuse VB
to TO
spend VB
, ,
funds NNS
appropriated VBN
by IN
Congress NNP
. .

Presidents NNP
Kennedy NNP
and CC
Johnson NNP
were VBD
both DT
big JJ
users NNS
of IN
the DT
impoundment NN
power NN
, ,
but CC
Congress NNP
saw VBD
its PRP$
chance NN
against IN
a DT
weakened VBN
President NNP
Nixon NNP
and CC
stripped VBN
it PRP
away RB
. .

Today NN
a DT
President NNP
can MD
still RB
send VB
up IN
spending NN
rescissions NNS
, ,
but CC
they PRP
're VBP
meaningless JJ
unless IN
Congress NNP
has VBZ
a DT
guilty JJ
conscience NN
and CC
changes NNS
its PRP$
mind NN
. .

This DT
is VBZ
like IN
asking VBG
foxes NNS
to TO
feel VB
remorse NN
about IN
chickens NNS
, ,
and CC
naturally RB
rescissions NNS
are VBP
almost RB
never RB
approved VBD
. .

In IN
1987 CD
, ,
President NNP
Reagan NNP
sent VBD
73 CD
rescissions NNS
back RB
to TO
the DT
Hill NNP
, ,
but CC
only RB
3 CD
% NN
of IN
the DT
spending NN
total NN
was VBD
approved VBN
by IN
Congress NNP
. .

Senator NNP
Coats NNP
's POS
proposal NN
would MD
let VB
the DT
proposed VBN
spending NN
cuts NNS
take VBP
place NN
automatically RB
unless IN
Congress NNP
acts NNS
. .

The DT
Members NNS
could MD
still RB
try VB
to TO
serve VB
their PRP$
constituents NNS
with IN
special-interest JJ
goodies NNS
, ,
but CC
the DT
police NN
-LRB- (
in IN
the DT
form NN
of IN
a DT
President NNP
-RRB- )
would MD
be VB
there RB
with IN
a DT
straitjacket NN
if IN
they PRP
really RB
get VBP
crazy JJ
, ,
as IN
they PRP
do VBP
now RB
. .

Mr. NNP
Coats NNP
plans VBZ
to TO
offer VB
his PRP$
proposal NN
as IN
an DT
amendment NN
to TO
a DT
bill NN
to TO
raise VB
the DT
federal JJ
debt NN
limit NN
before IN
the DT
end NN
of IN
the DT
month NN
. .

President NNP
Bush NNP
has VBZ
endorsed VBN
the DT
idea NN
, ,
and CC
at IN
least JJS
50 CD
sitting VBG
Senators NNS
have VBP
voted VBN
to TO
support VB
enhanced VBN
rescission NN
authority NN
in IN
the DT
past NN
. .
We PRP
're VBP
told VBD
Senator NNP
Pryor NNP
is VBZ
n't RB
yet RB
a DT
co-sponsor NN
, ,
but CC
if IN
he PRP
and CC
his PRP$
colleagues NNS
are VBP
serious JJ
about IN
kicking VBG
their PRP$
compulsions NNS
, ,
they PRP
'll MD
sign VB
up RB
. .

Business NN
and CC
civic JJ
operations NNS
lurched VBD
back RB
toward IN
normalcy NN
here RB
as IN
congressional JJ
officials NNS
estimated VBN
that IN
the DT
price NN
tag NN
for IN
emergency NN
assistance NN
to TO
earthquake-ravaged JJ
California NNP
would MD
total VB
at IN
least JJS
$ $
2.5 CD
billion CD
. .

`` ``
That DT
is VBZ
a DT
minimum JJ
figure NN
, ,
and CC
I PRP
underscore VBP
minimum JJ
, ,
'' ''
said VBD
House NNP
Speaker NNP
Thomas NNP
Foley NNP
-LRB- (
D. NNP
, ,
Wash NNP
. .
-RRB- )
after IN
conferring VBG
with IN
California NNP
lawmakers NNS
. .

`` ``
It PRP
's VBZ
impossible JJ
to TO
put VB
an DT
exact JJ
figure NN
on IN
it PRP
at IN
this DT
time NN
. .
'' ''

The DT
Office NNP
of IN
Management NNP
and CC
Budget NNP
has VBZ
begun VBN
looking VBG
into IN
legislation NN
to TO
provide VB
more JJR
funds NNS
for IN
earthquake NN
repairs NNS
. .

And CC
California NNP
's POS
45-member JJ
delegation NN
in IN
the DT
House NNP
is VBZ
expected VBN
to TO
propose VB
that IN
emergency NN
funds NNS
be VBP
added VBN
to TO
a DT
stop-gap JJ
spending NN
bill NN
that IN
the DT
House NNP
Appropriations NNP
Committee NNP
is VBZ
to TO
consider VB
Monday NNP
. .

For IN
the DT
most RBS
part NN
, ,
major JJ
corporations NNS
' POS
headquarters NN
and CC
plants NNS
were VBD
unaffected JJ
or CC
only RB
slightly RB
damaged VBN
by IN
Tuesday NNP
's POS
earthquake NN
, ,
which WDT
registered VBD
6.9 CD
on IN
the DT
Richter NNP
scale NN
. .

One CD
of IN
the DT
last JJ
big JJ
employers NNS
in IN
the DT
Silicon NNP
Valley NNP
to TO
report VB
in IN
, ,
Seagate NNP
Technology NNP
, ,
said VBD
it PRP
expects VBZ
to TO
be VB
back RB
at IN
full JJ
strength NN
Monday NNP
. .

The DT
day NN
before IN
the DT
quake NN
, ,
Seagate NNP
completed VBD
three CD
days NNS
of IN
emergency NN
training NN
and CC
drills NNS
. .

Echoing VBG
the DT
response NN
of IN
almost RB
all DT
big JJ
corporations NNS
in IN
the DT
Bay NNP
Area NNP
, ,
Don NNP
Waite NNP
, ,
Seagate NNP
's POS
chief JJ
financial JJ
officer NN
, ,
said VBD
, ,
`` ``
I PRP
would MD
n't RB
expect VB
this DT
to TO
have VB
any DT
significant JJ
financial JJ
impact NN
. .
'' ''

The DT
city NN
's POS
recovery NN
from IN
the DT
earthquake NN
was VBD
uneven JJ
. .

Banks NNP
indicated VBD
they PRP
were VBD
operating VBG
at IN
greater JJR
than IN
90 CD
% NN
of IN
their PRP$
usual JJ
capacity NN
, ,
but CC
a DT
Nob NNP
Hill NNP
hotel NN
said VBD
tourists NNS
had VBD
fled VBN
, ,
leaving VBG
the DT
previously RB
full JJ
hotel NN
with IN
an DT
80 CD
% NN
vacancy NN
rate NN
. .

City NN
crews NNS
tallied VBD
the DT
wreckage NN
to TO
buildings NNS
, ,
but CC
lacked VBD
a DT
clear JJ
sense NN
of IN
how WRB
gravely RB
transportation NN
arteries NNS
were VBD
disabled JJ
. .

Among IN
the DT
city NN
's POS
banks NNS
, ,
Bank NNP
of IN
America NNP
said VBD
all DT
but CC
eight CD
of IN
its PRP$
850 CD
branches NNS
were VBD
open JJ
. .

The DT
closed VBD
branches NNS
, ,
in IN
San NNP
Francisco NNP
, ,
Hayward NNP
, ,
Santa NNP
Clara NNP
and CC
Santa NNP
Cruz NNP
, ,
sustained VBN
structural JJ
damage NN
. .

Power NN
failures NNS
kept VBD
just RB
seven CD
of IN
its PRP$
1,500 CD
automated-teller JJ
machines NNS
off-line JJ
. .

Securities-trading JJ
operations NNS
were VBD
moved VBN
to TO
Bank NNP
of IN
America NNP
's POS
Concord NNP
office NN
, ,
and CC
foreign-exchange JJ
trading NN
operations NNS
were VBD
shifted VBN
to TO
Los NNP
Angeles NNP
, ,
the DT
bank NN
said VBD
. .

Wells NNP
Fargo NNP
& CC
Co. NNP
said VBD
its PRP$
Emergency NNP
Operations NNP
Committee NNP
-- :
which WDT
met VBD
all DT
night NN
Tuesday NNP
-- :
moved VBD
its PRP$
global-funds JJ
transfer NN
system NN
to TO
El NNP
Monte NNP
, ,
Calif. NNP
, ,
500 CD
miles NNS
to TO
the DT
south RB
. .

Only RB
five CD
of IN
496 CD
branches NNS
statewide JJ
remain VB
closed VBD
, ,
while IN
23 CD
of IN
600 CD
automated-teller JJ
machines NNS
remained VBD
out IN
of IN
order NN
. .

The DT
most RBS
extensive JJ
damage NN
was VBD
in IN
small JJ
towns NNS
near IN
the DT
quake NN
's POS
epicenter NN
, ,
80 CD
miles NNS
south RB
of IN
San NNP
Francisco NNP
. .

Santa NNP
Cruz NNP
County NNP
estimates NNS
total JJ
damage NN
at IN
nearly RB
$ $
600 CD
million CD
. .

Santa NNP
Clara NNP
County NNP
has VBZ
a DT
running VBG
total JJ
so RB
far RB
of IN
$ $
504 CD
million CD
, ,
excluding VBG
the DT
hard-hit JJ
city NN
of IN
Los NNP
Gatos NNP
. .

Oakland NN
officials NNS
were VBD
still RB
uncertain JJ
about IN
the DT
magnitude NN
of IN
structural JJ
damage NN
late JJ
yesterday NN
; :
a DT
section NN
of IN
I-880 NN
, ,
a DT
twotiered JJ
highway NN
, ,
collapsed VBD
in IN
Oakland NNP
, ,
causing VBG
a DT
majority NN
of IN
the DT
deaths NNS
resulting VBG
from IN
the DT
quake NN
. .

San NNP
Francisco NNP
Mayor NNP
Art NNP
Agnos NNP
estimated VBD
that IN
damages NNS
to TO
the DT
city NN
total JJ
$ $
2 CD
billion CD
. .

That DT
includes VBZ
dwellings NNS
in IN
the DT
ravaged VBN
Marina NNP
district NN
that WDT
must MD
be VB
demolished VBN
, ,
peeled VBN
business NN
facades NNS
south RB
of IN
Market NNP
Street NNP
, ,
and CC
houses NNS
in IN
the DT
city NN
's POS
outer JJ
Richmond NNP
district NN
that WDT
were VBD
heaved VBN
off IN
their PRP$
foundations NNS
. .

Many JJ
streets NNS
and CC
sidewalks NNS
buckled VBD
, ,
and CC
subterranean JJ
water NN
mains NNS
and CC
service NN
connections NNS
ruptured VBN
. .

The DT
federal JJ
funds NNS
would MD
go VB
to TO
a DT
range NN
of IN
programs NNS
, ,
including VBG
the DT
Federal NNP
Emergency NNP
Management NNP
Agency NNP
, ,
highway NN
construction NN
accounts NNS
and CC
the DT
Small NNP
Business NNP
Administration NNP
, ,
according VBG
to TO
Rep. NNP
Vic NNP
Fazio NNP
-LRB- (
D. NNP
, ,
Calif NNP
. .
-RRB- )
. .

FEMA NNP
, ,
which WDT
coordinates VBZ
federal JJ
disaster NN
relief NN
, ,
is VBZ
already RB
strapped VBN
by IN
the DT
costs NNS
of IN
cleaning NN
up IN
after IN
Hurricane NNP
Hugo NNP
, ,
which WDT
hit VBD
the DT
Carolinas NNPS
last JJ
month NN
. .

It PRP
is VBZ
likely JJ
to TO
get VB
as RB
much JJ
as IN
$ $
800 CD
million CD
initially RB
in IN
additional JJ
funds NNS
, ,
and CC
eventually RB
could MD
get VB
more JJR
than IN
$ $
1 CD
billion CD
, ,
according VBG
to TO
Mr. NNP
Fazio NNP
, ,
a DT
member NN
of IN
the DT
House NNP
Appropriations NNP
Committee NNP
. .

White NNP
House NNP
spokesman NN
Marlin NNP
Fitzwater NNP
said VBD
there EX
is VBZ
enough JJ
money NN
on IN
hand NN
to TO
deal VB
with IN
immediate JJ
requirements NNS
. .

The DT
Bush NNP
administration NN
has VBZ
at IN
its PRP$
disposal NN
$ $
273 CD
million CD
in IN
funds NNS
remaining VBG
from IN
the DT
$ $
1.1 CD
billion CD
Congress NNP
released VBD
for IN
the DT
cleanup NN
after IN
Hurricane NNP
Hugo NNP
. .

`` ``
We PRP
feel VBP
we PRP
have VBP
the DT
money NN
necessary JJ
to TO
handle VB
the DT
immediate JJ
, ,
short-term JJ
requirements NNS
, ,
'' ''
Mr. NNP
Fitzwater NNP
said VBD
. .

He PRP
added VBD
that IN
the DT
Office NNP
of IN
Management NNP
and CC
Budget NNP
, ,
the DT
Transportation NNP
Department NNP
and CC
other JJ
agencies NNS
are VBP
`` ``
developing VBG
longer-term JJ
legislation NN
'' ''
that WDT
should MD
be VB
ready JJ
soon RB
. .

Much RB
of IN
the DT
cost NN
of IN
cleaning NN
up IN
after IN
the DT
earthquake NN
will MD
involve VB
repairing VBG
highways NNS
and CC
bridges NNS
. .

California JJ
lawmakers NNS
are VBP
seeking VBG
changes NNS
in IN
rules NNS
governing VBG
the DT
federal JJ
highway NN
relief NN
program NN
so RB
more JJR
money NN
can MD
be VB
made VBN
available JJ
for IN
the DT
state NN
. .

Some DT
things NNS
ca MD
n't RB
be VB
repaired VBN
. .

The DT
Asian NNP
Art NNP
Museum NNP
in IN
Golden NNP
Gate NNP
Park NNP
reports NNS
$ $
10 CD
million CD
to TO
$ $
15 CD
million CD
in IN
damage NN
, ,
including VBG
shattered VBN
porcelains NNS
and CC
stone NN
figures NNS
. .

Its PRP$
neighbor NN
, ,
the DT
De NNP
Young NNP
Museum NNP
, ,
totaled VBD
$ $
3 CD
million CD
to TO
$ $
5 NN
million CD
in IN
structural JJ
damage NN
and CC
shattered VBN
sculpture NN
. .

The DT
city NN
's POS
main JJ
library NN
is VBZ
closed VBN
because IN
of IN
fissures NNS
that WDT
opened VBD
in IN
its PRP$
walls NNS
, ,
and CC
marble NN
facings NNS
and CC
ornamental JJ
plaster NN
at IN
the DT
Beaux NNP
Arts NNP
City NNP
Hall NNP
broke VBD
off IN
in IN
the DT
temblor NN
. .

The DT
ground NN
along IN
the DT
Embarcadero NNP
the DT
street NN
that IN
skirts VBZ
the DT
city NN
's POS
eastern JJ
boundary NN
and CC
piers NNS
-- :
dropped VBD
six CD
inches NNS
after IN
the DT
quake NN
, ,
wreaking VBG
major JJ
damage NN
to TO
at IN
least JJS
one CD
of IN
the DT
piers NNS
. .

At IN
San NNP
Francisco NNP
International NNP
Airport NNP
, ,
shock NN
waves NNS
wrecked VBD
the DT
control NN
tower NN
, ,
knocking VBG
down JJ
computers NNS
and CC
shattering VBG
glass NN
. .

Offices NNS
of IN
the DT
city NN
's POS
Rent NNP
Board NNP
were VBD
destroyed VBN
. .

Mayor NNP
Agnos NNP
's POS
$ $
2 CD
billion CD
estimate NN
does VBZ
n't RB
include VB
damage NN
to TO
freeway NN
arteries NNS
leading VBG
into IN
the DT
city NN
, ,
some DT
of IN
which WDT
remained VBD
closed VBN
. .

A DT
major JJ
chunk NN
of IN
the DT
$ $
2 CD
billion CD
is VBZ
expected VBN
to TO
be VB
eaten VBN
up IN
by IN
overtime NN
for IN
city NN
workers NNS
deployed VBN
in IN
the DT
emergency NN
, ,
said VBD
a DT
spokesman NN
for IN
Mr. NNP
Agnos NNP
. .

`` ``
All DT
of IN
the DT
city NN
's POS
$ $
5.9 CD
million CD
emergency NN
reserve NN
was VBD
spent VBN
in IN
the DT
first JJ
24 CD
hours NNS
'' ''
on IN
overtime NN
salaries NNS
, ,
he PRP
said VBD
. .

Insurers NNS
struggled VBD
to TO
to TO
get VB
a DT
firm NN
grasp NN
on IN
the DT
volume NN
of IN
claims NNS
pouring VBG
into IN
their PRP$
offices NNS
. .

At IN
Fireman NNP
's POS
Fund NNP
Corp. NNP
, ,
a DT
spokesman NN
said VBD
142 CD
claims NNS
were VBD
received VBN
in IN
the DT
first JJ
24 CD
hours NNS
after IN
the DT
quake NN
, ,
and CC
the DT
company NN
is VBZ
braced VBN
for IN
as RB
many JJ
as IN
5,000 CD
claims NNS
from IN
its PRP$
35,000 CD
residential JJ
and CC
35,000 CD
business NN
policyholders NNS
in IN
the DT
affected VBN
area NN
. .

`` ``
Claims NNPS
range NN
from IN
a DT
scratched VBN
fender NN
-- :
and CC
there EX
were VBD
an DT
awful JJ
lot NN
of IN
cars NNS
damaged VBN
in IN
this DT
-- :
to TO
a DT
major JJ
processing NN
plant NN
, ,
'' ''
a DT
spokesman NN
said VBD
. .

`` ``
We PRP
're VBP
delivering VBG
a DT
check NN
for IN
$ $
750,000 CD
to TO
an DT
automotive JJ
business NN
in IN
Berkeley NNP
that WDT
burned VBD
on IN
Tuesday NNP
. .
'' ''

Fireman NNP
's POS
is VBZ
part NN
of IN
a DT
$ $
38 CD
million CD
syndicate NN
that IN
supplies NNS
business NN
interruption NN
insurance NN
to TO
the DT
city NN
on IN
the DT
Bay NNP
Bridge NNP
, ,
which WDT
must MD
pay VB
employees NNS
during IN
the DT
three CD
weeks NNS
or CC
more JJR
it PRP
is VBZ
expected VBN
to TO
be VB
out IN
of IN
service NN
and CC
deprived VBN
of IN
toll NN
income NN
. .

California JJ
lawmakers NNS
want VBP
to TO
eliminate VB
temporarily RB
a DT
$ $
100 CD
million CD
cap NN
on IN
the DT
amount NN
of IN
federal JJ
highway NN
relief NN
for IN
each DT
state NN
for IN
each DT
disaster NN
, ,
as RB
well RB
as IN
a DT
prohibition NN
on IN
using VBG
the DT
emergency NN
highway NN
aid NN
to TO
repair VB
toll NN
roads NNS
. .

In IN
addition NN
, ,
under IN
the DT
highway-relief JJ
program NN
, ,
the DT
federal JJ
government NN
provides VBZ
100 CD
% NN
of IN
emergency NN
highway NN
aid NN
for IN
only RB
the DT
first JJ
90 CD
days NNS
of IN
a DT
repair NN
effort NN
. .

After IN
that DT
, ,
the DT
federal JJ
share NN
diminishes VBZ
. .

For IN
interstate JJ
highways NNS
, ,
the DT
federal JJ
share NN
normally RB
would MD
drop VB
to TO
90 CD
% NN
of IN
the DT
cost NN
of IN
repairs NNS
, ,
and CC
the DT
state NN
would MD
have VB
to TO
pick VB
up IN
the DT
remainder NN
of IN
the DT
cost NN
. .

But CC
lawmakers NNS
want VBP
to TO
extend VB
the DT
period NN
for IN
100 CD
% NN
federal JJ
funding NN
for IN
several JJ
months NNS
. .

Those DT
changes NNS
also RB
would MD
apply VB
to TO
two CD
areas NNS
hit VBD
hard JJ
by IN
Hurricane NNP
Hugo NNP
-- :
South NNP
Carolina NNP
and CC
the DT
U.S. NNP
Virgin NNP
Islands NNPS
, ,
according VBG
to TO
an DT
aide NN
to TO
Rep. NNP
Fazio NNP
. .

Meanwhile RB
, ,
the DT
FEMA NNP
announced VBD
a DT
toll-free JJ
telephone NN
number NN
-LRB- (
800-462-9029 CD
-RRB- )
to TO
expedite VB
service NN
to TO
victims NNS
of IN
the DT
earthquake NN
. .

Lines NNS
will MD
be VB
available JJ
24 CD
hours VBZ
a DT
day NN
to TO
take VB
applications NNS
for IN
such JJ
disaster NN
relief NN
as IN
temporary JJ
housing NN
and CC
emergency NN
home NN
repairs NNS
by IN
phone NN
. .

Transportation NN
officials NNS
are VBP
expecting VBG
utter JJ
traffic NN
pandemonium NN
beginning VBG
Monday NNP
and CC
growing VBG
worse JJR
over IN
the DT
next JJ
several JJ
weeks NNS
. .

Some DT
250,000 CD
cars NNS
normally RB
cross VBP
the DT
closed VBN
Bay NNP
Bridge NNP
between IN
Oakland NNP
and CC
San NNP
Francisco NNP
daily JJ
. .

Officials NNS
say VBP
it PRP
is VBZ
clear JJ
that IN
alternate JJ
routes NNS
ca MD
n't RB
handle VB
the DT
overflow NN
. .

The DT
state NN
is VBZ
calling VBG
in IN
a DT
flotilla NN
of IN
navy NN
landing NN
vessels NNS
and CC
other JJ
boats NNS
to TO
expand VB
ferry NN
service NN
across IN
the DT
bay NN
and CC
hopes VBZ
to TO
add VB
numerous JJ
new JJ
bus NN
routes NNS
and CC
train NN
departures NNS
to TO
help VB
alleviate VB
the DT
traffic NN
problem NN
. .

Moreover RB
, ,
state NN
officials NNS
are VBP
urging VBG
freight NN
haulers NNS
to TO
bypass VB
many NN
of IN
the DT
area NN
's POS
main JJ
highways NNS
and CC
to TO
travel VB
late RB
at IN
night NN
or CC
during IN
predawn JJ
hours NNS
. .

Even RB
so RB
, ,
`` ``
We PRP
're VBP
looking VBG
for IN
chaos NN
, ,
'' ''
said VBD
George NNP
Gray NNP
, ,
a DT
deputy NN
district NN
director NN
at IN
the DT
California NNP
Department NNP
of IN
Transportation NNP
. .

`` ``
If IN
there EX
's VBZ
any DT
way NN
you PRP
can MD
do VB
it PRP
, ,
you PRP
ought MD
to TO
go VB
to TO
Idaho NNP
and CC
go VB
fishing NN
for IN
a DT
while NN
. .
'' ''

Most JJS
of IN
San NNP
Francisco NNP
's POS
tourists NNS
and CC
business NN
travelers NNS
already RB
have VBP
left VBN
-- :
despite IN
hotel NN
's POS
offers NNS
of IN
rate NN
cuts NNS
. .

`` ``
Everyone NN
left VBN
, ,
'' ''
said VBD
Peter NNP
Lang NNP
, ,
reservations NNS
manager NN
of IN
the DT
Mark NNP
Hopkins NNP
Hotel NNP
. .

The DT
Westin NNP
St. NNP
Francis NNP
hotel NN
, ,
which WDT
survived VBD
the DT
1906 CD
earthquake NN
and CC
fire NN
, ,
currently RB
is VBZ
less JJR
than IN
50 CD
% NN
occupied VBN
. .

`` ``
We PRP
still RB
have VBP
our PRP$
die-hard JJ
baseball NN
fans NNS
, ,
'' ''
a DT
spokesman NN
said VBD
. .

`` ``
One CD
lady NN
from IN
New NNP
York NNP
said VBD
she PRP
's VBZ
not RB
going VBG
home NN
until IN
the DT
-LCB- (
World NNP
Series NNP
-RCB- )
is VBZ
over IN
. .
'' ''

Gerald NNP
F. NNP
Seib NNP
and CC
Joe NNP
Davidson NNP
in IN
Washington NNP
contributed VBD
to TO
this DT
article NN
. .

Is VBZ
an DT
American NNP
Secretary NNP
of IN
State NNP
seriously RB
suggesting VBG
that IN
the DT
Khmer NNP
Rouge NNP
should MD
help VB
govern VB
Cambodia NNP
? .

Apparently RB
so RB
. .

There EX
are VBP
no DT
easy JJ
choices NNS
in IN
Cambodia NNP
, ,
but CC
we PRP
ca MD
n't RB
imagine VB
that IN
it PRP
benefits VBZ
the DT
U.S. NNP
to TO
become VB
the DT
catalyst NN
for IN
an DT
all-too-familiar JJ
process NN
that WDT
could MD
end VB
in IN
another DT
round NN
of IN
horror NN
in IN
Cambodia NNP
. .

Now RB
that IN
Vietnam NNP
appears VBZ
to TO
have VB
pulled VBN
out IN
its PRP$
occupation NN
army NN
, ,
the DT
State NNP
Department NNP
is VBZ
talking VBG
again RB
about IN
accepting VBG
an DT
`` ``
interim JJ
'' ''
coalition NN
government NN
in IN
the DT
Cambodian JJ
capital NN
of IN
Phnom NNP
Penh NNP
. .

The DT
coalition NN
would MD
include VB
the DT
current JJ
Vietnamese-backed JJ
Hun NNP
Sen NNP
regime NN
, ,
the DT
two CD
non-communist JJ
resistance NN
groups NNS
led VBN
by IN
Son NNP
Sann NNP
and CC
Prince NNP
Sihanouk NNP
, ,
and CC
the DT
Khmer NNP
Rouge NNP
. .

The DT
aim NN
would MD
be VB
to TO
end VB
the DT
guerrilla NN
war NN
for IN
control NN
of IN
Cambodia NNP
by IN
allowing VBG
the DT
Khmer NNP
Rouge NNP
a DT
small JJ
share NN
of IN
power NN
. .

The DT
State NNP
Department NNP
says VBZ
that IN
any DT
Khmer NNP
Rouge NNP
participation NN
would MD
have VB
to TO
be VB
`` ``
minimal JJ
. .
'' ''

The DT
usual JJ
problem NN
with IN
including VBG
communists NNS
in IN
`` ``
interim JJ
'' ''
coalition NN
governments NNS
is VBZ
that IN
their PRP$
ideology NN
and CC
methods NNS
require VBP
they PRP
squeeze VBP
out IN
everyone NN
else RB
. .

Recall VB
that IN
Nicaragua NNP
's POS
Sandinistas NNPS
came VBD
into IN
Managua NNP
as IN
partners NNS
in IN
a DT
coalition NN
government NN
with IN
anti-Somoza JJ
moderates NNS
. .

Within IN
two CD
years NNS
, ,
the DT
moderates NNS
were VBD
exiled VBN
or CC
in IN
prison NN
, ,
Nicaragua NNP
had VBD
gone VBN
communist JJ
, ,
and CC
the DT
Sandinistas NNPS
were VBD
building NN
one CD
of IN
the DT
biggest JJS
armies NNS
in IN
Latin NNP
America NNP
and CC
threatening VBG
their PRP$
neighbors NNS
. .

In IN
Laos NNP
, ,
when WRB
the DT
Western JJ
powers NNS
bowed VBD
to TO
pressure VB
for IN
such JJ
a DT
coalition NN
it PRP
turned VBD
out IN
they PRP
were VBD
opening VBG
the DT
door NN
to TO
communist JJ
domination NN
. .

Even RB
Mao NNP
Tse-tung NNP
's POS
China NNP
began VBD
in IN
1949 CD
with IN
a DT
partnership NN
between IN
the DT
communists NNS
and CC
a DT
number NN
of IN
smaller JJR
, ,
non-communist JJ
parties NNS
. .

What WP
complicates VBZ
the DT
scene NN
in IN
Cambodia NNP
is VBZ
that IN
the DT
current JJ
regime NN
is VBZ
already RB
communist JJ
, ,
as IN
are VBP
its PRP$
Vietnamese JJ
overseers NNS
back RB
in IN
Hanoi NNP
, ,
as IN
are VBP
the DT
Khmer NNP
Rouge NNP
-- :
who WP
are VBP
the DT
strongest JJS
of IN
the DT
three CD
guerrilla NN
groups NNS
. .

It PRP
's VBZ
not RB
clear JJ
which WDT
crew NN
of IN
communists NNS
might MD
prevail VB
in IN
a DT
coalition NN
government NN
, ,
but CC
the DT
one CD
good JJ
bet NN
is VBZ
that IN
the DT
non-communists NNS
would MD
disappear VB
. .

That DT
would MD
leave VB
Hun NNP
Sen NNP
and CC
the DT
Khmer NNP
Rouge NNP
. .

The DT
Hun NNP
Sen NNP
regime NN
has VBZ
sent VBN
thousands NNS
of IN
conscript NN
laborers NNS
to TO
die VB
of IN
malaria NN
and CC
malnourishment NN
while IN
building NN
Cambodia NNP
's POS
equivalent NN
of IN
the DT
Berlin NNP
Wall NNP
near IN
the DT
Thai NNP
border NN
. .

The DT
Khmer NNP
Rouge NNP
, ,
however RB
, ,
carry VB
an DT
unsurpassed JJ
record NN
for IN
Cambodian JJ
tyranny NN
. .

These DT
utopians NNS
caused VBD
the DT
deaths NNS
-- :
by IN
starvation NN
, ,
disease NN
or CC
execution NN
-- :
of IN
well RB
over IN
one CD
million CD
Cambodians NNPS
. .

The DT
Cambodian JJ
horror NN
was VBD
so RB
bad JJ
that IN
the DT
Vietnamese JJ
occupation NN
in IN
1978 CD
was VBD
a DT
perverse JJ
form NN
of IN
relief NN
. .

The DT
world NN
might MD
want VB
to TO
believe VB
that IN
the DT
Khmer NNP
Rouge NNP
ca MD
n't RB
still RB
be VB
such JJ
bad JJ
guys NNS
, ,
just RB
as IN
in IN
the DT
late JJ
1970s NNS
it PRP
was VBD
reluctant JJ
to TO
credit VB
the DT
reports NNS
of IN
genocide NN
then RB
taking VBG
place NN
. .

But CC
there EX
is VBZ
no DT
solid JJ
evidence NN
that IN
the DT
Khmer NNP
Rouge NNP
have VBP
changed VBN
. .

Some DT
of IN
our PRP$
sources NNS
in IN
Thailand NNP
say VBP
the DT
notorious JJ
old JJ
Khmer NNP
Rouge NNP
leader NN
, ,
Pol NNP
Pot NNP
, ,
has VBZ
been VBN
holed VBN
up IN
this DT
summer NN
in IN
Khmer NNP
Rouge NNP
camps NNS
near IN
the DT
Thai-Cambodian JJ
border NN
. .

So RB
it PRP
's VBZ
difficult JJ
to TO
swallow VB
the DT
notion NN
that IN
Mr. NNP
Baker NNP
is VBZ
willing JJ
to TO
accept VB
conditions NNS
that WDT
would MD
help VB
the DT
Khmer NNP
Rouge NNP
set VBD
up IN
shop NN
again RB
in IN
Phnom NNP
Penh NNP
. .

True JJ
, ,
Prince NNP
Sihanouk NNP
backs VBZ
the DT
idea NN
of IN
such JJ
a DT
coalition NN
, ,
at IN
least JJS
for IN
this DT
week NN
. .

But CC
Prince NNP
Sihanouk NNP
has VBZ
backed VBN
all DT
sorts NNS
of IN
ideas NNS
over IN
the DT
years NNS
, ,
and CC
done VBD
rather RB
better JJR
by IN
himself PRP
than IN
by IN
Cambodia NNP
. .

Nor CC
should MD
the DT
U.S. NNP
worry NN
much JJ
about IN
offending VBG
China NNP
, ,
which WDT
still RB
aids VBZ
the DT
Khmer NNP
Rouge NNP
. .

It PRP
's VBZ
time NN
the DT
State NNP
Department NNP
recognized VBD
that IN
China NNP
does VBZ
not RB
play VB
by IN
gentlemen NNS
's POS
rules NNS
. .

For IN
the DT
U.S. NNP
to TO
lend VB
even RB
the DT
slightest JJS
support NN
to TO
the DT
most RBS
infamous JJ
killers NNS
on IN
Indochina NNP
's POS
bleak JJ
scene NN
could MD
only RB
disturb VB
America NNP
's POS
allies NNS
elsewhere RB
. .

It PRP
would MD
be VB
entirely RB
rational JJ
for IN
communist JJ
insurgents NNS
in IN
countries NNS
such JJ
as IN
the DT
Philippines NNP
or CC
Peru NNP
to TO
conclude VB
the DT
following VBG
: :
Fight VB
viciously RB
enough RB
and CC
the DT
U.S. NNP
, ,
under IN
the DT
banner NN
of IN
pragmatism NN
, ,
might MD
eventually RB
help VB
negotiate VB
your PRP$
way NN
to TO
victory NN
. .

U.S. NNP
diplomacy NN
has VBZ
done VBN
it PRP
before RB
, ,
and CC
it PRP
will MD
likely RB
do NN
it PRP
again RB
. .

The DT
administration NN
and CC
Congress NNP
have VBP
lately RB
tangoed VBD
around IN
the DT
idea NN
of IN
sending VBG
military JJ
aid NN
to TO
Cambodia NNP
's POS
non-communists NNS
. .

But CC
now RB
the DT
possibility NN
of IN
`` ``
diplomatic JJ
movement NN
'' ''
-LRB- (
Vietnam NNP
's POS
withdrawal NN
, ,
the DT
Baker NNP
initiative NN
-RRB- )
has VBZ
put VBN
that DT
plan NN
on IN
hold NN
, ,
with IN
the DT
proviso NN
that IN
if IN
the DT
going VBG
got VBN
rough JJ
, ,
the DT
U.S. NNP
would MD
then RB
rearm VB
the DT
opposition NN
. .

Why WRB
the DT
timidity NN
? .

At IN
the DT
very RB
least JJS
, ,
the DT
odds NNS
are VBP
heavily RB
weighted JJ
against IN
the DT
prospects NNS
of IN
preventing VBG
the DT
Khmer NNP
Rouge NNP
and CC
Cambodia NNP
's POS
communists NNS
from IN
ultimately RB
moving VBG
against IN
their PRP$
opponents NNS
. .

When WRB
that DT
day NN
comes VBZ
, ,
it PRP
would MD
be VB
particularly RB
awful JJ
to TO
know VB
that IN
the DT
United NNP
States NNPS
sat VBD
on IN
military JJ
aid NN
and CC
deprived VBD
these DT
people NNS
of IN
the DT
means NNS
to TO
settle VB
their PRP$
fate NN
with IN
at IN
least JJS
a DT
little JJ
honor NN
. .

Michael NNP
F. NNP
Harris NNP
, ,
53 CD
, ,
was VBD
named VBN
executive JJ
vice NN
president NN
, ,
North NNP
America NNP
, ,
for IN
the DT
Financial NNP
Times NNP
, ,
the DT
business NN
newspaper NN
published VBN
by IN
this DT
company NN
that WDT
also RB
has VBZ
interests NNS
in IN
book NN
publishing NN
, ,
fine JJ
china NN
, ,
oil NN
services NNS
and CC
investment NN
banking NN
. .

Mr. NNP
Harris NNP
had VBD
been VBN
vice NN
president NN
for IN
the DT
newspaper NN
's POS
advertising NN
in IN
New NNP
York NNP
. .

He PRP
takes VBZ
additional JJ
responsibility NN
for IN
newspaper NN
sales NNS
and CC
distribution NN
of IN
the DT
Financial NNP
Times NNP
in IN
North NNP
America NNP
. .

Laurance NNP
V. NNP
Allen NNP
, ,
44 CD
, ,
who WP
had VBD
been VBN
director NN
for IN
North NNP
America NNP
, ,
resigned VBD
to TO
pursue VB
other JJ
business NN
interests NNS
and CC
do VBP
some DT
consulting NN
. .

Cipher NNP
Data NNP
Products NNP
Inc. NNP
posted VBD
a DT
net JJ
loss NN
of IN
$ $
14.2 CD
million CD
, ,
or CC
97 CD
cents NNS
a DT
share NN
, ,
for IN
its PRP$
fiscal JJ
first JJ
quarter NN
, ,
compared VBN
with IN
net JJ
income NN
of IN
$ $
3.8 CD
million CD
, ,
or CC
27 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Revenue NN
for IN
the DT
quarter NN
ended VBN
Sept. NNP
30 CD
fell VBD
20 CD
% NN
, ,
to TO
$ $
41.3 CD
million CD
from IN
$ $
51.9 CD
million CD
in IN
the DT
year-earlier JJ
period NN
. .

Cipher NNP
Data NNP
, ,
a DT
San NNP
Diego NNP
maker NN
of IN
magnetic JJ
tape NN
peripherals NNS
and CC
optical JJ
disc NN
drives NNS
, ,
said VBD
the DT
loss NN
included VBD
reserves NNS
of IN
$ $
3.8 CD
million CD
related VBN
to TO
a DT
corporate JJ
restructuring NN
. .

The DT
restructuring NN
calls VBZ
for IN
a DT
24 CD
% NN
reduction NN
in IN
its PRP$
work NN
force NN
over IN
the DT
next JJ
two CD
months NNS
, ,
affecting VBG
about IN
525 CD
jobs NNS
, ,
Cipher NNP
Data NNP
said VBD
. .

It PRP
is VBZ
eliminating VBG
the DT
positions NNS
of IN
president NN
and CC
chief JJ
operating VBG
officer NN
, ,
formerly RB
held VBN
by IN
Edward NNP
L. NNP
Marinaro NNP
. .

Cipher NNP
Data NNP
said VBD
Mr. NNP
Marinaro NNP
consequently RB
has VBZ
resigned VBN
from IN
those DT
posts NNS
and CC
from IN
the DT
company NN
's POS
board NN
. .

Mr. NNP
Marinaro NNP
could MD
n't RB
immediately RB
be VB
reached VBN
for IN
comment NN
. .

FileNet NNP
Corp. NNP
, ,
Costa NNP
Mesa NNP
, ,
Calif. NNP
, ,
said VBD
it PRP
expects VBZ
to TO
report VB
a DT
third-quarter JJ
loss NN
of IN
about RB
$ $
1.8 CD
million CD
, ,
or CC
17 CD
cents NNS
a DT
share NN
, ,
because IN
of IN
a DT
$ $
2.5 CD
million CD
reserve NN
to TO
be VB
taken VBN
against IN
potential JJ
losses NNS
on IN
a DT
contract NN
with IN
the DT
state NN
of IN
California NNP
. .

Revenue NN
is VBZ
estimated VBN
at IN
$ $
18.6 CD
million CD
. .

The DT
maker NN
of IN
document NN
image NN
processing NN
equipment NN
said VBD
the DT
state NN
procurement NN
division NN
had VBD
declared VBN
FileNet NNP
in IN
default NN
on IN
its PRP$
contract NN
with IN
the DT
secretary NN
of IN
state NN
uniform NN
commercial JJ
code NN
division NN
. .

FileNet NNP
said VBD
it PRP
does VBZ
n't RB
believe VB
the DT
state NN
has VBZ
a DT
valid JJ
basis NN
of IN
default NN
and CC
is VBZ
reviewing VBG
its PRP$
legal JJ
rights NNS
under IN
the DT
contract NN
, ,
but CC
said VBD
it PRP
ca MD
n't RB
predict VB
the DT
outcome NN
of IN
the DT
dispute NN
. .

The DT
disagreement NN
centers NNS
on IN
testing NN
deadlines NNS
and CC
other JJ
issues NNS
involving VBG
a DT
FileNet NNP
system NN
installed VBN
earlier RBR
this DT
year NN
. .

State NN
officials NNS
could MD
n't RB
be VB
reached VBN
for IN
comment NN
late JJ
yesterday NN
. .

FileNet NNP
noted VBD
that IN
it PRP
had VBD
cash NN
and CC
marketable JJ
securities NNS
totaling VBG
$ $
22.5 CD
million CD
on IN
Sept. NNP
30 CD
, ,
and CC
stockholders NNS
' POS
equity NN
is VBZ
$ $
60.1 CD
million CD
. .

The DT
company NN
made VBD
the DT
announcement NN
after IN
the DT
close NN
of IN
the DT
markets NNS
, ,
where WRB
its PRP$
stock NN
finished VBD
at IN
$ $
10.75 CD
, ,
up IN
25 CD
cents NNS
, ,
in IN
over-the-counter JJ
trading NN
. .

Clinton NNP
Gas NNP
Systems NNP
Inc. NNP
said VBD
it PRP
received VBD
a DT
contract NN
from IN
Timken NNP
Co. NNP
, ,
Canton NNP
, ,
Ohio NNP
, ,
to TO
manage VB
the DT
natural JJ
gas NN
purchasing VBG
, ,
scheduling NN
and CC
transportation NN
activities NNS
for IN
Timken NNP
's POS
seven CD
Ohio NNP
and CC
two CD
Pennsylvania NNP
plants NNS
. .
Clinton NNP
and CC
Timken NNP
agreed VBD
not RB
to TO
disclose VB
the DT
value NN
of IN
the DT
contract NN
. .

Timken NNP
, ,
a DT
producer NN
of IN
bearings NNS
and CC
specialty NN
steel NN
, ,
already RB
buys VBZ
gas NN
from IN
Clinton NNP
. .

Clinton NNP
said VBD
in IN
Columbus NNP
, ,
Ohio NNP
, ,
that IN
its PRP$
Clinton NNP
Gas NNP
Marketing NNP
unit NN
wants VBZ
to TO
line VB
up IN
a DT
number NN
of IN
such JJ
gas NN
management NN
contracts NNS
. .

Manufacturers NNS
frequently RB
do VBP
n't RB
have VB
anyone NN
who WP
is VBZ
a DT
specialist NN
in IN
natural JJ
gas NN
, ,
Clinton NNP
said VBD
, ,
and CC
a DT
specialist NN
such JJ
as IN
Clinton NNP
can MD
save VB
them PRP
substantial JJ
amounts NNS
of IN
money NN
. .

The DT
scene NN
opens VBZ
with IN
pinstripe-suited JJ
executives NNS
-- :
Easterners NNS
, ,
obviously RB
-- :
glued VBN
to TO
cellular JJ
phones NNS
and CC
hightailing VBG
it PRP
out IN
of IN
town NN
in IN
chauffeur-driven JJ
limousines NNS
. .

`` ``
The DT
carpetbaggers NNS
, ,
'' ''
snorts VBZ
the DT
narrator NN
with IN
a DT
Texas NNP
twang NN
, ,
`` ``
have VBP
packed VBN
their PRP$
bags NNS
and CC
went VBD
. .
'' ''

But CC
, ,
he PRP
continues VBZ
, ,
`` ``
They PRP
're VBP
forgetting VBG
we PRP
're VBP
all DT
Texans NNPS
. .

The DT
Lone NNP
Star NNP
is VBZ
on IN
the DT
rise NN
again RB
. .
'' ''

As IN
the DT
music NN
swells NNS
, ,
viewers NNS
discover VBP
they PRP
're VBP
watching VBG
a DT
commercial NN
for IN
Lone NNP
Star NNP
Beer NN
, ,
the DT
pride NN
of IN
Texas NNP
, ,
a DT
product NN
of IN
G. NNP
Heileman NNP
Brewing NNP
Co. NNP
, ,
a DT
La NNP
Crosse NNP
, ,
Wis. NNP
, ,
unit NN
of IN
Bond NNP
Corp NNP
. .

As IN
the DT
ad NN
's POS
tone NN
implies VBZ
, ,
the DT
Texas NNP
spirit NN
is VBZ
pretty RB
xenophobic JJ
these DT
days NNS
, ,
and CC
Lone NNP
Star NNP
is VBZ
n't RB
alone RB
in IN
trying VBG
to TO
take VB
advantage NN
of IN
that DT
. .

From IN
Chevy NNP
trucks NNS
to TO
Lipton NNP
iced JJ
tea NN
to TO
a DT
host NN
of IN
battling VBG
banks NNS
, ,
the DT
state NN
has VBZ
been VBN
inundated VBN
with IN
broadcast NN
commercials NNS
and CC
print NN
advertising NN
campaigns NNS
celebrating VBG
Texans NNPS
and CC
castigating VBG
outsiders NNS
. .

While IN
advertisers NNS
have VBP
long RB
appealed VBN
to TO
Texans NNPS
' POS
state NN
pride NN
and CC
prejudices NNS
, ,
the DT
latest JJS
trend NN
has VBZ
been VBN
sparked VBN
, ,
in IN
part NN
, ,
by IN
the DT
state NN
's POS
recent JJ
hard JJ
economic JJ
times NNS
. .

That DT
has VBZ
taken VBN
some DT
of IN
the DT
swagger NN
out RP
of IN
natives NNS
who WP
like VB
to TO
brag VB
that IN
Texas NNP
is VBZ
the DT
only JJ
state NN
that WDT
was VBD
once RB
a DT
nation NN
, ,
but CC
it PRP
has VBZ
increased VBN
their PRP$
legendary JJ
resentment NN
of IN
outsiders NNS
. .

In IN
the DT
past NN
, ,
writes VBZ
Houston NNP
Chronicle NNP
columnist NN
Jim NNP
Barlow NNP
, ,
outlanders NNS
were VBD
accepted VBN
only RB
after IN
passing VBG
a DT
series NN
of IN
tests NNS
to TO
prove VB
they PRP
had VBD
the DT
`` ``
right NN
'' ''
Texas NNP
attitudes NNS
and CC
`` ``
of IN
course NN
they PRP
had VBD
to TO
be VB
dipped VBN
for IN
parasites NNS
. .
'' ''

There EX
is VBZ
no DT
small JJ
irony NN
in IN
the DT
fact NN
that IN
some DT
of IN
the DT
most-jingoistic JJ
advertising NN
comes VBZ
courtesy NN
of IN
-- :
you PRP
guessed VBD
it PRP
-- :
outsiders NNS
. .

Lone NNP
Star NNP
's POS
Bond NNP
Corp. NNP
parent NN
, ,
for IN
instance NN
, ,
hails VBZ
from IN
Perth NNP
, ,
Australia NNP
. .

North NNP
Carolinians NNPS
, ,
New NNP
Yorkers NNPS
, ,
Californians NNS
, ,
Chicagoans NNPS
and CC
Ohioans NNPS
own JJ
Texas NNP
banks NNS
. .

All DT
kinds NNS
of IN
landmark NN
Texas NNP
real JJ
estate NN
has VBZ
been VBN
snapped VBN
up IN
by IN
out-of-staters NNS
. .

Even RB
the DT
beloved JJ
Dallas NNP
Cowboys NNPS
were VBD
bought VBN
by IN
an DT
Arkansas NNP
oil NN
man NN
. .
`` ``
Texas NNP
has VBZ
lost VBN
its PRP$
distinctiveness NN
, ,
leaving VBG
Texans NNPS
with IN
a DT
hunger NN
to TO
feel VB
proud JJ
about IN
themselves PRP
, ,
'' ''
says VBZ
Stephen NNP
Klineberg NNP
, ,
a DT
sociology NN
professor NN
at IN
Rice NNP
University NNP
, ,
Houston NNP
. .

`` ``
This DT
plays VBZ
right NN
into IN
the DT
hands NNS
of IN
the DT
advertising NN
agencies NNS
. .
'' ''

For IN
example NN
, ,
the DT
iced-tea NN
radio NN
campaign NN
for IN
Thomas NNP
J. NNP
Lipton NNP
Co. NNP
, ,
an DT
Englewood NNP
Cliffs NNP
, ,
N.J. NNP
, ,
unit NN
of IN
Anglo-Dutch NNP
Unilever NNP
Group NNP
, ,
emphatically RB
proclaims VBZ
: :
`` ``
Real JJ
Texans NNPS
do VBP
not RB
wear VB
dock-siders NNS
-- :
ever RB
. .

Real JJ
Texans NNPS
do VBP
n't RB
play VB
paddleball NN
, ,
at IN
least JJS
I PRP
hope VBP
not RB
. .

This DT
is VBZ
football NN
country NN
. .

And CC
another DT
thing NN
-- :
real JJ
Texans NNPS
drink NN
Lipton NNP
iced JJ
tea NN
. .
'' ''

In IN
developing VBG
that DT
theme NN
at IN
Interpublic NNP
Group NNP
of IN
Cos NNP
. .
' ''
Lintas NNP
: :
New NNP
York NNP
unit NN
, ,
account NN
supervisor NN
Lisa NNP
Buksbaum NNP
says VBZ
she PRP
made VBD
a DT
`` ``
couple NN
of IN
phone NN
calls NNS
'' ''
to TO
Dallas NNP
ad NN
friends NNS
and CC
reported VBD
her PRP$
`` ``
findings NNS
'' ''
to TO
a DT
team NN
of IN
writers NNS
. .

Her PRP$
findings NNS
? .

`` ``
You PRP
know VBP
, ,
'' ''
she PRP
says VBZ
, ,
`` ``
stereotypical JJ
stuff NN
like IN
armadillos NNS
, ,
cowboys NNS
and CC
football NN
. .
'' ''

Not RB
exactly RB
sophisticated JJ
market NN
research NN
, ,
but CC
who WP
cares VBZ
as RB
long RB
as IN
the DT
campaigns NNS
work VBP
. .

And CC
ad NN
agencies NNS
insist VBP
that IN
they PRP
do VBP
. .

Stan NNP
Richards NNP
of IN
Richards NNP
Group NNP
Inc. NNP
, ,
Dallas NNP
, ,
tells VBZ
of IN
the DT
Texan NNP
who WP
saw VBD
the DT
agency NN
's POS
tear-jerking JJ
commercial NN
for IN
First NNP
Gibraltar NNP
Bank NNP
F.S.B. NNP
-- :
complete JJ
with IN
the DT
state NN
's POS
anthem NN
-- :
and CC
promptly RB
invested VBN
$ $
100,000 CD
in IN
the DT
thrift NN
's POS
CDs NNS
. .

Never RB
mind NN
that IN
First NNP
Gibraltar NNP
is VBZ
one CD
of IN
the DT
failed VBN
Texas NNP
thrifts NNS
taken VBN
over IN
by IN
outsiders NNS
-- :
in IN
this DT
case NN
, ,
an DT
investor NN
group NN
headed VBN
by IN
New NNP
York NNP
financier NN
Ronald NNP
Perelman NNP
. .
The DT
North NNP
Texas NNP
Chevy NNP
Dealers NNS
recently RB
had VBD
a DT
record NN
sales NNS
month NN
after IN
the DT
debut NN
of IN
ad NN
campaign NN
that IN
thumbs NNS
its PRP$
nose NN
at IN
elite NN
Easterners NNS
. .

And CC
deposits NNS
at IN
NCNB NNP
Texas NNP
National NNP
Bank NNP
, ,
a DT
unit NN
of IN
NCNB NNP
Corp. NNP
, ,
Charlotte NNP
, ,
N.C. NNP
, ,
have VBP
increased VBN
$ $
2 CD
billion CD
since IN
last JJ
year NN
after IN
heavy JJ
advertising NN
stressing VBG
commitment NN
to TO
Texas NNP
. .

`` ``
Obviously RB
, ,
pride NN
sells VBZ
in IN
Texas NNP
, ,
'' ''
says VBZ
a DT
spokeswoman NN
for IN
Bozell NNP
Inc. NNP
, ,
Omaha NNP
, ,
Neb. NNP
, ,
which WDT
represents VBZ

The DT
ad NN
campaigns NNS
usually RB
follow VBP
one CD
of IN
three CD
tracks VBZ
-- :
stressing VBG
the DT
company NN
's POS
` ``
Texasness NN
, ,
' ''
pointing VBG
out RP
the IN
competition NN
's POS
lack NN
thereof RB
, ,
or CC
trying VBG
to TO
be VB
more JJR
Texan NNP
than IN
Texans NNPS
. .

Ford NNP
trucks NNS
may MD
outsell VB
Chevy NNP
trucks NNS
in IN
places NNS
like IN
`` ``
Connecticut NNP
and CC
Long NNP
Island NNP
, ,
'' ''
sniffs VBZ
a DT
commercial NN
for IN
Chevrolet NNP
, ,
a DT
division NN
of IN
General NNP
Motors NNPS
Corp NNP
. .

The DT
commercial NN
, ,
created VBN
by IN
Bateman NNP
, ,
Bryan NNP
& CC
Galles NNP
Inc. NNP
, ,
of IN
Dallas NNP
, ,
adds VBZ
derisively RB
: :
`` ``
I PRP
bet VBP
it PRP
takes VBZ
a DT
real JJ
tough JJ
truck NN
to TO
haul VB
your PRP$
Ivy NNP
League NNP
buddies NNS
to TO
the DT
yacht NN
club NN
. .
'' ''

Because IN
they PRP
want VBP
a DT
truck NN
that WDT
is VBZ
`` ``
Texas NNP
tough JJ
, ,
'' ''
the DT
commercial NN
concludes VBZ
, ,
`` ``
Texans NNPS
drive NN
Chevy NNP
. .
'' ''

J.C. NNP
Penney NNP
Co. NNP
, ,
which WDT
relocated VBD
from IN
New NNP
York NNP
to TO
suburban JJ
Dallas NNP
two CD
years NNS
ago RB
, ,
gently RB
wraps VBZ
itself PRP
in IN
Texas NNP
pride NN
through IN
a DT
full-page JJ
magazine NN
ad NN
: :
`` ``
Taking VBG
the DT
long-range JJ
view NN
to TO
conserve VB
what WP
is VBZ
of IN
value NN
to TO
future NN
generations NNS
is VBZ
part NN
of IN
the DT
Lone NNP
Star NNP
lifestyle NN
, ,
'' ''
the DT
ad NN
reads VBZ
. .

`` ``
It PRP
's VBZ
part NN
of IN
our PRP$
style NN
, ,
too RB
. .
'' ''

According VBG
to TO
several JJ
ad-agency NN
sources NNS
, ,
newcomers NNS
to TO
the DT
Texas NNP
banking NN
market NN
are VBP
spending VBG
a DT
combined VBN
$ $
50 CD
million CD
this DT
year NN
to TO
woo VB
Texans NNPS
. .

Meanwhile RB
, ,
surviving VBG
Texas NNP
banking NN
institutions NNS
are VBP
busily RB
pitching VBG
themselves PRP
as IN
the DT
only JJ
lenders NNS
who WP
truly RB
care VBP
about IN
the DT
state NN
. .

The DT
most-strident JJ
anti-outsider NN
sentiment NN
among IN
bankers NNS
comes VBZ
from IN
the DT
Independent NNP
Bankers NNP
Association NNP
of IN
Texas NNP
, ,
although IN
it PRP
's VBZ
hard JJ
to TO
tell VB
from IN
previews NNS
of IN
the DT
$ $
5 NN
million CD
`` ``
The DT
I PRP
's NNS
of IN
Texas NNP
'' ''
TV NN
campaign NN
. .

Commercials NNS
will MD
highlight VB
heart-rending JJ
scenes NNS
of IN
Texas NNP
and CC
chest-swelling JJ
, ,
ain't-it-great-to-be-a-Texan JJ
music NN
. .

Supporting VBG
banks NNS
will MD
sign VB
a DT
`` ``
Texas NNP
Declaration NNP
of IN
Independents NNPS
. .
'' ''

But CC
in IN
introductory JJ
material NN
for IN
the DT
campaign NN
, ,
the DT
trade NN
group NN
urges VBZ
members NNS
to TO
`` ``
arm NN
'' ''
for IN
a DT
`` ``
revolution NN
'' ''
against IN
big JJ
, ,
out-of-state JJ
bank-holding JJ
companies NNS
. .

A DT
video NN
sent VBD
to TO
association NN
members NNS
, ,
featuring VBG
shots NNS
of IN
the DT
Alamo NNP
, ,
cowboys NNS
, ,
fajitas NNS
and CC
a DT
statue NN
of IN
Sam NNP
Houston NNP
, ,
does VBZ
n't RB
mince VB
words NNS
. .

`` ``
Texans NNPS
can MD
sniff VB
a DT
phony JJ
a DT
mile NN
away RB
, ,
'' ''
the DT
narrator NN
warns VBZ
outsiders NNS
. .
`` ``
So RB
, ,
do VBP
n't RB
come VB
and CC
try VB
to TO
con VB
us PRP
with IN
a DT
howdy UH
y'all PRP
or CC
a DT
cowboy NN
hat NN
. .
'' ''

Young NNP
& CC
Rubicam NNP
's POS
Pact NNP

Young NNP
& CC
Rubicam NNP
, ,
fighting VBG
charges NNS
that IN
it PRP
bribed VBD
Jamaican JJ
officials NNS
to TO
win VB
the DT
Jamaica NNP
Tourist NNP
Board NNP
ad NN
account NN
in IN
1981 CD
, ,
said VBD
it PRP
will MD
no RB
longer RB
create VB
the DT
tourist NN
board NN
's POS
advertising NN
. .

In IN
a DT
statement NN
, ,
Alex NNP
Kroll NNP
, ,
Young NNP
& CC
Rubicam NNP
's POS
chairman NN
, ,
said VBD
`` ``
under IN
the DT
present JJ
circumstances NNS
-LCB- (
we PRP
-RCB- )
have VBP
agreed VBN
that IN
it PRP
is VBZ
prudent JJ
to TO
discontinue VB
that DT
contract NN
. .
'' ''

Young NNP
& CC
Rubicam NNP
has VBZ
pleaded VBN
innocent JJ
to TO
the DT
charges NNS
. .

The DT
board NN
would MD
n't RB
comment VB
on IN
its PRP$
impending JJ
search NN
for IN
a DT
new JJ
ad NN
agency NN
to TO
handle VB
its PRP$
estimated VBN
$ $
5 NN
million CD
to TO
$ $
6 CD
million CD
account NN
. .

Ad NN
Notes NNS
... :
. .

NEW JJ
ACCOUNT NN
: :

Sunshine NNP
Biscuits NNP
Inc. NNP
, ,
Woodbridge NNP
, ,
N.J. NNP
, ,
awarded VBD
its PRP$
estimated VBN
$ $
5 NN
million CD
account NN
to TO
Waring NNP
& CC
LaRosa NNP
, ,
New NNP
York NNP
. .

The DT
account NN
had VBD
been VBN
at IN
Della NNP
Femina NNP
McNamee NNP
WCRS NNP
, ,
New NNP
York NNP
. .

MEDIA NNP
POLICY NNP
: :

MacNamara NNP
Clapp NNP
& CC
Klein NNP
, ,
a DT
small JJ
New NNP
York NNP
shop NN
, ,
is VBZ
asking VBG
magazine NN
ad NN
representatives NNS
to TO
tell VB
it PRP
when WRB
major JJ
advertising NN
inserts NNS
will MD
run VB
in IN
their PRP$
publications NNS
. .

It PRP
says VBZ
it PRP
may MD
pull VB
its PRP$
clients NNS
' POS
ads NNS
from IN
those DT
magazines NNS
. .

COKE NNP
ADS NNPS
: :
Coca-Cola NNP
Co. NNP
said VBD
it PRP
produced VBD
a DT
new JJ
version NN
of IN
its PRP$
1971 CD
`` ``
I PRP
'd MD
like VB
to TO
teach VB
the DT
world NN
to TO
sing VB
'' ''
commercial JJ
. .

The DT
ad NN
is VBZ
part NN
of IN
Classic NNP
Coke NNP
's POS
1990 CD
ad NN
campaign NN
, ,
with IN
the DT
tag NN
line NN
, ,
`` ``
Ca MD
n't RB
beat VB
the DT
Real NNP
Thing NNP
. .
'' ''

Basketball NN
star NN
Michael NNP
Jordan NNP
and CC
singer NN
Randy NNP
Travis NNP
have VBP
also RB
agreed VBN
to TO
appear VB
in IN
ads NNS
. .

Dell NNP
Computer NNP
Corp. NNP
, ,
squeezed VBN
by IN
price NN
pressure NN
from IN
its PRP$
larger JJR
competitors NNS
and CC
delays NNS
in IN
its PRP$
new JJ
product NN
line NN
, ,
said VBD
its PRP$
per-share JJ
earnings NNS
for IN
fiscal JJ
1990 CD
will MD
be VB
half VB
its PRP$
previous JJ
forecasts NNS
. .

Although IN
the DT
personal JJ
computer NN
maker NN
said VBD
it PRP
expects VBZ
revenue NN
to TO
meet VB
or CC
exceed VB
previous JJ
projections NNS
of IN
$ $
385 CD
million CD
for IN
the DT
year NN
ending VBG
Jan. NNP
28 CD
, ,
1990 CD
, ,
earnings NNS
are VBP
expected VBN
to TO
be VB
25 CD
cents NNS
to TO
35 CD
cents NNS
a DT
share NN
, ,
down RB
from IN
previous JJ
estimates NNS
of IN
50 CD
cents NNS
to TO
60 CD
cents NNS
. .

Earnings NNS
for IN
fiscal JJ
1989 CD
were VBD
$ $
14.4 CD
million CD
, ,
or CC
80 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
257.8 CD
million CD
. .

Results NNS
for IN
the DT
third JJ
quarter NN
ending VBG
Oct. NNP
31 CD
, ,
are VBP
expected VBN
to TO
be VB
released VBN
the DT
third JJ
week NN
of IN
November NNP
, ,
according VBG
to TO
Michael NNP
Dell NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
. .

Mr. NNP
Dell NNP
said VBD
he PRP
does VBZ
n't RB
expect VB
a DT
loss NN
in IN
either DT
the DT
third JJ
or CC
fourth JJ
quarter NN
, ,
but CC
said VBD
third-quarter JJ
earnings NNS
could MD
be VB
as RB
low JJ
as IN
four CD
cents NNS
a DT
share NN
. .

In IN
the DT
third JJ
quarter NN
last JJ
year NN
, ,
Dell NNP
had VBD
net JJ
income NN
of IN
$ $
5 NN
million CD
, ,
or CC
26 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
75.2 CD
million CD
. .

Mr. NNP
Dell NNP
attributed VBD
the DT
earnings NNS
slide NN
to TO
new JJ
product NN
delays NNS
, ,
such JJ
as IN
a DT
laptop NN
scheduled VBN
for IN
September NNP
that WDT
wo MD
n't RB
be VB
introduced VBN
until IN
early JJ
November NNP
. .

Some DT
delays NNS
have VBP
been VBN
caused VBN
by IN
a DT
shortage NN
of IN
micoprocessors NNS
-- :
notably RB
Intel NNP
Corp. NNP
's POS
newest JJS
chip NN
, ,
the DT
486 CD
-- :
but CC
others NNS
apparently RB
have VBP
been VBN
caused VBN
by IN
Dell NNP
's POS
explosive JJ
growth NN
and CC
thinly RB
stretched VBD
resources NNS
. .

`` ``
They PRP
've VBP
got VBD
a DT
lot NN
of IN
different JJ
balls NNS
in IN
the DT
air NN
at IN
the DT
same JJ
time NN
, ,
'' ''
observes VBZ
Jim NNP
Poyner NNP
, ,
a DT
computer NN
securities NNS
analyst NN
with IN
Dallas-based JJ
William NNP
K. NNP
Woodruff NNP
& CC
Co NNP
. .

Mr. NNP
Dell NNP
, ,
meanwhile RB
, ,
concedes VBZ
the DT
company NN
was VBD
`` ``
definitely RB
too RB
optimistic JJ
'' ''
in IN
its PRP$
expectations NNS
. .

Product NN
delays NNS
, ,
however RB
, ,
have VBP
left VBN
Dell NNP
buffeted VBN
by IN
harsher JJR
competition NN
in IN
its PRP$
bread-and-butter JJ
line NN
of IN
desktop NN
computers NNS
, ,
as IN
powerhouse NN
competitors NNS
Compaq NNP
Computer NNP
Corp. NNP
and CC
International NNP
Business NNP
Machines NNP
Corp. NNP
price VB
their PRP$
PCs NNS
more RBR
aggressively RB
. .

The DT
result NN
has VBZ
been VBN
thinner JJR
margins NNS
, ,
which WDT
have VBP
been VBN
further RB
eroded VBN
by IN
an DT
ambitious JJ
research NN
and CC
development NN
effort NN
and CC
rapid JJ
overseas JJ
expansion NN
. .

Analyst NNP
James NNP
Weil NNP
of IN
the DT
Soundview NNP
Financial NNP
Group NNP
believes VBZ
Dell NNP
's POS
response NN
has VBZ
been VBN
to TO
place VB
increased VBN
emphasis NN
on IN
product NN
quality NN
, ,
`` ``
in IN
an DT
effort NN
to TO
rise VB
above IN
some DT
of IN
that DT
price NN
pressure NN
. .
'' ''

But CC
that DT
has VBZ
been VBN
the DT
key JJ
to TO
Compaq NNP
's POS
success NN
, ,
he PRP
adds VBZ
, ,
whereas IN
Dell NNP
carved VBD
out IN
its PRP$
market NN
niche NN
as IN
a DT
direct JJ
seller NN
of IN
low-cost JJ
but CC
reliable JJ
computers NNS
-- :
and CC
it PRP
might MD
be VB
too RB
late RB
in IN
the DT
game NN
for IN
a DT
shift NN
in IN
strategy NN
. .

In IN
national JJ
over-the-counter JJ
trading NN
, ,
Dell NNP
closed VBD
yesterday NN
at IN
$ $
6 CD
a DT
share NN
, ,
down RB
87.5 CD
cents NNS
. .

TransAtlantic NNP
Holdings NNP
PLC NNP
, ,
a DT
British-based JJ
, ,
South JJ
African-controlled JJ
financial JJ
services NNS
investment NN
group NN
, ,
and CC
France NNP
's POS
Societe NNP
Centrale NNP
Union NNP
des NNP
Assurances NNP
de FW
Paris NNP
reached VBD
an DT
accord NN
effectively RB
reducing VBG
chances NNS
of IN
an DT
unfriendly JJ
takeover NN
for IN
Sun NNP
Life NNP
Assurance NNP
Society NNP
PLC NNP
. .

In IN
a DT
joint JJ
statement NN
, ,
the DT
two CD
companies NNS
, ,
whose WP$
combined VBN
holdings NNS
equal JJ
52.7 CD
% NN
of IN
Sun NNP
Life NNP
's POS
ordinary JJ
shares NNS
, ,
said VBD
their PRP$
agreement NN
is VBZ
aimed VBN
at IN
reducing VBG
`` ``
the DT
uncertainty NN
and CC
instability NN
for IN
Sun NNP
Life NNP
that WDT
has VBZ
resulted VBN
from IN
two CD
major JJ
shareholders NNS
owning VBG
'' ''
a DT
controlling VBG
interest NN
in IN
the DT
company NN
. .

TransAtlantic NNP
, ,
whose WP$
Transol NNP
Investments NNP
Ltd. NNP
unit NN
owns VBZ
the DT
largest JJS
minority NN
stake NN
in IN
Sun NNP
Life NNP
, ,
has VBZ
agreed VBN
not RB
to TO
make VB
a DT
takeover NN
bid NN
for IN
the DT
British JJ
life NN
insurer NN
without IN
the DT
prior JJ
consent NN
of IN
the DT
French JJ
company NN
, ,
known VBN
as IN
UAP NNP
. .

In IN
return NN
, ,
the DT
agreement NN
would MD
force VB
UAP NNP
to TO
buy VB
TransAtlantic NNP
's POS
29.8 CD
% NN
holding VBG
in IN
Sun NNP
Life NNP
or CC
sell VB
its PRP$
22.9 CD
% NN
stake NN
to TO
TransAtlantic NNP
at IN
a DT
price NN
set VBN
by IN
Transatlantic NNP
. .

Pride NNP
Petroleum NNP
Services NNP
Inc. NNP
said VBD
it PRP
agreed VBD
to TO
buy VB
well-servicing JJ
assets NNS
of IN
two CD
companies NNS
and CC
expects VBZ
to TO
report VB
higher JJR
third-quarter JJ
revenue NN
and CC
earnings NNS
. .

In IN
the DT
year-earlier JJ
quarter NN
, ,
the DT
well-servicing JJ
contractor NN
had VBD
net JJ
income NN
of IN
$ $
319,000 CD
, ,
or CC
3 CD
cents NNS
a DT
share NN
, ,
on IN
revenue NN
of IN
about RB
$ $
15 CD
million CD
. .

Results NNS
for IN
the DT
earlier JJR
quarter NN
included VBD
a DT
$ $
100,000 CD
restructuring NN
charge NN
. .

Separately RB
, ,
the DT
Houston NNP
concern NN
said VBD
it PRP
signed VBD
letters NNS
of IN
intent NN
for IN
the DT
cash NN
and CC
stock NN
purchases NNS
of IN
a DT
total NN
of IN
29 CD
well-servicing JJ
rigs NNS
from IN
two CD
concerns NNS
located VBN
in IN
New NNP
Mexico NNP
and CC
California NNP
. .

It PRP
did VBD
n't RB
disclose VB
specifics NNS
but CC
said VBD
it PRP
expects VBZ
to TO
complete VB
the DT
purchases NNS
by IN
Nov. NNP
1 CD
. .

Schlumberger NNP
Ltd. NNP
, ,
New NNP
York NNP
, ,
reported VBD
third-quarter JJ
net JJ
income NN
edged VBD
up IN
as IN
growth NN
in IN
its PRP$
oil-field NN
services NNS
sector NN
offset VB
a DT
decline NN
in IN
interest NN
income NN
. .

The DT
lower JJR
interest NN
income NN
occurred VBD
because IN
Schlumberger NNP
spent VBD
$ $
1.2 CD
billion CD
buying VBG
back RB
its PRP$
stock NN
last JJ
year NN
. .

Net JJ
for IN
the DT
oil-field NN
services NNS
and CC
electronic JJ
measurements NNS
and CC
systems NNS
concern VBP
rose VBD
to TO
$ $
114.2 CD
million CD
, ,
or CC
48 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
112.2 CD
million CD
, ,
or CC
42 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Per-share JJ
earnings NNS
advanced VBD
14 CD
% NN
because IN
of IN
the DT
buy-back NN
. .

Revenue NN
declined VBD
6.3 CD
% NN
to TO
$ $
1.11 CD
billion CD
from IN
$ $
1.18 CD
billion CD
. .

But CC
excluding VBG
businesses NNS
acquired VBN
or CC
sold VBN
, ,
revenue NN
was VBD
flat JJ
at IN
about RB
$ $
1.24 CD
billion CD
. .

Nine-month JJ
net NN
fell VBD
9.5 CD
% NN
to TO
$ $
323.4 CD
million CD
, ,
or CC
$ $
1.36 CD
a DT
share NN
, ,
from IN
$ $
357.2 CD
million CD
, ,
or CC
$ $
1.32 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Revenue NN
dropped VBD
5.4 CD
% NN
to TO
$ $
3.48 CD
billion CD
from IN
$ $
3.68 CD
billion CD
. .

This DT
year NN
's POS
nine-month JJ
results NNS
include VBP
gains NNS
of IN
$ $
13 CD
million CD
, ,
or CC
five CD
cents NNS
a DT
share NN
, ,
from IN
the DT
sale NN
of IN
Schlumberger NNP
's POS
defense NN
systems NNS
business NN
, ,
and CC
$ $
22 CD
million CD
, ,
or CC
nine CD
cents NNS
a DT
share NN
, ,
from IN
an DT
award NN
by IN
the DT
IranU.S NNP
. .
Claims NNP
Tribunal NNP
. .

The DT
year-earlier JJ
nine CD
months NNS
include VBP
a DT
gain NN
of IN
$ $
35 CD
million CD
, ,
or CC
13 CD
cents NNS
a DT
share NN
, ,
from IN
sale NN
of IN
the DT
company NN
's POS
Electricity NNP
Control NNP
& CC
Transformers NNPS
division NN
. .

NEW NNP
ENGLAND NNP
CRITICAL NNP
CARE NNP
Inc. NNP
offered VBD
$ $
35 CD
million CD
in IN
convertible JJ
subordinated VBN
debentures NNS
through IN
Morgan NNP
Stanley NNP
& CC
Co. NNP
and CC
Prudential-Bache NNP
Capital NNP
Funding NNP
. .

The DT
debentures NNS
, ,
due JJ
in IN
2014 CD
, ,
have VBP
a DT
coupon NN
of IN
7 CD
3\/4 CD
% NN
, ,
payable JJ
semiannually RB
. .

The DT
debentures NNS
may MD
be VB
converted VBN
into IN
common JJ
stock NN
of IN
the DT
Westborough NNP
, ,
Mass. NNP
, ,
home NN
health NN
care NN
concern NN
at IN
$ $
52.50 CD
a DT
share NN
. .

Proceeds NNS
will MD
be VB
used VBN
for IN
working VBG
capital NN
and CC
general JJ
corporate JJ
purposes NNS
, ,
including VBG
expansion NN
of IN
the DT
company NN
's POS
operations NNS
. .

The DT
French JJ
building NN
group NN
Dumez NNP
S.A. NNP
said VBD
profit NN
jumped VBD
70 CD
% NN
in IN
the DT
first JJ
half NN
of IN
1989 CD
, ,
partly RB
on IN
the DT
strength NN
of IN
nonrecurring VBG
gains NNS
from IN
a DT
share NN
issue NN
by IN
its PRP$
Canadian JJ
unit NN
. .

Dumez NNP
said VBD
group NN
profit NN
after IN
payments NNS
to TO
minority NN
interests NNS
rose VBD
to TO
252 CD
million CD
francs NNS
-LRB- (
$ $
40.1 CD
million CD
-RRB- )
from IN
148 CD
million CD
a DT
year NN
earlier RBR
. .

Revenue NN
rose VBD
40 CD
% NN
to TO
13.32 CD
billion CD
francs NNS
from IN
9.53 CD
billion CD
. .

The DT
group NN
noted VBD
that IN
75 CD
million CD
francs NNS
of IN
the DT
advance NN
reflected VBD
a DT
one-time JJ
gain NN
from IN
the DT
June NNP
offering NN
by IN
its PRP$
United NNP
Westburne NNP
unit NN
in IN
Canada NNP
. .
It PRP
did VBD
n't RB
say VB
if IN
its PRP$
year-earlier JJ
results NNS
were VBD
influenced VBN
significantly RB
by IN
nonrecurring VBG
elements NNS
. .

For IN
all DT
of IN
1988 CD
, ,
Dumez NNP
had VBD
group NN
profit NN
of IN
452 CD
million CD
francs NNS
after IN
payment NN
to TO
minority NN
interests NNS
. .

Revenue NN
was VBD
21.98 CD
billion CD
francs NNS
. .

The DT
group NN
has VBZ
n't RB
forecast VB
full-year JJ
earnings NNS
for IN
1989 CD
, ,
although IN
it PRP
said VBD
that IN
its PRP$
first-half JJ
results NNS
are VBP
n't RB
a DT
good JJ
indication NN
because IN
of IN
one-time JJ
elements NNS
and CC
the DT
seasonal JJ
nature NN
of IN
its PRP$
operations NNS
. .

Tuesday NNP
's POS
earthquake NN
will MD
depress VB
local JJ
real-estate NN
values NNS
in IN
the DT
short JJ
term NN
and CC
force NN
companies NNS
to TO
reconsider VB
expanding VBG
in IN
or CC
relocating VBG
to TO
the DT
Bay NNP
Area NNP
and CC
California NNP
, ,
real-estate NN
and CC
relocation NN
specialists NNS
said VBD
. .

Few JJ
specialists NNS
said VBD
they PRP
expect VBP
the DT
quake NN
to TO
have VB
much NN
of IN
an DT
effect NN
on IN
most RBS
California NNP
property NN
values NNS
. .

But CC
real-estate NN
experts NNS
and CC
brokers NNS
said VBD
the DT
quake NN
undoubtedly RB
will MD
drag VB
down RB
prices VBZ
in IN
neighborhoods NNS
built VBN
on IN
less RBR
stable JJ
ground NN
, ,
especially RB
in IN
the DT
Bay NNP
Area NNP
. .

`` ``
California NNP
prices NNS
were VBD
already RB
coming VBG
down RB
. .

This DT
is VBZ
n't RB
going VBG
to TO
help VB
, ,
'' ''
said VBD
Kenneth NNP
T. NNP
Rosen NNP
, ,
chairman NN
of IN
the DT
Center NNP
for IN
Real NNP
Estate NNP
and CC
Urban NNP
Economics NNP
at IN
the DT
University NNP
of IN
California NNP
at IN
Berkeley NNP
. .

State NN
housing NN
prices NNS
, ,
at IN
a DT
median JJ
$ $
201,028 CD
, ,
have VBP
declined VBN
in IN
recent JJ
months NNS
because IN
of IN
potential JJ
buyers NNS
' POS
inability NN
to TO
afford VB
homes NNS
. .

Mr. NNP
Rosen NNP
, ,
among IN
others NNS
, ,
suggested VBD
that IN
the DT
quake NN
, ,
the DT
strongest JJS
since IN
the DT
1906 CD
temblor NN
that WDT
struck VBD
San NNP
Francisco NNP
, ,
will MD
in IN
the DT
short JJ
term NN
create VB
a DT
two-tier JJ
price NN
system NN
for IN
quake-prone JJ
communities NNS
, ,
with IN
dwellings NNS
built VBN
on IN
sturdy JJ
ground NN
likely JJ
to TO
demand VB
higher JJR
prices NNS
. .

One CD
San NNP
Francisco NNP
neighborhood NN
likely JJ
to TO
test VB
Mr. NNP
Rosen NNP
's POS
theory NN
soon RB
is VBZ
the DT
city NN
's POS
fashionable JJ
Marina NNP
district NN
, ,
which WDT
boasts VBZ
some DT
of IN
the DT
highest JJS
home NN
prices NNS
in IN
the DT
state NN
. .

The DT
district NN
, ,
built VBN
on IN
landfill NN
, ,
suffered VBD
heavy JJ
quake NN
damage NN
, ,
including VBG
collapsed VBN
buildings NNS
. .

Yesterday NN
, ,
the DT
city NN
demolished VBN
two CD
dwellings NNS
in IN
the DT
district NN
because IN
of IN
severe JJ
structural JJ
damage NN
and CC
said VBD
as RB
many JJ
as IN
19 CD
of IN
the DT
district NN
's POS
350 CD
dwellings NNS
might MD
have VB
to TO
be VB
razed VBN
. .

Brokers NNS
agreed VBD
with IN
the DT
two-tier JJ
price NN
theory NN
. .

`` ``
My PRP$
gut NN
feeling NN
is VBZ
that IN
the DT
Marina NNP
properties NNS
will MD
be VB
affected VBN
, ,
'' ''
said VBD
Grace NNP
Perkins NNP
, ,
senior JJ
vice NN
president NN
at IN
Grubb NNP
& CC
Ellis NNP
Residential NNP
Brokerage NNP
Inc NNP
. .

Neither CC
she PRP
nor CC
other JJ
real-estate NN
executives NNS
and CC
brokers NNS
could MD
project VB
how WRB
much RB
less JJR
Marina NNP
properties NNS
might MD
bring VB
, ,
but CC
she PRP
said VBD
the DT
two-tier JJ
price NN
structure NN
would MD
affect VB
prices NNS
`` ``
for IN
a DT
while NN
. .
'' ''

Mr. NNP
Rosen NNP
said VBD
the DT
quake NN
will MD
revive VB
consumer NN
interest NN
in IN
a DT
little-publicized JJ
1972 CD
state NN
law NN
that WDT
requires VBZ
brokers NNS
to TO
disclose VB
to TO
potential JJ
buyers NNS
how WRB
close VB
a DT
property NN
sits VBZ
to TO
a DT
fault NN
line NN
. .

Because IN
of IN
the DT
size NN
of IN
the DT
California NNP
market NN
, ,
few JJ
relocation NN
specialists NNS
expect VBP
a DT
widespread JJ
corporate JJ
flight NN
in IN
the DT
quake NN
's POS
aftermath NN
. .

But CC
they PRP
said VBD
the DT
quake NN
will MD
force VB
some DT
companies NNS
to TO
relocate VB
or CC
expand VB
part NN
or CC
all DT
of IN
their PRP$
operations NNS
outside IN
the DT
state NN
. .

`` ``
What WP
you PRP
're VBP
going VBG
to TO
get VB
is VBZ
` ``
We PRP
do VBP
n't RB
want VB
to TO
put VB
all DT
of IN
our PRP$
eggs NNS
in IN
one CD
basket NN
' POS
theory NN
, ,
'' ''
said VBD
James NNP
H. NNP
Renzas NNP
, ,
president NN
of IN
Location NNP
Management NNP
Services NNP
Inc. NNP
, ,
a DT
Palo NNP
Alto NNP
, ,
Calif. NNP
, ,
relocation NN
concern NN
. .

Mr. NNP
Renzas NNP
, ,
among IN
others NNS
, ,
said VBD
the DT
quake NN
will MD
prod VB
companies NNS
in IN
certain JJ
industries NNS
, ,
like IN
semiconductors NNS
, ,
computers NNS
and CC
aerospace NN
, ,
to TO
consider VB
moving VBG
operations NNS
that WDT
involve VBP
particularly RB
sensitive JJ
machinery NN
to TO
locations NNS
outside IN
California NNP
. .

Because IN
of IN
the DT
quake NN
threat NN
, ,
`` ``
some DT
firms NNS
have VBP
evaluated VBN
what WP
the DT
cost NN
is VBZ
to TO
shore VB
up IN
their PRP$
buildings NNS
and CC
compared VBN
it PRP
with IN
the DT
cost NN
of IN
building NN
it PRP
elswehere NN
, ,
'' ''
he PRP
said VBD
. .

One CD
Southern NNP
California NNP
aerospace NN
firm NN
, ,
for IN
example NN
, ,
two CD
months NNS
ago RB
asked VBD
Location NNP
Management NNP
to TO
compare VB
the DT
costs NNS
of IN
reinforcing VBG
its PRP$
current JJ
building NN
against IN
earthquakes NNS
with IN
the DT
cost NN
of IN
building VBG
a DT
new JJ
structure NN
elsewhere RB
. .

A DT
new JJ
dwelling NN
would MD
cost VB
$ $
21 CD
million CD
, ,
Location NNP
Management NNP
found VBD
, ,
compared VBN
with IN
$ $
22 CD
million CD
to TO
make VB
the DT
present JJ
building NN
earthquake-proof JJ
. .

The DT
company NN
, ,
Mr. NNP
Renzas NNP
said VBD
, ,
has VBZ
n't RB
yet RB
determined VBN
what WP
to TO
do VB
. .

NATIONWIDE NNP
HEALTH NN
PROPERTIES NNPS
, ,
Pasadena NNP
, ,
Calif. NNP
, ,
said VBD
it PRP
would MD
n't RB
pay VB
its PRP$
fourth-quarter JJ
dividend NN
, ,
despite IN
a DT
44 CD
% NN
increase NN
in IN
third-quarter JJ
earnings NNS
, ,
to TO
$ $
3.5 CD
million CD
, ,
or CC
42 CD
cents NNS
a DT
share NN
. .

Net JJ
income NN
included VBD
a DT
gain NN
of IN
$ $
708,000 CD
on IN
asset NN
sales NNS
, ,
the DT
real JJ
estate NN
investment NN
trust NN
said VBD
. .

A DT
year NN
earlier RBR
, ,
Nationwide NNP
Health NNP
earned VBD
$ $
2.4 CD
million CD
, ,
or CC
29 CD
cents NNS
a DT
share NN
. .

Revenue NN
rose VBD
3 CD
% NN
to TO
$ $
9 CD
million CD
from IN
$ $
8.8 CD
million CD
. .

Nationwide NNP
Health NNP
said VBD
that IN
although IN
it PRP
has VBZ
the DT
cash NN
to TO
cover VB
the DT
25-cent-a-share JJ
dividend NN
, ,
its PRP$
banks NNS
have VBP
denied VBN
the DT
company NN
's POS
request NN
to TO
pay VB
it PRP
because IN
the DT
trust NN
has VBZ
n't RB
met VBN
certain JJ
terms NNS
. .

Nationwide NNP
Health NNP
said VBD
it PRP
has VBZ
`` ``
numerous JJ
financing NN
activities NNS
'' ''
under IN
way NN
to TO
remedy VB
the DT
problem NN
and CC
will MD
make VB
up IN
the DT
dividend NN
payment NN
later RB
if IN
possible JJ
. .

Aussedat NNP
Rey NNP
S.A. NNP
, ,
a DT
French JJ
paper NN
producer NN
, ,
said VBD
it PRP
concluded VBD
an DT
agreement NN
with IN
Japan NNP
's POS
Fuji NNP
Photo NNP
Film NNP
Co. NNP
that WDT
will MD
allow VB
Aussedat NNP
Rey NNP
to TO
manufacture VB
and CC
sell VB
thermal JJ
paper NN
using VBG
Fuji NNP
technology NN
. .

Aussedat NNP
Rey NNP
is VBZ
a DT
leading VBG
French JJ
maker NN
of IN
copying NN
and CC
electronic JJ
printing NN
paper NN
. .

Thermal JJ
paper NN
is VBZ
used VBN
in IN
facsimile NN
machines NNS
. .

Terms NNS
of IN
the DT
agreement NN
were VBD
n't RB
disclosed VBN
. .

Aussedat NNP
Rey NNP
's POS
move NN
follows VBZ
similar JJ
technology-licensing JJ
agreements NNS
between IN
Japanese JJ
producers NNS
of IN
thermal JJ
paper NN
and CC
European JJ
paper NN
groups NNS
. .

W.R. NNP
Grace NNP
& CC
Co. NNP
, ,
New NNP
York NNP
, ,
said VBD
its PRP$
earnings NNS
for IN
the DT
third JJ
quarter NN
nearly RB
doubled VBD
as IN
a DT
result NN
of IN
a DT
$ $
114.4 CD
million CD
pre-tax JJ
gain NN
from IN
restructuring VBG
its PRP$
energy NN
operations NNS
and CC
other JJ
adjustments NNS
. .

Net JJ
income NN
rose VBD
to TO
$ $
97.9 CD
million CD
, ,
or CC
$ $
1.15 CD
a DT
share NN
, ,
from IN
$ $
50.5 CD
million CD
, ,
or CC
60 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
increased VBN
7 CD
% NN
to TO
$ $
1.49 CD
billion CD
from IN
$ $
1.39 CD
billion CD
. .

The DT
gain NN
resulted VBD
from IN
the DT
sale NN
of IN
Grace NNP
Equipment NNP
Co. NNP
, ,
the DT
initial JJ
public JJ
offering NN
of IN
a DT
one-sixth JJ
interest NN
in IN
Grace NNP
Energy NNP
Corp. NNP
and CC
an DT
adjustment NN
in IN
the DT
carrying VBG
value NN
of IN
certain JJ
natural JJ
resource NN
assets NNS
not RB
part NN
of IN
Grace NNP
Energy NNP
. .

The DT
international JJ
specialty NN
chemical NN
company NN
's POS
earnings NNS
were VBD
hurt VBN
by IN
an DT
accrual NN
for IN
stock-appreciation NN
rights NNS
that WDT
reflected VBD
a DT
19 CD
% NN
increase NN
in IN
the DT
stock NN
price NN
, ,
and CC
higher JJR
interest NN
expenses NNS
. .

Anglo NNP
American NNP
Corp. NNP
of IN
South NNP
Africa NNP
Ltd. NNP
said VBD
the DT
third-quarter JJ
combined VBN
profit NN
of IN
its PRP$
six CD
gold NN
mines NNS
dropped VBD
8.5 CD
% NN
from IN
the DT
previous JJ
quarter NN
. .

Total JJ
net JJ
income NN
fell VBD
to TO
471.6 CD
million CD
rand NN
-LRB- (
$ $
178.0 CD
million CD
-RRB- )
from IN
515.4 CD
million CD
rand NN
in IN
the DT
June NNP
quarter NN
. .

Total JJ
gold NN
production NN
by IN
all DT
six CD
mines NNS
rose VBD
4 CD
% NN
to TO
63,971 CD
kilograms NNS
from IN
61,493 CD
kilograms NNS
in IN
the DT
previous JJ
quarter NN
. .

Doman NNP
Industries NNP
Ltd. NNP
said VBD
it PRP
increased VBD
its PRP$
stake NN
in IN
Western NNP
Forest NNP
Products NNP
Ltd. NNP
to TO
56 CD
% NN
from IN
22 CD
% NN
, ,
through IN
a DT
two-step JJ
transaction NN
valued VBN
at IN
137 CD
million CD
Canadian JJ
dollars NNS
-LRB- (
$ $
US116.7 CD
million CD
-RRB- )
. .

Doman NNP
is VBZ
based VBN
in IN
Duncan NNP
, ,
British NNP
Columbia NNP
. .

The DT
company NN
, ,
founded VBN
and CC
controlled VBN
by IN
Harbanse NNP
Doman NNP
, ,
its PRP$
chairman NN
and CC
president NN
, ,
said VBD
the DT
purchase NN
would MD
make VB
it PRP
Canada NNP
's POS
10th JJ
largest JJS
forest NN
products NNS
company NN
. .

Under IN
terms NNS
of IN
the DT
transaction NN
, ,
which WDT
was VBD
proposed VBN
in IN
June NNP
, ,
Doman NNP
said VBD
it PRP
acquired VBD
International NNP
Forest NNP
Products NNP
Ltd. NNP
's POS
22 CD
% NN
stake NN
in IN
Western NNP
Forest NNP
, ,
and CC
Western NNP
Forest NNP
, ,
in IN
a DT
related VBN
transaction NN
, ,
bought VBD
back RB
a DT
22 CD
% NN
interest NN
in IN
the DT
company NN
from IN
Fletcher NNP
Challenge NNP
Canada NNP
Ltd NNP
. .

The DT
Fletcher NNP
Challenge NNP
Canada NNP
stake NN
was VBD
then RB
canceled VBN
, ,
Doman NNP
said VBD
, ,
raising VBG
Doman NNP
's POS
interest NN
in IN
Western NNP
Forest NNP
to TO
56 CD
% NN
. .

Doman NNP
said VBD
it PRP
was VBD
also RB
granted VBN
an DT
option NN
to TO
acquire VB
the DT
remaining VBG
44 CD
% NN
interest NN
in IN
Western NNP
Forest NNP
, ,
which WDT
is VBZ
currently RB
held VBN
by IN
two CD
Canadian JJ
banks NNS
. .

International NNP
Forest NNP
, ,
Western NNP
Forest NNP
, ,
and CC
Fletcher NNP
Challenge NNP
Canada NNP
are VBP
Vancouver-based JJ
forest NN
products NNS
concerns NNS
. .

The DT
Canadian JJ
government NN
introduced VBN
in IN
the DT
House NNP
of IN
Commons NNP
legislation NN
to TO
extend VB
federal JJ
regulatory JJ
authority NN
over IN
provincial JJ
government-owned JJ
telephone NN
utilities NNS
in IN
Alberta NNP
, ,
Saskatchewan NNP
and CC
Manitoba NNP
. .
The DT
legislation NN
would MD
open VB
the DT
way NN
for IN
more JJR
telephone NN
services NNS
and CC
more JJR
competition NN
in IN
the DT
telephone NN
business NN
in IN
the DT
three CD
provinces NNS
, ,
federal JJ
officials NNS
said VBD
. .

The DT
federal JJ
government NN
initiative NN
follows VBZ
a DT
recent JJ
Canadian NNP
Supreme NNP
Court NNP
decision NN
that WDT
held VBD
that IN
the DT
major JJ
telephone NN
companies NNS
in IN
Alberta NNP
, ,
Saskatchewan NNP
and CC
Manitoba NNP
and CC
in IN
the DT
Atlantic NNP
coast NN
provinces NNS
were VBD
interprovincial JJ
undertakings NNS
and CC
subject NN
to TO
federal JJ
legislative JJ
authority NN
. .

Prior RB
to TO
the DT
ruling VBG
the DT
federal JJ
government NN
had VBD
regulated VBN
only RB
the DT
telephone NN
companies NNS
in IN
Quebec NNP
, ,
Ontario NNP
, ,
British NNP
Columbia NNP
and CC
the DT
Northwest NNP
Territories NNP
. .

The DT
governments NNS
of IN
Alberta NNP
, ,
Saskatchewan NNP
and CC
Manitoba NNP
have VBP
strongly RB
opposed VBN
federal JJ
regulation NN
of IN
their PRP$
telephone NN
companies NNS
. .

The DT
extension NN
of IN
federal JJ
regulatory JJ
authority NN
over IN
telephone NN
utilities NNS
in IN
the DT
Atlantic NNP
provinces NNS
has VBZ
n't RB
required VBN
special JJ
legislation NN
because IN
they PRP
are VBP
investor-owned JJ
. .

Amdura NNP
Corp. NNP
said VBD
its PRP$
bank NN
group NN
, ,
led VBN
by IN
Chicago-based JJ
Continental NNP
Bank NNP
, ,
agreed VBD
to TO
extend VB
its PRP$
$ $
40 CD
million CD
bridge NN
loan NN
until IN
March NNP
31 CD
, ,
1990 CD
, ,
and CC
gave VBD
it PRP
a DT
new JJ
$ $
30 CD
million CD
credit NN
line NN
. .
Under IN
terms NNS
of IN
the DT
loan NN
agreement NN
, ,
Amdura NNP
said VBD
it PRP
will MD
omit VB
the DT
next JJ
quarterly JJ
dividends NNS
on IN
its PRP$
Series NNP
A DT
, ,
B NNP
, ,
C NN
and CC
D NN
preferred JJ
shares NNS
, ,
which WDT
are VBP
due JJ
Nov. NNP
15 CD
. .

Since IN
the DT
preferred JJ
stock NN
is VBZ
cumulative JJ
, ,
Amdura NNP
said VBD
it PRP
will MD
pay VB
all DT
omitted VBN
dividends NNS
, ,
which WDT
range VBP
from IN
$ $
1.19 CD
to TO
$ $
4.88 CD
a DT
share NN
, ,
when WRB
debt-reduction NN
requirements NNS
have VBP
been VBN
met VBN
. .

Amdura NNP
's POS
bridge NN
loan NN
, ,
part NN
of IN
the DT
financing NN
for IN
Amdura NNP
's POS
acquisition NN
of IN
CoastAmerica NNP
in IN
December NNP
1988 CD
, ,
was VBD
to TO
come VB
due JJ
next JJ
Friday NNP
. .

The DT
company NN
's POS
new JJ
management NN
, ,
which WDT
took VBD
control NN
of IN
Amdura NNP
's POS
board NN
after IN
a DT
consent NN
solicitation NN
last JJ
month NN
, ,
wanted VBD
to TO
extend VB
the DT
loan NN
while IN
it PRP
tries VBZ
to TO
sell VB
two CD
units NNS
. .

Proceeds NNS
from IN
those DT
sales NNS
will MD
be VB
used VBN
to TO
reduce VB
debt NN
. .

Amdura NNP
, ,
a DT
Denver NNP
hardware NN
and CC
automotive JJ
distributor NN
, ,
said VBD
the DT
new JJ
credit NN
agreement NN
will MD
provide VB
the DT
working VBG
capital NN
needed VBN
to TO
meet VB
ongoing JJ
requirements NNS
. .

Three CD
savings-and-loan JJ
institutions NNS
in IN
Kansas NNP
and CC
Texas NNP
were VBD
added VBN
to TO
the DT
Resolution NNP
Trust NNP
Corp. NNP
's POS
conservatorship NN
program NN
after IN
federal JJ
regulators NNS
declared VBD
the DT
thrifts NNS
insolvent JJ
and CC
named VBD
the DT
RTC NNP
their PRP$
receiver NN
. .

The DT
deposits NNS
, ,
assets NNS
and CC
certain JJ
liabilities NNS
of IN
the DT
three CD
thrifts NNS
were VBD
transferred VBN
to TO
newly RB
chartered JJ
federal JJ
mutual JJ
institutions NNS
. .

The DT
three CD
institutions NNS
are VBP
: :
Mid NNP
Kansas NNP
Federal NNP
Savings NNP
& CC
Loan NNP
Association NNP
, ,
Wichita NNP
, ,
which WDT
had VBD
$ $
830.5 CD
million CD
in IN
assets NNS
; :
Valley NNP
Federal NNP
Savings NNP
& CC
Loan NNP
Association NNP
of IN
McAllen NNP
, ,
McAllen NNP
, ,
Texas NNP
, ,
with IN
$ $
582.6 CD
million CD
in IN
assets NNS
; :
and CC
Surety NNP
Savings NNP
Association NNP
, ,
El NNP
Paso NNP
, ,
with IN
$ $
309.3 CD
million CD
in IN
assets NNS
. .

The DT
three CD
insolvent JJ
thrifts NNS
will MD
maintain VB
normal JJ
business NN
hours NNS
and CC
operations NNS
under IN
RTC-appointed JJ
managing NN
agents NNS
, ,
while IN
the DT
RTC NNP
tries VBZ
to TO
negotiate VB
permanent JJ
resolutions NNS
. .

Separately RB
, ,
Century NNP
Bank NNP
, ,
Phoenix NNP
, ,
Ariz. NNP
, ,
was VBD
closed VBN
by IN
Arizona NNP
banking NN
officials NNS
. .

The DT
Federal NNP
Deposit NNP
Insurance NNP
Corp. NNP
approved VBD
the DT
assumption NN
of IN
Century NNP
's POS
deposits NNS
and CC
fully RB
secured VBN
liabilities NNS
by IN
a DT
newly RB
chartered JJ
subsidiary NN
of IN
Valley NNP
Capital NNP
Corp. NNP
, ,
Las NNP
Vegas NNP
. .

The DT
new JJ
institution NN
is VBZ
also RB
called VBN
Century NNP
Bank NNP
, ,
and CC
the DT
failed VBN
bank NN
's POS
five CD
offices NNS
will MD
reopen VB
today NN
. .

The DT
failed VBN
bank NN
had VBD
assets NNS
of IN
about RB
$ $
129.6 CD
million CD
. .

The DT
newly RB
chartered JJ
bank NN
will MD
assume VB
about RB
$ $
125.7 CD
million CD
in IN
10,300 CD
deposit NN
accounts NNS
and CC
pay VB
the DT
FDIC NNP
a DT
purchase NN
premium NN
of IN
$ $
2.9 CD
million CD
. .

It PRP
also RB
will MD
buy VB
about RB
$ $
91.7 CD
million CD
of IN
assets NNS
, ,
and CC
the DT
FDIC NNP
will MD
advance VB
$ $
31.8 CD
million CD
to TO
the DT
assuming VBG
bank NN
. .

Lonrho NNP
PLC NNP
of IN
Britain NNP
is VBZ
to TO
come VB
to TO
the DT
rescue NN
of IN
the DT
French JJ
distribution NN
group NN
Societe NNP
Commerciale NNP
de FW
l'Ouest NNP
Africaine NNP
in IN
an DT
operation NN
that WDT
has VBZ
been VBN
engineered VBN
with IN
the DT
Paribas NNP
financial JJ
group NN
, ,
Societe NNP
Commerciale NNP
's POS
main JJ
shareholder NN
. .

The DT
announcement NN
came VBD
as IN
Societe NNP
Commerciale NNP
, ,
a DT
trading NN
company NN
with IN
activities NNS
in IN
more JJR
than IN
40 CD
countries NNS
, ,
reported VBD
a DT
loss NN
of IN
320.5 CD
million CD
francs NNS
-LRB- (
$ $
51 CD
million CD
-RRB- )
for IN
the DT
first JJ
six CD
months NNS
of IN
this DT
year NN
, ,
partly RB
because IN
of IN
provisions NNS
on IN
future NN
losses NNS
. .

The DT
rescue NN
operation NN
will MD
consist VB
of IN
a DT
capital NN
boost NN
for IN
Societe NNP
Commerciale NNP
of IN
one CD
billion CD
francs NNS
through IN
issues NNS
of IN
new JJ
shares NNS
and CC
convertible JJ
bonds NNS
. .

Cie NNP
. .
Financiere NNP
de FW
Paribas NNP
said VBD
it PRP
intends VBZ
to TO
transfer VB
its PRP$
30 CD
% NN
shareholding NN
in IN
Societe NNP
Commerciale NNP
to TO
a DT
new JJ
company NN
which WDT
will MD
be VB
jointly RB
owned VBN
with IN
Lonrho NNP
. .

This DT
will MD
give VB
Paribas NNP
and CC
Lonrho NNP
joint JJ
control NN
of IN
Societe NNP
Commerciale NNP
. .

Paribas NNP
said VBD
Lonrho NNP
will MD
participate VB
in IN
the DT
forthcoming JJ
capital NN
boost NN
for IN
Societe NNP
Commerciale NNP
. .

International NNP
Business NNP
Machines NNP
Corp. NNP
and CC
MCA NNP
Inc. NNP
said VBD
they PRP
agreed VBD
to TO
sell VB
their PRP$
Discovision NNP
Associates NNPS
joint JJ
venture NN
to TO
U.S. NNP
units NNS
of IN
Pioneer NNP
Electronic NNP
Corp. NNP
for IN
$ $
200 CD
million CD
. .

The DT
joint JJ
venture NN
licenses VBZ
a DT
portfolio NN
of IN
about IN
1,400 CD
patents NNS
and CC
patent NN
applications NNS
relating VBG
to TO
optical-disk JJ
recording NN
technology NN
. .

IBM NNP
and CC
MCA NNP
formed VBD
Discovision NNP
in IN
1979 CD
to TO
make VB
laser-read JJ
optical JJ
products NNS
. .

But CC
the DT
partners NNS
did VBD
n't RB
believe VB
the DT
market NN
for IN
the DT
systems NNS
was VBD
developing VBG
as RB
rapidly RB
as IN
they PRP
had VBD
hoped VBN
. .

After IN
reportedly RB
investing VBG
$ $
100 CD
million CD
in IN
the DT
business NN
, ,
Discovision NNP
ceased VBD
manufacturing NN
operations NNS
in IN
1982 CD
and CC
sold VBN
many NN
of IN
its PRP$
assets NNS
to TO
Tokyo-based NNP
Pioneer NNP
, ,
among IN
others NNS
. .

Discovision NNP
now RB
has VBZ
world-wide JJ
license NN
agreements NNS
with IN
major JJ
manufacturers NNS
covering VBG
CD NNP
audio JJ
disks NNS
, ,
audio JJ
disk NN
players NNS
, ,
videodisks NNS
and CC
videodisk NN
players NNS
. .

It PRP
also RB
licenses VBZ
optically RB
based VBN
data NNS
storage NN
and CC
retrieval NN
devices NNS
. .

James NNP
N. NNP
Fiedler NNP
, ,
president NN
of IN
Discovision NNP
and CC
a DT
vice NN
president NN
of IN
MCA NNP
, ,
said VBD
that IN
IBM NNP
and CC
MCA NNP
had VBD
n't RB
planned VBN
to TO
sell VB
the DT
joint JJ
venture NN
, ,
which WDT
is VBZ
now RB
profitable JJ
, ,
but CC
that IN
Pioneer NNP
approached VBD
Discovision NNP
earlier RBR
this DT
year NN
. .

He PRP
said VBD
it PRP
is VBZ
n't RB
certain JJ
whether IN
Discovision NNP
's POS
current JJ
management NN
will MD
remain VB
when WRB
Pioneer NNP
buys VBZ
the DT
company NN
. .
The DT
agreement NN
is VBZ
contingent JJ
on IN
certain JJ
government NN
approvals NNS
and CC
should MD
be VB
completed VBN
later RB
this DT
year NN
. .

Tokyo NNP
stocks NNS
closed VBD
higher JJR
in IN
moderately RB
active JJ
but CC
directionless JJ
trading NN
as IN
the DT
recent JJ
anxiety NN
in IN
world NN
stock NN
markets NNS
continued VBD
to TO
fade VB
. .

London JJ
shares NNS
also RB
closed VBD
firmer JJR
in IN
thin JJ
trading NN
driven VBN
largely RB
by IN
technical JJ
factors NNS
and CC
support NN
from IN
a DT
new JJ
Wall NNP
Street NNP
rally NN
. .

Prices NNS
also RB
rose VBD
on IN
almost RB
every DT
other JJ
major JJ
exchange NN
in IN
Europe NNP
, ,
Asia NNP
and CC
the DT
Pacific NNP
. .

Tokyo NNP
's POS
Nikkei NNP
index NN
of IN
225 CD
issues NNS
, ,
which WDT
gained VBD
111.48 CD
points NNS
Wednesday NNP
, ,
climbed VBD
266.66 CD
, ,
or CC
0.76 CD
% NN
, ,
to TO
35374.22 CD
. .

Volume NN
on IN
the DT
first JJ
section NN
was VBD
estimated VBN
at IN
800 CD
million CD
shares NNS
, ,
compared VBN
with IN
841 CD
million CD
Wednesday NNP
. .

Winners NNS
outnumbered VBD
losers NNS
645-293 CD
, ,
with IN
186 CD
issues NNS
unchanged JJ
. .

In IN
early JJ
trading NN
in IN
Tokyo NNP
Friday NNP
, ,
the DT
Nikkei NNP
index NN
rose VBD
170.65 CD
points NNS
, ,
to TO
35544.87 CD
. .

On IN
Thursday NNP
, ,
the DT
Tokyo NNP
Stock NNP
Price NNP
Index NNP
of IN
all DT
issues NNS
listed VBN
in IN
the DT
first JJ
section NN
, ,
which WDT
gained VBD
0.24 CD
point NN
Wednesday NNP
, ,
was VBD
up IN
22.78 CD
, ,
or CC
0.86 CD
% NN
, ,
at IN
2665.66 CD
. .

The DT
morning NN
session NN
was VBD
dominated VBN
by IN
individuals NNS
and CC
dealers NNS
, ,
but CC
some DT
institutions NNS
participated VBD
in IN
the DT
afternoon NN
, ,
encouraged VBN
by IN
the DT
market NN
's POS
firmness NN
, ,
traders NNS
said VBD
. .

Sentiment NN
was VBD
helped VBN
by IN
the DT
small JJ
gain NN
made VBN
by IN
New NNP
York NNP
stocks NNS
Wednesday NNP
despite IN
anxiety NN
over IN
possible JJ
effects NNS
of IN
the DT
major JJ
earthquake NN
that WDT
struck VBD
northern JJ
California NNP
Tuesday NNP
. .

Having VBG
survived VBN
both DT
last JJ
Friday NNP
's POS
6.9 CD
% NN
Wall NNP
Street NNP
plunge NN
and CC
the DT
immediate JJ
aftermath NN
of IN
the DT
San NNP
Francisco NNP
Bay NNP
area NN
earthquake NN
, ,
Tokyo NNP
market NN
participants NNS
expressed VBD
relief NN
that DT
trading NN
had VBD
returned VBN
to TO
normal JJ
. .

Hiroyuki NNP
Murai NNP
, ,
general JJ
manager NN
of IN
the DT
stock NN
trading NN
division NN
at IN
Nikko NNP
Securities NNP
, ,
said VBD
that IN
after IN
looking VBG
at IN
the DT
reasons NNS
for IN
Friday NNP
's POS
Wall NNP
Street NNP
plunge NN
, ,
participants NNS
realized VBD
that IN
the DT
Tokyo NNP
and CC
New NNP
York NNP
markets NNS
have VBP
different JJ
economic JJ
fundamentals NNS
. .

This DT
conclusion NN
, ,
he PRP
said VBD
, ,
restored VBD
the DT
credibility NN
of IN
Tokyo NNP
stocks NNS
. .

Yoshiaki NNP
Mitsuoka NNP
, ,
head NN
of IN
the DT
investment NN
information NN
department NN
at IN
Daiwa NNP
Investment NNP
Trust NNP
& CC
Management NNP
, ,
said VBD
that IN
if IN
New NNP
York NNP
stocks NNS
just RB
fluctuate VBP
in IN
or CC
near IN
their PRP$
current JJ
range NN
, ,
the DT
Tokyo NNP
market NN
will MD
remain VB
firm NN
with IN
a DT
moderately RB
upward JJ
trend NN
for IN
the DT
rest NN
of IN
the DT
year NN
. .

But CC
traders NNS
said VBD
the DT
market NN
lacks VBZ
a DT
base NN
on IN
which WDT
to TO
set VB
long-term JJ
buying NN
strategy NN
, ,
as IN
the DT
future NN
direction NN
of IN
U.S. NNP
interest NN
rates NNS
remains VBZ
unclear JJ
. .

`` ``
Investor NNP
interest NN
switches NNS
back RB
and CC
forth RB
ceaselessly RB
as IN
they PRP
are VBP
unable JJ
to TO
shift VB
their PRP$
weight NN
to TO
one CD
side NN
for IN
sure JJ
, ,
'' ''
Mr. NNP
Mitsuoka NNP
of IN
Daiwa NNP
Investment NNP
Trust NNP
said VBD
. .

Many JJ
of IN
Wednesday NNP
's POS
winners NNS
were VBD
losers NNS
yesterday NN
as IN
investors NNS
quickly RB
took VBD
profits NNS
and CC
rotated VBN
their PRP$
buying NN
to TO
other JJ
issues NNS
, ,
traders NNS
said VBD
. .

Pharmaceuticals NNP
made VBD
across-the-board JJ
advances NNS
. .

Fujisawa NNP
Pharmaceutical NNP
gained VBD
130 CD
to TO
1,930 CD
yen NN
-LRB- (
$ $
13.64 CD
-RRB- )
a DT
share NN
, ,
Mochida NNP
Pharmaceutical NNP
was VBD
up IN
150 CD
at IN
4,170 CD
, ,
and CC
Eisai NNP
advanced VBD
60 CD
to TO
2,360 CD
. .

Housing NN
issues NNS
were VBD
boosted VBN
by IN
a DT
report NN
that IN
Daiwa NNP
House NNP
expects VBZ
to TO
post VB
43 CD
% NN
higher JJR
earnings NNS
for IN
its PRP$
latest JJS
fiscal JJ
year NN
, ,
traders NNS
said VBD
. .

Daiwa NNP
House NNP
advanced VBD
100 CD
to TO
2,610 CD
, ,
Misawa NNP
Homes NNP
was VBD
up IN
60 CD
at IN
2,940 CD
, ,
and CC
Sekisui NNP
House NNP
gained VBD
100 CD
to TO
2,490 CD
. .

Leading VBG
construction NN
companies NNS
also RB
attracted VBN
interest NN
for IN
their PRP$
strong JJ
earnings NNS
outlooks NNS
, ,
traders NNS
said VBD
. .

They PRP
and CC
many JJ
other JJ
major JJ
Japanese JJ
corporations NNS
will MD
issue VB
results NNS
soon RB
for IN
the DT
fiscal JJ
first JJ
half NN
ended VBN
Sept. NNP
30 CD
. .

Ohbayashi NNP
was VBD
up IN
60 CD
to TO
close VB
at IN
1,680 CD
, ,
Shimizu NNP
gained VBD
50 CD
to TO
2,120 CD
, ,
and CC
Kumagai-Gumi NNP
advanced VBD
40 CD
to TO
1,490 CD
. .

Other JJ
winners NNS
included VBD
real JJ
estate NN
issues NNS
Mitsubishi NNP
Estate NNP
, ,
which WDT
closed VBD
at IN
2,500 CD
, ,
up IN
130 CD
, ,
and CC
Mitsui NNP
Real NNP
Estate NNP
Development NNP
, ,
which WDT
gained VBD
100 CD
to TO
2,890 CD
. .

Steel NN
shares NNS
fell VBD
back RB
after IN
advancing VBG
for IN
three CD
days NNS
. .

Kawasaki NNP
Steel NNP
was VBD
down RB
11 CD
at IN
788 CD
, ,
Kobe NNP
Steel NNP
lost VBD
5 NN
to TO
723 CD
, ,
and CC
Nippon NNP
Steel NNP
slipped VBD
6 CD
to TO
729 CD
. .

Mitsubishi NNP
Rayon NNP
, ,
a DT
leading VBG
advancer NN
Wednesday NNP
, ,
fell VBD
44 CD
to TO
861 CD
as IN
investors NNS
grabbed VBD
profits NNS
. .

London NNP
's POS
Financial NNP
Times-Stock NNP
Exchange NNP
100-share JJ
index NN
finished VBD
19.2 CD
points NNS
higher JJR
at IN
2189.3 CD
. .

The DT
Financial NNP
Times NNP
30-share JJ
index NN
ended VBD
13.6 CD
higher JJR
at IN
1772.1 CD
. .

Volume NN
continued VBD
to TO
ease VB
from IN
the DT
active JJ
dealings NNS
at IN
the DT
start NN
of IN
the DT
week NN
. .

Turnover NN
was VBD
382.9 CD
million CD
shares NNS
, ,
compared VBN
with IN
449.3 CD
million CD
Wednesday NNP
. .

Dealers NNS
said VBD
the DT
market NN
was VBD
underpinned VBN
by IN
a DT
squeeze NN
in IN
FT-SE NNP
100 CD
stocks NNS
, ,
particularly RB
among IN
market-makers NNS
seeking VBG
shares NNS
that WDT
had VBD
been VBN
hit VBN
hard JJ
in IN
recent JJ
weeks NNS
, ,
such JJ
as IN
retailers NNS
and CC
building-related JJ
concerns NNS
. .

But CC
despite IN
the DT
flurry NN
of IN
interest NN
in IN
those DT
shares NNS
, ,
dealers NNS
said VBD
, ,
the DT
market NN
remains VBZ
nervous JJ
about IN
Wall NNP
Street NNP
's POS
volatility NN
and CC
high JJ
U.K. NNP
interest NN
rates NNS
. .
U.K. JJ
money NN
supply NN
figures NNS
for IN
September NNP
, ,
released VBN
yesterday NN
, ,
showed VBD
continued VBN
growth NN
in IN
corporate JJ
and CC
personal JJ
lending NN
, ,
which WDT
will MD
keep VB
pressure NN
on IN
the DT
government NN
to TO
maintain VB
tight JJ
credit NN
. .

Among IN
the DT
stocks NNS
featured VBN
in IN
the DT
market-makers NNS
' POS
squeeze NN
was VBD
Sears NNP
, ,
which WDT
closed VBD
at IN
107 CD
pence NN
-LRB- (
$ $
1.70 CD
-RRB- )
a DT
share NN
, ,
up IN
3 CD
. .

General NNP
Universal NNP
Stores NNPS
, ,
another DT
top-tier JJ
stock NN
hit VBD
recently RB
by IN
concerns NNS
over IN
retail JJ
demand NN
in IN
the DT
face NN
of IN
high JJ
interest NN
rates NNS
, ,
gained VBD
20 CD
to TO
# #
10.44 CD
. .

Storehouse NNP
gained VBD
2 CD
to TO

Another DT
active JJ
FT-SE NNP
100 CD
stock NN
was VBD
clothing NN
and CC
furniture NN
retailer NN
Burton NNP
, ,
which WDT
gained VBD
6 CD
to TO
196 CD
. .

Insurers NNS
recovered VBD
ground NN
again RB
on IN
market-maker NN
demand NN
and CC
speculative JJ
buying NN
linked VBN
to TO
talk VB
of IN
mergers NNS
in IN
the DT
industry NN
before IN
the DT
European NNP
Community NNP
's POS
planned VBN
market NN
unification NN
in IN

Royal NNP
Insurance NNP
was VBD
the DT
sector NN
's POS
hottest JJS
issue NN
, ,
ending VBG
15 CD
higher JJR
at IN
465 CD
. .

Sun NNP
Alliance NNP
fell VBD
1 CD
to TO
close VB
at IN
289 CD
, ,
and CC
General NNP
Accident NNP
jumped VBD
10 CD
to TO
# #
10.13 CD
. .
B.A.T NNP
Industries NNPS
surged VBD
in IN
afternoon NN
dealings NNS
after IN
its PRP$
shareholders NNS
approved VBD
a DT
plan NN
to TO
dispose VB
of IN
its PRP$
U.S. NNP
and CC
U.K. NNP
retailing NN
operations NNS
to TO
fend VB
off IN
Hoylake NNP
Investment NNP
's POS
# #
13.4 CD
billion CD
-LRB- (
$ $
21.33 CD
billion CD
-RRB- )
hostile JJ
bid NN
. .

With IN
the DT
company NN
also RB
exercising VBG
a DT
plan NN
to TO
buy VB
back RB
as RB
many JJ
as IN
10 CD
% NN
of IN
its PRP$
shares NNS
outstanding JJ
, ,
B.A.T NNP
closed VBD
at IN
783 CD
, ,
up IN
27 CD
. .

Turnover NN
was VBD
6.8 CD
million CD
shares NNS
, ,
including VBG
about IN
four CD
million CD
shares NNS
traded VBN
in IN
the DT
afternoon NN
after IN
the DT
shareholders NNS
' POS
meeting NN
. .

B.A.T NNP
said VBD
it PRP
purchased VBD
2.5 CD
million CD
shares NNS
at IN
785 CD
. .

In IN
other JJ
European JJ
markets NNS
, ,
shares NNS
closed VBD
sharply RB
higher JJR
in IN
Stockholm NNP
, ,
Frankfurt NNP
, ,
Zurich NNP
and CC
Paris NNP
and CC
higher JJR
in IN
Milan NNP
, ,
Amsterdam NNP
and CC
Brussels NNP
. .

South JJ
African JJ
gold NN
stocks NNS
closed VBD
firmer JJR
. .

Prices NNS
also RB
closed VBD
higher JJR
in IN
Singapore NNP
, ,
Sydney NNP
, ,
Taipei NNP
, ,
Wellington NNP
, ,
Hong NNP
Kong NNP
and CC
Manila NNP
but CC
were VBD
lower JJR
in IN
Seoul NNP
. .

Here RB
are VBP
price NN
trends NNS
on IN
the DT
world NN
's POS
major JJ
stock NN
markets NNS
, ,
as IN
calculated VBN
by IN
Morgan NNP
Stanley NNP
Capital NNP
International NNP
Perspective NNP
, ,
Geneva NNP
. .

To TO
make VB
them PRP
directly RB
comparable JJ
, ,
each DT
index NN
is VBZ
based VBN
on IN
the DT
close NN
of IN
1969 CD
equaling VBG
100 CD
. .

The DT
percentage NN
change NN
is VBZ
since IN
year-end NN
. .

The DT
federal JJ
response NN
to TO
California NNP
's POS
earthquake NN
crisis NN
was VBD
marred VBN
by IN
coast-to-coast JJ
name-calling NN
between IN
the DT
White NNP
House NNP
and CC
San NNP
Francisco NNP
's POS
Mayor NNP
Art NNP
Agnos NNP
. .
Mr. NNP
Agnos NNP
complained VBD
that IN
he PRP
was VBD
`` ``
ticked VBD
off IN
'' ''
that IN
Vice NNP
President NNP
Dan NNP
Quayle NNP
, ,
who WP
toured VBD
the DT
earthquake NN
site NN
Wednesday NNP
, ,
did VBD
n't RB
schedule VB
a DT
private JJ
meeting NN
with IN
him PRP
. .

The DT
mayor NN
said VBD
the DT
Quayle NNP
visit NN
was VBD
`` ``
a DT
publicity NN
stunt NN
. .
'' ''

The DT
White NNP
House NNP
said VBD
Mr. NNP
Quayle NNP
's POS
staff NN
had VBD
invited VBN
the DT
mayor NN
to TO
two CD
meetings NNS
of IN
the DT
vice NN
president NN
and CC
groups NNS
of IN
local JJ
officials NNS
and CC
had VBD
offered VBN
to TO
dispatch VB
a DT
helicopter NN
to TO
pick VB
him PRP
up RB
. .

Mr. NNP
Agnos NNP
declined VBD
the DT
invitations NNS
, ,
the DT
White NNP
House NNP
said VBD
. .

Marlin NNP
Fitzwater NNP
, ,
White NNP
House NNP
press NN
secretary NN
, ,
also RB
asserted VBD
that IN
Mr. NNP
Agnos NNP
had VBD
failed VBN
to TO
return VB
telephone NN
calls VBZ
from IN
John NNP
Sununu NNP
, ,
White NNP
House NNP
chief NN
of IN
staff NN
. .

`` ``
We PRP
regret VBP
very RB
much RB
that IN
the DT
mayor NN
of IN
San NNP
Francisco NNP
has VBZ
decided VBN
not RB
to TO
cooperate VB
with IN
us PRP
on IN
this DT
matter NN
in IN
making VBG
sure JJ
that IN
there EX
is VBZ
adequate JJ
federal JJ
support NN
for IN
the DT
disaster NN
in IN
his PRP$
city NN
, ,
'' ''
Mr. NNP
Fitzwater NNP
said VBD
. .

By IN
late JJ
yesterday NN
, ,
both DT
sides NNS
appeared VBD
prepared VBN
to TO
bury VB
the DT
hatchet NN
. .

The DT
White NNP
House NNP
announced VBD
that IN
Mr. NNP
Agnos NNP
, ,
along IN
with IN
the DT
mayors NNS
of IN
Oakland NNP
and CC
Alameda NNP
, ,
are VBP
to TO
accompany VB
President NNP
Bush NNP
on IN
a DT
tour NN
of IN
the DT
earthquake NN
area NN
today NN
. .

And CC
one CD
White NNP
House NNP
official NN
reported VBD
that IN
Mr. NNP
Agnos NNP
had VBD
been VBN
`` ``
very RB
helpful JJ
'' ''
in IN
making VBG
arrangements NNS
for IN
Mr. NNP
Bush NNP
's POS
hastily RB
scheduled VBN
trip NN
to TO
California NNP
. .

Gold NNP
and CC
silver NN
broker NN
Preston NNP
Semel NNP
asked VBD
a DT
federal JJ
court NN
to TO
halt VB
the DT
Commodity NNP
Exchange NNP
from IN
imposing VBG
a DT
record NN
$ $
550,000 CD
fine JJ
on IN
his PRP$
firm NN
. .

The DT
suit NN
, ,
filed VBN
in IN
federal JJ
court NN
in IN
Manhattan NNP
, ,
also RB
asks VBZ
that IN
the DT
Comex NNP
's POS
nine-month JJ
suspension NN
of IN
Mr. NNP
Semel NNP
be VB
lifted VBN
, ,
pending VBG
the DT
broker NN
's POS
appeal NN
of IN
the DT
disciplinary JJ
measures NNS
. .

The DT
fine NN
and CC
suspension NN
, ,
announced VBD
in IN
August NNP
, ,
are VBP
the DT
stiffest JJS
sanctions VBZ
the DT
Comex NNP
has VBZ
ever RB
ordered VBN
against IN
one CD
of IN
its PRP$
members NNS
. .

The DT
Comex NNP
accused VBD
the DT
39-year-old NNP
Mr. NNP
Semel NNP
of IN
`` ``
fraudulent JJ
conduct NN
'' ''
and CC
improper JJ
trading NN
. .

The DT
disciplinary JJ
proceedings NNS
stem VBP
from IN
trading NN
in IN
April NNP
1987 CD
. .

Mr. NNP
Semel NNP
and CC
his PRP$
firm NN
, ,
Semel NNP
& CC
Co. NNP
, ,
have VBP
appealed VBN
the DT
Comex NNP
decision NN
and CC
the DT
sanctions NNS
to TO
the DT
Commodity NNP
Futures NNS
Trading NNP
Commission NNP
. .

The DT
commission NN
denied VBN
Mr. NNP
Semel NNP
's POS
request NN
that IN
the DT
fine NN
and CC
suspension NN
be VB
delayed VBN
pending VBG
the DT
appeal NN
. .

The DT
lawsuit NN
states NNS
that IN
unless IN
the DT
sanctions NNS
are VBP
halted VBN
pending VBG
an DT
appeal NN
, ,
the DT
broker NN
and CC
his PRP$
firm NN
`` ``
will MD
be VB
irreparably RB
injured VBN
and CC
their PRP$
business NN
will MD
be VB
totally RB
and CC
permanently RB
destroyed VBN
. .
'' ''

Already RB
the DT
firm NN
has VBZ
paid VBN
$ $
211,666 CD
of IN
the DT
fine NN
, ,
the DT
suit NN
said VBD
, ,
and CC
it PRP
will MD
have VB
to TO
liquidate VB
additional JJ
assets NNS
in IN
order NN
to TO
pay VB
the DT
rest NN
. .

A DT
spokesman NN
for IN
the DT
Comex NNP
could MD
n't RB
be VB
reached VBN
to TO
comment VB
. .

The DT
Federal NNP
National NNP
Mortgage NNP
Association NNP
said VBD
39 CD
lenders NNS
across IN
the DT
U.S. NNP
have VBP
agreed VBN
to TO
offer VB
home NN
loans NNS
under IN
Fannie NNP
Mae NNP
's POS
pilot NN
program NN
for IN
elderly JJ
people NNS
. .

Fannie NNP
Mae NNP
, ,
a DT
federally RB
chartered JJ
and CC
shareholder-owned JJ
company NN
, ,
said VBD
the DT
lenders NNS
include VBP
Prudential NNP
Home NNP
Mortgage NNP
Co. NNP
, ,
a DT
unit NN
of IN
Prudential NNP
Insurance NNP
Co. NNP
of IN
America NNP
that WDT
operates VBZ
in IN
every DT
state NN
. .

Prudential NNP
Insurance NNP
is VBZ
based VBN
in IN
Newark NNP
, ,
N.J NNP
. .

Fannie NNP
Mae NNP
has VBZ
agreed VBN
to TO
buy VB
as RB
much JJ
as IN
$ $
100 CD
million CD
of IN
loans NNS
under IN
its PRP$
Seniors NNS
' POS
Housing NNP
Opportunities NNS
pilot NN
program NN
, ,
which WDT
offers VBZ
four CD
types NNS
of IN
loans NNS
to TO
people NNS
62 CD
years NNS
of IN
age NN
or CC
older JJR
to TO
help VB
them PRP
maintain VB
their PRP$
home NN
or CC
obtain VB
housing NN
. .

The DT
loans NNS
can MD
be VB
for IN
accessory NN
apartments NNS
, ,
for IN
cottages NNS
built VBN
in IN
a DT
relative NN
's POS
yard NN
, ,
for IN
home-sharing NN
or CC
for IN
sale-lease-back JJ
transactions NNS
. .

Fannie NNP
Mae NNP
makes VBZ
a DT
secondary JJ
market NN
in IN
home NN
loans NNS
. .

It PRP
buys VBZ
loans NNS
from IN
lenders NNS
, ,
packages VBZ
some DT
into IN
securities NNS
for IN
sale NN
to TO
investors NNS
and CC
holds VBZ
the DT
remainder NN
in IN
a DT
portfolio NN
. .

Robert NNP
M. NNP
Gintel NNP
, ,
senior JJ
partner NN
of IN
a DT
Greenwich NNP
, ,
Conn. NNP
, ,
investment NN
firm NN
, ,
said VBD
he PRP
plans VBZ
to TO
launch VB
a DT
proxy NN
fight NN
against IN
the DT
board NN
of IN
Boston-based JJ
Xtra NNP
Corp NNP
. .

Mr. NNP
Gintel NNP
, ,
head NN
of IN
Gintel NNP
& CC
Co. NNP
, ,
said VBD
he PRP
plans VBZ
to TO
conduct VB
a DT
proxy NN
contest NN
to TO
elect VB
a DT
majority NN
of IN
Xtra NNP
's POS
board NN
at IN
the DT
next JJ
annual JJ
stockholders NNS
meeting NN
. .

Xtra NNP
, ,
a DT
transportation NN
leasing NN
company NN
, ,
said VBD
in IN
a DT
statement NN
it PRP
would MD
have VB
no DT
comment NN
on IN
Mr. NNP
Gintel NNP
's POS
plans NNS
until IN
`` ``
further JJ
information NN
has VBZ
been VBN
disclosed VBN
by IN
him PRP
. .
'' ''

The DT
company NN
also RB
said VBD
its PRP$
1990 CD
annual JJ
meeting NN
has VBZ
not RB
been VBN
scheduled VBN
. .

Mr. NNP
Gintel NNP
owns VBZ
300,000 CD
of IN
the DT
company NN
's POS
6.3 CD
million CD
common JJ
shares NNS
outstanding JJ
. .

Xtra NNP
said VBD
it PRP
recently RB
bought VBD
back RB
approximately RB
55,000 CD
of IN
its PRP$
shares NNS
pursuant JJ
to TO
its PRP$
existing VBG
authorization NN
to TO
acquire VB
as RB
many JJ
as IN
650,000 CD
shares NNS
. .

Mr. NNP
Gintel NNP
has VBZ
filed VBN
suit NN
in IN
Delaware NNP
Chancery NNP
Court NNP
, ,
seeking VBG
to TO
block VB
Xtra NNP
's POS
anti-takeover JJ
tactic NN
. .

In IN
a DT
filing NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
Mr. NNP
Gintel NNP
said VBD
Xtra NNP
`` ``
has VBZ
pursued VBN
business NN
strategies NNS
that WDT
are VBP
n't RB
in IN
the DT
best JJS
interest NN
of IN
stockholders NNS
. .

STOCKS NNS
AND CC
BONDS NNS
SURGED VBD
on IN
the DT
second JJ
anniversary NN
of IN
Black NNP
Monday NNP
as IN
a DT
favorable JJ
inflation NN
report NN
prompted VBD
speculation NN
of IN
lower JJR
interest NN
rates NNS
. .

The DT
Dow NNP
Jones NNP
industrials NNS
closed VBD
up IN
39.55 CD
, ,
at IN
2683.20 CD
, ,
after IN
rising VBG
over IN
60 CD
points NNS
in IN
mid-afternoon NN
. .

The DT
rally NN
brought VBD
the DT
gain NN
so RB
far RB
this DT
week NN
to TO
about IN
114 CD
points NNS
. .

The DT
dollar NN
finished VBD
mixed VBN
, ,
while IN
gold NN
declined VBD
. .

Consumer NN
prices NNS
climbed VBD
a DT
moderate JJ
0.2 CD
% NN
in IN
September NNP
, ,
mostly RB
due JJ
to TO
higher JJR
clothing NN
costs NNS
. .

Energy NN
prices NNS
continued VBD
to TO
fall VB
at IN
the DT
retail JJ
level NN
, ,
but CC
economists NNS
worried VBN
about IN
a DT
big JJ
rise NN
in IN
wholesale JJ
energy NN
costs NNS
. .

British JJ
Airways NNPS
dropped VBD
out IN
of IN
the DT
current JJ
bidding NN
for IN
United NNP
Air NNP
's POS
parent NN
, ,
leaving VBG
a DT
UAL NNP
management-pilots JJ
group NN
without IN
a DT
key JJ
partner NN
. .

British NNP
Air NNP
's POS
move NN
raised VBD
new JJ
questions NNS
about IN
the DT
buy-out NN
group NN
's POS
efforts NNS
to TO
revive VB
a DT
stalled VBN
bid NN
for IN
UAL NNP
. .

A DT
capital-gains NNS
tax-cut JJ
plan NN
was VBD
dropped VBN
by IN
Senate NNP
Democrats NNPS
under IN
pressure NN
from IN
their PRP$
leadership NN
. .

The DT
move NN
is VBZ
a DT
setback NN
for IN
Bush NNP
, ,
who WP
needs VBZ
Democratic JJ
support NN
to TO
pass VB
a DT
capital-gains NNS
cut VBP
in IN
the DT
Senate NNP
. .

Other JJ
tax NN
breaks NNS
also RB
are VBP
likely JJ
to TO
be VB
restored VBN
or CC
created VBN
in IN
the DT
coming VBG
months NNS
as IN
special JJ
interest NN
groups NNS
try VBP
to TO
undo VB
the DT
1986 CD
tax NN
overhaul NN
. .

Many JJ
retailers NNS
are VBP
worried VBN
that IN
a DT
price NN
war NN
could MD
erupt VB
this DT
Christmas NNP
if IN
cash-strapped JJ
firms NNS
such JJ
as IN
Campeau NNP
slash NN
prices NNS
to TO
spur VB
sales NNS
. .

AT&T NNP
unveiled VBD
a DT
sweetened VBN
early JJ
retirement NN
plan NN
for IN
management NN
that IN
the DT
company NN
hopes VBZ
will MD
save VB
it PRP
$ $
450 CD
million CD
in IN
the DT
next JJ
year NN
. .

Also RB
, ,
profit NN
rose VBD
19 CD
% NN
in IN
the DT
third JJ
quarter NN
. .

Chrysler NNP
will MD
idle VB
a DT
Toledo NNP
assembly NN
plant NN
temporarily RB
due JJ
to TO
slowing VBG
sales NNS
of IN
its PRP$
profitable JJ
Jeep NNP
Cherokee NNP
and CC
Wagoneer NNP
sport NN
utility NN
vehicles NNS
. .

Digital NNP
Equipment NNP
's POS
profit NN
fell VBD
32 CD
% NN
in IN
the DT
latest JJS
quarter NN
, ,
prompting VBG
forecasts NNS
of IN
weaker JJR
results NNS
ahead RB
. .

Analysts NNS
were VBD
troubled JJ
by IN
signs NNS
of IN
flat JJ
U.S. NNP
orders NNS
at IN
the DT
computer NN
maker NN
. .

IBM NN
plans NNS
to TO
unveil VB
over IN
50 CD
software NN
products NNS
on IN
Tuesday NNP
to TO
try VB
to TO
end VB
some DT
of IN
the DT
problems NNS
in IN
computerizing VBG
manufacturing NN
operations NNS
. .

The DT
TV NN
units NNS
of IN
Paramount NNP
and CC
MCA NNP
are VBP
exploring VBG
offering NN
prime-time JJ
programming NN
to TO
independent JJ
stations NNS
two CD
nights NNS
a DT
week NN
. .

BankAmerica NNP
's POS
profit NN
jumped VBD
34 CD
% NN
in IN
the DT
third JJ
quarter NN
. .

The DT
rapid JJ
recovery NN
continued VBD
to TO
be VB
fueled VBN
by IN
growth NN
in IN
consumer NN
loans NNS
, ,
higher JJR
interest NN
margins NNS
and CC
only RB
minor JJ
loan NN
losses NNS
. .

Big NNP
Board NNP
short JJ
interest NN
fell VBD
4.2 CD
% NN
for IN
the DT
month NN
ended VBN
Oct. NNP
13 CD
, ,
the DT
second JJ
decline NN
in IN
a DT
row NN
. .

Borrowed VBN
shares NNS
on IN
the DT
Amex NNP
rose VBD
to TO
another DT
record NN
. .

Bell NNP
Atlantic NNP
posted VBD
a DT
strong JJ
earnings NNS
gain NN
for IN
the DT
third JJ
quarter NN
, ,
as IN
did VBD
Southern NNP
New NNP
England NNP
Telecommunications NNPS
. .

But CC
Nynex NNP
, ,
Pacific NNP
Telesis NNP
and CC
U NNP
S NNP
West NNP
had VBD
lower JJR
profits NNS
. .

B.A.T NNP
Industries NNPS
won VBD
shareholder NN
approval NN
for IN
a DT
defensive JJ
restructuring NN
to TO
fend VB
off IN
Sir NNP
James NNP
Goldsmith NNP
. .

American NNP
Express NNP
's POS
profit NN
climbed VBD
21 CD
% NN
in IN
the DT
quarter NN
, ,
aided VBN
by IN
a DT
surge NN
in IN
its PRP$
travel NN
business NN
and CC
despite IN
a DT
big JJ
rise NN
in IN
Third NNP
World NNP
loan NN
reserves NNS
. .

Markets NNS
-- :

Stocks NNS
: :
Volume NN
198,120,000 CD
shares NNS
. .

Dow NNP
Jones NNP
industrials NNS
2683.20 CD
, ,
up IN
39.55 CD
; :
transportation NN
1263.51 CD
, ,
up IN
15.64 CD
; :
utilities NNS
215.42 CD
, ,
up IN
1.45 CD
. .

Bonds NNS
: :
Shearson NNP
Lehman NNP
Hutton NNP
Treasury NNP
index NN
3398.65 CD
, ,
up IN

Commodities NNS
: :
Dow NNP
Jones NNP
futures NNS
index NN
130.13 CD
, ,
up IN
0.23 CD
; :
spot NN
index NN
130.46 CD
, ,
up IN
0.10 CD
. .

Dollar NN
: :
141.70 CD
yen NN
, ,
up IN
0.25 CD
; :
1.8470 CD
marks NNS
, ,
off IN
0.0015 CD
. .

Computer NNP
Sciences NNP
Corp. NNP
, ,
El NNP
Segundo NNP
, ,
Calif. NNP
, ,
said VBD
the DT
National NNP
Aeronautics NNP
and CC
Space NNP
Administration NNP
will MD
negotiate VB
details NNS
of IN
a DT
contract NN
valued VBN
at IN
about RB
$ $
170 CD
million CD
to TO
provide VB
software NN
for IN
the DT
Ames NNP
Research NNP
Center NNP
. .

Included VBN
in IN
the DT
three-year JJ
contract NN
are VBP
options NNS
for IN
two CD
one-year JJ
renewals NNS
. .

NASA NNP
awarded VBD
the DT
contract NN
to TO
CSC NNP
in IN
November NNP
but CC
an DT
appeal NN
by IN
Sterling NNP
Software NNP
Inc. NNP
of IN
Dallas NNP
sent VBD
the DT
contract NN
to TO
the DT
General NNP
Services NNP
Administration NNP
Board NNP
of IN
Contract NNP
Appeals NNPS
and CC
the DT
board NN
required VBN
NASA NNP
to TO
re-evaluate VB
bidders NNS
' POS
proposals NNS
. .

Sterling NNP
had VBD
completed VBN
a DT
five-year JJ
contract NN
for IN
NASA NNP
but CC
lost VBD
its PRP$
bid NN
for IN
renewal NN
. .

As IN
directed VBN
by IN
the DT
board NN
, ,
NASA NNP
completed VBD
the DT
evaluation NN
and CC
again RB
chose VBD
CSC NNP
. .

For IN
its PRP$
fiscal JJ
year NN
ended VBN
March NNP
31 CD
, ,
CSC NNP
had VBD
revenue NN
of IN
$ $
1.3 CD
billion CD
. .

AFTERSHOCKS NNS
RATTLED VBD
Northern NNP
California NNP
amid IN
an DT
earthquake NN
cleanup NN
. .

As IN
power NN
and CC
commuters NNS
returned VBD
to TO
much NN
of IN
downtown NN
San NNP
Francisco NNP
for IN
the DT
first JJ
time NN
since IN
Tuesday NNP
's POS
temblor NN
in IN
the DT
Bay NNP
area NN
, ,
three CD
strong JJ
aftershocks NNS
, ,
one CD
measuring VBG
5.0 CD
on IN
the DT
Richter NNP
scale NN
, ,
jolted VBD
the DT
region NN
. .

Serious JJ
injuries NNS
or CC
damages NNS
were VBD
n't RB
reported VBN
. .

Californians NNS
, ,
meanwhile RB
, ,
tried VBD
to TO
cope VB
with IN
still-limited JJ
services NNS
, ,
blocked VBN
roadways NNS
and CC
water NN
shortages NNS
in IN
the DT
aftermath NN
of IN
the DT
tremor NN
that WDT
left VBD
scores NNS
dead JJ
and CC
injured VBN
. .

Thousands NNS
remained VBD
homeless JJ
. .

Bush NNP
is VBZ
to TO
visit VB
the DT
area NN
today NN
, ,
and CC
officials NNS
in IN
Washington NNP
estimated VBD
that DT
emergency NN
assistance NN
would MD
total VB
at IN
least JJS
$ $
2.5 CD
billion CD
. .

A DT
series NN
of IN
earthquakes NNS
struck VBD
northern JJ
China NNP
, ,
killing VBG
at IN
least JJS
29 CD
people NNS
, ,
injuring VBG
hundreds NNS
and CC
razing VBG
about IN
8,000 CD
homes NNS
, ,
the DT
Xinhua NNP
News NNP
Agency NNP
said VBD
. .

The DT
Senate NNP
rejected VBD
a DT
constitutional JJ
amendment NN
sought VBN
by IN
Bush NNP
to TO
prohibit VB
desecration NN
of IN
the DT
U.S. NNP
flag NN
. .

While IN
the DT
proposal NN
won VBD
a DT
slight JJ
majority NN
, ,
the DT
51-48 JJ
vote NN
was VBD
well JJ
short NN
of IN
the DT
two-thirds NNS
needed VBN
to TO
approve VB
changes NNS
in IN
the DT
Constitution NNP
. .

It PRP
was VBD
considered VBN
a DT
victory NN
for IN
Democratic JJ
leaders NNS
, ,
who WP
favor VBP
a DT
law NN
barring VBG
flag NN
burning VBG
. .

The DT
House NNP
approved VBD
an DT
$ $
837 CD
million CD
aid NN
package NN
for IN
Poland NNP
and CC
Hungary NNP
, ,
nearly RB
double JJ
what WP
Bush NNP
had VBD
requested VBN
. .

The DT
vote NN
of IN
345-47 NN
sent VBD
the DT
measure NN
to TO
the DT
Senate NNP
. .

Britain NNP
's POS
chief JJ
justice NN
quashed VBD
the DT
murder NN
convictions NNS
of IN
four CD
people NNS
for IN
Irish JJ
Republican NNP
Army NNP
bombings NNS
that WDT
killed VBD
seven CD
people NNS
in IN
1974 CD
. .
The DT
reversal NN
came VBD
after IN
the DT
government NN
conceded VBD
that IN
investigators NNS
may MD
have VB
faked VBN
evidence NN
. .

The DT
`` ``
Guildford NNP
Four CD
, ,
'' ''
three CD
Irishmen NNPS
and CC
an DT
Englishwoman NNP
, ,
have VBP
been VBN
imprisoned VBN
since IN
1975 CD
. .

The DT
Nobel NNP
Prize NNP
in IN
literature NN
was VBD
won VBN
by IN
Camilo NNP
Jose NNP
Cela NNP
, ,
a DT
Spanish JJ
writer NN
. .

His PRP$
1942 CD
novel NN
`` ``
The DT
Family NNP
of IN
Pascual NNP
Duarte NNP
'' ''
is VBZ
considered VBN
the DT
most RBS
popular JJ
work NN
of IN
fiction NN
in IN
Spanish JJ
since IN
Cervantes NNP
's POS
`` ``
Don NNP
Quixote NNP
'' ''
was VBD
published VBN
400 CD
years NNS
ago RB
. .

The DT
Swedish NNP
Academy NNP
in IN
Stockholm NNP
cited VBD
the DT
73-year-old NNP
Cela NNP
for IN
`` ``
rich JJ
and CC
intensive JJ
prose NN
. .
'' ''

The DT
editor NN
of IN
Pravda NNP
was VBD
dismissed VBN
and CC
succeeded VBN
by IN
a DT
confidant NN
of IN
Soviet JJ
leader NN
Gorbachev NNP
. .

The DT
action NN
at IN
the DT
Communist NNP
Party NNP
daily JJ
, ,
viewed VBN
as IN
the DT
Soviet NNP
Union NNP
's POS
most RBS
authoritative JJ
newspaper NN
, ,
was VBD
considered VBN
the DT
most RBS
significant JJ
development NN
in IN
a DT
week NN
of IN
Kremlin NNP
wrangling VBG
over IN
the DT
press NN
, ,
including VBG
sharp JJ
criticism NN
from IN
Gorbachev NNP
. .

East NNP
Germany NNP
's POS
new JJ
leader NN
met VBD
with IN
Lutheran NNP
Church NNP
officials NNS
to TO
discuss VB
a DT
growing VBG
opposition NN
movement NN
demanding VBG
democratic JJ
freedoms NNS
. .

As IN
they PRP
conferred VBD
near IN
East NNP
Berlin NNP
, ,
a DT
pro-democracy JJ
protest NN
erupted VBD
in IN
the DT
Baltic JJ
city NN
of IN
Greifswald NNP
, ,
and CC
activists NNS
threatened VBD
further JJ
rallies NNS
against IN
leader NN
Krenz NNP
's POS
expected VBN
hard-line JJ
policies NNS
. .

Police NNS
in IN
Prague NNP
raided VBD
an DT
international JJ
meeting NN
on IN
human JJ
rights NNS
, ,
detaining VBG
Czechoslovakia NNP
's POS
former JJ
foreign JJ
minister NN
, ,
Jiri NNP
Hajak NNP
, ,
and CC
14 CD
other JJ
activists NNS
. .

A DT
leading VBG
U.S. NNP
human-rights JJ
monitor NN
also RB
was VBD
briefly NN
held VBN
. .

Dissident JJ
playwright NN
Vaclav NNP
Havel NNP
reportedly RB
escaped VBD
the DT
crackdown NN
, ,
the DT
fourth JJ
against IN
activists NNS
in IN
recent JJ
days NNS
. .

Bush NNP
met VBD
in IN
Washington NNP
with IN
Spain NNP
's POS
Prime NNP
Minister NNP
Gonzalez NNP
and CC
discussed VBN
what WP
the DT
president NN
called VBN
`` ``
the DT
unique JJ
role NN
'' ''
that IN
Madrid NNP
can MD
play VB
in IN
furthering VBG
democracy NN
in IN
Eastern NNP
Europe NNP
and CC
Latin NNP
America NNP
. .

Gonzalez NNP
, ,
who WP
pledged VBD
to TO
help VB
monitor VB
voting NN
in IN
Nicaragua NNP
, ,
was VBD
said VBD
to TO
be VB
carrying VBG
proposals NNS
for IN
free JJ
elections NNS
in IN
Panama NNP
. .

The DT
Galileo NNP
spacecraft NN
sped VBD
unerringly RB
toward IN
the DT
planet NN
Jupiter NNP
, ,
while IN
five CD
astronauts NNS
aboard IN
the DT
space NN
shuttle NN
Atlantis NNP
measured VBD
the DT
Earth NNP
's POS
ozone NN
layer NN
. .

The DT
robot NN
probe NN
was VBD
dispatched VBN
Wednesday NNP
by IN
the DT
shuttle NN
crew NN
, ,
which WDT
is VBZ
to TO
conduct VB
a DT
series NN
of IN
medical JJ
and CC
other JJ
experiments NNS
before IN
their PRP$
scheduled VBN
landing NN
Monday NNP
in IN
California NNP
. .

Argentina NNP
and CC
Britain NNP
agreed VBD
to TO
resume VB
diplomatic JJ
and CC
economic JJ
relations NNS
, ,
seven CD
years NNS
after IN
the DT
two CD
nations NNS
battled VBD
over IN
the DT
Falkland NNP
Islands NNPS
. .

The DT
announcement NN
, ,
in IN
which WDT
they PRP
said VBD
hostilities NNS
had VBD
ceased VBN
, ,
followed VBD
a DT
two-day JJ
meeting NN
in IN
Madrid NNP
. .

Rebel NN
artillerists NNS
bombarded VBD
the DT
capital NN
of IN
Afghanistan NNP
, ,
killing VBG
at IN
least JJS
12 CD
people NNS
, ,
as IN
the DT
Soviet NNP
Union NNP
was VBD
reported VBN
to TO
be VB
airlifting VBG
arms NNS
and CC
food NN
to TO
Kabul NNP
's POS
forces NNS
. .

Fighting NNP
also RB
was VBD
reported VBN
around IN
the DT
strategic JJ
town NN
of IN
Khost NNP
, ,
near IN
the DT
Pakistani JJ
border NN
. .

Saudi NNP
Arabia NNP
's POS
foreign JJ
minister NN
met VBD
in IN
Damascus NNP
with IN
President NNP
Assad NNP
to TO
develop VB
a DT
plan NN
for IN
the DT
withdrawal NN
of IN
Syria NNP
's POS
40,000 CD
troops NNS
from IN
Lebanon NNP
as IN
part NN
of IN
a DT
settlement NN
of IN
that DT
nation NN
's POS
14-year-old JJ
civil JJ
war NN
. .

The DT
talks NNS
came VBD
as IN
Lebanese JJ
negotiations NNS
on IN
political JJ
changes NNS
appeared VBD
deadlocked VBN
. .
GOP NNP
Sen. NNP
Specter NNP
of IN
Pennsylvania NNP
said VBD
he PRP
would MD
vote VB
to TO
acquit VB
federal JJ
Judge NNP
Alcee NNP
Hastings NNP
in IN
his PRP$
impeachment NN
trial NN
on IN
charges NNS
of IN
perjury NN
and CC
bribery NN
conspiracy NN
. .

Specter NNP
, ,
the DT
vice NN
chairman NN
of IN
the DT
Senate NNP
's POS
evidence NN
panel NN
, ,
said VBD
there EX
was VBD
`` ``
insufficient JJ
evidence NN
to TO
convict VB
'' ''
the DT
Miami NNP
jurist NN
. .

After IN
slipping VBG
on IN
news NN
of IN
a DT
smaller-than-expected JJ
U.S. NNP
inflation NN
figure NN
, ,
the DT
dollar NN
rebounded VBD
later RB
in IN
the DT
trading NN
day NN
. .

The DT
U.S. NNP
unit NN
dipped VBD
to TO
a DT
session NN
low JJ
against IN
the DT
mark NN
just RB
after IN
the DT
release NN
of IN
the DT
U.S. NNP
consumer NN
price NN
index NN
. .

