Nothing was going to hold up the long-delayed settlement of Britton vs. Thomasini .

the major earthquake struck , its epicenter not far from his courtroom in Redwood City , Calif .

involving who should pay what share of cleanup costs at the site of a former gas station ,

`` We were never going to get these insurance companies to agree again , ''

says John V. Trump , a San Francisco defense lawyer in the case .

Indeed , the insurance adjusters had already bolted out of the courtroom .

that the proceeding was taking place during a major earthquake .

For the record , Jeffrey Kaufman , an attorney for Fireman 's Fund , said

`` Reading the settlement into the record was the last thing on my mind . ''

Spencer J. Volk , president and chief operating officer of this consumer and industrial products company , was elected a director .

In an age of specialization , the federal judiciary is one of the last bastions of the generalist .

A judge must jump from murder to antitrust cases , from arson to securities fraud ,

and it has become a subject of sharp controversy on the newest federal appeals court .

The Court of Appeals for the Federal Circuit was created in 1982

to serve , among other things , as the court of last resort for most patent disputes .

Previously , patent cases moved through the court system to one of the 12 circuit appeals courts .

grappled with some of the most technical and complex disputes imaginable .

that the generalists had botched too many important , multimillion-dollar cases .

that such a specialty court would be filled with experts in the field .

Since 1984 , the president has filled four vacancies in the Federal Circuit court with non-patent lawyers .

-- Pauline Newman , Chief Judge Howard T. Markey , 68 , and Giles Rich , 85 --

The latter two and Judge Daniel M. Friedman , 73 , are approaching senior status or retirement .

so patent lawyers and research-based industries are making a new push

including the Industrial Biotechnical Association and the Pharmaceutical Manufacturers Association ,

have asked the White House and Justice Department to name candidates with both patent and scientific backgrounds .

The associations would like the court to include between three and six judges with specialized training .

Some of the associations have recommended Dr. Alan D. Lourie , 54 , a former patent agent with a doctorate in organic chemistry

who now is associate general counsel with SmithKline Beckman Corp. in Philadelphia .

Their effort has received a lukewarm response from the Justice Department .

The Justice Department 's view is shared by other lawyers and at least one member of the court , Judge H. Robert Mayer , a former civil litigator

that any good lawyer should be able to figure out and understand patent law , ''

Yet some lawyers point to Eli Lilly & Co. vs. Medtronic , Inc. , the patent infringement case the

Supreme Court this month agreed to review , as an example of poor legal reasoning by judges

In the Lilly case , the appeals court broadly construed a federal statute

to grant Medtronic , a medical device manufacturer , an exemption

the decision will have billion-dollar consequences for the manufacturers of medical devices , color and food additives and all other non-drug products

Lisa Raines , a lawyer and director of government relations for the Industrial Biotechnical Association , contends

that a judge well-versed in patent law and the concerns of research-based industries would have ruled otherwise .

And Judge Newman , a former patent lawyer , wrote in her dissent

when the court denied a motion for a rehearing of the case by the full court ,

`` The panel 's judicial legislation has affected an important high-technological industry ,

without regard to the consequences for research and innovation or the public interest . ''

that the absence of patent lawyers on the court could prove troublesome . ''

THE FINANCIAL ACCOUNTING STANDARDS BOARD 'S coming rule on disclosure

Only a few months ago , the 124-year-old securities firm seemed to be on the verge of a meltdown ,

Its relationship with parent General Electric Co. had been frayed since a big Kidder insider-trading scandal two years ago .

And that means 42-year-old Michael Carpenter , president and chief executive since January , will for the first time take complete control of Kidder

he will return Kidder to prominence as a great investment bank .

Through the first nine months of the year , Kidder ranks a distant 10th among underwriters of U.S. stocks and bonds , with a 2.8 % market share , up slightly from 2.5 % in the year-earlier period ,

when Kidder still was counted as an investment-banking powerhouse .

Gary S. Goldstein , president of the Whitney Group , an executive search firm , said :

Its 1,400-member brokerage operation reported an estimated $ 5 million loss last year ,

in that controversial business , only Morgan Stanley & Co. rivals Kidder .

as several Wall Street firms pulled back from program trading last week under pressure from big investors .

he has done a `` complete rethink '' of Kidder in recent months .

There have been a dizzying parade of studies of the firm 's operations .

More than 20 new managing directors and senior vice presidents have been hired since January .

and its mergers-and-acquisitions staff increased to a record 55 people .

was to take advantage of `` syngeries '' between Kidder and General Electric Capital Corp. , GE 's corporate-finance unit ,

The leveraged buy-out group of GE Capital now reports to Mr. Carpenter .

GE Capital staffers and Kidder investment bankers have bickered .

`` We 've really started to exploit the synergy between GE Capital and Kidder Peabody . ''

The units have worked on 37 investment banking deals this year ,

A month ago , the firm started serving dinner at about 7:30 each night ;

about 50 to 60 of the 350 people in the investment banking operation have consistently been around that late .

says Scott C. Newquist , Kidder 's head of investment banking since June .

while flying his single-engine Cessna Centurion on the way to Nantucket . ''

The firm 's new head of mergers and acquisitions under Mr. Newquist , B.J . Megargel , talks of the opportunity

all the firm has to do is `` position ourselves more in the deal flow . ''

With investment banking as Kidder 's `` lead business , '' where do Kidder 's 42-branch brokerage network and its 1,400 brokers fit in ?

Mr. Carpenter this month sold off Kidder 's eight brokerage offices in Florida and Puerto Rico to Merrill Lynch & Co. ,

Kidder will focus on rich individual investors and small companies , much closer to the clientele of Goldman , Sachs & Co. than a serve-the-world firm like Merrill Lynch or Shearson Lehman Hutton Inc .

that these types of investors also are `` sophisticated '' enough

not to complain about Kidder 's aggressive use of program trading .

As part of the upscale push , Kidder is putting brokers through a 20-week training course ,

turning them into `` investment counselors '' with knowledge of corporate finance .

Theoretically , the brokers will then be able to funnel `` leads '' on corporate finance opportunities to Kidder 's investment bankers ,

possibly easing the longstanding tension between the two camps .

that this kind of cross-pollination between brokers and investment bankers looks great on paper ,

as many are to a tough competitor like Drexel Burnham Lambert Inc .

involving executive-level staffers , some with multiple-year contract guarantees ,

in addition to his personal ventures , is credited with bringing some basic budgeting and planning discipline to traditionally free-wheeling Kidder .

He also improved the firm 's compliance procedures for trading .

the new Kidder chief is `` going to be recognized shortly as one of the real leaders in the investment-banking business . ''

a $ 2,000 contribution by a taxpayer in the 33 % bracket would save $ 330 on his taxes .

Debate on IRAs Centers on Whether Tax Break Should Be Immediate or Put Off Till Retirement ''

In what could prove a major addition to the Philippines ' foreign-investment portfolio ,

a Taiwanese company signed a $ 180 million construction contract

Taiwan 's USI Far East Corp. , a petrochemical company , initialed the agreement with an unidentified Japanese contractor

the contract was signed Wednesday in Tokyo with USI Far East officials .

The complex is to be located in Batangas , about 70 miles south of Manila .

to manufacture the petrochemicals propylene and ethylene and their resin derivatives , polypropylene and polyethylene .

The contract signing represented a major step in the long-planned petrochemical project .

At an estimated $ 360 million , the project would represent the single largest foreign investment in the Philippines

The project has been in and out of the pipeline for more than a decade .

which caused the signing to remain questionable up to the last moment .

The legislator , Enrique Garcia , had actively backed the plant , but at the original site in his constituency northwest of Manila .

removing a stiff 48 % tax on naphtha , the principal raw material

However , at a news conference Thursday , Mrs. Aquino backed the project

her government was attempting to soothe the feelings of residents at the original site , adjacent to the government 's major petroleum refinery in Bataan province .

but certainly we will do our best to encourage other investors to go to their province , ''

when the other major partner in the project , China General Plastics Corp. , backed out .

China General Plastics , another Taiwanese petrochemical manufacturer , was to have a 40 % stake in Luzon Petrochemical .

USI Far East has applied to both the Asian Development Bank and the World Bank 's International Finance Corp. for financing

THE YALE POLITICAL UNION does n't pay an honorarium to speakers .

that the union had paid a fee to former House Speaker Jim Wright .

`` In Nation 's Capital , Scandal Need n't Cut One 's Speaking Fee

-- - Jim Wright , Michael Deaver and Host of Others Find Careers After Disgrace ''

`` I consider it one of the stupidest ideas of the 20th century , ''

that would allow the president to kill individual items in a big spending bill

that could send shock waves through the president 's entire relationship with Democrats and Republicans alike in Congress ,

Although that may sound like an arcane maneuver of little interest outside Washington ,

`` It 's a real face-to-face arm wrestling challenge to Congress . ''

-- and for that reason , the president may back down from launching a test case this year .

with further fights over a capital-gains tax cut and a budget-reduction bill looming ,

Mr. Bush already has enough pending confrontations with Congress .

They prefer to put off the line-item veto until at least next year .

Still , Mr. Bush and some other aides are strongly drawn to the idea

Mr. Bush , former President Reagan and a host of conservative activists have been arguing

More provocatively , some conservative legal theorists have begun arguing

to which the concurrence of the Senate and House of Representatives may be necessary

and earlier this year publicly urged Mr. Bush `` to use the line-item veto and allow the courts to decide

a line-item veto would expand a president 's powers far beyond anything

a line-item veto would allow the chief executive to blackmail lawmakers .

that , as a lawmaker from the San Francisco area , he fights each year

to preserve federal funds for the Bay Area Rapid Transit system .

and wanted to force him to support a controversial foreign-policy initiative ,

unless the congressman `` shapes up '' on the foreign-policy issue .

that a president would choose to use a line-item veto more judiciously than that .

Big chunks of the government budget , like the entitlement programs of Social Security and Medicare , would n't be affected .

And it is n't even clear that some pork-barrel projects can be hit with a line-item veto

accompanying spending bills rather than in the official bills themselves .

that the veto would have what Mr. Glazier calls an important `` chilling effect '' on all manner of appropriations bills .

would avoid putting many spending projects into legislation in the first place for fear of the embarrassment

Whatever the outcome of a test case , President Bush would have to move cautiously

becase the very attempt would `` antagonize not just Democrats but Republicans , ''

says Louis Fisher , a scholar at the Congressional Research Service

Indeed , although a majority of Republican lawmakers favor a line-item veto ,

ranging from liberal Oregon Sen. Mark Hatfield to conservative Rep. Edwards

that it 's a mistake to put too much power in the hands of a single person .

`` Sometime , you 're going to have a Democratic president again ''

who 'll use his expanded powers against those very same conservatives .

shall be repassed by two-thirds of the Senate and House of Representatives ,

The oat-bran craze has cost the world 's largest cereal maker market share .

But the Memphis , Tenn. , facility was n't to begin turning out product until 1993 ,

so the decision may reveal a more pessimistic long-term outlook as well .

which has n't been as successful in capitalizing on the public 's health-oriented desire for oat bran as rival General Mills Inc. ,

has been losing share in the $ 6 billion ready-to-eat cereal market .

General Mills has gained an estimated 2 % share so far this year , mostly at the expense of Kellogg .

much of Kellogg 's erosion has been in such core brands as Corn Flakes , Rice Krispies and Frosted Flakes ,

that it soon will begin selling boxes for as little as 99 cents ,

`` They are not a happy group of people at Battle Creek right now . ''

Another analyst , John C. Maxwell Jr. of Wheat , First Securities in Richmond , Va. , recently went to a `` sell '' recommendation on Kellogg stock ,

which closed Friday at $ 71.75 , down 75 cents , in New York Stock Exchange composite trading .

if , over the next two years or so , General Mills ' share increased to 30 % or more .

`` Cereal volume growth in the U.S. has not met our expectations for 1989 . ''

which is to add bran-processing and rice-processing capacity next year .

General Mills , meanwhile , finds itself constrained from boosting sales further

A large plant in Covington , Ga. , is to come on line next year .

the Memphis project was `` pulled in for a reconsideration of costs , '' an indication

that the ambitious plans might be scaled back in any future construction .

it was `` possible , but highly unlikely , '' that the plant might never be built .

The new facility was to have been the world 's most advanced cereal manufacturing plant , and Kellogg 's largest construction project .

The company had retained the Fluor Daniel unit of Fluor Corp. as general contractor .

and that the company 's plans for a surge in market share may have been overly optimistic .

Until recently , Kellogg had been telling its sales force and Wall Street

Although he called current market conditions `` highly competitive , ''

Mr. LaMothe , Kellogg 's chairman and chief executive officer , forecast an earnings increase for the full year .

Last year , the company earned $ 480.4 million , or $ 3.90 a share , on sales of $ 4.3 billion .

Net fell 16 % to $ 123.1 million , or $ 1.02 a share , from $ 145.7 million , or $ 1.18 a share .

The company had a one-time charge of $ 14.8 million in the latest quarter

it will retain its Automotive Connectors and Cliff Impact divisions .

The following were among Friday 's offerings and pricings in the U.S. and non-U.S. capital markets , with terms and syndicate manager ,

$ 125 million of 6 3/8 % convertible subordinated debentures due Oct. 15 , 1999 ,

The debentures are convertible into common stock at $ 25 a share ,

representing a 24 % conversion premium over Thursday 's closing price .

Rated single-B-1 by Moody 's Investors Service Inc. and single-B-plus by Standard & Poor 's Corp. ,

was priced at a spread of 110 basis points above the Treasury 's 10-year note .

The Singapore and Kuala Lumpur stock exchanges are bracing for a turbulent separation ,

following Malaysian Finance Minister Daim Zainuddin 's long-awaited announcement

On Friday , Datuk Daim added spice to an otherwise unremarkable address on Malaysia 's proposed budget for 1990

by ordering the Kuala Lumpur Stock Exchange `` to take appropriate action immediately ''

The delisting of Malaysian-based companies from the Singapore exchange may not be a smooth process ,

the exchanges are n't fully prepared to go their separate ways .

and does n't indicate a souring in relations between the neighboring countries .

Rather , the two closely linked exchanges have been drifting apart for some years , with a nearly five-year-old moratorium on new dual listings , separate and different listing requirements , differing trading and settlement guidelines and diverging national-policy aims .

QUANTUM CHEMICAL Corp. 's plant in Morris , Ill. , is expected to resume production in early 1990 .

For the first nine months , the trade deficit was 14.933 trillion lire ,

Imports rose 11 % to 18.443 trillion lire in September from a year earlier ,

In the nine months , imports rose 20 % to 155.039 trillion lire ,

General Motors Corp. 's general counsel hopes to cut the number of outside law firms

to let the No . 1 auto maker 's 134-lawyer in-house legal department take on matters

GM trimmed about 40 firms from its approved local counsel list ,

Mr. Pearce set up GM 's first in-house litigation group in May with four lawyers , all former assistant U.S. attorneys with extensive trial experience .

Mr. Pearce has also encouraged his staff to work more closely with GM 's technical staffs

-- echoing similar directives from GM 's auto operations to suppliers .

FEDERAL PROSECUTORS are concluding fewer criminal cases with trials .

That 's a finding of a new study of the Justice Department by researchers at Syracuse University .

-- including those in Manhattan and Brooklyn , N.Y. , and New Jersey --

that its prosecutors are currently more willing to plea bargain .

The discrepancy is somewhat perplexing in that the Syracuse researchers said

prosecutors surveyed filed charges against 25 defendants for each 100,000 people

In 1987 , prosecutors filed against 35 defendants for every 100,000 adults .

The Manhattan U.S. attorney 's office stressed criminal cases from 1980 to 1987 ,

On the civil side , the Manhattan prosecutor filed an average of only 11 cases for every 100,000 adults during the same period ;

The study is to provide reporters , academic experts and others raw data

The former first lady of the Philippines , asked a federal court in Manhattan to dismiss an indictment against her ,

Mrs. Marcos and her late husband , former Philippines President Ferdinand Marcos , were charged with embezzling more than $ 100 million from that country and then fraudulently concealing much of the money through purchases of prime real estate in Manhattan .

Mrs. Marcos 's attorneys asked federal Judge John F. Keenan to give them access to all U.S. documents about her alleged abduction .

Mrs. Marcos and her husband were n't brought to the U.S. against their will

that the dismissal of a 1980 indictment against former Bank of Crete owner George Koskotas should be reconsidered .

charges Mr. Koskotas and three others with tax fraud and other violations .

when he showed up as a guest of then-Vice President George Bush at a government function .

that the seven-year delay violated the defendant 's constitutional right to a speedy trial .

whether the delay would actually hurt the chances of a fair trial .

where he is charged with embezzling more than $ 250 million from the Bank of Crete .

that would require all lawyers in New York state to provide twenty hours of free legal aid a year ,

The state bar association 's policy making body , the House of Delegate , voted Saturday to ask Chief Judge Sol Wachtler to give the bar 's voluntary program three years to prove its effectiveness

our suggested plan is more likely to improve the availability of quality legal service to the poor

without the divisiveness , distraction , administrative burdens and possible failure

Jackson & Walker , a 130-lawyer firm in Dallas and Datson & Scofield , a 70-lawyer firm in Houston said

The merger must be formally approved by the partners of both firms

that General Electric Co. may have covered up fraudulent billings to the Pentagon ,

two shareholders have filed a civil racketeering suit against the company .

The suit was filed by plaintiffs ' securities lawyer Richard D. Greenfield in U.S. District Court in Philadelphia .

that they either `` participated in or condoned the illegal acts . . .

GE is defending itself against government criminal charges of fraud and false claims in connection with a logistics-computer contract for the Army .

The government 's assertions of the cover-up were made in last minute pretrial motions .

that the company was considering bringing sanctions against Mr. Greenfield

for making `` grossly inaccurate and unsupported allegations . ''

The head of the nation 's largest car-dealers group is telling dealers to `` just say no ''

when auto makers pressure them to stockpile cars on their lots .

Ron Tonkin , president of the National Car Dealers Association , says

dealers should cut their inventories to no more than half the level

U.S. car dealers had an average of 59 days ' supply of cars in their lots at the end of September ,

where the Big Three auto makers are already being forced to close plants

Ford Motor Co. and Chrysler Corp. representatives criticized Mr. Tonkin 's plan as unworkable .

except when his 15-day car supply does n't include the bright red one

Southern Co. 's Gulf Power Co. unit may plead guilty this week to charges

that it illegally steered company money to politicians through outside vendors ,

according to individuals close to an investigation of the utility holding company .

The tentative settlement between Gulf Power , a Pensacola , Fla. , electric company , and federal prosecutors would mark the end of one part of a wide-ranging inquiry of Southern Co. in the past year .

whether officials at Southern Co. conspired to cover up their accounting for spare parts

whether Gulf Power executives violated the federal Utility Holding Company Act ,

which prohibits certain utilities from making political contributions .

under which the company would plead guilty to two felony charges

Under one count , Gulf Power would plead guilty to conspiring to violate the Utility Holding Company Act .

Under the second count , the company would plead guilty to conspiring to evade taxes .

only that discussions are continuing between Gulf Power and federal prosecutors .

While Southern Co. has been reluctant to discuss the grand jury investigations ,

the company is prepared to defend its tax and acccounting practices

Southern Co. and its units do n't condone illegal political contributions .

Neither Mr. Addison nor any other Southern Co. official has been charged with any wrongdoing in connection with the current inquiries .

The probe of Southern Co. has attracted considerable attention this year

including the death of a Gulf Power executive in a plane crash and the disappearance of a company vendor

the grand jury has asked numerous questions about Jacob F. `` Jake '' Horton , the senior vice president of Gulf Power

the political contributions had been made more than five years ago .

Exxon Corp. is resigning from the National Wildlife Federation 's corporate advisory panel ,

the conservation group has been unfairly critical of the Exxon Valdez oil spill along the Alaskan coast .

The federation , with 5.8 million members nationwide , has been one of the sharpest critics of Exxon 's handling of the 11 million gallon tanker spill

The March 24 oil spill soiled hundreds of miles of shoreline along Alaska 's southern coast

Exxon 's Exxon USA unit was one of the charter members of the Corporate Conservation Council , a panel of executives

to foster `` frank and open discussions '' between industry and the federation 's leaders .

In a letter to the federation , Raymond Campion , Exxon 's environmental coordinator , said :

have failed to demonstrate any sense of objectivity or fairness . ''

seeking full payment of environmental recovery costs from the spill .

it reached an agreement in principle with International Business Machines Corp. on a systems operations contract

calling for IBM to operate First Tennessee 's computer and telecommunications functions .

Further , under the agreement , First Tennesse would continue to develop the software

`` Because personal computers will soon be on the desks of all of our tellers , and customer service and loan representatives ,

information will be instantly available to help customers with product decisions and provide them with information about their accounts , ''

according to John Kelley , executive vice president and corporate services group manager at First Tennessee .

However , about 120 employees will be affected by the agreement .

it will attempt to place the employees within the company , IBM or other companies in Memphis .

The agreement is subject to the banking company 's board approval ,

the U.S. trade deficit may worsen next year , after two years of significant improvement .

In its report to Congress on international economic policies , the Treasury said

and `` the possibility of deterioration in the current account next year can not be excluded . ''

of what other groups , such as the International Monetary Fund , have been predicting for months .

which is required annually by a provision of the 1988 trade act ,

that there have continued to be indications of exchange-rate `manipulation ' '' during the past six months ,

citing the lack of market forces in South Korea 's exchange-rate system and the use of capital and interest-rate controls

The Treasury expressed pleasure , however , with the government of Taiwan ,

which was cited for exchange-rate manipulation in last year 's report .

Taiwan has liberalized its exchange rate system in the past year .

that is expected to cut that government 's $ 1.8 billion in bank debt by as much as 60 % .

The agreement was announced by Costa Rican President Oscar Arias Friday ,

as President Bush and other leaders from the Western Hemisphere gathered in the Central American nation for a celebration of democracy .

Costa Rica had been negotiating with the U.S. and other banks for three years ,

The government had fallen $ 300 million behind in interest payments .

Treasury Secretary Nicholas Brady called the agreement `` an important step forward in the strengthened debt strategy , ''

provide significant reduction in the level of debt and debt service

Under the plan , Costa Rica will buy back roughly 60 % of its bank debt outstanding at a deeply discounted price ,

The remainder of the debt will be exchanged for new Costa Rican bonds with a 6 1/4 % interest rate .

The International Monetary Fund and the World Bank are expected to provide approximately $ 180 million

that the Brady debt plan can benefit small debtor countries as well as big debtors , such as Mexico .

it plans to sell $ 2 billion of 51-day cash-management bills today ,

Tenders , available in minimum denominations of $ 1 million , must be received by noon EST today at Federal Reserve Banks or branches .

The Treasury also announced details of this week 's unusual bill auction ,

to accommodate the expiration of the federal debt ceiling at midnight tomorrow .

The 13-week and 27-week bills will be issued tomorrow rather than Thursday , Nov. 2 ,

it wo n't be able to honor reinvestment requests from holders of bills

it agreed in principle to sell its American Pioneer Life Insurance Co. subsidiary to Harcourt Brace Jovanovich Inc. 's HBJ Insurance Cos. for $ 27 million .

American Pioneer , parent of American Pioneer Savings Bank , said

and reduce the level of investments in subsidiaries for the thrift holding company .

Recently , the boards of both the parent company and the thrift also voted to suspend dividends on preferred shares of both companies and convert all preferred into common shares .

The transaction is subject to execution of a definitive purchase agreement and approval by various regulatory agencies ,

including the insurance departments of the states of Florida and Indiana ,

In the second quarter , American Pioneer reported a loss of $ 7.3 million ,

The banking operation had a loss of $ 8.7 million in the second quarter ,

Factory owners are buying new machinery at a good rate this fall ,

but sluggish sales of new cars and trucks raise questions about fourth-quarter demand from the important automotive industry .

September orders for machine tools rebounded from the summer doldrums ,

Domestic machine tool plants received $ 303 million of orders last month , up 33 % from August 's $ 227.1 million , but still below the $ 328.2 million of September 1988 ,

says Christopher C. Cole , group vice president at Cincinnati Milacron Inc. , the nation 's largest machine tool producer .

`` The outlook is positive for the intermediate to long term . ''

September orders for all U.S. producers , in fact , were slightly above the monthly average for 1988 , a good year for the industry .

`` September was one of the biggest order months in our history , ''

says James R. Roberts , vice president , world-wide sales and marketing , for Giddings & Lewis Inc. , Fond du Lac , Wis .

But sales of North American-made 1990-model cars are running at an annual rate of only six million , down from 7.1 million a year earlier .

that recent developments in Eastern Europe will expand markets for U.S.-made machine tools in that region .

There is demand for state-of-the-art machine tools in the Soviet Union and in other Eastern European countries

as those nations strive to improve the efficiency of their ailing factories as well as the quality of their goods .

However , there 's a continuing dispute between machine tool makers and the Defense Department over whether sophisticated U.S. machine tools would increase the Soviet Union 's military might .

West German and other foreign producers are likely to grab most of the sales in Eastern Europe .

September orders for machining centers , lathes , milling machines , grinders , boring mills and other machines

totaled $ 192.9 million , down 28 % from $ 266.5 million a year earlier , but a 23 % increase from August 's $ 156.3 million ,

surged to $ 110.1 million , a 78 % rise from $ 61.7 million a year earlier and a 55 % gain from $ 70.9 million in August .

Machine tool shipments last month were $ 281.2 million , a 24 % rise from a year earlier and a 25 % increase from August .

as machine tool builders produce against relatively good backlogs .

U.S. producers had a $ 2.15 billion backlog of unfilled orders at the end of September .

even though orders for the first nine months of 1989 were down 19 % from the comparable 1988 period .

says S.A. Dave , chairman of the Securities and Exchange Board of India .

But the mega-issues are raising megaquestions about the rapidly evolving Indian capital market .

Moreover , in the relatively unregulated Indian stock markets , investors frequently do n't know

A prospectus in India does n't always tell a potential investor much .

that the mega-issues , in such an unregulated environment , could lead to a mega-crash .

`` The rate of failures will be much more than the rate of successes in the mega-projects , ''

says G.S . Patel , a former chairman of the giant , government-run mutual fund , the Unit Trust of India .

The Indian stock markets have been on a five-year high , with dips and corrections ,

since Prime Minister Rajiv Gandhi started liberalizing industry .

This year 's biggest issue , $ 570 million of convertible debentures by engineering company Larsen & Toubro Ltd. , is the largest in Indian history .

though many companies are also selling nonconvertible bonds or equity shares .

These mega-issues are being propelled by two factors , economic and political .

In the past , the socialist policies of the government strictly limited the size of new steel mills , petrochemical plants , car factories and other industrial concerns

As a result , industry operated out of small , expensive , highly inefficient industrial units .

industry should build plants on the same scale as those outside India

The industrial revolution has produced an explosion in the capital market ,

which is a far cheaper source of funds than government-controlled banks ,

Some companies are raising money in anticipation of a government less predictable than Mr. Gandhi 's , and possibly more restrictive .

Earlier this year , Tata Iron & Steel Co. 's offer of $ 355 million of convertible debentures was oversubscribed .

Essar Gujarat Ltd. , a marine construction company , had similar success with a slightly smaller issue .

Larsen & Toubro started accepting applications for its giant issue earlier this month ;

Still to come are big issues by Bindal Agro Chem Ltd. , a petrochemical and agrochemical company , and Usha Rectifier Corp .

The `` markets are headed for growth unheard of and unseen before . ''

and never has this been clearer on the Indian capital market than now .

In the past , the government controlled the markets indirectly , through its tight grip on industry itself .

The government has been content with this far-reaching , subtle form of control ,

exercised on a case-by-case basis with no clear rules or guidelines .

the government 's dawdling on regulation and disclosure requirements has a more dangerous aspect .

The Securities and Exchange Board of India was set up earlier this year , along the lines of the U.S. Securities and Exchange Commission ,

An example is the biggest offering of them all , Larsen & Toubro 's $ 570 million bond issue .

The engineering company was acquired in a takeover earlier this year by the giant Reliance textile group .

Although Larsen & Toubro had n't raised money from the public in 38 years ,

( Reliance floated a $ 357 million petrochemical company in 1988

that was , at the time , the largest public issue in Indian history . )

that it exceeds the company 's annual sales and its market capitalization .

Even stranger is the case of Usha Rectifier , a semiconductor company with 1988 sales of $ 28 million

Unlike other companies , it has n't pin-pointed specific projects for the funds .

`` There is no proper monitoring and screening of the use of these funds .

which could hurt market confidence far more than the small bankruptcies

its longstanding regulation of industry will prevent such crashes .

Lion Nathan Ltd. , a New Zealand brewing and retail concern , said Friday

that Bond Corp. Holdings Ltd. is `` committed '' to a transaction

whereby Lion Nathan would acquire 50 % of Bond 's Australian brewing assets .

it is applying to Australia 's National Companies & Securities Commission , the nation 's corporate watchdog agency , for a modification to takeover regulations `` similar to that

SA Brewing , an Australian brewer , last Thursday was given approval

to acquire an option for up to 20 % of Bell Resources Ltd. , a unit of Bond Corp .

Bell Resources is acquiring Bond 's brewing businesses for 2.5 billion Australian dollars

S.A. brewing would make a takeover offer for all of Bell Resources

Bond Corp. , a brewing , property , media and resources company , is selling many of its assets

`` Lion Nathan has a concluded contract with Bond and Bell Resources , ''

Finnair , Finland 's state-owned airline , joined the wave of global airline alliances

and signed a wide-ranging cooperation agreement with archrival Scandinavian Airlines System .

Under the accord , Finnair agreed to coordinate flights , marketing and other functions with SAS , the 50 % -state-owned airline of Denmark , Norway and Sweden .

The pact also calls for coordination between Finnair and Switzerland 's national carrier , Swissair ,

the late anti-war activist , protest leader and founder of the Yippies ever had with his brother .

pieced together from interviews by CBS News for a re-enactment , a dramatic rendering by an actor of Mr. Hoffman 's ultimately unsuccessful struggle with depression .

The segment is soon to be broadcast on the CBS News series `` Saturday Night With Connie Chung , ''

thus further blurring the distinction between fiction and reality in TV news .

Ms. Chung 's , however , is said to be the only network news program in history

Abbie Hoffman in this case is to be played by Hollywood actor Paul Lieber ,

the network now needs to `` broaden the horizons of nonfiction television ,

has used an actor to portray the Rev . Vernon Johns , a civil-rights leader , and one to play a teenage drug dealer .

It has depicted the bombing of Pan Am flight 103 over the Scottish town of Lockerbie .

On Oct. 21 , it did a rendition of the kidnapping and imprisonment of Associated Press correspondent Terry Anderson ,

playing Mr. Anderson and former hostages David Jacobsen , the Rev . Benjamin Weir and Father Lawrence Jenco .

ABC News has similarly branched out into entertainment gimmickry .

waved at the camera like the crowd on `` Let 's Make a Deal . ''

starring Maria Shriver , Chuck Scarborough and Mary Alice Williams ,

NBC 's re-creations are produced by Cosgrove-Meurer Productions ,

which also makes the successful prime-time NBC Entertainment series `` Unsolved Mysteries . ''

The marriage of news and theater , if not exactly inevitable , has been consummated nonetheless .

-- somewhere between $ 400,000 and $ 500,000 for a one-hour program .

Re-enactments have been used successfully for several seasons on such syndicated `` tabloid TV '' shows as `` A Current Affair , ''

which is produced by the Fox Broadcasting Co. unit of Rupert Murdoch 's News Corp .

Gerald Stone , the executive producer of `` A Current Affair , '' says ,

`` We have opened eyes to being a little less conservative and more imaginative in how to present the news . ''

At 555 W. 57th St. in Manhattan , one floor below the offices of `` 60 Minutes , '' the most successful prime-time news program ever , actors wait in the reception area

Ned Beatty may portray former California Gov . Pat Brown in a forthcoming epsiode on Caryl Chessman , the last man

`` Saturday Night '' has cast actors to appear in future stories

ranging from the abortion rights of teen-agers to a Nov. 4 segment on a man

which as recently as two years ago fired hundreds of its employees in budget cutbacks ,

and who recently did a guest shot of her own on the sitcom `` Murphy Brown '' ) .

But the money is n't peanuts either , particularly for a news program .

CBS News is also re-enacting the 1979 Three Mile Island nuclear accident in Middletown , Pa. , with something less than a cast of thousands .

On Oct. 20 , the town 's mayor , Robert Reid , made an announcement on behalf of CBS during half-time at the Middletown High School football game

says Joe Sukle , the editor of the weekly Press and Journal in Middletown .

Some producers seem tentative about the technique , squeamish even .

So the results , while not news , are n't exactly theater either , at least not good theater .

In his review of `` Saturday Night With Connie Chung , '' Tom Shales , the TV critic of the Washington Post and generally an admirer of CBS , wrote

Re-creating events has , in general , upset news traditionalists ,

including former CBS News President Richard S. Salant and former NBC News President Reuven Frank , former CBS News anchorman Walter Cronkite and the new dean of the Columbia University Graduate School of Journalism , Joan Konner .

Criticism of the Abbie Hoffman segment is particularly scathing among people

That includes his companion of 15 years , Johanna Lawrenson , as well as his former wife , Anita .

that CBS News is apparently concentrating on Mr. Hoffman 's problems as a manic-depressive .

CBS News interviewed Jack Hoffman and his sister , Phyllis , as well as Mr. Hoffman 's landlord in Solebury Township , Pa .

The executive producer of `` Saturday Night With Connie Chung , '' Andrew Lack , declines to discuss re-creactions as a practice or his show , in particular .

The president of CBS News , David W. Burke , did n't return numerous telephone calls .

it would not be in the best interest of CBS News to comment on a `` work in progress , '' such as the Hoffman re-creation ,

CBS News is `` aware '' of the concerns of Ms. Lawrenson and Mr. Hoffman 's former wife .

Neither woman was invited by CBS News to participate in a round-table discussion about Mr. Hoffman

that the script would `` misrepresent an astute political mind , one

Dentsu Inc. , the world 's largest advertising agency on the strength of its dominance in the Japanese market , is setting its sights on overseas expansion .

Last year , Dentsu started HDM , a joint network with U.S. ad agency Young & Rubicam and Eurocom of France .

A few months ago , Dentsu acquired 69 % of Australian agency Fortune Communication Holdings Ltd. for 5.9 million Australian dollars

is considering the acquisition of an advertising network in the U.S. or Europe .

What is driving Dentsu 's international expansion largely is the need

Last year , Dentsu 's foreign business accounted for less than 10 % of total billings ,

Dentsu has been approached by banks and securities companies a number of times to invest in the troubled British marketing group Saatchi & Saatchi PLC .

It is setting up a special team in charge of international markets

Dentsu 's billings last year were larger than those of Young & Rubicam , the world 's second-largest ad agency ,

But success overseas in unfamiliar markets could be trickier than for other industries such as manufacturers .

On its own , Dentsu 's muscle in Japan may count for little in major foreign markets

Japanese agencies do business with rival clients in the same industry , a practice

`` that would be unacceptable by traditional Western conflict rules , ''

says Roy Warman , the London chief executive of Saatchi & Saatchi 's communications division .

Although acquiring a foreign company would expand Japanese advertising agencies ' business to foreign clients ,

But the different business system would make it hard for Dentsu to provide these Japanese companies the same kind of services

that it agreed in a letter of intent with Corning Inc. to acquire Corning 's 50 % share of Ciba Corning Diagnostics Corp. ,

which had been a 50-50 venture between Basel-based Ciba-Geigy and Corning ,

Ciba Corning makes clinical diagnostics systems and related products for the medical-care industry .

Ciba-Geigy intends to develop the Ciba Corning unit into a `` substantial business ,

`` making the unit an `` integral part '' of Ciba-Geigy 's `` comprehensive disease management concept . ''

The NBC network canceled its first new series of the fall TV season ,

The show , one of five new NBC series , is the second casualty of the three networks so far this fall .

and in five outings had drawn an average of only 13.2 % of homes ,

lagging behind the Jamie Lee Curtis comedy `` Anything But Love '' on ABC and CBS 's one-hour drama `` Jake and the Fatman . ''

NBC , a unit of General Electric Co. , has n't decided on a permanent replacement for the canceled series .

The preferred shares will carry a floating annual dividend equal to 72 % of the 30-day bankers ' acceptance rate until Dec. 31 , 1994 .

to strengthen Labatt 's balance sheet in anticipation of acquisitions

Lead underwriter to the issue is Toronto Dominion Securities Inc .

Texas Instruments Inc. , once a pioneer in portable computer technology , today will make a bid

introduced the first U.S. notebook computer with such features .

Texas Instruments ' new notebook wo n't be a direct competitor .

While Compaq sells its machines to businesses through computer retailers ,

Texas Instruments will be selling most of its machines to the industrial market and to value-added resellers and original-equipment manufacturers .

The introductions also mark Texas Instruments ' plunge back into a technology

Although the Dallas-based computer giant introduced the first portable data terminal in 1971

have been `` dumb '' terminals with limited on-board processing ability .

as Texas Instruments begins marketing two 14-pound laptop PCs with 20 megabyte and 40 megabyte hard drives .

first opened by GRiD Systems Corp. , now a unit of Tandy Corp. , almost two years ago .

But the notebook , with the more advanced microprocessor and hard disk , is more innovative .

Its greatest drawback may be its 3-inch thickness , big enough for one consultant

List prices on the heavier Texas Instrument laptops will be $ 4,999 for the TI Model 25 , with a 20 megabyte disk drive , and $ 5,599 for the 40-megabyte Model 45 .

since the Taiwan Securities and Exchange Commission announced June 21

that it would allow foreign brokerage firms to do business in that country .

Taiwan officials are expected to review the Shearson application later this year .

Under current rules , investors in Taiwan can buy overseas stocks only through the purchase of mutual funds

The new rules will allow investors to buy foreign stocks directly .

`` It 's an attractive market with good growth opportunities , ''

Retailers in the West and parts of the South are entering the critical Christmas shopping season with more momentum than those in other regions .

In a new report , the International Council of Shopping Centers said

sales of general merchandise in the West for the first seven months of 1989 rose 6.6 % above year-earlier levels .

Sales increased a more modest 4.8 % in the South and 4.4 % in the Midwest .

In the Northeast , however , sales declined 0.4 % in the period ,

The Northern California earthquake and Hurricane Hugo are likely to temporarily damp sales growth in the West and South Carolina .

`` The big mo is as much of a factor in retailing as in politics , ''

because it represents roughly a third of their sales and nearly half of their profits .

The information on 125 metropolitan markets is supplied by retailers such as Sears , Roebuck & Co. and K mart Corp. as well as closely held concerns such as R.H. Macy & Co .

strength in employment appears to have the biggest impact on sales growth .

El Paso , Austin and Fort Worth , the three strongest retail markets in the nation , are all located in Texas ,

which has lost jobs in the computer and defense-related industries ,

The results reflect a reversal in the fortunes of the regions during the past two years .

and the South and the Midwest were first and second respectively ,

and relocate its ammonium perchlorate storage facility to Clark County , Nev. , from Henderson , Nev .

it will move the storage and cross-blending operations to a site 23 miles northeast of Las Vegas

After the explosion , Kerr-McGee temporarily shut down its facility just south of Las Vegas for a safety inspection .

American Pacific and Kerr-McGee are the only two U.S. manufacturers of ammonium perchlorate .

That prompted Kerr-McGee to consider moving the potentially volatile storage facilities and cross-blending operations away from town .

it has purchased 3,350 acres from the federal government in Clark County

The new facility is expected to begin operations in early 1991 .

The Henderson plant will continue its other chemical operations ,

whose High Technology Holding Co. of Stamford , Conn. acquired most of its 49.4 % stake in Newport in August .

Elected as directors were Mr. Hollander , Frederick Ezekiel , Frederick Ross , Arthur B. Crozier and Rose Pothier .

Removed from office were George Pratt , Robert E. Davis , Norman Gray , John Virtue , corporate secretary , and Barrett B. Weekes , chairman , president and chief executive officer .

The Tokyo-based company had net of 3.73 billion yen in the previous reporting period ,

it expects net to rise to 11 billion yen from 8.22 billion yen .

Merger and acquisition activity in the third quarter exceeded the year-earlier pace ,

said Merrill Lynch & Co. 's W.T . Grimm & Co. unit in Schaumburg , Ill .

A total of 672 transactions were announced during the latest quarter , up 13 % from the year-earlier period 's 597 ,

totaled $ 71.9 billion , up 36 % from $ 52.9 billion a year earlier ,

valued at $ 1 billion or more in the latest period , twice as many as a year earlier .

In the first nine months , 1,977 transactions were announced , up 15 % from 1,716 in the year-earlier period .

totaled $ 188.1 billion , up 15 % from $ 163.2 billion a year earlier .

Citing current stock market conditions and the trend away from highly leveraged transactions ,

it was n't certain that the total value of transactions for the year will exceed the record $ 247 billion in 1988 .

MEDICINE SHOPPE INTERNATIONAL Inc. declared a 3-for-2 stock split ,

the added shares will be distributed Dec. 4 to stock of record Nov. 13 .

under which holders had received an annual 10 cents-a-share payment ,

that it can not pay the Oct. 31 dividend on its Series A convertible preferred stock ,

allowing the stock 's holder to convert the shares into as much as 27.7 % of NBI 's shares outstanding .

All the preferred stock is held by the Yukon Office Supply Stock Ownership Plan .

allows Yukon to convert all or some of its shares into NBI common after Nov. 30 , at a conversion price

it has hired Prudential-Bache Securities Inc. as its financial adviser and investment banker

but the recent spate of catastrophes should jolt property insurance rates in coming months .

The property claims service division of the American Insurance Services Group estimated insured losses from the earthquake at $ 960 million .

This estimate does n't include claims under workers ' compensation , life , health disability and liability insurance and damage to infrastructure such as bridges , highways and public buildings .

which ripped through the Caribbean and the Carolinas last month .

That 's because only about 30 % of California homes and businesses had earthquake insurance

that the combination of the Bay area earthquake , Hugo and last week 's explosion at the Phillips Petroleum Co. 's refinery in Pasadena , Texas , will cause property insurance and reinsurance rates to jump .

says Alice Cornish , an industry analyst with Northington Research in Avon , Conn .

the impact of losses from these catastrophes is n't likely to halt the growth of the industry 's surplus capital next year .

`` The reinsurance market has been bloodied by disasters '' in the U.S. as well as in Great Britain and Europe ,

says Thomas Rosencrants , director of research at Interstate/Johnson Lane Inc. in Atlanta .

Insurers , such as Cigna Corp. , Transamerica Corp , and Aetna Life & Casualty Co. , buy reinsurance from other U.S.-based companies and Lloyd 's of London for one catastrophe at a time .

in case there were any other major disasters before the end of the year .

and Lloyd 's syndicates turned to the London market excess lines for protection of their own .

James Snedeker , senior vice president of Gill & Roeser Inc. , a New York-based reinsurance broker , says

However , companies with few catastrophe losses this year and already big buyers of reinsurance are likely to see their rates remain flat , or perhaps even decline slightly .

Many companies will be negotiating their 1990 reinsurance contracts in the next few weeks .

But some large insurers , such as State Farm Mutual Automobile Insurance Co. , do n't purchase reinsurance ,

A few years ago , State Farm , the nation 's largest home insurer , stopped buying reinsurance

and an additional $ 300 million from the earthquake are less than 5 % of State Farm 's $ 16.7 billion total net worth .

it 's impossible to get a clear picture of the quake 's impact on fourth-quarter earnings ,

Transamerica expects an after-tax charge of less than $ 3 million against fourth-quarter net ;

Hartford Insurance Group , a unit of ITT Corp. , expects a $ 15 million or 10 cents after-tax charge ;

and Fireman 's Fund Corp. expects a charge of no more than $ 50 million before taxes

The consumer electronics , home appliances and information-processing concern said

Sales of information-processing products and electric parts increased a strong 22 % to 236.23 billion yen from 194.24 billion yen

In audio equipment , sales rose 13 % to 44.3 billion yen from 39.19 billion yen .

Sun Microsystems Inc. , a computer maker , announced the effectiveness of its registration statement for $ 125 million of 6 3/8 % convertible subordinated debentures due Oct. 15 , 1999 .

the debentures are being issued at an issue price of $ 849 for each $ 1,000 principal amount

and are convertible at any time prior to maturity at a conversion price of $ 25 a share .

Nelson Holdings International Ltd. shareholders approved a 1-for-10 consolidation of the company 's common stock at a special meeting .

At the same time , shareholders approved the adoption of a rights plan and a super-majority voting approval requirement .

They also approved the relocation of the company 's registered office to Toronto from Vancouver and a name change to NHI Nelson Holdings International Ltd .

which has film and television operations in Beverly Hills , Calif. ,

The number of authorized common shares will remain at 100 million .

Under the rights plan , holders will have one right for each common share held ,

with each right entitling the purchase of one common share for 100 Canadian dollars .

if a person or group acquires 20 % or more of the common shares outstanding

Under the super-majority amendment , certain mergers and other transactions would require approval of holders of 80 % of the company 's common shares outstanding .

a federal grand jury in Boston indicted the operator of cosmetology and business schools for mail fraud .

involve enrollment procedures of six students and the preparation of certain reports ,

Eight admissions representatives at two of Wilfred 's former Massachusetts schools previously pleaded guilty to charges

In New York Stock Exchange composite trading Friday , Wilfred fell 6.25 cents to 93.75 cents a share .

it filed suit in U.S. District Court in Delaware against a group

In the Securities and Exchange Commission filings , the group has said

his group will continue to push for control of the company and the removal of certain directors .

who are n't associated with either the Patterson or Sugarman groups ,

he has agreed to sell his 15.2 % stake in Deb Shops Corp. to Petrie Stores .

In a Securities and Exchange Commission filing , Mr. Petrie said

that on Oct. 26 Petrie Stores agreed to purchase Mr. Petrie 's 2,331,100 Deb Shops shares .

Petrie Stores of Secaucus , N.J. , is purchasing Mr. Petrie 's Deb Shops stake as an investment .

Although Petrie Stores has considered seeking to acquire the remaining equity of Deb Stores ,

it saw little significance in Mr. Petrie selling his stock to Petrie Stores .

that Mr. Petrie or his company have been accumulating Deb Shops stock for several years ,

no discussions currently are taking place between the two companies .

unconsolidated pretax profit increased 70 % to 12.12 billion yen

net income more than doubled to 5.85 billion yen , or 16.08 a share , from 2.63 billion yen , or 7.24 yen a share .

despite the adverse effect of Japan 's unpopular consumption tax ,

Increasing personal spending and capital investment are fueling growth ,

Total sales gained 20 % to 122.36 billion yen from 102.01 billion yen .

Exports made up 46.2 % of the latest year 's total , up from 39.8 % a year ago .

to acquire Gulf Canada Resources Ltd. 's U.S. unit for $ 163 million .

it will acquire the properties and operations of Home Petroleum Corp. ,

which includes two regional gas-gathering systems and proved reserves of about nine million barrels of oil and 72 billion cubic feet of natural gas .

the properties are generally situated in Wyoming , North Dakota , Texas , Oklahoma and Louisiana .

and focus operations on Canada , Indonesia and other international areas .

and produce about 5,000 barrels of oil and 35 million cubic feet of gas a day .

