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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 ./. 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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 ./.