The DT
report NN
showed VBD
that IN
September NNP
consumer NN
prices NNS
rose VBD
just RB
0.2 CD
% NN
, ,
a DT
smaller JJR
increase NN
than IN
expected VBN
. .
The DT
market NN
had VBD
anticipated VBN
a DT
0.4 CD
% NN
rise NN
in IN
the DT
price NN
index NN
. .

The DT
September NNP
index NN
fueled VBD
speculation NN
, ,
damaging JJ
to TO
the DT
dollar NN
, ,
that IN
the DT
Federal NNP
Reserve NNP
soon RB
will MD
ease VB
monetary JJ
policy NN
further JJ
. .

But CC
foreign-exchange JJ
dealers NNS
said VBD
the DT
dollar NN
staged VBD
a DT
quick JJ
comeback NN
, ,
prompted VBN
by IN
a DT
round NN
of IN
short JJ
covering NN
and CC
some DT
fresh JJ
buying NN
interest NN
later RB
in IN
the DT
trading NN
day NN
. .

Traders NNS
said VBD
that IN
a DT
nearly RB
40-point JJ
gain NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
, ,
fueled VBN
in IN
part NN
by IN
news NN
of IN
a DT
lower-than-expected JJ
price NN
index NN
, ,
had VBD
little JJ
influence NN
on IN
the DT
dollar NN
's POS
moves NNS
. .

`` ``
The DT
market NN
is VBZ
beginning VBG
to TO
disassociate VB
itself PRP
from IN
Wall NNP
Street NNP
, ,
'' ''
said VBD
one CD
New NNP
York NNP
trader NN
. .

In IN
late JJ
New NNP
York NNP
trading NN
yesterday NN
, ,
the DT
dollar NN
was VBD
quoted VBN
at IN
1.8470 CD
marks NNS
, ,
down RB
from IN
1.8485 CD
marks NNS
late JJ
Wednesday NNP
, ,
and CC
at IN
141.70 CD
yen NN
, ,
up IN
from IN
141.45 CD
yen NN
late JJ
Wednesday NNP
. .

Sterling NNP
was VBD
quoted VBN
at IN
$ $
1.5990 CD
, ,
up IN
from IN
$ $
1.5920 CD
late JJ
Wednesday NNP
. .

In IN
Tokyo NNP
Friday NNP
, ,
the DT
U.S. NNP
currency NN
opened VBD
for IN
trading NN
at IN
141.93 CD
yen NN
, ,
up IN
from IN
Thursday NNP
's POS
Tokyo NNP
close NN
of IN
141.55 CD
yen NN
. .

Some DT
analysts NNS
said VBD
the DT
consumer NN
price NN
index NN
reflects VBZ
a DT
more RBR
significant JJ
slowdown NN
in IN
the DT
U.S. NNP
economy NN
than IN
earlier RBR
indicated VBD
. .

They PRP
point VBP
out RP
that IN
September NNP
's POS
producer-price JJ
index NN
showed VBD
a DT
0.9 CD
% NN
increase NN
. .

They PRP
noted VBD
that IN
because IN
the DT
consumer NN
price NN
index NN
, ,
known VBN
as IN
the DT
CPI NNP
, ,
is VBZ
a DT
more RBR
comprehensive JJ
measure NN
of IN
inflation NN
and CC
is VBZ
rising VBG
less RBR
rapidly RB
than IN
the DT
producer-price JJ
index NN
, ,
or CC
PPI NNP
, ,
it PRP
could MD
signal VB
further JJ
easing NN
by IN
Fed NNP
. .

Others NNS
suggested VBD
, ,
however RB
, ,
that IN
the DT
Fed NNP
will MD
hold VB
any DT
changes NNS
in IN
monetary JJ
policy NN
in IN
check NN
, ,
leaving VBG
fed VBN
funds NNS
at IN
around IN
8 CD
3\/4 CD
% NN
, ,
down RB
from IN
the DT
9 CD
% NN
level NN
that WDT
prevailed VBD
from IN
July NNP
through IN
September NNP
. .

Kevin NNP
Logan NNP
, ,
chief JJ
economist NN
with IN
the DT
Swiss NNP
Bank NNP
Corp. NNP
, ,
said VBD
that IN
both DT
PPI NNP
and CC
CPI NNP
climbed VBD
around IN
4 CD
1\/2 CD
% NN
year-to-year JJ
in IN
September NNP
. .

He PRP
argued VBD
that IN
both DT
CPI NNP
and CC
PPI NNP
have VBP
in IN
fact NN
decelerated VBN
since IN
spring NN
. .

`` ``
The DT
Fed NNP
wo MD
n't RB
be VB
stampeded VBN
into IN
easing VBG
, ,
'' ''
Mr. NNP
Logan NNP
said VBD
, ,
predicting VBG
that IN
for IN
now RB
, ,
interest NN
rates NNS
will MD
stay VB
where WRB
they PRP
are VBP
. .

A DT
four-day JJ
matched VBN
sale-purchase NN
agreement NN
, ,
a DT
move NN
to TO
drain VB
liquidity NN
from IN
the DT
system NN
, ,
was VBD
viewed VBN
as IN
a DT
technical JJ
move NN
, ,
rather RB
than IN
an DT
indication NN
of IN
tightening VBG
credit NN
. .

Market NN
participants NNS
note VBP
that IN
the DT
mark NN
continues VBZ
to TO
post VB
heftier JJR
gains NNS
against IN
its PRP$
U.S. NNP
counterpart NN
than IN
any DT
other JJ
major JJ
currency NN
, ,
particularly RB
the DT
yen NN
. .

`` ``
There EX
's VBZ
a DT
bottomless JJ
pit NN
of IN
dollar NN
demand NN
'' ''
by IN
Japanese JJ
investors NNS
, ,
said VBD
Graham NNP
Beale NNP
, ,
managing VBG
director NN
of IN
foreign JJ
exchange NN
at IN
Hongkong NNP
& CC
Shanghai NNP
Banking NNP
Corp. NNP
in IN
New NNP
York NNP
, ,
adding VBG
that IN
purely RB
speculative JJ
demand NN
would MD
n't RB
hold VB
the DT
dollar NN
at IN
its PRP$
recent JJ
levels NNS
against IN
the DT
Japanese JJ
currency NN
. .

Mr. NNP
Beale NNP
commented VBD
that IN
the DT
mark NN
remains VBZ
well JJ
bid NN
against IN
other JJ
currencies NNS
as IN
well RB
. .

Robert NNP
White NNP
, ,
manager NN
of IN
corporate JJ
trading NN
at IN
First NNP
Interstate NNP
of IN
California NNP
, ,
called VBD
the DT
market NN
`` ``
psychologically RB
pro-mark JJ
, ,
'' ''
noting VBG
that IN
the DT
U.S. NNP
remains VBZ
a DT
`` ``
veritable JJ
grab NN
bag NN
'' ''
for IN
Japanese JJ
investors NNS
which WDT
accounts NNS
for IN
the DT
unabated JJ
demand NN
for IN
U.S. NNP
dollars NNS
. .

On IN
the DT
Commodity NNP
Exchange NNP
in IN
New NNP
York NNP
, ,
gold NN
dropped VBD
$ $
1.60 CD
to TO
$ $
367.10 CD
an DT
ounce NN
in IN
moderate JJ
trading NN
. .

Estimated VBN
volume NN
was VBD
three CD
million CD
ounces NNS
. .
In IN
early JJ
trading NN
in IN
Hong NNP
Kong NNP
Friday NNP
, ,
gold NN
was VBD
at IN
about RB
$ $
366.85 CD
an DT
ounce NN
. .

Hotel NNP
Investors NNP
Trust NNP
and CC
its PRP$
affiliate NN
, ,
Hotel NNP
Investors NNP
Corp. NNP
, ,
said VBD
the DT
companies NNS
plan VBP
to TO
sell VB
all DT
of IN
the DT
hotels NNS
the DT
companies NNS
own JJ
and CC
operate VB
, ,
except IN
for IN
two CD
hotel-casinos NNS
in IN
Las NNP
Vegas NNP
, ,
Nev NNP
. .

The DT
hotels NNS
and CC
management NN
interests NNS
will MD
be VB
sold VBN
at IN
an DT
auction NN
, ,
said VBD
John NNP
Rothman NNP
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
the DT
trust NN
and CC
a DT
director NN
of IN
the DT
corporation NN
. .

Value NNP
of IN
the DT
properties NNS
and CC
management NN
interests NNS
was VBD
n't RB
disclosed VBN
. .

In IN
all DT
, ,
the DT
Los NNP
Angeles-based JJ
trust NN
plans NNS
to TO
sell VB
its PRP$
interests NNS
in IN
36 CD
hotels NNS
, ,
while IN
the DT
corporation NN
will MD
sell VB
its PRP$
management NN
interests NNS
in IN
32 CD
of IN
those DT
properties NNS
. .

Excluded VBN
from IN
the DT
sale NN
are VBP
the DT
interests NNS
of IN
the DT
trust NN
and CC
the DT
corporation NN
in IN
two CD
Las NNP
Vegas NNP
hotel-casinos NNS
. .

After IN
completing VBG
the DT
sale NN
and CC
paying VBG
debts NNS
, ,
the DT
trust NN
and CC
corporation NN
will MD
consider VB
a DT
number NN
of IN
options NNS
including VBG
a DT
stock NN
repurchase NN
, ,
payment NN
of IN
special JJ
dividend NN
or CC
investment NN
in IN
more JJR
gaming NN
properties NNS
. .

The DT
companies NNS
will MD
retain VB
their PRP$
current JJ
regular JJ
quarterly JJ
dividend NN
of IN
25 CD
cents NNS
during IN
the DT
sale NN
process NN
, ,
Mr. NNP
Rothman NNP
said VBD
. .

For IN
the DT
first JJ
six CD
months NNS
, ,
the DT
trust NN
and CC
corporation NN
had VBD
a DT
net JJ
loss NN
of IN
$ $
244,000 CD
. .

Baxter NNP
International NNP
Inc. NNP
, ,
citing VBG
cost-cutting JJ
moves NNS
and CC
increased VBN
sales NNS
of IN
its PRP$
home-care JJ
products NNS
and CC
dialysis NN
treatments NNS
, ,
posted VBD
a DT
20 CD
% NN
rise NN
in IN
third-quarter JJ
net JJ
income NN
on IN
a DT
5.9 CD
% NN
sales NNS
boost NN
. .

The DT
Deerfield NNP
, ,
Ill. NNP
, ,
medical JJ
products NNS
and CC
services NNS
company NN
posted VBD
net NN
of IN
$ $
102 CD
million CD
, ,
or CC
34 CD
cents NNS
a DT
share NN
, ,
compared VBN
with IN
$ $
85 CD
million CD
, ,
or CC
28 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Sales NNS
totaled VBD
$ $
1.81 CD
billion CD
up IN
from IN
$ $
1.71 CD
billion CD
the DT
previous JJ
year NN
. .

For IN
the DT
nine-month JJ
period NN
, ,
Baxter NNP
said VBD
net NN
rose VBD
15 CD
% NN
to TO
$ $
307 CD
million CD
, ,
or CC
$ $
1.02 CD
a DT
share NN
, ,
from IN
$ $
267 CD
million CD
, ,
or CC
89 CD
cents NNS
a DT
share NN
, ,
during IN
the DT
year-ago JJ
period NN
. .

Sales NNS
for IN
the DT
nine CD
months NNS
were VBD
up IN
8 CD
% NN
to TO
$ $
5.44 CD
billion CD
from IN
$ $
5.04 CD
billion CD
in IN
the DT
same JJ
period NN
in IN
1988 CD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Baxter NNP
closed VBD
at IN
$ $
22.25 CD
a DT
share NN
, ,
down RB
12.5 CD
cents NNS
. .

A DT
group NN
bidding NN
for IN
American NNP
Medical NNP
International NNP
Inc. NNP
, ,
New NNP
York NNP
, ,
said VBD
it PRP
formally RB
received VBD
the DT
final JJ
financing NN
needed VBN
for IN
a DT
$ $
3 CD
billion CD
bid NN
for IN
about IN
86 CD
% NN
of IN
the DT
hospital NN
operator NN
's POS
stock NN
. .

The DT
offer NN
from IN
IMA NNP
Acquisition NNP
Corp. NNP
, ,
for IN
as RB
many JJ
as IN
63 CD
million CD
shares NNS
, ,
is VBZ
set VBN
to TO
expire VB
Wednesday NNP
. .

Earlier RBR
this DT
month NN
, ,
IMA NNP
said VBD
it PRP
had VBD
received VBN
about RB
$ $
1 CD
billion CD
of IN
senior JJ
debt NN
financing NN
from IN
Chemical NNP
Bank NNP
and CC
six CD
other JJ
banks NNS
; :
Chemical NNP
Bank NNP
said VBD
it PRP
was VBD
`` ``
highly RB
confident JJ
'' ''
it PRP
could MD
arrange VB
the DT
balance NN
of IN
about RB
$ $
509 CD
million CD
. .

In IN
addition NN
, ,
the DT
$ $
3 CD
billion CD
bid NN
includes VBZ
$ $
1 CD
billion CD
of IN
debt NN
that WDT
will MD
be VB
assumed VBN
by IN
IMA NNP
, ,
$ $
600 CD
million CD
of IN
high-yield JJ
junk NN
bonds NNS
that WDT
will MD
be VB
sold VBN
by IN
First NNP
Boston NNP
Corp. NNP
and CC
$ $
285 CD
million CD
of IN
equity NN
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
yesterday NN
, ,
American NNP
Medical NNP
closed VBD
at IN
$ $
23.625 CD
, ,
up IN
$ $
1.875 CD
. .

American NNP
Medical NNP
has VBZ
agreed VBN
to TO
the DT
offer NN
, ,
but CC
earlier RBR
this DT
month NN
said VBD
it PRP
had VBD
received VBN
new JJ
`` ``
expressions NNS
of IN
interest NN
'' ''
from IN
two CD
previous JJ
bidders NNS
. .

American NNP
Medical NNP
said VBD
it PRP
would MD
pursue VB
the DT
inquiries NNS
from IN
the DT
companies NNS
, ,
but CC
would MD
n't RB
identify VB
them PRP
unless IN
they PRP
make VBP
firm NN
offers NNS
. .

H&R NNP
Block NNP
is VBZ
one CD
of IN
the DT
great JJ
success NN
stories NNS
of IN
U.S. NNP
business NN
. .

Oddly RB
enough RB
, ,
this DT
presents VBZ
a DT
problem NN
for IN
the DT
stock NN
. .

Some DT
money NN
managers NNS
are VBP
disenchanted VBN
with IN
H&R NNP
Block NNP
because IN
they PRP
suspect VBP
the DT
company NN
's POS
glory NN
days NNS
are VBP
past JJ
, ,
or CC
at IN
least JJS
passing VBG
. .

Block NNP
's POS
tax-preparation NN
business NN
is VBZ
mature JJ
, ,
they PRP
say VBP
, ,
and CC
some DT
of IN
its PRP$
diversifications NNS
are VBP
facing VBG
tough JJ
competition NN
. .

It PRP
's VBZ
no DT
secret NN
that IN
Block NNP
dominates VBZ
the DT
mass-market JJ
tax-preparation NN
business NN
. .

The DT
Street NNP
knows VBZ
all DT
about IN
the DT
predictability NN
of IN
its PRP$
earnings NNS
, ,
which WDT
are VBP
headed VBN
for IN
a DT
ninth JJ
consecutive JJ
yearly JJ
increase NN
. .

The DT
company NN
has VBZ
consistently RB
earned VBN
more JJR
than IN
a DT
20 CD
% NN
annual JJ
return NN
on IN
its PRP$
net JJ
worth NN
while IN
many JJ
companies NNS
would MD
be VB
happy JJ
with IN
15 CD
% NN
. .

But CC
the DT
tax-preparation NN
business NN
simply RB
has VBZ
no DT
more JJR
room NN
to TO
grow VB
, ,
says VBZ
Mark NNP
Cremonie NNP
, ,
director NN
of IN
research NN
for IN
Capital NNP
Supervisors NNP
Inc. NNP
, ,
a DT
Chicago NNP
firm NN
that WDT
manages VBZ
$ $
6.5 CD
billion CD
. .

`` ``
You PRP
go VBP
to TO
any DT
medium-sized JJ
town NN
in IN
the DT
U.S. NNP
and CC
you PRP
're VBP
going VBG
to TO
see VB
H&R NNP
Block NNP
tax NN
services NNS
. .
'' ''

Mr. NNP
Cremonie NNP
's POS
firm NN
once RB
held VBD
about IN
4.8 CD
% NN
of IN
H&R NNP
Block NNP
. .

That DT
was VBD
before IN
the DT
1986 CD
tax NN
`` ``
reform NN
'' ''
made VBN
taxes NNS
more RBR
complex JJ
than IN
ever RB
. .

`` ``
One CD
thing NN
you PRP
can MD
bet VB
on IN
, ,
'' ''
he PRP
says VBZ
, ,
`` ``
is VBZ
that IN
Congress NNP
will MD
do VB
stupid JJ
things NNS
with IN
the DT
Tax NNP
Code NNP
. .
'' ''

But CC
Capital NNP
Supervisors NNP
sold VBN
the DT
last NN
of IN
its PRP$
H&R NNP
Block NNP
holdings NNS
earlier RBR
this DT
year NN
. .

`` ``
They PRP
're VBP
thrashing VBG
around IN
for IN
diversification NN
, ,
'' ''
he PRP
says VBZ
. .

`` ``
I PRP
think VBP
a DT
lot NN
of IN
their PRP$
businesses NNS
are VBP
just RB
so-so JJ
. .
'' ''

Last JJ
week NN
the DT
stock NN
hit VBD
an DT
all-time JJ
high NN
of IN
37 CD
1\/4 CD
before IN
getting VBG
roughed VBD
up IN
in IN
the DT
Friday-the-13th JJ
minicrash NN
. .

It PRP
closed VBD
yesterday NN
at IN
34 CD
3\/4 CD
. .

To TO
be VB
sure JJ
, ,
the DT
stock NN
still RB
has VBZ
a DT
lot NN
of IN
fans NNS
. .

`` ``
If IN
you PRP
invested VBD
$ $
10,000 CD
in IN
the DT
initial JJ
public JJ
offering NN
in IN
1962 CD
, ,
it PRP
would MD
be VB
worth JJ
well RB
over IN
$ $
5 NN
million CD
today NN
, ,
'' ''
says VBZ
Fredric NNP
E. NNP
Russell NNP
, ,
a DT
Tulsa NNP
, ,
Okla. NNP
, ,
money NN
manager NN
. .

`` ``
I PRP
do VBP
n't RB
know VB
what WP
the DT
risk NN
is VBZ
-LCB- (
of IN
holding VBG
the DT
stock NN
-RCB- )
. .

Taxes NNS
are VBP
not RB
going VBG
out IN
of IN
business NN
. .
'' ''

Many JJ
of IN
his PRP$
peers NNS
feel VBP
the DT
same JJ
way NN
. .

The DT
number NN
of IN
big JJ
institutions NNS
that IN
own JJ
H&R NNP
Block NNP
shares NNS
is VBZ
207 CD
and CC
growing VBG
, ,
according VBG
to TO
a DT
midyear NN
tally NN
by IN
CDA NNP
Investment NNP
Technologies NNP
. .
Brokerage NN
houses NNS
are VBP
sweet JJ
on IN
H&R NNP
Block NNP
, ,
too RB
. .

Zacks NNP
Investment NNP
Research NNP
counts NNS
five CD
brokerage NN
houses NNS
that WDT
consider VBP
the DT
stock NN
a DT
buy NN
, ,
and CC
four CD
that WDT
call VBP
it PRP
a DT
hold NN
. .

None NN
dare NN
say VBP
to TO
sell VB
it PRP
. .

But CC
some DT
money NN
managers NNS
are VBP
doing VBG
just RB
that DT
. .

Eugene NNP
Sit VB
, ,
president NN
of IN
Sit VB
Investment NNP
Associates NNPS
in IN
Minneapolis NNP
, ,
says VBZ
, ,
`` ``
When WRB
we PRP
bought VBD
it PRP
, ,
we PRP
thought VBD
the DT
growth NN
rate NN
was VBD
going VBG
to TO
accelerate VB
'' ''
because IN
of IN
computerized JJ
tax NN
filing NN
and CC
instant NN
refunds NNS
-LRB- (
the DT
customer NN
gets VBZ
a DT
refund NN
immediately RB
but CC
pays VBZ
extra JJ
to TO
the DT
tax NN
preparer NN
, ,
which WDT
waits VBZ
for IN
Uncle NNP
Sam NNP
's POS
check NN
-RRB- )
. .

But CC
neither DT
of IN
those DT
developments NNS
did VBD
much JJ
to TO
juice NN
up IN
growth NN
, ,
Mr. NNP
Sit VB
says VBZ
. .

He PRP
figures VBZ
Block NNP
earnings NNS
are VBP
now RB
growing VBG
at IN
about IN
a DT
10 CD
% NN
annual JJ
rate NN
-LRB- (
down RB
from IN
about IN
14 CD
% NN
the DT
past JJ
five CD
years NNS
-RRB- )
and CC
will MD
grow VB
at IN
an DT
8%-10 JJ
% NN
rate NN
in IN
the DT
future NN
. .

That DT
's VBZ
`` ``
not RB
bad JJ
, ,
'' ''
Mr. NNP
Sit VB
says VBZ
, ,
but CC
it PRP
sure JJ
does VBZ
n't RB
justify VB
Block NNP
shares NNS
being VBG
priced VBN
at IN
15 CD
to TO
16 CD
times NNS
estimated VBD
earnings NNS
for IN
fiscal JJ
1990 CD
. .

He PRP
wants VBZ
stocks NNS
whose WP$
price\/earnings NNS
ratio NN
is VBZ
less JJR
than IN
their PRP$
growth NN
rate NN
; :
as IN
he PRP
figures VBZ
it PRP
, ,
H&R NNP
Block NNP
does VBZ
n't RB
even RB
come VB
close NN
. .

Two CD
other JJ
money NN
managers NNS
, ,
in IN
explaining VBG
why WRB
they PRP
have VBP
sold VBN
large JJ
amounts NNS
of IN
H&R NNP
Block NNP
stock NN
this DT
year NN
, ,
spoke VBD
on IN
the DT
condition NN
they PRP
not RB
be VBP
named VBN
. .

`` ``
The DT
stock NN
was VBD
going VBG
no DT
place NN
and CC
the DT
earnings NNS
were VBD
so-so JJ
, ,
'' ''
said VBD
one CD
. .

-LRB- (
In IN
the DT
past JJ
two CD
years NNS
, ,
the DT
stock NN
almost RB
stalled VBD
out RB
. .

It PRP
was VBD
above IN
33 CD
, ,
adjusted VBN
for IN
a DT
subsequent JJ
split NN
, ,
in IN
1987 CD
, ,
and CC
has VBZ
n't RB
gotten VBN
much RB
higher JJR
since IN
. .
-RRB- )

`` ``
There EX
's VBZ
no DT
more JJR
growth NN
in IN
the DT
tax NN
business NN
-LCB- (
except IN
-RCB- )
for IN
increasing VBG
prices NNS
, ,
'' ''
the DT
money NN
manager NN
added VBD
. .

The DT
CompuServe NNP
subsidiary NN
-LRB- (
which WDT
provides VBZ
information NN
to TO
home-computer NN
users NNS
-RRB- )
is VBZ
`` ``
where WRB
the DT
growth NN
is VBZ
, ,
'' ''
he PRP
said VBD
, ,
but CC
its PRP$
format NN
is VBZ
`` ``
still RB
too RB
complicated VBN
. .
'' ''

CompuServe NNP
provides VBZ
about IN
20 CD
% NN
of IN
both DT
sales NNS
and CC
earnings NNS
. .

The DT
tax NN
business NN
still RB
provides VBZ
about IN
70 CD
% NN
of IN
earnings NNS
, ,
on IN
about IN
50 CD
% NN
of IN
sales NNS
. .

Personnel NNP
Pool NNP
-LRB- (
temporary JJ
workers NNS
, ,
mostly RB
in IN
the DT
health-care NN
area NN
-RRB- )
chips NNS
in IN
close RB
to TO
25 CD
% NN
of IN
sales NNS
but CC
only RB
about IN
9 CD
% NN
of IN
earnings NNS
. .

The DT
shortage NN
of IN
nurses NNS
is VBZ
crimping VBG
profit NN
at IN
Personnel NNP
Pool NNP
, ,
said VBD
the DT
second JJ
money NN
manager NN
. .

He PRP
concedes VBZ
H&R NNP
Block NNP
is VBZ
`` ``
well-entrenched JJ
'' ''
and CC
`` ``
a DT
great JJ
company NN
, ,
'' ''
but CC
says VBZ
`` ``
it PRP
does VBZ
n't RB
grow VB
fast RB
enough RB
for IN
us PRP
. .

We PRP
're VBP
looking VBG
for IN
something NN
that WDT
grows VBZ
faster RBR
and CC
sells VBZ
at IN
a DT
comparable JJ
-LCB- (
price-earnings JJ
-RCB- )
multiple JJ
. .
'' ''

Thomas NNP
M. NNP
Bloch NNP
, ,
president NN
and CC
chief JJ
operating VBG
officer NN
, ,
says VBZ
`` ``
I PRP
would MD
disagree VB
'' ''
that IN
the DT
tax NN
business NN
is VBZ
mature JJ
. .

For IN
example NN
, ,
he PRP
says VBZ
, ,
the DT
company NN
is VBZ
planning VBG
to TO
go VB
nationwide JJ
with IN
a DT
new JJ
service NN
, ,
tested VBN
in IN
parts NNS
of IN
the DT
country NN
, ,
aimed VBN
at IN
taxpayers NNS
who WP
want VBP
refunds NNS
in IN
a DT
hurry NN
. .

Mr. NNP
Bloch NNP
concedes VBZ
that IN
a DT
recent JJ
diversification NN
attempt NN
fell VBD
through RB
. .

`` ``
We PRP
're VBP
still RB
interested JJ
-LCB- (
in IN
diversifying VBG
-RCB- )
, ,
'' ''
he PRP
says VBZ
, ,
`` ``
but CC
we PRP
'd MD
rather RB
be VB
prudent JJ
than IN
make NN
a DT
mistake NN
. .
'' ''

He PRP
also RB
says VBZ
CompuServe NNP
's POS
earnings NNS
continue VBP
to TO
grow VB
`` ``
20 CD
% NN
to TO
30 CD
% NN
a DT
year NN
'' ''
in IN
spite NN
of IN
tough JJ
competition NN
from IN
giants NNS
like IN
Sears NNP
and CC
IBM NNP
. .

And CC
he PRP
says VBZ
Block NNP
's POS
other JJ
businesses NNS
are VBP
growing VBG
, ,
although IN
less RBR
consistently RB
. .

H&R NNP
Block NNP
-LRB- (
NYSE NNP
; :
Symbol:HRB NNP
-RRB- )

Business NN
: :
Tax NNP
Preparation NN

Year NN
ended VBN
April NNP
30 CD
, ,
1989 CD
: :

Revenue NN
: :
$ $
899.6 CD
million CD

Net JJ
loss NN
: :
$ $
100.2 CD
million CD
; :
$ $
1.90 CD
a DT
share NN

First JJ
quarter NN
, ,
July NNP
31 CD
, ,
1989 CD
: :

Per-share JJ
earnings NNS
: :
Loss NN
of IN
8 CD
cents NNS
vs. IN
loss NN
of IN
9 CD
cents NNS

Average NNP
daily JJ
trading NN
volume NN
: :
145,954 CD
shares NNS

Philips NNP
Industries NNP
Inc. NNP
said VBD
its PRP$
board NN
authorized VBD
the DT
redemption NN
Dec. NNP
6 CD
of IN
the DT
company NN
's POS
$ $
1 CD
cumulative JJ
convertible JJ
special JJ
preferred JJ
stock NN
at IN
$ $
37.50 CD
a DT
share NN
, ,
not RB
including VBG
a DT
25 CD
cent NN
dividend NN
for IN
the DT
current JJ
quarter NN
, ,
and CC
the DT
$ $
3 CD
cumulative JJ
convertible JJ
preferred JJ
stock NN
at IN
$ $
75 CD
, ,
plus CC
a DT
75 CD
cent NN
dividend NN
for IN
the DT
current JJ
quarter NN
. .

The DT
Dayton NNP
, ,
Ohio NNP
, ,
maker NN
of IN
parts NNS
for IN
the DT
building NN
and CC
transportation NN
industries NNS
said VBD
holders NNS
of IN
the DT
two CD
issues NNS
can MD
convert VB
their PRP$
stock NN
into IN
common JJ
shares NNS
through IN
the DT
close NN
of IN
business NNP
Dec. NNP
1 CD
. .

Each DT
$ $
1 CD
cumulative JJ
share NN
can MD
be VB
converted VBN
into IN
4.92 CD
common JJ
shares NNS
; :
the DT
ratio NN
on IN
the DT
$ $
3 CD
cumulative JJ
is VBZ
eight CD
common JJ
shares NNS
for IN
each DT
$ $
3 CD
cumulative JJ
preferred JJ
. .

Philips NNP
did VBD
n't RB
indicate VB
how WRB
many JJ
shares NNS
outstanding JJ
it PRP
has VBZ
of IN
either DT
issue NN
. .

Company NN
officials NNS
could MD
n't RB
be VB
reached VBN
. .

Earlier RBR
this DT
month NN
the DT
company NN
said VBD
its PRP$
board NN
approved VBD
a DT
proposed VBN
management-led JJ
leveraged JJ
buy-out NN
at IN
$ $
25.50 CD
a DT
share NN
, ,
or CC
$ $
750 CD
million CD
. .

-LRB- (
During IN
its PRP$
centennial NN
year NN
, ,
The DT
Wall NNP
Street NNP
Journal NNP
will MD
report VB
events NNS
of IN
the DT
past JJ
century NN
that WDT
stand VBP
as IN
milestones NNS
of IN
American JJ
business NN
history NN
. .
-RRB- )

PUTS NNPS
AND CC
CALLS NNPS
, ,
STOCK NNP
MARKET NNP
PATOIS NNP
for IN
options NNS
to TO
sell VB
or CC
buy VB
a DT
company NN
's POS
shares NNS
, ,
were VBD
long JJ
an DT
arcane JJ
Wall NNP
Street NNP
art NN
best RBS
left VBN
to TO
the DT
experts NNS
, ,
who WP
used VBD
them PRP
either DT
as IN
a DT
hedge NN
or CC
for IN
pure JJ
speculation NN
. .

Options NNS
lost VBD
some DT
of IN
their PRP$
mystery NN
in IN
1973 CD
when WRB
the DT
Chicago NNP
Board NNP
of IN
Trade NNP
set VBD
up IN
a DT
special JJ
exchange NN
to TO
deal VB
in IN
them PRP
. .

Until IN
then RB
, ,
options NNS
had VBD
been VBN
traded VBN
only RB
in IN
the DT
over-the-counter JJ
market NN
, ,
mostly RB
in IN
New NNP
York NNP
, ,
and CC
in IN
an DT
almost RB
invisible JJ
secondary JJ
market NN
operating VBG
chiefly RB
by IN
telephone NN
. .

The DT
Chicago NNP
Board NNP
of IN
Trade NNP
, ,
the DT
No. NN
1 CD
U.S. NNP
grain NN
market NN
, ,
had VBD
long RB
chafed VBN
under IN
the DT
attention NN
won VBN
by IN
its PRP$
innovative JJ
archrival NN
, ,
the DT
livestock-dealing JJ
Mercantile NNP
Exchange NNP
. .

So RB
the DT
men NNS
who WP
ran VBD
the DT
grain NN
pits NNS
listened VBD
when WRB
Joseph NNP
Sullivan NNP
, ,
a DT
35-year-old JJ
former JJ
Wall NNP
Street NNP
Journal NNP
newsman NN
, ,
offered VBD
them PRP
the DT
idea NN
of IN
all-options JJ
trading NN
. .

After IN
four CD
year NN
of IN
tinkering NN
and CC
$ $
2.4 CD
million CD
in IN
seed NN
money NN
, ,
the DT
board NN
set VBN
up IN
the DT
new JJ
marketplace NN
, ,
titled VBD
it PRP
the DT
Chicago NNP
Board NNP
Options NNP
Exchange NNP
, ,
and CC
named VBD
Sullivan NNP
its PRP$
first JJ
president NN
. .

The DT
beginnings NNS
were VBD
modest JJ
. .

The DT
CBOE NNP
opened VBD
for IN
business NN
on IN
April NNP
26 CD
, ,
1973 CD
, ,
in IN
what WP
had VBD
been VBN
a DT
Board NNP
of IN
Trade NNP
lunchroom NN
. .

It PRP
listed VBD
just RB
16 CD
options NNS
to TO
buy VB
a DT
`` ``
pilot NN
list NN
'' ''
of IN
stocks NNS
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
. .

-LRB- (
Puts VBZ
, ,
or CC
sell VB
options NNS
, ,
would MD
not RB
be VB
added VBN
until IN
1977 CD
. .
-RRB- )

The DT
282 CD
members NNS
had VBD
paid VBN
$ $
10,000 CD
apiece RB
for IN
seats NNS
. .

-LRB- (
The DT
1989 CD
price NN
: :
$ $
250,000 CD
. .
-RRB- )

The DT
first JJ
day NN
's POS
business NN
was VBD
911 CD
contracts NNS
-LRB- (
each DT
for IN
100 CD
shares NNS
of IN
one CD
of IN
the DT
listed VBN
stocks NNS
-RRB- )
. .

By IN
the DT
end NN
of IN
1973 CD
, ,
the DT
number NN
of IN
`` ``
underlying VBG
'' ''
Big NNP
Board NNP
stocks NNS
had VBD
been VBN
increased VBN
to TO
50 CD
and CC
the DT
options NNS
exchange VBP
had VBD
run VBN
up IN
volume NN
of IN
1.1 CD
million CD
contracts NNS
. .

A DT
year NN
later RB
, ,
it PRP
was VBD
5.7 CD
million CD
. .

Last JJ
year NN
, ,
more JJR
than IN
1,800 CD
traders NNS
on IN
the DT
CBOE NNP
bought VBD
and CC
sold VBN
112 CD
million CD
contracts NNS
on IN
178 CD
listed VBN
stocks NNS
, ,
60 CD
% NN
of IN
all DT
U.S. NNP
listed VBD
options NNS
trading NN
. .

The DT
new JJ
exchange NN
drew VBD
instant NN
recognition NN
from IN
an DT
unwelcome JJ
quarter NN
. .

The DT
government NN
, ,
campaigning VBG
against IN
fixed VBN
brokerage NN
commissions NNS
, ,
promptly RB
sued VBD
the DT
CBOE NNP
over IN
its PRP$
minimum-fee JJ
system NN
. .

The DT
Nuclear NNP
Regulatory NNP
Commission NNP
ruled VBD
unanimously RB
that IN
the DT
financial JJ
troubles NNS
facing VBG
the DT
Seabrook NNP
, ,
N.H. NNP
, ,
nuclear-power JJ
plant NN
have VBP
no DT
impact NN
on IN
whether IN
the DT
plant NN
receives VBZ
a DT
full-power JJ
license NN
. .

Massachusetts NNP
Attorney NNP
General NNP
James NNP
Shannon NNP
, ,
opposing VBG
the DT
license NN
, ,
said VBD
he PRP
will MD
appeal VB
the DT
ruling NN
in IN
federal JJ
court NN
. .

Seabrook NNP
officials NNS
said VBD
the DT
plant NN
could MD
receive VB
a DT
full-power JJ
license NN
by IN
the DT
end NN
of IN
the DT
year NN
. .

The DT
NRC NNP
rejected VBD
Mr. NNP
Shannon NNP
's POS
argument NN
that IN
Public NNP
Service NNP
Co. NNP
of IN
New NNP
Hampshire NNP
, ,
which WDT
owns VBZ
the DT
largest JJS
share NN
of IN
Seabrook NNP
, ,
and CC
11 CD
other JJ
owners NNS
are VBP
financially RB
unable JJ
to TO
guarantee VB
the DT
plant NN
's POS
safe JJ
operation NN
. .

Mr. NNP
Shannon NNP
was VBD
seeking VBG
a DT
waiver NN
of IN
NRC NNP
policy NN
that WDT
ignores VBZ
financial JJ
considerations NNS
in IN
making VBG
licensing NN
decisions NNS
. .

In IN
its PRP$
ruling NN
, ,
the DT
NRC NNP
said VBD
that IN
because IN
Seabrook NNP
will MD
be VB
allowed VBN
to TO
charge VB
rates NNS
sufficient JJ
to TO
run VB
the DT
plant NN
and CC
make VB
payments NNS
on IN
past JJ
construction NN
costs NNS
, ,
consideration NN
of IN
the DT
owners NNS
' POS
financial JJ
condition NN
is VBZ
pointless JJ
. .

`` ``
The DT
commissioners NNS
found VBD
the DT
circumstances NNS
of IN
the DT
case NN
did VBD
n't RB
undercut VB
the DT
assurance NN
from IN
government NN
rate NN
setters NNS
of IN
available JJ
funds NNS
adequate JJ
for IN
safe JJ
operation NN
, ,
'' ''
said VBD
a DT
commission NN
spokesman NN
. .

In IN
January NNP
1988 CD
, ,
the DT
utility NN
filed VBN
for IN
protection NN
under IN
Chapter NN
11 CD
of IN
the DT
federal JJ
Bankruptcy NNP
Code NNP
, ,
allowing VBG
it PRP
to TO
continue VB
to TO
operate VB
while IN
protected VBN
from IN
creditors NNS
' POS
lawsuits NNS
. .

Bristol-Myers NNP
Squibb NNP
Co. NNP
, ,
New NNP
York NNP
, ,
the DT
newly RB
merged VBN
drug NN
and CC
health-care-product NN
company NN
, ,
reported VBD
record NN
third-quarter JJ
earnings NNS
for IN
both DT
companies NNS
in IN
the DT
merger NN
. .

Bristol-Myers NNP
Co. NNP
and CC
Squibb NNP
Corp. NNP
, ,
Princeton NNP
, ,
N.J. NNP
, ,
merged VBN
Oct. NNP
4 CD
, ,
but CC
the DT
new JJ
company NN
reported VBD
third-period JJ
earnings NNS
for IN
both DT
companies NNS
. .

For IN
the DT
fourth JJ
quarter NN
, ,
Bristol-Myers NNP
Squibb NNP
will MD
report VB
one CD
set VBN
of IN
earnings NNS
. .

Bristol-Myers NNP
said VBD
net JJ
income NN
rose VBD
15 CD
% NN
to TO
$ $
266.2 CD
million CD
, ,
or CC
93 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
232.3 CD
million CD
, ,
or CC
81 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
gained VBD
5 NN
% NN
to TO
$ $
1.59 CD
billion CD
from IN
$ $
1.52 CD
billion CD
. .

Squibb NNP
Corp. NNP
said VBD
net NN
rose VBD
17 CD
% NN
to TO
$ $
144.5 CD
million CD
, ,
or CC
$ $
1.47 CD
a DT
share NN
, ,
from IN
$ $
123 CD
million CD
, ,
or CC
$ $
1.25 CD
a DT
share NN
. .

Sales NNS
were VBD
$ $
730.1 CD
million CD
, ,
up IN
7 CD
% NN
from IN
$ $
679.5 CD
million CD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Bristol-Myers NNP
Squibb NNP
rose VBD
$ $
1.75 CD
to TO
$ $
52.75 CD
. .

PPG NNP
Industries NNP
Inc. NNP
, ,
hurt VBN
by IN
softness NN
in IN
the DT
U.S. NNP
automotive JJ
and CC
construction NN
industries NNS
, ,
said VBD
third-quarter JJ
net JJ
income NN
fell VBD
5.5 CD
% NN
to TO
$ $
106.7 CD
million CD
, ,
or CC
97 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
112.9 CD
million CD
, ,
or CC
$ $
1.03 CD
a DT
share NN
, ,
a DT
year NN
ago RB
. .

Sales NNS
were VBD
nearly RB
identical JJ
to TO
the DT
year-earlier JJ
$ $
1.36 CD
billion CD
. .

The DT
drop NN
in IN
earnings NNS
did VBD
n't RB
surprise VB
analysts NNS
who WP
said VBD
the DT
Pittsburgh NNP
glass NN
, ,
coatings NNS
and CC
chemical NN
concern NN
had VBD
been VBN
predicting VBG
a DT
slow JJ
quarter NN
because IN
of IN
the DT
sluggish JJ
construction NN
industry NN
, ,
a DT
major JJ
market NN
for IN
the DT
company NN
's POS
flat JJ
glass NN
. .

Glass NN
sales NNS
to TO
Canadian JJ
and CC
European JJ
auto NN
makers NNS
and CC
sales NNS
of IN
replacement NN
auto NN
glass NN
in IN
all DT
markets NNS
increased VBN
. .

The DT
coating NN
segment NN
also RB
posted VBD
higher JJR
sales NNS
particularly RB
in IN
North NNP
America NNP
and CC
Europe NNP
. .

But CC
sale NN
increases NNS
were VBD
offset VBN
by IN
slumping VBG
sales NNS
in IN
flat JJ
glass NN
and CC
fiberglass NNS
reinforcements NNS
, ,
the DT
company NN
said VBD
. .

Also RB
, ,
chemicals NNS
sales NNS
were VBD
slightly RB
down RB
because IN
of IN
lower JJR
prices NNS
for IN
vinyl NN
chloride NN
monomer NN
and CC
other JJ
chlorine NN
derivatives NNS
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
PPG NNP
closed VBD
at IN
$ $
41 CD
a DT
share NN
, ,
down RB
37.5 CD
cents NNS
. .
Jefferies NNP
Group NNP
Inc. NNP
said VBD
third-quarter JJ
net JJ
income NN
fell VBD
4 CD
% NN
, ,
to TO
$ $
2.2 CD
million CD
, ,
or CC
35 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
2.3 CD
million CD
, ,
or CC
31 CD
cents NNS
a DT
share NN
on IN
more JJR
shares NNS
, ,
a DT
year NN
earlier RBR
. .

Revenue NN
rose VBD
15 CD
% NN
, ,
to TO
$ $
36 CD
million CD
from IN
$ $
31.2 CD
million CD
. .

Jefferies NNP
, ,
a DT
Los NNP
Angeles NNP
holding VBG
company NN
primarily RB
engaged VBD
in IN
securities NNS
trading NN
, ,
also RB
said VBD
stock NN
market NN
declines NNS
since IN
the DT
quarter NN
ended VBN
Sept. NNP
30 CD
created VBN
an DT
unrealized JJ
pretax JJ
loss NN
of IN
about RB
$ $
6 CD
million CD
in IN
its PRP$
risk NN
arbitrage NN
account NN
. .

For IN
the DT
nine CD
months NNS
, ,
Jefferies NNP
said VBD
net NN
fell VBD
39 CD
% NN
, ,
to TO
$ $
6.8 CD
million CD
, ,
or CC
$ $
1.07 CD
a DT
share NN
, ,
from IN
$ $
11.1 CD
million CD
, ,
or CC
$ $
1.50 CD
a DT
share NN
. .

Revenue NN
fell VBD
3 CD
% NN
, ,
to TO
$ $
105.2 CD
million CD
from IN
$ $
108.4 CD
million CD
. .

Sony NNP
Corp. NNP
, ,
New NNP
York NNP
, ,
said VBD
its PRP$
bids NNS
for IN
Columbia NNP
Pictures NNP
Entertainment NNP
Inc. NNP
and CC
Guber-Peters NNP
Entertainment NNP
Co. NNP
have VBP
been VBN
cleared VBN
by IN
federal JJ
antitrust JJ
regulators NNS
. .

The DT
Japanese JJ
company NN
said VBD
the DT
waiting VBG
period NN
under IN
the DT
Hart-Scott-Rodino NNP
antitrust JJ
act NN
for IN
the DT
$ $
3.4 CD
billion CD
bid NN
for IN
Columbia NNP
and CC
the DT
$ $
200 CD
million CD
offer NN
for IN
Guber-Peters NNP
expired VBD
Monday NNP
. .

Sony NNP
has VBZ
agreed VBN
to TO
buy VB
both DT
companies NNS
, ,
but CC
is VBZ
in IN
a DT
legal JJ
battle NN
with IN
Warner NNP
Communications NNP
Inc. NNP
over IN
the DT
services NNS
of IN
producers NNS
Peter NNP
Guber NNP
and CC
Jon NNP
Peters NNP
. .
In IN
a DT
filing NN
with IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
Sony NNP
also RB
said VBD
two CD
more JJR
suits NNS
have VBP
been VBN
filed VBN
opposing VBG
the DT
company NN
's POS
agreement NN
to TO
buy VB
Columbia NNP
. .

Sony NNP
added VBD
that IN
a DT
hearing NN
has VBZ
been VBN
set VBN
for IN
Thursday NNP
in IN
the DT
Delaware NNP
Chancery NNP
Court NNP
in IN
one CD
of IN
the DT
suits NNS
. .

Thursday NNP
, ,
October NNP
19 CD
, ,
1989 CD

The DT
key JJ
U.S. NNP
and CC
foreign JJ
annual JJ
interest NN
rates NNS
below IN
are VBP
a DT
guide NN
to TO
general JJ
levels NNS
but CC
do VBP
n't RB
always RB
represent VB
actual JJ
transactions NNS
. .

PRIME JJ
RATE NN
: :
10 CD
1\/2 CD
% NN
. .

The DT
base NN
rate NN
on IN
corporate JJ
loans NNS
at IN
large JJ
U.S. NNP
money NN
center NN
commercial JJ
banks NNS
. .

FEDERAL JJ
FUNDS NNS
: :
8 CD
3\/4 CD
% NN
high JJ
, ,
8 CD
5\/8 CD
% NN
low JJ
, ,
8 CD
11\/16 CD
% NN
near IN
closing VBG
bid NN
, ,
8 CD
11\/16 CD
% NN
offered VBN
. .

Reserves NNS
traded VBN
among IN
commercial JJ
banks NNS
for IN
overnight JJ
use NN
in IN
amounts NNS
of IN
$ $
1 CD
million CD
or CC
more JJR
. .

Source NN
: :
Fulton NNP
Prebon NNP
-LRB- (
U.S.A NNP
. .
-RRB- )
Inc NNP
. .

DISCOUNT NN
RATE NN
: :
7 CD
% NN
. .

The DT
charge NN
on IN
loans NNS
to TO
depository NN
institutions NNS
by IN
the DT
New NNP
York NNP
Federal NNP
Reserve NNP
Bank NNP
. .

CALL NN
MONEY NN
: :
9 CD
3\/4 CD
% NN
to TO
10 CD
% NN
. .

The DT
charge NN
on IN
loans NNS
to TO
brokers NNS
on IN
stock NN
exchange NN
collateral NN
. .

COMMERCIAL JJ
PAPER NN
placed VBN
directly RB
by IN
General NNP
Motors NNPS
Acceptance NNP
Corp. NNP
: :
8.45 CD
% NN
30 CD
to TO
44 CD
days NNS
; :
8.25 CD
% NN
45 CD
to TO
73 CD
days NNS
; :
8.325 CD
% NN
74 CD
to TO
99 CD
days NNS
; :
7.75 CD
% NN
100 CD
to TO
179 CD
days NNS
; :
7.50 CD
% NN
180 CD
to TO
270 CD
days NNS
. .

COMMERCIAL JJ
PAPER NN
: :
High-grade JJ
unsecured JJ
notes NNS
sold VBN
through IN
dealers NNS
by IN
major JJ
corporations NNS
in IN
multiples NNS
of IN
$ $
1,000 CD
: :
8.525 CD
% NN
30 CD
days NNS
; :
8.425 CD
% NN
60 CD
days NNS
; :
8.375 CD
% NN
90 CD
days NNS
. .

CERTIFICATES NNS
OF IN
DEPOSIT NN
: :
8.05 CD
% NN
one CD
month NN
; :
8.02 CD
% NN
two CD
months NNS
; :
8 CD
% NN
three CD
months NNS
; :
7.98 CD
% NN
six CD
months NNS
; :
7.95 CD
% NN
one CD
year NN
. .

Average NNP
of IN
top JJ
rates NNS
paid VBN
by IN
major JJ
New NNP
York NNP
banks NNS
on IN
primary JJ
new JJ
issues NNS
of IN
negotiable JJ
C.D.s NNS
, ,
usually RB
on IN
amounts NNS
of IN
$ $
1 CD
million CD
and CC
more JJR
. .

The DT
minimum JJ
unit NN
is VBZ
$ $
100,000 CD
. .

Typical JJ
rates NNS
in IN
the DT
secondary JJ
market NN
: :
8.60 CD
% NN
one CD
month NN
; :
8.60 CD
% NN
three CD
months NNS
; :
8.45 CD
% NN
six CD
months NNS
. .

BANKERS NNS
ACCEPTANCES NNS
: :
8.45 CD
% NN
30 CD
days NNS
; :
8.32 CD
% NN
60 CD
days NNS
; :
8.32 CD
% NN
90 CD
days NNS
; :
8.17 CD
% NN
120 CD
days NNS
; :
8.08 CD
% NN
150 CD
days NNS
; :
7.98 CD
% NN
180 CD
days NNS
. .

Negotiable JJ
, ,
bank-backed JJ
business NN
credit NN
instruments NNS
typically RB
financing VBG
an DT
import NN
order NN
. .

LONDON NNP
LATE JJ
EURODOLLARS NNS
: :
8 CD
11\/16 CD
% NN
to TO
8 CD
9\/16 CD
% NN
one CD
month NN
; :
8 CD
11\/16 CD
% NN
to TO
8 CD
9\/16 CD
% NN
two CD
months NNS
; :
8 CD
11\/16 CD
% NN
to TO
8 CD
9\/16 CD
% NN
three CD
months NNS
; :
8 CD
5\/8 CD
% NN
to TO
8 CD
1\/2 CD
% NN
four CD
months NNS
; :
8 CD
9\/16 CD
% NN
to TO
8 CD
7\/16 CD
% NN
five CD
months NNS
; :
8 CD
9\/16 CD
% NN
to TO
8 CD
7\/16 CD
% NN
six CD
months NNS
. .

LONDON NNP
INTERBANK NNP
OFFERED NNP
RATES NNS
-LRB- (
LIBOR NNP
-RRB- )
: :
8 CD
3\/4 CD
% NN
one CD
month NN
; :
8 CD
11\/16 CD
% NN
three CD
months NNS
; :
8 CD
9\/16 CD
% NN
six CD
months NNS
; :
8 CD
9\/16 CD
% NN
one CD
year NN
. .

The DT
average NN
of IN
interbank NN
offered VBD
rates NNS
for IN
dollar NN
deposits NNS
in IN
the DT
London NNP
market NN
based VBN
on IN
quotations NNS
at IN
five CD
major JJ
banks NNS
. .

FOREIGN JJ
PRIME JJ
RATES NNS
: :
Canada NNP
13.50 CD
% NN
; :
Germany NNP
8.50 CD
% NN
; :
Japan NNP
4.875 CD
% NN
; :
Switzerland NNP
8.50 CD
% NN
; :
Britain NNP
15 CD
% NN
. .

These DT
rate NN
indications NNS
are VBP
n't RB
directly RB
comparable JJ
; :
lending NN
practices NNS
vary VBP
widely RB
by IN
location NN
. .

TREASURY NN
BILLS NNS
: :
Results NNS
of IN
the DT
Monday NNP
, ,
October NNP
16 CD
, ,
1989 CD
, ,
auction NN
of IN
short-term NNP
U.S. NNP
government NN
bills NNS
, ,
sold VBN
at IN
a DT
discount NN
from IN
face NN
value NN
in IN
units NNS
of IN
$ $
10,000 CD
to TO
$ $
1 CD
million CD
: :
7.37 CD
% NN
13 CD
weeks NNS
; :
7.42 CD
% NN
26 CD
weeks NNS
. .

FEDERAL NNP
HOME NNP
LOAN NNP
MORTGAGE NNP
CORP NNP
. .
-LRB- (
Freddie NNP
Mac NNP
-RRB- )
: :
Posted VBN
yields NNS
on IN
30-year JJ
mortgage NN
commitments NNS
for IN
delivery NN
within IN
30 CD
days NNS
. .

9.87 CD
% NN
, ,
standard JJ
conventional JJ
fixed-rate JJ
mortgages NNS
; :
7.875 CD
% NN
, ,
2 CD
% NN
rate NN
capped VBD
one-year JJ
adjustable JJ
rate NN
mortgages NNS
. .

Source NN
: :
Telerate NNP
Systems NNP
Inc NNP
. .

FEDERAL NNP
NATIONAL NNP
MORTGAGE NNP
ASSOCIATION NNP
-LRB- (
Fannie NNP
Mae NNP
-RRB- )
: :
Posted VBN
yields NNS
on IN
30 CD
year NN
mortgage NN
commitments NNS
for IN
delivery NN
within IN
30 CD
days NNS
-LRB- (
priced VBN
at IN
par NN
-RRB- )
9.81 CD
% NN
, ,
standard JJ
conventional JJ
fixed-rate JJ
mortgages NNS
; :
8.70 CD
% NN
, ,
6\/2 CD
rate NN
capped VBD
one-year JJ
adjustable JJ
rate NN
mortgages NNS
. .

Source NN
: :
Telerate NNP
Systems NNP
Inc NNP
. .

MERRILL NNP
LYNCH NNP
READY NNP
ASSETS NNP
TRUST NNP
: :
8.50 CD
% NN
. .

Annualized VBN
average JJ
rate NN
of IN
return NN
after IN
expenses NNS
for IN
the DT
past JJ
30 CD
days NNS
; :
not RB
a DT
forecast NN
of IN
future NN
returns NNS
. .
China NNP
said VBD
the DT
question NN
of IN
Taiwan NNP
's POS
membership NN
in IN
the DT
General NNP
Agreement NNP
on IN
Tariffs NNPS
and CC
Trade NNP
should MD
be VB
considered VBN
only RB
after IN
China NNP
's POS
own JJ
membership NN
in IN
the DT
97-nation JJ
organization NN
is VBZ
restored VBN
. .

Both DT
China NNP
and CC
Taiwan NNP
are VBP
seeking VBG
seats NNS
in IN
GATT NNP
, ,
which WDT
sponsors VBZ
trade-liberalizing JJ
agreements NNS
and CC
sets VBZ
world-commerce JJ
rules NNS
. .

`` ``
As IN
one CD
of IN
China NNP
's POS
provinces NNS
, ,
Taiwan NNP
has VBZ
no DT
right NN
to TO
join VB
GATT NNP
on IN
its PRP$
own JJ
, ,
'' ''
Foreign NNP
Ministry NNP
spokesman NN
Li NNP
Zhaoxing NNP
said VBD
. .

China NNP
, ,
under IN
the DT
Nationalist JJ
government NN
of IN
Chiang NNP
Kai-shek NNP
, ,
was VBD
a DT
founding NN
member NN
of IN
GATT NNP
in IN
1947 CD
. .

The DT
Nationalists NNPS
withdrew VBD
in IN
1950 CD
, ,
after IN
their PRP$
flight NN
to TO
Taiwan NNP
, ,
and CC
the DT
Communist NNP
government NN
in IN
Beijing NNP
applied VBD
for IN
restoration NN
of IN
China NNP
's POS
membership NN
in IN
July NNP
1986 CD
. .

The DT
U.S. NNP
has VBZ
voiced VBN
opposition NN
to TO
China NNP
's POS
bid NN
for IN
GATT NNP
membership NN
, ,
saying VBG
China NNP
has VBZ
yet RB
to TO
undertake VB
needed VBN
economic JJ
reforms NNS
. .

Japan NNP
's POS
biggest JJS
women NNS
's POS
underwear NN
maker NN
, ,
Wacoal NNP
Corp. NNP
, ,
said VBD
that IN
it PRP
developed VBD
a DT
sports NNS
car NN
that IN
it PRP
plans VBZ
to TO
market VB
in IN
two CD
years NNS
. .

The DT
`` ``
Jiotto NNP
Caspita NNP
'' ''
can MD
run VB
at IN
over IN
188 CD
miles NNS
an DT
hour NN
, ,
a DT
company NN
spokesman NN
said VBD
. .

The DT
base NN
price NN
of IN
the DT
car NN
is VBZ
estimated VBN
at IN
30 CD
million CD
yen NN
-LRB- (
about RB
$ $
213,000 CD
-RRB- )
. .

Wacoal NNP
said VBD
it PRP
intends VBZ
to TO
produce VB
the DT
cars NNS
through IN
a DT
car NN
manufacturer NN
. .
Along IN
with IN
the DT
car NN
, ,
Wacoal NNP
plans VBZ
to TO
launch VB
a DT
series NN
of IN
Caspita-brand JJ
men NNS
's POS
underwear NN
. .

`` ``
Our PRP$
image NN
is VBZ
a DT
company NN
that WDT
makes VBZ
women NNS
's POS
products NNS
, ,
'' ''
said VBD
a DT
Wacoal NNP
spokesman NN
. .

`` ``
Now RB
, ,
we PRP
're VBP
going VBG
to TO
sell VB
to TO
men NNS
. .
'' ''

The DT
British JJ
satirical JJ
magazine NN
Private NNP
Eye NNP
won VBD
an DT
appeal NN
against IN
the DT
size NN
of IN
a DT
$ $
960,000 CD
libel NN
award NN
to TO
Sonia NNP
Sutcliffe NNP
, ,
the DT
estranged VBN
wife NN
of IN
the DT
`` ``
Yorkshire NNP
Ripper NNP
'' ''
mass NN
murderer NN
. .

An DT
appeals-court NN
panel NN
slashed VBD
all DT
but CC
$ $
40,000 CD
from IN
the DT
award NN
, ,
the DT
largest JJS
ever RB
set VBN
by IN
a DT
British JJ
jury NN
, ,
pending VBG
a DT
reassessment NN
of IN
the DT
damages NNS
. .

But CC
the DT
panel NN
dismissed VBD
the DT
magazine NN
's POS
contention NN
that IN
it PRP
had VBD
n't RB
libeled VBN
Mrs. NNP
Sutcliffe NNP
when WRB
it PRP
accused VBD
her PRP
of IN
trying VBG
to TO
sell VB
her PRP$
story NN
to TO
capitalize VB
on IN
the DT
notoriety NN
of IN
her PRP$
husband NN
. .

Private NNP
Eye NNP
had VBD
been VBN
threatened VBN
with IN
closure NN
because IN
it PRP
could MD
n't RB
afford VB
the DT
libel NN
payment NN
. .

Senshukai NNP
Co. NNP
, ,
a DT
travel NN
agent NN
based VBN
in IN
Osaka NNP
, ,
Japan NNP
, ,
announced VBD
that IN
it PRP
and CC
Nissho NNP
Iwai NNP
Corp. NNP
, ,
a DT
major JJ
Japanese JJ
trading NN
house NN
, ,
will MD
jointly RB
build VB
a DT
130-unit JJ
condominium NN
in IN
Queensland NNP
, ,
Australia NNP
. .

Senshukai NNP
said VBD
the DT
partners NNS
plan VBP
to TO
rent VB
to TO
tourists NNS
but CC
will MD
also RB
sell VB
to TO
interested JJ
parties NNS
. .

Senshukai NNP
has VBZ
a DT
60 CD
% NN
stake NN
in IN
the DT
venture NN
and CC
Nissho NNP
Iwai NNP
has VBZ
the DT
rest NN
. .

Construction NN
of IN
the DT
34-floor JJ
building NN
will MD
begin VB
next JJ
May NNP
and CC
should MD
be VB
completed VBN
in IN
April NNP
1992 CD
. .

Units NNP
will MD
cost VB
from IN
500,000 CD
to TO
3.5 CD
million CD
Australian JJ
dollars NNS
-LRB- (
about IN
US$ $
386,000 CD
to TO
US$ $
2.7 CD
million CD
-RRB- )
. .

The DT
Soviet NNP
Union NNP
has VBZ
halted VBN
construction NN
of IN
two CD
Chernobyl-type JJ
nuclear JJ
reactors NNS
and CC
is VBZ
reassessing VBG
the DT
future NN
of IN
12 CD
other JJ
existing VBG
reactors NNS
. .

Viktor NNP
Sidorenko NNP
, ,
vice NN
chairman NN
of IN
the DT
State NNP
Committee NNP
on IN
Nuclear NNP
Safety NNP
, ,
said VBD
the DT
two CD
reactors NNS
were VBD
at IN
Kursk NNP
and CC
Smolensk NNP
. .

News NNS
of IN
the DT
halt NN
comes VBZ
amid IN
growing VBG
anger NN
in IN
the DT
Ukraine NNP
and CC
Byelorussia NNP
over IN
continuing VBG
high JJ
levels NNS
of IN
radiation NN
from IN
Chernobyl NNP
. .

A DT
former JJ
vice NN
president NN
of IN
the DT
Singapore NNP
branch NN
of IN
Drexel NNP
Burnham NNP
Lambert NNP
Group NNP
Inc. NNP
was VBD
charged VBN
in IN
court NN
yesterday NN
on IN
19 CD
counts NNS
of IN
cheating NN
. .

Francis NNP
Dang NNP
, ,
41 CD
, ,
is VBZ
alleged VBN
to TO
have VB
been VBN
involved VBN
in IN
cheating NN
Drexel NNP
Burnham NNP
Lambert NNP
of IN
up IN
to TO
2.1 CD
million CD
Singapore NNP
dollars NNS
-LRB- (
US$ $
1.1 CD
million CD
-RRB- )
by IN
carrying VBG
out RP
unauthorized JJ
transactions NNS
on IN
the DT
London NNP
Commodities NNP
Exchange NNP
and CC
the DT
International NNP
Petroleum NNP
Exchange NNP
. .

Mr. NNP
Dang NNP
is VBZ
alleged VBN
to TO
have VB
used VBN
the DT
account NN
of IN
Singapore NNP
hotel NN
and CC
property NN
magnate NN
Ong NNP
Beng NNP
Seng NNP
to TO
effect VB
the DT
transactions NNS
. .

Japan NNP
says VBZ
its PRP$
economic JJ
growth NN
will MD
fall VB
sharply RB
if IN
it PRP
cuts VBZ
back RB
on IN
the DT
use NN
of IN
oil NN
, ,
coal NN
and CC
gas NN
to TO
cap VB
emissions NNS
of IN
carbon NN
dioxide NN
. .
A DT
Ministry NNP
of IN
International NNP
Trade NNP
and CC
Industry NN
official NN
said VBD
that IN
a DT
study NN
found VBD
that IN
Japan NNP
's POS
annual JJ
economic JJ
growth NN
rate NN
would MD
eventually RB
be VB
only RB
0.8 CD
% NN
if IN
carbon-dioxide NN
emissions NNS
remained VBD
at IN
this DT
year NN
's POS
level NN
of IN
300 CD
million CD
tons NNS
. .

The DT
study NN
will MD
support VB
arguments NNS
against IN
capping VBG
carbon-dioxide NN
emissions NNS
that IN
Japan NNP
will MD
make VB
at IN
a DT
U.N.-backed JJ
conference NN
on IN
atmospheric JJ
pollution NN
next JJ
month NN
. .

The DT
study NN
said VBD
Japan NNP
's POS
carbon-dioxide NN
emissions NNS
would MD
slightly RB
more JJR
than IN
double JJ
by IN
2010 CD
unless IN
the DT
nation NN
reduced VBD
its PRP$
dependence NN
on IN
fossil JJ
fuels NNS
. .

It PRP
said VBD
that IN
expanding VBG
nuclear-power JJ
capability NN
is VBZ
the DT
quickest JJS
way NN
to TO
lessen VB
that DT
dependence NN
. .

But CC
increased VBN
reliance NN
on IN
nuclear JJ
power NN
would MD
meet VB
stiff JJ
opposition NN
from IN
environmentalists NNS
, ,
a DT
second JJ
ministry NN
official NN
said VBD
. .

Just RB
in IN
time NN
for IN
Halloween NNP
, ,
Britain NNP
's POS
Oxford NNP
University NNP
Press NNP
is VBZ
publishing VBG
a DT
`` ``
Dictionary NNP
of IN
Superstitions NNPS
. .
'' ''

The DT
books NNS
1,500 CD
entries NNS
include VBP
stepping VBG
on IN
cracks NNS
and CC
knocking VBG
on IN
wood NN
... :
. .

In IN
New NNP
Zealand NNP
's POS
tiny JJ
township NN
of IN
Kaitaia NNP
, ,
which WDT
has VBZ
had VBN
direct JJ
dialing NN
for IN
less JJR
than IN
a DT
year NN
, ,
about IN
30 CD
angry JJ
phone-company NN
customers NNS
questioned VBD
the DT
size NN
of IN
their PRP$
bills NNS
. .

It PRP
turned VBD
out RP
their PRP$
children NNS
had VBD
been VBN
dialing VBG
a DT
`` ``
sex NN
fantasy NN
'' ''
service NN
in IN
the DT
U.S. NNP
. .

Slowing VBG
sales NNS
of IN
its PRP$
profitable JJ
Jeep NNP
Cherokee NNP
and CC
Wagoneer NNP
sport NN
utility NN
vehicles NNS
are VBP
forcing VBG
Chrysler NNP
Corp. NNP
to TO
temporarily RB
idle JJ
its PRP$
Toledo NNP
, ,
Ohio NNP
, ,
assembly NN
plant NN
for IN
the DT
first JJ
time NN
since IN
April NNP
1986 CD
. .

About IN
5,500 CD
hourly JJ
workers NNS
will MD
be VB
laid VBN
off IN
for IN
a DT
week NN
beginning VBG
Oct. NNP
23 CD
, ,
and CC
overtime NN
has VBZ
been VBN
eliminated VBN
at IN
the DT
plant NN
for IN
the DT
fourth JJ
quarter NN
, ,
a DT
Chrysler NNP
spokesman NN
said VBD
. .

That DT
's VBZ
a DT
significant JJ
change NN
from IN
earlier RBR
this DT
year NN
when WRB
the DT
plant NN
worked VBD
substantial JJ
overtime NN
only RB
to TO
have VB
sales NNS
fall VB
short NN
of IN
the DT
company NN
's POS
bullish JJ
expectations NNS
. .

Sales NNS
of IN
Cherokee NNP
, ,
the DT
best-selling JJ
Jeep NN
, ,
and CC
the DT
lower-volume JJ
Wagoneer NNP
were VBD
actually RB
up IN
about IN
10 CD
% NN
through IN
the DT
end NN
of IN
last JJ
month NN
. .

But CC
that DT
's VBZ
less JJR
than IN
Chrysler NNP
officials NNS
had VBD
hoped VBN
when WRB
they PRP
set VBD
ambitious JJ
production NN
schedules NNS
for IN
the DT
Toledo NNP
plant NN
earlier RBR
this DT
year NN
. .

Even RB
when WRB
it PRP
became VBD
clear VB
this DT
spring NN
that DT
demand NN
was VBD
n't RB
coming VBG
up IN
to TO
expectations NNS
, ,
Chrysler NNP
officials NNS
`` ``
resisted VBN
'' ''
cutting VBG
output NN
because IN
Cherokee NNP
and CC
Wagoneer NNP
are VBP
`` ``
very RB
profitable JJ
vehicles NNS
, ,
'' ''
the DT
spokesman NN
said VBD
. .

Instead RB
, ,
Chrysler NNP
officials NNS
in IN
late JJ
May NNP
slapped VBD
$ $
1,000 CD
cash NN
rebates NNS
on IN
the DT
vehicles NNS
, ,
including VBG
the DT
first JJ
such JJ
incentives NNS
on IN
the DT
popular JJ
four-door JJ
Cherokee NNP
since IN
Chrysler NNP
bought VBD
Jeep NN
in IN
1987 CD
. .

The DT
incentives NNS
boosted VBD
sales NNS
for IN
a DT
while NN
, ,
but CC
the DT
pace NN
had VBD
cooled VBN
by IN
last JJ
month NN
. .

The DT
result NN
: :
Chrysler NNP
dealers NNS
had VBD
a DT
bloated JJ
82-day JJ
supply NN
of IN
the DT
Cherokee NNP
as IN
of IN
the DT
end NN
of IN
last JJ
month NN
and CC
a DT
161-day JJ
supply NN
of IN
the DT
Comanche NNP
pickup NN
, ,
which WDT
Toledo NNP
also RB
builds VBZ
. .

A DT
60-day JJ
to TO
65-day VB
supply NN
is VBZ
considered VBN
normal JJ
. .

At IN
Jasper NNP
Jeep-Eagle NNP
, ,
one CD
of IN
the DT
largest JJS
Jeep NN
dealerships NNS
in IN
the DT
country NN
, ,
inventories NNS
have VBP
continued VBN
to TO
swell VB
. .

Steve NNP
Lowe NNP
, ,
general JJ
manager NN
of IN
Jasper NNP
, ,
Ga. NNP
, ,
dealership NN
, ,
said VBD
new JJ
rebates NNS
of IN
$ $
500 CD
to TO
$ $
1,000 CD
on IN
the DT
models NNS
have VBP
stimulated VBN
sales NNS
, ,
but CC
not RB
enough RB
to TO
significantly RB
cut VB
dealer NN
stocks NNS
. .

`` ``
If IN
people NNS
are VBP
n't RB
buying VBG
, ,
you PRP
have VBP
to TO
close VB
plants NNS
, ,
'' ''
he PRP
said VBD
. .

Separately RB
, ,
Chrysler NNP
said VBD
it PRP
will MD
idle VB
for IN
four CD
weeks NNS
the DT
St. NNP
Louis NNP
assembly NN
plant NN
that WDT
builds VBZ
the DT
Chrysler NNP
LeBaron NNP
and CC
Dodge NNP
Daytona NNP
models NNS
. .

Chrysler NNP
officials NNS
said VBD
the DT
plant NN
is VBZ
scheduled VBN
to TO
resume VB
production NN
on IN
Nov. NNP
20. CD
, ,
and CC
3,300 CD
hourly JJ
workers NNS
will MD
be VB
affected VBN
. .

General NNP
Motors NNPS
Corp. NNP
, ,
meanwhile RB
, ,
said VBD
it PRP
will MD
idle VB
for IN
yet RB
another DT
week NN
its PRP$
Linden NNP
, ,
N.J. NNP
, ,
assembly NN
plant NN
, ,
bringing VBG
to TO
three CD
weeks NNS
the DT
total JJ
time NN
that DT
plant NN
will MD
be VB
idled VBN
during IN
October NNP
. .

GM NNP
said VBD
the DT
assembly NN
plant NN
, ,
which WDT
builds VBZ
the DT
Chevrolet NNP
Corsica NNP
and CC
Beretta NNP
compact JJ
cars NNS
, ,
originally RB
was VBD
scheduled VBN
to TO
reopen VB
Monday NNP
but CC
now RB
will MD
not RB
resume VB
production NN
until IN
Oct. NNP
30 CD
. .

The DT
shutdown NN
affects VBZ
3,000 CD
workers NNS
and CC
will MD
cut VB
output NN
by IN
about IN
4,320 CD
cars NNS
. .

Sluggish JJ
sales NNS
of IN
the DT
Beretta NNP
and CC
Corsica NNP
spurred VBD
GM NNP
to TO
offer VB
$ $
800 CD
rebates NNS
on IN
those DT
cars NNS
. .

The DT
Corsica NNP
and CC
Beretta NNP
make VB
up IN
the DT
highest-volume JJ
car NN
line NN
at IN
Chevrolet NNP
, ,
but CC
sales NNS
of IN
the DT
cars NNS
are VBP
off IN
9.6 CD
% NN
for IN
the DT
year NN
, ,
and CC
fell VBD
a DT
steep JJ
34.2 CD
% NN
early JJ
this DT
month NN
. .
GM NNP
has VBZ
scheduled VBN
overtime NN
at IN
its PRP$
Lordstown NNP
, ,
Ohio NNP
, ,
and CC
Janesville NNP
, ,
Wis. NNP
, ,
assembly NN
plants NNS
, ,
which WDT
build VBP
the DT
Chevrolet NNP
Cavalier NNP
. .

Ford NNP
Motor NNP
Co. NNP
said VBD
it PRP
will MD
shut VB
down RB
for IN
one CD
week NN
its PRP$
Kentucky NNP
Truck NNP
Plant NNP
because IN
of IN
a DT
`` ``
shortage NN
of IN
dealer NN
orders NNS
. .
'' ''

The DT
shutdown NN
will MD
idle VB
2,000 CD
hourly JJ
employees NNS
and CC
eliminate VB
production NN
of IN
about IN
1,300 CD
medium NN
and CC
heavy JJ
duty NN
trucks NNS
. .

The DT
assembly NN
plant NN
is VBZ
scheduled VBN
to TO
resume VB
production NN
on IN
Oct. NNP
30 CD
. .

Meanwhile RB
, ,
the DT
nine CD
major JJ
U.S. NNP
auto NN
makers NNS
plan VBP
to TO
build VB
143,178 CD
cars NNS
this DT
week NN
, ,
down RB
11.7 CD
% NN
from IN
162,190 CD
a DT
year NN
ago RB
and CC
flat JJ
with IN
last JJ
week NN
's POS
142,117 CD
car NN
output NN
. .
f NN
- :
Includes VBZ
Chevrolet NNP
Prizm NNP
and CC
Toyota NNP
Corolla NNP
. .

r NN
- :
Revised NNP
. .

x NN
- :
Year-to-date JJ
1988 CD
figure NN
includes VBZ
Volkswagen NNP
domestic-production NN
through IN
July NNP
. .

LOTUS NNP
DEVELOPMENT NNP
Corp. NNP
's POS
net JJ
income NN
rose VBD
61 CD
% NN
in IN
the DT
third JJ
quarter NN
from IN
the DT
year-earlier JJ
period NN
. .

Yesterday NN
's POS
edition NN
misstated VBD
the DT
percentage NN
increase NN
. .

First NNP
Fidelity NNP
Bancorp. NNP
, ,
Lawrenceville NNP
, ,
N.J. NNP
, ,
reported VBD
a DT
24 CD
% NN
drop NN
in IN
third-quarter JJ
profit NN
, ,
because IN
of IN
a DT
decline NN
in IN
earning VBG
assets NNS
, ,
lower JJR
loan NN
volume NN
and CC
tighter JJR
interest NN
margins NNS
. .

The DT
bank NN
holding VBG
company NN
posted VBD
net JJ
income NN
of IN
$ $
54.4 CD
million CD
, ,
or CC
87 CD
cents NNS
a DT
share NN
, ,
including VBG
$ $
1.7 CD
million CD
, ,
or CC
three CD
cents NNS
a DT
share NN
, ,
in IN
one-time JJ
tax NN
benefits NNS
. .

A DT
year NN
earlier RBR
, ,
net NN
was VBD
$ $
71.6 CD
million CD
, ,
or CC
$ $
1.22 CD
a DT
share NN
. .

First NNP
Fidelity NNP
said VBD
non-performing JJ
assets NNS
increased VBN
to TO
$ $
482.3 CD
million CD
Sept. NNP
30 CD
from IN
$ $
393.1 CD
million CD
June NNP
30 CD
. .

The DT
rise NN
resulted VBD
from IN
the DT
transfer NN
to TO
non-accrual JJ
status NN
of IN
$ $
96 CD
million CD
`` ``
owed VBN
by IN
two CD
national JJ
borrowers NNS
and CC
one CD
local JJ
commercial JJ
real-estate NN
customer NN
, ,
'' ''
First NNP
Fidelity NNP
said VBD
. .

It PRP
said VBD
it PRP
does VBZ
n't RB
anticipate VB
any DT
loss NN
of IN
principal JJ
on IN
two CD
of IN
the DT
loans NNS
, ,
comprising VBG
$ $
85 CD
million CD
of IN
these DT
credits NNS
. .

First NNP
Fidelity NNP
said VBD
it PRP
boosted VBD
its PRP$
loan-loss NN
provision NN
to TO
$ $
50.9 CD
million CD
from IN
$ $
20.4 CD
million CD
a DT
year NN
ago RB
, ,
primarily RB
because IN
of IN
a DT
weaker JJR
real-estate NN
sector NN
in IN
the DT
region NN
. .

VIACOM NNP
Inc. NNP
's POS
loss NN
narrowed VBD
to TO
$ $
21.7 CD
million CD
in IN
the DT
third JJ
quarter NN
from IN
$ $
56.9 CD
million CD
a DT
year NN
ago RB
. .

Thursday NNP
's POS
edition NN
misstated VBD
the DT
narrowing NN
. .

Coastal NNP
Corp. NNP
said VBD
it PRP
signed VBD
a DT
definitive JJ
agreement NN
with IN
Aruba NNP
to TO
restart VB
a DT
150,000-barrel-a-day JJ
oil NN
refinery NN
. .

Coastal NNP
would MD
n't RB
disclose VB
the DT
terms NNS
. .

Coastal NNP
, ,
a DT
Houston NNP
oil NN
and CC
gas NN
company NN
, ,
said VBD
it PRP
expects VBZ
to TO
begin VB
operations NNS
in IN
October NNP
1990 CD
. .

The DT
company NN
said VBD
it PRP
may MD
install VB
additional JJ
processing NN
units NNS
at IN
the DT
refinery NN
to TO
produce VB
higher JJR
octane NN
gasolines NNS
and CC
other JJ
products NNS
. .

The DT
company NN
said VBD
it PRP
was VBD
leasing VBG
the DT
site NN
of IN
the DT
refinery NN
from IN
Aruba NNP
. .

Exxon NNP
Corp. NNP
built VBD
the DT
plant NN
but CC
closed VBD
it PRP
in IN
1985 CD
and CC
sold VBN
off IN
much NN
of IN
the DT
equipment NN
to TO
dismantling VBG
contractors NNS
, ,
from IN
whom WP
Coastal NNP
bought VBD
back JJ
much NN
of IN
the DT
equipment NN
. .

A DT
Coastal NNP
spokesman NN
said VBD
the DT
biggest JJS
expense NN
will MD
be VB
to TO
refurbish VB
the DT
refinery NN
but CC
would MD
n't RB
say VB
how WRB
much JJ
that WDT
would MD
be VB
. .

The DT
prime JJ
minister NN
of IN
Aruba NNP
has VBZ
said VBD
it PRP
could MD
cost VB
around IN
$ $
100 CD
million CD
. .

Coastal NNP
said VBD
the DT
refinery NN
's POS
expected VBN
daily JJ
production NN
will MD
include VB
34,000 CD
barrels NNS
of IN
jet NN
fuel NN
, ,
32,000 CD
barrels NNS
of IN
low-sulfur JJ
diesel NN
fuel NN
, ,
30,000 CD
barrels NNS
of IN
naphtha NN
, ,
17,000 CD
barrels NNS
of IN
residual JJ
fuel NN
oil NN
, ,
8,000 CD
barrels NNS
of IN
asphalt NN
and CC
25,000 CD
barrels NNS
of IN
low-sulfur JJ
catalytic JJ
cracker NN
feedstock NN
. .

Loral NNP
Corp. NNP
said VBD
fiscal JJ
second-quarter JJ
net JJ
income NN
was VBD
$ $
19.8 CD
million CD
, ,
or CC
79 CD
cents NNS
a DT
share NN
, ,
compared VBN
with IN
year-earlier JJ
earnings NNS
from IN
continuing VBG
operations NNS
of IN
$ $
15.6 CD
million CD
, ,
or CC
62 CD
cents NNS
a DT
share NN
. .

Year-earlier JJ
net NN
of IN
$ $
21 CD
million CD
, ,
or CC
84 CD
cents NNS
a DT
share NN
, ,
included VBD
the DT
results NNS
of IN
Loral NNP
's POS
former JJ
Aircraft NNP
Braking NNP
Systems NNPS
and CC
Engineered NNP
Fabrics NNP
divisions NNS
, ,
which WDT
were VBD
sold VBN
April NNP
27 CD
to TO
the DT
company NN
's POS
chairman NN
, ,
Bernard NNP
L. NNP
Schwartz NNP
. .

The DT
defense NN
electronics NNS
concern VBP
attributed VBD
the DT
operating VBG
improvement NN
to TO
higher JJR
profit NN
margins NNS
and CC
lower JJR
net JJ
interest NN
expense NN
. .

Loral NNP
also RB
reported VBD
that IN
its PRP$
bookings NNS
more RBR
than IN
doubled VBN
to TO
$ $
654 CD
million CD
in IN
the DT
quarter NN
, ,
ended VBN
Sept. NNP
30 CD
, ,
from IN
$ $
257 CD
million CD
, ,
in IN
the DT
year-before JJ
period NN
. .

The DT
increase NN
was VBD
due JJ
mainly RB
to TO
a DT
$ $
325 CD
million CD
order NN
from IN
Turkey NNP
to TO
equip VB
its PRP$
fleet NN
of IN
F-16 NNP
fighters NNS
with IN
Loral NNP
's POS
ALQ-178 NNP
Rapport NNP
III NNP
electronic JJ
countermeasures NNS
system NN
. .

The DT
order NN
is VBZ
the DT
biggest JJS
in IN
the DT
company NN
's POS
history NN
. .

Sales NNS
in IN
the DT
latest JJS
period NN
edged VBD
up IN
to TO
$ $
295.7 CD
million CD
from IN
$ $
293.9 CD
million CD
. .

Mr. NNP
Schwartz NNP
said VBD
the DT
recent JJ
increase NN
in IN
orders NNS
`` ``
puts VBZ
us PRP
well RB
on IN
the DT
way NN
to TO
our PRP$
goal NN
of IN
$ $
1.6 CD
billion CD
in IN
bookings NNS
for IN
the DT
year NN
. .
'' ''

He PRP
added VBD
: :
`` ``
I PRP
expect VBP
to TO
see VB
the DT
earnings NNS
momentum NN
we PRP
experienced VBD
this DT
quarter NN
continue VB
for IN
the DT
rest NN
of IN
the DT
year NN
. .
'' ''

Loral NNP
said VBD
it PRP
expects VBZ
sales NNS
to TO
accelerate VB
in IN
both DT
the DT
third JJ
and CC
fourth JJ
quarters NNS
of IN
this DT
fiscal JJ
year NN
. .

Loral NNP
's POS
profit NN
from IN
continuing VBG
operations NNS
for IN
the DT
first JJ
six CD
months NNS
of IN
fiscal JJ
1990 CD
was VBD
$ $
36.4 CD
million CD
, ,
or CC
$ $
1.44 CD
a DT
share NN
, ,
up IN
31 CD
% NN
from IN
$ $
27.8 CD
million CD
, ,
or CC
$ $
1.11 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Net JJ
income NN
fell VBD
8.6 CD
% NN
to TO
$ $
37.1 CD
million CD
, ,
or CC
$ $
1.43 CD
a DT
share NN
, ,
from IN
$ $
40.6 CD
million CD
, ,
or CC
$ $
1.56 CD
a DT
share NN
. .

Fiscal JJ
first-half JJ
sales NNS
slipped VBD
3.9 CD
% NN
to TO
$ $
528.4 CD
million CD
from IN
$ $
549.9 CD
million CD
. .

Bookings NNS
for IN
the DT
first JJ
half NN
totaled VBD
$ $
813 CD
million CD
, ,
compared VBN
with IN
the DT
$ $
432 CD
million CD
recorded VBN
last JJ
year NN
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Loral NNP
closed VBD
at IN
$ $
33.25 CD
, ,
down RB
37.5 CD
cents NNS
. .

HealthVest NNP
said VBD
two CD
of IN
its PRP$
lenders NNS
have VBP
given VBN
it PRP
notices NNS
of IN
default NN
on IN
bank NN
loans NNS
and CC
said VBD
they PRP
may MD
take VB
actions NNS
to TO
recover VB
their PRP$
loans NNS
. .

HealthVest NNP
, ,
an DT
Austin NNP
, ,
Texas NNP
, ,
real JJ
estate NN
investment NN
trust NN
, ,
said VBD
that IN
Chemical NNP
Bank NNP
, ,
the DT
lead NN
bank NN
under IN
its PRP$
domestic JJ
bank NN
agreement NN
, ,
told VBD
it PRP
that IN
if IN
$ $
3.3 CD
million CD
owed VBN
to TO
the DT
bank NN
group NN
is VBZ
n't RB
paid VBN
by IN
today NN
, ,
the DT
group NN
will MD
call VB
the DT
$ $
120 CD
million CD
that IN
HealthVest NNP
has VBZ
outstanding JJ
under IN
the DT
credit NN
line NN
. .

The DT
bank NN
group NN
also RB
said VBD
that IN
it PRP
wo MD
n't RB
make VB
additional JJ
advances NNS
under IN
the DT
$ $
150 CD
million CD
credit NN
line NN
. .

HealthVest NNP
missed VBD
a DT
payment NN
to TO
the DT
group NN
that WDT
was VBD
due JJ
in IN
late JJ
September NNP
. .

In IN
addition NN
, ,
HealthVest NNP
said VBD
Bank NNP
of IN
Tokyo NNP
Trust NNP
Co. NNP
also RB
has VBZ
notified VBN
it PRP
of IN
a DT
default NN
and CC
said VBD
it PRP
might MD
take VB
action NN
to TO
cure VB
the DT
default NN
. .

HealthVest NNP
missed VBD
an DT
interest NN
payment NN
to TO
Bank NNP
of IN
Tokyo NNP
on IN
Oct. NNP
1 CD
. .

However RB
, ,
HealthVest NNP
said VBD
the DT
Tokyo NNP
bank NN
indicated VBD
that IN
it PRP
wo MD
n't RB
accelerate VB
HealthVest NNP
's POS
$ $
50 CD
million CD
loan NN
. .

HealthVest NNP
is VBZ
in IN
a DT
severe JJ
liquidity NN
bind NN
because IN
its PRP$
affiliate NN
, ,
Healthcare NNP
International NNP
Inc. NNP
, ,
has VBZ
failed VBN
to TO
make VB
about RB
$ $
10.6 CD
million CD
in IN
principal NN
and CC
interest NN
payments NNS
owed VBN
since IN
August NNP
. .

Healthcare NNP
operates VBZ
many NN
of IN
the DT
health-care NN
properties NNS
that IN
HealthVest NNP
owns VBZ
. .

EMPIRE NNP
PENCIL NNP
, ,
later RB
called VBN
Empire-Berol NNP
, ,
developed VBD
the DT
plastic NN
pencil NN
in IN
1973 CD
. .

Yesterday NN
's POS
Centennial NNP
Journal NNP
misstated VBD
the DT
company NN
's POS
name NN
. .

Storage NNP
Technology NNP
Corp. NNP
had VBD
net JJ
income NN
of IN
$ $
8.3 CD
million CD
, ,
or CC
32 CD
cents NNS
a DT
share NN
, ,
for IN
its PRP$
fiscal-third JJ
quarter NN
ended VBN
Sept. NNP
29 CD
, ,
almost RB
15 CD
times VBZ
the DT
$ $
557,000 CD
, ,
or CC
two CD
cents NNS
a DT
share NN
, ,
it PRP
posted VBD
for IN
the DT
year-ago JJ
period NN
. .

Storage NNP
, ,
Louisville NNP
, ,
Colo. NNP
, ,
which WDT
makes VBZ
data-storage JJ
devices NNS
for IN
mainframe NN
computers NNS
, ,
said VBD
the DT
huge JJ
increase NN
in IN
net NN
reflects VBZ
`` ``
strong JJ
sales NNS
'' ''
of IN
its PRP$
tape NN
products NNS
, ,
particularly RB
the DT
4400 CD
Automated NNP
Cartridge NNP
System NNP
, ,
which WDT
holds VBZ
a DT
library NN
of IN
tape NN
cartridges NNS
. .

The DT
company NN
said VBD
it PRP
recently RB
sold VBD
its PRP$
750th JJ
cartridge NN
system NN
, ,
which WDT
cost VBP
$ $
400,000 CD
to TO
$ $
500,000 CD
each DT
. .

Quarter NN
revenue NN
was VBD
$ $
232.6 CD
million CD
, ,
up IN
12 CD
% NN
from IN
$ $
206 CD
million CD
last JJ
year NN
. .

The DT
stock NN
market NN
reacted VBD
strongly RB
to TO
the DT
news NN
. .

Storage NNP
rose VBD
$ $
1.125 CD
a DT
share NN
, ,
to TO
close VB
at IN
$ $
14 CD
, ,
in IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
. .

For IN
the DT
nine CD
months NNS
, ,
Storage NNP
had VBD
net NN
of IN
$ $
25.5 CD
million CD
, ,
or CC
98 CD
cents NNS
a DT
share NN
, ,
including VBG
an DT
$ $
11.3 CD
million CD
extraordinary JJ
gain NN
for IN
the DT
anticipated VBN
proceeds NNS
from IN
liquidating VBG
an DT
Irish JJ
unit NN
. .

Net NN
was VBD
up IN
69 CD
% NN
from IN
$ $
15.1 CD
million CD
, ,
or CC
57 CD
cents NNS
a DT
share NN
, ,
last JJ
year NN
. .

Revenue NN
for IN
the DT
latest JJS
period NN
was VBD
up IN
11 CD
% NN
to TO
$ $
682.7 CD
million CD
, ,
from IN
$ $
614.6 CD
million CD
. .

A DT
Canadian JJ
government NN
agency NN
conditionally RB
approved VBD
proposed VBN
exports NNS
to TO
the DT
U.S. NNP
of IN
natural JJ
gas NN
from IN
big JJ
, ,
untapped JJ
fields NNS
in IN
the DT
Mackenzie NNP
River NNP
delta NN
area NN
of IN
the DT
western JJ
Canadian NNP
Arctic NNP
. .

Three CD
companies NNS
, ,
Esso NNP
Resources NNP
Canada NNP
Ltd. NNP
, ,
Shell NNP
Canada NNP
Ltd. NNP
and CC
Gulf NNP
Canada NNP
Resources NNP
Ltd. NNP
, ,
applied VBN
to TO
the DT
Canadian NNP
National NNP
Energy NNP
Board NNP
to TO
export VB
9.2 CD
trillion CD
cubic JJ
feet NNS
of IN
Mackenzie NNP
delta NN
natural JJ
gas NN
over IN
20 CD
years NNS
starting VBG
in IN
1996 CD
. .

To TO
be VB
economically RB
feasible JJ
, ,
the DT
11 CD
billion CD
Canadian JJ
dollar NN
-LRB- (
US$ $
9.37 CD
billion CD
-RRB- )
project NN
requires VBZ
almost RB
a DT
doubling NN
of IN
natural JJ
gas NN
export NN
prices NNS
. .

It PRP
also RB
faces VBZ
numerous JJ
other JJ
hurdles NNS
including VBG
an DT
agreement NN
on IN
a DT
pipeline NN
route NN
for IN
the DT
gas NN
. .

The DT
board NN
said VBD
the DT
export NN
licenses NNS
would MD
be VB
issued VBN
on IN
the DT
condition NN
that IN
Canadian JJ
interests NNS
would MD
also RB
be VB
allowed VBN
to TO
bid VB
for IN
the DT
Mackenzie NNP
delta NN
gas NN
on IN
terms NNS
similar JJ
to TO
those DT
offered VBN
to TO
U.S. NNP
customers NNS
. .

U.S. NNP
buyers NNS
have VBP
already RB
been VBN
lined VBN
up RB
. .

They PRP
include VBP
Enron NNP
Corp. NNP
, ,
Texas NNP
Eastern NNP
Corp. NNP
, ,
Pacific NNP
Interstate NNP
Transmission NNP
Co. NNP
and CC
Tennessee NNP
Gas NNP
Pipeline NNP
Co NNP
. .

The DT
project NN
could MD
result VB
in IN
the DT
U.S. NNP
taking VBG
more JJR
than IN
10 CD
% NN
of IN
its PRP$
natural JJ
gas NN
supplies NNS
from IN
Canada NNP
, ,
up IN
from IN
about IN
5 NN
% NN
currently RB
. .
It PRP
would MD
bring VB
13 CD
gas NN
fields NNS
into IN
production NN
at IN
a DT
combined VBN
rate NN
of IN
about IN
1.2 CD
billion CD
cubic JJ
feet NNS
a DT
day NN
. .

The DT
board NN
estimated VBN
that IN
the DT
cost NN
of IN
building VBG
a DT
pipeline NN
from IN
the DT
Mackenzie NNP
delta NN
to TO
Alberta NNP
would MD
be VB
about IN
C$ $
5.9 CD
million CD
. .

It PRP
also RB
said VBD
projections NNS
of IN
surging VBG
U.S. NNP
demand NN
for IN
natural JJ
gas NN
and CC
price NN
forecasts NNS
of IN
C$ $
5.25 CD
per IN
thousand CD
cubic JJ
feet NNS
by IN
2005 CD
would MD
make VB
the DT
project NN
economically RB
viable JJ
. .

Esso NNP
, ,
a DT
unit NN
of IN
Imperial NNP
Oil NNP
Ltd. NNP
which WDT
is VBZ
71%-owned JJ
by IN
Exxon NNP
Corp. NNP
, ,
will MD
be VB
allowed VBN
to TO
export VB
5.1 CD
trillion CD
cubic JJ
feet NNS
to TO
the DT
U.S. NNP
in IN
the DT
20-year JJ
period NN
. .

Shell NNP
, ,
a DT
subsidiary NN
of IN
Royal NNP
Dutch\/Shell NNP
Group NNP
, ,
will MD
be VB
allowed VBN
to TO
export VB
0.9 CD
trillion CD
cubic JJ
feet NNS
, ,
and CC
Gulf NNP
, ,
a DT
unit NN
of IN
Olympia NNP
& CC
York NNP
Developments NNP
Ltd. NNP
will MD
be VB
allowed VBN
to TO
export VB
3.2 CD
trillion CD
cubic JJ
feet NNS
. .

Combustion NNP
Engineering NNP
Inc. NNP
, ,
Stamford NNP
, ,
Conn. NNP
, ,
said VBD
it PRP
sold VBD
and CC
agreed VBD
to TO
sell VB
several JJ
investments NNS
and CC
nonstrategic JJ
businesses NNS
for IN
about RB
$ $
100 CD
million CD
, ,
which WDT
will MD
be VB
used VBN
for IN
reducing VBG
debt NN
and CC
general JJ
purposes NNS
. .

The DT
transactions NNS
are VBP
unrelated JJ
. .

The DT
company NN
agreed VBD
to TO
sell VB
its PRP$
minority NN
investments NNS
in IN
makers NNS
of IN
steam-generating NN
and CC
related VBN
equipment NN
, ,
Stein NNP
Industrie NNP
and CC
Energie NNP
& CC
Verfahrenstechnik NNP
, ,
to TO
the DT
major JJ
shareholder NN
in IN
the DT
companies NNS
, ,
Dutch-based JJ
GEC NNP
Alsthom NNP
N.V NNP
. .

Combustion NNP
Engineering NNP
, ,
which WDT
provides VBZ
engineered VBN
products NNS
, ,
systems NNS
and CC
services NNS
for IN
power NN
generation NN
, ,
also RB
sold VBN
Illinois NNP
Minerals NNP
Co. NNP
, ,
based VBN
in IN
Cairo NNP
, ,
Ill NNP
. .

That DT
unit NN
of IN
its PRP$
Georgia NNP
Kaolin NNP
Co. NNP
subsidiary NN
was VBD
sold VBN
to TO
a DT
unit NN
of IN
Unimin NNP
Corp NNP
. .

Assets NNS
of IN
Construction NNP
Equipment NNP
International NNP
, ,
Houston NNP
, ,
were VBD
sold VBN
to TO
Essex NNP
Crane NNP
Inc. NNP
, ,
and CC
the DT
assets NNS
of IN
Elgin NNP
Electronics NNP
, ,
Erie NNP
, ,
Pa. NNP
, ,
were VBD
sold VBN
to TO
closely RB
held VBN
Charter NNP
Technologies NNP
Inc NNP
. .

Where WRB
do VBP
Americans NNPS
put VB
their PRP$
money NN
? .

It PRP
depends VBZ
on IN
when WRB
you PRP
look VBP
. .

In IN
1900 CD
, ,
for IN
instance NN
, ,
less JJR
than IN
8 CD
% NN
of IN
assets NNS
went VBD
into IN
bank NN
deposits NNS
. .

That DT
rose VBD
to TO
nearly RB
18 CD
% NN
during IN
the DT
Depression NNP
, ,
and CC
has VBZ
n't RB
changed VBN
much JJ
since RB
. .

Pension NN
reserves NNS
, ,
on IN
the DT
other JJ
hand NN
, ,
made VBN
up IN
a DT
relatively RB
small JJ
part NN
of IN
household NN
assets NNS
until IN
the DT
last JJ
decade NN
, ,
when WRB
they PRP
skyrocketed VBD
. .

And CC
there EX
has VBZ
been VBN
a DT
drastic JJ
decline NN
in IN
the DT
importance NN
of IN
unincorporated JJ
business NN
assets NNS
-- :
thanks NNS
to TO
industry NN
consolidation NN
and CC
a DT
decline NN
in IN
family NN
farms NNS
. .

That DT
's VBZ
some DT
of IN
what WP
emerges VBZ
from IN
the DT
following VBG
charts NNS
, ,
which WDT
show VBP
how WRB
Americans NNPS
have VBP
changed VBN
their PRP$
investment NN
patterns NNS
over IN
the DT
past JJ
90 CD
years NNS
. .

Some DT
results NNS
are VBP
self-explanatory JJ
. .

But CC
other JJ
figures NNS
are VBP
surprising JJ
. .

Housing NNP
, ,
for IN
instance NN
, ,
has VBZ
remained VBN
a DT
fairly RB
steady JJ
component NN
of IN
household NN
assets NNS
over IN
the DT
past JJ
decade NN
-- :
although IN
common JJ
wisdom NN
would MD
have VB
expected VBN
an DT
increase NN
. .

`` ``
There EX
is VBZ
a DT
lot NN
of IN
attention NN
paid VBN
to TO
housing NN
as IN
a DT
form NN
of IN
household NN
wealth NN
, ,
'' ''
says VBZ
Edward NNP
N. NNP
Wolff NNP
, ,
professor NN
of IN
economics NNS
at IN
New NNP
York NNP
University NNP
. .

`` ``
But CC
it PRP
has VBZ
n't RB
increased VBN
much JJ
relative JJ
to TO
other JJ
assets NNS
. .

It PRP
suggests VBZ
that IN
households NNS
accumulate VBP
wealth NN
across IN
a DT
broad JJ
spectrum NN
of IN
assets NNS
. .

And CC
housing NN
though IN
it PRP
appears VBZ
in IN
the DT
popular JJ
mind NN
as IN
being VBG
the DT
major JJ
-LCB- (
growing VBG
-RCB- )
household NN
asset NN
, ,
is VBZ
n't RB
. .
'' ''

In IN
addition NN
, ,
investors NNS
' POS
desire NN
to TO
hold VB
stocks NNS
-- :
directly RB
and CC
through IN
mutual JJ
funds NNS
-- :
has VBZ
held VBN
surprisingly RB
steady JJ
; :
stocks NNS
' POS
importance NN
among IN
assets NNS
largely RB
reflects VBZ
the DT
ups NNS
and CC
downs NNS
of IN
the DT
stock NN
market NN
, ,
and CC
not RB
a DT
shift NN
in IN
stock-holding JJ
preferences NNS
. .

`` ``
Stocks NNS
have VBP
not RB
spread VB
to TO
the DT
general JJ
public NN
, ,
despite IN
the DT
fact NN
that IN
the DT
environment NN
is VBZ
much JJ
different JJ
, ,
'' ''
concludes VBZ
Robert NNP
Avery NNP
, ,
an DT
economist NN
at IN
Cornell NNP
University NNP
. .

`` ``
To TO
me PRP
it PRP
says VBZ
that IN
despite IN
all PDT
the DT
views NNS
that IN
we PRP
spend VBP
too RB
much NN
of IN
our PRP$
wealth NN
on IN
paper NN
assets NNS
, ,
we PRP
have VBP
ways NNS
of IN
holding VBG
wealth NN
similar JJ
to TO
100 CD
years NNS
ago RB
. .
'' ''

-- :
The DT
charts NNS
show VBP
how WRB
househld JJ
assets NNS
have VBP
been VBN
distributed VBN
over IN
time NN
. .

The DT
main JJ
components NNS
of IN
the DT
various JJ
asseet NN
categories NNS
: :
Housing NNP
: :
Primary JJ
home NN
, ,
but CC
not RB
the DT
land NN
it PRP
's VBZ
on RB
. .

Land NNP
and CC
Other JJ
Real NNP
Estate NNP
: :
Land NNP
on IN
which WDT
primary JJ
home NN
is VBZ
built VBN
, ,
investment NN
property NN
. .

Consumer NNP
Durables NNPS
: :
Automobiles NNS
, ,
appliances NNS
, ,
furniture NN
. .

Bank NN
Deposits NNS
: :
Currency NN
, ,
checking-account JJ
deposits NNS
, ,
small JJ
savings NNS
and CC
time NN
deposits NNS
, ,
certificates NNS
of IN
deposits NNS
, ,
money-market JJ
fund NN
shares NNS
. .

Bonds NNS
: :
Excludes VBZ
bond NN
funds NNS
. .

Stocks\/Mutual NNP
Funds NNS
: :
Stocks NNS
and CC
mutual JJ
funds NNS
other JJ
than IN
money-market JJ
funds NNS
. .

Unincorporated NNP
Business NNP
: :
Partnerships NNS
and CC
sole JJ
proprietorships NNS
, ,
professional JJ
corporations NNS
. .

Pension NN
Reserves NNS
: :
Holdings NNP
by IN
pension NN
funds NNS
. .

McCaw NNP
Cellular NNP
Communications NNP
Inc. NNP
said VBD
it PRP
sent VBD
a DT
letter NN
to TO
LIN NNP
Broadcasting NNP
Corp. NNP
clarifying VBG
its PRP$
revised VBN
tender NN
offer NN
for IN
LIN NNP
and CC
asking VBG
LIN NNP
to TO
conduct VB
`` ``
a DT
fair JJ
auction NN
. .
'' ''

The DT
letter NN
apparently RB
came VBD
in IN
response NN
to TO
a DT
request NN
for IN
clarification NN
by IN
LIN NNP
earlier RBR
this DT
week NN
. .

LIN NNP
, ,
which WDT
has VBZ
agreed VBN
with IN
BellSouth NNP
Corp. NNP
to TO
merge VB
their PRP$
cellular-telephone JJ
businesses NNS
, ,
said VBD
then RB
that IN
it PRP
would MD
n't RB
take VB
a DT
position NN
on IN
McCaw NNP
's POS
revised VBN
tender NN
offer NN
. .

Earlier RBR
this DT
month NN
, ,
McCaw NNP
revised VBD
its PRP$
offer NN
to TO
$ $
125 CD
a DT
share NN
for IN
22 CD
million CD
LIN NNP
shares NNS
. .

McCaw NNP
is VBZ
seeking VBG
50.3 CD
% NN
of IN
the DT
cellular JJ
and CC
broadcasting NN
concern NN
; :
the DT
revised VBN
offer NN
includes VBZ
a DT
feature NN
requiring VBG
McCaw NNP
to TO
begin VB
an DT
auction NN
process NN
in IN
July NNP
1994 CD
that WDT
would MD
buy VB
out RP
remaining VBG
holders NNS
at IN
a DT
per-share JJ
price NN
roughly RB
equivalent NN
to TO
what WP
a DT
third JJ
party NN
might MD
then RB
have VB
to TO
pay VB
for IN
all DT
of IN
LIN NNP
. .

The DT
letter NN
outlines VBZ
broad JJ
powers NNS
for IN
an DT
independent JJ
group NN
of IN
directors NNS
provided VBN
for IN
in IN
the DT
revised VBN
offer NN
. .

In IN
a DT
statement NN
, ,
Craig NNP
O. NNP
McCaw NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
McCaw NNP
, ,
said VBD
: :
`` ``
We PRP
trust VBP
LIN NNP
will MD
take VB
no DT
further JJ
actions NNS
that WDT
favor VBP
BellSouth NNP
. .
'' ''

McCaw NNP
said VBD
the DT
three CD
independent JJ
directors NNS
provided VBN
for IN
in IN
the DT
offer NN
would MD
be VB
designated VBN
by IN
the DT
current JJ
board NN
. .

The DT
successors NNS
would MD
be VB
nominated VBN
by IN
the DT
independent JJ
directors NNS
. .

LIN NNP
would MD
have VB
a DT
priority NN
right NN
to TO
pursue VB
all DT
opportunities NNS
to TO
acquire VB
U.S. NNP
cellular JJ
interests NNS
in IN
markets NNS
other JJ
than IN
those DT
in NN
which WDT
McCaw NNP
holds VBZ
an DT
interest NN
, ,
or CC
which WDT
are VBP
contiguous JJ
to TO
those DT
markets NNS
, ,
unless IN
LIN NNP
has VBZ
an DT
interest NN
there EX
or CC
contiguous JJ
to TO
it PRP
. .

Independent JJ
directors NNS
would MD
have VB
veto NN
rights NNS
to TO
any DT
acquisition NN
if IN
they PRP
unanimously RB
decide VBP
it PRP
is VBZ
n't RB
in IN
LIN NNP
's POS
best JJS
interest NN
. .

Independent JJ
directors NNS
would MD
be VB
able JJ
to TO
block VB
transactions NNS
they PRP
unanimously RB
deem VBP
would MD
be VB
likely JJ
to TO
depress VB
the DT
private JJ
market NN
value NN
of IN
LIN NNP
at IN
the DT
time NN
it PRP
is VBZ
to TO
be VB
sold VBN
in IN
five CD
years NNS
. .

If IN
LIN NNP
is VBZ
put VBN
up IN
for IN
sale NN
rather RB
than IN
purchased VBN
by IN
McCaw NNP
in IN
five CD
years NNS
, ,
McCaw NNP
wo MD
n't RB
submit VB
a DT
bid NN
unless IN
the DT
independent JJ
directors NNS
request VBP
it PRP
, ,
and CC
the DT
independent JJ
directors NNS
will MD
run VB
the DT
bidding NN
. .

The DT
directors NNS
would MD
be VB
able JJ
to TO
sell VB
particular JJ
assets NNS
to TO
enable VB
such JJ
buyers NNS
as IN
the DT
regional JJ
Bell NNP
operating VBG
companies NNS
to TO
purchase VB
the DT
company NN
's POS
interests NNS
. .

MCA NNP
Inc. NNP
said VBD
third-quarter JJ
net NN
fell VBD
6.3 CD
% NN
to TO
$ $
50.8 CD
million CD
, ,
or CC
69 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
54.3 CD
million CD
, ,
or CC
74 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

MCA NNP
said VBD
revenue NN
rose VBD
14 CD
% NN
to TO
$ $
918.4 CD
million CD
from IN
$ $
806.7 CD
million CD
. .

The DT
entertainment NN
concern NN
said VBD
the DT
success NN
of IN
several JJ
movies NNS
released VBN
during IN
the DT
quarter NN
, ,
including VBG
`` ``
Parenthood NNP
'' ''
and CC
`` ``
Uncle NNP
Buck NNP
, ,
'' ''
contributed VBD
to TO
record VB
revenue NN
for IN
its PRP$
film NN
unit NN
. .

Both DT
MCA NNP
's POS
music-entertainment NN
and CC
book-publishing NN
units NNS
also RB
posted VBD
record NN
revenue NN
and CC
operating VBG
profit NN
. .

The DT
parent NN
company NN
's POS
net NN
included VBD
a DT
loss NN
-- :
which WDT
it PRP
did VBD
n't RB
specify VB
-- :
that WDT
was VBD
related VBN
to TO
the DT
company NN
's POS
50 CD
% NN
stake NN
in IN
Cineplex NNP
Odeon NNP
Corp NNP
. .

Cineplex NNP
, ,
a DT
Toronto NNP
theater NN
chain NN
, ,
had VBD
a DT
second-quarter JJ
net JJ
loss NN
of IN
$ $
38.7 CD
million CD
. .

MCA NNP
said VBD
net JJ
also RB
included VBD
certain JJ
reserves NNS
related VBN
to TO
the DT
restructuring NN
of IN
its PRP$
LJN NNP
Toys NNPS
' POS
international JJ
operations NNS
. .

These DT
items NNS
were VBD
partly RB
offset VB
, ,
MCA NNP
said VBD
, ,
by IN
an DT
unspecified JJ
gain NN
on IN
the DT
sale NN
of IN
its PRP$
Miller NNP
International NNP
unit NN
, ,
a DT
maker NN
and CC
distributor NN
of IN
budget-priced JJ
audio JJ
cassettes NNS
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
MCA NNP
rose VBD
$ $
1.50 CD
to TO
$ $
64 CD
. .

In IN
the DT
nine CD
months NNS
, ,
net NN
rose VBD
35 CD
% NN
to TO
$ $
120.1 CD
million CD
, ,
or CC
$ $
1.64 CD
a DT
share NN
, ,
from IN
$ $
89.2 CD
million CD
, ,
or CC
$ $
1.22 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Revenue NN
increased VBN
22 CD
% NN
to TO
$ $
2.5 CD
billion CD
from IN
$ $
2.1 CD
billion CD
. .

Past JJ
Due NNP
Impasse NNP

I PRP
never RB
pay VBP
my PRP$
bills NNS
Till IN
the DT
very RB
last JJ
day NN
; :
I PRP
lose VBP
far RB
less JJR
interest NN
By IN
proceeding VBG
that DT
way NN
. .

But CC
it PRP
all DT
evens VBZ
out IN
, ,
It PRP
's VBZ
so RB
easy JJ
to TO
see VB
: :
Not RB
till IN
the DT
last JJ
moment NN
Am NNP
I PRP
paid VBD
what WP
's VBZ
due JJ
me PRP
. .

-- :
Arnold NNP
J. NNP
Zarett NNP
. .

Rex NNP
Tremendae NNP

The DT
effete JJ
Tyrannosaurus NNP
Rex NNP
Had VBD
strict JJ
Cretaceous NNP
views NNS
on IN
sex NN
, ,
And CC
that DT
is VBZ
why WRB
you PRP
only RB
see VBP
him PRP
Reproduced VBN
in IN
the DT
museum NN
. .

-- :
Laurence NNP
W. NNP
Thomas NNP
. .

Helmsley NNP
Enterprises NNPS
Inc. NNP
plans VBZ
to TO
close VB
its PRP$
company-owned JJ
insurance NN
business NN
and CC
is VBZ
seeking VBG
other JJ
brokers NNS
to TO
take VB
over IN
its PRP$
policies NNS
, ,
according VBG
to TO
individuals NNS
familiar JJ
with IN
the DT
New NNP
York NNP
firm NN
. .

Helmsley NNP
Enterprises NNPS
is VBZ
the DT
umbrella NN
organization NN
for IN
companies NNS
controlled VBN
by IN
Harry NNP
B. NNP
Helmsley NNP
. .

These DT
include VBP
office NN
and CC
residential JJ
real JJ
estate NN
giant NN
, ,
HelmsleySpear NNP
Inc. NNP
, ,
and CC
Helmsley NNP
Hotels NNP
. .
The DT
insurance NN
brokerage NN
agency NN
, ,
just RB
a DT
fragment NN
of IN
Helmsley NNP
's POS
vast JJ
empire NN
, ,
would MD
be VB
the DT
first JJ
piece NN
of IN
the DT
company NN
to TO
be VB
stripped VBN
away RB
since IN
last JJ
summer NN
when WRB
Mr. NNP
Helmsley NNP
's POS
wife NN
, ,
Leona NNP
Helmsley NNP
, ,
was VBD
found VBN
guilty JJ
of IN
tax NN
evasion NN
. .

Industry NN
sources NNS
estimate VBP
the DT
agency NN
brokers NNS
property NN
and CC
casualty NN
premiums NNS
worth JJ
about RB
$ $
25 CD
million CD
annually RB
, ,
and CC
has VBZ
revenue NN
, ,
based VBN
on IN
a DT
standard JJ
10 CD
% NN
commission NN
rate NN
, ,
of IN
about RB
$ $
2.5 CD
million CD
. .

The DT
insurance NN
firm NN
acts NNS
as IN
a DT
broker NN
on IN
policies NNS
covering VBG
buildings NNS
managed VBN
by IN
HelmsleySpear NNP
and CC
others NNS
. .

Many JJ
of IN
the DT
properties NNS
are VBP
owned VBN
through IN
limited JJ
partnerships NNS
controlled VBN
by IN
Mr. NNP
Helmsley NNP
. .

New NNP
York NNP
State NNP
law NN
prohibits VBZ
insurance NN
brokerages NNS
from IN
deriving VBG
more JJR
than IN
10 CD
% NN
of IN
revenue NN
from IN
insuring VBG
affiliated VBN
companies NNS
. .

Helmsley NNP
's POS
insurance NN
division NN
had VBD
slightly RB
exceeded VBN
that DT
percentage NN
, ,
sources NNS
say VBP
, ,
but CC
the DT
division NN
was VBD
n't RB
considered VBN
significant JJ
enough RB
to TO
the DT
company NN
to TO
be VB
restructured VBN
, ,
particularly RB
at IN
a DT
difficult JJ
time NN
for IN
the DT
firm NN
. .

Adverse JJ
publicity NN
from IN
the DT
scandal NN
surrounding VBG
its PRP$
founder NN
's POS
wife NN
and CC
related VBN
management NN
strife NN
have VBP
put VBN
pressure NN
on IN
the DT
entire JJ
Helmsley NNP
organization NN
. .

However RB
, ,
individuals NNS
close VBP
to TO
the DT
company NN
insist VBP
shuttering VBG
the DT
insurance NN
division NN
, ,
a DT
sideline NN
from IN
the DT
company NN
's POS
core NN
property NN
management NN
business NN
, ,
is VBZ
n't RB
the DT
beginning NN
of IN
a DT
sale NN
of IN
assets NNS
. .

Helmsley NNP
's POS
insurance NN
premiums NNS
are VBP
expected VBN
to TO
be VB
transferred VBN
to TO
several JJ
different JJ
insurance NN
brokerage NN
companies NNS
. .

Frank NNP
B. NNP
Hall NNP
Inc. NNP
of IN
Briarcliff NNP
Manor NNP
, ,
N.Y. NNP
is VBZ
reportedly RB
working VBG
out RP
an DT
agreement NN
with IN
Helmsley NNP
. .

Officials NNS
there EX
declined VBD
to TO
comment VB
, ,
as IN
did VBD
Helmsley NNP
management NN
. .

Outside IN
the DT
white-walled JJ
headquarters NN
of IN
the DT
socalled JJ
Society NNP
of IN
Orange NNP
Workers NNPS
, ,
all DT
seems VBZ
normal JJ
in IN
South NNP
Africa NNP
's POS
abnormal JJ
society NN
. .

A DT
pickup NN
truck NN
driven VBN
by IN
a DT
white JJ
farmer NN
rumbles VBZ
past JJ
with IN
a DT
load NN
of IN
black JJ
workers NNS
bouncing VBG
in IN
the DT
back RB
. .

Over IN
at IN
Conradies NNP
, ,
the DT
general JJ
store NN
, ,
a DT
black JJ
stock NN
boy NN
scurries NNS
to TO
help VB
an DT
elderly JJ
white JJ
woman NN
with IN
her PRP$
packages NNS
. .

Down IN
the DT
street NN
, ,
a DT
car NN
pulls VBZ
into IN
the DT
Shell NNP
station NN
and CC
is VBZ
surrounded VBN
by IN
black JJ
attendants NNS
. .

But CC
inside IN
the DT
white JJ
walls NNS
of IN
the DT
Orange NNP
Workers NNPS
' POS
office NN
-- :
just RB
about IN
the DT
largest JJS
building NN
in IN
town NN
, ,
save VB
for IN
the DT
Dutch NNP
Reformed NNP
Church NNP
and CC
the DT
school NN
-- :
South NNP
Africa NNP
's POS
neat JJ
racial JJ
order NN
is VBZ
awry RB
. .

A DT
dozen NN
white JJ
office NN
workers NNS
fold VBP
newsletters NNS
and CC
stuff NN
them PRP
into IN
envelopes NNS
. .

White JJ
women NNS
serve VBP
tea NN
and CC
coffee NN
, ,
and CC
then JJ
wash NN
the DT
cups NNS
and CC
saucers NNS
afterwards RB
. .

White JJ
children NNS
empty VB
the DT
wastepaper NN
baskets NNS
and CC
squeegee VBP
the DT
windows NNS
. .

There EX
is VBZ
n't RB
a DT
black JJ
worker NN
in IN
sight NN
. .

Not RB
in IN
the DT
kitchen NN
, ,
or CC
the DT
storeroom NN
or CC
the DT
book NN
shop NN
. .

`` ``
If IN
we PRP
want VBP
to TO
have VB
our PRP$
own JJ
nation NN
, ,
then RB
we PRP
must MD
be VB
willing JJ
to TO
do VB
all PDT
the DT
work NN
ourselves PRP
, ,
'' ''
says VBZ
Hendrik NNP
Verwoerd NNP
Jr. NNP
, ,
son NN
of IN
the DT
former JJ
prime JJ
minister NN
and CC
the DT
leader NN
of IN
the DT
Orange NNP
Workers NNPS
, ,
founded VBN
in IN
1980 CD
. .

They PRP
do VBP
indeed RB
want VB
their PRP$
own JJ
nation NN
. .

The DT
pillars NNS
of IN
apartheid NN
may MD
be VB
trembling VBG
in IN
the DT
rest NN
of IN
South NNP
Africa NNP
, ,
with IN
Johannesburg NNP
opening VBG
its PRP$
public JJ
facilities NNS
to TO
all DT
races NNS
, ,
blacks NNS
storming VBG
the DT
all-white JJ
beaches NNS
of IN
the DT
Cape NNP
and CC
the DT
government NN
releasing VBG
seven CD
leaders NNS
of IN
the DT
banned VBN
African NNP
National NNP
Congress NNP
. .

But CC
here RB
in IN
Morgenzon NNP
, ,
a DT
sleepy JJ
town NN
amid IN
the DT
corn NN
fields NNS
of IN
the DT
eastern JJ
Transvaal NNP
, ,
the DT
Orange NNP
Workers NNPS
are VBP
holding VBG
the DT
pillars NNS
steady JJ
. .

The DT
Orange NNP
Workers NNPS
-- :
who WP
take VBP
their PRP$
name NN
from IN
William NNP
of IN
Orange NNP
of IN
the DT
Netherlands NNP
, ,
a DT
hero NN
of IN
the DT
Dutch-descended JJ
Afrikaners NNPS
-- :
believe VBP
that IN
the DT
solution NN
to TO
South NNP
Africa NNP
's POS
racial JJ
problems NNS
is VBZ
n't RB
the DT
abolition NN
of IN
apartheid NN
, ,
it PRP
's VBZ
the DT
perfection NN
of IN
apartheid NN
-- :
complete JJ
and CC
total JJ
separation NN
of IN
the DT
races NNS
. .

Here RB
, ,
then RB
, ,
is VBZ
where WRB
the DT
Orange NNP
Workers NNPS
have VBP
come VBN
to TO
make VB
apartheid NN
's POS
last JJ
stand NN
. .

Their PRP$
idea NN
is VBZ
to TO
create VB
a DT
city NN
, ,
first JJ
, ,
and CC
then RB
an DT
entire JJ
nation NN
-- :
without IN
blacks NNS
. .

This DT
may MD
seem VB
to TO
be VB
a DT
preposterous JJ
and CC
utterly RB
futile JJ
effort NN
in IN
Africa NNP
. .

And CC
the DT
fact NN
that IN
there EX
are VBP
only RB
3,000 CD
card-carrying JJ
Orange NNP
Workers NNPS
may MD
put VB
them PRP
on IN
the DT
loony JJ
fringe NN
. .

But CC
their PRP$
ideal NN
of IN
an DT
Afrikaner JJ
homeland NN
, ,
an DT
all-white JJ
reserve NN
to TO
be VB
carved VBN
out IN
of IN
present-day JJ
South NNP
Africa NNP
, ,
is VBZ
a DT
mainstream NN
desire NN
of IN
the DT
right-wing NN
, ,
which WDT
embraces VBZ
about IN
one-third NN
of IN
the DT
country NN
's POS
five CD
million CD
whites NNS
. .

Afrikaner JJ
philosophers NNS
and CC
theologians NNS
have VBP
long RB
ruminated VBN
on IN
the DT
need NN
for IN
a DT
white JJ
homeland NN
. .

The DT
Orange NNP
Workers NNPS
are VBP
just RB
putting VBG
this DT
preaching NN
into IN
practice NN
. .

Thus RB
, ,
farmer NN
Johan NNP
Fischer NNP
, ,
his PRP$
T-shirt NN
and CC
jeans NNS
covered VBN
in IN
grease NN
, ,
crawls VBZ
around IN
under IN
his PRP$
planter NN
, ,
tightening VBG
bolts NNS
and CC
fixing VBG
dents NNS
. .

On IN
almost RB
every DT
other JJ
farm NN
in IN
South NNP
Africa NNP
, ,
black JJ
workers NNS
do VBP
the DT
repairs NNS
. .

But CC
not RB
here RB
. .

Mr. NNP
Fischer NNP
plows VBZ
his PRP$
own JJ
fields NNS
, ,
sows VBZ
his PRP$
own JJ
corn NN
and CC
sunflowers NNS
, ,
and CC
feeds VBZ
his PRP$
own JJ
sheep NN
. .

Over IN
at IN
the DT
fiberglass NNS
factory NN
, ,
four CD
white JJ
workers NNS
assemble VBP
water NN
tanks NNS
on IN
their PRP$
own JJ
, ,
and CC
in IN
their PRP$
spare JJ
time NN
they PRP
build VBP
townhouses NNS
across IN
the DT
road NN
. .

On IN
Main NNP
Street NNP
, ,
Alida NNP
Verwoerd NNP
and CC
her PRP$
daughters NNS
look VBP
after IN
the DT
clothes NNS
and CC
fabric NN
shop NN
, ,
then JJ
hurry NN
home NN
to TO
fix VB
lunch NN
for IN
the DT
rest NN
of IN
the DT
family NN
. .

Down IN
by IN
the DT
stream NN
, ,
a DT
group NN
of IN
Orange NNP
Workers NNPS
puts VBZ
the DT
finishing VBG
touches NNS
on IN
a DT
golf NN
course NN
. .

If IN
whites NNS
want VBP
to TO
play VB
there RB
by IN
themselves PRP
, ,
says VBZ
consulting NN
engineer NN
Willem NNP
van NNP
Heerden NNP
, ,
whites NNS
should MD
also RB
build VB
it PRP
by IN
themselves PRP
. .

`` ``
If IN
we PRP
want VBP
to TO
survive VB
as IN
a DT
people NNS
, ,
'' ''
he PRP
says VBZ
, ,
`` ``
we PRP
have VBP
to TO
change VB
our PRP$
way NN
of IN
life NN
. .

The DT
Afrikaner JJ
must MD
end VB
his PRP$
reliance NN
on IN
others NNS
. .
'' ''

In IN
their PRP$
quest NN
to TO
perfect JJ
apartheid NN
, ,
the DT
Orange NNP
Workers NNPS
have VBP
discovered VBN
a DT
truth NN
that IN
most RBS
of IN
privileged JJ
white JJ
South NNP
Africa NNP
tries VBZ
mightily RB
to TO
deny VB
: :
The DT
master NN
ca MD
n't RB
become VB
dependent JJ
on IN
the DT
slave NN
and CC
expect VBP
to TO
remain VB
master NN
forever RB
. .

`` ``
If IN
apartheid NN
means VBZ
you PRP
want VBP
cheap JJ
black JJ
labor NN
and CC
all PDT
the DT
comforts NNS
that WDT
go VBP
with IN
it PRP
, ,
but CC
you PRP
also RB
want VBP
to TO
exclude VB
the DT
blacks NNS
from IN
social JJ
and CC
political JJ
integration NN
, ,
then RB
these DT
are VBP
two CD
contradictions NNS
that WDT
ca MD
n't RB
go VB
on IN
forever RB
, ,
'' ''
says VBZ
Mr. NNP
Verwoerd NNP
. .

He PRP
is VBZ
sitting VBG
in IN
his PRP$
living NN
room NN
, ,
beneath IN
a DT
huge JJ
portrait NN
of IN
his PRP$
late JJ
father NN
, ,
Hendrik NNP
F. NNP
Verwoerd NNP
, ,
apartheid NN
's POS
architect NN
and CC
South JJ
African JJ
prime JJ
minister NN
from IN
1958 CD
to TO
1966 CD
. .

Somewhere RB
, ,
the DT
son NN
sighs VBZ
, ,
things NNS
went VBN
terribly RB
wrong JJ
with IN
apartheid NN
; :
today NN
, ,
whites NNS
even RB
rely VBP
on IN
blacks NNS
to TO
police VB
their PRP$
separation NN
. .

`` ``
People NNS
took VBD
separate JJ
development NN
as IN
an DT
opportunity NN
to TO
use VB
black JJ
labor NN
without IN
ever RB
getting VBG
rid JJ
of IN
it PRP
. .

But CC
my PRP$
father NN
meant VBD
it PRP
to TO
mean VB
real JJ
separation NN
, ,
'' ''
says VBZ
the DT
son NN
. .

The DT
Orange NNP
Workers NNPS
speak VBP
sincerely RB
. .

`` ``
We PRP
agree VBP
with IN
world NN
opinion NN
that IN
the DT
status NN
quo FW
in IN
South NNP
Africa NNP
is VBZ
morally RB
wrong JJ
, ,
'' ''
says VBZ
Pieter NNP
Bruwer NNP
, ,
the DT
Orange NNP
Workers NNPS
' POS
chief JJ
scribe NN
and CC
pamphleteer NN
. .

`` ``
We PRP
must MD
either DT
integrate VB
honestly RB
or CC
segregate VB
honestly RB
. .
'' ''

Morgenzon NNP
has VBZ
long RB
been VBN
a DT
special JJ
domain NN
of IN
Afrikanerdom NNP
. .

According VBG
to TO
Mr. NNP
Verwoerd NNP
, ,
the DT
early JJ
Afrikaner JJ
pioneers NNS
were VBD
the DT
first JJ
people NNS
to TO
settle VB
in IN
the DT
eastern JJ
Transvaal NNP
, ,
even RB
before IN
the DT
blacks NNS
. .

Then RB
, ,
when WRB
Morgenzon NNP
was VBD
incorporated VBN
in IN
1908 CD
, ,
the DT
farmer NN
who WP
owned VBD
the DT
land NN
stipulated VBD
that IN
only JJ
whites NNS
could MD
reside VB
in IN
town NN
; :
blacks NNS
could MD
work VB
there EX
, ,
but CC
they PRP
had VBD
to TO
leave VB
at IN
night NN
. .

Today NN
, ,
Morgenzon NNP
is VBZ
a DT
town NN
of IN
800 CD
whites NNS
and CC
two CD
paved JJ
roads NNS
. .

Weeds NNS
push VBP
up IN
through IN
the DT
cracks NNS
in IN
the DT
sidewalks NNS
, ,
and CC
many JJ
houses NNS
and CC
storefronts NNS
are VBP
empty JJ
. .

There EX
are VBP
few JJ
factories NNS
and CC
no DT
mines NNS
. .

It PRP
was VBD
an DT
ideal JJ
place NN
for IN
the DT
Orange NNP
Workers NNPS
to TO
start VB
their PRP$
new JJ
nation NN
, ,
unencumbered JJ
by IN
the DT
demographics NNS
that WDT
have VBP
undermined VBN
apartheid NN
elsewhere RB
in IN
South NNP
Africa NNP
. .

So RB
far RB
, ,
about IN
150 CD
Orange NNP
Workers NNPS
have VBP
moved VBN
here RB
, ,
spending NN
nearly RB
$ $
1 CD
million CD
buying VBG
up IN
property NN
over IN
the DT
past JJ
three CD
years NNS
. .

Still RB
, ,
complete JJ
and CC
total JJ
segregation NN
remains VBZ
elusive JJ
. .

Just RB
beyond IN
the DT
city NN
limits NNS
is VBZ
a DT
shantytown NN
of IN
2,000 CD
blacks NNS
who WP
are VBP
employed VBN
throughout IN
the DT
area NN
. .

Despite IN
the DT
Orange NNP
Workers NNPS
' POS
intention NN
to TO
put VB
them PRP
all DT
out NN
of IN
work NN
, ,
they PRP
are VBP
in IN
no DT
hurry NN
to TO
leave VB
. .

A DT
young JJ
man NN
called VBN
July NNP
-LRB- (
that DT
's VBZ
when WRB
he PRP
was VBD
born VBN
-RRB- )
, ,
who WP
works VBZ
at IN
the DT
railroad NN
station NN
just RB
up IN
the DT
street NN
from IN
the DT
Orange NNP
Workers NNPS
office NN
, ,
points VBZ
at IN
the DT
whitewalled JJ
building NN
and CC
says VBZ
matter-of-factly RB
, ,
`` ``
We PRP
're VBP
not RB
allowed VBN
in IN
there EX
, ,
that DT
's VBZ
all DT
I PRP
know VBP
. .
'' ''

The DT
650-or-so JJ
local JJ
whites NNS
who WP
are VBP
n't RB
Orange NNP
Workers NNPS
are VBP
more RBR
troubled JJ
. .

Try VB
as IN
they PRP
might MD
, ,
they PRP
just RB
ca MD
n't RB
conceive VB
of IN
life NN
without IN
black JJ
workers NNS
. .

`` ``
Impossible JJ
, ,
impossible JJ
, ,
'' ''
say VBP
the DT
Conradies NNP
, ,
an DT
elderly JJ
couple NN
who WP
have VBP
run VBN
the DT
general JJ
store NN
for IN
decades NNS
. .

`` ``
We PRP
ca MD
n't RB
do VB
without IN
their PRP$
help NN
, ,
'' ''
says VBZ
Mrs. NNP
Conradie NNP
. .

`` ``
Oh UH
no DT
. .

We PRP
need VBP
them PRP
and CC
I PRP
thank VBP
God NNP
for IN
them PRP
. .
'' ''

Over IN
at IN
the DT
Shell NNP
station NN
, ,
owner NN
Rudi NNP
van NNP
Dyk NNP
, ,
who WP
doubles VBZ
as IN
Morgenzon NNP
's POS
mayor NN
, ,
worries VBZ
that IN
the DT
Orange NNP
Workers NNPS
have VBP
made VBN
his PRP$
town NN
the DT
laughingstock NN
of IN
the DT
nation NN
. .

`` ``
What WP
they PRP
want VBP
us PRP
to TO
do VB
just RB
is VBZ
n't RB
practical JJ
, ,
'' ''
he PRP
says VBZ
, ,
noting VBG
that IN
he PRP
employs VBZ
16 CD
blacks NNS
. .

`` ``
I PRP
could MD
n't RB
afford VB
to TO
hire VB
16 CD
whites NNS
. .

The DT
only RB
Afrikaners NNPS
who WP
would MD
be VB
willing JJ
to TO
work VB
for IN
this DT
salary NN
would MD
n't RB
know VB
how WRB
to TO
handle VB
money NN
. .
'' ''

Back RB
at IN
the DT
Verwoerd NNP
house NN
, ,
Hendrik NNP
Sr. NNP
peers NNS
down RB
over IN
the DT
shoulder NN
of IN
Hendrik NNP
Jr NNP
. .

The DT
son NN
believes VBZ
that IN
when WRB
the DT
Afrikaners NNPS
finally RB
realize VB
there EX
is VBZ
no DT
turning VBG
back RB
the DT
integration NN
of IN
South JJ
African JJ
society NN
and CC
politics NNS
, ,
Morgenzon NNP
will MD
boom VB
. .

`` ``
We PRP
urge VBP
our PRP$
people NNS
not RB
to TO
wait VB
until IN
they PRP
have VBP
to TO
fight VB
for IN
their PRP$
own JJ
nation NN
, ,
'' ''
says VBZ
Mr. NNP
Verwoerd NNP
. .

`` ``
By IN
populating VBG
a DT
place NN
now RB
, ,
we PRP
make VBP
ourselves PRP
a DT
power NN
any DT
new JJ
government NN
will MD
have VB
to TO
take VB
into IN
account NN
. .
'' ''

Curiously RB
, ,
he PRP
compares VBZ
the DT
Orange NNP
Workers NNPS
to TO
the DT
ANC NNP
, ,
which WDT
his PRP$
father NN
outlawed VBN
in IN
1960 CD
. .

`` ``
The DT
ANC NNP
wo MD
n't RB
be VB
stopped VBN
until IN
there EX
is VBZ
a DT
provision NN
for IN
black JJ
aspirations NNS
, ,
'' ''
says VBZ
Mr. NNP
Verwoerd NNP
. .

`` ``
Likewise RB
, ,
no DT
government NN
will MD
stop VB
this DT
idea NN
of IN
the DT
Afrikaners NNPS
. .
'' ''

He PRP
apologizes VBZ
for IN
sounding VBG
pushy JJ
. .

`` ``
Look VB
, ,
'' ''
he PRP
says VBZ
, ,
`` ``
If IN
the DT
rest NN
of IN
South NNP
Africa NNP
wants VBZ
to TO
have VB
an DT
integrated VBN
melting VBG
pot NN
, ,
that DT
's VBZ
their PRP$
choice NN
. .

We PRP
'll MD
leave VB
them PRP
alone RB
. .

We PRP
just RB
want VBP
to TO
have VB
our PRP$
own JJ
cup NN
of IN
tea NN
. .
'' ''

And CC
they PRP
will MD
even RB
serve VB
it PRP
themselves PRP
. .

Okay UH
, ,
now RB
you PRP
can MD
pick VB
up IN
that DT
phone NN
. .

But CC
do VBP
n't RB
do VB
anything NN
rash NN
. .
After IN
last JJ
Friday NNP
's POS
stock-market NN
plunge NN
, ,
investment NN
professionals NNS
cautioned VBD
people NNS
to TO
resist VB
the DT
urge NN
to TO
call VB
their PRP$
brokers NNS
and CC
sell VB
stocks NNS
. .

Not RB
selling VBG
into IN
a DT
panic NN
turned VBD
out IN
to TO
be VB
very RB
good JJ
advice NN
: :
Despite IN
the DT
market NN
's POS
volatility NN
, ,
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
has VBZ
surged VBN
114 CD
points NNS
in IN
the DT
past JJ
four CD
days NNS
. .
Now RB
, ,
with IN
a DT
semblance NN
of IN
normalcy NN
returning VBG
, ,
some DT
advisers NNS
say VBP
it PRP
's VBZ
time NN
for IN
investors NNS
to TO
take VB
a DT
hard JJ
, ,
cold JJ
look NN
at IN
the DT
stocks NNS
they PRP
own JJ
and CC
consider VB
some DT
careful JJ
pruning NN
. .

`` ``
The DT
market NN
is VBZ
sending VBG
nervous JJ
signals NNS
, ,
'' ''
says VBZ
Peter NNP
J. NNP
Canelo NNP
, ,
chief JJ
market NN
strategist NN
for IN
Bear NNP
, ,
Stearns NNP
& CC
Co. NNP
, ,
and CC
it PRP
's VBZ
`` ``
unwise JJ
'' ''
to TO
be VB
overcommitted VBN
to TO
stocks NNS
. .

Alan NNP
Weston NNP
, ,
president NN
of IN
Weston NNP
Capital NNP
Management NNP
, ,
a DT
Los NNP
Angeles NNP
money-management NN
firm NN
, ,
adds VBZ
that IN
in IN
periods NNS
of IN
uncertainty NN
like IN
today NN
, ,
`` ``
it PRP
's VBZ
a DT
good JJ
time NN
to TO
cut VB
out RP
the IN
dead JJ
branches NNS
of IN
your PRP$
portfolio NN
. .
'' ''

Not RB
everybody NN
agrees VBZ
that IN
it PRP
's VBZ
time NN
to TO
trim VB
. .

`` ``
We PRP
are VBP
n't RB
inclined VBN
to TO
prune VB
stock NN
portfolios NNS
now RB
, ,
'' ''
says VBZ
Steven NNP
G. NNP
Einhorn NNP
, ,
chairman NN
of IN
the DT
investment NN
policy NN
committee NN
of IN
Goldman NNP
, ,
Sachs NNP
& CC
Co NNP
. .

`` ``
Investors NNS
should MD
stay VB
with IN
their PRP$
stocks NNS
. .

We PRP
expect VBP
a DT
choppy JJ
and CC
sloppy JJ
market NN
for IN
a DT
short JJ
period NN
, ,
but CC
we PRP
do VBP
n't RB
think VB
it PRP
will MD
be VB
ugly JJ
. .

The DT
downside NN
is VBZ
limited JJ
. .
'' ''

And CC
even RB
those DT
who WP
say VBP
some DT
selective JJ
selling NN
may MD
be VB
in IN
order NN
stress NN
that IN
individuals NNS
need VBP
to TO
be VB
in IN
the DT
stock NN
market NN
to TO
achieve VB
their PRP$
long-term JJ
investment NN
objectives NNS
and CC
to TO
help VB
balance VB
their PRP$
other JJ
assets NNS
. .

Any DT
selling NN
, ,
they PRP
say VBP
, ,
should MD
be VB
well RB
thought-out JJ
, ,
and CC
executed VBD
gradually RB
, ,
during IN
market NN
rallies NNS
. .

They PRP
offer VBP
these DT
suggestions NNS
: :

GET VB
RID VB
OF IN
THE DT
DOGS NNS
. .

`` ``
Sell VB
stocks NNS
that WDT
are VBP
n't RB
doing VBG
well RB
now RB
, ,
and CC
that DT
do VBP
n't RB
have VB
good JJ
earnings NNS
prospects NNS
, ,
'' ''
says VBZ
Alfred NNP
Goldman NNP
, ,
technical JJ
analyst NN
at IN
St. NNP
Louis-based JJ
A.G. NNP
Edwards NNP
& CC
Sons NNP
. .

`` ``
Most JJS
people NNS
do VBP
just RB
the DT
opposite JJ
: :
They PRP
sell VBP
their PRP$
winners NNS
and CC
keep VB
their PRP$
losers NNS
. .
'' ''

Which WDT
types NNS
of IN
stocks NNS
are VBP
most RBS
likely JJ
to TO
qualify VB
? .

Technology NN
stocks NNS
, ,
says VBZ
Mr. NNP
Goldman NNP
. .

WATCH VB
FOR IN
EARNINGS NNS
DISAPPOINTMENTS NNS
. .

A DT
company NN
does VBZ
n't RB
have VB
to TO
post VB
a DT
loss NN
to TO
be VB
a DT
candidate NN
for IN
sale NN
, ,
says VBZ
Charles NNP
I. NNP
Clough NNP
Jr. NNP
, ,
chief JJ
market NN
strategist NN
at IN
Merrill NNP
Lynch NNP
& CC
Co NNP
. .

If IN
earnings NNS
do NN
n't RB
live VB
up IN
to TO
analysts NNS
' POS
expectations NNS
, ,
he PRP
says VBZ
, ,
that DT
's VBZ
enough RB
to TO
dump VB
the DT
stock NN
. .

John NNP
Markese NNP
, ,
director NN
of IN
research NN
for IN
the DT
American NNP
Association NNP
of IN
Individual JJ
Investors NNS
, ,
raises VBZ
a DT
cautionary JJ
note NN
. .

`` ``
Substituting VBG
a DT
rule NN
of IN
thumb NN
for IN
your PRP$
own JJ
judgment NN
'' ''
can MD
be VB
a DT
mistake NN
, ,
he PRP
says VBZ
. .

An DT
earnings NNS
disappointment NN
may MD
reflect VB
a DT
situation NN
that WDT
's VBZ
short-term JJ
. .

But CC
Mr. NNP
Clough NNP
says VBZ
, ,
`` ``
The DT
risk NN
is VBZ
that IN
earnings NNS
disappointments NNS
will MD
continue VB
. .
'' ''

The DT
economy NN
is VBZ
decelerating VBG
after IN
six CD
good JJ
years NNS
, ,
and CC
`` ``
right RB
now RB
it PRP
's VBZ
better JJR
to TO
shoot VB
first JJ
and CC
ask VB
questions NNS
later RB
. .
'' ''

Which WDT
types NNS
of IN
stocks NNS
currently RB
have VBP
the DT
greatest JJS
earnings NNS
risks NNS
? .

Computer NN
companies NNS
; :
commodity NN
cyclical JJ
stocks NNS
, ,
like IN
autos NNS
; :
and CC
retailing NN
stocks NNS
, ,
he PRP
says VBZ
. .

BEWARE VB
OF IN
HEAVY JJ
DEBT NN
. .
The DT
companies NNS
apt JJ
to TO
run VB
into IN
earnings NNS
problems NNS
soonest JJS
are VBP
the DT
ones NNS
with IN
heavy JJ
debt NN
loads NNS
, ,
says VBZ
Larry NNP
Biehl NNP
, ,
partner NN
in IN
the DT
San NNP
Mateo NNP
, ,
Calif. NNP
, ,
money-management NN
firm NN
of IN
Bailard NNP
, ,
Biehl NNP
& CC
Kaiser NNP
. .

Mr. NNP
Canelo NNP
of IN
Bear NNP
Stearns NNP
agrees VBZ
: :
`` ``
If IN
we PRP
do VBP
have VB
an DT
economic JJ
slowdown NN
, ,
'' ''
he PRP
says VBZ
, ,
`` ``
companies NNS
with IN
high JJ
debt NN
ratios NNS
will MD
be VB
dumped VBN
en IN
masse FW
. .
'' ''

The DT
best JJS
course NN
for IN
individual JJ
investors NNS
is VBZ
to TO
sell VB
these DT
stocks NNS
now RB
, ,
the DT
two CD
advisers NNS
say VBP
. .

SELL VB
` ``
WHISPER NN
' ''
STOCKS NNS
. .

UAL NNP
Corp. NNP
's POS
difficulty NN
in IN
obtaining VBG
bank NN
financing NN
for IN
its PRP$
leveraged JJ
buy-out NN
and CC
its PRP$
resulting VBG
price NN
plunge NN
is VBZ
a DT
tip-off NN
to TO
what WP
's VBZ
going VBG
to TO
happen VB
to TO
`` ``
takeover NN
stocks NNS
, ,
'' ''
says VBZ
Mr. NNP
Canelo NNP
. .

Takeover NN
activity NN
will MD
slow VB
down RB
as IN
more JJR
and CC
more JJR
banks NNS
tighten VBP
their PRP$
lending NN
requirements NNS
, ,
he PRP
says VBZ
. .

`` ``
There EX
'll MD
be VB
fewer JJR
and CC
fewer JJR
deals NNS
. .
'' ''

Moreover RB
, ,
many JJ
financial JJ
advisers NNS
say VBP
individuals NNS
should MD
be VB
in IN
the DT
stock NN
market NN
as IN
long-term JJ
investors NNS
, ,
not RB
as IN
traders NNS
trying VBG
to TO
catch VB
the DT
next JJ
hot JJ
stock NN
. .

In IN
general JJ
, ,
they PRP
say VBP
, ,
avoid VB
takeover NN
stocks NNS
. .

COMPARE VB
P\/E NNP
RATIOS NNS
WITH IN
PROSPECTS NNS
. .

Mr. NNP
Canelo NNP
suggests VBZ
that IN
investors NNS
compare VBP
price\/earnings NNS
ratios NNS
-LRB- (
the DT
price NN
of IN
a DT
share NN
of IN
stock NN
divided VBN
by IN
a DT
company NN
's POS
per-share JJ
earnings NNS
for IN
a DT
12-month JJ
period NN
-RRB- )
with IN
projected VBN
growth NN
rates NNS
. .

`` ``
If IN
you PRP
think VBP
earnings NNS
will MD
grow VB
at IN
20 CD
% NN
a DT
year NN
, ,
it PRP
's VBZ
all DT
right NN
to TO
pay VB
20 CD
times NNS
earnings NNS
, ,
'' ''
he PRP
says VBZ
. .

`` ``
But CC
do VBP
n't RB
pay VB
30 CD
times NNS
earnings NNS
for IN
a DT
company NN
that WDT
's VBZ
expected VBN
to TO
grow VB
at IN
15 CD
% NN
a DT
year NN
. .
'' ''

Mr. NNP
Canelo NNP
thinks VBZ
the DT
market NN
will MD
probably RB
go VB
higher JJR
, ,
but CC
`` ``
will MD
be VB
ruthless JJ
with IN
stocks NNS
if IN
the DT
earnings NNS
are VBP
n't RB
there RB
. .
'' ''

Mr. NNP
Markese NNP
cautions VBZ
that IN
investors NNS
should MD
n't RB
slavishly RB
follow VB
any DT
specific JJ
price\/earnings NNS
sell VBP
trigger VB
. .

`` ``
If IN
you PRP
say VBP
sell VB
anytime RB
a DT
company NN
's POS
price\/earnings NNS
ratio NN
exceeds VBZ
15 CD
, ,
that WDT
knocks VBZ
out RP
all DT
your PRP$
growth NN
stocks NNS
, ,
'' ''
he PRP
says VBZ
. .

`` ``
You PRP
eliminate VBP
companies NNS
with IN
substantial JJ
prospects NNS
that WDT
are VBP
moving VBG
up IN
in IN
price NN
. .
'' ''

EXAMINE VB
WHAT WP
HAS VBZ
CHANGED VBN
. .

Tom NNP
Schlesinger NNP
, ,
market NN
analyst NN
at IN
A.G. NNP
Edwards NNP
& CC
Sons NNP
Inc. NNP
, ,
says VBZ
investors NNS
should MD
consider VB
selling VBG
if IN
there EX
has VBZ
been VBN
a DT
fundamental JJ
change NN
in IN
a DT
company NN
since IN
they PRP
bought VBD
its PRP$
stock NN
. .

Say VB
you PRP
purchased VBD
a DT
stock NN
because IN
of IN
a DT
new JJ
product NN
that WDT
was VBD
in IN
the DT
works NNS
. .

Now RB
, ,
because IN
of IN
various JJ
difficulties NNS
, ,
the DT
product NN
has VBZ
been VBN
scrapped VBN
. .

Time NNP
to TO
sell VB
, ,
says VBZ
Mr. NNP
Schlesinger NNP
. .

Similarly RB
, ,
he PRP
says VBZ
, ,
suppose VBP
you PRP
were VBD
attracted VBN
to TO
a DT
company NN
because IN
of IN
expectations NNS
that IN
sales NNS
would MD
hit VB
$ $
200 CD
million CD
by IN
1990 CD
. .

If IN
things NNS
have VBP
n't RB
worked VBN
out RP
that IN
well RB
, ,
and CC
sales NNS
wo MD
n't RB
hit VB
$ $
200 CD
million CD
until IN
1992 CD
, ,
it PRP
's VBZ
time NN
to TO
consider VB
selling VBG
, ,
he PRP
says VBZ
. .

USX NNP
Corp. NNP
declined VBD
a DT
United NNP
Steelworkers NNPS
request NN
for IN
a DT
reopening VBG
of IN
its PRP$
four-year JJ
labor NN
contract NN
that WDT
is VBZ
due JJ
to TO
expire VB
Jan. NNP
31 CD
, ,
1991 CD
. .

The DT
union NN
on IN
Oct. NNP
5 NN
requested VBD
that IN
the DT
contract NN
be VB
reopened VBN
to TO
restore VB
all DT
pay NN
and CC
benefits NNS
that IN
the DT
union NN
gave VBD
up IN
in IN
the DT
1982-83 CD
and CC
1986-87 CD
rounds NNS
of IN
bargaining NN
. .

A DT
United NNP
Steelworkers NNPS
spokeman NN
said VBD
Lynn NNP
Williams NNP
, ,
the DT
union NN
's POS
president NN
, ,
was VBD
out IN
of IN
town NN
. .

The DT
union NN
wo MD
n't RB
respond VB
to TO
the DT
USX NNP
statement NN
until IN
Mr. NNP
Williams NNP
has VBZ
studied VBN
it PRP
, ,
the DT
spokesman NN
said VBD
. .

Robert NNP
A. NNP
Oswald NNP
, ,
chief JJ
financial JJ
officer NN
and CC
a DT
director NN
of IN
this DT
natural-gas NN
pipeline NN
company NN
, ,
was VBD
elected VBN
to TO
the DT
additional JJ
position NN
of IN
executive JJ
vice NN
president NN
. .

In IN
addition NN
, ,
Michael NNP
W. NNP
O'Donnell NNP
, ,
executive JJ
vice NN
president NN
of IN
a DT
Columbia NNP
unit NN
, ,
was VBD
named VBN
assistant NN
chief NN
financial JJ
officer NN
and CC
a DT
senior JJ
vice NN
president NN
of IN
the DT
parent NN
company NN
. .

The DT
appointments NNS
take VBP
effect NN
Nov. NNP
1 CD
. .

Both DT
men NNS
are VBP
44 CD
years NNS
old JJ
. .

This DT
magazine NN
and CC
book NN
publisher NN
said VBD
three CD
men NNS
were VBD
elected VBN
directors NNS
, ,
increasing VBG
the DT
board NN
to TO
10 CD
. .