Gulf Canada will likely report an extraordinary gain from the sale in the fourth quarter ,

NEC Corp. , a Tokyo-based computer and electronics concern , said

Sales rose 7.4 % to 1.255 trillion yen from 1.168 trillion yen .

first-half computer sales totaled 555.5 billion yen , up 11 % from 500.26 billion yen a year earlier .

Sales of electrical devices rose 13 % to 283.8 billion yen from 251.8 billion yen .

sales of home electronic products advanced 3.7 % to 44.92 billion yen from 43.34 billion yen .

of 2.74 trillion yen , an increase of 27 % from the previous fiscal year .

Montedison S.p . A. definitively agreed to buy all of the publicly held shares of Erbamont N.V. for $ 37 each .

Montedison now owns about 72 % of Erbamont 's shares outstanding .

the accord was unanimously approved by a special committee of Erbamont directors unaffiliated with Montedison .

Under the pact , Montedision will make a $ 37-a-share tender offer for Erbamont stock outstanding .

The tender offer will be followed by the sale of all of Erbamont 's assets , subject to all of its liabilities , to Montedison .

with any remaining Erbamont holders receiving a distribution of $ 37 a share .

A unit of DPC Acquisition Partners launched a $ 10-a-share tender offer for the shares outstanding of Dataproducts Corp. ,

it would seek to liquidate the computer-printer maker `` as soon as possible , ''

DPC Acquisition is controlled by Crescott Investment Associates , Wilson Investment Group , Kernel Corp. and Catalyst Partners .

The investor group owns 1,534,600 Dataproducts common shares , or a 7.6 % stake .

it had received the reasonable assurance of Chase Manhattan Bank N.A .

In a filing with the Securities and Exchange Commission , DPC Acquisition said

that seeks to nullify a standstill agreement between DPC Acquisition and Dataproducts .

Earlier this year , DPC Acquisition made a $ 15-a-share offer for Dataproducts ,

Jayark Corp. agreed to pay $ 4 million in cash , $ 2 million of 12 % convertible debentures , and 1.6 million common shares

In over-the-counter trading Friday , Jayark was quoted at 87.5 cents bid , down 15.625 cents .

At the market price , the transaction has a total indicated value of $ 7.4 million .

David L. Koffman , president and chief executive officer of Jayark , holds about 40 % of Kofcoh ,

Jayark , New York , distributes and rents audio-visual equipment

The transaction is subject to approval by a panel of disinterested directors ,

Sales were higher in all of the company 's business categories ,

with the biggest growth coming in sales of foodstuffs such as margarine , coffee and frozen food ,

The New York Mercantile Exchange , the world 's chief oil futures marketplace , is at a critical juncture .

the fortunes of the Merc over the next decade will be determined to a large extent by how well its new natural gas futures contract does and how successful its new president is in raising the level of compliance by floor traders with exchange and Commodity Futures Trading Commission rules .

it might once again fall behind its chief New York competitor , the Commodity Exchange .

that it had approved Sabine Pipe Line Co. 's Henry Hub in Erath , La. , as the delivery site for its long-awaited natural gas futures contract .

The Merc first started working on developing this contract in 1984 .

Only three weeks earlier , the Merc had turned to one of its own executives , 40-year-old R. Patrick Thompson ,

Mr. Thompson is believed to have a mandate from the board of directors

Ms. McFadden had been forced out in July in a bitter power struggle with Z. Lou Guttman , chairman and a longtime floor trader on the exchange .

Mr. Guttman told one person familiar with the New York exchanges during the search for a replacement

who would be `` responsive to the needs of the membership and the board . ''

He previously held posts of senior vice president of compliance and senior vice president and general counsel .

By contrast , the Comex in July imported a highly regarded outsider , Arnold F. Staloff , as its president .

Mr. Staloff , 44 , was a senior officer of the Philadelphia Stock Exchange

Mr. Thompson is n't bereft of experience with new products , however .

he and the exchange 's research department have been working on the new natural gas contract ,

of teaching companies in the natural gas industry how to use the futures

The Merc 's extremely successful contracts in crude oil , gasoline and heating oil have made it the largest futures exchange in New York , and third behind the Chicago Board of Trade and Chicago Mercantile Exchange .

Earlier this year , the U.S. attorney indicted 45 floor traders and one clerk at the two big Chicago exchanges .

Federal authorities in New York started investigating exchanges in May ,

Mr. Thompson will have to face some of the consequences of those subpoenas .

In a recent General Accounting Office study , the Merc was found to have been the most lax in enforcing exchange rules .

It levied the smallest number of suspensions of traders and fines of the four largest commodity exchanges

It also had both the fewest , and least experienced , investigators per million contracts traded .

when it was discovered that its compliance director , Kevin P. Conway ,

who then was responsible for policing the exchange 's busy oil and metal pits ,

`` was engaged in other personal business activities on Exchange time , ''

`` We had a management breakdown in 1987 in terms of compliance , ''

even if the natural gas contract boosts volume at the exchange strongly ,

the 1990 business plan calls for having adequate compliance people

For years the five New York exchanges have been talking about cooperating in various aspects of their business

Periodically , there has even been talk of mergers between one or more exchanges .

One of those areas is the development of a hand-held electronic device

so that an independent , verifiable audit trail can be established

In January , the New York Merc signed a letter of intent with the Chicago Merc as a preliminary step

it was looking into creating a common system with the Chicago Board of Trade ,

his exchange is n't waiting for the results of the Chicago exchanges ' cooperation .

Michael Frawley , metals trader for PaineWebber Inc. in New York , said

there is good technical support between $ 1.10 and $ 1.12 a pound for December copper ,

and he expects it to remain in a trading range between $ 1.10 and $ 1.25 .

that the equity markets will set the tone for the industrial metals this week

William O'Neill , research director for Elders Futures Inc. in New York , said

that talk of strike settlements at producing mines has been fully discounted .

the purchasing managers report on Wednesday and the unemployment report on Friday .

Friday 's strong price gains confirmed a turnaround in the precious metals markets ,

the moves in the metals last week were most influenced by the uncertainty in the equity and other financial markets .

there is good support for December gold in the $ 374 to $ 375 per ounce area , around $ 5.20 an ounce for December silver and in the $ 485 to $ 490 an ounce range for January platinum .

last week 's activity in gold could portend a move to $ 390 an ounce for the December contract .

traders should be on the lookout for how metals producers react to this rally .

that for the first time in months there was some light investor interest in the metals .

Prices this week will likely be dominated by reports on the progress of the corn and soybean harvest as well as by speculation about more purchases of U.S. crops by the Soviet Union .

In recent weeks , warm and dry weather has sped the Midwest harvest

If the weather allowed farmers to work in their fields over the weekend ,

many Midwest grain elevators will probably sell futures contracts today at the Chicago Board of Trade

That selling of futures contracts by elevators is what helps keep downward pressure on crop prices during the harvest .

Traders will also watch for whether the Soviet Union continues its traditional fall buying of U.S. grain .

So far this month , the Soviets have bought about 7.2 million metric tons of U.S. corn .

as investors try to get rid of the contract for November delivery .

Investors usually do n't want to take physical delivery of a contract ,

Employees of the Globe and Mail , a Thomson Corp. newspaper in Toronto , voted to accept a tentative contract agreement Saturday ,

reached at Torstar Corp. 's Toronto Star newspaper earlier this month ,

the 500 Globe and Mail workers will see a raise of 8 % in the contract 's first year and 7 % in each of the following two years .

Lorne Slotnick , vice chairman of the Southern Ontario Newspaper Guild , the union

Thomson made significant concessions in the final round of talks .

In addition to wage increases , the union negotiated improved vacation plans , benefit packages and pension plans ,

more than 70 % of the bargaining unit voted in favor of the agreement .

Wall Street is just about ready to line the bird cage with paper stocks .

For three years , a healthy economy and the export-boosting effects of a weak dollar propelled sales and earnings of the big paper companies to record levels .

to $ 830 a metric ton this past spring from $ 380 a ton at the start of 1986 .

`` Put your money in a good utility or bank stock , not a paper company , ''

Gary Palmero of Oppenheimer & Co. expects a 30 % decline in earnings between now and 1991 for `` commodity-oriented '' paper companies ,

Robert Schneider of Duff & Phelps sees paper-company stock prices falling 10 % to 15 % in 1990 , perhaps 25 %

But they attribute much of the weakness to customer inventory reductions .

barring a recession and a further strengthening of the dollar against foreign currencies ,

Last week Mr. Adler lowered his rating from hold to `` avoid '' on Boise Cascade , Champion International , Great Northern Nekoosa , International Paper , Louisiana Pacific and Weyerhaeuser .

Oppenheimer 's Mr. Palmero , meanwhile , is steering clear of Gaylord Container , Stone Container and Federal Paper Board .

that it is better positioned than most companies for the coming overcapacity

because its individual mills can make more than one grade of paper .

A Boise-Cascade spokesman referred to a speech by Chairman John Fery ,

that , unlike for some other paper products , demand for Stone 's principal commodity , unbleached containerboard , remains strong .

He expects the price for that product to rise even more next year .

Because the stock prices of some paper companies already reflect an expected profit slump ,

that next year the share prices of some companies may fall at most only 5 % to 10 % .

and thus should be able to lower long-term debt substantially next year .

Estimates on how much pulp prices will fall next year currently run between $ 150 and $ 250 a metric ton .

that the price drop should especially benefit the two big tissue makers , Scott Paper and Kimberly-Clark .

it signed a contract for the largest-ever power plant order in the Netherlands .

signed with the Dutch utility N.V. Energieproduktiebedrijf UNA ,

The accord is for a turbogenerator plant at the coal-fired power station Hemweg in Amsterdam .

ABB Asea Brown Boveri is the Dutch unit of the Swedish-Swiss electrical engineering group ABB Asea Brown Boveri AG .

a significant portion of the order will be placed with Dutch subcontractors ,

The planned turbogenerator plant is expected to go into operation in 1994 .

in its current fiscal year , up from 114.6 billion yen in the previous year ,

and produced 570,000 cars and trucks at its factories in North America , Europe and Australia .

Nissan will build one million vehicles a year outside Japan , or sufficient to equal exports .

`` we want to be producing roughly two vehicles overseas for every vehicle

That will involve a substantial increase in overseas manufacturing capacity ,

it has agreed to sell the extrusion division for $ 15 million to R.D . Werner Co. , a closely held firm

The charge is offset by an after-tax gain of about $ 30 million in the quarter from the previously announced pact

National Intergroup in the year-ago third quarter earned $ 22.5 million , or 97 cents a share ,

including a gain of $ 18 million from the sale of a steel tube company .

concerning the possible sale of National Aluminum 's 54.5 % stake in an aluminum smelter in Hawesville , Ky .

The sale of the extrusion division is subject to audit adjustments for working capital changes through the closing .

The agreement also provides for potential payments of additional proceeds to National Aluminum over the next two years ,

The extrusion unit produces bare and painted custom extrusions for building products and construction industries .

In fiscal 1989 , it had sales of about $ 40 million and an operating loss of $ 1.5 million .

The municipal bond market is bracing for tough times through the end of the year

`` Every day we 're getting new bid lists '' from would-be sellers ,

As a result , yields on long-term muni bonds now stand at about 95 % of long-term Treasury yields , the highest such level in more than two years .

`` There is incredible negative psychology building in the market , ''

`` People are very concerned about who is going to step up to the plate and buy municipal bonds in the absence of institutional buyers . ''

At this week 's New York City bond sale , traders expect yields on the 20-year New York bonds to nearly match the 7.9 % yield on 30-year Treasury bonds .

For an investor in the 28 % federal tax bracket , 7.9 % tax-free is the same as 10.38 % on a taxable investment .

That 's a taxable-equivalent yield nearly three percentage points more than the current yield on 30-year Treasury bonds .

This past summer , investors ' appetite for municipal bonds seemed insatiable .

making state and local government debt one of the best-performing types of fixed-income investments during the period .

Insurance companies are rushing to sell before the end of the year ,

There is speculation that property/casualty firms will sell even more munis

related to Hurricane Hugo and the Northern California earthquake .

Muni bond holders are worried about the impact of a slowing economy on tax revenue , at a time

when many state and local governments already face budget deficits and huge spending needs .

The recent natural disasters , and the need of many other cities

said Ronald Ian Heller , vice president at First Chicago Capital Markets Inc. , a subsidiary of First Chicago Corp .

Some of the recent selling could actually be considered a positive sign .

Mutual funds , for example , are said to be selling existing municipal bonds

that have appreciated in price slowly relative to the decline in interest rates .

The offering will include $ 729 million of 20-year tax-exempt bonds and $ 57.8 million of taxable bonds .

New York City bonds have been beaten down for three straight weeks .

On Friday , some issues fell nearly one point , or close to $ 10 for each $ 1,000 face amount .

The sell-off in New York City bonds was triggered by concerns about the city 's financial health and political uncertainty in view of the impending mayoral election .

said Michael S. Appelbaum , first vice president at Shearson Lehman Hutton .

Treasury bonds fell sharply on confusion about this week 's Treasury debt auction and rumors

that a major Japanese investor was unloading large amounts of long-term bonds .

The Treasury 's benchmark 30-year bond ended at a price of 102 2/32 , down nearly 5/8 point from Thursday , or about $ 6.25 for each $ 1,000 face amount .

Credit market analysts expected the Treasury to cancel today 's three-month and six-month sale and to sell $ 17 billion of cash management bills .

that the weekly sale of $ 15.6 billion of three-month and six-month bills will take place today , as usual ,

the Treasury can raise money under the $ 2.87 trillion debt ceiling

that Nippon Kangyo Kakumaru , a Japanese brokerage firm , was unloading some of the 30-year bonds

the talk was that the firm sold about $ 500 million of bellwether 30-year bonds .

The firm is thought to have purchased up to $ 3 billion of 30-year bonds in a buying spree on Wednesday and the previous Thursday .

the firm apparently has wanted to publicize its recent buying and subsequent selling of 30-year bonds

Cantor provides price quotes to Telerate Systems Inc. , a widely used electronic system .

that the company is selling its candy bar brands to Nestle Foods Corp. for $ 370 million .

`` It shows that there are buyers of high-quality assets at high prices in today 's market , ''

said Robert Long , managing director and head of the high-yield research department at First Boston Corp .

which had been trading near their 52-week lows earlier in the session ,

that it agreed to sell its Baby Ruth , Butterfinger and Pearson candy businesses to Nestle Foods , a unit of the Swiss-based food concern .

RJR Holdings Capital Corp. 's 14.7 % convertible pay-in-kind securities

Most other junk bond issues finished a quarter-point lower on rumors

that Campeau Corp. was filing for protection from creditors under Chapter 11 of the Bankruptcy Code .

Among major issues , Government National Mortgage Association 9 % securities for November delivery ended at 98 12/32 , down 8/32 point for a yield of about 9.35 % to a 12-year average life assumption .

the elderly pay for coverage of doctor 's bills under Part B of the Medicare health insurance plan

to cover the cost of the new program of insurance against catastrophic illness

The House has voted to repeal most of the Catastrophic Coverage Act of 1988 , however ,

which would end the monthly catastrophic-care premium , as well as an unpopular income surtax

Under a less-sweeping Senate plan , the catastrophic-care monthly premium would continue ,

Medicare Part B pays 80 % of a beneficiary 's allowable doctor 's bills after an annual deductible of $ 75 .

The Catastrophic Coverage Act would add a stop-loss provision next year

with the additional $ 4.90 going to pay for expanded hospital coverage under Part A of Medicare .

Most of Part A 's costs are paid by a payroll tax on workers and employers .

it will trim its Aeronautical Systems work force in California and Georgia by several hundred workers ,

it expects to make the cuts through a combination of furloughs , attrition and retirements .

largely because of cost overruns on fixed-price military contracts .

that other defense contractors are complaining of losses on such contracts ,

taxpayers have been getting illusionary bargains on weapons systems in recent years .

Defense contractors `` can not continue to get contracts on that basis , ''

said Howard Rubel , an analyst with C.J . Lawrence , Morgan Grenfell Inc. in New York .

Jim Pattison Industries Ltd. , one of a group of closely held companies

it `` intends to seek control '' of 30 % -owned Innopac Inc. , a Toronto packaging concern .

Jim Pattison Industries , a holding company with annual sales of about C $ 1.9 billion , largely from car dealerships and grocery stores , did n't elaborate on the statement ,

it currently holds about 4.2 million of Innopac 's 13.8 million common shares outstanding ,

which have an aggregate market value of about 137.8 million Canadian dollars

Separately , Innopac reported a fourth-quarter loss of about C $ 2.6 million , or 18 Canadian cents a share ,

C $ 2.7 million , or 20 Canadian cents a share , down from C $ 9.7 million , or 70 Canadian cents a share last year .

Revenue was C $ 291.6 million , up from C $ 252 million in 1988 .

whether Mr. Pattison has disclosed potential terms for his planned bid for control .

Among other things , Innopac is involved in recycling polystyrene foam products

that are often used by fast food chains , such as McDonald 's Corp. , for food packaging .

earlier this year opened the first U.S. polystyrene recycling plant , in Leominster , Mass .

but big institutional investors are expected to continue the practice ,

Bear Stearns , Morgan Stanley and Oppenheimer joined PaineWebber in suspending stock-index arbitrage trading for their own accounts .

Still , stock-index funds are expected to continue launching big programs through the market .

to complain about program trading and the exchange 's role in it .

Personal spending rose 0.2 % in September , the smallest gain in a year .

Factory owners are buying new machinery at a healthy rate this fall ,

But weak car sales raise questions about future demand from the auto sector .

Southern 's Gulf Power unit may plead guilty this week to charges

it illegally steered company money to politicians through third parties .

The tentative pact would resolve part of a broad investigation of the Atlanta-based company in the past year .

as it moved quickly to take write-offs for various problems and prepare for a turnaround .

RJR Nabisco agreed to sell three candy businesses to Nestle for $ 370 million .

The accord helps RJR pay off debt and boosts Nestle 's 7 % share of the U.S. candy market to 12 % .

Sansui Electric agreed to sell a 51 % stake to Polly Peck of Britain for $ 110 million .

Insurers could see claims totaling nearly $ 1 billion from the San Francisco earthquake , far less than the $ 4 billion from Hurricane Hugo .

a Dutch firm is seeking to buy up to 25 % of the New Hampshire copier company .

Mobil is cutting back its U.S. oil and gas exploration and production group by up to 15 % as part of a restructuring of the business .

Dow Jones industrials 2596.72 , off 17.01 ; transportation 1190.43 , off 14.76 ; utilities 215.86 , up 0.19 .

Dow Jones futures index 129.49 , up 0.27 ; spot index 130.80 , off 0.24 .

( During its centennial year , The Wall Street Journal will report events of the past century

Thomas Jefferson sold Congress on the idea of the decimal system for currency ,

thus saving Americans the headaches of pounds , shillings and pence .

But he struck out with the decimal system of metric weights and measures

When Congress finally passed the Metric Conversion Act in 1975 ,

about what would happen to `` six-footer , '' `` yardstick '' and `` inchworm . '' )

General Motors , for example , uses metric terms for its automobile bodies and power trains .

( In auto advertising , however , items such as wheelbases are still described in inches . )

Farm-machine makers such as Caterpillar and Deere work in the metric system .

notes John Tascher , the Defense Department 's metric coordinator .

which for months has fought a public relations battle with education leaders ,

it has signed 500 schools in 24 states to subscribe to the controversial Channel One news program and its sister programs .

its field staff signed up the 500 schools in 238 school districts after only eight weeks

and company executives now expect to reach their start-up goal of 1,000 schools before the end of this year .

Christopher Whittle , chairman of the Knoxville , Tenn. , media company

that by December 1990 he expects to have Channel One installed in about 8,000 schools with a potential audience of six million .

In California and New York , state officials have opposed Channel One .

Subscribing schools get the 12-minute daily Channel One news program ,

whose four 30-second TV ads during each show have drawn protests from educators .

which will feature ad-free educational programming similar to some public-TV shows ,

which will offer instructional programming for teachers and school administrators

About 10 % of the school districts approached have rejected the network .

One of the test schools , Withrow High School in Cincinnati , rejected the project .

John Bruner , associate director of communications for Cincinnati Public Schools , said

did n't fare particularly better on a 28-question current events quiz than a control school

it had sold $ 150 million in advertising time on the network to national advertisers .

Installation of satellite dishes , TVs and videocassette equipment will cost the company about $ 20,000 per school ,

The following U.S. Treasury , corporate and municipal offerings are tentatively scheduled for sale this week ,

consisting of two shares of common stock and one common warrant ,

$ 150 million convertible debentures , via Merrill Lynch Capital Markets .

1.3 million common shares , via Smith Barney Harris Upham & Co .

including $ 40.86 million Wastewater Treatment insured bonds , Series 1989A , and $ 34,215,000 Wastewater Treatment bonds , Series 1989B ,

$ 130 million of distributable state aid bonds , via a Chemical Securities Inc. group .

Maryland Community Development Administration , Department of Housing and Community Development --

$ 80 million of single-family program bonds , 1989 4th and 5th Series , via a Merrill Lynch group .

$ 70,315,000 of pollution control revenue Alternative Minimum Tax

including $ 729.04 million tax-exempt bonds and $ 57.82 million taxable bonds ,

$ 107 million of tax allocation bonds , 1989 Series A-D , via a Donaldson Lufkin & Jenrette Securities Corp. group .

$ 80 million of refunding bonds , Series 1989 , via a First Tennessee Bank group .

it raised its stake in Octel Communications Corp. to 8.5 % of the common shares outstanding .

In a Securities and Exchange Commission filing , Hewlett-Packard said

Hewlett-Packard , a Palo Alto , Calif. , computer company , said

it does n't plan to obtain control of Octel , a Milpitas , Calif. , maker of voice-processing systems .

That accord also called for Hewlett-Packard to buy 730,070 Octel shares in the open market within 18 months .

of which half may be sold directly to Hewlett-Packard by Octel .

Following is a weekly listing of unadited net asset values of publicly traded investment fund shares , reported by the companies as of Friday 's close .

Also shown is the closing listed market price or a dealer-to-dealer asked price of each fund 's shares , with the percentage of difference .

Twice in two weeks the unraveling of the on-again , off-again UAL buy-out slammed the stock market .

the Dow Jones Industrial Average has lost 194.69 points , or 7 % ,

But why should an iffy $ 6.79 billion leveraged buy-out deal shake the foundations of the entire stock market ?

it would n't have been greeted with anything like the impact it has had over the past two weeks , ''

that briefly swept through investors on Oct. 13 and again on Oct. 24

that the emphasis in mergers and acquisitions may soon return to what he calls `` strategic deals ,

that there has n't been a merger or acquisition among the 30 stocks in the Dow Jones Industrial Average since 1986 ,

created by stock index arbitrage and other computer-driven trading strategies

`` What on earth does the UAL deal have to do with the price of Walmart ,

which I was able to buy on Oct. 16 at a very attractive price ? ''

Kidder Peabody 's Mr. Jarrett also sees some benefits to the stock market 's recent drop .

and to look at the economic data , especially the third-quarter economic numbers ,

that we ca n't continue to gloss over what is going on in the junk bond market . ''

`` Just because we 've got some realism back in the market does n't mean it 's going lower from here , ''

`` The bottom line is that it 's healthy to have this kind of sideways activity , especially after a 30 % gain in stock values over the past 12 months . ''

that after a period of consolidation , the Dow Jones Industrial Average will once again forge new highs .

Abby Joseph Cohen , a market strategist at Drexel Burnham Lambert , is n't nearly so sanguine about the market 's chances

merger and buy-out proposals , earnings and the economic outlook .

At current levels of economic activity and earnings , stocks are fairly valued ,

there have been some judicial and legislative changes in the merger area

but these other things have been building up more gradually , ''

the outlook for earnings in the fourth quarter and all of 1990 is getting worse .

and it looks like people are questioning corporate profits as a means of support for stock prices , ''

as earnings disappointments , a sluggish economy and a fragile junk bond market continued to weigh on investors .

The Dow Jones Industrial Average fell 17.01 points to 2596.72 in active trading .

Volume on the New York Stock Exchange totaled 170,330,000 shares .

Declining issues on the Big Board were far ahead of gainers , 1,108 to 416 .

For the week the Dow Jones Industrial Average sank 92.42 points , or 3.4 % .

which rose 5/8 to 66 3/8 in Big Board composite trading of 2.4 million shares .

but several industry analysts told the Professional Investor Report

it was plausible that Pennzoil may be buying Chevron shares as a prelude

that investor Carl Icahn is said to have raised his stake in the oil and steel company to just about 15 % .

Earlier this month , Mr. Icahn boosted his USX stake to 13.4 % .

it plans to cut its exploration and production work force by about 8 % in a restructuring ,

The precious metals sector outgained other Dow Jones industry groups by a wide margin for the second consecutive session .

Himont , another majority-owned unit of Montedison , added 1 1/4 to 47 1/8 .

Federal investigators have identified the problem in last July 's crash of a United Airlines flight in Iowa :

For several months , officials at the Federal Aviation Administration and the National Transportation Safety Board have suspected

that ultimately caused the tail engine to break apart in flight .

But investigators could confirm their theory only after the recent retrieval of a big chunk of Flight 232 's tail engine from a cornfield near the Sioux City Airport in Iowa .

The safety board will begin four days of hearings on the accident tomorrow in Sioux City .

is whether United Airlines , a unit of UAL Corp. , should have been able to detect the cracks through maintenance checks .

Anthony Broderick , the FAA 's acting executive director for regulatory standards and compliance , said

occurred in the titanium during its production almost 20 years ago .

and subjected to an ultrasonic test in a water-submersion chamber .

Such tests make the FAA confident that a Sioux City-type accident `` wo n't happen again , ''

that the company has been working with the FAA all along on this issue

that the recalls will have no impact on GE 's engine production .

they are only being used in the DC-10 Series 10 planes currently in service ,

Researchers at Ohio State University and Lanzhou Institute of Glaciology and Geocryology in China have analyzed samples of glacial ice in Tibet

temperatures there have been significantly higher on average over the past half-century than in any similar period in the past 10,000 years .

A substantial warming would melt some of the Earth 's polar ice caps ,

and causing widespread flooding of heavily populated coastal areas .

you have much more confidence in predictions for the future , ''

researchers analyzed the changes in concentrations of two forms of oxygen .

Analysis of ice from the Dunde ice cap , a glacial plateau in Tibet 17,000 feet above sea level , show

that average temperatures were higher in 1937-87 than in any other 50-year period since before the last Ice Age ,

that the so-called greenhouse effect will lead to further substantial global heating ,

temperatures should have risen fairly uniformly over the past century ,

Instead , the Dunde ice-core record shows increasing temperatures from 1900 through the early 1950s , decreasing temperatures from the late 1950s through the mid-1970s , then higher temperatures again through last year .

ice samples from Peru , Greenland and Antarctica all show substantial signs of warming .

the final step in the acquisition of the company has been completed with the merger of CNW with a subsidiary of Chicago & North Western Holdings Corp .

Congress sent to President Bush an $ 8.5 billion military construction bill

to move more than $ 450 million from foreign bases to home-state projects .

set earlier this year by House and Senate defense authorizing committees ,

-- at a time of retrenchment for the military and concern about the U.S. 's standing in the world economy --

Total Pentagon requests for installations in West Germany , Japan , South Korea , the United Kingdom and the Philippines , for example , are cut by almost two-thirds ,

while lawmakers added to the military budget for construction in all but a dozen states at home .

The result is that instead of the Pentagon 's proposed split of 60-40 between domestic and foreign bases , the reduced funding is distributed by a ratio of approximately 70-30 .

The extra margin for bases in the U.S. enhances the power of the appropriations committees ;

as six times what the Pentagon had requested for their individual states .

helped secure $ 49.7 million for his state , or more than double the Pentagon 's budget .

West Virginia , home of Senate Appropriations Committee Chairman Robert Byrd , would receive $ 21.5 million

Tennessee and North Carolina , home states of the two Democratic chairmen of the House and Senate military construction subcommittees , receive $ 243.2 million , or 25 % above the Pentagon 's request .

which cleared the Senate and House on simple voice votes last week ,

By an 84-6 margin , the Senate approved the bulk of the spending Friday ,

of how to address budget limits on credit allocations for the Federal Housing Administration .

The House Democratic leadership could seek to waive these restrictions ,

but the underlying bill is already under attack for excesses elsewhere .

and in some cases is temporarily parked in slow-spending accounts in anticipation

For example , a House-Senate conference ostensibly increased the National Aeronautics and Space Administration budget for construction of facilities to nearly $ 592 million , or more than $ 200 million above what either chamber had previously approved .

Part of the increase would provide $ 90 million toward ensuring construction of a costly solid rocket-motor facility in Mr. Whitten 's Mississippi .

But as much as $ 177 million , or nearly 30 % of the account , is marked for potential transfers to research , management and flight accounts

The bill 's managers face criticism , too , for the unusual number of conditions

embarrassed by Republican influence-peddling scandals at the Department of Housing and Urban Development ,

have used the issue in an effort to shift blame onto a Democratic-controlled Congress .

but received little support from the White House budget office ,

Within discretionary funds for community development grants , more than $ 3.7 million is allocated to six projects in Michigan , home state of a subcommittee chairman , Rep. Bob Traxler .

House Speaker Thomas Foley won $ 510,000 for a project in his district in Washington state ,

amounts to a business subsidy under the title `` Hawaiian sugar mills job retention . ''

relaxing environmental restrictions on two mills on the Hamakua coast

to subsidize needed improvements in two settling ponds for the mills ,

Dennis Farney 's Oct. 13 page-one article `` River of Despair , '' about the poverty along the Mississippi , fanned childhood memories

of when my parents were sharecroppers in southeastern Arkansas , only a few miles from the river .

that opened the world of opportunity for me as an eight-year-old .

Though I 've been blessed with academic degrees and some success in the materialistic world ,

I 've never forgotten or lost contact with those memories of the 1930s .

Most of the land in that and other parts of the Delta are now owned by second , third or fourth generations of the same families .

who had no encouragement and little access to an education or training for a better life .

the surplus people were dumped into the mainstream of society with no Social Security , no skills in the workplace , no hope for their future except welfare .

And today , many of their children , grandchildren and great-grandchildren remain on welfare .

In the meantime , the landowners continue receiving generous subsidies

but those along the Mississippi continue to prosper with holdings

Because the cycle of poverty along the lower Mississippi goes back so many generations ,

Sadly , the cycle appears not as waves but as a downward spiral .

The people of the Delta are waiting for that big factory to open , river traffic to increase , government spending to fund job-training programs or public schools to educate apathetic students .

the questions continue as fodder for the commissions and committees , for the media and politicians .

Coffee-shop chatter does not lend itself to solving the problems of racism , teen pregnancy or lack of parental support or guidance .

when the majority of residents , black and white , do not realize

when the vocal right-wingers and the school boards , mayors and legislators prohibit schools from teaching the two ways

`` Aw heck , guys , nobody can do it like Japan or South Korea , ''

Your story is an insult to the citizens of the Mississippi Delta .

Nobody should have to live in such poor conditions as in `` Sugar Ditch , ''

The only difference is , in those cities the poor are housed in high-rise-project apartments

Many middle-class people would love free food , Medicaid insurance , utilities and rent .

just to stay above water , like so many families in this country .

by as much as 15 % as part of a new restructuring of that sector of its business .

that it was going to reduce employment in production operations of the group by 8 % , or 400 people .

The exploration side of the unit has recently undergone a similar overhaul ,

Mobil Exploration & Producing U.S. Inc. , the group involved , currently has a work force of somewhat less than 5,000 .

A few years ago , Mobil restructured the entire company during an industrywide shakeout .

when it took a $ 40 million charge as part of its third-quarter earnings

On Wednesday , Mobil will begin offering separation packages and voluntary retirement in its U.S. production operation .

During the coming months , layers of management will be peeled away

For greater efficiency , employees at those locations will be reorganized into teams responsible for managing the properties under their jurisdiction ,

`` The main feature of the new organization is that each local manager will have both the authority and accountability for profitable and technically sound operations , ''

Field offices at New Orleans ; Houston ; Denver ; Midland , Tex . ; Bakersfield , Calif. ; Oklahoma City ; and Liberal , Kan. , will be maintained .

For instance , employment in Denver will be reduced to 105 from 430 .

where profitable oil production is more likely than in the midcontinent region ,

the Bakersfield , Calif. , office staff of 130 will grow by 175 to 305 .

The reorganization will `` focus on the value and potential of assets , ''

The United Kingdom reports came from Dr. Patrick Toseland , head of clinical chemistry at Guy 's Hospital in London .

At least six of the deaths occurred among relatively young diabetics

who had switched from animal to human insulin within the past year ,

Dr. Solomon Sobel , director of metabolism and endrocrine drug products for the U.S. Food and Drug Administration , said

FDA officials have discussed Dr. Toseland 's findings `` fairly intensively . ''

While there have been no reports of similar sudden unexplained deaths among diabetics in the U.S. ,

he was preparing an article for a British forensic medical journal

The usual warning signs of hypoglycemia include sweating , anxiety and cramps .

With proper warning , diabetics can easily raise their blood sugar to safe levels

that some of the people were not aware of the rapid onset of hypoglycemia , ''

At the U.S. National Institutes of Health , Dr. Robert E. Silverman , chief of the diabetes program branch , said

no evidence of unexpected deaths from hypoglycemia had shown up in a study of 1,500 diabetics

Reports of Dr. Toseland 's findings in the British press have triggered widespread concern among diabetics there .

Both the British Diabetic Association and the Committee on Safety in Medicines

On Friday , the American Diabetes Association issued a similar statement

urging the six million U.S. diabetics not to overreact to the British report .

`` A loss of the warning symptoms of hypoglycemia is a complex problem

that is very unlikely to be due simply to the type of insulin used , ''

The FDA already requires drug manufacturers to include warnings with insulin products

that symptoms of hypoglycemia are less pronounced with human insulin than with animal-based products .

Eli Lilly & Co. , the Indianapolis-based drug manufacturer , dominates the U.S. human insulin market with its product

they had seen reports of hypoglycemic unawareness among some patients

the company 's clinical trials of both its animal and human-based insulins indicated no difference in the level of hypoglycemia between users of either product .

it will reduce its 221-person work force by about 25 % , effective tomorrow , in an effort

Last April , the new defense secretary , Richard Cheney , acknowledged

and learn to work in the real world of limited budgets and uncertain futures .

Compare the past eight five-year plans with actual appropriations .

Strategy , however , is about possibilities , not hopes and dreams .

U.S. strategists abdicate their responsibility for hard decisions .

-- the preservation of jobs is becoming the real goal of defense `` strategy . ''

Strategists should consider the impact of budget uncertainties at the beginning of the planning process .

how a range of optimistic to pessimistic budget scenarios would change the defense program .

This kind of contingency analysis is common in war planning and business planning .

-- negative money , an above guidance management reserve and optimistic inflation estimates --

to make the 1990-94 Five Year Defense Plan conform to the numbers in President Reagan 's final budget submission to Congress .

that the negative wedge is the net effect of $ 22 billion in the as-yet unidentified procurement reductions

inflation will be in excess of 4 % in each of those five years .

At that rate , the defense plan is underfunded by $ 48 billion .

Step 2 examines how four progressively lower budget scenarios would change the baseline

Note how the baseline program assumes a sharp increase in future appropriations .

This scenario has been the rough position of the U.S. Senate since 1985 ,

and it reduces the baseline by $ 106 billion between 1990 and 1994 .

Scenario 3 , the `` Current Dollar Freeze , '' has been the approximate position of the House of Representatives for about four years .

and forces the Pentagon to eat the effects of inflation until 1994 .

Scenario 2 extends the recent compromises between the House and the Senate ;

Finally , Scenario 4 reduces the budget by 2 % per year for the next five years

perhaps driven by the sequestering effects of the Gramm-Rudman deficit reduction law or possibly a relaxation of tensions with the Soviet Union .

The strategic planners in the Joint Chiefs of Staff would construct the most effective defense program for each scenario ,

-- including the assumptions made , an analysis of its deficiencies and limitations , the impact on national security , and the best strategy

This exercise would reveal the true cost of a particular program

that the idea of a strategic review merely resurrects the infamous Zero-Based Budgeting

But ZBB did not involve the strategic planners in the Joint Chiefs of Staff ,

that everyone involved was crushed under a burden of marginalia .

and provide the Secretary of Defense with a comprehensive net assessment

It might be feared that even thinking about lower budgets will hurt national security

because the door will be opened to opportunistic budget cutting by an irresponsible Congress .

This argument plays well in the atmosphere of gaming and mistrust

But in the end , it must be rejected for logical as well as moral reasons .

because acting responsibly will provoke Congress into acting irresponsibly

that the Pentagon should deliberately exaggerate its needs in the national interest ;

where constraints force us to choose between unpleasant or imperfect alternatives .

Strategy is not a separate event in an idealized sequence of discrete events ;

that neutralizes threats to our interests in a manner consistent with our financial , cultural and physical limitations .

that will appear in the January issue of the Naval Institute Proceedings .

The views expressed do not reflect the official policy of the Department of Defense .

While Wall Street 's tough times and lower U.S. interest rates continue to undermine the dollar ,

weakness in the pound and the yen is expected to offset those factors .

`` By default , '' the dollar probably will be able to hold up pretty well in coming days ,

says Francoise Soares-Kemp , a foreign-exchange adviser at Credit Suisse .

In late Friday afternoon New York trading , the dollar was at 1.8300 marks and 141.65 yen , off from late Thursday 's 1.8400 marks and 142.10 yen .

In Tokyo Monday , the U.S. currency opened for trading at 141.70 yen , down from Friday 's Tokyo close of 142.75 yen .

gaining against all major currencies in Tokyo dealings and early European trading

that the Bank of Japan was seen unloading dollars around 142.70 yen .

as traders continued to dump the pound after the sudden resignation Thursday of British Chancellor of the Exchequer Nigel Lawson .

once the pound steadied with help from purchases by the Bank of England and the Federal Reserve Bank of New York ,

that left the Dow Jones Industrial Average with a loss of 17.01 points .

discouraged by signs of U.S. economic weakness and the recent decline in U.S. interest rates

that has diminished the attractiveness of dollar-denominated investments ,

says James Scalfaro , a foreign-exchange marketing representative at Bank of Montreal .

the dollar eventually could test support at 1.75 marks and 135 yen ,

Mr. Scalfaro and others do n't see the currency decisively sliding under support at 1.80 marks and 140 yen soon .

Predictions for limited dollar losses are based largely on the pound 's weak state after Mr. Lawson 's resignation and the yen 's inability

With the pound and the yen lagging behind other major currencies ,

says Mike Malpede , senior currency analyst at Refco Inc. in Chicago .

a slide toward support at $ 1.5500 may be a favorable development for the dollar this week .

But the market remains uneasy about Mr. Major 's policy strategy and the prospects for the pound ,

Although the Bank of England 's tight monetary policy has fueled worries

that Mr. Major will be less inclined to use interest-rate boosts

`` It 's fair to say there are more risks for the pound under Major

says Malcolm Roberts , a director of international bond market research at Salomon Brothers in London .

But some other analysts have a stormier forecast for the pound ,

particularly because Britain 's inflation is hovering at a relatively lofty annual rate of about 7.6 %

and the nation is burdened with a struggling government and large current account and trade deficits .

says Nigel Rendell , an international economist at James Capel & Co. in London .

The pound was at 2.8896 marks late Friday , off sharply from 2.9511 in New York trading a week earlier .

the Bank of England may raise Britain 's base lending rate by one percentage point to 16 % ,

Pound concerns aside , the lack of strong buying interest in the yen is another boon for the dollar ,

because the Japanese currency has n't been purchased heavily in recent weeks ,

and persistent worries about this year 's upheaval in the Japanese government .

On New York 's Commodity Exchange Friday , gold for current delivery jumped $ 5.80 , to $ 378.30 an ounce , the highest settlement since July 12 .

In early trading in Hong Kong Monday , gold was quoted at $ 378.87 an ounce .

that the `` Americans With Disabilities Act of 1989 '' was `` crafted primarily by Democratic Senators Kennedy and Harkin '' with a premise

`` It is surprising that George Bush and the White House inner circle would ally themselves with this crabby philosophy . ''

This legislation was not drafted by a handful of Democratic `` do-gooders . ''

-- it results from years of work by members of the National Council on the Handicapped , all

Democratic leaders `` hoodwinked '' the administration into endorsing .

It 's the product of many meetings with administration officials , Senate staffers , advocates , and business and transportation officials .

Many congressmen are citing the compromise on the `` Americans With Disabilities Act of 1989 '' as a model for bipartisan deliberations .

because there is no transportation for someone in a wheelchair ;

Your editorial mockingly entitles this legislation the `` Lawyers ' Employment Act . ''

For the 43 million people with disabilities and their families , this legislation is the `` Emancipation Proclamation . ''

to buy more than 50 % of the stock of Rally 's Inc. , a fast-food company

Rally 's operates and franchises about 160 fast-food restaurants throughout the U.S .

The investor group includes Restaurant Investment Partnership , a California general partnership , and three Rally 's directors :

The group currently holds 3,027,330 Rally 's shares , or 45.2 % of its commmon shares outstanding .

Giant Group owned 22 % of Rally 's shares before the initial public offering .

It is estimated that the Patterson group controls more than 40 % of Rally 's stock .

Rally had net income of $ 2.4 million , or 34 cents a share , on revenue of $ 52.9 million .

reported quarterly profit substantially different from the average of analysts ' estimates .

and had a minimum five-cent change in actual earnings per share .

The percent difference compares actual profit with the 30-day estimate

where at least three analysts have issues forecasts in the past 30 days .

Otherwise , actual profit is compared with the 300-day estimate .

DPC Acquisition Partners , a hostile suitor for Dataproducts Corp. , filed a petition in federal district court in Los Angeles

seeking to have its standstill agreement with the computer printer maker declared void ,

and it proceeded with a $ 10-a-share tender offer for the company .

The offer would give the transaction an indicated value of $ 189 million ,

but Dataproducts management considered the $ 283.7 million proposal unacceptable .

Appalachian Power Co. , a subsidiary of American Electric Power Co. , said

it will redeem on Dec. 1 the entire $ 44.2 million of its 12 7/8 % first mortgage bonds due 2013 .

The redemption price will be 109.66 % of the principal amount of the bonds , plus accrued interest to the date of redemption .

The European Community 's consumer price index rose a provisional 0.6 % in September from August

The month-to-month rise in the index was the largest since April ,

Energetic and concrete action has been taken in Colombia during the past 60 days against the mafiosi of the drug trade ,

began warning of the rise of the drug mafias and of their leaders ' aspirations

and my brother was murdered by the drug mafias three years ago .

The most ruthless dictatorships have not censored their press more brutally than the drug mafias censor Colombia 's .

The censorship is enforced through terrorism and assassination .

In the past 10 years about 50 journalists have been silenced forever , murdered .

Within the past two months a bomb exploded in the offices of the El Espectador in Bogota ,

And only last week the newspaper Vanguardia Liberal in the city of Bucaramanga was bombed ,

that the drug mafia 's terrorism someday will extend to all the newspapers

The solidarity of the uncensored media world-wide against drug terrorism is the only way

The American people and their government also woke up too late to the menace

Even now , the American attack upon this tremendous problem is timid in relation to the magnitude of the threat .

that a recent Colombian visitor to the U.S. was offered drugs three times in the few blocks ' walk between Grand Central Terminal and the Waldorf Astoria Hotel in midtown Manhattan .

All drug-consuming countries must jointly decide to combat and punish the consumers and distributors of drugs .

The U.S. , as the major drug consumer , should lead this joint effort .

Reduction , if not the total cessation , of drug consumption is the requirement for victory .

Luxurious homes and ranches have been raided by the military authorities ,

and sophisticated and powerful communications equipment have been seized .

More than 300 planes and helicopters have been impounded at airports ,

and a large number of vehicles and launches has been confiscated .

The military has also captured enormous arsenals of powerful and sophisticated weapons , explosives and other war-like materiel .

and public opinion decisively supports the government and the army

-- but , on the other hand , none of the key drug barons have been captured .

that a large portion of the Colombian economy is sustained by the laundering of drug money .

Laundered drug money has served only to increase , unrealistically , the price of real estate ,

But most of the drug money is kept in investments and in financial institutions outside Colombia .

In fact , the cooperation of those financial institutions is essential to the success of the drug battle .

What is of much more importance to the Colombian economy than the supposed benefits of laundered drug money is higher prices for Colombia 's legitimate products .

The price of coffee has gone down almost 45 % since the beginning of the year , to the lowest level

The 27-year-old coffee cartel had to be formally dissolved this summer .

As a result , Colombia will earn $ 500 million less from its coffee this year than last .

and this tempts them to contemplate substituting coca crops for coffee .

U.S. interests occasionally try to impose barriers to the import of another important Colombian export

Each gram of cocaine consumed is a deadly bullet against those in our country and in the rest of the world

Toni Johnson pulls a tape measure across the front of what was once a stately Victorian home .

when the house lurched two feet off its foundation during last week 's earthquake .

The remainder of the house leans precariously against a sturdy oak tree .

She has been on the move almost incessantly since last Thursday ,

to help policyholders sift through the rubble and restore some order to their lives .

Equipped with cellular telephones , laptop computers , calculators and a pack of blank checks ,

Many adjusters are authorized to write checks for amounts up to $ 100,000 on the spot .

One of the friends sweeps broken dishes and shattered glass from a countertop

The owners , William and Margie Hammack , are luckier than many others .

A few years ago , Mrs. Hammack insisted on buying earthquake insurance for this house ,

Only about 20 % of California home and business owners carried earthquake coverage .

The Hammacks ' own home , also in Los Gatos , suffered comparatively minor damage .

who works out of Aetna 's office in Walnut Creek , an East Bay suburb ,

had deployed about 750 of them in Charlotte , Columbia , and Charleston .

the insurer will still be processing claims from that storm through December .

It could take six to nine months to handle the earthquake-related claims .

Aetna senior claims executives from the San Francisco area were at the company 's Hartford , Conn. , headquarters for additional training

and bring along portable computers , cellular phones and some claims adjusters .

Aetna pulled together a team of its most experienced claims adjusters from around the country .

Some adjusters , like Alan Singer of San Diego , had been working in Charleston for nearly four weeks .

Adjusters must count the number of bathrooms , balconies , fireplaces , chimneys , microwaves and dishwashers .

But they must also assign a price to each of these items as well as to floors , wallcoverings , roofing and siding ,

they must think in terms of sheetrock by the square foot , carpeting by the square yard , wallpaper by the roll , molding by the linear foot .

Using a calculator and a unit-price guide for such jobs as painting , plumbing and roofing in each major region of the country ,

adjusters can figure out the value of a home in today 's market and what it would cost

When Aetna adjuster Bill Schaeffer visited a retired couple in Oakland last Thursday ,

located about 50 yards from the collapsed section of double-decker highway Interstate 880 ,

The next day , Mr. Schaeffer presented the couple with a check for $ 151,000

A year later , she moved to the commercial property claims division .

That was followed by three months at the Aetna Institute in Hartford ,

where she was immersed in learning how to read and interpret policies .

that venturing inside the Hammacks ' house the previous day was n't '' such a great idea . ''

During her second meeting with the Hammacks , Ms. Johnson reviews exactly what their policy covers .

They would like to retrieve some appliances on the second floor ,

that rebuilding the house in Los Gatos , an affluent community in Santa Clara County , may cost

Earthquake insurance costs about $ to $ annually for every $ 1,000 of value ,

For Ms. Johnson , dealing with the earthquake has been more than just a work experience .

The government is sharpening its newest weapon against white-collar defendants :

if the founder and former chairman of Crazy Eddie Inc. is indicted ,

The warning by the U.S. attorney 's office follows two decisions by the U.S. Supreme Court last June .

Mr. Antar is being investigated by a federal grand jury in Newark ,

that they may soon seek an indictment on racketeering and securities fraud charges .

Under the Racketeer Influenced and Corrupt Organizations law , or RICO , the government has the authority

Justin Feldman and Jack Arseneault , attorneys for Mr. Antar , both declined to comment on the matter .

filed in federal court in Newark by the Securities and Exchange Commission .

In that suit , the SEC accused Mr. Antar of engaging in a `` massive financial fraud ''

to overstate the earnings of Crazy Eddie , Edison , N.J. , over a three-year period .

Through his lawyers , Mr. Antar has denied allegations in the SEC suit and in civil suits

that Mr. Antar aimed to pump up the company 's stock price through false financial statements

made more than $ 60 million from the sale of his shares between 1985 and 1987 .

that the government 's fee-forfeiture power is to be used sparingly .

that defendants are being deprived of their Sixth Amendment right to counsel and a fair trial

the best defense lawyers will be unwilling to take criminal cases

makes metal files and desks , and seating and office systems furniture .

the Palestine Liberation Organization continues to practice terrorism ,

and thus to persuade the U.S. to break off talks with the group .

Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents

satisfying the U.S. precondition for a direct `` dialogue '' with the PLO .

linking Fatah to any acts of terrorism since Dec. 15 , 1988 , ''

Israeli Prime Minister Yitzhak Shamir 's top adviser on counterterrorism , Yigal Carmon , was here Monday

to present the report to members of Congress , reporters and others .

he also presented the list last week to William Brown , U.S . Ambassador to Israel .

that the Israeli government had provided its correspondent in Jerusalem with different documents

the PLO has been conducting terrorism from the occupied Arab territories .

it is backing up its contention with detailed accounts of alleged terrorist acts and plans

to bring about talks between Israel and Palestinian representatives .

it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens ,

Deciding what constitutes `` terrorism '' can be a legalistic exercise .

The U.S. defines it as `` premediated , politically motivated violence

perpetrated against noncombatant targets by subnational groups or clandestine state agents . ''

because they may be offshoots of the intifadah , the Palestinian rebellion in the occupied territories ,

they are highly uncertain about the veracity of the separate documents

U.S. policy on Palestinian terrorism is colored by an intense desire

But State Department officials accuse Israel of leaking questionable claims

Concern about the volatile U.S. stock market had faded in recent sessions ,

and traders appeared content to let the dollar languish in a narrow range until tomorrow ,

when the preliminary report on third-quarter U.S. gross national product is released .

But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight

Stock prices , meanwhile , posted significant gains in later trading

that the market 's strong reaction to Wall Street reflects a general uneasiness about the dollar .

that the DJIA 's swift drop proved an easy excuse for the market

In late New York trading yesterday , the dollar was quoted at 1.8355 marks , down from 1.8470 marks Monday , and at 141.45 yen , down from 141.90 yen late Monday .

Sterling was quoted at $ 1.6055 , up from $ 1.6030 late Monday .

In Tokyo Wednesday , the U.S. currency opened for trading at 141.57 yen , down from Tuesday 's Tokyo close of 142.10 yen .

Tom Trettien , a vice president with Banque Paribas in New York , sees a break in the dollar 's long-term upward trend , a trend

that `` the next leg could be the beginning of a longer term bearish phase . ''

Analysts peg the dollar 's recent weakness to an underlying slowdown in the U.S. economy ,

highlighted by recent economic data , particularly a surprisingly sharp widening in the August U.S. trade gap .

that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors .

it was noted that mark-yen cross trade grabbed much of the market 's attention .

Traders attribute the mark 's surge to a robust West German economy and higher rate differentials .

that the mark 's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments .

that Japanese monetary policy wo n't be changed for the time being

that the United Kingdom posted a wider-than-expected trade deficit in September .

The news also knocked the British unit to below 2.95 marks in London ,

but a bout of short-covering helped sterling recoup some of its earlier losses .

On the Commodity Exchange in New York , gold for current delivery jumped $ 3.20 to $ 370.20 an ounce .

In early trading in Hong Kong Wednesday , gold was quoted at $ 368.25 an ounce .

Boston Co. 's fall from grace is bad news for its parent , Shearson Lehman Hutton Holdings Inc. ,

which has relied heavily on the banking and money management unit 's contributions in recent years .

In 1988 , for example , Boston Co. had an estimated pretax profit of at least $ 110 million ,

the unit had profit of around $ 17 million for the third quarter ,

Shearson , meanwhile , posted net income of $ 106 million for the first nine months of the year , down slightly from $ 110 million for the year-ago period .

Moody 's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary , to single-A-1 from double-A-3 ,

citing problems in the company 's `` aggressively managed securities portfolio . ''

Boston Safe Deposit 's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities .

The mismatch exposed the company to a high degree of interest-rate risk ,

But he also cited concerns over the company 's mortgage exposure in the troubled New England real estate market .

Boston Co. officials declined to comment on Moody 's action or on the unit 's financial performance this year

that outside accountants had discovered evidence of significant accounting errors in the first three quarters ' results .

An accounting controversy at the end of last year forced Boston Co. to admit

The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company 's chief financial officer and treasurer .

The executives were accused of improperly deferring expenses and booking revenue early , in an effort

Mr. von Germeten , in turn , attributed the controversy to judgmental errors by accountants

the problems in the securities portfolio stem largely from positions

The company 's current management found itself `` locked into this , ''

Mexico exported an average of 1,296,800 barrels of crude oil a day at an average of $ 15.31 a barrel during 1989 's first eight months for a total of $ 4.82 billion ,

sales in the period gained 15 % , and $ 262.4 million more than originally projected at an average of $ 10 a barrel on an export platform of 1,250,000 barrels a day .

Yesterday , the retailing and financial services giant reported a 16 % drop in third-quarter earnings to $ 257.5 million , or 75 cents a share , from a restated $ 305 million , or 80 cents a share , a year earlier .

But the news was even worse for Sears 's core U.S. retailing operation , the largest in the nation .

its U.S. stores had a loss of $ 6.9 million , their first deficit for the period in more than five years .

that were somewhere between its old `` regular '' and `` sale '' prices .

they do n't intend to abandon the everyday pricing approach in the face of the poor results .

Instead , a spokesman blames the dismal third-quarter showing on `` an environment

that is being distorted by a very harsh climate for sales of durable goods , ''

which account for roughly two-thirds of Sears 's annual merchandise volume .

Sears faces an especially daunting challenge on the eve of the Christmas shopping season .

The company is highlighting more special deals in its advertising and stores ,

and it 's offering to defer finance charges on certain big-ticket items .

that they are offering goods for `` 50 % , 60 % and 70 % off . ''

Recent surveys by Leo J. Shapiro & Associates , a market research firm in Chicago , suggest

when Sears blanketed the airwaves with ads about its new pricing strategy .

who spontaneously cited lower prices as the reason for their interest in Sears

Just 5 % of the respondents mentioned brands in September , up slightly from 2 % in March .

Only 2 % of the people in September cited Sears 's `` friendly personnel . ''

which was very considerable in driving traffic in March and April ,

its total revenue rose 4.8 % to $ 13.18 billion from $ 12.57 billion a year earlier .

which includes international and credit card operations , as well as U.S. stores ,

Profit at Sears 's Allstate insurance unit fell 38 % to $ 126.1 million

which inflicted the greatest single storm damage loss in the company 's history .

reduced its third-quarter net by $ 80 million , or 23 cents a share .

Allstate is expected to absorb another big hit in the fourth quarter

Net income at Sears 's Dean Witter Financials Services group , meanwhile , rose nearly 32 % to $ 35.7 million ,

reflecting improvements in its basic stock brokerage and Discover credit card businesses .

Profit at Sears 's Coldwell Banker Real Estate Group nearly quadrupled to $ 81.2 million

In New York Stock Exchange composite trading yesterday , Sears shares closed at $ 40.50 , up 87.5 cents .

Oil imports to Japan rose 12 % in September from year-earlier levels ,

released by the government 's Ministry of International Trade and Industry .

The year-on-year rise was partly because of higher demand for petroleum products ,

that left oil companies with high inventories in the late-summer/early-FALL PERIOD .

Imports of crude from the Middle East grew 17 % from year-earlier levels ,

Southeast Asian crude imports , however , were 3.6 % higher than August .

This is in response to George Melloan 's Business World column `` The Housing Market Is a Bigger Mess

1 ) Foreclosed homes could be sold by the FHA for no down payment

or perhaps have the down payment deferred to the end of the mortgage

3 ) Develop rental agreements with exclusive purchase options for the renter .

An occupant will , in most every case , be better for the home and neighborhood than a vacant house .

The Federal Housing Administration , Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock

( because of the attractiveness of the low down payment , etc . )

Italy 's unemployment rate rose to 12 % of the labor force in July from 11.9 % in April ,

according to quarterly figures from the state statistical institute .

the number of job seekers was 2,888,000 up from 2,822,000 in April , and from 2,853,000 a year ago .

The unemployment rate was by far the highest in the southern , so-called Mezzogiorno region .

The southern unemployment rate rose to 21.3 % in July from 21.2 % in April and from 20.6 % a year earlier .

Xerox Corp. 's third-quarter net income grew 6.2 % on 7.3 % higher revenue ,

Quarter net for the business-machines and financial-services company rose to $ 155 million , or $ 1.41 a share , from $ 146 million , or $ 1.37 a share , in the year-earlier period .

In New York Stock Exchange composite trading , Xerox closed at $ 62.75 a share , up $ 1 .

Operating-profit margins slipped almost 18 % , to 4.3 % of sales ,

with competitors such as Eastman Kodak Co. faltering in copier sales ,

David T. Kearns , Xerox chairman and chief executive officer , cited the restructuring and `` strong '' cost controls for the 13 % growth in profit from business products and systems operations .

Mr. Glazer expects Xerox to experience tough sledding , though , in financial services

In the quarter , the Crum & Forster insurance unit reported $ 200 million before tax of capital gains from property and casualty operations .

The subsidiary also increased reserves by $ 140 million , however ,

For the nine months , Xerox earned $ 492 million , or $ 4.55 a share , up 5.8 % from $ 465 million , or $ 4.32 a share .

reflecting weakening auto demand after a spurt of orders for new 1990 models ,

Orders for military equipment , household appliances , machinery and other goods

Most analysts had expected a sharper decline after the steep rise in August .

that the manufacturing sector of the economy had slowed to a crawl .

But many economists pointed to a 1.8 % September rise in orders outside the volatile transportation category .

said Sally Kleinman , an economist at Manufacturers Hanover Securities Corp. in New York .

While a decline in orders for cars and civilian airplanes pulled down the orders total ,

an enormous jump in orders for heavy military equipment propped it up .

including airplanes , missiles , ships , tanks and communications equipment .

While all the numbers in the durable goods report were adjusted for seasonal fluctuations ,

that the adjustment probably did n't factor out all of the wide-ranging surge in defense orders .

Unfilled orders for durable goods rose 0.4 % in September , to $ 476.14 billion ,

where what they believe was a temporary surge in auto demand pushed up the figures-

Capital goods orders outside of the defense sector tumbled for the second month in a row ,

had it not been for a drop in civilian aircraft bookings , a category

that is showing declines only after a huge surge earlier this year .

Still , Milton Hudson , senior economic adviser at Morgan Guaranty Trust Co. in New York , said :

the evidence was pretty good of affirmative strength in the capital-goods sector .

Norfolk Southern Corp. directors authorized the railroad company to buy back as many as 45 million of its shares ,

coupled with a nearly completed earlier purchase of 20 million shares ,

The Norfolk , Va. , company has 172.2 million shares outstanding .

In a statement , Arnold B. McKinnon , chairman and chief executive officer , noted

that the new repurchase program `` should serve to enhance shareholder value . ''

the company will finance the buy-back with cash on hand , borrowing and `` cash

In composite trading on the New York Stock Exchange , Norfolk Southern shares closed at $ 37.875 , up $ 1.125 .

Still , analysts do n't expect the buy-back to significantly affect per-share earnings in the short term .

Longer term , however , the buy-back is expected to increase earnings , especially after 1990 ,

Moreover , the extensive program in effect establishes a floor for the stock price ,

Under the program , Norfolk plans to acquire shares in the open market .

Under the earlier plan , Norfolk was authorized in 1987 to buy up to 20 million shares .

John B. Curcio , 55 years old , resigned as chairman of this diesel truck manufacturer , effective upon appointment of a successor .

Last month , Mr. Curcio was succeeded by Ralph E. Reins as chief executive officer

following several quarters of lackluster or declining performance .

Richard W. Lock , retired vice president and treasurer of Owens-Illinois Inc. , was named a director of this transportation industry supplier ,

it delayed the proposed initial public offering of common stock of RMI Titanium Co .

RMI Titanium is owned jointly by USX and Quantum Chemical Corp .

Your Oct. 2 editorial `` Reding , Wrighting & Erithmatic '' on the recent `` education summit '' was like most pieces on the subject of education :

that addresses one of the most serious shortcomings of the American education system .

in commenting on many differences between American and Japanese culture ,

After a wonderfully frivolous early childhood , they are exposed to rigid discipline as soon

either fail to understand or choose to ignore is that American children , on the whole , are among the most undisciplined in the world ,

making any attempt at improvements in the mode of education potentially unsuccessful .

Unless parents and educators alike start to develop more discipline in children ,

all the worthy concern , discussions and actions will not solve the problem .

Retired Adm. William J. Crowe , former chairman of the Joint Chiefs of Staff , and Robert P. Luciano , chairman and chief executive officer of Schering-Plough Corp. , were elected directors of this securities firm .

The key U.S. and foreign annual interest rates below are a guide to general levels

The base rate on corporate loans at large U.S. money center commercial banks .

8 3/4 % high , 8 5/8 % low , 8 11/16 % near closing bid , 8 11/16 % offered .

traded among commercial banks for overnight use in amounts of $ 1 million or more .

The charge on loans to depository institutions by the New York Federal Reserve Bank .

8.45 % 30 to 44 days ; 8.25 % 45 to 68 days ; 8.30 % 69 to 89 days ; 8.125 % 90 to 119 days ; 8 % 120 to 149 days ; 7.875 % 150 to 179 days ; 7.50 % 180 to 270 days .

sold through dealers by major corporations in multiples of $ 1,000 :

8.09 % one month ; 8.09 % two months ; 8.06 % three months ; 8 % six months ; 7.94 % one year .

paid by major New York banks on primary new issues of negotiable C.D.s , usually on amounts of $ 1 million and more .

8.48 % 30 days ; 8.30 % 60 days ; 8.28 % 90 days ; 8.10 % 120 days ; 8 % 150 days ; 7.90 % 180 days .

8 11/16 % to 8 9/16 % one month ; 8 5/8 % to 8 1/2 % two months ; 8 5/8 % to 8 1/2 % three months ; 8 9/16 % to 8 7/16 % four months ; 8 1/2 % to 8 3/8 % five months ; 8 7/16 % to 8 5/16 % six months .

8 11/16 % one month ; 8 11/16 % three months ; 8 1/2 % six months ; 8 1/2 % one year .

The average of interbank offered rates for dollar deposits in the London market

Canada 13.50 % ; Germany 9 % ; Japan 4.875 % ; Switzerland 8.50 % ; Britain 15 % .

Results of the Monday , October 23 , 1989 , auction of short-term U.S. government bills ,

sold at a discount from face value in units of $ 10,000 to $ 1 million :

Posted yields on 30-year mortgage commitments for delivery within 30 days .

9.78 % , standard conventional fixed-rate mortgages ; 7.875 % , 2 % rate capped one-year adjustable rate mortgages .

Posted yields on 30 year mortgage commitments for delivery within 30 days

9.75 % , standard conventional fixed-rate mortgages ; 8.70 % , 6/2 rate capped one-year adjustable rate mortgages .

Annualized average rate of return after expenses for the past 30 days ; not a forecast of future returns .

Roy E. Parrott , the company 's president and chief operating officer since Sept. 1 , was named to its board .

Japan has climbed up from the ashes of World War II and a gross national product of about $ 800 per capita

Now this remarkable economic growth seems to be coming to an end

because the government has not converted itself into a modern , democratic , `` developed nation '' mode of operation .

when Japan joined the $ 10,000 per capita GNP club of the advanced countries ,

The government built ports , bridges , highways , schools , hospitals and railways .

The standard of living has increased steadily over the past 40 years ;

The people have given their leading and only credible political party , the Liberal Democratic Party , clear and uninterrupted power for those 40 years .

The LDP won by a landslide in the last election , in July 1986 .

Its government still wants to sit in the driver 's seat , set the speed , step on the gas , apply the brakes and steer , with 120 million people in the back seat .

In a modern system , the government 's role is to give the people as much choice as possible

It also allows people to buy the best and the cheapest goods from anywhere in the world .

The Ministry of Agriculture and Fishery actually is a ministry for farmers and fishermen instead of a ministry of provisions .

The Ministry of Health and Welfare is a ministry of doctors and pharmaceutical companies rather than an organization

The Ministry of Education is nothing but a cartel for licensed teachers ,

The Ministry of Construction spreads concrete throughout the country

that Japan 's paved roadway per capita is the longest in the world ,

The Ministry of Transportation serves the industry , certainly not the passengers

Instead , it seems to be using foreign pressure and even the trade conflict

All this illustrates that Japanese ministries still have a `` provider '' mentality ;

because the government provided job stability and growing paychecks .

because the opposition parties are so often opposed to whatever LDP does

particularly difficult bills are passed in the absence of the opposition parties .

A recent example is the 3 % consumption tax on all commercial activities .

most people would have favored an indirect tax , like the consumption tax .

They were frustrated by the longer queues at the cashier and the small coins

All of a sudden , prices were no longer in denominations of 100 or 200 .

Money , such as in Recruit 's political donations , and women , as in the cases of Prime Minister Sosuke Uno and Secretary General Tokuo Yamashita , seldom have caused political scandals in Japan .

In the recent Upper House and Tokyo metropolitan congressional elections ,

It is difficult to analyze how much of their anger was due to Recruit , the sex scandals , or the one-yen coins in their purses ,

to reform the government from a provider , developing-country vanguard role to that of a modern , industrialized nation

One party could stand for consumer interests , small government , free trade and globalism

to put Japan clearly among the most developed and open countries .

The other party could continue on the traditional track of the LDP ,

representing the manufacturers ' preference for larger government , control , regulation and protectionism .

In the current mood of the Japanese people , journalists and even some industrialists , giving power to the Socialists might be good for the LDP ,

that such a humble political experiment could cause a global tidal wave of shocks in real-estate and financial markets .

belonging to De Beers Consolidated Mines Ltd. , the world 's diamond kingpins ,

Last year , 43 million tons of desert were moved from one dune to another

wedged between shifting dunes and pounding waves at the world 's most inhospitable diamond dig ,

then in the cold surf of the ocean , and finally in the coarse sands of the desert --

Months after railway worker Zacharias Lewala first picked up a diamond from the sand in 1908 ,

-- about 200 miles north from the Orange River and 60 miles inland from the Atlantic --

a restricted area , a designation normally reserved for military operations .

they lost Namibia to South Africa and the diamonds to Ernest Oppenheimer , patriarch of Anglo American Corp. and De Beers .

The mining zone has thus remained one of the most desolate places in Africa .

Oranjemund , the mine headquarters , is a lonely corporate oasis of 9,000 residents .

and gemsbok , hardy antelope with long straight horns , wander in from the desert

On most days , the desert 's heat and the cool of the ocean combine

Still , miners from all parts of Namibia as well as professional staff from De Beers 's head offices in South Africa and London keep coming .

There are six video rental shops , three restaurants , one cinema and 34 sports and recreation clubs for everything from cricket to lawn bowling .

the mine may be partially nationalized by the new Namibian government

to extend the mine 's productive life for another 25 years , from the current estimate of 10 .

that look as though they came from the Star Wars desert-battle scene

Mechanized vacuum cleaners probe the sand like giant anteaters ;

a whirring ferris wheellike excavator , with buckets instead of seats , chews through layers of compacted sand ;

Then there is the artifical sea wall , 600 yards long and 60 yards thick ,

it receives around-the-clock maintainence against the battering waves .

For these workers at the bottom of the mine 's pay scale , this is usually enough

Still , employees do occasionally try to smuggle out a gem or two .

A food caterer stashed stones in the false bottom of a milk pail .

None made it past the body searches and X-rays of mine security .

DISASTER STATES are n't jumping to raise taxes for relief and recovery .

some officials talked of perhaps adding a penny to the state gasoline tax or raising property taxes .

Legislators are talking about temporary rises in sales or gasoline taxes ,

and the state constitution makes increasing taxes and spending very difficult .

it will reimburse the taxpayer for the stop-payment charge on the original .

Reimbursement claims must be filed with the IRS district or service-center director

and have an old $ 175,000 mortgage exempt from the new limit on mortgage-interest deductions .

the Blandings want to deduct home-mortgage interest on the $ 200,000 loan .

a court let the seller in that old case treat this as the sale of one residence .

REPORTS OF PAYMENTS to independent contractors for services must be filed by businesses ,

but do n't bet that contractors ' unreported income will be detected that way .

So he has arranged for a university foundation to set up a scholarship fund for undergraduate engineering students .

He plans to tell clients to pay certain fees directly to the foundation instead of to him ;

`` a fundamental principle '' is that income must be taxed to whoever earns it .

The rule goes back at least as far as a 1930 Supreme Court decision ,

Seattle 's license fees for adult peep shows vary from those for other coin-operated amusements

the ninth-circuit appeals court holds for Acorn Investments Inc .

Blue-chip advertisers have plenty of complaints about the magazines

ranging from inadequate consumer research to ad `` clutter '' and a seemingly unchecked proliferation of special interest magazines .

Criticism from such big advertisers as Estee Lauder Inc. , Colgate-Palmolive Co. and Seagram Co. put a damper on the euphoria at the American Magazine Conference here .

The conference opened Monday with glowing reports about consumer magazines ' growth in circulation and advertising revenue in the past year .

`` Magazines are not providing us in-depth information on circulation , ''

said Edgar Bronfman Jr. , president and chief operating officer of Seagram , in a panel discussion .

advertisers lack detailed demographic and geographic breakdowns of magazines ' audiences .

Leonard Lauder , president and chief executive officer of Estee Lauder , said

consumer magazines are suffering from what he called `` niche-itis , '' the increasing number of magazines

We are constantly faced with deciding which partnerships { with magazines } we can keep . ''

`` There 's probably even a magazine for left-handed golfers . . .

Mr. Lauder also attacked what he sees as the wide imitation of Elle , a fashion magazine

`` Readers do n't want to face all those ad pages at the front of a magazine , ''

said Steve Burzon , publisher of Meredith Corp. 's Metropolitan Home .

And Tina Brown , editor of Conde Nast Publications Inc. 's Vanity Fair , said

advertisers are frequently asked to take advertising positions in the back of her magazine

Wall Street securities giant Salomon Inc. posted a big , unexpected earnings gain in the third quarter ,

buoyed by its securities trading and investment banking activities .

net income soared to $ 177 million , or $ 1.28 a share , from $ 65 million , or 38 cents a share , a year earlier .

Revenue more than doubled to $ 2.62 billion from $ 1.29 billion .

its stock , bond and foreign exchange trading , as well as its investment banking operations , were mostly responsible for the earnings jump .

to close at $ 23.25 a share in New York Stock Exchange composite trading .

says Lawrence Eckenfelder , an analyst at Prudential-Bache Securities .

In the first quarter , Salomon had a record loss of $ 28 million on revenue of $ 1.54 billion .

But in the second quarter , Salomon posted a record $ 253 million net on revenue of $ 2.33 billion .

For the real estate industry , a watchword for the 1990s will be buy , more than build .

to be on the lips of the more than 3,000 developers , pension-fund advisers and real estate financiers

With the market overbuilt , builders are finding limited opportunities and increased risks .

Developers and money managers are looking for bargains among the thousands of financially troubled properties around the country .

Real estate professionals now often bill themselves as `` turnaround experts '' and `` workout specialists . ''

Conference attendees are expected to be buzzing about the workings of the recently formed Resolution Trust Corp. , a federal agency

charged with disposing of an estimated $ 200 billion of real estate

Developers are also eyeing the real estate portfolios of major corporations .

Some plan to pursue foreign development ventures , mostly in Europe .

And other developers may shift from commercial to residential development in the U.S .

`` There are n't as many economically viable alternatives for real estate developers in this country as 10 years ago , ''

Developers are also forming more joint ventures with pension funds and insurance companies

says Smedes York , ULI president and president of York Properties Inc. , of Raleigh , N.C .

Real estate firms are also using their alliances with financial institutions

`` Why should you beat your brains out fighting the environmentalists , the neighborhood groups , dealing with traffic mitigation , sewers and fighting city hall ,

then try to convince a lender to lend you money in an overbuilt market

says Jack Rodman , managing partner of the Los Angeles office of Kenneth Leventhal Inc. a national accounting firm .

The level of interest in the RTC 's properties has been greater than expected ,

Finding pension funds and other sources willing to invest is a high priority .

Quips David Shulman , director of real estate research for Salomon Brothers Inc. :

`` A theme of the Urban Land conference will be `take a pension fund manager to lunch . ' ''

David Shaffer was named to the new post of executive vice president of the Maxwell Macmillan group of this communications giant .

Mr. Shaffer takes primary responsibility for the electronic and technical-services group .

He had been group vice president of the electronic-publishing group .

Also , Sheldon Aboff , formerly a vice president at Maxwell , was named group vice president with responsibility for various electronic and publishing-group companies .

Soichiro Honda 's picture now hangs with Henry Ford 's in the U.S . Automotive Hall of Fame ,

By 1995 it will be planted more often than any other apple tree ,

according to a recent survey of six apple-industry sages by Washington State University horticulturist Robert Norton .

the Fuji could someday tumble the Red Delicious from the top of America 's apple heap .

Compared to the Red Delicious , the exemplar of apple pulchritude ,

-- generally smaller , less-perfectly shaped , greenish , with tinges of red .

says Duane Greene , a University of Massachusetts pomologist , or apple scholar .

Mr. Auvil , razor sharp at 83 , has picked and packed a zillion pecks of apples over the past 65 years .

He is known as the father of the U.S.-grown Granny Smith , a radically different apple

as the grand old maverick of American apples plays the role of Hiroshi Appleseed .

-- with the first trees appearing in 1872 in an orchard near Peru , Iowa ,

More than twice as many Red Delicious apples are grown as the Golden variety , America 's No . 2 apple .

looking ruefully at big boxes of just-picked Red Delicious next to his barn .

Besides rotten prices , he has been hit recently by hail , a bark-nibbling horde of mice , fungi and bugs .

Some 500 insects and 150 diseases wiggle , chew and romp through growers ' nightmares ,

including maggots , mites , mildew , thrips , black rot and the flat-headed borer .

his $ 2,000 rented bees might buzz off to the neighbors ' orchards

they can protect themselves against the price vagaries of any one variety

-- into the recently imported Gala , a sweet New Zealand native ; the Esopus Spitzenburg , reportedly Thomas Jefferson 's favorite apple ; disease-resistant kinds like the Liberty .

tramping through his 100-acre Poverty Lane Orchard on a crisp autumn day recently .

and stores are expanding shelf space for unconventional , but tastier , and often pricier , apples .

says Chuck Tryon , perishables director for Super Valu Inc. , a Minneapolis supermarket chain and food distributor .

The Fuji is a product of meticulous Japanese pomological engineering ,

which fostered it 50 years ago at a government research orchard .

Now the best of them age as gracefully as Grannies , the industry 's gold standard for storability .

In the cornucopia of go-go apples , the Fuji 's track record stands out :

During the past 15 years , it has gone from almost zilch to some 50 % of Japan 's market .

says David Lane , a scientist at a Canadian horticulture research center in Summerland , British Columbia ,

and so apples are more of a delicacy there than a big food commodity .

that this year Americans will eat about 40 % more fresh apples per capita than the Japanese .

`` I expect to see the demand exceed supply for Fujis for the next 10 to 15 years , ''

Washington Red Delicious , by the way , are wholesaling for less than $ 10 a box these days .

as striking a blow against the perversion of U.S. apples by supermarkets .

After all , until the 1950s even the Red Delicious was a firm , delectable morsel .

and to satisfy supermarket chains ' demands of long-term storage ,

-- they are almost a year old , probably equal to about 106 in human years .

and growing it in U.S. areas with chilly autumns may be tricky .

Moreover , the frumpy Fuji must compete with an increasingly dolledup Delicious .

the `` big boss '' at a supermarket chain even rejected his Red Delicious recently

The state attorney general 's office filed suit against five New York brokerage firms ,

charging them with responsibility for much of a $ 200 million loss

The suit sets the firms ' liability at more than $ 185 million .

The firms are Morgan Stanley & Co. , Salomon Brothers Inc. , County Natwest Government Securities Inc. , Greenwich Capital Markets Inc. and Goldman , Sachs & Co .

On Friday , the firms filed a suit against West Virginia in New York state court

that was suffered by West Virginia 's consolidated investment pool .

The pool invested idle cash for many state agencies and local governments .

that brokers encouraged members of the treasurer 's office to engage in high-volume , high-risk transactions

the government issued $ 394 billion of new direct loans and an additional $ 756 billion of new primary loan guarantees .

These figures omit secondary guarantees , deposit insurance , and the activities of Government-Sponsored Enterprises

Since the 1950s , federal lending has experienced extraordinary growth in credit volume , subsidy rates , and policy applications ,

spurred on by the growth of government in general and budget gimmicks and deceptive management in particular .

many of these obligations do n't show up as part of the federal deficit .

and the program has been rocked by allegations of fraud and mismanagement .

losses over the next three years are expected to exceed $ 20 billion .

Defaults on Veterans Affairs loan guarantees have quadrupled in the past eight years .

that defaults in Federal Housing Administration guarantees were five times as high

because the FHA has about $ 300 billion in obligations outstanding

and had previously been considered one of the most financially secure credit programs .

subsidizing agriculture , small business , exporters , defense , energy , transportation and others ,

The federal government holds $ 222 billion in direct loans outstanding

( Secondary guarantees of pools of FHA- and VA-backed loans by the agency

the principal causes of the current crisis are internal and generic to all programs .

Thus , subsidized loans tend to turn into giveaway programs , with increasing subsidy and default rates over time .

For example , legal restrictions on interstate banking once inhibited the supply of credit to the agricultural sector .

However , this in no way justifies the huge government subsidies and losses on such loans .

For example , student loans currently attempt to subsidize college attendance and mitigate problems

that students ' future earnings are not accepted as collateral .

High default rates , a low interest rate , and government coverage of all interest costs

But it would also encourage lenders to choose more creditworthy customers ,

For example , the Small Business Administration has had reasonable success

in reducing both guarantee rates and default rates in its Preferred Lenders ' Program .

In addition , it is often possible to obtain a new government loan

Simple policy prescriptions in this case would be to improve debt collection

3 . Record the true costs of credit programs in the federal budget .

Predictably , guarantees outstanding have risen by $ 130 billion since 1985 ,

The true budgetary cost of a credit subsidy is the discounted value of the net costs to government .

as late as 1987 , the Export-Import Bank held in its portfolio at face value loans

More seriously , FmHA has carried several billion dollars of defaulted loans at face value .

Until GAO 's recent audit , FHA books had not been subject to a complete external audit in 15 years .

The administration of federal credit should closely parallel private lending practices ,

including the development of a loan loss reserve and regular outside audits .

Establishing these practices would permit earlier identification of emerging financial crises ,

provide better information for loan sales and budgeting decisions ,

would provide a more limited , but clearer , safer and ultimately more useful role for government as a lender .

credit programs will continue to be a large-scale , high-risk proposition for taxpayers .

Malcolm S. Todt was named vice president and senior officer in charge of equipment leasing to municipalities , a new effort of this bond insurer .

Mr. Todt had been vice president and treasurer of Insilco Corp .

President Bush is considering casting a line-item veto as a test

Mr. Bush has long campaigned for passage of a bill or a constitutional amendment

which would enable him to kill individual items in a big spending bill

But some analysts , particularly conservative legal scholars , have urged Mr. Bush not to wait for explicit authorization but simply to assert

Such an assertion most likely would bring about a court challenge from Congress

confirming comments made this week by Vice President Dan Quayle ,

that exercising a test line-item veto is n't a `` top initiative '' on the president 's agenda

Harris Ravine , executive vice president of customer satisfaction , was named executive vice president , finance and administration of this maker of data storage equipment .

that could help break an impasse in the current round of multilateral trade negotiations .

to scrap or reduce a host of trade-distorting subsidies on farm products .

The U.S. plan also would ease the transition to freer agriculture trade

by allowing some countries to convert non-tariff barriers into tariffs

that , together with existing tariffs , then would be phased out over 10 years .

who along with Agriculture Secretary Clayton Yeutter unveiled the proposal ,

it will gain considerable support from the U.S. 's trading partners .

that called for eliminating all farm-trade barriers by the year 2000 ,

the new U.S. proposal would n't `` put farmers out of business ''

but would only encourage them to `` grow what the markets desire instead of what the government wants . ''

that the initiative will spur members of the General Agreement on Tariffs and Trade to reach agreement on new trade rules

before their current negotiating round concludes in December 1990 .

including predictable and clear rules and equality in the treatment of foreign and domestic service companies .

during which GATT members could use a combination of tariffs and quotas

the new package calls for the elimination of only the most tradedistorting ones .

Less objectionable ones would be subject only to some restraints ,

and others with a `` relatively minor trade impact '' would be allowed to continue under certain conditions .

helped by a gain from a lawsuit settlement and continued growth overseas ,

climbed to $ 551 million , or $ 1.66 a share , from $ 400 million , or $ 1.18 a share , a year earlier .

Per-share figures have been adjusted for a 2-for-1 stock split effective Oct. 20 .

Earnings at the consumer-products giant were boosted by a gain of $ 125 million , or about 25 cents a share ,

stemming from last month 's settlement of litigation with three of P & G 's competitors over patents on P & G 's Duncan Hines cookies .

P & G 's earnings were close to analysts ' predictions of about $ 1.40 a share for the quarter .

Wall Street had expected a modest rise in the company 's domestic sales and earnings , and more substantial increases in overseas results .

Unit volume , or amount of products shipped , rose about 11 % in the international segment ,

with P & G continuing to win market share in Japan 's diaper and detergent markets .

partly because the company decided to shift more promotions and sales for health and beauty products to the fiscal second quarter .

the shift will mean P & G 's sales growth in the second quarter will be `` in the double digits . ''

Also slowing growth in the U.S. were lackluster results for P & G 's cooking oils ,

Last year 's drought in the Midwest prompted retailers to stock up on oils ahead of anticipated price increases ,

For fiscal 1990 , analysts expect P & G 's sales to continue to grow ,

Lynne Hyman , vice president of equity research for First Boston Corp. , expects P & G to post net of about $ 4.20 a share , on a post-split basis .

`` If he does to the domestic operations what he did internationally , ''

`` this company will earn $ 6 or $ 7 a share in a few years . ''

Twenty-five years later , the Voting Rights Act has been transformed by the courts and the Justice Department into a program of racial gerrymandering

have required state legislatures and municipal governments to create the maximum number of `` safe '' minority election districts

where minorities form between 65 % and 80 % of the voting population .

to create `` safe '' white electoral districts in municipalities

few municipal and state government plans achieve preclearance by the Justice Department

unless they carve out as many solidly minority districts as possible .

is that members of minority groups get elected to public office with reasonable frequency .

blacks constitute 12 % of the population , but fewer than 2 % of elected leaders .

Far from promoting a commonality of interests among black , white , Hispanic and other minority voters ,

that race is the voter 's and the candidate 's most important trait .

and that only a white politician can govern on behalf of a white one .

Examples of the divisive effects of racial gerrymandering can be seen in two cities

every other municipality and state in the country will face this issue .

Racial gerrymandering has been a familiar policy in New York City since 1970 ,

that the new electoral boundaries would split a neighborhood of Hasidic Jews into two different districts .

a redistricting panel will redraw the City Council district lines .

in response to the expectations of the Justice Department and the commission 's own commitment

Blacks and Hispanics currently make up 38 % of the city 's population

to accord blacks and Hispanics `` the fullest opportunity for representation . ''

In this connection , it is important to note that several members of New York 's sitting City Council represent heterogeneous districts

that bring together sizable black , Hispanic , and non-Hispanic white populations

-- Carolyn Maloney 's 8th district in northern Manhattan and the south Bronx and Susan Alter 's 25th district in Brooklyn , for example .

these political leaders have had to listen to all the voices in their district and devise public policies

that the relevant issue is not race , but rather housing , crime prevention or education .

The unusual situation in Birmingham vividly illustrates the divisive consequences

that the city abandon at-large voting for the nine member City Council

because in city-wide elections only black candidates or white candidates

but in June the Justice Department approved a districting plan for Birmingham

that carves out three white-majority districts and six black-majority districts .

Richard Arrington , Birmingham 's black mayor , lamented the consequences .

whose views are more extreme , white and black , on racial issues . ''

Two hundred years ago , critics of the new United States Constitution warned

A small farmer and a seaport merchant could not be represented by the same spokesman ,

But James Madison refuted that argument in one of the most celebrated political treatises

that a representative 's duty was to speak not for the narrow interests of one group but instead for the common good .

Large , heterogeneous election districts would encourage good government ,

because a representative would be compelled to serve the interests of all his constituents and be servile to none .

Madison 's noble and unifying vision of the representative still can guide us .

that all Americans , of every race and ethnic background , have common interests

Ms. McCaughey is a constitutional scholar at the Center for the Study of the Presidency in New York .

The Justice Department has distributed these new guidelines for U.S . Attorneys

Under { RICO } , the government may seek a temporary restraining order

including clients , vendors , banks , investors , creditors , dependents , and others .

that pre-trial freezing of assets is tantamount to a seizure of property without due process .

In order to ensure that the rights of all interested parties are protected ,

( It should be noted that these requirements are in addition to any other existing requirements , such as review by the Asset Forfeiture Office . ) :

1 . As part of the approval process for RICO prosecutions , the prosecutor must submit any proposed forfeiture TRO for review by the Organized Crime and Racketeering Section .

are not likely to preserve the assets for forfeiture in the event of a conviction .

that forfeiture and the TRO would have on innocent third parties ,

the Section will consider the nature and severity of the offense ;

the government 's policy is not to seek the fullest forfeiture permissible under the law

where that forfeiture would be disproportionate to the defendant 's crime .

the prosecutor is required , at the earliest appropriate time , to state publicly

that the government 's request for a TRO , and eventual forfeiture , is made in full recognition of the rights of third parties

the government will not seek to disrupt the normal , legitimate business activities of the defendant ;

will not seek through use of the relation-back doctrine to take from third parties assets

either at the time the indictment is returned or , at the latest , at the first proceeding before the court

Sales of North American-built cars and trucks plunged 20.5 % in mid-October from a year earlier ,

as domestic manufacturers paid the price for heavy incentives earlier this year .

said Ben Kaye , sales manager of Bob Brest Auto World in Lynn , Mass. ,

This trend appears to be especially true at General Motors Corp. ,

All of the Big Three suffered in the just-ended period , however ,

The seasonal adjusted annual selling rate was six million vehicles , a small improvement from the 5.8 million rate of early October , but a big drop from the 7.1 million rate a year ago .

Sales of domestically made trucks also continued to be sluggish in mid-October ,

The Big Three auto makers already have slashed fourth-quarter production plans 10.4 % below year-ago levels ,

Industry analyst John H. Qualls , a vice president with Hill & Knowlton in St. Louis , forecasts

that domestic auto makers will have a 93-day supply of cars at the end of the year ,

even if car sales improve to a 6.5 million vehicle rate for the quarter .

Ford Motor Co. reported a 21.2 % drop in sales of domestic-made cars to 46,995 and a 24.2 % drop in domestic trucks to 31,143 .

The earlier use of incentives depleted the market of `` scavengers '' for bargain-basement 1989 cars ,

Town & Country Ford in Charlotte , N.C. , still needs to move about 850 1989 cars and trucks .

The No . 3 U.S. auto maker had a 23.7 % plunge in car sales to 22,336 and a 17.5 % drop in truck sales to 22,925 ,

which continues to have short supplies of domestically made Accords ,

saw its sales of North American-built cars fall 14.1 % to 8,355 .

But sales of domestic cars and trucks at Nissan Motor Corp. rose 26.1 % to 5,651 .

A Nissan spokesman attributed the increase to the use of incentives this year and not a year ago and to higher fleet sales .

x-There were 9 selling days in the most recent period and 9 a year earlier .

Percentage differences based on daily sales rate rather than sales volume .

Short interest in Nasdaq over-the-counter stocks rose 6 % as of mid-October , its biggest jump since 6.3 % last April .

The most recent OTC short interest statistics were compiled Oct. 13 , the day

the Nasdaq composite did continue to fall for two days after the initial plunge .

reported by brokerage and securities clearing firms to the National Association of Securities Dealers

Generally , it takes five business days to transfer stock and to take the other steps

The total short interest in Nasdaq stocks as of mid-October was 237.1 million shares , up from 223.7 million in September but well below the record level of 279 million shares

The sharp rise in OTC short interest compares with the 4.2 % decline in short interest on the New York Stock Exchange and the 3 % rise on the American Stock Exchange during the September-October period .

Among 2,412 of the largest OTC issues , short interest rose to 196.8 million shares , from 185.7 million in 2,379 stocks in September .

Big stocks with large short interest gains as of Oct. 13 included First Executive , Intel , Campeau and LIN Broadcasting .

Short interest in First Executive , an insurance issue , rose 55 % to 3.8 million .

of being the OTC stock with the biggest short interest position on Nasdaq .

First Executive and troubled Valley National Corp. of Arizona were next in line .

In addition , changes in short interest in some stocks may be caused by arbitrage .

For example , an investor may seek to profit during some takeover situations

Short interest in the American depositary receipts of Jaguar , the target of both Ford Motor and General Motors , more than doubled .

included Adobe Systems , Class A shares of Tele-Communications and takeover targets Lyphomed and Jerrico .

the approximately two-thirds , and generally biggest , Nasdaq stocks

Short interest in 1,327 non-NMS securities totaled 40.3 million shares ,

compared with almost 38 million shares in 1,310 issues in September .

The October short interest represents 1.04 days of average daily trading volume in the smaller stocks in the system for the reporting period ,

Among bigger OTC stocks , the figures represent 2.05 days of average daily volume ,

in which a short interest position of at least 50,000 shares existed as of Oct. 13

or in which there was a short position change of at least 25,000 shares since Sept. 15

What defeated General Aoun was not only the weight of the Syrian army .

Like Lebanon , and however unfairly , Israel is regarded by the Arab world as a colonial aberration .

Its best hope of acceptance by its neighbours lies in reaching a settlement with the Palestinians .

In Greater Israel more than half the children under six are Muslims .

to perpetual war with the Muslims in their midst , and so to the internal erosion of their state .

Unlike the Maronites , Israel 's Jews will not let themselves become the weakest force in a system of private armies ;

Probably the most clear-cut Soviet violation , for example , is the Krasnoyarsk radar .

-- `` Arms Control Reality , '' Nov. 20 , 1984 , the first of some 20 Journal editorials

-- `` Whether the installation is for early warning or space track ,

`` Thus we judge it to be not a violation of the ABM treaty at this time . ''

The delegation included a reporter from the New York Times , aides to Sen. Edward M. Kennedy and Rep. Les AuCoin , and Natural Resources Defense Council staff members .

-- The U.S.S.R. has taken unprecedented unilateral measures of openness ,

to inspect the building site of the Krasnoyarsk radar as well as radar vans in the areas of Gomel and Moscow ,

that there are no violations of the ABM treaty of 1972 on the part of the Soviet Union .

-- Letter from Eduard Shevardnadze to U.N. Secretary-General Perez de Cuellar ,

-- The construction of this station equal in size to the Egyptian pyramids constituted ,

to receive confirmation of the Krasnoyarsk violation from the Soviets ,

something intriguing is going on in the policy chambers of the Politburo .

As it bids for new agreements , new loans and indeed admission to the civilized world ,

they need to start telling the truth about more than the totally obvious .

Our own test of `` glasnost 's '' authenticity would be a Soviet decision

to open itself to a complete international examination of one of the most troubling mysteries in U.S.-Soviet relations

-- the reported 1979 anthrax outbreak at a Soviet military facility in Sverdlovsk .

The U.S. government has never waivered in its assessment of this incident as an accident at a biological weapons facility there , and hence a violation of the 1972 Biological Weapons Convention .

It also was detailed in Congressional testimony this past February :

An explosion at the Microbiology and Virology Institute in Sverdlovsk released anthrax germs

Since Mr. Shevardnadze did not address this topic before the Supreme Soviet ,

And just as we did not believe the tendentious claims of the Congressmen and arms-control advocates

we are in no way persuaded by the assent to the tainted-meat theory by a U.S. team of scientists

The Soviets ' explanation is that the anthrax came from one lot of animal feed

that `` yellow rain '' attacks on the Laotian Hmong were in fact the result of fecal showers by giant bees --

that Mr. Gorbachev or any of his emissaries yet deserve to have the West take their word for it .

Sverdlovsk is a large gray cloud over glasnost and indeed over the legitimacy of the arms-control process itself .

The U.S. government 's Sverdlovsk complaint , as with Krasnoyarsk , is no mere political posturing .

Biological weapons violations have figured little in political debate ,

and indeed have not been pressed vigorously enough by the U.S. government .

or , alternatively , that would give U.S. specialists reasonable confidence

Mr. Shevardnadze was bidding for with his confessions on Monday .

it offered to buy $ 500 million of its convertible preferred stock from the Manville Personal Injury Settlement Trust in a move

and reduce the potential number of Manville shares outstanding .

it made the offer within the past several weeks as part of an effort

`` We are considering that offer along with all other alternatives , ''

The trust also owns half of Manville 's 48 million common shares outstanding .

Based on Manville 's closing price yesterday of $ 9.25 a share ,

Manville 's offer would purchase about 5.4 million of its preferred shares , or about 75 % of the trust 's preferred stock holding .

the trust is supposed to receive $ 2.5 billion over its 27-year life .

As of June 30 , it had settled about 15,000 of 81,000 claims filed

and its unpaid claims totaled $ 136 million , a large portion of its $ 268 million in cash and marketable securities .

Since most of its assets are tied to Manville , a forest and building products concern ,

to allow Manville to `` reflect a more typical corporate ownership and financial structure . ''

A Manville spokesman would n't elaborate on the proposed changes .

Northeast Utilities raised its bid for Public Service Co. of New Hampshire ,

which was supported by PS of New Hampshire 's official shareholder committee ,

is a prelude to what is expected to be a round of higher bids by the other groups

trying to acquire the company , the largest utility in New Hampshire .

Some of the three other bidding groups are expected to increase their offers tomorrow , a date

Under the new Northeast Utilities plan , it would pay $ 1.65 billion in cash to creditors

while unsecured creditors would receive only principal and interest accrued

before PS of New Hampshire filed for Bankruptcy Code protection in January

equity holders would receive up to $ 500 million in cash , preferred stock and new 10-year Seabrook bonds .

that rate increases would be limited to 5.5 % annually for seven years .