They PRP
are VBP
: :
James NNP
R. NNP
Eiszner NNP
, ,
62 CD
years NNS
old JJ
and CC
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
CPC NNP
International NNP
Inc. NNP
; :
Robert NNP
G. NNP
Schwartz NNP
, ,
61 CD
, ,
chairman NN
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
Metropolitan NNP
Life NNP
Insurance NNP
Co. NNP
, ,
and CC
Walter NNP
V. NNP
Shipley NNP
, ,
53 CD
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
Chemical NNP
Banking NNP
Corp NNP
. .

BankAmerica NNP
Corp. NNP
reported VBD
a DT
34 CD
% NN
jump NN
in IN
third-quarter JJ
earnings NNS
, ,
as IN
its PRP$
rocket-like JJ
recovery NN
from IN
nearly RB
ruinous JJ
losses NNS
several JJ
years NNS
ago RB
continued VBD
to TO
be VB
fueled VBN
by IN
growth NN
in IN
consumer NN
loans NNS
, ,
higher JJR
interest NN
margins NNS
and CC
negligible JJ
loan NN
losses NNS
. .

For IN
the DT
quarter NN
, ,
BankAmerica NNP
said VBD
it PRP
earned VBD
$ $
254 CD
million CD
, ,
or CC
$ $
1.16 CD
a DT
share NN
, ,
compared VBN
with IN
$ $
190 CD
million CD
, ,
or CC
97 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

BankAmerica NNP
spokesmen NNS
said VBD
preliminary JJ
reports NNS
indicate VBP
the DT
company NN
was VBD
n't RB
materially RB
affected VBN
by IN
the DT
Tuesday NNP
earthquake NN
. .

All DT
but CC
eight CD
of IN
the DT
850 CD
branches NNS
, ,
which WDT
had VBD
some DT
structural JJ
damage NN
, ,
reopened VBD
yesterday NN
for IN
business NN
. .
Automated NNP
teller NN
machine NN
operations NNS
also RB
were VBD
up IN
and CC
operating VBG
yesterday NN
, ,
a DT
bank NN
spokesman NN
said VBD
. .

For IN
the DT
first JJ
time NN
in IN
nearly RB
two CD
years NNS
, ,
BankAmerica NNP
results NNS
failed VBD
to TO
improve VB
in IN
consecutive JJ
quarters NNS
, ,
but CC
the DT
decline NN
from IN
the DT
second JJ
quarter NN
was VBD
attributable JJ
to TO
special JJ
factors NNS
. .

Third-quarter JJ
profit NN
was VBD
16 CD
% NN
below IN
the DT
$ $
304 CD
million CD
, ,
or CC
$ $
1.50 CD
a DT
share NN
, ,
earned VBD
in IN
the DT
1989 CD
second JJ
quarter NN
. .

The DT
company NN
cited VBD
higher JJR
tax NN
credits NNS
in IN
the DT
second JJ
quarter NN
, ,
totaling VBG
$ $
63 CD
million CD
, ,
compared VBN
with IN
$ $
28 CD
million CD
in IN
the DT
third JJ
quarter NN
. .

Excluding VBG
tax NN
credits NNS
, ,
profit NN
was VBD
6 CD
% NN
below IN
the DT
second JJ
quarter NN
. .

But CC
that DT
drop NN
was VBD
caused VBN
entirely RB
by IN
a DT
decline NN
in IN
Brazilian JJ
interest NN
paid VBN
, ,
to TO
$ $
5 NN
million CD
from IN
$ $
54 CD
million CD
the DT
second JJ
quarter NN
. .

Moreover RB
, ,
BankAmerica NNP
continued VBD
to TO
build VB
its PRP$
reserve NN
against IN
troubled JJ
foreign JJ
loans NNS
by IN
boosting VBG
its PRP$
loan-loss NN
provision NN
to TO
$ $
170 CD
million CD
, ,
about IN
the DT
same JJ
as IN
the DT
previous JJ
quarter NN
but CC
well RB
above IN
the DT
$ $
100 CD
million CD
in IN
the DT
year-earlier JJ
quarter NN
. .

The DT
provision NN
rate NN
was VBD
far RB
above IN
BankAmerica NNP
's POS
actual JJ
net JJ
credit NN
losses NNS
of IN
$ $
24 CD
million CD
in IN
the DT
third JJ
quarter NN
, ,
compared VBN
with IN
$ $
18 CD
million CD
in IN
the DT
second JJ
period NN
and CC
$ $
38 CD
million CD
a DT
year NN
earlier RBR
. .

As IN
a DT
result NN
, ,
BankAmerica NNP
said VBD
its PRP$
reserve NN
against IN
troubled JJ
foreign-country JJ
loans NNS
, ,
once RB
below IN
25 CD
% NN
, ,
now RB
amounts VBZ
to TO
45 CD
% NN
of IN
the DT
$ $
6.4 CD
billion CD
of IN
non-trade JJ
debt NN
it PRP
calculates VBZ
it PRP
is VBZ
owed VBN
by IN
those DT
nations NNS
. .

That DT
level NN
is VBZ
about IN
the DT
same JJ
as IN
some DT
other JJ
big JJ
banks NNS
, ,
but CC
far RB
below IN
the DT
85 CD
% NN
and CC
100 CD
% NN
reserves NNS
of IN
Bankers NNP
Trust NNP
New NNP
York NNP
Corp. NNP
and CC
J.P. NNP
Morgan NNP
& CC
Co. NNP
, ,
respectively RB
. .

By IN
any DT
measure NN
, ,
third-quarter JJ
earnings NNS
were VBD
still RB
robust JJ
, ,
equivalent NN
to TO
a DT
0.92 CD
% NN
return NN
on IN
assets NNS
even RB
excluding VBG
tax NN
credits NNS
. .

By IN
that DT
key JJ
measure NN
of IN
operating VBG
efficiency NN
, ,
BankAmerica NNP
turned VBD
in IN
a DT
better JJR
performance NN
than IN
its PRP$
well-regarded JJ
Los NNP
Angeles-based JJ
competitor NN
, ,
Security NNP
Pacific NNP
Corp. NNP
, ,
which WDT
posted VBD
a DT
0.89 CD
% NN
return NN
in IN
the DT
third JJ
quarter NN
. .

But CC
it PRP
continued VBD
to TO
badly RB
trail VBP
its PRP$
San NNP
Francisco NNP
neighbor NN
, ,
Wells NNP
Fargo NNP
& CC
Co. NNP
, ,
which WDT
reported VBD
an DT
extraordinary JJ
1.25 CD
% NN
return NN
on IN
assets NNS
. .

Both DT
returns NNS
do VBP
n't RB
include VB
any DT
tax NN
credits NNS
. .

`` ``
They PRP
-LCB- (
BankAmerica NNP
-RCB- )
continue VB
to TO
show VB
good JJ
performance NN
, ,
'' ''
said VBD
Donald NNP
K. NNP
Crowley NNP
, ,
an DT
analyst NN
with IN
Keefe NNP
, ,
Bruyette NNP
& CC
Woods NNP
Inc. NNP
, ,
San NNP
Francisco NNP
. .

In IN
composite JJ
trading NN
yesterday NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
BankAmerica NNP
common JJ
stock NN
edged VBD
up IN
12.5 CD
cents NNS
to TO
close VB
at IN
$ $
32 CD
a DT
share NN
. .

Shareholder NN
equity NN
improved VBN
to TO
4.68 CD
% NN
from IN
4.23 CD
% NN
in IN
the DT
previous JJ
quarter NN
. .
The DT
4.52 CD
% NN
net JJ
interest NN
margin NN
, ,
or CC
the DT
difference NN
between IN
the DT
yield NN
on IN
a DT
bank NN
's POS
investments NNS
and CC
the DT
rate NN
it PRP
pays VBZ
for IN
deposits NNS
and CC
other JJ
borrowings NNS
, ,
was VBD
still RB
markedly RB
higher JJR
than IN
the DT
3.91 CD
% NN
ratio NN
a DT
year NN
earlier RBR
, ,
and CC
is VBZ
among IN
the DT
best JJS
in IN
the DT
industry NN
, ,
analysts NNS
said VBD
. .

The DT
high JJ
margin NN
partly RB
stems VBZ
from IN
continued VBN
strong JJ
growth NN
in IN
high-yielding JJ
consumer NN
loans NNS
, ,
which WDT
jumped VBD
31 CD
% NN
to TO
$ $
17.47 CD
billion CD
from IN
a DT
year NN
earlier RBR
, ,
and CC
residential JJ
mortgages NNS
, ,
which WDT
rose VBD
25 CD
% NN
to TO
$ $
12 CD
billion CD
. .

BankAmerica NNP
's POS
total JJ
loans NNS
rose VBD
8 CD
% NN
to TO
$ $
71.36 CD
billion CD
. .

For IN
the DT
nine CD
months NNS
, ,
BankAmerica NNP
profit NN
soared VBD
81 CD
% NN
to TO
$ $
833 CD
million CD
, ,
or CC
$ $
4.07 CD
a DT
share NN
, ,
from IN
$ $
461 CD
million CD
, ,
or CC
$ $
2.40 CD
a DT
share NN
. .

International NNP
Business NNP
Machines NNP
Corp. NNP
will MD
announce VB
on IN
Tuesday NNP
a DT
slew NN
of IN
software NN
products NNS
aimed VBN
at IN
eliminating VBG
some DT
of IN
the DT
major JJ
problems NNS
involved VBN
in IN
computerizing VBG
manufacturing NN
operations NNS
, ,
industry NN
executives NNS
said VBD
. .

Many JJ
plant NN
floors NNS
currently RB
resemble VBP
a DT
Tower NNP
of IN
Babel NNP
, ,
with IN
computers NNS
, ,
robots NNS
and CC
machine NN
tools NNS
that WDT
generally RB
speak VB
their PRP$
own JJ
language NN
and CC
have VBP
trouble NN
talking VBG
to TO
each DT
other NN
. .

As IN
a DT
result NN
, ,
if IN
a DT
problem NN
develops VBZ
on IN
a DT
production NN
line NN
, ,
it PRP
is VBZ
unlikely JJ
some DT
supervisor NN
sitting VBG
in IN
front NN
of IN
a DT
personal JJ
computer NN
or CC
workstation NN
will MD
know VB
about IN
it PRP
or CC
be VB
able JJ
to TO
correct VB
it PRP
. .

So RB
IBM NNP
will MD
be VB
announcing VBG
more JJR
than IN
50 CD
products NNS
that WDT
will MD
be VB
aimed VBN
at IN
letting VBG
even RB
the DT
dumbest JJS
machine NN
tool NN
talk NN
to TO
the DT
smartest JJS
mainframe NN
, ,
or CC
anything NN
in IN
between RB
. .

In IN
an DT
unusual JJ
display NN
of IN
openness NN
, ,
IBM NNP
also RB
will MD
be VB
helping VBG
customers NNS
tie VBP
together RB
operations NNS
that WDT
include VBP
lots NNS
of IN
equipment NN
made VBN
by IN
IBM NNP
's POS
competitors NNS
. .

In IN
addition NN
, ,
the DT
executives NNS
said VBD
IBM NNP
will MD
be VB
offering NN
programming NN
tools NNS
designed VBN
to TO
let VB
anyone NN
working VBG
on IN
a DT
factory NN
floor NN
write VB
ad-hoc JJ
software NN
, ,
for IN
instance NN
, ,
to TO
do VB
statistical JJ
analysis NN
that WDT
would MD
pinpoint VB
a DT
problem NN
on IN
a DT
manufacturing NN
line NN
. .

In IN
Armonk NNP
, ,
N.Y. NNP
, ,
an DT
IBM NNP
spokeswoman NN
confirmed VBD
that IN
IBM NNP
executives NNS
will MD
be VB
announcing VBG
some DT
computer-integrated-manufacturing JJ
plans NNS
next JJ
week NN
but CC
declined VBD
to TO
elaborate VB
. .

The DT
industry NN
executives NNS
said VBD
that IN
, ,
as IN
usual JJ
with IN
such JJ
broad JJ
announcements NNS
from IN
IBM NNP
, ,
this DT
one PRP
will MD
be VB
part NN
reality NN
and CC
part NN
strategy NN
. .

So RB
it PRP
will MD
take VB
many JJ
quarters NNS
for IN
IBM NNP
to TO
roll VB
out IN
all PDT
the DT
products NNS
that IN
customers NNS
need VBP
, ,
and CC
it PRP
will MD
take VB
years NNS
for IN
customers NNS
to TO
integrate VB
the DT
products NNS
into IN
their PRP$
operations NNS
. .

Also RB
as IN
usual JJ
, ,
the DT
products NNS
will MD
appeal VB
mostly RB
to TO
heavy JJ
users NNS
of IN
IBM NNP
equipment NN
, ,
at IN
least JJS
initially RB
. .

Still RB
, ,
consultants NNS
and CC
industry NN
executives NNS
said VBD
the DT
products NNS
could MD
help VB
make VB
manufacturing NN
operations NNS
more RBR
efficient JJ
, ,
and CC
provide VB
a DT
boost NN
to TO
the DT
computer-integrated-manufacturing JJ
market NN
-- :
a DT
market NN
that IN
Yankee NNP
Group NNP
, ,
a DT
research NN
firm NN
, ,
has VBZ
said VBD
may MD
double VB
to TO
$ $
40 CD
billion CD
by IN
1993 CD
. .

`` ``
This DT
is VBZ
a DT
step NN
in IN
the DT
right JJ
direction NN
, ,
'' ''
said VBD
Martin NNP
Piszczalski NNP
, ,
a DT
Yankee NNP
Group NNP
analyst NN
. .

He PRP
added VBD
, ,
though RB
, ,
that IN
`` ``
a DT
lot NN
of IN
this DT
is VBZ
intentions NNS
... :
. .

We PRP
'll MD
have VB
to TO
wait VB
and CC
see VB
'' ''
how WRB
the DT
plan NN
develops VBZ
. .

The DT
announcements NNS
also RB
should MD
help VB
IBM NNP
go VB
on IN
the DT
offensive NN
against IN
Digital NNP
Equipment NNP
Corp. NNP
on IN
the DT
plant NN
floor NN
. .

While IN
IBM NNP
has VBZ
traditionally RB
dominated VBN
the DT
market NN
for IN
computers NNS
on IN
the DT
business NN
side NN
of IN
manufacturing NN
operations NNS
and CC
has VBZ
done VBN
well RB
in IN
the DT
market NN
for IN
design NN
tools NNS
, ,
Digital NNP
has VBZ
dominated VBN
computerized JJ
manufacturing NN
. .

Hewlett-Packard NNP
Co. NNP
also RB
has VBZ
begun VBN
to TO
gain VB
share NN
in IN
the DT
whole JJ
computer-integrated-manufacturing JJ
arena NN
. .

IBM NNP
will MD
face VB
an DT
uphill JJ
climb NN
against IN
Digital NNP
, ,
given VBN
Digital NNP
's POS
reputation NN
for IN
being VBG
better JJR
than IN
IBM NNP
at IN
hooking VBG
together RB
different JJ
manufacturers NNS
' POS
computers NNS
. .

In IN
addition NN
, ,
Hewlett-Packard NNP
, ,
while IN
a DT
much RB
smaller JJR
player NN
, ,
has VBZ
made VBN
a DT
big JJ
commitment NN
to TO
the DT
sorts NNS
of IN
industry NN
standards NNS
that WDT
facilitate VBP
those DT
hookups NNS
and CC
could MD
give VB
IBM NNP
some DT
problems NNS
. .

Both DT
can MD
be VB
expected VBN
to TO
go VB
after IN
the DT
market NN
aggressively RB
: :
Gartner NNP
Group NNP
Inc. NNP
, ,
a DT
research NN
firm NN
, ,
estimated VBD
the DT
Digital NNP
gets VBZ
30 CD
% NN
of IN
its PRP$
revenue NN
from IN
the DT
manufacturing NN
market NN
, ,
and CC
Hewlett-Packard NNP
gets VBZ
50 CD
% NN
. .

IBM NNP
, ,
which WDT
Gartner NNP
Group NNP
said VBD
generates VBZ
22 CD
% NN
of IN
its PRP$
revenue NN
in IN
this DT
market NN
, ,
should MD
be VB
able JJ
to TO
take VB
advantage NN
of IN
its PRP$
loyal JJ
following NN
among IN
buyers NNS
of IN
equipment NN
. .

That DT
is VBZ
because IN
many JJ
companies NNS
will MD
standardize VB
on IN
certain JJ
types NNS
of IN
equipment NN
as IN
the DT
various JJ
parts NNS
of IN
the DT
manufacturing NN
market NN
merge NN
, ,
and CC
IBM NNP
is VBZ
the DT
biggest JJS
player NN
. .

But CC
much NN
will MD
depend VB
on IN
how WRB
quickly RB
IBM NNP
can MD
move VB
. .

The DT
whole JJ
idea NN
of IN
computer-integrated JJ
manufacturing NN
, ,
CIM NNP
, ,
seems VBZ
to TO
be VB
making VBG
a DT
comeback NN
after IN
losing VBG
a DT
little JJ
luster NN
over IN
the DT
past JJ
couple NN
of IN
years NNS
when WRB
it PRP
became VBD
apparent JJ
that IN
it PRP
was VBD
n't RB
a DT
panacea NN
that WDT
would MD
make VB
U.S. NNP
plants NNS
more RBR
efficient JJ
and CC
banish VB
foreign JJ
competition NN
. .

Erik NNP
Keller NNP
, ,
a DT
Gartner NNP
Group NNP
analyst NN
, ,
said VBD
organizational JJ
changes NNS
may MD
still RB
be VB
required VBN
to TO
really RB
take VB
advantage NN
of IN
CIM NNP
's POS
capabilities NNS
-- :
someone NN
on IN
the DT
shop NN
floor NN
may MD
not RB
like IN
having VBG
someone NN
in IN
an DT
office NN
using VBG
a DT
personal JJ
computer NN
to TO
look VB
over IN
his PRP$
shoulder NN
, ,
for IN
instance NN
, ,
and CC
may MD
be VB
able JJ
to TO
prevent VB
that IN
from IN
happening VBG
. .

But CC
he PRP
said VBD
a DT
system NN
such JJ
as IN
IBM NNP
's POS
should MD
help VB
significantly RB
. .

In IN
making VBG
polyethylene NN
sheets NNS
out IN
of IN
plastic NN
chips NNS
, ,
for IN
instance NN
, ,
a DT
chip NN
sometimes RB
does VBZ
n't RB
melt VB
, ,
gets VBZ
caught VBN
in IN
the DT
machinery NN
and CC
creates VBZ
a DT
run NN
in IN
the DT
sheets NNS
. .

That DT
can MD
be VB
expensive JJ
, ,
because IN
the DT
problem NN
may MD
not RB
be VB
noticed VBN
for IN
a DT
while NN
, ,
and CC
the DT
sheets NNS
are VBP
typically RB
thrown VBN
away RB
. .

But CC
Mr. NNP
Keller NNP
said VBD
that IN
, ,
if IN
computers NNS
can MD
be VB
integrated VBN
into IN
the DT
process NN
, ,
they PRP
could MD
alert VB
an DT
operator NN
as RB
soon RB
as IN
the DT
problem NN
occurred VBD
. .

They PRP
could MD
also RB
check VB
through IN
the DT
orders NNS
on IN
file NN
to TO
find VB
a DT
customer NN
that WDT
was VBD
willing JJ
to TO
accept VB
a DT
lower JJR
grade NN
of IN
polyethylene NN
. .

The DT
computer NN
would MD
let VB
the DT
machine NN
run NN
just RB
until IN
that DT
order NN
was VBD
filled VBN
, ,
eliminating VBG
waste NN
. .

This DT
sort NN
of IN
improved VBN
link NN
figures NNS
to TO
eventually RB
become VB
a DT
significant JJ
weapon NN
for IN
some DT
companies NNS
. .

Companies NNS
might MD
be VB
able JJ
to TO
tell VB
salespeople NN
daily JJ
, ,
for IN
instance NN
, ,
about IN
idle JJ
equipment NN
, ,
so IN
they PRP
could MD
offer VB
discounts NNS
on IN
whatever WDT
that DT
equipment NN
produces VBZ
. .

Salespeople NNS
also RB
could MD
get VB
a DT
precise JJ
reading NN
on IN
when WRB
products NNS
could MD
be VB
delivered VBN
-- :
in IN
much JJ
the DT
same JJ
way NN
that IN
Federal NNP
Express NNP
has VBZ
marketed VBN
its PRP$
ability NN
to TO
tell VB
exactly RB
where WRB
a DT
package NN
is VBZ
in IN
the DT
delivery NN
system NN
. .

Ford NNP
Motor NNP
Co. NNP
's POS
Merkur NNP
, ,
the DT
company NN
's POS
first JJ
new JJ
car NN
franchise NN
in IN
the DT
U.S. NNP
since IN
the DT
Edsel NNP
was VBD
unveiled VBN
in IN
1957 CD
, ,
now RB
will MD
share VB
Edsel NNP
's POS
fate NN
. .

Ford NNP
said VBD
yesterday NN
it PRP
will MD
halt VB
imports NNS
of IN
the DT
Merkur NNP
Scorpio NNP
, ,
a DT
$ $
28,000 CD
luxury NN
sedan NN
built VBN
by IN
Ford NNP
of IN
Europe NNP
in IN
West NNP
Germany NNP
. .

The DT
cars NNS
are VBP
sold VBN
under IN
a DT
separate JJ
franchise NN
with IN
its PRP$
own JJ
sign NN
in IN
front NN
of IN
Lincoln-Mercury NNP
dealers NNS
-- :
as IN
opposed VBN
to TO
new JJ
models NNS
such JJ
as IN
Taurus NNP
or CC
Escort NNP
, ,
which WDT
are VBP
sold VBN
under IN
existing VBG
Ford NNP
divisions NNS
. .

The DT
move NN
to TO
halt VB
imports NNS
-- :
announced VBD
29 CD
years NNS
and CC
11 CD
months NNS
to TO
the DT
day NN
after IN
Henry NNP
Ford NNP
II NNP
declared VBD
that IN
the DT
Edsel NNP
division NN
and CC
its PRP$
gawky JJ
car NN
would MD
be VB
scrapped VBN
-- :
kills VBZ
the DT
four-year-old JJ
Merkur NNP
brand NN
in IN
the DT
U.S. NNP
market NN
. .

It PRP
will MD
continue VB
to TO
be VB
sold VBN
in IN
the DT
European JJ
market NN
. .

Merkur NNP
's POS
death NN
is VBZ
n't RB
nearly RB
as IN
costly JJ
to TO
Ford NNP
as IN
was VBD
the DT
Edsel NNP
debacle NN
, ,
because IN
Merkur NNP
was VBD
a DT
relatively RB
low-budget JJ
project NN
with IN
limited JJ
sales NNS
goals NNS
. .

Still RB
, ,
Merkur NNP
's POS
demise NN
is VBZ
a DT
setback NN
for IN
Ford NNP
at IN
a DT
time NN
when WRB
the DT
company NN
's POS
image NN
as IN
the DT
U.S. NNP
auto NN
maker NN
with IN
the DT
golden JJ
touch NN
is VBZ
showing VBG
signs NNS
of IN
strain NN
. .

The DT
No. NN
2 CD
auto NN
maker NN
's POS
new JJ
Thunderbird NNP
and CC
Mercury NNP
Cougar NNP
models NNS
have VBP
n't RB
met VBN
sales NNS
expectations NNS
in IN
the DT
year NN
since IN
they PRP
were VBD
introduced VBN
, ,
and CC
Ford NNP
's POS
trucks NNS
are VBP
losing VBG
ground NN
to TO
their PRP$
GM NNP
rivals NNS
. .

This DT
fall NN
, ,
Ford NNP
introduced VBD
only RB
one CD
new JJ
product NN
: :
A DT
restyled VBN
version NN
of IN
its PRP$
hulking JJ
Lincoln NNP
Town NNP
Car NNP
luxury NN
model NN
. .

The DT
demise NN
of IN
Merkur NNP
-LRB- (
pronounced VBN
mare-COOR NNP
-RRB- )
comes VBZ
after IN
a DT
September NNP
in IN
which WDT
670 CD
Merkur NNP
dealers NNS
managed VBD
to TO
sell VB
only RB
93 CD
Scorpios NNPS
. .

Total NNP
Merkur NNP
sales NNS
for IN
the DT
first JJ
nine CD
months NNS
dropped VBD
46 CD
% NN
from IN
a DT
year NN
ago RB
to TO
just RB
6,320 CD
cars NNS
. .

Merkur NNP
is VBZ
n't RB
the DT
only RB
European JJ
luxury NN
brand NN
having VBG
problems NNS
in IN
the DT
U.S. NNP
. .

The DT
Japanese JJ
assault NN
on IN
the DT
luxury NN
market NN
is VBZ
rapidly RB
overshadowing VBG
such JJ
European JJ
makes NNS
as IN
Audi NNP
and CC
Saab NNP
, ,
which WDT
at IN
least JJS
have VBP
clear JJ
brand NN
images NNS
. .

Merkur NNP
, ,
as IN
an DT
import NN
on IN
domestic JJ
car NN
lots NNS
, ,
suffered VBD
from IN
the DT
same JJ
sort NN
of IN
image NN
confusion NN
that WDT
is VBZ
hobbling VBG
sales NNS
of IN
imports NNS
at IN
General NNP
Motors NNPS
Corp. NNP
and CC
Chrysler NNP
Corp NNP
. .

Merkur NNP
was VBD
originally RB
aimed VBN
at IN
enticing VBG
into IN
Lincoln-Mercury NNP
dealerships NNS
the DT
kind NN
of IN
young JJ
, ,
affluent JJ
buyers NNS
who WP
would MD
n't RB
be VB
caught VBN
dead JJ
in IN
a DT
Town NNP
Car NNP
-- :
a DT
vehicle NN
so RB
bargelike JJ
that IN
Ford NNP
is VBZ
staging VBG
a DT
press NN
event NN
next JJ
month NN
linking VBG
the DT
Town NNP
Car NNP
's POS
launch NN
to TO
the DT
commissioning NN
of IN
a DT
new JJ
aircraft NN
carrier NN
in IN
Norfolk NNP
, ,
Va NNP
. .
But CC
the DT
brand NN
had VBD
trouble NN
from IN
the DT
start NN
. .

The DT
first JJ
Merkur NNP
, ,
the DT
XR4Ti NNP
, ,
went VBD
on IN
sale NN
in IN
early JJ
1985 CD
. .

The DT
sporty JJ
coupe NN
foundered VBD
in IN
part NN
because IN
American JJ
buyers NNS
did VBD
n't RB
go VB
for IN
the DT
car NN
's POS
unusual JJ
double-wing JJ
rear JJ
spoiler NN
. .

In IN
May NNP
1987 CD
, ,
Ford NNP
began VBD
importing VBG
the DT
Scorpio NNP
sedan NN
from IN
West NNP
Germany NNP
to TO
sell VB
next JJ
to TO
a DT
redesigned VBN
XR4Ti NNP
in IN
showrooms NNS
. .

Ford NNP
officials NNS
said VBD
they PRP
expected VBD
the DT
two CD
Merkurs NNPS
would MD
sell VB
about IN
15,000 CD
cars NNS
a DT
year NN
, ,
and CC
in IN
1988 CD
they PRP
reached VBD
that DT
goal NN
, ,
as IN
sales NNS
hit VBD
15,261 CD
cars NNS
. .

It PRP
was VBD
downhill RB
from IN
there EX
, ,
however RB
. .

One CD
major JJ
factor NN
was VBD
the DT
decline NN
of IN
the DT
dollar NN
against IN
the DT
mark NN
, ,
which WDT
began VBD
less JJR
than IN
a DT
year NN
after IN
Merkur NNP
's POS
1985 CD
launch NN
. .

As IN
the DT
West JJ
German JJ
currency NN
rose VBD
, ,
so RB
did VBD
Merkur NNP
prices NNS
. .

The DT
Merkur NNP
cars NNS
also RB
suffered VBD
from IN
spotty JJ
quality NN
, ,
some DT
dealers NNS
say VBP
. .

`` ``
It PRP
was VBD
like IN
a DT
comedy NN
of IN
errors NNS
, ,
'' ''
says VBZ
Martin NNP
J. NNP
`` ``
Hoot NNP
'' ''
McInerney NNP
, ,
a DT
big JJ
dealer NN
whose WP$
Star NNP
Lincoln-Mercury-Merkur NNP
operation NN
in IN
Southfield NNP
, ,
Mich. NNP
, ,
sold VBN
more JJR
XR4Ti NNP
's POS
than IN
any DT
other JJ
dealership NN
. .

But CC
by IN
the DT
third JJ
quarter NN
of IN
1988 CD
, ,
Scorpios NNPS
had VBD
a DT
high JJ
satisfaction NN
rating NN
in IN
internal JJ
Ford NNP
studies NNS
, ,
a DT
spokesman NN
said VBD
. .

Apparently RB
, ,
however RB
, ,
the DT
improvement NN
came VBD
too RB
late JJ
. .

Last JJ
fall NN
, ,
Ford NNP
announced VBD
it PRP
would MD
discontinue VB
the DT
XR4Ti NNP
in IN
the DT
U.S. NNP
at IN
the DT
end NN
of IN
the DT
1989 CD
model NN
year NN
. .

Ford NNP
said VBD
then RB
it PRP
would MD
keep VB
the DT
Scorpio NNP
. .

This DT
year NN
, ,
Scorpio NNP
sales NNS
plummeted VBD
, ,
and CC
at IN
the DT
current JJ
sales NNS
pace NN
it PRP
would MD
take VB
Ford NNP
242 CD
days NNS
to TO
sell VB
off IN
the DT
current JJ
Scorpio NNP
inventory NN
of IN
about IN
4,600 CD
cars NNS
. .

Canadian NNP
Pacific NNP
Ltd. NNP
said VBD
it PRP
proposed VBD
acquiring VBG
the DT
44 CD
% NN
of IN
Soo NNP
Line NNP
Corp. NNP
it PRP
does VBZ
n't RB
already RB
own JJ
for IN
$ $
19.50 CD
a DT
share NN
, ,
or CC
about RB
$ $
81.9 CD
million CD
, ,
after IN
failing VBG
to TO
find VB
a DT
buyer NN
for IN
its PRP$
majority NN
stake NN
earlier RBR
this DT
year NN
. .

Soo NNP
Line NNP
said VBD
its PRP$
board NN
appointed VBD
a DT
special JJ
committee NN
of IN
independent JJ
directors NNS
to TO
study VB
the DT
proposal NN
. .

The DT
troubled JJ
Minneapolis-based JJ
railroad NN
concern NN
said VBD
the DT
committee NN
has VBZ
the DT
authority NN
to TO
hire VB
financial JJ
and CC
legal JJ
advisers NNS
to TO
assist VB
it PRP
. .

The DT
proposed VBN
acquisition NN
will MD
be VB
subject NN
to TO
approval NN
by IN
the DT
Interstate NNP
Commerce NNP
Commission NNP
, ,
Soo NNP
Line NNP
said VBD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
yesterday NN
, ,
Soo NNP
Line NNP
shares NNS
jumped VBD
well RB
above IN
the DT
proposed VBN
price NN
, ,
closing VBG
at IN
$ $
20.25 CD
, ,
up IN
$ $
2.75 CD
. .

Canadian NNP
Pacific NNP
put VB
its PRP$
56 CD
% NN
stake NN
in IN
Soo NNP
Line NNP
up IN
for IN
sale NN
last JJ
year NN
but CC
could MD
n't RB
find VB
any DT
takers NNS
. .

Canadian NNP
Pacific NNP
, ,
which WDT
has VBZ
interests NNS
in IN
transportation NN
, ,
telecommunications NNS
, ,
forest NN
products NNS
, ,
energy NN
and CC
real JJ
estate NN
, ,
finally RB
took VBD
its PRP$
majority NN
block NN
off IN
the DT
market NN
this DT
spring NN
. .

`` ``
It PRP
turned VBD
out IN
we PRP
could MD
n't RB
sell VB
it PRP
, ,
'' ''
a DT
Canadian NNP
Pacific NNP
official NN
said VBD
, ,
adding VBG
that IN
acquiring VBG
the DT
remainder NN
of IN
Soo NNP
Line NNP
is VBZ
now RB
`` ``
the DT
best JJS
way NN
to TO
rationalize VB
operations NNS
. .
'' ''

Canadian NNP
Pacific NNP
is VBZ
Soo NNP
Line NNP
's POS
biggest JJS
customer NN
and CC
has VBZ
owned VBN
a DT
majority NN
stake NN
in IN
the DT
U.S. NNP
railroad NN
since IN
1947 CD
. .

Canadian NNP
Pacific NNP
and CC
Soo NNP
Line NNP
tracks VBZ
connect VB
at IN
two CD
points NNS
in IN
the DT
West NNP
on IN
the DT
Canada-U.S. NNP
border NN
and CC
the DT
two CD
companies NNS
operate VBP
a DT
very RB
successful JJ
Chicago-Montreal NNP
rail NN
service NN
. .

Separately RB
, ,
for IN
the DT
first JJ
nine CD
months NNS
, ,
Soo NNP
Line NNP
reported VBD
a DT
loss NN
of IN
$ $
398,000 CD
, ,
or CC
four CD
cents NNS
a DT
share NN
, ,
compared VBN
with IN
net JJ
income NN
of IN
$ $
12.5 CD
million CD
, ,
or CC
$ $
1.32 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Revenue NN
fell VBD
5.8 CD
% NN
to TO
$ $
407.9 CD
million CD
from IN
$ $
433.2 CD
million CD
. .

The DT
company NN
had VBD
a DT
loss NN
from IN
operations NNS
of IN
$ $
1.7 CD
million CD
. .

Golden NNP
Nugget NNP
Inc. NNP
reported VBD
a DT
third-quarter JJ
net JJ
loss NN
of IN
$ $
13.1 CD
million CD
, ,
or CC
76 CD
cents NNS
a DT
share NN
, ,
based VBN
on IN
17.2 CD
million CD
common JJ
shares NNS
and CC
dilutive JJ
equivalents NNS
outstanding JJ
. .

The DT
results NNS
compare VBP
with IN
a DT
year-earlier JJ
net JJ
loss NN
of IN
$ $
1.5 CD
million CD
, ,
or CC
seven CD
cents NNS
a DT
share NN
, ,
based VBN
on IN
20.3 CD
million CD
common JJ
and CC
dilutive JJ
equivalents NNS
outstanding JJ
. .

Operating NN
revenue NN
rose VBD
25 CD
% NN
to TO
$ $
52.1 CD
million CD
from IN
$ $
41.8 CD
million CD
a DT
year NN
ago RB
. .

Results NNS
for IN
the DT
latest JJS
quarter NN
include VBP
nonoperating VBG
items NNS
of IN
$ $
23.9 CD
million CD
, ,
versus IN
$ $
8.4 CD
million CD
a DT
year NN
earlier RBR
. .

Most JJS
of IN
the DT
expenses NNS
stem VBP
from IN
the DT
company NN
's POS
huge JJ
Mirage NNP
resort-casino NN
scheduled VBN
to TO
open VB
next JJ
month NN
along IN
the DT
Strip NNP
, ,
and CC
an DT
April NNP
1989 CD
financing NN
by IN
units NNS
operating VBG
the DT
downtown NN
Golden NNP
Nugget NNP
property NN
. .

For IN
the DT
nine CD
months NNS
, ,
Golden NNP
Nugget NNP
reported VBD
a DT
net JJ
loss NN
of IN
$ $
11.4 CD
million CD
, ,
or CC
69 CD
cents NNS
a DT
share NN
, ,
based VBN
on IN
16.6 CD
million CD
common JJ
and CC
dilutive JJ
equivalents NNS
outstanding JJ
. .

The DT
year NN
earlier RBR
, ,
the DT
company NN
had VBD
a DT
net JJ
loss NN
of IN
$ $
4.3 CD
million CD
, ,
or CC
20 CD
cents NNS
a DT
share NN
, ,
based VBN
on IN
21 CD
million CD
common JJ
shares NNS
and CC
dilutive JJ
equivalents NNS
outstanding JJ
. .

The DT
1988 CD
results NNS
include VBP
a DT
$ $
10.7 CD
million CD
charge NN
stemming VBG
from IN
a DT
litigation NN
judgment NN
. .

Separately RB
, ,
the DT
casino NN
operator NN
said VBD
its PRP$
board NN
approved VBD
a DT
plan NN
to TO
buy-back VB
as RB
many JJ
as IN
three CD
million CD
common JJ
shares NNS
from IN
time NN
to TO
time VB
, ,
either DT
in NN
the DT
open JJ
market NN
or CC
through IN
private JJ
transactions NNS
. .

An DT
additional JJ
299,000 CD
shares NNS
are VBP
authorized VBN
for IN
repurchase NN
under IN
an DT
earlier JJR
stock NN
buy-back NN
program NN
. .

John NNP
Uphoff NNP
, ,
an DT
analyst NN
with IN
Raymond NNP
James NNP
& CC
Associates NNPS
, ,
said VBD
the DT
results NNS
were VBD
n't RB
surprising JJ
, ,
and CC
attributed VBD
the DT
buy-back NN
to TO
management NN
's POS
confidence NN
in IN
the DT
Mirage NNP
's POS
ability NN
to TO
generate VB
strong JJ
cash NN
flow NN
in IN
1990 CD
. .

Yesterday NN
, ,
in IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Golden NNP
Nugget NNP
common NN
closed VBD
at IN
$ $
28.25 CD
, ,
up IN
$ $
2 CD
. .

Capital NNP
Holding NNP
Corp. NNP
said VBD
it PRP
requested VBD
and CC
received VBD
the DT
resignation NN
of IN
John NNP
A. NNP
Franco NNP
, ,
its PRP$
vice NN
chairman NN
, ,
as IN
an DT
officer NN
and CC
a DT
director NN
of IN
the DT
life NN
insurance NN
holding VBG
company NN
. .

The DT
company NN
said VBD
Mr. NNP
Franco NNP
developed VBD
a DT
plan NN
to TO
establish VB
a DT
business NN
that WDT
might MD
be VB
competitive JJ
with IN
Capital NNP
Holding NNP
Corp. NNP
's POS
Accumulation NNP
and CC
Investment NNP
Group NNP
, ,
which WDT
Mr. NNP
Franco NNP
headed VBD
. .

The DT
group NN
temporarily RB
will MD
report VB
to TO
Irving NNP
W. NNP
Bailey NNP
II NNP
, ,
chairman NN
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
of IN
Capital NNP
Holding NNP
. .

Mr. NNP
Franco NNP
, ,
47 CD
years NNS
old JJ
, ,
said VBD
in IN
a DT
telephone NN
interview NN
that IN
he PRP
has VBZ
been VBN
considering VBG
and CC
discussing VBG
a DT
number NN
of IN
possible JJ
business NN
ventures NNS
, ,
but CC
that IN
`` ``
nothing NN
is VBZ
at IN
a DT
mature JJ
stage NN
. .
'' ''

He PRP
said VBD
he PRP
`` ``
did VBD
n't RB
argue VB
with IN
'' ''
the DT
company NN
's POS
decision NN
to TO
seek VB
his PRP$
resignation NN
because IN
contemplating VBG
outside IN
business NN
ventures NNS
can MD
distract VB
an DT
executive NN
from IN
performing VBG
his PRP$
best JJS
`` ``
at IN
the DT
job NN
he PRP
is VBZ
paid VBN
to TO
do VB
. .
'' ''

Martin NNP
H. NNP
Ruby NNP
, ,
a DT
managing VBG
director NN
of IN
Capital NNP
Holding NNP
's POS
Accumulation NNP
and CC
Investment NNP
Group NNP
, ,
also RB
resigned VBD
to TO
pursue VB
other JJ
business NN
interests NNS
, ,
Capital NNP
Holding NNP
said VBD
. .

Mr. NNP
Ruby NNP
, ,
39 CD
, ,
said VBD
that IN
he PRP
had VBD
`` ``
an DT
amicable JJ
parting NN
'' ''
with IN
Capital NNP
Holding NNP
and CC
that IN
he PRP
has VBZ
`` ``
a DT
number NN
of IN
ventures NNS
in IN
the DT
financial-services NNS
area NN
'' ''
under IN
consideration NN
. .

He PRP
said VBD
that IN
his PRP$
resignation NN
was VBD
a DT
mutual JJ
decision NN
with IN
Capital NNP
Holding NNP
management NN
, ,
but CC
that IN
he PRP
was VBD
n't RB
actually RB
asked VBD
to TO
resign VB
. .

The DT
Accumulation NNP
and CC
Investment NNP
Group NNP
is VBZ
responsible JJ
for IN
the DT
investment NN
operations NNS
of IN
all DT
Capital NNP
Holding NNP
's POS
insurance NN
businesses NNS
and CC
markets NNS
guaranteed VBD
investment NN
contracts NNS
to TO
bank VB
trust NN
departments NNS
and CC
other JJ
institutions NNS
. .

It PRP
also RB
sells VBZ
single-premium JJ
annuities NNS
to TO
individuals NNS
. .

Mr. NNP
Bailey NNP
said VBD
he PRP
expects VBZ
to TO
name VB
a DT
new JJ
group NN
president NN
to TO
head VB
that DT
operation NN
following VBG
the DT
Nov. NNP
8 CD
board NN
meeting NN
. .

@ IN

Money NNP
Market NNP
Deposits NNS
- :
a DT
6.23 CD
% NN

a DT
- :
Average NNP
rate NN
paid VBD
yesterday NN
by IN
100 CD
large JJ
banks NNS
and CC
thrifts NNS
in IN
the DT
10 CD
largest JJS
metropolitan JJ
areas NNS
as IN
compiled VBN
by IN
Bank NNP
Rate NNP
Monitor NNP
. .

b NN
- :
Current JJ
annual JJ
yield NN
. .

Guaranteed VBN
minimum JJ
6 CD
% NN
. .

-LRB- (
During IN
its PRP$
centennial NN
year NN
, ,
The DT
Wall NNP
Street NNP
Journal NNP
will MD
report VB
events NNS
of IN
the DT
past JJ
century NN
that WDT
stand VBP
as IN
milestones NNS
of IN
American JJ
business NN
history NN
. .
-RRB- )

PLASTIC NN
PENCILS NNS
, ,
CODE-NAMED VBN
E-71 NNP
, ,
made VBD
their PRP$
hush-hush JJ
debut NN
in IN
children NNS
's POS
pencil NN
boxes NNS
at IN
five-and-dime JJ
stores NNS
in IN
1973 CD
. .

But CC
few NN
knew VBD
it PRP
then RB
and CC
most RBS
still RB
think VBP
all DT
pencils NNS
are VBP
wooden JJ
. .

Eagle NNP
Pencil NNP
of IN
Shelbyville NNP
, ,
Tenn. NNP
, ,
`` ``
Pencil NNP
City NNP
U.S.A. NNP
, ,
'' ''
had VBD
made VBN
its PRP$
earliest JJS
pilot NN
plastic NN
pencils NNS
in IN
1971 CD
. .

But CC
it PRP
was VBD
n't RB
until IN
after IN
it PRP
hired VBD
Arthur NNP
D. NNP
Little NNP
, ,
a DT
Cambridge NNP
, ,
Mass. NNP
, ,
research NN
concern NN
, ,
that IN
its PRP$
new JJ
product NN
was VBD
refined JJ
for IN
commercial JJ
sale NN
in IN
1973 CD
. .

Three CD
A.D.L. NNP
inventors NNS
applied VBD
April NNP
6 CD
, ,
1973 CD
, ,
for IN
the DT
patent NN
, ,
which WDT
was VBD
assigned VBN
and CC
awarded VBN
in IN
1976 CD
to TO
Hasbro NNP
Industries NNPS
, ,
then RB
Eagle NNP
's POS
parent NN
. .

Pencil NN
pushers NNS
chew VBP
and CC
put VB
the DT
plastic NN
models NNS
behind IN
their PRP$
ears NNS
just RB
like IN
traditional JJ
pencils NNS
made VBN
of IN
glued VBN
strips NNS
of IN
California NNP
incense NN
cedar NN
filled VBN
with IN
ceramic JJ
lead NN
. .

It PRP
takes VBZ
five CD
steps NNS
to TO
make VB
standard JJ
pencils NNS
, ,
just RB
one CD
for IN
the DT
plastic NN
type NN
. .

Automated NNP
machines NNS
coextrude VBP
long JJ
plastic NN
sheaths NNS
with IN
graphite-plastic JJ
cores NNS
that WDT
are VBP
printed VBN
, ,
cut VB
, ,
painted VBN
and CC
eraser-fitted JJ
. .

`` ``
After IN
more JJR
than IN
200 CD
years NNS
, ,
something NN
new JJ
has VBZ
happened VBN
to TO
pencils NNS
, ,
'' ''
said VBD
Arthur NNP
D. NNP
Little NNP
in IN
a DT
1974 CD
report NN
that IN
publicly RB
described VBN
the DT
previously RB
secret JJ
item NN
. .

Eagle NNP
's POS
plastic NN
type NN
sharpens VBZ
and CC
looks VBZ
like IN
a DT
wooden JJ
pencil NN
. .

A DT
major JJ
difference NN
is VBZ
that IN
a DT
snapped VBN
wooden JJ
pencil NN
will MD
have VB
a DT
slivered VBN
break NN
while IN
a DT
plastic NN
model NN
will MD
break VB
cleanly RB
. .

The DT
softness NN
of IN
the DT
core NN
constrains VBZ
the DT
plastic NN
models NNS
to TO
No. VB
1 CD
, ,
No. NN
2 CD
or CC
No. NN
3-type JJ
pencils NNS
, ,
which WDT
account VBP
for IN
the DT
bulk NN
of IN
the DT
market NN
. .

Artists NNS
and CC
draftsmen NNS
need VBP
harder JJR
`` ``
leads VBZ
. .
'' ''

Eagle NNP
, ,
now RB
called VBN
Eagle-Berol NNP
, ,
remains VBZ
a DT
leading VBG
company NN
among IN
the DT
10 CD
in IN
the DT
U.S. NNP
that WDT
produced VBD
about IN
2.3 CD
billion CD
pencils NNS
last JJ
year NN
, ,
according VBG
to TO
the DT
Pencil NNP
Makers NNP
Association NNP
. .

It PRP
's VBZ
a DT
trade NN
secret JJ
how WRB
many NN
were VBD
plastic NN
, ,
and CC
most RBS
writers NNS
still RB
do VBP
n't RB
know VB
what WP
they PRP
're VBP
using VBG
. .

H.F. NNP
Ahmanson NNP
& CC
Co. NNP
, ,
the DT
nation NN
's POS
largest JJS
thrift NN
holding VBG
company NN
, ,
posted VBD
a DT
12 CD
% NN
earnings NNS
decline NN
for IN
the DT
third JJ
quarter NN
while IN
another DT
large JJ
California NNP
savings NNS
and CC
loan NN
, ,
Great NNP
Western NNP
Financial NNP
Corp. NNP
, ,
reported VBD
a DT
slight JJ
earnings NNS
gain NN
. .

H.F. NNP
Ahmanson NNP
, ,
parent NN
of IN
Home NNP
Savings NNP
of IN
America NNP
, ,
reported VBD
third-quarter JJ
net NN
of IN
$ $
49.2 CD
million CD
, ,
or CC
50 CD
cents NNS
a DT
share NN
, ,
down RB
from IN
$ $
56.1 CD
million CD
, ,
or CC
57 CD
cents NNS
a DT
share NN
, ,
in IN
the DT
year-earlier JJ
period NN
. .

Most JJS
of IN
the DT
earnings NNS
decline NN
reflected VBD
an DT
increase NN
in IN
the DT
company NN
's POS
effective JJ
tax NN
rate NN
to TO
44 CD
% NN
from IN
37 CD
% NN
in IN
the DT
year-ago JJ
third JJ
quarter NN
when WRB
nonrecurring VBG
tax NN
credits NNS
were VBD
recorded VBN
, ,
the DT
company NN
said VBD
. .

Pretax JJ
earnings NNS
declined VBD
1.3 CD
% NN
. .

For IN
the DT
nine CD
months NNS
, ,
Los NNP
Angeles-based JJ
H.F. NNP
Ahmanson NNP
had VBD
profit NN
of IN
$ $
128.1 CD
million CD
, ,
or CC
$ $
1.29 CD
a DT
share NN
, ,
a DT
4.6 CD
% NN
decline NN
from IN
earnings NNS
of IN
$ $
134.2 CD
million CD
in IN
the DT
year-ago JJ
nine CD
months NNS
. .

The DT
company NN
said VBD
the DT
decline NN
was VBD
attributable JJ
to TO
a DT
79 CD
% NN
reduction NN
in IN
net JJ
gains NNS
on IN
loan NN
sales VBZ
this DT
year NN
. .

Third-quarter JJ
spreads NNS
widened VBN
to TO
the DT
highest JJS
level NN
in IN
two CD
years NNS
as IN
loan NN
portfolio NN
yields NNS
rose VBD
and CC
money NN
costs NNS
declined VBD
, ,
the DT
company NN
said VBD
. .

Great NNP
Western NNP
Financial NNP
said VBD
third-quarter JJ
profit NN
rose VBD
slightly RB
to TO
$ $
68.4 CD
million CD
, ,
or CC
52 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
67.9 CD
million CD
, ,
or CC
53 CD
cents NNS
a DT
share NN
, ,
from IN
a DT
year NN
ago RB
. .

Great NNP
Western JJ
, ,
based VBN
in IN
Beverly NNP
Hills NNP
, ,
Calif. NNP
, ,
is VBZ
a DT
financial JJ
services NNS
firm NN
and CC
parent NN
to TO
Great NNP
Western NNP
Bank NNP
, ,
an DT
S&L NNP
. .

Great JJ
Western NN
said VBD
it PRP
had VBD
a DT
sharp JJ
increase NN
in IN
margins NNS
in IN
the DT
recent JJ
third JJ
quarter NN
. .

Margins NNS
are VBP
the DT
difference NN
between IN
the DT
yield NN
on IN
the DT
company NN
's POS
earning VBG
assets NNS
and CC
its PRP$
own JJ
cost NN
of IN
funds NNS
. .

But CC
a DT
reduction NN
in IN
one-time JJ
gains NNS
on IN
the DT
sale NN
of IN
various JJ
assets NNS
and CC
an DT
increase NN
in IN
the DT
company NN
's POS
provision NN
for IN
loan NN
losses NNS
held VBN
down RP
the DT
earnings NNS
gain NN
, ,
the DT
company NN
said VBD
. .

Great NNP
Western NN
's POS
provision NN
for IN
loan NN
losses NNS
was VBD
increased VBN
to TO
$ $
27.9 CD
million CD
for IN
the DT
recent JJ
quarter NN
compared VBN
with IN
$ $
21.8 CD
million CD
a DT
year NN
ago RB
primarily RB
as IN
a DT
result NN
of IN
`` ``
continued VBD
weakness NN
in IN
various JJ
commercial JJ
and CC
multifamily JJ
real JJ
estate NN
markets NNS
outside IN
California NNP
. .
'' ''

For IN
the DT
nine CD
months NNS
Great NNP
Western NN
posted VBD
net NN
of IN
$ $
177.5 CD
million CD
, ,
or CC
$ $
1.37 CD
a DT
share NN
, ,
a DT
5.9 CD
% NN
decline NN
from IN
$ $
188.7 CD
million CD
, ,
or CC
$ $
1.48 CD
a DT
share NN
, ,
in IN
the DT
year-ago JJ
period NN
. .

Dun NNP
& CC
Bradstreet NNP
Corp. NNP
posted VBD
a DT
15 CD
% NN
rise NN
in IN
third-quarter JJ
earnings NNS
. .

But CC
revenue NN
declined VBD
more JJR
than IN
2 CD
% NN
, ,
reflecting VBG
in IN
part NN
a DT
continuing VBG
drop NN
in IN
sales NNS
of IN
credit NN
services NNS
in IN
the DT
wake NN
of IN
controversy NN
over IN
the DT
company NN
's POS
sales NNS
practices NNS
. .

The DT
information NN
company NN
also RB
cited VBD
the DT
stronger JJR
dollar NN
, ,
the DT
sale NN
last JJ
year NN
of IN
its PRP$
former JJ
Official NNP
Airline NNP
Guides NNS
unit NN
and CC
other JJ
factors NNS
. .

Net JJ
income NN
rose VBD
to TO
a DT
record NN
$ $
155.3 CD
million CD
, ,
or CC
83 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
134.8 CD
million CD
, ,
or CC
72 CD
cents NNS
a DT
share NN
. .

Revenue NN
fell VBD
to TO
$ $
1.04 CD
billion CD
from IN
$ $
1.07 CD
billion CD
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
Dun NNP
& CC
Bradstreet NNP
closed VBD
yesterday NN
at IN
$ $
53.75 CD
, ,
down RB
25 CD
cents NNS
a DT
share NN
. .

Analysts NNS
said VBD
the DT
results NNS
were VBD
as IN
expected VBN
, ,
but CC
several JJ
added VBD
that IN
the DT
earnings NNS
masked VBN
underlying VBG
weaknesses NNS
in IN
several JJ
businesses NNS
. .

`` ``
The DT
quality NN
of IN
earnings NNS
was VBD
n't RB
as RB
high JJ
as IN
I PRP
expected VBD
, ,
'' ''
said VBD
Eric NNP
Philo NNP
, ,
an DT
analyst NN
for IN
Goldman NNP
, ,
Sachs NNP
& CC
Co NNP
. .
For IN
example NN
, ,
he PRP
noted VBD
, ,
operating VBG
profit NN
was VBD
weaker JJR
than IN
he PRP
had VBD
anticipated VBN
, ,
but CC
nonoperating VBG
earnings NNS
of IN
$ $
14.6 CD
million CD
and CC
a DT
lower JJR
tax NN
rate NN
helped VBD
boost VB
net JJ
income NN
. .

Dun NNP
& CC
Bradstreet NNP
said VBD
operating VBG
earnings NNS
rose VBD
8 CD
% NN
, ,
excluding VBG
the DT
sale NN
of IN
Official NNP
Airline NNP
Guides NNS
. .

Third-quarter JJ
sales NNS
of IN
U.S. NNP
credit NN
services NNS
were VBD
`` ``
disappointingly RB
below IN
sales NNS
'' ''
of IN
a DT
year NN
earlier RBR
, ,
Dun NNP
& CC
Bradstreet NNP
said VBD
. .

As IN
previously RB
reported VBD
, ,
those DT
sales NNS
have NN
been VBN
declining VBG
this DT
year NN
in IN
the DT
wake NN
of IN
allegations NNS
that IN
the DT
company NN
engaged VBN
in IN
unfair JJ
sales NNS
practices NNS
that WDT
encouraged VBD
customers NNS
to TO
overpurchase VB
services NNS
. .

The DT
company NN
has VBZ
denied VBN
the DT
allegations NNS
but CC
has VBZ
negotiated VBN
a DT
proposed VBN
$ $
18 CD
million CD
settlement NN
of IN
related VBN
lawsuits NNS
. .

Analysts NNS
predict VBP
the DT
sales NNS
impact NN
will MD
linger VB
. .

`` ``
There EX
is VBZ
n't RB
much JJ
question NN
there EX
will MD
continue VB
to TO
be VB
a DT
ripple NN
effect NN
, ,
'' ''
said VBD
John NNP
Reidy NNP
, ,
an DT
analyst NN
with IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc NNP
. .

Dun NNP
& CC
Bradstreet NNP
noted VBD
that DT
price NN
competition NN
in IN
its PRP$
Nielsen NNP
Marketing NNP
Research NNP
, ,
Nielsen NNP
Clearing NNP
House NNP
and CC
Donnelley NNP
Marketing NNP
businesses NNS
also RB
restrained VBN
revenue NN
growth NN
. .

It PRP
cited VBD
cyclical JJ
conditions NNS
in IN
its PRP$
Moody NNP
's POS
Investors NNP
Service NNP
Inc. NNP
and CC
D&B NNP
Plan NNP
Services NNPS
units NNS
. .

For IN
the DT
nine CD
months NNS
, ,
net JJ
income NN
rose VBD
19 CD
% NN
to TO
$ $
449 CD
million CD
, ,
or CC
$ $
2.40 CD
a DT
share NN
, ,
from IN
$ $
375.9 CD
million CD
, ,
or CC
$ $
2.01 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Year-earlier JJ
earnings NNS
reflected VBD
costs NNS
of IN
$ $
14.3 CD
million CD
related VBN
to TO
the DT
acquisition NN
of IN
IMS NNP
International NNP
. .

Revenue NN
rose VBD
slightly RB
to TO
$ $
3.16 CD
billion CD
from IN
$ $
3.13 CD
billion CD
. .

Control NNP
Data NNP
Corp. NNP
said VBD
it PRP
licensed VBD
its PRP$
airline NN
yield-management NN
software NN
to TO
the DT
International NNP
Air NNP
Transport NNP
Association NNP
. .

Terms NNS
include VBP
a DT
royalty NN
arrangement NN
, ,
but CC
details NNS
were VBD
n't RB
disclosed VBN
. .

The DT
computer NN
equipment NN
and CC
financial JJ
services NNS
company NN
said VBD
IATA NNP
, ,
a DT
trade NN
group NN
, ,
will MD
sell VB
access NN
to TO
the DT
package NN
to TO
its PRP$
180 CD
airline NN
members NNS
world-wide JJ
. .

Control NNP
Data NNP
will MD
receive VB
revenue NN
linked VBN
to TO
the DT
number NN
of IN
passengers NNS
served VBN
by IN
the DT
software NN
, ,
IATA NNP
said VBD
. .
The DT
package NN
helps VBZ
carriers NNS
solve VBP
pricing VBG
problems NNS
, ,
such JJ
as IN
how WRB
to TO
react VB
to TO
discounts NNS
offered VBN
by IN
competitors NNS
or CC
what WP
would MD
be VB
the DT
optimum JJ
number NN
of IN
seats NNS
to TO
offer VB
at IN
a DT
given VBN
price NN
. .

Wheeling-Pittsburgh NNP
Steel NNP
Corp. NNP
said VBD
it PRP
decided VBD
to TO
proceed VB
with IN
installation NN
of IN
automatic JJ
gauge NN
and CC
shape NN
controls NNS
at IN
its PRP$
60-inch JJ
tandem NN
cold JJ
rolling NN
mill NN
in IN
Allenport NNP
, ,
Pa NNP
. .

The DT
new JJ
equipment NN
, ,
which WDT
will MD
produce VB
steel NN
sheet NN
with IN
more JJR
uniform NN
thickness NN
and CC
flatness NN
, ,
is VBZ
likely JJ
to TO
cost VB
more JJR
than IN
$ $
20 CD
million CD
, ,
the DT
company NN
said VBD
. .

When WRB
the DT
company NN
last RB
considered VBD
adding VBG
the DT
equipment NN
two CD
years NNS
ago RB
, ,
it PRP
estimated VBD
the DT
cost NN
at IN
$ $
21 CD
million CD
to TO
$ $
22 CD
million CD
, ,
but CC
a DT
task NN
force NN
will MD
have VB
to TO
prepare VB
a DT
detailed VBN
plan NN
before IN
the DT
company NN
can MD
predict VB
the DT
current JJ
cost NN
. .

The DT
time NN
schedule NN
for IN
installing VBG
the DT
equipment NN
also RB
will MD
be VB
developed VBN
by IN
the DT
task NN
force NN
, ,
the DT
company NN
said VBD
. .

Sir NNP
Richard NNP
Butler NNP
, ,
60-year-old JJ
chairman NN
of IN
Agricola NNP
-LRB- (
U.K NNP
. .
-RRB- )
Ltd. NNP
, ,
was VBD
named VBN
chairman NN
of IN
County NNP
NatWest NNP
Investment NNP
Management NNP
Ltd. NNP
, ,
the DT
investment NN
management NN
subsidiary NN
of IN
County NNP
NatWest NNP
Ltd. NNP
, ,
the DT
investment NN
banking NN
arm NN
of IN
this DT
British JJ
bank NN
. .

Sir NNP
Richard NNP
succeeds VBZ
John NNP
Plastow NNP
, ,
who WP
resigned VBD
in IN
July NNP
. .

Sir NNP
Richard NNP
is VBZ
also RB
a DT
non-executive JJ
director NN
at IN
National NNP
Westminister NNP
Bank NNP
and CC
NatWest NNP
Investment NNP
Bank NNP
Ltd NNP
. .
In IN
the DT
long JJ
, ,
frightening JJ
night NN
after IN
Tuesday NNP
's POS
devastating JJ
earthquake NN
, ,
Bay NNP
Area NNP
residents NNS
searched VBD
for IN
comfort NN
and CC
solace NN
wherever WRB
they PRP
could MD
. .

Some DT
found VBD
it PRP
on IN
the DT
screen NN
of IN
a DT
personal JJ
computer NN
. .

Hundreds NNS
of IN
Californians NNS
made VBD
their PRP$
way NN
to TO
their PRP$
computers NNS
after IN
the DT
quake NN
, ,
and CC
checked VBD
in IN
with IN
each DT
other NN
on IN
electronic JJ
bulletin NN
boards NNS
, ,
which WDT
link VBP
computers NNS
CB-radio-style JJ
, ,
via IN
phone NN
lines NNS
. .

Some DT
of IN
the DT
most RBS
vivid JJ
bulletins NNS
came VBD
over IN
The DT
Well UH
, ,
a DT
Sausalito NNP
, ,
Calif. NNP
, ,
board NN
that WDT
is VBZ
one CD
of IN
the DT
liveliest JJS
outposts NNS
of IN
the DT
electronic JJ
underground NN
. .

About IN
two-thirds NNS
of IN
the DT
Well UH
's POS
3,000 CD
subscribers NNS
live VBP
in IN
the DT
Bay NNP
Area NNP
. .

The DT
quake NN
knocked VBD
The DT
Well UH
out IN
for IN
six CD
hours NNS
, ,
but CC
when WRB
it PRP
came VBD
back RB
up IN
, ,
it PRP
teemed VBD
with IN
emotional JJ
first-hand JJ
reports NNS
. .

Following VBG
are VBP
excerpts NNS
from IN
the DT
electronic JJ
traffic NN
that DT
night NN
. .

The DT
time NN
is VBZ
Pacific NNP
Daylight NNP
Time NNP
, ,
and CC
the DT
initials NNS
or CC
nicknames NNS
are VBP
those DT
subscribers NNS
use VBP
to TO
identify VB
themselves PRP
. .

11:54 CD
p.m RB
. .
JCKC NNP
: :

Wow UH
! .

I PRP
was VBD
in IN
the DT
avenues NNS
, ,
on IN
the DT
third JJ
floor NN
of IN
an DT
old JJ
building NN
, ,
and CC
except IN
for IN
my PRP$
heart NN
-LRB- (
Beat NNP
, ,
BEAT NN
! .
-RRB- )
I PRP
'm VBP
OK JJ
. .

Got VBD
back RB
to TO
Bolinas NNP
, ,
and CC
everything NN
had VBD
fallen VBN
: :
broken VBN
poster NN
frames NNS
with IN
glass NN
on IN
the DT
floor NN
, ,
file VB
cabinets NNS
open JJ
or CC
dumped VBD
onto IN
the DT
floor NN
. .

11:59 CD
p.m RB
. .

JKD NNP
: :

I PRP
was VBD
in IN
my PRP$
favorite JJ
watering NN
hole NN
, ,
waiting VBG
for IN
the DT
game NN
to TO
start VB
. .

I PRP
felt VBD
the DT
temblor NN
begin VB
and CC
glanced VBD
at IN
the DT
table NN
next JJ
to TO
mine VB
, ,
smiled VBD
that IN
guilty JJ
smile NN
and CC
we PRP
both DT
mouthed VBD
the DT
words NNS
, ,
`` ``
Earth-quake NN
! .
'' ''
together RB
. .

That DT
's VBZ
usually RB
how WRB
long JJ
it PRP
takes VBZ
for IN
the DT
temblors NNS
to TO
pass VB
. .

This DT
time NN
, ,
it PRP
just RB
got VBD
stronger JJR
and CC
then RB
the DT
building NN
started VBD
shaking VBG
violently RB
up IN
and CC
down RB
as IN
though IN
it PRP
were VBD
a DT
child NN
's POS
toy NN
block NN
that WDT
was VBD
being VBG
tossed VBN
. .

12:06 CD
a.m RB
. .

HRH NNP
: :

I PRP
was VBD
in IN
the DT
Berkeley NNP
Main NNP
library NN
when WRB
it PRP
hit VBD
. .

Endless JJ
seconds NNS
wondering VBG
if IN
those DT
huge JJ
windows NNS
would MD
buckle VB
and CC
shower NN
us PRP
with IN
glass NN
. .

Only RB
a DT
few JJ
books NNS
fell VBD
in IN
the DT
reading NN
room NN
. .

Then RB
the DT
auto NN
paint NN
shop NN
fire NN
sent VBD
an DT
evil-looking JJ
cloud NN
of IN
black JJ
smoke NN
into IN
the DT
air NN
. .

12:07 CD
a.m RB
. .

ONEZIE NNP
: :

My PRP$
younger JJR
daughter NN
and CC
I PRP
are VBP
fine JJ
. .

This DT
building NN
shook VBD
like IN
hell NN
and CC
it PRP
kept VBD
getting VBG
stronger JJR
. .

Except IN
for IN
the DT
gas NN
tank NN
at IN
Hustead NNP
's POS
Towing NNP
Service NNP
exploding VBG
and CC
burning VBG
in IN
downtown NN
Berkeley NNP
, ,
things NNS
here RB
are VBP
quite RB
peaceful JJ
. .

A DT
lot NN
of IN
car NN
alarms NNS
went VBD
off RB
. .

The DT
cats NNS
are VBP
fine JJ
, ,
although IN
nervous JJ
. .

12:15 CD
a.m RB
. .

DHAWK NNP
: :

Huge JJ
fire NN
from IN
broken VBN
gas NN
main JJ
in IN
the DT
Marina NNP
in IN
SF NNP
. .

Areas NNS
that WDT
are VBP
made VBN
of IN
` ``
fill NN
' ''
liquefy VB
. .

A DT
woman NN
in IN
a DT
three-story JJ
apartment NN
was VBD
able JJ
to TO
walk VB
out RP
the IN
window NN
of IN
the DT
third JJ
floor NN
onto IN
street NN
level NN
after IN
the DT
quake NN
. .

The DT
house NN
just RB
settled VBD
right RB
down RB
into IN
the DT
ground NN
. .

12:38 CD
a.m RB
. .

DAYAC NNP
: :

I PRP
was VBD
driving VBG
my PRP$
truck NN
, ,
stopped VBD
at IN
a DT
red JJ
light NN
at IN
the DT
corner NN
of IN
Shattuck NNP
and CC
Alcatraz NNP
at IN
the DT
Oakland-Berkeley NNP
border NN
when WRB
it PRP
hit VBD
. .

Worst JJS
part NN
was VBD
watching VBG
power NN
lines NNS
waving VBG
above IN
my PRP$
head NN
and CC
no DT
way NN
to TO
drive VB
away RB
. .

12:48 CD
a.m RB
. .

LMEYER NNP
: :

Was VBD
300 CD
ft. NN
out IN
on IN
a DT
pier NN
in IN
San NNP
Rafael NNP
. .

It PRP
flopped VBD
all DT
around IN
, ,
real JJ
dramatic JJ
! .

Many JJ
hairline NN
cracks NNS
in IN
the DT
concrete JJ
slabs NNS
afterwards RB
. .

Ruined VBN
the DT
damn JJ
fishing NN
! .

1:00 CD
a.m RB
. .

HEYNOW NNP
: :

I PRP
rode VBD
it PRP
out IN
on IN
the DT
second JJ
floor NN
of IN
Leo NNP
's POS
at IN
55th NN
and CC
Telegraph NNP
in IN
Oakland NNP
. .

I PRP
heard VBD
parts NNS
of IN
the DT
building NN
above IN
my PRP$
head NN
cracking VBG
. .

I PRP
actually RB
thought VBD
that IN
I PRP
might MD
die VB
. .

I PRP
could MD
n't RB
decide VB
if IN
I PRP
should MD
come VB
home NN
to TO
Marin NNP
, ,
because IN
my PRP$
house NN
is VBZ
on IN
stilts NNS
. .
I PRP
decided VBD
to TO
brave VB
the DT
storm NN
. .

There EX
was VBD
a DT
horrible JJ
smell NN
of IN
gas NN
as IN
I PRP
passed VBD
the DT
Chevron NNP
refinery NN
before IN
crossing VBG
the DT
Richmond-San NNP
Rafael NNP
Bridge NNP
. .

I PRP
could MD
also RB
see VB
the DT
clouds NNS
across IN
the DT
bay NN
from IN
the DT
horrible JJ
fire NN
in IN
the DT
Marina NNP
District NNP
of IN
San NNP
Francisco NNP
. .

I PRP
have VBP
felt VBN
many JJ
aftershocks NNS
. .

My PRP$
back RB
is VBZ
still RB
in IN
knots NNS
and CC
my PRP$
hands NNS
are VBP
still RB
shaking VBG
. .

I PRP
think VBP
a DT
few NN
of IN
the DT
aftershocks NNS
might MD
just RB
be VB
my PRP$
body NN
shaking VBG
. .

1:11 CD
a.m. NN

GR8FLRED CD
: :

I PRP
could MD
see VB
the DT
flames NNS
from IN
San NNP
Francisco NNP
from IN
my PRP$
house NN
across IN
the DT
bay NN
. .

It PRP
's VBZ
hard JJ
to TO
believe VB
this DT
really RB
is VBZ
happening VBG
. .

1:11 CD
a.m RB
. .

RD NNP
: :

Building NNP
on IN
the DT
corner NN
severely RB
damaged VBD
, ,
so RB
an DT
old JJ
lady NN
and CC
her PRP$
very RB
old JJ
mother NN
are VBP
in IN
the DT
guest NN
room NN
. .

Books NNS
and CC
software NN
everywhere RB
. .

This DT
being VBG
typed VBN
in IN
a DT
standing VBG
position NN
. .

1:20 CD
a.m RB
. .

DGAULT NNP
: :

Bolinas NNP
-- :
astride IN
the DT
San NNP
Andreas NNP
Fault NNP
. .

Did VBD
n't RB
feel VB
a DT
thing NN
, ,
but CC
noticed VBD
some DT
strange JJ
bird NN
behavior NN
. .

Duck NN
swarms NNS
. .

3:25 CD
a.m RB
. .

SAMURAI NNP
: :

I PRP
just RB
felt VBD
another DT
aftershock NN
a DT
few JJ
seconds NNS
ago RB
. .

I PRP
'm VBP
just RB
numb JJ
. .

3:25 CD
a.m RB
. .

MACPOST NNP
: :

Downtown NNP
Bolinas NNP
seems VBZ
to TO
be VB
the DT
part NN
of IN
town NN
that WDT
's VBZ
worst JJS
off RB
. .

No DT
power NN
, ,
minimal JJ
phones NNS
, ,
and CC
a DT
mess NN
of IN
mayonnaise NN
, ,
wine NN
, ,
and CC
everything NN
else RB
all DT
over IN
the DT
floors NNS
of IN
the DT
big JJ
old JJ
general JJ
store NN
and CC
the DT
People NNS
's POS
Co-op NN
. .

The DT
quivers NNS
move VBP
through IN
my PRP$
house NN
every DT
few JJ
minutes NNS
at IN
unpredictable JJ
intervals NNS
, ,
and CC
the DT
mouse NN
that WDT
's VBZ
been VBN
living VBG
in IN
my PRP$
kitchen NN
has VBZ
taken VBN
refuge NN
under IN
my PRP$
desk NN
. .

It PRP
runs VBZ
out IN
frantically RB
now RB
and CC
then RB
, ,
and CC
is VBZ
clearly RB
pretty RB
distressed JJ
. .

I PRP
was VBD
in IN
Stinson NNP
Beach NNP
when WRB
the DT
quake NN
rolled VBD
through IN
town NN
. .

At IN
first JJ
, ,
we PRP
were VBD
unfazed VBN
. .

Then RB
as IN
things NNS
got VBD
rougher JJR
, ,
we PRP
ran VBD
for IN
the DT
door NN
and CC
spent VBD
the DT
next JJ
few JJ
minutes NNS
outside IN
watching VBG
the DT
brick NN
sidewalk NN
under IN
our PRP$
feet NNS
oozing VBG
up IN
and CC
down RB
, ,
and CC
the DT
flowers NNS
waving VBG
in IN
an DT
eerie JJ
rhythm NN
. .

Amazing JJ
what WP
it PRP
does VBZ
to TO
one CD
's POS
heart NN
rate NN
and CC
one CD
's POS
short-term JJ
memory NN
. .

Everyone NN
looked VBD
calm JJ
, ,
but CC
there EX
was VBD
this DT
surreal JJ
low JJ
level NN
of IN
confusion NN
as IN
the DT
aftershocks NNS
continued VBD
. .

4:02 CD
a.m RB
. .

SHIBUMI NNP
: :

Power NNP
is VBZ
back RB
on IN
, ,
and CC
UCSF NNP
-LCB- (
medical JJ
center NN
-RCB- )
seems VBZ
to TO
have VB
quieted VBN
down RB
for IN
the DT
night NN
-LRB- (
they PRP
were VBD
doing VBG
triage NN
out IN
in IN
the DT
parking NN
lot NN
from IN
the DT
sound NN
and CC
lights NNS
of IN
it PRP
-RRB- )
. .

A DT
friend NN
of IN
mine NN
was VBD
in IN
an DT
underground JJ
computer NN
center NN
in IN
downtown NN
SF NNP
when WRB
the DT
quake NN
hit VBD
. .

He PRP
said VBD
that IN
one CD
of IN
the DT
computers NNS
took VBD
a DT
three-foot JJ
trip NN
sliding VBG
across IN
the DT
floor NN
. .

Today NN
should MD
be VB
interesting JJ
as IN
people NNS
realize VBP
how WRB
hard JJ
life NN
is VBZ
going VBG
to TO
be VB
here RB
for IN
a DT
while NN
. .

4:30 CD
a.m RB
. .

KIM NNP
: :

I PRP
got VBD
home NN
, ,
let VB
the DT
dogs NNS
into IN
the DT
house NN
and CC
noticed VBD
some DT
sounds VBZ
above IN
my PRP$
head NN
, ,
as IN
if IN
someone NN
were VBD
walking VBG
on IN
the DT
roof NN
, ,
or CC
upstairs NN
. .

Then RB
I PRP
noticed VBD
the DT
car NN
was VBD
bouncing VBG
up IN
and CC
down RB
as IN
if IN
someone NN
were VBD
jumping VBG
on IN
it PRP
. .

I PRP
realized VBD
what WP
was VBD
happening VBG
and CC
screamed VBD
into IN
the DT
house NN
for IN
the DT
dogs NNS
. .

Cupboard NN
doors NNS
were VBD
flying VBG
, ,
the DT
trash NN
can MD
in IN
the DT
kitchen NN
walked VBD
a DT
few JJ
feet NNS
, ,
the DT
dogs NNS
came VBD
running VBG
, ,
and CC
I PRP
scooted VBD
them PRP
into IN
the DT
dog NN
run NN
and CC
stood VBD
in IN
the DT
doorway NN
myself PRP
, ,
watching VBG
the DT
outside JJ
trash NN
cans NNS
dance VBP
across IN
the DT
concrete NN
. .

When WRB
I PRP
realized VBD
it PRP
was VBD
over IN
, ,
I PRP
went VBD
and CC
stood VBD
out IN
in IN
front NN
of IN
the DT
house NN
, ,
waiting VBG
and CC
praying VBG
for IN
Merrill NNP
to TO
come VB
home NN
, ,
shivering VBG
as IN
if IN
it PRP
were VBD
20 CD
below IN
zero CD
until IN
he PRP
got VBD
there RB
. .

Never RB
in IN
my PRP$
life NN
have VBP
I PRP
been VBN
so RB
frightened VBN
. .

When WRB
I PRP
saw VBD
the DT
pictures NNS
of IN
880 CD
and CC
the DT
Bay NNP
Bridge NNP
, ,
I PRP
began VBD
to TO
cry VB
. .

5:09 CD
a.m RB
. .

JROE NNP
: :

The DT
Sunset NNP
-LCB- (
District NNP
-RCB- )
was VBD
more JJR
or CC
less JJR
like IN
a DT
pajama NN
party NN
all DT
evening NN
, ,
lots NNS
of IN
people NNS
& CC
dogs NNS
walking VBG
around IN
, ,
drinking NN
beer NN
. .

6:50 CD
a.m RB
. .

CAROLG NNP
: :

I PRP
was VBD
just RB
sitting VBG
down RB
to TO
meet VB
with IN
some DT
new JJ
therapy NN
clients NNS
, ,
a DT
couple NN
, ,
and CC
the DT
building NN
started VBD
shaking VBG
like IN
crazy JJ
. .

It PRP
's VBZ
a DT
flimsy JJ
structure NN
, ,
built VBN
up IN
on IN
supports VBZ
, ,
and CC
it PRP
was VBD
really RB
rocking VBG
around RB
. .

The DT
three CD
of IN
us PRP
stopped VBD
breathing NN
for IN
a DT
moment NN
, ,
and CC
then RB
when WRB
it PRP
kept VBD
on IN
coming VBG
we PRP
lunged VBD
for IN
the DT
doorway NN
. .

Needless JJ
to TO
say VB
, ,
it PRP
was VBD
an DT
interesting JJ
first JJ
session NN
! .

7:13 CD
a.m RB
. .

CALLIOPE NNP
: :

Albany NNP
escaped VBD
embarrassingly RB
unscathed JJ
. .

Biggest JJS
trouble NN
was VBD
scared VBN
family NN
who WP
could MD
n't RB
get VB
a DT
phone NN
line NN
through IN
, ,
and CC
spent VBD
a DT
really RB
horrible JJ
hour NN
not RB
knowing VBG
. .

8:01 CD
a.m RB
. .

HLR NNP
: :

Judy NNP
and CC
I PRP
were VBD
in IN
our PRP$
back JJ
yard NN
when WRB
the DT
lawn NN
started VBD
rolling VBG
like IN
ocean NN
waves NNS
. .

We PRP
ran VBD
into IN
the DT
house NN
to TO
get VB
Mame NNP
, ,
but CC
the DT
next JJ
tremor NN
threw VBD
me PRP
in IN
the DT
air NN
and CC
bounced VBD
me PRP
as IN
I PRP
tried VBD
to TO
get VB
to TO
my PRP$
feet NNS
. .

We PRP
are VBP
all DT
fine JJ
here RB
, ,
although IN
Mame NNP
was VBD
extremely RB
freaked VBN
. .

Kitchen NNP
full JJ
of IN
broken VBN
crystal NN
. .

Books NNS
and CC
tapes NNS
all DT
over IN
my PRP$
room NN
. .

Not RB
one CD
thing NN
in IN
the DT
house NN
is VBZ
where WRB
it PRP
is VBZ
supposed VBN
to TO
be VB
, ,
but CC
the DT
structure NN
is VBZ
fine JJ
. .

While IN
I PRP
was VBD
standing VBG
on IN
the DT
lawn NN
with IN
Mame NNP
, ,
waiting VBG
for IN
another DT
tremor NN
, ,
I PRP
noticed VBD
that IN
all PDT
the DT
earthworms NNS
were VBD
emerging VBG
from IN
the DT
ground NN
and CC
slithering VBG
across IN
the DT
lawn NN
! .

9:31 CD
a.m. NN

GR8FLRED CD
: :

It PRP
's VBZ
amazing JJ
how WRB
one CD
second JJ
can MD
so RB
completely RB
change VB
your PRP$
life NN
. .

9:38 CD
a.m RB
. .

FIG NNP
: :

I PRP
guess VBP
we PRP
're VBP
all DT
living VBG
very RB
tentatively RB
here RB
, ,
waiting VBG
for IN
the DT
expected VBN
but CC
dreaded VBN
aftershock NN
. .

It PRP
's VBZ
hard JJ
to TO
accept VB
that IN
it PRP
's VBZ
over IN
and CC
only RB
took VBD
15 CD
seconds NNS
. .

I PRP
wonder VBP
when WRB
we PRP
'll MD
be VB
able JJ
to TO
relax VB
. .

9:53 CD
a.m RB
. .

PANDA NNP
: :

Flesh NN
goes VBZ
to TO
total VB
alert JJ
for IN
flight NN
or CC
fight NN
. .

Nausea NN
seems VBZ
a DT
commonplace JJ
symptom NN
. .

Berkeley NNP
very RB
quiet JJ
right RB
now RB
. .

I PRP
walked VBD
along IN
Shattuck NNP
between IN
Delaware NNP
and CC
Cedar NNP
at IN
a DT
few JJ
minutes NNS
before IN
eight CD
this DT
morning NN
. .

Next JJ
to TO
Chez NNP
Panisse NNP
a DT
homeless JJ
couple NN
, ,
bundled VBN
into IN
a DT
blue JJ
sleeping NN
bag NN
, ,
sat VBD
up IN
, ,
said VBD
, ,
`` ``
Good JJ
morning NN
'' ''
and CC
then RB
the DT
woman NN
smiled VBD
, ,
said VBD
, ,
`` ``
Is VBZ
n't RB
it PRP
great JJ
just RB
to TO
be VB
alive JJ
? .
'' ''

I PRP
agreed VBD
. .
It PRP
is VBZ
. .

Great NNP
. .

Georgia-Pacific NNP
Corp. NNP
, ,
exceeding VBG
some DT
analysts NNS
' POS
expectations NNS
, ,
said VBD
third-quarter JJ
earnings NNS
rose VBD
56 CD
% NN
to TO
$ $
178 CD
million CD
, ,
or CC
$ $
2.03 CD
a DT
share NN
, ,
from IN
$ $
114 CD
million CD
, ,
or CC
$ $
1.19 CD
a DT
share NN
, ,
in IN
the DT
year-earlier JJ
period NN
. .

Sales NNS
increased VBN
10 CD
% NN
to TO
$ $
2.65 CD
billion CD
from IN
$ $
2.41 CD
billion CD
. .

Per-share JJ
earnings NNS
were VBD
enhanced VBN
by IN
the DT
company NN
's POS
share NN
buy-back NN
program NN
, ,
which WDT
reduced VBD
the DT
average JJ
shares NNS
outstanding JJ
to TO
87.5 CD
million CD
in IN
the DT
quarter NN
from IN
95.8 CD
million CD
in IN
the DT
same JJ
quarter NN
of IN
1988 CD
. .

With IN
strong JJ
prices NNS
in IN
the DT
company NN
's POS
two CD
major JJ
areas NNS
-- :
building NN
products NNS
as RB
well RB
as IN
pulp NN
and CC
paper NN
-- :
analysts NNS
had VBD
expected VBN
a DT
roaring VBG
quarter NN
. .

But CC
the DT
performance NN
exceeded VBD
some DT
estimates NNS
of IN
around IN
$ $
1.90 CD
a DT
share NN
. .

Fueling VBG
the DT
growth NN
, ,
among IN
other JJ
things NNS
, ,
were VBD
higher-than-expected JJ
prices NNS
for IN
certain JJ
building NN
products NNS
. .

One CD
reason NN
: :
efforts NNS
to TO
protect VB
the DT
spotted VBN
owl NN
led VBN
to TO
restrictions NNS
on IN
logging NN
in IN
the DT
Pacific NNP
Northwest NNP
, ,
constricting VBG
supply NN
and CC
forcing VBG
prices NNS
up RB
. .

Another DT
reason NN
: :
strikes NNS
, ,
both DT
at IN
Georgia-Pacific NNP
and CC
other JJ
lumber NN
companies NNS
also RB
cut VBP
supplies NNS
and CC
raised VBN
prices NNS
, ,
analysts NNS
said VBD
. .

For IN
the DT
nine CD
months NNS
, ,
Georgia-Pacific NNP
's POS
earnings NNS
increased VBN
49 CD
% NN
to TO
$ $
504 CD
million CD
, ,
or CC
$ $
5.58 CD
a DT
share NN
, ,
from IN
$ $
338 CD
million CD
, ,
or CC
$ $
3.41 CD
a DT
share NN
. .

Sales NNS
rose VBD
11 CD
% NN
to TO
$ $
7.73 CD
billion CD
from IN
$ $
6.94 CD
billion CD
. .

In IN
composite JJ
New NNP
York NNP
Stock NNP
Exchange NNP
Trading NN
, ,
Georgia-Pacific NNP
stock NN
rose VBD
$ $
1.25 CD
a DT
share NN
yesterday NN
to TO
close VB
at IN
$ $
58 CD
. .

The DT
House NNP
Public NNP
Works NNP
and CC
Transportation NNP
Committee NNP
approved VBD
a DT
bill NN
that WDT
would MD
give VB
the DT
Transportation NNP
Department NNP
power NN
to TO
block VB
airline NN
leveraged JJ
buy-outs NNS
, ,
despite IN
a DT
clear JJ
veto NN
threat NN
from IN
the DT
Bush NNP
administration NN
. .

The DT
23-5 JJ
vote NN
clears VBZ
the DT
way NN
for IN
consideration NN
on IN
the DT
House NNP
floor NN
next JJ
week NN
or CC
the DT
week NN
after RB
. .

Transportation NNP
Secretary NNP
Samuel NNP
Skinner NNP
, ,
in IN
a DT
letter NN
to TO
the DT
committee NN
, ,
warned VBD
that IN
he PRP
would MD
urge VB
President NNP
Bush NNP
to TO
veto VB
the DT
legislation NN
if IN
it PRP
passed VBD
Congress NNP
. .

The DT
Senate NNP
Commerce NNP
Committee NNP
already RB
has VBZ
approved VBN
similar JJ
legislation NN
. .

On IN
Monday NNP
, ,
a DT
letter NN
from IN
Mr. NNP
Skinner NNP
's POS
deputy NN
, ,
Elaine NNP
Chao NNP
, ,
said VBD
the DT
administration NN
opposed VBD
the DT
legislation NN
`` ``
in IN
its PRP$
present JJ
form NN
. .
'' ''

Some DT
of IN
the DT
bill NN
's POS
supporters NNS
had VBD
taken VBN
heart NN
from IN
the DT
fact NN
that IN
the DT
letter NN
was VBD
n't RB
signed VBN
by IN
Mr. NNP
Skinner NNP
and CC
that IN
it PRP
did VBD
n't RB
contain VB
a DT
veto NN
threat NN
. .

The DT
stepped-up JJ
administration NN
warnings NNS
annoyed VBD
some DT
lawmakers NNS
, ,
especially RB
senior JJ
Republicans NNPS
who WP
supported VBD
the DT
bill NN
because IN
they PRP
thought VBD
the DT
Transportation NNP
Department NNP
favored VBD
it PRP
. .

`` ``
We PRP
backed VBD
this DT
bill NN
because IN
we PRP
thought VBD
it PRP
would MD
help VB
Skinner NNP
, ,
'' ''
one CD
Republican NNP
said VBD
, ,
`` ``
and CC
now RB
we PRP
're VBP
out IN
there RB
dangling VBG
in IN
the DT
wind NN
. .
'' ''

A DT
few JJ
weeks NNS
ago RB
, ,
Mr. NNP
Skinner NNP
testified VBD
before IN
Congress NNP
that IN
it PRP
would MD
be VB
`` ``
cleaner JJR
, ,
more RBR
efficient JJ
'' ''
if IN
he PRP
had VBD
authority NN
to TO
block VB
buy-outs NNS
in IN
advance NN
. .

But CC
he PRP
never RB
took VBD
an DT
official JJ
position NN
on IN
the DT
bill NN
and CC
has VBZ
steadfastly RB
maintained VBN
that IN
he PRP
already RB
has VBZ
enough JJ
authority NN
to TO
deal VB
with IN
buy-outs NNS
. .

Under IN
the DT
committee NN
bill NN
, ,
the DT
Transportation NNP
secretary NN
would MD
have VB
30 CD
days NNS
, ,
and CC
an DT
additional JJ
20 CD
days NNS
if IN
needed VBN
, ,
to TO
review VB
any DT
proposed VBN
purchase NN
of IN
15 CD
% NN
or CC
more JJR
of IN
a DT
major JJ
U.S. NNP
airline NN
's POS
voting NN
stock NN
. .

The DT
secretary NN
would MD
be VB
required VBN
to TO
block VB
an DT
acquisition NN
if IN
he PRP
concluded VBD
that IN
it PRP
would MD
so RB
weaken VB
an DT
airline NN
financially RB
that IN
it PRP
would MD
hurt VB
safety VB
or CC
reduce VB
the DT
carrier NN
's POS
ability NN
to TO
compete VB
, ,
or CC
if IN
it PRP
gave VBD
control NN
to TO
a DT
foreign JJ
interest NN
. .

Although IN
the DT
legislation NN
would MD
apply VB
to TO
any DT
acquisition NN
of IN
a DT
major JJ
airline NN
, ,
it PRP
is VBZ
aimed VBN
at IN
transactions NNS
financed VBN
by IN
large JJ
amounts NNS
of IN
debt NN
. .

Supporters NNS
of IN
the DT
bill NN
are VBP
concerned VBN
an DT
airline NN
might MD
sacrifice VB
costly JJ
safety NN
measures NNS
in IN
order NN
to TO
repay VB
debt NN
. .

The DT
panel NN
's POS
action NN
occurs VBZ
in IN
a DT
politically RB
charged VBN
atmosphere NN
surrounding VBG
recent JJ
buy-out NN
proposals NNS
, ,
their PRP$
apparent JJ
collapse NN
and CC
the DT
volatile JJ
conditions NNS
in IN
the DT
stock NN
market NN
. .
`` ``
It PRP
became VBD
apparent JJ
in IN
hearings NNS
that IN
there EX
ought MD
to TO
be VB
regulation NN
of IN
leveraged JJ
buy-outs NNS
of IN
some DT
sort NN
, ,
'' ''
Rep. NNP
James NNP
Oberstar NNP
-LRB- (
D. NNP
, ,
Minn. NNP
-RRB- )
, ,
chairman NN
of IN
the DT
House NNP
Aviation NNP
Subcommittee NNP
, ,
said VBD
during IN
the DT
panel NN
's POS
deliberations NNS
. .

`` ``
I PRP
do VBP
n't RB
believe VB
in IN
the DT
airline NN
business NN
you PRP
can MD
be VB
totally RB
laissez-faire FW
because IN
of IN
the DT
high JJ
degree NN
of IN
public JJ
interest NN
'' ''
at IN
stake NN
. .

But CC
Mr. NNP
Skinner NNP
disagreed VBD
, ,
calling VBG
the DT
legislation NN
`` ``
a DT
retreat NN
from IN
the DT
policy NN
of IN
deregulaton NN
of IN
the DT
airline NN
industry NN
. .
'' ''

In IN
his PRP$
letter NN
to TO
Committee NNP
Chairman NNP
Glenn NNP
Anderson NNP
-LRB- (
D. NNP
, ,
Calif. NNP
-RRB- )
, ,
the DT
secretary NN
also RB
said VBD
the DT
bill NN
`` ``
would MD
be VB
at IN
odds NNS
with IN
the DT
administration NN
's POS
policies NNS
welcoming VBG
open JJ
foreign JJ
investment NN
and CC
market NN
allocation NN
of IN
resources NNS
. .
'' ''

Currently RB
, ,
the DT
Transportation NNP
Department NNP
does VBZ
n't RB
have VB
the DT
authority NN
to TO
block VB
a DT
takeover NN
in IN
advance NN
. .

However RB
, ,
if IN
the DT
secretary NN
concludes VBZ
that IN
a DT
transaction NN
has VBZ
made VBN
a DT
carrier NN
unfit JJ
to TO
operate VB
, ,
the DT
department NN
may MD
revoke VB
its PRP$
certificate NN
, ,
grounding VBG
the DT
airline NN
. .

Such JJ
authority NN
is VBZ
more JJR
than IN
adequate JJ
, ,
say VBP
opponents NNS
of IN
the DT
legislation NN
. .

But CC
supporters NNS
argue VBP
that IN
grounding VBG
an DT
airline NN
is VBZ
so RB
drastic JJ
that IN
the DT
department NN
would MD
hesitate VB
doing VBG
it PRP
. .

The DT
panel NN
rejected VBD
a DT
proposal NN
pushed VBN
by IN
AMR NNP
Corp. NNP
, ,
the DT
parent NN
of IN
American NNP
Airlines NNPS
, ,
to TO
allow VB
the DT
Transportation NNP
secretary NN
to TO
block VB
corporate JJ
raiders NNS
from IN
waging VBG
proxy NN
fights NNS
to TO
oust VB
boards NNS
that WDT
oppose VBP
a DT
leveraged JJ
buy-out NN
. .

It PRP
also RB
voted VBD
down JJ
proposals NNS
to TO
give VB
the DT
secretary NN
much RB
more JJR
discretion NN
on IN
whether IN
to TO
block VB
a DT
buy-out NN
and CC
to TO
require VB
the DT
department NN
to TO
consider VB
the DT
impact NN
of IN
a DT
buy-out NN
on IN
workers NNS
. .

London JJ
shares NNS
rallied VBD
to TO
post VB
strong JJ
gains NNS
after IN
initial JJ
fears NNS
evaporated VBD
that IN
the DT
California NNP
earthquake NN
would MD
depress VB
Wall NNP
Street NNP
prices NNS
. .

Tokyo NNP
stocks NNS
, ,
which WDT
rebounded VBD
strongly RB
Tuesday NNP
, ,
extended VBD
their PRP$
gains NNS
yesterday NN
, ,
but CC
most RBS
other JJ
Asian JJ
and CC
Pacific NNP
markets NNS
closed VBD
sharply RB
lower JJR
. .

In IN
London NNP
, ,
the DT
Financial NNP
Times-Stock NNP
Exchange NNP
100-share JJ
index NN
jumped VBD
34.6 CD
points NNS
to TO
close VB
at IN
its PRP$
intraday JJ
high NN
of IN
2170.1 CD
. .

The DT
index NN
was VBD
under IN
pressure NN
for IN
most RBS
of IN
the DT
morning NN
over IN
concerns NNS
that IN
the DT
effects NNS
of IN
Tuesday NNP
night NN
's POS
major JJ
earthquake NN
in IN
the DT
San NNP
Francisco NNP
area NN
would MD
undermine VB
the DT
U.S. NNP
market NN
. .

The DT
mood NN
changed VBN
after IN
dealers NNS
reappraised VBD
the DT
direct JJ
impact NN
of IN
the DT
disaster NN
on IN
shares NNS
and CC
Wall NNP
Street NNP
rebounded VBD
from IN
early JJ
losses NNS
. .
The DT
Financial NNP
Times NNP
30-share JJ
index NN
settled VBD
27.8 CD
points NNS
higher JJR
at IN
1758.5 CD
. .

Volume NN
was VBD
449.3 CD
million CD
shares NNS
, ,
the DT
slowest JJS
of IN
a DT
hectic JJ
week NN
, ,
compared VBN
with IN
643.4 CD
million CD
Tuesday NNP
. .

U.K. NNP
composite JJ
, ,
or CC
non-life JJ
, ,
insurers NNS
, ,
which WDT
some DT
equity NN
analysts NNS
said VBD
might MD
be VB
heavily RB
hit VBN
by IN
the DT
earthquake NN
disaster NN
, ,
helped VBD
support NN
the DT
London NNP
market NN
by IN
showing VBG
only RB
narrow JJ
losses NNS
in IN
early JJ
trading NN
. .

The DT
insurers NNS
' POS
relative JJ
resilience NN
gave VBD
the DT
market NN
time NN
to TO
reappraise VB
the DT
impact NN
of IN
the DT
California NNP
disaster NN
on IN
U.K. NNP
equities NNS
, ,
dealers NNS
said VBD
. .

Dealers NNS
said VBD
the DT
market NN
still RB
has VBZ
n't RB
shaken VBN
off IN
its PRP$
nervousness NN
after IN
its PRP$
bumpy JJ
ride NN
of IN
the DT
past JJ
several JJ
sessions NNS
, ,
caused VBN
by IN
interest-rate NN
increases NNS
last JJ
week NN
and CC
Wall NNP
Street NNP
's POS
6.9 CD
% NN
plunge NN
Friday NNP
. .

But CC
technical JJ
factors NNS
, ,
including VBG
modest JJ
gains NNS
in IN
the DT
value NN
of IN
the DT
pound NN
, ,
helped VBD
draw VB
buying VBG
back RB
into IN
the DT
market NN
and CC
reverse VB
losses NNS
posted VBD
a DT
day NN
earlier RBR
. .

Among IN
composite JJ
insurers NNS
, ,
General NNP
Accident NNP
rose VBD
10 CD
pence NN
to TO
# #
10.03 CD
-LRB- (
$ $
15.80 CD
-RRB- )
a DT
share NN
, ,
Guardian NNP
Royal NNP
climbed VBD
5 NN
to TO
217 CD
pence NN
, ,
Sun NNP
Alliance NNP
rose VBD
3 CD
to TO
290 CD
, ,
and CC
Royal NNP
Insurance NNP
jumped VBD
12 CD
to TO
450 CD
. .

Life NN
insurers NNS
fared VBD
similarly RB
, ,
with IN
Legal NNP
& CC
General NNP
advancing VBG
3 CD
to TO
344 CD
, ,
although IN
Prudential NNP
fell VBD
2 CD
to TO
184 CD
1\/2 CD
. .

Pearl NNP
Group NNP
rose VBD
5 NN
to TO
628 CD
, ,
and CC
Sun NNP
Life NNP
finished VBD
unchanged JJ
at IN
# #
10.98 CD
. .

Most JJS
banking NN
issues NNS
retreated VBD
after IN
a DT
sector NN
downgrade NN
by IN
Warburg NNP
Securities NNP
, ,
although IN
National NNP
Westminister NNP
showed VBD
strength NN
on IN
positive JJ
comments NNS
from IN
brokerage NN
firms NNS
about IN
its PRP$
long-term JJ
prospects NNS
. .

NatWest NNP
, ,
the DT
most RBS
actively RB
traded VBN
of IN
the DT
banks NNS
, ,
finished VBD
at IN
300 CD
, ,
up IN
1 CD
. .

B.A.T NNP
Industries NNPS
fell VBD
in IN
early JJ
dealings NNS
but CC
recovered VBD
to TO
finish VB
at IN
754 CD
, ,
up IN
5 NN
. .

Dealers NNS
said VBD
the DT
market NN
was VBD
nervous JJ
ahead RB
of IN
a DT
special JJ
B.A.T NNP
holders NNS
' POS
meeting NN
today NN
. .

The DT
session NN
is VBZ
to TO
consider VB
a DT
defensive JJ
plan NN
to TO
spin VB
off IN
assets NNS
to TO
fend VB
off IN
Sir NNP
James NNP
Goldsmith NNP
's POS
# #
13.4 CD
billion CD
bid NN
for IN
B.A.T NNP
. .
The DT
recent JJ
stock NN
market NN
drop NN
has VBZ
shaken VBN
confidence NN
in IN
the DT
plan NN
, ,
but CC
dealers NNS
said VBD
the DT
shares NNS
fell VBD
initially RB
on IN
questions NNS
about IN
whether IN
Mr. NNP
Goldsmith NNP
's POS
highly RB
leveraged JJ
bid NN
will MD
come VB
to TO
fruition NN
. .

Trading NN
was VBD
suspended VBN
in IN
WCRS NNP
Group NNP
, ,
a DT
U.K. NNP
advertising NN
concern NN
, ,
pending VBG
an DT
announcement NN
that IN
it PRP
is VBZ
buying VBG
the DT
remaining VBG
50 CD
% NN
of IN
France NNP
's POS
Carat NNP
Holding NNP
for IN
2.02 CD
billion CD
French JJ
francs NNS
-LRB- (
$ $
318.7 CD
million CD
-RRB- )
and CC
expanding VBG
commercial NN
and CC
equity NN
ties NNS
with IN
advertising NN
group NN
Eurocom NNP
. .

Merchant NN
banker NN
Morgan NNP
Grenfell NNP
climbed VBD
14 CD
to TO
406 CD
on IN
renewed VBN
takeover NN
speculation NN
. .

S.G. NNP
Warburg NNP
, ,
also RB
mentioned VBN
in IN
the DT
rumor NN
mill NN
, ,
jumped VBD
14 CD
at IN
to TO
414 CD
. .

Jaguar NNP
advanced VBD
19 CD
to TO
673 CD
as IN
traders NNS
contemplated VBD
a DT
potential JJ
battle NN
between IN
General NNP
Motors NNPS
and CC
Ford NNP
Motor NNP
for IN
control NN
of IN
the DT
U.K. NNP
luxury NN
auto NN
maker NN
. .

Tokyo NNP
's POS
Nikkei NNP
index NN
of IN
225 CD
issues NNS
rose VBD
111.48 CD
points NNS
, ,
or CC
0.32 CD
% NN
, ,
to TO
35107.56 CD
. .

The DT
index NN
gained VBD
527.39 CD
Tuesday NNP
. .

Volume NN
was VBD
estimated VBN
at IN
800 CD
million CD
shares NNS
, ,
compared VBN
with IN
678 CD
million CD
Tuesday NNP
. .

Declining VBG
issues NNS
outnumbered VBD
advancers NNS
505-455 JJ
, ,
with IN
172 CD
unchanged JJ
. .

The DT
Tokyo NNP
Stock NNP
Price NNP
Index NNP
of IN
all DT
issues NNS
listed VBN
in IN
the DT
first JJ
section NN
, ,
which WDT
gained VBD
41.76 CD
Tuesday NNP
, ,
was VBD
up IN
0.24 CD
points NNS
, ,
or CC
0.01 CD
% NN
, ,
at IN
2642.88 CD
. .

In IN
early JJ
trading NN
in IN
Tokyo NNP
Thursday NNP
, ,
the DT
Nikkei NNP
index NN
rose VBD
135.09 CD
points NNS
to TO
35242.65 CD
. .

On IN
Wednesday NNP
, ,
shares NNS
were VBD
pushed VBN
up IN
by IN
index-related JJ
buying NN
on IN
the DT
part NN
of IN
investment NN
trusts NNS
as RB
well RB
as IN
small JJ
orders NNS
from IN
individuals NNS
and CC
corporations NNS
, ,
traders NNS
said VBD
. .

Institutions NNS
, ,
meanwhile RB
, ,
stepped VBD
back RB
to TO
the DT
sidelines NNS
as IN
the DT
direction NN
of IN
U.S. NNP
interest NN
rates NNS
remained VBD
unclear JJ
. .

The DT
uncertainty NN
was VBD
multiplied VBN
by IN
the DT
persistent JJ
strength NN
of IN
the DT
dollar NN
, ,
traders NNS
said VBD
, ,
and CC
by IN
the DT
U.S. NNP
trade NN
deficit NN
, ,
which WDT
widened VBD
by IN
31 CD
% NN
in IN
August NNP
from IN
the DT
previous JJ
month NN
. .

Traders NNS
and CC
analysts NNS
said VBD
they PRP
did VBD
n't RB
see VB
any DT
effect NN
on IN
Tokyo NNP
stocks NNS
from IN
the DT
California NNP
earthquake NN
. .

The DT
impact NN
on IN
Japanese JJ
insurers NNS
and CC
property NN
owners NNS
with IN
interests NNS
in IN
the DT
San NNP
Francisco NNP
area NN
is VBZ
still RB
being VBG
assessed VBN
, ,
they PRP
said VBD
. .

Buying VBG
was VBD
scattered VBN
across IN
a DT
wide JJ
range NN
of IN
issues NNS
, ,
making VBG
the DT
session NN
fairly RB
characterless JJ
, ,
traders NNS
said VBD
. .

With IN
uncertainty NN
still RB
hanging VBG
over IN
interest NN
rates NNS
and CC
the DT
dollar NN
, ,
the DT
market NN
failed VBD
to TO
find VB
a DT
focus NN
that WDT
might MD
lead VB
to TO
further VB
investor NN
commitments NNS
, ,
they PRP
said VBD
. .

Some DT
traders NNS
said VBD
the DT
popularity NN
of IN
issues NNS
that WDT
gained VBD
yesterday NN
wo MD
n't RB
last JJ
long JJ
, ,
as IN
investors NNS
will MD
rotate VB
their PRP$
buying NN
choices NNS
over IN
the DT
short JJ
term NN
. .

Interest NN
rate-sensitive JJ
shares NNS
such JJ
as IN
steel NN
, ,
construction NN
and CC
electric JJ
utility NN
companies NNS
, ,
which WDT
rose VBD
early RB
in IN
the DT
week NN
, ,
saw VBD
their PRP$
advance NN
weaken VB
yesterday NN
. .

Traders NNS
said VBD
these DT
issues NNS
need VBP
large-volume JJ
buying NN
to TO
push VB
up IN
their PRP$
prices NNS
, ,
so RB
substantial JJ
gains NNS
are VBP
n't RB
likely JJ
unless IN
institutional JJ
investors NNS
participate VBP
. .

An DT
outstanding JJ
issue NN
in IN
yesterday NN
's POS
session NN
was VBD
Mitsubishi NNP
Rayon NNP
, ,
which WDT
surged VBD
95 CD
to TO
905 CD
yen NN
-LRB- (
$ $
6.34 CD
-RRB- )
a DT
share NN
. .

Its PRP$
popularity NN
was VBD
due JJ
to TO
speculation NN
about IN
the DT
strong JJ
earnings NNS
potential NN
of IN
a DT
new JJ
type NN
of IN
plastic NN
wrap NN
for IN
household NN
use NN
, ,
a DT
trader NN
at IN
County NNP
Natwest NNP
Securities NNP
Japan NNP
said VBD
. .

Some DT
laggard JJ
food NN
issues NNS
attracted VBD
bargain-hunters NNS
, ,
traders NNS
said VBD
. .

Kirin NNP
Brewery NNP
was VBD
up IN
100 CD
at IN
2,000 CD
, ,
and CC
Ajinomoto NNP
gained VBD
70 CD
to TO
2,840 CD
. .

Pharmaceuticals NNP
were VBD
mostly RB
higher JJR
, ,
with IN
SS NNP
Pharmaceutical NNP
gaining VBG
140 CD
to TO
1,980 CD
. .

Shares NNS
closed VBD
lower JJR
in IN
other JJ
major JJ
Asian JJ
and CC
Pacific NNP
markets NNS
, ,
including VBG
Sydney NNP
, ,
Hong NNP
Kong NNP
, ,
Singapore NNP
, ,
Taipei NNP
, ,
Wellington NNP
, ,
Seoul NNP
and CC
Manila NNP
. .

Most JJS
of IN
those DT
markets NNS
had VBD
rebounded VBN
the DT
day NN
before IN
from IN
Monday NNP
's POS
slide NN
. .

But CC
unlike IN
the DT
Tokyo NNP
exchange NN
, ,
they PRP
failed VBD
to TO
extend VB
the DT
rise NN
to TO
a DT
second JJ
session NN
. .

Elsewhere RB
, ,
prices NNS
surged VBD
for IN
a DT
second JJ
day NN
in IN
Frankfurt NNP
, ,
closed VBD
higher JJR
in IN
Zurich NNP
, ,
Stockholm NNP
and CC
Amsterdam NNP
and CC
were VBD
broadly RB
lower JJR
in IN
Milan NNP
, ,
Paris NNP
and CC
Brussels NNP
. .

South JJ
African JJ
gold NN
stocks NNS
ended VBD
marginally RB
firmer JJR
. .

In IN
Brussels NNP
, ,
it PRP
was VBD
the DT
first JJ
trading NN
day NN
for IN
most RBS
major JJ
shares NNS
since IN
stocks NNS
tumbled VBD
on IN
Wall NNP
Street NNP
Friday NNP
. .

Trading NN
had VBD
been VBN
impeded VBN
by IN
a DT
major JJ
computer NN
failure NN
that WDT
took VBD
place NN
before IN
the DT
start NN
of IN
Monday NNP
's POS
session NN
. .

Here RB
are VBP
price NN
trends NNS
on IN
the DT
world NN
's POS
major JJ
stock NN
markets NNS
, ,
as IN
calculated VBN
by IN
Morgan NNP
Stanley NNP
Capital NNP
International NNP
Perspective NNP
, ,
Geneva NNP
. .
To TO
make VB
them PRP
directly RB
comparable JJ
, ,
each DT
index NN
is VBZ
based VBN
on IN
the DT
close NN
of IN
1969 CD
equaling VBG
100 CD
. .

The DT
percentage NN
change NN
is VBZ
since IN
year-end NN
. .

Housing NN
construction NN
sank VBD
in IN
September NNP
to TO
its PRP$
lowest JJS
level NN
since IN
the DT
last JJ
recession NN
, ,
the DT
Commerce NNP
Department NNP
reported VBD
. .

Work NN
began VBD
on IN
homes NNS
and CC
apartments NNS
at IN
an DT
annual JJ
rate NN
of IN
1,263,000 CD
units NNS
last JJ
month NN
, ,
down RB
5.2 CD
% NN
from IN
August NNP
, ,
the DT
department NN
said VBD
. .

The DT
September NNP
decline NN
followed VBD
an DT
even RB
steeper JJR
drop NN
of IN
6.2 CD
% NN
in IN
August NNP
and CC
left VBN
housing NN
starts VBZ
at IN
their PRP$
weakest JJS
since IN
October NNP
1982 CD
, ,
when WRB
the DT
country NN
was VBD
nearing VBG
the DT
end NN
of IN
a DT
recession NN
. .

Originally RB
the DT
department NN
had VBD
reported VBN
the DT
August NNP
decline NN
as IN
5 NN
% NN
. .

The DT
numbers NNS
suggest VBP
that IN
the DT
housing NN
industry NN
is VBZ
still RB
suffering VBG
the DT
effects NNS
of IN
the DT
Federal NNP
Reserve NNP
's POS
battle NN
against IN
inflation NN
. .

The DT
industry NN
had VBD
shown VBN
signs NNS
of IN
recovery NN
this DT
summer NN
, ,
after IN
the DT
central JJ
bank NN
began VBD
to TO
relax VB
its PRP$
clamp NN
on IN
credit NN
, ,
allowing VBG
interest NN
rates NNS
to TO
drop VB
a DT
bit NN
after IN
pushing VBG
them PRP
up IN
for IN
a DT
year NN
. .

Sales NNS
of IN
new JJ
homes NNS
rose VBD
and CC
inventories NNS
of IN
houses NNS
, ,
which WDT
had VBD
been VBN
climbing VBG
, ,
dropped VBD
. .

But CC
last JJ
month NN
new JJ
construction NN
in IN
all DT
types NNS
of IN
homes NNS
waned VBD
, ,
from IN
single-family JJ
houses NNS
to TO
large JJ
apartment NN
complexes NNS
. .

`` ``
It PRP
's VBZ
pretty RB
much JJ
weak JJ
across IN
the DT
board NN
, ,
'' ''
said VBD
Martin NNP
Regalia NNP
, ,
chief JJ
economist NN
of IN
the DT
National NNP
Council NNP
of IN
Savings NNP
Institutions NNS
. .

Mr. NNP
Regalia NNP
said VBD
the DT
industry NN
may MD
be VB
reluctant JJ
to TO
step VB
up IN
building NN
at IN
the DT
moment NN
for IN
fear NN
the DT
inventories NNS
of IN
unsold JJ
homes NNS
will MD
increase VB
again RB
. .

Another DT
reason NN
for IN
the DT
weakness NN
, ,
he PRP
said VBD
, ,
may MD
be VB
that IN
mortgage NN
rates NNS
have VBP
hit VBN
a DT
plateau NN
since IN
they PRP
began VBD
edging VBG
down RB
after IN
a DT
peak NN
in IN
March NNP
. .

In IN
August NNP
, ,
rates VBZ
on IN
30-year JJ
fixed-rate JJ
mortgages NNS
started VBD
creeping VBG
up IN
a DT
bit NN
, ,
but CC
they PRP
inched VBD
down RB
again RB
through IN
September NNP
. .

`` ``
Rates NNS
have VBP
n't RB
really RB
peeled VBN
off IN
that DT
much NN
, ,
'' ''
Mr. NNP
Regalia NNP
said VBD
. .

`` ``
We PRP
've VBP
kind NN
of IN
settled VBN
now RB
into IN
an DT
interest-rate NN
environment NN
that WDT
's VBZ
fairly RB
high JJ
. .
'' ''

Work NN
was VBD
begun VBN
on IN
single JJ
family NN
homes NNS
-- :
the DT
core NN
of IN
the DT
housing NN
market NN
-- :
at IN
an DT
annual JJ
rate NN
of IN
971,000 CD
in IN
September NNP
, ,
a DT
drop NN
of IN
2.1 CD
% NN
from IN
the DT
previous JJ
month NN
. .

That DT
followed VBD
a DT
3.3 CD
% NN
decline NN
in IN
August NNP
. .

Construction NN
of IN
apartments NNS
and CC
other JJ
multi-family JJ
dwellings NNS
slipped VBD
2.2 CD
% NN
to TO
an DT
annual JJ
rate NN
of IN
1,022,000 CD
following VBG
a DT
3.5 CD
% NN
decline NN
in IN
August NNP
. .

The DT
number NN
of IN
building NN
permits VBZ
issued VBN
for IN
future NN
construction NN
dropped VBD
2.4 CD
% NN
to TO
a DT
1,296,000 CD
annual JJ
rate NN
after IN
rising VBG
3.7 CD
% NN
in IN
August NNP
. .

All DT
the DT
numbers NNS
were VBD
adjusted VBN
for IN
normal JJ
seasonal JJ
variations NNS
in IN
building NN
activity NN
. .
The DT
housing NN
starts VBZ
numbers NNS
, ,
however RB
, ,
are VBP
one CD
of IN
the DT
least JJS
precise JJ
of IN
the DT
government NN
's POS
economic JJ
indicators NNS
and CC
are VBP
often RB
revised VBN
significantly RB
as IN
more JJR
information NN
is VBZ
collected VBN
. .

Shearson NNP
Lehman NNP
Hutton NNP
Holdings NNP
Inc. NNP
posted VBD
a DT
sharp JJ
third-quarter JJ
turnaround NN
from IN
a DT
year NN
earlier RBR
, ,
but CC
net JJ
income NN
would MD
have VB
dropped VBN
from IN
the DT
second JJ
quarter NN
without IN
a DT
$ $
37 CD
million CD
after-tax JJ
gain NN
. .

The DT
securities NNS
firm NN
posted VBD
third-quarter JJ
net NN
of IN
$ $
66 CD
million CD
, ,
or CC
64 CD
cents NNS
a DT
share NN
, ,
compared VBN
with IN
a DT
restated VBN
year-earlier JJ
loss NN
of IN
$ $
3 CD
million CD
, ,
or CC
11 CD
cents NNS
a DT
share NN
. .

Revenue NN
climbed VBD
25 CD
% NN
to TO
$ $
3.3 CD
billion CD
from IN
$ $
2.6 CD
billion CD
. .

The DT
latest JJS
period NN
included VBD
the DT
gain NN
, ,
which WDT
was VBD
$ $
77 CD
million CD
before IN
tax NN
, ,
from IN
the DT
previously RB
announced VBN
sale NN
of IN
the DT
institutional JJ
money NN
management NN
business NN
of IN
Lehman NNP
Management NNP
Co NNP
. .

The DT
1988 CD
period NN
was VBD
restated VBN
from IN
net JJ
income NN
of IN
$ $
8 CD
million CD
to TO
correct VB
an DT
overstatement NN
in IN
the DT
company NN
's POS
Boston NNP
Co. NNP
subsidiary NN
. .

In IN
the DT
1989 CD
second JJ
quarter NN
, ,
Shearson NNP
had VBD
net JJ
income NN
of IN
$ $
55 NN
million CD
, ,
or CC
54 CD
cents NNS
a DT
share NN
. .

An DT
average JJ
102.5 CD
million CD
common JJ
shares NNS
were VBD
outstanding JJ
in IN
the DT
latest JJS
quarter NN
, ,
up IN
from IN
87.1 CD
million CD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
yesterday NN
, ,
Shearson NNP
shares NNS
lost VBD
37.5 CD
cents NNS
to TO
$ $
18.125 CD
. .

The DT
company NN
said VBD
the DT
improved VBN
performance NN
from IN
a DT
year NN
ago RB
reflects VBZ
higher JJR
commissions NNS
and CC
revenue NN
from IN
marketmaking NN
and CC
trading NN
for IN
its PRP$
own JJ
account NN
. .

Commission NN
revenue NN
was VBD
$ $
522 CD
million CD
, ,
up IN
49 CD
% NN
. .

But CC
industrywide JJ
trading NN
activity NN
slowed VBD
in IN
September NNP
as IN
institutional JJ
investors NNS
turned VBD
cautious JJ
and CC
individuals NNS
continued VBD
to TO
shy VB
away RB
from IN
the DT
market NN
. .

Investment NN
banking NN
revenue NN
fell VBD
32 CD
% NN
to TO
$ $
205 CD
million CD
, ,
in IN
part NN
reflecting VBG
the DT
continued VBN
slowdown NN
of IN
the DT
underwriting NN
business NN
. .

In IN
the DT
nine CD
months NNS
, ,
net NN
fell VBD
3 CD
% NN
to TO
$ $
106 CD
million CD
, ,
or CC
98 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
110 CD
million CD
, ,
or CC
$ $
1.05 CD
a DT
share NN
. .

Revenue NN
advanced VBD
26 CD
% NN
to TO
$ $
9.6 CD
billion CD
from IN
$ $
7.6 CD
billion CD
. .

Two CD
major JJ
drug NN
companies NNS
posted VBD
strong JJ
third-quarter JJ
earnings NNS
, ,
in IN
line NN
with IN
profits NNS
already RB
reported VBN
by IN
industry NN
leaders NNS
and CC
analysts NNS
' POS
expectations NNS
. .

But CC
Pfizer NNP
Inc. NNP
, ,
based VBN
in IN
New NNP
York NNP
, ,
reported VBD
flat JJ
earnings NNS
. .

Schering-Plough NNP
Corp. NNP
, ,
based VBN
in IN
Madison NNP
, ,
N.J. NNP
, ,
reported VBD
a DT
21 CD
% NN
rise NN
in IN
earnings NNS
as IN
American NNP
Home NNP
Products NNP
Corp. NNP
of IN
New NNP
York NNP
posted VBD
an DT
11 CD
% NN
increase NN
in IN
net NN
. .

American NNP
Home NNP
Products NNPS

American NNP
Home NNP
Products NNPS
said VBD
sales NNS
and CC
earnings NNS
for IN
the DT
third JJ
quarter NN
and CC
nine CD
months NNS
were VBD
at IN
record NN
levels NNS
. .

Sales NNS
for IN
the DT
third JJ
quarter NN
increased VBN
6.5 CD
% NN
to TO
$ $
1.51 CD
billion CD
from IN
$ $
1.42 CD
billion CD
. .
Sales NNS
of IN
health-care NN
products NNS
increased VBN
6 CD
% NN
in IN
the DT
third JJ
quarter NN
, ,
based VBN
in IN
part NN
on IN
strong JJ
sales NNS
of IN
prescription NN
drugs NNS
such JJ
as IN
Premarin NNP
, ,
an DT
estrogen-replacement NN
drug NN
, ,
and CC
sales NNS
of IN
the DT
company NN
's POS
infant NN
formula NN
. .

American NNP
Home NNP
Products NNPS
said VBD
net JJ
income NN
benefited VBD
from IN
a DT
`` ``
lower JJR
effective JJ
tax NN
rate NN
, ,
'' ''
reflecting VBG
a DT
reduction NN
of IN
foreign JJ
tax NN
rates NNS
, ,
and CC
additional JJ
operations NNS
in IN
Puerto NNP
Rico NNP
. .

Net JJ
also RB
was VBD
aided VBN
by IN
a DT
gain NN
on IN
the DT
sale NN
of IN
the DT
company NN
's POS
equity NN
interests NNS
in IN
South NNP
Africa NNP
effective JJ
Sept. NNP
1 CD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
yesterday NN
, ,
American NNP
Home NNP
Products NNPS
closed VBD
at IN
$ $
102.25 CD
a DT
share NN
, ,
down RB
75 CD
cents NNS
. .

Pfizer NNP

Pfizer NNP
said VBD
third-quarter JJ
sales NNS
increased VBN
4 CD
% NN
to TO
$ $
1.44 CD
billion CD
from IN
$ $
1.38 CD
billion CD
. .

The DT
company NN
said VBD
net JJ
income NN
was VBD
flat JJ
because IN
of IN
investment NN
in IN
research NN
and CC
development NN
and CC
costs NNS
related VBN
to TO
launches NNS
of IN
several JJ
products NNS
. .

The DT
company NN
said VBD
the DT
dollar NN
's POS
continued VBD
strengthening VBG
reduced VBN
world-wide JJ
sales NNS
growth NN
by IN
three CD
percentage NN
points NNS
. .

Pfizer NNP
posted VBD
its PRP$
largest JJS
gains NNS
in IN
healthcare NN
sales NNS
, ,
up IN
3 CD
% NN
, ,
and CC
consumer NN
products NNS
, ,
up IN
23 CD
% NN
. .

Sales NNS
by IN
the DT
specialty NN
chemicals NNS
and CC
materials NNS
science NN
segments NNS
were VBD
flat JJ
, ,
and CC
sales NNS
by IN
the DT
agriculture NN
segment NN
declined VBD
5 NN
% NN
. .

In IN
the DT
health-care NN
segment NN
, ,
pharmaceutical JJ
sales NNS
increased VBN
4 CD
% NN
and CC
sales NNS
of IN
hospital NN
products NNS
increased VBN
1 CD
% NN
. .

During IN
the DT
quarter NN
, ,
Pfizer NNP
received VBD
federal JJ
approval NN
of IN
Procardia NNP
XL NNP
, ,
a DT
calcium NN
channel NN
blocker NN
approved VBD
for IN
both DT
angina NN
and CC
hypertension NN
, ,
and CC
Monorail NNP
Piccolino NNP
, ,
used VBN
to TO
open VB
obstructed VBN
coronary JJ
arteries NNS
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
yesterday NN
, ,
Pfizer NNP
closed VBD
at IN
$ $
67.75 CD
a DT
share NN
, ,
up IN
75 CD
cents NNS
. .

Schering-Plough NNP

Schering-Plough NNP
said VBD
sales NNS
gained VBD
2.7 CD
% NN
to TO
$ $
743.7 CD
million CD
from IN
$ $
724.4 CD
million CD
. .

In IN
the DT
period NN
, ,
the DT
company NN
completed VBD
the DT
sale NN
of IN
its PRP$
European JJ
cosmetics NNS
businesses NNS
, ,
sold VBD
a DT
majority NN
interest NN
in IN
its PRP$
Brazilian JJ
affiliate NN
, ,
and CC
announced VBD
the DT
reorganization NN
of IN
its PRP$
over-the-counter JJ
drug NN
businesses NNS
into IN
a DT
new JJ
unit NN
, ,
Schering-Plough NNP
Health NNP
Care NNP
Products NNPS
. .

These DT
actions NNS
did VBD
n't RB
affect VB
results NNS
because IN
the DT
gain NN
on IN
the DT
sale NN
of IN
the DT
European JJ
cosmetics NNS
businesses NNS
was VBD
offset VBN
by IN
provisions NNS
relating VBG
to TO
the DT
Brazil NNP
divestiture NN
and CC
drug NN
restructuring NN
. .

U.S. NNP
pharmaceutical JJ
sales NNS
rose VBD
15 CD
% NN
, ,
led VBN
by IN
allergy NN
, ,
asthma NN
and CC
cold JJ
products NNS
; :
dermatological JJ
products NNS
; :
anti-infectives NNS
and CC
anti-cancer JJ
products NNS
; :
and CC
cardiovascular JJ
products NNS
. .

World-wide JJ
consumer NN
product NN
sales NNS
declined VBD
12 CD
% NN
, ,
primarily RB
because IN
of IN
the DT
European JJ
cosmetics NNS
sale NN
. .

Significantly RB
lower JJR
sales NNS
of IN
` ``
Stay VB
Trim NN
' ''
diet NN
aids NNS
also RB
were VBD
a DT
factor NN
in IN
the DT
drop NN
. .

The DT
Maybelline NNP
beauty NN
product NN
line NN
had VBD
higher JJR
sales NNS
following VBG
a DT
sluggish JJ
first JJ
half NN
. .

In IN
Big NNP
Board NNP
composite JJ
trading NN
, ,
Schering-Plough NNP
shares NNS
fell VBD
75 CD
cents NNS
to TO
close VB
at IN
$ $
74.125 CD
. .

Swedish JJ
auto NN
and CC
aerospace NN
concern NN
Saab-Scania NNP
AB NNP
said VBD
it PRP
received VBD
a DT
250 CD
million CD
krona NN
-LRB- (
$ $
39 CD
million CD
-RRB- )
order NN
from IN
Swiss NNP
Crossair NNP
, ,
one CD
of IN
Europe NNP
's POS
leading VBG
regional JJ
air NN
companies NNS
, ,
for IN
five CD
Saab NNP
340B CD
turboprop NN
commuter NN
aircraft NN
. .

It PRP
is VBZ
quite RB
unfortunate JJ
that IN
you PRP
failed VBD
so RB
miserably RB
in IN
reporting VBG
the DT
Hurricane NNP
Hugo NNP
disaster NN
. .

Your PRP$
Sept. NNP
27 CD
page-one JJ
article NN
`` ``
Charleston NNP
Lost JJ
Quite RB
a DT
Lot NN
to TO
Hugo NNP
, ,
Especially RB
Gentility NN
'' ''
leaves VBZ
the DT
impression NN
that IN
the DT
storm NN
was VBD
little RB
more JJR
than IN
an DT
inconvenience NN
. .

The DT
damage NN
reported VBD
focused VBN
on IN
a DT
select JJ
few JJ
who WP
owned VBD
irreplaceable JJ
historic JJ
homes NNS
on IN
the DT
Battery NNP
. .

Not RB
mentioned VBN
were VBD
the DT
50,000 CD
people NNS
rendered VBD
homeless JJ
, ,
and CC
the DT
more JJR
than IN
200,000 CD
out IN
of IN
work NN
for IN
an DT
indeterminable JJ
period NN
; :
the DT
$ $
1 CD
billion-plus JJ
in IN
losses NNS
to TO
homes NNS
and CC
personal JJ
property NN
on IN
the DT
barrier NN
islands NNS
; :
the DT
near IN
- :
and CC
long-term JJ
impact NN
on IN
the DT
state NN
's POS
largest JJS
industry NN
, ,
tourism NN
, ,
not RB
to TO
mention VB
the DT
human JJ
suffering NN
. .

In IN
centering VBG
on IN
the DT
disruption NN
of IN
a DT
few JJ
proud JJ
local JJ
customs NNS
such JJ
as IN
the DT
historic JJ
homes NNS
tour NN
and CC
the DT
damage NN
to TO
the DT
antiquities NNS
, ,
your PRP$
reporter NN
served VBN
to TO
only RB
perpetuate VB
an DT
outdated JJ
and CC
stereotypically RB
provincial JJ
view NN
of IN
this DT
otherwise RB
thriving VBG
port NN
city NN
. .

The DT
damage NN
will MD
undoubtedly RB
prove VB
to TO
be VB
one CD
of IN
the DT
epic NN
human JJ
and CC
economic JJ
disasters NNS
of IN
the DT
decade NN
in IN
this DT
country NN
. .

David NNP
M. NNP
Carroll NNP

Columbia NNP
, ,
S.C NNP
. .

Your PRP$
story NN
was VBD
tasteless JJ
and CC
insensitive JJ
. .

Depicting VBG
the DT
people NNS
of IN
a DT
traumatized VBN
city NN
reeling VBG
from IN
a DT
disaster NN
of IN
unprecedented JJ
proportions NNS
was VBD
at IN
the DT
very RB
best JJS
ludicrous JJ
under IN
the DT
circumstances NNS
. .

Your PRP$
narrow JJ
focus NN
appears VBZ
to TO
be VB
a DT
contrived VBN
attempt NN
to TO
show VB
the DT
people NNS
of IN
that DT
historic JJ
city NN
to TO
be VB
doddering JJ
fools NNS
. .

You PRP
had VBD
to TO
have VB
been VBN
blind JJ
not RB
to TO
see VB
the DT
scenario NN
there RB
for IN
what WP
it PRP
was VBD
and CC
is VBZ
and CC
will MD
continue VB
to TO
be VB
for IN
months NNS
and CC
even JJ
years NNS
-- :
a DT
part NN
of IN
South NNP
Carolina NNP
that WDT
has VBZ
sustained VBN
a DT
blow NN
that IN
the DT
Red NNP
Cross NNP
expects VBZ
will MD
cost VB
that DT
organization NN
alone RB
some DT
$ $
38 CD
million CD
. .

William NNP
C. NNP
Barksdale NNP
Jr NNP
. .

Columbia NNP
, ,
S.C NNP
. .

Charleston NNP
is VBZ
historic JJ
and CC
aristocratic JJ
, ,
as IN
your PRP$
reporter NN
said VBD
, ,
but CC
not RB
haughty JJ
, ,
as IN
he PRP
suggested VBD
. .

Charlestonians NNS
are VBP
instead RB
indomitable JJ
and CC
have VBP
contributed VBN
mightily RB
to TO
the DT
culture NN
and CC
history NN
of IN
our PRP$
country NN
for IN
more JJR
than IN
300 CD
years NNS
. .

I PRP
suggest VBP
your PRP$
reporter NN
see VB
Charleston NNP
next JJ
spring NN
in IN
its PRP$
full JJ
glory NN
. .

William NNP
C. NNP
Stuart NNP
III NNP

Silver NNP
Spring NNP
, ,
Md NNP
. .

Affiliated NNP
Bankshares NNPS
of IN
Colorado NNP
Inc. NNP
said VBD
it PRP
agreed VBD
to TO
sell VB
its PRP$
10 CD
% NN
interest NN
in IN
Rocky NNP
Mountain NNP
Bankcard NNP
Systems NNPS
for IN
$ $
18.5 CD
million CD
to TO
Colorado NNP
National NNP
Bank NNP
of IN
Denver NNP
and CC
Central NNP
Bank NNP
of IN
Denver NNP
. .

Colorado NNP
National NNP
is VBZ
a DT
unit NN
of IN
Colorado NNP
National NNP
Bankshares NNPS
Inc. NNP
and CC
Central NNP
is VBZ
a DT
unit NN
of IN
First NNP
Bank NNP
System NNP
of IN
Minneapolis NNP
. .

Affiliated NNP
said VBD
it PRP
expects VBZ
to TO
record VB
a DT
pretax JJ
gain NN
of IN
about RB
$ $
18.5 CD
million CD
from IN
the DT
sale NN
of IN
the DT
credit-card NN
business NN
, ,
which WDT
should MD
more JJR
than IN
offset VB
any DT
reduction NN
in IN
the DT
carrying VBG
value NN
of IN
real JJ
estate NN
and CC
real-estate NN
loans NNS
on IN
its PRP$
books NNS
. .

The DT
U.S. NNP
Export-Import NNP
Bank NNP
tentatively RB
decided VBD
to TO
guarantee VB
commercial JJ
bank NN
financing NN
for IN
the DT
purchase NN
of IN
two CD
Boeing NNP
Co. NNP
767 CD
airliners NNS
by IN
Avianca NNP
, ,
Colombia NNP
's POS
international JJ
airline NN
, ,
at IN
a DT
cost NN
of IN
about RB
$ $
150 CD
million CD
. .

The DT
loan NN
guarantee NN
would MD
amount VB
to TO
about RB
$ $
127.5 CD
million CD
, ,
or CC
85 CD
% NN
of IN
the DT
cost NN
of IN
the DT
aircraft NN
. .

Because IN
of IN
the DT
size NN
of IN
the DT
proposed VBN
loan NN
guarantee NN
, ,
the DT
Ex-Im NNP
Bank NNP
's POS
preliminary JJ
commitment NN
is VBZ
subject NN
to TO
review VB
by IN
the DT
House NNP
and CC
Senate NNP
Banking NNP
committees NNS
. .
Ex-Im NNP
Bank NNP
officials NNS
said VBD
this DT
review NN
process NN
currently RB
is VBZ
under IN
way NN
. .

Sebastian NNP
Guzman NNP
Cabrera NNP
took VBD
over IN
the DT
oil NN
workers NNS
union NN
, ,
Mexico NNP
's POS
most RBS
powerful JJ
labor NN
organization NN
, ,
only RB
last JJ
January NNP
. .

But CC
even RB
in IN
that DT
short JJ
time NN
Mr. NNP
Guzman NNP
Cabrera NNP
has VBZ
become VBN
as IN
controversial JJ
in IN
his PRP$
own JJ
way NN
as IN
his PRP$
deposed VBN
predecessor NN
, ,
Joaquin NNP
Hernandez NNP
Galicia NNP
, ,
known VBN
as IN
La NNP
Quina NNP
. .

President NNP
Carlos NNP
Salinas NNP
de FW
Gortari NNP
used VBD
the DT
army NN
to TO
oust VB
La NNP
Quina NNP
, ,
who WP
reigned VBD
for IN
28 CD
years NNS
over IN
a DT
graft-riddled JJ
empire NN
that WDT
made VBD
state-run JJ
Petroleos NNP
Mexicanos NNP
, ,
or CC
Pemex NNP
, ,
one CD
of IN
the DT
world NN
's POS
most RBS
inefficient JJ
oil NN
companies NNS
. .

Now RB
, ,
Mr. NNP
Guzman NNP
Cabrera NNP
is VBZ
facing VBG
accusations NNS
that IN
he PRP
's VBZ
as IN
much JJ
a DT
company NN
man NN
as IN
La NNP
Quina NNP
was VBD
a DT
crook NN
. .

In IN
recent JJ
contract NN
negotiations NNS
with IN
Pemex NNP
management NN
, ,
Mr. NNP
Guzman NNP
Cabrera NNP
accepted VBD
major JJ
concessions NNS
that WDT
greatly RB
curtail VB
the DT
union NN
's POS
role NN
in IN
subcontracting NN
, ,
long JJ
a DT
source NN
of IN
millions NNS
of IN
dollars NNS
in IN
illicit JJ
earnings NNS
. .

And CC
with IN
the DT
quiet JJ
pragmatism NN
of IN
Mr. NNP
Guzman NNP
Cabrera NNP
replacing VBG
the DT
prickly JJ
populism NN
of IN
La NNP
Quina NNP
, ,
government NN
technocrats NNS
have VBP
been VBN
given VBN
a DT
free JJ
hand NN
to TO
open VB
the DT
petrochemical NN
sector NN
to TO
wider RBR
private JJ
and CC
foreign JJ
investment NN
. .

Mr. NNP
Guzman NNP
Cabrera NNP
's POS
new JJ
order NN
has VBZ
n't RB
arrived VBN
without IN
resistance NN
. .

Brawls NNS
between IN
union NN
factions NNS
still RB
erupt VBP
at IN
Pemex NNP
installations NNS
. .

Leftist JJ
leader NN
Cuauhtemoc NNP
Cardenas NNP
publicly RB
questioned VBD
Mr. NNP
Guzman NNP
Cabrera NNP
's POS
`` ``
moral JJ
quality NN
, ,
'' ''
suggesting VBG
he PRP
is VBZ
part NN
of IN
a DT
conspiracy NN
to TO
turn VB
over IN
the DT
country NN
's POS
oil NN
, ,
a DT
symbol NN
of IN
Mexican JJ
nationalism NN
, ,
to TO
foreigners NNS
. .

The DT
61-year-old NNP
Mr. NNP
Guzman NNP
Cabrera NNP
takes VBZ
such JJ
criticisms NNS
in IN
stride NN
. .

`` ``
This DT
is VBZ
n't RB
a DT
new JJ
kind NN
of IN
union NN
leadership NN
, ,
it PRP
's VBZ
a DT
new JJ
Mexico NNP
. .

We PRP
're VBP
no RB
longer RB
afraid JJ
of IN
associating VBG
with IN
private JJ
or CC
foreign JJ
capital NN
, ,
'' ''
he PRP
says VBZ
. .

Pemex NNP
, ,
which WDT
produces VBZ
40 CD
% NN
of IN
government NN
revenue NN
, ,
desperately RB
needs VBZ
new JJ
investment NN
. .

Since IN
world NN
oil NN
prices NNS
collapsed VBD
in IN
1982 CD
, ,
the DT
government NN
has VBZ
siphoned VBN
Pemex NNP
's POS
coffers NNS
to TO
make VB
payments NNS
on IN
Mexico NNP
's POS
$ $
97 CD
billion CD
foreign JJ
debt NN
. .

Little JJ
money NN
has VBZ
been VBN
returned VBN
to TO
upgrade VB
Pemex NNP
's POS
aging VBG
facilities NNS
. .

While IN
the DT
government NN
drains NNS
Pemex NNP
from IN
above IN
, ,
the DT
union NN
has VBZ
drained VBN
it PRP
from IN
below RB
. .

A DT
bloated JJ
payroll NN
and CC
pervasive JJ
graft NN
caused VBN
Pemex NNP
's POS
operating VBG
costs NNS
to TO
balloon VB
to TO
95 CD
cents NNS
of IN
each DT
$ $
1 CD
in IN
sales NNS
, ,
far RB
above IN
the DT
industry NN
norm NN
. .

The DT
declines NNS
in IN
investment NN
and CC
efficiency NN
explain VB
in IN
part NN
why WRB
Mexico NNP
has VBZ
been VBN
importing VBG
gasoline NN
this DT
year NN
. .

Some DT
projections NNS
show VBP
Mexico NNP
importing VBG
crude NN
by IN
the DT
end NN
of IN
the DT
century NN
, ,
barring VBG
an DT
overhaul NN
of IN
operations NNS
. .

`` ``
Whatever WDT
you PRP
tried VBD
to TO
change VB
, ,
whether IN
it PRP
was VBD
cutting VBG
costs NNS
or CC
attracting VBG
new JJ
partners NNS
, ,
the DT
big JJ
obstacle NN
was VBD
the DT
old JJ
union NN
leadership NN
, ,
'' ''
says VBZ
oil NN
consultant NN
George NNP
Baker NNP
. .

Enter VB
Mr. NNP
Guzman NNP
Cabrera NNP
, ,
who WP
has VBZ
a DT
clear JJ
understanding NN
of IN
where WRB
union NN
leaders NNS
fit VBP
in IN
the DT
pro-enterprise JJ
regime NN
of IN
President NNP
Salinas NNP
. .

`` ``
I PRP
'm VBP
the DT
secretary-general NN
, ,
if IN
there EX
is VBZ
one CD
, ,
'' ''
he PRP
says VBZ
, ,
greeting VBG
a DT
visitor NN
to TO
his PRP$
office NN
. .

Beginning VBG
as IN
a DT
laborer NN
in IN
a DT
refinery NN
, ,
Mr. NNP
Guzman NNP
Cabrera NNP
put VB
in IN
more JJR
than IN
40 CD
years NNS
at IN
Pemex NNP
before IN
being VBG
pushed VBN
into IN
retirement NN
by IN
La NNP
Quina NNP
after IN
a DT
dispute NN
two CD
years NNS
ago RB
. .

Though IN
he PRP
also RB
long JJ
benefited VBD
from IN
the DT
system NN
built VBN
by IN
La NNP
Quina NNP
, ,
Mr. NNP
Guzman NNP
Cabrera NNP
says VBZ
union NN
perks NNS
had VBN
simply RB
gotten VBN
out IN
of IN
hand NN
. .

They PRP
are VBP
`` ``
at IN
the DT
base NN
of IN
all DT
of IN
the DT
problems NNS
of IN
corruption NN
, ,
'' ''
he PRP
says VBZ
. .

Thus RB
, ,
in IN
recent JJ
contract NN
negotiations NNS
, ,
Mr. NNP
Guzman NNP
Cabrera NNP
gave VBD
up IN
the DT
union NN
's POS
right NN
to TO
assign VB
40 CD
% NN
of IN
all DT
of IN
Pemex NNP
's POS
outside IN
contracts NNS
-- :
an DT
enormous JJ
source NN
of IN
kickbacks NNS
. .

The DT
union NN
also RB
ceded VBD
the DT
2 CD
% NN
commission NN
it PRP
had VBD
received VBN
on IN
all DT
Pemex NNP
maintenance NN
contracts NNS
. .

-LRB- (
The DT
union NN
will MD
keep VB
a DT
2 CD
% NN
commission NN
on IN
construction NN
projects NNS
. .
-RRB- )

The DT
new JJ
contract NN
also RB
eliminates VBZ
the DT
$ $
15 CD
monthly JJ
coupon NN
, ,
good JJ
only RB
at IN
union-owned JJ
grocery NN
stores NNS
, ,
that WDT
was VBD
part NN
of IN
the DT
salary NN
of IN
every DT
worker NN
, ,
from IN
roughneck NN
to TO
chief JJ
executive NN
. .

About IN
9,800 CD
technical JJ
workers NNS
, ,
notably RB
chemists NNS
and CC
lawyers NNS
, ,
were VBD
switched VBN
to TO
non-union JJ
status NN
. .

Also RB
, ,
because IN
of IN
its PRP$
reduced VBN
capital NN
budget NN
, ,
Pemex NNP
has VBZ
phased VBN
out IN
about IN
50,000 CD
transitory JJ
construction NN
workers NNS
, ,
reducing VBG
the DT
work NN
force NN
to TO
about IN
140,000 CD
, ,
the DT
union NN
leader NN
says NNS
. .

Mr. NNP
Guzman NNP
Cabrera NNP
says VBZ
the DT
union NN
's POS
sacrifices NNS
will MD
be VB
offset VB
by IN
a DT
wage NN
and CC
benefit NN
package NN
that IN
amounts NNS
to TO
a DT
22 CD
% NN
increase NN
in IN
compensation NN
. .

But CC
Pemex NNP
managers NNS
are VBP
the DT
ones NNS
most RBS
thrilled VBN
by IN
the DT
contract NN
. .

`` ``
We PRP
are VBP
retaking VBG
the DT
instruments NNS
of IN
administration NN
, ,
'' ''
says VBZ
Raul NNP
Robles NNP
, ,
a DT
Pemex NNP
subdirector NN
. .

Pemex NNP
officials NNS
would MD
n't RB
say VB
how WRB
much JJ
money NN
the DT
new JJ
contract NN
would MD
save VB
the DT
company NN
, ,
but CC
one CD
previous JJ
government NN
estimate NN
pegged VBD
savings NNS
at IN
around IN
$ $
500 CD
million CD
a DT
year NN
. .

Pemex NNP
's POS
customers NNS
also RB
are VBP
pleased VBN
with IN
the DT
company NN
's POS
new JJ
spirit NN
. .

Grupo NNP
Desc NNP
, ,
a DT
big JJ
conglomerate NN
, ,
has VBZ
long RB
depended VBN
on IN
Pemex NNP
petrochemicals NNS
to TO
produce VB
plastic NN
packing VBG
material NN
. .

But CC
when WRB
the DT
Pemex NNP
plant NN
shut VBN
down RB
for IN
an DT
annual JJ
overhaul NN
, ,
it PRP
would MD
never RB
give VB
notice NN
to TO
its PRP$
customers NNS
. .

`` ``
The DT
capriciousness NN
would MD
completely RB
disrupt VB
our PRP$
operations NNS
, ,
'' ''
says VBZ
Ernesto NNP
Vega NNP
Velasco NNP
, ,
Desc NNP
's POS
finance NN
director NN
. .

This DT
year NN
, ,
for IN
the DT
first JJ
time NN
, ,
Desc NNP
and CC
other JJ
customers NNS
were VBD
consulted VBN
well RB
in IN
advance NN
of IN
the DT
Pemex NNP
plant NN
's POS
shutdown NN
to TO
ensure VB
minimal JJ
inconvenience NN
. .

Taming VBG
the DT
union NN
complements VBZ
previous JJ
moves NNS
by IN
the DT
government NN
to TO
attract VB
private JJ
investment NN
in IN
petrochemicals NNS
, ,
which WDT
Mexico NNP
has VBZ
been VBN
forced VBN
to TO
import VB
in IN
large JJ
quantities NNS
in IN
recent JJ
years NNS
. .

In IN
May NNP
, ,
the DT
government NN
unveiled VBD
new JJ
foreign JJ
investment NN
regulations NNS
that WDT
create VBP
special JJ
trusts NNS
allowing VBG
foreigners NNS
, ,
long JJ
limited JJ
to TO
a DT
40 CD
% NN
stake NN
in IN
secondary JJ
petrochemical NN
companies NNS
, ,
to TO
own VB
up IN
to TO
100 CD
% NN
. .

Later RB
, ,
the DT
government NN
reclassified VBD
several JJ
basic JJ
petrochemicals NNS
as IN
secondary JJ
products NNS
. .

But CC
Pemex NNP
's POS
courtship NN
with IN
private JJ
companies NNS
, ,
and CC
especially RB
foreign JJ
ones NNS
, ,
is VBZ
controversial JJ
in IN
a DT
country NN
where WRB
oil NN
has VBZ
been VBN
a DT
symbol NN
of IN
national JJ
sovereignty NN
since IN
foreign JJ
oil NN
holdings NNS
were VBD
nationalized VBN
in IN
1938 CD
. .

`` ``
They PRP
are VBP
preparing VBG
the DT
workers NNS
for IN
what WP
's VBZ
coming VBG
: :
foreign JJ
control NN
, ,
'' ''
wrote VBD
Heberto NNP
Castillo NNP
, ,
a DT
leftist JJ
leader NN
. .

Mr. NNP
Guzman NNP
Cabrera NNP
and CC
government NN
officials NNS
insist VBP
that IN
foreigners NNS
will MD
be VB
limited JJ
to TO
investing VBG
in IN
secondary JJ
petroleum NN
products NNS
. .

But CC
the DT
new JJ
union NN
leader NN
makes VBZ
no DT
apologies NNS
for IN
Pemex NNP
's POS
more RBR
outward-looking JJ
attitude NN
. .

`` ``
If IN
we PRP
do VBP
not RB
integrate VB
into IN
this DT
new JJ
world NN
of IN
interdependence NN
, ,
sooner RBR
or CC
later RB
we PRP
're VBP
going VBG
to TO
become VB
victims NNS
of IN
our PRP$
own JJ
isolation NN
, ,
'' ''
he PRP
says VBZ
. .

Couple JJ
Counseling NN
Grows VBZ
to TO
Defuse VB
Stress NN

MORE JJR
EXECUTIVES NNPS
and CC
their PRP$
spouses NNS
are VBP
seeking VBG
counseling NN
as IN
work NN
and CC
family NN
pressures NNS
mount VBP
. .

Some DT
employers NNS
initiate VBP
referrals NNS
, ,
especially RB
if IN
work NN
problems NNS
threaten VBP
a DT
top JJ
manager NN
's POS
job NN
. .

Many JJ
couples NNS
`` ``
are VBP
like IN
ships NNS
passing VBG
in IN
the DT
night NN
, ,
'' ''
a DT
communications NNS
gulf NN
that WDT
sparks VBZ
problems NNS
on IN
the DT
job NN
and CC
at IN
home NN
, ,
says VBZ
psychologist NN
Harry NNP
Levinson NNP
. .

His PRP$
Levinson NNP
Institute NNP
in IN
Belmont NNP
, ,
Mass. NNP
, ,
has VBZ
seen VBN
in IN
recent JJ
years NNS
a DT
doubling NN
in IN
the DT
number NN
of IN
executives NNS
and CC
spouses NNS
at IN
its PRP$
weeklong JJ
counseling NN
program NN
. .

Employers NNS
foot VBP
the DT
bill NN
, ,
he PRP
says VBZ
, ,
figuring VBG
what WP
's VBZ
good JJ
for IN
the DT
couple NN
is VBZ
good JJ
for IN
the DT
company NN
. .

One CD
East NNP
Coast NNP
manufacturing NN
executive NN
, ,
faced VBN
with IN
a DT
job NN
transfer VB
his PRP$
wife NN
resented VBD
, ,
found VBD
that DT
counseling NN
helped VBD
them PRP
both DT
come JJ
to TO
grips NNS
with IN
the DT
move NN
. .

And CC
the DT
vice NN
president NN
of IN
a DT
large JJ
Midwestern JJ
company NN
realized VBD
that IN
an DT
abrasive JJ
temperament NN
threatened VBD
his PRP$
career NN
when WRB
his PRP$
wife NN
confided VBD
that IN
similar JJ
behavior NN
at IN
home NN
harmed VBD
their PRP$
marriage NN
. .

More RBR
dual-career JJ
couples NNS
also RB
are VBP
getting VBG
help VB
, ,
with IN
men NNS
increasingly RB
bringing VBG
their PRP$
working NN
wives NNS
for IN
joint JJ
counseling NN
. .

`` ``
The DT
level NN
of IN
stress NN
for IN
a DT
woman NN
is VBZ
often RB
so RB
high JJ
, ,
it PRP
's VBZ
the DT
husband NN
who WP
says VBZ
, ,
` ``
I PRP
'm VBP
worried VBN
about IN
her PRP$
, ,
' ''
'' ''
says VBZ
psychologist NN
Marjorie NNP
Hansen NNP
Shaevitz NNP
. .