Its previous proposal had conditioned rate limits on Seabrook operations and other contingencies .

the NU plan provides the best recovery available '' to PS of New Hampshire 's equity holders .

Officials of PS of New Hampshire could n't be reached for comment .

That plan would leave existing preferred shareholders with at least a 41 % stake

New England Electric System , Westborough , Mass. , has proposed buying the company for $ 2 billion as part of a plan

that would require rate increases of only 4.8 % annually for seven years .

The other bidder is United Illuminating Co. , New Haven , Conn. , with a bid

to assist in the recovery from Hurricane Hugo and the California earthquake .

The 321-99 roll call vote reflected broad support for the disaster assistance ,

but the cost to the Treasury is sure to aggravate budget pressures this year and next under the Gramm-Rudman deficit reduction law .

the increased appropriations will widen the fiscal 1990 deficit by at least $ 1.44 billion

unless offsetting spending cuts or new revenues are found by Congress .

and the issue forced a confrontation between the Appropriations Committee leadership and Budget Committee Chairman Leon Panetta ,

whose California district was at the center of the earthquake last week .

`` We do not intend to hide these costs from the American people . ''

The $ 2.85 billion package incorporates $ 500 million for low-interest disaster loans , $ 1 billion in highway construction funds , and $ 1.35 billion

bringing the total for the two disasters to nearly $ 4 billion in unanticipated spending .

Within the appropriations process , the situation is even more difficult

by requiring it to put up more matching funds for emergency highway assistance

that the new funding will be counted against a separate $ 185 million in federal highway funds

it would expect to receive under its normal allocation this year .

Also , the high price of San Francisco real estate puts the state at odds with federal regulations

that the cap per household be lifted to $ 500,000 from $ 100,000

but both the White House and Congress appear most anxious to speed final approval before tonight 's deadline .

and lifting the ceiling on total Small Business Administration loans to $ 1.8 billion

as a House-Senate conference approved a nearly $ 8.5 billion fiscal 1990 military construction bill ,

and making severe cuts from Pentagon requests for installations abroad .

and projects in South Korea are cut to $ 13.6 million , or less than a sixth of the administration 's request .

An estimated $ 38.9 million was set aside for military installations in the home state of North Carolina Rep. W.G . Hefner , the House chairman .

represented by his Senate counterpart and fellow Democrat , Sen. James Sasser .

Texas and California are traditionally powerful within the conference ,

but equally striking is the dominance of Alaska , Pennsylvania and West Virginia

because of their power elsewhere in the appropriations process .

No individual illustrated this mix of power more yesterday than Sen. Daniel Inouye

In the final trading , the House was insistent on setting aside $ 500 million

to move $ 400,000 from the Air Force to the Bureau of Indian Affairs

Meanwhile , House-Senate negotiators have tentatively agreed on a $ 3.18 billion anti-drug and anti-crime intitiative ,

A formal House-Senate conference is expected to ratify the accord later this week .

that federal Judge David Sentelle recently called a `` monster . ''

Justice makes it clear that the law currently holds too many incentives for abuse by prosecutors .

The text of the `` new policy '' guidelines from the Criminal Division are reprinted nearby .

that Justice 's prosecutions of Drexel Burnham Lambert , Michael Milken and Princeton/Newport violated notions of fundamental fairness .

This amounts to an extraordinary repudiation of the tenure of New York mayoral candidate and former U.S. Attorney Rudolph Giuliani ,

who was more inclined to gathering scalps than understanding markets .

The new guidelines limit the pretrial forfeitures of assets of RICOed defendants and their investors , clients , bankers and others .

prohibiting Princeton/Newport-like tax cases from masquerading as RICO cases .

The forfeiture memo cited `` considerable criticism in the press ,

that pre-trial freezing of assets is tantamount to a seizure of property

if there are `` less intrusive '' alternatives , such as bonds ,

and in any case not to seek forfeitures `` disproportionate to the defendant 's crime . ''

These changes come a tad late for Princeton/Newport , the first RICOed securities firm .

after the government demanded a huge pre-trial asset forfeiture .

for the firm , the liquidation was sentence first , verdict later .

Prosecutors wanted $ 23.8 million in forfeiture for alleged tax fraud of some $ 400,000 .

The experience of Princeton/Newport and initiation of other RICO-forfeiture cases against legitimate businesses taught Drexel

So after all the prosecutorial hoopla no one has established what , if anything , Drexel did wrong .

Justice has finally recognized its employees ' abuses , thanks largely to the demands for reform by former U.S. attorney in Washington Joseph diGenova ,

only if someone at Justice is willing and able to supervise hyperactive prosecutors .

Judge Sentelle , of the appeals court in Washington , made this point at a Cato Institute conference last week in a remarkable speech

What now for Princeton/Newport officials , Drexel and Mr. Milken ?

that only the complete repeal of RICO can guarantee an end to injustices in its name .

which CBS Inc. had hoped would emerge as one of the few bright spots in its otherwise lackluster prime-time schedule ,

which centers on a mailroom clerk-turned agent at a Hollywood talent agency ,

to follow `` Murphy Brown , '' a situation comedy about a television news magazine ,

`` Teddy Z '' was boosted by favorable reviews and a network-wide promotional tie-in contest with K mart Corp .

produced by the television unit of Columbia Pictures Entertainment Inc. ,

Worse , every week it suffers audience drop-off from `` Murphy Brown ''

said John Sisk , senior vice president at J. Walter Thompson Co. , a unit of WPP Group PLC .

Last week , `` Murphy Brown '' was viewed by 14.1 % of the available television households ,

Creator Hugh Wilson , for example , included the lead character 's Greek family in the cast ,

the show will increasingly highlight the talent agency and the business

`` We 're making adjustments on the show , yes , but nothing radical , ''

`` But we hope to keep a balance between the office and the family . ''

Prices of long-term Treasury bonds moved inversely to the stock market

But the shaky economic outlook and the volatile stock market forced the dollar lower against major currencies .

The bond market got an early boost from the opening-hour sell-off in stocks .

That rout was triggered by UAL Corp. 's announcement late Monday

The 80-point decline in the Dow Jones Industrial Average during the morning trading session touched off a flight to safety

that saw investors shifting assets from stocks to Treasury bonds .

At its strongest , the Treasury 's benchmark 30-year bond rose more than a point , or more than $ 10 for each $ 1,000 face amount .

As the stock market recovered some of its losses later in the day ,

the combination of a second consecutive decline in monthly durable-goods orders and lackluster mid-October auto sales helped prop up the Treasury market .

A slowing economy and the implication of lower inflation and interest rates tend to bolster bond prices .

But orders for non-defense capital goods , a precursor of future plant and equipment spending , were off 5.6 %

that mid-October sales were running at an annual rate of about 5.8 million units , far less than the 6.6 million units

Although analysts do n't expect the Federal Reserve to ease credit policy soon ,

reports like those yesterday help build the case for lower rates .

Now bond investors are looking toward next week 's report from national purchasing managers and the government 's October employment report as potentially prompting the Fed to lower rates .

The stock market 's precipitous drop frightened foreign investors ,

investors are becoming more bearish toward the dollar in the wake of the stock market 's recent troubles

The Treasury 's benchmark 30-year bond gained nearly half a point , or about $ 5 for each $ 1,000 face amount .

In late New York trading the currency was quoted at 1.8355 marks and 141.45 yen ,

`` Lifestyles of the Rich and Famous '' may be visiting some new venues in the near future .

Potter sentenced Jim Bakker to 45 years in the big house yesterday ,

while a Beverly Hills judge tucked away Zsa Zsa Gabor for three days , plus 120 hours of work with homeless women .

Miss Gabor recanted her earlier-expressed fear of jailhouse lesbians .

but production has been slowed by a strike of 55,000 machinists ,

Last week , a mediator failed to rekindle talks between the company and the strikers ,

hovered over the cradle of Edita Gruberova many years ago in Bratislava ,

she sprinkled her with high E flats , sparkling Ds , clean trills , and coloratura ornaments silvery as magic dust .

and bring along what she forgot , a little charm , a few smidgins of thespian skills and a nice wig .

Cast as Violetta Valery in a new production of Verdi 's `` La Traviata , ''

Ms. Gruberova last week did many things nicely and others not so well .

who can sing the first act 's high-flying music with all the little notes

and though a successful courtesan , she is just about overdrawn at the bank .

Large and lavish , `` Traviata '' is another addition to the Met 's growing stock of cast-proof productions mostly by Mr. Zeffirelli .

the company can still sell tickets to his `` Boheme '' and `` Turandot ''

Last week 's discerning audience gave a bigger hand to a greenhouse than to the tenor Neil Shicoff ,

Not nearly in his best form , the tenor made dullish sounds along with his usual clumsy hand gestures .

Or is it that Mr. Z. is getting a little tired of `` Traviata '' ?

that in its unswagged and unswaggering approach was totally at odds with the staging .

and whether this has to do with Mr. Kleiber or the wooden cast is hard to say .

In any event , Ms. Gruberova barely ventilated Violetta 's anguish in her long meeting with Wolfgang Brendel ,

trying to inject an Italianate lilt into his heavy , teutonic baritone .

`` Di Provenza '' was n't much of an advertisement for sunny , southern France .

Perhaps Mr. Kleiber could let him substitute one of the songs about dead children and dark nights from Mahler 's `` Kindertotenlieder . ''

the Met 's next-door neighbor , the New York City Opera , has canceled its season

who wanted pay parity with the the Chicago Lyric and San Francisco Opera orchestras .

exacerbated by the retirement of general director Beverly Sills and the amazing appointment of Christopher Keene as her successor

I , for instance , was perfectly happy at Avery Fisher Hall the other day

listening to Helmuth Rilling conduct the Messa per Rossini , a strange piece

who was nearly driven to his own early grave by the troublesome arrangements .

since the operatic `` Libera me '' was reworked for the Manzoni Requiem ,

The surprising discovery of the evening at Fisher was the high standard

achieved by some of his now-obscure colleagues , notably Raimondo Boucheron .

His melodious `` Confutatis '' was smoothly sung by bass Brian Matthews .

Also , Teodulo Mabellini 's `` Lux aeterna '' was intriguingly scored

He brought along his Stuttgart-based Gaechinger Kantorei chorus , and even better , the Czech soprano Gabriela Benackova .

The Tokyo International Film Festival was no match for the Cannes Film Festival in terms of prestige ,

It awarded the largest cash prize of any film festival to young and first-time film makers .

At this year 's event , the third since the festival got under way in 1985 , Idrissa Ouedraogo of Burkina Faso won the Sakura Gold prize of $ 143,000 for `` Yaaba ''

By comparison , Cannes now gives $ 39,000 to the winner of its young director 's award .

the Tokyo festival may become known as a major attraction for young directors

Vincent Tolentino , a correspondent for the French magazine Telerama , says of the recently ended Tokyo festival :

and most of the films have been seen before at other festivals . ''

it is thought that many small investors in Belgium store securities privately ,

who incur high administrative costs to deliver securities to investors .

for Japan to extend aid of this kind to Eastern European countries , ''

Prime Minister Toshiki Kaifu also is studying the possibility of a visit to the two Eastern bloc nations and to Western Europe next January .

Drugs were a major issue in two days of talks between French President Francois Mitterrand and Spanish Prime Minister Felipe Gonzalez .

`` I demand the utmost severity in the fight against drug traffickers , ''

President Mitterrand said after the meeting in Valladolid , Spain .

The leaders ' talks coincided with a meeting in Madrid of anti-drug experts from the U.S. , France , Italy , Spain , Peru , Bolivia and Colombia .

was expected to cover such matters as police training and extradition agreements ,

-- the ministers of railroads , of foreign economic relations and of heavy-machine building --

the Soviets will help Iran in oil exploration and other areas in return for exports of Iranian natural gas .

And in Paris , Mahmoud Vaezi , Iran 's vice minister of foreign affairs , began a five-day visit

to discuss such matters as compensation to French enterprises for contracts

Nippon Telegraph & Telephone Corp. and Omron Tateisi Electronics are involved with Toto 's new product ,

Since Mexican President Carlos Salinas de Gortari took office last December ,

special agents have arrested more than 6,000 federal employees on charges

Hector Castaneda Jimenez , chief prosecutor at the Attorney General 's Office , said

that an estimated $ 82.8 million in government property and unpaid taxes have been recovered in the campaign

Mr. Castaneda 's office will reportedly issue warrants during the next six months for the arrest of another 10,000 federal employees .

Those employees are suspected of illegally gaining an estimated $ 376.8 million ,

the prosecutor was quoted as saying by the Excelsior news service .

which is distributing farm tools to returning refugees in Namibia ,

because of the tense political climate during preparations for independence from South Africa .

Sources close to the family of Pakistani Prime Minister Benazir Bhutto said

when it slashed revenue and earnings projections for this year ,

that has delayed orders from government as well as commercial customers .

it earned $ 30.6 million , or $ 1.04 a share , up 35 % from $ 22.6 million , or 73 cents a share , a year ago .

For the nine months , earnings totaled $ 36.6 million , or $ 1.24 a share , down 46 % from $ 68.1 million , or $ 2.19 a share , a year earlier .

Revenue was $ 454.6 million , a 6.9 % gain from $ 425.4 million .

In New York Stock Exchange composite trading yesterday , Cray closed down $ 1.125 at $ 34.25 .

its order backlog at Sept. 30 was $ 315 million , down $ 25 million from June 30 .

that fourth-quarter revenue and earnings will be substantially greater than any of the preceding three quarters , but not up to the record levels of last year 's fourth quarter ''

that the company expects `` strong '' operating profit for the year , `` but at a level significantly lower than last year . ''

Last year , Cray earned $ 156.6 million , or $ 4.99 a share , on revenue of $ 756.3 million .

to compete with the likes of Convex Computer Corp. and International Business Machines Corp. ,

it will decide on whether to build such a machine before year end .

Johnson & Johnson reported a 10 % rise in third-quarter net income on a 12 % sales increase

Net for the New Brunswick , N.J. , maker of health-care products climbed to $ 265 million , or 80 cents a share , from $ 240 million , or 71 cents a share , in the year-earlier period .

In a statement , Ralph S. Larsen , chairman and chief executive officer , said

the company was pleased with its third-quarter sales performance , `` especially in light of the extremely competitive environment in domestic consumer markets and the negative impact of unfavorable exchange rates this quarter . ''

David J. Lothson , an industry analyst for PaineWebber Group Inc. , said

Johnson & Johnson 's results slightly exceeded his expectations for the third quarter .

In New York Stock Exchange composite trading yesterday , Johnson & Johnson shares fell 37.5 cents to $ 54.625 .

Mr. Larsen noted `` substantial sales growth '' for the recently introduced Acuvue disposable contact lens and Hismanal , a once-a-day antihistamine .

But domestic consumer sales slipped 1.2 % for the quarter , to $ 490 million from $ 496 million .

The company cited softness in the retail health and beauty aids category , `` as well as the intense competition in the company 's sanitary protection product line . ''

largely because the effect of unfavorable exchange rates has been easing

that a `` tough tax-rate comparison '' may slow the company 's earnings growth for the current quarter .

For last year 's fourth quarter , the company 's tax rate was less than 20 % ,

how sensitive the multinationals can be to developments in a single country such as Brazil .

The following issues were recently filed with the Securities and Exchange Commission :

Bergen Brunswig Corp. , proposed offering of liquid yield option notes , via Merrill Lynch Capital Markets .

Columbia Gas System Inc. , shelf offering of up to $ 200 million of debentures .

of which 1,455,000 shares are to be sold by the company and 201,870 by holders , via Alex . Brown & Sons Inc. and Volpe , Covington & Welty .

TeleVideo Systems Inc. , proposed offering of 1,853,735 common shares ,

Western Gas System Inc. , initial offering of 3,250,000 common shares ,

of which 3,040,000 shares will be sold by the company and 210,000 by a holder , via Prudential-Bache Capital Funding , Smith Barney , Harris Upham & Co. and Hanifen , Imhoff Inc .

Insiders have been selling shares in Dun & Bradstreet Corp. , the huge credit-information concern .

Six top executives at the New York-based company sold shares in August and September .

The stock , in New York Stock Exchange composite trading yesterday , closed at $ 51.75 , up 62.5 cents , well below the $ 56.13 to $ 60 a share

Much of the recent slide in Dun & Bradstreet 's stock came late last week , after negative comments by analysts at Merrill Lynch & Co. and Goldman , Sachs & Co .

One of Dun & Bradstreet 's chief businesses is compiling reports

that rate the credit-worthiness of millions of American companies .

that the company misled many customers into purchasing more credit-data services than needed .

In June , the company agreed to settle for $ 18 million several lawsuits

Among the insider sales , Charles Raikes , the firm 's general counsel , sold 12,281 shares in August ,

according to insider filings with the Securities and Exchange Commission .

John C. Holt , an executive vice president and Dun & Bradstreet director , sold 10,000 shares on Aug. 31 for $ 588,800 ,

William H.J . Buchanan , the firm 's secretary and associate general counsel , sold 7,000 shares in two separate sales in September for $ 406,000 .

The other insiders , all senior or executive vice presidents , sold between 2,520 and 6,881 shares ,

Dun & Bradstreet 's stock price began its recent spiral downward last Wednesday ,

Net income rose to 83 cents a share from 72 cents a share the year-earlier period .

But analysts focused more on the drop in revenue , to $ 1.04 billion from $ 1.07 billion ,

reflecting in part a continuing drop in sales of the controversial credit-reporting services .

Last Thursday , Merrill Lynch securities analyst Peter Falco downgraded his investment rating on the firm ,

He cut his rating to a short-term hold from above-average performer

The stock slid $ 1.875 on more than four times average daily volume .

that investors with short-term horizons should avoid Dun & Bradstreet stock

in fact , the recent pace of selling is just about average for the company ,

that specializes in tracking and analyzing SEC insider filings .

Michael A . Miles , chief executive officer of Philip Morris Cos. ' Kraft General Foods unit , bought 6,000 shares of the company on Sept. 22 for $ 157 each .

Mr . Miles 's newly purchased shares are now worth $ 1,068,000 ,

based on Philip Morris 's closing price of $ 44.50 , up 62.5 cents , in composite trading on the New York Stock Exchange yesterday .

shortly before being named to his current chief executive officer 's position ;

Two directors of Pegasus Gold Inc. , a Spokane , Wash. , precious-metals mining firm , sold most of their holdings in the company Aug. 31 .

Peter Kutney sold 5,000 shares , all of his holdings , for $ 11.38 a share , or $ 56,900 .

On Wall Street , Merrill Lynch & Co. analyst Daniel A. Roling rates the stock `` neutral ''

Pegasus Gold `` has been on a lot of recommended lists as a junior growth company

says Marty McNeill , metals analyst at Dominick & Dominick , a New York investment firm .

Yesterday , in composite trading on the American Stock Exchange , Pegasus closed at $ 10.125 , up 12.5 cents .

and that to exist as a matter of necessity was most perfect of all .

But since the time of Darwin , we humans could at least claim a sort of natural necessity for the existence of our species .

Are n't we , after all , the inevitable culmination of that stately pageant called evolution ?

If mutation and natural selection slowly but surely give rise to more and more advanced forms of life ,

Star lecturer at Harvard , author of numerous popular books on science , and scourge of the creationist lobby , Mr. Gould is perhaps the world 's most eminent evolutionary theorist .

For him , natural history is anything but a gradual , predictable march from primordial slime to human consciousness ;

in which the emergence of a featherless biped was a one-in-a-million shot .

Mr. Gould makes his case for `` the awesome improbability of human evolution . ''

The argument turns on the discovery in 1909 of an amazing fossil quarry high in the Canadian Rockies

Here , in an area smaller than a city block , lay buried traces of countless weird creatures

whose anatomical variety far exceeded what can be found in all the world 's oceans today .

who discovered the Burgess Shale , one Charles Doolittle Walcott .

Accordingly , the hidebound traditionalist reconstructed hypothetical organisms from the Burgess fossils in such a way

It was not until the early 1970s that Cambridge Prof. Harry Whittington and two sharp graduate students began to publish a reinterpretation of the Burgess Shale .

about how the squashed and distorted fossil remains corresponded to three-dimensional structures ,

this trio was able to piece together a series of wondrous beasties quite unlike anything currently on the planet .

Would that Mr. Gould 's minute descriptions of these creatures was always so colorful .

A good deal of the book is boring , particularly the endless allusions to high and pop culture and the frequent jokes festooning the text .

These turns do not provide sufficient relief from sentences like , `` Most modern chelicerates have six uniramous appendages on the prosoma . ''

when Mr. Gould gets around to discussing the meaning of the Burgess oddities for the theory of evolution .

Not long after the appearance of life , evidently , there was an explosive proliferation in the number of animal designs

The vast majority of them , however , were wiped out by a succession of environmental upheavals

Our mammalian forerunners lucked out through the extraterrestrial impact

human evolutionary hopes hung on the survival of a little worm with a backbone

like an existentialist of old , he views our contingency as `` a source of both freedom and consequent moral responsibility . ''

that if some other curiosity from the Burgess Shale had survived instead ,

beings at once wiser and less boorish than Homo sapiens might have eventually gained earthly dominion .

Surely at some other cosmic address a Gouldoid creature would have risen out of the ooze

The Justice Department scrambled to play down the significance of its new guidelines

but were disclosed for the first time by press reports this week .

They discourage prosecutors , under certain circumstances , from seeking court orders

the guidelines `` are a codification and a clarification far more than a new direction . ''

Use of the Racketeer Influenced and Corrupt Organizations law against white-collar defendants ,

has come under attack from some defense lawyers and legal scholars .

and that aggressive use of the forfeiture provisions can ruin corporate defendants

`` the government will not seek to disrupt the normal , legitimate business activities of the defendant ''

`` The government 's policy is not to seek the fullest forfeiture permissible under the law

where that forfeiture would be disproportionate to the defendant 's crime . ''

on whether the guidelines would curb racketeering prosecutions against corporate defendants .

is made in individual cases '' by Justice Department officials in Washington ,

`` have been the subject of considerable criticism in the press . ''

the government is n't `` backing off on these kinds of matters at all . ''

to pay for the $ 4 billion to $ 6 billion in damages from last week 's earthquake ,

are laying the groundwork for a temporary increase in the state 's sales tax .

The talk of a sales tax rise follows a rebuff from Congress on the question

but yesterday the House approved a more general scaled-back measure

the bulk of which would go to California , with an unspecified amount

That leaves the state roughly $ 2 billion to $ 4 billion short .

A sales tax increase appears to be the fastest and easiest to raise funds in a hurry .

a one-penny increase in the state 's six-cent per dollar sales tax could raise $ 3 billion .

that Gov . George Deukmejian has agreed to schedule a special session of the legislature within two weeks .

California 's so-called Gann limit effectively prevents the state from spending new tax money

Both Mr. Brown , the state 's most influential legislator , and Gov . Deukmejian favor a temporary sales tax increase

than the state can raise from existing sources and the federal government .

And then it will be required to lower taxes by a corresponding amount during a three-year period

said Cindy Katz , assistant director of the state department of finance .

A sales tax increase would require two-thirds approval in both houses of the state 's legislature .

said Kirk West , president of the California Chamber of Commerce .

property owners ought to pay a higher portion of the state 's earthquake relief tab .

Since the late 1970s , California property owners have benefited from a tax rollback

every one penny increase in the tax would yield $ 11 million a month .

imposing a temporary gasoline tax increase in the meantime could undercut support among voters for the measure .

`` It 's possible , though not probable , '' that the state could get by with its existing resources and federal help ,

said Quentin Kopp , chairman of the state senate 's transportation committee .

injured in last week 's earthquake-triggered freeway collapse in Oakland

over whether officials adequately heeded warnings about the structure 's safety .

arising out of the collapse of the so-called Cypress structure viaduct .

The following were among yesterday 's offerings and pricings in the U.S. and non-U.S. capital markets , with terms and syndicate manager ,

were priced at a spread of 45 basis points above the Treasury 's 10-year note .

Rated triple-A by both Moody 's Investors Service Inc. and Standard & Poor 's Corp. ,

The noncallable issue was priced at a spread of 98 basis points above the Treasury 's seven-year note .

The noncallable issue was priced at a spread of 140 basis points above the Treasury 's 10-year note .

$ 150 million of 8.45 % notes due Oct. 15 , 2009 , through Bear , Stearns & Co. ,

was priced at a spread of 66 basis points above the Treasury 's 10-year note .

The issue is rated single-A-1 by Moody 's and single-A-plus by S & P .

$ 100 million of first and refunding mortgage bonds , due Oct. 15 , 1999 , through Shearson Lehman Hutton Inc. ,

The noncallable issue is rated double-A-3 by Moody 's and double-A-minus by S & P .

It was priced at a spread of 55 basis points above the Treasury 's 10-year note .

$ 230 million of general obligation bonds , consolidated loan of 1989 , Series D , due 1990-2009 , through a Goldman , Sachs & Co. group .

$ 185 million of school district general obligation bonds , Series 1989 , due 1991-1999 and 2008 ,

The bonds are rated single-A-1 by Moody 's and double-A-minus by S & P .

These consist of current interest bonds due 1990-2002 , 2010 and 2015 , and capital appreciation bonds due 2003 and 2004 ,

Bonds due 2003 , 2004 and 2015 are n't being formally reoffered .

There are also $ 40 million of uninsured subordinate lien bonds , due Dec. 1 , 2008 , and Dec. 1 , 2015 .

West Virginia Parkways , Economic Development and < Tourism Authority --

$ 143 million of parkway revenue bonds , Series 1989 , with current interest bonds due 1990-2002 and 2019 and capital appreciation bonds due 2003-2008 ,

to yield to maturity from 7.10 % in 2003 to 7.25 % in 2007 and 2008 .

The issue is expected to receive a double-A rating from Moody 's ,

$ 75 million of general obligation , Series B , consolidated public improvement bonds of 1989 , through a Manufacturers Hanover Trust Co. group .

There were no details available on the pricing of the issue , Freddie Mac 's Series 108 .

Two-part , $ 800 million issue of bonds due Nov. 9 , 1994 , with equity-purchase warrants ,

European portion of $ 700 million via Yamaichi International Europe Ltd .

Asian portion of $ 100 million via Yamatane Securities Europe Ltd .

Each $ 5,000 bond carries one warrant , exercisable from Nov. 28 , 1989 , through Oct. 26 , 1994 ,

to buy shares at an expected premium of 2 1/2 % to the closing share price

$ 100 million of bonds due Nov. 9 , 1993 , with equity-purchase warrants ,

Each $ 5,000 bond carries one warrant , exercisable from Nov. 27 , 1989 , through Oct. 26 , 1993 ,

Each $ 5,000 bond carries one warrant , exercisable from Nov. 21 , 1989 , through Oct. 19 , 1993 ,

Each 5,000 mark bond carries one warrant and one certificate for four warrants , exercisable from Dec. 18 , 1989 , to Oct. 26 , 1994 ,

to buy shares at an expected premium of 2 1/2 % above the closing share price

120 million Swiss francs of privately placed convertible notes due Dec. 31 , 1993 , with a fixed 0.25 % coupon at par , via Union Bank of Switzerland .

Each 50,000 Swiss franc bond convertible from Nov. 28 , 1989 , to Dec. 20 , 1993 , at a 5 % premium over closing share price Oct. 30 ,

150 million Swiss francs of convertible bonds due Nov. 15 , 1997 , with a fixed 4 % coupon at par via Union Bank of Switzerland .

Each 5,000 Swiss franc bond convertible from Jan. 3 , 1989 , to Oct. 31 , 1997 .

50 million Swiss francs of privately placed convertible notes due Dec. 31 , 1994 , with a 0.25 % coupon at par , via Yamaichi Bank

Each 50,000 Swiss franc note convertible from Dec. 1 , 1989 , to Dec. 16 , 1994 , at 5 % premium over the closing share price Oct. 26 ,

100 million Swiss francs of 6 % , privately placed notes due Dec. 1 , 1996 ,

is probably the active , results-oriented sort most likely to hate meeting the rules and record-keeping demands of federal , state and local regulators .

Yet every business owner has to face the mound of forms and regulations

`` A great many federal regulations are meant for larger entities

Thus , optimistic entrepreneurs await a promised land of less red tape

where bulk-mail postal regulations and government inspectors are banished .

the Journal asked a completely unscientific , random sample of business owners to fantasize about the forms and regulations

is essential to the public good , and even to their own businesses .

generally the best regarded form of red tape , `` create a level playing field

says Sidney West , president of TechDesign International Inc. , a Springfield , Va. , business

Mr. West cites the Federal Communications Commission and its standards for telecommunications equipment :

Determining when handicapped access is required can be a nightmare for architects ,

says Mark Dooling , president of Dooling & Co. , a Newton , Mass. , architectural firm .

that `` building inspectors are backing away from interpreting them , ''

devote substantial resources to complying with state insurance laws and a host of agencies .

says Phil Rosen , a partner in Fleet & Leasing Management Inc. , a Boston car-leasing company .

One senior executive at his firm spends nearly 20 % of his time on insurance ,

Complying with environmental and workplace regulations runs a close second .

Next to medical insurance , `` costs of compliance '' are the fastest-growing expense at Impco Inc. , a Providence , R.I. , chemical company .

-- mostly to comply with federal , state and local environmental laws --

that spending on environmental red tape amounts to between 6.5 % and 7.5 % of Impco 's total operating expenses .

Eastern Reproduction Corp. , a Waltham , Mass. , maker of thin metal precision parts , must report to five federal and state agencies as well as to local fire , police , hospital and plumbing authorities ,

says Eddie Brown , president of Brown Capital Management Inc. , a Baltimore money-management firm .

Revising employee manuals on pensions , health care and other subjects costs over $ 25,000 a year for Bert Giguiere , president of Professional Agricultural Management Inc. , a Fresno , Calif. , provider of business services to farmers .

But the ever-changing laws are usually so complicated and confusing

to make business owners look forward to their own pension days .

Yearly changes in federal benefit laws force small businesses to repeatedly re-evaluate and redesign existing plans .

she has had to overhaul her pension and profit-sharing plans three times in the past three years .

Compliance added 15 % to 20 % to her accounting bill last year ,

Advertising agencies and other service companies are exempt from city and state sales tax in most locales

-- but the exemption comes at a price of exhaustive records and rigorous reviews .

says Jennie Tong , executive vice president of Lee Liu & Tong Advertising Inc. , New York .

When the Trinity Repertory Theater named Anne Bogart its artistic director last spring ,

the nation 's theatrical cognoscenti arched a collective eyebrow .

Ms. Bogart , an acclaimed creator of deconstructed dramatic collages

that tear into such sacred texts as Rodgers and Hammerstein 's `` South Pacific , ''

Trinity Rep meanwhile is one of the nation 's oldest and most respected regional theaters ,

How would this bastion of traditional values fare in Ms. Bogart 's iconoclastic hands ?

She held her fire with her first production at the Trinity earlier this season .

It was a predictable revival of her prize-winning off-Broadway anthology of Bertolt Brecht 's theoretical writings ,

Now , with the opening of Maxim Gorky 's bourgeois-bashing `` Summerfolk , ''

( and cites such European directors as Peter Stein , Giorgio Strehler and Ariane Mnouchkine as influences )

that easily lend themselves to deliberately antirealistic distancing techniques .

penned in 1904 as a kind of sequel to Chekhov 's `` Cherry Orchard , ''

engaged in an exhausting ideological fight to the finish between the allrightniks and the reformers .

But beyond this decorative nod to tradition , Ms. Bogart and company head off in a stylistic direction

that all but transforms Gorky 's naturalistic drama into something akin to , well , farce .

to force some Brechtian distance between her actors and their characters

spout philosophic bon mots with the self-conscious rat-a-tat-tat pacing of `` Laugh In . ''

but the nuance and richness of Gorky 's individual characters have vanished in the scuffle .

and whom she equipped with a spanking new $ 60,000 sound system and recording studio .

For Gorky , Mr. Helpern provided an aural collage of Debussy and Rachmaninoff ,

which is less a score than a separate character with a distinct point of view .

that her intent in such manipulative staging of the classics is simply an attempt

Indeed , during a recent post-production audience discussion , the director explained

so that the song 's `` original beauty comes through , '' surmounting the cliche .

is one of obfuscation rather than rejuvenation , a vision so at odds with the playwright 's

Ed Shea and Barbara Orson never find a real reason for their love affair as the foolish , idealistic young Vass and the tirelessly humanitarian doctor Maria Lvovna .

Cynthia Strickland as the long-suffering Varvara is a tiresome whiner , not the inspirational counterrevolutionary

in addition to possessing one of the evening 's more impressive vocal instruments ,

brings an unsuspected comedic touch to her role of Olga , everybody 's favorite mom .

MORGAN STANLEY , THE ONCE STODGY investment house , in 1974 helped a corporate client complete a hostile takeover .

It was the start of a boom in unfriendly , even ungentlemanly , mergers .

offered $ 28 a share , equal to $ 157 million , for ESB , a Philadelphia battery maker .

it was given only a three-hour advance warning on a `` take it or leave it '' basis from Inco ,

that a hostile tender offer is being made by a foreign company for all of ESB 's shares , ''

-- headed by Harry Gray , a shrewdly friendly acquirer of companies --

On a single day Inco lifted its offer to $ 38 and then to $ 41 , equal to $ 225.5 million .

The new gritty game became a money maker for Wall Street 's once austere old-name houses .

Inco paid Morgan an advisory fee of about $ 250,000 , a paltry figure by today 's measures .

Early this year Morgan and three other investment houses each received $ 25 million in advisory fees from Kohlberg Kravis & Roberts in its $ 25 billion friendly buy-out of RJR Nabisco .

third-quarter net income slid 14 % to $ 23.9 million , or $ 1.10 per fully diluted share , from $ 27.9 million , or $ 1.21 a fully diluted share ,

closing at $ 38.50 on the New York Stock Exchange , down $ 3.625 .

and lending heavily into the furious California housing market .

Analysts had been projecting fully diluted earnings in the third quarter in the range of about $ 1.30 a share .

However , HomeFed 's loan originations and purchases plunged 26 % in the quarter , to $ 1.4 billion from $ 1.9 billion a year earlier .

Meanwhile , non-performing assets rose to $ 593 million from $ 518.7 million .

Some $ 380 million of the troubled assets is repossessed real estate , a 55.6 % surge from the $ 244.2 million of repossesed property

most of the troubled assets are apartment complexes , shopping malls and other commercial real estate .

sales of such properties were slower than anticipated in the third quarter ,

the slide in loan originations was more a matter of design than a sign of cooling in the California market .

Any such downturn in California would be grim news for West Coast thrifts , particularly the less healthy ones ,

because of uncertainty over the new capital requirements and regulations

over implementing the government 's massive thrift bailout bill .

its real-estate operations earned a record $ 21.7 million , more than double year-earlier real estate profit of $ 9 million .

they see no signs of an imminent swoon in California real estate , even with last week 's earthquake .

earnings also were nicked in the quarter by a $ 4 million provision for losses

For the nine months , HomeFed earned $ 82.5 million , or $ 3.52 a fully diluted share , a 4.3 % increase from year-earlier net income of $ 79.1 million , or $ 3.43 a fully diluted share .

Yields on certificates of deposit at major banks were little changed in the latest week .

The average yield on six-month CDs of $ 50,000 and less slipped to 7.96 % from 8.00 % ,

On one-year CDs of $ 50,000 and less , the average slid to 8.02 % from 8.06 % .

Both issues are among the most popular with individual investors .

were in line with blips up and down within a fairly narrow range for the last two months .

The average yield on small-denomination three-month CDs moved up two-hundredths of a percentage point in the latest week to 7.85 % .

The average yield on both two-year CDs and five-year CDs was 7.98 % .

posted significant increases in average yields in the latest week ,

The average yield on six-month broker-sold CDs rose to 8.29 % from 8.05 %

and on one-year CDs the average yield rose to 8.30 % from 8.09 % .

than they can get on T-bills or from banks and thrifts directly .

yielded 7.90 % for six months and 7.77 % for three months , up from 7.82 % and 7.61 % , respectively , the week before .

So-called jumbo CDs , typically in denominations of $ 90,000 and up , also usually follow T-bills and interest rate trends in general more than those

Some jumbos posted fractional changes in average yields this week , both up and down .

The average yield on threemonth jumbos rose to 8.00 % from 7.96 % ,

`` It 's very easily influenced by changes in the stock market and the junk bond market . ''

The small changes in averages reflect generally unchanged yields at many major banks .

At Chase Manhattan Bank in New York , for example , the yield on a small denomination six-month CD fell about a quarter of a percentage point to 8.06 % .

In California , Bank of America dropped the yield on both six-month and one-year `` savings '' CDs to 8.33 % from 8.61 % .

Yields on money-market deposits were unchanged at an average 6.96 % for $ 50,000 and less and down just a hundredth of a percentage point to 7.41 % for jumbo deposits .

to bottle , distribute and market Pepsi-Cola soft-drink products in Australia ,

The New Zealand brewing and retail concern did n't disclose terms .

and is subject to approval from Australia 's Foreign Investment Review Board .

Cadbury Schweppes Australia Ltd. has held the Australian Pepsi franchise for the past four years .

Lion Nathan and PepsiCola Australia , a unit of PepsiCo Inc. of the U.S. , did n't say

to sell for $ 150 million its domestic equipment lease portfolio and that of its Wang Credit Corp. subsidiary .

it also agreed to sell a portion of its European real estate unit for $ 37 million .

that Wang has already sold some $ 12 million of miscellaneous assets

that it had received $ 13 million from Compaq Computer Corp. , Houston , in the previously announced sale of its Stirling , Scotland , plant .

that in the next six months he plans to sell another $ 200 million to $ 300 million of assets

and reduce interest costs at Wang , a minincomputer maker in Lowell , Mass .

In response to questions after the annual meeting , Mr. Miller said

Safeway Stores Inc. reported a 69 % decline in profit for the fiscal third quarter ,

operating improvements were masked by unusual gains in the year-earlier period .

the year-earlier results included gains of $ 23.5 million from divestitures .

profit fell 49 % to $ 23.5 million from $ 46 million in the year-earlier quarter ,

Benjamin Jacobson & Sons has been the New York Stock Exchange specialist firm in charge of trading stock in UAL Corp. and its predecessors since the early 1930s .

it was priced at $ 150 a share , down more than $ 28 from Monday 's close .

pushing the stock back up to close at $ 170 , down just $ 8.375 from Monday .

the two Benjamin Jacobson specialists at the Big Board 's UAL trading post yesterday presided over what can only be described as a financial free-for-all .

said 47-year-old Robert J. Jacobson Jr. , grandson of the firm 's founder .

He manned the UAL post yesterday with Christopher Bates , 33 , an energetic Long Islander

cooling down with a carton of apple juice after the close yesterday .

A subsequent rally in UAL helped the staggering stock market stage an astonishing recovery from an 80-point deficit

read the news about the unraveling of UAL takeover plans on the train into work yesterday morning .

before UAL resumed trading like a regular airline stock after months of gyrations .

Messrs. Jacobson and Bates walked on the Big Board floor at about 8:45 a.m. yesterday

Already entered in the Big Board 's computers and transmitted to their post were sell orders for 65,000 UAL shares .

The UAL news had already caused a selling furor in the so-called third market ,

in which firms buy and sell stock away from the exchange floor .

In the 45 minutes before the 9:30 opening bell , the Jacobson specialists kept getting sell orders , heavier than they imagined .

And at 9:15 , they posted a $ 135 to $ 155 `` first indication , '' or the price range

was n't as bad for the Jacobson specialists as yesterday 's action .

On that earlier day , the stock 's trading was halted at a critical time

But yesterday , the heavy trading action eventually consumed not only Messrs. Jacobson and Bates but four other Jacobson partners ,

About 30 floor traders crammed near the UAL post most of the day ,

The heavy buying in the last half hour led the specialists to take special steps .

That meant no trading would occur in the final seconds , as a way

of making sure that last-second orders are n't subjected to a sudden price swing

Big Board traders praised the Jacobson specialists for getting through yesterday without a trading halt .

In Chicago , a UAL spokesman , `` by way of policy , '' declined to comment on the company 's stock or the specialists ' performance .

with orders and employment falling and output at a standstill , ''

said David Wigglesworth , chairman of the industry group 's economic committee .

Of 1,224 companies surveyed , 31 % expect to cut spending on plant equipment and machinery ,

government data do n't yet show the economy grinding to a halt .

and the September trade figures showed increases in both imports and exports .

As a result , Prime Minister Margaret Thatcher 's government is n't currently expected to ease interest rates before next spring , if then .

Chancellor of the Exchequer Nigel Lawson views the high rates as his chief weapon against inflation ,

which was ignited by tax cuts and loose credit policies in 1986 and 1987 .

that any loosening this year could rekindle inflation or further weaken the pound against other major currencies .

Fending off attacks on his economic policies in a House of Commons debate yesterday ,

inflation `` remains the greatest threat to our economic well-being ''

Many economists have started predicting a mild recession next year .

David Owen , U.K. economist with Kleinwort Benson Group , reduced his growth forecast for 1990 to 0.7 % from 1.2 %

the downturn probably wo n't become a `` major contraction '' similar to those of 1974 and 1982 .

the U.K. faces both higher inflation and lower growth in the next several months .

investment will be more likely to flow toward the other European economies

and `` the U.K. will be less prepared for the single market . ''

Britain 's latest trade figures contained some positive news for the economy , such as a surge in the volume of exports ,

The resulting # 1.9 billion merchandise trade deficit was partly offset by an assumed surplus of # 300 million in so-called invisible items ,

which include income from investments , services and official transfers .

economists expect the current account deficit for all of 1989 to swell to about # 20 billion from # 14.6 billion in 1988 .

the big deficit reflects the slipping competitive position of British industry .

Vickers PLC , a British aerospace , defense and automotive conglomerate , said

for Ross Catherall Group PLC , a maker of specialty alloy and ceramics .

representing at least 67 % of Ross Catherall 's issued share capital , or 12.7 million ordinary shares .

its acquisition of Ross Catherall will be covered largely by cash

raised in its July disposal of Howson-Algraphy for # 241.7 million .

The Thoroughbred Owners and Breeders Association , a Lexington , Ky.-based trade group , has launched `` seminars '' for `` potential investors '' at race tracks around the country .

also is considering promotional videos and perhaps a pitch to Wall Street investment bankers .

At the Laurel race track , the breeders are romancing people like Tim Hulings , a beer packaging plant worker .

that this is n't a game for anyone with a weak stomach or wallet .

warns Charles C. Mihalek , a Lexington attorney and former Kentucky state securities commissioner .

A group of investors recently bought the remaining assets of Spendthrift ,

that bought thoroughbred racehorses or stallion breeding rights .

From 1974 to 1984 , prices for the best yearlings at the summer sales rose 918 % to an average of $ 544,681 .

Since then , prices have slumped , to an average of $ 395,374 this summer .

racehorse owners still try to capitalize on the elan of the sport .

gush about the limelight of the winner 's circle and high-society schmoozing .

`` Pedigrees , parties , post times , parimutuels and pageantry . ''

`` It 's just a matter of marketing and promoting ourselves , ''

says Headley Bell , a fifth-generation horse breeder from Lexington .

For starters , racehorse buyers have to remember the basic problem of such ventures :

Katherine Voss , a veteran trainer at the Laurel , Md. , track , offers neophytes a sobering tour of a horse barn ,

that only three of about a dozen horses have won sizable purses .

`` You can see the highs and lows of the business all under one roof , ''

sometimes after they received advice from industry `` consultants . ''

outlining rules for consultants and agents , and disclosure of fees and any conflicts of interest .

says Cap Hershey , a Lexington horse farmer and one of the investors

Despite the drop in prices for thoroughbreds , owning one still is n't cheap .

looking for something between a minority stake and total ownership ,

where established horse breeders would sell a 50 % stake in horses to newcomers .

BUELL INDUSTRIES Inc. halved its quarterly dividend to five cents a share , payable Nov. 17 to stock of record Nov. 3 .

The company 's quarterly dividend had been 10 cents a share since April 30 , 1988 .

it would incur an aftertax charge of about $ 3.6 million in its fourth quarter

in connection with the sale and discontinuance of several lines at a plant .

The Waterbury , Conn. , maker of industrial fasteners and metal stampings has 2.3 million shares outstanding .

battling a takeover proposal by Canada 's DD Acquisition Corp. ,

Dunkin ' Donuts Chairman and Chief Executive Robert M. Rosenberg said

the board has n't decided whether to sell the doughnut franchiser .

jointly owned by Unicorp Canada Corp. 's Kingsbridge Capital Group unit and Cara Operations Ltd. ,

Dunkin ' Donuts ' announcement followed DD Acquisition 's request to the Delaware Court of Chancery Monday

to allow Dunkin ' Donuts to seek alternatives to DD Acquisition 's offer .

The Stamford , Conn. , power-generation products and services company said

Combustion reported improved profits in its automation and control products businesses ,

and it narrowed its losses in its public sector and environmental segment .

including work on certain low profit-margin contracts from previous years .

Net in the latest quarter included a pretax gain of $ 22.4 million from the sale of Combustion 's minority interest in Stein Industrie to GEC Alsthom N.V. of the Netherlands .

Last year 's results reflected a gain of $ 28.2 million on disposition of assets and a $ 165 million pretax provision mainly from costs

Claude Bebear , chairman and chief executive officer , of Axa-Midi Assurances , pledged to retain employees and management of Farmers Group Inc. ,

including Leo E. Denlea Jr. , chairman and chief executive officer ,

that the French insurer would keep Farmers ' headquarters in Los Angeles

Axa would also maintain Farmers ' relationships with the insurance exchanges

Mr. Bebear made his remarks at a breakfast meeting with reporters here yesterday as part of a tour

in which he is trying to rally support in the U.S. for the proposed acquisition .

The bid is part of Sir James Goldsmith 's unfriendly takeover attempt for B.A.T Industries PLC , the British tobacco , retailing , paper and financial-services giant

Axa has agreed to acquire Farmers from Sir James 's investment vehicle , Hoylake Investments Ltd. , for $ 4.5 billion plus a $ 1 billion investment in Hoylake .

Any acquisition of Farmers needs the approval of insurance commissioners in the nine states

and Mr. Bebear 's trip will take him to Idaho , Arizona and New York after his stay here ;

he will meet with insurance regulators , legislators , industry excutives and the press .

Hearings on Axa 's acquisition application have been set for Nov. 13 in Idaho ; Nov. 20 in Illinois ; Nov. 24 and Dec. 4 in Arizona ; Dec. 11 in Washington state ; and Jan. 8 in Oregon .

California 's insurance commissioner does n't hold hearings on acquisition applications .

Mr. Bebear nonetheless appears to be trying to woo the company 's executives with promises of autonomy and new-found authority under Axa .

Mr. Denlea would be a member of the top management team of the Axa-Midi group of companies ,

and would `` help define policies and strategies of the group . ''

Farmers was quick yesterday to point out the many negative aspects

that the tax cost to the exchanges under the revised structure would be about $ 8 million a year ,

it completed its previously announced sale of 16 % of the shares outstanding in its Japanese joint venture , Yamatake-Honeywell , for $ 280 million .

The stake was acquired by a group of 10 Japanese financial institutions and industrial corporations , primarily insurance companies ,

A 20 % stake would allow Honeywell to include Yamatake earnings in its results .

OPPENHEIMER CAPITAL LIMITED PARTNERSHIP increased the quarterly distribution to 40 cents a limited partnership unit from 36.25 cents .

The distribution represents available cash flow from the partnership between Aug. 1 and Oct. 31 .

The money manager is controlled 67.7 % by its top officers and top officers of Oppenheimer & Co. , a securities firm .

Oppenheimer Capital has about 7.9 million limited partnership units outstanding .

In New York Stock Exchange composite trading yesterday , the units closed at $ 15.125 , up 12.5 cents .

the C $ 1 billion in reserves will result in a charge of C $ 595 million against earnings

The bank reported net income of C $ 389 million for the nine months

the increase in loan-loss provisions wo n't affect the payment of dividends .

reserves now amount to 61 % of its total less-developed-country exposure .

In Toronto Stock Exchange trading , Bank of Montreal closed at C $ 33.25 , up 87.5 Canadian cents .

net income rose to $ 37.8 million , or 72 cents a share , from $ 32 million , or 57 cents a share , in the year-earlier period .

The latest results include a gain of $ 4.2 million , or eight cents a share , on the sale of television stations in Oklahoma City and Flint , Mich .

Revenue increased 7.5 % to $ 540.9 million from $ 503.1 million .

Robert F. Singleton , Knight-Ridder 's chief financial officer , said

the company was `` pleased '' with its overall performance , despite only single-digit growth in newspaper revenue .

That division 's revenue rose 2.3 % to $ 472.5 million from $ 461.9 million in the year-ago period .

Gains in advertising revenue , however , resulted in operating profit of $ 78.4 million

In New York Stock Exchange composite trading , Knight Ridder closed at $ 51.50 a share , down 12.5 cents .

General Electric Co. executives and lawyers provided `` misleading and false '' information to the Pentagon in 1985 in an effort

filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court ,

challenge the motives and veracity of the nation 's third-largest defense contractor .

The company attacked the government 's allegations as `` reckless and baseless mudslinging , ''

its management `` promptly and accurately reported '' to the Pentagon all relevant information about billing practices .

which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative ,

if Pentagon and Justice Department officials take a tough stance .

in advocating cooperation and voluntary disclosures of improper or inflated billing practices .

that a group of company managers and lawyers engaged in an elaborate strategy over five years

to obscure from federal authorities the extent and details of `` widespread '' fraudulent billing practices .

The problems were uncovered during a series of internal investigations of the company 's Space Systems division ,

which has been the focus of two separate overcharge prosecutions by the government since 1985 .

The dispute stems from pretrial maneuvering in the pending court case ,

in which prosecutors have been demanding access to a host of internal company memos , reports and documents .

Last November , a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme

to defraud the Army of $ 21 million on a logistics computer contract .

that many of the disputed documents are privileged attorney-client communications

leading up to the current case and an earlier indictment in March 1985 ,

by illegally claiming cost overruns on Minuteman missile contracts .

and paid a fine of more than $ 1 million in the Minuteman case ,

that are at the center of the dispute in the Philadelphia court .

`` high-level GE executives '' and company lawyers provided `` misleading statements '' to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985 .

that GE 's disclosure efforts largely were intended to `` curry favor '' with Pentagon officials

without detailing the extent of the management lapses and allegedly pervasive billing irregularities

that allegedly sat on damaging evidence of overcharges from 1983 to 1985 ,

that Mr. Orr `` was erroneously informed that the { suspected } practices had only just been discovered '' by GE management .

which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents ,

that senior GE managers did n't find out about questionable billing practices until 1985 ,

and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives .

initiated after the company and two of its units were briefly suspended from federal contracts ,

to familiarize Mr. Orr with the company 's self-policing procedures

that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity .

The company 's conduct `` does not even raise a question of wrongful corporate intent , ratification or cover-up , ''

reacting swiftly and aggressively to very difficult issues in largely uncharted waters . ''

it and its majority shareholder , American Cyanamid Co. , signed a non-binding letter of intent for the acquisition of Applied Solar by McDonnell Douglas Corp. for about $ 38 million .

The proposed acquisition provides for a cash payment of $ 10 a share at closing and a contingent payment of as much as 80 cents a share

American Cyanamid is a Wayne , N.J. , chemicals , drugs and fertilizer concern .

Completion of the acquisition is subject to execution of a definitive agreement , approval by all three companies ' boards and the approval of Applied Solar 's shareholders .

completion is expected at the end of the year or early next year .

A spokeswoman for the St. Louis aerospace and defense concern said

because Applied Solar is involved in solar cells and solid-state laser components ,

and this fits with McDonnell 's business of laser applications for military space .

Trading in Cineplex Odeon Corp. shares was halted on the New York and Toronto stock exchanges late yesterday afternoon at the company 's request ,

Brian Hemming , a spokesman for the company 's committee of independent directors ,

he was n't aware of the nature of the talks under way between committee members and their advisers .

Cineplex traded on the New York Stock Exchange at $ 11.25 a share , up $ 1.125 ,

or even that the company 's chairman , president and chief executive officer , Garth Drabinsky , is the only bidder for the company as a whole .

was triggered by a dispute between Mr. Drabinsky and the Toronto-based movie chain 's major shareholder , MCA Inc .

London share prices closed sharply lower Tuesday on the back of Wall Street 's steep drop

At London 's close , the Dow Jones Industrial Average was 51.23 points lower at 2611.68 .

the initial pressure came from mildly disappointing U.K. trade figures for September and a worrisome report by the Confederation of British Industry

that a decline in orders for manufactured goods is depressing both business optimism and investment plans for the coming year .

The trade and CBI reports refocused attention on high interest rates and corporate profitability

and helped rekindle underlying concerns over prospects for a recession in the U.K. ,

Volume was a modest 405.4 million shares traded , but better than the year 's lowest turnover of 276.8 million Monday .

an absence of institutional interest later in the session helped pave the way for broader declines

that market-makers were knocking share prices down in midafternoon in a bid

but the action largely helped open the way for London 's late declines .

Insurance stocks provided some early support to the market , partly on favorable brokerage recommendatons and talk of continental European interest in British life and composite insurers .

On the life insurance side , Pearl Group finished 5 lower at 640 ,

the market did n't react substantially to Ford Motor Co. 's disclosure to the U.S. Securities and Exchange Commission

when U.K. government share regulations are lifted at the end of next year .

partly because of programmed index-linked selling by trust investment funds in the afternoon session .

In early trading in Tokyo Wednesday , the Nikkei index rose 17.92 points to 35544.47 .

On Tuesday , the Tokyo stock price index of all first section issues was down 6.31 at 2681.22 .

First section volume was estimated at 900 million shares , up from 605 million Monday .

that a large amount of cash from investment trust funds is scheduled to enter the market later this week and in early November .

In addition to a large amount of investment trust fund cash , analysts generally see the market environment improving

Toshiyuki Nishimura , an analyst at Yamaichi Securities , said ,

Buying activity Tuesday centered on a wide range of midcapitalization , domestic demand-related shares

On the other hand , high-priced shares such as Pioneer Electronic and Sony failed to spark investor interest

because these issues are unlikely to be bought by investment trust funds ,

Tuesday 's notable losers were highpriced shares such as Pioneer ,

Share prices on the Frankfurt stock exchange closed sharply lower in thin dealings

as worried investors remained idle as the result of two potentially destabilizing domestic developments .

but they have also been made nervous by two events in West Germany .

On Sunday , the governing Christian Democratic Union suffered a series of setbacks ,

that the CDU wo n't be able to hold office in federal elections at the end of 1990 .

And statements by the chairman of the IG Metall labor union , Franz Steinkuehler , also cast a cloud over trading ,

to achieve its main goal of a 35-hour workweek , down from current 37-hour workweek .

The decline in prices cut broadly through the blue-chip issues ,

Elsewhere , share prices closed lower in Zurich , Amsterdam , Milan and Stockholm .

as calculated by Morgan Stanley Capital International Perspective , Geneva .

Directors of Bergen Bank and Den Norske Creditbank , two of Norway 's leading banks , announced

The merger would create Scandinavia 's seventh largest bank , with combined assets of 210 billion Norwegian kroner

that the proposed merger agreement was considered in separate board meetings in Oslo Monday .

the agreement will be submitted to their respective supervisory boards next Wednesday .

Time Warner Inc. is considering a legal challenge to Tele-Communications Inc. 's plan

that could lead to all-out war between the cable industry 's two most powerful players .

by attempting to discourage other cable operators from joining Tele-Communications as investors in Showtime ,

Last week , Tele-Communications agreed to pay Viacom Inc. $ 225 million for a 50 % stake in its Showtime subsidiary ,

which is a distant second to Time 's Home Box Office in the delivery of pay-TV networks to cable subscribers .

Earlier this year , Time even discussed bringing Tele-Communications in as an investor in HBO ,

The purchase of the Showtime stake is `` a direct slap in our face , ''

Time is expected to mount a legal challenge in U.S. District Court in New York ,

charging Time and HBO with monopolizing the pay-TV business and trying to crush competition from Showtime .

that would prevent Tele-Communications from dropping HBO in any of its cable systems in favor of Showtime .

Jerome Kern , Tele-Communications ' chief outside counsel , said

to characterize the Tele-Communications investment in Showtime as anti-competitive

`` It 's hard to see how an investment by the largest { cable operator } in the weaker of the two networks is anti-competitive ,

when the stronger of the two networks is owned by the second largest '' cable operator ,

Tele-Communications controls close to 12 million cable subscribers ,

the ownership of both cable systems and cable-programming networks gives the company too much market power .

particularly since Viacom also owns cable networks MTV , VH-1 and Nick at Nite .

Ironically , Tele-Communications and Time have often worked closely in the cable business .

Together , they control nearly 40 % of Turner Broadcasting Systems Inc. ;

But since Time 's merger with Warner Communications Inc. , relations between the two have become strained .

the Tele-Communications investment and other developments are weakening Viacom 's antitrust suit against Time .

Viacom accuses Time in its suit of refusing to carry Showtime or a sister service , The Movie Channel , on Time 's Manhattan Cable TV system , one of the nation 's largest urban systems .

Showtime has also accused HBO of locking up the lion 's share of Hollywood 's movies

But Showtime has continued to sign new contracts with Hollywood studios ,

barring Imo Industries Inc. from acquiring the shares outstanding of the U.S. unit of the British company , United Scientific Holdings PLC , for $ 69 million .

that the proposed acquisition could substantially reduce competition '' in the production of certain image intensifier tubes ,

it would seek to enjoin the proposed acquisition in a federal trial court ,

Under federal law , if the court grants a preliminary injunction ,

to determine the legality of the proposed stock purchase within 20 days .

Officials at the United Scientific unit , Optic-Electronic Corp. of Garland , Texas , and at Imo Industries of Lawrenceville , N.J. , could n't be reached for comment .

The airline industry 's fortunes , in dazzling shape for most of the year , have taken a sudden turn for the worse in the past few weeks .

Citing rising fuel costs , promotional fare cuts and a general slowdown in travel ,

several major carriers have posted or are expected to post relatively poor third-quarter results .

Yesterday , USAir Group Inc. , recently one of the industry 's stellar performers , posted a worse-than-expected $ 77.7 million net loss for the period .

So far , the industry 's fourth quarter is n't looking too strong either ,

prompting many analysts to slash earning projections for the rest of the year by as much as one-fourth .

and many carriers seemed to be growing fat on near-monopolies in certain markets .

Now , many airline companies might become a lot less attractive as takeover targets on Wall Street .

The downturn also raises questions about the carriers ' ambitious orders for new airplanes ,

which currently total $ 32.5 billion over the next three years .

For travelers , though , the industry 's problems have had some positive effects .

In recent weeks , airlines have cut numerous fares in leisure markets

Just last week , for example , Trans World Airlines and Pan Am Corp. 's Pan American World Airways went so far as to offer cash rebates or gift checks of $ 200 to $ 1,000 to certain frequent-flier members

making trans-Atlantic flights in business class or first class .

when AMR Corp. , parent of American Airlines , reported an 8.8 % drop in third-quarter net income

its third-quarter results would be `` significantly lower '' than a year earlier .

Its loss of $ 77.7 million , or $ 1.86 a share , contrasted with net of $ 68.5 million , or $ 1.58 a share , in the 1988 third quarter .

Revenue rose only 3.3 % in the latest period , to $ 1.53 billion from $ 1.48 billion .

For the nine months , the Arlington , Va. , company 's net plunged 73 % to $ 38.5 million , or 76 cents a share , from $ 142.2 million , or $ 3.28 a share .

It ended at $ 40.125 , down $ 2.375 , in New York Stock Exchange composite trading .

the industry 's domestic traffic was flat in the third quarter ;

this was because hefty fare increases earlier in the year scared off many leisure travelers this summer .

average fares rose only 1.7 % in August , in contrast to increases of 16 % each in February and March .

This summer , the industry introduced a `` kids fly free '' program ,

because awards are being redeemed at a heavier-than-normal rate .

about three times as many free-travel coupons are being turned in as in previous years

-- not surprisingly , as the airlines last year allowed many travelers to build up mileage at triple the normal rate .

USAir , for example , blamed some of its loss on merger expenses and on disruptions

Whatever the cause for the downturn , few people are predicting any sudden improvement .

Airline Economics Inc. , an aviation consulting firm , is projecting an industrywide operating profit of $ 2.5 billion for 1989 ,

compared with earlier forecasts of $ 3 billion to $ 3.5 billion .

that profit will slip to between $ 1 billion and $ 1.5 billion .

But now , Charlie Brown is about to start pitching everything from Chex Party Mix to light bulbs .

Turns out that next year , Charlie Brown , Snoopy and the gang turn 40

-- and Scripps Howard 's United Media unit , the syndicator and licensing agent for Charles Schulz 's comic strip , sees a bonanza in licensing the cartoon characters to a bevy of advertisers for ads , tie-ins and promotions .

says Peter Shore , United Media 's vice president of marketing and licensing .

The comic strip `` has a magical , everlasting quality about it .

Our plan is to honor Charles Schulz and the strip all year long . ''

The effort will make the Peanuts gang very familiar pitchmen in 1990 .

Ralston Purina will promote its Chex Party Mix 's three new flavor packets

The characters will also be featured in a new public service effort for the United Way .

Beyond the advertisements , the syndicator is planning a traveling arena show , new TV specials for CBS and even an exhibit at the Smithsonian Institute .

The yearlong schedule of festivities will be kicked off officially with a combination live and animation half-time special at the Super Bowl in January .

All the tie-ins , though , have some marketing experts questioning

says Al Ries , of Trout & Ries , a Greenwich , Conn. , marketing consulting firm .

you have to make your message as distinct , sharp and individual as possible .

Sharing a character with other advertisers is n't a way to do that . ''

Metropolitan Life ad executives could n't be reached about the use of the Peanuts characters by others .

that company 's exclusive advertising rights extend only to the insurance and financial services category .

after being asked by Ogilvy 's chairman and chief executive officer , Kenneth Roman , to give up his title as creative head of the New York office and to take a fuzzier international role .

RJR Nabisco Inc. awarded its national broadcast media-buying assignment to FCB/Leber Katz Partners , the New York outpost of Chicago-based Foote , Cone & Belding .

The naming of FCB/Leber Katz Partners as agency of record for Nabisco Brands Inc. and Planters LifeSavers Co. follows RJR Nabisco 's announcement last week

it will spend more than $ 140 million this year , down from about $ 200 million last year .

third-quarter net rose 15 % to $ 6.9 million , or 21 cents a share , from $ 6 million , or 18 cents a share , in the year-earlier period .

Revenue increased more than 5 % to $ 283.2 million from $ 268.6 million .

PepsiCo Inc. will give away 4,000 sets of `` Game Boy , '' Nintendo 's new hand-held video game in a two-month promotion

International Business Machines Corp. agreed to acquire a 15 % stake in Paxus Corp. , an Australian computer-software and information-services concern , for 20 million Australian dollars

The investment will be made through IBM Australia Ltd. , a unit of IBM ,

it has several `` well developed product and services relationships '' with the U.S. computer company ,

The agreement requires approval from Australia 's Foreign Investment Review Board and National Companies and Securities Commission , and from shareholders of Paxus .

Bond Corp. Holdings Ltd. 's consolidated debt totals 6.9 billion Australian dollars

Alan Bond , chairman and controlling shareholder of the cash-strapped Australian media , brewing , resources and property concern , disclosed the debt figures yesterday .

that Bond Corp. incurred an overall loss of A $ 980.2 million for the fiscal year

ended June 30 , the largest loss in Australian corporate history .

The debt load would have been higher but for a reduction of A $ 5 billion over the past year from asset sales ,

the debt will be reduced by another A $ 3.8 billion this fiscal year

Mr . Bond blamed rising Australian interest rates and the acquisition of Bell Group `` with its very high levels of shortterm debt ''

`` we embarked on fundamantal changes in the structure and direction of the group . ''

That reassessment resulted in continuing asset sales , as well as write-offs

Among these are the company 's Australian brewing assets , in the books at A $ 950 million but actually worth A $ 2.5 billion ,

An investment in Chile 's telephone company is carried at US $ 300 million

and the company 's property portfolio is undervalued by at least A $ 250 million ,

that by next June , `` what will emerge will be a company with a honed sense of purpose . . . a stable balance sheet , with good-quality assets in brewing , telecommunications , media and property . ''

signaling that all the company 's coal and oil interests might be for sale in total or in part .

Mercedes-Benz of North America Inc. , Grosse Pointe Shores , Mich. , estimated

even though they see the U.S. luxury-car market expanding slightly .

Erich Krampe , president of the U.S. sales arm of West German auto maker Daimler Benz AG , predicted

luxury-car sales will rise to 840,000 in 1990 from 830,000 this year

that Mercedes plans to bring out new models every year through the mid-1990s

and it will shorten its product development cycle to eight years from 10 or 12 years

to compete more effectively with Toyota Motor Corp. 's Lexus , Nissan Motor Co. 's Infiniti and Honda Motor Co. 's Acura luxury-car divisions .

The Treasury plans to raise $ 1.8 billion in new cash with the sale Monday of about $ 15.6 billion in short-term bills

The offering will be divided evenly between 13-week and 26-week bills

Tenders for the bills , available in minimum $ 10,000 denominations , must be received by 1 p.m. EST Monday at the Treasury or at Federal Reserve banks or branches .

to raise the statutory debt limit before the scheduled auctions Monday .

A year ago , the Minneapolis glass products and aluminum window maker earned $ 4 million , or 30 cents a share , on revenue of $ 114 million .

and it expects them to continue to do so in the remainder of the fiscal year .

Randolph W. McElroy , a vice chairman of this bank-holding company , was named to the additional position of chairman of its principal unit , Sovran Bank .

Mr. McElroy , 54 years old , will remain president and chief executive officer of the unit .

Sovran also named John B. Werner a vice chairman of the parent company and the unit

and elected him to the newly created position of chief credit officer of Sovran Financial ,

Mr. Werner , 58 , was formerly senior executive vice president of the parent company and the unit .

The debt-rating concern cited the bank 's move into the Texas market ,

its profitability and capital adequacy measurements will be depressed relative to the bank 's past performance .

reflecting the support of other banking affiliates and substantial assistance for the FDIC .

Officials at the New York bank-holding company were n't available for comment on the debt-rating changes .

a reminder of the insurance market 's origins in a coffeehouse in 17th century London .

Lloyd 's , once a pillar of the world insurance market , is being shaken to its very foundation .

The 301-year-old exchange is battered by enormous claims from a decade-long run of unprecedented disasters ,

the most recent of which is last week 's earthquake in California 's Bay Area .

At the same time , Lloyd 's is besieged by disgruntled investors

The exchange is gradually being squeezed into narrow , less-profitable segments of the market by less hidebound competitors .

threatening to sue exchange underwriters for alleged mismanagement and negligence .

Most troublesome is the shrinking pool of `` names , '' the well-heeled investors

who , as members of about 360 syndicates , underwrite policies .

Some 1,750 members quit the exchange last year , more than triple the number of resignations in 1987 .

The average after-tax return on investment in 1986 , the most recent year

according to Chatset Ltd. , an insurance consulting firm in London .

Lloyd 's reported over # 3.6 billion in claims and reserves against future losses

more than double the # 1.35 billion posted in the previous five-year period .

are beginning to question one of the exchange 's most basic tenets , the concept of unlimited personal liability .

but they are liable to their last pound or dollar in the event of a catastrophe .

Lloyd 's claims for the 1988 Piper Alpha oil-rig disaster in the North Sea , for instance , may reach $ 1 billion .

roughly 80 % of the names had money tied up in money-losing syndicates ,

The peril of unlimited liability looms large for a number of them now .

whose Lloyd 's membership was a bonus from a former employer in 1981 ,

belongs to Mr. Nutting 's dissident group on the Outhwaite syndicate ,

who underwrote # 20,000 , or about $ 32,000 , of insurance coverage on that syndicate ,

says Keith Whitten , a British businessman and a Lloyd 's member since 1979 .

Lloyd 's is being squeezed out of low-margin but more consistently profitable product lines such as primary property and marine insurance .

Over the past decade , competitors have chipped away at the exchange 's share of the # 2.5 billion marine market in London ,

Lloyd 's 66 % stake in that market has shrunk to 50 % in that period ,

according to an official at the Institute of London Underwriters , a Lloyd 's competitor .

Much of the business has gone to the institute , an association of more than 100 insurers ,

including Cigna Corp. , Allianz Versicherungs AG of West Germany and Britain 's Commercial Union Assurance PLC .

At the peak of its power and influence a century ago , Lloyd 's dominated the insurance world with a 50 % stake .

and it monitored commerce through a unrivaled intelligence network in ports around the globe .

Though Lloyd 's pioneered such now-standard policies as worker 's compensation insurance , burglary insurance for homeowners and businesses , and bankers ' liability insurance ,

Beyond that , many big oil , chemical and airline companies are siphoning off big chunks of the market

by insuring themselves through `` captive '' offshore companies for industry-specific coverage .

Only 10 years ago , for instance , Lloyd 's was the pre-eminent insurer of thoroughbred horses .

But since 1981 , Kirk Horse Insurance Inc. of Lexington , Ky. has grabbed a 20 % stake of the market .

because its structure does n't allow underwriters to deal directly with clients ;

is cut off from `` the vast body of premium down at the bottom end

which acts as a steadying influence '' against catastrophic losses .

By that , he means low-margin but low-risk products such as certain types of primary property insurance .

Three years ago , the exchange took up residence in a space-age tower of steel and glass

But along with such treasured artifacts as Lord Nelson 's spyglass , Lloyd 's also brought its outmoded ways

The Lloyd 's market actively underwrites insurance just 4 1/2 hours a day ,

Underwriting does n't get under way until after morning tea at 10 a.m .

Things wind down at about 4:30 p.m. , just in time for afternoon tea .

Lloyd 's vast trading hall houses a warren of well-polished desks .

he and his fellow underwriters underestimated by as much as 50 % the premiums

`` How unprofessional we must have appeared to the outside world

the San Francisco earthquake will cause the industry to boost rates even further .

before it is clear whether higher rates will offset the payouts for such disasters .

The magnitude of the exchange 's problems may not become known for some time

Lloyd 's only recently reported its financial results for 1986 .

That year , it posted record pretax profit of # 650 million , a gain

the exchange 's downturn in profitability is likely to be aggravated by more than $ 600 million in aviation losses

( including the 1988 Pan Am airline disaster over Lockerbie , Scotland )

and a still-uncalculated chunk of claims from September 's Hurricane Hugo .

the departures of names is n't likely to hurt its underwriting capacity , currently about # 11 billion .

the drain of funds has been offset by an increase in investments by the remaining names .

Though Lloyd 's has talked for years about computerizing underwriting transactions ,

Competition among underwriters and brokers makes them loath to centralize price and policy information .

Both groups cling to traditional face-to-face dealings , even for routine policies .

Some underwriters have been pressing for years to tap the low-margin business

Lloyd 's presently sells only auto insurance directly to the public ,

and such policies are sold only in limited markets such as the U.K. and Canada .

But such changes must be cleared by four internal committees and dozens of underwriters , brokers and administrators

By next year , all underwriters will be linked to a communications network

Yoshitoki Chino retains his title of chairman of Daiwa , Japan 's second-largest securities firm .

In Japanese firms , the president usually is in charge of day-to-day operations ,

While people within Daiwa , particularly internationalists , expected

that Mr . Dozen , 52 , would eventually become Daiwa 's president ,

It was only earlier this year that the jovial , easygoing executive

-- he likes to joke with Americans about how his name is synonymous with twelve --

but that is still seeking to realize its potential in global investment banking and securities dealing .

As of March 31 , the Daiwa group had shareholder equity of 801.21 billion yen

Several observers interpreted Mr . Dozen 's appointment as an attempt by Daiwa

while preparing the firm for the effects of the continuing deregulation of Japan 's domestic markets ,

-- Nomura Securities Co. Ltd. , the world 's largest , Nikko Securities Co. Ltd. , Yamaichi Securities Co. Ltd. and Daiwa --

they have been only marginally profitable , if at all , in the U.S .

American institutional investors have never had a large appetite for Japanese equities .

while the Japanese have stepped up their purchases of U.S. shares in the past several months ,

At the same time , Daiwa and its brethren have faced stiff competition from well-entrenched American competitors

that have prevented them from building strong links to U.S. corporations and institutional investors .

he tried selling Japanese yen-denominated bonds to U.S. investors .

By his own account , Mr . Dozen did n't do much better with U.S. bonds .

how after some training at Salomon Brothers Inc. , he successfully bid for the opportunity

when he and two colleagues went on an overnight fishing expedition off the New Jersey shore

that Daiwa 's goal is to build `` a high-technology oriented international organization with maybe some Japanese flavor to it . ''

that he was particularly interested in his firm gaining expertise in futures , options , mortgaged-backed securities , computerized trading and investment systems as well as mergers and acquisitions .

Daiwa 's strengths were its large capital base , its influential position in the Tokyo market and its links to Japanese corporations and institutional investors .

Mr . Dozen joined Daiwa upon his graduation from Kyoto University in 1959 .

Like many young recruits in Japanese securities firms , he began his career peddling stock to individual investors .

In his climb to the top , Mr . Dozen also headed the company 's stock-exchange division , its fixed-income units and its international operations .

said Takuro Isoda , chairman of Daiwa 's U.S. unit in New York .

Commission income from domestic stock and bond sales accounts form a large portion of Japanese securities companies ' earnings .

Inco Ltd. posted a 35 % decline in third-quarter net income , a performance

The nickel producer also raised its quarterly dividend to 25 cents a share from 20 cents

that the cash-rich company had failed to announce a special dividend .

Inco closed at $ 31.125 a share , down 62.5 cents , in New York Stock Exchange composite trading .

could still announce a special dividend in the next few months ,

though it would be smaller than the $ 10-a-share special dividend

The quarterly dividend is payable Dec. 1 to shares of record Nov. 3 .

Inco 's net fell to $ 129.3 million , or $ 1.23 a share , in the third quarter from $ 200.3 million , or $ 1.88 a share , a year earlier .

earnings in the latest quarter were $ 117.7 million , or $ 1.12 a share ,

the drop in earnings resulted mainly from lower nickel prices for the period and a temporary cut in nickel output at the company 's Manitoba operations due to high levels of arsenic in the ore .

it plans to buy back as many as five million common shares over the next 12 months

Under a previous buyback program , Inco has purchased 1.7 million of its shares since April .

UAL Corp. 's board quashed any prospects for an immediate revival of a labor-management buy-out ,

As a result , UAL 's chairman , Stephen M. Wolf , pulled out of the buy-out effort

The two developments put the acquisition attempt back to square one

when the labor-management group was unable to obtain financing for its $ 300-a-share , $ 6.79 billion offer .

when British Airways PLC , the largest equity investor in the labor-management bid , withdrew its support .

which had risen $ 9.875 to $ 178.375 in composite trading on the New York Stock Exchange on reports of a new bid

and plummeted in off-exchange trading after the 5:09 p.m. EDT announcement .

were 10,000 shares at $ 170 , 6,000 shares at $ 162 , 2,500 at $ 162 , and 10,000 at $ 158 .

The rebound in UAL stock during regular trading hours Monday was its first daily gain

after six consecutive losses left the price 41 % below its level before Oct. 13 , the day

the bank financing could n't be obtained for the original deal .

Twelve of UAL 's outside directors met at a five-hour meeting yesterday in Chicago

to consider an informal proposal from the buy-out group for a revised bid .

And , with no other offers on the table , the board apparently felt no pressure to act on it .

that they would be willing to consider future offers or take some other action

they would continue to explore `` all strategic and financial alternatives . ''

But it was clear that for the time being , the board wants the company to return to normalcy .

that `` the welfare of the company , its shareholders , its employees and the broader public . . . can best be enhanced by continued development of UAL as a strong , viable , independent company . ''

Mr. Wolf urged all employees to `` now turn their full attention '' to operating the airline .

For a brief time , the buy-out effort seemed to solve his problems with United 's pilot union .

In return for an ownership stake in the company , the pilots were willing to agree to a seven-year contract

that included a no-strike clause and significant wage concessions and productivity gains

As a `` good-will measure , '' the pilots had been working four extra hours a month

The buy-out effort also worsened already-strained relations between United 's pilot and machinist unions .

The machinists ' criticisms of the labor-management bid and their threats of a strike

The machinists previously had shown themselves to be an ally to Mr. Wolf ,

and received an additional 9 % of the company at no additional cost .

His credibility is also on the line in the investment community .

Until the collapse of this bid , Mr. Wolf was regarded as one of the nation 's savviest airline executives

after engineering turnarounds of Tiger International Inc. and Republic Airlines .

But he and his chief financial officer , John Pope , sowed some of the seeds for the deal 's failure

while they invested in the transaction only a small fraction of the $ 114.3 million

The board 's actions leave takeover stock traders nursing some $ 700 million in losses and eager to respond to anyone

the company did n't announce some recapitalization or other plan

that arbitragers could force a recapitalization through the written consent process

that includes a special dividend for holders and a minority ownership stake for employees .

whose $ 240-a-share offer for UAL in August triggered a bidding war ,

However , he is restricted from making certain hostile moves by an agreement

We 've heard California 's property-tax-cutting Proposition 13 blamed for a lot over the years ,

but ABC 's Ted Koppel came up with a new wrinkle in his earthquake coverage last week

that California 's roads and bridges are n't funded by property taxes but by state and federal gasoline taxes .

A series of explosions tore through the huge Phillips Petroleum Co. plastics plant near here ,

The Bartlesville , Okla. , oil company late yesterday still had n't said officially

which sent columns of heavy black smoke billowing high into the air .

Glenn Cox , Phillips ' president and chief operating officer , and other Phillips officials flew from Bartlesville

In composite trading on the New York Stock Exchange , Phillips Petroleum shares fell $ 1.125 to $ 23.125 .

The plastics plant is located on an 800-acre tract in the heart of the petrochemical corridor

The U.S. Coast Guard closed six miles of the Houston Ship Channel ,

Broken water lines and gas leaks hindered firefighters ' efforts ,

The initial fireball was caught by cameras in downtown Houston , about 10 miles away .

were treated for burns , breathing problems and cuts from flying glass ,

Yesterday 's explosions were the second round in two months at the plastics plant .

and one Phillips employee died after an explosion at a fuel supply line near the facility 's boiler house .

The Phillips facility manufactures polyethylene , polypropylene and K-resin , plastics

Plastics are the cornerstone of Phillips ' chemicals operations ,

which is the biggest single contributor to the company 's profits .

requiring a Chicago organized crime figure to pay the government $ 250,000 ,

he gained from his involvement with the International Brotherhood of Teamsters .

that the government had obtained any disgorgement from an organized crime figure

was one of numerous defendants in the government 's sweeping racketeering suit against the Teamsters .

the government accused the union 's leadership of depriving its 1.6 million members of their rights through a pattern of racketeering .

that organized crime figures had routinely handpicked the union 's top officials .

U.S. District Judge David Edelstein also permanently enjoined Mr. Lombardo from any future dealings with the Teamsters or any other labor union .

All cleanup costs from last spring 's Alaskan oil spill were reflected in earlier results ,

Phillips Petroleum Co. and Atlantic Richfield Co. also reported declines in quarterly profit ,

Amerada Hess Corp. and Occidental Petroleum Corp. reported higher earnings .

those expenses as well as the cost of a continuing spill-related program are covered by $ 880 million in charges

that at this time the oil company does n't anticipate any additional charges to future earnings

Exxon 's net income during the third quarter dropped to $ 1.11 billion , or 87 cents a share , from $ 1.22 billion , or 93 cents a share , a year earlier .

During the third quarter , Exxon purchased 8.34 million shares of its stock at a cost of $ 373 million .

Exxon 's profitability , like that of many other oil companies , was hurt during the third quarter by declining returns from the chemicals and refining and marketing businesses .

Exxon 's earnings from chemicals operations fell $ 90 million , to $ 254 million ,

while refining and marketing profits declined $ 180 million , to $ 357 million .

to offset the declining profits in those business sectors at most oil companies ,

that the price of West Texas Intermediate , the U.S. benchmark crude , was $ 4.04 a barrel higher during the third quarter of this year than in the same period last year .

A rash of one-time charges left Ashland Oil with a loss of $ 39 million for its fiscal fourth quarter .

A year earlier , the refiner earned $ 66 million , or $ 1.19 a share .

Quarterly revenue rose 4.5 % , to $ 2.3 billion from $ 2.2 billion .

For the year , net income tumbled 61 % to $ 86 million , or $ 1.55 a share .

resulting from settlement of a 10-year dispute with the National Iranian Oil Co. over claims

for selling Ashland Technology Corp. , one of its subsidiaries , at a loss .

Third-quarter earnings at Amerada Hess more than tripled to $ 51.81 million , or 64 cents a share , from $ 15.7 million , or 20 cents a share , a year earlier .

Refining and marketing earnings climbed to $ 33.3 million from $ 12.9 million ,

and exploration and production earnings rose to $ 37.1 million from $ 17.9 million .

after Hurricane Hugo heavily damaged the company 's refinery at St. Croix .

that Hess had to buy oil products in the high-priced spot markets

Phillips Petroleum 's third-quarter earnings slid 60 % , to $ 87 million , or 36 cents a share , from $ 215 million , or 89 cents a share .

Shrinking profit margins in chemical and refining and marketing sectors accounted for most of the decline ,

A year ago , results were buoyed by a $ 20 million after-tax gain from an asset sale .

Occidental Petroleum 's third-quarter net income rose 2.9 % to $ 108 million , or 39 cents a share , from $ 105 million , or 38 cents a share , a year earlier .

The latest quarter included an after-tax gain of $ 71 million from non-recurring items .

The latest period included a $ 54 million gain from the sale of various oil and gas properties , a $ 22 million charge from the restructuring of Occidental 's domestic oil and gas operations , and tax credits of $ 42 million .

Both periods included non-recurring charges of $ 3 million for early retirement of debt .

The latest period includes net gains of $ 32 million in non-recurring credits from the sale of properties ,

indicating operating losses for the quarter in the oil and gas division .

Citing its reduced ownership in the Lyondell Petrochemical Co. ,

that net income slid 3.1 % in the third quarter to $ 379 million , or $ 2.19 a share , from $ 391 million , or $ 2.17 a share , for the comparable period last year .

Arco 's earnings from its 49.9 % stake in Lyondell fell to $ 37 million from $ 156 million for the same period last year ,

Offsetting the lower stake in Lyondell were higher crude oil prices , increased natural gas volumes and higher coke prices ,

For the nine months , Arco reported net income of $ 1.6 billion , or $ 8.87 a share , up 33 % from $ 1.2 billion , or $ 6.56 a share a year earlier .

$ 575 million of electric and gas system revenue refunding bonds , Series 1989 , 1989A and 1989B ,

The issue includes current interest bonds due 1991-2000 , 2009 , 2012 , 2014 and 2016 , and capital appreciation bonds due 2001-2005 .

The bonds are rated double-A by Moody 's Investors Service Inc. and Standard & Poor 's Corp .

$ 137.6 million of sports facilities lease revenue bonds , Series 1989 D , due 1992-1999 , 2004 , 2009 and 2019 ,

The bonds are rated double-A by Moody 's and double-A-minus by S & P .

The offering , Series 107 , is backed by Freddie Mac 15-year , 9 % securities ,

and brings Freddie Mac 's 1989 Remic issuance to $ 32.8 billion and its total volume to $ 46.8 billion

The offering , Series 1989-85 , is backed by Fannie Mae 9 % securities .

Separately , a $ 400 million issue of Fannie Mae Remic mortgage securities is being offered in 15 classes by Bear , Stearns & Co .

The offering , Series 1989-86 , is backed by Fannie Mae 9 % securities .

Finally , a $ 300 million issue of Fannie Mae Remic mortgage securities is being offered in 12 classes by Smith Barney , Harris Upham & Co .

The offering , Series 1989-87 , is backed by Fannie Mae 9 1/2 % securities .

The three offerings together bring Fannie Mae 's 1989 Remic issuance to $ 32.4 billion and its total Remic volume to $ 44.5 billion

100 million Canadian dollars of 10 3/4 % deposit notes due Nov. 30 , 1994 ,

The issue is the first by Ford Motor Credit , a unit of Ford Motor Co. , and the second largest in the four-year history of the $ 45 billion asset-backed market .

The largest issue was a $ 4 billion offering of auto-loan securities by General Motors Acceptance Corp. in 1986 .

The Ford issue , through Ford Credit 1989-A Grantor Trust , was priced at a yield spread of 95 basis points above the Treasury 7 3/4 % issue due July 1991 .

The offering is rated doubleA-2 by Moody 's and double-A by S & P ,

based on the quality of the underlying auto loans and a guarantee

has been signed to co-host a half-hour nightly program on the Consumer News and Business Channel , the cable channel

partly owned by the General Electric Co. 's National Broadcasting Co .

The premiere of `` Showdown , '' with Mr. Downey and Richard G. Carter , a columnist with the New York Daily News , is scheduled for Dec. 4 at 8 p.m .

viewers will no longer have to endure the shouting of `` Mort ! Mort ! Mort ! ''

But just how does Mr. Downey 's unorthodox style mesh with the sedate tone of CNBC 's business programming ?

Many of those `` cyclical '' issues are in the Dow Jones Industrial Average ,

Declining issues on the New York Stock Exchange outpaced advancers , 1,012 to 501 .

that the selling of cyclical stocks yesterday will be followed by a sell-off in shares of companies with big debt loads on their balance sheets .

In an economic slowdown , heavy debt loads reduce the flexibility of companies

On the other hand , investors beat a clear path yesterday to blue-chip issues with proven earnings growth records .

Among the 30 Dow industrials , they bought McDonald 's , Coca-Cola Co. and Procter & Gamble

In another sign of slowdown fears , investors dumped technology shares .

Many money managers are bracing for a decline in stocks of companies with big debt loads on their balance sheets .

said J. David Mills , senior vice president at Boston Company Advisers .

In fact , much of the buying in blue chips yesterday was a pursuit of companies with lower debt levels .

Edward Kerschner , chairman of PaineWebber 's investment policy committee , suggested

companies have to pay increasing attention to balance sheets , ''

that investors buy the shares of Great Atlantic & Pacific Tea , J. Baker , McDonald 's , Philip Morris and Sara Lee .

that all of these companies will be able to compete fiercely in an economic downturn .

the company is carrying real estate assets at about $ 2.6 billion below their real value .

According to Salomon Brothers ' `` stub '' stock index of 20 companies

investors are already beginning to retreat from shares of debt-laden companies .

said Eric Sorenson , director of quantitative analysis at Salomon Brothers .

whose third-quarter earnings dropped about 35 % from a year earlier

even though the companies ' results for the quarter were in line with forecasts .

which went down 2 to 64 7/8 in Big Board composite trading of 1.3 million shares ;

Goodyear Tire & Rubber , off 1 1/2 to 46 3/4 , and American Express , down 3/4 to 37 1/4 .

that third-quarter earnings fell more than 30 % from the year-ago level ,

Motorola , another major semiconductor producer , dropped 1 1/8 to 57 1/2 .

whose earnings have been hurt by continued problems at its MeraBank unit ,

Growing pressures on the Arizona real-estate market are affecting the thrift ;

Merrill Lynch and Prudential-Bache Securities both lowered the stock 's investment rating

Elsewhere in the chemicals sector , Dow Chemical fell 1 1/4 to 97 1/2 ,

Third-quarter earnings at both companies were below analysts ' forecasts .

UAL advanced 9 7/8 to 178 3/8 on 1.1 million shares on anticipation of a revised takeover offer from a labor-management group for the parent company of United Airlines .

which calls for the company to sell its hotel operations for $ 540 million and spin off its casino business to shareholders .

The revision follows last month 's withdrawal of a $ 400 million junk-bond offering for the new casino company , Aztar Corp .

Entertainment and media stocks generally escaped the market 's slide as well .

The American Stock Exchange Market Value Index lost 3.11 to 379.46 .

it had been notified unofficially that Waertsilae Marine Industries , a Finnish shipyard

normally associated with linebackers and heavyweight contenders .

At his old job in Compton , Calif. , he took a bitter teachers ' strike

At his first Chicago press conference , he berated the reporters .

In New York City , the new Chancellor , Joseph Fernandez , has landed like a 16-inch shell in the middle of a system

Former Patterson , N.J. , principal Joe Clark was no doubt the general public 's first experience with this new breed of no-nonsense administrator .

The subject of the movie `` Lean on Me , '' Mr. Clark controlled his school with a bullhorn and a baseball bat .

but is n't it interesting that some of the country 's biggest , most troubled school districts are choosing new chiefs from the same gravel-chewing mold ?

her top priority will be to `` cut through the dead hand of bureaucracy . ''

He 's attacked the concept of `` building tenure , '' one of the most disgraceful institutions in American public schools .

It means it is virtually impossible to fire or even transfer incompetent principals .

despite a serious drinking problem and rarely showing up for work .

In his old job , as Dade County chief , Mr. Fernandez forced out 92 teachers and reshuffled 48 principals .

But the no-more-nonsense superintendents are going to have to be judicious as well ;

Chicagoans have just elected 540 neophyte school boards , one for each school .

Getting a community of parents to care again about its schools is essential ,

The rise of superintendents such as Joseph Fernandez and Ted Kimbrough suggests plainly the process of disintegration in many school systems .

The schools ' central mission , educating children , became subsumed by the competing interests of bureaucrats , politicians and unions .

The classroom itself operated on the periphery of this awful system ,

Ingersoll Publications Co. agreed to buy the New Haven Register in a transaction

Goodson has accused Ingersoll of paying less attention to its properties and more to such ventures as the recent launch of the St. Louis Sun .

Under the terms of the accord , Ingersoll will pay about $ 255 million for the Register , a daily

Goodson will pay the additional $ 20 million in settlement of the management contract .

that it hired the former president and senior vice president of Ingersoll

Both executives left the company after clashes with Chairman Ralph Ingersoll Jr .

associated with its purchase of the Morristown Daily Record for $ 155 million in 1987 .

The New Jersey paper , like the New Haven , Conn. , paper , was purchased by Ingersoll on Goodson 's behalf as part of the management contract .

David N. Hurwitz , president and chief operating officer of Goodson , said in a telephone interview

former president of Ingersoll Publications , and Ray Cockburn , former senior vice president , would head the new in-house management team at Goodson ,

The association between the two companies stretches back thirty years to a friendship between television producer Mark Goodson and Ingersoll founder Ralph Ingersoll .

and acting as an agent in the purchase of newspapers for Goodson .

But in recent years , Mr. Ingersoll began focusing more on expanding his own newspaper empire in partnership with investment banking firm Warburg , Pincus & Co .

Ingersoll has 28 dailies and 200 other non-daily papers in the U.S. and Europe .

that the company is `` delighted by the conclusion of the Goodson relationship ''

and will be able to `` concentrate all our energies '' on Ingersoll 's own papers .

`` unfortunately over the past few years , it has become increasingly clear that Ralph and I have different agendas , ''

whose sole interest and responsibility is in the Goodson papers . ''

Just five months after Ogilvy Group was swallowed up in an unsolicited takeover ,

Kenneth Roman , Ogilvy 's chairman and chief executive officer , said

to become American Express 's executive vice president for corporate affairs and communications .

to take `` executive responsibility '' for an embarrassing effort

American Express representatives apparently influenced the publication of unfavorable articles about Mr. Safra .

he will continue to work as a consultant for American Express on a project basis .

Ad industry executives were n't surprised by Mr. Roman 's decision

The agency , under his direction , bitterly fought a takeover attempt by WPP Group PLC of London

although Mr. Roman and WPP 's chief executive , Martin Sorrell , have gone out of their way

Mr. Roman will be succeeded as the head of Ogilvy 's flagship ad agency , Ogilvy & Mather Worldwide , by Graham Phillips , 50 ,

Alexander Brody , 56 , will take on the newly created position of president of the world-wide agency and chief executive of its international operations .

Mr. Roman also had overseen Ogilvy Group 's two other units , the Scali McCabe Sloves advertising agency and its research division ,

-- which can only help American Express in the wake of the Safra incident .

He also is close to American Express 's chairman and chief executive officer , James D. Robinson III .

Aside from working with Mr. Robinson on the American Express advertising account for about 11 years ,

Mr. Roman serves on several of the same charities and boards as Mr. Robinson .

that Mr. Roman had been pushed out of Ogilvy 's top spot by Mr. Sorrell .

( The wine , naturally , was Seagram 's brand , an Ogilvy client ) .

American Express 's Mr. Robinson first approached him about the job in late September .

Peter Sutherland , a former European Community commissioner from Ireland , was also a serious contender for the American Express job .

he will be on retainer to American Express as an adviser on international matters .

Mr. Roman also brushed aside reports about infighting between him and Mr. Phillips , his successor at Ogilvy .

Mr. Phillips confesses to a fondness for , among other things , fast cars and planes .

who made him head of New York , head of the U.S. , president of North America ,

that he spent part of the weekend on Mr. Phillips 's boat in Connecticut .

Mr. Roman will oversee American Express 's public relations and government affairs , among other things ,

He also will sit on the company 's corporate planning and policy committee ,

Mr. Roman 's departure is n't expected to have any enormous repercussions at Ogilvy .

American Express , Kraft General Foods , and Mattel executives said

`` General Foods 's relationships with its agencies are based on the agencies ' work ,

said J. Nicholas Hahn , president and chief executive officer of Cotton Inc. ,

its flagship New York office has had a dismal track record recently ;

Ogilvy & Mather 's top creative executive , Norman Berry , left the agency earlier this year .

that having Mr. Phillips succeed Mr. Roman would make for a smooth transition .

Computer Sciences would n't disclose the proposed purchase price for Cleveland Consulting ,

But David Lord , managing editor of Consultants News , an industry publication

an industry standard would suggest a purchase price of between one and two times Cleveland Consulting 's approximately $ 15 million annual revenue .

and Cleveland Consulting declined to comment on the proposed sale .

AmBase Corp. , New York , awarded the ad account for its Home Insurance Co. unit to Biederman , Kelly & Shaffer , New York .

Puerto Rico Telephone Co. awarded its $ 3 million account to West Indies & Grey , Grey Advertising 's office in Puerto Rico .

to make and distribute movies to theaters overseas and , eventually , to U.S. theaters , too .

that will premiere on Turner Broadcasting 's Turner Network Television channel , or TNT ,

The unit 's first two offerings are slated to be `` The Secret Life of Ian Fleming , '' a dramatization about the former British spy

Ted Turner , Turner Broadcasting 's chairman , was named chairman of Turner Pictures ,

and Gerry Hogan , president of Turner Entertainment Networks , was named president of the unit .

the subsidiary 's primary mission will be to make movies for TNT and to distribute them internationally .

that might work well as films for theatrical release in the U.S .

that Turner Pictures may develop such movies next year for domestic release in 1991 .