Her PRP$
Institute NNP
for IN
Family NNP
and CC
Work NN
Relationships NNPS
in IN
La NNP
Jolla NNP
, ,
Calif. NNP
, ,
has VBZ
noted VBN
a DT
doubling NN
in IN
the DT
number NN
of IN
couples NNS
seeking VBG
help VB
the DT
past JJ
two CD
years NNS
. .

`` ``
No DT
matter NN
how WRB
competent JJ
and CC
smart JJ
you PRP
both DT
are VBP
, ,
the DT
relationship NN
almost RB
certainly RB
will MD
erode VB
if IN
you PRP
do VBP
n't RB
have VB
time NN
to TO
talk VB
, ,
to TO
have VB
fun NN
and CC
to TO
be VB
sexual JJ
, ,
'' ''
says VBZ
Ms. NNP
Shaevitz NNP
. .

She PRP
urges VBZ
client NN
couples NNS
to TO
begin VB
a DT
`` ``
detoxification NN
'' ''
period NN
, ,
purging VBG
social JJ
and CC
other JJ
nonproductive JJ
activities NNS
and CC
setting VBG
time NN
apart RB
for IN
themselves PRP
. .

`` ``
Putting VBG
those DT
times NNS
on IN
the DT
calendar NN
, ,
'' ''
she PRP
says VBZ
, ,
`` ``
is VBZ
as RB
important JJ
as IN
remembering VBG
business NN
appointments NNS
. .
'' ''

Power NNP
of IN
Suggestion NNP
Stronger JJR
in IN
Japan NNP

HERE NNP
'S VBZ
ONE CD
more JJR
explanation NN
for IN
why WRB
Japan NNP
is VBZ
a DT
tough JJ
industrial JJ
competitor NN
: :
Two CD
of IN
three CD
Japanese JJ
employees NNS
submit VBP
suggestions NNS
to TO
save VB
money NN
, ,
increase NN
efficiency NN
and CC
boost VB
morale NN
, ,
while IN
only RB
8 CD
% NN
of IN
American JJ
workers NNS
do VBP
. .

And CC
the DT
Japanese JJ
make NN
far RB
more JJR
suggestions NNS
-- :
2,472 CD
per IN
100 CD
eligible JJ
employees NNS
vs. IN
only RB
13 CD
per IN
100 CD
employees NNS
in IN
the DT

Data NNS
for IN
1987 CD
from IN
the DT
National NNP
Association NNP
of IN
Suggestion NNP
Systems NNPS
and CC
the DT
Japan NNP
Human NNP
Relations NNP
Association NNP
also RB
indicate VB
that IN
Japanese JJ
employers NNS
adopt VBP
four CD
of IN
five CD
suggestions NNS
, ,
while IN
their PRP$
U.S. NNP
counterparts NNS
accept VBP
just RB
one CD
in IN
four CD
. .

In IN
Japan NNP
, ,
small JJ
suggestions NNS
are VBP
encouraged VBN
. .

Each DT
new JJ
employee NN
is VBZ
expected VBN
to TO
submit VB
four CD
daily JJ
in IN
the DT
first JJ
few JJ
months NNS
on IN
the DT
job NN
. .

U.S. NNP
companies NNS
tend VBP
to TO
favor VB
suggestions NNS
`` ``
that WDT
go VBP
for IN
the DT
home NN
runs VBZ
, ,
'' ''
says VBZ
Gary NNP
Floss NNP
, ,
vice NN
president NN
of IN
corporate JJ
quality NN
at IN
Control NNP
Data NNP
Corp NNP
. .

That DT
helps VBZ
explain VB
why WRB
American JJ
employers NNS
grant VBP
an DT
average JJ
award NN
of IN
$ $
604.72 CD
per IN
suggestion NN
, ,
while IN
Japan NNP
's POS
payment NN
is VBZ
$ $
3.23 CD
. .

Still RB
, ,
suggestions NNS
' POS
net JJ
savings NNS
per IN
100 CD
employees NNS
is VBZ
$ $
274,475 CD
in IN
Japan NNP
vs. IN
$ $
24,891 CD
in IN
the DT
U.S. NNP
. .

U.S. NNP
companies NNS
developing VBG
management NN
teams NNS
are VBP
wrestling VBG
with IN
how WRB
to TO
handle VB
individual JJ
suggestion NN
systems NNS
. .
Control NNP
Data NNP
, ,
for IN
one CD
, ,
plays VBZ
down RB
its PRP$
employee NN
suggestion NN
program NN
because IN
it PRP
favors VBZ
the DT
team-management NN
focus NN
. .

Merger NNP
Fallout NNP
: :
Beware VB
Employee NNP
Dishonesty NN

CORPORATE JJ
security NN
directors NNS
increasingly RB
worry VBP
that DT
merger NN
mania NN
spawns VBZ
a DT
rise NN
in IN
employee NN
dishonesty NN
. .

A DT
Security NNP
magazine NN
survey NN
places VBZ
the DT
effect NN
of IN
takeovers NNS
and CC
buy-outs NNS
among IN
the DT
industry NN
's POS
10 CD
biggest JJS
challenges NNS
. .

`` ``
If IN
it PRP
causes VBZ
management NN
to TO
take VB
their PRP$
eye NN
off IN
the DT
ball NN
, ,
inventory NN
shrinkage NN
is VBZ
going VBG
to TO
be VB
affected VBN
, ,
'' ''
says VBZ
Lewis NNP
Shealy NNP
, ,
vice NN
president NN
for IN
loss NN
prevention NN
at IN
Marshall NNP
Field NNP
's POS
, ,
the DT
department NN
store NN
chain NN
. .

A DT
separate JJ
study NN
of IN
the DT
extent NN
of IN
employee NN
misconduct NN
linked VBD
general JJ
job NN
satisfaction NN
to TO
property NN
loss NN
. .

Co-author NN
Richard NNP
Hollinger NNP
cites VBZ
what WP
happened VBD
at IN
one CD
family-owned JJ
company NN
absorbed VBN
by IN
a DT
foreign JJ
giant NN
. .

Pilferage NN
climbed VBD
dramatically RB
as IN
many JJ
angry JJ
employees NNS
`` ``
felt VBD
abandoned VBN
by IN
the DT
former JJ
owners NNS
, ,
'' ''
says VBZ
the DT
University NNP
of IN
Florida NNP
sociologist NN
. .

But CC
top JJ
management NN
should MD
watch VB
for IN
other JJ
tell-tale JJ
signs NNS
of IN
employee NN
misdeeds NNS
, ,
like IN
expense-account NN
fudging NN
and CC
phone NN
misuse NN
. .

Security NN
consultant NN
Dennis NNP
Dalton NNP
of IN
Ventura NNP
, ,
Calif. NNP
, ,
thinks VBZ
mergers NNS
often RB
trigger VBP
longer RB
lunch NN
hours NNS
and CC
increased VBN
absenteeism NN
, ,
conduct NN
which WDT
can MD
sap VB
the DT
bottom NN
line NN
more JJR
than IN
thefts NNS
. .

New JJ
management NN
can MD
take VB
several JJ
steps NNS
to TO
reduce VB
dishonesty NN
. .

Most JJS
important JJ
, ,
experts NNS
say VBP
, ,
is VBZ
to TO
show VB
that IN
a DT
company NN
's POS
ethical JJ
tone NN
is VBZ
set VBN
at IN
the DT
top NN
. .

Mr. NNP
Dalton NNP
also RB
recommends VBZ
that IN
the DT
chief JJ
executive NN
establish VB
a DT
rumor NN
control NN
center NN
and CC
move NN
swiftly RB
to TO
bolster VB
morale NN
. .

Consultant NNP
John NNP
Keller NNP
of IN
Southlake NNP
, ,
Texas NNP
, ,
urges VBZ
that IN
top JJ
management NN
adopt VB
a DT
`` ``
tough JJ
hands-on JJ
approach NN
'' ''
with IN
very RB
tight JJ
controls NNS
and CC
monitoring NN
. .

And CC
security NN
authority NN
Robert NNP
L. NNP
Duston NNP
favors VBZ
disciplining VBG
all DT
employees NNS
who WP
cheat VBP
. .

Firms NNS
Walk VBP
Fine NNP
Line NNP
In IN
Distributing VBG
Profits NNS

ARE VBP
CORPORATE JJ
profits NNS
distributed VBN
fairly RB
? .

A DT
survey NN
by IN
Sirota NNP
, ,
Alper NNP
& CC
Pfau NNP
, ,
a DT
New NNP
York NNP
consulting NN
firm NN
, ,
underscores VBZ
the DT
difficulty NN
for IN
top JJ
management NN
in IN
satisfying JJ
employees NNS
and CC
investors NNS
on IN
that DT
score NN
. .

Nearly RB
seven CD
of IN
10 CD
investors NNS
think VBP
companies NNS
reinvest VBP
`` ``
too RB
little JJ
'' ''
of IN
their PRP$
profits NNS
in IN
the DT
business NN
. .

And CC
half PDT
the DT
employees NNS
surveyed VBN
think VBP
companies NNS
dole VBP
out IN
too RB
little JJ
to TO
them PRP
. .

But CC
both DT
see VB
a DT
common JJ
enemy NN
: :
About IN
66 CD
% NN
of IN
employees NNS
and CC
73 CD
% NN
of IN
investors NNS
think VBP
senior JJ
managers NNS
get VBP
too RB
big JJ
a DT
slice NN
of IN
the DT
profit NN
pie NN
. .

Bank NNP
of IN
New NNP
York NNP
Co. NNP
said VBD
it PRP
agreed VBD
in IN
principle NN
to TO
acquire VB
the DT
credit-card NN
business NN
of IN
Houston-based NNP
First NNP
City NNP
Bancorp. NNP
of IN
Texas NNP
for IN
between IN
$ $
130 CD
million CD
and CC
$ $
134 CD
million CD
. .

The DT
move NN
, ,
subject NN
to TO
a DT
definitive JJ
agreement NN
, ,
is VBZ
part NN
of IN
a DT
trend NN
by IN
big-city JJ
banks NNS
that WDT
have VBP
been VBN
buying VBG
up IN
credit-card NN
portfolios NNS
to TO
expand VB
their PRP$
business NN
. .

Just RB
last JJ
month NN
, ,
a DT
Bank NNP
of IN
New NNP
York NNP
subsidiary NN
agreed VBD
to TO
buy VB
the DT
credit-card NN
operation NN
of IN
Dreyfus NNP
Corp. NNP
's POS
Dreyfus NNP
Consumer NNP
Bank NNP
for IN
$ $
168 CD
million CD
, ,
a DT
transaction NN
that WDT
is VBZ
expected VBN
to TO
be VB
completed VBN
by IN
the DT
end NN
of IN
the DT
year NN
. .
First NNP
City NNP
's POS
portfolio NN
includes VBZ
approximately RB
640,000 CD
accounts NNS
with IN
about RB
$ $
550 CD
million CD
in IN
loans NNS
outstanding JJ
. .

First NNP
City NNP
, ,
which WDT
issues VBZ
both DT
MasterCard NNP
and CC
Visa NNP
cards NNS
, ,
has VBZ
agreed VBN
to TO
act VB
as IN
an DT
agent NN
bank NN
. .

At IN
the DT
end NN
of IN
the DT
third JJ
quarter NN
, ,
Bank NNP
of IN
New NNP
York NNP
's POS
credit-card NN
business NN
consisted VBD
of IN
2.4 CD
million CD
accounts NNS
with IN
$ $
3.6 CD
billion CD
in IN
loans NNS
outstanding JJ
. .

Bank NNP
of IN
New NNP
York NNP
is VBZ
currently RB
the DT
seventh-largest JJ
issuer NN
of IN
credit NN
cards NNS
in IN
the DT

First NNP
City NNP
said VBD
that IN
because IN
of IN
increased VBN
competition NN
in IN
the DT
credit-card NN
business NN
, ,
it PRP
had VBD
decided VBN
it PRP
either DT
had VBD
to TO
expand VB
its PRP$
own JJ
holdings NNS
substantially RB
or CC
sell VB
them PRP
. .

`` ``
We PRP
think VBP
there EX
's VBZ
a DT
good JJ
prospect NN
that DT
competition NN
is VBZ
going VBG
to TO
get VB
pretty RB
fierce JJ
in IN
this DT
market NN
, ,
'' ''
said VBD
James NNP
E. NNP
Day NNP
, ,
a DT
First NNP
City NNP
vice NN
president NN
. .

`` ``
We PRP
see VBP
it PRP
becoming VBG
a DT
bargain-basement JJ
kind NN
of IN
business NN
. .
'' ''

The DT
company NN
estimated VBN
that IN
the DT
transaction NN
would MD
enhance VB
its PRP$
book NN
value NN
, ,
which WDT
stood VBD
at IN
$ $
28.55 CD
a DT
share NN
on IN
Sept. NNP
30 CD
, ,
by IN
more JJR
than IN
$ $
100 CD
million CD
, ,
or CC
about RB
$ $
4 CD
a DT
share NN
. .

The DT
company NN
also RB
said VBD
the DT
transaction NN
would MD
bolster VB
after-tax JJ
earnings NNS
by IN
$ $
3.25 CD
a DT
share NN
when WRB
completed VBN
and CC
boost VB
its PRP$
primary JJ
capital NN
ratio NN
to TO
7 CD
% NN
from IN
6.63 CD
% NN
. .

First NNP
City NNP
, ,
which WDT
recently RB
purchased VBN
three CD
small JJ
Texas NNP
banking NN
concerns NNS
, ,
said VBD
it PRP
would MD
use VB
the DT
proceeds NNS
to TO
pursue VB
additional JJ
expansion NN
opportunities NNS
in IN
the DT
Southwest NNP
and CC
elsewhere RB
. .

With IN
that DT
possibility NN
in IN
mind NN
, ,
analysts NNS
said VBD
the DT
transaction NN
was VBD
a DT
positive JJ
move NN
for IN
First NNP
City NNP
. .

`` ``
I PRP
think VBP
they PRP
'll MD
be VB
able JJ
to TO
move VB
faster RBR
to TO
make VB
acquisitions NNS
in IN
Texas NNP
, ,
'' ''
said VBD
Brent NNP
Erensel NNP
, ,
an DT
analyst NN
with IN
Donaldson NNP
, ,
Lufkin NNP
& CC
Jenrette NNP
. .

`` ``
That DT
's VBZ
something NN
they PRP
can MD
do VB
very RB
well RB
. .

British JJ
Airways NNP
PLC NNP
said VBD
it PRP
is VBZ
seeking VBG
improved VBN
terms NNS
and CC
a DT
sharply RB
lower JJR
price NN
in IN
any DT
revised VBN
bid NN
for IN
United NNP
Airlines NNPS
parent NN
UAL NNP
Corp. NNP
following VBG
the DT
collapse NN
of IN
a DT
$ $
6.79 CD
billion CD
, ,
$ $
300-a-share JJ
buy-out NN
bid NN
. .

Derek NNP
Stevens NNP
, ,
British NNP
Air NNP
's POS
chief JJ
financial JJ
officer NN
, ,
told VBD
Dow NNP
Jones NNP
Professional NNP
Investor NNP
Report NNP
a DT
price NN
of IN
$ $
230 CD
a DT
share NN
is VBZ
`` ``
certainly RB
not RB
too RB
low JJ
, ,
'' ''
and CC
indicated VBD
his PRP$
company NN
would MD
like VB
to TO
reduce VB
the DT
size NN
of IN
its PRP$
$ $
750 CD
million CD
cash NN
investment NN
. .

He PRP
added VBD
the DT
airline NN
is VBZ
n't RB
committed VBN
to TO
going VBG
forward RB
with IN
any DT
new JJ
bid NN
, ,
and CC
has VBZ
n't RB
participated VBN
in IN
bankers NNS
' POS
efforts NNS
to TO
revive VB
the DT
transaction NN
that WDT
collapsed VBD
. .

`` ``
We PRP
're VBP
in IN
no DT
way NN
committed VBN
to TO
a DT
deal NN
going VBG
through IN
at IN
all DT
. .

We PRP
're VBP
not RB
rushing VBG
into IN
anything NN
. .

We PRP
do VBP
n't RB
want VB
to TO
be VB
party NN
to TO
a DT
second JJ
rejection NN
, ,
'' ''
he PRP
said VBD
, ,
adding VBG
that IN
coming VBG
up IN
with IN
a DT
revised VBN
offer NN
could MD
easily RB
take VB
several JJ
weeks NNS
. .

Mr. NNP
Stevens NNP
's POS
remarks NNS
, ,
confirming VBG
a DT
report NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
that IN
British NNP
Air NNP
wants VBZ
to TO
start VB
from IN
scratch NN
in IN
any DT
new JJ
bid NN
for IN
the DT
nation NN
's POS
second-largest JJ
airline NN
, ,
helped VBD
push VB
UAL NNP
stock NN
lower JJR
for IN
the DT
fourth JJ
straight JJ
day NN
. .

UAL NNP
fell VBD
$ $
6.25 CD
a DT
share NN
to TO
$ $
191.75 CD
on IN
volume NN
of IN
2.3 CD
million CD
shares NNS
in IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
as IN
concern NN
deepened VBD
among IN
takeover NN
stock NN
traders NNS
about IN
the DT
length NN
of IN
time NN
it PRP
will MD
take VB
to TO
revive VB
the DT
purchase NN
. .

Under IN
the DT
original JJ
buy-out NN
approved VBN
by IN
the DT
UAL NNP
board NN
Sept. NNP
14 CD
, ,
UAL NNP
's POS
pilots NNS
planned VBN
to TO
put VB
up IN
$ $
200 CD
million CD
in IN
cash NN
and CC
make VB
$ $
200 CD
million CD
in IN
annual JJ
cost NN
concessions NNS
for IN
a DT
75 CD
% NN
stake NN
. .

UAL NNP
management NN
was VBD
to TO
pay VB
$ $
15 CD
million CD
for IN
10 CD
% NN
, ,
and CC
British NNP
Air NNP
was VBD
to TO
receive VB
a DT
15 CD
% NN
stake NN
. .

The DT
buy-out NN
fell VBD
through IN
when WRB
Citicorp NNP
and CC
Chase NNP
Manhattan NNP
Corp. NNP
unexpectedly RB
failed VBD
to TO
obtain VB
bank NN
financing NN
. .

Since IN
then RB
, ,
UAL NNP
stock NN
has VBZ
fallen VBN
33 CD
% NN
in IN
what WP
may MD
rank VB
as IN
the DT
largest JJS
collapse NN
of IN
a DT
takeover NN
stock NN
ever RB
. .

The DT
tenor NN
of IN
Mr. NNP
Stevens NNP
's POS
remarks NNS
seemed VBD
to TO
indicate VB
that IN
British NNP
Air NNP
will MD
take VB
a DT
more RBR
active JJ
, ,
high-profile JJ
role NN
in IN
pursuing VBG
any DT
new JJ
bid NN
. .

He PRP
said VBD
he PRP
believes VBZ
UAL NNP
management NN
was VBD
badly RB
advised VBN
on IN
the DT
funding NN
of IN
its PRP$
original JJ
transaction NN
. .

Mr. NNP
Stevens NNP
said VBD
British NNP
Air NNP
has VBZ
n't RB
received VBN
any DT
new JJ
buy-out NN
proposals NNS
from IN
the DT
labor-management JJ
group NN
, ,
led VBN
by IN
UAL NNP
Chairman NNP
Stephen NNP
Wolf NNP
, ,
and CC
has VBZ
n't RB
received VBN
any DT
indication NN
of IN
when WRB
one PRP
might MD
be VB
forthcoming JJ
. .

`` ``
As RB
far RB
as IN
we PRP
're VBP
concerned VBN
, ,
we PRP
're VBP
waiting VBG
for IN
the DT
dust NN
to TO
settle VB
, ,
'' ''
he PRP
said VBD
. .

Although IN
British NNP
Air NNP
is VBZ
waiting VBG
to TO
see VB
what WP
the DT
buy-out NN
group NN
comes VBZ
up IN
with IN
, ,
Mr. NNP
Stevens NNP
said VBD
a DT
revised VBN
transaction NN
with IN
less JJR
debt NN
leverage NN
is VBZ
likely JJ
to TO
be VB
more RBR
attractive JJ
to TO
banks NNS
. .

He PRP
said VBD
the DT
original JJ
proposal NN
is VBZ
dead JJ
, ,
and CC
all DT
aspects NNS
of IN
a DT
revised VBN
version NN
are VBP
up IN
for IN
change NN
, ,
in IN
light NN
of IN
the DT
changes NNS
in IN
UAL NNP
's POS
market NN
price NN
, ,
the DT
amount NN
of IN
debt NN
banks NNS
are VBP
willing JJ
to TO
fund VB
, ,
and CC
the DT
price NN
British NNP
Air NNP
would MD
be VB
willing JJ
to TO
pay VB
. .

Mr. NNP
Stevens NNP
said VBD
he PRP
expects VBZ
the DT
new JJ
price NN
will MD
be VB
considerably RB
lower JJR
, ,
but CC
declined VBD
to TO
specify VB
a DT
figure NN
. .

Asked VBN
whether IN
a DT
$ $
230-a-share JJ
figure NN
circulating VBG
in IN
the DT
market NN
yesterday NN
is VBZ
too RB
low JJ
, ,
he PRP
said VBD
, ,
`` ``
It PRP
's VBZ
certainly RB
not RB
too RB
low JJ
. .
'' ''

He PRP
added VBD
the DT
original JJ
offer NN
was VBD
`` ``
a DT
pretty RB
full JJ
price NN
, ,
'' ''
and CC
that IN
British NNP
Air NNP
's POS
contribution NN
`` ``
was VBD
quite RB
a DT
large JJ
chunk NN
for IN
us PRP
. .
'' ''

British NNP
Air NNP
was VBD
originally RB
attracted VBN
to TO
the DT
chance NN
of IN
obtaining VBG
a DT
15 CD
% NN
stake NN
in IN
the DT
company NN
, ,
but CC
was VBD
n't RB
particularly RB
happy JJ
with IN
paying VBG
$ $
750 CD
million CD
. .

`` ``
If IN
the DT
-LCB- (
new JJ
-RCB- )
deal NN
had VBD
us PRP
putting VBG
up IN
less JJR
money NN
but CC
still RB
having VBG
15 CD
% NN
, ,
that WDT
would MD
be VB
a DT
point NN
in IN
our PRP$
favor NN
, ,
'' ''
he PRP
said VBD
. .

In IN
any DT
new JJ
proposal NN
, ,
British NNP
Air NNP
would MD
expect VB
a DT
greater JJR
rate NN
of IN
return NN
than IN
the DT
20%-plus NN
in IN
the DT
original JJ
proposal NN
. .

In IN
the DT
event NN
that IN
the DT
buy-out NN
group NN
stalls NNS
in IN
reviving VBG
its PRP$
bid NN
, ,
the DT
UAL NNP
board NN
could MD
remain VB
under IN
some DT
pressure NN
to TO
seek VB
another DT
transaction NN
, ,
even RB
without IN
any DT
legal JJ
obligation NN
to TO
do VB
so RB
. .

Roughly RB
one-third NN
of IN
its PRP$
stock NN
is VBZ
believed VBN
held VBN
by IN
takeover NN
stock NN
traders NNS
, ,
who WP
could MD
vote VB
to TO
oust VB
the DT
board NN
if IN
they PRP
become VBP
impatient JJ
. .

Meanwhile RB
, ,
the DT
buy-out NN
group NN
's POS
task NN
of IN
holding VBG
its PRP$
fragile JJ
coalition NN
together RB
, ,
in IN
the DT
face NN
of IN
the DT
bid NN
's POS
collapse NN
and CC
internal JJ
opposition NN
from IN
two CD
other JJ
employee NN
groups NNS
, ,
has VBZ
been VBN
further RB
complicated VBN
by IN
an DT
apparent JJ
rift NN
in IN
the DT
ranks NNS
of IN
the DT
pilot NN
union NN
itself PRP
. .

A DT
pilot NN
representing VBG
a DT
group NN
of IN
220 CD
pilots NNS
hired VBN
during IN
United NNP
's POS
1985 CD
strike NN
filed VBD
suit NN
Friday NNP
in IN
Chicago NNP
federal JJ
court NN
to TO
block VB
the DT
takeover NN
. .

The DT
dissident JJ
pilots NNS
oppose VBP
the DT
plan NN
because IN
it PRP
would MD
cause VB
them PRP
to TO
lose VB
their PRP$
seniority NN
. .

UAL NNP
's POS
management NN
agreed VBD
to TO
reduce VB
the DT
seniority NN
of IN
those DT
pilots NNS
in IN
exchange NN
for IN
the DT
support NN
of IN
the DT
United NNP
pilot NN
union NN
for IN
the DT
buy-out NN
proposal NN
. .

The DT
220 CD
pilots NNS
involved VBN
in IN
the DT
suit NN
are VBP
n't RB
members NNS
of IN
the DT
union NN
. .

The DT
airline NN
had VBD
allowed VBN
them PRP
to TO
move VB
ahead RB
of IN
some DT
union NN
members NNS
in IN
seniority NN
following VBG
the DT
1985 CD
strike NN
, ,
a DT
move NN
the DT
union NN
had VBD
contested VBN
in IN
a DT
previous JJ
lawsuit NN
. .

Judith NNP
Valente NNP
contributed VBD
to TO
this DT
article NN
. .

Corporate JJ
efforts NNS
to TO
control VB
health-care NN
costs NNS
by IN
requiring VBG
evaluations NNS
prior RB
to TO
planned VBN
hospitalization NN
and CC
surgery NN
have VBP
n't RB
been VBN
sweeping VBG
enough RB
to TO
reduce VB
the DT
long-term JJ
rate NN
of IN
cost NN
increases NNS
, ,
according VBG
to TO
a DT
study NN
by IN
the DT
Institute NNP
of IN
Medicine NNP
. .

In IN
the DT
last JJ
decade NN
, ,
many JJ
corporations NNS
have VBP
embraced VBN
the DT
`` ``
utilization NN
management NN
'' ''
cost NN
containment NN
strategy NN
as IN
a DT
way NN
to TO
control VB
health-care NN
costs NNS
for IN
employees NNS
. .

These DT
programs NNS
vary VBP
widely RB
, ,
but CC
often RB
require VB
second JJ
opinions NNS
on IN
proposed VBN
surgery NN
, ,
preadmission NN
reviews NNS
of IN
elective JJ
hospitalizations NNS
and CC
reviews NNS
of IN
treatment NN
during IN
illnesses NNS
or CC
recovery NN
periods NNS
. .

Between IN
50 CD
% NN
and CC
75 CD
% NN
of IN
today NN
's POS
workers NNS
are VBP
covered VBN
by IN
such JJ
plans NNS
, ,
up IN
from IN
5 NN
% NN
five CD
years NNS
ago RB
. .

`` ``
Although IN
it PRP
probably RB
has VBZ
reduced VBN
the DT
level NN
of IN
expenditures NNS
for IN
some DT
purchasers NNS
, ,
utilization NN
management NN
-- :
like IN
most RBS
other JJ
cost NN
containment NN
strategies NNS
-- :
does VBZ
n't RB
appear VB
to TO
have VB
altered VBN
the DT
long-term JJ
rate NN
of IN
increase NN
in IN
health-care NN
costs NNS
, ,
'' ''
the DT
Institute NNP
of IN
Medicine NNP
, ,
an DT
affiliate NN
of IN
the DT
National NNP
Academy NNP
of IN
Sciences NNPS
, ,
concluded VBD
after IN
a DT
two-year JJ
study NN
. .

`` ``
Employers NNS
who WP
saw VBD
a DT
short-term JJ
moderation NN
in IN
benefit NN
expenditures NNS
are VBP
seeing VBG
a DT
return NN
to TO
previous JJ
trends NNS
. .
'' ''

While IN
utilization NN
management NN
frequently RB
reduces VBZ
hospitalization NN
costs NNS
, ,
these DT
savings NNS
are VBP
often RB
offset VB
by IN
increases NNS
in IN
outpatient NN
services NNS
and CC
higher JJR
administrative JJ
costs NNS
, ,
according VBG
to TO
the DT
report NN
by IN
a DT
panel NN
of IN
health-care NN
experts NNS
. .

The DT
report NN
suggested VBD
that IN
current JJ
review NN
programs NNS
are VBP
too RB
narrow JJ
. .

`` ``
The DT
unnecessary JJ
and CC
inappropriate JJ
use NN
of IN
the DT
hospital NN
, ,
and CC
not RB
the DT
actual JJ
need NN
for IN
a DT
particular JJ
procedure NN
, ,
has VBZ
been VBN
the DT
main JJ
focus NN
, ,
'' ''
the DT
panel NN
said VBD
. .

`` ``
As IN
a DT
general JJ
rule NN
, ,
prior-review JJ
programs NNS
have VBP
not RB
made VBN
case-by-case JJ
assessments NNS
of IN
the DT
comparative JJ
costs NNS
of IN
alternative NN
treatments NNS
or CC
sites NNS
of IN
care NN
. .
'' ''

The DT
report NN
said VBD
that DT
utilization NN
management NN
should MD
have VB
more JJR
of IN
an DT
impact NN
as IN
federal JJ
research NN
on IN
the DT
effectiveness NN
of IN
medical JJ
treatments NNS
helps VBZ
lead VBN
to TO
medical JJ
practice NN
guidelines NNS
. .

Howard NNP
Bailit NNP
, ,
a DT
panel NN
member NN
and CC
a DT
vice NN
president NN
of IN
Aetna NNP
Life NNP
& CC
Casualty NNP
, ,
said VBD
that DT
utilization NN
management NN
will MD
also RB
do VB
a DT
better JJR
job NN
of IN
containing VBG
costs NNS
as IN
it PRP
spreads VBZ
to TO
cover VB
medical JJ
services NNS
delivered VBN
outside IN
of IN
hospitals NNS
. .

`` ``
There EX
's VBZ
pretty RB
good JJ
evidence NN
that DT
utilization NN
management NN
has VBZ
reduced VBN
inappropriate JJ
hospitalization NN
, ,
'' ''
he PRP
said VBD
. .

But CC
at IN
the DT
same JJ
time NN
, ,
spending NN
on IN
physician NN
services NNS
and CC
ambulatory JJ
care NN
have VBP
mushroomed VBN
. .

`` ``
It PRP
's VBZ
like IN
squeezing VBG
a DT
balloon NN
, ,
'' ''
Dr. NNP
Bailit NNP
said VBD
. .

David NNP
Rahill NNP
of IN
A. NNP
Foster NNP
Higgins NNP
& CC
Co. NNP
said VBD
that IN
clients NNS
of IN
his PRP$
consulting NN
firm NN
report NN
that DT
utilization NN
management NN
reduces VBZ
their PRP$
hospital NN
care NN
bills NNS
by IN
about IN
5 NN
% NN
, ,
but CC
he PRP
agreed VBD
that IN
for IN
the DT
health-care NN
system NN
as IN
whole JJ
, ,
some DT
of IN
these DT
savings NNS
are VBP
offset VB
by IN
administrative JJ
and CC
outpatient NN
care NN
costs NNS
. .
Jerome NNP
Grossman NNP
, ,
chairman NN
of IN
the DT
panel NN
, ,
agrees VBZ
that IN
administrative JJ
costs NNS
of IN
utilization NN
management NN
programs NNS
can MD
be VB
high JJ
. .

`` ``
You PRP
have VBP
a DT
whole JJ
staff NN
standing VBG
ready JJ
'' ''
to TO
evaluate VB
the DT
appropriateness NN
of IN
recommended VBN
treatment NN
, ,
he PRP
said VBD
. .

Dr. NNP
Grossman NNP
, ,
who WP
also RB
is VBZ
president NN
of IN
New NNP
England NNP
Medical NNP
Center NNP
Hospitals NNS
in IN
Boston NNP
, ,
noted VBD
that IN
the DT
hospitals NNS
he PRP
runs VBZ
deal NN
with IN
more JJR
than IN
100 CD
utilization NN
management NN
firms NNS
and CC
that IN
many NN
of IN
them PRP
have VBP
different JJ
procedures NNS
and CC
requirements NNS
. .

The DT
panel NN
urged VBD
greater JJR
efforts NNS
to TO
reduce VB
the DT
complexity NN
, ,
paperwork NN
and CC
cost NN
of IN
utilization NN
review NN
. .

`` ``
Utilization NN
management NN
needs VBZ
to TO
better JJR
demonstrate VB
that IN
it PRP
reduces VBZ
the DT
wasteful JJ
use NN
of IN
resources NNS
, ,
improves VBZ
the DT
appropriateness NN
of IN
patient NN
care NN
and CC
imposes VBZ
only RB
reasonable JJ
burdens NNS
on IN
patients NNS
and CC
providers NNS
, ,
'' ''
the DT
panel NN
concluded VBD
. .

Renault NNP
and CC
DAF NNP
Trucks NNS
NV NNP
announced VBD
a DT
preliminary JJ
agreement NN
to TO
jointly RB
manufacture VB
a DT
line NN
of IN
trucks NNS
in IN
Britain NNP
and CC
France NNP
. .

Philippe NNP
Gras NNP
, ,
a DT
Renault NNP
managing VBG
director NN
, ,
said VBD
the DT
new JJ
line NN
will MD
cover VB
trucks NNS
of IN
between IN
2.5 CD
tons NNS
and CC
4.2 CD
tons NNS
and CC
will MD
be VB
built VBN
at IN
Renault NNP
's POS
Bapilly NNP
plant NN
in IN
France NNP
and CC
at IN
DAF NNP
's POS
British JJ
plant NN
. .

The DT
French JJ
state-controlled JJ
auto NN
group NN
and CC
the DT
Dutch JJ
truck NN
maker NN
plan NN
to TO
incorporate VB
the DT
new JJ
trucks NNS
into IN
their PRP$
product NN
lines NNS
when WRB
they PRP
begin VBP
production NN
toward IN
the DT
middle NN
of IN
the DT
1990s CD
. .

Mr. NNP
Gras NNP
said VBD
he PRP
expects VBZ
a DT
definitive JJ
agreement NN
between IN
the DT
two CD
companies NNS
to TO
be VB
completed VBN
in IN
the DT
next JJ
few JJ
months NNS
. .

The DT
venture NN
is VBZ
the DT
latest JJS
example NN
of IN
the DT
trend NN
toward IN
cooperative JJ
projects NNS
in IN
Europe NNP
ahead RB
of IN
the DT
1992 CD
deadline NN
for IN
eliminating VBG
trade NN
barriers NNS
within IN
the DT
European NNP
Community NNP
. .

Renault NNP
and CC
DAF NNP
are VBP
expected VBN
to TO
invest VB
a DT
total NN
of IN
about IN
three CD
billion CD
French JJ
francs NNS
-LRB- (
$ $
157.8 CD
million CD
-RRB- )
in IN
the DT
venture NN
, ,
including VBG
FFr NNP
1 CD
billion CD
for IN
design NN
and CC
development NN
costs NNS
. .

In IN
addition NN
, ,
the DT
companies NNS
will MD
each DT
spend VB
about IN
FFr NNP
1 CD
billion CD
on IN
tooling VBG
up IN
their PRP$
plants NNS
. .

Mr. NNP
Gras NNP
said VBD
the DT
joint JJ
venture NN
represents VBZ
considerable JJ
savings NNS
for IN
both DT
Renault NNP
and CC
DAF NNP
, ,
since IN
both DT
companies NNS
would MD
in IN
any DT
case NN
have VBP
had VBN
to TO
renew VB
their PRP$
existing VBG
ranges NNS
of IN
light NN
goods NNS
vehicles NNS
. .

By IN
pooling VBG
their PRP$
resources NNS
, ,
the DT
two CD
groups NNS
have VBP
effectively RB
halved VBN
the DT
design NN
and CC
development NN
costs NNS
that WDT
would MD
otherwise RB
have VB
been VBN
entailed VBN
, ,
he PRP
said VBD
. .

Renault NNP
officials NNS
said VBD
the DT
potential JJ
European JJ
market NN
for IN
light NN
trucks NNS
in IN
the DT
2.5-ton JJ
to TO
4.2-ton VB
range NN
is VBZ
between IN
700,000 CD
and CC
800,000 CD
vehicles NNS
annually RB
, ,
and CC
Renault NNP
and CC
DAF NNP
are VBP
aiming VBG
for IN
a DT
combined VBN
market NN
share NN
of IN
about IN
11 CD
% NN
. .

Both DT
Renault NNP
and CC
DAF NNP
will MD
have VB
world-wide JJ
marketing NN
rights NNS
for IN
the DT
new JJ
range NN
of IN
vans NNS
and CC
light NN
trucks NNS
. .

Under IN
a DT
separate JJ
arrangement NN
, ,
British NNP
Aerospace NNP
PLC NNP
's POS
Rover NNP
Group NNP
PLC NNP
subsidiary NN
will MD
also RB
be VB
able JJ
to TO
offer VB
the DT
vehicles NNS
through IN
its PRP$
dealers NNS
in IN
the DT
U.K. NNP
, ,
and CC
Renault NNP
's POS
truck-building JJ
subsidiary NN
Renault NNP
Vehicles NNPS
Industriels NNPS
will MD
have VB
similar JJ
rights NNS
in IN
France NNP
. .

DAF NNP
is VBZ
16%-owned JJ
by IN
British NNP
Aerospace NNP
, ,
with IN
a DT
further JJ
6.5 CD
% NN
held VBN
by IN
the DT
Dutch JJ
state-owned JJ
chemical NN
group NN
NV NNP
DSM NNP
. .

The DT
van NNP
Doorne NNP
family NN
of IN
the DT
Netherlands NNP
holds VBZ
an DT
additional JJ
11 CD
% NN
of IN
DAF NNP
's POS
capital NN
. .

The DT
Federal NNP
Reserve NNP
System NNP
is VBZ
the DT
standard JJ
object NN
of IN
suggestions NNS
for IN
organizational JJ
and CC
institutional JJ
changes NNS
, ,
for IN
two CD
reasons NNS
. .

First RB
, ,
its PRP$
position NN
in IN
the DT
government NN
is VBZ
anomalous JJ
. .

It PRP
has VBZ
an DT
unusual JJ
kind NN
of IN
independence NN
from IN
elected VBN
officials NNS
and CC
still RB
has VBZ
authority NN
over IN
one CD
of IN
the DT
most RBS
powerful JJ
of IN
government NN
's POS
instruments NNS
-- :
the DT
control NN
of IN
the DT
money NN
supply NN
. .

Thus RB
we PRP
have VBP
a DT
condition NN
that WDT
is VBZ
easily RB
described VBN
as IN
undemocratic JJ
. .

Second JJ
, ,
the DT
responsibilities NNS
of IN
the DT
Federal NNP
Reserve NNP
as IN
guardian NN
of IN
the DT
currency NN
, ,
which WDT
means VBZ
as IN
guardian NN
of IN
the DT
stability NN
of IN
the DT
price NN
level NN
, ,
sometimes RB
lead VB
it PRP
to TO
take VB
measures NNS
that WDT
are VBP
unpopular JJ
. .

As IN
former JJ
Fed NNP
Chairman NNP
William NNP
McChesney NNP
Martin NNP
used VBD
to TO
say VB
, ,
they PRP
would MD
have VB
to TO
take VB
the DT
punch NN
bowl NN
away RB
just RB
as IN
the DT
party NN
is VBZ
getting VBG
interesting JJ
. .

So RB
the DT
Federal NNP
Reserve NNP
is VBZ
an DT
attractive JJ
target NN
for IN
complaint NN
by IN
politicians NNS
. .

The DT
Fed NNP
is VBZ
easily RB
assigned VBN
the DT
blame NN
for IN
unpleasantness NN
, ,
like IN
high JJ
interest NN
rates NNS
or CC
slow JJ
economic JJ
growth NN
, ,
while IN
the DT
politicians NNS
can MD
escape VB
responsibility NN
by IN
pointing VBG
to TO
the DT
Fed NNP
's POS
independence NN
. .

This DT
leads VBZ
to TO
proposals NNS
for IN
`` ``
reform NN
'' ''
of IN
the DT
Fed NNP
, ,
which WDT
have VBP
the DT
common JJ
feature NN
of IN
making VBG
the DT
Fed NNP
more RBR
responsive JJ
to TO
the DT
administration NN
, ,
to TO
the DT
Congress NNP
and CC
to TO
public JJ
opinion NN
-- :
without IN
, ,
however RB
, ,
any DT
assumption NN
of IN
additional JJ
responsibility NN
by IN
the DT
politicians NNS
. .

These DT
proposals NNS
include VBP
changing VBG
the DT
term NN
of IN
the DT
chairman NN
, ,
shortening VBG
the DT
terms NNS
of IN
the DT
members NNS
, ,
eliminating VBG
the DT
presidents NNS
of IN
the DT
Federal NNP
Reserve NNP
Banks NNP
from IN
the DT
decision-making NN
process NN
, ,
putting VBG
the DT
Secretary NNP
of IN
the DT
Treasury NNP
on IN
the DT
Federal NNP
Reserve NNP
Board NNP
, ,
having VBG
the DT
Fed NNP
audited VBN
by IN
an DT
arm NN
of IN
Congress NNP
-LRB- (
the DT
General NNP
Accounting NNP
Office NNP
-RRB- )
, ,
putting VBG
the DT
Fed NNP
's POS
expenditures NNS
in IN
the DT
budget NN
, ,
and CC
requiring VBG
prompt VB
publication NN
of IN
the DT
Fed NNP
's POS
minutes NNS
. .

Some DT
of IN
these DT
ideas NNS
are VBP
again RB
under IN
consideration NN
in IN
Congress NNP
. .

But CC
these DT
proposals NNS
do VBP
not RB
rest VB
on IN
a DT
view NN
of IN
what WP
the DT
Fed NNP
's POS
problem NN
is VBZ
or CC
, ,
if IN
they PRP
do VBP
, ,
they PRP
rest VBP
on IN
an DT
incorrect JJ
view NN
. .

They PRP
would MD
not RB
solve VB
the DT
problem NN
; :
they PRP
would MD
make VB
it PRP
worse JJR
. .

The DT
problem NN
is VBZ
not RB
that IN
the DT
Fed NNP
is VBZ
too RB
unresponsive JJ
to TO
the DT
public JJ
interest NN
. .

On IN
the DT
contrary NN
, ,
it PRP
is VBZ
too RB
responsive JJ
to TO
an DT
incorrect JJ
view NN
of IN
the DT
public JJ
interest NN
. .

The DT
price NN
level NN
in IN
the DT
U.S. NNP
is VBZ
now RB
about IN
4 CD
1\/4 CD
times NNS
as RB
high JJ
as IN
it PRP
was VBD
30 CD
years NNS
ago RB
. .

On IN
average JJ
, ,
something NN
that DT
cost NN
$ $
100 CD
30 CD
years NNS
ago RB
now RB
costs VBZ
$ $
425 CD
. .

Or CC
, ,
a DT
wage NN
that WDT
was VBD
$ $
100 CD
30 CD
years NNS
ago RB
would MD
buy VB
only RB
$ $
23.53 CD
worth NN
of IN
stuff NN
today NN
. .

On IN
two CD
occasions VBZ
the DT
inflation NN
rate NN
rose VBD
to TO
more JJR
than IN
10 CD
% NN
a DT
year NN
. .

In IN
each DT
case NN
the DT
ending NN
of IN
this DT
unsustainable JJ
inflation NN
caused VBD
a DT
severe JJ
recession NN
-- :
the DT
two CD
worst JJS
of IN
the DT
postwar JJ
period NN
. .

The DT
enormous JJ
inflation NN
over IN
the DT
past JJ
30 CD
years NNS
was VBD
largely RB
due JJ
to TO
monetary JJ
policy NN
. .

At IN
least JJS
, ,
it PRP
would MD
not RB
have VB
happened VBN
without IN
the DT
support NN
of IN
monetary JJ
policy NN
that WDT
provided VBD
for IN
a DT
10-fold JJ
increase NN
in IN
the DT
money NN
supply NN
during IN
the DT
same JJ
period NN
. .

And CC
that DT
increase NN
in IN
the DT
money NN
supply NN
would MD
not RB
have VB
happened VBN
without IN
the DT
consent NN
of IN
the DT
Federal NNP
Reserve NNP
. .

The DT
basic JJ
problem NN
of IN
monetary JJ
policy NN
, ,
to TO
which WDT
reform NN
of IN
the DT
Fed NNP
should MD
be VB
addressed VBN
, ,
is VBZ
to TO
prevent VB
a DT
recurrence NN
of IN
this DT
experience NN
. .

There EX
were VBD
two CD
general JJ
reasons NNS
for IN
the DT
mistaken VBN
monetary JJ
policy NN
of IN
the DT
past JJ
30 CD
years NNS
: :

1 CD
. .
To TO
some DT
extent NN
the DT
Federal NNP
Reserve NNP
shared VBD
the DT
popular JJ
but CC
incorrect JJ
view NN
that IN
expansionary JJ
monetary JJ
policy NN
could MD
yield VB
a DT
net JJ
improvement NN
in IN
employment NN
and CC
output NN
. .

2 CD
. .
Even RB
where WRB
the DT
Fed NNP
did VBD
not RB
share VB
this DT
view NN
it PRP
felt VBD
the DT
need NN
to TO
accommodate VB
to TO
it PRP
. .

Despite IN
all PDT
the DT
formal JJ
provisions NNS
for IN
its PRP$
independence NN
, ,
the DT
Fed NNP
seems VBZ
constantly RB
to TO
feel VB
that IN
if IN
it PRP
uses VBZ
its PRP$
independence NN
too RB
freely RB
it PRP
will MD
lose VB
it PRP
. .

The DT
common JJ
proposals NNS
for IN
reforming VBG
the DT
Fed NNP
would MD
only RB
make VB
the DT
situation NN
worse JJR
, ,
if IN
they PRP
had VBD
any DT
effect NN
at IN
all DT
. .

Putting VBG
the DT
Secretary NNP
of IN
the DT
Treasury NNP
on IN
the DT
Board NNP
of IN
Governors NNP
, ,
one CD
of IN
the DT
leading VBG
proposals NNS
today NN
, ,
is VBZ
an DT
example NN
. .

The DT
secretary NN
is VBZ
the DT
world NN
's POS
biggest JJS
borrower NN
of IN
money NN
. .

He PRP
has VBZ
a DT
built-in NN
, ,
constant JJ
longing NN
for IN
lower JJR
interest NN
rates NNS
. .

Moreover RB
, ,
he PRP
is VBZ
a DT
political JJ
agent NN
of IN
a DT
political JJ
president NN
, ,
who WP
naturally RB
gives VBZ
extraordinary JJ
weight NN
to TO
the DT
way NN
the DT
economy NN
will MD
perform VB
before IN
the DT
next JJ
election NN
, ,
and CC
less JJR
to TO
its PRP$
longer-run JJ
health NN
. .

These DT
days NNS
, ,
the DT
secretary NN
suffers VBZ
the DT
further JJ
disqualification NN
that IN
he PRP
is VBZ
a DT
member NN
of IN
a DT
club NN
of IN
seven CD
finance NN
ministers NNS
who WP
meet VBP
occasionally RB
to TO
decide VB
what WP
exchange NN
rates NNS
should MD
be VB
, ,
which WDT
is VBZ
a DT
diversion NN
from IN
the DT
real JJ
business NN
of IN
the DT
Federal NNP
Reserve NNP
to TO
stabilize VB
the DT
price NN
level NN
. .

How WRB
should MD
a DT
reasonable JJ
member NN
of IN
the DT
Federal NNP
Reserve NNP
Board NNP
interpret VB
a DT
congressional JJ
decision NN
to TO
put VB
the DT
secretary NN
on IN
the DT
board NN
? .

Could MD
he PRP
plausibly RB
interpret VB
it PRP
as IN
encouragement NN
for IN
the DT
Fed NNP
to TO
give VB
primary JJ
emphasis NN
to TO
stabilizing VBG
the DT
price NN
level NN
? .

Or CC
would MD
he PRP
interpret VB
it PRP
as IN
instruction NN
to TO
give VB
more JJR
weight NN
to TO
these DT
other JJ
objectives NNS
that IN
the DT
secretary NN
represents VBZ
-- :
low JJ
interest NN
rates NNS
, ,
short-run JJ
economic JJ
expansion NN
, ,
and CC
stabilization NN
of IN
exchange NN
rates NNS
at IN
internationally RB
managed VBD
levels NNS
? .

The DT
answer NN
seems VBZ
perfectly RB
clear JJ
. .

-LRB- (
True JJ
, ,
a DT
succession NN
of IN
Fed NNP
chairmen NNS
has VBZ
given VBN
color NN
to TO
the DT
notion NN
that IN
the DT
Secretary NNP
of IN
the DT
Treasury NNP
belongs VBZ
on IN
the DT
Fed NNP
. .

By IN
their PRP$
constant JJ
readiness NN
to TO
advise VB
all DT
and CC
sundry JJ
about IN
federal JJ
budgetary JJ
matters NNS
the DT
chairmen NNS
have VBP
encouraged VBN
the DT
belief NN
that IN
fiscal JJ
policy NN
and CC
monetary JJ
policy NN
are VBP
ingredients NNS
of IN
a DT
common JJ
stew NN
, ,
in IN
which WDT
case NN
it PRP
is VBZ
natural JJ
that IN
the DT
Fed NNP
and CC
the DT
Treasury NNP
, ,
and CC
probably RB
also RB
the DT
Congress NNP
, ,
should MD
be VB
jointly RB
engaged VBN
in IN
stirring VBG
the DT
pot NN
. .

The DT
Fed NNP
's POS
case NN
for IN
its PRP$
own JJ
independence NN
would MD
be VB
a DT
little RB
stronger JJR
if IN
it PRP
were VBD
more RBR
solicitous JJ
of IN
the DT
independence NN
of IN
the DT
rest NN
of IN
the DT
government NN
. .
-RRB- )

The DT
Fed NNP
's POS
problem NN
is VBZ
not RB
that IN
it PRP
is VBZ
too RB
independent JJ
, ,
or CC
too RB
unpolitical JJ
. .

The DT
Fed NNP
is VBZ
responsive JJ
to TO
, ,
and CC
can MD
not RB
help VB
being VBG
responsive JJ
to TO
, ,
the DT
more RBR
overtly RB
political JJ
part NN
of IN
the DT
government NN
. .

The DT
Fed NNP
exercises VBZ
a DT
power NN
given VBN
to TO
it PRP
by IN
Congress NNP
and CC
the DT
president NN
. .

But CC
Congress NNP
and CC
the DT
president NN
accept VB
no DT
responsibility NN
for IN
the DT
exercise NN
of IN
the DT
power NN
they PRP
have VBP
given VBN
the DT
Fed NNP
. .

Critics NNS
of IN
the DT
present JJ
arrangement NN
are VBP
correct JJ
to TO
say VB
that IN
it PRP
is VBZ
undemocratic JJ
. .

What WP
is VBZ
undemocratic JJ
is VBZ
the DT
unwillingness NN
of IN
the DT
more RBR
political JJ
parts NNS
of IN
the DT
government NN
to TO
take VB
the DT
responsibility NN
for IN
deciding VBG
the DT
basic JJ
question NN
of IN
monetary JJ
policy NN
, ,
which WDT
is VBZ
what WP
priority NN
should MD
be VB
given VBN
to TO
stabilizing VBG
the DT
price NN
level NN
. .

To TO
leave VB
this DT
decision NN
to TO
an DT
`` ``
independent JJ
'' ''
agency NN
is VBZ
not RB
only RB
undemocratic JJ
. .

It PRP
also RB
prevents VBZ
the DT
conduct NN
of IN
a DT
policy NN
that WDT
has VBZ
a DT
long-term JJ
rationale NN
, ,
because IN
it PRP
leaves VBZ
the DT
Fed NNP
guessing VBG
about IN
what WP
are VBP
the DT
expectations NNS
of IN
its PRP$
masters NNS
, ,
the DT
politicians NNS
, ,
who WP
have VBP
never RB
had VBN
to TO
consider VB
the DT
long-term JJ
consequences NNS
of IN
monetary JJ
policy NN
. .

The DT
greatest JJS
contribution NN
Congress NNP
could MD
make VB
at IN
this DT
time NN
would MD
be VB
to TO
declare VB
that IN
stabilizing VBG
the DT
price NN
level NN
is VBZ
the DT
primary JJ
responsibility NN
of IN
the DT
Federal NNP
Reserve NNP
System NNP
. .

Legislation NN
to TO
this DT
effect NN
has VBZ
been VBN
introduced VBN
in IN
Congress NNP
in IN
this DT
session NN
by IN
Rep. NNP
Stephen NNP
Neal NNP
-LRB- (
D. NNP
, ,
N.C NNP
. .
-RRB- )
. .

It PRP
is VBZ
not RB
the DT
kind NN
of IN
thing NN
that WDT
is VBZ
likely JJ
to TO
be VB
enacted VBN
, ,
however RB
. .

Congress NNP
would MD
be VB
required VBN
to TO
make VB
a DT
hard JJ
decision NN
, ,
and CC
Congress NNP
would MD
much RB
prefer VB
to TO
leave VB
the DT
hard JJ
decision NN
to TO
the DT
Fed NNP
and CC
retain VB
its PRP$
rights NNS
of IN
complaint NN
after IN
the DT
fact NN
. .

People NNS
will MD
say VB
that IN
the DT
nation NN
and CC
the DT
government NN
have VBP
other JJ
objectives NNS
, ,
in IN
addition NN
to TO
stabilizing VBG
the DT
price NN
level NN
, ,
which WDT
is VBZ
true JJ
. .

But CC
that DT
is VBZ
not RB
the DT
same JJ
as IN
saying VBG
that IN
the DT
Federal NNP
Reserve NNP
has VBZ
other JJ
objectives NNS
. .

The DT
government NN
has VBZ
other JJ
agencies NNS
and CC
instruments NNS
for IN
pursuing VBG
these DT
other JJ
objectives NNS
. .

But CC
it PRP
has VBZ
only RB
the DT
Fed NNP
to TO
pursue VB
price-level JJ
stability NN
. .

And CC
the DT
Fed NNP
has VBZ
at IN
most RBS
very RB
limited JJ
ability NN
to TO
contribute VB
to TO
the DT
achievement NN
of IN
other JJ
objectives NNS
by IN
means VBZ
other JJ
than IN
by IN
stabilizing VBG
the DT
price NN
level NN
. .

The DT
two CD
objectives NNS
most RBS
commonly RB
thought VBD
to TO
be VB
legitimate JJ
competitors NNS
for IN
the DT
attention NN
of IN
the DT
Fed NNP
are VBP
high JJ
employment NN
and CC
rapid JJ
real JJ
growth NN
. .

But CC
the DT
main JJ
lesson NN
of IN
economic JJ
policy NN
in IN
the DT
past JJ
30 CD
years NNS
is VBZ
that IN
if IN
the DT
Fed NNP
compromises NNS
with IN
the DT
price-stability NN
objective NN
in IN
the DT
pursuit NN
of IN
these DT
other JJ
goals NNS
, ,
the DT
result NN
is VBZ
not RB
high JJ
employment NN
and CC
rapid JJ
growth NN
but CC
is VBZ
inflation NN
. .

A DT
former JJ
chairman NN
of IN
the DT
president NN
's POS
Council NNP
of IN
Economic NNP
Advisers NNPS
, ,
Mr. NNP
Stein NNP
is VBZ
an DT
American NNP
Enterprise NNP
Institute NNP
fellow NN
. .

Republic NNP
New NNP
York NNP
Corp. NNP
joined VBD
the DT
list NN
of IN
banks NNS
boosting VBG
reserves NNS
for IN
losses NNS
on IN
loans NNS
to TO
less-developed JJ
countries NNS
, ,
setting VBG
out IN
a DT
$ $
200 CD
million CD
provision NN
and CC
posting VBG
a DT
$ $
155.4 CD
million CD
third-quarter JJ
net JJ
loss NN
as IN
a DT
result NN
. .

The DT
per-share JJ
loss NN
was VBD
$ $
5.32 CD
. .

In IN
the DT
year NN
earlier JJR
period NN
, ,
the DT
New NNP
York NNP
parent NN
of IN
Republic NNP
National NNP
Bank NNP
had VBD
net JJ
income NN
of IN
$ $
38.7 CD
million CD
, ,
or CC
$ $
1.12 CD
a DT
share NN
. .

Excluding VBG
the DT
provision NN
, ,
Republic NNP
earned VBD
$ $
44.6 CD
million CD
, ,
up IN
15 CD
% NN
from IN
a DT
year NN
ago RB
. .

The DT
bank NN
's POS
medium-term JJ
and CC
long-term JJ
loans NNS
to TO
less-developed JJ
countries NNS
total JJ
$ $
293 CD
million CD
, ,
of IN
which WDT
$ $
146 CD
million CD
are VBP
n't RB
accruing VBG
interest NN
, ,
the DT
bank NN
said VBD
. .

Republic NNP
's POS
total NN
of IN
nonperforming JJ
assets NNS
was VBD
$ $
167 CD
million CD
at IN
Sept. NNP
30 CD
, ,
with IN
its PRP$
reserve NN
for IN
loan NN
losses NNS
now RB
standing VBG
at IN
$ $
357 CD
million CD
. .

Abortion-rights NNS
advocates NNS
won VBD
last JJ
week NN
's POS
battles NNS
, ,
but CC
the DT
war NN
over IN
the DT
nation NN
's POS
most-contentious RBS
social JJ
question NN
is VBZ
about IN
to TO
pick VB
up IN
again RB
on IN
turf NN
that WDT
favors VBZ
those DT
seeking VBG
to TO
restrict VB
abortions NNS
. .

Strict JJ
new JJ
regulations NNS
seem VBP
certain JJ
to TO
pass VB
the DT
state NN
House NNP
in IN
Pennsylvania NNP
next JJ
week NN
, ,
with IN
easy JJ
approval NN
by IN
the DT
Senate NNP
and CC
by IN
Democratic NNP
Gov. NNP
Bob NNP
Casey NNP
expected VBD
shortly RB
thereafter RB
. .

Legislation NN
to TO
require VB
the DT
consent NN
of IN
parents NNS
before IN
their PRP$
daughters NNS
under IN
the DT
age NN
of IN
18 CD
can MD
have VB
abortions NNS
will MD
probably RB
pass VB
both DT
houses NNS
of IN
the DT
Michigan NNP
legislature NN
and CC
set VBN
up IN
a DT
grinding VBG
battle NN
to TO
override VB
the DT
expected VBN
veto NN
of IN
Democratic NNP
Gov. NNP
James NNP
Blanchard NNP
. .

The DT
short-term JJ
shift NN
in IN
the DT
political JJ
climate NN
surrounding VBG
abortion NN
reflects VBZ
two CD
factors NNS
that WDT
are VBP
likely JJ
to TO
govern VB
the DT
debate NN
in IN
the DT
next JJ
several JJ
months NNS
: :
the DT
reawakening VBG
of IN
the DT
abortion-rights NNS
movement NN
as IN
a DT
potent JJ
force NN
after IN
years NNS
of IN
lassitude NN
, ,
and CC
the DT
ability NN
of IN
each DT
side NN
to TO
counter VB
the DT
other NN
's POS
advance NN
in IN
one CD
arena NN
with IN
a DT
victory NN
of IN
its PRP$
own JJ
elsewhere RB
. .

The DT
action NN
in IN
Pennsylvania NNP
, ,
for IN
example NN
, ,
will MD
follow VB
last JJ
week NN
's POS
collapse NN
of IN
a DT
special JJ
session NN
of IN
the DT
Florida NNP
legislature NN
to TO
enact VB
restrictions NNS
on IN
abortions NNS
in IN
that DT
state NN
, ,
and CC
the DT
vote NN
here RB
in IN
Washington NNP
by IN
the DT
House NNP
to TO
permit VB
federally RB
paid VBN
abortions NNS
for IN
poor JJ
women NNS
who WP
are VBP
victims NNS
of IN
rape NN
or CC
incest NN
. .

But CC
President NNP
Bush NNP
is VBZ
expected VBN
to TO
veto VB
the DT
congressional JJ
legislation NN
and CC
that IN
, ,
along IN
with IN
the DT
easy JJ
approval NN
of IN
the DT
Pennsylvania NNP
measure NN
, ,
is VBZ
likely JJ
to TO
mute VB
the DT
abortion-rights NNS
activists NNS
' POS
claims NNS
of IN
momentum NN
and CC
underline VB
the DT
challenges NNS
faced VBN
by IN
this DT
resurgent JJ
movement NN
. .

`` ``
It PRP
's VBZ
great JJ
to TO
feel VB
good JJ
for IN
once RB
in IN
15 CD
years NNS
, ,
'' ''
says VBZ
Harrison NNP
Hickman NNP
, ,
a DT
consultant NN
to TO
abortion-rights NNS
advocates NNS
, ,
reflecting VBG
the DT
relief NN
of IN
his PRP$
compatriots NNS
after IN
last JJ
week NN
's POS
victories NNS
, ,
the DT
first JJ
major JJ
events NNS
since IN
the DT
Supreme NNP
Court NNP
, ,
in IN
its PRP$
July NNP
3 CD
Webster NNP
decision NN
, ,
permitted VBD
the DT
states NNS
to TO
enact VB
restrictions NNS
on IN
abortions NNS
. .

`` ``
But CC
how WRB
many RB
more JJR
times NNS
we PRP
're VBP
going VBG
to TO
feel VB
good JJ
in IN
the DT
next JJ
15 CD
is VBZ
another DT
question NN
. .
'' ''

Indeed RB
, ,
abortion-rights NNS
activists NNS
still JJ
face VB
their PRP$
greatest JJS
tests NNS
. .

`` ``
The DT
pro-choice JJ
movement NN
has VBZ
shown VBN
-- :
finally RB
-- :
that IN
it PRP
can MD
mobilize VB
, ,
'' ''
says VBZ
Glen NNP
Halva-Neubauer NNP
, ,
a DT
Furman NNP
University NNP
political JJ
scientist NN
who WP
specializes VBZ
in IN
how WRB
state NN
legislators NNS
handle VBP
the DT
abortion NN
question NN
. .

`` ``
But CC
it PRP
still RB
has VBZ
n't RB
shown VBN
that IN
it PRP
can MD
win VB
in IN
a DT
state NN
like IN
Pennsylvania NNP
or CC
Missouri NNP
, ,
where WRB
abortion NN
has VBZ
been VBN
clearly RB
an DT
electoral JJ
issue NN
and CC
where WRB
it PRP
's VBZ
been VBN
an DT
emotional JJ
issue NN
for IN
a DT
long JJ
time NN
. .
'' ''

The DT
foes NNS
of IN
abortion NN
hold NN
the DT
strong JJ
whip NN
hand NN
in IN
Pennsylvania NNP
, ,
where WRB
abortion-rights NNS
activists NNS
are VBP
so RB
much JJ
on IN
the DT
defensive NN
that IN
their PRP$
strategy NN
is VBZ
less JJR
to TO
fight VB
the DT
proposed VBN
legislation NN
than IN
it PRP
is VBZ
to TO
stress VB
how WRB
the DT
state NN
legislature NN
does VBZ
n't RB
reflect VB
the DT
viewpoints NNS
of IN
the DT
state NN
's POS
citizens NNS
. .

As IN
a DT
result NN
, ,
GOP NNP
state NN
Rep. NNP
Stephen NNP
Freind NNP
of IN
Delaware NNP
County NNP
, ,
the DT
legislature NN
's POS
leading VBG
foe NN
of IN
abortion NN
, ,
has VBZ
been VBN
given VBN
all DT
but CC
free JJ
rein NN
to TO
press VB
a DT
strict JJ
seven-point JJ
plan NN
to TO
restrict VB
abortion NN
and CC
, ,
he PRP
hopes VBZ
, ,
to TO
force VB
the DT
Supreme NNP
Court NNP
directly RB
to TO
reassess VB
its PRP$
1973 CD
Roe NNP
v. CC
Wade NNP
decision NN
that WDT
established VBD
the DT
right NN
of IN
abortion NN
in IN
the DT
first JJ
place NN
. .

The DT
Freind NNP
legislation NN
-- :
the DT
state NN
's POS
House NNP
Judiciary NNP
Committee NNP
approved VBD
it PRP
in IN
Harrisburg NNP
this DT
week NN
and CC
the DT
full JJ
Pennsylvania NNP
House NNP
is VBZ
expected VBN
to TO
take VB
up IN
the DT
bill NN
next JJ
Tuesday NNP
-- :
includes VBZ
a DT
provision NN
to TO
ban VB
abortions NNS
after IN
24 CD
weeks NNS
of IN
pregnancy NN
, ,
except VB
to TO
avert VB
the DT
death NN
of IN
the DT
mother NN
. .

Mr. NNP
Freind NNP
calculates VBZ
that IN
the DT
provision NN
, ,
which WDT
attacks VBZ
the DT
trimester NN
standards NNS
that IN
Roe NNP
established VBD
, ,
will MD
`` ``
make VB
it PRP
necessary JJ
'' ''
for IN
the DT
Supreme NNP
Court NNP
to TO
review VB
Roe NNP
and CC
, ,
perhaps RB
, ,
to TO
overturn VB
it PRP
. .

But CC
the DT
Pennsylvania NNP
measure NN
also RB
includes VBZ
an DT
`` ``
informed VBN
consent NN
'' ''
provision NN
that WDT
may MD
become VB
widely RB
imitated VBN
by IN
abortion NN
foes NNS
who WP
want VBP
to TO
make VB
women NNS
contemplating VBG
abortion NN
as RB
uncomfortable JJ
as IN
possible JJ
with IN
the DT
procedure NN
and CC
with IN
themselves PRP
. .

Under IN
this DT
legislation NN
, ,
a DT
woman NN
must MD
be VB
informed VBN
24 CD
hours NNS
before IN
the DT
operation NN
of IN
the DT
details NNS
of IN
the DT
procedure NN
and CC
its PRP$
risks NNS
. .

`` ``
Regardless RB
of IN
whether IN
one CD
supports VBZ
or CC
opposes VBZ
the DT
right NN
to TO
an DT
abortion NN
, ,
'' ''
Mr. NNP
Freind NNP
argues VBZ
, ,
`` ``
it PRP
is VBZ
virtually RB
impossible JJ
for IN
any DT
rational JJ
human JJ
being NN
to TO
disagree VB
with IN
the DT
concept NN
that IN
a DT
woman NN
has VBZ
the DT
right NN
to TO
have VB
all DT
of IN
the DT
appropriate JJ
materials NNS
and CC
advice NN
made VBD
available JJ
to TO
her PRP
before IN
she PRP
makes VBZ
a DT
decision NN
which WDT
, ,
one CD
way NN
or CC
the DT
other NN
, ,
might MD
remain VB
with IN
her PRP
for IN
the DT
rest NN
of IN
her PRP$
life NN
. .
'' ''

In IN
Michigan NNP
, ,
where WRB
the DT
state NN
Senate NNP
is VBZ
expected VBN
to TO
approve VB
parental-consent JJ
legislation NN
by IN
the DT
end NN
of IN
next JJ
week NN
, ,
Gov. NNP
Blanchard NNP
is VBZ
the DT
principal JJ
obstacle NN
for IN
anti-abortionists NNS
. .

Susan NNP
Rogin NNP
, ,
a DT
consultant NN
to TO
abortion-rights NNS
activists NNS
in IN
the DT
state NN
, ,
takes VBZ
comfort NN
from IN
the DT
fact NN
that IN
the DT
state NN
's POS
House NNP
abortion NN
opponents NNS
`` ``
have VBP
n't RB
been VBN
able JJ
to TO
muster VB
the DT
votes NNS
to TO
overturn VB
a DT
veto NN
on IN
abortion NN
in IN
16 CD
years NNS
. .
'' ''

But CC
proponents NNS
believe VBP
they PRP
may MD
be VB
able JJ
to TO
shake VB
enough RB
votes VBZ
loose JJ
to TO
override VB
the DT
veto NN
if IN
they PRP
are VBP
successful JJ
in IN
portraying VBG
the DT
legislation NN
as IN
a DT
matter NN
of IN
parents NNS
' POS
rights NNS
. .

In IN
Illinois NNP
, ,
lawmakers NNS
will MD
vote VB
before IN
next JJ
spring NN
on IN
legislation NN
requiring VBG
physicians NNS
to TO
perform VB
tests NNS
on IN
fetuses NNS
at IN
20 CD
weeks NNS
to TO
determine VB
their PRP$
gestational JJ
age NN
, ,
weight NN
and CC
lung NN
maturity NN
along IN
with IN
a DT
provision NN
requiring VBG
that IN
, ,
if IN
fetuses NNS
survive VBP
an DT
abortion NN
, ,
a DT
second JJ
doctor NN
must MD
be VB
on IN
hand NN
to TO
help VB
it PRP
survive VB
. .

The DT
legislation NN
failed VBN
by IN
one CD
vote NN
to TO
clear VB
the DT
House NNP
Rules NNP
Committee NNP
Tuesday NNP
, ,
but CC
anti-abortionists NNS
still RB
may MD
succeed VB
in IN
bringing VBG
the DT
measure NN
to TO
the DT
floor NN
this DT
fall NN
. .

Pamela NNP
Sutherland NNP
, ,
executive JJ
director NN
of IN
the DT
Illinois NNP
Planned NNP
Parenthood NNP
Council NNP
, ,
says VBZ
she PRP
and CC
her PRP$
allies NNS
are VBP
`` ``
cautiously RB
optimistic JJ
'' ''
they PRP
can MD
defeat VB
it PRP
if IN
it PRP
comes VBZ
to TO
a DT
floor NN
vote NN
. .

Abortion NN
foes NNS
in IN
Wisconsin NNP
, ,
meanwhile RB
, ,
expect VBP
a DT
parental-consent JJ
bill NN
to TO
be VB
sent VBN
to TO
the DT
state NN
assembly NN
floor NN
by IN
early JJ
November NNP
and CC
are VBP
hopeful NN
of IN
prevailing VBG
in IN
both DT
houses NNS
by IN
next JJ
March NNP
. .

In IN
Texas NNP
, ,
abortion NN
opponents NNS
want VBP
to TO
pass VB
parental-consent JJ
legislation NN
along IN
with IN
a DT
statewide JJ
ban NN
on IN
the DT
use NN
of IN
public JJ
funds NNS
, ,
personnel NNS
and CC
facilities NNS
for IN
abortion NN
, ,
and CC
viability NN
tests NNS
for IN
fetuses NNS
19 CD
weeks NNS
and CC
older JJR
. .
The DT
anti-abortionists NNS
are VBP
urging VBG
GOP NNP
Gov. NNP
Bill NNP
Clements NNP
to TO
press VB
the DT
issues NNS
in IN
a DT
special JJ
session NN
scheduled VBN
to TO
run VB
Nov. NNP
14 CD
to TO
Dec. NNP
13 CD
. .

`` ``
The DT
prognosis NN
is VBZ
only RB
fair JJ
, ,
'' ''
says VBZ
Kathie NNP
Roberts NNP
, ,
administrative JJ
director NN
of IN
the DT
Texas NNP
Right NNP
to TO
Life NNP
Committee NNP
. .

`` ``
Next JJ
year NN
is VBZ
an DT
election NN
year NN
and CC
the DT
legislators NNS
just RB
do VBP
n't RB
want VB
to TO
do VB
anything NN
about IN
this DT
now RB
. .
'' ''

This DT
legislative JJ
activity NN
comes VBZ
as IN
both DT
sides NNS
are VBP
undertaking VBG
new JJ
mobilization NN
efforts NNS
, ,
plunging VBG
into IN
gubernatorial JJ
races NNS
in IN
Virginia NNP
and CC
New NNP
Jersey NNP
, ,
and CC
girding VBG
for IN
next JJ
autumn NN
's POS
state NN
elections NNS
. .

At IN
the DT
same JJ
time NN
, ,
abortion NN
foes NNS
have VBP
developed VBN
a DT
national JJ
legislative JJ
strategy NN
, ,
deciding VBG
to TO
move VB
on IN
what WP
Jacki NNP
Ragan NNP
, ,
the DT
National NNP
Right NNP
to TO
Life NNP
Committee NNP
's POS
director NN
of IN
state NN
organizational JJ
development NN
, ,
calls VBZ
`` ``
reasonable JJ
measures NNS
that IN
an DT
overwhelming JJ
mainstream NN
majority NN
of IN
Americans NNPS
support NN
. .
'' ''

These DT
include VBP
bans NNS
on IN
the DT
use NN
of IN
abortion NN
for IN
birth NN
control NN
and CC
sex NN
selection NN
, ,
and CC
the DT
public JJ
funding NN
of IN
alternatives NNS
for IN
abortion NN
. .

`` ``
Those DT
who WP
are VBP
on IN
the DT
other JJ
side NN
can MD
hardly RB
oppose VB
alternative NN
funding NN
if IN
they PRP
continue VBP
to TO
insist VB
on IN
calling VBG
themselves PRP
` ``
pro-choice JJ
' ''
rather RB
than IN
` ``
pro-abortion JJ
, ,
' ''
'' ''
says VBZ
Mary NNP
Spaulding NNP
, ,
the DT
group NN
's POS
associate JJ
state NN
legislative JJ
coordinator NN
. .

Over IN
the DT
weekend NN
, ,
the DT
National NNP
Abortion NNP
Rights NNP
Action NNP
League NNP
singled VBD
out RP
eight CD
politicians NNS
, ,
including VBG
Pennsylvania NNP
's POS
Mr. NNP
Freind NNP
, ,
as IN
1990 CD
targets NNS
and CC
held VBD
a DT
Washington NNP
seminar NN
designed VBN
to TO
train VB
its PRP$
leaders NNS
in IN
political JJ
techniques NNS
, ,
including VBG
how WRB
to TO
put VB
the DT
anti-abortionists NNS
on IN
the DT
defensive NN
in IN
state NN
legislatures NNS
. .

`` ``
We PRP
now RB
see VBP
pro-choice JJ
legislators NNS
going VBG
on IN
the DT
offensive NN
for IN
the DT
first JJ
time NN
, ,
'' ''
says VBZ
Kate NNP
Michelman NNP
, ,
executive JJ
director NN
of IN
the DT
group NN
. .

Wall NNP
Street NNP

When WRB
I PRP
was VBD
just RB
a DT
child NN
And CC
confronted VBN
by IN
my PRP$
fears NNS
, ,
The DT
things NNS
that IN
I PRP
thought VBD
would MD
get VB
me PRP
Had VBD
fangs NNS
and CC
pointed VBD
ears NNS
. .

Nothing NN
much NN
has VBZ
changed VBN
-- :
My PRP$
periodic JJ
scares NNS
Are VBP
still RB
from IN
hostile JJ
animals NNS
, ,
Only RB
now RB
, ,
they PRP
're VBP
bulls NNS
and CC
bears VBZ
. .

-- :
Pat NNP
D'Amico NNP
. .

Daffynition NN

Trained VBN
dolphins NNS
: :
pur-poises NNS
. .

-- :
Marrill NNP
J. NNP
Pederson NNP
. .

This DT
maker NN
and CC
marketer NN
of IN
cartridge NN
tape NN
systems NNS
said VBD
it PRP
completed VBD
the DT
sale NN
of IN
2.85 CD
million CD
shares NNS
of IN
common JJ
priced VBN
at IN
$ $
10 CD
a DT
share NN
in IN
an DT
initial JJ
public JJ
offering NN
. .

The DT
company NN
said VBD
that IN
it PRP
is VBZ
selling VBG
two CD
million CD
shares NNS
and CC
that IN
the DT
rest NN
are VBP
being VBG
sold VBN
by IN
certain JJ
stockholders NNS
. .

Proceeds NNS
will MD
be VB
used VBN
for IN
capital NN
expenditures NNS
and CC
working VBG
capital NN
. .

Goldman NNP
, ,
Sachs NNP
& CC
Co. NNP
and CC
Montgomery NNP
Securities NNP
Inc. NNP
are VBP
co-managing JJ
the DT
offering NN
. .

Congress NNP
sent VBD
President NNP
Bush NNP
an DT
$ $
18.4 CD
billion CD
fiscal JJ
1990 CD
Treasury NNP
and CC
Postal NNP
Service NNP
bill NN
providing VBG
$ $
5.5 CD
billion CD
for IN
the DT
Internal NNP
Revenue NNP
Service NNP
and CC
increasing VBG
the DT
Customs NNP
Service NNP
's POS
air-interdiction NN
program NN
nearly RB
a DT
third JJ
. .

Final JJ
approval NN
came VBD
on IN
a DT
simple JJ
voice NN
vote NN
in IN
the DT
Senate NNP
, ,
and CC
the DT
swift JJ
passage NN
contrasted VBN
with IN
months NNS
of IN
negotiations NNS
over IN
the DT
underlying VBG
bill NN
which WDT
is VBZ
laced VBN
with IN
special-interest JJ
provisions NNS
for IN
both DT
members NNS
and CC
the DT
executive JJ
branch NN
. .

An DT
estimated VBN
$ $
33 CD
million CD
was VBD
added VBN
for IN
university NN
and CC
science NN
grants NNS
, ,
including VBG
$ $
1.5 CD
million CD
for IN
Smith NNP
College NNP
. .

And CC
Southwest NNP
lawmakers NNS
were VBD
a DT
driving VBG
force NN
behind IN
$ $
54.6 CD
million CD
for IN
U.S.-Mexico JJ
border NN
facilities NNS
, ,
or CC
more JJR
than IN
double VB
the DT
administration NN
's POS
request NN
. .

More RBR
than IN
$ $
1.8 CD
million CD
is VBZ
allocated VBN
for IN
pensions NNS
and CC
expenses NNS
for IN
former JJ
presidents NNS
, ,
and CC
the DT
budget NN
for IN
the DT
official JJ
residence NN
of IN
Vice NNP
President NNP
Quayle NNP
is VBZ
more RBR
than IN
doubled VBN
, ,
with IN
$ $
200,000 CD
designated VBN
for IN
improvements NNS
to TO
the DT
property NN
. .

Even RB
the DT
Office NNP
of IN
Management NNP
and CC
Budget NNP
is VBZ
remembered VBN
with IN
an DT
extra JJ
$ $
1 CD
million CD
to TO
help VB
offset VB
pay NN
costs NNS
that IN
other JJ
government NN
departments NNS
are VBP
being VBG
asked VBN
to TO
absorb VB
. .

Within IN
the DT
IRS NNP
, ,
nearly RB
$ $
1.95 CD
billion CD
is VBZ
provided VBN
for IN
processing NN
tax NN
returns NNS
, ,
a DT
12 CD
% NN
increase NN
over IN
fiscal JJ
1989 CD
and CC
double JJ
what WP
the DT
government NN
was VBD
spending VBG
five CD
years NNS
ago RB
. .

Investigation NNP
and CC
taxpayer NN
service NN
accounts NNS
would MD
grow VB
to TO
$ $
1.6 CD
billion CD
, ,
and CC
Congress NNP
specifically RB
added VBD
$ $
7.4 CD
million CD
for IN
stepped VBN
up IN
criminal JJ
investigations NNS
of IN
money NN
laundering NN
related VBN
to TO
drug NN
traffic NN
. .

The DT
large JJ
increase NN
in IN
Customs NNP
Service NNP
air-interdiction NN
funds NNS
is VBZ
also RB
intended VBN
to TO
counter VB
smuggling VBG
, ,
and CC
the DT
annual JJ
appropriations NNS
level VBP
has VBZ
more RBR
than IN
quadrupled VBN
in IN
five CD
years NNS
. .

The DT
$ $
196.7 CD
million CD
provided VBN
for IN
fiscal JJ
1990 CD
anticipates VBZ
the DT
purchase NN
of IN
a DT
Lockheed NNP
P-3 NN
surveillance NN
aircraft NN
and CC
five CD
Cessna NNP
Citation NNP
II NNP
jets NNS
. .

Despite IN
administration NN
reservations NNS
, ,
the DT
plan NN
has VBZ
had VBN
the DT
quiet JJ
backing NN
of IN
customs NNS
officials NNS
as RB
well RB
as IN
influential JJ
lawmakers NNS
from IN
Cessna NNP
's POS
home NN
state NN
, ,
Kansas NNP
. .

Among IN
legislative JJ
provisions NNS
attached VBN
to TO
the DT
bill NN
is VBZ
a DT
ban NN
on IN
any DT
Treasury NNP
Department NNP
expenditure NN
for IN
enforcement NN
of IN
a DT
1986 CD
tax NN
provision NN
intended VBN
to TO
counter VB
discrimination NN
in IN
employee-benefit JJ
plans NNS
. .

Small-business NN
interests NNS
have VBP
lobbied VBN
against IN
the DT
so-called JJ
Section NN
89 CD
tax NN
rules NNS
. .

Repeal NN
is VBZ
considered VBN
likely JJ
now RB
, ,
but CC
the DT
Treasury NNP
Department NNP
bill NN
has VBZ
been VBN
used VBN
as IN
a DT
vehicle NN
to TO
raise VB
the DT
profile NN
of IN
the DT
issue NN
and CC
block VB
any DT
action NN
in IN
the DT
interim NN
. .

Less RBR
noticed VBD
is VBZ
a DT
bit NN
of IN
legislative JJ
legerdemain NN
by IN
Houston NNP
Republicans NNPS
on IN
behalf NN
of IN
HEI NNP
Corp. NNP
of IN
Texas NNP
to TO
retroactively RB
`` ``
move NN
'' ''
a DT
Missouri NNP
hospital NN
from IN
one CD
county NN
to TO
the DT
next JJ
to TO
justify VB
higher JJR
Medicare NNP
reimbursements NNS
. .

The DT
provision NN
seeks VBZ
to TO
wipe VB
out RP
an DT
estimated VBN
$ $
1.4 CD
million CD
in IN
claims NNS
made VBN
by IN
the DT
Health NNP
Care NNP
Finance NNP
Administration NNP
against IN
HEI NNP
, ,
which WDT
owned VBD
the DT
hospital NN
in IN
Sullivan NNP
, ,
Mo. NNP
, ,
during IN
most RBS
of IN
the DT
four-year JJ
period NN
-- :
1983-1987 CD
-- :
covered VBN
in IN
the DT
amendment NN
. .

In IN
a DT
separate JJ
development NN
, ,
a DT
private JJ
meeting NN
is VBZ
scheduled VBN
this DT
morning NN
between IN
House NNP
Appropriations NNP
Committee NNP
Chairman NNP
Jamie NNP
Whitten NNP
-LRB- (
D. NNP
, ,
Miss NNP
. .
-RRB- )
and CC
Sen. NNP
Dale NNP
Bumpers NNP
-LRB- (
D. NNP
, ,
Ark NNP
. .
-RRB- )
in IN
an DT
effort NN
to TO
end VB
a DT
dispute NN
which WDT
for IN
two CD
weeks NNS
has VBZ
delayed VBN
action NN
on IN
an DT
estimated VBN
$ $
44 CD
billion CD
agriculture NN
bill NN
. .

A DT
House-Senate NNP
conference NN
reached VBD
agreement NN
Oct. NNP
5 NN
on IN
virtually RB
all DT
major JJ
provisions NNS
of IN
the DT
bill NN
, ,
but CC
final JJ
settlement NN
has VBZ
been VBN
stalled VBN
because IN
of IN
differences NNS
between IN
the DT
two CD
men NNS
over IN
the DT
fate NN
of IN
a DT
modest JJ
Arkansas-based JJ
program NN
to TO
provide VB
technical JJ
information NN
to TO
farmers NNS
seeking VBG
to TO
reduce VB
their PRP$
dependence NN
on IN
chemical NN
fertilizers NNS
and CC
pesticides NNS
. .

The DT
program NN
's POS
nonprofit JJ
sponsors NNS
received VBD
$ $
900,000 CD
in IN
fiscal JJ
1989 CD
through IN
an DT
Extension NNP
Service NNP
grant NN
, ,
but CC
Mr. NNP
Whitten NNP
has VBZ
been VBN
adamant JJ
in IN
insisting VBG
that IN
the DT
program NN
be VB
cut VBN
in IN
1990 CD
. .

The DT
79-year-old NNP
Mississippian NNP
takes VBZ
a DT
more RBR
orthodox JJ
, ,
entrenched VBN
view NN
of IN
agriculture NN
policy NN
than IN
those DT
in NN
the DT
movement NN
to TO
reduce VB
chemical NN
use NN
, ,
but CC
as IN
a DT
master NN
of IN
pork-barrel JJ
politics NNS
, ,
he PRP
is VBZ
believed VBN
to TO
be VB
annoyed VBN
as IN
well RB
that IN
the DT
project NN
moved VBD
to TO
Arkansas NNP
from IN
a DT
Tennessee NNP
center NN
near IN
Memphis NNP
and CC
the DT
northern JJ
Mississippi NNP
border NN
. .

Michael NNP
F. NNP
Klatman NNP
, ,
director NN
of IN
corporate JJ
public JJ
relations NNS
at IN
Data NNP
General NNP
Corp. NNP
, ,
was VBD
named VBN
to TO
the DT
new JJ
position NN
of IN
vice NN
president NN
, ,
corporate JJ
communications NNS
, ,
of IN
this DT
maker NN
of IN
data NNS
storage NN
equipment NN
. .

B.A.T NNP
Industries NNP
PLC NNP
may MD
delay VB
aspects NNS
of IN
its PRP$
defensive JJ
restructuring NN
plan NN
-- :
including VBG
the DT
sale NN
of IN
its PRP$
Saks NNP
Fifth NNP
Avenue NNP
and CC
Marshall NNP
Field NNP
units NNS
-- :
in IN
the DT
wake NN
of IN
the DT
current JJ
upheaval NN
in IN
financial JJ
markets NNS
, ,
company NN
officials NNS
said VBD
. .

The DT
British JJ
conglomerate NN
, ,
planning VBG
its PRP$
own JJ
defensive JJ
restructuring NN
to TO
fight VB
off IN
a DT
# #
13.35 CD
billion CD
-LRB- (
$ $
21.03 CD
billion CD
-RRB- )
takeover NN
bid NN
by IN
Anglo-French JJ
financier NN
Sir NNP
James NNP
Goldsmith NNP
, ,
intends VBZ
to TO
press VB
ahead RB
with IN
an DT
extraordinary JJ
shareholder NN
vote NN
today NN
to TO
clear VB
the DT
way NN
for IN
its PRP$
value-boosting JJ
measures NNS
. .

If IN
anything NN
, ,
the DT
gyrations NNS
in IN
world NN
stock NN
markets NNS
-- :
and CC
in IN
B.A.T NNP
's POS
share NN
price NN
-- :
since IN
last JJ
Friday NNP
's POS
sharp JJ
Wall NNP
Street NNP
sell-off NN
have VBP
increased VBN
the DT
likelihood NN
of IN
shareholder NN
approval NN
for IN
the DT
restructuring NN
, ,
analysts NNS
and CC
several JJ
big JJ
institutional JJ
holders NNS
said VBD
. .

`` ``
Thank VB
God NNP
we PRP
have VBP
some DT
deal NN
on IN
the DT
table NN
, ,
'' ''
said VBD
Stewart NNP
Gilchrist NNP
, ,
a DT
director NN
at IN
Scottish NNP
Amicable NNP
Investment NNP
Managers NNS
, ,
which WDT
intends VBZ
to TO
vote VB
its PRP$
roughly RB
1 CD
% NN
stake NN
in IN
favor NN
of IN
the DT
restructuring NN
. .

Investors NNS
in IN
B.A.T NNP
have VBP
been VBN
on IN
a DT
roller NN
coaster NN
. .

B.A.T NNP
has VBZ
been VBN
London NNP
's POS
best-performing JJ
blue JJ
chip NN
over IN
the DT
past JJ
six CD
months NNS
, ,
up IN
40 CD
% NN
against IN
a DT
4 CD
% NN
rise NN
in IN
the DT
Financial NNP
Times NNP
100-Share NNP
Index NNP
. .

But CC
this DT
week NN
, ,
B.A.T NNP
has VBZ
been VBN
hit VBN
harder JJR
than IN
other JJ
big JJ
U.K. NNP
stocks NNS
-- :
first JJ
by IN
the DT
market NN
gyrations NNS
, ,
then RB
by IN
Tuesday NNP
's POS
San NNP
Francisco NNP
earthquake NN
, ,
which WDT
could MD
leave VB
B.A.T NNP
's POS
Farmers NNP
Group NNP
Inc. NNP
insurance NN
unit NN
facing VBG
big JJ
claims NNS
. .

B.A.T NNP
rose VBD
five CD
pence NN
-LRB- (
eight CD
cents NNS
-RRB- )
to TO
756 CD
pence NN
-LRB- (
$ $
11.91 CD
-RRB- )
in IN
London NNP
yesterday NN
as IN
a DT
late JJ
market NN
rally NN
erased VBD
a DT
28-pence JJ
fall NN
earlier RBR
in IN
the DT
day NN
. .

To TO
fight VB
off IN
predators NNS
, ,
B.A.T NNP
plans VBZ
to TO
spin VB
off IN
about RB
$ $
6 CD
billion CD
in IN
assets NNS
, ,
largely RB
by IN
selling VBG
such JJ
U.S. NNP
retailing NN
units NNS
as IN
Marshall NNP
Field NNP
and CC
Saks NNP
and CC
by IN
floating VBG
its PRP$
big JJ
paper NN
and CC
U.K. NNP
retailing NN
business NN
via IN
share NN
issues NNS
to TO
existing VBG
holders NNS
. .

Proceeds NNS
will MD
help VB
pay VB
for IN
a DT
planned VBN
buy-back NN
of IN
10 CD
% NN
of IN
its PRP$
shares NNS
and CC
a DT
50 CD
% NN
dividend NN
increase NN
. .

`` ``
I PRP
think VBP
the DT
restructuring NN
will MD
get VB
the DT
required VBN
support NN
, ,
'' ''
said VBD
Michael NNP
Pacitti NNP
, ,
an DT
analyst NN
at IN
London NNP
stockbroker NN
UBS NNP
Phillips NNP
& CC
Drew NNP
. .

`` ``
The DT
shareholders NNS
effectively RB
will MD
support VB
the DT
share NN
price NN
by IN
clearing VBG
the DT
share NN
buy-back NN
. .
'' ''

But CC
B.A.T NNP
's POS
restructuring NN
, ,
which WDT
was VBD
never RB
going VBG
to TO
happen VB
quickly RB
, ,
now RB
will MD
take VB
longer RB
because IN
of IN
the DT
market NN
upheaval NN
. .

Company NN
officials NNS
, ,
holders NNS
and CC
analysts NNS
who WP
previously RB
expected VBN
the DT
disposals NNS
to TO
be VB
substantially RB
complete JJ
by IN
the DT
end NN
of IN
next JJ
year NN
's POS
first JJ
half NN
now RB
say VBP
the DT
market NN
gyrations NNS
could MD
delay VB
the DT
actions NNS
well RB
into IN
the DT
second JJ
half NN
. .

`` ``
We PRP
are VBP
n't RB
forced VBN
sellers NNS
. .

We PRP
do VBP
n't RB
have VB
an DT
absolute JJ
deadline NN
and CC
if IN
market NN
conditions NNS
are VBP
truly RB
awful JJ
we PRP
might MD
decide VB
it PRP
is VBZ
not RB
the DT
right JJ
time NN
, ,
'' ''
to TO
take VB
particular JJ
steps NNS
, ,
said VBD
Michael NNP
Prideaux NNP
, ,
a DT
B.A.T NNP
spokesman NN
. .

Even RB
if IN
B.A.T NNP
receives VBZ
approval NN
for IN
the DT
restructuring NN
, ,
the DT
company NN
will MD
remain VB
in IN
play NN
, ,
say VBP
shareholders NNS
and CC
analysts NNS
, ,
though IN
the DT
situation NN
may MD
unfold VB
over IN
the DT
next JJ
12 CD
months NNS
, ,
rather RB
than IN
six CD
. .

The DT
new JJ
B.A.T NNP
will MD
be VB
a DT
smaller JJR
tobacco NN
and CC
financial-services NNS
hybrid JJ
whose WP$
price-earnings JJ
ratio NN
may MD
more RBR
closely RB
reflect VB
the DT
lower-growth JJ
tobacco NN
business NN
than IN
the DT
higher-multiple JJ
financial-services NNS
business NN
, ,
these DT
holders NNS
believe VBP
. .

Thus RB
B.A.T NNP
's POS
restructuring NN
may MD
only RB
make VB
the DT
company NN
a DT
more RBR
manageable JJ
target NN
for IN
other JJ
corporate JJ
predators NNS
-- :
possibly RB
such JJ
acquisitive JJ
bidders NNS
as IN
Hanson NNP
PLC NNP
. .

`` ``
The DT
last JJ
few JJ
days NNS
will MD
surely RB
slow JJ
down RP
the DT
pace NN
of IN
events NNS
, ,
'' ''
says VBZ
Scottish NNP
Amicable NNP
's POS
Mr. NNP
Gilchrist NNP
. .

`` ``
But CC
I PRP
would MD
n't RB
write VB
off IN
'' ''
Sir NNP
James NNP
or CC
other JJ
potential JJ
bidders NNS
. .

Among IN
possible JJ
delays NNS
, ,
the DT
sales NNS
of IN
Saks NNP
and CC
Marshall NNP
Field NNP
-- :
which WDT
were VBD
expected VBN
to TO
be VB
on IN
the DT
block NN
soon RB
after IN
the DT
crucial JJ
Christmas NNP
season NN
-- :
may MD
slide VB
into IN
the DT
second JJ
quarter NN
or CC
second JJ
half NN
. .

Analysts NNS
estimate VBP
that IN
sales NNS
of IN
the DT
two CD
businesses NNS
could MD
raise VB
roughly RB
$ $
2 CD
billion CD
. .

B.A.T NNP
is VBZ
n't RB
predicting VBG
a DT
postponement NN
because IN
the DT
units NNS
`` ``
are VBP
quality NN
businesses NNS
and CC
we PRP
are VBP
encouraged VBN
by IN
the DT
breadth NN
of IN
inquiries NNS
, ,
'' ''
said VBD
Mr. NNP
Prideaux NNP
. .

But CC
the DT
delay NN
could MD
happen VB
if IN
B.A.T NNP
does VBZ
n't RB
get VB
adequate JJ
bids NNS
, ,
he PRP
said VBD
. .

People NNS
familiar JJ
with IN
B.A.T NNP
say VBP
possible JJ
acquirers NNS
for IN
the DT
units NNS
include VBP
managers NNS
from IN
both DT
retailing NN
chains NNS
, ,
and CC
General NNP
Cinema NNP
Corp. NNP
, ,
which WDT
is VBZ
interested JJ
in IN
bidding NN
for IN
Saks NNP
. .

Other JJ
potential JJ
bidders NNS
for IN
parts NNS
of IN
B.A.T NNP
's POS
U.S. NNP
retail JJ
unit NN
include VBP
Dillard NNP
Department NNP
Stores NNP
Inc. NNP
, ,
May NNP
Department NNP
Stores NNP
Co. NNP
and CC
Limited NNP
Inc NNP
. .

B.A.T NNP
has VBZ
declined VBN
to TO
identify VB
the DT
potential JJ
bidders NNS
. .

Though IN
Sir NNP
James NNP
has VBZ
said VBD
he PRP
intends VBZ
to TO
mount VB
a DT
new JJ
bid NN
for IN
B.A.T NNP
once RB
approval NN
from IN
U.S. NNP
insurance NN
regulators NNS
is VBZ
received VBN
, ,
jitters NNS
over IN
prospects NNS
for IN
junk-bond NN
financing NN
and CC
U.S. NNP
leverage NN
buy-outs NNS
are VBP
making VBG
investors NNS
more RBR
skeptical JJ
about IN
Sir NNP
James NNP
's POS
prospects NNS
. .

His PRP$
initial JJ
offer NN
indicated VBD
he PRP
needed VBD
to TO
raise VB
as RB
much JJ
as IN
80 CD
% NN
of IN
the DT
takeover NN
financing NN
through IN
the DT
debt NN
markets NNS
. .

Market NN
uncertainty NN
also RB
clouds VBZ
the DT
outlook NN
for IN
B.A.T NNP
's POS
attracting VBG
a DT
premium NN
price NN
for IN
its PRP$
U.S. NNP
retailing NN
properties NNS
. .

Finally RB
, ,
Tuesday NNP
's POS
California NNP
earthquake NN
initially RB
knocked VBD
3.7 CD
% NN
off IN
B.A.T NNP
's POS
share NN
price NN
in IN
London NNP
yesterday NN
because IN
of IN
fears NNS
of IN
the DT
potential JJ
claims NNS
to TO
Los NNP
Angeles-based JJ
Farmers NNP
, ,
which WDT
has VBZ
a DT
substantial JJ
portion NN
of IN
its PRP$
property NN
and CC
casualty NN
exposure NN
in IN
California NNP
. .

On IN
Farmers NNP
, ,
Mr. NNP
Prideaux NNP
said VBD
it PRP
is VBZ
too RB
early JJ
to TO
quantify VB
the DT
level NN
of IN
potential JJ
claims NNS
. .

He PRP
added VBD
B.A.T NNP
`` ``
has VBZ
no DT
expectation NN
of IN
a DT
material NN
impact NN
on IN
Farmers NNP
. .

Bridge NNP
and CC
highway NN
collapses VBZ
will MD
disrupt VB
truck NN
and CC
auto NN
transportation NN
in IN
the DT
San NNP
Francisco NNP
Bay NNP
area NN
for IN
months NNS
to TO
come VB
. .

But CC
rail NN
, ,
air NN
and CC
ocean-shipping NN
links NNS
to TO
the DT
area NN
escaped VBD
Tuesday NNP
's POS
earthquake NN
with IN
only RB
minor JJ
damage NN
, ,
and CC
many JJ
are VBP
expected VBN
to TO
be VB
operating VBG
normally RB
today NN
, ,
government NN
and CC
corporate JJ
transport NN
officials NNS
said VBD
. .

Air NN
traffic NN
at IN
San NNP
Francisco NNP
International NNP
Airport NNP
was VBD
running VBG
about IN
50 CD
% NN
of IN
normal JJ
yesterday NN
afternoon NN
, ,
but CC
airport NN
officals NNS
said VBD
they PRP
expect VBP
a DT
return NN
to TO
full JJ
operations NNS
by IN
Saturday NNP
. .

The DT
major JJ
gateway NN
to TO
Asia NNP
and CC
one CD
of IN
the DT
nation NN
's POS
10 CD
busiest JJS
airports NNS
was VBD
closed VBN
to TO
all DT
but CC
emergency NN
traffic NN
from IN
the DT
time NN
the DT
quake NN
hit VBD
Tuesday NNP
afternoon NN
, ,
until IN
6 CD
a.m. NN
PDT NNP
yesterday NN
when WRB
controllers NNS
returned VBD
to TO
the DT
tower NN
. .

Getting VBG
to TO
and CC
from IN
the DT
airport NN
in IN
coming VBG
weeks NNS
may MD
be VB
the DT
problem NN
, ,
however RB
. .

`` ``
People NNS
's POS
ability NN
to TO
drive VB
throughout IN
the DT
bay NN
area NN
is VBZ
greatly RB
restricted VBN
, ,
'' ''
said VBD
a DT
spokesman NN
for IN
the DT
American NNP
Automobile NNP
Association NNP
. .

Tom NNP
Schumacher NNP
, ,
executive JJ
vice NN
president NN
and CC
general JJ
manager NN
of IN
the DT
California NNP
Trucking NNP
Association NNP
in IN
Sacremento NNP
, ,
said VBD
his PRP$
organization NN
urged VBD
trucking NN
firms NNS
to TO
halt VB
all DT
deliveries NNS
into IN
the DT
Bay NNP
area NN
yesterday NN
, ,
except IN
for IN
emergency-medical JJ
supplies NNS
. .

`` ``
Some DT
foodstuff NN
shipments NNS
will MD
probably RB
resume VB
Thursday NNP
, ,
'' ''
he PRP
said VBD
. .

`` ``
Right RB
now RB
most RBS
of IN
the DT
roads NNS
into IN
the DT
Bay NNP
area NN
are VBP
closed VBN
, ,
but CC
the DT
list NN
of IN
closings NNS
changes NNS
about IN
every DT
20 CD
minutes NNS
. .

This DT
-LCB- (
Wednesday NNP
-RCB- )
morning NN
the DT
San NNP
Mateo NNP
bridge NN
was VBD
open JJ
and CC
now RB
we PRP
are VBP
informed VBN
that IN
it PRP
is VBZ
closed VBN
, ,
'' ''
Mr. NNP
Schumacher NNP
said VBD
. .
United NNP
Parcel NNP
Service NNP
, ,
Greenwich NNP
, ,
Conn. NNP
, ,
said VBD
its PRP$
operations NNS
in IN
the DT
San NNP
Francisco NNP
area NN
have VBP
been VBN
reduced VBN
to TO
40 CD
% NN
of IN
normal JJ
. .

A DT
UPS NNP
spokesman NN
said VBD
that IN
although IN
none NN
of IN
the DT
company NN
's POS
terminals NNS
, ,
trucks NNS
or CC
airplanes NNS
were VBD
damaged VBN
in IN
the DT
quake NN
, ,
road NN
shutdowns NNS
and CC
power NN
failures NNS
have VBP
impeded VBN
its PRP$
pickup NN
and CC
delivery NN
of IN
packages NNS
. .

The DT
spokesman NN
noted VBD
four-hour JJ
to TO
five-hour JJ
traffic NN
delays NNS
on IN
the DT
San NNP
Mateo NNP
bridge NN
, ,
for IN
example NN
. .

In IN
addition NN
, ,
power NN
failures NNS
prevented VBD
its PRP$
package-sorting NN
facilities NNS
from IN
operating VBG
, ,
causing VBG
delays NNS
. .

But CC
freight NN
railroads NNS
reported VBD
that DT
damage NN
to TO
their PRP$
facilities NNS
was VBD
relatively RB
minor JJ
, ,
with IN
Santa NNP
Fe NNP
Pacific NNP
Corp. NNP
's POS
rail NN
unit NN
the DT
least RBS
affected VBN
by IN
the DT
quake NN
. .

Santa NNP
Fe NNP
stopped VBD
freight NN
trains NNS
Tuesday NNP
night NN
while IN
its PRP$
officials NNS
inspected VBD
track NN
but CC
resumed VBD
service NN
at IN
10:45 CD
p.m. NN
when WRB
they PRP
found VBD
no DT
damage NN
. .

Union NNP
Pacific NNP
Corp. NNP
's POS
rail NN
unit NN
said VBD
that IN
except IN
for IN
damage NN
to TO
shipping VBG
containers NNS
in IN
its PRP$
Oakland NNP
yard NN
, ,
its PRP$
track NN
, ,
bridges NNS
and CC
structures NNS
were VBD
unharmed JJ
. .

That DT
railroad NN
is VBZ
operating VBG
trains NNS
but CC
with IN
delays NNS
caused VBN
by IN
employees NNS
unable JJ
to TO
get VB
to TO
work VB
. .

Southern NNP
Pacific NNP
Transportation NNP
Co. NNP
, ,
the DT
hardest JJS
hit VBD
of IN
the DT
three CD
railroads NNS
in IN
the DT
Bay NNP
area NN
, ,
said VBD
service NN
on IN
its PRP$
north-south JJ
coastline NN
, ,
which WDT
is VBZ
used VBN
by IN
an DT
Amtrak NNP
train NN
between IN
Los NNP
Angeles NNP
and CC
Seattle NNP
, ,
was VBD
suspended VBN
temporarily RB
because IN
of IN
kinked JJ
rails NNS
near IN
the DT
epicenter NN
of IN
the DT
quake NN
. .

But CC
service NN
on IN
the DT
line NN
is VBZ
expected VBN
to TO
resume VB
by IN
noon NN
today NN
. .

`` ``
We PRP
had VBD
no DT
serious JJ
damage NN
on IN
the DT
railroad NN
, ,
'' ''
said VBD
a DT
Southern NNP
Pacific NNP
spokesman NN
. .

`` ``
We PRP
have VBP
no DT
problem NN
to TO
our PRP$
freight NN
service NN
at IN
all DT
expect VBP
for IN
the DT
fact NN
businesses NNS
are VBP
shut VBN
down RB
. .
'' ''

Amtrak NNP
said VBD
it PRP
suspended VBD
train NN
service NN
into IN
its PRP$
Oakland NNP
station NN
, ,
which WDT
sustained VBD
`` ``
heavy JJ
structural JJ
damage NN
'' ''
during IN
the DT
quake NN
. .

The DT
passenger NN
railroad NN
said VBD
it PRP
terminated VBD
some DT
runs VBZ
in IN
Sacramento NNP
, ,
relying VBG
on IN
buses NNS
to TO
ferry VB
passengers NNS
to TO
the DT
Bay NNP
area NN
. .

Amtrak NNP
said VBD
it PRP
planned VBD
to TO
resume VB
some DT
train NN
operations NNS
to TO
Oakland NNP
late JJ
yesterday NN
. .

Rail-transit NN
operations NNS
suffered VBD
little JJ
damage NN
, ,
according VBG
to TO
Albert NNP
Engelken NNP
, ,
deputy NN
executive JJ
director NN
of IN
the DT
American NNP
Public NNP
Transit NNP
Association NNP
in IN
Washington NNP
. .

The DT
Bay NNP
Area NNP
Rapid NNP
Transit NNP
`` ``
withstood VBD
the DT
earthquake NN
perfectly RB
, ,
'' ''
said VBD
Mr. NNP
Engelken NNP
, ,
adding VBG
that IN
the DT
rail NN
system NN
was VBD
running VBG
a DT
full JJ
fleet NN
of IN
45 CD
trains NNS
during IN
the DT
day NN
to TO
provide VB
an DT
alternative NN
for IN
highway NN
travelers NNS
. .

`` ``
The DT
highway NN
system NN
is VBZ
screwed VBN
up IN
'' ''
by IN
the DT
earthquake NN
, ,
Mr. NNP
Engelken NNP
said VBD
. .

`` ``
The DT
transit NN
system NN
is VBZ
how WRB
people NNS
are VBP
going VBG
to TO
be VB
getting VBG
around IN
. .
'' ''

He PRP
added VBD
that IN
San NNP
Francisco NNP
's POS
trolley NN
cars NNS
and CC
trolley NN
buses NNS
were VBD
also RB
running VBG
at IN
full JJ
service NN
levels NNS
. .

Although IN
air-traffic NN
delays NNS
in IN
San NNP
Francisco NNP
were VBD
significant JJ
yesterday NN
, ,
they PRP
did VBD
n't RB
appear VB
to TO
spread VB
to TO
other JJ
airports NNS
. .

The DT
earthquake NN
shattered VBD
windows NNS
at IN
San NNP
Francisco NNP
International NNP
's POS
air-traffic NN
control NN
tower NN
and CC
rained VBD
pieces NNS
of IN
the DT
ceiling NN
down RB
on IN
controllers NNS
, ,
three CD
of IN
whom WP
suffered VBD
minor JJ
injuries NNS
. .

Terminals NNS
at IN
San NNP
Francisco NNP
International NNP
also RB
were VBD
damaged VBN
, ,
but CC
the DT
tower NN
itself PRP
was VBD
intact JJ
. .

Tuesday NNP
night NN
, ,
thousands NNS
were VBD
diverted VBN
to TO
other JJ
airports NNS
and CC
had VBD
to TO
wait VB
a DT
day NN
to TO
resume VB
travel NN
. .

Runways NNS
at IN
San NNP
Francisco NNP
were VBD
n't RB
damaged VBN
, ,
but CC
traffic NN
was VBD
being VBG
limited JJ
yesterday NN
to TO
27 CD
arrivals NNS
and CC
27 CD
departures NNS
an DT
hour NN
-- :
down RB
from IN
33 CD
to TO
45 CD
an DT
hour NN
normally RB
-- :
mainly RB
because IN
the DT
noise NN
level NN
in IN
the DT
control NN
tower NN
was VBD
overwhelming JJ
without IN
the DT
windows NNS
, ,
an DT
FAA NNP
spokeswoman NN
said VBD
. .

While IN
the DT
airport NN
was VBD
closed VBN
, ,
flights NNS
were VBD
diverted VBN
to TO
airports NNS
in IN
Sacramento NNP
and CC
Stockton NNP
, ,
Calif. NNP
; :
Reno NNP
and CC
Las NNP
Vegas NNP
, ,
Nev. NNP
; :
and CC
Los NNP
Angeles NNP
. .

United NNP
Airlines NNPS
, ,
the DT
largest JJS
carrier NN
at IN
San NNP
Francisco NNP
, ,
was VBD
operating VBG
only RB
50 CD
% NN
of IN
its PRP$
scheduled VBN
service NN
in IN
and CC
out IN
of IN
the DT
area NN
because IN
of IN
damage NN
to TO
its PRP$
terminal NN
, ,
which WDT
in IN
turn NN
was VBD
causing VBG
delays NNS
for IN
travelers NNS
headed VBN
to TO
the DT
Bay NNP
area NN
. .

A DT
United NNP
spokesman NN
said VBD
14 CD
of IN
its PRP$
21 CD
gates NNS
were VBD
unusable JJ
, ,
mainly RB
because IN
of IN
water NN
damage NN
caused VBN
when WRB
a DT
sprinkler NN
system NN
was VBD
triggered VBN
by IN
the DT
tremors NNS
. .

The DT
United NNP
spokesman NN
said VBD
none NN
of IN
its PRP$
people NNS
were VBD
injured VBN
at IN
the DT
airport NN
; :
in IN
fact NN
, ,
as IN
the DT
airport NN
was VBD
being VBG
evacuated VBN
Tuesday NNP
night NN
, ,
two CD
babies NNS
were VBD
born VBN
. .

Yesterday NN
, ,
the DT
United NNP
ticket NN
counter NN
was VBD
active JJ
, ,
with IN
people NNS
trying VBG
to TO
get VB
flights NNS
out IN
, ,
but CC
the DT
airline NN
said VBD
demand NN
for IN
seats NNS
into IN
the DT
city NN
also RB
was VBD
active JJ
, ,
with IN
people NNS
trying VBG
to TO
get VB
there EX
to TO
help VB
family NN
and CC
friends NNS
. .

The DT
airports NNS
in IN
San NNP
Jose NNP
and CC
Oakland NNP
were VBD
both DT
fully RB
operational JJ
by IN
noon NN
yesterday NN
, ,
the DT
Federal NNP
Aviation NNP
Administration NNP
said VBD
. .

In IN
terms NNS
of IN
diversions NNS
, ,
Denver NNP
's POS
Stapleton NNP
International NNP
may MD
have VB
experienced VBN
the DT
most RBS
far-flung JJ
: :
A DT
United NNP
flight NN
from IN
Japan NNP
was VBD
rerouted VBN
there RB
. .

`` ``
I PRP
think VBP
that DT
's VBZ
the DT
first JJ
nonstop JJ
commercial JJ
passenger NN
flight NN
from IN
Japan NNP
to TO
land VB
here RB
, ,
'' ''
an DT
airport NN
spokesman NN
said VBD
. .

A DT
Japan NNP
Air NNP
Lines NNPS
spokesman NN
said VBD
its PRP$
flights NNS
into IN
and CC
out IN
of IN
San NNP
Francisco NNP
were VBD
n't RB
affected VBN
, ,
but CC
getting VBG
information NN
about IN
its PRP$
operations NNS
was VBD
difficult JJ
. .

Its PRP$
telecommunications NNS
headquarters NN
in IN
Burlingame NNP
, ,
Calif. NNP
, ,
had VBD
been VBN
knocked VBN
out IN
since IN
the DT
quake NN
. .

`` ``
We PRP
're VBP
in IN
the DT
dark NN
, ,
'' ''
he PRP
said VBD
. .

Whitbread NNP
& CC
Co. NNP
put VB
its PRP$
spirits NNS
division NN
up IN
for IN
sale NN
, ,
triggering VBG
a DT
scramble NN
among IN
global JJ
groups NNS
for IN
the DT
British JJ
company NN
's POS
brands NNS
. .

Whitbread NNP
already RB
has VBZ
been VBN
approached VBN
by IN
`` ``
about IN
half PDT
a DT
dozen NN
'' ''
companies NNS
interested JJ
in IN
buying VBG
all DT
or CC
part NN
of IN
the DT
spirits NNS
business NN
, ,
a DT
spokesman NN
said VBD
. .

Analysts NNS
expect VBP
the DT
spirits NNS
operations NNS
and CC
some DT
California NNP
vineyards NNS
that IN
also RB
are VBP
being VBG
sold VBN
to TO
fetch VB
about IN
# #
500 CD
million CD
-LRB- (
$ $
788.8 CD
million CD
-RRB- )
. .

Among IN
the DT
brands NNS
for IN
sale NN
are VBP
Beefeater NNP
gin NN
, ,
the DT
No. NN
2 CD
imported VBN
gin NN
in IN
the DT
U.S. NNP
, ,
and CC
Laphroaig NNP
single-malt JJ
whiskey NN
. .

Also RB
for IN
sale NN
are VBP
Buckingham NNP
Wile NNP
Co. NNP
, ,
which WDT
distributes VBZ
Cutty NNP
Sark NNP
blended JJ
whiskey NN
in IN
the DT
U.S. NNP
, ,
and CC
Whitbread NNP
's POS
Atlas NNP
Peak NNP
Vineyards NNS
in IN
California NNP
's POS
Napa NNP
Valley NNP
. .

Beefeater NNP
alone RB
is VBZ
worth JJ
as RB
much JJ
as IN
# #
300 CD
million CD
, ,
analysts NNS
said VBD
. .

Whitbread NNP
bought VBD
the DT
Beefeater NNP
distillery NN
two CD
years NNS
ago RB
for IN
# #
174.5 CD
million CD
. .

That DT
purchase NN
represented VBD
an DT
attempt NN
by IN
Whitbread NNP
, ,
a DT
venerable JJ
British JJ
brewer NN
, ,
to TO
become VB
a DT
major JJ
player NN
in IN
the DT
global JJ
liquor NN
business NN
. .

But CC
Whitbread NNP
has VBZ
been VBN
squeezed VBN
by IN
giant NN
rivals NNS
amid IN
widespread JJ
consolidation NN
in IN
the DT
industry NN
. .

Now RB
, ,
it PRP
wants VBZ
to TO
concentrate VB
on IN
beer NN
and CC
its PRP$
newer JJR
hotel NN
and CC
restaurant NN
operations NNS
. .

For IN
rival JJ
liquor NN
companies NNS
, ,
the DT
Whitbread NNP
auction NN
is VBZ
a DT
rare JJ
opportunity NN
to TO
acquire VB
valuable JJ
brands NNS
. .

`` ``
It PRP
's VBZ
not RB
very RB
often RB
something NN
like IN
this DT
comes VBZ
up IN
, ,
'' ''
said VBD
Ron NNP
Littleboy NNP
, ,
a DT
liquor NN
company NN
analyst NN
at IN
Nomura NNP
Research NNP
Institute NNP
in IN
London NNP
. .

`` ``
The DT
division NN
will MD
be VB
sold VBN
off IN
quite RB
rapidly RB
, ,
'' ''
predicted VBD
Neill NNP
Junor NNP
, ,
an DT
analyst NN
at IN
London NNP
brokers NNS
County NNP
NatWest NNP
WoodMac NNP
. .

Among IN
possible JJ
buyers NNS
, ,
Grand NNP
Metropolitan NNP
PLC NNP
might MD
find VB
Beefeater NNP
a DT
useful JJ
addition NN
to TO
its PRP$
portfolio NN
. .

Grand NNP
Met NNP
owns VBZ
Bombay NNP
gin NN
, ,
the DT
No. NN
3 CD
imported VBN
gin NN
in IN
the DT
U.S. NNP
; :
rival JJ
Guinness NNP
PLC NNP
has VBZ
the DT
No. NN
1 CD
imported VBN
brand NN
, ,
Tanqueray NNP
. .

The DT
Whitbread NNP
spirits NNS
auction NN
`` ``
is VBZ
an DT
extremely RB
interesting JJ
development NN
... :
and CC
naturally RB
we PRP
'll MD
be VB
considering VBG
it PRP
carefully RB
, ,
'' ''
a DT
Grand NNP
Met NNP
spokesman NN
said VBD
. .

Guinness NNP
, ,
which WDT
owns VBZ
several JJ
leading NN
whiskey NN
brands NNS
plus CC
Gordon NNP
's POS
gin NN
, ,
the DT
world NN
's POS
No. NN
1 CD
gin NN
, ,
is VBZ
considered VBN
less RBR
likely JJ
to TO
bid VB
for IN
the DT
Whitbread NNP
spirits NNS
. .

A DT
Guinness NNP
spokesman NN
declined VBD
to TO
comment VB
. .

Two CD
other JJ
global JJ
liquor NN
giants NNS
, ,
Canada NNP
's POS
Seagram NNP
Co. NNP
and CC
Britain NNP
's POS
Allied-Lyons NNP
PLC NNP
, ,
also RB
are VBP
possible JJ
buyers NNS
. .

Seagram NNP
's POS
gin NN
is VBZ
the DT
world NN
's POS
No. NN
2 CD
gin NN
brand NN
, ,
but CC
the DT
company NN
does VBZ
n't RB
own VB
any DT
of IN
the DT
major JJ
gin NN
brands NNS
imported VBN
in IN
the DT
U.S. NNP
. .

Allied-Lyons NNP
, ,
while IN
powerful JJ
in IN
whiskey NN
, ,
does VBZ
n't RB
own VB
any DT
major JJ
white-spirit NN
brands NNS
. .

`` ``
We PRP
will MD
certainly RB
have VB
to TO
take VB
a DT
look NN
at IN
'' ''
the DT
Whitbread NNP
spirits NNS
business NN
, ,
an DT
Allied-Lyons NNP
spokesman NN
said VBD
. .

`` ``
We PRP
would MD
certainly RB
like VB
to TO
have VB
a DT
major JJ
white-spirits JJ
brand NN
in IN
our PRP$
portfolio NN
. .
'' ''

A DT
Seagram NNP
spokesman NN
in IN
New NNP
York NNP
would MD
n't RB
comment VB
. .

Smaller JJR
liquor NN
companies NNS
, ,
such JJ
as IN
Brown-Forman NNP
Corp. NNP
and CC
American NNP
Brands NNP
Inc. NNP
of IN
the DT
U.S. NNP
, ,
also RB
are VBP
likely JJ
to TO
be VB
interested JJ
. .

Such JJ
companies NNS
`` ``
are VBP
increasingly RB
being VBG
left VBN
behind IN
'' ''
in IN
the DT
global JJ
liquor NN
business NN
, ,
says VBZ
Nomura NNP
's POS
Mr. NNP
Littleboy NNP
. .

In IN
New NNP
York NNP
, ,
a DT
spokesman NN
for IN
American NNP
Brands NNP
would MD
n't RB
comment VB
. .

Brown-Forman NNP
, ,
a DT
Louisville NNP
, ,
Ky. NNP
distiller NN
, ,
also RB
declined VBD
to TO
comment VB
. .

Whitbread NNP
's POS
wine NN
, ,
spirits NNS
and CC
soft-drink NN
operations NNS
had VBD
trading NN
profit NN
of IN
# #
35.4 CD
million CD
on IN
sales NNS
of IN
# #
315.5 CD
million CD
in IN
the DT
year NN
ended VBN
Feb. NNP
25 CD
. .

The DT
company NN
, ,
which WDT
is VBZ
retaining VBG
most RBS
of IN
its PRP$
wine NN
and CC
all DT
of IN
its PRP$
soft-drink NN
interests NNS
, ,
did VBD
n't RB
break VB
out RP
results NNS
for IN
the DT
businesses NNS
it PRP
plans VBZ
to TO
sell VB
. .

But CC
analysts NNS
estimate VBP
their PRP$
trading NN
profit NN
at IN
# #
30 CD
million CD
. .

Whitbread NNP
had VBD
total JJ
pretax JJ
profit NN
in IN
the DT
year NN
ended VBN
Feb. NNP
25 CD
of IN
# #
223.2 CD
million CD
, ,
on IN
sales NNS
of IN
# #
2.26 CD
billion CD
. .

Whitbread NNP
's POS
spirits NNS
auction NN
occurs VBZ
amid IN
a DT
parallel JJ
shakeup NN
in IN
the DT
British JJ
beer NN
industry NN
. .

Earlier RBR
this DT
year NN
, ,
the DT
government NN
announced VBD
plans NNS
to TO
foster VB
increased VBN
competition NN
in IN
the DT
industry NN
. .

British JJ
brewers NNS
currently RB
own JJ
thousands NNS
of IN
pubs NNS
, ,
which WDT
in IN
turn NN
sell NN
only RB
the DT
breweries NNS
' POS
beer NN
and CC
soft JJ
drinks NNS
. .

Under IN
new JJ
rules NNS
, ,
many NN
of IN
the DT
country NN
's POS
pubs NNS
would MD
become VB
`` ``
free JJ
houses NNS
, ,
'' ''
selling VBG
beers NNS
of IN
their PRP$
choice NN
. .
Whitbread NNP
now RB
intends VBZ
to TO
bolster VB
its PRP$
brewing NN
interests NNS
, ,
in IN
an DT
effort NN
to TO
grab VB
a DT
share NN
of IN
sales NNS
to TO
free VB
houses NNS
. .

The DT
company NN
, ,
which WDT
last JJ
month NN
paid VBN
# #
50.7 CD
million CD
for IN
regional JJ
British JJ
brewer NN
Boddington NNP
Group NNP
PLC NNP
, ,
has VBZ
about IN
13 CD
% NN
of IN
the DT
British JJ
beer NN
market NN
. .

Whitbread NNP
also RB
owns VBZ
the DT
license NN
to TO
brew VB
and CC
distribute VB
Heineken NNP
and CC
Stella NNP
Artois NNP
beers NNS
in IN
Britain NNP
. .

In IN
addition NN
, ,
Whitbread NNP
intends VBZ
to TO
focus VB
on IN
its PRP$
newer JJR
hotel NN
, ,
liquor NN
store NN
and CC
restaurant NN
businesses NNS
in IN
Europe NNP
and CC
North NNP
America NNP
. .

In IN
Britain NNP
, ,
those DT
interests NNS
include VBP
the DT
Beefeater NNP
steakhouse NN
chain NN
and CC
joint JJ
ownership NN
with IN
PepsiCo NNP
Inc. NNP
of IN
the DT
country NN
's POS
Pizza NNP
Hut NNP
chain NN
. .

In IN
Canada NNP
and CC
the DT
U.S. NNP
, ,
Whitbread NNP
owns VBZ
The DT
Keg NNP
chain NN
of IN
steak NN
and CC
seafood NN
restaurants NNS
. .

Focusing VBG
on IN
beer NN
, ,
restaurants NNS
and CC
hotels NNS
means VBZ
`` ``
we PRP
can MD
concentrate VB
our PRP$
skills NNS
and CC
resources NNS
more RBR
effectively RB
, ,
'' ''
Peter NNP
Jarvis NNP
, ,
Whitbread NNP
's POS
managing VBG
director NN
, ,
said VBD
in IN
a DT
statement NN
. .

The DT
spirits NNS
business NN
`` ``
would MD
require VB
substantial JJ
additional JJ
investment NN
to TO
enable VB
it PRP
to TO
compete VB
effectively RB
in IN
the DT
first JJ
division NN
of IN
global JJ
players NNS
. .
'' ''

Whitbread NNP
also RB
announced VBD
that IN
Mr. NNP
Jarvis NNP
, ,
who WP
is VBZ
48 CD
, ,
will MD
become VB
the DT
company NN
's POS
chief JJ
executive NN
March NNP
1 CD
. .

At IN
that DT
time NN
Sam NNP
Whitbread NNP
, ,
the DT
company NN
's POS
chairman NN
and CC
a DT
descendant NN
of IN
its PRP$
18th-century JJ
founder NN
, ,
will MD
retire VB
from IN
executive NN
duties NNS
. .

He PRP
will MD
retain VB
the DT
honorary JJ
title NN
of IN
non-executive JJ
chairman NN
. .

The DT
Treasury NNP
plans VBZ
to TO
raise VB
$ $
700 CD
million CD
in IN
new JJ
cash NN
with IN
the DT
sale NN
Tuesday NNP
of IN
about RB
$ $
10 CD
billion CD
in IN
two-year JJ
notes NNS
to TO
redeem VB
$ $
9.29 CD
billion CD
in IN
maturing VBG
notes NNS
. .

The DT
offering NN
will MD
be VB
dated VBN
Oct. NNP
31 CD
and CC
mature NNP
Oct. NNP
31 CD
, ,

Tenders NNS
for IN
the DT
notes NNS
, ,
available JJ
in IN
minimum JJ
$ $
5,000 CD
denominations NNS
, ,
must MD
be VB
received VBN
by IN
1 CD
p.m. NN
EDT NNP
Tuesday NNP
at IN
the DT
Treasury NNP
or CC
at IN
Federal NNP
Reserve NNP
banks NNS
or CC
branches NNS
. .

NEWHALL NNP
LAND NNP
& CC
FARMING NNP
Co. NNP
, ,
Valencia NNP
, ,
Calif. NNP
, ,
announced VBD
a DT
2-for-1 JJ
split NN
in IN
the DT
real JJ
estate NN
limited JJ
partnership NN
's POS
units NNS
and CC
increased VBN
its PRP$
regular JJ
quarterly JJ
cash NN
distribution NN
33 CD
% NN
, ,
to TO
40 CD
cents NNS
a DT
unit NN
. .

The DT
real JJ
estate NN
limited JJ
partnership NN
also RB
said VBD
it PRP
will MD
pay VB
a DT
special JJ
year-end NN
cash NN
distribution NN
of IN
10 CD
cents NNS
a DT
unit NN
. .

Both DT
distributions NNS
are VBP
payable JJ
Dec. NNP
4 CD
to TO
limited JJ
partners NNS
of IN
record NN
Nov. NNP
3 CD
. .

Mellon NNP
Bank NNP
Corp. NNP
said VBD
directors NNS
authorized VBD
the DT
buy-back NN
of IN
as RB
many JJ
as IN
250,000 CD
common JJ
shares NNS
. .

The DT
bank NN
holding VBG
company NN
said VBD
stock NN
repurchased VBN
will MD
be VB
used VBN
to TO
meet VB
requirements NNS
for IN
the DT
company NN
's POS
benefit NN
plans NNS
. .

Mellon NNP
has VBZ
36.6 CD
million CD
shares NNS
outstanding JJ
. .

Champion NNP
International NNP
Corp. NNP
's POS
third-quarter JJ
profit NN
dropped VBD
17 CD
% NN
, ,
reflecting VBG
price NN
declines NNS
for IN
certain JJ
paper NN
products NNS
, ,
operating VBG
problems NNS
at IN
certain JJ
mills NNS
, ,
and CC
other JJ
factors NNS
. .

The DT
paper NN
producer NN
reported VBD
that IN
net JJ
income NN
fell VBD
to TO
$ $
102.1 CD
million CD
, ,
or CC
$ $
1.09 CD
a DT
share NN
, ,
from IN
$ $
122.4 CD
million CD
, ,
or CC
$ $
1.29 CD
a DT
share NN
, ,
in IN
the DT
year-earlier JJ
period NN
. .

Sales NNS
rose VBD
2.6 CD
% NN
to TO
$ $
1.32 CD
billion CD
from IN
$ $
1.29 CD
billion CD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Champion NNP
's POS
shares NNS
rose VBD
25 CD
cents NNS
to TO
$ $
32.125 CD
. .

Digital NNP
Equipment NNP
Corp. NNP
is VBZ
planning VBG
a DT
big JJ
coming-out JJ
party NN
on IN
Tuesday NNP
for IN
its PRP$
first JJ
line NN
of IN
mainframe NN
computers NNS
. .

But CC
an DT
uninvited JJ
guest NN
is VBZ
expected VBN
to TO
try VB
to TO
crash VB
the DT
party NN
. .

On IN
the DT
morning NN
of IN
the DT
long-planned JJ
announcement NN
, ,
International NNP
Business NNP
Machines NNP
Corp. NNP
is VBZ
to TO
introduce VB
its PRP$
own JJ
new JJ
mainframe NN
. .

`` ``
Their PRP$
attitude NN
is VBZ
, ,
` ``
You PRP
want VBP
to TO
talk VB
mainframes NNS
, ,
we PRP
'll MD
talk VB
mainframes NNS
, ,
' ''
'' ''
says VBZ
one CD
computer NN
industry NN
executive NN
. .

`` ``
They PRP
're VBP
deliberately RB
trying VBG
to TO
steal VB
our PRP$
thunder NN
, ,
'' ''
a DT
Digital NNP
executive NN
complains VBZ
. .

`` ``
Maybe RB
we PRP
should MD
take VB
it PRP
as IN
a DT
compliment NN
. .
'' ''

Digital NNP
's POS
target NN
is VBZ
the DT
$ $
40 CD
billion CD
market NN
for IN
mainframe NN
computers NNS
, ,
the DT
closet-sized JJ
number-crunchers NNS
that IN
nearly RB
every DT
big JJ
company NN
needs VBZ
to TO
run VB
its PRP$
business NN
. .

IBM NNP
, ,
based VBN
in IN
Armonk NNP
, ,
N.Y. NNP
, ,
has VBZ
dominated VBN
the DT
market NN
for IN
decades NNS
. .

That DT
does VBZ
n't RB
scare VB
Digital NNP
, ,
which WDT
has VBZ
grown VBN
to TO
be VB
the DT
world NN
's POS
second-largest JJ
computer NN
maker NN
by IN
poaching VBG
customers NNS
of IN
IBM NNP
's POS
mid-range JJ
machines NNS
. .

Digital NNP
, ,
based VBN
in IN
Maynard NNP
, ,
Mass. NNP
, ,
hopes VBZ
to TO
stage VB
a DT
repeat NN
performance NN
in IN
mainframes NNS
, ,
and CC
it PRP
has VBZ
spent VBN
almost RB
$ $
1 CD
billion CD
developing VBG
the DT
new JJ
technology NN
. .

A DT
spoiler NN
, ,
nimble JJ
Tandem NNP
Computers NNP
Inc. NNP
in IN
Cupertino NNP
, ,
Calif. NNP
, ,
jumped VBD
into IN
the DT
fray NN
earlier RBR
this DT
week NN
with IN
an DT
aggressively RB
priced VBN
entry NN
. .

IBM NNP
appears VBZ
more RBR
worried VBN
about IN
Digital NNP
, ,
which WDT
has VBZ
a DT
broad JJ
base NN
of IN
customers NNS
waiting VBG
for IN
the DT
new JJ
line NN
, ,
dubbed VBD
the DT
VAX NNP
9000 CD
. .

`` ``
It PRP
's VBZ
going VBG
to TO
be VB
nuclear JJ
war NN
, ,
'' ''
says VBZ
Thomas NNP
Willmott NNP
, ,
a DT
consultant NN
with IN
Aberdeen NNP
Group NNP
Inc NNP
. .

The DT
surge NN
in IN
competition NN
is VBZ
expected VBN
to TO
stir VB
new JJ
life NN
into IN
the DT
huge JJ
mainframe NN
market NN
, ,
where WRB
growth NN
has VBZ
slowed VBN
to TO
single VB
digits NNS
in IN
recent JJ
years NNS
. .

IBM NNP
's POS
traditional JJ
mainframe NN
rivals NNS
, ,
including VBG
Unisys NNP
Corp. NNP
, ,
Control NNP
Data NNP
Corp. NNP
and CC
NCR NNP
Corp. NNP
, ,
have VBP
struggled VBN
recently RB
. .

Digital NNP
is VBZ
promising JJ
a DT
new JJ
approach NN
. .

Robert NNP
M. NNP
Glorioso NNP
, ,
Digital NNP
's POS
vice NN
president NN
for IN
high JJ
performance NN
systems NNS
, ,
says VBZ
Digital NNP
's POS
mainframe NN
is VBZ
designed VBN
not RB
as IN
a DT
central JJ
computer NN
around IN
which WDT
everything NN
revolves VBZ
, ,
but CC
as IN
part NN
of IN
a DT
decentralized JJ
network NN
weaving VBG
together RB
hundreds NNS
of IN
workstations NNS
, ,
personal JJ
computers NNS
, ,
printers NNS
and CC
other JJ
devices NNS
. .

And CC
unlike IN
IBM NNP
's POS
water-cooled JJ
mainframes NNS
, ,
it PRP
does VBZ
n't RB
need VB
any DT
plumbing NN
. .

The DT
challengers NNS
will MD
have VB
a DT
big JJ
price NN
advantage NN
. .

Digital NNP
is VBZ
expected VBN
to TO
tag VB
its PRP$
new JJ
line NN
from IN
about RB
$ $
1.24 CD
million CD
to TO
$ $
4.4 CD
million CD
and CC
up IN
, ,
depending VBG
on IN
configuration NN
. .

That DT
's VBZ
about IN
half PDT
the DT
price NN
of IN
comparably RB
equipped VBN
IBM NNP
mainframes NNS
. .

Tandem NNP
's POS
pricing NN
is VBZ
just RB
as IN
aggressive JJ
. .

The DT
heightened VBN
competition NN
will MD
hit VB
IBM NNP
at IN
a DT
difficult JJ
time NN
. .

The DT
computer NN
giant NN
's POS
current JJ
mainframe NN
line NN
, ,
which WDT
has VBZ
sold VBN
well RB
and CC
has VBZ
huge JJ
profit NN
margins NNS
, ,
is VBZ
starting VBG
to TO
show VB
its PRP$
age NN
. .

The DT
new JJ
3090s CD
due JJ
next JJ
week NN
will MD
boost VB
performance NN
by IN
only RB
about IN
8 CD
% NN
to TO
10 CD
% NN
. .

And CC
IBM NNP
is VBZ
n't RB
expected VBN
to TO
deliver VB
a DT
new JJ
generation NN
of IN
mainframes NNS
until IN
1991 CD
. .

Still RB
, ,
no DT
one CD
expects VBZ
IBM NNP
's POS
rivals NNS
to TO
deliver VB
a DT
knockout NN
. .

IBM NNP
has VBZ
a DT
near-monopoly NN
on IN
mainframes NNS
, ,
with IN
an DT
estimated VBN
70 CD
% NN
share NN
of IN
the DT
market NN
. .

IBM NNP
is VBZ
five CD
times VBZ
the DT
size NN
of IN
Digital NNP
-- :
and CC
40 CD
times VBZ
the DT
size NN
of IN
Tandem NNP
-- :
and CC
wields VBZ
enormous JJ
market NN
power NN
. .

It PRP
counts VBZ
among IN
its PRP$
customers NNS
a DT
majority NN
of IN
the DT
world NN
's POS
largest JJS
corporations NNS
, ,
which WDT
entrust VBP
their PRP$
most RBS
critical JJ
business NN
information NN
to TO
IBM NNP
computers NNS
. .

`` ``
We PRP
're VBP
not RB
going VBG
to TO
walk VB
in IN
and CC
replace VB
a DT
company NN
's POS
corporate JJ
accounting NN
system NN
if IN
it PRP
's VBZ
already RB
running VBG
on IN
an DT
IBM NNP
mainframe NN
, ,
'' ''
concedes VBZ
Kenneth NNP
H. NNP
Olsen NNP
, ,
Digital NNP
's POS
president NN
. .

He PRP
says VBZ
Digital NNP
will MD
target VB
faster-growing JJR
market NN
segments NNS
such JJ
as IN
on-line JJ
transaction NN
processing NN
, ,
which WDT
includes VBZ
retail-sales JJ
tracking NN
, ,
airline NN
reservations NNS
and CC
bank-teller NN
networks NNS
. .

Tandem NNP
, ,
which WDT
already RB
specializes VBZ
in IN
on-line JJ
transaction NN
processing NN
, ,
is VBZ
a DT
potent JJ
competitor NN
in IN
that DT
market NN
. .

A DT
key JJ
marketing NN
target NN
for IN
Digital NNP
will MD
be VB
the DT
large JJ
number NN
of IN
big JJ
customers NNS
who WP
already RB
own VB
both DT
Digital NNP
and CC
IBM NNP
systems NNS
. .

One CD
such JJ
company NN
is VBZ
Bankers NNP
Trust NNP
Co NNP
. .

Stanley NNP
Rose NNP
, ,
a DT
vice NN
president NN
, ,
technological JJ
and CC
strategic JJ
planning NN
at IN
Bankers NNP
Trust NNP
, ,
says VBZ
that IN
despite IN
Digital NNP
's POS
low JJ
prices NNS
, ,
`` ``
we PRP
are VBP
n't RB
about IN
to TO
unplug VB
our PRP$
IBM NNP
mainframes NNS
for IN
a DT
DEC NNP
machine NN
. .

The DT
software NN
conversion NN
costs NNS
would MD
dwarf VB
any DT
savings NNS
. .
'' ''

But CC
Mr. NNP
Rose NNP
is VBZ
still RB
looking VBG
seriously RB
at IN
the DT
9000 CD
. .

Bankers NNP
Trust NNP
uses VBZ
Digital NNP
's POS
VAX NNP
to TO
run VB
its PRP$
huge JJ
money-transfer NN
and CC
capital NN
markets NNS
accounts NNS
, ,
juggling VBG
hundreds NNS
of IN
billions NNS
of IN
dollars NNS
each DT
day NN
, ,
he PRP
says VBZ
. .

As IN
that DT
system NN
grows VBZ
, ,
larger JJR
computers NNS
may MD
be VB
needed VBN
. .

`` ``
In IN
the DT
past NN
, ,
customers NNS
had VBD
to TO
go VB
to TO
IBM NNP
when WRB
they PRP
outgrew VBD
the DT
VAX NNP
. .

Now RB
they PRP
do VBP
n't RB
have VB
to TO
, ,
'' ''
he PRP
says VBZ
. .

`` ``
That DT
's VBZ
going VBG
to TO
cost VB
IBM NNP
revenue NN
. .
'' ''

Analysts NNS
say VBP
Digital NNP
can MD
expect VB
this DT
pent-up JJ
demand NN
for IN
the DT
new JJ
VAX NNP
to TO
fuel VB
strong JJ
sales NNS
next JJ
year NN
. .

Barry NNP
F. NNP
Willman NNP
, ,
an DT
analyst NN
at IN
Sanford NNP
C. NNP
Bernstein NNP
& CC
Co. NNP
, ,
estimates VBZ
the DT
9000 CD
could MD
boost VB
sales NNS
by IN
more JJR
than IN
$ $
1 CD
billion CD
in IN
the DT
fiscal JJ
year NN
beginning VBG
in IN
July NNP
. .

He PRP
bases VBZ
the DT
estimate NN
on IN
a DT
survey NN
of IN
hundreds NNS
of IN
Digital NNP
's POS
largest JJS
customers NNS
. .

Although IN
Digital NNP
will MD
announce VB
a DT
full JJ
family NN
of IN
mainframes NNS
next JJ
week NN
, ,
it PRP
is VBZ
n't RB
expected VBN
to TO
begin VB
shipping VBG
in IN
volume NN
until IN
next JJ
year NN
. .

The DT
first JJ
model NN
available JJ
will MD
be VB
the DT
210 CD
, ,
which WDT
is VBZ
likely JJ
to TO
appeal VB
to TO
many VB
technical JJ
and CC
scientific JJ
buyers NNS
interested JJ
in IN
the DT
optional JJ
super-charger NN
, ,
or CC
vector NN
processor NN
, ,
says VBZ
Terry NNP
Shannon NNP
of IN
International NNP
Data NNP
Corp. NNP
, ,
a DT
market NN
research NN
concern NN
. .

Four CD
more JJR
models NNS
, ,
aimed VBD
squarely RB
at IN
IBM NNP
's POS
commercial JJ
customers NNS
, ,
are VBP
expected VBN
to TO
begin VB
shipping VBG
in IN
late JJ
June NNP
. .

Most JJS
analysts NNS
do VBP
n't RB
expect VB
the DT
new JJ
mainframes NNS
to TO
begin VB
contributing VBG
significantly RB
to TO
revenue NN
before IN
the DT
fiscal JJ
first JJ
quarter NN
, ,
which WDT
begins VBZ
next JJ
July NNP
1 CD
. .

Digital NNP
's POS
new JJ
line NN
has VBZ
been VBN
a DT
long JJ
time NN
coming VBG
. .

The DT
company NN
has VBZ
long RB
struggled VBN
to TO
deliver VB
a DT
strong JJ
mainframe-class JJ
product NN
, ,
and CC
made VBD
a DT
costly JJ
decision NN
in IN
1988 CD
to TO
halt VB
development NN
of IN
an DT
interim JJ
product NN
meant VBD
to TO
stem VB
the DT
revenue NN
losses NNS
at IN
the DT
high JJ
end NN
. .

Digital NNP
's POS
failure NN
to TO
deliver VB
a DT
true JJ
mainframe-class JJ
machine NN
before IN
now RB
may MD
have VB
cost VBN
the DT
company NN
as RB
much JJ
as IN
$ $
1 CD
billion CD
in IN
revenue NN
in IN
fiscal JJ
1989 CD
, ,
Mr. NNP
Willman NNP
says VBZ
. .

IBM NNP
will MD
face VB
still RB
more JJR
competition NN
in IN
coming VBG
months NNS
. .

Amdahl NNP
Corp. NNP
, ,
backed VBN
by IN
Japan NNP
's POS
Fujitsu NNP
Ltd. NNP
, ,
has VBZ
a DT
growing VBG
share NN
of IN
the DT
market NN
with IN
its PRP$
low-priced JJ
, ,
IBM-compatible JJ
machines NNS
. .

And CC
National NNP
Advanced NNP
Systems NNPS
, ,
a DT
joint JJ
venture NN
of IN
Japan NNP
's POS
Hitachi NNP
Ltd. NNP
and CC
General NNP
Motors NNPS
Corp. NNP
's POS
Electronic NNP
Data NNP
Systems NNPS
, ,
is VBZ
expected VBN
to TO
unveil VB
a DT
line NN
of IN
powerful JJ
IBM-compatible JJ
mainframes NNS
later RB
this DT
year NN
. .

NOTE NN
: :

NAS NNP
is VBZ
National NNP
Advanced NNP
Systems NNPS
, ,
CDC NNP
-- :
Control NNP
Data NNP
Corp. NNP
, ,
Bull NNP
NH NNP
Information NNP
Systems NNP
Inc NNP
. .

Source NN
: :
International NNP
Data NNP
Corp NNP
. .

Compiled VBN
by IN
Publishers NNP
Weekly NNP
from IN
data NNS
from IN
large-city JJ
bookstores NNS
, ,
bookstore NN
chains NNS
and CC
local JJ
bestseller NN
lists NNS
across IN
the DT
U.S. NNP
. .
Copyright NNP
1989 CD
by IN
Reed NNP
Publishing NNP
USA NNP
. .

The DT
frenetic JJ
stock NN
and CC
bond NN
markets NNS
cooled VBN
off IN
, ,
but CC
the DT
dollar NN
slumped VBD
. .

Stocks NNS
rose VBD
slightly RB
as IN
trading NN
activity NN
slowed VBD
from IN
the DT
frenzied JJ
pace NN
earlier RBR
this DT
week NN
. .

Prices NNS
of IN
long-term JJ
Treasury NNP
bonds NNS
hovered VBD
in IN
a DT
narrow JJ
band NN
most RBS
of IN
the DT
day NN
, ,
finishing VBG
little RB
changed VBN
despite IN
the DT
dollar NN
's POS
weakness NN
and CC
fears NNS
about IN
a DT
wave NN
of IN
government NN
borrowing NN
coming VBG
soon RB
. .

Helped VBN
by IN
futures-related JJ
program NN
buying VBG
, ,
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
gained VBD
4.92 CD
points NNS
to TO
close VB
at IN
2643.65 CD
. .

But CC
the DT
Dow NNP
Jones NNP
Transportation NNP
Average NNP
fell VBD
for IN
the DT
seventh-consecutive JJ
session NN
as IN
more JJR
investors NNS
dumped VBD
UAL NNP
shares NNS
. .

Bond NN
prices NNS
rallied VBD
early JJ
yesterday NN
morning NN
as IN
traders NNS
scrambled VBD
to TO
buy VB
Treasury NNP
issues NNS
on IN
fears NNS
that IN
the DT
Northern NNP
California NNP
earthquake NN
might MD
lead VB
to TO
a DT
stock-market NN
debacle NN
. .

But CC
when WRB
stocks NNS
held VBD
steady JJ
, ,
Treasury NNP
bonds NNS
later RB
retreated VBD
. .

Speculation NN
that IN
the DT
Federal NNP
Reserve NNP
will MD
lower JJR
interest VB
rates NNS
in IN
coming VBG
weeks NNS
helped VBD
push VB
the DT
dollar NN
down RB
while IN
boosting VBG
stocks NNS
, ,
traders NNS
said VBD
. .
But CC
many JJ
investors NNS
remain VBP
wary JJ
about IN
stocks NNS
, ,
partly RB
because IN
they PRP
expect VBP
continued VBD
turbulence NN
in IN
the DT
junk-bond NN
market NN
that WDT
would MD
make VB
it PRP
more RBR
difficult JJ
to TO
finance VB
corporate JJ
takeovers NNS
. .

`` ``
I PRP
'm VBP
surprised VBN
we PRP
did VBD
n't RB
see VB
more JJR
volatility NN
'' ''
in IN
stocks NNS
, ,
said VBD
Raymond NNP
F. NNP
DeVoe NNP
Jr. NNP
, ,
market NN
strategist NN
at IN
Legg NNP
Mason NNP
Wood NNP
Walker NNP
. .
`` ``
I PRP
think VBP
the DT
problems NNS
in IN
the DT
junk-bond NN
area NN
are VBP
just RB
beginning VBG
, ,
and CC
this DT
will MD
be VB
very RB
unsettling JJ
for IN
companies NNS
that WDT
have VBP
issued VBN
junk NN
bonds NNS
. .

In IN
a DT
bull NN
market NN
, ,
credit NN
does VBZ
not RB
matter VB
, ,
'' ''
Mr. NNP
DeVoe NNP
added VBD
. .

`` ``
But CC
when WRB
it PRP
does VBZ
matter NN
, ,
then RB
it PRP
's VBZ
the DT
only JJ
thing NN
that IN
matters NNS
. .
'' ''

However RB
, ,
many JJ
institutional JJ
investors NNS
are VBP
reacting VBG
to TO
the DT
stock NN
market NN
's POS
plunge NN
as IN
`` ``
a DT
great JJ
buying NN
opportunity NN
, ,
'' ''
said VBD
Charles NNP
I. NNP
Clough NNP
, ,
chief JJ
investment NN
strategist NN
at IN
Merrill NNP
Lynch NNP
Capital NNP
Markets NNPS
. .

`` ``
Things NNS
are VBP
beginning VBG
to TO
settle VB
down RB
. .

The DT
markets NNS
are VBP
returning VBG
to TO
normalcy NN
. .
'' ''

Oil NN
prices NNS
initially RB
rose VBD
on IN
fears NNS
that IN
the DT
massive JJ
earthquake NN
in IN
Northern NNP
California NNP
would MD
disrupt VB
production NN
. .

But CC
prices NNS
later RB
reversed VBD
course NN
, ,
finishing VBG
slightly RB
lower JJR
, ,
as IN
investors NNS
concluded VBD
that IN
any DT
cuts NNS
would MD
n't RB
be VB
large JJ
and CC
that IN
foreign JJ
oil NN
producers NNS
would MD
quickly RB
pick VB
up IN
the DT
slack NN
. .

In IN
major JJ
market NN
activity NN
: :

Stock NN
prices NNS
rose VBD
. .

New NNP
York NNP
Stock NNP
Exchange NNP
volume NN
shrank VBD
to TO
166.9 CD
million CD
shares NNS
from IN
224.1 CD
million CD
Tuesday NNP
. .

Advancers NNS
on IN
the DT
Big NNP
Board NNP
outpaced VBD
decliners NNS
by IN
822 CD
to TO
668 CD
. .

Bond NN
prices NNS
were VBD
little RB
changed VBN
in IN
sluggish JJ
activity NN
. .

The DT
yield NN
on IN
the DT
Treasury NNP
's POS
30-year JJ
issue NN
fell VBD
slightly RB
to TO
8.03 CD
% NN
. .

The DT
dollar NN
dropped VBD
. .

In IN
New NNP
York NNP
late JJ
yesterday NN
, ,
the DT
currency NN
was VBD
at IN
141.45 CD
yen NN
and CC
1.8485 CD
marks NNS
, ,
down RB
from IN
142.75 CD
yen NN
and CC
1.8667 CD
marks NNS
late JJ
Tuesday NNP
. .

James NNP
L. NNP
Madson NNP
, ,
46 CD
years NNS
old JJ
, ,
was VBD
named VBN
a DT
vice NN
president NN
and CC
assistant NN
general JJ
manager NN
of IN
this DT
producer NN
of IN
copper NN
and CC
other JJ
minerals NNS
. .

He PRP
will MD
succeed VB
Arthur NNP
E. NNP
Himebaugh NNP
as IN
general JJ
manager NN
Feb. NNP
1 CD
, ,
when WRB
Mr. NNP
Himebaugh NNP
retires VBZ
. .

AMR NNP
Corp. NNP
posted VBD
an DT
8.8 CD
% NN
drop NN
in IN
third-quarter JJ
net JJ
income NN
and CC
said VBD
the DT
fourth JJ
quarter NN
will MD
be VB
`` ``
disappointing JJ
'' ''
as IN
well RB
, ,
primarily RB
because IN
of IN
slimmer JJR
profit NN
margins NNS
and CC
increased VBN
fuel NN
costs NNS
. .

AMR NNP
's POS
earnings NNS
decline NN
comes VBZ
a DT
year NN
after IN
the DT
parent NN
company NN
of IN
American NNP
Airlines NNPS
and CC
the DT
rest NN
of IN
the DT
airline NN
industry NN
set VBD
profit NN
records NNS
. .

Some DT
analysts NNS
say VBP
the DT
latest JJS
results NNS
only RB
seem VBP
pale JJ
by IN
comparison NN
with IN
a DT
spectacular JJ
second JJ
half NN
of IN
1988 CD
. .

Still RB
, ,
AMR NNP
's POS
stumble NN
does VBZ
n't RB
bode VB
well RB
for IN
the DT
rest NN
of IN
the DT
industry NN
. .

The DT
Fort NNP
Worth NNP
, ,
Texas NNP
, ,
company NN
is VBZ
generally RB
regarded VBN
as IN
one CD
of IN
the DT
best-run JJS
in IN
the DT
business NN
, ,
and CC
its PRP$
difficulties NNS
are VBP
likely JJ
to TO
be VB
reflected VBN
industrywide JJ
as IN
other JJ
major JJ
carriers NNS
report VBP
third-quarter JJ
results NNS
over IN
the DT
next JJ
several JJ
days NNS
. .

Meanwhile RB
, ,
the DT
company NN
's POS
board NN
, ,
which WDT
had VBD
said VBD
nothing NN
publicly RB
about IN
investor NN
Donald NNP
Trump NNP
's POS
recently RB
withdrawn VBN
$ $
7.5 CD
billion CD
offer NN
for IN
AMR NNP
, ,
issued VBD
a DT
statement NN
condemning VBG
`` ``
ill-conceived JJ
and CC
reckless JJ
'' ''
bids NNS
and CC
saying VBG
it PRP
was VBD
`` ``
pleased VBN
'' ''
that IN
Mr. NNP
Trump NNP
had VBD
backed VBN
out RB
. .

In IN
the DT
third JJ
quarter NN
, ,
AMR NNP
said VBD
, ,
net NN
fell VBD
to TO
$ $
137 CD
million CD
, ,
or CC
$ $
2.16 CD
a DT
share NN
, ,
from IN
$ $
150.3 CD
million CD
, ,
or CC
$ $
2.50 CD
a DT
share NN
. .

Revenue NN
rose VBD
17 CD
% NN
to TO
$ $
2.73 CD
billion CD
from IN
$ $
2.33 CD
billion CD
a DT
year NN
earlier RBR
. .

AMR NNP
's POS
chairman NN
, ,
Robert NNP
L. NNP
Crandall NNP
, ,
said VBD
the DT
results NNS
were VBD
due JJ
to TO
an DT
11 CD
% NN
year-to-year JJ
increase NN
in IN
fuel NN
prices NNS
and CC
a DT
slight JJ
decrease NN
in IN
yield NN
, ,
an DT
industry NN
measure NN
analogous JJ
to TO
profit VB
margin NN
on IN
each DT
seat NN
sold VBN
. .

`` ``
We PRP
think VBP
these DT
trends NNS
will MD
continue VB
and CC
will MD
produce VB
a DT
very RB
disappointing JJ
fourth JJ
quarter NN
as IN
well RB
, ,
'' ''
he PRP
said VBD
. .

Tim NNP
Pettee NNP
, ,
an DT
analyst NN
with IN
Merrill NNP
Lynch NNP
& CC
Co. NNP
, ,
said VBD
: :
`` ``
The DT
business NN
turned VBD
faster RBR
than IN
expected VBN
. .

Costs NNS
are VBP
giving VBG
them PRP
a DT
little JJ
bit NN
of IN
trouble NN
, ,
and CC
the DT
whole JJ
industry NN
is VBZ
having VBG
a DT
pricing NN
problem NN
. .
'' ''

For IN
the DT
nine CD
months NNS
, ,
AMR NNP
's POS
net NN
rose VBD
15 CD
% NN
to TO
$ $
415.9 CD
million CD
, ,
or CC
$ $
6.59 CD
a DT
share NN
, ,
from IN
$ $
360.1 CD
million CD
, ,
or CC
$ $
5.99 CD
a DT
share NN
. .

Revenue NN
jumped VBD
22 CD
% NN
to TO
$ $
7.89 CD
billion CD
from IN
$ $
6.46 CD
billion CD
. .
AMR NNP
's POS
board NN
, ,
in IN
a DT
statement NN
after IN
a DT
regular JJ
meeting NN
yesterday NN
, ,
said VBD
: :
`` ``
Ill-considered JJ
and CC
reckless JJ
acquisition NN
proposals NNS
adversely RB
affect VBP
employee NN
, ,
financial JJ
and CC
business NN
relationships NNS
and CC
are VBP
contrary JJ
to TO
the DT
best JJS
interests NNS
of IN
AMR NNP
shareholders NNS
... :
. .

AMR NNP
has VBZ
not RB
been VBN
, ,
and CC
is VBZ
not RB
, ,
for IN
sale NN
. .
'' ''

Mr. NNP
Crandall NNP
said VBD
the DT
company NN
's POS
current JJ
decline NN
in IN
earnings NNS
is VBZ
exactly RB
the DT
kind NN
of IN
situation NN
that IN
an DT
excessively RB
leveraged JJ
company NN
laden JJ
with IN
debt NN
from IN
a DT
takeover NN
would MD
find VB
difficult JJ
to TO
weather VB
. .

`` ``
Our PRP$
very RB
disappointing JJ
third-quarter JJ
results NNS
and CC
the DT
discouraging VBG
outlook NN
for IN
the DT
fourth JJ
quarter NN
underscore VBP
the DT
importance NN
of IN
an DT
adequate JJ
capital NN
base NN
, ,
'' ''
he PRP
said VBD
. .
Christopher NNP
Whittington NNP
, ,
51-year-old JJ
deputy NN
chairman NN
of IN
this DT
British JJ
investment-banking NN
group NN
and CC
chairman NN
of IN
Morgan NNP
Grenfell NNP
& CC
Co. NNP
, ,
the DT
group NN
's POS
main JJ
banking NN
unit NN
, ,
has VBZ
retired VBN
from IN
his PRP$
executive NN
duties NNS
. .

Succeeding VBG
Mr. NNP
Whittington NNP
as IN
deputy NN
chairman NN
of IN
the DT
group NN
is VBZ
Anthony NNP
Richmond-Watson NNP
, ,
43 CD
, ,
currently RB
a DT
main JJ
board NN
member NN
. .

Succeeding VBG
Mr. NNP
Whittington NNP
at IN
Morgan NNP
Grenfell NNP
& CC
Co. NNP
is VBZ
Richard NNP
Webb NNP
, ,
50 CD
, ,
currently JJ
deputy NN
chairman NN
. .

Mr. NNP
Whittington NNP
will MD
remain VB
on IN
the DT
main JJ
group NN
board NN
as IN
a DT
nonexecutive JJ
director NN
. .

Without IN
federal JJ
subsidies NNS
to TO
developers NNS
of IN
beach NN
houses NNS
, ,
the DT
economic JJ
and CC
structural JJ
damage NN
by IN
Hurricane NNP
Hugo NNP
in IN
South NNP
Carolina NNP
would MD
have VB
been VBN
much RB
less JJR
, ,
as IN
highlighted VBN
by IN
your PRP$
Oct. NNP
3 CD
editorial NN
`` ``
Subsidizing VBG
Disaster NN
. .
'' ''

Congress NNP
should MD
stop VB
throwing VBG
tax NN
dollars NNS
out IN
to TO
sea VB
by IN
subsidizing VBG
the DT
development NN
of IN
beach NN
communities NNS
on IN
ecologically RB
fragile JJ
coastal JJ
barrier NN
islands NNS
, ,
such JJ
as IN
the DT
hard-hit JJ
Isle NNP
of IN
Palms NNPS
near IN
Charleston NNP
. .

As IN
you PRP
mentioned VBD
, ,
subsidies NNS
for IN
development NN
on IN
a DT
number NN
of IN
barrier NN
islands NNS
were VBD
curtailed VBN
in IN
1982 CD
by IN
the DT
Coastal NNP
Barrier NNP
Resource NNP
System NNP
. .

The DT
National NNP
Taxpayers NNP
Union NNP
would MD
like IN
Congress NNP
to TO
add VB
800,000 CD
acres NNS
to TO
the DT
453,000 CD
of IN
shoreline NN
in IN
the DT
system NN
by IN
enacting VBG
`` ``
The DT
Coastal NNP
Barrier NNP
Improvement NNP
Act NNP
of IN
1989 CD
. .
'' ''

This DT
bill NN
simply RB
says VBZ
that IN
if IN
you PRP
want VBP
to TO
develop VB
property NN
on IN
a DT
barrier NN
island NN
you PRP
have VBP
to TO
do VB
so RB
without IN
taxpayer NN
support NN
. .

Private-property NN
rights NNS
would MD
be VB
upheld VBN
because IN
the DT
legislation NN
would MD
not RB
ban VB
coastal JJ
development NN
. .

However RB
, ,
home NN
builders NNS
would MD
have VB
to TO
bear VB
the DT
full JJ
costs NNS
of IN
such JJ
beach-house NN
construction NN
. .

A DT
Taxpayers NNP
Union NNP
study NN
concluded VBD
the DT
bill NN
would MD
save VB
taxpayers NNS
up IN
to TO
$ $
9.3 CD
billion CD
in IN
barrier-island NN
subsidies NNS
over IN
20 CD
years NNS
. .

Already RB
, ,
the DT
1982 CD
legislation NN
has VBZ
saved VBN
an DT
estimated VBN
$ $
800 CD
million CD
. .

Marshall NNP
Y. NNP
Taylor NNP

Communications NNP
Director NNP

National NNP
Taxpayers NNP
Union NNP

The DT
government NN
said VBD
13.1 CD
% NN
of IN
Americans NNPS
, ,
or CC
31.9 CD
million CD
people NNS
, ,
were VBD
living VBG
in IN
poverty NN
in IN
1988 CD
. .

While IN
last JJ
year NN
's POS
figure NN
was VBD
down RB
from IN
13.4 CD
% NN
in IN
1987 CD
and CC
marked VBD
the DT
fifth JJ
consecutive JJ
annual JJ
decline NN
in IN
the DT
poverty NN
rate NN
, ,
the DT
Census NNP
Bureau NNP
said VBD
the DT
1988 CD
drop NN
was VBD
n't RB
statistically RB
significant JJ
. .

The DT
bureau NN
's POS
report NN
also RB
showed VBD
that IN
while IN
some DT
measures NNS
of IN
the DT
nation NN
's POS
economic JJ
well-being NN
improved VBN
modestly RB
in IN
1988 CD
, ,
the DT
fruits NNS
of IN
prosperity NN
were VBD
shared VBN
less RBR
equitably RB
than IN
the DT
year NN
before RB
. .

Summarizing VBG
data NNS
derived VBN
from IN
a DT
March NNP
1989 CD
survey NN
of IN
58,000 CD
households NNS
, ,
William NNP
Butz NNP
, ,
associate JJ
director NN
of IN
the DT
Census NNP
Bureau NNP
, ,
said VBD
that IN
`` ``
most RBS
groups NNS
either DT
stayed VBD
the DT
same JJ
or CC
improved VBN
. .
'' ''

But CC
, ,
he PRP
added VBD
, ,
`` ``
Since IN
the DT
late JJ
1960s CD
, ,
the DT
distribution NN
of IN
income NN
has VBZ
been VBN
slowly RB
getting VBG
less RBR
equal JJ
. .

There EX
was VBD
no DT
reversal NN
-LCB- (
of IN
that DT
trend NN
-RCB- )
between IN
1987 CD
and CC
1988 CD
. .
'' ''

Per IN
capita NNS
income NN
, ,
a DT
widely RB
used VBN
measure NN
of IN
a DT
nation NN
's POS
economic JJ
health NN
, ,
hit VBD
a DT
record NN
in IN
1988 CD
, ,
rising VBG
1.7 CD
% NN
after IN
inflation NN
adjustment NN
to TO
$ $
13,120 CD
. .

But CC
the DT
median JJ
income NN
of IN
American JJ
families NNS
fell VBD
0.2 CD
% NN
, ,
the DT
first JJ
time NN
it PRP
has VBZ
failed VBN
to TO
rise VB
since IN
1982 CD
. .

Mr. NNP
Butz NNP
said VBD
the DT
divergence NN
in IN
the DT
two CD
measures NNS
reflects VBZ
changes NNS
in IN
family NN
size NN
and CC
structure NN
, ,
including VBG
the DT
rising VBG
number NN
of IN
female-headed JJ
families NNS
and CC
a DT
sharp JJ
increase NN
in IN
income NN
reported VBN
by IN
Americans NNPS
who WP
are VBP
n't RB
living VBG
in IN
families NNS
. .
As IN
a DT
result NN
of IN
last JJ
year NN
's POS
decline NN
, ,
the DT
government NN
's POS
estimate NN
for IN
the DT
number NN
of IN
people NNS
living VBG
below IN
the DT
poverty NN
line NN
declined VBN
by IN
about IN
500,000 CD
. .

The DT
poverty NN
threshold NN
, ,
defined VBN
as IN
three CD
times NNS
food NN
expenses NNS
as IN
calculated VBN
by IN
the DT
Agricultural NNP
Department NNP
, ,
last JJ
year NN
was VBD
$ $
12,092 CD
for IN
a DT
family NN
of IN
four CD
. .

The DT
Census NNP
Bureau NNP
counts VBZ
all DT
cash NN
income NN
in IN
determining VBG
whether IN
families NNS
are VBP
below IN
the DT
line NN
, ,
but CC
it PRP
does VBZ
n't RB
consider VB
other JJ
government NN
benefits NNS
, ,
such JJ
as IN
Medicare NNP
. .

Thanks NNS
largely RB
to TO
the DT
continued VBN
growth NN
of IN
the DT
U.S. NNP
economy NN
, ,
the DT
poverty NN
rate NN
is VBZ
now RB
substantially RB
lower JJR
than IN
the DT
1983 CD
peak NN
of IN
15.3 CD
% NN
, ,
but CC
the DT
improvements NNS
have VBP
been VBN
modest JJ
in IN
the DT
past JJ
couple NN
of IN
years NNS
. .

Poverty NN
remains VBZ
far RB
more RBR
widespread JJ
among IN
blacks NNS
than IN
other JJ
Americans NNPS
. .

In IN
1988 CD
, ,
31.6 CD
% NN
of IN
blacks NNS
lived VBD
in IN
poverty NN
, ,
compared VBN
with IN
10.1 CD
% NN
for IN
whites NNS
and CC
26.8 CD
% NN
for IN
Hispanics NNPS
. .

But CC
two-thirds NNS
of IN
all DT
poor JJ
Americans NNPS
were VBD
white JJ
. .

More RBR
than IN
half NN
of IN
poor JJ
families NNS
were VBD
headed VBN
by IN
women NNS
living VBG
without IN
men NNS
, ,
the DT
bureau NN
said VBD
. .

More RBR
than IN
three-fourths JJ
of IN
poor JJ
black JJ
families NNS
were VBD
headed VBN
by IN
women NNS
. .

The DT
poverty NN
rate NN
of IN
children NNS
under IN
18 CD
years NNS
old JJ
dropped VBD
last JJ
year NN
to TO
19.7 CD
% NN
from IN
20.5 CD
% NN
in IN
1987 CD
, ,
but CC
remained VBD
far RB
higher JJR
than IN
a DT
decade NN
ago RB
. .
The DT
rate NN
among IN
the DT
elderly JJ
-- :
12 CD
% NN
in IN
1988 CD
-- :
was VBD
n't RB
significantly RB
lower JJR
than IN
the DT
year NN
before RB
. .

If IN
it PRP
were VBD
n't RB
for IN
Social NNP
Security NNP
payments NNS
, ,
more JJR
than IN
three CD
times NNS
as IN
many JJ
elderly NN
would MD
be VB
below IN
the DT
poverty NN
line NN
, ,
Mr. NNP
Butz NNP
said VBD
. .

The DT
Census NNP
Bureau NNP
also RB
said VBD
: :

-- :
Some DT
17.2 CD
% NN
of IN
all DT
money NN
income NN
received VBN
by IN
families NNS
in IN
1988 CD
went VBD
to TO
the DT
wealthiest JJS
5 NN
% NN
of IN
all DT
families NNS
, ,
up IN
from IN
16.9 CD
% NN
in IN
1987 CD
. .

That DT
is VBZ
the DT
greatest JJS
share NN
reported VBD
for IN
any DT
year NN
since IN
1950 CD
, ,
although IN
changing VBG
definitions NNS
over IN
the DT
years NNS
distort VBP
the DT
comparison NN
. .

-- :
The DT
top JJ
fifth NN
of IN
all DT
families NNS
got VBD
44 CD
% NN
of IN
the DT
income NN
, ,
up IN
from IN
41.5 CD
% NN
a DT
decade NN
earlier RBR
. .

The DT
bottom NN
fifth NN
of IN
all DT
families NNS
got VBD
4.6 CD
% NN
of IN
the DT
income NN
, ,
down RB
from IN
5.2 CD
% NN
a DT
decade NN
earlier RBR
. .

-- :
Confirming VBG
other JJ
government NN
data NNS
showing VBG
that IN
wages NNS
are VBP
n't RB
keeping VBG
pace NN
with IN
inflation NN
, ,
earnings NNS
of IN
year-round JJ
, ,
full-time JJ
male JJ
workers NNS
fell VBD
1.3 CD
% NN
in IN
1988 CD
after IN
adjusting VBG
for IN
higher JJR
prices NNS
, ,
the DT
first JJ
such JJ
drop NN
since IN
1982 CD
. .

Earnings NNS
of IN
female JJ
workers NNS
were VBD
unchanged JJ
. .

-- :
Women NNP
working VBG
full-time JJ
earned VBD
66 CD
cents NNS
for IN
every DT
dollar NN
earned VBN
by IN
men NNS
, ,
a DT
penny NN
more JJR
than IN
in IN
1987 CD
and CC
seven CD
cents NNS
more JJR
than IN
in IN
1978 CD
. .

-- :
Median JJ
household NN
income NN
-- :
which WDT
includes VBZ
both DT
those DT
living VBG
in IN
families NNS
and CC
those DT
who WP
are VBP
n't RB
-- :
rose VBD
0.3 CD
% NN
last JJ
year NN
to TO
$ $
27,225 CD
after IN
inflation NN
. .

It PRP
rose VBD
sharply RB
in IN
the DT
Northeast NNP
and CC
Midwest NNP
and CC
fell VBD
slightly RB
in IN
the DT
South NNP
and CC
West NNP
. .

Median JJ
family NN
income NN
was VBD
$ $
32,191 CD
, ,
down RB
0.2 CD
% NN
. .

-- :
Per IN
capita NNS
income NN
of IN
blacks NNS
, ,
though IN
still RB
only RB
60 CD
% NN
that IN
of IN
whites NNS
, ,
rose VBD
3.9 CD
% NN
in IN
1988 CD
, ,
while IN
per IN
capita NNS
income NN
of IN
whites NNS
rose VBD
only RB
1.5 CD
% NN
. .

-- :
Among IN
married VBN
couples NNS
, ,
the DT
gap NN
between IN
blacks NNS
and CC
whites NNS
narrowed VBD
sharply RB
, ,
as IN
income NN
of IN
black JJ
families NNS
shot NN
up IN
6.8 CD
% NN
while IN
income NN
of IN
whites NNS
did VBD
n't RB
budge VB
. .

Fueling VBG
a DT
controversy NN
that WDT
has VBZ
been VBN
simmering VBG
for IN
years NNS
, ,
the DT
Census NNP
Bureau NNP
also RB
said VBD
its PRP$
figures NNS
would MD
look VB
far RB
rosier JJR
if IN
it PRP
recalculated VBD
the DT
poverty NN
threshold NN
using VBG
an DT
improved VBN
consumer-price JJ
measure NN
adopted VBN
in IN
1983 CD
. .

The DT
bureau NN
said VBD
some DT
3.5 CD
million CD
fewer JJR
people NNS
would MD
have VB
fallen VBN
below IN
the DT
poverty NN
line NN
in IN
1988 CD
-- :
and CC
the DT
poverty NN
rate NN
would MD
have VB
been VBN
10.5 CD
% NN
instead RB
of IN
13.1 CD
% NN
-- :
under IN
the DT
alternative NN
calculation NN
. .

Critics NNS
on IN
the DT
left VBN
and CC
right NN
have VBP
been VBN
calling VBG
for IN
all DT
sorts NNS
of IN
revisions NNS
to TO
the DT
measure NN
for IN
years NNS
. .

A DT
report NN
by IN
the DT
staff NN
of IN
the DT
Joint NNP
Economic NNP
Committee NNP
of IN
Congress NNP
released VBD
yesterday NN
concluded VBD
, ,
`` ``
It PRP
is VBZ
misleading JJ
to TO
make VB
this DT
change NN
without IN
adjusting VBG
for IN
other JJ
changes NNS
. .
'' ''

The DT
official JJ
poverty NN
threshold NN
is VBZ
set VBN
by IN
the DT
Office NNP
of IN
Management NNP
and CC
Budget NNP
. .

John NNP
E. NNP
Hayes NNP
Jr. NNP
was VBD
elected VBN
chairman NN
, ,
president NN
and CC
chief JJ
executive JJ
officer NN
, ,
succeeding VBG
David NNP
S. NNP
Black NNP
, ,
who WP
retired VBD
. .

Mr. NNP
Hayes NNP
, ,
52 CD
years NNS
old JJ
, ,
left VBN
Southwestern NNP
Bell NNP
Telephone NNP
Co. NNP
in IN
January NNP
, ,
where WRB
he PRP
had VBD
been VBN
chairman NN
, ,
president NN
and CC
chief JJ
executive NN
, ,
to TO
join VB
Triad NNP
Capital NNP
Partners NNPS
, ,
a DT
St. NNP
Louis NNP
company NN
with IN
interests NNS
in IN
solid JJ
waste NN
and CC
recycling NN
, ,
telecommunications NNS
and CC
international JJ
venture NN
capital NN
. .

He PRP
has VBZ
resigned VBN
his PRP$
posts NNS
at IN
Triad NNP
to TO
take VB
the DT
Kansas NNP
Power NNP
positions NNS
. .

Kansas NNP
Power NNP
said VBD
Mr. NNP
Black NNP
, ,
61 CD
, ,
chose VBD
early JJ
retirement NN
. .

The DT
space NN
shuttle NN
Atlantis NNP
boosted VBD
the DT
Galileo NNP
spacecraft NN
on IN
its PRP$
way NN
to TO
Jupiter NNP
, ,
giving VBG
a DT
big JJ
lift NN
as IN
well RB
to TO
an DT
ambitious JJ
U.S. NNP
program NN
of IN
space NN
exploration NN
. .

Seven CD
years NNS
late RB
in IN
the DT
launching NN
, ,
$ $
1 CD
billion CD
over IN
budget NN
and CC
a DT
target NN
of IN
anti-nuclear JJ
protestors NNS
, ,
Galileo NNP
has VBZ
long RB
been VBN
a DT
symbol NN
of IN
trouble NN
for IN
the DT
National NNP
Aeronautics NNP
and CC
Space NNP
Administration NNP
. .

But CC
yesterday NN
, ,
as IN
Atlantis NNP
rumbled VBD
into IN
a DT
patch NN
of IN
clear JJ
sky NN
above IN
Florida NNP
with IN
storm NN
clouds NNS
closing VBG
in IN
on IN
it PRP
, ,
NASA NNP
sought VBD
to TO
turn VB
Galileo NNP
into IN
a DT
symbol NN
of IN
triumph NN
. .

`` ``
NASA NNP
did VBD
it PRP
right NN
; :
that DT
's VBZ
the DT
message NN
, ,
'' ''
said VBD
J.R. NNP
Thompson NNP
, ,
the DT
agency NN
's POS
deputy NN
administrator NN
. .

The DT
$ $
1.4 CD
billion CD
robot NN
spacecraft NN
faces VBZ
a DT
six-year JJ
journey NN
to TO
explore VB
Jupiter NNP
and CC
its PRP$
16 CD
known VBN
moons NNS
. .

If IN
all DT
goes VBZ
well RB
, ,
it PRP
will MD
parachute VB
a DT
probe NN
into IN
the DT
dense JJ
Jovian JJ
atmosphere NN
in IN
July NNP
1995 CD
to TO
pick VB
up IN
detailed VBN
data NNS
about IN
gases NNS
that WDT
may MD
be VB
similar JJ
to TO
the DT
material NN
from IN
which WDT
the DT
solar JJ
system NN
was VBD
formed VBN
4.6 CD
billion CD
years NNS
ago RB
. .

Jupiter NNP
is VBZ
so RB
enormous JJ
-- :
its PRP$
mass NN
is VBZ
318 CD
times NNS
that IN
of IN
Earth NNP
-- :
that IN
its PRP$
gravity NN
may MD
have VB
trapped VBN
these DT
primordial JJ
gases NNS
and CC
never RB
let VB
them PRP
escape VB
. .

Investigating VBG
Jupiter NNP
in IN
detail NN
may MD
provide VB
clues NNS
to TO
what WP
astronomer NN
Tobias NNP
Owen NNP
calls VBZ
the DT
`` ``
cosmic JJ
paradox NN
'' ''
of IN
life NN
: :
Jupiter NNP
and CC
other JJ
bodies NNS
in IN
the DT
outer JJ
solar JJ
system NN
are VBP
rich JJ
in IN
elements NNS
such JJ
as IN
hydrogen NN
that WDT
are VBP
essential JJ
for IN
life NN
on IN
Earth NNP
, ,
but CC
these DT
planets NNS
are VBP
lifeless JJ
; :
Earth NNP
, ,
on IN
the DT
other JJ
hand NN
, ,
has VBZ
a DT
diminished VBN
store NN
of IN
such JJ
material NN
but CC
is VBZ
rich JJ
in IN
life NN
. .

Some DT
scientists NNS
have VBP
suggested VBN
that IN
comets NNS
and CC
asteroids NNS
may MD
have VB
brought VBN
enough RB
of IN
this DT
kind NN
of IN
material NN
from IN
the DT
outer JJ
solar JJ
system NN
to TO
Earth NNP
to TO
spawn VB
life NN
. .

Beginning VBG
in IN
December NNP
1995 CD
, ,
Galileo NNP
will MD
begin VB
a DT
two-year JJ
tour NN
of IN
the DT
Jovian JJ
moons NNS
. .

In IN
1979 CD
, ,
two CD
Voyager NNP
spacecraft NN
sent VBD
back RB
stunning JJ
photos NNS
of IN
Jovian JJ
moons NNS
Io NNP
and CC
Europa NNP
that WDT
showed VBD
them PRP
to TO
be VB
among IN
the DT
most RBS
intriguing JJ
bodies NNS
in IN
the DT
solar JJ
system NN
. .

The DT
photos NNS
showed VBD
active JJ
geysers NNS
on IN
Io NNP
spewing VBG
sulfurous JJ
material NN
190 CD
miles NNS
into IN
its PRP$
atmosphere NN
and CC
indicated VBD
that IN
Europa NNP
may MD
have VB
an DT
ocean NN
hidden VBN
under IN
a DT
thick JJ
sheet NN
of IN
ice NN
. .

Galileo NNP
's POS
photos NNS
of IN
Europa NNP
will MD
be VB
more JJR
than IN
1,000 CD
times NNS
as RB
sharp JJ
as IN
Voyager NNP
's POS
, ,
according VBG
to TO
Torrence NNP
Johnson NNP
, ,
Galileo NNP
's POS
project NN
scientist NN
, ,
and CC
may MD
show VB
whether IN
it PRP
actually RB
has VBZ
the DT
only RB
known VBN
ocean NN
other JJ
than IN
those DT
on IN
Earth NNP
. .

Atlantis NNP
lifted VBD
Galileo NNP
from IN
the DT
launch NN
pad NN
at IN
12:54 CD
p.m. NN
EDT NNP
and CC
released VBD
the DT
craft NN
from IN
its PRP$
cargo NN
bay NN
about IN
six CD
hours NNS
later RB
. .

`` ``
Galileo NNP
is VBZ
on IN
its PRP$
way NN
to TO
another DT
world NN
in IN
the DT
hands NNS
of IN
the DT
best JJS
flight NN
controllers NNS
in IN
this DT
world NN
, ,
'' ''
Atlantis NNP
Commander NNP
Donald NNP
Williams NNP
said VBD
. .

`` ``
Fly VB
safely RB
. .
'' ''

The DT
five-member JJ
Atlantis NNP
crew NN
will MD
conduct VB
several JJ
experiments NNS
, ,
including VBG
growing VBG
plants NNS
and CC
processing VBG
polymeric JJ
materials NNS
in IN
space NN
, ,
before IN
their PRP$
scheduled VBN
landing NN
at IN
Edwards NNP
Air NNP
Force NNP
Base NNP
, ,
Calif. NNP
, ,
Monday NNP
. .

The DT
Galileo NNP
project NN
started VBD
in IN
1977 CD
, ,
and CC
a DT
number NN
of IN
project NN
veterans NNS
were VBD
on IN
hand NN
to TO
watch VB
the DT
launch NN
. .

An DT
ebullient JJ
Mr. NNP
Johnson NNP
, ,
wearing VBG
a DT
NASA NNP
baseball NN
cap NN
and CC
carrying VBG
a DT
camera NN
and CC
binoculars NNS
, ,
called VBD
the DT
launch NN
`` ``
fantastic JJ
. .
'' ''

Benny NNP
Chin NNP
, ,
manager NN
of IN
the DT
Galileo NNP
probe NN
, ,
compared VBD
it PRP
to TO
watching VBG
a DT
child NN
leave NN
home NN
. .

`` ``
I PRP
'm VBP
happy JJ
and CC
sad JJ
, ,
'' ''
he PRP
said VBD
. .

Anti-nuclear JJ
activists NNS
took VBD
a DT
less RBR
positive JJ
view NN
. .

Having VBG
argued VBN
that IN
Galileo NNP
's POS
plutonium NN
power NN
source NN
could MD
have VB
released VBN
lethal JJ
doses NNS
of IN
radiation NN
if IN
the DT
shuttle NN
exploded VBD
yesterday NN
, ,
they PRP
were VBD
n't RB
quieted VBN
by IN
yesterday NN
's POS
successful JJ
launch NN
. .

Galileo NNP
will MD
skim VB
past JJ
Earth NNP
in IN
1990 CD
and CC
1992 CD
, ,
collecting VBG
energy NN
from IN
the DT
planet NN
's POS
gravitational JJ
field NN
to TO
gain VB
momentum NN
for IN
its PRP$
trip NN
to TO
Jupiter NNP
. .

The DT
protesters NNS
point VBP
out RP
that IN
Galileo NNP
also RB
could MD
crash VB
to TO
Earth NNP
then RB
. .

They PRP
said VBD
they PRP
dropped VBD
plans NNS
to TO
infiltrate VB
the DT
Kennedy NNP
Space NNP
Center NNP
after IN
NASA NNP
beefed VBD
up IN
its PRP$
security NN
. .

One CD
protest NN
did VBD
get VB
past JJ
NASA NNP
's POS
guard NN
, ,
though IN
; :
a DT
computer NN
virus NN
caused VBD
anti-Galileo JJ
messages NNS
to TO
flash VB
onto IN
some DT
computer NN
screens NNS
at IN
NASA NNP
centers NNS
. .

The DT
successful JJ
launch NN
continues VBZ
a DT
remarkable JJ
recovery NN
in IN
the DT
U.S. NNP
space-science NN
program NN
. .

An DT
unmanned JJ
spacecraft NN
, ,
Magellan NNP
, ,
already RB
is VBZ
heading VBG
to TO
Venus NNP
and CC
is VBZ
due JJ
to TO
begin VB
mapping VBG
the DT
planet NN
next JJ
August NNP
. .

Voyager NNP
2 CD
sent VBD
back RB
spectacular JJ
photos NNS
of IN
Neptune NNP
and CC
its PRP$
moon NN
, ,
Triton NNP
, ,
this DT
summer NN
. .

Next JJ
month NN
, ,
NASA NNP
plans VBZ
to TO
launch VB
a DT
satellite NN
to TO
study VB
cosmic JJ
rays NNS
dating VBG
from IN
the DT
birth NN
of IN
the DT
universe NN
. .

In IN
December NNP
, ,
the DT
shuttle NN
Columbia NNP
will MD
try VB
to TO
retrieve VB
a DT
satellite NN
that WDT
's VBZ
been VBN
in IN
orbit NN
for IN
nearly RB
five CD
years NNS
measuring VBG
the DT
deleterious JJ
effects NNS
of IN
space NN
on IN
materials NNS
and CC
instruments NNS
. .

Next NNP
March NNP
, ,
the DT
shuttle NN
Discovery NNP
will MD
launch VB
the DT
Hubble NNP
space NN
telescope NN
, ,
a DT
$ $
1.5 CD
billion CD
instrument NN
designed VBN
to TO
see VB
the DT
faintest JJS
galaxies NNS
in IN
the DT
universe NN
. .

Not RB
all DT
of IN
NASA NNP
's POS
space-science NN
work NN
will MD
be VB
so RB
auspicious JJ
, ,
though RB
. .

Around IN
Thanksgiving NNP
, ,
the DT
Solar NNP
Max NNP
satellite NN
, ,
which WDT
NASA NNP
repaired VBD
in IN
orbit NN
in IN
1984 CD
, ,
will MD
tumble VB
back RB
into IN
the DT
Earth NNP
's POS
atmosphere NN
. .

NASA NNP
wo MD
n't RB
attempt VB
a DT
rescue NN
; :
instead RB
, ,
it PRP
will MD
try VB
to TO
predict VB
whether IN
any DT
of IN
the DT
rubble NN
will MD
smash VB
to TO
the DT
ground NN
and CC
where WRB
. .

The DT
Associated NNP
Press NNP
's POS
earthquake NN
coverage NN
drew VBD
attention NN
to TO
a DT
phenomenon NN
that WDT
deserves VBZ
some DT
thought NN
by IN
public JJ
officials NNS
and CC
other JJ
policy NN
makers NNS
. .

Private JJ
relief NN
agencies NNS
, ,
such JJ
as IN
the DT
Salvation NNP
Army NNP
and CC
Red NNP
Cross NNP
, ,
mobilized VBD
almost RB
instantly RB
to TO
help VB
people NNS
, ,
while IN
the DT
Washington NNP
bureaucracy NN
`` ``
took VBD
hours NNS
getting VBG
into IN
gear NN
. .
'' ''

One CD
news NN
show NN
we PRP
saw VBD
yesterday NN
even RB
displayed VBD
25 CD
federal JJ
officials NNS
meeting NN
around IN
a DT
table NN
. .

We PRP
recall VBP
that IN
the DT
mayor NN
of IN
Charleston NNP
complained VBD
bitterly RB
about IN
the DT
federal JJ
bureaucracy NN
's POS
response NN
to TO
Hurricane NNP
Hugo NNP
. .

The DT
sense NN
grows VBZ
that IN
modern JJ
public JJ
bureaucracies NNS
simply RB
do VBP
n't RB
perform VB
their PRP$
assigned VBN
functions NNS
well RB
. .

Bally NNP
Manufacturing NNP
Corp. NNP
and CC
New NNP
York NNP
developer NN
Donald NNP
Trump NNP
have VBP
agreed VBN
in IN
principle NN
to TO
a DT
$ $
6.5 CD
million CD
settlement NN
of IN
shareholder NN
litigation NN
stemming VBG
from IN
Bally NNP
's POS
alleged VBN
greenmail NN
payment NN
to TO
Mr. NNP
Trump NNP
. .

According VBG
to TO
lawyers NNS
familiar JJ
with IN
the DT
settlement NN
talks NNS
, ,
the DT
verbal JJ
agreement NN
to TO
end VB
a DT
lawsuit NN
filed VBN
more JJR
than IN
two CD
years NNS
ago RB
was VBD
reached VBN
last JJ
week NN
and CC
will MD
soon RB
be VB
submitted VBN
to TO
a DT
federal JJ
judge NN
in IN
Camden NNP
, ,
N.J NNP
. .

In IN
February NNP
1987 CD
, ,
Bally NNP
thwarted VBD
a DT
possible JJ
hostile JJ
takeover NN
bid NN
from IN
Mr. NNP
Trump NNP
by IN
agreeing VBG
to TO
buy VB
2.6 CD
million CD
of IN
Mr. NNP
Trump NNP
's POS
3.1 CD
million CD
Bally NNP
shares NNS
for IN
$ $
83.7 CD
million CD
-- :
more JJR
than IN
$ $
18 CD
million CD
above IN
market NN
price NN
. .

The DT
term NN
greenmail NN
refers VBZ
to TO
a DT
situation NN
where WRB
a DT
company NN
pays VBZ
a DT
premium NN
over IN
market NN
value NN
to TO
repurchase VB
a DT
stake NN
held VBN
by IN
a DT
potential JJ
acquirer NN
. .

Lawyers NNS
for IN
shareholders NNS
, ,
Bally NNP
and CC
Mr. NNP
Trump NNP
all DT
declined VBD
to TO
talk VB
publicly RB
about IN
the DT
proposed VBN
settlement NN
, ,
citing VBG
a DT
request NN
by IN
a DT
federal JJ
court NN
magistrate NN
not RB
to TO
reveal VB
details NNS
of IN
the DT
agreement NN
until IN
it PRP
is VBZ
completed VBN
. .

But CC
some DT
attorneys NNS
who WP
are VBP
familiar JJ
with IN
the DT
matter NN
said VBD
the DT
$ $
6.5 CD
million CD
payment NN
will MD
be VB
shared VBN
by IN
Bally NNP
and CC
Mr. NNP
Trump NNP
, ,
with IN
the DT
casino NN
and CC
hotel NN
concern NN
probably RB
paying VBG
the DT
bulk NN
of IN
the DT
money NN
. .

The DT
amount NN
Bally NNP
and CC
Mr. NNP
Trump NNP
will MD
pay VB
to TO
settle VB
the DT
class-action JJ
suit NN
pales VBZ
in IN
comparison NN
to TO
the DT
$ $
45 CD
million CD
Walt NNP
Disney NNP
Co. NNP
and CC
Saul NNP
Steinberg NNP
's POS
Reliance NNP
Group NNP
Holdings NNP
Inc. NNP
agreed VBD
to TO
pay VB
to TO
settle VB
a DT
similar JJ
suit NN
in IN
July NNP
. .

That DT
settlement NN
represented VBD
the DT
first JJ
time NN
shareholders NNS
were VBD
granted VBN
a DT
major JJ
payment NN
in IN
a DT
greenmail NN
case NN
. .

Mr. NNP
Steinberg NNP
made VBD
a DT
$ $
59.7 CD
million CD
profit NN
on IN
the DT
sale NN
to TO
Disney NNP
of IN
his PRP$
investment NN
in IN
the DT
company NN
in IN
1984 CD
. .

But CC
lawyers NNS
said VBD
Mr. NNP
Steinberg NNP
probably RB
faced VBD
much RB
more RBR
potential JJ
liability NN
because IN
, ,
when WRB
he PRP
sued VBD
Disney NNP
during IN
his PRP$
takeover NN
battle NN
, ,
he PRP
filed VBD
on IN
behalf NN
of IN
all DT
shareholders NNS
. .

When WRB
Disney NNP
offered VBD
to TO
pay VB
Mr. NNP
Steinberg NNP
a DT
premium NN
for IN
his PRP$
shares NNS
, ,
the DT
New NNP
York NNP
investor NN
did VBD
n't RB
demand VB
the DT
company NN
also RB
pay VB
a DT
premium NN
to TO
other JJ
shareholders NNS
. .

When WRB
Mr. NNP
Trump NNP
sued VBD
Bally NNP
, ,
he PRP
sued VBD
only RB
on IN
behalf NN
of IN
himself PRP
. .

Mr. NNP
Trump NNP
and CC
Bally NNP
also RB
appeared VBD
to TO
have VB
some DT
leverage NN
in IN
the DT
case NN
because IN
in IN
the DT
state NN
of IN
Delaware NNP
, ,
where WRB
Bally NNP
is VBZ
incorporated VBN
, ,
courts NNS
have VBP
held VBN
that DT
greenmail NN
is VBZ
often RB
protected VBN
by IN
the DT
business-judgment NN
rule NN
. .

That DT
rule NN
gives VBZ
boards NNS
of IN
directors NNS
wide JJ
latitude NN
in IN
deciding VBG
how WRB
to TO
deal VB
with IN
dissident JJ
shareholders NNS
. .

SENATE NNP
HEARS VBZ
final JJ
arguments NNS
in IN
impeachment NN
trial NN
of IN
federal JJ
judge NN
. .
Yesterday NN
, ,
U.S. NNP
Judge NNP
Alcee NNP
Hastings NNP
faced VBD
his PRP$
jury NN
-- :
the DT
full JJ
U.S. NNP
Senate NNP
-- :
and CC
said VBD
, ,
`` ``
I PRP
am VBP
not RB
guilty JJ
of IN
having VBG
committed VBN
any DT
crime NN
. .
'' ''

Seventeen CD
articles NNS
of IN
impeachment NN
against IN
the DT
Florida NNP
judge NN
, ,
one CD
of IN
the DT
few JJ
blacks NNS
on IN
the DT
U.S. NNP
bench NN
, ,
were VBD
approved VBN
by IN
the DT
House NNP
in IN
August NNP
1988 CD
. .

The DT
central JJ
charge NN
against IN
Judge NNP
Hastings NNP
is VBZ
that IN
he PRP
conspired VBD
with IN
a DT
Washington NNP
lawyer NN
to TO
obtain VB
a DT
$ $
150,000 CD
bribe NN
from IN
defendants NNS
in IN
a DT
criminal JJ
case NN
before IN
the DT
judge NN
, ,
in IN
return NN
for IN
leniency NN
. .

He PRP
is VBZ
also RB
accused VBN
of IN
lying VBG
under IN
oath NN
and CC
of IN
leaking VBG
information NN
obtained VBN
from IN
a DT
wiretap NN
he PRP
supervised VBD
. .

The DT
Senate NNP
's POS
public JJ
gallery NN
was VBD
packed VBN
with IN
Judge NNP
Hastings NNP
' POS
supporters NNS
, ,
who WP
erupted VBD
into IN
applause NN
after IN
he PRP
finished VBD
his PRP$
argument NN
. .

Judge NNP
Hastings NNP
, ,
who WP
was VBD
acquitted VBN
of IN
similar JJ
charges NNS
by IN
a DT
federal JJ
jury NN
in IN
1983 CD
, ,
claims NNS
he PRP
is VBZ
being VBG
victimized VBN
and CC
that IN
the DT
impeachment NN
proceedings NNS
against IN
him PRP
constitute VBP
double JJ
jeopardy NN
. .

But CC
Rep. NNP
John NNP
Bryant NNP
-LRB- (
D. NNP
, ,
Texas NNP
-RRB- )
, ,
the DT
lead NN
counsel NN
for IN
the DT
House NNP
managers NNS
who WP
conducted VBD
a DT
lengthy JJ
inquiry NN
into IN
Judge NNP
Hastings NNP
' POS
activities NNS
, ,
said VBD
`` ``
a DT
mountain NN
of IN
evidence NN
points NNS
to TO
his PRP$
certain JJ
guilt NN
. .
'' ''

The DT
Senate NNP
will MD
deliberate VB
behind IN
closed VBN
doors NNS
today NN
and CC
is VBZ
scheduled VBN
to TO
vote VB
on IN
the DT
impeachment NN
tomorrow NN
. .

If IN
the DT
judge NN
is VBZ
impeached VBN
, ,
as IN
is VBZ
thought VBN
likely JJ
, ,
he PRP
will MD
be VB
removed VBN
from IN
office NN
immediately RB
. .

However RB
, ,
Judge NNP
Hastings NNP
has VBZ
said VBD
he PRP
will MD
continue VB
to TO
fight VB
and CC
is VBZ
contemplating VBG
an DT
appeal NN
of IN
any DT
impeachment NN
to TO
the DT
U.S. NNP
Supreme NNP
Court NNP
. .

COMPANIES NNS
SEEKING VBG
to TO
make VB
insurers NNS
pay VB
for IN
pollution NN
cleanup NN
win NN
court NN
victory NN
. .
In IN
a DT
case NN
involving VBG
Avondale NNP
Industries NNP
Inc. NNP
and CC
its PRP$
insurer NN
, ,
Travelers NNP
Cos. NNP
, ,
the DT
Second NNP
U.S. NNP
Circuit NNP
Court NNP
of IN
Appeals NNPS
in IN
New NNP
York NNP
ruled VBD
in IN
favor NN
of IN
the DT
company NN
on IN
two CD
issues NNS
that IN
lawyers NNS
say VBP
are VBP
central JJ
to TO
dozens NNS
of IN
pollution NN
cases NNS
around IN
the DT
country NN
. .

Travelers NNP
and CC
other JJ
insurers NNS
have VBP
maintained VBN
that IN
cleanup NN
costs NNS
are VBP
n't RB
damages VBZ
and CC
thus RB
are VBP
n't RB
covered VBN
under IN
commercial JJ
policies NNS
. .

They PRP
also RB
have VBP
argued VBN
that IN
government NN
proceedings NNS
notifying VBG
a DT
company NN
of IN
potential JJ
responsibility NN
do VBP
n't RB
fit VB
the DT
legal JJ
definition NN
of IN
a DT
lawsuit NN
; :
thus RB
, ,
such JJ
governmental JJ
proceedings NNS
are VBP
n't RB
covered VBN
by IN
the DT
policies NNS
, ,
the DT
insurers NNS
say VBP
. .

The DT
appeals NNS
court VBP
disagreed VBD
on IN
both DT
counts NNS
. .
Avondale NNP
was VBD
notified VBN
by IN
Louisiana NNP
officials NNS
in IN
1986 CD
that IN
it PRP
was VBD
potentially RB
responsible JJ
for IN
a DT
cleanup NN
at IN
an DT
oil-recycling NN
plant NN
. .

Avondale NNP
asked VBD
Travelers NNP
to TO
defend VB
it PRP
in IN
the DT
state NN
proceeding NN
, ,
but CC
the DT
insurer NN
did VBD
n't RB
respond VB
. .

The DT
appeals NNS
court VBP
upheld VBD
a DT
district NN
judge NN
's POS
ruling NN
that IN
the DT
insurer NN
had VBD
to TO
defend VB
the DT
company NN
in IN
such JJ
proceedings NNS
. .

The DT
appeals NNS
court VBP
also RB
said VBD
, ,
`` ``
We PRP
think VBP
an DT
ordinary JJ
businessman NN
reading VBG
this DT
policy NN
would MD
have VB
believed VBN
himself PRP
covered VBD
for IN
the DT
demands NNS
and CC
potential JJ
damage NN
claims NNS
'' ''
stemming VBG
from IN
any DT
cleanup NN
. .

`` ``
This DT
decision NN
will MD
have VB
a DT
very RB
considerable JJ
impact NN
, ,
'' ''
said VBD
Kenneth NNP
Abraham NNP
, ,
professor NN
of IN
environmental JJ
law NN
and CC
insurance NN
law NN
at IN
the DT
University NNP
of IN
Virginia NNP
, ,
because IN
many JJ
commercial JJ
insurance NN
policies NNS
are VBP
issued VBN
by IN
companies NNS
based VBN
in IN
New NNP
York NNP
. .

William NNP
Greaney NNP
, ,
an DT
attorney NN
for IN
the DT
Chemical NNP
Manufacturers NNP
Association NNP
, ,
said VBD
that IN
while IN
other JJ
appeals NNS
courts NNS
have VBP
ruled VBN
differently RB
on IN
whether IN
cleanup NN
costs NNS
are VBP
damages NNS
, ,
the DT
influence NN
of IN
the DT
appeals NNS
court VBP
in IN
New NNP
York NNP
`` ``
will MD
make VB
insurers NNS
sit VB
up VB
and CC
listen VB
. .
'' ''

He PRP
said VBD
the DT
decision NN
was VBD
the DT
first JJ
in IN
which WDT
a DT
federal JJ
appeals NNS
court VBP
has VBZ
ruled VBN
whether IN
administrative JJ
government NN
proceedings NNS
qualify VBP
as IN
litigation NN
. .

Barry NNP
R. NNP
Ostrager NNP
, ,
an DT
attorney NN
for IN
Travelers NNP
, ,
said VBD
, ,
`` ``
there EX
are VBP
procedural JJ
bases NNS
on IN
which WDT
this DT
case NN
will MD
be VB
appealed VBN
further JJ
. .
'' ''

NEW NNP
YORK NNP
'S VBZ
poor JJ
face NN
nearly RB
three CD
million CD
legal JJ
problems NNS
a DT
year NN
without IN
legal JJ
help NN
. .

That DT
is VBZ
the DT
conclusion NN
of IN
a DT
report NN
released VBN
by IN
the DT
New NNP
York NNP
State NNP
Bar NNP
Association NNP
. .

The DT
report NN
was VBD
based VBN
on IN
a DT
telephone NN
survey NN
of IN
1,250 CD
low-income JJ
households NNS
across IN
the DT
state NN
, ,
a DT
mail NN
survey NN
of IN
major JJ
legal-services NNS
programs NNS
and CC
on-site JJ
interviews NNS
with IN
individuals NNS
in IN
the DT
field NN
. .

`` ``
The DT
report NN
provides VBZ
detailed VBN
documentation NN
of IN
the DT
extent NN
and CC
nature NN
of IN
the DT
problem NN
and CC
indicates VBZ
how WRB
we PRP
may MD
want VB
to TO
shape VB
solutions NNS
, ,
'' ''
said VBD
Joseph NNP
Genova NNP
, ,
chairman NN
of IN
the DT
committee NN
that WDT
oversaw VBD
the DT
survey NN
and CC
a DT
partner NN
at IN
the DT
law NN
firm NN
of IN
Milbank NNP
, ,
Tweed NNP
, ,
Hadley NNP
& CC
McCloy NNP
. .

According VBG
to TO
the DT
study NN
, ,
slightly RB
more JJR
than IN
34 CD
% NN
of IN
those DT
surveyed VBN
reported VBD
having VBG
at IN
least JJS
one CD
housing NN
problem NN
every DT
year NN
for IN
which WDT
they PRP
had VBD
no DT
legal JJ
help NN
. .

Nearly RB
36 CD
% NN
ranked VBD
housing NN
problems NNS
as IN
their PRP$
most RBS
serious JJ
unmet JJ
legal JJ
need NN
. .

Other JJ
areas NNS
targeted VBN
by IN
the DT
survey NN
's POS
respondents NNS
included VBD
difficulty NN
obtaining VBG
or CC
maintaining VBG
public JJ
benefits NNS
-LRB- (
22 CD
% NN
-RRB- )
, ,
consumer NN
fraud NN
-LRB- (
15.4 CD
% NN
-RRB- )
, ,
and CC
health-care NN
issues NNS
-LRB- (
15 CD
% NN
-RRB- )
. .

During IN
the DT
15-month JJ
survey NN
, ,
43 CD
% NN
of IN
all DT
legal-services NNS
programs NNS
said VBD
that IN
at IN
some DT
period NN
they PRP
were VBD
unable JJ
to TO
accept VB
new JJ
clients NNS
unless IN
they PRP
had VBD
an DT
emergency NN
. .
Mr. NNP
Genova NNP
said VBD
the DT
committee NN
may MD
meet VB
to TO
propose VB
solutions NNS
to TO
the DT
problems NNS
identified VBN
in IN
the DT
study NN
. .

PROSECUTOR NNP
TO TO
JOIN VB
Gibson NNP
Dunn NNP
: :

Assistant NNP
U.S. NNP
Attorney NNP
Randy NNP
Mastro NNP
, ,
who WP
headed VBD
the DT
government NN
's POS
racketeering NN
case NN
against IN
the DT
International NNP
Brotherhood NNP
of IN
Teamsters NNPS
, ,
will MD
join VB
Gibson NNP
, ,
Dunn NNP
& CC
Crutcher NNP
in IN
its PRP$
New NNP
York NNP
office NN
. .
Mr. NNP
Mastro NNP
has VBZ
been VBN
with IN
the DT
New NNP
York NNP
U.S. NNP
attorney NN
's POS
office NN
for IN
nearly RB
five CD
years NNS
. .

In IN
1987 CD
he PRP
became VBD
deputy NN
chief NN
of IN
the DT
civil JJ
division NN
. .

Mr. NNP
Mastro NNP
will MD
do VB
civil JJ
litigation NN
and CC
white-collar JJ
defense NN
work NN
for IN
Gibson NNP
Dunn NNP
, ,
which WDT
is VBZ
based VBN
in IN
Los NNP
Angeles NNP
. .

FORMER JJ
APPLE NNP
COMPUTER NNP
Inc. NNP
general JJ
counsel NN
John NNP
P. NNP
Karalis NNP
has VBZ
joined VBN
the DT
Phoenix NNP
, ,
Ariz. NNP
, ,
law NN
firm NN
of IN
Brown NNP
& CC
Bain NNP
. .

Mr. NNP
Karalis NNP
, ,
51 CD
, ,
will MD
specialize VB
in IN
corporate JJ
law NN
and CC
international JJ
law NN
at IN
the DT
110-lawyer JJ
firm NN
. .

Before IN
joining VBG
Apple NNP
in IN
1986 CD
, ,
Mr. NNP
Karalis NNP
served VBD
as IN
general JJ
counsel NN
at IN
Sperry NNP
Corp NNP
. .

After IN
failing VBG
to TO
find VB
a DT
buyer NN
for IN
the DT
Sears NNP
Tower NNP
in IN
Chicago NNP
, ,
Sears NNP
, ,
Roebuck NNP
& CC
Co. NNP
is VBZ
negotiating VBG
with IN
Boston NNP
pension NN
fund NN
adviser NN
Aldrich NNP
, ,
Eastman NNP
& CC
Waltch NNP
Inc. NNP
to TO
refinance VB
the DT
property NN
for IN
close RB
to TO
$ $
850 CD
million CD
, ,
according VBG
to TO
people NNS
close VBP
to TO
the DT
negotiations NNS
. .

Under IN
the DT
proposed VBN
agreement NN
involving VBG
the DT
world NN
's POS
tallest JJS
building NN
, ,
Chicago-based JJ
Sears NNP
would MD
receive VB
about IN
half PDT
the DT
money NN
through IN
conventional JJ
mortgage NN
financing NN
and CC
the DT
other JJ
half NN
as IN
a DT
convertible JJ
mortgage NN
. .

At IN
the DT
end NN
of IN
the DT
term NN
of IN
the DT
convertible JJ
loan NN
, ,
Sears NNP
could MD
still RB
own JJ
half PDT
the DT
building NN
, ,
and CC
AEW NNP
could MD
own VB
the DT
other JJ
half NN
. .

Neither CC
side NN
would MD
comment VB
. .

The DT
parties NNS
are VBP
currently RB
negotiating VBG
over IN
who WP
would MD
manage VB
the DT
building NN
, ,
which WDT
will MD
be VB
emptied VBN
of IN
6,000 CD
employees NNS
from IN
Sears NNP
' POS
merchandise NN
group NN
, ,
which WDT
is VBZ
moving VBG
elsewhere RB
. .

The DT
new JJ
manager NN
will MD
face VB
the DT
daunting JJ
task NN
of IN
leasing NN
1.8 CD
million CD
square NN
feet NNS
in IN
a DT
relatively RB
soft JJ
Chicago NNP
real JJ
estate NN
market NN
. .

Also RB
, ,
it PRP
has VBZ
not RB
yet RB
been VBN
decided VBN
exactly RB
how WRB
much NN
of IN
the DT
mortgage NN
AEW NNP
will MD
be VB
able JJ
to TO
convert VB
into IN
equity NN
. .

Convertible JJ
mortgages NNS
have VBP
become VBN
an DT
increasingly RB
popular JJ
way NN
to TO
finance VB
prestigious JJ
buildings NNS
of IN
late JJ
. .

In IN
a DT
convertible JJ
mortgage NN
, ,
the DT
investor NN
lends VBZ
the DT
building NN
owner NN
a DT
certain JJ
amount NN
in IN
return NN
for IN
the DT
option NN
to TO
convert VB
its PRP$
interest NN
into IN
equity NN
, ,
usually RB
less JJR
than IN
50 CD
% NN
, ,
at IN
the DT
end NN
of IN
the DT
loan NN
term NN
. .

During IN
the DT
term NN
, ,
the DT
lender NN
can MD
either DT
receive VB
a DT
percentage NN
of IN
cash NN
flow NN
, ,
a DT
percentage NN
of IN
the DT
building NN
's POS
appreciation NN
or CC
a DT
fixed VBN
return NN
. .

The DT
main JJ
advantage NN
of IN
a DT
convertible JJ
mortgage NN
is VBZ
that IN
it PRP
is VBZ
not RB
a DT
sale NN
and CC
therefore RB
does VBZ
not RB
trigger VB
costly JJ
transfer NN
taxes NNS
and CC
reappraisal NN
. .

Sears NNP
said VBD
it PRP
would MD
put VB
the DT
110-story JJ
tower NN
on IN
the DT
block NN
almost RB
a DT
year NN
ago RB
as IN
part NN
of IN
its PRP$
anti-takeover JJ
restructuring NN
. .

But CC
Japanese JJ
institutions NNS
shied VBD
away RB
from IN
bidding NN
on IN
the DT
high-profile JJ
tower NN
out IN
of IN
fear VB
their PRP$
purchase NN
of IN
the DT
property NN
would MD
trigger VB
anti-Japanese JJ
sentiment NN
. .

Last JJ
summer NN
, ,
Sears NNP
appeared VBD
to TO
have VB
a DT
deal NN
with IN
Canadian JJ
developer NN
Olympia NNP
& CC
York NNP
Developments NNP
Ltd NNP
. .

But CC
that DT
deal NN
fell VBD
through IN
in IN
September NNP
after IN
it PRP
became VBD
clear JJ
that IN
the DT
sale NN
would MD
lead VB
to TO
a DT
major JJ
real JJ
estate NN
tax NN
reassessment NN
, ,
raising VBG
property NN
taxes NNS
, ,
and CC
making VBG
it PRP
difficult JJ
to TO
lease VB
the DT
building NN
at IN
competitive JJ
prices NNS
. .

Real JJ
estate NN
industry NN
executives NNS
said VBD
Sears NNP
' POS
investment NN
banker NN
, ,
Goldman NNP
, ,
Sachs NNP
& CC
Co. NNP
, ,
sought VBD
financing NN
in IN
Japan NNP
. .

However RB
, ,
Japanese JJ
authorities NNS
apparently RB
were VBD
concerned VBN
that IN
a DT
refinancing NN
also RB
would MD
attract VB
too RB
much JJ
publicity NN
. .

Sears NNP
then RB
went VBD
back RB
to TO
AEW NNP
, ,
the DT
Boston NNP
pension NN
adviser NN
that WDT
had VBD
proposed VBN
a DT
convertible JJ
debt NN
deal NN
during IN
the DT
first JJ
round NN
of IN
bids NNS
last JJ
spring NN
. .

AEW NNP
has VBZ
$ $
3.5 CD
billion CD
of IN
real JJ
estate NN
investments NNS
nationwide JJ
, ,
according VBG
to TO
a DT
spokesman NN
. .

Tandy NNP
Corp. NNP
said VBD
it PRP
signed VBD
a DT
definitive JJ
agreement NN
to TO
acquire VB
two CD
units NNS
of IN
Datatronic NNP
AB NNP
of IN
Stockholm NNP
for IN
cash NN
. .

The DT
amount NN
was VBD
n't RB
disclosed VBN
. .

The DT
electronics NNS
maker NN
and CC
retailer NN
previously RB
estimated VBD
the DT
sale NN
price NN
at IN
between IN
$ $
100 CD
million CD
and CC
$ $
200 CD
million CD
for IN
Datatronic NNP
's POS
Victor NNP
microcomputer NN
and CC
Micronic NNP
hand-held JJ
computer NN
subsidiaries NNS
. .

In IN
addition NN
, ,
Tandy NNP
will MD
acquire VB
rights NNS
to TO
the DT
Victor NNP
and CC
Micronic NNP
names NNS
for IN
computers NNS
. .

During IN
1988 CD
, ,
the DT
Datatronic NNP
subsidiaries NNS
had VBD
combined VBN
sales NNS
in IN
excess NN
of IN
$ $
200 CD
million CD
. .

The DT
transaction NN
will MD
give VB
Tandy NNP
a DT
well-known JJ
European JJ
computer NN
brand NN
that WDT
includes VBZ
2,700 CD
dealers NNS
and CC
distributors NNS
marketing NN
to TO
medium-sized JJ
business NN
and CC
educational JJ
institutions NNS
. .

Closing NN
of IN
the DT
transaction NN
is VBZ
subject NN
to TO
certain JJ
conditions NNS
and CC
regulatory JJ
approvals NNS
, ,
the DT
company NN
said VBD
. .

Two CD
rules NNS
in IN
pending VBG
congressional JJ
legislation NN
threaten VB
to TO
hinder VB
leveraged JJ
buy-outs NNS
by IN
raising VBG
the DT
price NN
tags NNS
of IN
such JJ
deals NNS
by IN
as RB
much JJ
as IN
10 CD
% NN
. .

Wall NNP
Street NNP
is VBZ
seething VBG
over IN
the DT
rules NNS
, ,
which WDT
would MD
curtail VB
the DT
tax NN
deductibility NN
of IN
debt NN
used VBN
in IN
most RBS
LBOs NNS
. .

The DT
provisions NNS
, ,
in IN
deficit-reduction NN
bills NNS
recently RB
passed VBN
by IN
the DT
House NNP
and CC
Senate NNP
, ,
could MD
further VB
cool VB
the DT
takeover NN
boom NN
that WDT
has VBZ
been VBN
the DT
driving VBG
force NN
behind IN
the DT
bull NN
market NN
in IN
stocks NNS
for IN
much NN
of IN
the DT
1980s CD
, ,
some DT
tax NN
experts NNS
and CC
investment NN
bankers NNS
argue VBP
. .

Indeed RB
, ,
some DT
investment NN
bankers NNS
have VBP
already RB
started VBN
restructuring NN
deals NNS
to TO
cope VB
with IN
the DT
expected VBN
rules NNS
. .

Wall NNP
Street NNP
has VBZ
all DT
but CC
conceded VBN
on IN
the DT
issue NN
and CC
is VBZ
now RB
lobbying VBG
for IN
the DT
less RBR
onerous JJ
Senate NNP
version NN
of IN
one CD
of IN
the DT
provisions NNS
. .

At IN
issue NN
is VBZ
the DT
deductibility NN
of IN
certain JJ
junk NN
bonds NNS
that WDT
are VBP
used VBN
in IN
most RBS
LBOs NNS
. .

Such JJ
high-yield JJ
debt NN
is VBZ
similar JJ
to TO
a DT
zero-coupon JJ
bond NN
in IN
that DT
it PRP
is VBZ
sold VBN
at IN
a DT
discount NN
to TO
face VB
value NN
, ,
with IN
interest NN
accruing VBG
instead RB
of IN
being VBG
paid VBN
to TO
the DT
holder NN
. .

Under IN
current JJ
rules NNS
, ,
that IN
accrued VBN
interest NN
is VBZ
deductible JJ
by IN
the DT
company NN
issuing VBG
the DT
debt NN
. .

The DT
House NNP
version NN
of IN
the DT
legislation NN
would MD
kill VB
that DT
deduction NN
, ,
and CC
label VB
any DT
such JJ
debt NN
as IN
equity NN
, ,
which WDT
is VBZ
n't RB
deductible JJ
. .

The DT
less-rigorous JJR
Senate NNP
version NN
would MD
defer VB
the DT
deductibility NN
for IN
roughly RB
five CD
years NNS
. .

`` ``
You PRP
see VBP
these DT
in NN
just RB
about IN
every DT
LBO NNP
, ,
'' ''
said VBD
Robert NNP
Willens NNP
, ,
senior JJ
vice NN
president NN
in IN
charge NN
of IN
tax NN
issues NNS
at IN
Shearson NNP
Lehman NNP
Hutton NNP
Inc. NNP
in IN
New NNP
York NNP
. .

`` ``
It PRP
becomes VBZ
a DT
source NN
of IN
cash NN
'' ''
for IN
the DT
company NN
making VBG
the DT
LBO NNP
because IN
it PRP
gets VBZ
a DT
deduction NN
and CC
does VBZ
n't RB
have VB
to TO
repay VB
the DT
debt NN
for IN
several JJ
years NNS
. .

Typically RB
, ,
Mr. NNP
Willens NNP
estimates VBZ
, ,
this DT
type NN
of IN
debt NN
makes VBZ
up IN
15 CD
% NN
to TO
20 CD
% NN
of IN
the DT
financing NN
for IN
LBOs NNS
. .

These DT
types NNS
of IN
bonds NNS
have VBP
been VBN
used VBN
in IN
buy-outs NNS
of IN
companies NNS
such JJ
as IN
RJR NNP
Nabisco NNP
Inc. NNP
, ,
Storer NNP
Communications NNP
Inc. NNP
and CC
Kroger NNP
Co NNP
. .

A DT
second JJ
provision NN
passed VBN
by IN
the DT
Senate NNP
and CC
House NNP
would MD
eliminate VB
a DT
rule NN
allowing VBG
companies NNS
that IN
post NN
losses NNS
resulting VBG
from IN
LBO NNP
debt NN
to TO
receive VB
refunds NNS
of IN
taxes NNS
paid VBN
over IN
the DT
previous JJ
three CD
years NNS
. .

For IN
example NN
, ,
if IN
a DT
company NN
posted VBD
a DT
loss NN
of IN
$ $
100 CD
million CD
from IN
buy-out NN
interest NN
payments NNS
, ,
the DT
existing VBG
rule NN
would MD
allow VB
the DT
concern NN
to TO
be VB
able JJ
to TO
receive VB
a DT
refund NN
from IN
the DT
tax NN
it PRP
paid VBD
from IN
1986 CD
through IN
1989 CD
, ,
when WRB
it PRP
may MD
have VB
been VBN
a DT
profitable JJ
public JJ
company NN
. .

But CC
that DT
rule NN
is VBZ
being VBG
virtually RB
overlooked VBN
by IN
Wall NNP
Street NNP
, ,
which WDT
is VBZ
concentrating VBG
on IN
coping VBG
with IN
the DT
deduction NN
issue NN
. .

`` ``
Prices NNS
for IN
LBOs NNS
have VBP
to TO
come VB
down RB
if IN
you PRP
do VBP
n't RB
have VB
that DT
feature NN
, ,
'' ''
argued VBD
Lawrence NNP
Schloss NNP
, ,
managing VBG
director NN
for IN
merchant NN
banking NN
at IN
Donaldson NNP
, ,
Lufkin NNP
& CC
Jenrette NNP
Securities NNP
Corp. NNP
in IN
New NNP
York NNP
. .

Several NNP
Wall NNP
Street NNP
officials NNS
say VBP
the DT
proposed VBN
legislation NN
already RB
is VBZ
having VBG
an DT
impact NN
. .

An DT
investment NN
group NN
led VBN
by IN
Chicago NNP
's POS
Pritzker NNP
family NN
recently RB
lowered VBD
a DT
$ $
3.35 CD
billion CD
bid NN
for IN
American NNP
Medical NNP
International NNP
, ,
Beverly NNP
Hills NNP
, ,
Calif. NNP
, ,
because IN
of IN
the DT
threat NN
of IN
the DT
legislation NN
. .

Moreover RB
, ,
one CD
investment NN
banker NN
, ,
who WP
requested VBD
anonymity NN
, ,
said VBD
his PRP$
firm NN
did VBD
n't RB
raise VB
the DT
ante NN
for IN
a DT
target NN
company NN
earlier RBR
this DT
month NN
after IN
a DT
stronger JJR
bid NN
emerged VBD
from IN
a DT
public JJ
company NN
that WDT
was VBD
n't RB
concerned VBN
about IN
the DT
financing NN
provision NN
. .

`` ``
We PRP
would MD
have VB
paid VBN
more JJR
if IN
we PRP
thought VBD
that DT
law NN
was VBD
n't RB
going VBG
to TO
pass VB
, ,
'' ''
he PRP
said VBD
. .

One CD
possible JJ
solution NN
for IN
Wall NNP
Street NNP
is VBZ
to TO
increase VB
the DT
equity NN
part NN
of IN
the DT
transaction NN
-- :
that DT
is VBZ
, ,
give VB
lenders NNS
a DT
bigger JJR
stake NN
in IN
the DT
surviving VBG
company NN
rather RB
than IN
just RB
interest NN
payments NNS
. .

That DT
would MD
force VB
the DT
buy-out NN
firm NN
and CC
the DT
target NN
company NN
's POS
management NN
to TO
reduce VB
their PRP$
level NN
of IN
ownership NN
. .

`` ``
The DT
pigs NNS
in IN
the DT
trough NN
may MD
have VB
to TO
give VB
a DT
little JJ
bit NN
of IN
the DT
slop NN
back RB
and CC
then RB
the DT
deal NN
can MD
go VB
through IN
, ,
'' ''
said VBD
Peter NNP
C. NNP
Canellos NNP
, ,
tax NN
partner NN
at IN
Wachtell NNP
, ,
Lipton NNP
, ,
Rosen NNP
& CC
Katz NNP
. .

Another DT
solution NN
, ,
said VBD
a DT
tax NN
lawyer NN
who WP
requested VBD
anonymity NN
, ,
is VBZ
for IN
firms NNS
to TO
use VB
convertible JJ
bonds NNS
that WDT
sell VBP
at IN
a DT
discount NN
. .

Since IN
they PRP
have VBP
a DT
lower JJR
interest NN
rate NN
, ,
they PRP
would MD
n't RB
fall VB
under IN
the DT
junk-bond NN
category NN
that WDT
would MD
lose VB
its PRP$
deductibility NN
. .

The DT
House NNP
version NN
of IN
the DT
bill NN
would MD
make VB
debt NN
non-deductible JJ
if IN
it PRP
pays VBZ
five CD
percentage NN
points NNS
above IN
Treasury NNP
notes NNS
, ,
has VBZ
at IN
least JJS
a DT
five-year JJ
maturity NN
and CC
does VBZ
n't RB
pay VB
interest NN
for IN
at IN
least JJS
one CD
year NN
out IN
of IN
the DT
first JJ
five CD
. .

The DT
bill NN
would MD
then RB
declare VB
that IN
the DT
debt NN
is VBZ
equity NN
and CC
therefore RB
is VBZ
n't RB
deductible JJ
. .

The DT
Senate NNP
bill NN
would MD
only RB
deny VB
the DT
deduction NN
until IN
interest NN
is VBZ
actually RB
paid VBN
. .

Currently RB
, ,
even RB
though IN
the DT
issuer NN
does VBZ
n't RB
pay VB
tax NN
, ,
the DT
debt NN
holder NN
is VBZ
taxed VBN
on IN
the DT
accrued VBN
interest NN
. .

But CC
those DT
holders NNS
are VBP
often RB
foreign JJ
investors NNS
and CC
tax-exempt JJ
pension NN
funds NNS
that WDT
do VBP
n't RB
pay VB
taxes NNS
on IN
their PRP$
holdings NNS
. .

The DT
Senate NNP
estimates NNS
that IN
its PRP$
version NN
of IN
the DT
provision NN
would MD
yield VB
$ $
17 CD
million CD
the DT
first JJ
year NN
and CC
a DT
total NN
of IN
$ $
409 CD
million CD
over IN
five CD
years NNS
. .

The DT
House NNP
version NN
would MD
raise VB
slightly RB
more JJR
. .

Even RB
if IN
Wall NNP
Street NNP
finds VBZ
ways NNS
around IN
the DT
new JJ
rules NNS
, ,
a DT
Senate NNP
aide NN
contends VBZ
LBOs NNS
will MD
become VB
somewhat RB
more RBR
difficult JJ
. .

`` ``
There EX
's VBZ
no DT
question NN
it PRP
will MD
make VB
LBOs NNS
more RBR
expensive JJ
, ,
'' ''
he PRP
said VBD
. .

`` ``
The DT
interest NN
deduction NN
was VBD
the DT
engine NN
that WDT
made VBD
these DT
things NNS
more RBR
productive JJ
. .

The DT
average JJ
publicly RB
offered VBN
commodity NN
fund NN
fell VBD
4.2 CD
% NN
in IN
September NNP
, ,
largely RB
because IN
of IN
the DT
volatile JJ
markets NNS
in IN
foreign JJ
currencies NNS
, ,
according VBG
to TO
Norwood NNP
Securities NNPS
. .

The DT
firm NN
said VBD
that IN
losers NNS
outnumbered VBD
gainers NNS
by IN
more JJR
than IN
three CD
to TO
one CD
among IN
the DT
122 CD
funds NNS
it PRP
tracks VBZ
. .

For IN
the DT
first JJ
nine CD
months NNS
of IN
the DT
year NN
, ,
Norwood NNP
said VBD
the DT
average JJ
fund NN
has VBZ
lost VBN
3.3 CD
% NN
. .

The DT
government NN
moved VBD
aggressively RB
to TO
open VB
the DT
spigots NNS
of IN
federal JJ
aid NN
for IN
victims NNS
of IN
the DT
California NNP
earthquake NN
, ,
but CC
its PRP$
reservoir NN
of IN
emergency NN
funds NNS
must MD
be VB
replenished VBN
soon RB
if IN
the DT
aid NN
is VBZ
to TO
continue VB
. .

President NNP
Bush NNP
signed VBD
a DT
disaster NN
declaration NN
covering VBG
seven CD
Northern NNP
California NNP
counties NNS
. .

The DT
declaration NN
immediately RB
made VBD
the DT
counties NNS
eligible JJ
for IN
temporary JJ
housing NN
, ,
grants NNS
and CC
low-cost JJ
loans NNS
to TO
cover VB
uninsured JJ
property NN
losses NNS
. .

In IN
addition NN
, ,
an DT
unusually RB
wide JJ
array NN
of IN
federal JJ
agencies NNS
moved VBD
to TO
provide VB
specialized JJ
assistance NN
. .
The DT
Department NNP
of IN
Housing NNP
and CC
Urban NNP
Development NNP
prepared VBD
to TO
make VB
as RB
many JJ
as IN
100 CD
vacant JJ
houses NNS
available JJ
for IN
those DT
left VBN
homeless JJ
, ,
the DT
Agriculture NNP
Department NNP
was VBD
set VBN
to TO
divert VB
food NN
from IN
the DT
school-lunch NN
program NN
to TO
earthquake NN
victims NNS
, ,
and CC
the DT
Pentagon NNP
was VBD
providing VBG
everything NN
from IN
radio NN
communications NNS
to TO
blood NN
transfusions NNS
to TO
military JJ
police NN
for IN
directing VBG
traffic NN
. .
But CC
the DT
pool NN
of IN
federal JJ
emergency-relief NN
funds NNS
already RB
is VBZ
running VBG
low JJ
because IN
of IN
the DT
heavy JJ
costs NNS
of IN
cleaning NN
up IN
Hurricane NNP
Hugo NNP
, ,
and CC
Congress NNP
will MD
be VB
under IN
pressure NN
to TO
allocate VB
more JJR
money NN
quickly RB
. .

In IN
Hugo NNP
's POS
wake NN
, ,
Congress NNP
allocated VBD
$ $
1.1 CD
billion CD
in IN
relief NN
funds NNS
, ,
and CC
White NNP
House NNP
spokesman NN
Marlin NNP
Fitzwater NNP
said VBD
$ $
273 CD
million CD
of IN
that DT
money NN
remains VBZ
and CC
could MD
be VB
diverted VBN
for IN
quick JJ
expenditures NNS
related VBN
to TO
the DT
earthquake NN
. .

Now RB
, ,
though RB
, ,
enormous JJ
costs NNS
for IN
earthquake NN
relief NN
will MD
pile VB
on IN
top NN
of IN
outstanding JJ
costs NNS
for IN
hurricane NN
relief NN
. .

`` ``
That DT
obviously RB
means VBZ
that IN
we PRP
wo MD
n't RB
have VB
enough RB
for IN
all DT
of IN
the DT
emergencies NNS
that WDT
are VBP
now RB
facing VBG
us PRP
, ,
and CC
we PRP
will MD
have VB
to TO
consider VB
appropriate JJ
requests NNS
for IN
follow-on JJ
funding NN
, ,
'' ''
Mr. NNP
Fitzwater NNP
said VBD
. .

The DT
federal JJ
government NN
is VBZ
n't RB
even RB
attempting VBG
yet RB
to TO
estimate VB
how WRB
much JJ
the DT
earthquake NN
will MD
cost VB
it PRP
. .

But CC
Mr. NNP
Fitzwater NNP
said VBD
, ,
`` ``
There EX
will MD
be VB
, ,
I PRP
think VBP
quite RB
obviously RB
, ,
a DT
very RB
large JJ
amount NN
of IN
money NN
required VBN
from IN
all DT
levels NNS
of IN
government NN
. .
'' ''

In IN
Congress NNP
, ,
lawmakers NNS
already RB
are VBP
looking VBG
for IN
ways NNS
to TO
add VB
relief NN
funds NNS
. .

Money NNP
could MD
be VB
added VBN
to TO
a DT
pending VBG
spending NN
bill NN
covering VBG
the DT
Federal NNP
Emergency NNP
Management NNP
Agency NNP
, ,
which WDT
coordinates VBZ
federal JJ
disaster NN
relief NN
. .

More RBR
likely JJ
, ,
relief NN
funds NNS
could MD
be VB
added VBN
to TO
an DT
omnibus JJ
spending NN
bill NN
that IN
Congress NNP
is VBZ
to TO
begin VB
considering VBG
next JJ
week NN
. .

But CC
it PRP
is VBZ
n't RB
just RB
Washington NNP
's POS
relief NN
dollars NNS
that WDT
are VBP
spread NN
thin JJ
; :
its PRP$
relief NN
manpower NN
also RB
is VBZ
stretched VBN
. .

FEMA NNP
still RB
has VBZ
special JJ
disaster NN
centers NNS
open JJ
to TO
handle VB
the DT
aftermath NN
of IN
Hugo NNP
, ,
and CC
spokesman NN
Russell NNP
Clanahan NNP
acknowledged VBD
that IN
`` ``
we PRP
're VBP
pretty RB
thin JJ
. .
'' ''
Mr. NNP
Clanahan NNP
says VBZ
FEMA NNP
now RB
possibly RB
may MD
have VB
the DT
heaviest JJS
caseload NN
in IN
its PRP$
history NN
. .

To TO
further VB
complicate VB
relief NN
efforts NNS
, ,
the DT
privately RB
funded VBN
American NNP
Red NNP
Cross NNP
also RB
finds VBZ
itself PRP
strapped VBD
for IN
funds NNS
after IN
its PRP$
big JJ
Hugo NNP
operation NN
. .

`` ``
It PRP
's VBZ
been VBN
a DT
bad JJ
month NN
money-wise JJ
and CC
every DT
other JJ
way NN
, ,
'' ''
said VBD
Sally NNP
Stewart NNP
, ,
a DT
spokeswoman NN
for IN
the DT
Red NNP
Cross NNP
. .

`` ``
It PRP
just RB
makes VBZ
it PRP
a DT
little JJ
rough JJ
when WRB
you PRP
have VBP
to TO
worry VB
about IN
the DT
budget NN
. .
'' ''

The DT
Red NNP
Cross NNP
has VBZ
opened VBN
30 CD
shelters NNS
in IN
the DT
Bay NNP
area NN
, ,
serving VBG
5,000 CD
people NNS
. .

Twenty-five CD
trucks NNS
capable JJ
of IN
cooking NN
food NN
were VBD
dispatched VBN
from IN
other JJ
states NNS
. .

All DT
the DT
precise JJ
types NNS
of IN
federal JJ
aid NN
that WDT
will MD
be VB
sent VBN
to TO
California NNP
wo MD
n't RB
be VB
determined VBN
until IN
state NN
officials NNS
make VBP
specific JJ
requests NNS
to TO
FEMA NNP
, ,
agency NN
officials NNS
said VBD
. .

And CC
in IN
the DT
confusion NN
after IN
the DT
earthquake NN
, ,
`` ``
the DT
information NN
flow NN
is VBZ
a DT
little JJ
slow JJ
coming NN
in IN
from IN
the DT
affected VBN
area NN
, ,
'' ''
said VBD
Carl NNP
Suchocki NNP
, ,
a DT
FEMA NNP
spokesman NN
. .

Still RB
, ,
some DT
aid NN
is VBZ
moving VBG
westward RB
from IN
Washington NNP
almost RB
immediately RB
. .

HUD NNP
officials NNS
said VBD
they PRP
will MD
make VB
available JJ
as RB
many JJ
as IN
100 CD
Bay NNP
area NN
houses NNS
that WDT
are VBP
under IN
HUD NNP
loans NNS
but CC
now RB
are VBP
vacant JJ
after IN
the DT
houses NNS
have VBP
been VBN
inspected VBN
to TO
ensure VB
they PRP
are VBP
sound NN
. .

Additional JJ
housing NN
vouchers NNS
and CC
certificates NNS
will MD
be VB
made VBN
available JJ
, ,
officials NNS
said VBD
, ,
and CC
some DT
housing NN
and CC
community-development NN
funds NNS
may MD
be VB
shifted VBN
from IN
other JJ
programs NNS
or CC
made VBN
available JJ
for IN
emergency NN
use NN
. .

Another DT
federal JJ
agency NN
not RB
normally RB
associated VBN
with IN
disaster NN
relief NN
-- :
the DT
Internal NNP
Revenue NNP
Service NNP
-- :
moved VBD
quickly RB
as IN
well RB
. .

The DT
IRS NNP
said VBD
it PRP
will MD
waive VB
certain JJ
tax NN
penalties NNS
for IN
earthquake NN
victims NNS
unable JJ
to TO
meet VB
return NN
deadlines NNS
or CC
make VB
payments NNS
because IN
of IN
the DT
quake NN
's POS
devastation NN
. .

The DT
agency NN
plans NNS
to TO
announce VB
specific JJ
relief NN
procedures NNS
in IN
the DT
coming VBG
days NNS
. .

And CC
the DT
Treasury NNP
said VBD
residents NNS
of IN
the DT
San NNP
Francisco NNP
area NN
will MD
be VB
able JJ
to TO
cash VB
in IN
savings NNS
bonds NNS
even RB
if IN
they PRP
have VBP
n't RB
held VBN
them PRP
for IN
the DT
minimum JJ
six-month JJ
period NN
. .

One CD
advantage NN
that IN
federal JJ
officials NNS
have VBP
in IN
handling NN
earthquake NN
relief NN
is VBZ
the DT
large JJ
number NN
of IN
military JJ
facilities NNS
in IN
the DT
San NNP
Francisco NNP
Bay NNP
area NN
, ,
facilities NNS
that WDT
provide VBP
a DT
ready JJ
base NN
of IN
supplies NNS
and CC
workers NNS
. .

Even RB
before IN
the DT
full JJ
extent NN
of IN
the DT
devastation NN
was VBD
known VBN
, ,
Defense NNP
Secretary NNP
Dick NNP
Cheney NNP
ordered VBD
the DT
military JJ
services NNS
to TO
set VB
up IN
an DT
emergency NN
command NN
center NN
in IN
the DT
Pentagon NNP
and CC
prepare VB
to TO
respond VB
to TO
various JJ
FEMA NNP
requests NNS
for IN
assistance NN
. .

By IN
yesterday NN
afternoon NN
, ,
Air NNP
Force NNP
transport NN
planes NNS
began VBD
moving VBG
additional JJ
rescue NN
and CC
medical JJ
supplies NNS
, ,
physicians NNS
, ,
communications NNS
equipment NN
and CC
FEMA NNP
personnel NNS
to TO
California NNP
. .

A DT
military JJ
jet NN
flew VBD
a DT
congressional JJ
delegation NN
and CC
senior JJ
Bush NNP
administration NN
officials NNS
to TO
survey VB
the DT
damage NN
. .

And CC
the DT
Pentagon NNP
said VBD
dozens NNS
of IN
additional JJ
crews NNS
and CC
transport NN
aircraft NN
were VBD
on IN
alert JJ
`` ``
awaiting VBG
orders NNS
to TO
move VB
emergency NN
supplies NNS
. .
'' ''

Two CD
Air NNP
Force NNP
facilities NNS
near IN
Sacramento NNP
, ,
and CC
Travis NNP
Air NNP
Force NNP
Base NNP
, ,
50 CD
miles NNS
northeast NN
of IN
San NNP
Francisco NNP
, ,
were VBD
designated VBN
to TO
serve VB
as IN
medical-airlift NN
centers NNS
. .

Some DT
victims NNS
also RB
were VBD
treated VBN
at IN
the DT
Letterman NNP
Army NNP
Medical NNP
Center NNP
in IN
San NNP
Francisco NNP
and CC
at IN
the DT
Naval NNP
Hospital NNP
in IN
Oakland NNP
. .

In IN
addition NN
, ,
20 CD
military JJ
police NN
from IN
the DT
Presidio NNP
, ,
a DT
military JJ
base NN
in IN
San NNP
Francisco NNP
, ,
are VBP
assisting VBG
with IN
traffic NN
control NN
, ,
and CC
a DT
Navy NNP
ship NN
was VBD
moved VBN
from IN
a DT
naval JJ
station NN
at IN
Treasure NNP
Island NNP
near IN
the DT
Bay NNP
Bridge NNP
to TO
San NNP
Francisco NNP
to TO
help VB
fight VB
fires NNS
. .

To TO
help VB
residents NNS
in IN
Northern NNP
California NNP
rebuild VB
, ,
FEMA NNP
intends VBZ
to TO
set VB
up IN
17 CD
disaster NN
assistance NN
offices NNS
in IN
the DT
earthquake NN
area NN
in IN
the DT
next JJ
several JJ
days NNS
and CC
to TO
staff VB
them PRP
with IN
400 CD
to TO
500 CD
workers NNS
from IN
various JJ
agencies NNS
, ,
said VBD
Robert NNP
Volland NNP
, ,
chief NN
of IN
the DT
agency NN
's POS
individual JJ
assistance NN
division NN
. .

At IN
these DT
offices NNS
, ,
earthquake NN
victims NNS
will MD
be VB
helped VBN
in IN
filling VBG
out RP
a DT
one-page JJ
form NN
that IN
they PRP
will MD
need VB
to TO
qualify VB
for IN
such JJ
federal JJ
assistance NN
as IN
home-improvement NN
loans NNS
and CC
to TO
repair VB
houses NNS
. .

And CC
federal JJ
officials NNS
are VBP
promising JJ
to TO
move VB
rapidly RB
with IN
federal JJ
highway NN
aid NN
to TO
rebuild VB
the DT
area NN
's POS
severely RB
damaged VBN
road NN
system NN
. .

The DT
Federal NNP
Highway NNP
Administration NNP
has VBZ
an DT
emergency NN
relief NN
program NN
to TO
help VB
states NNS
and CC
local JJ
governments NNS
repair VBP
federally RB
funded VBN
highways NNS
and CC
bridges NNS
seriously RB
damaged VBN
by IN
natural JJ
disasters NNS
. .

The DT
account NN
currently RB
has VBZ
$ $
220 CD
million CD
. .

And CC
though IN
federal JJ
law NN
dictates NNS
that IN
only RB
$ $
100 CD
million CD
can MD
be VB
disbursed VBN
from IN
that DT
fund NN
in IN
any DT
one CD
state NN
per IN
disaster NN
, ,
administration NN
officials NNS
expect VBP
Congress NNP
to TO
move VB
in IN
to TO
authorize VB
spending NN
more RBR
now RB
in IN
California NNP
. .

To TO
get VB
that DT
money NN
, ,
states NNS
must MD
go VB
through IN
an DT
elaborate JJ
approval NN
process NN
, ,
but CC
officials NNS
expect VBP
red JJ
tape NN
to TO
be VB
cut VBN
this DT
time NN
. .

Keith NNP
Mulrooney NNP
, ,
special JJ
assistant NN
to TO
Federal NNP
Highway NNP
Administrator NNP
Thomas NNP
Larson NNP
, ,
also RB
said VBD
that IN
after IN
the DT
1971 CD
San NNP
Fernando NNP
earthquake NN
in IN
Southern NNP
California NNP
, ,
the DT
state NN
set VBN
tougher JJR
standards NNS
for IN
bridges NNS
, ,
and CC
with IN
federal JJ
aid NN
, ,
began VBD
a DT
program NN
to TO
retrofit VB
highways NNS
and CC
bridges NNS
for IN
earthquake NN
hazards NNS
. .

The DT
first JJ
phase NN
of IN
the DT
program NN
has VBZ
been VBN
completed VBN
, ,
but CC
two CD
other JJ
phases NNS
are VBP
continuing VBG
. .
The DT
two CD
major JJ
structures NNS
that WDT
failed VBD
Tuesday NNP
night NN
, ,
he PRP
said VBD
, ,
were VBD
both DT
built VBN
well RB
before IN
the DT
1971 CD
earthquake NN
-- :
the DT
San NNP
Francisco NNP
Bay NNP
Bridge NNP
, ,
completed VBN
in IN
the DT
1930s CD
, ,
and CC
the DT
section NN
of IN
I-880 NN
, ,
built VBN
in IN
the DT
1950s CD
. .

The DT
I-880 NN
section NN
had VBD
completed VBN
the DT
first JJ
phase NN
of IN
the DT
retrofitting NN
. .

Laurie NNP
McGinley NNP
contributed VBD
to TO
this DT
article NN
. .

FARMERS NNS
REAP VBP
abundant JJ
crops NNS
. .

But CC
how WRB
much JJ
will MD
shoppers NNS
benefit VB
? .

The DT
harvest NN
arrives VBZ
in IN
plenty NN
after IN
last JJ
year NN
's POS
drought-ravaged JJ
effort NN
: :
The DT
government NN
estimates NNS
corn NN
output NN
at IN
7.45 CD
billion CD
bushels NNS
, ,
up IN
51 CD
% NN
from IN
last JJ
fall NN
. .

Soybean NN
production NN
swells NNS
24 CD
% NN
. .

As IN
a DT
result NN
, ,
prices NNS
paid VBN
to TO
farmers NNS
for IN
the DT
commodities NNS
, ,
which WDT
are VBP
used VBN
in IN
products NNS
as RB
diverse JJ
as IN
bubble NN
gum NN
and CC
chicken NN
feed NN
, ,
plummet VB
20 CD
% NN
to TO
33 CD
% NN
. .

But CC
do VBP
n't RB
expect VB
too RB
much JJ
in IN
the DT
way NN
of IN
price NN
breaks NNS
soon RB
at IN
the DT
supermarket NN
. .

Economists NNS
expect VBP
consumer NN
food NN
prices NNS
to TO
jump VB
5.5 CD
% NN
this DT
year NN
to TO
the DT
highest JJS
level NN
since IN
1980 CD
and CC
up IN
from IN
last JJ
year NN
's POS
4.1 CD
% NN
rise NN
. .

Next JJ
year NN
may MD
see VB
a DT
drop NN
of IN
one CD
percentage NN
point NN
. .

Beef NN
prices NNS
, ,
hovering VBG
near IN
records NNS
since IN
the DT
drought NN
, ,
could MD
drop VB
in IN
earnest NN
this DT
winter NN
if IN
ranchers NNS
expand VBP
herds NNS
. .

Lower JJR
feed NN
prices NNS
may MD
help VB
animals NNS
eat VB
more RBR
cheaply RB
, ,
but CC
humans NNS
have VBP
to TO
factor VB
in IN
an DT
expensive JJ
middleman NN
: :
the DT
processor NN
. .

Food NN
companies NNS
probably RB
wo MD
n't RB
cut VB
their PRP$
prices NNS
much JJ
, ,
blaming VBG
other JJ
costs NNS
. .

`` ``
Labor NNP
takes VBZ
the DT
biggest JJS
single JJ
chunk NN
out IN
of IN
the DT
` ``
food NN
dollar NN
, ,
' ''
'' ''
says VBZ
Frank NNP
Pankyo NNP
of IN
the DT
Food NNP
Institute NNP
. .
Stokely NNP
says VBZ
stores NNS
revive VBP
specials NNS
like IN
three CD
cans NNS
of IN
peas NNS
for IN
99 CD
cents NNS
. .

Two CD
cans NNS
cost VBP
89 CD
cents NNS
during IN
the DT
drought NN
. .

IF IN
IN IN
VITRO NNP
fertilization NN
works NNS
, ,
it PRP
usually RB
does VBZ
so RB
after IN
only RB
a DT
few JJ
tries NNS
. .

Costly JJ
infertility NN
problems NNS
and CC
procedures NNS
proliferate VBP
as IN
aging VBG
baby NN
boomers NNS
and CC
others NNS
decide VBP
to TO
have VB
children NNS
-- :
now RB
. .

It PRP
's VBZ
estimated VBN
that IN
one CD
in IN
six CD
couples NNS
experiences NNS
infertility NN
, ,
and CC
in IN
1987 CD
, ,
Americans NNPS
spent VBD
about RB
$ $
1 CD
billion CD
to TO
fight VB
the DT
problem NN
. .

Only RB
about IN
five CD
states NNS
now JJ
offer NN
some DT
form NN
of IN
insurance NN
coverage NN
, ,
but CC
more RBR
are VBP
expected VBN
. .

A DT
letter NN
in IN
the DT
New NNP
England NNP
Journal NNP
of IN
Medicine NNP
notes NNS
that IN
while IN
technology NN
offers VBZ
`` ``
almost RB
endless JJ
hope NN
... :
when WRB
to TO
stop VB
has VBZ
become VBN
a DT
difficult JJ
question NN
... :
. .
'' ''

The DT
authors NNS
, ,
from IN
Boston NNP
's POS
Beth NNP
Israel NNP
Hospital NNP
, ,
say VBP
that IN
84 CD
% NN
of IN
the DT
50 CD
births NNS
they PRP
followed VBD
occurred VBN
after IN
only RB
two CD
in IN
vitro FW
cycles NNS
. .

It PRP
adds VBZ
that IN
births NNS
were VBD
`` ``
extremely RB
unlikely JJ
'' ''
after IN
the DT
fourth JJ
cycle NN
and CC
concludes VBZ
couples NNS
who WP
do VBP
n't RB
achieve VB
a DT
pregnancy NN
after IN
four CD
to TO
six CD
procedures NNS
should MD
be VB
advised VBN
that DT
success NN
is VBZ
unlikely JJ
. .

Some DT
couples NNS
continue VBP
to TO
try VB
. .

`` ``
Such JJ
determination NN
may MD
translate VB
into IN
extreme JJ
physical NN
, ,
emotional JJ
and CC
financial JJ
costs NNS
, ,
'' ''
the DT
letter NN
warns VBZ
. .

MARKET NNP
MOVES VBZ
, ,
these DT
managers NNS
do VBP
n't RB
. .

Only RB
three CD
of IN
the DT
25 CD
corporate JJ
pension NN
fund NN
managers NNS
attending VBG
a DT
Lowry NNP
Consulting NNP
Group NNP
client NN
conference NN
say VBP
they PRP
plan VBP
to TO
change VB
the DT
asset NN
allocation NN
mix NN
in IN
their PRP$
portfolios NNS
because IN
of IN
the DT
market NN
drop NN
. .

WORLD NN
ODDITIES NNS
come VBP
alive JJ
in IN
a DT
multimedia NNS
version NN
of IN
the DT
Guinness NNP
Book NNP
of IN
Records NNPS
. .

The DT
$ $
99 CD
CD-ROM NNP
disk NN
-LRB- (
it PRP
can MD
only RB
be VB
played VBN
on IN
an DT
Apple NNP
Macintosh NNP
computer NN
at IN
the DT
moment NN
-RRB- )
combines VBZ
animation NN
, ,
music NN
and CC
sound NN
. .

Among IN
the DT
Guinness NNP
disk NN
's POS
wonders NNS
: :
the DT
world NN
's POS
loudest RBS
recorded VBN
belch NN
. .

ARTY NNP
FAX NNP
from IN
David NNP
Hockney NNP
begins VBZ
a DT
tongue-in-cheek JJ
exhibit NN
today NN
at IN
New NNP
York NNP
's POS
Andre NNP
Emmerich NNP
Gallery NNP
. .

One CD
of IN
the DT
artist NN
's POS
earliest JJS
Fax NNP
works NNS
was VBD
`` ``
Little NNP
Stanley NNP
Sleeping NNP
, ,
'' ''
a DT
portrait NN
of IN
his PRP$
dog NN
. .

PACS NNS
GIVE VBP
and CC
receive VB
in IN
a DT
debatable JJ
duet NN
with IN
employees NNS
' POS
favored VBN
charities NNS
. .

The DT
Federal NNP
Election NNP
Commission NNP
clears VBZ
corporate JJ
plans NNS
to TO
donate VB
to TO
an DT
employee NN
's POS
chosen VBN
charity NN
in IN
exchange NN
for IN
the DT
worker NN
's POS
gift NN
to TO
the DT
company NN
political JJ
action NN
committee NN
. .

Latest JJS
approvals NNS
: :
Bell NNP
Atlantic NNP
's POS
New NNP
Jersey NNP
Bell NNP
and CC
General NNP
Dynamics NNP
. .

Companies NNS
get VBP
more RBR
political JJ
clout NN
plus CC
a DT
possible JJ
tax-deductible JJ
charitable JJ
donation NN
-- :
so RB
far RB
no DT
word NN
from IN
the DT
IRS NNP
on IN
deductibility NN
. .

Detroit NNP
Edison NNP
, ,
the DT
plan NN
pioneer NN
, ,
generated VBD
$ $
54,000 CD
in IN
matching VBG
funds VBZ
this DT
year NN
, ,
up IN
from IN
$ $
39,000 CD
in IN
1988 CD
. .

But CC
the DT
utility NN
may MD
not RB
continue VB
next JJ
year NN
. .

`` ``
We PRP
're VBP
on IN
a DT
tight JJ
budget NN
, ,
'' ''
says VBZ
Detroit NNP
Edison NNP
's POS
Carol NNP
Roskind NNP
. .

Two CD
election NN
commission NN
members NNS
opposed VBD
the DT
matching VBG
plans NNS
. .

Scott NNP
E. NNP
Thomas NNP
says VBZ
the DT
plans NNS
give VBP
employees NNS
`` ``
a DT
bonus NN
in IN
the DT
form NN
of IN
charitable JJ
donations NNS
made VBN
from IN
an DT
employer NN
's POS
treasury NN
'' ''
in IN
exchange NN
for IN
the DT
political JJ
donation NN
. .

`` ``
The DT
U.S. NNP
government NN
could MD
be VB
, ,
in IN
effect NN
, ,
subsidizing VBG
political JJ
contributions NNS
to TO
corporate JJ
PACs NNPS
, ,
'' ''
he PRP
says VBZ
. .

New NNP
Jersey NNP
Bell NNP
awaits VBZ
state NN
clearance NN
. .

Despite IN
federal JJ
approval NN
, ,
General NNP
Dynamics NNP
says VBZ
it PRP
decided VBD
it PRP
wo MD
n't RB
go VB
ahead RB
with IN
the DT
matching VBG
program NN
. .

CHRISTMAS NNP
SHOPPERS NNS
find VBP
a DT
helping VBG
hand NN
from IN
some DT
catalog NN
companies NNS
. .

Blunt NNP
Ellis NNP
& CC
Loewi NNP
estimates NNS
direct JJ
mail NN
catalog NN
sales NNS
rose VBD
to TO
$ $
12 CD
billion CD
last JJ
year NN
. .

And CC
while IN
it PRP
's VBZ
too RB
soon RB
to TO
tell VB
how WRB
sales NNS
will MD
fare VB
in IN
the DT
important JJ
1989 CD
Christmas NNP
season NN
, ,
some DT
companies NNS
take VBP
steps NNS
to TO
ease VB
the DT
usual JJ
11th-hour JJ
crush NN
. .

Spiegel NNP
promises VBZ
a DT
`` ``
Guaranteed VBN
Christmas NNP
, ,
'' ''
with IN
a DT
pledge NN
to TO
deliver VB
goods NNS
before IN
Christmas NNP
if IN
ordered VBN
by IN
Dec. NNP
20 CD
. .

And CC
, ,
for IN
an DT
extra JJ
$ $
6 CD
, ,
Land NNP
's POS
End NN
will MD
deliver VB
orders NNS
within IN
two CD
days NNS
; :
customers NNS
can MD
designate VB
the DT
day NN
. .
Spiegel NNP
, ,
which WDT
also RB
owns VBZ
Eddie NNP
Bauer NNP
and CC
Honeybee NNP
, ,
says VBZ
that IN
since IN
1987 CD
, ,
sales NNS
have NN
doubled VBN
during IN
the DT
week NN
before IN
Christmas NNP
. .

An DT
L.L. NNP
Bean NNP
spokeswoman NN
notes NNS
: :
`` ``
People NNS
are VBP
just RB
used VBN
to TO
living VBG
in IN
a DT
last-minute JJ
society NN
. .
'' ''

Blunt NNP
Ellis NNP
, ,
a DT
Milwaukee NNP
brokerage NN
firm NN
, ,
says VBZ
part NN
of IN
the DT
reason NN
catalog NN
sales NNS
grow VBP
in IN
popularity NN
is VBZ
because IN
consumers NNS
have VBP
more JJR
money NN
but CC
less JJR
time NN
to TO
spend VB
it PRP
. .

L.L. NNP
Bean NNP
hires VBZ
about IN
2,700 CD
workers NNS
for IN
the DT
season NN
rush NN
, ,
about IN
300 CD
more JJR
than IN
last JJ
year NN
; :
Land NNP
's POS
End NN
hires VBZ
2,000 CD
. .

BRIEFS NNS
: :

Guarana NNP
Antarctica NNP
, ,
a DT
Brazilian JJ
soft JJ
drink NN
, ,
is VBZ
brought VBN
to TO
the DT
U.S. NNP
by IN
Amcap NNP
, ,
Chevy NNP
Chase NNP
, ,
Md NNP
. .

New NNP
Product NNP
News NNP
says VBZ
the DT
beverage NN
`` ``
looks VBZ
like IN
ginger NN
ale NN
, ,
tastes VBZ
a DT
little JJ
like IN
cherries NNS
and CC
smells VBZ
like IN
bubble NN
gum NN
. .
'' ''
... :

`` ``
Amenities NNS
'' ''
planned VBN
for IN
Chicago NNP
's POS
new JJ
Parkshore NNP
Tower NNP
apartments NNS
include VBP
an DT
on-site JJ
investment NN
counselor NN
. .

Four CD
years NNS
ago RB
, ,
Pittsburgh NNP
was VBD
designated VBN
the DT
most-livable JJS
U.S. NNP
city NN
by IN
Rand NNP
McNally NNP
's POS
Places NNS
Rated VBN
Almanac NNP
, ,
and CC
the DT
honor NN
did VBD
wonders NNS
to TO
improve VB
Pittsburgh NNP
's POS
soot-stained JJ
image NN
. .

`` ``
People NNS
asked VBD
, ,
is VBZ
it PRP
really RB
true JJ
? .
'' ''
says VBZ
Maury NNP
Kelley NNP
, ,
vice NN
president NN
, ,
marketing NN
services NNS
, ,
for IN
Beecham NNP
Products NNP
USA NNP
, ,
a DT
maker NN
of IN
health NN
and CC
personal-care JJ
products NNS
that WDT
used VBD
the DT
ranking NN
in IN
its PRP$
recruiting NN
brochure NN
. .

Yuba NNP
City NNP
, ,
Calif. NNP
, ,
meanwhile RB
, ,
ranked VBD
dead JJ
last NN
among IN
329 CD
metro NN
areas NNS
. .

Unamused JJ
, ,
residents NNS
burned VBD
Rand NNP
McNally NNP
books NNS
and CC
wore VBD
T-shirts NNS
that WDT
said VBD
: :
`` ``
Kiss VB
my PRP$
Atlas NNP
. .
'' ''

The DT
almanac NN
will MD
be VB
making VBG
new JJ
friends NNS
and CC
enemies NNS
on IN
Oct. NNP
27 CD
, ,
when WRB
an DT
updated VBN
version NN
will MD
be VB
released VBN
. .

Pittsburgh NNP
figures NNS
it PRP
will MD
be VB
dethroned VBN
but CC
plans NNS
to TO
accept VB
its PRP$
ouster NN
graciously RB
. .

The DT
city NN
's POS
Office NNP
of IN
Promotion NNP
plans VBZ
media NNS
events NNS
to TO
welcome VB
its PRP$
successor NN
. .

`` ``
We PRP
're VBP
encouraging VBG
a DT
graceful JJ
transition NN
, ,
'' ''
says VBZ
Mary NNP
Kay NNP
Poppenberg NNP
, ,
the DT
organization NN
's POS
president NN
. .

`` ``
Our PRP$
attitude NN
is VBZ
that IN
-LRB- (
the DT
ranking JJ
-RRB- )
is VBZ
like IN
Miss NNP
America NNP
. .

Once RB
you PRP
're VBP
Miss NNP
America NNP
, ,
you PRP
're VBP
always RB
Miss NNP
America NNP
. .
'' ''

Tell VB
that IN
to TO
Atlanta NNP
, ,
which WDT
Pittsburgh NNP
replaced VBD
as IN
the DT
most-livable JJS
city NN
in IN
1985 CD
. .

Many JJ
Atlantans NNPS
thought VBD
Pittsburgh NNP
was VBD
an DT
unworthy JJ
heir NN
. .

A DT
columnist NN
in IN
the DT
Atlanta NNP
Journal NNP
and CC
Constitution NNP
wrote VBD
: :
`` ``
Who WP
did VBD
the DT
research NN
for IN
this DT
report NN
? .

Two CD
guys NNS
from IN
Gary NNP
, ,
Ind. NNP
? .
'' ''

Not RB
so RB
. .

Co-authors NNS
David NNP
Savageau NNP
and CC
Richard NNP
Boyer NNP
, ,
live VB
in IN
Gloucester NNP
, ,
Mass. NNP
, ,
and CC
Asheville NNP
, ,
N.C. NNP
, ,
respectively RB
. .

`` ``
Atlanta NNP
, ,
'' ''
Mr. NNP
Savageau NNP
sniffs VBZ
, ,
`` ``
has VBZ
unrealistic JJ
pretensions NNS
to TO
world-class JJ
status NN
. .
'' ''

The DT
new JJ
edition NN
lists VBZ
the DT
top JJ
10 CD
metropolitan JJ
areas NNS
as IN
Anaheim-Santa NNP
Ana NNP
, ,
Calif. NNP
; :
Boston NNP
; :
Louisville NNP
, ,
Ky. NNP
; :
Nassau-Suffolk NNP
, ,
N.Y. NNP
; :
New NNP
York NNP
; :
Pittsburgh NNP
; :
San NNP
Diego NNP
; :
San NNP
Francisco NNP
; :
Seattle NNP
; :
and CC
Washington NNP
. .

Mr. NNP
Savageau NNP
says VBZ
earthquake NN
or CC
not RB
, ,
San NNP
Francisco NNP
makes VBZ
the DT
list NN
. .

But CC
attention NN
also RB
rivets VBZ
on IN
who WP
finishes VBZ
last JJ
, ,
and CC
Pine NNP
Bluff NNP
, ,
Ark. NNP
-- :
which WDT
finished VBD
third JJ
to TO
last VB
in IN
1981 CD
and CC
second JJ
to TO
last VB
in IN
1985 CD
-- :
is VBZ
certainly RB
in IN
the DT
running NN
. .

`` ``
I PRP
hate VBP
to TO
dignify VB
the DT
publication NN
by IN
commenting VBG
on IN
the DT
obscene JJ
rating NN
, ,
'' ''
Mayor NNP
Carolyn NNP
Robinson NNP
says VBZ
, ,
adding VBG
that IN
cities NNS
have VBP
no DT
way NN
to TO
rebut VB
the DT
book NN
. .

`` ``
It PRP
's VBZ
like IN
fighting VBG
your PRP$
way NN
out IN
of IN
a DT
fog NN
. .

You PRP
do VBP
n't RB
know VB
which WDT
way NN
to TO
punch VB
. .

Northrop NNP
Corp. NNP
's POS
third-quarter JJ
net JJ
income NN
fell VBD
25 CD
% NN
to TO
$ $
21.5 CD
million CD
, ,
or CC
46 CD
cents NNS
a DT
share NN
, ,
while IN
General NNP
Dynamics NNP
Corp. NNP
reported VBD
nearly RB
flat JJ
earnings NNS
of IN
$ $
76.5 CD
million CD
, ,
or CC
$ $
1.83 CD
a DT
share NN
. .

Los NNP
Angeles-based JJ
Northrop NNP
recorded VBD
an DT
8.2 CD
% NN
decline NN
in IN
sales NNS
as IN
B-2 NNP
Stealth NNP
bomber NN
research-and-development NN
revenue NN
continued VBD
to TO
ebb VB
and CC
high JJ
costs NNS
on IN
some DT
other JJ
programs NNS
cut VBP
into IN
profit NN
. .

The DT
aerospace NN
concern NN
earned VBD
$ $
28.8 CD
million CD
, ,
or CC
61 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
in IN
the DT
latest JJS
period NN
were VBD
$ $
1.25 CD
billion CD
, ,
down RB
from IN
$ $
1.36 CD
billion CD
in IN
the DT
1988 CD
quarter NN
. .

At IN
St. NNP
Louis-based JJ
General NNP
Dynamics NNP
, ,
sales NNS
rose VBD
10 CD
% NN
to TO
$ $
2.52 CD
billion CD
from IN
$ $
2.29 CD
billion CD
. .

It PRP
earned VBD
$ $
76.4 CD
million CD
, ,
or CC
$ $
1.82 CD
a DT
share NN
, ,
in IN
the DT
1988 CD
quarter NN
. .

General NNP
Dynamics NNP
credited VBD
significant JJ
earnings NNS
gains NNS
in IN
its PRP$
general JJ
aviation NN
and CC
material NN
service NN
segments NNS
, ,
an DT
earnings NNS
recovery NN
in IN
submarine NN
operations NNS
, ,
and CC
higher JJR
military JJ
aircraft NN
sales NNS
. .

Northrop NNP
said VBD
sales NNS
fell VBD
because IN
of IN
the DT
decline NN
in IN
B-2 NNP
development NN
dollars NNS
from IN
the DT
government NN
as IN
the DT
plane NN
continues VBZ
its PRP$
initial JJ
production NN
stage NN
and CC
because IN
fewer JJR
F\/A-18 NNP
fighter NN
sections NNS
are VBP
being VBG
produced VBN
in IN
its PRP$
subcontract NN
work NN
with IN
prime JJ
contractor NN
McDonnell NNP
Douglas NNP
Corp NNP
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
Northrop NNP
shares NNS
closed VBD
at IN
$ $
21.125 CD
, ,
off IN
25 CD
cents NNS
. .

General NNP
Dynamics NNP
closed VBD
at IN
$ $
54.875 CD
, ,
up IN
50 CD
cents NNS
. .

Northrop NNP
, ,
which WDT
since IN
early JJ
1988 CD
has VBZ
declined VBN
to TO
accept VB
fixed-price JJ
contracts NNS
for IN
research NN
and CC
development NN
, ,
said VBD
earnings NNS
were VBD
hurt VBN
by IN
excessive JJ
costs NNS
on IN
a DT
number NN
of IN
such JJ
contracts NNS
won VBD
years NNS
ago RB
. .

Among IN
them PRP
were VBD
the DT
ALQ-135 NN
electronic JJ
countermeasures NNS
system NN
for IN
the DT
F-15 NNP
fighter NN
. .

Northrop NNP
's POS
interest NN
expense NN
also RB
soared VBD
to TO
$ $
35 CD
million CD
from IN
$ $
17 CD
million CD
a DT
year NN
ago RB
. .

It PRP
said VBD
debt NN
remained VBD
at IN
the DT
$ $
1.22 CD
billion CD
that WDT
has VBZ
prevailed VBN
since IN
early JJ
1989 CD
, ,
although IN
that DT
compared VBD
with IN
$ $
911 CD
million CD
at IN
Sept. NNP
30 CD
, ,
1988 CD
. .

The DT
backlog NN
of IN
undelivered JJ
orders NNS
at IN
Northrop NNP
on IN
Sept. NNP
30 CD
was VBD
$ $
4.68 CD
billion CD
, ,
down RB
from IN
$ $
5.16 CD
billion CD
a DT
year NN
earlier RBR
. .

For IN
the DT
nine CD
months NNS
, ,
Northrop NNP
reported VBD
a DT
net JJ
loss NN
of IN
$ $
46.9 CD
million CD
, ,
or CC
$ $
1 CD
a DT
share NN
, ,
compared VBN
with IN
profit NN
of IN
$ $
190.3 CD
million CD
, ,
or CC
$ $
4.05 CD
a DT
share NN
, ,
in IN
1988 CD
. .

Sales NNS
dipped VBD
3.6 CD
% NN
to TO
$ $
3.92 CD
billion CD
from IN
$ $
4.07 CD
billion CD
. .

At IN
General NNP
Dynamics NNP
, ,
factors NNS
reducing VBG
earnings NNS
in IN
the DT
military JJ
aircraft NN
segment NN
included VBD
higher JJR
levels NNS
of IN
cost-sharing NN
in IN
development NN
of IN
the DT
Advanced NNP
Tactical NNP
Fighter NNP
, ,
and CC
the DT
high JJ
cost NN
of IN
an DT
advanced VBN
version NN
of IN
the DT
F-16 NNP
fighter NN
. .

F-16 NN
deliveries NNS
also RB
have VBP
fallen VBN
`` ``
slightly RB
behind IN
schedule NN
, ,
'' ''
although IN
a DT
return NN
to TO
the DT
previous JJ
schedule NN
is VBZ
expected VBN
in IN
1990 CD
, ,
the DT
company NN
said VBD
. .

Backlog NN
at IN
General NNP
Dynamics NNP
rose VBD
to TO
$ $
16.5 CD
billion CD
from IN
$ $
15.8 CD
billion CD
. .

Its PRP$
interest NN
expense NN
surged VBD
to TO
$ $
21.5 CD
million CD
from IN
$ $
12.4 CD
million CD
. .

For IN
the DT
nine CD
months NNS
, ,
General NNP
Dynamics NNP
earned VBD
$ $
210.3 CD
million CD
, ,
or CC
$ $
5.03 CD
a DT
share NN
, ,
up IN
marginally RB
from IN
$ $
208.8 CD
million CD
, ,
or CC
$ $
4.97 CD
a DT
share NN
, ,
on IN
a DT
4.9 CD
% NN
rise NN
in IN
sales NNS
to TO
$ $
7.41 CD
billion CD
from IN
$ $
7.06 CD
billion CD
. .

Lotus NNP
Development NNP
Corp. NNP
reported VBD
a DT
surprisingly RB
strong JJ
51 CD
% NN
increase NN
in IN
third-quarter JJ
net JJ
income NN
on IN
a DT
32 CD
% NN
sales NNS
gain NN
, ,
buoyed VBN
by IN
strong JJ
demand NN
for IN
a DT
new JJ
version NN
of IN
its PRP$
1-2-3 JJ
computer NN
spreadsheet NN
. .
The DT
results NNS
topped VBD
analysts NNS
' POS
expectations NNS
and CC
the DT
earnings NNS
growth NN
of IN
competitors NNS
, ,
prompting VBG
traders NNS
to TO
all DT
but CC
forget VB
the DT
product-launch NN
delays NNS
that WDT
bogged VBD
down RP
the DT
company NN
for IN
much NN
of IN
the DT
past JJ
two CD
years NNS
. .

Yesterday NN
, ,
in IN
heavy JJ
, ,
national JJ
over-the-counter JJ
trading NN
, ,
Lotus NNP
shares NNS
rose VBD
to TO
$ $
32.50 CD
, ,
up IN
$ $
1.25 CD
apiece RB
, ,
capping VBG
a DT
threemonth JJ
run-up NN
of IN
more JJR
than IN
40 CD
% NN
. .

Lotus NNP
said VBD
net NN
rose VBD
to TO
$ $
23 CD
million CD
, ,
or CC
54 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
153.9 CD
million CD
. .

A DT
year NN
ago RB
, ,
net NN
was VBD
$ $
14.3 CD
million CD
, ,
or CC
31 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
116.8 CD
million CD
. .

For IN
the DT
nine CD
months NNS
, ,
net NN
of IN
$ $
38.5 CD
million CD
, ,
or CC
92 CD
cents NNS
a DT
share NN
, ,
trailed VBD
the DT
year NN
earlier RBR
's POS
$ $
49.9 CD
million CD
, ,
or CC
$ $
1.08 CD
a DT
share NN
. .

Sales NNS
rose VBD
to TO
$ $
406 CD
million CD
from IN
$ $
356 CD
million CD
the DT
year NN
earlier RBR
. .

In IN
the DT
first JJ
half NN
, ,
Lotus NNP
struggled VBD
to TO
keep VB
market NN
share NN
with IN
costly JJ
promotions NNS
while IN
customers NNS
awaited VBD
the DT
launch NN
of IN
1-2-3 NNP
Release NNP
3 CD
, ,
the DT
upgraded VBN
spreadsheet NN
software NN
. .

Lotus NNP
's POS
results NNS
were VBD
about IN
10 CD
% NN
higher JJR
than IN
analysts NNS
' POS
average JJ
expectations NNS
and CC
compared VBN
favorably RB
with IN
the DT
36 CD
% NN
earnings NNS
rise NN
reported VBD
a DT
day NN
earlier RBR
by IN
rival JJ
Microsoft NNP
Corp. NNP
of IN
Redmond NNP
, ,
Wash NNP
. .

The DT
company NN
said VBD
results NNS
were VBD
bolstered VBN
by IN
upgrades NNS
to TO
Release NNP
3 CD
by IN
previous JJ
customers NNS
and CC
improved VBN
profit NN
margins NNS
, ,
the DT
result NN
of IN
manufacturing-cost NN
controls NNS
. .

Rick NNP
Sherlund NNP
, ,
a DT
Goldman NNP
Sachs NNP
analyst NN
, ,
said VBD
Lotus NNP
had VBD
upgrade VB
revenue NN
of IN
about RB
$ $
22 CD
million CD
in IN
the DT
quarter NN
, ,
twice RB
what WP
he PRP
had VBD
expected VBN
. .

Also RB
, ,
he PRP
estimated VBD
unit NN
shipments NNS
of IN
1-2-3 JJ
in IN
all DT
its PRP$
forms NNS
were VBD
about IN
315,000 CD
, ,
up IN
7 CD
% NN
from IN
1988 CD
's POS
quarterly JJ
average NN
. .

Demand NN
for IN
the DT
new JJ
version NN
was VBD
enabling VBG
Lotus NNP
to TO
raise VB
prices NNS
with IN
distributors NNS
and CC
to TO
hold VB
market NN
share NN
against IN
Microsoft NNP
and CC
other JJ
competitors NNS
that WDT
tried VBD
to TO
exploit VB
the DT
earlier JJR
delays NNS
in IN
Release NNP
3 CD
's POS
launch NN
, ,
Mr. NNP
Sherlund NNP
added VBD
. .

He PRP
estimated VBD
that IN
1-2-3 NN
outsold VBD
Microsoft NNP
's POS
Excel NNP
spreadsheet NN
by IN
four-to-one RB
in IN
the DT
quarter NN
, ,
and CC
held VBD
a DT
70 CD
% NN
or CC
better JJR
share NN
of IN
the DT
spreadsheet NN
market NN
. .

Silicon NNP
Valley NNP
heaved VBD
a DT
sigh NN
of IN
relief NN
yesterday NN
. .

Though IN
details NNS
were VBD
sketchy JJ
in IN
the DT
aftermath NN
of IN
the DT
violent JJ
earthquake NN
that WDT
shook VBD
the DT
high-tech JJ
corridor NN
along IN
with IN
the DT
rest NN
of IN
the DT
San NNP
Francisco NNP
Bay NNP
area NN
, ,
a DT
spot NN
check NN
of IN
computer NN
makers NNS
turned VBD
up IN
little JJ
, ,
if IN
any DT
, ,
potentially RB
lingering VBG
damage NN
to TO
facilities NNS
or CC
fabrication NN
equipment NN
. .

Analysts NNS
and CC
corporate JJ
officials NNS
said VBD
they PRP
expected VBD
practically RB
no DT
long-term JJ
disruption NN
in IN
shipments NNS
from IN
the DT
Valley NNP
of IN
either DT
hardware NN
or CC
software NN
goods NNS
. .

Intel NNP
Corp. NNP
, ,
Advanced NNP
Micro NNP
Devices NNP
Inc. NNP
and CC
National NNP
Semiconductor NNP
Corp. NNP
were VBD
all DT
up IN
and CC
running VBG
yesterday NN
, ,
though IN
many JJ
workers NNS
were VBD
forced VBN
to TO
stay VB
home NN
because IN
of IN
damaged VBN
roadways NNS
; :
others NNS
elected VBN
to TO
take VB
the DT
day NN
off RB
. .

`` ``
These DT
systems NNS
are VBP
more RBR
rugged JJ
than IN
many JJ
people NNS
would MD
believe VB
, ,
'' ''
said VBD
Thomas NNP
Kurlak NNP
, ,
who WP
tracks VBZ
the DT
computer NN
industry NN
for IN
Merrill NNP
Lynch NNP
Research NNP
. .
`` ``
It PRP
's VBZ
not RB
the DT
end NN
of IN
the DT
world NN
if IN
you PRP
shake VBP
them PRP
up IN
a DT
little JJ
bit NN
. .
'' ''

Other JJ
companies NNS
, ,
including VBG
International NNP
Business NNP
Machines NNP
Corp. NNP
and CC
Hewlett-Packard NNP
Co. NNP
, ,
completely RB
idled VBN
their PRP$
operations NNS
because IN
of IN
Tuesday NNP
evening NN
's POS
temblor NN
, ,
which WDT
registered VBD
6.9 CD
on IN
the DT
Richter NNP
scale NN
. .

Personnel NNP
spent VBD
the DT
morning NN
inspecting VBG
buildings NNS
for IN
structural JJ
weaknesses NNS
, ,
mopping VBG
up IN
water NN
from IN
broken VBN
pipes NNS
and CC
clearing VBG
ceiling NN
tiles NNS
and CC
other JJ
debris NN
from IN
factory NN
floors NNS
. .

Still RB
, ,
many NN
were VBD
confident JJ
that IN
`` ``
in IN
a DT
day NN
or CC
two CD
, ,
everything NN
should MD
be VB
back RB
to TO
normal JJ
, ,
'' ''
according VBG
to TO
a DT
spokeswoman NN
for IN
the DT
Semiconductor NNP
Industry NNP
Association NNP
, ,
based VBN
in IN
Cupertino NNP
. .

IBM NNP
, ,
for IN
instance NN
, ,
said VBD
it PRP
anticipates VBZ
returning VBG
to TO
a DT
normal JJ
work NN
schedule NN
by IN
the DT
weekend NN
at IN
its PRP$
San NNP
Jose NNP
plant NN
, ,
which WDT
puts VBZ
out RP
disk NN
drives NNS
for IN
the DT
3090 CD
family NN
of IN
mainframes NNS
. .

A DT
Hewlett-Packard NNP
spokeswoman NN
said VBD
that IN
, ,
while IN
`` ``
things NNS
are VBP
a DT
big JJ
mess NN
, ,
'' ''
some DT
18,000 CD
Valley NNP
employees NNS
have VBP
been VBN
called VBN
back RB
to TO
work VB
today NN
. .

Apple NNP
Computer NNP
added VBD
that IN
it PRP
was VBD
being VBG
`` ``
cautiously RB
optimistic JJ
, ,
'' ''
despite IN
not RB
yet RB
closely RB
eyeballing VBG
all DT
of IN
its PRP$
50 CD
buildings NNS
in IN
the DT
region NN
. .

Even RB
the DT
carefully RB
calibrated VBN
machinery NN
in IN
its PRP$
giant NN
Fremont NNP
plant NN
, ,
to TO
the DT
north RB
of IN
the DT
Valley NNP
, ,
was VBD
believed VBN
to TO
be VB
undamaged JJ
. .

Sun NNP
Microsystems NNP
Inc. NNP
and CC
Tandem NNP
Computers NNP
Inc. NNP
also RB
signaled VBD
that IN
they PRP
should MD
recover VB
quickly RB
. .

Digital NNP
Equipment NNP
Corp. NNP
, ,
with IN
major JJ
facilities NNS
in IN
Santa NNP
Clara NNP
, ,
Cupertino NNP
, ,
Palo NNP
Alto NNP
and CC
Mountain NNP
View NNP
, ,
said VBD
that IN
all DT
of IN
its PRP$
engineering NN
and CC
manufacturing NN
sites NNS
had VBD
reported VBN
to TO
corporate JJ
headquarters NN
in IN
Maynard NNP
, ,
Mass. NNP
, ,
Tuesday NNP
night NN
. .

None NN
sustained VBN
`` ``
significant JJ
'' ''
damage NN
, ,
a DT
spokesman NN
said VBD
, ,
adding VBG
that IN
`` ``
the DT
delicate JJ
manufacturing NN
process NN
machines NNS
were VBD
checked VBN
and CC
were VBD
all DT
found VBD
to TO
be VB
operating VBG
normally RB
. .
'' ''

For IN
many JJ
companies NNS
, ,
of IN
course NN
, ,
there EX
is VBZ
still RB
a DT
slew NN
of IN
nagging JJ
problems NNS
to TO
grapple VB
with IN
, ,
some DT
of IN
which WDT
have VBP
the DT
potential JJ
to TO
become VB
quite RB
serious JJ
. .
For IN
example NN
, ,
a DT
spokesman NN
for IN
Advanced NNP
Micro NNP
Devices NNPS
said VBD
the DT
Sunnyvale NNP
chip NN
maker NN
is VBZ
worried VBN
about IN
blackouts NNS
. .

A DT
sudden JJ
surge NN
or CC
drop NN
in IN
electric JJ
power NN
could MD
ruin VB
integrated VBN
circuits NNS
being VBG
built VBN
. .

But CC
, ,
given VBN
what WP
might MD
have VB
happened VBN
to TO
the DT
fragile JJ
parts NNS
that WDT
are VBP
at IN
the DT
heart NN
of IN
the DT
microelectronics NNS
business NN
, ,
the DT
bulk NN
of IN
Valley NNP
companies NNS
seemed VBD
to TO
be VB
just RB
about IN
shouting VBG
hosannas NNS
. .

Several JJ
factors NNS
apparently RB
spared VBN
the DT
Valley NNP
-- :
a DT
sprawling VBG
suburban JJ
stretch NN
from IN
San NNP
Jose NNP
to TO
Palo NNP
Alto NNP
-- :
from IN
the DT
kind NN
of IN
impact NN
felt VBD
in IN
San NNP
Francisco NNP
, ,
an DT
hour NN
's POS
drive NN
north RB
. .

For IN
one CD
thing NN
, ,
buildings NNS
there EX
tend VBP
to TO
be VB
newer JJR
and CC
, ,
thus RB
, ,
in IN
step NN
with IN
the DT
latest JJS
safety NN
codes NNS
. .

Also RB
, ,
the DT
soil NN
in IN
the DT
Valley NNP
is VBZ
solid JJ
, ,
unlike IN
the DT
landfill NN
of IN
San NNP
Francisco NNP
's POS
downtown NN
Marina NNP
District NNP
, ,
which WDT
was VBD
hit VBN
with IN
fires NNS
and CC
vast JJ
destruction NN
. .

In IN
addition NN
, ,
some DT
microelectronics NNS
companies NNS
said VBD
they PRP
were VBD
prepared VBN
for IN
tremulous JJ
conditions NNS
like IN
Tuesday NNP
's POS
. .
Their PRP$
machine NN
tools NNS
are VBP
even RB
bolted VBN
to TO
the DT
shop NN
floor NN
. .

Intel NNP
said VBD
that IN
over IN
the DT
past JJ
decade NN
, ,
it PRP
has VBZ
installed VBN
computer NN
sensors NNS
and CC
shutoff NN
valves NNS
, ,
sensitive JJ
to TO
the DT
shake NN
of IN
an DT
earthquake NN
, ,
in IN
the DT
pipes NNS
that WDT
snake NN
through IN
its PRP$
plants NNS
. .

Like IN
other JJ
large JJ
Valley NNP
companies NNS
, ,
Intel NNP
also RB
noted VBD
that IN
it PRP
has VBZ
factories NNS
in IN
several JJ
parts NNS
of IN
the DT
nation NN
, ,
so RB
that IN
a DT
breakdown NN
at IN
one CD
location NN
should MD
n't RB
leave VB
customers NNS
in IN
a DT
total JJ
pinch NN
. .

That DT
's VBZ
certainly RB
good JJ
news NN
for IN
such JJ
companies NNS
as IN
Compaq NNP
Computer NNP
Corp. NNP
, ,
Houston NNP
, ,
which WDT
has VBZ
only RB
a DT
four-day JJ
supply NN
of IN
microprocessors NNS
from IN
the DT
Valley NNP
on IN
hand NN
because IN
of IN
a DT
just-in-time JJ
manufacturing NN
approach NN
that IN
limits VBZ
the DT
buildup NN
of IN
inventory NN
. .

Compaq NNP
said VBD
it PRP
foresees VBZ
no DT
difficulties NNS
in IN
obtaining VBG
parts NNS
in IN
the DT
immediate JJ
future NN
. .

Computer NN
makers NNS
were VBD
scrambling VBG
to TO
help VB
customers NNS
recover VB
from IN
the DT
disaster NN
. .

Digital NNP
Equipment NNP
has VBZ
set VBN
up IN
disaster-recovery JJ
response NN
centers NNS
in IN
Dallas NNP
, ,
Atlanta NNP
and CC
Colorado NNP
Springs NNP
, ,
Colo NNP
. .

These DT
units NNS
were VBD
handling NN
calls VBZ
both DT
from IN
people NNS
in IN
the DT
San NNP
Francisco NNP
area NN
and CC
from IN
computers NNS
themselves PRP
, ,
which WDT
are VBP
set VBN
to TO
dial VB
Digital NNP
automatically RB
when WRB
trouble NN
arises VBZ
. .

They PRP
then RB
run VBP
remotely RB
controlled VBN
self-diagnostic JJ
programs NNS
. .

Digital NNP
also RB
said VBD
it PRP
has VBZ
dispatched VBN
teams NNS
of IN
technicians NNS
to TO
California NNP
. .

Meanwhile RB
, ,
several JJ
other JJ
major JJ
installations NNS
around IN
the DT
Valley NNP
-- :
America NNP
's POS
center NN
of IN
high-tech JJ
-- :
said VBD
they PRP
, ,
too RB
, ,
fared VBD
as RB
well RB
as IN
could MD
be VB
expected VBN
. .

Lawrence NNP
Livermore NNP
National NNP
Laboratory NNP
, ,
where WRB
the DT
Energy NNP
Department NNP
tests NNS
and CC
conducts VBZ
research NN
on IN
nuclear JJ
weapons NNS
, ,
had VBD
only RB
`` ``
superficial JJ
damage NN
, ,
'' ''
a DT
spokesman NN
said VBD
. .

At IN
Lockheed NNP
Corp. NNP
's POS
missiles NNS
and CC
space NN
systems NNS
group VBP
in IN
Sunnyvale NNP
, ,
about IN
40 CD
miles NNS
south RB
of IN
San NNP
Francisco NNP
, ,
workers NNS
were VBD
asked VBN
to TO
head VB
to TO
work VB
yesterday NN
after IN
it PRP
was VBD
realized VBN
that IN
`` ``
there EX
were VBD
no DT
show-stoppers NNS
'' ''
in IN
the DT
150-plus JJ
buildings NNS
on IN
its PRP$
one-square-mile JJ
campus NN
. .

Several JJ
engineering NN
and CC
research NN
offices NNS
needed VBN
closer JJR
scrutiny NN
to TO
make VB
sure JJ
they PRP
were VBD
n't RB
in IN
danger NN
of IN
crumbling VBG
, ,
but CC
`` ``
the DT
bulk NN
of IN
the DT
place NN
is VBZ
in IN
pretty RB
good JJ
shape NN
, ,
'' ''
an DT
official NN
said VBD
. .

One CD
of IN
Lockheed NNP
's POS
most RBS
lucrative JJ
sectors NNS
-- :
accounting NN
for IN
more JJR
than IN
half PDT
the DT
aerospace NN
company NN
's POS
$ $
10.59 CD
billion CD
in IN
sales NNS
in IN
1988 CD
-- :
the DT
missiles NNS
and CC
space NN
group NN
is VBZ
the DT
prime JJ
Pentagon NNP
contractor NN
on IN
the DT
Trident NNP
II NNP
ballistic JJ
missile NN
. .

It PRP
also RB
generates VBZ
pieces NNS
of IN
the DT
missile NN
shield NN
called VBD
the DT
Strategic NNP
Defense NNP
Initiative NNP
. .

Fortunately RB
, ,
the DT
Hubble NNP
Space NNP
Telescope NNP
-- :
set VBN
to TO
be VB
launched VBN
on IN
the DT
shuttle NN
next JJ
year NN
in IN
a DT
search NN
for IN
distant JJ
solar JJ
systems NNS
and CC
light NN
emitted VBN
14 CD
billion CD
years NNS
ago RB
from IN
the DT
farthest JJS
reaches NNS
of IN
the DT
universe NN
-- :
was VBD
moved VBN
from IN
Sunnyvale NNP
to TO
the DT
Kennedy NNP
Space NNP
Center NNP
in IN
Florida NNP
at IN
the DT
beginning NN
of IN
October NNP
. .

John NNP
R. NNP
Wilke NNP
contribued VBD
to TO
this DT
article NN
. .

Michael NNP
Maynard NNP
offered VBD
the DT
world NN
a DT
faster JJR
way NN
to TO
break VB
eggs NNS
. .

As IN
thanks NNS
, ,
the DT
egg NN
industry NN
tried VBD
to TO
break VB
him PRP
. .

And CC
the DT
egg NN
producers NNS
have VBP
done VBN
a DT
pretty RB
good JJ
job NN
. .
They PRP
tried VBD
to TO
put VB
Mr. NNP
Maynard NNP
out IN
of IN
business NN
by IN
an DT
act NN
of IN
Congress NNP
. .

Egg-industry NN
lobbying VBG
helped VBN
persuade VB
six CD
states NNS
to TO
ban VB
Mr. NNP
Maynard NNP
's POS
automatic JJ
egg-breaking NN
machine NN
because IN
of IN
fears NNS
over IN
salmonella NN
. .

His PRP$
company NN
, ,
Misa NNP
Manufacturing NNP
Inc. NNP
, ,
was VBD
forced VBN
to TO
seek VB
protection NN
from IN
creditors NNS
under IN
federal JJ
bankruptcy NN
law NN
in IN
1987 CD
and CC
has VBZ
since IN
been VBN
liquidated VBN
. .

Monthly JJ
sales NNS
of IN
his PRP$
Egg NNP
King NNP
machine NN
-- :
which WDT
he PRP
now RB
is VBZ
marketing VBG
through IN
a DT
new JJ
company NN
-- :
have VBP
sunk VBN
to TO
about IN
half PDT
a DT
dozen NN
from IN
a DT
peak NN
of IN
75 CD
, ,
says VBZ
the DT
46-year-old JJ
businessman NN
. .

Mr. NNP
Maynard NNP
is VBZ
n't RB
the DT
first JJ
entrepreneur NN
to TO
bump VB
up IN
against IN
entrenched VBN
interests NNS
. .

But CC
his PRP$
case NN
is VBZ
notable JJ
both DT
for IN
the DT
scale NN
of IN
the DT
fight NN
-- :
it PRP
is VBZ
n't RB
often RB
that IN
a DT
congressional JJ
hearing NN
is VBZ
held VBN
to TO
determine VB
whether IN
one CD
small JJ
businessman NN
is VBZ
a DT
threat NN
to TO
the DT
republic NN
-- :
and CC
for IN
what WP
it PRP
tells VBZ
about IN
the DT
pitfalls NNS
of IN
marketing VBG
a DT
new JJ
product NN
. .

Now RB
one PRP
might MD
ask VB
why WRB
people NNS
who WP
sell VBP
eggs NNS
would MD
fight VB
someone NN
who WP
is VBZ
trying VBG
to TO
make VB
it PRP
easier JJR
to TO
crack VB
them PRP
. .

Part NN
of IN
the DT
answer NN
lies VBZ
in IN
the DT
nature NN
of IN
the DT
industry NN
. .

Many RB
larger JJR
egg NN
producers NNS
are VBP
also RB
egg NN
processors NNS
, ,
who WP
crack VBP
, ,
inspect VB
, ,
and CC
sanitize VBP
billions NNS
of IN
eggs NNS
, ,
turning VBG
them PRP
into IN
powdered JJ
, ,
liquified JJ
or CC
frozen VBN
egg NN
products NNS
. .
However RB
, ,
dozens NNS
of IN
bakers NNS
, ,
restaurant NN
chefs NNS
and CC
other JJ
food NN
preparers NNS
who WP
flocked VBD
to TO
Mr. NNP
Maynard NNP
's POS
defense NN
say VBP
that IN
products NNS
ranging VBG
from IN
egg NN
bread NN
to TO
eclairs NNS
lose VBP
some DT
zip NN
when WRB
the DT
eggs NNS
come VBP
in IN
30-pound JJ
cans NNS
instead RB
of IN
shells NNS
. .

But CC
for IN
companies NNS
that IN
use NN
hundreds NNS
of IN
eggs NNS
a DT
day NN
, ,
breaking VBG
them PRP
by IN
hand NN
can MD
get VB
, ,
well RB
, ,
out IN
of IN
hand NN
. .

The DT
idea NN
behind IN
the DT
Egg NNP
King NNP
is VBZ
pretty RB
simple JJ
: :
put VB
the DT
eggs NNS
into IN
a DT
cylinder NN
that WDT
contains VBZ
perforated JJ
baskets NNS
, ,
spin VB
them PRP
at IN
a DT
high JJ
speed NN
to TO
break VB
the DT
shells NNS
and CC
strain VB
the DT
edible JJ
part NN
through IN
the DT
baskets NNS
. .

One CD
Egg NNP
King NNP
-- :
which WDT
at IN
just RB
under IN
four CD
feet NNS
tall JJ
and CC
two CD
feet NNS
wide JJ
has VBZ
been VBN
likened VBN
to TO
the DT
robot NN
R2-D2 NN
-- :
can MD
crack VB
about IN
20,000 CD
eggs NNS
an DT
hour NN
. .

Because IN
fresh JJ
eggs NNS
are VBP
less RBR
expensive JJ
than IN
processed VBN
ones NNS
, ,
a DT
big JJ
egg NN
user NN
can MD
recover VB
the DT
Egg NNP
King NNP
's POS
$ $
3,390 CD
cost NN
in IN
a DT
few JJ
months NNS
, ,
says VBZ
Mr. NNP
Maynard NNP
. .

Such JJ
centrifugal JJ
egg NN
breakers NNS
have VBP
been VBN
around IN
since IN
the DT
1890s CD
. .

But CC
when WRB
Mr. NNP
Maynard NNP
came VBD
forward RB
with IN
his PRP$
machine NN
in IN
the DT
early JJ
1970s NNS
nobody NN
else RB
was VBD
offering VBG
them PRP
in IN
the DT
U.S. NNP
. .

The DT
main JJ
reason NN
: :
salmonella NN
. .

Chickens NNS
carry VBP
this DT
bacteria NNS
, ,
which WDT
can MD
cause VB
upset VBN
stomachs NNS
and CC
, ,
in IN
rare JJ
cases NNS
, ,
death NN
among IN
people NNS
. .

Hens NNS
sometimes RB
pass VBP
salmonella NN
to TO
the DT
eggs NNS
, ,
and CC
it PRP
can MD
also RB
be VB
found VBN
on IN
unclean JJ
shells NNS
. .

Thus RB
, ,
any DT
machine NN
that IN
breaks VBZ
large JJ
amounts NNS
of IN
eggs NNS
at IN
once RB
has VBZ
the DT
potential JJ
to TO
spread VB
salmonella NN
if IN
a DT
bad JJ
egg NN
gets VBZ
in IN
with IN
the DT
good JJ
ones NNS
. .

Mr. NNP
Maynard NNP
claims VBZ
this DT
is VBZ
a DT
manageable JJ
problem NN
. .

The DT
Egg NNP
King NNP
carries VBZ
written VBN
instructions NNS
to TO
break VB
only RB
high-grade JJ
eggs NNS
that WDT
have VBP
been VBN
properly RB
sanitized VBN
and CC
, ,
as IN
an DT
added VBN
precaution NN
, ,
to TO
use VB
the DT
eggs NNS
only RB
in IN
products NNS
that WDT
will MD
be VB
cooked VBN
enough RB
to TO
kill VB
bacteria NNS
. .

With IN
nearly RB
4,000 CD
machines NNS
in IN
use NN
, ,
there EX
have VBP
been VBN
no DT
salmonella NN
problems NNS
as RB
long RB
as IN
instructions NNS
were VBD
followed VBN
, ,
Mr. NNP
Maynard NNP
boasts VBZ
. .

He PRP
says VBZ
the DT
handful NN
of IN
salmonella NN
cases NNS
involving VBG
products NNS
that WDT
may MD
have VB
used VBN
eggs NNS
broken VBN
by IN
an DT
Egg NNP
King NNP
stemmed VBD
from IN
a DT
failure NN
to TO
adequately RB
cook VBP
the DT
products NNS
. .

But CC
he PRP
says VBZ
that DT
's VBZ
no DT
more JJR
a DT
reason NN
for IN
banning VBG
Egg NNP
Kings NNP
than IN
bad JJ
drivers NNS
are VBP
a DT
reason NN
for IN
banning VBG
cars NNS
. .

Opponents NNS
do VBP
n't RB
buy VB
such JJ
arguments NNS
. .

`` ``
Human NNP
nature NN
being VBG
what WP
it PRP
is VBZ
, ,
people NNS
do VBP
n't RB
always RB
follow VB
instructions NNS
, ,
'' ''
says VBZ
Jack NNP
Guzewich NNP
, ,
chief NN
of IN
food NN
protection NN
for IN
the DT
New NNP
York NNP
state NN
Health NNP
Department NNP
. .

Leading VBG
the DT
assault NN
against IN
the DT
Egg NNP
King NNP
has VBZ
been VBN
United NNP
Egg NNP
Producers NNS
. .

The DT
Decatur NNP
, ,
Ga. NNP
, ,
trade NN
group NN
has VBZ
issued VBN
a DT
`` ``
briefing NN
book NN
'' ''
that IN
claims VBZ
the DT
machine NN
is VBZ
`` ``
a DT
health NN
hazard NN
'' ''
and CC
that IN
Mr. NNP
Maynard NNP
is VBZ
trying VBG
`` ``
to TO
make VB
a DT
fast JJ
buck NN
at IN
the DT
expense NN
of IN
the DT
nation NN
's POS
egg NN
producers NNS
. .
'' ''

The DT
UEP NNP
declines NNS
to TO
comment VB
, ,
but CC
the DT
group NN
's POS
attorney NN
, ,
Alfred NNP
Frawley NNP
, ,
says VBZ
the DT
group NN
's POS
actions NNS
are VBP
motivated VBN
solely RB
by IN
`` ``
health NN
concerns NNS
. .
'' ''

An DT
early JJ
battleground NN
was VBD
the DT
U.S. NNP
Department NNP
of IN
Agriculture NNP
. .

Mr. NNP
Maynard NNP
initially RB
won VBD
approval NN
for IN
his PRP$
machine NN
to TO
be VB
used VBN
at IN
egg-processing JJ
facilities NNS
regulated VBN
by IN
the DT
USDA NNP
's POS
Food NNP
Safety NNP
Inspection NNP
Service NNP
. .

Unfortunately RB
for IN
Mr. NNP
Maynard NNP
, ,
another DT
branch NN
of IN
the DT
USDA NNP
, ,
the DT
Agricultural NNP
Marketing NNP
Service NNP
, ,
was VBD
in IN
charge NN
of IN
eggs NNS
. .

After IN
receiving VBG
complaints NNS
from IN
egg NN
producers NNS
, ,
this DT
branch NN
got VBD
the DT
other JJ
branch NN
to TO
rescind VB
its PRP$
approval NN
, ,
thus RB
limiting VBG
the DT
machine NN
's POS
potential JJ
market NN
to TO
bakeries NNS
and CC
restaurants NNS
and CC
other JJ
establishments NNS
that WDT
are VBP
n't RB
regulated VBN
by IN
the DT
USDA NNP
. .
The DT
egg NN
producers NNS
also RB
lobbied VBD
the DT
Food NNP
and CC
Drug NNP
Administration NNP
. .

But CC
the DT
FDA NNP
in IN
a DT
1985 CD
letter NN
to TO
the DT
United NNP
Egg NNP
Producers NNS
said VBD
that IN
there EX
was VBD
`` ``
little JJ
likelihood NN
'' ''
of IN
a DT
health NN
problem NN
as RB
long RB
as IN
instructions NNS
were VBD
followed VBN
. .

So RB
the DT
producers NNS
went VBD
to TO
Capitol NNP
Hill NNP
, ,
where WRB
a DT
congressman NN
from IN
Georgia NNP
introduced VBD
a DT
measure NN
to TO
ban VB
centrifugal JJ
egg-breaking NN
machines NNS
. .

Mr. NNP
Maynard NNP
, ,
whose WP$
company NN
at IN
the DT
time NN
was VBD
based VBN
in IN
Santa NNP
Ana NNP
, ,
Calif. NNP
, ,
enlisted VBD
his PRP$
local JJ
congressman NN
, ,
and CC
the DT
battle NN
was VBD
joined VBN
. .

Mr. NNP
Maynard NNP
's POS
forces NNS
finally RB
defeated VBN
the DT
measure NN
, ,
though IN
it PRP
took VBD
a DT
vote NN
on IN
the DT
floor NN
of IN
the DT
House NNP
of IN
Representatives NNPS
to TO
do VB
it PRP
. .

Even RB
then RB
, ,
opponents NNS
managed VBD
to TO
get VB
a DT
congressional JJ
hearing NN
to TO
examine VB
what WP
one CD
congressman NN
called VBD
an DT
`` ``
unscrupulous JJ
'' ''
method NN
for IN
breaking VBG
eggs NNS
. .

Foiled VBN
in IN
their PRP$
effort NN
to TO
get VB
a DT
national JJ
ban NN
, ,
the DT
egg NN
producers NNS
turned VBD
their PRP$
attention NN
to TO
the DT
states NNS
. .

So RB
far RB
, ,
New NNP
York NNP
, ,
New NNP
Jersey NNP
, ,
Nebraska NNP
, ,
Georgia NNP
, ,
Michigan NNP
and CC
Minnesota NNP
have VBP
outlawed VBN
Mr. NNP
Maynard NNP
's POS
device NN
, ,
citing VBG
health NN
concerns NNS
. .

An DT
antitrust JJ
suit NN
that IN
Mr. NNP
Maynard NNP
's POS
company NN
filed VBN
in IN
Los NNP
Angeles NNP
federal JJ
court NN
against IN
the DT
United NNP
Egg NNP
Producers NNS
and CC
others NNS
only RB
added VBD
to TO
the DT
entrepreneur NN
's POS
woes NNS
. .

The DT
judge NN
dismissed VBD
the DT
suit NN
and CC
ordered VBD
Mr. NNP
Maynard NNP
's POS
company NN
to TO
pay VB
over IN
$ $
100,000 CD
in IN
legal JJ
fees NNS
to TO
the DT
defendants NNS
' POS
lawyers NNS
. .

Mr. NNP
Maynard NNP
says VBZ
the DT
ruling NN
pushed VBD
his PRP$
company NN
into IN
bankruptcy NN
court NN
. .

Now RB
he PRP
has VBZ
moved VBN
to TO
Oklahoma NNP
where WRB
costs NNS
are VBP
lower JJR
, ,
and CC
started VBD
a DT
new JJ
company NN
, ,
Adsi NNP
Inc. NNP
, ,
to TO
market VB
his PRP$
machine NN
. .

But CC
, ,
so RB
far RB
, ,
the DT
change NN
of IN
scenery NN
has VBZ
n't RB
ended VBN
his PRP$
string NN
of IN
bad JJ
breaks NNS
. .

Mr. NNP
Maynard NNP
recently RB
fell VBD
from IN
a DT
horse NN
and CC
fractured VBN
his PRP$
arm NN
. .

Michelle NNP
Pfeiffer NNP
ca MD
n't RB
chew VB
gum NN
and CC
sing VB
at IN
the DT
same JJ
time NN
. .

But CC
on IN
the DT
evidence NN
of IN
`` ``
The DT
Fabulous NNP
Baker NNP
Boys NNPS
, ,
'' ''
that WDT
may MD
be VB
the DT
only JJ
thing NN
she PRP
ca MD
n't RB
do VB
, ,
at IN
least JJS
when WRB
she PRP
's VBZ
acting VBG
in IN
movies NNS
. .