Turner has made several movies , docudramas and documentaries for its networks in recent years ,

The Secret Life of Ian Fleming '' and `` Treasure Island '' cost more than $ 6 million each

The Turner move is in line with a cable-TV trend toward more original programming

it intends to bid for one of France 's other large financial and industrial holding companies , Cie. de Navigation Mixte .

once it receives the go-ahead from French stock market authorities ,

it will offer to boost its Navigation Mixte stake to 66.7 % from the current 18.7 % .

Its cash-or-shares bid values Navigation Mixte at about 22.82 billion francs

The move would greatly boost Paribas 's stake in the insurance , transport and food businesses ,

It also would make Paribas a major French ally of West Germany 's Allianz AG insurance group .

Allianz holds a 50 % stake in Navigation Mixte 's insurance interests ,

says Philippe Braye , a partner in portfolio management concern France Finance Quatre .

a big French investment banking group has snapped up an insurance group .

Last month , Paribas 's archrival , Cie. Financiere de Suez , won a battle for Groupe Victoire , France 's second-largest private-sector insurer ,

which itself had just acquired West Germany 's Colonia Versicherung AG .

Moreover , Suez had just finished winning an even larger battle last year for control of Societe Generale de Belgique .

the new bid in part simply reflects the continuing rivalry between France 's two largest investment banking groups .

as the European Community prepares to reduce internal trade barriers by 1992 .

Although Paribas Chairman Michel Francois-Poncet would n't rule out eventually selling all of Navigation Mixte 's insurance operations to Allianz ,

Navigation Mixte has investments in a sugar company , a food and canning concern , a bakery and bus and trucking firms , among others .

will help swell the French concern 's treasury to an estimated 11 billion francs .

it would offer three Paribas shares , themselves eligible for dividends as of next Jan. 1 , for one Navigation Mixte share .

aimed at encouraging open bids instead of gradual accumulation of large stakes .

in failing to move sooner for the insurance and industrial group ,

that his group initially intended to take only a minority stake ,

When notoriously independent-minded Navigation Mixte Chairman Marc Fournier rejected Paribas 's offer

that Mr. Fournier was preparing to buy as much as 20 % of Paribas , up from less than 5 % currently .

France 's second-largest government-owned insurance company , Assurances Generales de France , has been building its own Navigation Mixte stake ,

OPEC oil producers are n't putting the brakes on output ahead of the traditionally weak first quarter .

In trading on the New York Mercantile Exchange , the U.S. benchmark West Texas Intermediate crude fell 39 cents a barrel to $ 19.76 for December delivery .

that the Organization of Petroleum Exporting Countries is producing substantially more than its official limit of 20.5 million barrels a day ,

with some accounts putting the 13-nation group 's output as high as 23 million barrels a day .

That level of production did n't take its toll on futures prices for the fourth quarter ,

because first-quarter demand is normally the weakest of the year ,

news of a series of explosions at a major Phillips Petroleum Co. chemical facility on the Houston Ship Channel also was bearish for prices .

Even though such facilities use a relatively small amount of crude ,

now the facility wo n't need any , at a time of already high availability .

The Phillips plant makes polyethylene , polypropylene and other plastic products .

technical considerations now will help to put downward pressure on futures prices .

London Metal Exchange warehouse stocks were down only 4,800 metric tons for the week to 84,500 tons ;

expectations late last week were a drop of 10,000 to 15,000 tons .

According to Bernard Savaiko , senior commodity analyst at PaineWebber ,

Platinum and palladium struggled to maintain their prices all day

January platinum closed down $ 2.80 an ounce at $ 486.30 , nearly $ 4 above its low for the day .

Platinum is believed to have good support around $ 480 and palladium at around $ 130 .

Some traders were thought to be waiting for the auto sales report ,

Such sales are watched closely by platinum and palladium traders

because both metals are used in automobile catalytic converters .

that the news on cold fusion did n't affect the market yesterday

because many traders have already been badly burnt by such stories .

Also weighing on both metals ' prices is the role of the chief supplier , the Soviet Union .

as contracts reacted to largely offsetting bullish and bearish news .

On the Chicago Board of Trade , soybeans for November delivery closed at $ 5.63 a bushel , down half a cent ,

while the December wheat contract rose three-quarters of a cent to $ 4.0775 a bushel .

Supporting prices was the announcement late Friday of additional grain sales to the Soviet Union .

But acting as a drag on prices was the improved harvest weather over the weekend and the prospect for continued fair weather this week over much of the Farm Belt .

The March contract ended at 13.79 cents a pound , down 0.37 cent .

For the past week or so , traders have been expecting India to buy between 150,000 and 200,000 tons of refined sugar ,

whenever sugar reached the top of its trading range , around 14.75 cents ,

and wait for prices to return to the bottom of the range , around 13.50 cents .

But Erik Dunlaevy , a sugar analyst with Balfour Maclaine International Ltd. , said

the explanation for the latest drop in sugar prices is much simpler :

that in light of a new estimate of a production increase of four million metric tons and only a modest increase in consumption , sugar is n't likely to rise above the top of its trading range

The December contract rose $ 33 a metric ton to $ 1,027 , near its high for the day .

that the 1989-90 world cocoa surplus would be 231,000 tons , down from 314,000 tons for the previous year .

But Mr. Savaiko expects stepped-up producer selling at around the $ 1,040 to $ 1,050 level .

that a strong sterling market yesterday might have helped cocoa in New York

the market pushed higher mainly in anticipation of a late harvest in the Ivory Coast , a major cocoa producer .

Rockwell International Corp. bought out Ikegai Corp. 's interest in Ikegai-Goss , a joint venture of the two companies

The purchase was made by Rockwell Graphic Systems , a Chicago subsidiary of the El Segundo , Calif. , concern .

Early in the day , bonds rose modestly on economists ' forecasts

that this week 's slate of economic data will portray an economy headed for trouble .

because economic weakness sometimes causes the Federal Reserve to lower interest rates in an effort

For example , today the Department of Commerce is scheduled to release the September durable goods report .

said Joel Marver , chief fixed-income analyst at Technical Data Global Markets Group .

The Treasury 's benchmark 30-year bond ended about 1/2 point higher , or up about $ 5 for each $ 1,000 face amount ,

while mortgage-backed and investment-grade corporate bonds rose .

Prices of high-yield , high-risk corporate securities ended unchanged .

In more evidence of the growing division between `` good '' and `` bad '' junk bonds , a $ 150 million issue by Imo Industries Inc. was snapped up by investors

while underwriters for Beatrice Co. 's $ 350 million issue are considering restructuring the deal

In the Treasury market , analysts expect bond prices to trade in narrow ranges this week

`` On the negative side , the market will be affected by constant supply in all sectors of the market , ''

said William M. Brachfeld , economist at Daiwa Securities America Inc .

that is { expected to be } relatively positive for the bond market .

We will go back and forth with a tilt toward slightly lower yields , ''

Today , the Treasury will sell $ 10 billion of new two-year notes .

Tomorrow , Resolution Funding Corp. , a division of a new government agency

So far , money managers and other bond buyers have n't shown much interest in the Refcorp bonds .

that yesterday 's sale of $ 2.58 billion of asset-backed securities by Ford Motor Credit Corp. may have siphoned some potential institutional buyers from the government 's note sale .

The division of auto maker Ford Motor Co. made its debut in the asset-backed securities market with the second-largest issue in the market 's four-year history .

First Boston sweetened the terms from the original yield estimate in an apparent effort

The issue was offered at a yield nearly one percentage point above the yield on two-year Treasurys .

The only asset-backed deal larger than Ford 's was a $ 4 billion offering by General Motors Acceptance Corp. in 1986 .

Treasury bonds were 1/8 to 1/2 point higher yesterday in light trading .

Short-term rates rose yesterday at the government 's weekly Treasury bill auction ,

The Treasury sold $ 7.81 billion of three-month bills with an average discount rate of 7.52 % , the highest since the average of 7.63 % at the auction on Oct. 10 .

The $ 7.81 billion of six-month Treasury bills were sold with an average discount rate of 7.50 % , the highest since the average of 7.60 % at the Oct. 10 auction .

Rates are determined by the difference between the purchase price and face value .

Investment-grade corporates closed about 1/4 point higher in quiet trading .

In the junk bond market , Imo Industries ' issue of 12-year debentures ,

Peter Karches , managing director at underwriter Morgan Stanley & Co. , said

Morgan Stanley is expected to price another junk bond deal , $ 350 million of senior subordinated debentures by Continental Cablevision Inc. , next Tuesday .

In light of the recent skittishness in the high-yield market , junk bond analysts and traders expect other high-yield deals to be sweetened or restructured

In the case of Beatrice , Salomon Brothers Inc. is considering restructuring the reset mechanism on the $ 200 million portion of the offering .

Under the originally contemplated terms of the offering , the notes would have been reset annually at a fixed spread above Treasurys .

Price talk calls for the reset notes to be priced at a yield of between 13 1/4 % and 13 1/2 % .

Activity in derivative markets was strong with four new real estate mortgage investment conduits announced and talk of several more deals in today 's session .

The Federal National Mortgage Association offered $ 1.2 billion of Remic securities in three issues ,

and the Federal Home Loan Mortgage Corp. offered a $ 250 million Remic

Part of the reason for the heavy activity in derivative markets is that underwriters are repackaging mortgage securities

Government National Mortgage Association 9 % securities for November delivery were quoted late yesterday at 98 10/32 , up 10/32 ;

The Ginnie Mae 9 % issue was yielding 8.36 % to a 12-year average life assumption ,

as the spread above the Treasury 10-year note widened slightly to 1.46 percentage points .

A $ 575 million San Antonio , Texas , electric and gas system revenue bond issue dominated the new issue sector .

But alleviating that overhang failed to stimulate much activity in the secondary market ,

He attributed that to the issue 's aggressive pricing and large size , as well as the general lethargy in the municipal marketplace .

but recent disasters , such as Hurricane Hugo and the Northern California earthquake , have stretched insurers ' resources

A $ 137.6 million Maryland Stadium Authority sports facilities lease revenue bond issue appeared to be off to a good start .

where heavy investor selling last week drove yields on the issuer 's full faith and credit backed bonds up as much as 0.50 percentage point .

The turnaround in the dollar fueled bearish sentiment about Japan 's bond market .

The benchmark No . 111 4.6 % bond due 1998 ended on brokers ' screens at a price of 95.39 , off 0.28 .

West German bond prices ended lower after a day of aimless trading .

The benchmark 7 % bond due October 1999 fell 0.20 point to 99.80

The benchmark 11 3/4 % Treasury bond due 2003/2007 rose 1/8 to 111 21/32

The husky blond guide with the Aggie cap twists his face in mock fury .

Right now he takes people out to fish in the bays behind the barrier islands

that curve for hundreds of miles along the eastern coast of Texas ,

enclosing milky green lagoons behind ridges of sand and grassy scrub

which with redfish provides most of the game fishing hereabouts .

The fish often are plentiful around the pilings of the old gas wells

The great silver clouds on the horizon build themselves on the pale water .

but he wants a different life after college , such as working for IBM and wearing a necktie .

There are a few ramshackle fishing towns with quiet atolls of resort houses nearby .

People are not apt to be self-conscious about the place or themselves .

It is famous as the winter home of the whooping crane , that symbol of the destruction of wild America .

The peninsula comes off the vast southeastern alluvial plain with fields of rice and cotton and sorghum as far

Deer , wild hog , armadillos and alligators are the glamour quadrupeds

and the birds are innumerable , especially the herons and the spoonbills .

Above the blossoms of lantana and scarlet pea the inky-brown and golden palamedes butterfly floats on its lazy wingbeat .

with a white church , a gas station and a grocery , the houses relatively close together for such a settlement in these parts .

`` Tivoli Motel , '' I read a sign in the usual pronunciation of the name

Mr. King is the director of the Foreign Press Center in New York .

they will launch their previously announced joint venture for power semiconductors in January .

It will develop , produce and market high-performance electronic parts .

AEG is 80 % owned by Daimler-Benz AG , the country 's biggest industrial concern .

Norimasa Furuta , president of Japan 's Mazda Motor Corp. , said

the Japanese car maker is planning joint production with Ford Motor Co. in Europe ahead of the European Community 's 1992 integration .

Mr. Furuta did n't disclose further details of the arrangement at a news conference ,

the project would be undertaken with Ford 's European subsidiary .

that the U.S. motor vehicle maker is studying such an arrangement .

At age eight , Josephine Baker was sent by her mother to a white woman 's house

transformed from unwanted child to international sex symbol in just over a decade .

Her bare breasts , her dancing , her voice , her beauty and , perhaps most famously , her derriere , were prominent attractions ,

and driving her husband first to despair and then to Argentina .

Finally , Prince Rainier and Princess Grace saved her with the offer of a house in Monaco .

and some intellectuals were writing breathlessly of a dawning age

but for the most part Paris was a friendly island in a racist world .

Baker had bitter experience of bigotry from her St. Louis childhood and her days in New York theater ,

sniffed the literary world 's Maria Jolas , not entirely inaccurately .

`` One can hardly overemphasize the importance of her rear end , ''

that Baker 's dancing `` had uncovered a new region for desire ''

`` Jazz Cleopatra '' contains other , more important , false notes

that undermine what is , for the most part , a lively account of a life already familiar from earlier works .

attracts Ms. Rose , the author of `` Parallel Lives , '' a wonderful study of Victorian marriage .

Still , even the title raises questions about the author 's vision of her subject .

To find parallels , other than sexual appeal , with Cleopatra , requires an equal stretch .

when she died in Paris , two days after the sold-out opening of her newest show :

During World War II , her uncomplicated view of life led her to the conclusion

to become first a spy and then a one-woman USO tour for the forces of Free France .

In Humphrey Bogart 's nightclub , Victor Laszlo leads Free French sympathizers in `` La Marseillaise ''

It does n't help that sometimes Ms. Rose 's language fails to deliver the effect

when she was an overdressed singer rather than underdressed dancer ,

now sells fiberglass , forest products , minerals and industrial goods .

is controlled by the Manville Personal Injury Settlement Trust .

that the trust will , instead , seek to convert the company 's shares to cash , in some sort of friendly restructuring

The trust is n't commenting on when it might need to liquefy its Manville stock .

However , the trust 's cash flow from investments is far short of its payments to asbestos victims .

Its cash and liquid securities fell by $ 338 million in the first six months of 1989 .

it will have a claim on as much as 20 % of Manville 's annual net income .

As of June 30 , it had settled only about 15,000 of the 81,000 received claims from asbestos victims , for an average of $ 40,424 each .

And as of midyear , settled but unpaid claims amounted to $ 136 million

-- more than half the trust 's total of $ 268 million in cash and marketable securities .

`` At some point , we 're going to need an infusion of funds , ''

Even before then , the trust may be eager to unload Manville stock .

`` Obviously , a diversified portfolio would have less risk , ''

Though the ink is barely dry on its new , post-bankruptcy law structure ,

that the trust is ultimately going to need to sell some of our shares , ''

Of course , one option would be for Manville to buy out the trust 's shares

But the trust , in most cases , is forbidden from seeking a buyer for only its shares before November 1993 .

And both the trust and Manville are seeking to avoid the bad publicity

which will probably act in the interests of the minority holders , ''

Its stock , at 9 5/8 , trades at about 8 1/2 times estimated 1989 earnings

-- an appropriately low multiple for a company with recession-sensitive customers .

So far , as a price-conscious shopper , Manville has n't bought much .

that with 80 % of its stock in friendly hands , Manville is the rare publicly traded company

the Federal Trade Commission has requested additional information from the two companies about their announced intention

to acquire Vermont American Corp. for $ 40 a share , or about $ 440 million .

Yesterday , in composite trading on the American Stock Exchange , Vermont American common closed at $ 39.75 , off 25 cents .

they do n't anticipate `` any problems '' with the completion of the transaction .

Emerson and Bosch , through their joint acquisition arm , Maple Acquisition , have begun a cash tender offer for all of Vermont 's common shares outstanding .

may be extended pending the timing and resolution of the FTC request ,

St. Louis-based Emerson and Stuttgart-based Bosch make electrical and electronic products ,

The Vermont American acquisition is designed to enhance their position in the accessories portion of the power-tool industry .

to sell a 20 % stake in its large real estate unit to a California public employee pension fund for $ 400 million ,

after which it would spin off the realty operation to shareholders .

The plan places an indicated value on the real estate operation , Santa Fe Pacific Realty Corp. , of $ 2 billion .

Santa Fe Pacific directors are expected to review the plan at a meeting today ,

In composite trading on the New York Stock Exchange yesterday , Santa Fe Pacific closed at $ 20.625 , down 25 cents .

Santa Fe Pacific Realty is a major California land and building owner

whose prime properties include 1,850 undeveloped acres in the San Francisco Bay area , and several office sites .

the $ 56 billion California Public Employees Retirement System would obtain two seats on the board of the real estate operation ,

The Reichmanns and Mr. Zell , the largest holders of Santa Fe Pacific stock , have been looking for ways

they would have interests in the new realty company in line with their holdings in Sante Fe Pacific .

of what could lead to the breakup of Santa Fe Pacific into free-standing companies for its railroad and energy operations , as well as real estate .

The debt-laden parent has been under pressure from large shareholders

The California pension fund 's planned investment in the real estate unit is unusual .

In addition , pension funds are rarely given seats on company boards

It also marks a `` major commitment to { real estate } development ,

Under the proposed plan , the fund would also lend Santa Fe Pacific Realty $ 75 million in the form of a note

that would be convertible into additional shares of the realty company after the second year at the then-prevailing market price .

The purpose of the note is to provide added capital for the spun-off company in a form

that will save it spending cash on immediate interest payments ,

The spun-off concern `` clearly will be one of the dominant real estate development companies with a prime portfolio , ''

For the last year , Santa Fe Pacific has redirected its real estate operations toward longer-term development of its properties ,

that the parent had generated in the past from periodic sales from its portfolio .

Real estate operating income for the first nine months fell to $ 71.9 million from $ 143 million a year earlier ,

In a statement late yesterday , Santa Fe Pacific 's chairman , Robert D. Krebs , said

that Santa Fe Pacific Realty would repay more than $ 500 million in debt

That would help reduce Santa Fe Pacific 's remaining debt to about $ 600 million from a high of $ 3.7 billion in early 1988 .

It was n't clear where Santa Fe Pacific expected to obtain the payment of more than $ 500 million ,

The realty unit might take on new debt or obtain additional investors , among other possibilities .

The Santa Fe Pacific spokesman declined to comment on that aspect ,

including 219 buildings with more than 11 million square feet of space .

It also holds nearly 40,000 acres of raw land with development potential ,

but under a previously announced strategy , the company has targeted building on 5,400 acres in California , Arizona and the Chicago area .

Fund officials negotiated the final structure of the proposed deal with Santa Fe Pacific ,

but they were approached with the idea by real estate brokers JMB Realty Corp. of Chicago .

to represent the pension fund on the Santa Fe Pacific Realty board ,

Richard W. Decker resigned as president and chief executive officer after only a year on the job

that they related to `` management style '' and `` strategic objectives . ''

Mr. Decker 's posts were assumed by David Payne , Westamerica 's chairman ,

who at 34 years of age becomes one of the youngest chief executives of a sizable bank in the country .

It controls about 35 % of the affluent Marin County market across the Golden Gate bridge from San Francisco .

He was brought to the company in September 1988 after 15 years at Los Angeles-based First Interstate Bancorp .

The bank had been suffering in late 1987 from a slew of bad real estate loans

Mr. Payne lauded Mr. Decker 's `` extraordinary . . . skills '' and his `` outstanding reputation as one of the West 's brightest bankers . ''

Though the bank is n't performing as well as some of its competitors in the lucrative California market ,

compared with net income of $ 2.4 million , or 41 cents a share , a year earlier .

at least partly because it is considered a possible takeover candidate .

Interstate banking is scheduled to begin in California in 1991 ,

and larger California banks , such as Wells Fargo & Co. , have been paying fat premiums

In American Stock Exchange composite trading yesterday , Westamerica closed at $ 22.25 a share , down 75 cents .

fiscal fourth-quarter profit plunged more than 95 % to $ 1 million , or five cents a share , from $ 24.2 million , or $ 1.10 a share , in the year-earlier quarter .

The diversified electronics company blamed the decline in the quarter

on previously reported operating problems in its Electron Devices & Systems Group .

For the full fiscal year , Varian posted a 13 % profit rise to $ 31.5 million , or $ 1.53 a share , up from $ 27.8 million , or $ 1.27 a share , last year .

Sales for the year rose almost 15 % to $ 1.34 billion from $ 1.17 billion last year .

A profit last year in both the quarter and year included a net gain of $ 9.6 million , or 44 cents a share , from the sale of a division .

Additionally , the full-year profit last year reflected an after-tax restructuring charge of $ 22.8 million , or $ 1.04 a share .

closed at $ 22.75 , down 62.5 cents in composite trading on the New York Stock Exchange .

Sales rose 18 % in the fiscal fourth quarter to $ 364.1 million from $ 307.9 million on the strength in semiconductors and other products .

it agreed in principle to transfer ownership of its broker-dealer subsidiary to two of its top executives .

only if it sells substantially all of its other core businesses .

Also , the broker-dealer subsidiary , Integrated Resources Equity Corp. , was renamed Royal Alliance Associates Inc .

to which the 3,900 representatives ' licenses will be transferred ,

In the transaction , Integrated will transfer 100 % ownership of the subsidiary to Gerard M. Lavin , executive vice president of Integrated and head of back-office operations at the subsidiary , and Gary W. Krat , executive vice president of the parent and president of the subsidiary .

Integrated will pump $ 3.5 million to $ 4 million into Royal Alliance as initial funding .

he expects to distribute 49 % of Royal Alliance to the representatives ,

and it was n't immediately clear what would happen to the broker-dealer subsidiary

if Integrated files for bankruptcy-law protection in the meantime .

The subsidiary is n't expected to be profitable for at least one year .

the two officers will draw salaries from the independent operation , not from Integrated .

Many aspects of the agreement were worked out Wednesday in Chicago ,

when Integrated senior managers met with about 150 representatives .

said Stephen D. Weinroth , chairman and co-chief executive officer of Integrated .

In New York Stock Exchange Composite trading , Integrated shares closed at $ 1.125 , up 12.5 cents .

The Canadian dollar climbed to its highest level against the U.S. dollar since late August ,

prompting the Bank of Canada to sell the Canadian currency on the market .

after a week of nervously tracking every development on Wall Street ,

that a 26-point drop in the Dow Jones Industrial Average gave the dollar a sharp nudge downward late in the day .

In late New York trading yesterday , the dollar was quoted at 1.8470 marks , down from 1.8578 marks late Friday , and at 141.90 yen , down from 142.43 yen late Friday .

Sterling was quoted at $ 1.6030 , up from $ 1.5885 late Friday .

In Tokyo Tuesday , the U.S. currency opened for trading at 141.80 yen , down from Monday 's Tokyo close of 142.40 yen .

The market 's attention is especially focused on a preliminary report on the U.S. third-quarter gross national product , due out Thursday ,

the economy is continuing to expand at a relatively brisk pace .

The consensus view on real GNP , the total value of the U.S. output of goods and services

slowing somewhat from the second quarter 's 2.5 % , but still fairly strong .

Few market participants expect the U.S. unit to rally sharply on the news ,

the third-quarter figures may be the last vigorous statistics for some time

says Walter Simon , an assistant treasurer with Bank Julius Baer & Co .

Hubert Pedroli , managing director of foreign exchange at Credit Suisse in New York , adds ,

that the GNP deflator , a measure of inflation , is expected to slow ,

when an unexpectedly sharp widening in the U.S. trade gap in August was reported earlier this month ,

hopes for a sustained narrowing of the trade deficit were dashed

While the market expects little reaction from news of U.S. durable goods orders ,

that the figures will probably serve to reinforce this bearish sentiment .

U.S. durable goods orders are expected to show a decline of 1.2 % in September ,

the U.S. unit has found a `` natural bottom '' at about 1.85 marks and 140 yen .

Its resilience around these levels is pegged to persistent investor demand for the greenback , especially in Japan .

On the Commodity Exchange in New York , gold for current delivery settled at $ 367 an ounce , down 30 cents .

In early trading in Hong Kong Tuesday , gold was quoted at $ 366.79 an ounce .

citing continued strength in apparel sales and the start of shipments of its new product lines :

a men 's fragrance , large-size women 's apparel and casual knitwear .

that its net income in the latest quarter increased to $ 51.1 million , or 58 cents a share , from $ 31.7 million , or 36 cents a share , a year earlier .

Sales in the quarter gained 29 % to $ 410.4 million from $ 317.7 million a year earlier .

Claiborne shares closed yesterday at $ 25.125 , up 50 cents , in national over-the-counter trading .

Claiborne 's directors also declared its regular cash dividend payment of five cents a share payable on Dec. 5 to shareholders of record at the close of business on Nov. 13 .

For the nine months , net income rose 48 % to $ 124.2 million , or $ 1.41 a share , from $ 83.8 million , or 96 cents a share a year earlier .

But the market lost part of the early gains on index-linked investment trust fund selling .

In early trading in Tokyo Tuesday , the Nikkei index rose 1.08 points to 35586.60 .

that some investors took profits against the backdrop of the Nikkei 's fast-paced recovery

following its plunge last Monday in reaction to the Oct. 13 drop in New York stock prices .

they expect the Nikkei to continue with moderate gains this week .

Volume on the first section was estimated at 600 million shares , down from 1.03 billion shares Friday .

The Tokyo stock price index of first section issues was up 7.81 at 2687.53 .

Relatively stable foreign currency dealings Monday were viewed favorably by market players ,

to appraise the direction of the U.S. monetary policy and the dollar ,

Hiroyuki Wada , general manager of the stock department at Okasan Securities , said

based on specific incentives and the likelihood of a wider price increase over the short term .

The selective approach blurred themes such as domestic-demand issues , large-capitalization issues or high-technology shares ,

which had been providing at least some trading direction over the past few weeks ,

shifting their attention to some midsize companies such as Aoki Corp. , Tobishima and Maeda .

receiving investor interest for its land property holdings near Tokyo ,

London prices closed modestly higher in the year 's thinnest turnover , a condition

that underscored a lack of conviction ahead of a U.K. balance of payments report Tuesday .

that the day 's modest gains also signaled some support for London equities .

that Britain 's current account imbalance ca n't be much worse than the near record deficits

The Financial Times 100-share index finished 10.6 points higher at 2189.7 .

Volume was 276.8 million shares , beneath the year 's previous low of 280.5 million shares Sept. 25 , the session

Analysts ' expectations suggest a September current account deficit of # 1.6 billion

Lucas Industries , a British automotive and aerospace concern , rose 13 pence to 614 pence

Share prices on the Frankfurt stock exchange closed narrowly mixed in quiet dealings

the declines early in the day were partly caused by losses of the ruling Christian-Democratic Union in communal elections in the state of Baden-Wuerttemberg .

The start of a weeklong conference by the IG Metall metal worker union in Berlin is drawing attention to the impending wage negotiations ,

and even small orders at the lower levels sufficed to bring the market back to Friday 's opening levels .

the thin trading volume points to continued uncertainty by most investors

But Norbert Braeuer , chief trader at Hessische Landesbank Girozentrale

as Deutsche Bank and Dresdner Bank added 4 marks each to 664 marks

Elsewhere , prices closed higher in Amsterdam , lower in Zurich , Stockholm and Milan , mixed in Brussels and unchanged in Paris .

to sell its pump and tank division and drilling division to GSX Chemical Services for $ 4 million .

Further , GSX will buy $ 1 million of Enviropact common stock , at $ 2.625 a share , plus an option

to acquire an additional $ 1.5 million of common at the same price ,

In American Stock Exchange composite trading yesterday , Enviropact closed at $ 3 a share , up 25 cents .

the two divisions account for about $ 8 million of the company 's $ 20 million in annual revenue .

the proceeds will be used as working capital for expansion and to pay its existing tax liability of about $ 1.5 million

GSX is a unit of Laidlaw Transportation Ltd. of Burlington , Canada .

8 3/4 % high , 8 11/16 % low , 8 11/16 % near closing bid , 8 3/4 % offered .

8.50 % 2 to 44 days ; 8.25 % 45 to 69 days ; 8.40 % 70 to 89 days ; 8.20 % 90 to 119 days ; 8.05 % 120 to 149 days ; 7.90 % 150 to 179 days ; 7.50 % 180 to 270 days .

on primary new issues of negotiable C.D.s , usually on amounts of $ 1 million and more .

8.50 % 30 days ; 8.32 % 60 days ; 8.32 % 90 days ; 8.16 % 120 days ; 8.05 % 150 days ; 7.96 % 180 days .

8 3/4 % to 8 5/8 % one month ; 8 11/16 % to 8 9/16 % two months ; 8 3/4 % to 8 5/8 % three months ; 8 5/8 % to 8 1/2 % four months ; 8 9/16 % to 8 7/16 % five months ; 8 9/16 % to 8 7/16 % six months .

8 3/4 % one month ; 8 3/4 % three months ; 8 9/16 % six months ; 8 1/2 % one year .

9.86 % , standard conventional fixed-rate mortgages ; 7.875 % , 2 % rate capped one-year adjustable rate mortgages .

9.80 % , standard conventional fixed-rate mortgages ; 8.75 % , 6/2 rate capped one-year adjustable rate mortgages .

reported a third-quarter loss of $ 1.42 billion , or $ 17.39 a share ,

following its $ 1.6 billion boost in reserves for losses on loans to less-developed countries .

The loss compares with net income of $ 162.1 million , or $ 2.01 a share , in the year-earlier period .

Interest income rose 29 % to about $ 1.35 billion from $ 1.05 billion .

The New York bank holding company 's assets at Sept. 30 climbed to $ 59.4 billion from $ 57.9 billion .

third-quarter net income would have increased 11 % to $ 180 million .

Most of the loans in question are to Third World countries in South America .

In New York Stock Exchange composite trading yesterday , Bankers Trust fell 12.5 cents to $ 50.50 .

Gerald C. Beddall , 47 years old , was named president of the Clairol division of this pharmaceuticals and health-care company .

Mr. Beddall had been executive vice president of the division since April .

was a division of Bristol-Myers Co. before that company 's merger with Squibb Corp .

as reported by the Federal Reserve Board on a weekly-average basis :

ended Wednesday , October 18 , 1989 and Wednesday October 11 , 1989 .

Construction of the 265,000-square-foot facility will begin next year , with production

When fully operational , the Guadalajara factory will employ about 1,500 workers

and have annual operating expenses of $ 5 million to $ 6 million .

that the Guadalajara factory will make a full line of answering machines .

Lucas Industries PLC , a British maker of industrial parts and systems , reported a 28 % rise in pretax profit for the year to July 31 ,

helped in particular by a 32 % jump in operating profit at its aerospace division .

Profit after taxes and minority interests but before extraordinary items climbed 27 % to # 143.4 million from # 112.5 million ,

TW Services Inc. posted a $ 3.3 million third-quarter net loss ,

related to its much-publicized proposed takeover by Coniston Partners .

The per-share loss for the Paramus , N.J. , food-services concern totaled seven cents ,

Coniston , a New York investment partnership , awaits a vote by TW 's shareholders ,

on Coniston 's $ 34-a-share , or $ 1.66 billion , offer for TW .

Nine-month net income dropped 47 % to $ 26.3 million , or 54 cents a share , from $ 49.7 million , or $ 1.02 a share .

state officials interfered with the oil company 's initial efforts

filed by Alaska in August against Exxon and six other oil companies .

that Exxon 's response to the spill failed to prevent contamination of hundreds of miles of shoreline along Prince William Sound .

That suit and Exxon 's countersuit were filed in a state court in Anchorage .

that damage claims against the oil giant and others could well exceed $ 1 billion .

that it will seek reimbursement from the state for that part of the cleanup costs and damage claims

that Alaskan officials prevented Exxon from spraying dispersant onto the almost 11 million gallons of oil

Craig Tillery , an Alaska assistant attorney general , said in an interview last night

Since the spill last March , Exxon and the state have been wrangling over whether spraying dispersant on the oil in the first hours after the spill ,

and that state officials banned their use during the two days of fair weather

that it had permission from the U.S. Environmental Protection Agency prior to the spill

to use dispersant during such an incident at the discretion of the U.S. Coast Guard .

Meson Investment Ltd. , a Vancouver , B.C.-based investment firm , said

it raised its stake in Verit Industries to 8.9 % of the common shares outstanding .

bought from Oct. 10 , 1988 , to Oct. 11 , 1989 , for $ 3.875 to $ 7 each .

Meson is the personal holding company of Steven Morfey , a Vancouver securities dealer .

Officials for Sun Valley , Calif.-based Verit could n't be reached for comment .

In composite trading on the American Stock Exchange , Verit closed unchanged yesterday at $ 3.875 a share .

The House Appropriations Committee approved an estimated $ 2.85 billion in emergency funding

and to extend further aid to East Coast victims of Hurricane Hugo .

but it also provoked a struggle with influential California lawmakers

who sought unsuccessfully to add nearly $ 1 billion more and waive current restrictions

By a 26-7 margin , the committee scuttled the more expensive alternative ,

and the debate forced a strained confrontation between Appropriations Committee Chairman Jamie Whitten

who sought later to play down the sometimes hostile tone of the long evening meeting .

The $ 2.85 billion package incorporates $ 500 million for small-business loans , $ 1 billion in highway construction funds , and $ 1.35 billion

But in private meetings yesterday , Budget Director Richard Darman argued

that only $ 1.5 billion in new federal appropriations are needed

to finance disaster loans by the Small Business Administration .

to meet with Mr. Whitten and California lawmakers before the committee session .

Although this White House pressure was clearly a factor among committee Republicans ,

A master of pork-barrel politics , he had crafted the $ 2.85 billion package in vintage style

When Mr. Fazio offered the California-backed $ 3.84 billion plan ,

On the chairman 's motion , the California package was subsequently reduced to less-binding report language ,

on how much any single state can receive in emergency funds in a year .

but the state faces more resistance in its bid for an extended waiver

A member in the House leadership and skilled legislator , Mr. Fazio nonetheless found himself burdened not only by California 's needs but by Hurricane Hugo amendments

inserted on behalf of owners of private beaches in the Virgin Islands ,

and lumber interests sought to add another $ 100 million in federal aid

California 's high-priced real estate puts it in an awkward position , too .

One provision last night would have raised the cap on disaster loans to $ 500,000 from $ 100,000 per household

including the possible sale of the financially struggling company .

Kurzweil , Waltham , Mass. , makes digital electronic keyboard instruments

However , Raymond C. Kurzweil , chairman and chief executive , said

In the year 's first six months , Kurzweil had a loss of $ 6.9 million on sales of $ 11.2 million .

its preliminary year-end results of operations indicate `` substantial improvement '' over the previous fiscal year .

Per-share earnings are estimated at more than 40 cents , up from 22 cents for fiscal 1988 .

Total revenue is expected to double to more than $ 22 million from $ 10.8 million .

which also provides technical temporary employment services to aerospace , defense , computer and high-tech companies in the Southwest and Baltimore-Washington areas ,

The company attributed the improvement to strong demand in the semiconductor equipment segment as well as the acquisition of Echelon Service Co. and the inclusion of a full year 's results of operations for RTS Inc. ,

raised from the sale of the commercial paper with small to medium-sized leases .

meaning that investors would be repaid from the lease receivables , rather than directly by LDI Corp .

LDI leases and sells data-processing , telecommunications and other high-tech equipment .

In a foreign-policy address before the Soviet legislature , the foreign minister conceded

that the radar station in Krasnoyarsk breached the superpower Anti-Ballistic Missile treaty

He also denounced Moscow 's nine-year involvement in the war in Afghanistan ,

it involved `` gross violations of . . . civil norms and ethics . ''

Secretary of State Baker , in his first major arms-control speech , called for a new military relationship with Moscow

BAY AREA COMMUTERS BATTLED earthquake-related transportation snarls .

The House Appropriations Committee approved a $ 2.85 billion aid package for the quake region , less than the $ 3.8 billion

and for the first time openly commemorated the anniversary of the 1956 anti-Stalinist uprising

as Acting President Szuros delivered a nationally televised address

and thousands more staged protests in three other cities in a fresh challenge to the Communist leadership

In an East Berlin suburb , meanwhile , employees at an electronics plant formed an independent trade union

The space shuttle Atlantis landed at a desert air strip at Edwards Air Force Base , Calif. ,

Explosions shook a Phillips Petroleum Co. plastics plant near Pasadena , Texas ,

Bush is conferring with leaders of the Senate Intelligence Committee

a strict interpretation of a policy requires the U.S. to notify foreign dictators of certain coup plots .

Lebanon 's Gen. Aoun placed Christian military forces on alert in case of renewed fighting with Syrian-backed Moslems

after Lebanon 's two main Shiite militias rejected an Arab-sponsored peace accord .

NATO defense ministers are expected to call for a reduction in nuclear forces in Europe

when the alliance 's nuclear planning group convenes a two-day session today in Portugal .

The ministers are to reshape NATO 's defenses in Western Europe amid fast-paced changes in the Soviet bloc .

Iran 's President Rafsanjani offered to help gain freedom for Western hostages in Lebanon ,

PLO leader Arafat asked Egypt to seek clarifications from the U.S. on Secretary of State Baker 's plan for Mideast peace talks ,

after Zimbabwe 's President Mugabe called Thatcher 's views on South Africa `` despicable . ''

At a meeting in Malaysia , Australia and Canada also assailed the British prime minister

it will buy back two million shares , or 18.4 % , of the total outstanding ,

it expected to distribute at least $ 21 a share , or $ 229 million , in a liquidation ,

based on an expected asset sale price of $ 290 million or more .

as ordinary income or capital gains rather than as tax free returns of capital ,

its net income was $ 3.1 million , or 15 cents a share , in the third quarter , more than four times its profit of $ 663,000 , or three cents a share , last year .

Included in the results was an adjustment to the Dallas-based company 's tax rate

that reduced net income by about 10 cents a share , or approximately $ 2 million .

related to an Internal Revenue Service investigation of its tax returns for the years 1984 through 1988 .

it expects the tax adjustment to reduce its net income for the full year by 14 cents , or approximately $ 2.8 million

its revenue increased 11 % , to $ 101.5 million from $ 91.2 million last year .

For the nine months , the company had net income of $ 15.1 million , or 74 cents a share , up 98 % from $ 7.6 million , or 38 cents a share last year .

Revenue grew almost 8 % to $ 301.9 million from $ 279.8 million last year .

A federal judge granted a temporary stay of the California Student Aid Commission 's emergency action

to stop guaranteeing loans for National Technical Schools , a unit of United Education & Software Inc .

after a government audit cited National Technical Schools for having courses

and having a student drop-out rate far in excess of federal standards ,

and it alleged other serious violations of law and regulations .

United Education & Software , a Los Angeles education services company , called the commission 's action `` precipitous and unwarranted . ''

United Education & Software posted a $ 250,000 bond against potential losses to the student aid commission and to taxpayers

in guaranteeing any more loans for National Technical Schools students prior to the hearing .

A decline in Allied-Signal Inc. 's automotive business contributed to flat sales and only slightly higher earnings in the third quarter .

that net rose 1.7 % to $ 121 million , or 81 cents a share , from $ 119 million , or 80 cents a share , the year earlier .

For the nine months , the Morris Township , N.J.-based company , with businesses in aerospace , automotive products and engineered materials , earned $ 413 million , or $ 2.77 cents a share , up 15 % from $ 359 million , or $ 2.40 a share .

that a drop in sales of auto and truck parts contributed to lower earnings in the automotive unit .

He also cited unfavorable foreign-exchange rates and a lower tax rate .

Earnings for the group declined to $ 11 million from $ 33 million last year .

Earnings at Allied-Signal 's aerospace business rose to $ 55 million from $ 41 million a year ago , primarily on higher sales and profit in its engines and auxiliary power units .

In New York Stock Exchange composite trading yesterday , Allied-Signal shares closed at $ 35.125 , off 87.5 cents .

it will start enforcing stiffer regulations Jan. 31 for so-called gray-market imports of vehicles .

that gray-market imports total about 2,100 units a year , a small part of the more than three million vehicles

The registered importer would be required to bring such vehicles into compliance with the U.S. safety standards ,

Congress tightened auto safety standards for gray-market imports

it expects to report net income between $ 6.4 million and $ 6.9 million , or between 32 cents and 34 cents a share , for its fourth quarter

In the year-ago quarter , the software developer reported pro forma earnings of $ 4.8 million , or 24 cents a share .

it expects to post revenue for the quarter of more than $ 31 million ,

it anticipates reporting earnings of $ 23 million , or about $ 1.15 a share ,

including a charge of about $ 5.9 million , or 22 cents a share ,

that created Legent out of Duquesne Systems Inc. and Morino Inc. in March 1989 .

Pro forma earnings for fiscal 1988 were $ 19.6 million , or 99 cents a share , on revenue of $ 97.2 million .

The company attributed much of the growth in earnings to increased demand for its systems productivity software .

of a record $ 15 million , or $ 1.15 a share , up 43 % from $ 10.5 million , or 80 cents a share , for the prior year .

The Costa Mesa , Calif. , maker of computer tape drives also projected record revenue for the year of $ 181 million , up from $ 122.7 million for the previous year .

Archive attributed the gains to strong demand for its products , continued growth of the reseller market and the acquisition of Maynard Electronics in February ,

The Southfield , Mich.-based company earned $ 774,000 in the quarter last year .

to build a $ 1.4 million pollution-control facility at the Ashtabula chemical manufacturing plant by Aug. 1 , 1990 .

that they may be potentially responsible for cleaning up the Fields Brook watershed near Detrex 's Ashtabula plant at a total cost

Of the 17.6 million rights units issued , just under 17 million were exercised before the Oct. 10 expiration of the offering ,

Remaining units will be sold to the underwriters , Drexel Burnham Lambert Inc. and Kidder , Peabody & Co. ,

which will also purchase an over-allotment of 2.3 million additional units .

In addition , analysts have viewed the rights offering as a takeover defense

to purchase a half-share of common stock , and one depositary preference share .

Depositary shares are convertible into common stock on a 1-to-1 basis .

Currently , the company has about 88.1 million common shares outstanding .

In over-the-counter trading Monday , the stock closed at $ 10.625 , off 37.5 cents .

UNITED AIR 'S PARENT quashed any prospects for an immediate revival of the labor-management buy-out ,

Also , UAL Chairman Stephen Wolf pulled out of the buy-out effort

Santa Fe Pacific plans to sell 20 % of its large real estate unit to a California pension fund for $ 400 million

The proposal values the company 's real estate operation at $ 2 billion .

Time Warner reported a $ 176 million loss for the third quarter ,

reflecting the cost of the recent merger and a method of accounting for the deal .

mainly to comply with stiffer capital rules under the S & L bailout law .

Also , withdrawals exceeded deposits by $ 5.1 billion in the month .

His resignation follows a hostile takeover of the ad agency in May by WPP of Britain .

that could restrict the use by prosecutors of criminal racketeering charges against white-collar defendants .

one of his funds was defrauded out of $ 60 million during stock-index futures trading just after the 1987 crash .

The action renews concern about buyouts in high-tech industries .

Paribas plans a bid for another big French financial and industrial firm , Navigation Mixte , a sign

reflecting weakness in the company 's core chemicals and plastics businesses .

The rapid advance of the 52-year-old executive surprised many at the company .

Dow Jones industrials 2662.91 , off 26.23 ; transportation 1236.66 , up 5.86 ; utilities 215.35 , off 0.13 .

Dow Jones futures index 129.49 , off 0.13 ; spot index 131.64 , up 0.30 .

rarely seen within the Congress , let alone within the same party .

Sen. Alan Cranston trekked over to the House side of Capitol Hill a few days ago

and volunteered his testimony to fellow Democrat Rep. Henry Gonzalez .

It was offered as an expression of cooperation to Mr. Gonzalez ,

who is investigating the $ 2.5 billion failure of Lincoln Savings & Loan Association .

But instead of thanks , Sen. Cranston was treated with cool formality .

Seldom have House hearings caused so much apprehension in the Senate ,

where California Sen. Cranston and four other senators were already writhing in the glare of unfavorable publicity over the alleged looting of Lincoln by their friend and political benefactor , Charles Keating Jr. , principal stockholder of Lincoln 's parent company , American Continental Corp. of Phoenix , Ariz .

At the first day of the House Banking Committee 's hearings last week , William Seidman , chairman of the Resolution Trust Corp. , the federal agency

Mr. Keating arranged nearly $ 1 million in donations to Sen. Cranston and his various political causes , and hundreds of thousands more to other lawmakers .

who has accused the five senators of attempting to `` subvert '' the regulatory process

where a policy-making body is trying to shape administrative decisions ,

Lawmakers often are reluctant to embarrass colleagues , even those of opposing political parties .

In the recent Housing and Urban Development Department scandal , for example , Rep. Thomas Lantos , the California Democrat

He comes from the same political line as Wright Patman , a bank-baiting Texas populist

Early in his political career , as a city councilman in San Antonio , he walked out of a meeting

denouncing the closed-door affair publicly as a `` bat-roost meeting . ''

The immediate target of Rep. Gonzalez 's inquiry is Danny Wall , chairman of the Office of Thrift Supervision .

As the principal regulator of the thrift industry , Mr. Wall delayed seizing Lincoln S & L

when hearings resume Thursday with testimony by two federal regulators from San Francisco , William Black and Mike Patriarca .

that the two had been summoned to Washington by Mr. Wall last week

Mr. Wall , however , is a self-proclaimed `` child of the Senate '' and former staff director of its Banking Committee .

An inquiry into his handling of Lincoln S & L inevitably will drag in Sen. Cranston and the four others , Sens . Dennis DeConcini

why a federal audit of Lincoln S & L had dragged on for two years .

that in the course of the hearings the names { of the senators } will be brought out , ''

says Michael Waldman , director of Congress Watch , a consumer group .

who will be forced to testify about their meetings with senators . ''

because Gonzalez has certainly placed a lot of Democratic senators in a very bad position . ''

and the California thrift 's parent is an Ohio-chartered corporation with holdings in Michigan .

Chairman Gonzalez expresses sympathy for Sen. Riegle , his counterpart as chairman of the Senate Banking Committee .

But at the same time , Mr. Gonzalez has n't forgotten a confrontation over Mr. Wall during House-Senate negotiations over S & L bailout legislation during the summer .

The Senate negotiators included Sens . Cranston and Riegle and Mr. Wall 's principal sponsor , Republican Sen. Jake Garn of Utah .

They were willing to trade important provisions in the bailout legislation

in which he would be called upon to testify about Lincoln S & L .

Most importantly , the Senate traded away the Bush administration 's controversial plan

if there could be some understanding on Garn 's insistence on Wall . ''

Now Mr. Gonzalez is holding the equivalent of reconfirmation hearings anyway , under the guise of the Lincoln investigation .

Even some House Banking Committee members could suffer from the fallout .

Mr. Keating raised $ 20,000 for Rep. Doug Barnard 's 1986 re-election campaign

while the Georgia Democrat was taking his side against regulators

who wanted to curb risky investments and wholesale deposit brokering .

as federal regulators press a $ 1.1 billion fraud suit against Mr. Keating and others .

the Lincoln S & L affair is `` the biggest bank heist in history , ''

But the witness , William Crawford , California 's chief state thrift regulator , denies saying that .

that executives of Lincoln and its parent corporation got unusually high salaries and frequent calls

The committee also has summoned Mr. Wall 's predecessor , Edwin Gray .

He has characterized the five senators ' roles as `` tantamount to an attempt

even though the five senators have disputed his account of a 1987 meeting .

When Anne Volokh and her family immigrated to the U.S. 14 years ago ,

but during a stop in Italy Ms. Volokh dropped $ 80 on a black velvet suit .

run a software company with expected sales this year of $ 10 million .

Most recently , she has become the publisher of Movieline , a four-year-old Los Angeles magazine

that began national distribution last month , with an initial press run of 100,000 copies .

the glossy publication melds Vanity Fair 's gossipy archness and Premiere 's earnest delving into behind-the-scenes minutiae , with a special emphasis on Tinseltown as fashion trendsetter .

It 's being sold through bookstores , newsstands and some video stores .

Certainly life for her has changed considerably since the days in Kiev ,

when she lived with her parents , her husband and her two sons in a 2 1/2-room apartment

and recalls with relish wearing her first major American purchase

Are the hats merely part of her new L.A. persona , along with the many ultra-thin Capri cigarettes

she said recently in her fluent , slightly affected English , during a trip East

At Movieline , she wants `` specific paragraphing , specific tone , a specific attitude

she did n't want the chirpy , folkish music bouncing through the room .

Ms. Volokh spoke with rampant eloquence about the many attributes

an understanding of food , business , Russian culture , human nature , and parties .

devoted to movies as guideposts for fashion and other fantasies ,

Ms. Volokh sees her party-giving as an important part of business .

`` At American cocktail parties everyone 's always looking over your shoulder

In Los Angeles , it 's important to catch people just after work . ''

She also frequently invites directors , producers , actors , writers and other show business people for `` coffee and clips in the pleasure dome . ''

and show their favorite three-to-five minute segments on the screen

that unrolls from the ceiling of the Volokhs ' art-nouveau library

The idea for Movieline actually was dreamed up by an old friend of the Volokhs , Boris Krutchensky

Mr. Krutchensky approached Ms. Volokh five years ago about backing the publication ,

writing a weekly column about the national cuisine for Sunday Izvestia .

-- vivid discussions of the cultural and literary reverberations of food as well as practical advice

became the basis for her erudite and entertaining cookbook , `` The Art of Russian Cuisine , ''

she introduces each chapter with appropriate quotations from Russian literature :

You try to maintain your dignity under difficult circumstances .

it had become clear to Ms. Volokh and her husband Vladimir , a computer scientist , that they wanted to leave the U.S.S.R .

the government required her mother to obtain permission from her first husband ,

and had to endure hours of organized verbal abuse from his co-workers , accusations of sabotage and counterrevolutionary activities .

having been demoted from his profession of theoretical mathematician to shipping clerk .

When her husband and son founded their computer company , Vesoft ,

William D. Forrester , president of the U.S.-U.S.S.R. Trade and Economic Council , has a warning for U.S. companies

lured by a huge untapped market and Mikhail Gorbachev 's attempt

Doing business with the Russians , once the pursuit of a handful of hardened veterans , has become the goal of such major companies as General Motors Corp. , Federal Express Corp. and Procter & Gamble Co. , as well as a cluster of smaller firms .

more than 140 U.S. companies are taking part in a Moscow exhibition

Alongside the old problems of a non-convertible currency and an inpenetrable bureaucracy , Western business executives must now grapple with new complexities

linked to perestroika , the restructuring of the Soviet economy .

Changing legislation has opened the field to thousands of inexperienced Soviet players , many

their ventures now have to be endorsed by such unpredictable bodies as the Soviet parliament and the governments of the nation 's republics .

involving investment of more than $ 5 billion in some two dozen joint ventures .

Growing public fears about the Soviet environment is one new factor

Over the past two years , Soviet ministries have been talking to international firms ,

including Occidental Petroleum Co. and Combustion Engineering Inc. of the U.S. , Montedison S.p . A. of Italy and several Japanese groups ,

about jointly building and operating several big petrochemical plants .

Whatever the difficulties , Mr. Gorbachev remains committed to increasing foreign trade .

For political as well as economic reasons , U.S. companies are at the top of his priorities

by spending two hours walking around the U.S. trade show last week .

Mr. Gorbachev appeared impatient for a big expansion in U.S.-Soviet trade ,

of concluding several commercial accords with the U.S. , possibly at his next summit meeting with President Bush .

deprived Soviet consumers are more than ready for U.S. products .

Hundreds of people lined up every day at the Colgate-Palmolive Co. stand

to receive a free tube of toothpaste , a commodity in chronically short supply here .

And unruly crowds at RJR Nabisco Inc. 's booth almost knocked over a glass showcase in the rush

Some U.S. products are filtering into the Soviet market under an emergency import program .

Both Colgate and Procter & Gamble have received big orders for toothpaste , soap and detergents .

But the current Soviet purchasing spree may be a one-time affair .

Because the Soviet ruble is n't convertible into dollars , marks and other Western currencies ,

who buys Soviet porcelain and `` matryoshka '' nesting dolls for export to the U.S. ,

West German companies already have snapped up much of the production of these items .

which comprises Chevron Corp. , RJR , Johnson & Johnson , Eastman Kodak Co. , and Archer-Daniels-Midland Co. ,

to share out dollar earnings , largely from the revenues of a planned Chevron oil project .

including Pfizer Inc. , Hewlett-Packard Co. , Colgate and Abbott Laboratories

says Dennis A. Sokol , president of Medical Service Partners Inc. ,

One group seeks to publish a U.S.-Soviet medical journal in conjunction with the U.S.S.R. Ministry of Health .

According to Richard P. Mills , a Boston-based official of the U.S. partner ,

10,000 copies of the quarterly will be printed in Russian from next year .

It will be financed by advertisements from U.S. companies and by simultaneous publication of an English-language journal

General Electric Co. was given an $ 89.6 million Navy contract for nuclear propulsion parts .

Westinghouse Electric Corp. also won a $ 75.5 million Navy contract for nuclear propulsion parts .

Federal Data Corp. was issued a $ 14.5 million Navy contract for computer systems .

American Telephone & Telegraph Co. was awarded an $ 11.5 million Navy contract for oceanographic services .

it sold one of its newest and largest computer systems , the Cray Y-MP/832 , to the United Kingdom Meteorological Office .

to be sold through the joint marketing agreement between Cray and Control Data Corp .

will be installed in the first quarter of 1990 in the meteorological office 's headquarters in Bracknell , England .

Shareholders of Nuovo Banco Ambrosiano S.p . A. voted to accept a bid of 5,500 lire

rejecting an earlier , equal offer by Italy 's Assicurazioni Generali S.p . A .

The move will give Nuovo Banco a badly needed foreign presence ,

when it completes its scheduled merger with Banca Cattolica del Venetoen by year end .

Credit Agricole asked a Milan court to sequester the Nuovo Banco shares ,

Credit Agricole officials could n't be immediately reached for comment .

Nuovo Banco 's second largest shareholder , the Fiat S.p . A.-controlled investment concern , Gemina S.p . A. , fought to have Generali 's offer approved .

The linkup with Credit Agricole will give Nuovo Banco its first foreign presence

since it was formed from the wreck of the old Banco Ambrosiano ,

which collapsed amid scandal after the death of Chairman Roberto Calvi in 1982 .

Generali , Italy 's biggest insurer , last month offered 5,500 lire a share for the Nuovo Banco stake

held by Banco Popolare di Milano , the bank 's largest shareholder ,

A Generali spokesman declined to comment on Nuovo Banco 's rejection of the insurer 's offer .

On the Milan stock exchange , Nuovo Banco 's shares jumped to 4,830 lire each from 4,695 lire Friday .

that Qintex will sell its 51 % stake in its upscale Mirage resorts in Australia and Hawaii as well as three Australian television stations .

The sales are expected to raise more than 600 million Australian dollars

the restructuring plan calls for the merger of Qintex Australia with Qintex Ltd. ,

the move will `` significantly reduce administrative and operating costs , ''

that Qintex Australia 's bank creditors have become concerned about a barrage of bad news at the company ,

to buy MGM/UA Communications Co. , a Beverly Hills , Calif. , movie and television production concern .

Friday , Qintex Entertainment Inc. , a 43 % -owned U.S. affiliate , filed for protection from creditor lawsuits under Chapter 11 of the U.S. Bankruptcy Code .

that the move would further shake creditor confidence in Qintex Australia

after the Australian Stock Exchange suspended trading in shares of Qintex Australia and Qintex Ltd .

because the companies had n't answered an exchange inquiry about the extent of their loans , investments and deposits at Qintex Entertainment .

Qintex Entertainment owes Qintex Australia US $ 38.1 million in loans

it has an investment of A $ 83.3 million in Qintex Entertainment shares .

that on the basis of current interest rates in Australia , the company 's asset sales would reduce interest expense by about A $ 120 million a year in addition to eliminating certain liabilities .

In March , Qintex sold 49 % of the three Mirage resorts to Japan 's Nippon Shinpan Co. and Mitsui & Co. for A $ 433 million .

whether the Japanese companies will acquire Qintex 's remaining stake in the resorts .

Qintex Ltd. shares sank to A $ 1.50 yesterday from A $ 3.05 Friday .

They were what he called an `` unlawful termination '' by MGM/UA of the acquisition agreement with Qintex , high Australian interest rates , a pilots ' strike at Australian domestic airlines

in completing a sale of two regional TV stations in Queensland state .

MGM/UA has sued Qintex Australia for breach of contract and fraud over the collapsed acquisition agreement ,

Qintex Australia has n't yet reported results for the fiscal year

that group profit before interest , tax and depreciation `` will exceed A $ 170 million . ''

Shareholders ' funds as of July 31 were estimated at more than A $ 1 billion ,

to cover costs of the dispute with MGM/UA and any loss from the investment in Qintex Entertainment ,

Mr. Skase also disclosed a disagreement among directors of Qintex Australia over certain fees

claimed by Qintex Group Management Services Pty. , a management-services concern

Qintex Australia paid the management company A $ 32.6 million in the latest fiscal year .

most of the money went to other parties for expenses such as rent and travel ,

but a smaller portion is owed to senior executives and others for management services .

Today 's most widely used data-storing chips have `` volatile '' memories

But Ramtron of Colorado Springs , Colo. , plans to start shipping commercial quantities of simple ferroelectric chips in December .

National Semiconductor is getting ferroelectric technology from Krysalis Corp. in Albuquerque , N.M .

and will start shipping commercial quantities of its first chips ,

because they require fewer manufacturing steps than conventional chips .

-- such as electronically erasable programmable read-only memory chips --

AN AUSTIN , Texas , company plans to make it easy for you show up in court a thousand miles away

to give face-to-face depositions before lawyers and court reporters .

And telephone or videotape depositions just do n't match physical encounters .

That could change , thanks to lower long-distance rates and cheaper electronics .

And it is preparing to set up shop in Chicago , New York and 10 other cities

where court-reporting agencies can tie conference rooms into the network .

the formal network of court reporters should make things easier and cheaper .

An attorney will be able to use the network for an hourly fee of between $ 200 and $ 400 ,

to take depositions from witnesses in any of the connected cities .

JAPAN 'S MISUSE of U.S. patents has been a sore point for American chip makers .

Now at least one Japanese company is turning the courtroom tables .

Until now , most Japanese charges have been responses to suits against them .

But last year Hitachi Ltd. surprised Japan 's electronics industry

when it accused Korea 's Samsung Electronics Co. of using Hitachi technology

And Hitachi went on the offensive against the U.S. 's Motorola Inc. earlier this month with a suit

that Motorola 's new MC88200 chip infringes on a Hitachi patent .

Another recent Hitachi suit accuses Motorola of reverse engineering a Hitachi technology

The moves illustrate the more aggressive attitude toward patent protection

Hitachi made the reverse-engineering charges in an amendment to a counterclaim

Motorola `` has engaged in fraudulent and inequitable conduct in the procurement of certain Motorola patents ''

Motorola either denied or would n't comment on the various charges .

the set of chips could improve fax machines , graphics computers or identification systems

that processes video images 3,000 times faster than conventional systems .

which represented the fifth consecutive quarter of flat-to-lower earnings for the big electronics retailer ,

Net for the quarter was $ 62.8 million , or 73 cents a share , down from $ 64.9 million , or 72 cents a share , a year earlier .

Tandy had 86.3 million shares outstanding at Sept. 30 , down from 90 million a year earlier .

consumer electronics sales at its Radio Shack stores have been slow ,

said Dennis Telzrow , analyst with Eppler , Guerin & Turner in Dallas .

and expanding sales of its Grid Systems Corp. subsidiary , which sells computers to bigger businesses ,

Sales at Radio Shack stores open more than a year grew only 2 % in the quarter from a year earlier ,

he cut his fiscal 1990 per-share earnings estimate for Tandy to $ 4.05 from $ 4.20 .

Barry Bryant , an analyst with Drexel Burnham Lambert Inc. , said

to help Tandy 's results improve in the important Christmas quarter .

At a private dinner Thursday , Drexel Burnham Lambert Inc. chief executive Frederick Joseph delivered a sobering message about the junk bond market to officials of Prudential Insurance Co. of America .

because Drexel risked losing its highly lucrative junk franchise .

that 1989 is the worst year ever for the $ 200 billion junk market .

which has the widest and most loyal following of junk bond investors ,

Although the big investment bank still dominates the junk market ,

Drexel has been unable to stem the fallout from growing junk bond defaults , withdrawn new offerings , redemptions by shareholders in junk bond mutual funds and an exodus of once-devoted investors .

For many money managers , the past four months have been humiliating .

says Mark Bachmann , a senior vice president at Standard & Poor 's Corp. , a credit rating company .

showed negative returns , the only major sector of the bond market

Since the end of last year , junk bonds have been outperformed by all categories of investment-grade bonds ,

which mushroomed to $ 200 billion from less than $ 2 billion at the start of the decade ,

as issuers have stumbled under the weight of hefty interest payments .

The fragile market received its biggest jolt last month from Campeau Corp. ,

which created its U.S. retailing empire with more than $ 3 billion in junk financing .

that caused it to be tardy on some interest payments and to put its prestigious Bloomingdale 's department store chain up for sale .

his dinner discussion with the Prudential executives acknowledged problems for junk .

is that the market is troubled but still viable and , appropriately enough , quite quality-conscious ,

`` Nobody 's been perfect in their credit judgments the past couple years ,

our default rates are going to be in the acceptable parameters of the market . ''

that junk bonds can not necessarily be bought and sold with the ease of common stocks and many investment-grade bonds .

At closely held Deltec Securities Corp. , junk bond money managers Amy K. Minella and Hannah H. Strasser say

the problems of the junk market go deeper than a temporary malaise .

there has been heavy selling of junk bonds by some of the market 's traditional investors ,

Wall Street securities firms , `` the primary source of liquidity for the high yield market , '' have been net sellers of junk bonds

as junk 's relatively poor performance and negative press coverage have produced `` above-normal '' redemptions by shareholders ,

have sold `` large liquid issues '' such as RJR Holdings Corp. and Kroger Co. ;

declines in these benchmark issues have contributed to the market 's distress .

because savings and loans have been restricted in their junk purchases by recently passed congressional legislation .

`` In fact , savings and loans were sellers of high yield holdings throughout the quarter , ''

Meanwhile , Prudential , the nation 's largest insurer and the biggest investor in junk bonds , has seen the value of its junk bond portfolio drop to $ 6.5 billion from $ 7 billion since August

The junk market 's `` yield hogs are learning a real painful lesson , ''

Although the majority of junk bonds outstanding show no signs of default ,

says Stuart Reese , manager of Aetna Life & Casualty Insurance Co. 's $ 17 billion investment-grade public bond portfolio .

The big insurer , unlike Prudential , owns only about $ 150 million of publicly sold junk bonds .

which have been a major cause of the market 's problems this year ,

says Paul Asquith , associate professor at the Massachusetts Institute of Technology 's Sloan School of Management .

this year 's junk bond defaults already show a high correlation with his own findings .

that junk bonds over time had a cumulative default rate of 34 % .

is that about half of the $ 3 billion of corporate bonds outstanding

sold during the market 's big issue years of 1984 through 1986 .

First Texas Savings Association , Gilbraltar Financial Corp. , Integrated Resources Inc. , Metropolitan Broadcasting Corp. , Resorts International Inc. , Southmark Corp. and Vyquest Inc .

`` Obviously , we got a lot more smoke than fire from the people

says Bradford Cornell , professor of finance at University of California 's Anderson Graduate School of Management in Los Angeles .

that the risks and returns of junk bonds are less than on common stocks but more than on investment-grade bonds .

During the past three weeks , for example , Drexel has sold $ 1.3 billion of new junk bonds for Turner Broadcasting Co. , Uniroyal Chemical , Continental Air and Duff & Phelps .

Still , the list of troubled Drexel bond offerings dwarfs that of any firm on Wall Street ,

Troubled Drexel-underwritten issues include Resorts International , Braniff , Integrated Resources , SCI TV , Gillette Holdings , Western Electric and Southmark .

says Michael Holland , chairman of Salomon Brothers Asset Management Inc .

The auto-dealer strip in this booming suburb runs nearly five miles along Cobb Parkway ,

to the `` Big Chicken , '' a pullet-roofed fast-food restaurant and local landmark .

Twenty years ago , in the infancy of suburban sprawl , just a handful of dealerships were here .

Alongside such long-familiar names as Chevrolet , Ford and Dodge are nameplates

Under construction is the strip 's 24th showroom , the future home of Lexus , a luxury marque

The 1980s have spawned an explosion of consumer choice in America , in everything from phone companies to colas .

Americans now can choose among 572 different models of cars , vans and trucks , up from just 408

to keep loyal customers from defecting to one of the new makes on the block .

For American car buyers , the proliferation of choice is both liberating and confusing .

Malcolm MacDougall , vice chairman of the Jordan , McGrath , Case & Taylor advertising agency in New York , calls the proliferation `` nameplate mania . ''

the number of automobile choices is causing stress among consumers today ,

that have traditionally been associated with quality and value . ''

while still retaining links to the parent company 's quality image .

rather than simply adding more nameplates to their standard car lines .

says Vincent P. Barabba , executive director of market research and planning at General Motors Corp .

`` But the reward is that there 's less need to make tradeoffs ''

Jeanene Page , of North Salt Lake City , Utah , likes the broader selection .

and already has looked at the Chrysler New Yorker and Lincoln Town Car .

Now , the 55-year-old car shopper is zeroing in on a full-sized van ,

that his company would make `` a car for every purse and purpose . ''

Just four years ago , GM planners divided the combined car and truck market into seven segments .

Today , they identify 19 distinct segments for cars , and another 11 for trucks and vans .

because the U.S. is the world 's biggest and richest market for automobiles ;

Detroit tries to counter the foreign invasion with new brands of its own .

and next year GM 's long-awaited Saturn cars will make their debut .

The Wall Street Journal 's `` American Way of Buying '' survey found

For the survey , Peter D. Hart Research Associates and the Roper Organization each asked about 2,000 U.S. consumers about their buying habits .

Adults under age 30 like sports cars , luxury cars , convertibles and imports far more

Three of every 10 buyers under 30 would prefer to buy a sports car ,

`` For many baby boomers , buying a domestic car is a totally foreign experience , ''

says Christopher Cedergren , auto-market analyst with J.D . Power & Co. of Agoura Hills , Calif .

differences between imported and domestic cars are diminishing .

Some 46 % give foreign cars higher quality ratings , down from 50 % two years ago .

foreign cars are less comfortable than U.S. models , down from 55 % in 1987 .

declares Thomas Mignanelli , executive vice president for Nissan 's U.S. sales operations .

that an owner 's loyalty to a dealership or a car is virtually nonexistent , ''

says Mr. Negas , vice president of Ed Voyles Oldsmobile , one of the first dealerships

Thus the very fickleness of baby boomers may make it possible to win them back ,

The battle for customer loyalty is evident along the Cobb Parkway strip .

Ed Voyles Olds recently established a special section in the service department for owners

Just down the street , Chris Volvo invites serious shoppers to test-drive a new Volvo to any other dealership along the strip , and compare the cars side-by-side .

In contrast , dashboard computers , power seats and turbo-charged engines had little appeal .

GM 's Pontiac division is offering a turbo-charged V-6 engine on its Grand Prix model ,

Items with narrow appeal can be important in a market as fragmented as today 's .

Americans spent more than $ 190 billion on new cars and trucks last year ,

and just 1 % of that market exceeded Polaroid Co. 's sales of $ 1.86 billion .

The workers install , maintain and repair its private branch exchanges ,

It 's a California crime saga worthy of an Erle Stanley Gardner title :

No garden-variety crime , palm-tree rustling is sprouting up all over Southern California ,

are doll-sized versions of California 's famous long-necked palms , with stubby trunks and fern-like fronds .

Just last week , would-be thieves damaged three Sagos at Mr. Whitelock 's home in the Eagle Rock section

The Sago has become a popular accent in tony new housing tracts ,

apparently giving the rustlers a ready market for their filched fronds .

says William Morrissey , an investigator with the police department in Garden Grove , Calif. ,

where five such thefts have been reported in the past several weeks .

A group of shareholders filed suit against Imperial Corp. of America , Drexel Burnham Lambert Inc. , First Executive Corp. and others ,

charging them with artificially inflating Imperial 's stock price

accuses Imperial and other defendants of issuing false and misleading financial data .

that Imperial , the holding company for Imperial Savings & Loan , experienced major losses and writedowns

because of improper assessment of the risks of junk-bond investments and wholesale consumer loan packages .

it expects other complaints to be filed in the wake of the original suit and a recent article in Barron 's magazine

that it would vigorously defend itself against the class-action suit .

shareholder Max Grill of New York charged Imperial , its top executives and directors with breach of fiduciary duty and squandering the company 's assets .

Companies listed below reported quarterly profit substantially different from the average of analysts ' estimates .

it completed the purchase of the specialty chemicals operation of RTZ Corp. , a British mining and industrial group .

Consumer spending in Britain rose 0.1 % in the third quarter from the second quarter

including Gene E. Phillips , former chairman of Southmark Corp. , and William S. Friedman , former vice chairman of Southmark ,

according to a filing with the Securities and Exchange Commission .

it sold 455,410 Southmark common shares from Sept. 5 to Oct. 5 for 18.75 cents to 25 cents a share .

seeking to position itself in the potentially huge high-definition television market ,

that can transform conventional motion-picture film into high-definition video .

The move also helps the Rochester , N.Y. , photographic giant ensure

`` The industry has been waiting with bated breath for the machines to come along , ''

says David Niles , president of Eleven Twenty Five Productions Inc. , a New York pioneer in high-definition programming .

Japanese electronic giants , such as Sony Corp. and Hitachi Ltd. , have focused almost entirely on HDTV hardware ,

and virtually ignored software or programs shot in high-definition .

And only a handful of small U.S. companies are engaged in high-definition software development .

It 's estimated that just about 250 hours of HD programming is currently available for airing .

by allowing programmers and broadcasters to convert movies and television programs

It would be like `` watching a black and white movie on a color TV set , ''

says Malcolm G. Saull , chairman of the film and video department at the Rochester Institute of Technology .

The new converters are `` a critical link between film and the television domain , ''

says Joerg D. Agin , vice president and general manager of Kodak 's Motion Picture and Audiovisual Products division .

Kodak wo n't disclose the cost or when its converter will be on the market ,

but it 's estimated the machine may be available within two years .

Demand will come first from programming production companies and then from television stations .

`` The converter is head and shoulders above anything else I 've seen , ''

says Richard J. Stumpf , vice president-engineering and development at MCA Inc. 's Universal City Studios .

that the HDTV market will total about $ 150 billion over the next two decades , with an additional $ 400 billion

the first sets of HDTVs wo n't be available for another five to 10 years ,

and will probably retail for more than $ 3,000 each in today 's dollars .

Nevertheless , Kodak could n't risk letting HDTV turn its motion-picture film business into a dinosaur .

to play in the starting lineup for his high school basketball team in Macon , Ga .

Unfortunately , his mother had tickets for a recital by Itzhak Perlman the same night ,

Today , it 's obvious that the brawny , six-foot , one-inch musician made the right choice .

At 31 , Mr. McDuffie has a rich , full-bodied tone , an admirable rhythmic precision and an increasingly busy schedule .

He 's currently in the midst of a 17-city U.S. tour with Yehudi Menuhin and the Warsaw Sinfonia , with stops

Later this season he gives a recital at Washington 's Kennedy Center ,

Yet Mr. McDuffie 's career has developed at a slower pace than those of some of his better known contemporaries .

During the late 1970s , he was part of a musical `` brat pack ''

who studied at the Juilliard School with the noted pedagogue Dorothy DeLay .

His violin classmates included Shlomo Mintz , a protege of Isaac Stern

recalls Mr. McDuffie , an outgoing man with pale blue eyes and a light Southern drawl .

Young McDuffie 's first violin teacher was Henrik Schwarzenberger , a Hungarian refugee

After studies at that conservatory 's Pre-College Division with an assistant to the legendary instructor Ivan Galamian , he switched at the college level to Miss DeLay , Mr. Galamian 's longtime assistant and , ultimately , his rival .

`` In my freshman year , my roommate was known as a party animal .

his grandmotherly looking teacher `` put her hands on her hips ,

`You 've just got to get the { expletive deleted } out of there . ' ''

It was also at Juilliard that Mr. McDuffie discovered his predilection for conservative , 20th-century American composers such as David Diamond and Samuel Barber .

After winning a school competition with a performance of the latter 's `` Violin Concerto , ''

who performed the work with a piano accompanist at the composer 's apartment .

Mr. McDuffie has made some smart moves and some controversial ones .

His guest appearance on the NBC soap opera `` Another World , '' scandalized musical elitists .

By contrast , he 's won kudos for his espousal of William Schuman 's `` Violin Concerto , ''

which he recently recorded for Angel/EMI along with Leonard Bernstein 's engaging `` Serenade for Violin Solo , Strings and Percussion . ''

Mr. McDuffie 's sweet tone , heartfelt lyricism and rhythmic punch make him an ideal interpreter of both works .

Aided by the fluid playing of the St. Louis Symphony under Leonard Slatkin 's direction ,

which sounds more like a mildly atonal rhapsody for solo violin with orchestral accompaniment ,

But there are ample rewards in its plaintive slow sections and virtuoso fireworks for soloist , brass and timpani .

At Avery Fisher Hall here , Mr. McDuffie was heard recently with Mr. Menuhin and the Warsaw Sinfonia in more conventional fare

`` A normal person did not write the Beethoven `Violin Concerto , ' ''

the whole economy as well as the spendthrifts among us could be hurt .

who normally account for about two-thirds of economic activity ,

and deficit-racked governments ca n't readily take up the slack .

And another wave of bad loans would further batter many already-shaky lending institutions .

During the almost seven-year-old economic expansion , inflation-adjusted gross national product , disposable personal income and personal consumption expenditures have risen 30 % ,

but inflation-adjusted consumer installment credit has surged 66 % .

However , these figures do n't seem to worry Thomas A. Durkin , an economist at the Federal Reserve Board .

presented at the recent annual meeting of the National Association of Business Economists in San Francisco ,

that `` installment credit always grows rapidly in cyclical advances ,

and growth in this cycle is very typical of earlier experiences . ''

at which the ratio of installment debt to disposable income `` indicates economic problems . ''

The ratio of consumer installment credit to disposable income , though up a bit , has n't climbed steeply ,

and such debt as a percent of household assets is little changed .

Moreover , the burden of consumer credit payments relative to disposable income may be `` lower in this cycle than earlier , ''

that some `` revolving credit-card credit is actually convenience credit ''

`` longer maturities on automobile and other forms of installment credit boost the stock of debt faster than the flow of repayments and the accompanying payment burden . ''

`` much of the increase in debt in recent years is due to increasing credit use by higher-income families , ''

but the proportion rises to 16 % of homeowners in the $ 45,000- $ 60,000 income range and 23 % of homeowners with income above $ 60,000 . ''

So , it is n't surprising that consumer-credit delinquencies at banks remain ,

A severe recession could , of course , raise delinquency rates ,

but so far the current levels of consumer debt do n't seem to loom as a major threat .

In fact , the current weakness in auto buying and department-store sales and the gradual upturn in the household saving rate suggest

that consumers , conservative as ever , are already clutching their purses a bit more tightly .

In July , consumer installment credit outstanding fell for the first time since January 1987 .

`` As a result , household debt appears to be stabilizing at around 63 % of GNP . ''

Consumers , credit cards in hand , are n't running amok through the shopping malls

Maidenform Inc. loves to be intimate with its customers , but not with the rest of the public .

The 67-year-old maker of brassieres , panties , and lingerie enjoys one of the best-known brand images ,

but its financial profile is closely guarded by members of the founding family .

Sales have tripled during her 21-year tenure to about $ 200 million in 1988 .

on which Maidenform has spent more than $ 15 million since fall 1987 ,

does n't even show its underwear products , but rather men like Christopher Reeve , star of the `` Superman '' movies ,

says Joan Sinopoli , account supervisor of the campaign by Levine , Huntley , Schmidt & Beaver , a New York ad firm .

whose immediate plans include further international expansion and getting better control of distribution outside the U.S .

`` The intimate apparel industry is perceived to be a growth industry

says David S. Leibowitz , a special situations analyst at American Securities Corp. in New York .

Although working women are `` forced to wear the uniform of the day ,

they are buying better quality , more upscale intimate apparel , ''

Although Mr. Brawer 's appointment as president was long expected ,

the move on Sept. 25 precipitated the resignation of Alan Lesk as senior vice president of sales and merchandising .

Three days later , Mr. Lesk was named president and chief executive officer of Olga Co. , a competing intimate apparel division of Warnaco Inc .

Warnaco also owns Warners , another major intimate apparel maker .

and split his merchandising responsibilities among a committee of four people .

Other major players in intimate apparel apparently feel the same way .

Warnaco was taken private by Spectrum Group in 1986 for about $ 487 million .

And last year , Playtex Holdings Inc. went private for about $ 680 million .

It was then split into Playtex Apparel Inc. , the intimate apparel division , and Playtex Family Products Corp. ,

says Deborah Bronston , Prudential-Bache Securities Inc. apparel analyst .

Mr. Brawer , along with Mrs. Coleman and her daughter , Elizabeth , an attorney

Mr. Brawer 's wife , Catherine , and Robert Stroup , Elizabeth 's husband , round out the five-member board .

Mrs. Coleman is very involved in the day-to-day operations , especially product development .

Her father , William Rosenthal , designed the then-dress making company 's first bra in the 1920s ,

his wife , Ida , concentrated on sales and other financial matters .

The name Maidenform was coined by a third business partner , Enid Bissett .

The company has 14 plants and distribution facilities in the U.S. , Puerto Rico , other parts of the Caribbean and Ireland .

but the company has quietly opened a retail store of its own in Omaha , Neb .

who holds a doctoral degree in English from the University of Chicago ,

As a senior vice president , he has headed the company 's designer lingerie division , Oscar de la Renta , since its inception in 1988 .

Mrs. Coleman 's husband , Joseph , a physician , succeeded Mrs. Rosenthal as president

China could exhaust its foreign-exchange reserves as early as next year ,

dropping to 16 % in July and 7.1 % in August from the year-earlier periods ,

compared with an average growth rate of 26 % in the first half .

China 's buying spree in the first half already had taken its toll on foreign-exchange reserves .

The $ 14 billion level in June marked a drop from $ 19 billion at the end of April .

China 's last big import binge sent reserves tumbling to $ 10.6 billion in June 1985 from $ 16.6 billion the previous September .

But this time , China faces a more difficult battle because of economic forces

that have come into play since the Tiananmen Square killings June 4 .

For example , China 's hard-currency income is expected to suffer from the big drop in tourist arrivals since June 4 .

Revenue from tourism this year is projected to total $ 1.3 billion , down from $ 2.2 billion last year .

Because of this and the huge trade gap , the deficit in China 's current account ,

which measures trade in goods and services plus certain unilateral transfers of funds ,

is expected to widen sharply from the $ 3.8 billion deficit last year .

The Western government report suggests a number of scenarios for China 's current-account balance , two of which are considered most likely .

In one , imports and exports continue to grow at the respective average rates of 25 % and 5 %

In this case , China would still finish the year with a current-account deficit of $ 8.7 billion ,

it might be able to stem the drain on its foreign-exchange reserves

In addition , economists are forecasting a slowdown in foreign direct investments

as businessmen become increasingly wary of China 's deteriorating political and economic environment .

On top of all this , foreign-debt repayments are expected to peak in 1991 to 1992 .

The Western government report 's first scenario assumes a 30 % reduction in foreign borrowing and a 5 % contraction in foreign direct investment .

In the second , foreign borrowing is projected to grow 10 % and investment to drop 10 % .

China 's balance of payments would rapidly dry up foreign reserves ,

In the first scenario , the reserves would be exhausted next year ,

Roche Holding AG , parent of the Swiss chemical and pharmaceutical group , said

its group sales rose 22 % in the first nine months of the year to 7.32 billion francs

it expects a `` considerable rise '' in 1989 group profit from the 641.5 million-franc

it closed the acquisition of Carr-Lowrey Glass Co. from Newell Co. , a Freeport , Ill. , maker of do-it-yourself home products .

Carr-Lowrey , a maker of glass bottles for the cosmetics and toiletries industries , had sales last year of about $ 40 million .

New Canaan Investments is a closely held investment partnership with interests primarily in the packaging industry .

he and his co-pilot `` were looking for an interstate or a cornfield ''

But he flies for Federal Express Corp. , perhaps the closest thing in corporate America to the Green Berets .

which , since the company 's founding 16 years ago , has had its way with its work force

will decide whether to elect the powerful Air Line Pilots Association as their bargaining agent .

which would bring the first major union to Federal 's U.S. operations ,

has pitted new hires against devoted veterans such as Mr. Brown .

which is already contending with melding far-flung operations and with falling profits .

Frederick W. Smith , Federal 's chairman and chief executive , says with disdain .

`` In our formula , we do n't have any losers except the competition . ''

What managers really fear is that the pro-union movement could spread beyond the pilots .

Under federal transportation law , a government mediator is attempting to reconcile the melding of Tiger 's job classifications into Federal 's .

the merged company may face union elections this fall among airplane mechanics , ramp workers , stock clerks and flight dispatchers .

`` Unions would have a profound effect on the whole culture of the company , ''

says Bernard La Londe , a professor at Ohio State University at Columbus and a Federal consultant .

Mr. Smith 's managers have , at times , been called `` Ho Chi Minh 's Guerrillas . ''

The Bravo Zulu award , the Navy accolade for a `` job well done , '' is bestowed on Federal 's workers

He also lets workers vent steam through an elaborate grievance procedure

beamed internationally on `` FXTV , '' the company 's own television network .

And , with many of his 70,000 workers , Mr. Smith 's damn-the-torpedoes attitude has caught on .

for figuring out how to get a major customer 's 1,100-parcel-a-week load to its doorstep by 8 a.m. ,

David Sanders , a longtime pilot , bristles at the mere suggestion

though couriers work as many as 60 hours a week during the autumn rush ,

The operational freedom has also given Federal a leg up on archrival United Parcel Service Inc. , the nation 's largest employer of United Brotherhood of Teamsters members .

according to Mr. Cleveland , a former UPS employee , and others ,

union work rules prohibit UPS drivers from doing more than carrying packages between customers and their vans .

Because UPS drivers are n't permitted to load their own vehicles at the depot ,

Although the Tiger acquisition has brought Federal a long way toward becoming the global player

It more than doubled Federal 's long-term debt to $ 1.9 billion ,

and suddenly expanded its landing rights to 21 countries from four .

where treaty restrictions forced it to fly some planes half-empty on certain routes .

These and other problems squeezed Federal 's profit margins last year to 8 % , down from more than 13 % annually in the first half of the decade .

Earnings have plummeted , too , in each of the past three quarters .

Federal 's shares have rallied as high as $ 57.87 in New York Stock Exchange composite trading .

who had airlifted supplies `` over the Hump '' from India to China during World War II .

In the early 1970s , Mr. Smith modeled his fledgling company on Tiger 's innovation of hub-and-spoke and containerized-cargo operations .

Federal Express officials acknowledge mistakes in their drive overseas

Analysts expect Federal 's earnings to improve again in its fiscal third quarter

when the company should begin benefiting from Tiger 's extra flights , back-up planes and landing rights .

For now , the union issue is the most nettlesome of Federal 's Tiger problems ,

Mr. Smith does n't countenance what he considers insubordination .

That sort of approach , however , has n't worked since the addition of Tiger .

Soon after the merger , moreover , Federal 's management asked Tiger 's pilots to sign an agreement

to seal the deal with Tiger Chairman Saul Steinberg last August ,

his charisma and popularity among the many former military fliers could be tough to beat .

`` A lot of people are identifying a vote for representation as a vote against Fred Smith , ''

says J.X . Gollich , a Tiger-turned-Federal pilot and union activist .

Mr. Smith and other top Federal executives have met with Tiger workers in Los Angeles , Ohio , New York , Alaska , Asia and Europe .

Recently , they have appeared every few weeks in talk-show type videos ,

In one video , Mr. Smith defended his agreement to merge the pilot-seniority lists .

The seniority-list controversy , along with the job-classification dispute , has been turned over to the mediator .

Meanwhile , the company is operating with two separate pilot groups and seniority lists ,

says James Barksdale , executive vice president and chief operating officer .

The issue has also cost Federal management a lot of good will among its old pilots .

says William Queenan , a DC-10 pilot and 14-year Federal veteran .

Adds John Poag , a 727 captain and past chairman of the company-sponsored Flight Advisory Board :

`` They 've made all these magnanimous gestures to the Flying Tiger pilots , and for us , nothing . ''

A large majority of the 961 former Tiger fliers support the union ,

it is unclear just how much their loyalty to Mr. Smith has been eroded .

And for now , at least , the competition is n't the only enemy .

Barney Barnhardt , a 727 captain and leader of the pro-union forces , said

it obtained a $ 33.1 million export order for armored recovery vehicles and related support equipment .

Harsco produces products for defense , industrial , commercial and construction markets .

The Senate convicted U.S. District Judge Alcee Hastings of Florida of eight impeachment articles ,

removing the 53-year-old judge from his $ 89,500-a-year , lifetime job .

a federal official was impeached and removed from office on charges

In 1983 , Mr. Hastings was found not guilty of accepting a $ 150,000 bribe in a case before him , the central charge

He was only the sixth federal judge ever ousted from office after an impeachment trial .

With no floor debate , the Senate on Friday voted 69-26 to convict Mr. Hastings of perjury and conspiring to accept a bribe ,

that he had improperly disclosed information about a sensitive , government investigation .

that the purpose of impeachment is n't to punish an individual .

that impeachment aims to protect public institutions from people

In an impromptu news conference on the Capitol steps , he denounced the senators ' action .

`` Their opinion is devoid of the wisdom of the forefathers ' teaching

Mr. Hastings was appointed to the federal bench by President Carter in 1979

While he packed the Senate gallery with his supporters during some of the impeachment trial ,

Dr. Benjamin Hooks , executive director of the National Association for the Advancement of Colored People , issued a restrained statement ,

and racked up some pretty good ratings numbers in the miniseries `` Favorite Son . ''

In that context , Robert Loggia 's riveting performance as the unlovable

he pokes around the crime styles of the rich , famous and powerful of the Washington scene

Over the first few weeks , `` Mancuso FBI '' has sprung straight from the headlines ,

which is either a commendable stab at topicality , or a lack of imagination , or both .

In this week 's show , there 's an unsafe nuclear weaponsmaking facility

The usual suspects are found to be guilty , then not guilty , then guilty

( In last week 's rape case , for example , the girl turns out to have been a victim of incest ,

Most of all though , the show is redeemed by the character of Mancuso .

What makes the veteran FBI man so endearing is his hard-bitten cynicism

when he was assigned to the civil rights movement back in the 1960s .

At the core of Mr. Loggia 's Mancuso is his world-weary truculence .

Yet for all his cynicism , he 's at heart a closet idealist , a softy with a secret crush on truth , justice and the American Way .

In fact , throughout `` Mancuso FBI , '' we do n't get words or lines

`` . . . a dream that the planet could be saved from itself and from the sadistic dumb creatures

when people like you turn the world into a big toxic waste dump ?

They have a series with a good character , some interesting , even occasionally surprising plot lines ,

where Mancuso attends the unveiling of the memorial to his dead partner David .

There 's a pretty good program inside all the noise of `` Mancuso FBI . ''

If the show 's creators could just let themselves be quiet for a little ,

Boys with tops , and Frisbee tossers , And P.R . types with bees in their bonnet , Have a goal in common ,

Texaco Inc. has purchased an oil-producing company in Texas for $ 476.5 million , its first major acquisition

since its legal brawl with Pennzoil Co. began more than four years ago .

that it had acquired Tana Production Corp. , a subsidiary of TRT Energy Holdings Inc. , for $ 95.1 million in cash , with the rest

to be paid in shares of a new , non-voting issue of preferred stock .

which holds properties in 17 oil and gas fields in south Texas ,

The fields contain recoverable reserves of 435 billion cubic feet of natural gas and four million barrels of oil .

`` This acquisition is another indication of Texaco 's commitment

At least two years ago , the company put 60 million barrels of oil reserves on the block .

because Tana 's properties are high quality and near other fields

Texaco , like many other oil companies , has been struggling to replace its falling oil and gas reserves .

because much of its effort had for years been focused on its brawl with Pennzoil and then on New York investor Carl C. Icahn 's attempt

for improperly interfering with its acquisition of a portion of Getty Oil Co .

which was forced into bankruptcy proceedings by that litigation ,

who played a key role in the settlement and attempted subsequently to take control of the company ,

Completion of Texaco 's acquisition of Tana is subject to government approval under the Hart-Scott-Rodino Antitrust Improvements Act .

CALIFORNIA STRUGGLED with the aftermath of a Bay area earthquake .

rescuers searched through rubble for survivors of Tuesday 's temblor ,

for finding any more survivors within the concrete and steel from the collapse of an interstate highway .

At least 270 people were reported killed and 1,400 injured in the rush-hour tremor

that caused billions of dollars of damage along 100 miles of the San Andreas fault .

the third game of the World Series between the Giants and the Athletics would be played Tuesday in Candlestick Park .

HONECKER WAS OUSTED as leader of East Germany amid growing unrest .

was removed during a meeting of the 163-member Communist Party Central Committee in East Berlin .

He was succeeded by internal-security chief Egon Krenz , 52 , a hard-liner

who quickly ruled out any sharing of power with pro-democracy groups .

Honecker 's departure came after weeks of street protests and an exodus to the West of East Germans

At a nationally televised legislative session in Budapest , the Parliament overwhelmingly approved changes

Like other Soviet bloc nations , it had been known as a `` people 's republic '' since

The voting for new laws followed dissolution of Hungary 's Communist Party this month and its replacement by a Western-style Socialist Party .

The space shuttle Atlantis blasted into orbit from Cape Canaveral , Fla. ,

and its crew of five astronauts launched the nuclear-powered Galileo space probe on a flight to the planet Jupiter .

The $ 1.4 billion robot spacecraft 's exploratory mission is to take six years .

South Korea 's President Roh addressed a joint House-Senate meeting

and urged patience over U.S. demands for the opening of Seoul 's markets to more American goods ,

tragic results could follow any `` hint of weakening '' of the U.S. defense commitment to Seoul .

that 13.1 % of the U.S. population , or 31.9 million people , were living in poverty in 1988 .

and marked the fifth consecutive annual decline in the poverty rate .

The Bush administration accused Israeli Prime Minister Shamir of hindering peace efforts in the Mideast with `` unhelpful '' and disappointing statements .

that he was prepared to risk a policy conflict with the U.S. over an Egyptian plan

Cuba was elected to the U.N. Security Council for the first time since its Castro-led revolution 30 years ago .

The U.S. did n't openly oppose Cuba 's seating as the Latin American council delegate .

Britain 's Prime Minister Thatcher told a Commonwealth summit in Kuala Lumpur , Malaysia ,

that sanctions against South Africa were `` utterly irresponsible , ''

But other nations at the opening of the 49-nation meeting of Britain and its former colonies pressed for continued or stronger embargoes in an effort

Christian legislators are insisting on a Syrian troop pullout from Lebanon

giving the nation 's Moslems a greater role in Beirut 's government .

following Tuesday 's murder of a High Court justice in Medellin .

The country 's narcotics traffickers claimed responsibility for the slaying .

Most of the country 's 20,000 judges and judicial employees joined the work stoppage .

INSURERS ARE FACING billions of dollars in damage claims from the California quake .

Computer and software companies in the region are expecting virtually no long-term disruption in shipments .

Leveraged buy-outs may be curbed by two rules in pending congressional legislation .

the industry is still being hurt by the Fed 's anti-inflation battle .

A capital-gains tax cut plan has been worked out by Senate Republicans .

it is seeking improved terms and a sharply lower price in any revised bid for United Air 's parent .

B.A.T Industries may delay part of its defensive restructuring plan ,

including the sale of its Saks Fifth Avenue and Marshall Field units .

The British conglomerate cited the recent turmoil in financial markets .

The London-based concern will sell most of its ad unit to France 's Eurocom .

Commodore International expects to post its second consecutive quarterly loss

Jaguar hopes to reach a friendly accord with General Motors within a month

Sears is negotiating to refinance its Sears Tower for close to $ 850 million ,

Dow Jones industrials 2643.65 , up 4.92 ; transportation 1247.87 , off 6.40 ; utilities 213.97 , off 0.57 .

Dow Jones futures index 129.90 , up 0.18 ; spot index 130.36 , up 0.39 .

said Trevor Woodland , chief corporate trader at Harris Trust & Savings Bank in New York .

News of the major earthquake in California Tuesday triggered a round of dollar sales in early Asian trade ,

they expect the impact of the quake on financial markets to be short-lived .

Despite the dollar 's lackluster performance , some foreign-exchange traders maintain

that the unit continues to show resilience in the face of a barrage of `` headline negatives '' in recent weeks ,

including rate increases in Europe and Japan , aggressive central bank intervention , a 190-point plunge in New York stock prices , an unexpectedly poor U.S. trade report and action by the Federal Reserve

While Mr. Woodland does n't predict a significant climb for the U.S. unit in light of recent moves in interest rates around the world ,

In late New York trading yesterday , the dollar was quoted at 1.8485 marks , down from 1.8667 marks late Tuesday , and at 141.45 yen , down from 142.75 yen late Tuesday .

Sterling was quoted at $ 1.5920 , up from $ 1.5753 late Tuesday .

In Tokyo Thursday , the U.S. currency opened for trading at 140.97 yen , down from Wednesday 's Tokyo close of 142.10 yen .

Since Friday 's dive in stock market prices , the Fed has injected reserves into the banking system in an effort

that after last week 's stock market tailspin and Tuesday 's California earthquake ,

it 's hard to gauge where the central bank wants the key federal funds rate .

The Fed did , in fact , execute $ 1.5 billion of liquidity-enhancing customer repurchase agreements , the third set of repurchase orders in three days .

the additional liquidity should tend to reduce the federal funds rate .

the foreign exchange market is scrutinizing both federal funds and events on Wall Street .

that the dollar remains extremely vulnerable to the slightest bad news from the stock exchange .