As IN
the DT
tough JJ
, ,
slinky JJ
lounge NN
chanteuse NN
in IN
`` ``
The DT
Fabulous NNP
Baker NNP
Boys NNPS
, ,
'' ''
Ms. NNP
Pfeiffer NNP
sings VBZ
for IN
herself PRP
, ,
and CC
more JJR
than IN
passably RB
well RB
. .

Her PRP$
Susie NNP
Diamond NNP
handles VBZ
a DT
song NN
the DT
way NN
the DT
greats NNS
do VBP
, ,
like IN
she PRP
's VBZ
hearing VBG
the DT
way NN
it PRP
should MD
sound VB
inside IN
her PRP$
head NN
and CC
she PRP
's VBZ
concentrating VBG
on IN
matching VBG
that IN
internal JJ
tone NN
. .

Yet RB
her PRP$
intensity NN
stops VBZ
and CC
starts VBZ
with IN
the DT
music NN
. .

When WRB
she PRP
is VBZ
n't RB
performing VBG
for IN
an DT
audience NN
, ,
she PRP
prepares VBZ
for IN
a DT
song NN
by IN
removing VBG
the DT
wad NN
of IN
gum NN
from IN
her PRP$
mouth NN
, ,
and CC
indicates VBZ
that IN
she PRP
's VBZ
finished VBN
by IN
sticking VBG
the DT
gum NN
back RB
in RB
. .

Like IN
almost JJ
everything NN
in IN
this DT
wonderfully RB
romantic JJ
and CC
edgy JJ
movie NN
, ,
Ms. NNP
Pfeiffer NNP
's POS
Susie NNP
seems VBZ
like IN
someone NN
you PRP
've VBP
seen VBN
before RB
, ,
in IN
numerous JJ
show-biz NN
stories NNS
-LRB- (
even RB
her PRP$
name NN
, ,
Susie NNP
Diamond NNP
, ,
sounds VBZ
like IN
a DT
character NN
Marilyn NNP
Monroe NNP
must MD
have VB
played VBN
-RRB- )
. .

Yet RB
nothing NN
about IN
`` ``
Baker NNP
Boys NNPS
, ,
'' ''
and CC
certainly RB
nothing NN
about IN
Ms. NNP
Pfeiffer NNP
, ,
really RB
is VBZ
like IN
something NN
from IN
the DT
video NN
vault NN
. .

Steve NNP
Kloves NNP
, ,
the DT
young JJ
writer NN
and CC
director NN
-LRB- (
he PRP
is VBZ
n't RB
yet RB
30 CD
-RRB- )
, ,
has VBZ
only RB
one CD
produced VBN
picture NN
to TO
his PRP$
credit NN
; :
he PRP
wrote VBD
the DT
screenplay NN
for IN
`` ``
Racing NNP
With IN
the DT
Moon NNP
, ,
'' ''
a DT
lovely JJ
coming-of-age JJ
picture NN
set VBN
in IN
the DT
'40s NNS
. .

Both DT
movies NNS
are VBP
infused VBN
with IN
the DT
nostalgic JJ
sensibility NN
of IN
someone NN
much RB
older JJR
, ,
someone NN
who WP
does VBZ
n't RB
dismiss VB
dreams NNS
, ,
but CC
who WP
also RB
has VBZ
enough JJ
experience NN
to TO
see VB
his PRP$
limits NNS
. .

However RB
, ,
Mr. NNP
Kloves NNP
directs VBZ
his PRP$
own JJ
material NN
without IN
sentimentality NN
and CC
at IN
its PRP$
own JJ
eccentric JJ
pace NN
; :
`` ``
Baker NNP
Boys NNPS
'' ''
is VBZ
both DT
bluesy JJ
and CC
funny JJ
. .

He PRP
's VBZ
put VBN
a DT
fresh JJ
spin NN
on IN
material NN
that WDT
could MD
come VB
off IN
terribly RB
cliched JJ
; :
for IN
example NN
, ,
the DT
way NN
Susie NNP
wows VBZ
an DT
audience NN
the DT
first JJ
time NN
she PRP
sings VBZ
with IN
the DT
Baker NNP
Boys NNPS
. .

Of IN
course NN
, ,
it PRP
does VBZ
n't RB
hurt VBN
that IN
Mr. NNP
Kloves NNP
has VBZ
made VBN
up IN
for IN
his PRP$
lack NN
of IN
experience NN
behind IN
the DT
camera NN
with IN
technicians NNS
who WP
know VBP
exactly RB
what WP
they PRP
're VBP
doing VBG
. .

Much RB
of IN
the DT
picture NN
's POS
sensuality NN
emerges VBZ
from IN
cinematographer NN
Michael NNP
Ballhaus NNP
's POS
slyly RB
seductive JJ
lens NN
work NN
. .

After IN
working VBG
for IN
years NNS
with IN
Werner NNP
Rainer NNP
Fassbinder NNP
, ,
the DT
late JJ
German JJ
director NN
, ,
and CC
more RBR
recently RB
with IN
Martin NNP
Scorsese NNP
-LRB- (
`` ``
After IN
Hours NNS
, ,
'' ''
`` ``
The DT
Color NNP
of IN
Money NNP
, ,
'' ''
`` ``
The DT
Last JJ
Temptation NN
of IN
Christ NNP
'' ''
-RRB- )
, ,
Mr. NNP
Ballhaus NNP
has VBZ
developed VBN
a DT
distinctively RB
fluid NN
style NN
. .

And CC
Dave NNP
Grusin NNP
's POS
witty JJ
score NN
embraces VBZ
the DT
banal JJ
requirements NNS
of IN
banquet-hall NN
musicianship NN
-LRB- (
`` ``
Feelings NNS
'' ''
is VBZ
a DT
must MD
-RRB- )
without IN
condescension NN
. .

Though IN
Ms. NNP
Pfeiffer NNP
has VBZ
the DT
flashy JJ
part NN
-- :
she PRP
gets VBZ
the DT
best JJS
comic JJ
bits NNS
and CC
to TO
wear VB
glamorous JJ
dresses NNS
and CC
spiked JJ
heels NNS
the DT
boys NNS
are VBP
pretty RB
great JJ
, ,
too RB
. .

What WP
seemed VBD
like IN
a DT
good JJ
idea NN
, ,
to TO
cast VB
the DT
Bridges NNP
brothers NNS
-LRB- (
Jeff NNP
and CC
Beau NNP
-RRB- )
as IN
the DT
Baker NNP
brothers NNS
, ,
actually RB
turned VBD
out IN
to TO
be VB
a DT
good JJ
idea NN
. .

Anyone NN
who WP
's VBZ
tried VBD
to TO
appear VB
`` ``
natural JJ
'' ''
in IN
front NN
of IN
a DT
camera NN
knows VBZ
that IN
it PRP
's VBZ
much RB
more RBR
natural JJ
to TO
end VB
up IN
looking VBG
like IN
a DT
stiff NN
. .

So RB
it PRP
's VBZ
quite RB
possible JJ
that IN
the DT
terrific JJ
play NN
between IN
the DT
brothers NNS
is VBZ
n't RB
natural JJ
at IN
all DT
, ,
that IN
Jeff NNP
and CC
Beau NNP
had VBD
to TO
work VB
like IN
crazy JJ
to TO
make VB
their PRP$
brotherly JJ
love NN
-- :
and CC
resentment NN
and CC
frustration NN
and CC
rage NN
-- :
seem VB
so RB
very RB
real JJ
. .

When WRB
the DT
movie NN
opens VBZ
the DT
Baker NNP
brothers NNS
are VBP
doing VBG
what WP
they PRP
've VBP
done VBN
for IN
15 CD
years NNS
professionally RB
, ,
and CC
twice RB
as RB
long RB
as IN
that DT
for IN
themselves PRP
: :
They PRP
're VBP
playing VBG
proficient JJ
piano NN
, ,
face-to-face JJ
, ,
on IN
twin JJ
pianos NNS
. .
They PRP
're VBP
small JJ
time NN
in IN
the DT
small JJ
time-hotels NNS
-LRB- (
not RB
the DT
best JJS
ones NNS
-RRB- )
and CC
restaurants NNS
in IN
Seattle NNP
. .

Yet RB
they PRP
do VBP
n't RB
disparage VB
their PRP$
audiences NNS
by IN
disparaging VBG
their PRP$
act NN
. .

They PRP
wear VBP
tuxedos NNS
most RBS
nights NNS
, ,
unless IN
circumstances NNS
-LRB- (
a DT
regular JJ
gig NN
at IN
a DT
`` ``
tropical JJ
'' ''
lounge NN
, ,
for IN
example NN
-RRB- )
require VB
them PRP
to TO
wear VB
special JJ
costumes NNS
, ,
like IN
Hawaiian NNP
shirts NNS
. .

Plump JJ
Beau NNP
, ,
looking VBG
eager JJ
to TO
please VB
with IN
his PRP$
arched JJ
eyebrows NNS
and CC
round NN
face NN
, ,
plays VBZ
the DT
older JJR
brother NN
, ,
Frank NNP
. .

Frank NNP
plans VBZ
the DT
program NN
, ,
takes VBZ
care NN
of IN
business NN
, ,
and CC
approaches VBZ
the DT
work NN
like IN
any DT
other JJ
job NN
. .

He PRP
's VBZ
even RB
able JJ
to TO
think VB
of IN
a DT
job NN
that WDT
takes VBZ
him PRP
out IN
of IN
the DT
house NN
300 CD
nights NNS
a DT
week NN
as IN
an DT
ordinary JJ
job NN
. .

He PRP
's VBZ
got VBD
a DT
wife NN
and CC
two CD
kids NNS
and CC
a DT
house NN
in IN
the DT
suburbs NNS
; :
the DT
audience NN
sees VBZ
only RB
the DT
house NN
, ,
and CC
only RB
near IN
the DT
end NN
of IN
the DT
movie NN
. .

Frank NNP
grovels VBZ
a DT
little JJ
for IN
the DT
bookers NNS
, ,
probably RB
no DT
more JJR
or CC
less JJR
than IN
he PRP
would MD
have VB
to TO
if IN
he PRP
worked VBD
for IN
a DT
big JJ
corporation NN
. .

On IN
his PRP$
off-hours JJ
he PRP
wears VBZ
cardigan NN
sweaters NNS
. .

Jeff NNP
Bridges NNP
is VBZ
the DT
younger JJR
brother NN
, ,
Jack NNP
, ,
who WP
fancies VBZ
himself PRP
the DT
rebellious JJ
artist NN
; :
he PRP
lives VBZ
in IN
a DT
loft NN
with IN
his PRP$
sick JJ
dog NN
and CC
the DT
occasional JJ
visit NN
from IN
the DT
little JJ
girl NN
upstairs NN
, ,
who WP
climbs VBZ
down RP
the DT
fire NN
escape NN
. .

Yet RB
Jack NNP
's POS
the DT
one CD
who WP
can MD
remember VB
every DT
dive NN
they PRP
ever RB
played VBD
, ,
and CC
when WRB
, ,
and CC
he PRP
dutifully RB
shows VBZ
up IN
for IN
work NN
night NN
after IN
night NN
-LRB- (
he PRP
consoles VBZ
himself PRP
with IN
booze NN
and CC
by IN
showing VBG
up IN
at IN
the DT
last JJ
minute NN
-RRB- )
. .

Looking VBG
leaner JJR
than IN
he PRP
has VBZ
in IN
a DT
while NN
, ,
the DT
younger JJR
Mr. NNP
Bridges NNP
's POS
Jack NNP
is VBZ
sexy JJ
and CC
cynical JJ
and CC
a DT
far RB
sadder JJR
case NN
than IN
Frank NNP
, ,
who WP
's VBZ
managed VBD
to TO
chisel VB
his PRP$
dreams NNS
to TO
fit VB
reality NN
without IN
feeling NN
too RB
cheated VBD
. .

He PRP
can MD
live VB
with IN
little JJ
pleasures NNS
. .

Mr. NNP
Kloves NNP
has VBZ
put VBN
together RB
some DT
priceless JJ
moments NNS
. .

These DT
include VBP
Jennifer NNP
Tilly NNP
's POS
audition NN
to TO
be VB
the DT
Baker NNP
Boys NNPS
' POS
girl NN
singer NN
. .

Ms. NNP
Tilly NNP
of IN
the DT
tweety-bird JJ
voice NN
showed VBD
great JJ
comic JJ
promise NN
during IN
her PRP$
stint NN
as IN
the DT
mobster NN
's POS
girlfriend NN
on IN
the DT
television NN
show NN
, ,
`` ``
Hill NNP
Street NNP
Blues NNPS
. .
'' ''

Here RB
she PRP
delivers VBZ
, ,
especially RB
during IN
her PRP$
enthusiastically RB
awful JJ
rendition NN
of IN
the DT
`` ``
Candy NN
Man NN
, ,
'' ''
which WDT
she PRP
sings VBZ
while IN
prancing NN
around IN
in IN
a DT
little JJ
cotton NN
candy NN
pink JJ
angora NN
sweater NN
that WDT
could MD
n't RB
be VB
more RBR
perfect JJ
. .

-LRB- (
It PRP
matches VBZ
her PRP$
voice NN
. .
-RRB- )

And CC
Ms. NNP
Pfeiffer NNP
's POS
particular JJ
version NN
of IN
`` ``
Making VBG
Whoopee NN
'' ''
-- :
and CC
the DT
way NN
Mr. NNP
Ballhaus NNP
photographs VBZ
her PRP$
, ,
from IN
the DT
tips NNS
of IN
her PRP$
red JJ
high JJ
heels NNS
right NN
up IN
her PRP$
clingy JJ
red JJ
velvet NN
dress NN
-- :
might MD
make VB
you PRP
think VB
of IN
Marilyn NNP
Monroe NNP
if IN
Ms. NNP
Pfeiffer NNP
had VBD
n't RB
gone VBN
and CC
become VB
a DT
star NN
in IN
her PRP$
own JJ
right NN
. .

VIDEO NN
TIP NN
: :

If IN
you PRP
'd MD
like VB
to TO
see VB
the DT
first JJ
time NN
Michelle NNP
Pfeiffer NNP
sang VBD
on IN
screen NN
, ,
and CC
you PRP
have VBP
a DT
lot NN
of IN
patience NN
, ,
take VB
a DT
look NN
at IN
`` ``
Grease NN
2 CD
. .
'' ''

You PRP
'll MD
find VB
her PRP$
there RB
. .

Better NNP
yet RB
, ,
check NN
out IN
the IN
emergence NN
of IN
her PRP$
comic JJ
persona NN
in IN
`` ``
Married VBN
to TO
the DT
Mob NN
, ,
'' ''
Jonathan NNP
Demme NNP
's POS
delightful JJ
Mafia NNP
comedy NN
. .

International NNP
Proteins NNPS
Corp. NNP
definitively RB
agreed VBD
to TO
pay VB
$ $
49 CD
million CD
and CC
2,850,000 CD
of IN
its PRP$
shares NNS
for IN
Hanson NNP
PLC NNP
's POS
Ground NNP
Round NNP
restaurant NN
subsidiary NN
. .

Shareholders NNS
of IN
International NNP
Proteins NNPS
, ,
a DT
food NN
and CC
agriproducts NNS
company NN
, ,
will MD
vote VB
on IN
the DT
transaction NN
at IN
a DT
meeting NN
late JJ
next JJ
month NN
. .

Hanson NNP
is VBZ
a DT
London NNP
producer NN
of IN
consumer NN
and CC
other JJ
goods NNS
. .

International NNP
Proteins NNPS
shares NNS
did VBD
n't RB
trade VB
yesterday NN
on IN
the DT
American NNP
Stock NNP
Exchange NNP
. .
They PRP
closed VBD
Tuesday NNP
in IN
composite JJ
trading NN
at IN
$ $
13.625 CD
, ,
down RB
37.5 CD
cents NNS
, ,
giving VBG
the DT
stock NN
portion NN
of IN
the DT
transaction NN
an DT
indicated VBN
value NN
of IN
$ $
38.8 CD
million CD
. .

Control NNP
Data NNP
Corp. NNP
agreed VBD
to TO
sell VB
its PRP$
idle JJ
supercomputer NN
manufacturing NN
plant NN
here RB
to TO
Minnesota NNP
Mining NNP
& CC
Manufacturing NNP
Co. NNP
for IN
$ $
5.8 CD
million CD
. .

The DT
tentative JJ
agreement NN
calls VBZ
for IN
3M CD
to TO
use VB
the DT
115,000-square-foot JJ
plant NN
and CC
19 CD
acres NNS
of IN
land NN
for IN
research NN
laboratories NNS
. .

Control NNP
Data NNP
has VBZ
been VBN
seeking VBG
a DT
buyer NN
for IN
the DT
facility NN
since IN
it PRP
folded VBD
its PRP$
ETA NNP
Systems NNP
Inc. NNP
supercomputer NN
unit NN
this DT
past JJ
April NNP
. .

General NNP
Dynamics NNP
Corp. NNP
was VBD
awarded VBN
contracts NNS
totaling VBG
$ $
589 CD
million CD
for IN
one CD
Navy NNP
Trident NNP
submarine NN
and CC
for IN
Air NNP
Force NNP
research NN
on IN
the DT
National NNP
Aerospace NNP
plane NN
. .

Grumman NNP
Corp. NNP
won VBD
a DT
$ $
58.9 CD
million CD
Navy NNP
contract NN
for IN
12 CD
F-14 NN
aircraft NN
. .

Raytheon NNP
Co. NNP
was VBD
issued VBN
a DT
$ $
19.2 CD
million CD
Air NNP
Force NNP
contract NN
for IN
support NN
of IN
the DT
Milstar NNP
communications NNS
satellite NN
. .

McDonnell NNP
Douglas NNP
Corp. NNP
got VBD
a DT
$ $
12.5 CD
million CD
Air NNP
Force NNP
contract NN
for IN
support NN
work NN
on IN
the DT
National NNP
Aerospace NNP
plane NN
. .

Denis NNP
C. NNP
Smith NNP
was VBD
named VBN
to TO
the DT
new JJ
post NN
of IN
vice NN
president NN
of IN
world-wide JJ
advanced VBD
materials NNS
operations NNS
for IN
this DT
chemicals NNS
concern VBP
. .

Mr. NNP
Smith NNP
, ,
50 CD
years NNS
old JJ
, ,
was VBD
formerly RB
responsible JJ
for IN
advanced VBN
materials NNS
, ,
which WDT
include VBP
plastic NN
composites NNS
and CC
alloys NNS
, ,
in IN
North NNP
America NNP
only RB
. .

Himont NNP
is VBZ
81%-owned JJ
by IN
Montedison NNP
S.p NNP
. .
A. NNP
of IN
Milan NNP
, ,
Italy NNP
. .

Galveston-Houston NNP
Co. NNP
said VBD
it PRP
will MD
redeem VB
all DT
3,950 CD
shares NNS
of IN
its PRP$
privately RB
held VBN
6.5 CD
% NN
convertible JJ
Series NNP
C NN
preferred JJ
stock NN
Nov. NNP
8 CD
. .

Holders NNS
can MD
either DT
convert NN
each DT
share NN
into IN
421 CD
shares NNS
of IN
the DT
company NN
's POS
common JJ
stock NN
, ,
or CC
surrender VB
their PRP$
shares NNS
at IN
the DT
per-share JJ
price NN
of IN
$ $
1,000 CD
, ,
plus CC
accumulated VBD
dividends NNS
of IN
$ $
6.71 CD
a DT
share NN
. .

Galveston-Houston NNP
makes VBZ
and CC
markets NNS
products NNS
for IN
the DT
construction NN
, ,
mining NN
and CC
energy NN
industries NNS
. .

Bank NNP
Building NNP
& CC
Equipment NNP
Corp. NNP
of IN
America NNP
, ,
which WDT
previously RB
said VBD
accounting NN
discrepancies NNS
its PRP$
auditors NNS
uncovered VBN
would MD
hurt VB
earnings NNS
and CC
require VB
restatement NN
of IN
earlier JJR
results NNS
, ,
increased VBD
its PRP$
projections NNS
of IN
the DT
negative JJ
fiscal JJ
impact NN
, ,
and CC
said VBD
it PRP
was VBD
exploring VBG
the DT
company NN
's POS
sale NN
. .

Bank NNP
Building NNP
, ,
which WDT
builds VBZ
and CC
equips VBZ
banks NNS
, ,
had VBN
announced VBD
it PRP
would MD
restate VB
the DT
first-three JJ
quarters NNS
of IN
this DT
fiscal JJ
year NN
, ,
which WDT
ends VBZ
Oct. NNP
31 CD
. .

On IN
Oct. NNP
5 NN
, ,
the DT
company NN
estimated VBD
after-tax JJ
effects NNS
on IN
the DT
year NN
's POS
earnings NNS
would MD
be VB
`` ``
at IN
least JJS
'' ''
$ $
1.3 CD
million CD
. .

Yesterday NN
, ,
the DT
company NN
said VBD
the DT
negative JJ
after-tax JJ
effect NN
on IN
earnings NNS
for IN
the DT
year NN
will MD
be VB
about RB
$ $
3.3 CD
million CD
. .

For IN
the DT
nine CD
months NNS
ended VBD
July NNP
31 CD
, ,
Bank NNP
Building NNP
had VBD
a DT
net JJ
loss NN
of IN
$ $
1 CD
million CD
, ,
on IN
revenue NN
of IN
$ $
66.5 CD
million CD
. .
Bank NNP
Building NNP
, ,
which WDT
expects VBZ
to TO
report VB
a DT
fourth-quarter JJ
loss NN
, ,
said VBD
it PRP
engaged VBD
advisers NNS
to TO
`` ``
explore VB
financial JJ
alternatives NNS
for IN
the DT
company NN
including VBG
the DT
possible JJ
sale NN
of IN
the DT
company NN
or CC
one CD
or CC
more JJR
of IN
its PRP$
units NNS
. .
'' ''

Company NN
auditors NNS
are VBP
continuing VBG
their PRP$
review NN
, ,
and CC
final JJ
restated VBN
figures NNS
are VBP
n't RB
yet RB
available JJ
. .

Bank NNP
Building NNP
earlier RBR
said VBD
the DT
restatement NN
is VBZ
necessitated VBN
by IN
`` ``
certain JJ
errors NNS
in IN
recording NN
receivables NN
and CC
payables NNS
'' ''
at IN
its PRP$
Loughman NNP
Cabinet NNP
division NN
. .

That DT
division NN
's POS
manager NN
has VBZ
been VBN
fired VBN
. .

In IN
American NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Bank NNP
Building NNP
closed VBD
at IN
$ $
4 CD
a DT
share NN
, ,
down RB
62.5 CD
cents NNS
. .

Gen. NNP
Paul NNP
X. NNP
Kelley NNP
, ,
retired VBN
commandant NN
of IN
the DT
U.S. NNP
Marine NNP
Corps NNP
, ,
was VBD
elected VBN
a DT
director NN
of IN
this DT
plastics NNS
, ,
specialty NN
materials NNS
and CC
aerospace NN
concern NN
, ,
succeeding VBG
Jewel NNP
Lafontant NNP
, ,
who WP
resigned VBD
to TO
accept VB
a DT
government NN
position NN
. .

Rep. NNP
Mary NNP
Rose NNP
Oakar NNP
-LRB- (
D. NNP
, ,
Ohio NNP
-RRB- )
at IN
last JJ
week NN
's POS
hearings NNS
on IN
irregularities NNS
in IN
programs NNS
at IN
the DT
Department NNP
of IN
Housing NNP
and CC
Urban NNP
Development NNP
: :

I PRP
do VBP
n't RB
want VB
to TO
feel VB
guilty JJ
representing VBG
my PRP$
constituents NNS
. .

And CC
if IN
I PRP
think VBP
that IN
some DT
people NNS
-LCB- (
on IN
HUD NNP
Secretary NNP
Jack NNP
Kemp NNP
's POS
-RCB- )
staff NN
are VBP
off IN
base NN
in IN
terms NNS
in IN
which WDT
they PRP
're VBP
evaluating VBG
certain JJ
things NNS
affecting VBG
my PRP$
hometown NN
, ,
I PRP
have VBP
to TO
tell VB
you PRP
something NN
-- :
I PRP
'm VBP
not RB
going VBG
to TO
take VB
it PRP
. .

I PRP
think VBP
that IN
I PRP
'm VBP
elected VBN
to TO
represent VB
the DT
people NNS
that WDT
sent VBD
me PRP
here RB
. .

And CC
one CD
of IN
our PRP$
charges NNS
is VBZ
to TO
be VB
an DT
ombudsman NN
for IN
our PRP$
area NN
. .

And CC
if IN
we PRP
're VBP
not RB
ombudsman NN
for IN
our PRP$
area NN
, ,
we PRP
ought MD
to TO
be VB
thrown VBN
out IN
of IN
office NN
. .

On IN
the DT
other JJ
hand NN
, ,
if IN
we PRP
're VBP
asking VBG
for IN
something NN
unreasonable JJ
or CC
unethical JJ
and CC
so RB
on IN
, ,
then RB
that DT
's VBZ
a DT
whole JJ
different JJ
story NN
. .

But CC
if IN
I PRP
feel VBP
that IN
there EX
are VBP
situations NNS
where WRB
I PRP
'm VBP
trying VBG
to TO
get VB
housing NN
for IN
our PRP$
area NN
-- :
whatever WDT
it PRP
happens VBZ
to TO
be VB
-- :
and CC
I PRP
have VBP
to TO
feel VB
that IN
I PRP
ca MD
n't RB
even RB
ask VB
a DT
question NN
, ,
I PRP
've VBP
got VBD
to TO
tell VB
you PRP
, ,
I PRP
think VBP
that DT
's VBZ
outrageous JJ
. .
. .

I PRP
think VBP
these DT
regulations NNS
that WDT
would MD
prohibit VB
well-operated JJ
programs NNS
in IN
areas NNS
across IN
this DT
country NN
would MD
be VB
wrong JJ
to TO
change VB
... :
. .

I PRP
do VBP
n't RB
want VB
to TO
see VB
some DT
guidelines NNS
change VBP
that DT
's VBZ
going VBG
to TO
inhibit VB
my PRP$
city NN
's POS
opportunity NN
to TO
use VB
its PRP$
money NN
. .

The DT
Chicago NNP
Mercantile NNP
Exchange NNP
said VBD
it PRP
fined VBD
Capcom NNP
Futures NNP
Inc. NNP
$ $
500,000 CD
and CC
accepted VBN
its PRP$
withdrawal NN
from IN
membership NN
as IN
part NN
of IN
a DT
settlement NN
of IN
disciplinary JJ
actions NNS
against IN
the DT
firm NN
. .

Capcom NNP
Futures NNS
is VBZ
a DT
Chicago NNP
subsidiary NN
of IN
Capcom NNP
Financial NNP
Services NNP
Ltd. NNP
, ,
a DT
London NNP
financial JJ
firm NN
that WDT
was VBD
implicated VBN
last JJ
year NN
in IN
a DT
scheme NN
to TO
launder VB
drug NN
money NN
. .

The DT
case NN
is VBZ
pending VBG
. .

The DT
firm NN
was VBD
indicted VBN
in IN
Tampa NNP
, ,
Fla. NNP
, ,
on IN
money-laundering NN
charges NNS
. .

In IN
June NNP
, ,
the DT
Chicago NNP
Board NNP
of IN
Trade NNP
said VBD
it PRP
suspended VBD
Capcom NNP
Financial NNP
. .

The DT
Capcom NNP
Futures NNS
unit NN
withdrew VBD
from IN
Board NNP
of IN
Trade NNP
membership NN
voluntarily RB
in IN
August NNP
, ,
a DT
Board NNP
of IN
Trade NNP
spokesman NN
said VBD
. .

Capcom NNP
Futures NNS
, ,
while IN
neither DT
admitting VBG
nor CC
denying VBG
the DT
Merc NNP
charges NNS
, ,
said VBD
in IN
a DT
statement NN
that IN
the DT
Merc NNP
charges NNS
were VBD
`` ``
technical JJ
in IN
nature NN
'' ''
and CC
that IN
`` ``
no DT
customers NNS
were VBD
hurt VBN
'' ''
as IN
a DT
result NN
of IN
the DT
violations NNS
cited VBN
by IN
the DT
Merc NNP
. .

The DT
Merc NNP
alleged VBD
that IN
, ,
among IN
other JJ
things NNS
, ,
from IN
April NNP
1987 CD
through IN
October NNP
1988 CD
Capcom NNP
Futures NNS
failed VBD
to TO
document VB
trades NNS
between IN
Capcom NNP
Futures NNS
and CC
people NNS
or CC
entities NNS
directly RB
or CC
indirectly RB
controlled VBN
by IN
Capcom NNP
Futures NNS
shareholders NNS
. .

Frederick NNP
W. NNP
Lang NNP
, ,
65 CD
years NNS
old JJ
, ,
the DT
founder NN
of IN
this DT
software NN
services NNS
concern VBP
, ,
was VBD
elected VBN
to TO
the DT
new JJ
post NN
of IN
chairman NN
. .

Formerly RB
president NN
and CC
treasurer NN
, ,
Mr. NNP
Lang NNP
remains VBZ
chief JJ
executive JJ
officer NN
. .

Victor NNP
C. NNP
Benda NNP
, ,
58 CD
, ,
formerly RB
executive JJ
vice NN
president NN
, ,
succeeds VBZ
Mr. NNP
Lang NNP
as IN
president NN
and CC
becomes VBZ
chief JJ
operating VBG
officer NN
, ,
a DT
new JJ
post NN
. .

Maurice NNP
Warren NNP
, ,
56-year-old JJ
group NN
managing VBG
director NN
, ,
was VBD
named VBN
chief JJ
executive JJ
officer NN
of IN
this DT
food NN
and CC
agriculture NN
group NN
. .

The DT
post NN
of IN
chief JJ
executive NN
has VBZ
been VBN
vacant JJ
since IN
July NNP
when WRB
Terry NNP
Pryce NNP
, ,
55 NN
, ,
left VBD
the DT
company NN
. .

Money-market NN
mutual JJ
fund NN
assets NNS
grew VBD
at IN
nearly RB
three CD
times NNS
their PRP$
usual JJ
rate NN
in IN
the DT
latest JJS
week NN
, ,
as IN
investors NNS
opted VBD
for IN
safety NN
instead RB
of IN
the DT
stock NN
market NN
. .

Money-fund JJ
assets NNS
soared VBD
$ $
4.5 CD
billion CD
in IN
the DT
week NN
ended VBN
Tuesday NNP
, ,
to TO
a DT
record NN
$ $
348.4 CD
billion CD
, ,
according VBG
to TO
IBC\/Donoghue NN
's POS
Money NNP
Fund NNP
Report NNP
, ,
a DT
Holliston NNP
, ,
Mass.-based JJ
newsletter NN
. .

`` ``
We PRP
were VBD
expecting VBG
it PRP
, ,
following VBG
the DT
fall NN
of IN
the DT
Dow NNP
Friday NNP
, ,
'' ''
said VBD
Brenda NNP
Malizia NNP
Negus NNP
, ,
editor NN
of IN
Money NNP
Fund NNP
Report NNP
. .

`` ``
It PRP
's VBZ
the DT
proverbial JJ
flight NN
to TO
safety VB
. .
'' ''

Despite IN
recent JJ
declines NNS
in IN
interest NN
rates NNS
, ,
money NN
funds NNS
continue VBP
to TO
offer VB
better JJR
yields NNS
than IN
other JJ
comparable JJ
investments NNS
. .

The DT
average JJ
seven-day JJ
compound NN
yield NN
on IN
the DT
400 CD
taxable JJ
funds NNS
tracked VBN
by IN
IBC\/Donoghue NN
's POS
was VBD
8.55 CD
% NN
in IN
the DT
latest JJS
week NN
, ,
down RB
from IN
8.60 CD
% NN
. .

Compound JJ
yields NNS
assume VBP
reinvestment NN
of IN
dividends NNS
and CC
that IN
current JJ
yields NNS
continue VBP
for IN
a DT
year NN
. .

Most JJS
short-term JJ
certificates NNS
of IN
deposit NN
are VBP
yielding VBG
about IN
8 CD
% NN
or CC
less JJR
at IN
major JJ
banks NNS
, ,
and CC
the DT
yields NNS
on IN
Treasury NNP
bills NNS
sold VBN
at IN
Monday NNP
's POS
auction NN
fell VBD
to TO
7.61 CD
% NN
for IN
three CD
months NNS
and CC
7.82 CD
% NN
for IN
six CD
months NNS
. .

Money-fund JJ
assets NNS
have VBP
been VBN
rising VBG
at IN
an DT
average JJ
rate NN
of IN
$ $
1.6 CD
billion CD
a DT
week NN
in IN
recent JJ
months NNS
, ,
Ms. NNP
Negus NNP
said VBD
, ,
reflecting VBG
the DT
relatively RB
high JJ
yields NNS
. .

In IN
the DT
latest JJS
week NN
, ,
funds NNS
open JJ
to TO
institutions NNS
alone RB
grew VBN
by IN
$ $
1.8 CD
billion CD
. .

Some DT
fund NN
managers NNS
say VBP
inflows NNS
could MD
increase VB
in IN
coming VBG
days NNS
as IN
a DT
result NN
of IN
stock NN
selling VBG
in IN
the DT
wake NN
of IN
Friday NNP
's POS
190.58 CD
point NN
drop NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
. .

`` ``
If IN
you PRP
're VBP
selling VBG
equities NNS
, ,
you PRP
do VBP
n't RB
start VB
getting VBG
proceeds NNS
for IN
five CD
to TO
seven CD
days NNS
, ,
'' ''
said VBD
Frank NNP
Rachwalski NNP
, ,
who WP
manages VBZ
the DT
Kemper NNP
Money NNP
Market NNP
Fund NNP
. .

Neal NNP
Litvack NNP
, ,
marketing NN
vice NN
president NN
for IN
Fidelity NNP
Investments NNPS
, ,
said VBD
inflows NNS
Friday NNP
into IN
Fidelity NNP
's POS
Spartan NNP
and CC
Cash NNP
Reserves NNS
money-market JJ
funds NNS
were VBD
about IN
twice RB
normal JJ
levels NNS
, ,
with IN
about IN
half NN
coming VBG
from IN
equity NN
and CC
junk-bond NN
funds NNS
. .

Monday NNP
and CC
Tuesday NNP
`` ``
were VBD
lackluster JJ
in IN
comparison NN
, ,
'' ''
he PRP
said VBD
. .

`` ``
People NNS
are VBP
n't RB
necessarily RB
running VBG
scared VBN
, ,
'' ''
Mr. NNP
Litvack NNP
said VBD
. .

`` ``
They PRP
're VBP
maintaining VBG
their PRP$
attitude NN
toward IN
investing VBG
, ,
which WDT
has VBZ
leaned VBN
toward IN
the DT
conservative JJ
recently RB
. .
'' ''

Money-fund JJ
yields NNS
tend VBP
to TO
lag VB
interestrate NN
trends NNS
as IN
portfolio NN
managers NNS
adjust VBP
the DT
maturities NNS
of IN
their PRP$
investments NNS
-- :
short-term NNP
Treasury NNP
securities NNS
, ,
commercial JJ
paper NN
and CC
the DT
like NN
-- :
to TO
capture VB
the DT
highest JJS
yields NNS
. .

Maturities NNS
usually RB
are VBP
shorter JJR
when WRB
rates NNS
are VBP
rising VBG
and CC
longer RB
when WRB
they PRP
are VBP
falling VBG
. .

The DT
average JJ
maturity NN
of IN
the DT
funds NNS
tracked VBN
by IN
IBC\/Donoghue NN
's POS
remained VBD
at IN
38 CD
days NNS
for IN
the DT
third JJ
consecutive JJ
week NN
. .

It PRP
was VBD
as RB
short JJ
as IN
29 CD
days NNS
at IN
the DT
start NN
of IN
this DT
year NN
, ,
when WRB
rates NNS
were VBD
marching VBG
steadily RB
upward RB
, ,
and CC
hit VBD
42 CD
days NNS
in IN
August NNP
. .

The DT
average JJ
seven-day JJ
simple JJ
yield NN
of IN
the DT
funds NNS
fell VBD
to TO
8.21 CD
% NN
this DT
week NN
from IN
8.26 CD
% NN
. .

The DT
average JJ
30-day JJ
simple JJ
yield NN
was VBD
8.26 CD
% NN
, ,
compared VBN
with IN
8.27 CD
% NN
the DT
week NN
before RB
, ,
and CC
the DT
30-day JJ
compound NN
yield NN
slid VBD
to TO
8.60 CD
% NN
from IN
8.61 CD
% NN
. .

Some DT
funds NNS
are VBP
posting VBG
yields NNS
far RB
higher JJR
than IN
the DT
average NN
. .

The DT
highest JJS
yielding VBG
taxable JJ
fund NN
this DT
week NN
was VBD
Harbor NNP
Money NNP
Market NNP
Fund NNP
, ,
with IN
a DT
seven-day JJ
compound NN
yield NN
of IN
12.75 CD
% NN
. .

That DT
included VBN
capital NN
gains NNS
that WDT
were VBD
passed VBN
along IN
to TO
customers NNS
. .

Among IN
the DT
other JJ
high-yielding JJ
funds NNS
, ,
Fidelity NNP
's POS
Spartan NNP
Fund NNP
had VBD
a DT
seven-day JJ
compound NN
yield NN
of IN
9.33 CD
% NN
in IN
the DT
latest JJS
week NN
. .

The DT
seven-day JJ
compound NN
yield NN
of IN
the DT
Dreyfus NNP
Worldwide NNP
Dollar NNP
Fund NNP
was VBD
9.51 CD
% NN
. .

whose WP$
Della NNP
Femina NNP
McNamee NNP
WCRS NNP
agency NN
created VBD
liar NN
Joe NNP
Isuzu NNP
, ,
among IN
others NNS
-- :
announced VBD
a DT
massive JJ
restructuring NN
that WDT
largely RB
removes VBZ
it PRP
from IN
the DT
advertising NN
business NN
and CC
includes VBZ
selling VBG
the DT
majority NN
of IN
its PRP$
advertising NN
unit NN
to TO
Paris-based JJ
Eurocom NNP
. .

The DT
complex JJ
restructuring NN
, ,
which WDT
was VBD
long RB
expected VBN
, ,
transforms VBZ
London-based NNP
WCRS NNP
from IN
primarily RB
a DT
creator NN
of IN
advertising NN
into IN
one CD
of IN
Europe NNP
's POS
largest JJS
buyers NNS
of IN
advertising NN
time NN
and CC
space NN
. .

It PRP
also RB
creates VBZ
a DT
newly RB
merged VBN
world-wide JJ
ad NN
agency NN
controlled VBN
by IN
Eurocom NNP
and CC
headed VBN
jointly RB
by IN
New NNP
York NNP
ad NN
man NN
Jerry NNP
Della NNP
Femina NNP
and CC
two CD
top JJ
WCRS NNP
executives NNS
. .

The DT
merged VBN
agency NN
's POS
admittedly RB
ambitious JJ
goal NN
: :
to TO
become VB
one CD
of IN
the DT
world NN
's POS
10 CD
largest JJS
agencies NNS
, ,
while IN
attracting VBG
more RBR
multinational JJ
clients NNS
than IN
the DT
agencies NNS
were VBD
able JJ
to TO
attract VB
alone RB
. .

WCRS NNP
's POS
restructuring NN
reflects VBZ
the DT
growing VBG
importance NN
of IN
media NNS
buying VBG
in IN
Europe NNP
, ,
where WRB
the DT
only JJ
way NN
to TO
get VB
a DT
good JJ
price NN
on IN
advertising NN
time NN
and CC
space NN
is VBZ
to TO
buy VB
it PRP
in IN
bulk NN
. .

For IN
Eurocom NNP
, ,
meanwhile RB
, ,
the DT
move NN
gives VBZ
it PRP
a DT
strong JJ
U.S. NNP
foothold NN
in IN
Della NNP
Femina NNP
, ,
and CC
more JJR
than IN
quadruples VBZ
the DT
size NN
of IN
its PRP$
ad NN
agency NN
business NN
world-wide JJ
. .

It PRP
also RB
gives VBZ
the DT
outspoken JJ
Mr. NNP
Della NNP
Femina NNP
-- :
who WP
often RB
generates VBZ
as IN
much JJ
publicity NN
for IN
himself PRP
as IN
for IN
his PRP$
clients NNS
-- :
an DT
international JJ
platform NN
that IN
he PRP
most RBS
certainly RB
wo MD
n't RB
be VB
loath JJ
to TO
use VB
. .

According VBG
to TO
terms NNS
, ,
WCRS NNP
will MD
pay VB
2.02 CD
billion CD
French JJ
francs NNS
-LRB- (
$ $
318.6 CD
million CD
-RRB- )
for IN
the DT
50 CD
% NN
it PRP
does VBZ
n't RB
already RB
own JJ
of IN
Carat NNP
Holding NNP
S.A. NNP
, ,
one CD
of IN
Europe NNP
's POS
largest JJS
media NNS
buyers NNS
. .

Meanwhile RB
, ,
Eurocom NNP
, ,
which WDT
had VBD
held VBN
20 CD
% NN
of IN
WCRS NNP
's POS
ad NN
unit NN
, ,
will MD
pay VB
# #
43.5 CD
million CD
-LRB- (
$ $
68.5 CD
million CD
-RRB- )
to TO
raise VB
its PRP$
stake NN
to TO
60 CD
% NN
. .

That DT
price NN
also RB
covers VBZ
Eurocom NNP
raising VBG
to TO
60 CD
% VB
its PRP$
51 CD
% NN
stake NN
in IN
Europe NNP
's POS
Belier NNP
Group NNP
, ,
a DT
joint JJ
venture NN
ad NN
agency NN
network NN
it PRP
owns VBZ
with IN
WCRS NNP
. .

Eurocom NNP
will MD
also RB
have VB
the DT
right NN
to TO
buy VB
the DT
remaining VBG
40 CD
% NN
of IN
the DT
merged VBN
ad NN
agency NN
group NN
in IN
six CD
years NNS
. .

The DT
transaction NN
places VBZ
the DT
three CD
executives NNS
squarely RB
at IN
the DT
helm NN
of IN
a DT
major JJ
agency NN
with IN
the DT
rather RB
unwieldy JJ
name NN
of IN
Eurocom NNP
WCRS NNP
Della NNP
Femina NNP
Ball NNP
Ltd. NNP
, ,
or CC
EWDB NNP
. .

The DT
merged VBN
agency NN
will MD
include VB
Della NNP
Femina NNP
McNamee NNP
based VBD
in IN
New NNP
York NNP
, ,
Eurocom NNP
's POS
various JJ
agencies NNS
in IN
France NNP
, ,
the DT
Belier NNP
Group NNP
in IN
Europe NNP
and CC
WCRS NNP
's POS
other JJ
advertising NN
and CC
direct JJ
marketing NN
operations NNS
. .

Mr. NNP
Della NNP
Femina NNP
will MD
be VB
joint JJ
chairman NN
with IN
former JJ
WCRS NNP
executive NN
Robin NNP
Wight NNP
. .

Both DT
will MD
report VB
to TO
Tim NNP
Breene NNP
, ,
a DT
former JJ
WCRS NNP
executive NN
who WP
will MD
be VB
chief JJ
executive JJ
officer NN
at IN
the DT
new JJ
agency NN
. .

In IN
an DT
interview NN
in IN
New NNP
York NNP
, ,
Mr. NNP
Breene NNP
, ,
fresh JJ
from IN
a DT
Concorde NNP
flight NN
from IN
Paris NNP
where WRB
executives NNS
had VBD
worked VBN
through IN
most RBS
of IN
the DT
night NN
, ,
outlined VBN
big JJ
plans NNS
for IN
the DT
new JJ
agency NN
. .

`` ``
Our PRP$
goal NN
is VBZ
to TO
develop VB
quite RB
rapidly RB
to TO
a DT
top-10 JJ
position NN
... :
by IN
the DT
end NN
of IN
three CD
years NNS
from IN
now RB
. .

It PRP
implies VBZ
very RB
dramatic JJ
growth NN
, ,
'' ''
he PRP
said VBD
. .

He PRP
added VBD
that IN
Eurocom NNP
and CC
WCRS NNP
had VBD
agreed VBN
to TO
provide VB
a DT
development NN
fund NN
of IN
# #
100 CD
million CD
for IN
acquisitions NNS
. .

The DT
new JJ
agency NN
group NN
is VBZ
already RB
in IN
discussions NNS
about IN
a DT
possible JJ
purchase NN
in IN
Spain NNP
, ,
while IN
Mr. NNP
Breene NNP
said VBD
it PRP
also RB
plans VBZ
to TO
make VB
acquisitions NNS
in IN
Scandinavia NNP
, ,
Germany NNP
and CC
elsewhere RB
. .

Cracking VBG
the DT
top JJ
10 CD
within IN
three CD
years NNS
will MD
be VB
difficult JJ
at IN
best JJS
. .

Della NNP
Femina NNP
had VBD
billings NNS
of IN
just RB
$ $
660 CD
million CD
last JJ
year NN
and CC
ranked VBD
as IN
the DT
U.S. NNP
's POS
24th-largest JJ
ad NN
agency NN
. .

The DT
merged VBN
company NN
that IN
it PRP
now RB
becomes VBZ
part NN
of IN
will MD
have VB
billings NNS
of IN
just RB
more JJR
than IN
$ $
2.6 CD
billion CD
-- :
most RBS
of IN
that DT
in NN
Europe NNP
-- :
bringing VBG
it PRP
to TO
about IN
14th JJ
world-wide JJ
. .

To TO
make VB
it PRP
to TO
top-10 JJ
status NN
, ,
it PRP
would MD
have VB
to TO
leapfrog VB
over IN
such JJ
formidable JJ
forces NNS
as IN
Grey NNP
Advertising NNP
, ,
D'Arcy NNP
Masius NNP
Benton NNP
& CC
Bowles NNP
and CC
Omnicom NNP
's POS
DDB NNP
Needham NNP
. .

The DT
merged VBN
agency NN
's POS
game NN
plan NN
to TO
attract VB
multinational JJ
packaged-goods NNS
advertisers NNS
may MD
prove VB
equally RB
difficult JJ
. .

When WRB
WCRS NNP
created VBD
Della NNP
Femina NNP
McNamee NNP
out IN
of IN
the DT
merger NN
of IN
three CD
smaller JJR
agency NN
units NNS
in IN
1988 CD
, ,
it PRP
said VBD
it PRP
did VBD
so RB
in IN
order NN
to TO
attract VB
larger JJR
clients NNS
, ,
especially RB
packaged-goods NNS
companies NNS
. .

Since IN
then RB
, ,
Della NNP
Femina NNP
won VBD
Pan NNP
Am NNP
as IN
an DT
international JJ
client NN
and CC
also RB
does VBZ
work NN
for IN
a DT
few JJ
packaged-goods NNS
clients NNS
, ,
including VBG
Dow NNP
Chemical NNP
Co. NNP
's POS
Saran NNP
Wrap NNP
. .

But CC
major JJ
packaged-goods NNS
players NNS
of IN
the DT
world NN
-- :
such JJ
as IN
Procter NNP
& CC
Gamble NNP
, ,
Colgate-Palmolive NNP
and CC
Unilever NNP
-- :
have VBP
steadfastly RB
eluded VBN
the DT
agency NN
. .

`` ``
Three CD
of IN
our PRP$
favorite JJ
names NNS
, ,
'' ''
Mr. NNP
Della NNP
Femina NNP
calls VBZ
that DT
roster NN
, ,
adding VBG
hopefully RB
, ,
`` ``
We PRP
're VBP
a DT
much RB
more RBR
attractive JJ
agency NN
to TO
large JJ
multinationals NNS
today NN
than IN
we PRP
were VBD
yesterday NN
. .
'' ''

Still RB
, ,
the DT
restructuring NN
could MD
create VB
one CD
of IN
the DT
most RBS
powerful JJ
alliances NNS
between IN
advertising NN
and CC
media-buying JJ
firms NNS
that IN
Europe NNP
has VBZ
seen VBN
. .

As IN
part NN
of IN
the DT
restructuring NN
, ,
WCRS NNP
and CC
Eurocom NNP
said VBD
they PRP
will MD
look VB
for IN
ways NNS
to TO
combine VB
their PRP$
media NNS
buying VBG
across IN
Europe NNP
. .

What WP
's VBZ
more JJR
, ,
both DT
Eurocom NNP
and CC
brothers NNS
Francis NNP
and CC
Gilbert NNP
Gross NNP
, ,
who WP
founded VBD
Carat NNP
, ,
will MD
acquire VB
14.99 CD
% NN
stakes NNS
in IN
WCRS NNP
Group NNP
, ,
creating VBG
a DT
powerful JJ
link NN
between IN
Eurocom NNP
and CC
Carat NNP
. .

Carat NNP
will MD
receive VB
its PRP$
WCRS NNP
stake NN
as IN
part NN
of IN
payment NN
for IN
the DT
50 CD
% NN
Carat NNP
stake NN
that IN
WCRS NNP
is VBZ
buying VBG
, ,
while IN
Eurocom NNP
said VBD
it PRP
expects VBZ
to TO
pay VB
about IN
# #
32 CD
million CD
for IN
its PRP$
WCRS NNP
stake NN
. .

Mr. NNP
Della NNP
Femina NNP
says VBZ
he PRP
plans VBZ
to TO
remain VB
heavily RB
involved VBN
in IN
the DT
creative JJ
product NN
at IN
the DT
world-wide JJ
agency NN
, ,
serving VBG
as IN
a DT
sort NN
of IN
`` ``
creative JJ
conscience NN
. .
'' ''

Louise NNP
McNamee NNP
, ,
Della NNP
Femina NNP
's POS
president NN
, ,
will MD
continue VB
running VBG
the DT
U.S. NNP
agency NN
day-to-day JJ
. .

They PRP
and CC
other JJ
top JJ
executives NNS
signed VBD
long-term JJ
employment NN
contracts NNS
and CC
Mr. NNP
Della NNP
Femina NNP
will MD
receive VB
an DT
additional JJ
multimillion-dollar JJ
sum NN
, ,
which WDT
some DT
industry NN
executives NNS
pegged VBN
at IN
about RB
$ $
10 CD
million CD
. .

WCRS NNP
Group NNP
, ,
for IN
its PRP$
part NN
, ,
will MD
now RB
be VB
able JJ
to TO
follow VB
its PRP$
longstanding JJ
plan NN
of IN
becoming VBG
`` ``
a DT
holding VBG
company NN
for IN
a DT
series NN
of IN
media-related JJ
businesses NNS
, ,
'' ''
said VBD
Peter NNP
Scott NNP
, ,
the DT
firm NN
's POS
chief JJ
executive NN
. .

In IN
addition NN
to TO
Carat NNP
, ,
WCRS NNP
will MD
hold VB
onto IN
its PRP$
public JJ
relations NNS
, ,
TV NN
programming NN
and CC
other JJ
businesses NNS
. .

WCRS NNP
says VBZ
its PRP$
debt NN
will MD
be VB
cut VBN
to TO
# #
24 CD
million CD
from IN
# #
66 CD
million CD
as IN
a DT
result NN
of IN
the DT
transaction NN
. .

For IN
Carat NNP
, ,
meanwhile RB
, ,
the DT
alliance NN
with IN
Eurocom NNP
and CC
WCRS NNP
is VBZ
intended VBN
to TO
strengthen VB
its PRP$
own JJ
push NN
outside IN
France NNP
. .

Carat NNP
's POS
Gross NNP
brothers NNS
invented VBD
the DT
idea NN
of IN
large-scale JJ
buying NN
of IN
media NNS
space NN
. .

By IN
buying VBG
the DT
space NN
in IN
bulk NN
, ,
they PRP
obtain VBP
discounts NNS
as RB
high JJ
as IN
50 CD
% NN
, ,
which WDT
they PRP
can MD
pass VB
on IN
to TO
customers NNS
. .

They PRP
thus RB
have VBP
won VBN
the DT
French JJ
space-buying NN
business NN
of IN
such JJ
advertising NN
giants NNS
as IN
Coca-Cola NNP
Co. NNP
, ,
Fiat NNP
S.p NNP
. .
A. NNP
, ,
Gillette NNP
and CC
Kodak NNP
. .

But CC
now RB
, ,
other JJ
agencies NNS
are VBP
getting VBG
into IN
the DT
business NN
with IN
their PRP$
own JJ
competing VBG
media-buying JJ
groups NNS
-- :
and CC
Carat NNP
wants VBZ
to TO
expand VB
to TO
the DT
rest NN
of IN
Europe NNP
. .

To TO
help VB
finance VB
the DT
Carat NNP
purchase NN
, ,
WCRS NNP
said VBD
it PRP
plans VBZ
an DT
issue NN
of IN
Euroconvertible JJ
preferred JJ
shares NNS
once RB
the DT
market NN
settles VBZ
down RB
. .

But CC
WCRS NNP
added VBD
that IN
`` ``
in IN
the DT
light NN
of IN
the DT
current JJ
uncertainty NN
in IN
the DT
equity NN
markets NNS
, ,
'' ''
it PRP
has VBZ
arranged VBN
medium-term JJ
debt NN
financing NN
, ,
which WDT
would MD
be VB
underwritten VBN
by IN
Samuel NNP
Montagu NNP
& CC
Co. NNP
Ltd NNP
. .

Earthquake NN
's POS
Damage NN

Tuesday NNP
's POS
earthquake NN
brought VBD
the DT
San NNP
Francisco NNP
ad NN
scene NN
to TO
a DT
screeching VBG
halt NN
yesterday NN
, ,
with IN
only RB
a DT
few JJ
staffers NNS
showing VBG
up IN
at IN
their PRP$
offices NNS
, ,
mainly RB
to TO
survey VB
the DT
damage NN
or CC
to TO
wring VB
their PRP$
hands NNS
about IN
imminent JJ
new-business NN
presentations NNS
. .

While IN
no DT
agencies NNS
reported VBD
injuries NNS
to TO
employees NNS
, ,
the DT
quake NN
damaged VBD
the DT
offices NNS
of IN
J. NNP
Walter NNP
Thompson NNP
, ,
Chiat\/Day\/Mojo NNP
and CC
DDB NNP
Needham NNP
, ,
among IN
others NNS
, ,
spokesmen NNS
for IN
those DT
agencies NNS
said VBD
. .

Staffers NNS
at IN
Thompson NNP
, ,
whose WP$
offices NNS
are VBP
in IN
the DT
ultramodern JJ
Embarcadero NNP
Center NNP
, ,
watched VBD
pictures NNS
drop VBP
from IN
the DT
walls NNS
and CC
then RB
felt VBD
the DT
skyscraper NN
sway NN
seven CD
to TO
eight CD
feet NNS
, ,
according VBG
to TO
a DT
spokeswoman NN
. .

Plaster NNP
fell VBD
and CC
windows NNS
were VBD
broken VBN
at IN
Chiat\/Day\/Mojo NNP
, ,
a DT
spokesman NN
for IN
that DT
agency NN
said VBD
. .

Late JJ
yesterday NN
afternoon NN
, ,
DDB NNP
Needham NNP
executives NNS
were VBD
scrambling VBG
to TO
figure VB
out IN
what WP
to TO
do VB
about IN
a DT
new JJ
business NN
presentation NN
that WDT
had VBD
been VBN
scheduled VBN
for IN
today NN
, ,
a DT
spokesman NN
said VBD
. .

DDB NNP
Needham NNP
's POS
office NN
building NN
may MD
have VB
sustained VBN
structural JJ
damage NN
, ,
the DT
spokesman NN
added VBD
. .

`` ``
All DT
operations NNS
have VBP
stopped VBN
, ,
'' ''
he PRP
said VBD
. .

A DT
number NN
of IN
agencies NNS
, ,
including VBG
Thompson NNP
and CC
Foote NNP
, ,
Cone NNP
& CC
Belding NNP
, ,
said VBD
some DT
employees NNS
who WP
live VBP
outside IN
of IN
San NNP
Francisco NNP
, ,
fearful JJ
that IN
they PRP
would MD
n't RB
be VB
able JJ
to TO
get VB
home NN
, ,
spent VBD
the DT
night NN
at IN
the DT
agency NN
. .

Ad NN
Notes NNS
... :
. .

NEW JJ
ACCOUNT NN
: :

Chesebrough-Pond NNP
's POS
Inc. NNP
, ,
Greenwich NNP
, ,
Conn. NNP
, ,
awarded VBD
its PRP$
Faberge NNP
hair NN
care NN
accounts NNS
to TO
J. NNP
Walter NNP
Thompson NNP
, ,
New NNP
York NNP
. .

Thompson NNP
, ,
a DT
unit NN
of IN
WPP NNP
Group NNP
, ,
will MD
handle VB
Faberge NNP
Organic NNP
shampoo NN
and CC
conditioner NN
and CC
Aqua NNP
Net JJ
hairspray NN
. .

The DT
accounts NNS
, ,
which WDT
billed VBD
about RB
$ $
7 CD
million CD
last JJ
year NN
, ,
according VBG
to TO
Leading VBG
National NNP
Advertisers NNS
, ,
were VBD
previously RB
handled VBN
at IN
Bozell NNP
, ,
New NNP
York NNP
. .

WHO WP
'S VBZ
NEWS NN
: :

William NNP
Morrissey NNP
, ,
44 CD
, ,
was VBD
named VBN
executive JJ
vice NN
president NN
, ,
world-wide JJ
director NN
of IN
McCann NNP
Direct JJ
, ,
the DT
direct JJ
marketing NN
unit NN
of IN
Interpublic NNP
Group NNP
's POS
McCann-Erickson NNP
agency NN
. .

He PRP
had VBD
been VBN
president NN
and CC
chief JJ
operating VBG
officer NN
of IN
Ogilvy NNP
& CC
Mather NNP
Direct JJ
. .

BOZELL NNP
: :

Los NNP
Angeles NNP
will MD
be VB
the DT
site NN
of IN
a DT
new JJ
entertainment NN
division NN
for IN
the DT
ad NN
agency NN
. .

The DT
division NN
will MD
be VB
headed VBN
by IN
Dick NNP
Porter NNP
, ,
who WP
returns VBZ
to TO
Bozell NNP
after IN
being VBG
vice NN
president NN
of IN
media NNS
at IN
MGM NNP
. .

AC&R NNP
ADVERTISING NNP
: :

The DT
agency NN
's POS
three CD
California NNP
offices NNS
, ,
previously RB
called VBN
AC&R\/CCL NNP
Advertising NNP
, ,
will MD
now RB
be VB
called VBN
AC&R NNP
Advertising NNP
to TO
match VB
the DT
name NN
of IN
its PRP$
New NNP
York NNP
office NN
. .

AC&R NNP
Advertising NNP
is VBZ
a DT
unit NN
of IN
Saatchi NNP
& CC
Saatchi NNP
Co NNP
. .

NEW JJ
BEER NN
: :

Sibra NNP
Products NNP
Inc. NNP
, ,
Greenwich NNP
, ,
Conn. NNP
, ,
awarded VBD
its PRP$
Cardinal NNP
Amber NNP
Light NNP
beer NN
account NN
to TO
Heidelberg NNP
& CC
Associates NNPS
, ,
New NNP
York NNP
. .

Budget NNP
is VBZ
set VBN
at IN
$ $
1.5 CD
million CD
. .

The DT
new JJ
beer NN
, ,
introduced VBD
this DT
week NN
at IN
a DT
liquor NN
industry NN
convention NN
, ,
is VBZ
imported VBN
from IN
Switzerland NNP
's POS
Cardinal NNP
brewery NN
. .

Heidelberg NNP
's POS
first JJ
ads NNS
for IN
the DT
brand NN
, ,
which WDT
Sibra NNP
says VBZ
will MD
compete VB
with IN
imported VBN
light NN
beer NN
leader NN
Amstel NNP
Light NNP
, ,
feature NN
the DT
line NN
`` ``
The DT
best JJS
tasting VBG
light NN
beer NN
you PRP
've VBP
ever RB
seen VBN
. .

Diamond-Star NNP
Motors NNPS
Corp. NNP
, ,
a DT
joint JJ
venture NN
of IN
Chrysler NNP
Corp. NNP
and CC
Mitsubishi NNP
Motors NNPS
Corp. NNP
said VBD
it PRP
will MD
begin VB
shipping VBG
Mitsubishi NNP
Eclipse NNP
cars NNS
to TO
Japan NNP
next JJ
week NN
, ,
emulating VBG
other JJ
Japanese JJ
auto NN
ventures NNS
shipping VBG
U.S.-built JJ
vehicles NNS
back RB
to TO
Japan NNP
. .

Diamond-Star NNP
said VBD
it PRP
will MD
export VB
about IN
1,500 CD
Eclipse NNP
cars NNS
to TO
Japan NNP
by IN
year NN
's POS
end NN
. .

Honda NNP
Motor NNP
Co. NNP
, ,
the DT
first JJ
Japanese JJ
auto NN
maker NN
to TO
ship VB
cars NNS
to TO
Japan NNP
from IN
the DT
U.S. NNP
, ,
is VBZ
now RB
exporting VBG
more JJR
than IN
5,000 CD
Accord NNP
Coupes NNP
a DT
year NN
from IN
its PRP$
Marysville NNP
, ,
Ohio NNP
, ,
factory NN
. .

One CD
of IN
the DT
most RBS
remarkable JJ
features NNS
of IN
the DT
forced VBN
marches NNS
of IN
the DT
ethnic JJ
Turks NNPS
out IN
of IN
Bulgaria NNP
over IN
the DT
past JJ
five CD
months NNS
has VBZ
been VBN
the DT
lack NN
of IN
international JJ
attention NN
. .

The DT
deportation NN
of IN
more JJR
than IN
315,000 CD
men NNS
, ,
women NNS
and CC
children NNS
by IN
the DT
Bulgarian JJ
regime NN
adds VBZ
up IN
to TO
one CD
of IN
the DT
largest JJS
migrations NNS
seen VBN
in IN
the DT
postwar JJ
years NNS
. .

Yet RB
some DT
people NNS
are VBP
advancing VBG
a DT
chilling VBG
casuistry NN
: :
that IN
what WP
we PRP
are VBP
seeing VBG
is VBZ
somehow RB
the DT
understandable JJ
result NN
of IN
the DT
historical JJ
sins NNS
committed VBN
by IN
the DT
Turks NNPS
in IN
the DT
16th JJ
century NN
. .

Today NN
's POS
Turks NNPS
in IN
Bulgaria NNP
, ,
in IN
other JJ
words NNS
, ,
deserve VBP
what WP
is VBZ
coming VBG
to TO
them PRP
four CD
centuries NNS
later RB
. .

As IN
if IN
this DT
were VBD
n't RB
enough RB
, ,
the DT
Senate NNP
Judiciary NNP
Committee NNP
is VBZ
getting VBG
into IN
the DT
act NN
. .

On IN
Tuesday NNP
it PRP
approved VBD
Senator NNP
Bob NNP
Dole NNP
's POS
proposed VBN
commemorative JJ
resolution NN
designating VBG
April NNP
24 CD
, ,
1990 CD
, ,
as IN
the DT
`` ``
National NNP
Day NNP
of IN
Remembrance NN
of IN
the DT
75th CD
Anniversary NNP
of IN
the DT
Armenian JJ
Genocide NN
of IN
1915-1923 CD
, ,
'' ''
suffered VBD
at IN
the DT
hands NNS
of IN
the DT
warring VBG
Ottoman NNP
Empire NNP
. .

There EX
can MD
be VB
no DT
quibbling VBG
that IN
the DT
Armenians NNPS
endured VBD
terrible JJ
suffering NN
, ,
but CC
one CD
has VBZ
to TO
wonder VB
what WP
possible JJ
good JJ
such JJ
a DT
resolution NN
will MD
achieve VB
. .

It PRP
puts VBZ
great JJ
strain NN
on IN
a DT
longstanding JJ
U.S. NNP
friendship NN
with IN
Turkey NNP
, ,
a DT
country NN
that WDT
has VBZ
been VBN
one CD
of IN
America NNP
's POS
strongest JJS
allies NNS
in IN
NATO NNP
. .

The DT
resolution NN
also RB
comes VBZ
at IN
a DT
time NN
when WRB
Turkey NNP
has VBZ
been VBN
seeking VBG
help VB
from IN
the DT
United NNP
States NNPS
in IN
resolving VBG
its PRP$
Bulgarian JJ
emigration NN
controversy NN
and CC
pursuing VBG
democratic JJ
reforms NNS
that WDT
may MD
lead VB
to TO
membership NN
in IN
the DT
European NNP
Community NNP
. .

Turkey NNP
has VBZ
been VBN
fighting VBG
its PRP$
past JJ
for IN
years NNS
, ,
and CC
thus RB
far RB
has VBZ
been VBN
only RB
partially RB
successful JJ
. .

Must MD
it PRP
now RB
accept VB
that IN
one CD
of IN
its PRP$
strongest JJS
allies NNS
blames VBZ
it PRP
for IN
the DT
genocide NN
of IN
another DT
people NNS
? .

Such JJ
sentiment NN
only RB
encourages VBZ
the DT
adverse JJ
feelings NNS
toward IN
Turkey NNP
that WDT
surfaced VBD
when WRB
Turkey NNP
asked VBD
for IN
assistance NN
in IN
dealing VBG
with IN
its PRP$
Bulgarian JJ
emigration NN
crisis NN
. .

Mr. NNP
Dole NNP
's POS
odd JJ
effort NN
notwithstanding IN
, ,
most RBS
of IN
Turkey NNP
's POS
political JJ
problems NNS
lie VBP
with IN
the DT
Europeans NNPS
. .

Part NN
of IN
the DT
problem NN
some DT
Europeans NNPS
have VBP
with IN
Turkey NNP
seems VBZ
to TO
stem VB
from IN
its PRP$
location NN
-- :
Turkey NNP
is VBZ
n't RB
really RB
part NN
of IN
Europe NNP
. .

Why WRB
, ,
they PRP
wonder VBP
, ,
should MD
it PRP
belong VB
to TO
the DT
EC NNP
? .

Another DT
anti-Turkish JJ
hook NN
is VBZ
the DT
Islamic NNP
faith NN
of IN
the DT
majority NN
of IN
the DT
Turkish JJ
people NNS
: :
Turkey NNP
, ,
we PRP
are VBP
told VBN
, ,
is VBZ
not RB
a DT
Christian NNP
nation NN
; :
its PRP$
people NNS
simply RB
wo MD
n't RB
fit VB
in IN
with IN
the DT
Western JJ
European JJ
Judeo-Christian JJ
tradition NN
. .

It PRP
's VBZ
when WRB
these DT
rationalizations NNS
fall VBP
on IN
deaf JJ
ears NNS
that IN
the DT
old JJ
standby NN
of IN
retribution NN
for IN
treatment NN
at IN
the DT
hands NNS
of IN
the DT
Ottoman NNP
Empire NNP
comes VBZ
to TO
the DT
fore NN
. .

No DT
one CD
has VBZ
to TO
accept VB
the DT
sins NNS
of IN
the DT
Ottoman NNP
Empire NNP
to TO
reject VB
that DT
argument NN
. .

Turkey NNP
in IN
any DT
event NN
is VBZ
long JJ
past JJ
it PRP
. .

The DT
country NN
has VBZ
in IN
recent JJ
years NNS
accepted VBN
more JJR
than IN
500,000 CD
refugees NNS
from IN
at IN
least JJS
four CD
bordering VBG
nations NNS
. .

Kurds NNPS
, ,
suffering VBG
what WP
many JJ
people NNS
consider VBP
to TO
be VB
a DT
current JJ
extermination NN
campaign NN
at IN
the DT
hands NNS
of IN
Syria NNP
, ,
Iran NNP
and CC
Iraq NNP
have VBP
inundated VBN
eastern JJ
Turkey NNP
. .

Now RB
it PRP
is VBZ
their PRP$
fellow NN
Turks NNPS
arriving VBG
as IN
refugees NNS
from IN
Bulgaria NNP
. .

The DT
Turkish JJ
refugee NN
tragedy NN
and CC
the DT
ongoing JJ
crisis NN
can MD
not RB
be VB
ignored VBN
and CC
shuttled VBD
off IN
to TO
that IN
notorious JJ
dustbin NN
of IN
history NN
that WDT
has VBZ
become VBN
so RB
convenient JJ
recently RB
. .

Surely RB
, ,
the DT
past JJ
suffering NN
of IN
any DT
people NNS
at IN
any DT
time NN
can MD
not RB
be VB
simply RB
filed VBN
away RB
and CC
forgotten VBN
. .

But CC
what WP
the DT
Senate NNP
Judiciary NNP
Committee NNP
has VBZ
done VBN
in IN
supporting VBG
the DT
strongly RB
worded VBN
Armenian JJ
resolution NN
achieves VBZ
no DT
useful JJ
end NN
; :
it PRP
merely RB
produces VBZ
more JJR
controversy NN
and CC
embittered VBN
memories NNS
. .

Congress NNP
has VBZ
enough JJ
difficulty NN
dealing VBG
with IN
the DT
realities NNS
of IN
the DT
world NN
as IN
it PRP
currently RB
exists VBZ
. .

Bulgaria NNP
's POS
government NN
has VBZ
been VBN
behaving VBG
beyond IN
the DT
pale NN
for IN
months NNS
, ,
and CC
the DT
U.S. NNP
does VBZ
its PRP$
values NNS
no DT
credit NN
by IN
ignoring VBG
that IN
while IN
casting VBG
its PRP$
votes NNS
into IN
the DT
past NN
. .

Many JJ
in IN
Washington NNP
say VBP
President NNP
Bush NNP
will MD
have VB
to TO
raise VB
taxes NNS
to TO
pay VB
for IN
his PRP$
war NN
on IN
drugs NNS
. .

We PRP
have VBP
a DT
better JJR
idea NN
: :
Dismantle VB
HUD NNP
to TO
pay VB
for IN
the DT
war NN
on IN
drugs NNS
. .

Housing NNP
and CC
Urban NNP
Development NNP
's POS
budget NN
is VBZ
$ $
17 CD
billion CD
. .

From IN
what WP
we PRP
and CC
the DT
nation NN
have VBP
been VBN
reading NN
, ,
the DT
money NN
is VBZ
n't RB
being VBG
spent VBN
very RB
well RB
. .

The DT
single JJ
most RBS
important JJ
contribution NN
the DT
government NN
could MD
make VB
now RB
to TO
help VB
the DT
poor NN
is VBZ
to TO
get VB
the DT
specter NN
of IN
drugs NNS
out IN
of IN
their PRP$
neighborhoods NNS
. .

If IN
that DT
takes VBZ
money NN
, ,
take VB
it PRP
away RB
from IN
this DT
discredited VBN
federal JJ
department NN
. .

But CC
of IN
course NN
the DT
Democrats NNPS
pillorying VBG
HUD NNP
in IN
hearings NNS
and CC
in IN
the DT
press NN
have VBP
no DT
such JJ
solution NN
in IN
mind NN
. .

Instead RB
, ,
they PRP
're VBP
scrambling VBG
to TO
protect VB
the DT
very JJ
programs NNS
at IN
the DT
heart NN
of IN
the DT
HUD NNP
scandal NN
. .

This DT
month NN
, ,
HUD NNP
Secretary NNP
Jack NNP
Kemp NNP
unveiled VBD
a DT
series NN
of IN
proposed VBN
reforms NNS
to TO
improve VB
management NN
at IN
HUD NNP
. .

No DT
doubt NN
many NN
of IN
his PRP$
ideas NNS
are VBP
worthy JJ
, ,
but CC
ultimately RB
he PRP
is VBZ
proposing VBG
to TO
make VB
fundamentally RB
flawed JJ
programs NNS
work VBP
slightly RB
more RBR
fairly RB
and CC
efficiently RB
. .

Congress NNP
is VBZ
unlikely JJ
to TO
go VB
even RB
that DT
far RB
. .

Last JJ
week NN
, ,
Secretary NNP
Kemp NNP
ran VBD
into IN
a DT
buzzsaw NN
of IN
criticism NN
from IN
House NNP
Banking NNP
Committee NNP
members NNS
. .

They PRP
were VBD
appalled VBN
, ,
for IN
instance NN
, ,
that IN
he PRP
wanted VBD
to TO
target VB
more JJR
of IN
the DT
$ $
3 CD
billion CD
Community NNP
Development NNP
Block NNP
Grant NNP
-LRB- (
CDBG NNP
-RRB- )
program NN
to TO
low-income JJ
projects NNS
and CC
zero CD
out RP
the IN
notorious JJ
`` ``
discretionary JJ
'' ''
funds NNS
that WDT
have VBP
allowed VBN
HUD NNP
officials NNS
to TO
steer VB
contracts NNS
to TO
political JJ
cronies NNS
. .

These DT
development NN
grants NNS
mainly RB
enrich VBP
developers NNS
who WP
want VBP
to TO
put VB
up IN
shopping NN
centers NNS
and CC
parking NN
garages NNS
. .

They PRP
also RB
give VBP
those DT
in NN
Congress NNP
political JJ
credit NN
for IN
bringing VBG
home NN
the DT
pork NN
, ,
and CC
so IN
they PRP
are VBP
popular JJ
with IN
such JJ
Members NNS
as IN
Mary NNP
Rose NNP
Oakar NNP
. .

Rep. NNP
Oakar NNP
, ,
a DT
Democrat NNP
from IN
Cleveland NNP
, ,
wants VBZ
a DT
$ $
6.9 CD
million CD
grant NN
so RB
Cleveland NNP
can MD
build VB
an DT
18-story NNP
Rock NNP
and CC
Roll NNP
Hall NNP
of IN
Fame NNP
. .

She PRP
says VBZ
it PRP
'd MD
create VB
600 CD
jobs NNS
and CC
bring VB
Cleveland NNP
tourist NN
revenue NN
. .

HUD NNP
says VBZ
the DT
project NN
does VBZ
n't RB
qualify VB
, ,
and CC
Mr. NNP
Kemp NNP
says VBZ
that DT
rock NN
'n' NN
roll NN
musicians NNS
and CC
the DT
music NN
industry NN
ought MD
to TO
put VB
up IN
the DT
money NN
. .

At IN
the DT
hearing NN
, ,
Rep. NNP
Oakar NNP
started VBD
wailing VBG
about IN
`` ``
phoney JJ
baloney NN
regulations NNS
'' ''
that WDT
would MD
stand VB
between IN
her PRP$
and CC
`` ``
housing NN
for IN
downtown NN
Cleveland NNP
. .
'' ''

Rep. NNP
Chalmers NNP
Wylie NNP
, ,
an DT
Ohio NNP
Republican NNP
, ,
rallied VBD
to TO
the DT
cause NN
: :
`` ``
I PRP
think VBP
the DT
gentlelady NN
is VBZ
making VBG
an DT
important JJ
statement NN
. .

The DT
implication NN
that IN
if IN
a DT
congressman NN
calls VBZ
about IN
a DT
project NN
in IN
his PRP$
district NN
there EX
's VBZ
something NN
wrong JJ
, ,
I PRP
think VBP
is VBZ
most RBS
unfortunate JJ
. .
'' ''

We PRP
're VBP
sure JJ
some DT
theologian NN
can MD
explain VB
the DT
difference NN
between IN
what WP
the DT
Republican NNP
consultants NNS
have VBP
been VBN
doing VBG
with IN
HUD NNP
and CC
what WP
these DT
gentleladies NNS
and CC
gentlemen NNS
want VBP
to TO
do VB
with IN
HUD NNP
. .

Our PRP$
view NN
is VBZ
that IN
given VBN
Congress NNP
's POS
attitude NN
toward IN
HUD NNP
, ,
the DT
place NN
probably RB
is VBZ
beyond IN
reform NN
. .

For IN
more JJR
than IN
50 CD
years NNS
the DT
federal JJ
government NN
has VBZ
tried VBN
various JJ
ways NNS
to TO
provide VB
housing NN
for IN
the DT
poor JJ
and CC
revive VB
cities NNS
. .
In IN
the DT
process NN
HUD NNP
has VBZ
wasted VBN
untold JJ
billions NNS
, ,
created VBN
slums NNS
and CC
invited VBN
corruption NN
. .

Much RB
of IN
HUD NNP
's POS
spending NN
actually RB
is VBZ
disguised VBN
welfare NN
for IN
developers NNS
or CC
the DT
middle NN
class NN
. .

That DT
includes VBZ
the DT
CDBG NNP
funds NNS
and CC
the DT
Federal NNP
Housing NNP
Administration NNP
, ,
which WDT
loans VBZ
out RP
money NN
for IN
private JJ
home NN
mortgages NNS
and CC
has VBZ
just RB
been VBN
discovered VBN
to TO
be VB
$ $
4 CD
billion CD
in IN
the DT
hole NN
. .

Selling VBG
the DT
FHA NNP
's POS
loan NN
portfolio NN
to TO
the DT
highest JJS
bidder NN
would MD
save VB
the DT
taxpayers NNS
untold JJ
billions NNS
in IN
future NN
losses NNS
. .

Some DT
HUD NNP
money NN
actually RB
does VBZ
trickle NN
down RB
to TO
the DT
poor NN
, ,
and CC
zeroing VBG
out RP
housing NN
middlemen NNS
would MD
free VB
up IN
more JJR
money NN
for IN
public JJ
housing NN
tenants NNS
to TO
manage VB
and CC
even RB
own JJ
their PRP$
units NNS
. .

The DT
rest NN
ought MD
to TO
be VB
used VBN
to TO
clean VB
out RP
drugs NNS
from IN
the DT
neighbhorhoods NNS
. .

Rival JJ
gangs NNS
have VBP
turned VBN
cities NNS
into IN
combat NN
zones NNS
. .

Even RB
suburban JJ
Prince NNP
George NNP
's POS
County NNP
, ,
Md. NNP
, ,
reported VBD
last JJ
week NN
there EX
have VBP
been VBN
a DT
record NN
96 CD
killings NNS
there EX
this DT
year NN
, ,
most RBS
of IN
them PRP
drug-related JJ
. .

Innocent JJ
bystanders NNS
often RB
are VBP
the DT
victims NNS
. .

A DT
man NN
in IN
a DT
wheelchair NN
was VBD
gunned VBN
down RB
in IN
the DT
crossfire NN
of IN
a DT
Miami NNP
drug NN
battle NN
. .

A DT
three-year-old JJ
Brooklyn NNP
boy NN
was VBD
used VBN
as IN
a DT
shield NN
by IN
a DT
drug NN
dealer NN
. .

Decent JJ
life NN
in IN
the DT
inner JJ
cities NNS
wo MD
n't RB
be VB
restored VBN
unless IN
the DT
government NN
reclaims VBZ
the DT
streets NNS
from IN
the DT
drug NN
gangs NNS
. .

Until IN
then RB
, ,
the DT
billions NNS
HUD NNP
spends VBZ
on IN
inner-city JJ
housing NN
simply RB
is VBZ
wasted VBN
. .

It PRP
's VBZ
still RB
unclear JJ
whether IN
Secretary NNP
Kemp NNP
wants VBZ
to TO
completely RB
overhaul NN
the DT
engine NN
room NN
at IN
HUD NNP
or CC
just RB
tighten VB
a DT
few JJ
screws NNS
here RB
and CC
there RB
. .

No DT
doubt NN
he PRP
believes VBZ
the DT
place NN
can MD
be VB
salvaged VBN
. .

Having VBG
seen VBN
the DT
hypocrisy NN
with IN
which WDT
Congress NNP
has VBZ
addressed VBN
the DT
HUD NNP
scandals NNS
, ,
we PRP
disagree VBP
. .

It PRP
's VBZ
time NN
to TO
scrap VB
the DT
politically RB
infested VBN
spending NN
machine NN
HUD NNP
has VBZ
become VBN
and CC
channel VB
the DT
resources NNS
into IN
the DT
drug NN
war NN
. .

Randy NNP
Delchamps NNP
was VBD
named VBN
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
this DT
grocery NN
chain NN
. .

Mr. NNP
Delchamps NNP
, ,
46 CD
years NNS
old JJ
, ,
succeeds VBZ
A.F. NNP
Delchamps NNP
Jr. NNP
, ,
who WP
died VBD
in IN
a DT
plane NN
crash NN
on IN
Sunday NNP
at IN
the DT
age NN
of IN
58 CD
. .

Randy NNP
Delchamps NNP
retains VBZ
his PRP$
position NN
as IN
president NN
. .

Natural JJ
upheavals NNS
, ,
and CC
most RBS
particularly RB
earthquakes NNS
, ,
are VBP
not RB
only RB
horrible JJ
realities NNS
in IN
and CC
of IN
themselves PRP
, ,
but CC
also RB
symbols NNS
through IN
which WDT
the DT
state NN
of IN
a DT
society NN
can MD
be VB
construed VBN
. .

The DT
rubble NN
after IN
the DT
Armenian JJ
earthquake NN
a DT
year NN
ago RB
disclosed VBD
, ,
quite RB
literally RB
, ,
a DT
city NN
whose WP$
larger JJR
structures NNS
had VBD
been VBN
built VBN
with IN
sand NN
. .

The DT
extent NN
of IN
the DT
disaster NN
stemmed VBD
from IN
years NNS
of IN
chicanery NN
and CC
bureaucratic JJ
indifference NN
. .

The DT
larger RBR
parallel JJ
after IN
the DT
earthquake NN
centered VBN
south RB
of IN
San NNP
Francisco NNP
is VBZ
surely RB
with IN
the DT
state NN
of IN
the DT
U.S. NNP
economy NN
. .

Did VBD
the DT
stock-market NN
tremors NNS
of IN
Friday NNP
, ,
Oct. NNP
13 CD
, ,
presage VB
larger JJR
fragility NN
, ,
far RB
greater JJR
upheavals NNS
? .

Are VBP
the DT
engineering NN
and CC
architecture NN
of IN
the DT
economy NN
as RB
vulnerable JJ
as IN
the DT
spans NNS
of IN
the DT
Bay NNP
Bridge NNP
? .

The DT
eerie JJ
complacency NN
of IN
the DT
Reagan-Bush JJ
era NN
has VBZ
produced VBN
Panglossian JJ
paeans NNS
about IN
the DT
present JJ
perfection NN
of IN
U.S. NNP
economic JJ
and CC
social JJ
arrangements NNS
. .

A DT
licensed VBN
government NN
intellectual JJ
, ,
Francis NNP
Fukuyama NNP
, ,
recently RB
announced VBD
in IN
The DT
National NNP
Interest NN
that DT
history NN
is VBZ
, ,
so RB
to TO
speak VB
, ,
at IN
an DT
end NN
since IN
the DT
course NN
of IN
human JJ
progress NN
has VBZ
now RB
culminated VBN
in IN
the DT
glorious JJ
full JJ
stop NN
of IN
American JJ
civilization NN
. .

His PRP$
observations NNS
were VBD
taken VBN
seriously RB
. .
But CC
we PRP
are VBP
, ,
in IN
reality NN
, ,
witnessing VBG
the DT
continuing VBG
decline NN
of IN
the DT
political JJ
economy NN
of IN
capitalism NN
: :
not RB
so RB
much JJ
the DT
end NN
of IN
history NN
but CC
the DT
history NN
of IN
the DT
end NN
. .

The DT
financial JJ
equivalent NN
of IN
the DT
sand NN
used VBN
by IN
those DT
Armenian JJ
contractors NNS
is VBZ
junk NN
bonds NNS
and CC
the DT
leveraged JJ
buy-outs NNS
associated VBN
with IN
them PRP
. .

Builders NNS
get VB
away RB
with IN
using VBG
sand NN
and CC
financiers NNS
junk NN
when WRB
society NN
decides VBZ
it PRP
's VBZ
okay JJ
, ,
necessary JJ
even RB
, ,
to TO
look VB
the DT
other JJ
way NN
. .

And CC
by IN
the DT
early JJ
1980s CD
U.S. NNP
capitalists NNS
had VBD
ample JJ
reason NN
to TO
welcome VB
junk NN
bonds NNS
, ,
to TO
look VB
the DT
other JJ
way NN
. .

By IN
that DT
time NN
they PRP
found VBD
extremely RB
low JJ
profit NN
rates NNS
from IN
non-financial JJ
corporate JJ
investment NN
. .

Government NN
statistics NNS
in IN
fact NN
show NN
that IN
the DT
profit NN
rate NN
-- :
net JJ
pretax JJ
profits NNS
divided VBN
by IN
capital NN
stock NN
-- :
peaked VBD
in IN
1965 CD
at IN
17.2 CD
% NN
. .

That DT
same JJ
calculation NN
saw VBD
profit NN
rates NNS
fall VBP
to TO
4.6 CD
% NN
in IN
the DT
recession NN
year NN
1982 CD
and CC
the DT
supposed VBN
miracle NN
that WDT
followed VBD
has VBZ
seen VBN
the DT
profit NN
rate NN
rise NN
only RB
to TO
8.1 CD
% NN
in IN
1986 CD
and CC
8 CD
% NN
in IN
1987 CD
. .

Corresponding VBG
to TO
the DT
fall NN
in IN
profit NN
rates NNS
was VBD
-- :
in IN
the DT
early JJ
1980s CD
-- :
the DT
drop NN
in IN
the DT
number NN
arrived VBD
at IN
if IN
you PRP
divide VBP
the DT
market NN
value NN
of IN
firms NNS
by IN
the DT
replacement NN
costs NNS
of IN
their PRP$
assets NNS
, ,
the DT
famous JJ
Q NN
ratio NN
associated VBN
with IN
Prof. NNP
James NNP
Tobin NNP
. .

In IN
theory NN
, ,
the DT
value NN
attached VBN
to TO
a DT
firm NN
by IN
the DT
market NN
and CC
the DT
cost NN
of IN
replacing VBG
its PRP$
assets NNS
should MD
be VB
the DT
same JJ
. .

But CC
of IN
course NN
the DT
market NN
could MD
decide VB
that IN
the DT
firm NN
's POS
capital NN
stock NN
-- :
its PRP$
assets NNS
-- :
means VBZ
nothing NN
if IN
the DT
firm NN
is VBZ
not RB
producing VBG
profits NNS
. .

This DT
is VBZ
indeed RB
what WP
the DT
market NN
decided VBD
. .
By IN
1982 CD
the DT
ratio NN
was VBD
43.5 CD
% NN
, ,
meaning NN
that IN
the DT
market NN
was VBD
valuing VBG
every DT
dollar NN
's POS
worth NN
of IN
the DT
average JJ
firm NN
's POS
assets NNS
at IN
43 CD
cents NNS
. .

From IN
the DT
history NN
of IN
capitalism NN
we PRP
can MD
take VB
it PRP
as IN
a DT
sound NN
bet NN
that IN
if IN
it PRP
takes VBZ
only RB
43 CD
cents NNS
to TO
buy VB
a DT
dollar NN
's POS
worth NN
of IN
a DT
firm NN
's POS
capital NN
stock NN
, ,
an DT
alert JJ
entrepreneur NN
wo MD
n't RB
look VB
the DT
other JJ
way NN
. .

His PRP$
assumption NN
is VBZ
that IN
the DT
underlying VBG
profitability NN
rate NN
will MD
go VB
up IN
and CC
the DT
capital NN
assets NNS
he PRP
bought VBD
on IN
the DT
cheap JJ
will MD
soon RB
be VB
producing VBG
profits NNS
, ,
thus RB
restoring VBG
the DT
market NN
's POS
faith NN
in IN
them PRP
. .

Hence RB
the DT
LBO NNP
craze NN
. .

But CC
here RB
is VBZ
where WRB
the DT
entrepreneur NN
made VBD
a DT
very RB
risky JJ
bet NN
, ,
and CC
where WRB
society NN
was VBD
maybe RB
foolish JJ
to TO
look VB
the DT
other JJ
way NN
. .

The DT
profit NN
rate NN
is VBZ
still RB
low JJ
and CC
the DT
Q NN
ratio NN
was VBD
only RB
65 CD
% NN
in IN
1987 CD
and CC
68.9 CD
% NN
in IN
1988 CD
. .

Result NN
: :
a DT
landscape NN
littered VBN
with IN
lemons NNS
, ,
huge JJ
debt NN
burdens NNS
crushing VBG
down RB
upon IN
the DT
arch NN
and CC
spans NNS
of IN
corporate JJ
America NNP
. .

The DT
mounting VBG
risks NNS
did VBD
not RB
go VB
unobserved JJ
, ,
even RB
in IN
the DT
mid-1980s NNS
. .

But CC
there EX
were VBD
enough JJ
promoters NNS
announcing VBG
the DT
end NN
of IN
history NN
-LRB- (
in IN
this DT
case NN
suspension NN
of IN
normal JJ
laws NNS
of IN
economic JJ
gravity NN
-RRB- )
for IN
society NN
to TO
continue VB
shielding VBG
its PRP$
eyes NNS
. .

Mainstream NN
economists NNS
and CC
commentators NNS
, ,
craning VBG
their PRP$
necks NNS
up IN
at IN
the DT
great JJ
pyramids NNS
of IN
junk NN
financing NN
, ,
swiveling VBG
their PRP$
heads NNS
to TO
watch VB
the DT
avalanche NN
of IN
leveraged JJ
buy-outs NNS
, ,
claimed VBD
the DT
end NN
result NN
would MD
be VB
a DT
leaner JJR
, ,
meaner JJR
corporate JJ
America NNP
, ,
with IN
soaring VBG
productivity NN
and CC
profits NNS
and CC
the DT
weaker RBR
gone VBN
to TO
the DT
wall NN
. .

But CC
this DT
is VBZ
not RB
where WRB
the DT
rewards NNS
of IN
junk NN
financing NN
were VBD
found VBN
. .

The DT
beneficiaries NNS
were VBD
those DT
financiers NNS
whose WP$
icon NN
was VBD
the DT
topic NN
figure NN
of IN
'80s NNS
capitalism NN
, ,
Michael NNP
Milken NNP
's POS
$ $
517 CD
million CD
salary NN
in IN
one CD
year NN
. .

Left-stream JJ
economists NNS
I PRP
associate JJ
with IN
-- :
fellows NNS
in IN
the DT
Union NNP
of IN
Radical NNP
Political JJ
Economists NNS
, ,
most RBS
particularly RB
Robert NNP
Pollin NNP
of IN
the DT
economics NNS
faculty NN
at IN
the DT
University NNP
of IN
California NNP
at IN
Riverside NNP
-- :
were VBD
not RB
hypnotized VBN
in IN
the DT
manner NN
of IN
their PRP$
pliant JJ
colleagues NNS
. .

All DT
along IN
they PRP
have VBP
been VBN
noting VBG
the DT
tremors NNS
and CC
pointing VBG
out RP
the IN
underlying VBG
realities NNS
. .

Profit NN
rates NNS
after IN
the DT
great JJ
merger NN
wave NN
are VBP
no DT
higher JJR
, ,
and CC
now RB
we PRP
have VBP
an DT
extremely RB
high-interest JJ
burden NN
relative JJ
to TO
cash VB
flow NN
. .

The DT
consequences NNS
of IN
building NN
empires NNS
with IN
sand NN
are VBP
showing VBG
up RB
. .

In IN
contrast NN
to TO
previous JJ
estimates NNS
reckoning VBG
the DT
default NN
rate NN
on IN
junk NN
bonds NNS
at IN
2 CD
% NN
or CC
3 CD
% NN
, ,
a DT
Harvard NNP
study NN
published VBN
in IN
April NNP
of IN
this DT
year NN
-LRB- (
and CC
discussed VBN
in IN
a DT
lead NN
story NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
for IN
Sept. NNP
18 CD
-RRB- )
found VBD
the DT
default NN
rate NN
on IN
these DT
junk NN
bonds NNS
is VBZ
34 CD
% NN
. .

What WP
is VBZ
the DT
consequence NN
of IN
a DT
high-interest JJ
burden NN
, ,
high JJ
default NN
rates NNS
and CC
continued VBD
low JJ
profitability NN
? .

Corporations NNS
need VBP
liquidity NN
, ,
in IN
the DT
form NN
of IN
borrowed VBN
funds NNS
. .

Without IN
liquidity NN
from IN
the DT
junk-bond NN
market NN
or CC
cash NN
flow NN
from IN
profits NNS
, ,
they PRP
look VBP
to TO
the DT
government NN
, ,
which WDT
obediently RB
assists VBZ
the DT
natural JJ
motions NNS
of IN
the DT
capitalist JJ
economy NN
with IN
charity NN
in IN
the DT
form NN
of IN
cuts NNS
in IN
the DT
capital-gains NNS
tax VBP
rate NN
or CC
bailouts NNS
. .

The DT
consequence NN
can MD
be VB
inflation NN
, ,
brought VBN
on IN
as IN
the DT
effect NN
of IN
a DT
desperate JJ
bid NN
to TO
avoid VB
the DT
deflationary JJ
shock NN
of IN
a DT
sudden JJ
crash NN
. .

Attacks VBZ
on IN
inflation NN
come VB
with IN
another DT
strategy NN
of IN
capital NN
of IN
a DT
very RB
traditional JJ
sort NN
: :
an DT
assault NN
on IN
wages NNS
. .

Mr. NNP
Fukuyama NNP
, ,
peering VBG
through IN
binoculars NNS
at IN
the DT
end NN
of IN
history NN
, ,
said VBD
in IN
his PRP$
essay NN
that IN
`` ``
the DT
class NN
issue NN
has VBZ
actually RB
been VBN
successfully RB
resolved VBN
in IN
the DT
West NNP
... :

the DT
egalitarianism NN
of IN
modern JJ
America NNP
represents VBZ
the DT
essential JJ
achievement NN
of IN
the DT
classless JJ
society NN
envisioned VBN
by IN
Marx NNP
. .
'' ''

Mr. NNP
Fukuyama NNP
might MD
want VB
to TO
consult VB
some DT
American JJ
workers NNS
on IN
the DT
subject NN
of IN
class NN
and CC
egalitarianism NN
. .

From IN
its PRP$
peak NN
in IN
1972 CD
of IN
$ $
198.41 CD
, ,
the DT
average JJ
American JJ
weekly JJ
wage NN
had VBD
fallen VBN
to TO
$ $
169.28 CD
in IN
1987 CD
-- :
both DT
figures NNS
being VBG
expressed VBN
in IN
1977 CD
dollars NNS
. .

In IN
other JJ
words NNS
, ,
after IN
the DT
glory NN
boom NN
of IN
the DT
Reagan NNP
years NNS
, ,
wages NNS
had VBD
sunk VBN
from IN
the DT
post NN
World NNP
War NNP
II NNP
peak NN
by IN
16 CD
% NN
as IN
capitalists NNS
, ,
helped VBN
by IN
the DT
government NN
, ,
turned VBD
down RP
the DT
screws NNS
or CC
went VBD
offshore JJ
. .

But CC
there EX
are VBP
signs NNS
now RB
-- :
the DT
strikes NNS
by IN
miners NNS
, ,
Boeing NNP
workers NNS
, ,
telephone NN
workers NNS
, ,
etc. FW
-- :
that IN
this DT
attack NN
on IN
wages NNS
is VBZ
being VBG
more RBR
fiercely RB
resisted VBN
. .

These DT
are VBP
long-term JJ
Richter NNP
readings NNS
on IN
American JJ
capitalism NN
. .

The DT
whole JJ
structure NN
is VBZ
extremely RB
shaky JJ
. .

Governments NNS
have VBP
become VBN
sophisticated JJ
in IN
handling NN
moments NNS
of IN
panic NN
-LRB- (
a DT
word NN
the DT
London NNP
Times NNP
forbade VBD
my PRP$
father NN
to TO
use VB
when WRB
he PRP
was VBD
reporting VBG
the DT
Wall NNP
Street NNP
crash NN
in IN
1929 CD
-RRB- )
. .
But CC
sophistication NN
has VBZ
its PRP$
limits NNS
. .

The DT
S&L NNP
bailout NN
could MD
cost VB
$ $
300 CD
billion CD
, ,
computing VBG
interest NN
on IN
the DT
government NN
's POS
loans NNS
. .

These DT
are VBP
real JJ
costs NNS
. .

Under IN
what WP
weights VBZ
will MD
the DT
Federal NNP
Deposit NNP
Insurance NNP
Corporation NNP
totter VB
? .

Capitalism NN
may MD
now RB
be VB
engineered VBN
to TO
withstand VB
sudden JJ
shocks NNS
, ,
but CC
there EX
are VBP
fault NN
lines NNS
-- :
the DT
crisis NN
in IN
profits NNS
, ,
the DT
assault NN
on IN
wages NNS
, ,
the DT
structural JJ
inequity NN
of IN
the DT
system NN
-- :
that WDT
make VBP
fools NNS
of IN
those DT
who WP
claim VBP
that IN
the DT
future NN
is VBZ
here RB
and CC
that DT
history NN
is VBZ
over RB
. .

Mr. NNP
Cockburn NNP
is VBZ
a DT
columnist NN
for IN
The DT
Nation NN
and CC
LA NNP
Weekly NNP
. .

Japan NNP
Air NNP
Lines NNPS
, ,
Lufthansa NNP
German JJ
Airlines NNPS
and CC
Air NNP
France NNP
reportedly RB
plan VBP
to TO
form VB
an DT
international JJ
air-freight NN
company NN
this DT
year NN
, ,
a DT
move NN
that WDT
could MD
further VB
consolidate VB
the DT
industry NN
. .

Japanese JJ
newspaper NN
Nihon NNP
Keizai NNP
Shimbun NNP
reported VBD
that IN
the DT
three CD
giants NNS
plan VBP
to TO
integrate VB
their PRP$
cargo NN
computers NNS
and CC
ground-cargo NN
and CC
air-cargo NN
systems NNS
. .

They PRP
reportedly RB
will MD
invest VB
a DT
total NN
of IN
20 CD
billion CD
yen NN
-LRB- (
$ $
140 CD
million CD
-RRB- )
in IN
the DT
venture NN
, ,
whose WP$
headquarters NN
would MD
be VB
in IN
France NNP
or CC
West NNP
Germany NNP
. .

The DT
action NN
follows VBZ
Federal NNP
Express NNP
Corp. NNP
's POS
acquisition NN
of IN
Flying NNP
Tiger NNP
Line NNP
Inc. NNP
in IN
August NNP
. .

After IN
that DT
, ,
`` ``
it PRP
would MD
make VB
sense NN
for IN
airlines NNS
to TO
talk VB
about IN
doing VBG
things NNS
jointly RB
, ,
'' ''
said VBD
Cotton NNP
Daly NNP
, ,
director NN
of IN
cargo NN
services NNS
for IN
New NNP
York NNP
consulting NN
firm NN
Simat NNP
, ,
Helliesen NNP
& CC
Eichner NNP
Inc NNP
. .

Mr. NNP
Daly NNP
said VBD
such JJ
discussions NNS
are VBP
motivated VBN
by IN
the DT
competitive JJ
threat NN
posed VBN
by IN
Federal NNP
Express NNP
, ,
United NNP
Parcel NNP
Service NNP
of IN
America NNP
Inc. NNP
and CC
other JJ
fast-growing JJ
air-freight NN
companies NNS
. .

Many JJ
airlines NNS
are VBP
talking VBG
about IN
cargo NN
ventures NNS
, ,
and CC
there EX
have VBP
been VBN
rumors NNS
about IN
such JJ
a DT
tie NN
between IN
JAL NNP
and CC
European JJ
airlines NNS
. .

In IN
Tokyo NNP
, ,
a DT
JAL NNP
spokesman NN
said VBD
he PRP
could MD
n't RB
confirm VB
or CC
deny VB
the DT
latest JJS
Japanese JJ
report NN
. .

But CC
he PRP
said VBD
JAL NNP
is VBZ
talking VBG
to TO
Lufthansa NNP
and CC
Air NNP
France NNP
about IN
some DT
sort NN
of IN
cargo NN
venture NN
. .

`` ``
It PRP
is VBZ
just RB
one CD
of IN
a DT
number NN
of IN
strategies NNS
JAL NNP
has VBZ
embarked VBN
upon IN
to TO
come VB
to TO
terms NNS
with IN
the DT
situation NN
in IN
Europe NNP
after IN
1992 CD
, ,
'' ''
the DT
deadline NN
for IN
ending VBG
trade NN
barriers NNS
in IN
the DT
EC NNP
, ,
he PRP
said VBD
. .

In IN
Frankfurt NNP
, ,
a DT
Lufthansa NNP
spokesman NN
confirmed VBD
talks NNS
are VBP
under IN
way NN
, ,
but CC
declined VBD
to TO
comment VB
. .

A DT
Lufthansa NNP
spokeswoman NN
in IN
Tokyo NNP
said VBD
the DT
head NN
of IN
Lufthansa NNP
's POS
cargo NN
operations NNS
had VBD
been VBN
in IN
Toyko NNP
last JJ
week NN
for IN
talks NNS
with IN
JAL NNP
. .

In IN
Paris NNP
, ,
Air NNP
France NNP
declined VBD
to TO
comment VB
. .

`` ``
Nothing NN
is VBZ
defined VBN
or CC
signed VBN
at IN
this DT
point NN
, ,
'' ''
Mr. NNP
Daly NNP
said VBD
of IN
the DT
talks NNS
. .

Whatever WDT
accord VBP
the DT
three CD
carriers NNS
reach VBP
, ,
he PRP
said VBD
, ,
he PRP
is VBZ
skeptical JJ
it PRP
would MD
create VB
a DT
separate JJ
airline NN
. .
If IN
the DT
three CD
companies NNS
pool VBP
their PRP$
air-freight NN
businesses NNS
, ,
their PRP$
clout NN
would MD
be VB
considerable JJ
. .

According VBG
to TO
figures NNS
from IN
the DT
International NNP
Air NNP
Transport NNP
Association NNP
, ,
they PRP
carried VBD
a DT
combined VBN
1.8 CD
million CD
tons NNS
of IN
freight NN
last JJ
year NN
. .

Federal NNP
Express NNP
and CC
Flying NNP
Tiger NNP
, ,
as IN
separate JJ
companies NNS
, ,
carried VBD
a DT
combined VBN
2.6 CD
million CD
tons NNS
. .

Air NNP
France NNP
and CC
Lufthansa NNP
last JJ
month NN
concluded VBD
a DT
far-reaching JJ
cooperation NN
accord NN
that WDT
includes VBZ
air-freight NN
activities NNS
. .

They PRP
plan VBP
to TO
increase VB
cooperation NN
in IN
freight NN
ground-handling NNS
and CC
create VB
a DT
world-wide JJ
computer NN
system NN
to TO
process VB
cargo NN
. .

Other JJ
airlines NNS
would MD
have VB
access NN
to TO
the DT
system NN
, ,
they PRP
said VBD
, ,
and CC
negotiations NNS
with IN
partners NNS
were VBD
already RB
under IN
way NN
. .

Both DT
European JJ
airlines NNS
operate VBP
extensive JJ
fleets NNS
of IN
Boeing NNP
747 CD
freighters NNS
and CC
747 CD
Combis NNPS
, ,
aircraft NN
that WDT
carry VBP
both DT
freight NN
and CC
passengers NNS
on IN
the DT
main JJ
deck NN
. .

They PRP
currently RB
have VBP
large JJ
orders NNS
for IN
cargo NN
planes NNS
. .

Several JJ
airlines NNS
, ,
including VBG
Lufthansa NNP
, ,
JAL NNP
and CC
Cathay NNP
Pacific NNP
Airways NNPS
, ,
are VBP
working VBG
on IN
a DT
so-called JJ
global JJ
cargo NN
system NN
and CC
are VBP
trying VBG
to TO
attract VB
other JJ
carriers NNS
to TO
join VB
, ,
Mr. NNP
Daly NNP
said VBD
. .

JAL NNP
also RB
has VBZ
signaled VBN
it PRP
is VBZ
looking VBG
for IN
toeholds NNS
in IN
Europe NNP
before IN
the DT
end NN
of IN
1992 CD
. .

Last JJ
month NN
, ,
the DT
carrier NN
said VBD
it PRP
wanted VBD
to TO
lease VB
crews NNS
and CC
planes NNS
from IN
British JJ
Airways NNPS
so IN
it PRP
could MD
funnel VB
its PRP$
passengers NNS
from IN
London NNP
to TO
other JJ
European JJ
destinations NNS
. .
British JJ
Airways NNPS
said VBD
it PRP
has VBZ
n't RB
received VBN
a DT
proposal NN
from IN
JAL NNP
. .

But CC
last JJ
week NN
there EX
were VBD
air-traffic NN
negotiations NNS
between IN
the DT
U.K. NNP
and CC
Japan NNP
, ,
a DT
likely JJ
first JJ
step NN
to TO
any DT
commercial JJ
agreement NN
between IN
JAL NNP
and CC
British JJ
Airways NNPS
or CC
another DT
U.K. NNP
carrier NN
. .

Federal NNP
Paper NNP
Board NNP
Co. NNP
said VBD
it PRP
completed VBD
the DT
previously RB
announced VBN
purchase NN
of IN
Imperial NNP
Cup NNP
Corp. NNP
, ,
a DT
closely RB
held VBN
maker NN
of IN
paper NN
cups NNS
based VBN
in IN
Kenton NNP
, ,
Ohio NNP
. .

Terms NNS
were VBD
n't RB
disclosed VBN
. .

Imperial NNP
Cup NNP
has VBZ
annual JJ
sales NNS
of IN
approximately RB
$ $
75 CD
million CD
. .

Federal NNP
Paper NNP
Board NNP
sells VBZ
paper NN
and CC
wood NN
products NNS
. .

In IN
a DT
move NN
to TO
prevent VB
any DT
dislocation NN
in IN
the DT
financial JJ
markets NNS
from IN
the DT
California NNP
earthquake NN
, ,
the DT
Securities NNPS
and CC
Exchange NNP
Commission NNP
said VBD
it PRP
temporarily RB
reassigned VBD
options NNS
listed VBN
on IN
the DT
Pacific NNP
Stock NNP
Exchange NNP
to TO
the DT
American NNP
, ,
New NNP
York NNP
and CC
Philadelphia NNP
stock NN
exchanges NNS
and CC
to TO
the DT
Chicago NNP
Board NNP
Options NNP
Exchange NNP
. .

The DT
decision NN
, ,
which WDT
affects VBZ
millions NNS
of IN
dollars NNS
of IN
trading NN
positions NNS
, ,
was VBD
made VBN
late JJ
yesterday NN
because IN
the DT
Pacific NNP
exchange NN
's POS
options NNS
floor NN
was VBD
shut VBN
down RB
as IN
a DT
result NN
of IN
Tuesday NNP
's POS
earthquake NN
. .

The DT
SEC NNP
, ,
faced VBN
with IN
a DT
major JJ
squeeze NN
on IN
options NNS
positions NNS
, ,
said VBD
it PRP
was VBD
necessary JJ
to TO
ensure VB
that IN
options NNS
listed VBN
on IN
the DT
exchange NN
could MD
be VB
traded VBN
today NN
and CC
tomorrow NN
. .

SEC NNP
Chairman NNP
Richard NNP
Breeden NNP
said VBD
the DT
cooperation NN
by IN
the DT
exchanges NNS
would MD
enable VB
investors NNS
to TO
buy VB
and CC
sell VB
options NNS
listed VBN
solely RB
on IN
the DT
Pacific NNP
exchange NN
, ,
guaranteeing VBG
the DT
liquidity NN
of IN
the DT
market NN
. .

Officials NNS
at IN
the DT
four CD
exchanges NNS
said VBD
well RB
over IN
50 CD
traders NNS
from IN
the DT
Pacific NNP
exchange NN
were VBD
taking VBG
flights NNS
from IN
San NNP
Francisco NNP
late JJ
yesterday NN
to TO
the DT
American NNP
, ,
New NNP
York NNP
and CC
Philadelphia NNP
exchanges NNS
and CC
to TO
the DT
CBOE NNP
, ,
where WRB
they PRP
would MD
continue VB
making VBG
markets NNS
in IN
the DT
Pacific-listed JJ
options NNS
. .

The DT
Big NNP
Board NNP
said VBD
carpenters NNS
quickly RB
erected VBN
a DT
new JJ
options NNS
floor NN
to TO
accomodate VB
40 CD
traders NNS
from IN
the DT
Pacific NNP
exchange NN
. .

In IN
addition NN
, ,
specialists NNS
on IN
the DT
exchanges NNS
agreed VBD
to TO
provide VB
backup NN
capital NN
for IN
market-making NN
in IN
Pacific NNP
exchange NN
options NNS
traded VBN
on IN
the DT
exchanges NNS
. .

Trading NN
was VBD
light NN
on IN
the DT
Pacific NNP
Stock NNP
Exchange NNP
yesterday NN
, ,
with IN
workers NNS
at IN
the DT
exchange NN
's POS
main JJ
floor NN
in IN
San NNP
Francisco NNP
struggling VBG
to TO
execute VB
orders NNS
by IN
flashlight NN
as IN
a DT
result NN
of IN
a DT
continuing VBG
power NN
outage NN
. .

The DT
most RBS
pressing VBG
problem NN
was VBD
the DT
suspension NN
of IN
options NNS
trading NN
. .

The DT
Pacific NNP
exchange NN
has VBZ
options NNS
for IN
129 CD
underlying VBG
stock NN
issues NNS
, ,
including VBG
highly RB
active JJ
Hilton NNP
Hotels NNP
Corp. NNP
, ,
which WDT
is VBZ
listed VBN
on IN
the DT
Big NNP
Board NNP
. .

Investors NNS
were VBD
concerned VBN
that IN
they PRP
might MD
be VB
unable JJ
to TO
exercise VB
options NNS
that WDT
expire VBP
tomorrow NN
. .

But CC
professionals NNS
said VBD
throughout IN
the DT
day NN
that IN
the DT
shutdown NN
would MD
n't RB
be VB
a DT
cause NN
for IN
alarm NN
even RB
if IN
it PRP
were VBD
to TO
persist VB
for IN
several JJ
days NNS
. .

`` ``
I PRP
've VBP
told VBD
my PRP$
staff NN
and CC
clients NNS
that IN
they PRP
still RB
have VBP
the DT
ability NN
to TO
exercise VB
their PRP$
options NNS
, ,
because IN
they PRP
are VBP
guaranteed VBN
by IN
the DT
Options NNP
Clearing NNP
Corp. NNP
, ,
'' ''
said VBD
Michael NNP
Schwartz NNP
, ,
a DT
senior JJ
registered VBN
options NNS
strategist NN
at IN
Oppenheimer NNP
& CC
Co NNP
. .

The DT
SEC NNP
reassigned VBD
trading NN
in IN
the DT
options NNS
, ,
however RB
, ,
to TO
allow VB
investors NNS
to TO
do VB
more JJR
than IN
simply JJ
exercise NN
the DT
options NNS
. .

While IN
the DT
exchange NN
's POS
equities NNS
floor NN
in IN
San NNP
Francisco NNP
remained VBD
open JJ
on IN
a DT
limited JJ
basis NN
, ,
orders NNS
were VBD
being VBG
routed VBN
and CC
executed VBN
in IN
Los NNP
Angeles NNP
. .

Workers NNS
could MD
dial VB
out IN
, ,
but CC
they PRP
could MD
n't RB
receive VB
telephone NN
calls NNS
. .

`` ``
It PRP
's VBZ
a DT
very RB
uncertain JJ
situation NN
right RB
now RB
, ,
'' ''
said VBD
Navin NNP
Vyas NNP
, ,
administrative JJ
assistant NN
of IN
trading NN
floor NN
operations NNS
of IN
the DT
exchange NN
, ,
which WDT
has VBZ
daily JJ
volume NN
of IN
about IN
10 CD
million CD
shares NNS
. .

Because IN
the DT
exchange NN
's POS
computer NN
was VBD
rerouting VBG
orders NNS
to TO
the DT
exchange NN
's POS
trading NN
operations NNS
in IN
Los NNP
Angeles NNP
, ,
`` ``
business NN
is VBZ
as IN
usual JJ
'' ''
Mr. NNP
Vyas NNP
said VBD
. .

`` ``
If IN
one CD
city NN
is VBZ
down RB
, ,
the DT
other NN
can MD
take VB
over IN
. .
'' ''

Meanwhile RB
, ,
the DT
brokerage NN
firms NNS
in IN
San NNP
Francisco NNP
were VBD
trying VBG
to TO
cope VB
. .

Charles NNP
Daggs NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
of IN
Sutro NNP
& CC
Co. NNP
, ,
said VBD
traders NNS
came VBD
to TO
work VB
at IN
5 NN
a.m. NN
PDT NNP
-- :
many JJ
on IN
foot NN
because IN
of IN
uncertain JJ
road NN
and CC
traffic NN
conditions NNS
-- :
but CC
learned VBD
that IN
they PRP
would MD
have VB
to TO
await VB
a DT
required VBN
inspection NN
by IN
the DT
city NN
in IN
order NN
to TO
turn VB
the DT
power NN
back RB
on IN
at IN
the DT
company NN
's POS
two CD
main JJ
facilities NNS
there RB
. .

That DT
should MD
happen VB
by IN
today NN
, ,
he PRP
said VBD
. .

Traders NNS
worked VBD
with IN
the DT
help NN
of IN
sunlight NN
streaming VBG
through IN
windows NNS
, ,
despite IN
large JJ
cracks NNS
in IN
the DT
walls NNS
and CC
a DT
lack NN
of IN
incoming JJ
phone NN
calls NNS
. .

Also RB
, ,
most RBS
of IN
the DT
telecommunications NNS
equipment NN
was VBD
out RB
. .

The DT
traders NNS
were VBD
executing VBG
municipal JJ
bond NN
, ,
mutual JJ
fund NN
and CC
other JJ
orders NNS
through IN
a DT
sister NN
firm NN
, ,
Tucker NNP
Anthony NNP
Inc. NNP
, ,
which WDT
is VBZ
also RB
owned VBN
by IN
John NNP
Hancock NNP
Freedom NNP
Securities NNPS
but CC
is VBZ
based VBN
in IN
New NNP
York NNP
. .

`` ``
We PRP
are VBP
having VBG
a DT
regular JJ
day NN
. .

Volume NN
is VBZ
down RB
out IN
of IN
San NNP
Francisco NNP
, ,
but CC
not RB
out IN
of IN
the DT
11 CD
outlying JJ
offices NNS
, ,
'' ''
Mr. NNP
Daggs NNP
added VBD
. .

Sutro NNP
's POS
Oakland NNP
office NN
executed VBD
orders NNS
through IN
the DT
Sacramento NNP
office NN
, ,
which WDT
was VBD
n't RB
affected VBN
by IN
the DT
quake NN
. .

Others NNS
, ,
like IN
Prudential-Bache NNP
Securities NNP
Inc. NNP
, ,
which WDT
has VBZ
eight CD
offices NNS
in IN
the DT
San NNP
Francisco NNP
area NN
, ,
set VBN
up IN
an DT
800 CD
number NN
yesterday NN
morning NN
for IN
customers NNS
to TO
obtain VB
market NN
commentary NN
and CC
other JJ
help NN
. .

At IN
Kidder NNP
, ,
Peabody NNP
& CC
Co. NNP
's POS
Sacramento NNP
branch NN
, ,
Manager NNP
Janet NNP
White NNP
received VBD
calls VBZ
yesterday NN
morning NN
from IN
workers NNS
in IN
San NNP
Francisco NNP
who WP
offered VBD
to TO
work VB
in IN
Sacramento NNP
. .

Then RB
she PRP
discovered VBD
that IN
Quotron NNP
Systems NNP
Inc. NNP
's POS
Sacramento NNP
lines NNS
were VBD
down RB
, ,
because IN
they PRP
are VBP
normally RB
tied VBN
in IN
through IN
a DT
system NN
that WDT
goes VBZ
through IN
San NNP
Francisco NNP
. .

So RB
the DT
Kidder NNP
brokers NNS
had VBD
to TO
call VB
other JJ
company NN
offices NNS
to TO
get VB
quotes NNS
on IN
stocks NNS
. .

At IN
Quotron NNP
, ,
the DT
company NN
's POS
National NNP
Call-In NN
Center NNP
, ,
which WDT
swung VBD
into IN
action NN
for IN
the DT
first JJ
time NN
last JJ
month NN
for IN
Hurricane NNP
Hugo NNP
, ,
assembled VBD
a DT
tactical JJ
team NN
at IN
5 NN
a.m. NN
yesterday NN
to TO
begin VB
rerouting VBG
lines NNS
and CC
restore VB
service NN
to TO
brokers NNS
and CC
traders NNS
. .

The DT
company NN
dispatched VBD
as RB
many JJ
as IN
200 CD
people NNS
in IN
the DT
San NNP
Francisco NNP
area NN
to TO
do VB
the DT
work NN
, ,
though IN
most RBS
of IN
the DT
rerouting VBG
was VBD
done VBN
by IN
computer NN
. .

Service NNP
appeared VBD
to TO
be VB
down RB
throughout IN
the DT
financial JJ
district NN
in IN
downtown NN
San NNP
Francisco NNP
, ,
while IN
just RB
parts NNS
of IN
Oakland NNP
and CC
San NNP
Jose NNP
were VBD
knocked VBN
out RB
. .

But CC
Dale NNP
Irvine NNP
, ,
director NN
of IN
the DT
emergency NN
center NN
, ,
said VBD
service NN
was VBD
being VBG
restored VBN
to TO
outlying JJ
San NNP
Francisco NNP
areas NNS
. .

In IN
Chicago NNP
yesterday NN
, ,
Options NNP
Clearing NNP
confirmed VBD
that IN
it PRP
guarantees VBZ
the DT
Pacific NNP
exchange NN
options NNS
. .
The DT
firm NN
also RB
will MD
permit VB
its PRP$
members NNS
and CC
the DT
public JJ
`` ``
to TO
exercise VB
their PRP$
put NN
and CC
call VB
options NNS
contracts NNS
traded VBN
on IN
the DT
Pacific NNP
exchange NN
'' ''
even RB
if IN
the DT
exchange NN
is VBZ
closed VBN
, ,
said VBD
Wayne NNP
Luthringshausen NNP
, ,
chairman NN
of IN
Options NNP
Clearing NNP
. .

-LRB- (
Put VB
options NNS
give VB
holders NNS
the DT
right NN
, ,
but CC
not RB
the DT
obligation NN
, ,
to TO
sell VB
a DT
financial JJ
instrument NN
at IN
a DT
specified VBN
price NN
, ,
while IN
call NN
options NNS
give VBP
holders NNS
the DT
right NN
, ,
but CC
not RB
the DT
obligation NN
, ,
to TO
buy VB
a DT
financial JJ
instrument NN
at IN
a DT
specified VBN
price NN
-RRB- )
. .

Investors NNS
and CC
traders NNS
in IN
Pacific NNP
exchange NN
options NNS
`` ``
are VBP
protected VBN
to TO
the DT
extent NN
that IN
they PRP
can MD
convert VB
their PRP$
put NN
and CC
call VB
options NNS
into IN
the DT
underlying VBG
instrument NN
, ,
'' ''
Mr. NNP
Luthringshausen NNP
said VBD
. .

`` ``
We PRP
are VBP
seeing VBG
such JJ
exercises NNS
today NN
, ,
in IN
fact NN
. .

International NNP
Business NNP
Machines NNP
Corp. NNP
said VBD
its PRP$
board NN
approved VBD
the DT
purchase NN
of IN
$ $
1 CD
billion CD
of IN
its PRP$
common JJ
shares NNS
, ,
a DT
move NN
that WDT
should MD
help VB
support VB
its PRP$
battered VBN
stock NN
. .

Even RB
as IN
the DT
stock NN
market NN
has VBZ
generally RB
done VBN
well RB
this DT
year NN
, ,
IBM NNP
's POS
shares NNS
have VBP
slipped VBN
steadily RB
from IN
its PRP$
52-week JJ
high NN
of IN
$ $
130.875 CD
. .

Yesterday NN
's POS
closing VBG
price NN
of IN
$ $
101.75 CD
, ,
down RB
50 CD
cents NNS
, ,
in IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
puts VBZ
the DT
stock NN
at IN
about IN
1 CD
1\/2 CD
times NNS
book NN
value NN
, ,
which WDT
is VBZ
as RB
low JJ
as IN
it PRP
has VBZ
sunk VBN
over IN
the DT
past JJ
decade NN
. .

The DT
announcement NN
came VBD
after IN
the DT
market NN
's POS
close NN
. .

The DT
move NN
by IN
IBM NNP
was VBD
n't RB
exactly RB
a DT
surprise NN
. .

The DT
company NN
has VBZ
spent VBN
some DT
$ $
5 NN
billion CD
over IN
the DT
past JJ
3 CD
1\/2 CD
years NNS
to TO
buy VB
back RB
42 CD
million CD
common JJ
shares NNS
, ,
or CC
roughly RB
7 CD
% NN
of IN
those DT
outstanding JJ
. .

In IN
addition NN
, ,
despite IN
IBM NNP
's POS
well-publicized JJ
recent JJ
problems NNS
, ,
the DT
computer NN
giant NN
still RB
generates VBZ
enormous JJ
amounts NNS
of IN
cash NN
. .

As IN
of IN
the DT
end NN
of IN
the DT
second JJ
quarter NN
, ,
it PRP
had VBD
$ $
4.47 CD
billion CD
of IN
cash NN
and CC
marketable JJ
securities NNS
on IN
hand NN
. .

As IN
a DT
result NN
, ,
some DT
securities NNS
analysts NNS
had VBD
predicted VBN
in IN
recent JJ
days NNS
that IN
IBM NNP
would MD
authorize VB
additional JJ
purchases NNS
. .

In IN
Armonk NNP
, ,
N.Y. NNP
, ,
a DT
spokesman NN
said VBD
that IN
although IN
IBM NNP
did VBD
n't RB
view VB
its PRP$
spending NN
as IN
necessarily RB
a DT
way NN
to TO
support VB
the DT
stock NN
, ,
it PRP
thought VBD
the DT
purchases NNS
were VBD
a DT
good JJ
way NN
to TO
improve VB
such JJ
financial JJ
measurements NNS
as IN
per-share JJ
earnings NNS
and CC
return NN
on IN
equity NN
. .

`` ``
We PRP
view VBP
it PRP
as IN
a DT
good JJ
long-term JJ
investment NN
, ,
'' ''
the DT
spokesman NN
said VBD
. .

In IN
the DT
short JJ
term NN
, ,
the DT
move NN
is VBZ
likely JJ
to TO
have VB
little JJ
effect NN
. .

At IN
yesterday NN
's POS
closing VBG
price NN
, ,
$ $
1 CD
billion CD
would MD
buy VB
back RB
about IN
10 CD
million CD
shares NNS
, ,
or CC
less JJR
than IN
2 CD
% NN
of IN
the DT
roughly RB
580 CD
million CD
outstanding JJ
. .

In IN
addition NN
, ,
as IN
of IN
Sept. NNP
30 CD
, ,
the DT
company NN
still RB
had VBD
authorization NN
to TO
buy VB
$ $
368 CD
million CD
of IN
stock NN
under IN
a DT
prior JJ
repurchase NN
program NN
. .

Over IN
the DT
long JJ
term NN
, ,
however RB
, ,
IBM NNP
's POS
stock NN
repurchases NNS
-- :
along IN
with IN
its PRP$
hefty JJ
, ,
$ $
4.84-a-share CD
annual JJ
dividend NN
and CC
generally RB
loyal JJ
following NN
among IN
large JJ
institutional JJ
investors NNS
-- :
are VBP
providing VBG
a DT
floor NN
for IN
the DT
stock NN
price NN
. .
Although IN
IBM NNP
last JJ
year NN
produced VBD
its PRP$
first JJ
strong JJ
results NNS
in IN
four CD
years NNS
and CC
was VBD
expected VBN
to TO
continue VB
to TO
roll VB
this DT
year NN
, ,
it PRP
began VBD
faltering VBG
as RB
early RB
as IN
January NNP
. .

First RB
, ,
it PRP
had VBD
trouble NN
manufacturing VBG
a DT
chip NN
for IN
its PRP$
mainframes NNS
, ,
IBM NNP
's POS
bread-and-butter JJ
business NN
. .

Then RB
it PRP
had VBD
a DT
series NN
of IN
smaller JJR
glitches NNS
, ,
including VBG
problems NNS
manufacturing NN
certain JJ
personal JJ
computers NNS
and CC
the DT
delay NN
in IN
the DT
announcement NN
of IN
some DT
important JJ
workstations NNS
. .

Finally RB
, ,
IBM NNP
had VBD
to TO
delay VB
the DT
introduction NN
of IN
some DT
high-end JJ
disk NN
drives NNS
, ,
which WDT
account VBP
for IN
10 CD
% NN
of IN
its PRP$
$ $
60 CD
billion CD
of IN
annual JJ
revenue NN
. .

None NN
of IN
the DT
problems NNS
is VBZ
necessarily RB
fatal JJ
, ,
and CC
they PRP
are VBP
n't RB
all DT
necessarily RB
even RB
related VBN
. .

There EX
are VBP
also RB
other JJ
factors NNS
at IN
work NN
that WDT
are VBP
outside IN
IBM NNP
's POS
control NN
, ,
such JJ
as IN
currency NN
exchange NN
rates NNS
. .

The DT
strong JJ
dollar NN
, ,
which WDT
reduces VBZ
the DT
value NN
of IN
overseas JJ
earnings NNS
and CC
revenue NN
when WRB
they PRP
are VBP
translated VBN
into IN
dollars NNS
, ,
is VBZ
expected VBN
to TO
knock VB
80 CD
to TO
85 CD
cents NNS
off IN
IBM NNP
's POS
per-share JJ
earnings NNS
for IN
the DT
full JJ
year NN
. .

Without IN
that DT
problem NN
, ,
IBM NNP
might MD
have VB
matched VBN
last JJ
year NN
's POS
earnings NNS
of IN
$ $
5.81 CD
billion CD
, ,
or CC
$ $
9.80 CD
a DT
share NN
. .

Still RB
, ,
investors NNS
will MD
take VB
some DT
convincing NN
before IN
they PRP
get VBP
back RB
into IN
IBM NNP
's POS
stock NN
in IN
a DT
big JJ
way NN
. .

Steve NNP
Milunovich NNP
, ,
a DT
securities NNS
analyst NN
at IN
First NNP
Boston NNP
, ,
said VBD
that IN
while IN
investors NNS
were VBD
looking VBG
for IN
an DT
excuse NN
to TO
buy VB
IBM NNP
shares VBZ
a DT
year NN
ago RB
, ,
even RB
the DT
big JJ
institutional JJ
investors NNS
are VBP
looking VBG
for IN
a DT
reason NN
to TO
avoid VB
the DT
stock NN
these DT
days NNS
. .

On IN
Wall NNP
Street NNP
yesterday NN
, ,
northern JJ
California NNP
's POS
killer NN
earthquake NN
was VBD
just RB
another DT
chance NN
to TO
make VB
a DT
buck NN
. .

At IN
the DT
opening NN
bell NN
, ,
investors NNS
quickly RB
began VBD
singling VBG
out RP
shares NNS
of IN
companies NNS
expected VBN
to TO
profit VB
or CC
suffer VB
in IN
some DT
way NN
from IN
the DT
California NNP
disaster NN
, ,
including VBG
insurers NNS
, ,
construction-related JJ
companies NNS
, ,
refiners NNS
and CC
housing NN
lenders NNS
. .

Brokerage NN
houses NNS
jumped VBD
in IN
, ,
touting VBG
`` ``
post-quake JJ
demand NN
'' ''
stocks NNS
, ,
and CC
Kidder NNP
, ,
Peabody NNP
& CC
Co. NNP
set VBD
up IN
a DT
toll-free JJ
hot JJ
line NN
for IN
San NNP
Franciscans NNP
who WP
might MD
need VB
emergency NN
investment NN
advice NN
and CC
help VB
in IN
transferring VBG
funds NNS
. .

`` ``
Wall NNP
Street NNP
thinks VBZ
of IN
everything NN
in IN
terms NNS
of IN
money NN
, ,
'' ''
says VBZ
Tom NNP
Gallagher NNP
, ,
a DT
senior JJ
Oppenheimer NNP
& CC
Co. NNP
trader NN
. .

However RB
, ,
he PRP
added VBD
, ,
such JJ
event-driven JJ
trading NN
moves NNS
typically RB
last JJ
only RB
a DT
few JJ
hours NNS
and CC
are VBP
often RB
made VBN
without IN
full JJ
information NN
. .

The DT
most RBS
popular JJ
plays NNS
of IN
the DT
day NN
were VBD
insurance NN
companies NNS
such JJ
as IN
General NNP
Re NNP
Corp. NNP
, ,
which WDT
rose VBD
$ $
2.75 CD
to TO
$ $
86.50 CD
, ,
Nac NNP
Re NNP
Corp. NNP
, ,
up IN
$ $
2 CD
to TO
$ $
37.75 CD
, ,
American NNP
International NNP
Group NNP
Inc. NNP
, ,
up IN
$ $
3.25 CD
to TO
$ $
102.625 CD
, ,
and CC
Cigna NNP
Corp. NNP
, ,
up IN
87.5 CD
cents NNS
to TO
$ $
62.50 CD
. .

Yesterday NN
, ,
the DT
brokerage NN
firm NN
Conning NNP
& CC
Co. NNP
said VBD
insurers NNS
will MD
use VB
the DT
earthquake NN
as IN
an DT
excuse NN
to TO
raise VB
insurance NN
rates NNS
, ,
ending VBG
their PRP$
long JJ
price NN
wars NNS
. .

Before IN
this DT
bullish JJ
theory NN
surfaced VBD
, ,
some DT
insurance NN
stocks NNS
initially RB
fell VBD
, ,
indicating VBG
that IN
investors NNS
thought VBD
the DT
quake NN
might MD
cost VB
insurers NNS
a DT
lot NN
of IN
money NN
. .

In IN
fact NN
, ,
Fireman NNP
's POS
Fund NNP
Corp. NNP
, ,
which WDT
ended VBD
the DT
day NN
off IN
50 CD
cents NNS
to TO
$ $
36.50 CD
, ,
said VBD
earthquake NN
damage NN
would MD
slightly RB
hurt VBN
fourth-quarter JJ
profit NN
. .

On IN
the DT
prospect NN
for IN
rebuilding VBG
northern JJ
California NNP
, ,
investors NNS
bid VBP
up IN
cement-makers NNS
Calmat NNP
Co. NNP
, ,
up IN
$ $
2.75 CD
to TO
$ $
28.75 CD
, ,
and CC
Lone NNP
Star NNP
Industries NNP
Inc. NNP
, ,
up IN
$ $
1.75 CD
to TO
$ $
29.25 CD
. .

Bridge NNP
and CC
road NN
builders NNS
had VBD
a DT
field NN
day NN
, ,
including VBG
Kasler NNP
Corp. NNP
, ,
up IN
$ $
2.125 CD
to TO
$ $
9.875 CD
, ,
Guy NNP
F. NNP
Atkinson NNP
Co. NNP
, ,
up IN
87.5 CD
to TO
$ $
61.875 CD
, ,
and CC
Morrison NNP
Knudsen NNP
Corp. NNP
, ,
which WDT
reported VBD
higher JJR
third-quarter JJ
earnings NNS
yesterday NN
, ,
up IN
$ $
2.25 CD
to TO
$ $
44.125 CD
. .
Fluor NNP
Corp. NNP
, ,
a DT
construction NN
engineering NN
firm NN
, ,
gained VBD
75 CD
cents NNS
to TO
$ $
33.375 CD
. .

But CC
home-building JJ
stocks NNS
were VBD
a DT
mixed VBN
bag NN
. .

Timber NN
stocks NNS
got VBD
a DT
big JJ
boost NN
. .

Georgia NNP
Pacific NNP
Corp. NNP
, ,
up IN
$ $
1.25 CD
to TO
$ $
58 CD
, ,
and CC
Maxxam NNP
Inc. NNP
, ,
up IN
$ $
3 CD
to TO
$ $
43.75 CD
, ,
both DT
reported VBD
strong JJ
profits NNS
. .

Merrill NNP
Lynch NNP
& CC
Co. NNP
touted VBD
Georgia-Pacific NNP
, ,
Louisiana NNP
Pacific NNP
Corp. NNP
and CC
Willamette NNP
Industries NNP
Inc. NNP
as IN
the DT
best JJS
post-quake JJ
plywood NN
plays NNS
. .

Other JJ
gainers NNS
were VBD
companies NNS
with IN
one CD
or CC
more RBR
undamaged JJ
California NNP
refineries NNS
. .

Tosco NNP
Corp. NNP
jumped VBD
$ $
1.125 CD
to TO
$ $
20.125 CD
and CC
Chevron NNP
Corp. NNP
, ,
despite IN
a DT
temporary JJ
pipeline NN
shutdown NN
, ,
rose VBD
$ $
1 CD
to TO
$ $
65 CD
. .

Meanwhile RB
, ,
shares VBZ
of IN
some DT
big JJ
housing NN
lenders NNS
got VBD
hit VBN
, ,
on IN
the DT
likelihood NN
that IN
the DT
lenders NNS
' POS
collateral NN
-- :
people NNS
's POS
homes NNS
-- :
suffered VBD
physical JJ
damage NN
and CC
perhaps RB
a DT
loss NN
in IN
value NN
. .

Wells NNP
Fargo NNP
& CC
Co. NNP
fell VBD
50 CD
cents NNS
to TO
$ $
81.50 CD
, ,
and CC
BankAmerica NNP
Corp. NNP
fell VBD
50 CD
cents NNS
to TO
$ $
31.875 CD
. .

Some DT
California NNP
thrift NN
stocks NNS
also RB
fell VBD
, ,
including VBG
Golden NNP
West NNP
Financial NNP
Corp. NNP
and CC
H.F. NNP
Ahmanson NNP
& CC
Co. NNP
, ,
which WDT
reported VBD
lower JJR
earnings NNS
yesterday NN
. .

`` ``
Property NNP
values NNS
did VBD
n't RB
go VB
up IN
in IN
California NNP
yesterday NN
, ,
'' ''
says VBZ
one CD
money NN
manager NN
. .

Pacific NNP
Gas NNP
& CC
Electric NNP
Co. NNP
fell VBD
37.5 CD
cents NNS
to TO
$ $
19.625 CD
. .
One CD
of IN
its PRP$
power NN
generators NNS
was VBD
damaged VBN
, ,
though IN
the DT
company NN
said VBD
there EX
wo MD
n't RB
be VB
any DT
financial JJ
impact NN
. .

Pacific NNP
Telesis NNP
Group NNP
lost VBD
62.5 CD
cents NNS
to TO
$ $
44.625 CD
. .

A DT
computer NN
failure NN
delayed VBD
its PRP$
earnings NNS
announcement NN
, ,
and CC
some DT
investors NNS
think VBP
it PRP
might MD
have VB
extra JJ
costs NNS
to TO
repair VB
damaged VBN
telephone NN
lines NNS
. .

Heavy JJ
construction NN
, ,
property-casualty JJ
insurance NN
and CC
forest NN
products NNS
were VBD
among IN
the DT
best JJS
performing VBG
industry NN
groups NNS
in IN
the DT
Dow NNP
Jones NNP
Equity NNP
Market NNP
Index NNP
yesterday NN
. .

Friday NNP
's POS
stock NN
market NN
plunge NN
claimed VBD
its PRP$
second JJ
victim NN
among IN
the DT
scores NNS
of IN
futures NNS
and CC
options NNS
trading NN
firms NNS
here RB
. .

Petco NNP
Options NNPS
, ,
an DT
options NNS
trading NN
firm NN
owned VBN
by IN
the DT
family NN
of IN
the DT
deceased JJ
former JJ
Chicago NNP
Board NNP
of IN
Trade NNP
chairman NN
Ralph NNP
Peters NNP
, ,
is VBZ
getting VBG
out IN
of IN
the DT
trade NN
clearing VBG
, ,
or CC
processing NN
and CC
guaranteeing VBG
, ,
business NN
after IN
sustaining VBG
a DT
multimillion JJ
dollar NN
loss NN
Friday NNP
, ,
options NNS
industry NN
officials NNS
said VBD
. .

Nearly RB
75 CD
options NNS
traders NNS
on IN
the DT
Chicago NNP
Board NNP
Options NNP
Exchange NNP
who WP
cleared VBD
trades NNS
through IN
Petco NNP
, ,
including VBG
a DT
handful NN
of IN
traders NNS
who WP
lost VBD
between IN
$ $
500,000 CD
to TO
$ $
1 CD
million CD
themselves PRP
as IN
a DT
result NN
of IN
Friday NNP
's POS
debacle NN
, ,
are VBP
trying VBG
to TO
transfer VB
their PRP$
business NN
to TO
other JJ
clearing NN
firms NNS
, ,
CBOE NNP
members NNS
said VBD
. .

Timothy NNP
Vincent NNP
, ,
Petco NNP
chief JJ
executive JJ
officer NN
, ,
confirmed VBD
that IN
Petco NNP
was VBD
withdrawing VBG
from IN
the DT
clearing VBG
business NN
. .

`` ``
The DT
owners NNS
of IN
the DT
company NN
got VBD
a DT
look NN
at IN
the DT
potential JJ
risks NNS
in IN
this DT
business NN
, ,
and CC
after IN
Monday NNP
they PRP
felt VBD
they PRP
did VBD
n't RB
want VB
to TO
be VB
exposed VBN
any DT
more JJR
, ,
'' ''
he PRP
said VBD
. .

He PRP
added VBD
that IN
Petco NNP
remained VBD
in IN
compliance NN
with IN
all DT
industry NN
capital NN
requirements NNS
during IN
the DT
market NN
's POS
rapid JJ
plunge NN
Friday NNP
and CC
Monday NNP
's POS
rebound NN
. .

A DT
CBOE NNP
spokeswoman NN
declined VBD
comment VB
on IN
Petco NNP
. .

Over IN
the DT
weekend NN
Fossett NNP
Corp. NNP
, ,
another DT
options NNS
trading NN
firm NN
, ,
transferred VBD
the DT
clearing VBG
accounts NNS
of IN
about IN
160 CD
traders NNS
to TO
First NNP
Options NNPS
of IN
Chicago NNP
, ,
a DT
unit NN
of IN
Continental NNP
Bank NNP
Corp. NNP
, ,
because IN
it PRP
could MD
n't RB
meet VB
regulatory JJ
capital NN
requirements NNS
after IN
Friday NNP
's POS
market NN
slide NN
. .

The DT
unprecedented JJ
transfer NN
of IN
accounts NNS
underscored VBD
the DT
options NNS
industry NN
's POS
desire NN
not RB
to TO
have VB
its PRP$
credibility NN
tarnished VBN
by IN
potentially RB
widespread JJ
trading NN
defaults NNS
on IN
Monday NNP
. .

The DT
CBOE NNP
, ,
American NNP
Stock NNP
Exchange NNP
, ,
Options NNP
Clearing NNP
Corp. NNP
and CC
Stephen NNP
Fossett NNP
, ,
owner NN
of IN
Fossett NNP
, ,
joined VBD
in IN
putting VBG
up IN
$ $
50 CD
million CD
to TO
guarantee VB
the DT
accounts NNS
at IN
First NNP
Options NNPS
. .

The DT
head NN
of IN
another DT
small JJ
options NNS
clearing VBG
firm NN
, ,
who WP
asked VBD
not RB
to TO
be VB
identified VBN
, ,
said VBD
that IN
the DT
heightened VBN
volatility NN
in IN
the DT
financial JJ
markets NNS
in IN
recent JJ
years NNS
makes VBZ
it PRP
increasingly RB
difficult JJ
for IN
any DT
but CC
the DT
largest JJS
financial JJ
trading NN
firms NNS
to TO
shoulder VB
the DT
risk NN
inherent JJ
in IN
the DT
highly RB
leveraged JJ
options NNS
and CC
futures NNS
business NN
. .

Prior RB
to TO
the DT
introduction NN
of IN
financial JJ
futures NNS
in IN
the DT
late JJ
1970s NNS
, ,
most RBS
trading NN
firms NNS
clustered VBN
around IN
the DT
LaSalle NNP
Street NNP
financial JJ
district NN
here RB
were VBD
family NN
operations NNS
handed VBD
down RB
from IN
one CD
generation NN
to TO
the DT
next JJ
. .

Most JJS
also RB
were VBD
relatively RB
undercapitalized JJ
compared VBN
with IN
the DT
size NN
of IN
most RBS
Wall NNP
Street NNP
securities NNS
firms NNS
. .

Mr. NNP
Peters NNP
, ,
a DT
LaSalle NNP
Street NNP
legend NN
among IN
the DT
post-World NNP
War NNP
II NNP
generation NN
of IN
commodity NN
traders NNS
, ,
was VBD
rumored VBN
to TO
have VB
amassed VBN
a DT
multimillion-dollar JJ
fortune NN
from IN
commodity NN
trading NN
and CC
other JJ
activities NNS
by IN
the DT
time NN
he PRP
died VBD
in IN
May NNP
. .

Part NN
of IN
a DT
Series NNP
-RCB- )

Betty NNP
Lombardi NNP
is VBZ
a DT
mild-mannered JJ
homemaker NN
and CC
grandmother NN
in IN
rural JJ
Hunterdon NNP
County NNP
, ,
N.J NNP
. .

But CC
put VB
her PRP
behind IN
a DT
shopping NN
cart NN
and CC
she PRP
turns VBZ
ruthless JJ
. .

If IN
Colgate NNP
toothpaste NN
offers VBZ
a DT
tempting JJ
money-saving JJ
coupon NN
, ,
she PRP
'll MD
cross VB
Crest NNP
off IN
her PRP$
shopping NN
list NN
without IN
a DT
second NN
thought VBD
. .

Never RB
mind NN
that IN
her PRP$
husband NN
prefers VBZ
Crest NNP
. .

Some DT
weeks NNS
when WRB
her PRP$
supermarket NN
runs VBZ
a DT
double-coupon NN
promotion NN
, ,
she PRP
boasts VBZ
that IN
she PRP
shaves VBZ
$ $
22 CD
off IN
her PRP$
bill NN
. .

Money NNP
is VBZ
n't RB
the DT
only JJ
thing NN
that WDT
makes VBZ
her PRP$
dump NN
once RB
favorite JJ
brands NNS
. .

After IN
she PRP
heard VBD
about IN
the DT
artery-clogging NN
hazards NNS
of IN
tropical JJ
oils NNS
in IN
many JJ
cookies NNS
, ,
she PRP
dropped VBD
Pepperidge NNP
Farm NNP
and CC
started VBD
buying VBG
brands NNS
free JJ
of IN
such JJ
oils NNS
. .

`` ``
I PRP
always RB
thought VBD
Pepperidge NNP
Farm NNP
was VBD
tasty JJ
and CC
high JJ
quality NN
, ,
'' ''
Mrs. NNP
Lombardi NNP
says VBZ
. .

`` ``
But CC
I PRP
do VBP
n't RB
want VB
any DT
of IN
that DT
oil NN
for IN
my PRP$
grandkids NNS
. .
'' ''

-LRB- (
Pepperidge NNP
Farm NNP
says VBZ
it PRP
ca MD
n't RB
tell VB
exactly RB
how WRB
many JJ
customers NNS
it PRP
has VBZ
lost VBN
, ,
but CC
it PRP
hopes VBZ
to TO
remove VB
the DT
objectionable JJ
tropical JJ
oil NN
from IN
all DT
its PRP$
products NNS
by IN
year NN
end NN
. .
-RRB- )

Clearly RB
, ,
people NNS
like IN
Mrs. NNP
Lombardi NNP
are VBP
giving VBG
marketers NNS
fits VBZ
. .

She PRP
represents VBZ
a DT
new JJ
breed NN
of IN
savvy JJ
consumer NN
who WP
puts VBZ
bargain NN
prices NNS
, ,
nutritional JJ
and CC
environmental JJ
concerns NNS
, ,
and CC
other JJ
priorities NNS
ahead RB
of IN
old-fashioned JJ
brand NN
loyalty NN
. .

While IN
brand NN
loyalty NN
is VBZ
far RB
from IN
dead JJ
, ,
marketing NN
experts NNS
say VBP
it PRP
has VBZ
eroded VBN
during IN
the DT
1980s CD
. .

Marketers NNS
themselves PRP
are VBP
partly RB
to TO
blame VB
: :
They PRP
've VBP
increased VBN
spending NN
for IN
coupons NNS
and CC
other JJ
short-term JJ
promotions NNS
at IN
the DT
expense NN
of IN
image-building JJ
advertising NN
. .

What WP
's VBZ
more JJR
, ,
a DT
flood NN
of IN
new JJ
products NNS
has VBZ
given VBN
consumers NNS
a DT
dizzying JJ
choice NN
of IN
brands NNS
, ,
many NN
of IN
which WDT
are VBP
virtually JJ
carbon NN
copies NNS
of IN
one CD
other JJ
. .

`` ``
Marketers NNS
have VBP
brought VBN
this DT
on IN
themselves PRP
with IN
their PRP$
heavy JJ
use NN
'' ''
of IN
promotions NNS
, ,
contends VBZ
Joe NNP
Plummer NNP
, ,
an DT
executive JJ
vice NN
president NN
at IN
the DT
D'Arcy NNP
Masius NNP
Benton NNP
& CC
Bowles NNP
ad NN
agency NN
. .

`` ``
Without IN
some DT
real JJ
product NN
improvements NNS
, ,
it PRP
's VBZ
going VBG
to TO
be VB
difficult JJ
to TO
win VB
that DT
loyalty NN
back RB
. .
'' ''

The DT
Wall NNP
Street NNP
Journal NNP
's POS
`` ``
American JJ
Way NN
of IN
Buying VBG
'' ''
survey NN
this DT
year NN
found VBD
that IN
most RBS
consumers NNS
switch VBP
brands NNS
for IN
many NN
of IN
the DT
products NNS
they PRP
use VBP
. .

For IN
the DT
survey NN
, ,
Peter NNP
D. NNP
Hart NNP
Research NNP
Associates NNPS
asked VBD
some DT
2,000 CD
consumers NNS
, ,
including VBG
Mrs. NNP
Lombardi NNP
, ,
whether IN
they PRP
usually RB
buy VBP
one CD
brand NN
of IN
a DT
certain JJ
type NN
of IN
product NN
or CC
have VBP
no DT
brand NN
loyalty NN
. .

More RBR
than IN
half PDT
the DT
users NNS
of IN
17 CD
of IN
the DT
25 CD
products NNS
included VBD
in IN
the DT
survey NN
said VBD
they PRP
're VBP
brand NN
switchers NNS
. .

Overall RB
, ,
12 CD
% NN
of IN
consumers NNS
are VBP
n't RB
brand VBP
loyal JJ
for IN
any DT
of IN
the DT
25 CD
product NN
categories NNS
. .

About IN
47 CD
% NN
are VBP
loyal JJ
for IN
one CD
to TO
five CD
of IN
the DT
products NNS
. .

Only RB
2 CD
% NN
are VBP
brand NN
loyal JJ
in IN
16 CD
to TO
20 CD
of IN
the DT
categories NNS
, ,
and CC
no DT
one CD
is VBZ
loyal JJ
for IN
more JJR
than IN
20 CD
types NNS
of IN
products NNS
. .

For IN
such JJ
products NNS
as IN
canned JJ
vegetables NNS
and CC
athletic JJ
shoes NNS
, ,
devotion NN
to TO
a DT
single JJ
brand NN
was VBD
quite RB
low JJ
, ,
with IN
fewer JJR
than IN
30 CD
% NN
saying VBG
they PRP
usually RB
buy VBP
the DT
same JJ
brand NN
. .

Only RB
for IN
cigarettes NNS
, ,
mayonnaise NN
and CC
toothpaste NN
did VBD
more JJR
than IN
60 CD
% NN
of IN
users NNS
say VBP
they PRP
typically RB
stick VBP
with IN
the DT
same JJ
brand NN
. .

People NNS
tend VBP
to TO
be VB
most RBS
loyal JJ
to TO
brands NNS
that WDT
have VBP
distinctive JJ
flavors NNS
, ,
such JJ
as IN
cigarettes NNS
and CC
ketchup NN
. .

Kathie NNP
Huff NNP
, ,
a DT
respondent NN
in IN
the DT
Journal NNP
survey NN
from IN
Spokane NNP
, ,
Wash. NNP
, ,
says VBZ
her PRP$
husband NN
is VBZ
adamant JJ
about IN
eating VBG
only RB
Hunt NNP
's POS
ketchup NN
. .

He PRP
simply RB
ca MD
n't RB
stomach VB
the DT
taste NN
of IN
Heinz NNP
, ,
she PRP
says VBZ
. .

The DT
31-year-old JJ
homemaker NN
adds VBZ
, ,
`` ``
The DT
only RB
other JJ
thing NN
I PRP
'm VBP
really RB
loyal JJ
to TO
is VBZ
my PRP$
Virginia NNP
Slims NNPS
cigarettes NNS
. .

Coke NNP
and CC
Pepsi NNP
are VBP
all PDT
the DT
same JJ
to TO
me PRP
, ,
and CC
I PRP
usually RB
buy VBP
whichever WDT
brand VBP
of IN
coffee NN
happens VBZ
to TO
be VB
on IN
sale NN
. .
'' ''

Brand NN
imagery NN
plays VBZ
a DT
significant JJ
role NN
in IN
loyalty NN
to TO
such JJ
products NNS
as IN
cigarettes NNS
, ,
perfume NN
and CC
beer NN
. .

People NNS
often RB
stay VBP
with IN
a DT
particular JJ
brand NN
because IN
they PRP
want VBP
to TO
be VB
associated VBN
with IN
the DT
image VB
its PRP$
advertising NN
conveys VBZ
, ,
whether IN
that DT
's VBZ
macho JJ
Marlboro NNP
cigarettes NNS
or CC
Cher NNP
's POS
Uninhibited NNP
perfume NN
. .

Loyalty NN
lags VBZ
most RBS
for IN
utilitarian JJ
products NNS
like IN
trash NN
bags NNS
and CC
batteries NNS
. .

Only RB
23 CD
% NN
of IN
trash-bag NN
users NNS
in IN
the DT
Journal NNP
survey NN
usually RB
buy VB
the DT
same JJ
brand NN
, ,
and CC
just RB
29 CD
% NN
of IN
battery NN
buyers NNS
stick VBP
to TO
one CD
brand NN
. .

Underwear NN
scored VBD
a DT
middling JJ
36 CD
% NN
in IN
brand NN
loyalty NN
, ,
but CC
consumer NN
researchers NNS
say VBP
that DT
's VBZ
actually RB
quite RB
high JJ
for IN
such JJ
a DT
mundane JJ
product NN
. .
`` ``
In IN
the DT
past NN
, ,
you PRP
just RB
wore VBD
Fruit NNP
of IN
the DT
Loom NNP
and CC
did VBD
n't RB
care VB
, ,
'' ''
says VBZ
Peter NNP
Kim NNP
, ,
U.S. NNP
director NN
of IN
consumer NN
behavior NN
research NN
for IN
the DT
J. NNP
Walter NNP
Thompson NNP
ad NN
agency NN
. .

`` ``
The DT
high JJ
score NN
reflects VBZ
the DT
attempts NNS
to TO
make VB
underwear NN
more JJR
of IN
a DT
fashion NN
image NN
business NN
for IN
both DT
men NNS
and CC
women NNS
. .
'' ''

He PRP
believes VBZ
there EX
's VBZ
opportunity NN
for IN
a DT
smart JJ
gasoline NN
marketer NN
to TO
create VB
a DT
strong JJ
brand NN
image NN
and CC
more JJR
consumer NN
loyalty NN
. .

What WP
loyalty NN
there EX
is VBZ
to TO
gas VB
brands NNS
, ,
he PRP
believes VBZ
, ,
is VBZ
a DT
matter NN
of IN
stopping VBG
at IN
the DT
most RBS
conveniently RB
located VBN
service NN
stations NNS
. .

Brand NN
loyalty NN
was VBD
stronger JJR
among IN
older JJR
consumers NNS
in IN
the DT
Journal NNP
survey NN
. .

Nearly RB
one-fourth NN
of IN
participants NNS
age VBP
60 CD
and CC
older JJR
claim NN
brand NN
loyalty NN
for IN
more JJR
than IN
10 CD
of IN
the DT
25 CD
products NNS
in IN
the DT
survey NN
; :
only RB
9 CD
% NN
of IN
those DT
age NN
18 CD
to TO
29 CD
have VBP
such JJ
strong JJ
allegiance NN
. .

Higher-income JJR
people NNS
also RB
tend VBP
to TO
be VB
more JJR
brand NN
loyal JJ
these DT
days NNS
, ,
the DT
Journal NNP
survey NN
and CC
other JJ
research NN
studies NNS
indicate VBP
. .

Marketers NNS
speculate VBP
that IN
more RBR
affluent JJ
people NNS
tend VBP
to TO
lead VB
more RBR
pressured VBN
lives NNS
and CC
do VBP
n't RB
have VB
time NN
to TO
research VB
the DT
products NNS
they PRP
buy VBP
for IN
the DT
highest JJS
quality NN
and CC
most RBS
reasonable JJ
price NN
. .

An DT
established VBN
brand NN
name NN
is VBZ
insurance NN
that IN
at IN
least JJS
the DT
product NN
will MD
be VB
of IN
acceptable JJ
quality NN
, ,
if IN
not RB
always RB
the DT
best JJS
value NN
for IN
the DT
money NN
. .

It PRP
's VBZ
sort NN
of IN
loyalty NN
by IN
default NN
. .

Meanwhile RB
, ,
`` ``
the DT
bottom NN
end NN
of IN
the DT
market NN
is VBZ
becoming VBG
less RBR
loyal JJ
, ,
'' ''
says VBZ
Laurel NNP
Cutler NNP
, ,
vice NN
chairman NN
of IN
the DT
ad NN
agency NN
FCB\/Leber NNP
Katz NNP
Partners NNPS
. .

`` ``
They PRP
're VBP
buying VBG
whatever WDT
's POS
cheaper JJR
. .
'' ''

The DT
biggest JJS
wild JJ
card NN
in IN
the DT
brand NN
loyalty NN
game NN
: :
How WRB
those DT
hotly RB
pursued VBN
but CC
highly RB
unpredictable JJ
baby NN
boomers NNS
will MD
behave VB
as IN
they PRP
move VBP
into IN
middle NN
age NN
. .

They PRP
grew VBD
up IN
with IN
more JJR
brand NN
choices NNS
than IN
any DT
generation NN
and CC
have VBP
shown VBN
less JJR
allegiance NN
so RB
far RB
. .

But CC
now RB
that IN
they PRP
're VBP
settling VBG
down RB
and CC
raising VBG
families NNS
, ,
might MD
they PRP
also RB
show VB
more JJR
stability NN
in IN
their PRP$
brand NN
choices NNS
? .

Mr. NNP
Kim NNP
of IN
J. NNP
Walter NNP
Thompson NNP
does VBZ
n't RB
think VB
so RB
. .

He PRP
believes VBZ
baby NN
boomers NNS
will MD
continue VB
to TO
be VB
selective JJ
in IN
their PRP$
brand NN
loyalties NNS
. .

`` ``
Earlier JJR
generations NNS
were VBD
brand NN
loyal JJ
across IN
categories NNS
, ,
'' ''
he PRP
says VBZ
, ,
`` ``
but CC
boomers NNS
tend VBP
to TO
be VB
brand NN
loyal JJ
in IN
categories NNS
like IN
running VBG
shoes NNS
and CC
bottled JJ
water NN
, ,
but CC
less RBR
so RB
in IN
others NNS
like IN
toilet NN
paper NN
and CC
appliances NNS
. .
'' ''

While IN
not RB
as IN
brand NN
loyal JJ
as IN
in IN
the DT
past NN
, ,
consumers NNS
today NN
do VBP
n't RB
buy VB
products NNS
capriciously RB
, ,
either RB
. .

Rather RB
, ,
they PRP
tend VBP
to TO
have VB
a DT
set NN
of IN
two CD
or CC
three CD
favorites NNS
. .

Sometimes RB
, ,
they PRP
'll MD
choose VB
Ragu NNP
spaghetti NNS
sauce NN
; :
other JJ
times NNS
, ,
it PRP
will MD
be VB
Prego NNP
. .

Advertisers NNS
attribute VBP
this DT
shared VBN
loyalty NN
to TO
the DT
striking JJ
similarity NN
among IN
brands NNS
. .

If IN
a DT
more RBR
absorbent JJ
Pampers NNPS
hits VBZ
the DT
market NN
, ,
you PRP
can MD
be VB
sure JJ
a DT
new JJ
and CC
improved VBN
Huggies NNPS
wo MD
n't RB
be VB
far RB
behind RB
. .

The DT
BBDO NNP
Worldwide NNP
ad NN
agency NN
studied VBN
`` ``
brand NN
parity NN
'' ''
and CC
found VBD
that IN
consumers NNS
believe VBP
all DT
brands NNS
are VBP
about IN
the DT
same JJ
in IN
a DT
number NN
of IN
categories NNS
, ,
particularly RB
credit VBP
cards NNS
, ,
paper NN
towels NNS
, ,
dry JJ
soups NNS
and CC
snack NN
chips NNS
. .

`` ``
When WRB
there EX
's VBZ
a DT
clutter NN
of IN
brands NNS
, ,
consumers NNS
simplify VBP
the DT
complexity NN
by IN
telling VBG
themselves PRP
, ,
` ``
All DT
brands NNS
are VBP
the DT
same JJ
so RB
what WP
difference NN
does VBZ
it PRP
make VBP
which WDT
I PRP
buy VBP
, ,
' ''
'' ''
says VBZ
Karen NNP
Olshan NNP
, ,
a DT
senior JJ
vice NN
president NN
at IN
BBDO NNP
. .

`` ``
Too RB
often RB
, ,
advertising NN
imagery NN
has VBZ
n't RB
done VBN
a DT
good JJ
job NN
of IN
forging VBG
a DT
special JJ
emotional JJ
bond NN
between IN
a DT
brand NN
and CC
the DT
consumer NN
. .
'' ''

But CC
given VBN
such JJ
strong JJ
brand NN
disloyalty NN
, ,
some DT
marketers NNS
are VBP
putting VBG
renewed VBN
emphasis NN
on IN
image NN
advertising NN
. .

A DT
small JJ
but CC
growing VBG
number NN
of IN
companies NNS
are VBP
also RB
trying VBG
to TO
instill VB
more RBR
fervent JJ
brand NN
loyalty NN
through IN
such JJ
personalized VBN
direct-marketing NN
ploys NNS
as IN
catalogs NNS
, ,
magazines NNS
and CC
membership NN
clubs NNS
for IN
brand NN
users NNS
. .

While IN
discount NN
promotions NNS
are VBP
essential JJ
for IN
most RBS
brands NNS
, ,
some DT
companies NNS
concede VBP
they PRP
went VBD
overboard RB
in IN
shifting VBG
money NN
from IN
advertising NN
to TO
coupons NNS
, ,
refunds NNS
and CC
other JJ
sales NNS
incentives NNS
. .

Some DT
people NNS
argue VBP
that IN
strong JJ
brands NNS
can MD
afford VB
to TO
stop VB
advertising NN
for IN
a DT
time NN
because IN
of IN
the DT
residual JJ
impact NN
of IN
hundreds NNS
of IN
millions NNS
of IN
dollars NNS
spent VBD
on IN
advertising NN
through IN
the DT
years NNS
. .

But CC
most RBS
companies NNS
are VBP
too RB
afraid JJ
to TO
take VB
that DT
chance NN
. .

And CC
perhaps RB
with IN
good JJ
reason NN
. .

Says VBZ
Clayt NNP
Wilhite NNP
, ,
president NN
of IN
the DT
D'Arcy NNP
Masius NNP
ad NN
agency NN
's POS
U.S. NNP
division NN
, ,
`` ``
Every DT
time NN
24 CD
hours NNS
pass VBP
without IN
any DT
advertising NN
reinforcement NN
, ,
brand NN
loyalty NN
will MD
diminish VB
ever RB
so RB
slightly RB
-- :
even RB
for IN
a DT
powerful JJ
brand NN
like IN
Budweiser NNP
. .
'' ''

Consider VB
, ,
for IN
example NN
, ,
what WP
happened VBD
to TO
Maxwell NNP
House NNP
coffee NN
. .

The DT
Kraft NNP
General NNP
Foods NNPS
brand NN
stopped VBD
advertising NN
for IN
about IN
a DT
year NN
in IN
1987 CD
and CC
gave VBD
up IN
several JJ
market NN
share NN
points NNS
and CC
its PRP$
leadership NN
position NN
in IN
the DT
coffee NN
business NN
. .

But CC
since IN
returning VBG
to TO
advertising NN
, ,
Maxwell NNP
House NNP
has VBZ
regained VBN
the DT
lost VBN
share NN
and CC
is VBZ
running VBG
neck NN
and CC
neck NN
with IN
archrival JJ
Folgers NNP
. .

`` ``
Now RB
, ,
Philip NNP
Morris NNP
-LCB- (
Kraft NNP
General NNP
Foods NNPS
' POS
parent NN
company NN
-RCB- )
is VBZ
committed VBN
to TO
the DT
coffee NN
business NN
and CC
to TO
increased VB
advertising NN
for IN
Maxwell NNP
House NNP
, ,
'' ''
says VBZ
Dick NNP
Mayer NNP
, ,
president NN
of IN
the DT
General NNP
Foods NNP
USA NNP
division NN
. .

`` ``
Even RB
though IN
brand NN
loyalty NN
is VBZ
rather RB
strong JJ
for IN
coffee NN
, ,
we PRP
need VBP
advertising VBG
to TO
maintain VB
and CC
strengthen VB
it PRP
. .
'' ''

Campbell NNP
Soup NNP
Co. NNP
, ,
for IN
one CD
, ,
has VBZ
concluded VBN
that IN
it PRP
makes VBZ
good JJ
sense NN
to TO
focus VB
more JJR
on IN
its PRP$
most RBS
loyal JJ
customers NNS
than IN
on IN
people NNS
who WP
buy VBP
competitive JJ
brands NNS
. .

`` ``
The DT
probability NN
of IN
converting VBG
a DT
non-user NN
to TO
your PRP$
brand NN
is VBZ
about IN
three CD
in IN
1,000 CD
, ,
'' ''
says VBZ
Tony NNP
Adams NNP
, ,
the DT
company NN
's POS
vice NN
president NN
for IN
marketing NN
research NN
. .

`` ``
The DT
best JJS
odds NNS
are VBP
with IN
your PRP$
core NN
franchise NN
. .

Our PRP$
heavy JJ
users NNS
consume VBP
two CD
to TO
three CD
cans NNS
of IN
soup NN
a DT
week NN
, ,
and CC
we PRP
'd MD
like VB
to TO
increase VB
that DT
. .
'' ''

So RB
Campbell NNP
is VBZ
talking VBG
to TO
its PRP$
`` ``
brand NN
enthusiasts NNS
, ,
'' ''
probing VBG
their PRP$
psychological JJ
attachment NN
to TO
its PRP$
soup NN
. .
In IN
one CD
consumer NN
focus NN
group NN
, ,
a DT
fan NN
declared VBD
that IN
, ,
`` ``
Campbell NNP
's POS
soup NN
is VBZ
like IN
getting VBG
a DT
hug NN
from IN
a DT
friend NN
. .
'' ''

That DT
helped VBD
persuade VB
the DT
company NN
to TO
introduce VB
a DT
new JJ
advertising NN
slogan NN
: :
`` ``
A DT
warm JJ
hug NN
from IN
Campbell NNP
's POS
. .
'' ''

Insurers NNS
face VBP
the DT
prospect NN
of IN
paying VBG
out RP
billions NNS
of IN
dollars NNS
for IN
damages NNS
caused VBN
by IN
this DT
week NN
's POS
California NNP
earthquake NN
. .

Getting VBG
a DT
grip NN
on IN
the DT
extent NN
of IN
the DT
damages NNS
is VBZ
proving VBG
a DT
far RB
more RBR
difficult JJ
task NN
than IN
what WP
insurers NNS
faced VBN
after IN
Hurricane NNP
Hugo NNP
ripped VBD
through IN
the DT
Caribbean NNP
and CC
the DT
Carolinas NNPS
last JJ
month NN
. .

The DT
earthquake NN
's POS
toll NN
, ,
including VBG
possible JJ
deep JJ
structural JJ
damage NN
, ,
goes VBZ
far RB
beyond IN
the DT
more RBR
easily RB
observed VBN
damage NN
from IN
a DT
hurricane NN
, ,
says VBZ
George NNP
Reider NNP
, ,
a DT
vice NN
president NN
in IN
Aetna NNP
Life NNP
& CC
Casualty NNP
Insurance NNP
Co. NNP
's POS
claims NNS
division NN
. .

But CC
investors NNS
are VBP
betting VBG
that IN
the DT
financial JJ
and CC
psychological JJ
impact NN
of IN
the DT
earthquake NN
, ,
coming VBG
so RB
soon RB
after IN
the DT
hurricane NN
, ,
will MD
help VB
stem VB
more JJR
than IN
two CD
years NNS
of IN
intense JJ
price-cutting NN
wars NNS
among IN
business NN
insurers NNS
. .

Reflecting VBG
that DT
logic NN
, ,
insurance-company NN
stocks NNS
posted VBD
strong JJ
gains NNS
. .

Aetna NNP
and CC
other JJ
insurers NNS
are VBP
hiring VBG
engineers NNS
and CC
architects NNS
to TO
help VB
them PRP
assess VB
structural JJ
damage NN
. .

Most JJS
insurers NNS
already RB
have VBP
mobilized VBN
their PRP$
`` ``
catastrophe NN
'' ''
teams NNS
to TO
begin VB
processing NN
claims NNS
from IN
their PRP$
policyholders NNS
in IN
northern JJ
California NNP
. .

Since IN
commercial JJ
air NN
travel NN
is VBZ
interrupted VBN
, ,
Aetna NNP
, ,
based VBN
in IN
Hartford NNP
, ,
Conn. NNP
, ,
chartered JJ
three CD
planes NNS
to TO
fly VB
claims NNS
adjusters NNS
into IN
Sacramento NNP
and CC
then RB
planned VBN
for IN
them PRP
to TO
drive VB
to TO
the DT
Bay NNP
area NN
. .

About IN
25 CD
adjusters NNS
were VBD
dispatched VBN
yesterday NN
afternoon NN
, ,
along IN
with IN
laptop NN
computers NNS
, ,
cellular JJ
phones NNS
and CC
blank JJ
checks NNS
. .

Some DT
adjusters NNS
, ,
already RB
in IN
other JJ
parts NNS
of IN
California NNP
, ,
drove VBD
to TO
the DT
disaster NN
area NN
with IN
recreational JJ
vehicles NNS
and CC
mobile JJ
homes NNS
that WDT
could MD
be VB
used VBN
as IN
makeshift JJ
claims-processing NN
centers NNS
. .

Insurers NNS
will MD
be VB
advertising NN
800 CD
numbers NNS
-- :
probably RB
on IN
the DT
radio NN
-- :
that IN
policyholders NNS
can MD
call VB
to TO
get VB
assistance NN
on IN
how WRB
to TO
submit VB
claims NNS
. .

State NNP
Farm NNP
Mutual NNP
Automobile NNP
Insurance NNP
Co. NNP
, ,
the DT
largest JJS
home NN
and CC
auto NN
insurer NN
in IN
California NNP
, ,
believes VBZ
the DT
losses NNS
from IN
the DT
earthquake NN
could MD
be VB
somewhat RB
less JJR
than IN
the DT
$ $
475 CD
million CD
in IN
damages NNS
it PRP
expects VBZ
to TO
pay VB
out RP
for IN
claims NNS
resulting VBG
from IN
Hurricane NNP
Hugo NNP
. .

State NNP
Farm NNP
, ,
based VBN
in IN
Bloomington NNP
, ,
Ind. NNP
, ,
is VBZ
also RB
the DT
largest JJS
writer NN
of IN
personal-property NN
earthquake NN
insurance NN
in IN
California NNP
. .

Earthquake NN
insurance NN
is VBZ
sold VBN
as IN
a DT
separate JJ
policy NN
or CC
a DT
specific JJ
endorsement NN
`` ``
rider NN
'' ''
on IN
a DT
homeowner NN
's POS
policy NN
in IN
California NNP
, ,
because IN
of IN
the DT
area NN
's POS
vulnerability NN
to TO
earthquakes NNS
. .

State NNP
Farm NNP
said VBD
about IN
25 CD
% NN
of IN
its PRP$
policyholders NNS
in IN
California NNP
have VBP
also RB
purchased VBN
earthquake NN
insurance NN
. .

Allstate NNP
Insurance NNP
Co. NNP
, ,
a DT
unit NN
of IN
Sears NNP
, ,
Roebuck NNP
& CC
Co. NNP
, ,
said VBD
about IN
23 CD
% NN
of IN
its PRP$
personal JJ
property NN
policyholders NNS
-- :
about IN
28 CD
% NN
in IN
the DT
San NNP
Franciso NNP
area NN
-- :
also RB
have VBP
earthquake NN
coverage NN
. .

The DT
Association NNP
of IN
California NNP
Insurance NNP
Companies NNS
estimated VBD
damage NN
to TO
residential JJ
property NN
could MD
total VB
$ $
500 CD
million CD
, ,
but CC
only RB
$ $
100 CD
million CD
to TO
$ $
150 CD
million CD
is VBZ
insured VBN
, ,
it PRP
said VBD
. .

Officials NNS
from IN
the DT
American NNP
Insurance NNP
Association NNP
's POS
property-claim NN
service NN
division NN
, ,
which WDT
coordinates VBZ
the DT
efforts NNS
of IN
the DT
claims NNS
adjusters NNS
in IN
an DT
area NN
after IN
a DT
natural JJ
disaster NN
, ,
will MD
be VB
flying VBG
to TO
San NNP
Francisco NNP
today NN
. .

They PRP
expect VBP
to TO
have VB
a DT
preliminary JJ
estimate NN
of IN
the DT
damages NNS
in IN
a DT
day NN
or CC
two CD
. .
Roads NNP
and CC
bridges NNS
in IN
the DT
Bay NNP
area NN
appear VB
to TO
have VB
suffered VBN
some DT
of IN
the DT
most RBS
costly JJ
damage NN
. .

Highways NNS
, ,
such JJ
as IN
the DT
section NN
of IN
Interstate NNP
880 CD
that WDT
collapsed VBD
in IN
Oakland NNP
, ,
generally RB
do VBP
n't RB
have VB
insurance NN
coverage NN
. .

Industry NN
officials NNS
say VBP
the DT
Bay NNP
Bridge NNP
-- :
unlike IN
some DT
bridges NNS
-- :
has VBZ
no DT
earthquake NN
coverage NN
, ,
either DT
, ,
so RB
the DT
cost NN
of IN
repairing VBG
it PRP
probably RB
would MD
have VB
to TO
be VB
paid VBN
out IN
of IN
state NN
general JJ
operating NN
funds NNS
. .

However RB
, ,
the DT
bridge NN
, ,
which WDT
charges VBZ
a DT
$ $
1 CD
toll NN
each DT
way NN
, ,
does VBZ
have VBP
`` ``
loss NN
of IN
income NN
'' ''
insurance NN
to TO
replace VB
lost VBD
revenue NN
if IN
the DT
operation NN
of IN
the DT
bridge NN
is VBZ
interrupted VBN
for IN
more JJR
than IN
seven CD
days NNS
. .

That DT
coverage NN
is VBZ
provided VBN
by IN
a DT
syndicate NN
of IN
insurance NN
companies NNS
including VBG
Fireman NNP
's POS
Fund NNP
Corp. NNP
, ,
based VBN
in IN
Novato NNP
, ,
Calif. NNP
, ,
and CC
Cigna NNP
Corp. NNP
, ,
based VBN
in IN
Philadelphia NNP
. .

Earthquake-related JJ
claims NNS
are VBP
n't RB
expected VBN
to TO
cause VB
significant JJ
financial JJ
problems NNS
for IN
the DT
insurance NN
industry NN
as IN
a DT
whole NN
. .

Instead RB
, ,
even RB
with IN
the DT
liabilities NNS
of IN
two CD
natural JJ
disasters NNS
in IN
recent JJ
weeks NNS
, ,
analysts NNS
said VBD
the DT
total JJ
capital NN
of IN
the DT
industry NN
is VBZ
likely JJ
to TO
be VB
higher JJR
at IN
year NN
end NN
than IN
it PRP
was VBD
at IN
midyear NN
. .

Indeed RB
, ,
the DT
earthquake NN
could MD
contribute VB
to TO
a DT
turnaround NN
in IN
the DT
insurance NN
cycle NN
in IN
a DT
couple NN
of IN
ways NNS
. .

For IN
example NN
, ,
insurers NNS
may MD
seek VB
to TO
limit VB
their PRP$
future NN
exposure NN
to TO
catastrophes NNS
by IN
increasing VBG
the DT
amount NN
of IN
reinsurance NN
they PRP
buy VBP
. .

Such JJ
increased VBN
demand NN
for IN
reinsurance NN
, ,
along IN
with IN
the DT
losses NNS
the DT
reinsurers NNS
will MD
bear VB
from IN
these DT
two CD
disasters NNS
, ,
are VBP
likely JJ
to TO
spur VB
increases NNS
in IN
reinsurance NN
prices NNS
that WDT
will MD
later RB
be VB
translated VBN
into IN
an DT
overall JJ
price NN
rise NN
. .

Reinsurance NNP
is VBZ
protection NN
taken VBN
out IN
by IN
the DT
insurance NN
firms NNS
themselves PRP
. .

`` ``
We PRP
are VBP
saying VBG
this DT
is VBZ
the DT
breaking VBG
point NN
, ,
this DT
is VBZ
the DT
event NN
that WDT
will MD
change VB
the DT
psychology NN
of IN
the DT
marketplace NN
, ,
'' ''
said VBD
William NNP
Yankus NNP
, ,
an DT
analyst NN
with IN
Conning NNP
& CC
Co. NNP
, ,
a DT
Hartford NNP
firm NN
that WDT
specializes VBZ
in IN
the DT
insurance NN
industry NN
. .

His PRP$
firm NN
, ,
along IN
with IN
some DT
others NNS
, ,
issued VBN
new JJ
buy NN
recommendations NNS
on IN
insurer NN
stocks NNS
yesterday NN
. .

Among IN
the DT
insurance NN
stocks NNS
, ,
big JJ
gainers NNS
included VBD
American NNP
International NNP
Group NNP
, ,
up IN
$ $
3.25 CD
to TO
$ $
102.625 CD
; :
General NNP
Re NNP
Corp. NNP
, ,
up IN
$ $
2.75 CD
to TO
$ $
86.50 CD
; :
Aetna NNP
, ,
up IN
$ $
2.375 CD
to TO
$ $
59.50 CD
; :
and CC
Marsh NNP
& CC
McLennan NNP
Inc. NNP
, ,
up IN
$ $
3.125 CD
to TO
$ $
75.875 CD
. .

Still RB
, ,
a DT
few JJ
individual JJ
companies NNS
, ,
most RBS
likely RB
smaller JJR
ones NNS
, ,
could MD
be VB
devastated VBN
. .

`` ``
I PRP
think VBP
there EX
is VBZ
a DT
damned JJ
good JJ
chance NN
someone NN
is VBZ
going VBG
to TO
hit VB
the DT
skids NNS
on IN
this DT
, ,
'' ''
said VBD
Oppenheimer NNP
& CC
Co. NNP
analyst NN
Myron NNP
Picoult NNP
. .

He PRP
suspects VBZ
some DT
insurers NNS
who WP
had VBD
purchased VBN
reinsurance NN
to TO
limit VB
their PRP$
exposure NN
to TO
catastrophes NNS
will MD
discover VB
that DT
reinsurance NN
was VBD
used VBN
up IN
by IN
Hurricane NNP
Hugo NNP
. .

British JJ
, ,
West JJ
German NN
, ,
Scandinavian NNP
and CC
other JJ
overseas JJ
insurers NNS
are VBP
bracing VBG
for IN
big JJ
claims NNS
from IN
the DT
San NNP
Francisco NNP
earthquake NN
disaster NN
. .

Although IN
it PRP
's VBZ
unclear JJ
how WRB
much JJ
exposure NN
the DT
London NNP
market NN
will MD
face VB
, ,
U.K. NNP
underwriters NNS
traditionally RB
have VBP
a DT
large JJ
reinsurance NN
exposure NN
to TO
U.S. NNP
catastrophe NN
coverage NN
. .

Jack NNP
Byrne NNP
, ,
chairman NN
of IN
Fireman NNP
's POS
Fund NNP
, ,
said VBD
this DT
disaster NN
will MD
test VB
the DT
catastrophe NN
reinsurance NN
market NN
, ,
causing VBG
these DT
rates NNS
to TO
soar VB
. .

The DT
catastrophe NN
losses NNS
sustained VBN
by IN
insurers NNS
this DT
year NN
will MD
probably RB
be VB
the DT
worst JJS
on IN
an DT
inflation-adjusted JJ
basis NN
since IN
1906 CD
-- :
when WRB
another DT
earthquake NN
sparked VBD
the DT
Great NNP
San NNP
Francisco NNP
Fire NNP
. .

Orin NNP
Kramer NNP
, ,
an DT
insurance NN
consultant NN
in IN
New NNP
York NNP
, ,
estimates VBZ
that IN
the DT
1906 CD
San NNP
Francisco NNP
destruction NN
, ,
on IN
an DT
inflation-adjusted JJ
basis NN
, ,
included VBD
insured VBN
losses NNS
of IN
$ $
5.8 CD
billion CD
. .

He PRP
is VBZ
estimating VBG
this DT
week NN
's POS
disaster NN
will MD
generate VB
insured VBN
losses NNS
of IN
$ $
2 CD
billion CD
to TO
$ $
4 CD
billion CD
, ,
following VBG
about RB
$ $
4 CD
billion CD
in IN
costs NNS
to TO
insurers NNS
from IN
Hurricane NNP
Hugo NNP
. .

Silicon NNP
Graphics NNP
Inc. NNP
's POS
first-quarter JJ
profit NN
rose VBD
sharply RB
to TO
$ $
5.2 CD
million CD
, ,
or CC
28 CD
cents NNS
a DT
share NN
, ,
from IN
$ $
1 CD
million CD
, ,
or CC
six CD
cents NNS
a DT
share NN
, ,
a DT
year NN
ago RB
. .

The DT
maker NN
of IN
computer NN
workstations NNS
said VBD
a DT
surge NN
of IN
government NN
orders NNS
contributed VBD
to TO
the DT
increase NN
. .

Revenue NN
rose VBD
95 CD
% NN
to TO
$ $
86.4 CD
million CD
from IN
$ $
44.3 CD
million CD
the DT
year NN
earlier RBR
. .

In IN
national JJ
over-the-counter JJ
trading NN
, ,
the DT
company NN
closed VBD
yesterday NN
at IN
$ $
23.25 CD
a DT
share NN
, ,
down RB
25 CD
cents NNS
. .

Hunter NNP
Environmental NNP
Services NNP
Inc. NNP
said VBD
it PRP
reached VBD
a DT
preliminary JJ
accord NN
on IN
the DT
sale NN
of IN
its PRP$
environmental JJ
consulting NN
and CC
services NNS
business NN
for IN
about RB
$ $
40 CD
million CD
and CC
assumption NN
of IN
related VBN
debt NN
. .

The DT
buyer NN
was VBD
n't RB
identified VBN
. .

The DT
company NN
said VBD
it PRP
also RB
is VBZ
making VBG
progress NN
in IN
negotiating VBG
the DT
buy-out NN
of IN
its PRP$
design NN
division NN
by IN
management NN
. .

In IN
addition NN
, ,
Hunter NNP
said VBD
it PRP
will MD
use VB
proceeds NNS
from IN
a DT
private JJ
placement NN
of IN
$ $
8 CD
million CD
of IN
preferred JJ
shares NNS
to TO
purchase VB
an DT
interest NN
in IN
a DT
start-up JJ
company NN
to TO
underwrite VB
environmental JJ
impairment NN
insurance NN
. .

Hunter NNP
wants VBZ
to TO
concentrate VB
its PRP$
resources NNS
on IN
the DT
insurance NN
business NN
and CC
on IN
a DT
project NN
to TO
store VB
hazardous JJ
wastes NNS
in IN
salt NN
domes NNS
. .

Jaguar NNP
PLC NNP
's POS
chairman NN
said VBD
he PRP
hopes VBZ
to TO
reach VB
a DT
friendly JJ
pact NN
with IN
General NNP
Motors NNPS
Corp. NNP
within IN
a DT
month NN
that WDT
may MD
involve VB
the DT
British JJ
luxury-car NN
maker NN
's VBZ
producing VBG
a DT
cheaper JJR
executive JJ
model NN
. .

Sir NNP
John NNP
Egan NNP
told VBD
reporters NNS
at IN
London NNP
's POS
Motorfair NNP
yesterday NN
he PRP
`` ``
would MD
be VB
disappointed VBN
if IN
we PRP
could MD
n't RB
do VB
-LCB- (
the DT
deal NN
-RCB- )
within IN
a DT
month NN
. .
'' ''

He PRP
said VBD
the DT
tie-up NN
would MD
mean VB
Jaguar NNP
could MD
`` ``
develop VB
cars NNS
down JJ
range NN
-LCB- (
in IN
price NN
-RCB- )
from IN
where WRB
we PRP
are VBP
'' ''
by IN
offering NN
access NN
to TO
GM NNP
's POS
high-volume JJ
parts NNS
production NN
. .

Besides IN
creating VBG
joint JJ
manufacturing NN
ventures NNS
, ,
the DT
accord NN
is VBZ
expected VBN
to TO
give VB
GM NNP
about IN
a DT
15 CD
% NN
stake NN
that IN
eventually RB
would MD
rise VB
to TO
about IN
30 CD
% NN
. .

Jaguar NN
figures VBZ
a DT
friendly JJ
alliance NN
with IN
GM NNP
will MD
fend VB
off IN
unwelcome JJ
advances NNS
from IN
Ford NNP
Motor NNP
Co NNP
. .

But CC
Ford NNP
, ,
Jaguar NNP
's POS
biggest JJS
shareholder NN
since IN
lifting VBG
its PRP$
stake NN
to TO
10.4 CD
% NN
this DT
week NN
, ,
is VBZ
pressing VBG
harder JJR
for IN
talks NNS
with IN
Sir NNP
John NNP
. .

`` ``
We PRP
're VBP
getting VBG
to TO
the DT
point NN
where WRB
we PRP
are VBP
going VBG
to TO
have VB
to TO
meet VB
'' ''
with IN
him PRP
, ,
one CD
Ford NNP
official NN
said VBD
yesterday NN
. .

Ford NNP
probably RB
will MD
renew VB
its PRP$
request NN
for IN
such JJ
a DT
meeting NN
soon RB
, ,
he PRP
added VBD
. .

Sir NNP
John NNP
has VBZ
spurned VBN
Ford NNP
's POS
advances NNS
since IN
the DT
U.S. NNP
auto NN
giant NN
launched VBD
a DT
surprise NN
bid NN
for IN
as RB
much JJ
as IN
15 CD
% NN
of IN
Jaguar NNP
last JJ
month NN
. .

Ford NNP
has VBZ
signaled VBN
it PRP
might MD
acquire VB
a DT
majority NN
interest NN
later RB
. .
`` ``
I PRP
'm VBP
not RB
obligated VBN
to TO
sit VB
down RB
and CC
talk VB
to TO
anybody NN
, ,
'' ''
the DT
Jaguar NNP
chairman NN
asserted VBD
yesterday NN
. .

He PRP
did VBD
n't RB
rule VB
out RP
negotiations NNS
with IN
Ford NNP
, ,
however RB
. .

The DT
fiercely RB
proud JJ
but CC
financially RB
strapped VBN
British JJ
company NN
prefers VBZ
to TO
remain VB
independent JJ
and CC
publicly RB
held VBN
, ,
despite IN
Ford NNP
's POS
promise NN
of IN
access NN
to TO
cash VB
and CC
technological JJ
know-how NN
. .

Sir NNP
John NNP
noted VBD
that IN
GM NNP
, ,
a DT
longtime JJ
Jaguar NNP
supplier NN
, ,
agrees VBZ
`` ``
we PRP
should MD
remain VB
an DT
independent JJ
company NN
. .
'' ''

He PRP
said VBD
Jaguar NNP
started VBD
negotiating VBG
with IN
GM NNP
and CC
several JJ
other JJ
car NN
makers NNS
over IN
a DT
year NN
ago RB
, ,
but CC
the DT
rest NN
`` ``
dropped VBN
by IN
the DT
wayside NN
ever RB
since IN
the DT
share NN
price NN
went VBD
above IN
# #
4 CD
-LRB- (
$ $
6.30 CD
-RRB- )
a DT
share NN
. .
'' ''

Jaguar NN
shares NNS
stood VBD
at IN
405 CD
pence NN
before IN
Ford NNP
's POS
initial JJ
announcement NN
, ,
but CC
the DT
subsequent JJ
takeover NN
frenzy NN
has VBZ
driven VBN
them PRP
up RB
. .

The DT
stock NN
traded VBD
late JJ
yesterday NN
on IN
London NNP
's POS
stock NN
exchange NN
at IN
673 CD
pence NN
, ,
up IN
19 CD
pence NN
. .

Developing VBG
an DT
executive-model JJ
range NN
would MD
mark VB
a DT
major JJ
departure NN
for IN
Britain NNP
's POS
leading VBG
luxury-car NN
maker NN
. .

A DT
typical JJ
British JJ
executive JJ
car NN
is VBZ
mass NN
produced VBN
and CC
smaller JJR
than IN
a DT
luxury NN
car NN
. .

It PRP
generally RB
fetches VBZ
no DT
more JJR
than IN
# #
25,000 CD
-LRB- (
$ $
39,400 CD
-RRB- )
-- :
roughly RB
# #
16,000 CD
less JJR
than IN
the DT
highest-priced JJS
Jaguars NNPS
, ,
which WDT
are VBP
all DT
known VBN
for IN
their PRP$
hand-crafted JJ
leather NN
work NN
. .

`` ``
We PRP
have VBP
designs NNS
for IN
such JJ
-LCB- (
executive NN
-RCB- )
cars NNS
, ,
but CC
have VBP
never RB
been VBN
able JJ
to TO
develop VB
them PRP
, ,
'' ''
Sir NNP
John NNP
said VBD
. .

GM NNP
's POS
help NN
would MD
`` ``
make VB
it PRP
possible JJ
-LCB- (
for IN
Jaguar NNP
-RCB- )
to TO
build VB
a DT
wider JJR
range NN
of IN
cars NNS
. .
'' ''

An DT
executive JJ
model NN
would MD
significantly RB
boost VB
Jaguar NNP
's POS
yearly JJ
output NN
of IN
50,000 CD
cars NNS
. .

`` ``
You PRP
are VBP
talking VBG
about IN
a DT
couple NN
hundred CD
thousand CD
a DT
year NN
, ,
'' ''
said VBD
Bob NNP
Barber NNP
, ,
an DT
auto-industry NN
analyst NN
at IN
U.K. NNP
brokerage NN
James NNP
Capel NNP
& CC
Co NNP
. .

A DT
pact NN
with IN
GM NNP
may MD
emerge VB
in IN
as RB
little JJ
as IN
two CD
weeks NNS
, ,
according VBG
to TO
sources NNS
close VBP
to TO
the DT
talks NNS
. .

The DT
deal NN
would MD
require VB
approval NN
by IN
a DT
majority NN
of IN
Jaguar NNP
shareholders NNS
. .

`` ``
We PRP
have VBP
to TO
make VB
it PRP
attractive JJ
enough RB
that IN
-LCB- (
holders NNS
-RCB- )
would MD
accept VB
it PRP
, ,
'' ''
Sir NNP
John NNP
said VBD
. .

That DT
may MD
be VB
difficult JJ
, ,
the DT
Jaguar NNP
chairman NN
acknowledged VBD
, ,
`` ``
when WRB
you PRP
have VBP
somebody NN
else JJ
breathing NN
down RB
your PRP$
neck NN
. .

'' ''
Ford NNP
probably RB
would MD
try VB
to TO
kill VB
the DT
proposal NN
by IN
enlisting VBG
support NN
from IN
U.S. NNP
takeover-stock JJ
speculators NNS
and CC
holding VBG
out RP
the IN
carrot NN
of IN
a DT
larger JJR
bid NN
later RB
, ,
said VBD
Stephen NNP
Reitman NNP
, ,
European JJ
auto NN
analyst NN
at IN
London NNP
brokers NNS
UBS NNP
Phillips NNP
& CC
Drew NNP
. .

Ford NNP
ca MD
n't RB
make VB
a DT
full-fledged JJ
bid NN
for IN
Jaguar NNP
until IN
U.K. NNP
government NN
restrictions NNS
expire VBP
. .

The DT
anti-takeover JJ
measure NN
prevents VBZ
any DT
outside JJ
investor NN
from IN
buying VBG
more JJR
than IN
15 CD
% NN
of IN
Jaguar NNP
shares NNS
without IN
permission NN
until IN
Dec. NNP
31 CD
, ,
1990 CD
. .

But CC
with IN
its PRP$
10.4 CD
% NN
stake NN
, ,
Ford NNP
can MD
convene VB
a DT
special JJ
Jaguar NNP
shareholders NNS
' POS
meeting NN
and CC
urge VB
them PRP
to TO
drop VB
the DT
restrictions NNS
prematurely RB
. .

`` ``
It PRP
's VBZ
a DT
very RB
valuable JJ
weapon NN
in IN
their PRP$
armory NN
, ,
'' ''
which WDT
could MD
enable VB
Ford NNP
to TO
bid VB
sooner RBR
for IN
Jaguar NNP
, ,
observed VBN
Mr. NNP
Barber NNP
of IN
James NNP
Capel NNP
. .

Otherwise RB
, ,
Jaguar NNP
may MD
have VB
to TO
tolerate VB
the DT
two CD
U.S. NNP
auto NN
giants NNS
each DT
owning VBG
a DT
15 CD
% NN
stake NN
for IN
more JJR
than IN
a DT
year NN
. .

`` ``
It PRP
would MD
be VB
difficult JJ
to TO
see VB
how WRB
a DT
car NN
company NN
can MD
be VB
owned VBN
by IN
a DT
collective NN
, ,
'' ''
Sir NNP
John NNP
said VBD
. .

`` ``
It PRP
has VBZ
never RB
been VBN
done VBN
before RB
, ,
but CC
there EX
's VBZ
always RB
a DT
first JJ
. .

Although IN
two CD
Baby NNP
Bells NNPS
showed VBD
strong JJ
growth NN
in IN
access NN
lines NNS
, ,
usage NN
and CC
unregulated JJ
business NN
revenue NN
, ,
one CD
reported VBD
a DT
modest JJ
gain NN
in IN
third-quarter JJ
net NN
while IN
the DT
other NN
posted VBD
a DT
small JJ
drop NN
. .

Ameritech NNP
Corp. NNP
's POS
earnings NNS
increased VBN
2.8 CD
% NN
, ,
after IN
strong JJ
revenue NN
gains NNS
were VBD
offset VBN
somewhat RB
by IN
refunds NNS
and CC
rate NN
reductions NNS
imposed VBN
by IN
regulators NNS
in IN
its PRP$
Midwest NNP
territory NN
. .

BellSouth NNP
Corp. NNP
's POS
third-quarter JJ
earnings NNS
dropped VBD
3.8 CD
% NN
as IN
a DT
result NN
of IN
debt NN
refinancing NN
, ,
the DT
recent JJ
acquisition NN
of IN
a DT
cellular JJ
and CC
paging NN
property NN
and CC
rate NN
reductions NNS
in IN
its PRP$
Southeast NNP
territory NN
. .

BellSouth NNP
At IN
BellSouth NNP
, ,
based VBN
in IN
Atlanta NNP
, ,
customer NN
access NN
lines NNS
grew VBN
by IN
162,000 CD
, ,
or CC
3.5 CD
% NN
, ,
during IN
the DT
12-month JJ
period NN
ended VBN
Sept NNP
. .

For IN
the DT
third JJ
quarter NN
, ,
total JJ
operating NN
revenue NN
grew VBD
2.6 CD
% NN
to TO
$ $
3.55 CD
billion CD
from IN
$ $
3.46 CD
billion CD
. .

Total JJ
operating NN
expenses NNS
increased VBN
3.5 CD
% NN
to TO
$ $
2.78 CD
billion CD
from IN
$ $
2.69 CD
billion CD
. .

Overall JJ
access NN
minutes NNS
of IN
use NN
increased VBN
10.3 CD
% NN
and CC
toll NN
messages NNS
jumped VBD
5.2 CD
% NN
. .

BellSouth NNP
Chairman NNP
and CC
Chief NNP
Executive NNP
Officer NNP
John NNP
L. NNP
Clendenin NNP
said VBD
three CD
factors NNS
accounted VBD
for IN
the DT
drop NN
in IN
third-quarter JJ
earnings NNS
. .

The DT
refinancing NN
of IN
$ $
481 CD
million CD
in IN
long-term JJ
debt NN
reduced VBD
net JJ
income NN
by IN
$ $
22 CD
million CD
, ,
or CC
five CD
cents NNS
a DT
share NN
, ,
but CC
in IN
the DT
long JJ
run NN
will MD
save VB
more JJR
than IN
$ $
250 CD
million CD
in IN
interest NN
costs NNS
. .

The DT
company NN
previously RB
said VBD
that IN
the DT
recent JJ
acquisition NN
of IN
Mobile NNP
Communications NNP
Corp. NNP
of IN
America NNP
would MD
dilute VB
1989 CD
earnings NNS
by IN
about IN
3 CD
% NN
. .

In IN
addition NN
, ,
earnings NNS
were VBD
reduced VBN
by IN
rate NN
reductions NNS
in IN
Florida NNP
, ,
Kentucky NNP
, ,
Alabama NNP
, ,
Tennessee NNP
and CC
Louisiana NNP
. .

Ameritech NNP

At IN
Ameritech NNP
, ,
based VBN
in IN
Chicago NNP
, ,
customer NN
access NN
lines NNS
increased VBN
by IN
402,000 CD
, ,
or CC
2.6 CD
% NN
, ,
and CC
cellular JJ
mobile JJ
lines NNS
increased VBN
by IN
80,000 CD
, ,
or CC
62.3 CD
% NN
, ,
for IN
the DT
12-month JJ
period NN
ended VBN
Sept. NNP
30 CD
. .

For IN
the DT
third JJ
quarter NN
, ,
revenue NN
increased VBN
1.9 CD
% NN
to TO
$ $
2.55 CD
billion CD
from IN
$ $
2.51 CD
billion CD
. .

Operating NN
expenses NNS
increased VBN
2.6 CD
% NN
to TO
$ $
2.04 CD
billion CD
, ,
including VBG
one-time JJ
pretax JJ
charges NNS
of IN
$ $
40 CD
million CD
for IN
labor NN
contract NN
signing VBG
bonuses NNS
. .

Local JJ
service NN
revenue NN
increased VBN
3.5 CD
% NN
and CC
directory NN
and CC
unregulated JJ
business NN
revenue NN
jumped VBD
9.5 CD
% NN
. .

But CC
network NN
access NN
revenue NN
dropped VBD
4 CD
% NN
and CC
toll NN
revenue NN
dropped VBD
1.4 CD
% NN
. .

a DT
- :
reflects VBZ
2-for-1 JJ
stock NN
split NN
effective JJ
Dec. NNP
30 CD
, ,
1988 CD
. .

b NN
- :
reflects VBZ
extraordinary JJ
loss NN
of IN
five CD
cents NNS
a DT
share NN
for IN
early JJ
debt NN
retirement NN
. .

c NN
- :
reflects VBZ
extraordinary JJ
loss NN
of IN
five CD
cents NNS
a DT
share NN
and CC
extraordinary JJ
gain NN
of IN
14 CD
cents NNS
a DT
share NN
from IN
cumulative JJ
effect NN
of IN
accounting NN
change NN
. .

The DT
Wall NNP
Street NNP
Journal NNP
`` ``
American JJ
Way NN
of IN
Buying VBG
'' ''
Survey NNP
consists VBZ
of IN
two CD
separate JJ
, ,
door-to-door JJ
nationwide JJ
polls NNS
conducted VBN
for IN
the DT
Journal NNP
by IN
Peter NNP
D. NNP
Hart NNP
Research NNP
Associates NNPS
and CC
the DT
Roper NNP
Organization NNP
. .

The DT
two CD
surveys NNS
, ,
which WDT
asked VBD
different JJ
questions NNS
, ,
were VBD
conducted VBN
using VBG
national JJ
random JJ
probability NN
samples NNS
. .

The DT
poll NN
conducted VBN
by IN
Peter NNP
D. NNP
Hart NNP
Research NNP
Associates NNPS
interviewed VBN
2,064 CD
adults NNS
age VBP
18 CD
and CC
older JJR
from IN
June NNP
15 CD
to TO
June NNP
30 CD
, ,
1989 CD
. .

The DT
poll NN
conducted VBN
by IN
the DT
Roper NNP
Organization NNP
interviewed VBD
2,002 CD
adults NNS
age VBP
18 CD
and CC
older JJR
from IN
July NNP
7 CD
to TO
July NNP
15 CD
, ,
1989 CD
. .

Responses NNS
were VBD
weighted JJ
on IN
the DT
basis NN
of IN
age NN
and CC
gender NN
to TO
conform VB
with IN
U.S. NNP
Census NNP
data NNS
. .

For IN
each DT
poll NN
, ,
the DT
odds NNS
are VBP
19 CD
out IN
of IN
20 CD
that IN
if IN
pollsters NNS
had VBD
sought VBN
to TO
survey VB
every DT
household NN
in IN
the DT
U.S. NNP
using VBG
the DT
same JJ
questionnaire NN
, ,
the DT
findings NNS
would MD
differ VB
from IN
these DT
poll NN
results NNS
by IN
no DT
more JJR
than IN
2 CD
1\/2 CD
percentage NN
points NNS
in IN
either DT
direction NN
. .

The DT
margin NN
of IN
error NN
for IN
subgroups NNS
-- :
for IN
example NN
, ,
married VBN
women NNS
with IN
children NNS
at IN
home NN
-- :
would MD
be VB
larger JJR
. .

In IN
addition NN
, ,
in IN
any DT
survey NN
, ,
there EX
is VBZ
always RB
the DT
chance NN
that IN
other JJ
factors NNS
such JJ
as IN
question NN
wording NN
could MD
introduce VB
errors NNS
into IN
the DT
findings NNS
. .

Program NN
traders NNS
were VBD
buying VBG
and CC
selling VBG
at IN
full JJ
steam NN
Monday NNP
, ,
the DT
first JJ
trading NN
session NN
after IN
the DT
stock NN
market NN
's POS
190.58-point JJ
plunge NN
Friday NNP
. .

They PRP
accounted VBD
for IN
a DT
hefty JJ
16 CD
% NN
of IN
New NNP
York NNP
Stock NNP
Exchange NNP
volume NN
Monday NNP
, ,
the DT
fourth JJ
busiest JJS
session NN
ever RB
. .

On IN
Friday NNP
, ,
13 CD
% NN
of IN
volume NN
was VBD
in IN
computer-guided JJ
program NN
trades NNS
. .

In IN
August NNP
, ,
by IN
contrast NN
, ,
program NN
trading NN
averaged VBD
10.3 CD
% NN
of IN
daily JJ
Big NNP
Board NNP
turnover NN
. .

Program NN
traders NNS
were VBD
publicly RB
castigated VBN
following VBG
the DT
508-point JJ
crash NN
Oct. NNP
19 CD
, ,
1987 CD
, ,
and CC
a DT
number NN
of IN
brokerage NN
firms NNS
pulled VBD
back RB
from IN
using VBG
this DT
strategy NN
for IN
a DT
while NN
. .

But CC
as IN
the DT
outcry NN
faded VBN
by IN
the DT
spring NN
of IN
1988 CD
, ,
they PRP
resumed VBD
. .

Some DT
observers NNS
thought VBD
that IN
after IN
Friday NNP
's POS
sharp JJ
drop NN
, ,
the DT
firms NNS
would MD
rein VB
in IN
their PRP$
program NN
traders NNS
to TO
avoid VB
stoking VBG
more JJR
controversy NN
. .

But CC
the DT
statistics NNS
released VBD
yesterday NN
show NN
the DT
firms NNS
did VBD
nothing NN
of IN
the DT
sort NN
. .

One CD
reason NN
, ,
they PRP
said VBD
, ,
was VBD
that IN
the DT
official JJ
reports NNS
on IN
the DT
1987 CD
crash NN
exonerated VBD
program NN
trading NN
as IN
a DT
cause NN
. .

Stock-index NN
arbitrage NN
is VBZ
the DT
most RBS
controversial JJ
form NN
of IN
program NN
trading NN
because IN
it PRP
accelerates VBZ
market NN
moves NNS
, ,
if IN
not RB
actually RB
causing VBG
them PRP
. .

In IN
it PRP
, ,
traders NNS
buy VBP
or CC
sell VB
stocks NNS
and CC
offset VB
those DT
positions NNS
in IN
stock-index NN
futures NNS
contracts NNS
to TO
profit VB
from IN
fleeting JJ
price NN
discrepancies NNS
. .

Under IN
the DT
exchange NN
's POS
definitions NNS
, ,
program NN
trading NN
also RB
describes VBZ
a DT
number NN
of IN
other JJ
strategies NNS
that IN
, ,
in IN
the DT
opinion NN
of IN
some DT
traders NNS
, ,
do VBP
n't RB
cause VB
big JJ
swings NNS
in IN
the DT
market NN
. .

The DT
Big NNP
Board NNP
's POS
disclosure NN
of IN
program NN
trading NN
activity NN
on IN
these DT
two CD
days NNS
was VBD
unusual JJ
. .

Though IN
it PRP
collects VBZ
such JJ
data NNS
daily JJ
, ,
its PRP$
monthly JJ
reports NNS
on IN
program NN
trading NN
usually RB
come VB
out IN
about IN
three CD
weeks NNS
after IN
each DT
month NN
ends NNS
. .

The DT
September NNP
figures NNS
are VBP
due JJ
to TO
be VB
released VBN
this DT
week NN
. .

The DT
Big NNP
Board NNP
declined VBD
to TO
name VB
the DT
Wall NNP
Street NNP
firms NNS
involved VBN
in IN
the DT
activity NN
Friday NNP
and CC
Monday NNP
, ,
or CC
the DT
type NN
of IN
strategies NNS
used VBN
. .

But CC
traders NNS
on IN
the DT
exchange NN
floor NN
, ,
who WP
can MD
observe VB
the DT
computer-guided JJ
trading NN
activity NN
on IN
monitor NN
screens NNS
, ,
said VBD
most RBS
of IN
the DT
top JJ
program-trading JJ
firms NNS
were VBD
active JJ
both DT
days NNS
. .

Through IN
August NNP
, ,
the DT
top JJ
five CD
program NN
trading NN
firms NNS
in IN
volume NN
were VBD
Morgan NNP
Stanley NNP
& CC
Co. NNP
, ,
Kidder NNP
, ,
Peabody NNP
& CC
Co. NNP
, ,
Merrill NNP
Lynch NNP
& CC
Co. NNP
, ,
PaineWebber NNP
Group NNP
Inc. NNP
and CC
Salomon NNP
Brothers NNP
Inc NNP
. .

Though IN
brokerage NN
officials NNS
defended VBD
their PRP$
use NN
of IN
program NN
trading NN
, ,
one CD
sign NN
of IN
what WP
an DT
issue NN
it PRP
remains VBZ
was VBD
that IN
few JJ
executives NNS
would MD
comment VB
on IN
the DT
record NN
. .

Besides IN
reciting VBG
the DT
pardon NN
for IN
program NN
trading NN
contained VBD
in IN
the DT
Brady NNP
Commission NNP
report NN
, ,
they PRP
said VBD
stock-index NN
arbitrage NN
was VBD
actually RB
needed VBN
Monday NNP
to TO
restore VB
the DT
markets NNS
' POS
equilibrium NN
. .

On IN
Friday NNP
, ,
the DT
stock-index NN
futures NNS
market NN
was VBD
unhinged VBN
from IN
the DT
stock NN
market NN
when WRB
the DT
Chicago NNP
Mercantile NNP
Exchange NNP
halted VBD
trading NN
in IN
Standard NNP
& CC
Poor NNP
's POS
500 CD
futures NNS
contract VBP
-- :
a DT
`` ``
circuit NN
breaker NN
'' ''
procedure NN
instituted VBN
after IN
the DT
1987 CD
crash NN
and CC
implemented VBN
for IN
the DT
first JJ
time NN
. .

Futures NNS
trading NN
resumed VBD
a DT
half-hour NN
later RB
, ,
but CC
the DT
session NN
ended VBD
shortly RB
thereafter RB
, ,
leaving VBG
the DT
stock NN
market NN
set VBN
up IN
for IN
more JJR
sell NN
programs NNS
, ,
traders NNS
said VBD
. .

By IN
Monday NNP
morning NN
, ,
they PRP
said VBD
, ,
stock-index NN
arbitrage NN
sell NN
programs NNS
helped VBD
re-establish VB
the DT
link NN
between IN
stocks NNS
and CC
futures NNS
. .

But CC
stunning JJ
volatility NN
was VBD
produced VBN
in IN
the DT
process NN
. .

The DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
plunged VBD
a DT
breathtaking JJ
63.52 CD
points NNS
in IN
the DT
first JJ
40 CD
minutes NNS
of IN
trading NN
Monday NNP
as IN
stock-index NN
arbitrage NN
sell NN
programs NNS
kicked VBD
in RB
. .

At IN
about IN
10:10 CD
a.m. NN
EDT NNP
, ,
the DT
market NN
abruptly RB
turned VBD
upward RB
on IN
stock-index NN
arbitrage NN
buy NN
programs NNS
. .

By IN
day NN
's POS
end NN
, ,
the DT
Dow NNP
industrials NNS
had VBD
rebounded VBN
88.12 CD
points NNS
, ,
or CC
nearly RB
half NN
of IN
Friday NNP
's POS
drop NN
. .

FREDERICK NNP
'S VBZ
OF IN
HOLLYWOOD NNP
Inc. NNP
, ,
Los NNP
Angeles NNP
, ,
said VBD
its PRP$
board NN
voted VBD
a DT
50 CD
% NN
increase NN
in IN
the DT
specialty NN
boutique-store NN
operator NN
's POS
semiannual JJ
dividend NN
, ,
to TO
five CD
cents NNS
a DT
common JJ
share NN
. .

The DT
dividend NN
is VBZ
payable JJ
Dec. NNP
15 CD
to TO
stock VB
of IN
record NN
Nov. NNP
15 CD
. .

Valley NNP
National NNP
Corp. NNP
reported VBD
a DT
third-quarter JJ
net JJ
loss NN
of IN
$ $
72.2 CD
million CD
, ,
or CC
$ $
3.65 CD
a DT
share NN
, ,
and CC
suspended VBD
its PRP$
quarterly JJ
dividend NN
because IN
of IN
potential JJ
losses NNS
on IN
its PRP$
Arizona NNP
real JJ
estate NN
holdings NNS
. .

The DT
Phoenix-based JJ
holding NN
company NN
for IN
Arizona NNP
's POS
largest JJS
bank NN
said VBD
it PRP
added VBD
$ $
121 CD
million CD
to TO
its PRP$
allowance NN
for IN
losses NNS
on IN
loans NNS
and CC
for IN
real JJ
estate NN
owned VBN
. .

The DT
company NN
earned VBD
$ $
18.7 CD
million CD
, ,
or CC
95 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

For IN
the DT
nine CD
months NNS
, ,
Valley NNP
National NNP
posted VBD
a DT
net JJ
loss NN
of IN
$ $
136.4 CD
million CD
, ,
or CC
$ $
6.90 CD
a DT
share NN
. .

It PRP
had VBD
profit NN
of IN
$ $
48.6 CD
million CD
, ,
or CC
$ $
2.46 CD
a DT
share NN
, ,
in IN
the DT
1988 CD
period NN
. .

Valley NNP
National NNP
had VBD
been VBN
paying VBG
a DT
quarterly JJ
dividend NN
of IN
36 CD
cents NNS
a DT
share NN
. .
`` ``
The DT
Arizona NNP
real JJ
estate NN
market NN
continues VBZ
to TO
be VB
depressed JJ
, ,
and CC
there EX
is VBZ
still JJ
uncertainty NN
as IN
to TO
when WRB
values NNS
will MD
recover VB
, ,
'' ''
James NNP
P. NNP
Simmons NNP
, ,
chairman NN
, ,
said VBD
. .

The DT
decision NN
to TO
increase VB
the DT
loan-loss NN
reserve NN
and CC
suspend VB
the DT
dividend NN
is VBZ
`` ``
both DT
prudent JJ
and CC
in IN
the DT
best JJS
long-term JJ
interest NN
of IN
the DT
shareholders NNS
, ,
'' ''
he PRP
said VBD
. .

Valley NNP
National NNP
said VBD
it PRP
made VBD
the DT
decision NN
on IN
the DT
basis NN
of IN
an DT
`` ``
overall JJ
assessment NN
of IN
the DT
marketplace NN
'' ''
and CC
the DT
condition NN
of IN
its PRP$
loan NN
portfolio NN
and CC
after IN
reviewing VBG
it PRP
with IN
federal JJ
regulators NNS
. .

The DT
addition NN
to TO
reserves NNS
comes VBZ
on IN
top NN
of IN
a DT
provision NN
of IN
$ $
199.7 CD
million CD
that WDT
was VBD
announced VBN
in IN
June NNP
. .

In IN
July NNP
, ,
Moody NNP
's POS
downgraded VBD
$ $
400 CD
million CD
of IN
the DT
company NN
's POS
debt NN
, ,
saying VBG
the DT
bank NN
holding VBG
company NN
had VBD
n't RB
taken VBN
adequate JJ
write-offs NNS
against IN
potential JJ
losses NNS
on IN
real JJ
estate NN
loans NNS
despite IN
its PRP$
second-quarter JJ
write-down NN
. .

Richard NNP
M. NNP
Greenwood NNP
, ,
Valley NNP
National NNP
's POS
executive JJ
vice NN
president NN
, ,
said VBD
then RB
that IN
the DT
company NN
believed VBD
the DT
write-downs NNS
were VBD
`` ``
adequate JJ
'' ''
and CC
did VBD
n't RB
plan VB
to TO
increase VB
its PRP$
reserves NNS
again RB
. .

Bruce NNP
Hoyt NNP
, ,
a DT
banking NN
analyst NN
with IN
Boettcher NNP
& CC
Co. NNP
, ,
a DT
Denver NNP
brokerage NN
firm NN
, ,
said VBD
Valley NNP
National NNP
`` ``
is VBZ
n't RB
out IN
of IN
the DT
woods NNS
yet RB
. .
'' ''

The DT
key NN
will MD
be VB
whether IN
Arizona NNP
real JJ
estate NN
turns VBZ
around IN
or CC
at IN
least JJS
stabilizes VBZ
, ,
he PRP
said VBD
. .

`` ``
They PRP
've VBP
stepped VBD
up IN
to TO
the DT
plate NN
to TO
take VB
the DT
write-downs NNS
, ,
but CC
when WRB
markets NNS
head VBP
down RB
, ,
a DT
company NN
is VBZ
always RB
exposed VBN
to TO
further VB
negative JJ
surprises NNS
, ,
'' ''
Mr. NNP
Hoyt NNP
said VBD
. .

Valley NNP
National NNP
closed VBD
yesterday NN
at IN
$ $
24.25 CD
a DT
share NN
, ,
down RB
$ $
1 CD
, ,
in IN
national JJ
over-the-counter JJ
trading NN
. .
Two CD
years NNS
of IN
coddling NN
, ,
down RP
the DT
drain NN
. .

That DT
's VBZ
the DT
way NN
a DT
lot NN
of IN
brokers NNS
feel VBP
today NN
on IN
the DT
second JJ
anniversary NN
of IN
the DT
1987 CD
stock-market NN
crash NN
. .

Ever RB
since IN
that DT
fearful JJ
Black NNP
Monday NNP
, ,
they PRP
've VBP
been VBN
tirelessly RB
wooing VBG
wary JJ
individual JJ
investors NNS
-- :
trying VBG
to TO
convince VB
them PRP
that IN
Oct. NNP
19 CD
, ,
1987 CD
, ,
was VBD
a DT
fluke NN
and CC
that IN
the DT
stock NN
market NN
really RB
is VBZ
a DT
safe JJ
place NN
for IN
average JJ
Americans NNPS
to TO
put VB
their PRP$
hard-earned JJ
dollars NNS
. .

And CC
until IN
last JJ
Friday NNP
, ,
it PRP
seemed VBD
those DT
efforts NNS
were VBD
starting VBG
to TO
pay VB
off RB
. .

`` ``
Some DT
of IN
those DT
folks NNS
were VBD
coming VBG
back RB
, ,
'' ''
says VBZ
Leslie NNP
Quick NNP
Jr. NNP
, ,
chairman NN
, ,
of IN
discount NN
brokers NNS
Quick NNP
& CC
Reilly NNP
Group NNP
Inc NNP
. .

`` ``
We PRP
had VBD
heard VBN
from IN
people NNS
who WP
had VBD
n't RB
been VBN
active JJ
'' ''
for IN
a DT
long JJ
time NN
. .

Then RB
came VBD
the DT
frightening JJ
190-point JJ
plunge NN
in IN
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
and CC
a DT
new JJ
wave NN
of IN
stock-market NN
volatility NN
. .

All DT
of IN
a DT
sudden JJ
, ,
it PRP
was VBD
back RB
to TO
square VB
one CD
. .

`` ``
It PRP
's VBZ
going VBG
to TO
set VB
things NNS
back RB
for IN
a DT
period NN
, ,
because IN
it PRP
reinforces VBZ
the DT
concern NN
of IN
volatility NN
, ,
'' ''
says VBZ
Jeffrey NNP
B. NNP
Lane NNP
, ,
president NN
of IN
Shearson NNP
Lehman NNP
Hutton NNP
Inc NNP
. .

`` ``
I PRP
think VBP
it PRP
will MD
shake VB
confidence NN
one CD
more JJR
time NN
, ,
and CC
a DT
lot NN
of IN
this DT
business NN
is VBZ
based VBN
on IN
client NN
confidence NN
. .
'' ''

Brokers NNS
around IN
the DT
country NN
say VBP
the DT
reaction NN
from IN
individual JJ
investors NNS
this DT
week NN
has VBZ
been VBN
almost RB
eerie JJ
. .

Customers NNS
and CC
potential JJ
customers NNS
are VBP
suddenly RB
complaining VBG
about IN
the DT
stock NN
market NN
in IN
the DT
exact JJ
way NN
they PRP
did VBD
in IN
post-crash JJ
1987 CD
. .

`` ``
The DT
kinds NNS
of IN
questions NNS
you PRP
had VBD
before IN
have VBP
resurfaced VBN
, ,
'' ''
says VBZ
Raymond NNP
A. NNP
`` ``
Chip NNP
'' ''
Mason NNP
, ,
chairman NN
of IN
regional JJ
brokerage NN
firm NN
Legg NNP
Mason NNP
Inc. NNP
, ,
Baltimore NNP
. .

`` ``
I PRP
can MD
just RB
tell VB
the DT
questions NNS
are VBP
right RB
back RB
where WRB
they PRP
were VBD
: :
` ``
What WP
's VBZ
going VBG
on IN
? .
, ,
' ''
` ``
Ca MD
n't RB
anything NN
be VB
done VBN
about IN
program NN
trading NN
? .
, ,
' ''
` ``
Does VBZ
n't RB
the DT
exchange NN
understand VB
? .
, ,
' ''
` ``
Where WRB
is VBZ
the DT
SEC NNP
on IN
this DT
? .
' ''
'' ''

Mr. NNP
Mason NNP
says VBZ
he PRP
's VBZ
convinced VBN
the DT
public JJ
still RB
wants VBZ
to TO
invest VB
in IN
common JJ
stocks NNS
, ,
even RB
though IN
they PRP
believe VBP
the DT
deck NN
is VBZ
stacked VBN
against IN
them PRP
. .

But CC
`` ``
these DT
wide JJ
swings NNS
scare VBP
them PRP
to TO
death NN
. .
'' ''

All DT
of IN
this DT
is VBZ
bad JJ
news NN
for IN
the DT
big JJ
brokerage NN
firms NNS
such JJ
as IN
Shearson NNP
and CC
Merrill NNP
Lynch NNP
& CC
Co. NNP
that WDT
have VBP
big JJ
`` ``
retail JJ
, ,
'' ''
or CC
individual-investor NN
, ,
businesses NNS
. .

After IN
expanding VBG
rapidly RB
during IN
the DT
bull-market NN
years NNS
up IN
to TO
the DT
1987 CD
crash NN
, ,
retail JJ
brokerage NN
operations NNS
these DT
days NNS
are VBP
getting VBG
barely RB
enough JJ
business NN
to TO
pay VB
the DT
overhead NN
. .

True JJ
, ,
the DT
amount NN
of IN
money NN
investors NNS
are VBP
willing JJ
to TO
entrust VB
to TO
their PRP$
brokers NNS
has VBZ
been VBN
growing VBG
lately RB
. .

But CC
those DT
dollars NNS
have VBP
been VBN
going VBG
into IN
such JJ
`` ``
safe JJ
'' ''
products NNS
as IN
money NN
market NN
funds NNS
, ,
which WDT
do VBP
n't RB
generate VB
much JJ
in IN
the DT
way NN
of IN
commissions NNS
for IN
the DT
brokerage NN
firms NNS
. .

At IN
discount NN
brokerage NN
Charles NNP
Schwab NNP
& CC
Co. NNP
, ,
such JJ
`` ``
cash-equivalent JJ
'' ''
investments NNS
recently RB
accounted VBD
for IN
a DT
record NN
$ $
8 CD
billion CD
of IN
the DT
firm NN
's POS
$ $
25 CD
billion CD
of IN
client NN
's POS
assets NNS
. .

The DT
brokers NNS
' POS
hope NN
has VBZ
been VBN
that IN
they PRP
could MD
soon RB
coax VB
investors NNS
into IN
shifting VBG
some DT
of IN
their PRP$
hoard NN
into IN
the DT
stock NN
market NN
. .

And CC
before IN
last JJ
Friday NNP
, ,
they PRP
were VBD
actually RB
making VBG
modest JJ
progress NN
. .

A DT
slightly RB
higher JJR
percentage NN
of IN
New NNP
York NNP
Stock NNP
Exchange NNP
volume NN
has VBZ
been VBN
attributed VBN
to TO
retail VB
investors NNS
in IN
recent JJ
months NNS
compared VBN
with IN
post-crash JJ
1988 CD
, ,
according VBG
to TO
Securities NNP
Industry NNP
Association NNP
data NNS
. .

In IN
1987 CD
, ,
an DT
average JJ
19.7 CD
% NN
of IN
Big NNP
Board NNP
volume NN
was VBD
retail JJ
business NN
, ,
with IN
the DT
monthly JJ
level NN
never RB
more JJR
than IN
21.4 CD
% NN
. .

The DT
retail JJ
participation NN
dropped VBD
to TO
an DT
average JJ
18.2 CD
% NN
in IN
1988 CD
, ,
and CC
shriveled VBD
to TO
barely RB
14 CD
% NN
some DT
months NNS
during IN
the DT
year NN
. .

Yet RB
in IN
1989 CD
, ,
retail JJ
participation NN
has VBZ
been VBN
more JJR
than IN
20 CD
% NN
in IN
every DT
month NN
, ,
and CC
was VBD
23.5 CD
% NN
in IN
August NNP
, ,
the DT
latest JJS
month NN
for IN
which WDT
figures NNS
are VBP
available JJ
. .

Jeffrey NNP
Schaefer NNP
, ,
the DT
SIA NNP
's POS
research NN
director NN
, ,
says VBZ
that IN
all DT
of IN
his PRP$
group NN
's POS
retail-volume NN
statistics NNS
could MD
be VB
overstated VBN
by IN
as RB
much JJ
as IN
five CD
percentage NN
points NNS
because IN
corporate JJ
buy-backs NNS
are VBP
sometimes RB
inadvertently RB
included VBD
in IN
Big NNP
Board NNP
data NNS
. .

But CC
there EX
did VBD
seem VB
to TO
be VB
a DT
retail JJ
activity NN
pickup NN
. .

But CC
`` ``
Friday NNP
did VBD
n't RB
help VB
things NNS
, ,
'' ''
says VBZ
Mr. NNP
Schaefer NNP
. .

With IN
the DT
gyrations NNS
of IN
recent JJ
days NNS
, ,
says VBZ
Hugo NNP
Quackenbush NNP
, ,
senior JJ
vice NN
president NN
at IN
Charles NNP
Schwab NNP
, ,
many JJ
small JJ
investors NNS
are VBP
absolutely RB
convinced VBN
that IN
`` ``
they PRP
should MD
n't RB
play VB
in IN
the DT
stock NN
market NN
. .
'' ''

Joseph NNP
Grano NNP
, ,
president NN
of IN
retail JJ
sales NNS
and CC
marketing NN
at IN
PaineWebber NNP
Group NNP
Inc. NNP
, ,
still RB
thinks VBZ
that IN
individual JJ
investors NNS
will MD
eventually RB
go VB
back RB
into IN
the DT
stock NN
market NN
. .

Investors NNS
will MD
develop VB
`` ``
thicker JJR
skins NNS
, ,
'' ''
and CC
their PRP$
confidence NN
will MD
return VB
, ,
he PRP
says VBZ
. .

Friday NNP
's POS
plunge NN
, ,
he PRP
is VBZ
telling VBG
PaineWebber NNP
brokers NNS
, ,
was VBD
nothing NN
more JJR
than IN
a DT
`` ``
tremendous JJ
reaction NN
to TO
leveraged JJ
buy-out NN
stocks NNS
. .
'' ''

Meanwhile RB
, ,
PaineWebber NNP
remains VBZ
among IN
the DT
leaders NNS
in IN
efforts NNS
to TO
simply RB
persuade VB
investors NNS
to TO
keep VB
giving VBG
Wall NNP
Street NNP
their PRP$
money NN
. .

`` ``
It PRP
's VBZ
more JJR
of IN
an DT
important JJ
issue NN
to TO
keep VB
control NN
of IN
those DT
assets NNS
, ,
rather RB
than IN
push NN
the DT
investor NN
to TO
move VB
into IN
-LRB- (
specific JJ
-RRB- )
products NNS
such JJ
as IN
equities NNS
, ,
'' ''
Mr. NNP
Grano NNP
says VBZ
. .

`` ``
The DT
equity NN
decision NN
will MD
come VB
when WRB
the DT
client NN
is VBZ
ready JJ
and CC
when WRB
there EX
's VBZ
a DT
semblance NN
of IN
confidence NN
. .
'' ''

It PRP
could MD
be VB
a DT
long JJ
wait NN
, ,
say VBP
some DT
industry NN
observers NNS
. .

`` ``
Some DT
investors NNS
will MD
tiptoe VB
back RB
in IN
, ,
'' ''
says VBZ
Richard NNP
Ross NNP
, ,
a DT
market NN
research NN
director NN
for IN
Elrick NNP
& CC
Lavidge NNP
in IN
Chicago NNP
. .

`` ``
Then RB
there EX
'll MD
be VB
another DT
swing NN
. .

Given VBN
enough RB
of IN
these DT
, ,
this DT
will MD
drive VB
everyone NN
out IN
except IN
the DT
most RBS
hardy JJ
, ,
'' ''
he PRP
adds VBZ
. .

Mr. NNP
Ross NNP
, ,
who WP
has VBZ
been VBN
studying VBG
retail JJ
investors NNS
' POS
perception NN
of IN
risks NNS
in IN
the DT
brokerage NN
industry NN
, ,
said VBD
a DT
market NN
plunge NN
like IN
Friday NNP
's POS
`` ``
shatters NNS
investors NNS
' ''
confidence NN
in IN
their PRP$
ability NN
to TO
make VB
any DT
judgments NNS
on IN
the DT
market NN
. .
'' ''

The DT
long-term JJ
outlook NN
for IN
the DT
retail JJ
brokerage NN
business NN
is VBZ
`` ``
miserable JJ
, ,
'' ''
Mr. NNP
Ross NNP
declares VBZ
. .

The DT
following VBG
were VBD
among IN
yesterday NN
's POS
offerings NNS
and CC
pricings NNS
in IN
the DT
U.S. NNP
and CC
non-U.S. JJ
capital NN
markets NNS
, ,
with IN
terms NNS
and CC
syndicate NN
manager NN
, ,
as IN
compiled VBN
by IN
Dow NNP
Jones NNP
Capital NNP
Markets NNP
Report NNP
: :

Washington NNP
, ,
D.C. NNP
-- :

$ $
200 CD
million CD
of IN
general JJ
obligation NN
tax NN
revenue NN
anticipation NN
notes NNS
, ,
Series NNP
1990 CD
, ,
due JJ
Sept. NNP
28 CD
, ,
1990 CD
. .

About IN
$ $
190 CD
million CD
were VBD
offered VBN
through IN
Shearson NNP
Lehman NNP
Hutton NNP
Inc NNP
. .

Shearson NNP
is VBZ
offering VBG
the DT
notes NNS
as IN
6 CD
3\/4 CD
% NN
securities NNS
priced VBN
to TO
yield VB
6.15 CD
% NN
. .

J.P. NNP
Morgan NNP
Securities NNP
Inc. NNP
is VBZ
offering VBG
the DT
remaining VBG
$ $
10 CD
million CD
of IN
notes NNS
. .

The DT
notes NNS
are VBP
rated VBN
MIG-1 JJ
by IN
Moody NNP
's POS
Investors NNP
Service NNP
Inc NNP
. .

Standard NNP
& CC
Poor NNP
's POS
Corp. NNP
has VBZ
them PRP
under IN
review NN
. .

Federal NNP
National NNP
Mortgage NNP
Association NNP
-- :

$ $
400 CD
million CD
of IN
Remic NNP
mortgage NN
securities NNS
being VBG
offered VBN
in IN
16 CD
classes NNS
by IN
Bear NNP
, ,
Stearns NNP
& CC
Co NNP
. .

The DT
offering NN
, ,
Series NNP
1989-83 CD
, ,
is VBZ
backed VBN
by IN
Fannie NNP
Mae NNP
9 CD
% NN
securities NNS
. .

The DT
offering NN
used VBD
at-market JJ
pricing NN
. .

Separately RB
, ,
Fannie NNP
Mae NNP
issued VBD
$ $
400 CD
million CD
of IN
Remic NNP
mortgage NN
securities NNS
in IN
12 CD
classes NNS
through IN
First NNP
Boston NNP
Corp NNP
. .

The DT
offering NN
, ,
Series NNP
1989-84 CD
, ,
is VBZ
backed VBN
by IN
Fannie NNP
Mae NNP
9 CD
% NN
securities NNS
. .

Pricing NN
details NNS
were VBD
n't RB
available JJ
. .

The DT
two CD
offerings NNS
bring VBP
Fannie NNP
Mae NNP
's POS
1989 CD
Remic NNP
issuance NN
to TO
$ $
31 CD
billion CD
and CC
its PRP$
total JJ
volume NN
to TO
$ $
43.3 CD
billion CD
since IN
the DT
program NN
began VBD
in IN
April NNP
1987 CD
. .

Societa NNP
per IN
Azioni NNP
Finanziaria NNP
Industria NNP
Manaifatturiera NNP
-LRB- (
Italy NNP
-RRB- )
-- :

$ $
150 CD
million CD
of IN
9 CD
% NN
depository NN
receipts NNS
due JJ
Nov. NNP
27 CD
, ,
1994 CD
, ,
priced VBN
at IN
101.60 CD
to TO
yield VB
9.07 CD
% NN
less JJR
fees NNS
, ,
via IN
Bankers NNP
Trust NNP
International NNP
Ltd NNP
. .

Fees NNS
1 CD
7\/8 CD
. .

Mitsubishi NNP
Corp NNP
. .
Finance NNP
-LRB- (
Japanese JJ
parent NN
-RRB- )
-- :

$ $
100 CD
million CD
of IN
8 CD
5\/8 CD
% NN
bonds NNS
due JJ
Nov. NNP
1 CD
, ,
1993 CD
priced VBN
at IN
101 CD
1\/4 CD
to TO
yield VB
8.74 CD
% NN
annually RB
less RBR
full JJ
fees NNS
, ,
via IN
Yamaichi NNP
International NNP
-LRB- (
Europe NNP
-RRB- )
Ltd NNP
. .

Fees NNS
1 CD
5\/8 CD
. .

Indian NNP
Oil NNP
Corp NNP
. .
-LRB- (
India NNP
-RRB- )
-- :

$ $
200 CD
million CD
of IN
floating-rate JJ
notes NNS
due JJ
November NNP
1994 CD
, ,
paying VBG
six-month JJ
London NNP
interbank NN
offered VBD
rate NN
plus CC
3\/16 CD
point NN
and CC
priced VBN
at IN
par NN
via IN
Credit NNP
Suisse NNP
First NNP
Boston NNP
Ltd NNP
. .
Guaranteed VBN
by IN
India NNP
. .

Fees NNS
0.36 CD
. .

Notes NNS
offered VBN
at IN
a DT
fixed VBN
level NN
of IN
99.75 CD
. .

National NNP
Westminster NNP
Bank NNP
PLC NNP
-LRB- (
U.K. NNP
-RRB- )
-- :

# #
200 CD
million CD
of IN
undated JJ
variable-rate JJ
notes NNS
priced VBN
at IN
par NN
via IN
Merill NNP
Lynch NNP
International NNP
Ltd NNP
. .

Initial JJ
interest NN
rate NN
set VBN
at IN
0.375 CD
point NN
over IN
three-month JJ
Libor NNP
. .

Subsequent JJ
margins NNS
set VBN
by IN
agreement NN
between IN
NatWest NNP
and CC
Merrill NNP
. .

If IN
no DT
margin NN
agreed VBD
, ,
there EX
is VBZ
a DT
fallback NN
rate NN
of IN
Libor NNP
plus CC
0.75 CD
point NN
in IN
years NNS
one CD
to TO
15 CD
, ,
and CC
Libor NNP
plus CC
1.25 CD
point NN
thereafter RB
. .

Keihin NNP
Electric NNP
Express NNP
Railway NNP
Co NNP
. .
-LRB- (
Japan NNP
-RRB- )
-- :

$ $
150 CD
million CD
of IN
bonds NNS
due JJ
Nov. NNP
9 CD
, ,
1993 CD
, ,
with IN
equity-purchase JJ
warrants NNS
, ,
indicating VBG
a DT
4 CD
% NN
coupon NN
at IN
par NN
via IN
Yamaichi NNP
International NNP
-LRB- (
Europe NNP
-RRB- )
Ltd NNP
. .

Each DT
$ $
5,000 CD
bond NN
carries VBZ
one CD
warrant NN
, ,
exercisable JJ
from IN
Dec. NNP
1 CD
, ,
1989 CD
, ,
through IN
Nov. NNP
2 CD
, ,
1993 CD
, ,
to TO
buy VB
company NN
shares NNS
at IN
an DT
expected VBN
premium NN
of IN
2 CD
1\/2 CD
% NN
to TO
the DT
closing VBG
share NN
price NN
when WRB
terms NNS
are VBP
fixed VBN
Oct. NNP
24 CD
. .

Seiren NNP
Co NNP
. .
-LRB- (
Japan NNP
-RRB- )
-- :

110 CD
million CD
Swiss JJ
francs NNS
of IN
privately RB
placed VBN
convertible JJ
notes NNS
due JJ
March NNP
31 CD
, ,
1994 CD
, ,
with IN
an DT
indicated VBD
0.25 CD
% NN
coupon NN
at IN
par NN
, ,
via IN
Bank NNP
Leu NNP
Ltd NNP
. .

Put VB
option NN
on IN
March NNP
31 CD
, ,
1992 CD
, ,
at IN
an DT
indicated VBD
109 CD
to TO
yield VB
3.865 CD
% NN
. .

Callable JJ
on IN
March NNP
31 CD
, ,
1992 CD
, ,
at IN
109 CD
, ,
also RB
beginning VBG
Sept. NNP
30 CD
, ,
1992 CD
, ,
from IN
101 CD
1\/2 CD
and CC
declining VBG
half PDT
a DT
point NN
semiannually RB
to TO
par NN
. .

Each DT
50,000 CD
Swiss JJ
franc NN
note NN
is VBZ
convertible JJ
from IN
Nov. NNP
20 CD
, ,
1989 CD
, ,
to TO
March NNP
17 CD
, ,
1994 CD
, ,
at IN
an DT
indicated VBN
5 NN
% NN
premium NN
over IN
the DT
closing VBG
share NN
price NN
Oct. NNP
25 CD
, ,
when WRB
terms NNS
are VBP
scheduled VBN
to TO
be VB
fixed VBN
. .

N. NNP
Nomura NNP
& CC
Co NNP
. .
-LRB- (
Japan NNP
-RRB- )
-- :

50 CD
million CD
Swiss JJ
francs NNS
of IN
privately RB
placed VBN
convertible JJ
notes NNS
due JJ
March NNP
31 CD
, ,
1994 CD
, ,
with IN
an DT
indicated VBD
0.5 CD
% NN
coupon NN
at IN
par NN
, ,
via IN
Bank NNP
Julius NNP
Baer NNP
. .
Put VB
option NN
on IN
March NNP
31 CD
, ,
1992 CD
, ,
at IN
an DT
indicated VBD
108 CD
1\/4 CD
to TO
yield VB
3.846 CD
% NN
. .

Each DT
50,000 CD
Swiss JJ
franc NN
note NN
is VBZ
convertible JJ
from IN
Nov. NNP
20 CD
, ,
1989 CD
, ,
to TO
March NNP
17 CD
, ,
1994 CD
, ,
at IN
a DT
5 NN
% NN
premium NN
over IN
the DT
closing VBG
share NN
price NN
Oct. NNP
21 CD
, ,
when WRB
terms NNS
are VBP
scheduled VBN
to TO
be VB
fixed VBN
. .
Aegon NNP
N.V NNP
. .
-LRB- (
Netherlands NNP
-RRB- )
-- :

250 CD
million CD
Dutch JJ
guilders NNS
of IN
7 CD
3\/4 CD
% NN
bonds NNS
due JJ
Nov. NNP
15 CD
, ,
1999 CD
, ,
priced VBN
at IN
101 CD
1\/4 CD
to TO
yield VB
7.57 CD
% NN
at IN
issue NN
price NN
and CC
7.86 CD
% NN
less RBR
full JJ
fees NNS
, ,
via IN
AMRO NNP
Bank NNP
. .

Fees NNS
2 CD
. .

Continental NNP
Airlines NNPS
-- :

a DT
four-part JJ
, ,
$ $
71 CD
million CD
issue NN
of IN
secured VBN
equipment NN
certificates NNS
priced VBN
through IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc NNP
. .

The DT
size NN
of IN
the DT
issue NN
was VBD
decreased VBN
from IN
an DT
originally RB
planned VBN
$ $
95.2 CD
million CD
. .

In IN
addition NN
, ,
a DT
planned VBN
two-part JJ
offering NN
of IN
$ $
58 CD
million CD
in IN
unsecured JJ
notes NNS
was VBD
n't RB
offered VBN
. .

The DT
first JJ
part NN
, ,
consisting VBG
of IN
$ $
2.5 CD
million CD
of IN
11 CD
1\/4 CD
% NN
secured VBD
equipment NN
certificates NNS
due JJ
June NNP
15 CD
, ,
1990 CD
, ,
was VBD
priced VBN
at IN
98.481 CD
with IN
a DT
yield NN
to TO
maturity NN
of IN
13.75 CD
% NN
. .

The DT
second JJ
part NN
, ,
consisting VBG
of IN
$ $
28 CD
million CD
of IN
11 CD
3\/4 CD
% NN
secured VBD
equipment NN
certificates NNS
due JJ
June NNP
15 CD
, ,
1995 CD
, ,
was VBD
priced VBN
at IN
87.026 CD
with IN
a DT
yield NN
to TO
maturity NN
of IN
15.25 CD
% NN
. .

The DT
third JJ
part NN
, ,
consisting VBG
of IN
$ $
18.5 CD
million CD
of IN
12 CD
1\/8 CD
% NN
secured VBD
equipment NN
certificates NNS
due JJ
April NNP
15 CD
, ,
1996 CD
, ,
was VBD
priced VBN
at IN
85.60 CD
with IN
a DT
yield NN
to TO
maturity NN
of IN
15.75 CD
% NN
. .

The DT
fourth JJ
part NN
, ,
consisting VBG
of IN
$ $
22 CD
million CD
of IN
12 CD
1\/2 CD
% NN
secured VBD
equipment NN
certificates NNS
due JJ
April NNP
15 CD
, ,
1999 CD
, ,
was VBD
priced VBN
at IN
85.339 CD
with IN
a DT
yield NN
to TO
maturity NN
of IN
15.50 CD
% NN
. .

The DT
issue NN
was VBD
rated VBN
single-B-2 JJ
by IN
Moody NNP
's POS
and CC
single-B JJ
by IN
S&P NNP
. .

All DT
parts NNS
of IN
the DT
issue NN
are VBP
callable JJ
at IN
any DT
time NN
at IN
par NN
. .

Continental NNP
Airlines NNPS
is VBZ
a DT
unit NN
of IN
Texas NNP
Air NNP
Corp NNP
. .

John NNP
V. NNP
Holmes NNP
, ,
an DT
investment-newsletter NN
publisher NN
, ,
and CC
three CD
venture-capital JJ
firms NNS
he PRP
organized VBD
were VBD
enjoined VBN
from IN
violating VBG
the DT
registration NN
provisions NNS
of IN
the DT
securities NNS
laws NNS
governing VBG
investment NN
companies NNS
. .

As IN
part NN
of IN
an DT
agreement NN
that WDT
settled VBD
charges NNS
brought VBN
by IN
the DT
Securities NNP
and CC
Exchange NNP
Commission NNP
, ,
a DT
receiver NN
was VBD
also RB
appointed VBN
for IN
the DT
three CD
venture-capital JJ
firms NNS
. .

Mr. NNP
Holmes NNP
was VBD
the DT
subject NN
of IN
a DT
page NN
one CD
profile NN
in IN
The DT
Wall NNP
Street NNP
Journal NNP
in IN
1984 CD
, ,
after IN
the DT
SEC NNP
questioned VBD
him PRP
about IN
ties NNS
between IN
him PRP
and CC
companies NNS
he PRP
touted VBD
in IN
a DT
newsletter NN
. .

In IN
1986 CD
, ,
in IN
another DT
consent NN
agreement NN
with IN
the DT
SEC NNP
, ,
Mr. NNP
Holmes NNP
was VBD
enjoined VBN
from IN
violating VBG
the DT
stock-registration NN
and CC
anti-fraud JJ
provisions NNS
of IN
the DT
securities NNS
laws NNS
. .
Without IN
any DT
admission NN
or CC
denial NN
of IN
guilt NN
by IN
Mr. NNP
Holmes NNP
, ,
that DT
agreement NN
settled VBD
SEC NNP
charges NNS
that IN
Mr. NNP
Holmes NNP
sold VBD
unregistered JJ
securities NNS
and CC
misled VBD
investors NNS
. .

In IN
charges NNS
filed VBD
last JJ
week NN
in IN
federal JJ
district NN
court NN
in IN
Charlotte NNP
, ,
N.C. NNP
, ,
the DT
SEC NNP
alleged VBD
that IN
Venture NNP
Capitalists NNPS
Inc. NNP
, ,
Venture NNP
Finance NNP
Corp. NNP
and CC
New NNP
Ventures NNP
Fund NNP
Inc. NNP
, ,
all DT
of IN
Charlotte NNP
, ,
failed VBD
repeatedly RB
to TO
file VB
proper JJ
documents NNS
. .

The DT
SEC NNP
also RB
charged VBD
that IN
Mr. NNP
Holmes NNP
acted VBD
as IN
an DT
officer NN
or CC
director NN
of IN
New NNP
Ventures NNP
, ,
in IN
violation NN
of IN
his PRP$
previous JJ
consent NN
agreement NN
. .

`` ``
Some DT
companies NNS
were VBD
delinquent JJ
in IN
filings NNS
and CC
other JJ
actions NNS
, ,
all DT
of IN
which WDT
cost VBP
money NN
, ,
'' ''
Mr. NNP
Holmes NNP
said VBD
. .

Two CD
of IN
Mr. NNP
Holmes NNP
's POS
business NN
associates NNS
who WP
worked VBD
for IN
Venture NNP
Capitalists NNPS
, ,
Kimberly NNP
Ann NNP
Smith NNP
and CC
Frederick NNP
Byrum NNP
, ,
also RB
consented VBD
to TO
being VBG
enjoined VBN
from IN
violations NNS
of IN
registration NN
provisions NNS
of IN
the DT
securities NNS
laws NNS
. .

Ms. NNP
Smith NNP
also RB
agreed VBD
to TO
a DT
permanent JJ
injunction NN
barring VBG
her PRP
from IN
acting VBG
as IN
an DT
officer NN
, ,
director NN
or CC
investment NN
adviser NN
of IN
any DT
mutual JJ
fund NN
, ,
unit NN
investment NN
trust NN
or CC
face-amount JJ
certificate NN
company NN
. .

Mr. NNP
Byrum NNP
and CC
Ms. NNP
Smith NNP
could MD
n't RB
be VB
reached VBN
for IN
comment NN
. .

In IN
consenting VBG
to TO
the DT
injunctions NNS
, ,
none NN
of IN
the DT
individuals NNS
or CC
companies NNS
admitted VBD
or CC
denied VBD
the DT
allegations NNS
. .

Senate NNP
Republicans NNPS
have VBP
settled VBN
on IN
a DT
proposal NN
that WDT
would MD
cut VB
the DT
capital-gains NNS
tax VBP
for IN
individuals NNS
and CC
corporations NNS
. .

At IN
the DT
same JJ
time NN
, ,
a DT
small JJ
group NN
of IN
Senate NNP
Democrats NNPS
are VBP
working VBG
on IN
a DT
similar JJ
plan NN
and CC
may MD
introduce VB
it PRP
soon RB
. .

Sen. NNP
Bob NNP
Packwood NNP
-LRB- (
R. NNP
, ,
Ore. NNP
-RRB- )
, ,
the DT
lead NN
sponsor NN
of IN
the DT
GOP NNP
proposal NN
, ,
said VBD
he PRP
intends VBZ
to TO
unveil VB
the DT
plan NN
today NN
and CC
to TO
offer VB
it PRP
as IN
an DT
amendment NN
to TO
whatever WDT
legislation NN
comes VBZ
along IN
, ,
particularly RB
this DT
month NN
's POS
bill NN
to TO
raise VB
the DT
federal JJ
borrowing NN
limit NN
. .

He PRP
gave VBD
10-to-1 JJ
odds NNS
that IN
a DT
capital-gains NNS
tax VBP
cut VB
of IN
some DT
sort NN
would MD
be VB
approved VBN
this DT
year NN
, ,
though IN
it PRP
probably RB
wo MD
n't RB
be VB
included VBN
in IN
the DT
pending VBG
deficit-reduction NN
bill NN
. .

He PRP
added VBD
that IN
he PRP
expects VBZ
to TO
talk VB
to TO
the DT
Democrats NNPS
who WP
also RB
wanted VBD
to TO
cut VB
the DT
gains NNS
tax VBP
about IN
drafting VBG
a DT
joint JJ
proposal NN
. .

For IN
individuals NNS
, ,
the DT
Packwood NNP
plan NN
would MD
exclude VB
from IN
income NN
5 NN
% NN
of IN
the DT
gain NN
from IN
the DT
sale NN
of IN
a DT
capital NN
asset NN
held VBN
for IN
more JJR
than IN
one CD
year NN
. .

The DT
exclusion NN
would MD
rise VB
five CD
percentage NN
points NNS
for IN
each DT
year NN
the DT
asset NN
was VBD
held VBN
until IN
it PRP
reached VBD
a DT
maximum NN
of IN
35 CD
% NN
. .

The DT
exclusion NN
would MD
apply VB
to TO
assets NNS
sold VBN
after IN
Oct. NNP
1 CD
, ,
1989 CD
. .

As IN
an DT
alternative NN
, ,
he PRP
said VBD
, ,
taxpayers NNS
could MD
chose VBD
to TO
reduce VB
their PRP$
gains NNS
by IN
an DT
inflation NN
index NN
. .

For IN
corporations NNS
, ,
the DT
top JJ
tax NN
rate NN
on IN
the DT
sale NN
of IN
assets NNS
held VBN
for IN
more JJR
than IN
three CD
years NNS
would MD
be VB
cut VBN
to TO
33 CD
% NN
from IN
the DT
current JJ
top JJ
rate NN
of IN
34 CD
% NN
. .

That DT
rate NN
would MD
gradually RB
decline VB
to TO
as RB
little JJ
as IN
29 CD
% NN
for IN
corporate JJ
assets NNS
held VBN
for IN
15 CD
years NNS
. .

The DT
Packwood NNP
plan NN
would MD
also RB
include VB
a DT
proposal NN
, ,
designed VBN
by IN
Sen. NNP
William NNP
Roth NNP
-LRB- (
R. NNP
, ,
Del. NNP
-RRB- )
, ,
that WDT
would MD
expand VB
and CC
alter VB
the DT
deduction NN
for IN
individual JJ
retirement NN
accounts NNS
. .

The DT
Roth NNP
plan NN
would MD
create VB
a DT
new JJ
, ,
non-deductible JJ
IRA NNP
from IN
which WDT
money NN
could MD
be VB
withdrawn VBN
tax-free JJ
not RB
only RB
for IN
retirement NN
, ,
but CC
also RB
for IN
the DT
purchase NN
of IN
a DT
first JJ
home NN
and CC
to TO
pay VB
education NN
and CC
medical JJ
expenses NNS
. .

Current JJ
IRAs NNS
could MD
be VB
rolled VBN
over IN
into IN
the DT
new JJ
IRAs NNS
but CC
would MD
be VB
subject NN
to TO
tax VB
. .

For IN
their PRP$
part NN
, ,
the DT
group NN
of IN
Democrats NNPS
are VBP
working VBG
on IN
a DT
plan NN
that IN
, ,
like IN
the DT
Packwood NNP
proposal NN
, ,
would MD
grant VB
larger JJR
exclusions NNS
to TO
assets NNS
the DT
longer RB
they PRP
were VBD
held VBN
by IN
individuals NNS
and CC
companies NNS
. .

Newly RB
acquired VBN
assets NNS
would MD
get VB
a DT
bigger JJR
break NN
than IN
those DT
currently RB
held VBN
. .

An DT
extra JJ
exclusion NN
would MD
be VB
given VBN
to TO
long-held JJ
stock NN
in IN
small JJ
and CC
medium-size JJ
corporations NNS
just RB
starting VBG
up RB
. .

No DT
one CD
in IN
the DT
Senate NNP
is VBZ
considering VBG
the DT
capital-gains NNS
plan VBP
passed VBN
by IN
the DT
House NNP
. .

That DT
plan NN
would MD
provide VB
a DT
30 CD
% NN
exclusion NN
to TO
assets NNS
sold VBN
over IN
a DT
2 CD
1\/2-year JJ
period NN
ending VBG
Dec. NNP
31 CD
, ,
1991 CD
. .

After IN
then RB
, ,
the DT
House NNP
measure NN
would MD
boost VB
the DT
tax NN
rate NN
to TO
28 CD
% NN
and CC
exclude VB
from IN
tax NN
the DT
gain NN
attributable JJ
to TO
inflation NN
. .

Senators NNS
are VBP
focusing VBG
on IN
making VBG
a DT
capital-gains NNS
differential JJ
permanent JJ
. .

Separately RB
, ,
Chairman NNP
Dan NNP
Rostenkowski NNP
-LRB- (
D. NNP
, ,
Ill NNP
. .
-RRB- )
of IN
the DT
House NNP
Ways NNPS
and CC
Means NNP
Committee NNP
said VBD
he PRP
did VBD
n't RB
want VB
the DT
capital-gains NNS
tax VBP
cut VB
or CC
any DT
other JJ
amendments NNS
attached VBN
to TO
the DT
pending VBG
bill NN
raising VBG
the DT
federal JJ
borrowing NN
limit NN
. .

The DT
current JJ
debt NN
limit NN
expires VBZ
Oct. NNP
31 CD
. .

He PRP
also RB
urged VBD
House NNP
and CC
Senate NNP
negotiators NNS
to TO
rid VB
the DT
deficit-reduction NN
bill NN
of IN
all DT
provisions NNS
that WDT
increase VBP
the DT
budget NN
deficit NN
, ,
including VBG
the DT
House-passed JJ
capital-gains NNS
provision NN
. .

From IN
a DT
helicopter NN
a DT
thousand CD
feet NNS
above IN
Oakland NNP
after IN
the DT
second-deadliest JJ
earthquake NN
in IN
U.S. NNP
history NN
, ,
a DT
scene NN
of IN
devastation NN
emerges VBZ
: :
a DT
freeway NN
crumbled VBD
into IN
a DT
concrete JJ
sandwich NN
, ,
hoses NNS
pumping VBG
water NN
into IN
once-fashionable JJ
apartments NNS
, ,
abandoned VBN
autos NNS
. .

But CC
this DT
quake NN
was VBD
n't RB
the DT
big JJ
one CD
, ,
the DT
replay NN
of IN
1906 CD
that WDT
has VBZ
been VBN
feared VBN
for IN
so RB
many JJ
years NNS
. .

Despite IN
the DT
tragic JJ
loss NN
of IN
more JJR
than IN
270 CD
lives NNS
, ,
and CC
damage NN
estimated VBN
in IN
the DT
billions NNS
, ,
most RBS
businesses NNS
and CC
their PRP$
plants NNS
and CC
offices NNS
in IN
the DT
Bay NNP
area NN
were VBD
n't RB
greatly RB
affected VBN
. .

The DT
economic JJ
life NN
of IN
the DT
region NN
is VBZ
expected VBN
to TO
revive VB
in IN
a DT
day NN
or CC
two CD
, ,
although IN
some DT
transportation NN
problems NNS
may MD
last VB
weeks NNS
or CC
months NNS
. .

A DT
main JJ
factor NN
mitigating VBG
more RBR
widespread JJ
damage NN
was VBD
the DT
location NN
of IN
the DT
quake NN
's POS
epicenter NN
-- :
20 CD
miles NNS
from IN
the DT
heart NN
of IN
the DT
Silicon NNP
Valley NNP
and CC
more JJR
than IN
50 CD
miles NNS
from IN
downtown NN
San NNP
Francisco NNP
and CC
Oakland NNP
. .

Also RB
, ,
the DT
region NN
's POS
insistence NN
on IN
strict JJ
building NN
codes NNS
helped VBD
prevent VB
wider JJR
damage NN
. .

The DT
tremendous JJ
energy NN
of IN
the DT
quake NN
was VBD
dissipated VBN
by IN
the DT
distance NN
, ,
so RB
that IN
most RBS
parts NNS
of IN
the DT
valley NN
and CC
the DT
major JJ
cities NNS
suffered VBD
largely RB
cosmetic JJ
damage NN
-- :
broken VBN
windows NNS
, ,
falling VBG
brick NN
and CC
cornices NNS
, ,
buckled VBD
asphalt NN
or CC
sidewalks NNS
. .

Of IN
course NN
, ,
the DT
quake NN
was VBD
the DT
worst JJS
since IN
the DT
emergence NN
of IN
the DT
computer NN
era NN
turned VBD
Silicon NNP
Valley NNP
into IN
the DT
nation NN
's POS
capital NN
of IN
high JJ
technology NN
. .

Like IN
other JJ
major JJ
American JJ
cities NNS
, ,
the DT
San NNP
Francisco NNP
-- :
Oakland NNP
area NN
owes VBZ
its PRP$
current JJ
prosperity NN
more JJR
to TO
its PRP$
infrastructure NN
of IN
fiber-optic JJ
cables NNS
linking VBG
thousands NNS
of IN
computer NN
terminals NNS
and CC
telephones NNS
than IN
to TO
its PRP$
location NN
astride IN
one CD
of IN
the DT
world NN
's POS
great JJ
natural JJ
harbors NNS
. .

When WRB
the DT
tremors NNS
struck VBD
, ,
the DT
region NN
's POS
largely RB
unseen JJ
high-tech JJ
fabric NN
held VBN
up IN
surprisingly RB
well RB
despite IN
the DT
devastation NN
visible JJ
from IN
the DT
air NN
. .

Michael NNP
L. NNP
Bandler NNP
, ,
vice NN
president NN
for IN
network NN
technology NN
at IN
Pacific NNP
Bell NNP
Telephone NNP
Co. NNP
, ,
says VBZ
nearly RB
all PDT
the DT
network NN
's POS
computer NN
switches NNS
, ,
which WDT
move VBP
thousands NNS
of IN
calls VBZ
a DT
minute NN
from IN
one CD
location NN
to TO
another DT
, ,
changed VBN
to TO
battery NN
power NN
when WRB
the DT
city NN
lost VBD
power NN
. .

The DT
battery NN
packs NNS
have VBP
enough JJ
power NN
for IN
only RB
three CD
hours NNS
, ,
but CC
that DT
gave VBD
emergency NN
crews NNS
time NN
to TO
turn VB
on IN
an DT
emergency NN
system NN
that WDT
runs VBZ
primarily RB
on IN
diesel NN
fuel NN
. .

Of IN
some DT
160 CD
switches NNS
in IN
Pacific NNP
Bell NNP
's POS
network NN
, ,
only RB
four CD
went VBD
down RB
. .

One CD
of IN
those DT
was VBD
in IN
Hollister NNP
, ,
Calif. NNP
, ,
near IN
the DT
earthquake NN
's POS
epicenter NN
. .

Few JJ
telephone NN
lines NNS
snapped VBD
. .

That DT
's VBZ
because IN
the DT
widely RB
used VBN
fiber-optic JJ
cable NN
has VBZ
been VBN
installed VBN
underground JJ
with IN
25 CD
extra JJ
feet NNS
of IN
cable NN
between IN
junction NN
points NNS
. .

The DT
slack NN
absorbs VBZ
the DT
pulling VBG
strain NN
generated VBN
by IN
an DT
earthquake NN
. .

Nevertheless RB
, ,
phone NN
service NN
was VBD
sporadic JJ
; :
many JJ
computer NN
terminals NNS
remained VBD
dark JJ
, ,
and CC
by IN
late JJ
yesterday NN
a DT
third JJ
of IN
San NNP
Francisco NNP
remained VBD
without IN
power NN
. .

Business NN
in IN
the DT
nation NN
's POS
fourth-largest JJ
metropolitan JJ
region NN
was VBD
nearly RB
paralyzed VBN
; :
an DT
estimated VBN
one CD
million CD
members NNS
of IN
the DT
work NN
force NN
stayed VBD
at IN
home NN
. .

The DT
economic JJ
dislocation NN
was VBD
as RB
abrupt JJ
as IN
the DT
earthquake NN
itself PRP
, ,
as IN
virtually RB
all DT
businesses NNS
shut VBN
down RB
. .

The DT
$ $
125-billion-a-year NNP
Bay NNP
area NN
economy NN
represents VBZ
one-fourth NN
of IN
the DT
economy NN
of IN
the DT
nation NN
's POS
most RBS
populous JJ
state NN
and CC
accounts NNS
for IN
2 CD
% NN
to TO
3 CD
% NN
of IN
the DT
nation NN
's POS
total JJ
output NN
of IN
goods NNS
and CC
services NNS
, ,
according VBG
to TO
the DT
Center NNP
for IN
Continuing VBG
Study NNP
of IN
the DT
California NNP
Economy NNP
in IN
Palo NNP
Alto NNP
. .

In IN
high-tech JJ
, ,
the DT
Bay NNP
area NN
accounts NNS
for IN
15 CD
% NN
to TO
20 CD
% NN
of IN
the DT
U.S. NNP
computer-related JJ
industry NN
. .

`` ``
This DT
has VBZ
been VBN
a DT
major JJ
disruption NN
for IN
the DT
Bay NNP
area NN
economy NN
, ,
'' ''
says VBZ
Pauline NNP
Sweezey NNP
, ,
the DT
chief JJ
economist NN
at IN
the DT
California NNP
Department NNP
of IN
Finance NNP
. .
`` ``
Obviously RB
, ,
things NNS
are VBP
going VBG
to TO
have VB
to TO
go VB
on IN
hold NN
for IN
many JJ
companies NNS
. .
'' ''

The DT
damage NN
to TO
the DT
Bay NNP
area NN
's POS
roadways NNS
could MD
cause VB
significant JJ
economic JJ
hardship NN
. .

A DT
quarter NN
of IN
a DT
million CD
people NNS
cross VBP
the DT
Bay NNP
Bridge NNP
every DT
day NN
, ,
far RB
more JJR
than IN
the DT
100,000 CD
that DT
use NN
the DT
Bay NNP
Area NNP
Rapid NNP
Transit NNP
system NN
-LRB- (
BART NNP
-RRB- )
-- :
which WDT
was VBD
working VBG
but CC
was VBD
n't RB
stopping VBG
in IN
the DT
city NN
's POS
Financial NNP
District NNP
yesterday NN
afternoon NN
because IN
electricity NN
was VBD
shut VBN
off IN
and CC
the DT
area NN
was VBD
being VBG
checked VBN
for IN
gas NN
leaks NNS
. .

California JJ
state NN
transportation NN
officials NNS
interviewed VBN
by IN
telephone NN
say VBP
they PRP
nevertheless RB
do VBP
n't RB
expect VB
serious JJ
problems NNS
for IN
commerce NN
in IN
and CC
out IN
of IN
the DT
Bay NNP
area NN
. .

All DT
major JJ
roadways NNS
except IN
Interstate NNP
880 CD
, ,
known VBN
as IN
the DT
Nimitz NNP
Freeway NNP
, ,
and CC
the DT
Bay NNP
Bridge NNP
were VBD
open JJ
by IN
1 CD
p.m. NN
yesterday NN
. .

Officials NNS
expect VBP
difficulty NN
routing VBG
traffic NN
through IN
downtown NN
San NNP
Francisco NNP
. .

The DT
earthquake NN
caused VBD
many JJ
streets NNS
to TO
buckle VB
and CC
crack NN
, ,
making VBG
them PRP
impassible JJ
. .

Other JJ
roads NNS
were VBD
obstructed VBN
by IN
collapsed JJ
buildings NNS
and CC
damaged VBN
water NN
and CC
power NN
lines NNS
, ,
an DT
emergency NN
relief NN
spokesman NN
says NNS
. .

San NNP
Francisco NNP
Mayor NNP
Art NNP
Agnos NNP
estimated VBD
the DT
damage NN
to TO
his PRP$
city NN
alone RB
at IN
$ $
2 CD
billion CD
. .

But CC
many NN
predicted VBD
that IN
the DT
commercial JJ
disruption NN
would MD
be VB
short-lived JJ
. .

Of IN
the DT
scores NNS
of IN
companies NNS
contacted VBN
by IN
this DT
newspaper NN
, ,
few NN
reported VBD
any DT
damage NN
that IN
they PRP
did VBD
n't RB
expect VB
to TO
have VB
remedied VBN
within IN
a DT
day NN
or CC
two CD
. .

It PRP
is VBZ
possible JJ
, ,
of IN
course NN
, ,
that IN
some DT
of IN
the DT
most RBS
seriously RB
damaged VBN
companies NNS
could MD
n't RB
be VB
reached VBN
, ,
particularly RB
in IN
areas NNS
nearest JJS
the DT
epicenter NN
. .

Typical JJ
, ,
perhaps RB
, ,
was VBD
the DT
situation NN
at IN
New NNP
United NNP
Motor NNP
Manufacturing NNP
Inc. NNP
, ,
the DT
General NNP
Motors NNPS
Corp.-Toyota JJ
joint-venture JJ
auto NN
plant NN
in IN
Fremont NNP
, ,
about IN
35 CD
miles NNS
south RB
of IN
Oakland NNP
. .

Ten CD
of IN
the DT
plant NN
's POS
workers NNS
were VBD
injured VBN
when WRB
the DT
quake NN
hit VBD
about IN
a DT
half-hour NN
into IN
the DT
afternoon NN
shift NN
; :
seven CD
were VBD
hospitalized VBN
. .

Metal NN
racks NNS
on IN
the DT
plant NN
floor NN
fell VBD
over IN
, ,
and CC
water NN
mains NNS
ruptured VBN
, ,
a DT
spokeswoman NN
says NNS
. .

The DT
plant NN
was VBD
evacuated VBN
and CC
workers NNS
sent VBD
home NN
. .

But CC
the DT
plant NN
was VBD
able JJ
to TO
resume VB
limited JJ
production NN
of IN
its PRP$
Toyota NNP
Corollas NNPS
and CC
Geo NNP
Prizms NNPS
by IN
6 CD
a.m. NN
yesterday NN
, ,
and CC
absenteeism NN
was VBD
only RB
7 CD
% NN
of IN
the DT
work NN
force NN
, ,
about IN
twice RB
normal JJ
. .

Computer NN
maker NN
Hewlett-Packard NNP
Co. NNP
, ,
based VBN
in IN
Palo NNP
Alto NNP
, ,
says VBZ
one CD
of IN
its PRP$
buildings NNS
sustained VBD
severe JJ
damage NN
when WRB
it PRP
was VBD
knocked VBN
off IN
its PRP$
foundation NN
. .

Other JJ
buildings NNS
had VBD
broken VBN
glass NN
, ,
dangling VBG
light NN
fixtures NNS
and CC
broken VBN
pipes NNS
, ,
a DT
spokesperson NN
says VBZ
, ,
estimating VBG
the DT
cost NN
of IN
reconstruction NN
`` ``
in IN
the DT
millions NNS
. .
'' ''

Most JJS
banks NNS
were VBD
closed VBN
but CC
were VBD
expected VBN
to TO
reopen VB
today NN
with IN
few JJ
problems NNS
anticipated VBN
. .

At IN
the DT
Federal NNP
Reserve NNP
Bank NNP
of IN
San NNP
Francisco NNP
, ,
Vice NNP
President NNP
Robert NNP
Fienberg NNP
says VBZ
operations NNS
were VBD
`` ``
steaming VBG
along IN
as IN
usual JJ
'' ''
yesterday NN
afternoon NN
. .

` ``
When WRB
the DT
quake NN
hit VBD
, ,
we PRP
turned VBD
on IN
our PRP$
emergency NN
generator NN
and CC
brought VBN
our PRP$
computers NNS
up IN
, ,
'' ''
he PRP
says VBZ
. .

The DT
Fed NNP
serves VBZ
as IN
a DT
middleman NN
for IN
banks NNS
, ,
taking VBG
checks NNS
from IN
one CD
bank NN
and CC
sending VBG
them PRP
to TO
another DT
, ,
an DT
operation NN
that IN
it PRP
handled VBD
smoothly RB
Tuesday NNP
night NN
after IN
the DT
quake NN
. .

`` ``
The DT
volume NN
we PRP
received VBD
from IN
the DT
banks NNS
was VBD
a DT
lot NN
lower JJR
than IN
usual JJ
, ,
'' ''
he PRP
says VBZ
. .

A DT
disaster-contingency NN
plan NN
in IN
which WDT
the DT
Los NNP
Angeles NNP
Fed NNP
would MD
come VB
to TO
San NNP
Francisco NNP
's POS
aid NN
was VBD
n't RB
needed VBN
, ,
he PRP
adds VBZ
. .

Most JJS
of IN
the DT
telephone NN
problems NNS
in IN
the DT
immediate JJ
aftermath NN
stemmed VBD
from IN
congestion NN
. .

The DT
telephone NN
network NN
simply RB
could MD
n't RB
handle VB
the DT
large JJ
number NN
of IN
people NNS
seeking VBG
to TO
make VB
a DT
call NN
at IN
the DT
same JJ
time NN
. .

The DT
volume NN
resulted VBD
in IN
dial-tone NN
delays NNS
that WDT
were VBD
as RB
short JJ
as IN
15 CD
seconds NNS
and CC
as RB
long RB
as IN
five CD
minutes NNS
. .

Mr. NNP
Bandler NNP
puts VBZ
traffic NN
volume NN
at IN
10 CD
to TO
50 CD
times NNS
normal JJ
. .

American NNP
Telephone NNP
& CC
Telegraph NNP
Co. NNP
, ,
MCI NNP
Communications NNP
Inc. NNP
and CC
United NNP
Telecommunications NNP
' POS
U NNP
S NNP
Sprint NNP
unit NN
were VBD
blocking VBG
phone NN
calls NNS
into IN
the DT
Bay NNP
area NN
to TO
alleviate VB
congestion NN
. .

The DT
companies NNS
block VBP
traffic NN
much JJ
as IN
highway NN
on-ramps NNS
are VBP
blocked VBN
when WRB
traffic NN
backs NNS
up RB
. .

William NNP
E. NNP
Downing NNP
, ,
Pacific NNP
Bell NNP
's POS
vice NN
president NN
of IN
customer NN
services NNS
for IN
the DT
Bay NNP
area NN
, ,
says VBZ
most RBS
long-distance JJ
companies NNS
were VBD
blocking VBG
about IN
50 CD
% NN
of IN
all DT
calls VBZ
. .

Pacific NNP
Telesis NNP
says VBZ
its PRP$
Pacific NNP
Bell NNP
unit NN
also RB
was VBD
blocking VBG
about IN
50 CD
% NN
of IN
its PRP$
calls NNS
locally RB
. .
Ironically RB
, ,
the DT
long-term JJ
effect NN
of IN
the DT
earthquake NN
may MD
be VB
to TO
bolster VB
the DT
Bay NNP
area NN
's POS
economic JJ
fortunes NNS
and CC
, ,
indeed RB
, ,
the DT
nation NN
's POS
gross JJ
national JJ
product NN
. .

It PRP
may MD
also RB
lead VB
to TO
new JJ
safeguards NNS
in IN
major JJ
construction NN
projects NNS
such JJ
as IN
double-deck JJ
highways NNS
. .

`` ``
It PRP
would MD
in IN
the DT
near-term JJ
give NN
a DT
boost NN
to TO
the DT
San NNP
Francisco NNP
economy NN
because IN
there EX
will MD
be VB
an DT
influx NN
of IN
people NNS
to TO
help VB
, ,
'' ''
says VBZ
Beth NNP
Burnham NNP
Mace NNP
, ,
a DT
regional JJ
economist NN
at IN
DRI\/McGraw NNP
Hill NNP
, ,
a DT
Lexington NNP
, ,
Mass. NNP
, ,
forecasting NN
firm NN
. .

The DT
construction NN
industry NN
is VBZ
sure JJ
to TO
feel VB
increased VBN
demand NN
. .

`` ``
There EX
will MD
be VB
a DT
big JJ
influx NN
of IN
federal JJ
dollars NNS
and CC
gains NNS
in IN
state NN
, ,
federal JJ
and CC
local JJ
employment NN
, ,
'' ''
Ms. NNP
Mace NNP
says VBZ
. .

Adds VBZ
Stacy NNP
Kotman NNP
, ,
an DT
economist NN
at IN
Georgia NNP
State NNP
University NNP
, ,
`` ``
There EX
's VBZ
nothing NN
positive JJ
about IN
an DT
earthquake NN
, ,
but CC
it PRP
will MD
probably RB
generate VB
more JJR
construction NN
activity NN
. .
'' ''

Wall NNP
Street NNP
reacted VBD
swiftly RB
yesterday NN
to TO
the DT
disaster NN
by IN
bidding NN
up IN
stocks NNS
of IN
construction NN
and CC
related VBN
companies NNS
. .

Shares NNS
of IN
Lone NNP
Star NNP
Industries NNP
Inc. NNP
, ,
a DT
cement NN
maker NN
, ,
rose VBD
sharply RB
in IN
anticipation NN
of IN
stepped-up JJ
demand NN
. .

In IN
Greenwich NNP
, ,
Conn. NNP
, ,
Lone NNP
Star NNP
spokesman NN
Michael NNP
London NNP
says VBZ
, ,
`` ``
Obviously RB
with IN
an DT
earthquake NN
of IN
this DT
size NN
, ,
there EX
are VBP
likely JJ
to TO
be VB
construction NN
projects NNS
that WDT
would MD
n't RB
otherwise RB
have VB
been VBN
anticipated VBN
. .

But CC
any DT
increase NN
is VBZ
n't RB
likely JJ
to TO
be VB
any DT
kind NN
of IN
a DT
surge NN
. .

It PRP
's VBZ
something NN
likely JJ
to TO
be VB
spread VBN
out IN
over IN
a DT
long JJ
period NN
of IN
time NN
. .

There EX
will MD
be VB
a DT
lot NN
of IN
repair NN
work NN
that WDT
wo MD
n't RB
require VB
the DT
quantities NNS
of IN
cement NN
or CC
concrete JJ
that IN
new JJ
constructon NN
would MD
. .
'' ''
Lone NNP
Star NNP
's POS
San NNP
Francisco NNP
facilities NNS
were VBD
n't RB
damaged VBN
in IN
the DT
quake NN
. .

The DT
earthquake NN
is VBZ
likely JJ
to TO
reduce VB
GNP NNP
negligibly RB
in IN
the DT
near JJ
term NN
and CC
then RB
could MD
raise VB
it PRP
a DT
bit NN
as IN
rebuilding VBG
begins VBZ
. .

The DT
first JJ
effects NNS
are VBP
, ,
of IN
course NN
, ,
negative JJ
as IN
work NN
is VBZ
disrupted VBN
and CC
people NNS
lose VBP
income NN
and CC
cut VB
spending NN
. .
Corporate JJ
profits NNS
may MD
also RB
dip VB
initially RB
. .

Many JJ
of IN
the DT
lost VBN
tourism NN
dollars NNS
wo MD
n't RB
be VB
recovered VBN
; :
many JJ
trips NNS
delayed VBN
never RB
take VB
place NN
. .

Subsequently RB
, ,
however RB
, ,
the DT
ill JJ
effects NNS
are VBP
likely JJ
to TO
be VB
offset VB
, ,
at IN
least JJS
in IN
economic JJ
terms NNS
, ,
as IN
construction NN
activity NN
begins VBZ
. .

Because IN
of IN
the DT
way NN
the DT
government NN
keeps VBZ
its PRP$
books NNS
, ,
the DT
damage NN
to TO
the DT
Bay NNP
Bridge NNP
, ,
however RB
costly JJ
, ,
wo MD
n't RB
be VB
counted VBN
as IN
a DT
minus CC
. .

The DT
money NN
spent VBD
on IN
repairs NNS
will MD
be VB
counted VBN
as IN
a DT
plus CC
. .

`` ``
It PRP
's VBZ
very RB
difficult JJ
to TO
model VB
the DT
long-term JJ
impact NN
of IN
this DT
, ,
'' ''
says VBZ
Andrew NNP
Goldberg NNP
, ,
who WP
studies VBZ
the DT
public-policy NN
and CC
crisis-management JJ
aspects NNS
of IN
earthquakes NNS
at IN
the DT
Center NNP
for IN
Strategic NNP
International NNP
Studies NNS
in IN
Washington NNP
, ,
D.C NNP
. .

`` ``
You PRP
certainly RB
can MD
say VB
it PRP
's VBZ
going VBG
to TO
be VB
extremely RB
severe JJ
. .

We PRP
really RB
are VBP
talking VBG
about IN
shutting VBG
down RP
a DT
major JJ
American JJ
city NN
for IN
a DT
number NN
of IN
days NNS
, ,
maybe RB
for IN
a DT
few JJ
weeks NNS
. .
'' ''

Mr. NNP
Goldberg NNP
says VBZ
the DT
cost NN
of IN
the DT
earthquake NN
will MD
definitely RB
top JJ
$ $
1 CD
billion CD
and CC
could MD
reach VB
$ $
4 CD
billion CD
. .

He PRP
cautions VBZ
that IN
early JJ
damage NN
estimates NNS
are VBP
often RB
low JJ
; :
the DT
damage NN
totals VBZ
in IN
Hurricane NNP
Hugo NNP
increased VBD
tenfold RB
as IN
more JJR
information NN
was VBD
received VBN
. .

The DT
earthquake NN
damage NN
, ,
of IN
course NN
, ,
would MD
have VB
been VBN
far RB
greater JJR
if IN
the DT
epicenter NN
had VBD
been VBN
in IN
downtown NN
San NNP
Francisco NNP
. .

A DT
direct JJ
hit VBD
on IN
a DT
major JJ
city NN
, ,
Mr. NNP
Goldberg NNP
figures VBZ
, ,
would MD
cause VB
$ $
20 CD
billion CD
to TO
$ $
40 CD
billion CD
of IN
damage NN
. .

Experts NNS
caution VBP
that IN
it PRP
is VBZ
far RB
too RB
soon RB
for IN
reliable JJ
estimates NNS
of IN
the DT
quake NN
's POS
total JJ
damage NN
, ,
but CC
it PRP
's VBZ
clear JJ
that IN
insurers NNS
are VBP
likely JJ
to TO
pay VB
out RP
enormous JJ
sums NNS
. .

Jack NNP
Byrne NNP
, ,
the DT
chairman NN
of IN
Fireman NNP
's POS
Fund NNP
Corp. NNP
, ,
which WDT
is VBZ
based VBN
in IN
Novato NNP
, ,
Calif. NNP
, ,
estimates NNS
insured VBD
losses NNS
resulting VBG
the DT
earthquake NN
could MD
total VB
$ $
2 CD
billion CD
. .

The DT
impact NN
on IN
the DT
insurance NN
industry NN
`` ``
will MD
be VB
big JJ
and CC
harsh JJ
, ,
but CC
less JJR
than IN
-LCB- (
Hurricane NNP
-RCB- )
Hugo NNP
, ,
'' ''
says VBZ
Mr. NNP
Byrne NNP
, ,
who WP
toured VBD
the DT
Bay NNP
area NN
by IN
car NN
yesterday NN
afternoon NN
to TO
get VB
a DT
sense NN
of IN
the DT
company NN
's POS
exposure NN
to TO
the DT
earthquake NN
. .

Mr. NNP
Byrne NNP
says VBZ
Fireman NNP
's POS
Fund NNP
will MD
probably RB
pay VB
hundreds NNS
of IN
millions NNS
in IN
primary JJ
claims NNS
, ,
but CC
, ,
after IN
taxes NNS
and CC
use NN
of IN
its PRP$
reinsurance NN
lines NNS
, ,
the DT
company NN
's POS
fourthquarter NN
charge NN
against IN
earnings NNS
should MD
n't RB
top JJ
$ $
50 CD
million CD
. .

The DT
company NN
was VBD
able JJ
to TO
assess VB
its PRP$
damage NN
liability NN
quickly RB
because IN
it PRP
has VBZ
computerized JJ
maps NNS
of IN
Northern NNP
California NNP
showing VBG
the DT
exact JJ
locations NNS
of IN
all PDT
the DT
property NN
it PRP
insures VBZ
. .

Fireman NNP
's POS
Fund NNP
had VBD
claims NNS
adjusters NNS
on IN
the DT
streets NNS
of IN
San NNP
Francisco NNP
right NN
after IN
sunrise NN
yesterday NN
and CC
was VBD
paying VBG
as IN
many JJ
claims NNS
as IN
it PRP
could MD
right VB
on IN
the DT
spot NN
. .

Fireman NNP
's POS
Fund NNP
insures VBZ
37,300 CD
homes NNS
and CC
autos NNS
and CC
35,000 CD
businesses NNS
in IN
the DT
Bay NNP
area NN
. .

In IN
addition NN
to TO
paying VBG
for IN
earthquake NN
and CC
fire NN
damage NN
, ,
the DT
insurer NN
must MD
cover VB
worker-compensation NN
claims NNS
and CC
also RB
losses NNS
due JJ
to TO
businesses NNS
being VBG
shut VBN
down RB
by IN
lack NN
of IN
power NN
or CC
phone NN
service NN
. .

But CC
many JJ
Californians NNS
may MD
not RB
have VB
adequate JJ
insurance NN
coverage NN
to TO
pay VB
for IN
damages NNS
to TO
their PRP$
property NN
. .

The DT
Independent NNP
Insurance NNP
Agents NNS
of IN
America NNP
says VBZ
fewer JJR
than IN
one CD
of IN
every DT
five CD
California NNP
homeowners NNS
has VBZ
earthquake NN
insurance NN
. .

A DT
somewhat RB
higher JJR
percentage NN
of IN
people NNS
living VBG
in IN
the DT
Bay NNP
area NN
have VBP
bought VBN
the DT
additional JJ
insurance NN
protection NN
, ,
but CC
the DT
great JJ
majority NN
are VBP
n't RB
covered VBN
. .

Earthquake NN
insurance NN
typically RB
runs VBZ
$ $
200 CD
or CC
more JJR
a DT
year NN
for IN
a DT
small JJ
house NN
. .

Whatever WDT
the DT
long-term JJ
economic JJ
effect NN
, ,
the DT
scene NN
from IN
the DT
helicopter NN
above IN
Oakland NNP
is VBZ
one CD
of IN
tragedy NN
. .

Gargantuan JJ
sections NNS
of IN
a DT
double-decker JJ
freeway NN
have VBP
been VBN
heaved VBN
about IN
like IN
plastic NN
building NN
blocks NNS
. .

Atop IN
them PRP
sit VBP
cars NNS
and CC
trucks NNS
abandoned VBN
in IN
a DT
terrifying JJ
scramble NN
to TO
safety VB
the DT
day NN
before RB
. .

In IN
areas NNS
where WRB
the DT
freeway NN
made VBD
giant NN
concrete JJ
sandwiches NNS
of IN
itself PRP
lie VBP
cars NNS
that WDT
police NN
say VBP
have VBP
been VBN
flattened VBN
into IN
foot-thick JJ
slabs NNS
. .

On IN
the DT
periphery NN
, ,
rescue NN
workers NNS
seem VBP
, ,
from IN
the DT
air NN
, ,
to TO
move VB
in IN
slow JJ
motion NN
. .

They PRP
peck VBP
away RB
at IN
the DT
1 CD
1\/2-mile JJ
section NN
of IN
rubble NN
, ,
searching VBG
for IN
more JJR
of IN
the DT
250 CD
people NNS
thought VBD
to TO
have VB
died VBN
here RB
. .

About IN
20 CD
other JJ
deaths NNS
were VBD
also RB
attributed VBN
to TO
the DT
earthquake NN
. .

The DT
heart NN
of IN
the DT
earthquake NN
, ,
6.9 CD
on IN
the DT
Richter NNP
scale NN
, ,
was VBD
50 CD
miles NNS
to TO
the DT
south RB
, ,
near IN
Santa NNP
Cruz NNP
, ,
but CC
its PRP$
terrible JJ
fist NN
struck VBD
here RB
on IN
the DT
Nimitz NNP
Freeway NNP
, ,
a DT
major JJ
artery NN
serving VBG
the DT
Bay NNP
Bridge NNP
between IN
Oakland NNP
and CC
San NNP
Francisco NNP
. .

Along IN
the DT
way NN
, ,
the DT
quake NN
toppled VBD
a DT
mall NN
in IN
Santa NNP
Cruz NNP
, ,
knocked VBD
down JJ
buildings NNS
in IN
San NNP
Francisco NNP
's POS
fashionable JJ
Marina NNP
District NNP
and CC
sent VBD
a DT
wall NN
of IN
bricks NNS
crashing VBG
on IN
motorists NNS
in IN
the DT
city NN
's POS
Financial NNP
District NNP
. .

Just RB
a DT
short JJ
span NN
across IN
the DT
bay NN
to TO
the DT
west NN
, ,
the DT
quake NN
also RB
showed VBD
its PRP$
mettle NN
: :
A DT
four-square-block JJ
area NN
of IN
the DT
Marina NNP
District NNP
lies VBZ
smoldering VBG
under IN
a DT
steady JJ
stream NN
of IN
seawater NN
being VBG
pumped VBN
onto IN
rubble NN
to TO
prevent VB
it PRP
from IN
blazing VBG
anew RB
. .

Many JJ
of IN
the DT
buildings NNS
, ,
mostly JJ
condominiums NNS
and CC
apartments NNS
, ,
were VBD
flattened VBN
almost RB
instantly RB
as IN
the DT
underlying VBG
soil NN
-- :
much NN
of IN
it PRP
landfill NN
-- :
was VBD
literally RB
turned VBN
to TO
ooze VB
by IN
the DT
quake NN
's POS
intensive JJ
shaking NN
, ,
rupturing VBG
gas NN
lines NNS
. .

Onlookers NNS
say VBP
three CD
persons NNS
died VBD
when WRB
one CD
of IN
the DT
buildings NNS
exploded VBD
into IN
a DT
fireball NN
shortly RB
after IN
the DT
quake NN
struck VBD
. .

Efforts NNS
to TO
fight VB
the DT
blaze NN
were VBD
hampered VBN
because IN
water NN
mains NNS
were VBD
severed VBN
as IN
well RB
. .

From IN
the DT
air NN
, ,
ribbons NNS
of IN
yellow JJ
fire NN
hose NN
carry NN
water NN
from IN
the DT
bay NN
to TO
high-pressure JJ
nozzles NNS
trained VBN
on IN
the DT
site NN
. .

As IN
onlookers NNS
stand VBP
behind IN
barricades NNS
, ,
helmeted JJ
firemen NNS
and CC
building NN
inspectors NNS
survey VBP
rows NNS
of IN
nearby JJ
buildings NNS
that WDT
were VBD
twisted VBN
from IN
their PRP$
foundations NNS
and CC
seem VB
on IN
the DT
verge NN
of IN
collapse NN
. .

In IN
the DT
Marina NNP
District NNP
, ,
residents NNS
spent VBD
yesterday NN
assessing VBG
damage NN
, ,
cleaning NN
up IN
and CC
trying VBG
to TO
find VB
friends NNS
and CC
neighbors NNS
. .

Evelyn NNP
Boccone NNP
, ,
85 CD
years NNS
old JJ
, ,
has VBZ
lived VBN
in IN
the DT
district NN
most RBS
of IN
her PRP$
life NN
. .

Her PRP$
parents NNS
lost VBD
everything NN
in IN
the DT
1906 CD
earthquake NN
. .

`` ``
Now RB
, ,
we PRP
realize VBP
what WP
our PRP$
mothers NNS
must MD
have VB
gone VBN
through IN
, ,
'' ''
she PRP
says VBZ
. .

`` ``
We PRP
always RB
heard VBD
about IN
the DT
earthquake NN
, ,
but CC
as IN
children NNS
we PRP
did VBD
n't RB
always RB
listen VB
. .

PRINCE NNP
HENRI NNP
is VBZ
the DT
crown NN
prince NN
and CC
hereditary JJ
grand JJ
duke NN
of IN
Luxembourg NNP
. .

An DT
article NN
in IN
the DT
World NNP
Business NNP
Report NNP
of IN
Sept. NNP
22 CD
editions NNS
incorrectly RB
referred VBN
to TO
his PRP$
father NN
, ,
Grand NNP
Duke NNP
Jean NNP
, ,
as IN
the DT
crown NN
prince NN
. .

Resolution NNP
Funding NNP
Corp. NNP
plans VBZ
to TO
sell VB
$ $
4.5 CD
billion CD
of IN
30-year JJ
bonds NNS
Wednesday NNP
in IN
the DT
agency NN
's POS
first JJ
sale NN
of IN
securities NNS
. .

The DT
new JJ
bonds NNS
will MD
be VB
dated VBN
Oct. NNP
30 CD
and CC
mature NNP
Oct. NNP
15 CD
, ,
2019 CD
. .

Tenders NNS
for IN
the DT
bonds NNS
, ,
available JJ
in IN
minimum JJ
denominations NNS
of IN
$ $
1,000 CD
, ,
must MD
be VB
received VBN
by IN
1 CD
p.m. NN
EDT NNP
Wednesday NNP
at IN
Federal NNP
Reserve NNP
banks NNS
. .

Refcorp NNP
, ,
created VBN
by IN
the DT
thrift-overhaul NN
law NN
enacted VBN
in IN
August NNP
, ,
will MD
use VB
the DT
proceeds NNS
to TO
merge VB
or CC
sell VB
off IN
ailing VBG
savings-and-loan JJ
institutions NNS
. .

Congress NNP
authorized VBD
$ $
50 CD
billion CD
to TO
be VB
borrowed VBN
to TO
pay VB
for IN
the DT
thrift NN
bailout NN
. .

Of IN
that DT
amount NN
, ,
$ $
20 CD
billion CD
has VBZ
already RB
been VBN
borrowed VBN
by IN
the DT
Treasury NNP
Department NNP
. .

Unless IN
otherwise RB
specified VBN
in IN
a DT
particular JJ
offer NN
, ,
the DT
bonds NNS
wo MD
n't RB
be VB
subject NN
to TO
redemption NN
prior RB
to TO
maturity NN
. .

Interest NN
payments NNS
on IN
the DT
bonds NNS
will MD
be VB
payable JJ
semiannually RB
. .
The DT
bonds NNS
are VBP
subject NN
to TO
federal JJ
taxation NN
in IN
the DT
U.S. NNP
, ,
including VBG
income NN
taxes NNS
. .

At IN
the DT
state NN
and CC
local JJ
level NN
, ,
the DT
bonds NNS
are VBP
subject NN
to TO
surtaxes NNS
and CC
estate NN
, ,
inheritance NN
and CC
gift NN
taxes NNS
, ,
but CC
exempt JJ
from IN
taxation NN
as IN
to TO
principal NN
and CC
interest NN
. .

G.D. NNP
Searle NNP
& CC
Co. NNP
, ,
a DT
Monsanto NNP
Co. NNP
unit NN
, ,
is VBZ
launching VBG
a DT
program NN
to TO
give VB
consumers NNS
more JJR
information NN
about IN
its PRP$
drugs NNS
when WRB
doctors NNS
prescribe VBP
them PRP
. .

Called VBN
Patients NNS
in IN
the DT
Know VB
, ,
the DT
program NN
features NNS
fact NN
sheets NNS
designed VBN
to TO
be VB
easy JJ
to TO
understand VB
. .

The DT
sheets NNS
tell VBP
how WRB
the DT
medicine NN
works NNS
, ,
describe VB
how WRB
to TO
use VB
it PRP
and CC
list VB
its PRP$
possible JJ
side NN
effects NNS
. .

They PRP
are VBP
designed VBN
to TO
be VB
given VBN
to TO
patients NNS
by IN
their PRP$
doctors NNS
when WRB
the DT
medicines NNS
are VBP
prescribed VBN
and CC
include VBP
space NN
for IN
the DT
doctor NN
to TO
write VB
special JJ
instructions NNS
. .

In IN
addition NN
, ,
Searle NNP
will MD
give VB
pharmacists NNS
brochures NNS
on IN
the DT
use NN
of IN
prescription NN
drugs NNS
for IN
distribution NN
in IN
their PRP$
stores NNS
. .

Consumer NN
groups NNS
have VBP
long RB
advocated VBN
that IN
drug NN
companies NNS
and CC
doctors NNS
make VBP
more JJR
information NN
available JJ
to TO
patients NNS
. .

`` ``
We PRP
believe VBP
that IN
every DT
drug NN
that WDT
's VBZ
marketed VBN
to TO
a DT
consumer NN
should MD
have VB
a DT
consumer NN
label NN
, ,
'' ''
said VBD
Douglas NNP
Teich NNP
of IN
the DT
Public NNP
Citizen NNP
Health NNP
Research NNP
Group NNP
, ,
a DT
Ralph NNP
Nader NNP
affiliate NN
. .

Dr. NNP
Teich NNP
said VBD
Searle NNP
is VBZ
`` ``
the DT
only JJ
company NN
I PRP
know VBP
that IN
voluntarily RB
'' ''
will MD
make VB
consumer NN
information NN
available JJ
. .

According VBG
to TO
federal JJ
officials NNS
and CC
drug-industry NN
studies NNS
, ,
nearly RB
half NN
of IN
the DT
1.6 CD
billion CD
prescriptions NNS
filled VBD
each DT
year NN
are VBP
n't RB
used VBN
properly RB
, ,
meaning VBG
that DT
money NN
is VBZ
wasted VBN
on IN
some DT
prescriptions NNS
and CC
patients NNS
are VBP
deprived VBN
of IN
the DT
benefits NNS
of IN
medication NN
. .

`` ``
We PRP
think VBP
it PRP
's VBZ
very RB
important JJ
to TO
provide VB
as IN
much JJ
information NN
as IN
possible JJ
on IN
the DT
drugs NNS
consumers NNS
take VBP
, ,
'' ''
said VBD
Searle NNP
Chairman NNP
Sheldon NNP
Gilgore NNP
. .

Bond NN
prices NNS
rambled VBD
yesterday NN
as IN
investors NNS
kept VBD
close VB
watch NN
on IN
the DT
stock NN
market NN
and CC
worried VBN
about IN
a DT
wave NN
of IN
new JJ
supply NN
. .

Early JJ
yesterday NN
, ,
bonds NNS
rose VBD
as IN
investors NNS
rushed VBD
to TO
buy VB
Treasury NNP
securities NNS
on IN
the DT
prospect NN
that IN
stocks NNS
would MD
plummet VB
in IN
the DT
aftermath NN
of IN
the DT
massive JJ
California NNP
earthquake NN
. .

For IN
example NN
, ,
some DT
securities NNS
analysts NNS
warned VBD
that IN
stocks NNS
of IN
certain JJ
insurance NN
companies NNS
, ,
which WDT
face VBP
massive JJ
damage NN
claims NNS
, ,
would MD
get VB
hit VB
hard JJ
. .

But CC
when WRB
the DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
rose VBD
instead RB
, ,
bonds NNS
drifted VBD
lower JJR
. .

With IN
stocks NNS
not RB
a DT
major JJ
focus NN
, ,
`` ``
we PRP
're VBP
waiting VBG
for IN
the DT
next JJ
guiding VBG
light NN
, ,
'' ''
said VBD
Brian NNP
J. NNP
Fabbri NNP
, ,
chief JJ
economist NN
at IN
Midland NNP
Montagu NNP
Securities NNP
Inc NNP
. .

`` ``
If IN
the DT
stock NN
market NN
tremors NNS
are VBP
behind IN
us PRP
, ,
then RB
the DT
bond NN
market NN
will MD
go VB
back RB
to TO
looking VBG
at IN
the DT
next JJ
batch NN
of IN
economic JJ
numbers NNS
to TO
determine VB
'' ''
where WRB
interest NN
rates NNS
are VBP
heading VBG
. .
The DT
Treasury NNP
's POS
benchmark NN
30-year JJ
bond NN
, ,
which WDT
jumped VBD
3\/8 CD
point NN
, ,
or CC
about RB
$ $
3.75 CD
for IN
each DT
$ $
1,000 CD
face NN
amount NN
, ,
during IN
the DT
first JJ
hour NN
of IN
trading NN
, ,
ended VBD
little RB
changed VBN
. .

Interest NN
rates NNS
barely RB
budged VBD
from IN
Tuesday NNP
's POS
levels NNS
. .

Most JJS
junk NN
bonds NNS
, ,
which WDT
have VBP
been VBN
battered VBN
in IN
recent JJ
weeks NNS
, ,
continued VBD
a DT
slow JJ
recuperation NN
and CC
ended VBD
unchanged JJ
to TO
slightly RB
higher JJR
. .

But CC
some DT
so-called JJ
high-quality JJ
junk NN
issues NNS
fell VBD
as IN
some DT
mutual JJ
funds NNS
sold VBD
their PRP$
most RBS
liquid JJ
issues NNS
to TO
raise VB
cash NN
. .

RJR NNP
Holdings NNP
Capital NNP
Corp. NNP
's POS
14.7 CD
% NN
bonds NNS
due JJ
2009 CD
fell VBD
one CD
point NN
. .

Other NNP
RJR NNP
issues NNS
fell VBD
between IN
1\/2 CD
point NN
and CC
1 CD
1\/2 CD
point NN
. .
In IN
the DT
latest JJS
sign NN
of IN
how WRB
difficult JJ
it PRP
is VBZ
to TO
place VB
certain JJ
junk NN
bonds NNS
, ,
Continental NNP
Airlines NNPS
said VBD
it PRP
was VBD
forced VBN
to TO
scale VB
back RB
the DT
size NN
of IN
its PRP$
latest JJS
offering NN
. .

Continental NNP
, ,
a DT
unit NN
of IN
Texas NNP
Air NNP
Corp. NNP
, ,
slashed VBD
the DT
size NN
of IN
its PRP$
note NN
offering NN
from IN
$ $
150 CD
million CD
to TO
$ $
71 CD
million CD
. .

The DT
move NN
had VBD
been VBN
widely RB
expected VBN
. .

In IN
the DT
multipart JJ
offering NN
, ,
the DT
company NN
sold VBD
a DT
portion NN
of IN
secured VBN
notes NNS
but CC
shelved VBD
all PDT
the DT
unsecured JJ
notes NNS
. .

A DT
Continental NNP
spokeswoman NN
said VBD
the DT
notes NNS
may MD
be VB
offered VBN
at IN
a DT
later JJ
date NN
. .

`` ``
This DT
was VBD
not RB
a DT
do-or-die JJ
deal NN
, ,
'' ''
she PRP
said VBD
. .

`` ``
I PRP
think VBP
this DT
is VBZ
a DT
market NN
that WDT
required VBD
some DT
level NN
of IN
security NN
. .

It PRP
did VBD
not RB
make VB
sense NN
to TO
offer VB
unsecured JJ
paper NN
in IN
an DT
unsettling JJ
market NN
. .
'' ''

Investors NNS
have VBP
been VBN
speculating VBG
for IN
weeks NNS
about IN
the DT
market NN
's POS
ability NN
to TO
place VB
the DT
$ $
7 CD
billion CD
to TO
$ $
10 CD
billion CD
of IN
new JJ
junk NN
bonds NNS
scheduled VBN
to TO
be VB
sold VBN
by IN
year NN
end NN
. .

Supply NN
troubles NNS
were VBD
also RB
on IN
the DT
minds NNS
of IN
Treasury NNP
investors NNS
yesterday NN
, ,
who WP
worried VBD
about IN
the DT
flood NN
of IN
new JJ
government NN
securities NNS
coming VBG
next JJ
week NN
. .

`` ``
We PRP
're VBP
being VBG
bombarded VBN
by IN
new JJ
Treasury NNP
and CC
agency NN
debt NN
offerings NNS
, ,
'' ''
said VBD
William NNP
Sullivan NNP
Jr. NNP
, ,
director NN
of IN
money-market JJ
research NN
at IN
Dean NNP
Witter NNP
Reynolds NNP
Inc NNP
. .
`` ``
The DT
market NN
is VBZ
concerned VBN
about IN
its PRP$
ability NN
to TO
underwrite VB
all PDT
this DT
debt NN
at IN
current JJ
levels NNS
. .
'' ''

In IN
addition NN
to TO
the DT
$ $
15.6 CD
billion CD
of IN
Treasury NNP
bills NNS
to TO
be VB
sold VBN
at IN
next JJ
week NN
's POS
regular JJ
Monday NNP
auction NN
, ,
the DT
government NN
will MD
sell VB
$ $
10 CD
billion CD
of IN
new JJ
two-year JJ
Treasury NNP
notes NNS
. .

And CC
Resolution NNP
Funding NNP
Corp. NNP
said VBD
late JJ
yesterday NN
that IN
it PRP
will MD
sell VB
$ $
4.5 CD
billion CD
of IN
30-year JJ
bonds NNS
Wednesday NNP
. .

Refcorp NNP
is VBZ
the DT
financing NN
unit NN
of IN
Resolution NNP
Trust NNP
Corp. NNP
, ,
a DT
new JJ
government NN
agency NN
created VBN
to TO
rescue VB
the DT
nation NN
's POS
troubled JJ
thrifts NNS
. .

Its PRP$
securities NNS
have VBP
been VBN
dubbed VBN
`` ``
bailout NN
bonds NNS
'' ''
by IN
traders NNS
. .

In IN
when-issued JJ
trading NN
, ,
the DT
two-year JJ
Treasurys NNPS
had VBD
a DT
yield NN
of IN
about IN
7.88 CD
% NN
. .

In IN
the DT
municipal JJ
market NN
, ,
all DT
eyes NNS
were VBD
on IN
California NNP
debt NN
as IN
investors NNS
tried VBD
to TO
gauge VB
the DT
financial JJ
ramifications NNS
of IN
Tuesday NNP
's POS
earthquake NN
. .

But CC
traders NNS
said VBD
the DT
quake NN
had VBD
only RB
a DT
minor JJ
impact NN
on IN
the DT
trading NN
of IN
California NNP
state NN
and CC
local JJ
municipal JJ
debt NN
. .

`` ``
There EX
are VBP
certain JJ
bonds NNS
traders NNS
refer VBP
to TO
as IN
` ``
earthquake NN
' ''
bonds NNS
because IN
the DT
-LRB- (
issuers NNS
-RRB- )
are VBP
on IN
top NN
of IN
the DT
San NNP
Andreas NNP
fault NN
, ,
'' ''
said VBD
Zane NNP
Mann NNP
, ,
editor NN
of IN
the DT
California NNP
Municipal NNP
Bond NNP
Advisor NNP
, ,
a DT
newsletter NN
for IN
investors NNS
. .

Since IN
those DT
bonds NNS
already RB
pay VBP
a DT
slightly RB
higher JJR
yield VB
, ,
an DT
extra JJ
premium NN
for IN
the DT
earthquake NN
risk NN
, ,
they PRP
were VBD
n't RB
materially RB
affected VBN
. .

But CC
some DT
bond NN
market NN
analysts NNS
said VBD
that WDT
could MD
quickly RB
change VB
if IN
property NN
casualty NN
insurance NN
companies NNS
scramble VBP
to TO
sell VB
portions NNS
of IN
their PRP$
municipal JJ
portfolios NNS
to TO
raise VB
cash NN
to TO
pay VB
damage NN
claims NNS
. .

`` ``
Insurance NNP
companies NNS
will MD
foot VB
a DT
substantial JJ
amount NN
of IN
the DT
bill NN
to TO
reconstruct VB
San NNP
Francisco NNP
, ,
'' ''
said VBD
Charles NNP
Lieberman NNP
, ,
chief JJ
economist NN
at IN
Manufacturers NNP
Hanover NNP
Securities NNP
Corp NNP
. .

He PRP
also RB
expects VBZ
the DT
performance NN
of IN
municipals NNS
to TO
lag VB
Treasurys NNPS
as IN
California NNP
is VBZ
forced VBN
to TO
issue VB
new JJ
debt NN
over IN
time NN
to TO
repair VB
public JJ
facilities NNS
. .

A DT
report NN
issued VBD
late JJ
yesterday NN
by IN
Standard NNP
& CC
Poor NNP
's POS
Corp. NNP
concluded VBD
the DT
quake NN
wo MD
n't RB
cause VB
`` ``
wide-scale JJ
credit NN
deterioration NN
'' ''
for IN
issuers NNS
and CC
debt NN
issues NNS
in IN
the DT
12-county JJ
area NN
of IN
Northern NNP
California NNP
affected VBN
by IN
the DT
quake NN
. .

Treasury NNP
Securities NNPS

Treasury NN
bonds NNS
ended VBD
narrowly RB
mixed VBN
in IN
quiet JJ
trading NN
. .

The DT
benchmark NN
30-year JJ
bond NN
ended VBD
at IN
a DT
price NN
of IN
100 CD
29\/32 CD
to TO
yield VB
8.03 CD
% NN
, ,
compared VBN
with IN
100 CD
28\/32 CD
to TO
yield VB
8.04 CD
% NN
Tuesday NNP
. .
The DT
latest JJS
10-year JJ
notes NNS
were VBD
quoted VBN
late RB
at IN
a DT
price NN
of IN
99 CD
26\/32 CD
to TO
yield VB
8 CD
% NN
, ,
compared VBN
with IN
99 CD
25\/32 CD
to TO
yield VB
8.01 CD
% NN
. .

Short-term JJ
rates NNS
were VBD
little RB
changed VBN
. .

Corporate JJ
Issues NNS

Investment-grade JJ
corporate JJ
bonds NNS
ended VBD
1\/4 CD
point NN
lower JJR
. .

The DT
Continental NNP
junk NN
bond NN
offering NN
, ,
underwritten VBN
by IN
Drexel NNP
Burnham NNP
Lambert NNP
Inc. NNP
, ,
was VBD
the DT
only RB
new JJ
issue NN
priced VBD
yesterday NN
. .

In IN
the DT
four-part JJ
offering NN
, ,
the DT
$ $
71 CD
million CD
of IN
secured VBN
equipment NN
certificates NNS
was VBD
priced VBN
to TO
yield VB
13.75 CD
% NN
to TO
15.75 CD
% NN
. .

Municipals NNS

Municipal JJ
bonds NNS
ended VBD
about IN
1\/8 CD
to TO
3\/8 CD
point NN
lower RBR
, ,
hurt VBN
by IN
the DT
circulation NN
of IN
two CD
`` ``
bid-wanted JJ
'' ''
lists NNS
totaling VBG
$ $
655 CD
million CD
. .

Chemical NNP
Securities NNP
Inc. NNP
is VBZ
acting VBG
as IN
agent NN
for IN
the DT
seller NN
. .

Meanwhile RB
, ,
some DT
California NNP
issues NNS
were VBD
down RP
a DT
touch NN
more JJR
than IN
the DT
broad JJ
market NN
, ,
but CC
traders NNS
said VBD
there EX
had VBD
n't RB
been VBN
much JJ
investor NN
selling VBG
because IN
of IN
the DT
quake NN
. .

But CC
New NNP
York NNP
City NNP
general JJ
obligation NN
bonds NNS
came VBD
under IN
selling VBG
pressure NN
. .
Traders NNS
said VBD
a DT
steady JJ
stream NN
of IN
bonds NNS
was VBD
put VBN
up IN
for IN
sale NN
yesterday NN
, ,
pushing VBG
yields NNS
for IN
longer RB
maturities NNS
up IN
0.05 CD
percentage NN
point NN
. .

Traders NNS
said VBD
investors NNS
were VBD
reacting VBG
to TO
recent JJ
negative JJ
news NN
on IN
the DT
city NN
's POS
finances NNS
and CC
are VBP
nervous JJ
ahead RB
of IN
the DT
Nov. NNP
7 CD
election NN
. .

Washington NNP
, ,
D.C. NNP
, ,
topped VBD
the DT
competitive JJ
slate NN
yesterday NN
with IN
a DT
sale NN
of IN
$ $
200 CD
million CD
of IN
general JJ
obligation NN
tax NN
revenue NN
anticipation NN
notes NNS
. .

In IN
late JJ
trading NN
, ,
New NNP
Jersey NNP
Turnpike NNP
Authority NNP
's POS
7.20 CD
% NN
issue NN
of IN
2018 CD
was VBD
off IN
1\/4 CD
point NN
at IN
98 CD
bid NN
. .

The DT
yield NN
was VBD
7.35 CD
% NN
, ,
up IN
0.01 CD
percentage NN
point NN
. .

Mortgage-Backed JJ
Securities NNPS

Mortgage NN
securities NNS
ended VBD
little RB
changed VBN
after IN
light NN
dealings NNS
. .

There EX
was VBD
no DT
appreciable JJ
market NN
impact NN
from IN
the DT
California NNP
earthquake NN
. .

Dealers NNS
said VBD
there EX
was VBD
some DT
concern NN
that IN
insurance NN
companies NNS
might MD
be VB
forced VBN
to TO
sell VB
mortgage NN
securities NNS
to TO
help VB
pay VB
earthquake-related JJ
claims NNS
, ,
but CC
no DT
selling NN
materialized VBD
. .

The DT
Federal NNP
Home NNP
Loan NNP
Mortgage NNP
Corp. NNP
and CC
Federal NNP
National NNP
Mortgage NNP
Association NNP
, ,
two CD
dominant JJ
issuers NNS
of IN
mortgage NN
securities NNS
, ,
have VBP
a DT
sizable JJ
amount NN
of IN
California NNP
home NN
loans NNS
in IN
their PRP$
mortgagebacked JJ
pools NNS
. .

But CC
their PRP$
potential JJ
quake NN
exposure NN
is VBZ
seen VBN
as IN
small JJ
given VBN
that IN
they PRP
require VBP
a DT
financial JJ
cushion NN
on IN
all PDT
the DT
loans NNS
they PRP
purchase VBP
. .

And CC
because IN
Northern NNP
California NNP
home NN
prices NNS
are VBP
so RB
high JJ
, ,
loans VBZ
from IN
the DT
region NN
often RB
are VBP
too RB
large JJ
to TO
be VB
included VBN
in IN
Freddie NNP
Mac NNP
and CC
Fannie NNP
Mae NNP
pools NNS
. .

Meanwhile RB
, ,
Government NNP
National NNP
Mortgage NNP
Association NNP
9 CD
% NN
securities NNS
for IN
November NNP
delivery NN
ended VBD
at IN
97 CD
29\/32 CD
, ,
unchanged JJ
. .

Freddie NNP
Mac NNP
9 CD
% NN
securities NNS
were VBD
at IN
97 CD
4\/32 CD
, ,
down RB
1\/32 CD
. .

In IN
derivative JJ
markets NNS
, ,
Fannie NNP
Mae NNP
issued VBD
two CD
$ $
400 CD
million CD
real JJ
estate NN
mortgage NN
investment NN
conduits NNS
backed VBN
by IN
its PRP$
9 CD
% NN
securities NNS
. .

Foreign JJ
Bonds NNS

British JJ
government NN
bonds NNS
, ,
or CC
gilts NNS
, ,
ended VBD
moderately RB
lower JJR
as IN
equities NNS
there RB
recovered VBD
from IN
Tuesday NNP
's POS
drop NN
. .

The DT
Treasury NNP
's POS
11 CD
3\/4 CD
% NN
bond NN
due JJ
2003\/2007 CD
fell VBD
11\/32 CD
to TO
111 CD
31\/32 CD
to TO
yield VB
10.08 CD
% NN
, ,
while IN
the DT
12 CD
% NN
notes NNS
due JJ
1995 CD
were VBD
down RB
7\/32 CD
to TO
103 CD
22\/32 CD
to TO
yield VB
11.04 CD
% NN
. .

Traders NNS
said VBD
today NN
may MD
be VB
an DT
anxious JJ
day NN
for IN
the DT
market NN
. .

Several JJ
key JJ
economic JJ
figures NNS
are VBP
due JJ
out IN
and CC
Chancellor NNP
of IN
the DT
Exchequer NNP
Nigel NNP
Lawson NNP
is VBZ
scheduled VBN
to TO
give VB
the DT
annual JJ
`` ``
Mansion NNP
House NNP
'' ''
address NN
to TO
the DT
financial JJ
community NN
. .
The DT
chancellor NN
sometimes RB
has VBZ
used VBN
the DT
occasion NN
to TO
announce VB
major JJ
economic JJ
policy NN
changes NNS
. .

Economists NNS
do VBP
n't RB
expect VB
any DT
such JJ
changes NNS
in IN
this DT
year NN
's POS
address NN
, ,
given VBN
Mr. NNP
Lawson NNP
's POS
apparent JJ
reluctance NN
to TO
adjust VB
policy NN
currently RB
. .

Meanwhile RB
, ,
Japanese JJ
government NN
bonds NNS
retreated VBD
in IN
quiet JJ
trading NN
, ,
stymied VBN
by IN
the DT
dollar NN
's POS
resiliency NN
. .

Japan NNP
's POS
bellwether NN
4.6 CD
% NN
bond NN
due JJ
1998 CD
ended VBD
on IN
brokers NNS
' POS
screens NNS
at IN
95.75 CD
to TO
yield VB
5.315 CD
% NN
. .

In IN
West NNP
Germany NNP
, ,
investors NNS
stayed VBD
on IN
the DT
sidelines NNS
as IN
the DT
bond NN
market NN
searched VBD
for IN
direction NN
. .

The DT
government NN
's POS
7 CD
% NN
issue NN
due JJ
October NNP
1999 CD
fell VBD
0.05 CD
point NN
to TO
99.90 CD
to TO
yield VB
7.01 CD
% NN
. .

The DT
Berlin NNP
Wall NNP
still RB
stands VBZ
. .

But CC
the DT
man NN
who WP
built VBD
it PRP
has VBZ
fallen VBN
. .

East NNP
Germany NNP
yesterday NN
removed VBN
Erich NNP
Honecker NNP
, ,
one CD
of IN
the DT
staunchest JJS
holdouts NNS
against IN
the DT
reform NN
rumbling VBG
through IN
the DT
Communist NNP
world NN
, ,
in IN
an DT
effort NN
to TO
win VB
back RB
the DT
confidence NN
of IN
its PRP$
increasingly RB
rebellious JJ
citizens NNS
. .

But CC
while IN
it PRP
was VBD
a DT
move NN
that WDT
stunned VBD
the DT
East NNP
bloc NN
, ,
it PRP
hardly RB
ushers VBZ
in IN
an DT
era NN
of IN
reform NN
-- :
at IN
least JJS
anytime RB
soon RB
. .

For IN
the DT
Politburo NNP
replaced VBD
Mr. NNP
Honecker NNP
, ,
who WP
had VBD
led VBN
East NNP
Germany NNP
for IN
18 CD
years NNS
and CC
before IN
that DT
headed VBD
its PRP$
security NN
apparatus NN
, ,
with IN
a DT
man NN
cut NN
of IN
the DT
same JJ
cloth NN
: :
Egon NNP
Krenz NNP
, ,
the DT
most RBS
recent JJ
internal-security NN
chief NN
and CC
a DT
longtime JJ
Honecker NNP
protege NN
. .

East NNP
Germany NNP
, ,
it PRP
is VBZ
clear JJ
, ,
is VBZ
no DT
Poland NNP
, ,
where WRB
the DT
Communist NNP
Party NNP
now RB
shares NNS
power VBP
with IN
the DT
democratically RB
elected VBN
Solidarity NNP
union NN
. .

Nor CC
is VBZ
it PRP
a DT
Hungary NNP
, ,
where WRB
yesterday NN
the DT
parliament NN
approved VBD
constitutional JJ
changes NNS
meant VBD
to TO
help VB
turn VB
the DT
Communist NNP
nation NN
into IN
a DT
multiparty NN
democracy NN
. .
Still RB
, ,
any DT
change NN
in IN
East NNP
Germany NNP
has VBZ
enormous JJ
implications NNS
, ,
for IN
both DT
East NNP
and CC
West NNP
. .

It PRP
raises VBZ
the DT
long-cherished JJ
hopes NNS
of IN
many JJ
Germans NNPS
for IN
reunification NN
-- :
a DT
prospect NN
that IN
almost RB
equally RB
alarms VBZ
political JJ
leaders NNS
in IN
Moscow NNP
, ,
Washington NNP
and CC
Western NNP
Europe NNP
. .

Mr. NNP
Krenz NNP
, ,
52 CD
, ,
was VBD
named VBN
the DT
new JJ
party NN
chief NN
just RB
minutes NNS
after IN
the DT
Party NNP
's POS
163-member NNP
Central NNP
Committee NNP
convened VBD
in IN
East NNP
Berlin NNP
. .

Although IN
the DT
East JJ
German JJ
news NN
agency NN
ADN NNP
claimed VBD
Mr. NNP
Honecker NNP
had VBD
asked VBN
to TO
be VB
relieved VBN
of IN
his PRP$
duties NNS
for IN
`` ``
health NN
reasons NNS
, ,
'' ''
West JJ
German JJ
government NN
sources NNS
said VBD
the DT
26-man NNP
Politburo NNP
had VBD
asked VBN
for IN
his PRP$
resignation NN
at IN
a DT
separate JJ
meeting NN
late JJ
Tuesday NNP
. .
-LRB- (
Mr. NNP
Honecker NNP
was VBD
twice RB
hospitalized VBN
this DT
summer NN
for IN
a DT
gall NN
bladder NN
ailment NN
and CC
his PRP$
physical JJ
condition NN
has VBZ
been VBN
the DT
subject NN
of IN
intense JJ
speculation NN
in IN
the DT
Western JJ
media NNS
. .
-RRB- )

ADN NNP
said VBD
Mr. NNP
Honecker NNP
, ,
a DT
hard-line JJ
Stalinist JJ
who WP
in IN
1961 CD
supervised VBD
the DT
construction NN
of IN
the DT
Berlin NNP
Wall NNP
, ,
also RB
was VBD
relieved VBN
of IN
his PRP$
title NN
as IN
head NN
of IN
state NN
and CC
his PRP$
position NN
as IN
chief NN
of IN
the DT
military NN
. .

Mr. NNP
Krenz NNP
is VBZ
expected VBN
to TO
be VB
formally RB
named VBN
to TO
all DT
three CD
positions NNS
once RB
the DT
nation NN
's POS
parliament NN
convenes VBZ
later RB
this DT
week NN
. .

Mr. NNP
Honecker NNP
's POS
ignoble JJ
fall NN
culminates VBZ
nearly RB
two CD
decades NNS
of IN
iron-handed JJ
leadership NN
during IN
which WDT
Mr. NNP
Honecker NNP
, ,
now RB
77 CD
years NNS
old JJ
, ,
built VBN
East NNP
Germany NNP
into IN
the DT
most RBS
economically RB
advanced VBD
nation NN
in IN
the DT
Soviet JJ
bloc NN
. .

His PRP$
grip NN
on IN
power NN
unraveled VBD
this DT
summer NN
as IN
thousands NNS
of IN
his PRP$
countrymen NNS
, ,
dissatisfied JJ
by IN
the DT
harshness NN
of IN
his PRP$
rule NN
, ,
fled VBD
to TO
the DT
West NNP
. .

Thousands NNS
more RBR
have VBP
taken VBN
to TO
the DT
streets NNS
in IN
the DT
last JJ
month NN
in IN
East NNP
Germany NNP
's POS
largest JJS
wave NN
of IN
domestic JJ
unrest NN
since IN
a DT
workers NNS
' POS
uprising NN
in IN
1953 CD
. .

In IN
Washington NNP
, ,
the DT
Bush NNP
administration NN
took VBD
a DT
characteristically RB
cautious JJ
and CC
skeptical JJ
view NN
of IN
the DT
leadership NN
change NN
. .

The DT
official JJ
line NN
was VBD
to TO
offer VB
warmer JJR
ties NNS
to TO
Mr. NNP
Krenz NNP
, ,
provided VBD
he PRP
is VBZ
willing JJ
to TO
institute VB
reforms NNS
. .

But CC
U.S. NNP
officials NNS
have VBP
strong JJ
doubts NNS
that IN
he PRP
is VBZ
a DT
reformer NN
. .

President NNP
Bush NNP
told VBD
reporters NNS
: :
`` ``
Whether IN
that DT
-LCB- (
the DT
leadership NN
change NN
-RCB- )
reflects VBZ
a DT
change NN
in IN
East-West NNP
relations NNS
, ,
I PRP
do VBP
n't RB
think VB
so RB
. .

Because IN
Mr. NNP
Krenz NNP
has VBZ
been VBN
very RB
much RB
in IN
accord NN
with IN
the DT
policies NNS
of IN
Honecker NNP
. .
'' ''

One CD
top JJ
U.S. NNP
expert NN
on IN
East NNP
Germany NNP
added VBD
: :
`` ``
There EX
is VBZ
no DT
clear-cut JJ
champion NN
of IN
reform NN
, ,
that IN
we PRP
know VBP
of IN
, ,
in IN
the DT
East JJ
German JJ
leadership NN
. .
'' ''

Indeed RB
, ,
Mr. NNP
Krenz NNP
said VBD
on IN
East JJ
German JJ
television NN
last JJ
night NN
that IN
there EX
will MD
be VB
no DT
sharing NN
of IN
power NN
with IN
pro-democracy JJ
groups NNS
. .

He PRP
said VBD
, ,
while IN
dialogue NN
is VBZ
important JJ
, ,
enough JJ
forums NNS
already RB
exist VBP
`` ``
in IN
which WDT
different JJ
interests NNS
'' ''
can MD
express VB
themselves PRP
. .

The DT
removal NN
of IN
Mr. NNP
Honecker NNP
was VBD
apparently RB
the DT
result NN
of IN
bitter JJ
infighting NN
within IN
the DT
top JJ
ranks NNS
of IN
the DT
Communist NNP
party NN
. .

According VBG
to TO
West JJ
German JJ
government NN
sources NNS
, ,
Mr. NNP
Honecker NNP
and CC
several JJ
senior JJ
Politburo NNP
members NNS
fought VBD
over IN
the DT
last JJ
week NN
to TO
delay VB
any DT
decisions NNS
about IN
a DT
leadership NN
change NN
. .

But CC
, ,
with IN
public JJ
demonstrations NNS
in IN
the DT
country NN
growing VBG
in IN
size NN
and CC
intensity NN
, ,
Mr. NNP
Honecker NNP
and CC
several JJ
key JJ
allies NNS
lost VBD
out IN
in IN
this DT
battle NN
, ,
officials NNS
say VBP
. .

Those DT
allies NNS
included VBD
Politburo NNP
members NNS
Guenter NNP
Mittag NNP
, ,
who WP
has VBZ
long RB
headed VBN
economic JJ
affairs NNS
, ,
and CC
Joachim NNP
Hermann NNP
, ,
chief NN
of IN
information NN
policy NN
. .

Both DT
men NNS
were VBD
also RB
relieved VBN
of IN
their PRP$
duties NNS
yesterday NN
. .

Although IN
other JJ
resignations NNS
may MD
follow VB
, ,
it PRP
's VBZ
still RB
not RB
clear JJ
to TO
what WP
extent NN
the DT
change NN
in IN
party NN
personnel NNS
will MD
alter VB
the DT
government NN
's POS
resistance NN
to TO
fundamental JJ
change NN
. .

Clearly RB
, ,
the DT
central JJ
figure NN
in IN
this DT
process NN
is VBZ
Egon NNP
Krenz NNP
. .

Born VBN
in IN
1937 CD
in IN
a DT
Baltic NNP
Sea NNP
town NN
now JJ
part NN
of IN
Poland NNP
, ,
he PRP
was VBD
eight CD
years NNS
old JJ
when WRB
World NNP
War NNP
II NNP
ended VBD
. .

Like IN
West JJ
German NNP
Chancellor NNP
Helmut NNP
Kohl NNP
, ,
he PRP
represents VBZ
the DT
postwar JJ
generation NN
that WDT
has VBZ
grown VBN
up IN
during IN
Germany NNP
's POS
division NN
. .

Since IN
joining VBG
the DT
Politburo NNP
in IN
1983 CD
as IN
its PRP$
youngest JJS
member NN
, ,
Mr. NNP
Krenz NNP
had VBD
acquired VBN
the DT
nickname NN
`` ``
crown NN
prince NN
, ,
'' ''
a DT
reference NN
to TO
the DT
widely RB
held VBN
view NN
that IN
he PRP
was VBD
the DT
hand-picked JJ
successor NN
to TO
Mr. NNP
Honecker NNP
. .

In IN
fact NN
, ,
the DT
two CD
men NNS
have VBP
had VBN
strikingly RB
similar JJ
career NN
paths NNS
, ,
both DT
having VBG
served VBN
as IN
chief NN
of IN
internal JJ
security NN
before IN
their PRP$
rise NN
to TO
the DT
top JJ
party NN
position NN
. .

Moreover RB
, ,
both DT
men NNS
have VBP
hewn VBN
to TO
a DT
similar JJ
hard-line JJ
philosophy NN
. .

Notably RB
, ,
one CD
of IN
Mr. NNP
Krenz NNP
's POS
few JJ
official JJ
visits NNS
overseas NN
came VBD
a DT
few JJ
months NNS
ago RB
, ,
when WRB
he PRP
visited VBD
China NNP
after IN
the DT
massacre NN
in IN
Beijing NNP
. .

He PRP
later RB
defended VBD
the DT
Chinese JJ
government NN
's POS
response NN
during IN
a DT
separate JJ
visit NN
to TO
West NNP
Germany NNP
. .

East JJ
German NNP
Protestantism NNP
in IN
particular JJ
fears NNS
Mr. NNP
Krenz NNP
, ,
in IN
part NN
because IN
of IN
an DT
incident NN
in IN
January NNP
1988 CD
when WRB
he PRP
was VBD
believed VBN
to TO
have VB
ordered VBN
the DT
arrest NN
of IN
hundreds NNS
of IN
dissidents NNS
who WP
had VBD
sought VBN
refuge NN
in IN
the DT
Church NNP
. .

However RB
, ,
Mr. NNP
Krenz NNP
also RB
has VBZ
a DT
reputation NN
for IN
being VBG
politically RB
savvy JJ
. .

His PRP$
shrewd JJ
ability NN
to TO
read VB
the DT
shifting VBG
popular JJ
mood NN
in IN
East NNP
Germany NNP
is VBZ
best RBS
illustrated VBN
by IN
his PRP$
apparent JJ
break NN
with IN
his PRP$
old JJ
mentor NN
, ,
Mr. NNP
Honecker NNP
. .

Indeed RB
, ,
according VBG
to TO
West JJ
German JJ
government NN
sources NNS
, ,
he PRP
was VBD
one CD
of IN
the DT
leaders NNS
in IN
the DT
power NN
struggle NN
that WDT
toppled VBD
Mr. NNP
Honecker NNP
. .

In IN
recent JJ
days NNS
, ,
Mr. NNP
Krenz NNP
has VBZ
sought VBN
to TO
project VB
a DT
kinder JJR
image NN
. .

According VBG
to TO
a DT
report NN
widely RB
circulating VBG
in IN
East NNP
Berlin NNP
, ,
it PRP
was VBD
Mr. NNP
Krenz NNP
who WP
ordered VBD
police NN
to TO
stop VB
using VBG
excessive JJ
force NN
against IN
demonstrators NNS
in IN
Leipzig NNP
. .

`` ``
He PRP
does VBZ
n't RB
want VB
to TO
have VB
the DT
image NN
of IN
the DT
gun NN
man NN
, ,
'' ''
says VBZ
Fred NNP
Oldenburg NNP
, ,
an DT
expert NN
at IN
the DT
Bonn-sponsored NNP
Institute NNP
of IN
East NNP
European JJ
and CC
International NNP
Studies NNS
in IN
Cologne NNP
. .

`` ``
He PRP
's VBZ
not RB
a DT
reformer JJ
-- :
he PRP
wants VBZ
to TO
have VB
the DT
image NN
of IN
a DT
reformer NN
. .
'' ''

As IN
part NN
of IN
his PRP$
image NN
polishing VBG
, ,
Mr. NNP
Krenz NNP
is VBZ
expected VBN
to TO
take VB
modest JJ
steps NNS
toward IN
reform NN
to TO
rebuild VB
confidence NN
among IN
the DT
people NNS
and CC
reassert VB
the DT
party NN
's POS
authority NN
. .

Besides IN
sacking VBG
other JJ
senior JJ
Politburo NNP
officials NNS
who WP
allied VBD
themselves PRP
with IN
Mr. NNP
Honecker NNP
, ,
Mr. NNP
Krenz NNP
could MD
loosen VB
controls NNS
on IN
the DT
news NN
media NNS
, ,
free JJ
up IN
travel NN
restrictions NNS
, ,
and CC
establish VB
a DT
dialogue NN
with IN
various JJ
dissident JJ
groups NNS
. .

But CC
will MD
it PRP
be VB
enough RB
? .

West JJ
German JJ
government NN
officials NNS
and CC
Western JJ
analysts NNS
are VBP
doubtful JJ
. .

`` ``
He PRP
does VBZ
n't RB
signify VB
what WP
people NNS
want VBP
, ,
so RB
the DT
unrest NN
will MD
go VB
on IN
, ,
'' ''
Mr. NNP
Oldenburg NNP
predicts VBZ
. .

At IN
the DT
same JJ
time NN
, ,
the DT
expectations NNS
of IN
the DT
East JJ
German JJ
people NNS
are VBP
great JJ
and CC
will MD
continue VB
to TO
grow VB
. .

Says VBZ
one CD
West JJ
German JJ
official NN
: :
`` ``
What WP
's VBZ
necessary JJ
now RB
is VBZ
the DT
process NN
of IN
democratization NN
. .

Not RB
just RB
that IN
people NNS
are VBP
being VBG
heard VBN
but CC
that IN
their PRP$
interests NNS
are VBP
being VBG
taken VBN
seriously RB
. .
'' ''

Chancellor NNP
Kohl NNP
, ,
meanwhile RB
, ,
has VBZ
invited VBN
Mr. NNP
Krenz NNP
to TO
open VB
discussions NNS
with IN
Bonn NNP
on IN
a DT
wide JJ
range NN
of IN
subjects NNS
. .

Reports NNS
in IN
the DT
West JJ
German JJ
press NN
, ,
citing VBG
sources NNS
in IN
East NNP
Germany NNP
, ,
suggest VBP
Mr. NNP
Krenz NNP
may MD
serve VB
only RB
as IN
a DT
bridge NN
between IN
Mr. NNP
Honecker NNP
and CC
a DT
genuine JJ
reform NN
leader NN
. .
Adding VBG
to TO
that DT
speculation NN
is VBZ
Mr. NNP
Krenz NNP
's POS
reputation NN
as IN
a DT
heavy JJ
drinker NN
, ,
who WP
is VBZ
said VBD
to TO
also RB
suffer VB
from IN
diabetes NN
. .

`` ``
This DT
is VBZ
a DT
dynamic JJ
process NN
and CC
we PRP
're VBP
experiencing VBG
the DT
first JJ
step NN
, ,
'' ''
the DT
Bonn NNP
official NN
adds VBZ
. .

The DT
selection NN
of IN
Mr. NNP
Krenz NNP
may MD
also RB
disappoint VB
Moscow NNP
. .

Soviet JJ
leader NN
Mikhail NNP
Gorbachev NNP
has VBZ
pressed VBN
hard JJ
for IN
a DT
change NN
in IN
East NNP
Germany NNP
's POS
rigid JJ
stance NN
. .

Two CD
reform-minded JJ
party NN
leaders NNS
favored VBN
by IN
Moscow NNP
as IN
possible JJ
successors NNS
to TO
Mr. NNP
Honecker NNP
, ,
Dresden NNP
party NN
secretary NN
Hans NNP
Modrow NNP
and CC
Politburo NNP
member NN
Guenter NNP
Schabowski NNP
, ,
were VBD
passed VBN
over RB
. .

If IN
Mr. NNP
Krenz NNP
sticks VBZ
to TO
rigid JJ
policies NNS
the DT
pressure NN
from IN
the DT
Soviet NNP
Union NNP
could MD
intensify VB
. .

In IN
Moscow NNP
, ,
Mr. NNP
Gorbachev NNP
sent VBD
Mr. NNP
Krenz NNP
a DT
congratulatory JJ
telegram NN
that WDT
appeared VBD
to TO
urge VB
the DT
new JJ
leadership NN
to TO
heed VB
growing VBG
calls VBZ
for IN
change NN
. .

According VBG
to TO
the DT
Soviet JJ
news NN
agency NN
Tass NNP
, ,
`` ``
Gorbachev NNP
expressed VBD
the DT
conviction NN
that IN
the DT
leadership NN
of IN
the DT
Socialist NNP
Unity NNP
Party NNP
of IN
-LCB- (
East NNP
-RCB- )
Germany NNP
, ,
being VBG
sensitive JJ
to TO
the DT
demands NNS
of IN
the DT
time NN
, ,
... :
will MD
find VB
solutions NNS
to TO
complicated VBN
problems NNS
the DT
GDR NNP
-LCB- (
German JJ
Democratic NNP
Republic NNP
-RCB- )
encountered VBN
. .
'' ''

A DT
force NN
of IN
younger JJR
pro-Gorbachev JJ
members NNS
in IN
the DT
East JJ
German JJ
bureaucracy NN
has VBZ
for IN
some DT
time NN
been VBN
pushing VBG
for IN
relaxation NN
within IN
their PRP$
country NN
. .

The DT
older JJR
generation NN
has VBZ
been VBN
torn VBN
between IN
a DT
fear NN
of IN
tampering VBG
with IN
the DT
status NN
quo FW
and CC
a DT
fear NN
of IN
what WP
might MD
happen VB
if IN
they PRP
did VBD
n't RB
. .

From IN
the DT
perspective NN
of IN
East NNP
Germany NNP
's POS
old JJ
guard NN
, ,
reforms NNS
that IN
smack RB
of IN
capitalism NN
and CC
Western-style JJ
democracy NN
could MD
eliminate VB
their PRP$
country NN
's POS
reason NN
for IN
being VBG
. .

Unlike IN
the DT
other JJ
nations NNS
of IN
the DT
bloc NN
, ,
East NNP
Germany NNP
is VBZ
a DT
creature NN
of IN
the DT
Cold NNP
War NNP
. .

Erasing VBG
the DT
differences NNS
still RB
dividing VBG
Europe NNP
, ,
and CC
the DT
vast JJ
international JJ
reordering NN
that DT
implies VBZ
, ,
wo MD
n't RB
endanger VB
the DT
statehood NN
of IN
a DT
Poland NNP
or CC
a DT
Hungary NNP
. .

But CC
it PRP
could MD
ultimately RB
lead VB
to TO
German JJ
reunification NN
and CC
the DT
disappearance NN
of IN
East NNP
Germany NNP
from IN
the DT
map NN
. .

Which WDT
is VBZ
what WP
the DT
Old NNP
Guard NNP
fears NNS
. .

`` ``
I PRP
'm VBP
sure JJ
they PRP
'll MD
formulate VB
a DT
reform NN
that WDT
will MD
be VB
a DT
recipe NN
for IN
the DT
GDR NNP
's POS
future NN
as IN
a DT
separately RB
identifiable JJ
state NN
, ,
'' ''
says VBZ
Michael NNP
Simmons NNP
, ,
a DT
British JJ
journalist NN
whose WP$
book NN
on IN
East NNP
Germany NNP
, ,
entitled VBN
`` ``
The DT
Unloved NNP
Country NNP
, ,
'' ''
was VBD
published VBN
this DT
month NN
. .

Up IN
to TO
now RB
, ,
that DT
recipe NN
has VBZ
consisted VBN
of IN
a DT
dogged VBN
effort NN
by IN
former JJ
leader NN
Walter NNP
Ulbricht NNP
to TO
establish VB
the DT
country NN
's POS
international JJ
legitimacy NN
, ,
followed VBN
by IN
Mr. NNP
Honecker NNP
's POS
campaign NN
to TO
build VB
the DT
East NNP
bloc NN
's POS
only RB
successful JJ
Stalinist JJ
economy NN
into IN
a DT
consumer NN
paradise NN
. .

Neither CC
man NN
achieved VBD
perfection NN
. .

Early RB
in IN
1987 CD
, ,
Mr. NNP
Honecker NNP
and CC
his PRP$
team NN
stopped VBD
paying VBG
thin JJ
compliments NNS
to TO
Mr. NNP
Gorbachev NNP
and CC
joined VBD
with IN
Romania NNP
in IN
rejecting VBG
any DT
necessity NN
for IN
adjustments NNS
in IN
their PRP$
systems NNS
. .

The DT
less-self-confident JJ
Czechoslovaks NNPS
and CC
Bulgarians NNPS
, ,
in IN
contrast NN
, ,
declared VBD
their PRP$
intentions NNS
to TO
reform VB
, ,
while IN
doing VBG
nothing NN
concrete JJ
about IN
it PRP
. .

The DT
East JJ
German JJ
media NNS
soon RB
began VBD
presenting VBG
Mr. NNP
Gorbachev NNP
's POS
speeches NNS
only RB
as IN
sketchy JJ
summaries NNS
, ,
and CC
giving VBG
space NN
to TO
his PRP$
opponents NNS
. .

By IN
late JJ
1988 CD
, ,
they PRP
were VBD
banning VBG
Soviet JJ
publications NNS
. .

The DT
country NN
abandoned VBD
its PRP$
former JJ
devotion NN
to TO
socialist JJ
unity NN
and CC
took VBD
to TO
insisting VBG
instead RB
that IN
each DT
country NN
in IN
the DT
bloc NN
ought MD
to TO
travel VB
its PRP$
own JJ
road NN
. .

Mr. NNP
Honecker NNP
spoke VBD
of IN
`` ``
generally RB
valid JJ
objective NN
laws NNS
of IN
socialism NN
'' ''
and CC
left VBD
no DT
room NN
for IN
debate NN
. .

With IN
this DT
year NN
's POS
dislocations NNS
in IN
China NNP
and CC
the DT
Soviet NNP
Union NNP
, ,
and CC
the DT
drive NN
to TO
democracy NN
in IN
Poland NNP
and CC
Hungary NNP
, ,
the DT
East JJ
German JJ
leadership NN
grew VBD
still RB
more RBR
defensive JJ
. .

Politburo NNP
member NN
Joachim NNP
Herrman NNP
confessed VBD
to TO
a DT
`` ``
grave JJ
concern NN
'' ''
over IN
Hungarian JJ
democracy NN
. .

`` ``
Under IN
the DT
banner NN
that WDT
proclaims VBZ
the DT
` ``
renewal NN
of IN
socialism NN
, ,
' ''
'' ''
he PRP
said VBD
, ,
`` ``
forces NNS
are VBP
at IN
work NN
that WDT
are VBP
striving VBG
to TO
eliminate VB
socialism NN
. .
'' ''

Some DT
loyal JJ
voices NNS
, ,
in IN
and CC
out IN
of IN
the DT
East JJ
German NNP
Communist NNP
party NN
, ,
saw VBD
the DT
nation NN
's POS
unrest NN
coming VBG
. .

The DT
first JJ
signs NNS
were VBD
economic JJ
. .

Despite IN
heavily RB
subsidized JJ
consumer NN
industries NNS
, ,
East NNP
Germans NNPS
have VBP
for IN
years NNS
watched VBD
the DT
West NNP
pull NN
farther RB
out IN
ahead RB
. .

In IN
1988 CD
, ,
for IN
the DT
first JJ
time NN
, ,
economic JJ
growth NN
came VBD
to TO
a DT
dead JJ
stop NN
. .

Gingerly RB
, ,
some DT
economists NNS
began VBD
to TO
blame VB
central JJ
planning NN
. .

Some DT
writers NNS
in IN
theoretical JJ
journals NNS
even RB
raised VBN
the DT
notion NN
of IN
introducing VBG
democracy NN
, ,
at IN
least JJS
in IN
the DT
workplace NN
. .

By IN
summer NN
, ,
an DT
independent JJ
reform NN
movement NN
was VBD
saying VBG
out IN
loud JJ
what WP
it PRP
had VBD
only RB
whispered VBN
before RB
. .

But CC
they PRP
are VBP
stalwart JJ
socialists NNS
. .

Their PRP$
proclaimed VBD
purpose NN
is VBZ
to TO
cleanse VB
East NNP
Germany NNP
of IN
its PRP$
Stalinist JJ
muck NN
, ,
not RB
to TO
merge VB
with IN
the DT
West NNP
. .

One CD
of IN
their PRP$
pastors NNS
has VBZ
envisioned VBN
a DT
`` ``
new JJ
utopia NN
'' ''
of IN
`` ``
creative JJ
socialism NN
. .
'' ''

Meanwhile RB
, ,
the DT
man NN
Mr. NNP
Krenz NNP
replaces VBZ
has VBZ
left VBN
an DT
indelible JJ
mark NN
on IN
East JJ
German JJ
society NN
. .

Imprisoned VBN
by IN
the DT
Nazis NNPS
during IN
World NNP
War NNP
II NNP
for IN
his PRP$
political JJ
beliefs NNS
, ,
Mr. NNP
Honecker NNP
typified VBD
the DT
postwar JJ
generation NN
of IN
committed VBN
Communist NNP
leaders NNS
in IN
Eastern NNP
Europe NNP
who WP
took VBD
their PRP$
cues NNS
from IN
Moscow NNP
. .

He PRP
was VBD
a DT
`` ``
socialist JJ
warrior NN
'' ''
who WP
felt VBD
rankled VBN
by IN
West NNP
Germany NNP
's POS
enormous JJ
postwar JJ
prosperity NN
and CC
the DT
Bonn NNP
government NN
's POS
steadfast JJ
refusal NN
to TO
recognize VB
the DT
legitimacy NN
of IN
his PRP$
state NN
. .

Finally RB
, ,
during IN
his PRP$
first JJ
and CC
only JJ
state NN
visit NN
to TO
Bonn NNP
two CD
years NNS
ago RB
, ,
he PRP
won VBD
some DT
measure NN
of IN
the DT
recognition NN
he PRP
had VBD
long JJ
sought VBD
. .

But CC
ultimately RB
he PRP
was VBD
undone VBN
by IN
forces NNS
unleashed VBN
by IN
his PRP$
own JJ
comrade NN
, ,
Mr. NNP
Gorbachev NNP
. .

Mr. NNP
Honecker NNP
's POS
removal NN
`` ``
was VBD
bound VBN
to TO
happen VB
, ,
'' ''
says VBZ
one CD
aide NN
to TO
Chancellor NNP
Kohl NNP
. .

`` ``
It PRP
was VBD
only RB
a DT
matter NN
of IN
time NN
. .
'' ''

The DT
European NNP
Community NNP
Commission NNP
increased VBD
its PRP$
forecast NN
for IN
economic JJ
growth NN
in IN
the DT
EC NNP
in IN
1989 CD
to TO
3.5 CD
% NN
, ,
slightly RB
higher JJR
than IN
its PRP$
June NNP
projection NN
of IN
3.25 CD
% NN
. .

In IN
its PRP$
annual JJ
economic JJ
report NN
for IN
1989-1990 CD
, ,
the DT
commission NN
also RB
projected VBD
1990 CD
gross JJ
domestic JJ
product NN
growth NN
for IN
the DT
12 CD
EC NNP
members NNS
at IN
3 CD
% NN
. .

EC NNP
inflation NN
was VBD
seen VBN
at IN
4.8 CD
% NN
in IN
1989 CD
, ,
higher JJR
than IN
1988 CD
's POS
3.6 CD
% NN
price NN
rise NN
. .

However RB
, ,
inflation NN
for IN
1990 CD
was VBD
seen VBN
slowing VBG
to TO
4.5 CD
% NN
. .

Leading VBG
EC NNP
growth NN
forecasts NNS
in IN
1989 CD
was VBD
Ireland NNP
, ,
seen VBN
growing VBG
5 NN
% NN
at IN
constant JJ
prices NNS
. .

Slower JJR
growth NN
countries NNS
included VBD
Greece NNP
, ,
at IN
2.5 CD
% NN
, ,
the DT
U.K. NNP
, ,
at IN
2.25 CD
% NN
, ,
and CC
Denmark NNP
, ,
at IN
1.75 CD
% NN
. .

Inflation NN
is VBZ
expected VBN
to TO
be VB
highest JJS
in IN
Greece NNP
, ,
where WRB
it PRP
is VBZ
projected VBN
at IN
14.25 CD
% NN
, ,
and CC
Portugal NNP
, ,
at IN
13 CD
% NN
. .

At IN
the DT
other JJ
end NN
of IN
the DT
spectrum NN
, ,
West JJ
German JJ
inflation NN
was VBD
forecast NN
at IN
3 CD
% NN
in IN
1989 CD
and CC
2.75 CD
% NN
in IN
1990 CD
. .

Nestle NNP
Korea NNP
Ltd. NNP
opened VBD
a DT
coffee NN
and CC
non-dairy-creamer NN
plant NN
in IN
Chongju NNP
, ,
South NNP
Korea NNP
. .

An DT
official NN
at IN
Nestle NNP
Korea NNP
, ,
a DT
50-50 JJ
joint JJ
venture NN
between IN
Nestle NNP
S.A. NNP
and CC
the DT
Doosan NNP
Group NNP
, ,
said VBD
the DT
new JJ
facility NN
will MD
manufacture VB
all DT
types NNS
of IN
soluble JJ
, ,
roasted VBN
and CC
ground NN
coffee NN
, ,
coffee NN
mix NN
and CC
nondairy JJ
coffee NN
creamer NN
. .
The DT
South JJ
Korean JJ
coffee NN
market NN
, ,
consisting VBG
mostly RB
of IN
instant NN
coffee NN
, ,
was VBD
estimated VBN
at IN
about IN
100 CD
billion CD
won VBD
-LRB- (
$ $
150.7 CD
million CD
-RRB- )
last JJ
year NN
. .

Brands NNP
made VBN
by IN
the DT
Kraft NNP
General NNP
Foods NNPS
unit NN
of IN
Philip NNP
Morris NNP
Cos. NNP
had VBD
about IN
95 CD
% NN
of IN
the DT
market NN
share NN
. .

Nestle NNP
currently RB
has VBZ
only RB
about IN
a DT
2 CD
% NN
share NN
with IN
its PRP$
Taster NNP
's POS
Choice NN
coffee NN
. .

Poland NNP
plans VBZ
to TO
start VB
negotiations NNS
soon RB
on IN
purchasing VBG
natural JJ
gas NN
from IN
Iran NNP
, ,
the DT
official NN
Islamic NNP
Republic NNP
News NNP
Agency NNP
reported VBD
. .

The DT
agency NN
said VBD
Polish NNP
Prime NNP
Minister NNP
Tadeusz NNP
Mazowiecki NNP
told VBD
Iranian NNP
Deputy NNP
Foreign NNP
Minister NNP
Mahmoud NNP
Vaezi NNP
of IN
Poland NNP
's POS
willingess NN
to TO
purchase VB
the DT
gas NN
during IN
Mr. NNP
Vaezi NNP
's POS
current JJ
visit NN
to TO
Warsaw NNP
. .

The DT
agency NN
did VBD
n't RB
mention VB
possible JJ
quantities NNS
and CC
did VBD
n't RB
say VB
how WRB
the DT
gas NN
would MD
be VB
delivered VBN
. .

A DT
Chinese JJ
official NN
harshly RB
criticized VBD
plans NNS
to TO
close VB
a DT
British JJ
naval JJ
base NN
in IN
downtown NN
Hong NNP
Kong NNP
. .

Hong NNP
Kong NNP
officials NNS
announced VBD
last JJ
week NN
that IN
the DT
base NN
will MD
be VB
relocated VBN
to TO
a DT
small JJ
island NN
to TO
allow VB
downtown NN
redevelopment NN
. .

But CC
Beijing NNP
wants VBZ
to TO
use VB
the DT
base NN
for IN
the DT
People NNS
's POS
Liberation NNP
Army NNP
after IN
1997 CD
, ,
when WRB
the DT
territory NN
returns NNS
to TO
Chinese JJ
sovereignty NN
. .

Ke NNP
Zaishuo NNP
, ,
head NN
of IN
China NNP
's POS
delegation NN
to TO
a DT
Chinese-British JJ
Liaison NNP
Committee NNP
on IN
Hong NNP
Kong NNP
, ,
accused VBN
Britain NNP
of IN
trying VBG
to TO
impose VB
a DT
fait NN
accompli NN
and CC
said VBD
, ,
`` ``
This DT
is VBZ
something NN
we PRP
can MD
not RB
accept VB
. .
'' ''

The DT
Israeli JJ
and CC
Soviet JJ
national JJ
airlines NNS
have VBP
reached VBN
preliminary JJ
agreement NN
for IN
launching VBG
the DT
first JJ
direct JJ
flights NNS
between IN
Tel NNP
Aviv NNP
and CC
Moscow NNP
, ,
a DT
spokesman NN
for IN
the DT
Israeli JJ
airline NN
, ,
El NNP
Al NNP
, ,
said VBD
. .

El NNP
Al NNP
director NN
Rafi NNP
Har-Lev NNP
and CC
top JJ
officials NNS
of IN
the DT
Soviet NNP
Union NNP
's POS
Aeroflot NNP
negotiated VBD
a DT
preliminary JJ
pact NN
in IN
Moscow NNP
this DT
week NN
, ,
the DT
spokesman NN
said VBD
. .

He PRP
added VBD
that IN
concluding VBG
the DT
deal NN
requires VBZ
approval NN
by IN
the DT
governments NNS
of IN
both DT
countries NNS
, ,
which WDT
have VBP
never RB
had VBN
direct JJ
air NN
links NNS
. .

The DT
chairman NN
and CC
a DT
director NN
of IN
one CD
of IN
the DT
Republic NNP
of IN
Singapore NNP
's POS
leading VBG
property NN
companies NNS
, ,
City NNP
Development NNP
Ltd. NNP
, ,
or CC
CDL NNP
, ,
were VBD
charged VBN
yesterday NN
with IN
criminal JJ
breach NN
of IN
trust NN
of IN
some DT
800,000 CD
Singapore NNP
dollars NNS
-LRB- (
about IN
US$ $
409,000 CD
-RRB- )
. .

Kwek NNP
Hong NNP
Png NNP
, ,
chairman NN
of IN
CDL NNP
, ,
and CC
director NN
Quek NNP
Leng NNP
Chye NNP
were VBD
arrested VBN
by IN
the DT
republic NN
's POS
Corrupt NNP
Practices NNP
Investigation NNP
Bureau NNP
Tuesday NNP
night NN
. .

In IN
addition NN
to TO
abetting VBG
in IN
the DT
alleged VBN
criminal JJ
breach NN
of IN
trust NN
, ,
Kwek NNP
Hong NNP
Png NNP
was VBD
also RB
charged VBN
with IN
dishonestly RB
receiving VBG
S$ $
500,000 CD
that WDT
had VBD
been VBN
stolen VBN
. .

Both DT
men NNS
were VBD
charged VBN
in IN
a DT
subordinate JJ
court NN
and CC
released VBN
on IN
bail NN
of IN
S$ $
1 CD
million CD
. .

The DT
charges NNS
are VBP
the DT
culmination NN
of IN
weeks NNS
of IN
rumors NNS
concerning VBG
CDL NNP
that WDT
have VBP
depressed VBD
the DT
company NN
's POS
share NN
price NN
and CC
to TO
a DT
lesser JJR
extent NN
the DT
shares NNS
of IN
all DT
companies NNS
owned VBN
by IN
CDL NNP
's POS
controlling VBG
Quek NNP
family NN
, ,
brokers NNS
in IN
Singapore NNP
say VBP
. .

The DT
Queks NNPS
control NN
the DT
Hong NNP
Leong NNP
Group NNP
, ,
which WDT
has VBZ
widespread JJ
interests NNS
in IN
manufacturing NN
, ,
property NN
and CC
finance NN
in IN
both DT
Malaysia NNP
and CC
Singapore NNP
. .

News NNS
of IN
the DT
arrest NN
and CC
charging VBG
of IN
the DT
two CD
men NNS
helped VBD
to TO
push VB
prices NNS
on IN
the DT
Singapore NNP
Stock NNP
market NN
sharply RB
lower JJR
in IN
early JJ
trading NN
yesterday NN
, ,
but CC
brokers NNS
said VBD
that IN
the DT
market NN
and CC
CDL NNP
shares NNS
recovered VBD
once RB
it PRP
became VBD
apparent JJ
the DT
charges NNS
were VBD
limited JJ
to TO
the DT
two CD
men NNS
personally RB
. .

One CD
of IN
the DT
two CD
British JJ
companies NNS
still RB
making VBG
hard JJ
toilet NN
paper NN
stopped VBD
production NN
of IN
it PRP
. .

British JJ
Tissues NNPS
decided VBD
to TO
do VB
away RB
with IN
its PRP$
hard JJ
paper NN
after IN
a DT
major JJ
customer NN
, ,
British NNP
Rail NNP
, ,
switched VBD
to TO
softer JJR
tissues NNS
for IN
train NN
bathrooms NNS
... :
. .

Peasants NNS
in IN
Inner NNP
Mongolia NNP
have VBP
partly RB
dismantled VBN
a DT
20-mile JJ
section NN
of IN
China NNP
's POS
famed JJ
Great NNP
Wall NNP
, ,
the DT
official JJ
People NNS
's POS
Daily NNP
said VBD
. .

The DT
paper NN
said VBD
the DT
bricks NNS
were VBD
used VBN
to TO
build VB
homes NNS
and CC
furnaces NNS
and CC
, ,
as IN
a DT
result NN
, ,
the DT
wall NN
`` ``
is VBZ
in IN
terrible JJ
shape NN
. .

Wednesday NNP
, ,
October NNP
18 CD
, ,
1989 CD

The DT
key JJ
U.S. NNP
and CC
foreign JJ
annual JJ
interest NN
rates NNS
below IN
are VBP
a DT
guide NN
to TO
general JJ
levels NNS
but CC
do VBP
n't RB
always RB
represent VB
actual JJ
transactions NNS
. .

PRIME JJ
RATE NN
: :
10 CD
1\/2 CD
% NN
. .

The DT
base NN
rate NN
on IN
corporate JJ
loans NNS
at IN
large JJ
U.S. NNP
money NN
center NN
commercial JJ
banks NNS
. .

FEDERAL JJ
FUNDS NNS
: :
8 CD
15\/16 CD
% NN
high JJ
, ,
8 CD
5\/8 CD
% NN
low JJ
, ,
8 CD
3\/4 CD
% NN
near IN
closing VBG
bid NN
, ,
8 CD
7\/8 CD
% NN
offered VBN
. .

Reserves NNS
traded VBN
among IN
commercial JJ
banks NNS
for IN
overnight JJ
use NN
in IN
amounts NNS
of IN
$ $
1 CD
million CD
or CC
more JJR
. .

Source NN
: :
Fulton NNP
Prebon NNP
-LRB- (
U.S.A NNP
. .
-RRB- )
Inc NNP
. .

DISCOUNT NN
RATE NN
: :
7 CD
% NN
. .

The DT
charge NN
on IN
loans NNS
to TO
depository NN
institutions NNS
by IN
the DT
New NNP
York NNP
Federal NNP
Reserve NNP
Bank NNP
. .

CALL NN
MONEY NN
: :
9 CD
3\/4 CD
% NN
to TO
10 CD
% NN
. .

The DT
charge NN
on IN
loans NNS
to TO
brokers NNS
on IN
stock NN
exchange NN
collateral NN
. .

COMMERCIAL JJ
PAPER NN
placed VBN
directly RB
by IN
General NNP
Motors NNPS
Acceptance NNP
Corp. NNP
: :
8.45 CD
% NN
30 CD
to TO
44 CD
days NNS
; :
8.25 CD
% NN
45 CD
to TO
74 CD
days NNS
; :
8.30 CD
% NN
75 CD
to TO
99 CD
days NNS
; :
7.75 CD
% NN
100 CD
to TO
179 CD
days NNS
; :
7.50 CD
% NN
180 CD
to TO
270 CD
days NNS
. .

COMMERCIAL JJ
PAPER NN
: :
High-grade JJ
unsecured JJ
notes NNS
sold VBN
through IN
dealers NNS
by IN
major JJ
corporations NNS
in IN
multiples NNS
of IN
$ $
1,000 CD
: :
8.55 CD
% NN
30 CD
days NNS
; :
8.45 CD
% NN
60 CD
days NNS
; :
8.375 CD
% NN
90 CD
days NNS
. .

CERTIFICATES NNS
OF IN
DEPOSIT NN
: :
8.05 CD
% NN
one CD
month NN
; :
8.02 CD
% NN
two CD
months NNS
; :
8 CD
% NN
three CD
months NNS
; :
7.98 CD
% NN
six CD
months NNS
; :
7.95 CD
% NN
one CD
year NN
. .

Average NNP
of IN
top JJ
rates NNS
paid VBN
by IN
major JJ
New NNP
York NNP
banks NNS
on IN
primary JJ
new JJ
issues NNS
of IN
negotiable JJ
C.D.s NNS
, ,
usually RB
on IN
amounts NNS
of IN
$ $
1 CD
million CD
and CC
more JJR
. .

The DT
minimum JJ
unit NN
is VBZ
$ $
100,000 CD
. .

Typical JJ
rates NNS
in IN
the DT
secondary JJ
market NN
: :
8.53 CD
% NN
one CD
month NN
; :
8.48 CD
% NN
three CD
months NNS
; :
8.40 CD
% NN
six CD
months NNS
. .

BANKERS NNS
ACCEPTANCES NNS
: :
8.42 CD
% NN
30 CD
days NNS
; :
8.30 CD
% NN
60 CD
days NNS
; :
8.28 CD
% NN
90 CD
days NNS
; :
8.15 CD
% NN
120 CD
days NNS
; :
8.05 CD
% NN
150 CD
days NNS
; :
7.95 CD
% NN
180 CD
days NNS
. .

Negotiable JJ
, ,
bank-backed JJ
business NN
credit NN
instruments NNS
typically RB
financing VBG
an DT
import NN
order NN
. .

LONDON NNP
LATE JJ
EURODOLLARS NNS
: :
8 CD
11\/16 CD
% NN
to TO
8 CD
9\/16 CD
% NN
one CD
month NN
; :
8 CD
5\/8 CD
% NN
to TO
8 CD
1\/2 CD
% NN
two CD
months NNS
; :
8 CD
5\/8 CD
% NN
to TO
8 CD
1\/2 CD
% NN
three CD
months NNS
; :
8 CD
9\/16 CD
% NN
to TO
8 CD
7\/16 CD
% NN
four CD
months NNS
; :
8 CD
1\/2 CD
% NN
to TO
8 CD
3\/8 CD
% NN
five CD
months NNS
; :
8 CD
1\/2 CD
% NN
to TO
8 CD
3\/8 CD
% NN
six CD
months NNS
. .

LONDON NNP
INTERBANK NNP
OFFERED NNP
RATES NNS
-LRB- (
LIBOR NNP
-RRB- )
: :
8 CD
11\/16 CD
% NN
one CD
month NN
; :
8 CD
11\/16 CD
% NN
three CD
months NNS
; :
8 CD
1\/2 CD
% NN
six CD
months NNS
; :
8 CD
1\/2 CD
% NN
one CD
year NN
. .

The DT
average NN
of IN
interbank NN
offered VBD
rates NNS
for IN
dollar NN
deposits NNS
in IN
the DT
London NNP
market NN
based VBN
on IN
quotations NNS
at IN
five CD
major JJ
banks NNS
. .

FOREIGN JJ
PRIME JJ
RATES NNS
: :
Canada NNP
13.50 CD
% NN
; :
Germany NNP
8.50 CD
% NN
; :
Japan NNP
4.875 CD
% NN
; :
Switzerland NNP
8.50 CD
% NN
; :
Britain NNP
15 CD
% NN
. .

These DT
rate NN
indications NNS
are VBP
n't RB
directly RB
comparable JJ
; :
lending NN
practices NNS
vary VBP
widely RB
by IN
location NN
. .

TREASURY NN
BILLS NNS
: :
Results NNS
of IN
the DT
Monday NNP
, ,
October NNP
16 CD
, ,
1989 CD
, ,
auction NN
of IN
short-term NNP
U.S. NNP
government NN
bills NNS
, ,
sold VBN
at IN
a DT
discount NN
from IN
face NN
value NN
in IN
units NNS
of IN
$ $
10,000 CD
to TO
$ $
1 CD
million CD
: :
7.37 CD
% NN
13 CD
weeks NNS
; :
7.42 CD
% NN
26 CD
weeks NNS
. .

FEDERAL NNP
HOME NNP
LOAN NNP
MORTGAGE NNP
CORP NNP
. .
-LRB- (
Freddie NNP
Mac NNP
-RRB- )
: :

Posted VBN
yields NNS
on IN
30-year JJ
mortgage NN
commitments NNS
for IN
delivery NN
within IN
30 CD
days NNS
. .

9.88 CD
% NN
, ,
standard JJ
conventional JJ
fixed-rate JJ
mortgages NNS
; :
7.875 CD
% NN
, ,
2 CD
% NN
rate NN
capped VBD
one-year JJ
adjustable JJ
rate NN
mortgages NNS
. .

Source NN
: :
Telerate NNP
Systems NNP
Inc NNP
. .

FEDERAL NNP
NATIONAL NNP
MORTGAGE NNP
ASSOCIATION NNP
-LRB- (
Fannie NNP
Mae NNP
-RRB- )
: :

Posted VBN
yields NNS
on IN
30 CD
year NN
mortgage NN
commitments NNS
for IN
delivery NN
within IN
30 CD
days NNS
-LRB- (
priced VBN
at IN
par NN
-RRB- )
9.83 CD
% NN
, ,
standard JJ
conventional JJ
fixed-rate JJ
mortgages NNS
; :
8.70 CD
% NN
, ,
6\/2 CD
rate NN
capped VBD
one-year JJ
adjustable JJ
rate NN
mortgages NNS
. .

Source NN
: :
Telerate NNP
Systems NNP
Inc NNP
. .

MERRILL NNP
LYNCH NNP
READY NNP
ASSETS NNP
TRUST NNP
: :
8.50 CD
% NN
. .

Annualized VBN
average JJ
rate NN
of IN
return NN
after IN
expenses NNS
for IN
the DT
past JJ
30 CD
days NNS
; :
not RB
a DT
forecast NN
of IN
future NN
returns NNS
. .

A DT
grand JJ
jury NN
here RB
indicted VBD
Norton NNP
Co. NNP
's POS
former JJ
director NN
of IN
advanced-ceramics NN
research NN
, ,
charging VBG
him PRP
with IN
interstate JJ
transportation NN
of IN
stolen VBN
property NN
. .

Norton NNP
and CC
General NNP
Electric NNP
Co. NNP
last JJ
month NN
filed VBD
a DT
lawsuit NN
against IN
the DT
former JJ
research NN
manager NN
, ,
Chien-Min NNP
Sung NNP
, ,
charging VBG
him PRP
with IN
stealing VBG
trade NN
secrets NNS
. .

Mr. NNP
Sung NNP
formerly RB
worked VBD
at IN
General NNP
Electric NNP
in IN
research NN
on IN
synthetic JJ
diamonds NNS
. .

The DT
criminal JJ
charges NNS
brought VBN
against IN
him PRP
involved VBD
GE NNP
technology NN
, ,
according VBG
the DT
court NN
documents NNS
. .

If IN
convicted VBN
, ,
he PRP
could MD
be VB
imprisoned VBN
for IN
up IN
to TO
10 CD
years NNS
and CC
fined VBN
$ $
250,000 CD
. .

Mr. NNP
Sung NNP
could MD
n't RB
be VB
reached VBN
for IN
comment NN
. .

He PRP
earlier RBR
denied VBN
the DT
allegations NNS
against IN
him PRP
in IN
the DT
lawsuit NN
by IN
Norton NNP
and CC
GE NNP
. .

Norton NNP
makes VBZ
sandpaper NN
and CC
other JJ
abrasives NNS
, ,
diamond NN
tools NNS
, ,
specialty NN
plastics NNS
and CC
ceramics NNS
. .

As IN
the DT
citizens NNS
of IN
San NNP
Francisco NNP
and CC
surrounding VBG
communities NNS
began VBD
assessing VBG
the DT
damage NN
from IN
Tuesday NNP
's POS
devastating JJ
earthquake NN
, ,
NBC NNP
News NNP
began VBD
assessing VBG
the DT
damage NN
from IN
what WP
some DT
said VBD
was VBD
a DT
failure NN
to TO
provide VB
comprehensive JJ
coverage NN
in IN
the DT
earthquake NN
's POS
initial JJ
moments NNS
. .

`` ``
In IN
terms NNS
of IN
coverage NN
, ,
it PRP
was VBD
a DT
disaster NN
equal JJ
to TO
the DT
earthquakes NNS
, ,
'' ''
said VBD
Eric NNP
Premner NNP
, ,
president NN
for IN
broadcasting NN
of IN
King NNP
Broadcasting NNP
Co. NNP
, ,
which WDT
owns VBZ
the DT
NBC NNP
affiliate NN
in IN
Seattle NNP
, ,
Wash NNP
. .

While IN
rival JJ
ABC NNP
News NNP
outstripped NN
the DT
competition NN
in IN
live VB
coverage NN
of IN
the DT
event NN
by IN
sheer JJ
luck NN
-- :
the DT
network NN
was VBD
broadcasting VBG
the DT
World NNP
Series NNP
from IN
Candlestick NNP
Park NNP
when WRB
the DT
quake NN
struck VBD
-- :
NBC NNP
News NNP
was VBD
unable JJ
to TO
get VB
its PRP$
signal NN
out IN
of IN
San NNP
Francisco NNP
for IN
the DT
first JJ
hour NN
after IN
the DT
quake NN
. .

`` ``
I PRP
have VBP
to TO
attribute VB
the DT
lackluster JJ
performance NN
to TO
a DT
natural JJ
disaster NN
, ,
'' ''
said VBD
Mr. NNP
Premner NNP
. .

`` ``
So RB
before IN
I PRP
start VBP
to TO
be VB
really RB
critical JJ
of IN
NBC NNP
, ,
I PRP
would MD
like VB
to TO
know VB
more JJR
about IN
what WP
happened VBD
. .
'' ''

There EX
were VBD
no DT
complaints NNS
from IN
affiliates NNS
of IN
CBS NNP
Inc. NNP
and CC
Cable NNP
News NNP
Network NNP
, ,
a DT
unit NN
of IN
Turner NNP
Broadcasting NNP
System NNP
Inc NNP
. .

But CC
that DT
was VBD
not RB
the DT
case NN
at IN
NBC NNP
News NNP
, ,
which WDT
has VBZ
been VBN
dogged VBN
with IN
the DT
image NN
of IN
not RB
being VBG
aggressive JJ
on IN
major JJ
breaking NN
stories NNS
. .

Last JJ
summer NN
, ,
the DT
affiliates NNS
bitterly RB
complained VBD
to TO
network VB
executives NNS
about IN
the DT
poor JJ
coverage NN
of IN
the DT
student NN
uprising NN
in IN
China NNP
. .

`` ``
I PRP
was VBD
not RB
pleased VBN
with IN
the DT
slow JJ
start NN
, ,
and CC
neither DT
was VBD
NBC NNP
News NNP
, ,
'' ''
said VBD
Guy NNP
Hempel NNP
, ,
general JJ
manager NN
of IN
NBC NNP
affiliate NN
WAVE NNP
in IN
Louisville NNP
, ,
Ky NNP
. .

A DT
spokesman NN
for IN
National NNP
Broadcasting NNP
Co. NNP
, ,
a DT
unit NN
of IN
General NNP
Electric NNP
Co. NNP
, ,
said VBD
the DT
network NN
was VBD
`` ``
looking VBG
into IN
what WP
happened VBD
. .
'' ''

The DT
stations NNS
said VBD
they PRP
were VBD
pleased VBN
with IN
the DT
extended VBN
coverage NN
yesterday NN
, ,
including VBG
a DT
special JJ
five-hour JJ
edition NN
of IN
`` ``
Today NN
. .
'' ''

Don NNP
Browne NNP
, ,
director NN
of IN
news NN
at IN
NBC NNP
News NNP
, ,
said VBD
in IN
an DT
interview NN
that IN
`` ``
we PRP
could MD
n't RB
get VB
a DT
signal NN
out IN
of IN
San NNP
Francisco NNP
. .
We PRP
were VBD
out IN
of IN
the DT
box NN
. .

It PRP
was VBD
horrible JJ
. .

The DT
comment NN
we PRP
're VBP
hearing VBG
is VBZ
that IN
we PRP
were VBD
slow JJ
out IN
of IN
the DT
box NN
, ,
but CC
beat VB
everyone NN
else RB
in IN
the DT
stretch NN
. .
'' ''

NBC NNP
broadcast NN
throughout IN
the DT
entire JJ
night NN
and CC
did VBD
not RB
go VB
off IN
the DT
air NN
until IN
noon NN
yesterday NN
. .

The DT
quake NN
postponed VBD
the DT
third JJ
and CC
fourth JJ
games NNS
of IN
the DT
World NNP
Series NNP
. .

In IN
place NN
of IN
the DT
games NNS
, ,
ABC NNP
said VBD
it PRP
planned VBD
to TO
broadcast VB
next JJ
week NN
's POS
episodes NNS
of IN
its PRP$
prime-time JJ
Wednesday NNP
and CC
Thursday NNP
lineups NNS
, ,
except IN
for IN
a DT
one-hour JJ
special NN
on IN
the DT
earthquake NN
at IN
10 CD
p.m. NN
last JJ
night NN
. .

The DT
series NN
is VBZ
scheduled VBN
to TO
resume VB
Tuesday NNP
evening NN
in IN
San NNP
Francisco NNP
. .

`` ``
There EX
are VBP
no DT
commercials NNS
to TO
make VB
up IN
for IN
since IN
we PRP
're VBP
going VBG
to TO
eventually RB
broadcast NN
the DT
World NNP
Series NNP
, ,
'' ''
said VBD
a DT
network NN
spokesman NN
. .

Pinnacle NNP
West NNP
Capital NNP
Corp. NNP
said VBD
it PRP
suspended VBD
indefinitely RB
its PRP$
common JJ
stock NN
dividend NN
and CC
reported VBD
a DT
91 CD
% NN
plunge NN
in IN
third-quarter JJ
net JJ
income NN
. .

The DT
announcement NN
, ,
made VBN
after IN
the DT
close NN
of IN
trading NN
, ,
caught VBN
analysts NNS
by IN
surprise NN
. .

The DT
company NN
closed VBD
at IN
$ $
12 CD
a DT
share NN
, ,
down RB
62.5 CD
cents NNS
, ,
in IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
. .

Pinnacle NNP
West NNP
slashed VBD
its PRP$
quarterly JJ
dividend NN
to TO
40 CD
cents NNS
per IN
share NN
from IN
70 CD
cents NNS
in IN
December NNP
, ,
saying VBG
at IN
the DT
time NN
that IN
it PRP
believed VBD
the DT
new JJ
, ,
lower JJR
dividend NN
was VBD
`` ``
sustainable JJ
. .
'' ''

A DT
company NN
spokesman NN
said VBD
the DT
decision NN
to TO
eliminate VB
the DT
dividend NN
resulted VBD
from IN
a DT
quarterly JJ
appraisal NN
and CC
that IN
circumstances NNS
had VBD
changed VBN
since IN
the DT
December NNP
announcement NN
. .

He PRP
declined VBD
to TO
elaborate VB
. .

Edward NNP
J. NNP
Tirello NNP
Jr. NNP
, ,
an DT
analyst NN
at IN
Shearson NNP
Lehman NNP
Hutton NNP
Inc. NNP
, ,
speculated VBD
that IN
the DT
sudden JJ
dividend NN
elimination NN
presages VBZ
an DT
expensive JJ
agreement NN
with IN
thrift NN
regulators NNS
over IN
the DT
company NN
's POS
insolvent JJ
MeraBank NNP
savings NNS
and CC
loan NN
unit NN
. .

Analysts NNS
have VBP
estimated VBN
that IN
Pinnacle NNP
West NNP
may MD
have VB
to TO
inject VB
between IN
$ $
300 CD
million CD
and CC
$ $
400 CD
million CD
into IN
the DT
MeraBank NNP
unit NN
before IN
turning VBG
the DT
thrift NN
over IN
to TO
federal JJ
regulators NNS
. .

The DT
latest JJS
financial JJ
results NNS
at IN
the DT
troubled JJ
utility NN
and CC
thrift NN
holding VBG
company NN
, ,
based VBN
in IN
Phoenix NNP
, ,
Ariz. NNP
, ,
reflect VB
continuing VBG
problems NNS
at IN
MeraBank NNP
and CC
losses NNS
in IN
real-estate NN
, ,
venture-capital NN
and CC
uranium-mining NN
operations NNS
. .

Third-quarter JJ
net JJ
income NN
slid VBD
to TO
$ $
5.1 CD
million CD
, ,
or CC
six CD
cents NNS
a DT
share NN
, ,
from IN
$ $
56 CD
million CD
, ,
or CC
65 CD
cents NNS
, ,
a DT
year NN
earlier RBR
. .

Utility NN
operations NNS
, ,
the DT
only JJ
company NN
unit NN
operating VBG
in IN
the DT
black NN
in IN
the DT
latest JJS
period NN
, ,
had VBD
a DT
26 CD
% NN
drop NN
in IN
profit NN
, ,
to TO
$ $
86.3 CD
million CD
, ,
largely RB
as IN
a DT
result NN
of IN
outages NNS
at IN
the DT
company NN
's POS
huge JJ
Palo NNP
Verde NNP
nuclear JJ
facility NN
and CC
the DT
cost NN
of IN
purchased VBN
replacement NN
power NN
. .

In IN
other JJ
operations NNS
, ,
losses NNS
at IN
MeraBank NNP
totaled VBD
$ $
85.7 CD
million CD
in IN
the DT
latest JJS
quarter NN
, ,
compared VBN
with IN
a DT
$ $
2.5 CD
million CD
profit NN
a DT
year NN
earlier RBR
. .

The DT
latest JJS
quarter NN
includes VBZ
a DT
$ $
42.7 CD
million CD
addition NN
to TO
loan-loss NN
reserves NNS
. .

As RB
recently RB
as IN
August NNP
, ,
the DT
company NN
said VBD
it PRP
did VBD
n't RB
foresee VB
a DT
need NN
for IN
substantial JJ
additions NNS
to TO
reserves NNS
. .
Pinnacle NNP
's POS
SunCor NNP
Development NNP
Co NNP
. .
real-estate NN
unit NN
's POS
loss NN
narrowed VBD
to TO
$ $
13.8 CD
million CD
from IN
$ $
78.4 CD
million CD
. .

The DT
latest JJS
period NN
included VBD
a DT
$ $
9 CD
million CD
write-down NN
on IN
undeveloped JJ
land NN
, ,
while IN
the DT
year-earlier JJ
period NN
included VBD
a DT
$ $
46 CD
million CD
reserve NN
for IN
real-estate NN
losses NNS
. .

Losses NNS
at IN
its PRP$
Malapai NNP
Resources NNP
Co NNP
. .
uranium-mining NN
unit NN
narrowed VBD
to TO
$ $
3.4 CD
million CD
from IN
$ $
18 CD
million CD
a DT
year NN
ago RB
, ,
which WDT
included VBD
a DT
$ $
9 CD
million CD
write-down NN
of IN
utility NN
inventories NNS
. .

Losses NNS
at IN
El NNP
Dorado NNP
Investment NNP
Co. NNP
, ,
the DT
venture-capital JJ
operation NN
, ,
widened VBD
to TO
$ $
6.8 CD
million CD
from IN
$ $
425,000 CD
a DT
year NN
earlier RBR
. .

The DT
latest JJS
quarter NN
included VBD
a DT
$ $
6.6 CD
million CD
write-down NN
of IN
investments NNS
. .

Equitec NNP
Financial NNP
Group NNP
said VBD
it PRP
will MD
ask VB
as RB
many JJ
as IN
100,000 CD
investors NNS
in IN
12 CD
of IN
its PRP$
public JJ
real-estate NN
limited JJ
partnerships NNS
to TO
give VB
approval NN
to TO
rolling VBG
them PRP
up IN
into IN
a DT
new JJ
master NN
limited JJ
partnership NN
. .

Under IN
the DT
proposal NN
by IN
Equitec NNP
, ,
a DT
financially RB
troubled JJ
real-estate NN
syndicator NN
, ,
New NNP
York-based JJ
Hallwood NNP
Group NNP
Inc. NNP
would MD
replace VB
Equitec NNP
as IN
the DT
newly RB
formed VBN
master NN
limited JJ
partnership NN
's POS
general JJ
partner NN
and CC
manager NN
. .

Shares NNS
of IN
the DT
new JJ
partnership NN
would MD
trade VB
on IN
an DT
exchange NN
like IN
a DT
stock NN
. .

Hallwood NNP
is VBZ
a DT
merchant NN
bank NN
whose WP$
activities NNS
include VBP
the DT
ownership NN
, ,
management NN
and CC
financial JJ
restructuring NN
of IN
shopping NN
centers NNS
, ,
office NN
buildings NNS
, ,
apartments NNS
and CC
other JJ
real JJ
estate NN
. .

In IN
a DT
statement NN
, ,
Equitec NNP
Chairman NNP
Richard NNP
L. NNP
Saalfeld NNP
said VBD
the DT
transfer NN
will MD
benefit VB
both DT
the DT
company NN
and CC
investors NNS
in IN
the DT
12 CD
limited JJ
partnerships NNS
included VBD
in IN
the DT
proposed VBN
rollup NN
. .

While IN
he PRP
did VBD
n't RB
describe VB
the DT
partnerships NNS
' POS
financial JJ
condition NN
, ,
he PRP
said VBD
their PRP$
operations NNS
`` ``
continue VB
to TO
drain VB
the DT
resources NNS
of IN
Equitec NNP
. .
'' ''

Equitec NNP
posted VBD
a DT
$ $
3.3 CD
million CD
net JJ
loss NN
in IN
the DT
second JJ
quarter NN
on IN
$ $
11.8 CD
million CD
of IN
revenue NN
, ,
compared VBN
with IN
a DT
net JJ
loss NN
of IN
$ $
12.9 CD
million CD
in IN
the DT
year-earlier JJ
period NN
on IN
revenue NN
of IN
$ $
9.1 CD
million CD
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Equitec NNP
closed VBD
at IN
$ $
2.625 CD
a DT
share NN
, ,
unchanged JJ
. .

Because IN
of IN
Tuesday NNP
's POS
earthquake NN
in IN
Northern NNP
California NNP
, ,
company NN
officials NNS
could MD
n't RB
immediately RB
be VB
reached VBN
for IN
additional JJ
comment NN
. .

A DT
spokesman NN
for IN
Hallwood NNP
said VBD
the DT
12 CD
limited JJ
partnerships NNS
, ,
which WDT
were VBD
marketed VBN
by IN
brokerage NN
firms NNS
and CC
financial JJ
planners NNS
between IN
1979 CD
and CC
1984 CD
, ,
raised VBN
several JJ
hundred CD
million CD
dollars NNS
from IN
investors NNS
. .

With IN
airline NN
deals NNS
in IN
a DT
tailspin NN
, ,
legendary JJ
Wall NNP
Street NNP
trader NN
Michael NNP
Steinhardt NNP
could MD
have VB
trouble NN
parachuting VBG
out IN
of IN
USAir NNP
Group NNP
, ,
traders NNS
say VBP
. .

Only RB
a DT
week NN
ago RB
, ,
when WRB
airline NN
buy-out NN
fever NN
was VBD
already RB
winding VBG
down RB
, ,
Mr. NNP
Steinhardt NNP
was VBD
engaged VBN
in IN
a DT
duel NN
with IN
USAir NNP
. .

He PRP
was VBD
threatening VBG
to TO
take VB
over IN
the DT
carrier NN
, ,
after IN
spending VBG
an DT
estimated VBN
$ $
167 CD
million CD
to TO
build VB
an DT
8.4 CD
% NN
USAir NNP
stake NN
for IN
his PRP$
investment NN
clients NNS
. .

The DT
would-be JJ
raider NN
even RB
hired VBD
an DT
investment NN
banker NN
to TO
give VB
teeth NNS
to TO
his PRP$
takeover NN
threat NN
, ,
which WDT
was VBD
widely RB
interpreted VBN
as IN
an DT
effort NN
to TO
flush VB
out RP
an DT
acquirer NN
for IN
USAir NNP
, ,
or CC
for IN
his PRP$
own JJ
stake NN
. .

In IN
fighting VBG
USAir NNP
, ,
Mr. NNP
Steinhardt NNP
was VBD
pitted VBN
against IN
another DT
investor NN
, ,
billionnaire NN
Warren NNP
Buffett NNP
, ,
who WP
bought VBD
into IN
USAir NNP
to TO
help VB
fend VB
off IN
Mr. NNP
Steinhardt NNP
. .

Mr. NNP
Buffett NNP
's POS
firm NN
, ,
Berkshire NNP
Hathaway NNP
, ,
holds VBZ
a DT
much RB
bigger JJR
stake NN
in IN
the DT
carrier NN
than IN
Mr. NNP
Steinhardt NNP
's POS
firm NN
, ,
Steinhardt NNP
Partners NNPS
. .

Now RB
, ,
in IN
the DT
wake NN
of IN
UAL NNP
's POS
troubles NNS
in IN
financing VBG
its PRP$
buy-out NN
, ,
the DT
airline NN
raiding VBG
game NN
has VBZ
been VBN
grounded VBN
. .

Instead RB
of IN
hoping VBG
to TO
sell VB
his PRP$
USAir NNP
stake NN
at IN
analysts NNS
' POS
estimated VBN
buy-out NN
price NN
of IN
$ $
80 CD
a DT
share NN
, ,
Mr. NNP
Steinhardt NNP
is VBZ
stuck VBN
with IN
roughly RB
3.7 CD
million CD
USAir NNP
shares VBZ
that DT
cost NN
him PRP
$ $
45 CD
, ,
on IN
average JJ
, ,
but CC
yesterday NN
closed VBD
at IN
40 CD
1\/2 CD
, ,
up IN
1\/4 CD
, ,
in IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
. .

`` ``
It PRP
does VBZ
n't RB
make VB
sense NN
to TO
parachute VB
out IN
at IN
this DT
price NN
, ,
'' ''
Mr. NNP
Steinhardt NNP
says VBZ
, ,
though IN
he PRP
has VBZ
stopped VBN
his PRP$
takeover NN
talk NN
and CC
now RB
commends VBZ
USAir NNP
managers NNS
' POS
`` ``
operating VBG
skills NNS
. .
'' ''

At IN
the DT
current JJ
price NN
, ,
the DT
USAir NNP
holding VBG
represents VBZ
9 CD
% NN
of IN
all PDT
the DT
assets NNS
that IN
Mr. NNP
Steinhardt NNP
manages VBZ
. .

A DT
week NN
ago RB
, ,
USAir NNP
stock NN
briefly NN
soared VBD
above IN
52 CD
after IN
a DT
report NN
in IN
USA NNP
Today NN
that IN
Mr. NNP
Steinhardt NNP
might MD
launch VB
a DT
hostile JJ
bid NN
for IN
the DT
carrier NN
, ,
though IN
takeover NN
speculators NNS
say VBP
they PRP
were VBD
skeptical JJ
. .

`` ``
If IN
USAir NNP
is VBZ
worth JJ
80 CD
as IN
a DT
takeover NN
and CC
the DT
stock NN
went VBD
to TO
52 CD
, ,
the DT
market NN
was VBD
saying VBG
Steinhardt NNP
's POS
presence NN
was VBD
n't RB
worth JJ
anything NN
, ,
in IN
terms NNS
of IN
getting VBG
a DT
deal NN
done VBN
, ,
'' ''
says VBZ
a DT
veteran NN
takeover NN
speculator NN
. .

Traders NNS
say VBP
this DT
all DT
goes VBZ
to TO
show VB
that IN
even RB
the DT
smartest JJS
money NN
manager NN
can MD
get VB
infected VBN
with IN
crowd NN
passions NNS
. .

In IN
trying VBG
to TO
raid VB
USAir NNP
, ,
Mr. NNP
Steinhardt NNP
abandoned VBD
his PRP$
usual JJ
role NN
as IN
a DT
passive JJ
investor NN
, ,
and CC
ran VBD
into IN
snags NNS
. .

Moreover RB
, ,
unlike IN
Mr. NNP
Buffett NNP
, ,
who WP
often RB
holds VBZ
big JJ
stakes NNS
in IN
companies NNS
for IN
years NNS
, ,
Mr. NNP
Steinhardt NNP
has VBZ
n't RB
in IN
the DT
past RB
done VBN
much JJ
long-term JJ
investing NN
. .

Mr. NNP
Steinhardt NNP
, ,
who WP
runs VBZ
about RB
$ $
1.7 CD
billion CD
for IN
Steinhardt NNP
Partners NNPS
, ,
made VBD
his PRP$
name NN
as IN
a DT
gunslinging VBG
trader NN
, ,
moving VBG
in IN
and CC
out RP
of IN
stocks NNS
with IN
agility NN
-- :
enriching VBG
himself PRP
and CC
his PRP$
investment NN
clients NNS
. .

Meanwhile RB
, ,
his PRP$
big JJ
losses NNS
, ,
for IN
instance NN
in IN
1987 CD
's POS
crash NN
, ,
generally RB
have VBP
been VBN
trading NN
losses NNS
. .

So RB
, ,
some DT
see VB
a DT
special JJ
irony NN
in IN
the DT
fact NN
that IN
Mr. NNP
Steinhardt NNP
, ,
the DT
trader NN
, ,
now RB
is VBZ
encumbered VBN
with IN
a DT
massive JJ
, ,
illiquid JJ
airline NN
holding VBG
. .

Analysts NNS
say VBP
USAir NNP
stock NN
might MD
lose VB
four CD
or CC
five CD
points NNS
if IN
the DT
Steinhardt NNP
stake NN
was VBD
dumped VBN
all DT
at IN
once RB
. .

As IN
a DT
result NN
, ,
Mr. NNP
Steinhardt NNP
must MD
reconcile VB
himself PRP
to TO
selling VBG
USAir NNP
at IN
a DT
loss NN
, ,
or CC
to TO
holding VBG
the DT
shares NNS
as IN
an DT
old-fashioned JJ
investment NN
. .
`` ``
Long-term JJ
investing NN
-- :
that DT
's VBZ
not RB
Steinhardt NNP
's POS
style NN
, ,
'' ''
chuckles VBZ
an DT
investor NN
who WP
once RB
worked VBD
at IN
Steinhardt NNP
Partners NNPS
. .

`` ``
He PRP
does VBZ
n't RB
usually RB
risk VBP
that IN
much JJ
unless IN
he PRP
thinks VBZ
he PRP
has VBZ
an DT
ace NN
in IN
the DT
hole NN
, ,
'' ''
adds VBZ
another DT
Steinhardt NNP
Partners NNPS
alumnus NN
. .

In IN
recent JJ
days NNS
, ,
traders NNS
say VBP
USAir NNP
has VBZ
been VBN
buying VBG
its PRP$
own JJ
shares NNS
, ,
as IN
part NN
of IN
a DT
program NN
to TO
retire VB
about IN
eight CD
million CD
USAir NNP
shares NNS
, ,
though IN
the DT
carrier NN
wo MD
n't RB
discuss VB
its PRP$
buy-back NN
program NN
. .

If IN
USAir NNP
stepped VBD
up IN
its PRP$
share NN
purchases NNS
, ,
that WDT
might MD
be VB
a DT
way NN
for IN
Mr. NNP
Steinhardt NNP
to TO
get VB
out IN
, ,
says VBZ
Timothy NNP
Pettee NNP
, ,
a DT
Merrill NNP
Lynch NNP
analyst NN
. .
But CC
USAir NNP
might MD
not RB
want VB
to TO
help VB
Mr. NNP
Steinhardt NNP
, ,
he PRP
adds VBZ
. .

In IN
1987 CD
, ,
USAir NNP
Chairman NNP
Edwin NNP
Colodny NNP
stonewalled VBD
when WRB
Trans NNP
World NNP
Airlines NNP
Chairman NNP
Carl NNP
Icahn NNP
threatened VBD
to TO
take VB
over IN
the DT
carrier NN
. .

Mr. NNP
Icahn NNP
, ,
a DT
much RB
more RBR
practiced VBN
raider NN
than IN
Mr. NNP
Steinhardt NNP
, ,
eventually RB
sold VBN
a DT
big JJ
USAir NNP
stake NN
at IN
a DT
tiny JJ
profit NN
through IN
Bear NNP
, ,
Stearns NNP
. .

Mr. NNP
Steinhardt NNP
also RB
could MD
take VB
that DT
route NN
. .

He PRP
confers VBZ
big JJ
trading NN
commissions NNS
on IN
Wall NNP
Street NNP
firms NNS
. .

However RB
, ,
with IN
airline NN
stocks NNS
cratering VBG
, ,
he PRP
might MD
not RB
get VB
a DT
very RB
good JJ
price NN
for IN
his PRP$
shares NNS
, ,
traders NNS
say VBP
. .

Especially RB
galling JJ
for IN
Mr. NNP
Steinhardt NNP
, ,
say VBP
people NNS
close VBP
to TO
him PRP
, ,
is VBZ
that IN
USAir NNP
's POS
Mr. NNP
Colodny NNP
wo MD
n't RB
even RB
take VB
his PRP$
telephone NN
calls NNS
. .

While IN
USAir NNP
is VBZ
n't RB
considered VBN
absolutely RB
takeover-proof JJ
, ,
its PRP$
defenses NNS
, ,
including VBG
the DT
sale NN
in IN
August NNP
of IN
a DT
12 CD
% NN
stake NN
in IN
the DT
company NN
to TO
Mr. NNP
Buffett NNP
's POS
Berkshire NNP
Hathaway NNP
, ,
are VBP
pretty RB
strong JJ
. .

USAir NNP
's POS
deal NN
with IN
Mr. NNP
Buffett NNP
`` ``
was VBD
n't RB
exactly RB
a DT
shining VBG
example NN
of IN
shareholder NN
democracy NN
, ,
'' ''
Mr. NNP
Steinhardt NNP
says VBZ
. .

Since IN
last JJ
April NNP
, ,
the DT
investor NN
has VBZ
made VBN
seven CD
so-called JJ
13D CD
filings NNS
in IN
USAir NNP
, ,
as IN
he PRP
bought VBD
and CC
sold VBD
the DT
company NN
's POS
stock NN
. .

Such JJ
disclosures NNS
of IN
big JJ
holdings NNS
often RB
are VBP
used VBN
by IN
raiders NNS
to TO
try VB
to TO
scare VB
a DT
company NN
's POS
managers NNS
, ,
and CC
to TO
stir VB
interest NN
in IN
the DT
stock NN
. .

But CC
of IN
course NN
it PRP
would MD
be VB
highly RB
unusual JJ
for IN
an DT
investment NN
fund NN
such JJ
as IN
Steinhardt NNP
Partners NNPS
to TO
take VB
over IN
a DT
company NN
. .

USAir NNP
and CC
Mr. NNP
Buffett NNP
wo MD
n't RB
talk VB
about IN
Mr. NNP
Steinhardt NNP
at IN
all DT
. .

Analysts NNS
say VBP
USAir NNP
has VBZ
great JJ
promise NN
. .

By IN
the DT
second JJ
half NN
of IN
1990 CD
, ,
USAir NNP
stock NN
could MD
hit VB
60 CD
, ,
says VBZ
Helane NNP
Becker NNP
of IN
Shearson NNP
Lehman NNP
Hutton NNP
. .

She PRP
thinks VBZ
traders NNS
should MD
buy VB
the DT
stock NN
if IN
it PRP
tumbles VBZ
to TO
35 CD
. .

But CC
meanwhile RB
, ,
USAir NNP
is VBZ
expected VBN
to TO
show VB
losses NNS
or CC
lackluster JJ
profit NN
for IN
several JJ
quarters NNS
as IN
it PRP
tries VBZ
to TO
digest VB
Piedmont NNP
Airlines NNPS
, ,
which WDT
it PRP
acquired VBD
. .

Moreover RB
, ,
some DT
investors NNS
think VBP
a DT
recession NN
or CC
renewed VBN
airfare NN
wars NNS
will MD
pummel VB
airline NN
stocks NNS
in IN
coming VBG
months NNS
. .

However RB
, ,
Mr. NNP
Steinhardt NNP
says VBZ
he PRP
's VBZ
`` ``
comfortable JJ
holding NN
USAir NNP
as IN
an DT
investment NN
. .
'' ''

While IN
he PRP
has VBZ
bought VBN
and CC
sold VBD
some DT
USAir NNP
shares NNS
in IN
recent JJ
days NNS
, ,
he PRP
says VBZ
that IN
contrary JJ
to TO
rumors NNS
, ,
he PRP
has VBZ
n't RB
tried VBN
to TO
unload VB
his PRP$
holding NN
. .

Mr. NNP
Steinhardt NNP
adds VBZ
that IN
he PRP
bought VBD
USAir NNP
stock NN
earlier RBR
this DT
year NN
as IN
`` ``
part NN
of IN
a DT
fundamental JJ
investment NN
in IN
the DT
airline NN
group NN
. .
'' ''

In IN
1989 CD
, ,
Mr. NNP
Steinhardt NNP
says VBZ
he PRP
made VBD
money NN
trading NN
in IN
Texas NNP
Air NNP
, ,
AMR NNP
and CC
UAL NNP
. .

Overall RB
, ,
his PRP$
investments NNS
so RB
far RB
this DT
year NN
are VBP
showing VBG
gains NNS
of IN
about IN
20 CD
% NN
, ,
he PRP
adds VBZ
. .

Does VBZ
Mr. NNP
Steinhardt NNP
regret VBP
his PRP$
incursion NN
into IN
the DT
takeover-threat NN
game NN
? .

People NNS
close VBP
to TO
the DT
investor NN
say VBP
that WDT
was VBD
an DT
experiment NN
he PRP
is VBZ
unlikely JJ
to TO
repeat VB
. .

`` ``
I PRP
do VBP
n't RB
think VB
you PRP
'll MD
find VB
I PRP
'm VBP
making VBG
a DT
radical JJ
change NN
in IN
my PRP$
traditional JJ
investment NN
style NN
, ,
'' ''
Mr. NNP
Steinhardt NNP
says VBZ
. .

Addington NNP
Resources NNP
Inc. NNP
said VBD
it PRP
called VBD
for IN
redemption NN
on IN
Nov. NNP
21 CD
its PRP$
$ $
25.8 CD
million CD
outstanding JJ
of IN
8 CD
% NN
convertible JJ
subordinated VBN
debentures NNS
due JJ
2013 CD
. .

The DT
debentures NNS
were VBD
issued VBN
in IN
the DT
face NN
amount NN
of IN
$ $
46 CD
million CD
on IN
July NNP
11 CD
, ,
1988 CD
, ,
the DT
Ashland NNP
, ,
Ky. NNP
, ,
coal NN
mining NN
, ,
water NN
transportation NN
and CC
construction NN
company NN
said VBD
. .

The DT
company NN
said VBD
the DT
redemption NN
is VBZ
permitted VBN
because IN
the DT
price NN
of IN
Addington NNP
's POS
stock NN
has VBZ
equaled VBN
or CC
exceeded VBN
$ $
19.60 CD
for IN
20 CD
consecutive JJ
trading NN
days NNS
, ,
a DT
condition NN
set VBN
in IN
the DT
terms NNS
of IN
the DT
debentures NNS
. .

Debenture NN
holders NNS
are VBP
expected VBN
to TO
convert VB
most RBS
of IN
the DT
debentures NNS
into IN
common JJ
because IN
the DT
value NN
of IN
the DT
stock NN
received VBD
in IN
a DT
conversion NN
would MD
exceed VB
the DT
$ $
1,103.11 CD
redemption NN
price NN
. .

Commodore NNP
International NNP
Ltd. NNP
said VBD
it PRP
will MD
report VB
a DT
loss NN
for IN
the DT
first JJ
quarter NN
ended VBN
Sept. NNP
30 CD
because IN
sales NNS
of IN
personal JJ
computers NNS
for IN
the DT
home NN
market NN
remained VBD
weak JJ
in IN
some DT
major JJ
countries NNS
. .

That DT
will MD
mark VB
the DT
second JJ
consecutive JJ
quarterly JJ
loss NN
for IN
Commodore NNP
and CC
will MD
raise VB
additional JJ
questions NNS
about IN
whether IN
it PRP
can MD
sustain VB
the DT
turnaround NN
it PRP
had VBD
seemed VBN
to TO
be VB
engineering NN
. .

Commodore NNP
, ,
West NNP
Chester NNP
, ,
Pa. NNP
, ,
had VBD
said VBD
in IN
August NNP
that IN
it PRP
was VBD
consolidating VBG
manufacturing NN
to TO
cut VB
costs NNS
and CC
expected VBN
to TO
be VB
profitable JJ
in IN
the DT
fiscal JJ
first JJ
quarter NN
. .

Commodore NNP
said VBD
that IN
its PRP$
announcement NN
is VBZ
based VBN
on IN
preliminary JJ
information NN
and CC
that IN
the DT
situation NN
could MD
look VB
different JJ
by IN
the DT
time NN
final JJ
results NNS
are VBP
announced VBN
early JJ
next JJ
month NN
. .

In IN
fact NN
, ,
Commodore NNP
's POS
fiscal JJ
fourth-quarter JJ
loss NN
was VBD
$ $
2 CD
million CD
narrower JJR
than IN
Commodore NNP
had VBD
expected VBN
a DT
few JJ
weeks NNS
after IN
the DT
quarter NN
closed VBD
. .

Still RB
, ,
even RB
results VBZ
approaching VBG
break-even NN
would MD
mark VB
a DT
sharp JJ
weakening NN
compared VBN
with IN
fiscal JJ
1989 CD
first-quarter JJ
earnings NNS
of IN
$ $
9.6 CD
million CD
, ,
or CC
30 CD
cents NNS
a DT
share NN
, ,
on IN
sales NNS
of IN
$ $
200.2 CD
million CD
. .

Reflecting VBG
concerns NNS
about IN
Commodore NNP
's POS
outlook NN
, ,
its PRP$
stock NN
has VBZ
plunged VBN
more JJR
than IN
50 CD
% NN
since IN
May NNP
, ,
closing VBG
yesterday NN
unchanged JJ
at IN
$ $
8.875 CD
a DT
share NN
in IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
. .

The DT
price NN
can MD
be VB
expected VBN
to TO
erode VB
further RBR
, ,
because IN
the DT
loss NN
estimate NN
came VBD
after IN
the DT
market NN
closed VBD
. .

Commodore NNP
has VBZ
seemed VBN
to TO
be VB
setting VBG
the DT
stage NN
recently RB
for IN
progress NN
in IN
the DT
U.S. NNP
, ,
where WRB
its PRP$
personal-computer NN
sales NNS
have NN
been VBN
so RB
dismal JJ
for IN
years NNS
that IN
Commodore NNP
is VBZ
close RB
to TO
dropping VBG
off IN
research NN
firms NNS
' POS
market-share JJ
charts NNS
. .

Commodore NNP
has VBZ
assembled VBN
an DT
experienced VBN
management NN
team NN
, ,
it PRP
has VBZ
persuaded VBN
many RB
more JJR
dealers NNS
to TO
carry VB
its PRP$
products NNS
and CC
it PRP
has VBZ
unleashed VBN
a DT
slick JJ
advertising NN
campaign NN
. .

But CC
those DT
represent VB
long-term JJ
strategies NNS
that IN
probably RB
wo MD
n't RB
succeed VB
quickly RB
, ,
even RB
if IN
they PRP
turn VBP
out IN
to TO
be VB
the DT
right NN
ones NNS
. .
In IN
the DT
meantime NN
, ,
the DT
strategies NNS
will MD
increase VB
expenses NNS
. .

Commodore NNP
had VBD
been VBN
counting VBG
on IN
its PRP$
consumer NN
business NN
to TO
stay VB
sufficiently RB
healthy JJ
to TO
support VB
its PRP$
efforts NNS
in IN
other JJ
areas NNS
-- :
mainly RB
in IN
getting VBG
schools NNS
and CC
businesses NNS
to TO
use VB
its PRP$
Amiga NNP
, ,
which WDT
has VBZ
slick JJ
graphics NNS
yet RB
has VBZ
been VBN
slow JJ
to TO
catch VB
on IN
because IN
it PRP
is VBZ
n't RB
compatible JJ
with IN
Apple NNP
Computer NNP
Inc. NNP
or CC
International NNP
Business NNP
Machines NNP
Corp. NNP
hardware NN
. .

But CC
sales NNS
to TO
consumers NNS
have VBP
become VBN
difficult JJ
during IN
the DT
past JJ
several JJ
months NNS
, ,
even RB
in IN
West NNP
Germany NNP
, ,
which WDT
has VBZ
been VBN
by IN
far RB
Commodore NNP
's POS
strongest JJS
market NN
. .

The DT
Commodore NNP
64 CD
and CC
128 CD
, ,
mainly RB
used VBN
for IN
children NNS
's POS
educational JJ
software NN
and CC
games NNS
, ,
had VBD
surprised VBN
market NN
researchers NNS
by IN
continuing VBG
to TO
produce VB
strong JJ
sales NNS
even RB
though IN
other JJ
low-profit JJ
personal JJ
computers NNS
now RB
operate VBP
several JJ
times NNS
as IN
fast RB
and CC
have VBP
much RB
more JJR
memory NN
. .

Commodore NNP
has VBZ
said VBD
it PRP
expects VBZ
sales NNS
to TO
rebound VB
, ,
but CC
market NN
researchers NNS
have VBP
said VBD
that IN
sales NNS
of IN
the DT
low-end JJ
products NNS
may MD
finally RB
be VB
trailing VBG
off RB
. .

Stock NN
prices NNS
closed VBD
slightly RB
higher JJR
in IN
the DT
first JJ
routine JJ
trading NN
day NN
since IN
Friday NNP
's POS
big JJ
plunge NN
. .

Some DT
issues NNS
were VBD
affected VBN
by IN
Tuesday NNP
's POS
devastating JJ
earthquake NN
in IN
the DT
San NNP
Francisco NNP
area NN
. .

Activity NN
continued VBD
to TO
slow VB
from IN
the DT
hectic JJ
pace NN
set VBN
during IN
the DT
market NN
's POS
plunge NN
late JJ
Friday NNP
and CC
its PRP$
rebound NN
Monday NNP
, ,
as IN
players NNS
began VBD
to TO
set VB
their PRP$
sights NNS
on IN
events NNS
coming VBG
later RB
this DT
week NN
. .

The DT
Dow NNP
Jones NNP
Industrial NNP
Average NNP
drifted VBD
through IN
the DT
session NN
within IN
a DT
trading NN
range NN
of IN
about IN
30 CD
points NNS
before IN
closing VBG
with IN
a DT
gain NN
of IN
4.92 CD
at IN
2643.65 CD
. .

Broader JJR
averages NNS
also RB
posted VBD
modest JJ
gains NNS
. .

Standard NNP
& CC
Poor NNP
's POS
500-Stock NNP
Index NNP
rose VBD
0.60 CD
to TO
341.76 CD
, ,
the DT
Dow NNP
Jones NNP
Equity NNP
Market NNP
Index NNP
rose VBD
0.71 CD
to TO
320.54 CD
and CC
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
Composite NNP
Index NNP
gained VBD
0.43 CD
to TO
189.32 CD
. .

Some DT
822 CD
New NNP
York NNP
Stock NNP
Exchange NNP
issues NNS
advanced VBD
in IN
price NN
, ,
while IN
668 CD
declined VBD
. .

But CC
the DT
Dow NNP
Jones NNP
Transportation NNP
Average NNP
went VBD
down RB
for IN
the DT
seventh JJ
consecutive JJ
session NN
, ,
due JJ
largely RB
to TO
further VB
selling NN
in IN
UAL NNP
. .

The DT
average NN
dropped VBD
6.40 CD
to TO
1247.87 CD
and CC
has VBZ
now RB
lost VBN
21.7 CD
% NN
of IN
its PRP$
value NN
since IN
the DT
losing VBG
streak NN
began VBD
Oct. NNP
10 CD
. .

Big NNP
Board NNP
volume NN
dropped VBD
to TO
166,900,000 CD
shares NNS
, ,
in IN
line NN
with IN
the DT
level NN
of IN
trading NN
over IN
the DT
past JJ
few JJ
weeks NNS
, ,
from IN
224.1 CD
million CD
Tuesday NNP
. .

Traders NNS
cited VBD
anticipation NN
of IN
the DT
consumer NN
price NN
report NN
for IN
September NNP
, ,
due JJ
today NN
, ,
and CC
tomorrow NN
's POS
expiration NN
of IN
October NNP
stock-index NN
futures NNS
and CC
options NNS
as IN
major JJ
factors NNS
in IN
the DT
slowdown NN
. .

In IN
addition NN
, ,
activity NN
at IN
a DT
number NN
of IN
San NNP
Francisco-based JJ
brokerage NN
houses NNS
was VBD
curtailed VBN
as IN
a DT
result NN
of IN
the DT
earthquake NN
, ,
which WDT
knocked VBD
out RP
power NN
lines NNS
and CC
telephone NN
service NN
throughout IN
the DT
Bay NNP
area NN
. .

Stocks NNS
retreated VBD
to TO
session NN
lows NNS
just RB
after IN
the DT
opening NN
amid IN
worries NNS
about IN
the DT
market NN
impact NN
of IN
the DT
quake NN
, ,
but CC
quickly RB
snapped VBD
back RB
to TO
higher JJR
levels NNS
with IN
the DT
help NN
of IN
futures-related JJ
program NN
buying VBG
. .

The DT
early JJ
move NN
essentially RB
established VBD
the DT
day NN
's POS
trading NN
range NN
, ,
and CC
traders NNS
said VBD
they PRP
saw VBD
little JJ
of IN
the DT
program NN
activity NN
that WDT
has VBZ
battered VBN
the DT
market NN
recently RB
. .

`` ``
I PRP
did VBD
n't RB
expect VB
it PRP
to TO
be VB
this DT
quiet NN
. .

I PRP
expected VBD
to TO
see VB
more JJR
volatility NN
as IN
some DT
of IN
the DT
institutions NNS
who WP
were VBD
spooked VBN
last JJ
Friday NNP
did VBD
some DT
selling NN
, ,
'' ''
said VBD
Raymond NNP
F. NNP
DeVoe NNP
, ,
a DT
market NN
strategist NN
at IN
Legg NNP
Mason NNP
Wood NNP
Walker NNP
, ,
Baltimore NNP
. .

Mr. NNP
DeVoe NNP
said VBD
he PRP
expects VBZ
prices NNS
to TO
show VB
some DT
renewed VBN
instability NN
over IN
the DT
next JJ
few JJ
sessions NNS
as IN
institutions NNS
re-evaluate VBP
their PRP$
stance NN
toward IN
the DT
market NN
in IN
light NN
of IN
its PRP$
decline NN
. .

`` ``
I PRP
would MD
suspect VB
that IN
a DT
lot NN
of IN
investment NN
committees NNS
are VBP
looking VBG
into IN
whether IN
-LRB- (
they PRP
-RRB- )
want VBP
to TO
be VB
in IN
stocks NNS
at IN
all DT
, ,
'' ''
he PRP
said VBD
. .

Insurance NN
stocks NNS
were VBD
sold VBN
at IN
the DT
opening NN
amid IN
concerns NNS
about IN
the DT
level NN
of IN
damage NN
claims VBZ
the DT
companies NNS
would MD
receive VB
as IN
a DT
result NN
of IN
the DT
earthquake NN
. .

But CC
those DT
issues NNS
recovered VBD
quickly RB
and CC
turned VBD
higher JJR
because IN
of IN
expectations NNS
that IN
the DT
quake NN
and CC
the DT
recent JJ
Hurricane NNP
Hugo NNP
would MD
set VB
the DT
stage NN
for IN
an DT
increase NN
in IN
premium NN
rates NNS
. .

Issues NNS
of IN
insurance NN
brokers NNS
were VBD
especially RB
strong JJ
. .

Marsh NNP
& CC
McLennan NNP
advanced VBD
3 CD
1\/8 CD
to TO
75 CD
7\/8 CD
, ,
Alexander NNP
& CC
Alexander NNP
Services NNP
climbed VBD
2 CD
to TO
32 CD
and CC
Corroon NNP
& CC
Black NNP
firmed VBD
1 CD
7\/8 CD
to TO
37 CD
1\/2 CD
. .

Elsewhere RB
in IN
the DT
group NN
, ,
General NNP
Re NNP
rose VBD
2 CD
3\/4 CD
to TO
86 CD
1\/2 CD
, ,
American NNP
International NNP
Group NNP
gained VBD
3 CD
1\/4 CD
to TO
102 CD
5\/8 CD
, ,
Aetna NNP
Life NNP
& CC
Casualty NNP
added VBD
2 CD
3\/8 CD
to TO
59 CD
1\/2 CD
and CC
Cigna NNP
advanced VBD
7\/8 CD
to TO
62 CD
1\/2 CD
. .

Loews NNP
, ,
the DT
parent NN
of IN
CNA NNP
Financial NNP
, ,
rose VBD
1 CD
3\/8 CD
to TO
123 CD
1\/8 CD
. .

Companies NNS
in IN
the DT
construction NN
, ,
engineering NN
and CC
building-products NNS
sectors NNS
were VBD
among IN
other JJ
beneficiaries NNS
of IN
earthquake-related JJ
buying NN
. .

The DT
heavy-construction NN
sector NN
was VBD
the DT
session NN
's POS
best JJS
performer NN
among IN
Dow NNP
Jones NNP
industry NN
groups NNS
; :
Fluor NNP
rose VBD
3\/4 CD
to TO
33 CD
3\/8 CD
, ,
Morrison NNP
Knudsen NNP
gained VBD
2 CD
1\/4 CD
to TO
44 CD
1\/8 CD
, ,
Foster NNP
Wheeler NNP
added VBD
3\/8 CD
to TO
18 CD
1\/4 CD
and CC
Ameron NNP
climbed VBD
2 CD
3\/8 CD
to TO
39 CD
3\/4 CD
. .

Among IN
engineering NN
firms NNS
, ,
CRS NNP
Sirrine NNP
rose VBD
5\/8 CD
to TO
34 CD
1\/4 CD
on IN
the DT
Big NNP
Board NNP
and CC
four CD
others NNS
rallied VBD
on IN
the DT
American NNP
Stock NNP
Exchange NNP
: :
Jacobs NNP
Engineering NNP
Group NNP
, ,
which WDT
gained VBD
1 CD
1\/8 CD
to TO
25 CD
3\/8 CD
, ,
Greiner NNP
Engineering NNP
, ,
which WDT
rose VBD
3 CD
1\/2 CD
to TO
22 CD
1\/2 CD
; :
Michael NNP
Baker NNP
, ,
which WDT
added VBD
1 CD
1\/4 CD
to TO
15 CD
1\/4 CD
, ,
and CC
American NNP
Science NNP
& CC
Engineering NNP
, ,
up IN
1\/2 CD
to TO
8 CD
1\/2 CD
. .

Within IN
the DT
building-materials NNS
group VBP
, ,
Georgia-Pacific NNP
climbed VBD
1 CD
1\/4 CD
to TO
58 CD
and CC
Louisiana-Pacific NNP
added VBD
1 CD
to TO
40 CD
3\/4 CD
after IN
Merrill NNP
Lynch NNP
recommended VBD
the DT
forest-products NNS
issues NNS
. .

CalMat NNP
advanced VBD
2 CD
3\/4 CD
to TO
28 CD
3\/4 CD
, ,
Lone NNP
Star NNP
Industries NNPS
gained VBD
1 CD
3\/4 CD
to TO
29 CD
1\/4 CD
, ,
Lafarge NNP
rose VBD
1 CD
to TO
19 CD
1\/2 CD
, ,
Southdown NNP
added VBD
5\/8 CD
to TO
24 CD
5\/8 CD
and CC
Eljer NNP
Industries NNP
rose VBD
1 CD
1\/4 CD
to TO
24 CD
7\/8 CD
. .

Pacific NNP
Gas NNP
& CC
Electric NNP
fell VBD
3\/8 CD
to TO
19 CD
5\/8 CD
in IN
Big NNP
Board NNP
composite JJ
trading NN
of IN
1.7 CD
million CD
shares NNS
and CC
Pacific NNP
Telesis NNP
Group NNP
slipped VBD
5\/8 CD
to TO
44 CD
5\/8 CD
as IN
the DT
companies NNS
worked VBD
to TO
restore VB
service NN
to TO
areas NNS
affected VBN
by IN
the DT
quake NN
. .

Chevron NNP
added VBD
1 CD
to TO
65 CD
. .

The DT
company NN
, ,
based VBN
in IN
San NNP
Francisco NNP
, ,
said VBD
it PRP
had VBD
to TO
shut VB
down RP
a DT
crude-oil NN
pipeline NN
in IN
the DT
Bay NNP
area NN
to TO
check VB
for IN
leaks NNS
but CC
added VBD
that IN
its PRP$
refinery NN
in IN
nearby JJ
Richmond NNP
, ,
Calif. NNP
, ,
was VBD
undamaged JJ
. .

Other JJ
companies NNS
based VBN
in IN
the DT
area NN
include VBP
Hewlett-Packard NNP
, ,
which WDT
rose VBD
1\/4 CD
to TO
49 CD
; :
National NNP
Semiconductor NNP
, ,
which WDT
went VBD
up IN
1\/4 CD
to TO
7 CD
5\/8 CD
, ,
and CC
Genentech NNP
, ,
which WDT
eased VBD
1\/4 CD
to TO
19 CD
5\/8 CD
. .

None NN
of IN
the DT
firms NNS
reported VBD
any DT
major JJ
damage NN
to TO
facilities NNS
as IN
a DT
result NN
of IN
the DT
quake NN
. .

BankAmerica NNP
eased VBD
1\/2 CD
to TO
31 CD
7\/8 CD
and CC
Wells NNP
Fargo NNP
lost VBD
1\/2 CD
to TO
81 CD
1\/2 CD
; :
the DT
two CD
bank NN
holding VBG
companies NNS
, ,
based VBN
in IN
San NNP
Francisco NNP
, ,
were VBD
forced VBN
to TO
curtail VB
some DT
operations NNS
due JJ
to TO
the DT
temblor NN
. .

Among IN
California NNP
savings-and-loan JJ
stocks NNS
, ,
H.F. NNP
Ahmanson NNP
eased VBD
3\/8 CD
to TO
22 CD
1\/4 CD
, ,
CalFed NNP
slid VBD
3\/4 CD
to TO
24 CD
1\/8 CD
, ,
Great NNP
Western NNP
Financial NNP
dropped VBD
1\/2 CD
to TO
21 CD
1\/4 CD
and CC
Golden NNP
West NNP
Financial NNP
fell VBD
5\/8 CD
to TO
29 CD
1\/4 CD
. .

UAL NNP
, ,
the DT
parent NN
company NN
of IN
United NNP
Airlines NNPS
, ,
swung VBD
within IN
a DT
14-point JJ
range NN
during IN
the DT
course NN
of IN
the DT
session NN
before IN
closing VBG
at IN
191 CD
3\/4 CD
, ,
down RB
6 CD
1\/4 CD
, ,
on IN
2.3 CD
million CD
shares NNS
. .

British JJ
Airways NNPS
, ,
a DT
member NN
of IN
the DT
group NN
that WDT
had VBD
offered VBN
$ $
300 CD
a DT
share NN
for IN
UAL NNP
in IN
a DT
leveraged JJ
buy-out NN
, ,
said VBD
it PRP
had VBD
yet RB
to TO
receive VB
a DT
revised VBN
proposal NN
and CC
it PRP
was VBD
`` ``
in IN
no DT
way NN
committed VBN
'' ''
to TO
the DT
completion NN
of IN
a DT
bid NN
. .

Separately RB
, ,
investor NN
Marvin NNP
Davis NNP
withdrew VBD
his PRP$
backup NN
$ $
300-a-share JJ
takeover NN
offer NN
. .

While IN
UAL NNP
faltered VBD
, ,
AMR NNP
, ,
the DT
parent NN
of IN
American NNP
Airlines NNPS
, ,
pulled VBD
out IN
of IN
its PRP$
recent JJ
nosedive NN
by IN
rising VBG
3\/4 CD
to TO
74 CD
. .

The DT
stock NN
had VBD
been VBN
on IN
the DT
decline NN
since IN
the DT
financing NN
for IN
the DT
UAL NNP
buy-out NN
fell VBD
through IN
on IN
Friday NNP
and CC
developer NN
Donald NNP
Trump NNP
subsequently RB
withdrew VBD
a DT
takeover NN
offer NN
of IN
$ $
120 CD
a DT
share NN
for IN
AMR NNP
. .

Also RB
, ,
AMR NNP
was VBD
the DT
most RBS
active JJ
Big NNP
Board NNP
issue NN
; :
2.8 CD
million CD
shares NNS
changed VBD
hands NNS
. .

GTE NNP
added VBD
1 CD
1\/4 CD
to TO
65 CD
3\/8 CD
. .

PaineWebber NNP
repeated VBD
a DT
buy NN
recommendation NN
on IN
the DT
stock NN
and CC
raised VBN
its PRP$
1990 CD
earnings NNS
estimate NN
by IN
35 CD
cents NNS
a DT
share NN
, ,
to TO
$ $
5.10 CD
. .

Colgate-Palmolive NNP
advanced VBD
1 CD
5\/8 CD
to TO
63 CD
after IN
saying VBG
it PRP
was VBD
comfortable JJ
with IN
analysts NNS
' POS
projections NNS
that IN
third-quarter JJ
net JJ
income NN
from IN
continuing VBG
operations NNS
would MD
be VB
between IN
95 CD
cents NNS
and CC
$ $
1.05 CD
a DT
share NN
, ,
up IN
from IN
69 CD
cents NNS
a DT
year NN
ago RB
. .

Springs NNP
Industries NNPS
dropped VBD
1 CD
3\/8 CD
to TO
36 CD
. .

Analysts NNS
at IN
several JJ
brokerage NN
firms NNS
lowered VBD
their PRP$
1989 CD
and CC
1990 CD
earnings NNS
estimates NNS
on IN
the DT
company NN
after IN
its PRP$
third-quarter JJ
results NNS
proved VBD
disappointing JJ
. .

Trinova NNP
third-quarter JJ
loss NN
after IN
a DT
charge NN
for IN
a DT
planned VBN
restructuring NN
, ,
which WDT
will MD
include VB
the DT
closing VBG
or CC
downsizing VBG
of IN
about IN
25 CD
% NN
of IN
its PRP$
plants NNS
and CC
a DT
work NN
force NN
cut NN
of IN
about IN
1,500 CD
over IN
three CD
years NNS
. .

The DT
Amex NNP
Market NNP
Value NNP
Index NNP
snapped VBD
a DT
five-session JJ
losing NN
streak NN
by IN
rising VBG
2.91 CD
to TO
378.07 CD
. .

Volume NN
totaled VBD
12,500,000 CD
shares NNS
. .

Carnival NNP
Cruise NNP
Lines NNP
Class NNP
A DT
rose VBD
1 CD
1\/4 CD
to TO
22 CD
3\/8 CD
. .

The DT
company NN
, ,
citing VBG
market NN
conditions NNS
, ,
postponed VBD
a DT
$ $
200 CD
million CD
debt NN
offer NN
. .

Philip NNP
Morris NNP
Cos. NNP
posted VBD
a DT
20 CD
% NN
jump NN
in IN
third-quarter JJ
profit NN
on IN
a DT
45 CD
% NN
revenue NN
increase NN
, ,
reflecting VBG
strength NN
in IN
the DT
company NN
's POS
cigarette NN
, ,
food NN
and CC
brewing NN
businesses NNS
. .

Net JJ
income NN
rose VBD
to TO
$ $
748 CD
million CD
, ,
or CC
81 CD
cents NNS
a DT
share NN
, ,
from IN
the DT
year-earlier JJ
$ $
621 CD
million CD
, ,
or CC
67 CD
cents NNS
a DT
share NN
. .

Per-share JJ
figures NNS
have VBP
been VBN
adjusted VBN
for IN
a DT
4-for-1 JJ
stock NN
split NN
paid VBN
earlier RBR
this DT
month NN
. .

The DT
New NNP
York-based JJ
tobacco NN
, ,
food NN
and CC
beer NN
concern NN
said VBD
revenue NN
increased VBN
to TO
$ $
11.25 CD
billion CD
from IN
$ $
7.74 CD
billion CD
. .

In IN
composite JJ
trading NN
on IN
the DT
New NNP
York NNP
Stock NNP
Exchange NNP
, ,
Philip NNP
Morris NNP
closed VBD
at IN
$ $
43.375 CD
, ,
up IN
12.5 CD
cents NNS
. .

Philip NNP
Morris NNP
disclosed VBD
little RB
detailed VBN
information NN
about IN
performance NN
by IN
major JJ
business NN
lines NNS
except VB
to TO
say VB
that IN
most RBS
, ,
including VBG
Philip NNP
Morris NNP
U.S.A. NNP
, ,
Kraft NNP
General NNP
Foods NNPS
and CC
Miller NNP
Brewing NNP
Co. NNP
, ,
posted VBD
increased VBN
revenues NNS
. .

For IN
the DT
nine CD
months NNS
, ,
net JJ
increased VBN
4.4 CD
% NN
to TO
$ $
2.08 CD
billion CD
, ,
or CC
$ $
2.25 CD
a DT
share NN
, ,
from IN
$ $
2 CD
billion CD
, ,
which WDT
included VBD
$ $
273 CD
million CD
reflecting VBG
the DT
effect NN
of IN
an DT
accounting NN
change NN
. .

Granges NNP
Inc. NNP
, ,
citing VBG
depressed JJ
gold NN
prices NNS
, ,
said VBD
it PRP
plans VBZ
to TO
suspend VB
operations NNS
for IN
an DT
indefinite JJ
period NN
at IN
its PRP$
Tartan NNP
gold NN
mine NN
in IN
Manitoba NNP
. .

Granges NNP
said VBD
in IN
Vancouver NNP
, ,
British NNP
Columbia NNP
, ,
that IN
the DT
production NN
halt NN
will MD
be VB
phased VBN
in IN
over IN
a DT
10-week JJ
period NN
. .

Tartan NNP
currently RB
produces VBZ
gold NN
at IN
a DT
cash NN
operating VBG
cost NN
of IN
$ $
393 CD
an DT
ounce NN
, ,
which WDT
is VBZ
high JJ
by IN
industry NN
standards NNS
and CC
$ $
25 CD
or CC
so RB
above IN
the DT
current JJ
spot NN
price NN
. .

Granges NNP
said VBD
it PRP
also RB
plans VBZ
in IN
the DT
third JJ
quarter NN
to TO
write VB
down RP
the DT
carrying VBG
value NN
of IN
the DT
Tartan NNP
mine NN
by IN
2.5 CD
million CD
Canadian JJ
dollars NNS
-LRB- (
US$ $
2.12 CD
million CD
-RRB- )
, ,
and CC
to TO
write VB
off IN
most RBS
of IN
the DT
C$ $
6.3 CD
million CD
carrying VBG
value NN
of IN
its PRP$
Windflower NNP
gold NN
property NN
in IN
British NNP
Columbia NNP
. .

Granges NNP
did VBD
n't RB
say VB
what WP
impact NN
the DT
moves NNS
would MD
have VB
on IN
total JJ
gold NN
output NN
or CC
earnings NNS
, ,
and CC
company NN
officials NNS
were VBD
n't RB
available JJ
. .

Computer NNP
Associates NNP
International NNP
Inc. NNP
, ,
Garden NNP
City NNP
, ,
N.Y. NNP
, ,
and CC
Digital NNP
Equipment NNP
Corp. NNP
said VBD
they PRP
agreed VBD
to TO
jointly RB
develop VB
software NN
to TO
help VB
manage VB
Digital NNP
's POS
Vax NNP
computers NNS
. .

Computer NNP
Associates NNPS
has VBZ
carved VBN
out RP
a DT
huge JJ
business NN
selling VBG
such JJ
software NN
for IN
use NN
in IN
managing VBG
networks NNS
of IN
International NNP
Business NNP
Machines NNP
Corp. NNP
computers NNS
but CC
needs VBZ
to TO
find VB
new JJ
markets NNS
if IN
it PRP
is VBZ
to TO
maintain VB
its PRP$
growth NN
rate NN
of IN
30 CD
% NN
and CC
more JJR
each DT
year NN
. .

The DT
market NN
for IN
system-management NN
software NN
for IN
Digital NNP
's POS
hardware NN
is VBZ
fragmented JJ
enough RB
that IN
a DT
giant NN
such JJ
as IN
Computer NNP
Associates NNPS
should MD
do VB
well RB
there RB
. .

At IN
the DT
same JJ
time NN
, ,
the DT
market NN
is VBZ
smaller JJR
than IN
the DT
market NN
for IN
IBM-compatible JJ
software NN
. .

For IN
one CD
thing NN
, ,
Digital NNP
, ,
Maynard NNP
, ,
Mass. NNP
, ,
has VBZ
sold VBN
fewer JJR
machines NNS
. .

In IN
addition NN
, ,
its PRP$
machines NNS
are VBP
typically RB
easier JJR
to TO
operate VB
, ,
so RB
customers NNS
require VBP
less JJR
assistance NN
from IN
software NN
. .

Wang NNP
Laboratories NNP
Inc. NNP
, ,
Lowell NNP
, ,
Mass. NNP
, ,
beset VBN
by IN
declining VBG
demand NN
for IN
its PRP$
computers NNS
, ,
reported VBD
a DT
$ $
62.1 CD
million CD
, ,
38-cents-a-share JJ
loss NN
in IN
its PRP$
first JJ
quarter NN
ended VBN
Sept. NNP
30 CD
. .

Revenue NN
fell VBD
12.7 CD
% NN
to TO
$ $
596.8 CD
million CD
from IN
$ $
684 CD
million CD
, ,
although IN
some DT
of IN
the DT
decline NN
was VBD
caused VBN
by IN
discontinued JJ
operations NNS
. .

Wang NNP
had VBD
previously RB
forecast VBP
a DT
loss NN
. .

The DT
company NN
reiterated VBD
that IN
it PRP
expects VBZ
another DT
loss NN
in IN
the DT
second JJ
quarter NN
and CC
for IN
the DT
full JJ
year NN
, ,
although IN
it PRP
expects VBZ
a DT
profitable JJ
fourth JJ
quarter NN
. .

A DT
year NN
ago RB
, ,
Wang NNP
had VBD
earnings NNS
of IN
$ $
13.1 CD
million CD
, ,
or CC
eight CD
cents NNS
a DT
share NN
, ,
in IN
its PRP$
first JJ
quarter NN
, ,
including VBG
a DT
$ $
3.1 CD
million CD
loss NN
from IN
discontinued VBN
operations NNS
. .

The DT
latest JJS
period NN
loss NN
included VBD
a DT
$ $
12.9 CD
pretax JJ
charge NN
for IN
severance NN
payments NNS
. .

Dayton NNP
Hudson NNP
Corp. NNP
said VBD
it PRP
accepted VBD
for IN
purchase NN
seven CD
million CD
common JJ
shares NNS
at IN
$ $
62.875 CD
each DT
, ,
under IN
the DT
terms NNS
of IN
a DT
Dutch JJ
auction NN
self-tender JJ
offer NN
. .

The DT
offer NN
expired VBD
at IN
12:01 CD
a.m. NN
yesterday NN
. .

In IN
a DT
Dutch JJ
auction NN
, ,
the DT
buyer NN
sets VBZ
a DT
price NN
range NN
and CC
holders NNS
give VBP
a DT
price NN
in IN
that DT
range NN
at IN
which WDT
they PRP
're VBP
willing JJ
to TO
sell VB
their PRP$
shares NNS
. .

The DT
buyer NN
then RB
picks VBZ
a DT
price NN
and CC
buys VBZ
shares NNS
at IN
that DT
price NN
from IN
holders NNS
who WP
offered VBD
to TO
sell VB
at IN
that DT
price NN
or CC
lower JJR
. .

Dayton NNP
Hudson NNP
's POS
repurchase NN
offer NN
, ,
representing VBG
about IN
9 CD
% NN
of IN
its PRP$
common JJ
shares NNS
outstanding JJ
, ,
had VBD
established VBN
a DT
range NN
of IN
between IN
$ $
60 CD
and CC
$ $
65 CD
for IN
the DT
buy-back NN
. .

Dayton NNP
Hudson NNP
said VBD
it PRP
accepted VBD
all DT
odd-lot JJ
shares NNS
tendered VBN
at IN
or CC
below IN
the DT
final JJ
$ $
62.875 CD
price NN
; :
the DT
preliminary JJ
proration NN
factor NN
for IN
other JJ
shares NNS
tendered VBN
at IN
or CC
below IN
the DT
final JJ
price NN
is VBZ
98 CD
% NN
. .

The DT
Minneapolis-based JJ
retailer NN
said VBD
it PRP
expects VBZ
to TO
pay VB
for IN
the DT
seven CD
million CD
shares NNS
next JJ
Thursday NNP
. .

Tendered JJ
shares NNS
not RB
purchased VBN
will MD
be VB
returned VBN
to TO
holders NNS
. .

In IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
, ,
Dayton NNP
rose VBD
$ $
1 CD
to TO
$ $
61.125 CD
. .

Continental NNP
Bank NNP
Corp. NNP
's POS
third-quarter JJ
net JJ
income NN
slipped VBD
11 CD
% NN
despite IN
a DT
big JJ
gain NN
from IN
the DT
sale NN
of IN
the DT
company NN
's POS
London NNP
headquarters NN
building NN
. .

The DT
$ $
55 NN
million CD
gain NN
on IN
the DT
sale NN
was VBD
offset VBN
by IN
lower JJR
interest NN
income NN
, ,
poorer JJR
results NNS
from IN
foreign-exchange JJ
trading NN
and CC
a DT
$ $
9 CD
million CD
loss NN
on IN
the DT
sale NN
of IN
a DT
unit NN
, ,
Securities NNP
Settlement NNP
Corp NNP
. .

Chicago-based JJ
Continental NNP
earned VBD
$ $
65.2 CD
million CD
, ,
or CC
$ $
1.04 CD
a DT
share NN
, ,
compared VBN
with IN
$ $
73.6 CD
million CD
, ,
or CC
$ $
1.19 CD
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

The DT
1988 CD
quarter NN
also RB
included VBD
one-time JJ
gains NNS
totaling VBG
about RB
$ $
35 CD
million CD
. .

The DT
bank NN
, ,
which WDT
has VBZ
loss NN
reserves NNS
equal JJ
to TO
about IN
half VB
its PRP$
long-term JJ
and CC
medium-term JJ
loans NNS
to TO
less-developed JJ
nations NNS
, ,
said VBD
it PRP
does VBZ
n't RB
think VB
additional JJ
reserves NNS
are VBP
required VBN
. .

Enron NNP
Corp. NNP
said VBD
a DT
subsidiary NN
and CC
two CD
United NNP
Kingdom NNP
firms NNS
are VBP
studying VBG
the DT
feasibility NN
of IN
constructing VBG
a DT
1,500 CD
megawatt NN
gas-fired JJ
power NN
plant NN
in IN
northern JJ
England NNP
as IN
an DT
outgrowth NN
of IN
the DT
government NN
's POS
privatization NN
program NN
. .

Enron NNP
Power NNP
Corp. NNP
, ,
a DT
unit NN
of IN
the DT
Houston NNP
natural JJ
gas NN
pipeline NN
company NN
, ,
would MD
design VB
, ,
construct VB
and CC
run VB
the DT
plant NN
. .

Gas NNP
to TO
fuel VB
it PRP
would MD
be VB
piped VBN
from IN
the DT
North NNP
Sea NNP
. .

A DT
subsidiary NN
of IN
Britain NNP
's POS
Imperial NNP
Chemical NNP
Industries NNPS
would MD
buy VB
electricity NN
and CC
steam NN
from IN
the DT
proposed VBN
station NN
. .

Surplus JJ
power NN
would MD
be VB
sold VBN
on IN
the DT
open JJ
market NN
, ,
Enron NNP
said VBD
. .

Also RB
participating VBG
in IN
the DT
study NN
, ,
Enron NNP
said VBD
, ,
is VBZ
the DT
National NNP
Power NNP
division NN
of IN
Britain NNP
's POS
Central NNP
Electricity NNP
Generating NNP
Board NNP
. .

Upon IN
privatization NN
, ,
National NNP
Power NNP
will MD
be VB
responsible JJ
for IN
70 CD
% NN
of IN
the DT
country NN
's POS
power NN
generating VBG
business NN
. .

Viacom NNP
Inc. NNP
, ,
New NNP
York NNP
, ,
reported VBD
that IN
its PRP$
third-quarter JJ
loss NN
widened VBD
to TO
$ $
21.7 CD
million CD
, ,
or CC
41 CD
cents NNS
a DT
share NN
, ,
primarily RB
because IN
of IN
interest NN
expense NN
of IN
$ $
70.1 CD
million CD
. .

A DT
year NN
ago RB
, ,
Viacom NNP
had VBD
a DT
net JJ
loss NN
of IN
$ $
56.9 CD
million CD
, ,
or CC
$ $
1.07 CD
a DT
share NN
. .

Interest NN
expense NN
in IN
the DT
1988 CD
third JJ
quarter NN
was VBD
$ $
75.3 CD
million CD
. .

In IN
the DT
year-ago JJ
quarter NN
, ,
Viacom NNP
also RB
paid VBD
preferred JJ
stock NN
dividends NNS
of IN
$ $
17 CD
million CD
; :
Viacom NNP
exchanged VBD
its PRP$
preferred JJ
stock NN
for IN
debt NN
in IN
March NNP
. .

The DT
communications NNS
and CC
entertainment NN
company NN
said VBD
revenue NN
rose VBD
to TO
$ $
345.5 CD
million CD
, ,
from IN
$ $
311.6 CD
million CD
. .

Viacom NNP
attributed VBD
the DT
improvement NN
to TO
higher JJR
earnings NNS
from IN
operations NNS
in IN
its PRP$
networks NNS
segment VBP
, ,
which WDT
includes VBZ
the DT
MTV NNP
and CC
Showtime NNP
networks NNS
. .

Viacom NNP
said VBD
it PRP
also RB
restructured VBD
bank NN
debt NN
under IN
a DT
$ $
1.5 CD
billion CD
unsecured JJ
bank NN
agreement NN
that WDT
offers VBZ
significant JJ
interest NN
rate NN
savings NNS
. .

Sumner NNP
M. NNP
Redstone NNP
, ,
Viacom NNP
's POS
chairman NN
, ,
said VBD
Viacom NNP
`` ``
emerged VBD
from IN
our PRP$
leveraged JJ
buy-out NN
structure NN
and CC
gained VBD
substantial JJ
operating NN
and CC
financial JJ
flexibility NN
through IN
'' ''
the DT
bank NN
pact NN
. .

Trinova NNP
Corp. NNP
, ,
Maumee NNP
, ,
Ohio NNP
, ,
said VBD
it PRP
is VBZ
launching VBG
an DT
extensive JJ
restructuring NN
of IN
its PRP$
core NN
business NN
, ,
and CC
took VBD
a DT
charge NN
that WDT
resulted VBD
in IN
a DT
loss NN
of IN
$ $
29.7 CD
million CD
, ,
or CC
87 CD
cents NNS
a DT
share NN
, ,
for IN
the DT
third JJ
quarter NN
. .

Trinova NNP
said VBD
it PRP
will MD
close VB
, ,
move NN
or CC
overhaul NN
40 CD
of IN
its PRP$
170 CD
manufacturing NN
facilities NNS
and CC
over IN
the DT
next JJ
three CD
years NNS
cut VBP
1,500 CD
jobs NNS
from IN
its PRP$
current JJ
world-wide JJ
payroll NN
of IN
22,300 CD
employees NNS
. .

Most JJS
of IN
the DT
factory NN
closings NNS
and CC
job NN
cutbacks NNS
will MD
affect VB
Trinova NNP
's POS
Aeroquip NNP
operations NNS
, ,
which WDT
manufacture VBP
automotive JJ
plastics NNS
, ,
hoses NNS
and CC
other JJ
industrial JJ
and CC
automotive JJ
parts NNS
. .

Hoses NNS
and CC
plastics NNS
together RB
account VBP
for IN
about IN
42 CD
% NN
of IN
Trinova NNP
's POS
total JJ
annual JJ
sales NNS
. .

In IN
a DT
separate JJ
announcement NN
, ,
Trinova NNP
said VBD
the DT
Aeroquip NNP
group NN
has VBZ
agreed VBN
to TO
sell VB
its PRP$
spring-brake NN
, ,
piston-brake NN
and CC
related VBN
businesses NNS
to TO
Midland NNP
Brake NNP
Inc. NNP
of IN
Branford NNP
, ,
Conn NNP
. .

Terms NNS
were VBD
n't RB
disclosed VBN
. .

To TO
provide VB
for IN
the DT
restructuring NN
's POS
costs NNS
, ,
Trinova NNP
said VBD
it PRP
took VBD
an DT
after-tax JJ
charge NN
of IN
$ $
38.5 CD
million CD
, ,
or CC
$ $
1.13 CD
a DT
share NN
, ,
in IN
the DT
third JJ
quarter NN
. .

The DT
$ $
29.7 CD
million CD
net JJ
loss NN
compares VBZ
with IN
net JJ
income NN
of IN
$ $
19.6 CD
million CD
, ,
or CC
57 CD
cents NNS
a DT
share NN
, ,
a DT
year NN
earlier RBR
. .

Sales NNS
rose VBD
8 CD
% NN
to TO
$ $
456.2 CD
million CD
from IN
$ $
422 CD
million CD
. .

Trinova NNP
closed VBD
at IN
$ $
25 CD
, ,
down RB
$ $
1 CD
, ,
in IN
New NNP
York NNP
Stock NNP
Exchange NNP
composite JJ
trading NN
. .

A DT
group NN
of IN
investors NNS
, ,
including VBG
Giancarlo NNP
Parretti NNP
's POS
Pathe NNP
Communications NNP
Corp. NNP
and CC
Sasea NNP
Holding NNP
S.A. NNP
, ,
have VBP
agreed VBN
to TO
buy VB
76.66 CD
% NN
of IN
Odeon NNP
Finanziaria NNP
, ,
a DT
financially RB
troubled JJ
Italian JJ
TV NN
station NN
. .

Florio NNP
Fiorini NNP
, ,
managing VBG
director NN
of IN
Geneva-based JJ
Sasea NNP
, ,
said VBD
the DT
investors NNS
would MD
pay VB
only RB
a DT
symbolic JJ
one CD
lira NN
for IN
the DT
station NN
, ,
`` ``
but CC
we PRP
have VBP
agreed VBN
to TO
raise VB
the DT
capital NN
that WDT
will MD
enable VB
the DT
company NN
to TO
continue VB
operating VBG
. .

It PRP
's VBZ
sort NN
of IN
a DT
Chapter NN
11 CD
situation NN
, ,
'' ''
he PRP
added VBD
, ,
referring VBG
to TO
the DT
U.S. NNP
bankruptcy NN
law NN
that WDT
protects VBZ
companies NNS
from IN
creditors NNS
while IN
they PRP
restructure VBP
. .

Milan-based JJ
Odeon NNP
, ,
which WDT
draws VBZ
about IN
3 CD
% NN
of IN
Italian JJ
TV NN
viewers NNS
, ,
has VBZ
debt NN
of IN
250 CD
billion CD
lire NNS
-LRB- (
$ $
181.9 CD
million CD
-RRB- )
, ,
Mr. NNP
Fiorini NNP
said VBD
. .

He PRP
added VBD
that IN
details NNS
of IN
the DT
recapitalization NN
still RB
have VBP
to TO
be VB
worked VBN
out IN
, ,
but CC
that IN
Pathe NNP
will MD
take VB
50 CD
% NN
of IN
Odeon NNP
, ,
Rome NNP
film NN
producer NN
Bruno NNP
Lucisano NNP
will MD
take VB
10 CD
% NN
and CC
the DT
remaining VBG
16.66 CD
% NN
, ,
currently RB
owned VBN
by IN
Sasea NNP
, ,
will MD
eventually RB
be VB
sold VBN
to TO
other JJ
investors NNS
. .

Calisto NNP
Tanzi NNP
, ,
Odeon NNP
's POS
owner NN
, ,
will MD
retain VB
his PRP$
23.34 CD
% NN
stake NN
. .

Italy NNP
's POS
Supreme NNP
Court NNP
this DT
year NN
ordered VBD
Parliament NNP
to TO
write VB
a DT
law NN
that WDT
will MD
regulate VB
media NNS
ownership NN
. .

`` ``
We PRP
think VBP
that IN
it PRP
's VBZ
going VBG
to TO
be VB
far RB
more RBR
favorable JJ
to TO
own VB
a DT
station NN
before IN
the DT
law NN
is VBZ
passed VBN
than IN
to TO
try VB
to TO
buy VB
one CD
afterward RB
, ,
'' ''
Mr. NNP
Fiorini NNP
said VBD
. .

San NNP
Francisco NNP
area NN
officials NNS
gave VBD
the DT
media NNS
high JJ
marks NNS
for IN
helping VBG
people NNS
find VBP
shelter NN
and CC
obtain VB
emergency NN
information NN
after IN
Tuesday NNP
's POS
catastrophic JJ
earthquake NN
. .

`` ``
The DT
press NN
has VBZ
been VBN
doing VBG
an DT
excellent JJ
job NN
. .

They PRP
are VBP
telling VBG
people NNS
what WP
roads NNS
are VBP
closed VBN
and CC
just RB
keeping VBG
the DT
public RB
informed VBN
has VBZ
helped VBN
to TO
keep VB
the DT
panic NN
down RB
, ,
'' ''
said VBD
James NNP
Ball NNP
, ,
a DT
station NN
supervisor NN
at IN
Daly NNP
City NNP
Police NNP
Department NNP
. .

Mr. NNP
Ball NNP
noted VBD
that IN
television NN
stations NNS
featured VBD
people NNS
holding VBG
up IN
phone NN
books NNS
, ,
explaining VBG
where WRB
to TO
call VB
for IN
help NN
. .

Radio NN
stations NNS
provided VBD
an DT
emergency NN
number NN
for IN
people NNS
who WP
smelled VBD
gas NN
but CC
did VBD
n't RB
know VB
how WRB
to TO
turn VB
off IN
their PRP$
gas NN
supply NN
. .

Kim NNP
Schwartz NNP
, ,
a DT
spokesperson NN
for IN
the DT
American NNP
Red NNP
Cross NNP
in IN
Los NNP
Angeles NNP
, ,
said VBD
television NN
and CC
radio NN
stations NNS
in IN
San NNP
Francisco NNP
played VBD
a DT
`` ``
very RB
positive JJ
role NN
'' ''
by IN
providing VBG
the DT
address NN
of IN
28 CD
shelters NNS
of IN
the DT
Red NNP
Cross NNP
and CC
by IN
giving VBG
out RP
the IN
Red NNP
Cross NNP
number NN
for IN
contributions NNS
to TO
help VB
earthquake NN
victims NNS
-LRB- (
1-800-453-9000 CD
-RRB- )
. .

The DT
San NNP
Francisco NNP
Examiner NNP
issued VBD
a DT
special JJ
edition NN
around IN
noon NN
yesterday NN
that WDT
was VBD
filled VBN
entirely RB
with IN
earthquake NN
news NN
and CC
information NN
. .

The DT
Examiner NNP
and CC
the DT
San NNP
Francisco NNP
Chronicle NNP
were VBD
able JJ
to TO
publish VB
despite IN
Tuesday NNP
's POS
quake NN
, ,
which WDT
occurred VBD
close RB
to TO
deadline NN
for IN
many JJ
newspapers NNS
. .

Sterling NNP
Software NNP
Inc. NNP
said VBD
it PRP
lost VBD
its PRP$
bid NN
to TO
supply VB
software NN
services NNS
to TO
the DT
National NNP
Aeronautics NNP
and CC
Space NNP
Administration NNP
's POS
Ames NNP
Research NNP
Center NNP
at IN
Moffett NNP
Field NNP
, ,
Calif NNP
. .

Sterling NNP
, ,
which WDT
estimated VBD
the DT
value NN
of IN
the DT
contract NN
at IN
$ $
150 CD
million CD
, ,
said VBD
NASA NNP
selected VBD
another DT
bidder NN
for IN
final JJ
negotiations NNS
. .

In IN
1988 CD
, ,
Dallas-based JJ
Sterling NNP
protested VBD
a DT
similar JJ
decision NN
by IN
NASA NNP
involving VBG
the DT
same JJ
contract NN
, ,
claiming VBG
it PRP
had VBD
submitted VBN
the DT
lowest JJS
bid NN
. .

As IN
a DT
result NN
, ,
last JJ
March NNP
the DT
General NNP
Services NNP
Administration NNP
board NN
of IN
contract NN
appeals NNS
directed VBD
NASA NNP
to TO
reopen VB
negotiations NNS
on IN
the DT
contract NN
. .
Sterling NNP
said VBD
it PRP
had VBD
requested VBN
a DT
briefing NN
by IN
NASA NNP
but CC
had VBD
not RB
decided VBN
whether IN
to TO
protest VB
the DT
agency NN
's POS
latest JJS
decision NN
. .

Consolidated NNP
Rail NNP
Corp. NNP
, ,
New NNP
York NNP
, ,
reported VBD
that IN
third-quarter JJ
net JJ
income NN
climbed VBD
4.8 CD
% NN
to TO
$ $
87 CD
million CD
, ,
or CC
$ $
1.27 CD
a DT
share NN
, ,
exceeding VBG
analysts NNS
' POS
expectations NNS
. .

In IN
the DT
year-earlier JJ
quarter NN
, ,
the DT
freight NN
railroad NN
earned VBD
$ $
83 CD
million CD
, ,
or CC
$ $
1.21 CD
a DT
share NN
. .

James NNP
A. NNP
Hagen NNP
, ,
chairman NN
and CC
chief JJ
executive JJ
officer NN
, ,
noted VBD
that IN
earnings NNS
advanced VBD
`` ``
in IN
the DT
face NN
of IN
a DT
drop NN
in IN
business NN
, ,
brought VBN
on IN
by IN
the DT
general JJ
economic JJ
slowdown NN
. .
'' ''

Revenue NN
slipped VBD
4.6 CD
% NN
to TO
$ $
835 CD
million CD
from IN
$ $
876 CD
million CD
. .

For IN
the DT
rest NN
of IN
1989 CD
, ,
Mr. NNP
Hagen NNP
said VBD
, ,
Conrail NNP
's POS
traffic NN
and CC
revenue NN
`` ``
will MD
reflect VB
the DT
sluggish JJ
economy NN
, ,
but CC
Conrail NNP
will MD
continue VB
to TO
take VB
steps NNS
to TO
control VB
and CC
reduce VB
costs NNS
. .
'' ''

For IN
the DT
nine CD
months NNS
, ,
Conrail NNP
earnings NNS
grew VBD
0.4 CD
% NN
to TO
$ $
229 CD
million CD
, ,
or CC
$ $
3.34 CD
a DT
share NN
, ,
from IN
$ $
228 CD
million CD
, ,
or CC
$ $
3.31 CD
a DT
share NN
. .

Revenue NN
was VBD
flat JJ
at IN
$ $
2.59 CD
billion CD
. .

Georgia NNP
Gulf NNP
Corp. NNP
, ,
hurt VBN
by IN
declining VBG
sales NNS
and CC
falling VBG
chemical NN
prices NNS
, ,
said VBD
third-quarter JJ
earnings NNS
fell VBD
13 CD
% NN
to TO
$ $
46.1 CD
million CD
from IN
$ $
53.1 CD
million CD
in IN
the DT
year-earlier JJ
period NN
. .
Sales NNS
declined VBD
10 CD
% NN
to TO
$ $
251.2 CD
million CD
from IN
$ $
278.7 CD
million CD
. .

The DT
Atlanta-based JJ
chemical NN
manufacturer NN
said VBD
lower JJR
prices NNS
hurt VBD
margins NNS
for IN
most RBS
products NNS
. .

`` ``
We PRP
did VBD
see VB
some DT
relief NN
in IN
raw JJ
material NN
costs NNS
, ,
but CC
it PRP
was VBD
n't RB
sufficient JJ
to TO
offset VB
the DT
drop NN
in IN
sales NNS
prices NNS
, ,
'' ''
James NNP
R. NNP
Kuse NNP
, ,
the DT
company NN
's POS
chairman NN
and CC
chief JJ
executive JJ
officer NN
said VBD
in IN
a DT
statement NN
. .

On IN
a DT
per-share JJ
basis NN
, ,
quarterly JJ
earnings NNS
remained VBD
at IN
$ $
1.85 CD
, ,
the DT
same JJ
as IN
last JJ
year NN
, ,
because IN
of IN
the DT
company NN
's POS
share NN
buy-back NN
program NN
. .

Georgia NNP
Gulf NNP
had VBD
24.9 CD
million CD
shares NNS
outstanding JJ
on IN
average JJ
in IN
the DT
quarter NN
, ,
compared VBN
with IN
28.6 CD
million CD
in IN
the DT
third JJ
quarter NN
of IN
1988 CD
, ,
adjusted VBN
for IN
a DT
stock NN
split NN
paid VBN
in IN
January NNP
1989 CD
. .

In IN
composite JJ
New NNP
York NNP
Stock NNP
Exchange NNP
trading NN
, ,
stock NN
in IN
Georgia NNP
Gulf NNP
, ,
which WDT
has VBZ
been VBN
mentioned VBN
as IN
a DT
takeover NN
candidate NN
, ,
rose VBD
$ $
2.125 CD
a DT
share NN
to TO
close VB
at IN
$ $
46.125 CD
. .

This DT
temblor-prone JJ
city NN
dispatched VBD
inspectors NNS
, ,
firefighters NNS
and CC
other JJ
earthquake-trained JJ
personnel NNS
to TO
aid VB
San NNP
Francisco NNP
. .

But CC
a DT
secondary JJ
agenda NN
among IN
officials NNS
in IN
the DT
City NNP
of IN
Angels NNPS
was VBD
to TO
learn VB
about IN
the DT
disaster-contingency NN
plans VBZ
that DT
work NN
and CC
those DT
that WDT
do VBP
n't RB
. .

Los NNP
Angeles NNP
Mayor NNP
Tom NNP
Bradley NNP
used VBD
the DT
opportunity NN
to TO
push VB
the DT
City NNP
Council NNP
harder JJR
to TO
pass VB
a DT
measure NN
establishing VBG
a DT
loss-recovery JJ
reserve NN
of IN
$ $
100 CD
million CD
. .

The DT
amount NN
would MD
help VB
Los NNP
Angeles NNP
cope VB
in IN
the DT
first JJ
few JJ
weeks NNS
after IN
its PRP$
own JJ
anticipated VBN
quake NN
, ,
while IN
waiting VBG
for IN
federal JJ
assistance NN
to TO
arrive VB
. .

After IN
San NNP
Francisco NNP
Mayor NNP
Art NNP
Agnos NNP
spoke VBD
on IN
television NN
of IN
the DT
need NN
for IN
building NN
inspectors NNS
to TO
check VB
the DT
soundness NN
of IN
buildings NNS
, ,
Los NNP
Angeles NNP
dispatched VBD
32 CD
inspectors NNS
to TO
help VB
. .

And CC
the DT
county NN
of IN
Los NNP
Angeles NNP
placed VBD
its PRP$
firefighters NNS
and CC
sheriffs NNS
on IN
alert JJ
, ,
ready JJ
to TO
send VB
in IN
reinforcements NNS
, ,
and CC
alerted VBD
San NNP
Francisco NNP
that IN
the DT
city NN
has VBZ
1,000 CD
hospital NN
beds NNS
at IN
its PRP$
disposal NN
. .

Two CD
Los NNP
Angeles NNP
radio NN
stations NNS
initiated VBD
Red NNP
Cross NNP
donation NN
campaigns NNS
, ,
and CC
one CD
Los NNP
Angeles NNP
bank NN
manager NN
forked JJ
over IN
$ $
150,000 CD
of IN
his PRP$
own JJ
money NN
for IN
relief NN
purposes NNS
, ,
the DT
Red NNP
Cross NNP
said VBD
. .

The DT
Los NNP
Angeles NNP
Red NNP
Cross NNP
sent VBD
2,480 CD
cots NNS
, ,
500 CD
blankets NNS
, ,
and CC
300 CD
pints NNS
of IN
Type-O JJ
blood NN
. .

It PRP
is VBZ
also RB
pulling VBG
20 CD
people NNS
out IN
of IN
Puerto NNP
Rico NNP
, ,
who WP
were VBD
helping VBG
Huricane NNP
Hugo NNP
victims NNS
, ,
and CC
sending VBG
them PRP
to TO
San NNP
Francisco NNP
instead RB
. .