Indeed , the U.S. unit edged lower as the Dow Jones Industrial Average dropped about 13 points in early trading .

A slight recovery in the stock market gave currency traders confidence

that nervousness over the recent sharp dive in stock prices could intensify

that appeared to advise Japanese investors to be very careful in investing in U.S. leveraged buy-outs .

The figures , due for release Friday , are expected to show an uptick in inflation to 4.8 % from 4.7 % in August .

On the Commodity Exchange in New York , gold for current delivery rose $ 1.30 to $ 368.70 an ounce in moderate trading .

In early trading in Hong Kong Thursday , gold was at $ 368.15 an ounce .

has been successfully used on more than 100 patients at the University of Pittsburgh ,

Rejection has been the major obstacle in the approximately 30,000 organ transplants

who had received kidney , liver , heart and pancreas transplants .

said Dr. Thomas E. Starzl , director of the University of Pittsburgh Transplantation Program , at a news conference here yesterday .

said Dr. John Fung , an immunologist at the University of Pittsburgh .

FK-506 is 100 times more effective than the traditional anti-rejection drug , cyclosporine ,

They are also encouraged by the relatively mild side effects of FK-506 ,

which can cause renal failure , morbidity , nausea and other problems .

`` The side effects { of cyclosporine } have made the penalty for its success rather high , ''

that FK-506 would not be available in the market for at least a year ,

and that the FDA approval process usually takes three years to five years .

to expand the experimental program beyond the University of Pittsburgh ,

FK-506 will enable patients to cut hospital stays by 50 % and reduce the number of blood tests

used to monitor the dosage of cyclosporine and other drugs among transplant recipients .

the research has been largely financed by the National Institute of Health and by university funds ,

and our advice to our people has been not to buy the company 's stock , ''

Mutual-fund czar John M. Templeton has put his money where his moniker is ,

pouring $ 1.4 million into one of his own funds , the Templeton Value Fund .

according to filings with the Securities and Exchange Commission .

Those are Templeton Global Income , Templeton Emerging Markets and now the Value Fund .

`` Emerging growth stocks have n't been popular in America for years ,

Mr. Templeton 's 147,300-share purchase in the closed-end fund came before the U.S. stock market 's plunge last Friday ,

Mr. Templeton bought his shares in several separate purchases between Aug. 30 and Sept. 28 ,

The fund closed yesterday in New York Stock Exchange composite trading at $ 9.625 , up 12.5 cents .

In addition , Mr. Templeton received a dividend of 22 cents a share Oct. 5 .

A senior vice president and a vice president at James River Corp. sold the majority of their shares in the Richmond , Va. , paper-products concern in late August and early September ,

In Big Board trading yesterday , James River shares closed at $ 28.375 , down 12.5 cents .

On Sept. 6 , Robert Joseph Sherry , the firm 's senior vice president of employee and public relations , sold 4,000 shares ,

Mr. Sherry has sold 88 % of his stake in the company this year ,

Cincinnati Gas & Electric Co. tops the companies portion of the accompanying Insider Trading table this week .

Three of the utility 's directors have at least doubled their holdings in the company since July .

because he keeps a utility account at the brokerage firm of Salomon Brothers Inc. ,

that it has had a buy recommendation on the stock for about two years .

The stock closed yesterday on the Big Board at $ 28.75 , down 12.5 cents .

The two other directors bought 1,000 and 1,900 shares , respectively , at prices between $ 28.15 a share and $ 28.75 a share ,

`` I do n't know of any news or anything unusual happening here , ''

The stock market 's dizzying gyrations during the past few days have made a lot of individual investors wish

while they want to be on the alert for similar buying opportunities now ,

they 're afraid of being hammered by another terrifying plunge .

The solution , at least for some investors , may be a hedging technique

says Harrison Roth , the senior options strategist at Cowen & Co .

Because a put option gives its owner the right , but not the obligation ,

to sell a fixed number of shares of the stock at a stated price on or before the option 's expiration date ,

the investor is protected against a sudden drop in the stock 's price .

But most investment advisers do n't recommend using married puts all the time .

That 's because the cost of buying put options eats into an investor 's profit

-- If the stock goes up in price between now and the put 's expiration date ,

-- If the stock stays at the same price between now and the put 's expiration date ,

the investor 's loss will be limited to the cost of the put , less any amount

Once the stock price is less than the exercise price , or `` strike price , '' of the put ,

The put establishes a minimum selling price for the stock during its life .

by tendering the stock to his or her broker in return for payment from another investor

Brokers handle such transactions through the Options Clearing Corp. ,

that the cost of the option insurance can be partially offset by any dividends

For example , Tenneco Inc. pays a quarterly dividend of 76 cents ,

In this case , the investor 's risk would n't exceed 3.6 % of the total investment .

commissions on the option and underlying stock are n't included in the table .

For instance , the most popular index option is the S & P 100 option ,

Unlike options on individual issues , index options are settled only in cash ,

For one thing , an investor 's portfolio might not closely match the S & P 100 .

As a result , the OEX insurance may or may not fully protect an investor 's holdings in the event of a market decline .

In addition , OEX options were suspended from trading last Friday afternoon ,

who wanted to realize a profit on OEX puts after the trading suspension

On the other hand , only a handful of individual issues were suspended from trading on Friday .

The protection from using married puts is clearly superior to that

Selling a call option gives an investor a small buffer against a stock-market decline .

That 's because it reduces the cost of the stock by the amount of premium

if the price of the stock rises above the strike price of the option ,

And in that case , the investor misses out on any major upside gain .

These calculations exclude the effect of commissions paid and dividends

Hopes for quick enactment of pending deficit-reduction legislation faded

to streamline the House version in advance of a House-Senate conference

that would n't reduce the fiscal 1990 budget deficit from the House-passed bill

ranging from cutting the capital-gains tax to child care to repeal of catastrophic-illness insurance .

Now those items will be discussed in a House-Senate conference ,

to keep the capital-gains provision in the final version of the bill

Senate leaders had hoped to be able to send a compromise version of the measure to President Bush by the end of the week ,

meant that $ 16.1 billion in across-the-board spending cuts took effect Monday under the Gramm-Rudman budget law .

The merchandise trade deficit widened in August to $ 10.77 billion ,

a sharp deterioration from July 's $ 8.24 billion and the largest deficit of any month this year .

said Geoffrey Dennis , chief international economist at James Capel Inc .

Like most analysts , Mr. Dennis was hesitant to read too much into one month 's numbers ;

that more fundamental economic problems may underlie last Friday 's stock market slide .

The Dow Jones Industrial Average tumbled more than 60 points after the report 's release ,

`` This bad trade number raises some deeper issues about the market decline , ''

`` It raises questions about more deep-seated problems , the budget deficit and the trade deficit and the seeming lack of ability

The trade report drew yet another unsettling parallel to October 1987 .

On Oct. 14 of that year , the announcement of an unusually large August trade deficit helped trigger a steep market decline .

The slide continued until the record 508-point market drop on Oct. 19 .

In 1987 , however , the news was the latest in a string of disappointments on trade ,

The bleak trade report was played down by the Bush administration .

Commerce Secretary Robert Mosbacher called the worsening trade figures `` disappointing after two very good months . ''

that the improvement in the U.S. trade deficit has run out of steam .

that the improvement in the U.S. trade deficit has essentially stalled out at a level of about a $ 110 billion annual rate , ''

said Jeffrey Scott , a research fellow at the Institute for International Economics here .

out of past dollar depreciation and past marginal cuts in the federal budget deficit . ''

Imports , on the other hand , leaped 6.4 % to a record $ 41.18 billion .

but the government revised the July figure substantially from the $ 7.58 billion deficit

That 's because the budget deficit feeds an enormous appetite in this country for both foreign goods and foreign capital ,

In addition , the rise in the value of the dollar against foreign currencies over the past several months has increased the price of U.S. products in overseas markets

At the same time , William T. Archey , international vice president at the U.S. Chamber of Commerce , notes :

`` Clearly the stronger dollar has made imports more attractive ''

Most economists expect the slowing U.S. economy to curb demand for imports .

But they foresee little substantial progress in exports unless the dollar and the federal budget deficit come down .

would be to see the administration and Congress get serious about putting the U.S. on an internationally competitive economic footing , ''

said Howard Lewis , vice president of international economic affairs at the National Association of Manufacturers .

August 's decline in exports reflected decreases in sales of industrial supplies , capital goods and food abroad and increases in sales of motor vehicles , parts and engines .

The jump in imports stemmed from across-the-board increases in purchases of foreign goods .

*Newly industrialized countries : Singapore , Hong Kong , Taiwan , South Korea

Ashton-Tate Corp. reported a net loss of $ 19.4 million , or 74 cents a share , for the third quarter ,

when the company had net income of $ 11.7 million , or 45 cents a share , on revenue of $ 75.7 million .

For the nine months , Ashton-Tate had a loss of $ 27.6 million , or $ 1.05 a share .

In the year-ago period , the company had profit of $ 34.3 million , or $ 1.32 a share .

Revenue in the period slid almost 8 % to $ 203.2 million from about $ 220 million last year .

Edward M. Esber , chairman , president and chief executive officer , attributed the decline to reduced domestic revenue

to upgrade existing software inventories to the new database IV Version 1.1 ,

they saw ominous hints of a further delay in volume shipments of Version 1.1 , a harbinger of continued losses in the fourth quarter .

said John C. Maxwell III , an analyst with Dillon , Read & Co. in New York .

gross margins and operating profit `` eroded quite dramatically '' from the prior quarter , along with sales of existing software product lines like Multimate and Framework .

`` The success of a new product in the database line is needed .

that it expects to ship new products `` during the next two quarters . ''

`` It now looks like database IV Version 1.1 is n't going to be { widely } available until the first quarter of 1990 , ''

said David Bayer , an analyst with Montgomery Securities in San Francisco .

unless the company can start shipments of the new product sometime this quarter ,

the fourth-quarter loss is likely to be `` comparable to the third quarter 's . ''

In national over-the-counter trading , Ashton-Tate closed yesterday at $ 10 a share , up 62.5 cents .

8 11/16 % high , 8 5/8 % low , 8 5/8 % near closing bid , 8 11/16 % offered .

8.40 % 30 to 44 days ; 8.325 % 45 to 59 days ; 8.10 % 60 to 89 days ; 8 % 90 to 119 days ; 7.85 % 120 to 149 days ; 7.70 % 150 to 179 days ; 7.375 % 180 to 270 days .

8.05 % one month ; 8.02 % two months ; 8 % three months ; 7.98 % six months ; 7.95 % one year .

8.38 % 30 days ; 8.28 % 60 days ; 8.23 % 90 days ; 8.13 % 120 days ; 8.03 % 150 days ; 7.93 % 180 days .

8 5/8 % to 8 1/2 % one month ; 8 9/16 % to 8 7/16 % two months ; 8 9/16 % to 8 7/16 % three months ; 8 1/2 % to 8 3/8 % four months ; 8 7/16 % to 8 5/ 16 % five months ; 8 7/16 % to 8 5/16 % six months .

8 5/8 % one month ; 8 9/16 % three months ; 8 7/16 % six months ; 8 7/16 % one year .

Canada 13.50 % ; Germany 8.50 % ; Japan 4.875 % ; Switzerland 8.50 % ; Britain 15 % .

Results of the Monday , October 16 , 1989 , auction of short-term U.S. government bills ,

9.88 % , standard conventional fixed-rate mortgages ; 7.875 % , 2 % rate capped one-year adjustable rate mortgages .

9.80 % , standard conventional fixed-rate mortgages ; 8.70 % , 6/2 rate capped one-year adjustable rate mortgages .

helped by a hefty boost in performance at its broadcasting and entertainment operations ,

net was $ 62.7 million , or 77 cents a primary share , up from $ 51.6 million , or 69 cents a share .

Per-share figures this year reflect $ 6.8 million in preferred-share dividends ;

Nine-month net climbed 19 % to $ 174.8 million , or $ 2.21 a primary share , from $ 147.5 million , or $ 1.94 a share .

Nine-month per-share figures for 1989 reflect $ 12.9 million in preferred dividends

In New York Stock Exchange composite trading Friday , Tribune closed at $ 49.375 , down $ 4.75 .

whose recent hostile tender offer for Recognition Equipment Inc. failed for lack of financing ,

apparently has gained a measure of control over the troubled company anyway .

As part of what a Recognition spokeswoman termed an `` amiable agreement , '' Prospect Group will wind up with control of top management posts and an increased stake in the maker of data management equipment .

In a management restructuring , Thomas L. Ringer resigned as chairman , chief executive and a director ,

Mr. Hurley was formerly a vice president and general manager of an Avery International division ;

Mr. Vanourek was a former group vice president of Pitney Bowes Inc .

In addition , the agreement calls for Gilbert H. Lamphere , chairman of Prospect Group 's executive committee , to be named chairman of a restructured board

Also named to the revised board was Thomas A . Loose , Recognition 's senior vice president and general counsel .

Prospect , a New York-based leveraged buy-out firm , also agreed to invest $ 15 million in Recognition ,

which in turn agreed to repurchase as much as $ 20 million of its stock .

That would increase Prospect 's ownership of the company 's fully-diluted shares outstanding to 20 % from 14.1 % .

Under the agreement , Prospect is permitted to increase its stake in Recognition to 30 % .

it would n't offer to acquire additional shares for less than $ 11.25 a share during the next year or less than $ 14.06 a share during the subsequent two years .

to convert an estimated $ 18 million in bank debt to a new , 24-month secured term loan

it was in violation of certain terms of its debt agreements with bank lenders

because of a $ 3.9 million loss for the third quarter ended July 31 .

The company attributed the loss to declining revenue and litigation costs

relating to criminal charges against the company and two former executives , William G. Moore Jr. and Robert W. Reedy .

The former executives were indicted last October on charges of fraud , theft and conspiracy

it expected to put the agreement with Prospect to a vote of its stockholders at a special meeting in January .

In New York Stock Exchange composite trading , Recognition rose 87.5 cents to $ 6.625 .

Prospect slipped 25 cents to $ 10.50 in national over-the-counter trading .

The former president of FirstSouth F.A. , a defunct Arkansas thrift , pleaded guilty to conspiring to inflate the institution 's earnings

could receive a maximum sentence of five years in federal prison and a $ 250,000 fine .

executed by Dallas real-estate developers A. Starke Taylor III and George S. Watson ,

Neither Mr. Taylor nor Mr. Watson have been charged with criminal wrongdoing .

certain transactions with Messrs. Taylor and Watson were entered on FirstSouth 's books as loans ,

allowing the thrift to report fees and interest as current income ,

to hide FirstSouth 's shaky financial condition from federal regulators ,

The $ 1.68 billion thrift was declared insolvent and closed in December 1986 .

FirstSouth 's former chairman and chief executive officer , Howard Weichern , is also charged with conspiring to conceal the agreements with Messrs. Watson and Taylor .

Mr. Weichern is scheduled for trial Jan. 3 before federal Judge Stephen Reasoner of Little Rock .

I approached `` Mastergate , '' Larry Gelbart 's new comedy at the Criterion Center , with considerable trepidation .

would be more hopelessly dated than a political satire on the Iran-Contra affair .

I had underestimated , however , both Mr. Gelbart 's wit and the persistence of scandal in Washington .

Though the play clearly is framed around the events of Iran-Contra ,

a cool , carefully coiffed television announcer , recites a list of a dozen or more scandals of recent years ,

affecting the Department of Housing and Urban Development and the savings and loan industry .

Onstage , a congressional hearing is in progress , complete with elegant crystal chandelier overhead and a lifesize reproduction of the signing of the Constitution in the background .

The witness table is center stage and below it , the paraphernalia for the ever-present media , in this case TNN , the Total News Network .

but the proceedings are shown on monitors throughout the theater .

-- the witnesses , the lawyers , the interrogators and the news media --

that the Internal Revenue Service confiscated one of the properties of a foreign financier

He himself lives in a `` consecutive series of unnumbered houses in a town in Switzerland . ''

a lowly IRS agent is called into the hospital room of Wylie Slaughter , the dying head of the Central Intelligence Agency .

to distinguish it from `` Tet , the Offensive , '' as well as `` Tet , the Book '' and `` Tet , the Album . ''

is a cover for sending $ 800 million of arms to Los Otros , the rebel group

which has been taken over by the leftist dictator Dr. Overtega , a former podiatrist ,

is Major Manley Battle , Mr. Gelbart 's stand in for Col. Oliver North .

to carry out the impersonations of well-known political figures and to play the stock characters

mixing just the right brand of self-righteousness and patriotism ;

Jeff Weiss is fire , brimstone and teary-eyed emotionalism as the far-right senator

Joseph Daly has the perfect `` aw , shucks '' demeanor of George Bush in his portrayal of the vice president ;

and Ann McDonough is first-rate as a succession of witnesses ' wives .

and as the vice president 's wife she rushes in with white hair ,

Though it 's clear that Mr. Gelbart 's sympathies do not lie with the far right ,

it 's also true that he is evenhanded in dispensing his satirical jabs ,

taking sharp aim at senators and congressmen of all stripes and particularly at the media .

and found himself `` handling blanket appeals at the Bureau of Indian Affairs . ''

This interest in words goes beyond puns and playfulness , however .

Mr. Gelbart deplores the obfuscation , the circumlocution and the debasement of language

Most of the evening , though , is filled with rare and welcome wit .

In `` Mastergate , '' Mr. Gelbart has provided us not just one but two commodities

sharp political satire and an even sharper appreciation of the value of language .

The Federal National Mortgage Association set up a three-member office of the chairman

and elected James A. Johnson as vice chairman , effective Jan. 1 .

Mr. Johnson has been a managing director at Shearson Lehman Hutton since 1985 ,

and before that was president of Public Strategies , a Washington consulting firm .

having been executive assistant to Vice President Walter Mondale and chairman of Mr. Mondale 's 1984 presidential campaign .

At Fannie Mae , he will take responsibility for the corporation 's financial and legal areas

and will work with David Maxwell , chairman and chief executive officer , and Roger Birk , president and chief operating officer , on strategic planning .

Mr. Johnson , 45 years old , has been a consultant on strategy to Fannie Mae for the past 3 1/2 years .

Fannie Mae faces a number of challenges with the restructuring of the thrift industry and the push

James A. Aliber , chairman of First Federal of Michigan and a director since 1985 , moved up the date of his retirement from the board

Fannie Mae , a federally chartered , shareholder-owned corporation , operates a secondary market for mortgage loans ,

recorded a 47 % narrowing in its trade surplus with the U.S. in August ,

As a result , Canada 's trade surplus with the U.S. narrowed to C $ 656.5 million

U.S. exports benefited in August from heavy Canadian spending on new plant and equipment and a pickup in Canadian auto demand ,

to arrange an acceleration of planned tariff cuts under the U.S.-Canada free trade agreement .

Industries in both countries have requested a speedup of tariff cuts on hundreds of products .

The remainder were to be phased out in five or 10 annual installments ,

The two countries aim to reach an agreement by early December on a package of accelerated tariff cuts

the trade pact has kindled an export interest among many small Canadian companies

For such businessmen , the Canadian government is organizing 55 missions this year to U.S. states

The businessmen are introduced to potential agents and distributors

The U.S. Commerce Department is planning to try out similar trips on U.S. businessmen in coming months under its Canada First ! Outreach Program .

Participants in the U.S. missions to Canada are to be assisted by members of the Service Corps of Retired Executives , a volunteer group , in dealing with their export challenges .

The Canadian government also has recently opened new trade offices in San Diego ; San Juan , Puerto Rico ; Miami ; Princeton , N.J. , and Denver ,

bringing the total number of such Canadian offices in the U.S. to 27 .

Canada 's export effort has been blunted by robust home market demand and by an 18 % appreciation of the Canadian dollar against its U.S. counterpart in the past three years

Canada 's trade surplus with all countries narrowed to C $ 203.5 million in August from C $ 528.3 million in July ,

seeking to streamline its business after a year of weak earnings and mounting loan problems ,

that third-quarter profit dropped 41 % , to $ 42.7 million , or 61 cents a share , from the year-earlier $ 72.3 million , or $ 1.04 a share .

it plans to sell 53 of its 453 branch offices and to lay off 800 employees .

Altogether , employment is expected to decline to less than 16,000 from the current level of about 18,000 .

that the company expects to record pretax gains of $ 100 million to $ 125 million from the sale of its leasing operations and of certain financial processing services .

Nonperforming assets continued to pile up in the latest quarter ,

rising to $ 900 million , or 3.52 % of loans and leases , from $ 667 million , or 2.68 % , at the end of the second quarter .

Some $ 170 million of the $ 233 million increase in nonperforming loans was related to real estate ,

and roughly three-quarters of that was in the troubled New England market ,

despite continued weakness in the region 's real estate market ,

Bank of New England expects the rate of increase in nonperforming assets to slow in coming quarters .

that net third-quarter charge-offs , at $ 63 million , improved slightly from the $ 67 million in the second quarter .

that more substantial improvement is expected in the next couple of quarters .

The company increased its loan loss reserve to $ 354 million from $ 342 million at the end of the second quarter .

Total assets slipped to $ 31.4 billion , from $ 32 billion as of June 30 .

it will close its loan production offices in Chicago , New York and Philadelphia .

The Chicago office figured prominently in the bank 's problems earlier this year ,

when $ 65 million in loans to Chicago businessman William Stoecker went sour .

In an internal memorandum to employees , Messrs. Connolly and Driscoll described the restructuring as an effort

Blinder International Enterprises Inc. , the parent of beleaguered penny-stockbroker Blinder , Robinson & Co. , said

its shareholders approved a previously announced name change to Intercontinental Enterprises Inc .

`` The parent company is diversifying into other industries around the world , ''

the change was n't related to the brokerage 's recent troubles ,

which have included sharp declines in earnings , run-ins with the securities regulators and lawsuits by former customers .

third-quarter net income rose 26 % on the strength of its chemical business .

Net was $ 24 million , or $ 1.15 a share , up from $ 19 million , or 90 cents a share , a year earlier .

its chemical segment had profit of $ 22 million , up from $ 15 million a year ago ,

largely because of gains in electrochemicals such as caustic soda .

The market for electrochemicals include the paper , water-purification and textile industries .

The chemical segment had a $ 6 million gain on the sale of ammonia and urea businesses ,

which was offset by a $ 6 million charge for future environmental expenditures .

Profit in Olin 's defense and ammunition segment rose to $ 8 million from $ 7 million .

In the first nine months , net rose 21 % to $ 93 million , or $ 4.52 a share , from $ 77 million , or $ 3.62 a share a year ago .

In New York Stock Exchange composite trading , Olin closed at $ 58.50 a share , down 25 cents .

GTE Corp. and MCI Communications Corp. reported strong earnings gains to record levels for the third quarter .

Southwestern Bell Corp. and Cincinnati Bell posted slight declines .

aided by higher long-distance calling volumes and an increase in telephone lines in service .

but profits from telecommunications products and electrical products were flat .

the quarter included a 10 % increase in local-exchange usage for long-distance calling and a 5 % increase in the number of access lines in service .

Earlier rate reductions in Texas and California reduced the quarter 's revenue and operating profit $ 55 million ;

a year earlier , operating profit in telephone operations was reduced by a similar amount

Revenue in the telecommunications products and services unit rose 27 % to $ 728.8 million ,

Electrical products ' sales fell to $ 496.7 million from $ 504.5 million with higher world-wide lighting volume

offset by lower domestic prices and the impact of weaker currencies in Europe and South America .

In composite trading on the New York Stock Exchange , GTE rose $ 1.25 to $ 64.125 .

to sell long-distance telephone service to residential customers ,

Operating profit grew 57 % to $ 269 million from $ 171 million ,

while operating margins rose to 16.1 % from 15.9 % the previous quarter and 12.6 % a year ago .

In national over-the-counter trading , MCI fell $ 2.625 to $ 42.375 .

Charles Schellke , an analyst with Smith Barney , Harris Upham & Co. , said

some investors apparently expected slightly better revenue growth .

that competes with American Telephone & Telegraph 's Reach Out America plan .

MCI claims about 12 % of the overall long-distance telephone market but just under 10 % of the $ 23 billion residential market .

It has been trying to improve its share of the residential market .

The company wants its business mix to more closely match that of AT & T

MCI recorded `` another solid cash positive quarter , '' its fourth in a row ,

but declined to comment on whether the company is considering a dividend or is planning any acquisition .

net dropped 8.7 % , mainly the result of four extraordinary items :

that its Southwestern Bell Telephone Co. unit received last year ;

a production shift of several Yellow Pages directories to the fourth quarter from the third ; a rate refund in Missouri and a one-time adjustment to phone company revenues .

The company reported a 3.1 % increase in the number of access lines in service ,

its Southwestern Bell Mobile Systems unit added 30,000 new customers , with a current total of about 333,000 .

Southwestern shares fell 50 cents to $ 55.875 in composite trading on the New York Stock Exchange .

that the year-ago period was particularly strong , with an increase of nearly 70 % .

Revenue jumped nearly 17 % to $ 223.3 million from $ 191.4 million .

In composite trading on the New York Stock Exchange , Cincinnati Bell fell 25 cents to $ 29 .

that the number of access lines dropped slightly in the quarter , a decline

For the year , however , access lines in service have increased 5.5 % .

who faced rising doubt about his bid for American Airlines parent AMR Corp .

about reviving that purchase at a lower price , possibly around $ 250 a share , or $ 5.65 billion .

he was dropping it `` in light of the recent change in market conditions . ''

after the UAL buyers failed to obtain financing for their earlier $ 300-a-share bid ,

that snowballed into a 190-point drop Friday in the Dow Jones Industrial Average .

sent both stocks nosediving in composite trading on the New York Stock Exchange .

UAL tumbled $ 56.875 to $ 222.875 on volume of 2.3 million shares ,

Together , the two stocks wreaked havoc among takeover stock traders ,

and caused a 7.3 % drop in the Dow Jones Transportation Average , second in size only to the stock-market crash of Oct. 19 , 1987 .

After reaching an intraday high of $ 107.50 the day Mr. Trump disclosed his bid Oct. 17 ,

`` He still has n't proven his mettle as a big-league take-out artist , ''

said airline analyst Kevin Murphy of Morgan Stanley & amp ; Co .

' Why does n't he just follow through on one of these things ? ''

AMR had weighed a wide range of possible responses , from flat rejection to recapitalizations and leveraged buy-outs

that might have included either employees , a friendlier buyer such as Texas billionaire Robert Bass , or both .

that would have bolstered the authority of the Transportation Department

Yesterday , Mr. Trump tried to put the blame for the collapse of the UAL deal on Congress ,

contributed to the collapse of the UAL transaction , and the resulting disruption in the financial markets

Between then and his bid on Oct. 17 , the price fluctuated between $ 75.625 and $ 87.375 .

AMR was trading at around $ 84 yesterday before his withdrawal announcement ,

Mr. Trump could be sitting with a modest loss with the stock at $ 76.50 .

to protect the nation 's largest airline with a defensive transaction , such as the sale of stock to a friendly holder or company employees .

they believed Mr. Crandall and the AMR board might well decide to tough it out

said John Mattis , a bond analyst with Shearson Lehman Hutton Inc .

That skepticism would leave him with an even greater credibility problem

Meanwhile , Citicorp and Chase Manhattan Corp. , the two lead lenders on the UAL buy-out , met with other banks yesterday

if they would be willing to finance the buy-out at a lower price .

At $ 250 a share , the group would have to borrow about $ 6.1 billion from banks .

But other banks balked at the low interest rate and banking fees

but is n't likely to boost its $ 965 million equity contribution .

Nor is the group likely to come forward with a revised offer within the next 48 hours

In addition , the coalition of labor and management , longtime enemies

when 30 top pilot union leaders convene outside Chicago in a previously scheduled meeting .

it could transform what has been a harmonious process into an adversarial one .

the board might n't be able to obtain a higher offer from other bidders

because UAL Chairman Stephen Wolf and other UAL executives have joined the pilots ' bid ,

it has made a $ 409 million cash bid for most of L.J . Hooker Corp. 's real-estate and shopping-center holdings .

The $ 409 million bid includes the assumption of an estimated $ 300 million in secured liabilities on those properties ,

The group is led by Jay Shidler , chief executive officer of Shidler Investment Corp. in Honolulu , and A. Boyd Simpson , chief executive of the Atlanta-based Simpson Organization Inc .

Mr. Shidler 's company specializes in commercial real-estate investment

Mr. Simpson is a developer and a former senior executive of L.J . Hooker .

is operating with protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code .

Its parent company , Hooker Corp. of Sydney , Australia , is currently being managed by a court-appointed provisional liquidator .

Sanford Sigoloff , chief executive of L.J . Hooker , said yesterday in a statement

The $ 409 million bid is estimated by Mr. Simpson as representing 75 % of the value of all Hooker real-estate holdings in the U.S .

Not included in the bid are Bonwit Teller or B. Altman & Co. , L.J . Hooker 's department-store chains .

The offer covers the massive 1.8 million-square-foot Forest Fair Mall in Cincinnati , the 800,000 square-foot Richland Fashion Mall in Columbia , S.C. , and the 700,000 square-foot Thornton Town Center mall in Thornton , Colo .

The Thornton mall opened Sept. 19 with a Bigg 's hypermarket as its anchor ;

Other Hooker properties included are a 20-story office tower in midtown Atlanta ,

vacant land sites in Florida and Ohio ; L.J . Hooker International , the commercial real-estate brokerage company

that once did business as Merrill Lynch Commercial Real Estate ,

The consortium was put together by Hoare Govett , the London-based investment banking company

said Allan Campbell , the head of mergers and acquisitions at Hoare Govett , in an interview .

Hoare Govett is acting as the consortium 's investment bankers .

the bid was code-named Project Klute , a reference to the film `` Klute ''

when Mr. Simpson was hired to push it into commercial development .

when a majority position in Hooker Corp. was acquired by Australian developer George Herscu , currently Hooker 's chairman .

Mr. Herscu proceeded to launch an ambitious , but ill-fated , $ 1 billion acquisition binge

that included Bonwit Teller and B. Altman & Co. , as well as majority positions in Merksamer Jewelers , a Sacramento chain ; Sakowitz Inc. , the Houston-based retailer , and Parisian Inc. , the Southeast department-store chain .

Eventually Mr. Simpson and Mr. Herscu had a falling out over the direction of the company ,

Since then , Hooker Corp. has sold its interest in the Parisian chain back to Parisian 's management

In addition , Robert Sakowitz , chief executive of the Sakowitz chain , is seeking funds

The Merksamer chain is currently being offered for sale by First Boston Corp .

the various Hooker malls can become profitable with new management .

and with a long-term outlook , these can become investment-grade quality properties . ''

Ripples from the strike by 55,000 Machinists union members against Boeing Co. reached air carriers Friday

Peter Otradovec , vice president for planning at the Phoenix , Ariz. , carrier , said in an interview

-- the day after the airline had been planning to initiate service at Houston with four daily flights ,

including three nonstops to Phoenix and one nonstop to Las Vegas .

Boeing is also supposed to send to America West another 757 twin-engine aircraft as well as a 737 by year 's end .

-- including its new service at San Antonio , Texas ; Newark , N.J. ; and Palmdale , Calif. --

Nevertheless , the company 's reaction underscores the domino effect

that a huge manufacturer such as Boeing can have on other parts of the economy .

It also is sure to help the machinists put added pressure on the company .

Tom Baker , president of Machinists ' District 751 , said in an interview yesterday .

and therefore more affected by the delayed delivery of a single plane

that the strike was having much of an effect on other airline operations .

American is preparing to take delivery of another 757 in early December and 20 more next year

that the company has been in constant communication with all of its customers

and that it was impossible to predict what further disruptions might be triggered by the strike .

Meanwhile , supervisors and non-striking employees have been trying to finish some 40 aircraft

-- mostly 747 and 767 jumbo jets at the company 's Everett , Wash. , plant --

and a fifth plane , a 747-400 , was supposed to be flown out over the weekend to Air China .

The investment community , for one , has been anticipating a speedy resolution .

Though Boeing 's stock price was battered along with the rest of the market Friday ,

it actually has risen over the last two weeks on the strength of new orders .

to close at $ 57.375 in composite trading on the New York Stock Exchange .

that the company and union may resume negotiations as early as this week .

Last week , Boeing Chairman Frank Shrontz sent striking workers a letter ,

that `` to my knowledge , Boeing 's offer represents the best overall three-year contract of any major U.S. industrial firm in recent history . ''

-- and the company 's offer of a 10 % wage increase over the life of the pact , plus bonuses --

that the company miscalculated the union 's resolve and the workers ' disgust

-- Talks have broken off between Machinists representatives at Lockheed Corp. and the Calabasas , Calif. , aerospace company .

The union is continuing to work through its expired contract , however .

which represents 3,000 workers at Boeing 's helicopter unit in Delaware County , Pa. ,

it agreed to extend its contract on a day-by-day basis , with a 10-day notification

it received an order from Martinair Holland for four model 767-300 wide-body jetliners

The planes , long range versions of the medium-haul twin-jet , will be delivered with Pratt & Whitney PW4060 engines .

a delivery date for the planes is still being worked out `` for a variety of reasons ,

its utilities arm is considering building new electric power plants ,

C.S . Richardson , Atco 's senior vice president , finance , said

its 50.1 % -owned Canadian Utilities Ltd. unit is reviewing cogeneration projects in eastern Canada , and conventional electric power generating plants elsewhere ,

where the British government plans to allow limited competition in electrical generation from private-sector suppliers as part of its privatization program .

`` Ideally , we 'd like to be the operator { of the project } and a modest equity investor .

it would compete for customers with two huge British power generating companies

from the sale of most of its giant water and electric utilities ,

Under terms of the plan , independent generators would be able to compete for 15 % of customers until 1994 , and for another 10 % between 1994 and 1998 .

Canadian Utilities had 1988 revenue of C $ 1.16 billion , mainly from its natural gas and electric utility businesses in Alberta ,

that Canadian Utilities is also mulling projects in underdeveloped countries ,

Canadian Utilities is n't alone in exploring power generation opportunities in Britain , in anticipation of the privatization program .

`` We 're certainly looking at some power generating projects in England , ''

said Bruce Stram , vice president , corporate strategy and corporate planning , with Enron Corp. , Houston , a big natural gas producer and pipeline operator .

Enron is considering building gas-fired power plants in the U.K. capable of producing about 500 megawatts of power at a cost of about $ 300 million to $ 400 million .

to buy land in California suitable for residential development .

The partnership , Kaufman & Broad Land Development Venture Limited Partnership , is a 50-50 joint venture with a trust

created by institutional clients of Heitman Advisory Corp. , a unit of Heitman Financial Corp. , a real estate advisory , management and development company with offices in Chicago and Beverly Hills , Calif .

Kaufman & Broad , a home building company , declined to identify the institutional investors .

and part of Kaufman & Broad 's job will be to obtain such approvals .

but in return , it can buy land at wholesale rather than retail prices ,

said Bruce Karatz , president and chief executive officer of Kaufman & Broad .

that have adequate capital to buy properties in a raw state for cash .

although it is responsible for providing management , planning and processing services to the joint venture .

RJR Nabisco Inc. is disbanding its division responsible for buying network advertising time ,

just a month after moving 11 of the group 's 14 employees to New York from Atlanta .

taken private earlier this year in a $ 25 billion leveraged buy-out by Kohlberg Kravis Roberts & Co. ,

RJR is discussing its network-buying plans with its two main advertising firms , FCB/Leber Katz and McCann Erickson .

that an ad agency could do just as good a job at significantly lower cost , ''

RJR is spending about $ 140 million on network television time this year , down from roughly $ 200 million last year .

and the move wo n't affect RJR 's print , radio and spot-television buying practices .

The broadcast group had been based in New York until a year ago ,

when RJR 's previous management moved it to Atlanta , the company 's headquarters before this summer .

RJR moved 11 employees of the group back to New York in September

the company hired three more buyers for the unit within the past two weeks ,

The group 's president , Peter Chrisanthopoulos , was n't in his office Friday afternoon

is allocating a larger share of its steel market to developing and newly industrialized countries

Meanwhile , the U.S. has negotiated a significant cut in Japan 's steel quota ,

and made only a minor increase to the steel allotment for the European Community .

Brazil , similar to Mexico and South Korea , is expected to negotiate a somewhat bigger share of the U.S. market

In recent years , U.S. steelmakers have supplied about 80 % of the 100 million tons of steel

Of the remaining 20 % needed , the steel-quota negotiations allocate about 15 % to foreign suppliers , with the difference

that do n't have formal steel quotas with the U.S. , such as Taiwan , Sweden and Argentina ,

Some of these countries have in recent years made informal agreements with the U.S .

which has been notoriously managed , subsidized and protected by governments .

The U.S. termed its plan , a `` trade liberalization program , ''

virtually doubled its quota to 0.95 % of the U.S. steel market from 0.48 % under the previous quotas .

That increase rises to slightly more than 2 % of the U.S. market

Meanwhile , Brazil is expected to increase its allowance from the 1.43 % share

Japan has been shipping steel to total about 4.5 % of the U.S. market

In the recent talks , the EC had its quota increased about 300,000 tons , to 7 % of the U.S. market from 6.7 % in 1988 .

Japan , however , has agreed to cut its quota to about 5 % from 5.9 % previously .

Japan , the EC , Brazil , Mexico and South Korea provide about 80 % of the steel

The balance is supplied by a host of smaller exporters , such as Australia and Venezuela .

That was essentially made up of a 1 % increase in the overall quota program and 1 % from cutting Japan 's allowance .

Negotiators from the White House trade office will repeat these quota negotiations next year

when they will have another 1 % of the U.S. steel market to allocate .

These optional 1 % -a-year increases to the steel quota program are built into the Bush administration 's steel-quota program

to try to get them to withdraw subsidies and protectionism from their own steel industries .

Elcotel Inc. expects fiscal second-quarter earnings to trail 1988 results ,

that several new products will lead to a `` much stronger '' performance in its second half .

Elcotel , a telecommunications company , had net income of $ 272,000 , or five cents a share , in its year-earlier second quarter ,

George Pierce , chairman and chief executive officer , said in an interview

that earnings in the most recent quarter will be about two cents a share on revenue of just under $ 4 million

reflect a 12-month decline in industry sales of privately owned pay telephones , Elcotel 's primary business .

Although Mr. Pierce expects that line of business to strengthen in the next year ,

Foremost among those is the company 's entrance into the public facsimile business ,

Within the next year , Elcotel expects to place 10,000 fax machines ,

made by Minolta in Japan , in hotels , municipal buildings , drugstores and other public settings around the country .

Elcotel should realize a minimum of $ 10 of recurring net earnings for each machine each month .

for automating and handling credit-card calls and collect calls .

Automatic call processors will provide that system for virtually any telephone ,

The company will also be producing a new line of convenience telephones ,

for use in hotel lobbies , office lobbies , hospitality lounges and similar settings .

that the processors and convenience phones would produce about $ 5 of recurring net earnings for each machine each month .

Measuring cups may soon be replaced by tablespoons in the laundry room .

Procter & Gamble Co. plans to begin testing next month a superconcentrated detergent

where local competitors have had phenomenal success with concentrated soapsuds .

that its Japanese rivals , such as Kao Corp. , may bring their superconcentrates to the U.S .

The Cincinnati consumer-products giant got clobbered two years ago in Japan

P & G 's share of the Japanese market fell to about 8 % from more than 20 % .

With the help of Lemon Cheer , P & G 's share is now estimated to be 12 % .

While the Japanese have embraced the compact packaging and convenience of concentrated products ,

the true test for P & G will be in the $ 4 billion U.S. detergent market ,

The company may have chosen to market the product under the Cheer name

since it 's already expanded its best-selling Tide into 16 different varieties ,

With superconcentrates , however , it is n't always easy to persuade consumers that less is more ;

many people tend to dump too much detergent into the washing machine ,

In the early 1980s , P & G tried to launch here a concentrated detergent under the Ariel brand name

P & G and others also have tried repeatedly to hook consumers on detergent and fabric softener combinations in pouches ,

Then retailers `` will probably push the { less-established } brands out altogether , ''

but so far the company has focused on acquisitions , such as last year 's purchase of Andrew Jergens Co. , a Cincinnati hand-lotion maker .

P & G 's interest in a superconcentrated detergent goes beyond the concern for the Japanese .

many Japanese had feared last week 's visit from U.S. Trade Representative Carla Hills .

for the U.S. and Japan to work together and of the importance of the long-term view .

Mrs. Hills ' first trip to Japan as America 's chief trade negotiator had a completely different tone from last month 's visit by Commerce Secretary Robert A. Mosbacher .

Mr. Mosbacher called for concrete results by next spring in negotiations over fundamental Japanese business practices

speaking at a breakfast meeting of the American Chamber of Commerce in Japan on Saturday ,

that the objective `` is not to get definitive action by spring or summer ,

that she expected `` perhaps to have a down payment . . . some small step

How such remarks translate into policy wo n't become clear for months .

American and Japanese officials offered several theories for the difference in approach betwen Mr. Mosbacher and Mrs. Hills .

over pursuing free trade with Japan versus some kind of managed trade .

we have a very consistent trade strategy in the Bush administration . ''

who sat in with her during three days of talks with Japanese officials

in removing barriers to trade in forest products , satellites and supercomputers , three areas

But her main thrust was to promote the importance of world-wide free trade and open competition .

At her news conference for Japanese reporters , one economics journalist summed up the Japanese sense of relief .

that you are beautiful and gentle and intelligent and a person of integrity . ''

Mrs. Hills ' remarks did raise questions , at least among some U.S. officials ,

about what exactly her stance is on U.S. access to the Japanese semiconductor market .

The U.S. share of the Japanese market has been stuck around 10 % for years .

Traditional reported net income of $ 4.9 million , or $ 1.21 a share .

In the latest nine months net income was $ 4.7 million , or $ 1.31 a share , on revenue of $ 44.3 million .

it would file a delayed fiscal-year report with the Securities and Exchange Commission `` within approximately 45 days . ''

in resolving its accounting of a settlement with the Federal Trade Commission .

The oil industry 's middling profits could persist through the rest of the year .

Major oil companies in the next few days are expected to report much less robust earnings

largely reflecting deteriorating chemical prices and gasoline profitability .

The industry is `` seeing a softening somewhat in volume and certainly in price in petrochemicals , ''

Glenn Cox , president of Phillips Petroleum Co. , said in an interview .

`` That change will obviously impact third and fourth quarter earnings '' for the industry in general ,

Phillips will be among the companies hard-hit by weak chemical prices

Typical is what happened to the price of ethylene , a major commodity chemical

`` Refining margins were so good in the third quarter of last year

said William Randol , a securities analyst at First Boston Corp .

to prepare for a robust holiday driving season in July and August

In addition , crude oil prices were up some from a year earlier ,

gasoline profits will rebound this quarter , though still not to the level of 1988 's fourth quarter .

During the 1988 second half , many companies posted record gasoline and chemical profits .

Crude oil production may turn out to be the most surprising element of companies ' earnings this year .

-- averaging roughly $ 2 a barrel higher in the third quarter than a year earlier --

when oil prices steadily fell to below $ 13 a barrel in the fourth quarter .

This summer , on the other hand , had milder weather than usual .

`` We 've been very disappointed in the performance of natural gas prices , ''

`` The lagging gas price is not going to assist fourth quarter performance

natural gas prices are anywhere from 8 % to 17 % lower than a year earlier .

is selling on the spot market for around $ 1.47 a thousand cubic feet , down 13 % from $ 1.69 a thousand cubic feet a year ago .

trying to blunt growing demands from Western Europe for a relaxation of controls on exports to the Soviet bloc ,

whether Italy 's Ing . C. Olivetti & Co. supplied militarily valuable technology to the Soviets .

Most of the Western European members of Coordinating Committee on Multilateral Export Controls , the unofficial forum

through which the U.S. and its allies align their export-control policies ,

are expected to argue for more liberal export rules at a meeting

governing exports of machine tools , computers and other high-technology products .

that all Cocom members are complying fully with existing export-control procedures

that Olivetti may have supplied the Soviet Union with sophisticated computer-driven devices

cited a U.S. intelligence report as the source of the allegations

that Olivetti exported $ 25 million in `` embargoed , state-of-the-art , flexible manufacturing systems to the Soviet aviation industry . ''

that the U.S. is discussing the allegations with the Italian government and Cocom ,

Italian President Francesco Cossiga promised a quick investigation

President Bush called his attention to the matter during the Italian leader 's visit here last week .

that the reported shipments were properly licensed by the Italian authorities .

Although the legality of these sales is still an open question ,

to support the position of export-control hawks in the Pentagon and the intelligence community .

`` It seems to me that a story like this breaks just before every important Cocom meeting , ''

said a Washington lobbyist for a number of U.S. computer companies .

The Bush administration has sent conflicting signals about its export-control policies ,

reflecting unhealed divisions among several competing agencies .

Last summer , Mr. Bush moved the administration in the direction of gradual liberalization

that he would allow some exceptions to the Cocom embargo of strategic goods .

But more recently , the Pentagon and the Commerce Department openly feuded over the extent

to which Cocom should liberalize exports of personal computers to the bloc .

that the West should be cautious about any further liberalization .

Salomon Brothers International Ltd. , a British subsidiary of Salomon Inc. , announced

it will issue warrants on shares of Hong Kong Telecommunications Ltd .

The move closely follows a similar offer by Salomon of warrants for shares of Hongkong & Shanghai Banking Corp .

and are expected to carry a premium to the share price of about 26 % .

In trading on the Stock Exchange of Hong Kong , the shares closed Wednesday at HK $ 4.80 each .

At this price , the shares would have to rise above HK $ 6.05 for subscribers to Salomon 's issue

While Hong Kong companies have in the past issued warrants on their own shares ,

because they give foreign investors , wary of volatility in the colony 's stock market , an opportunity

The Hong Kong Telecommunications warrants should be attractive to buyers in Europe ,

because the group is one of a handful of blue-chip stocks on the Hong Kong market

Financial Corp. of Santa Barbara filed suit against former stock speculator Ivan F. Boesky and Drexel Burnham Lambert Inc. ,

when persuading it to buy $ 284 million in high-yield , high-risk junk bonds .

after Mr. Boesky and Drexel negotiated an agreement for Vagabond Hotels

who currently is serving a prison term for securities violations .

In addition to $ 33 million compensatory damages , the suit seeks $ 100 million in punitive damages .

Also named in the suit is Ivan F. Boesky Corp. and Northview Corp. , the successor company to Vagabonds Hotels .

after a representative of Ivan F. Boesky Corp. visited it in November 1983

Shortly before the visit , Mr. Boesky and Drexel representives had met with Financial Corp. officials

Financial Corp. purchased the bonds in at least 70 different transactions in 1984

calling for HOFI North America Inc. to combine its North American cement holdings with Ideal in a transaction

that will leave Ideal 's minority shareholders with 12.8 % of the combined company .

HOFI , the North American holding company of Swiss concern Holderbank Financiere Glaris Ltd. , previously proposed combining its 100 % stake in St. Lawrence Cement Inc. and its 60 % stake in Dundee Cement Co. with its 67 % stake in Ideal .

But HOFI 's first offer would have given Ideal 's other shareholders about 10 % of the combined company .

Under the agreement , HOFI will own 87.2 % of the combined company .

Ideal 's current operations will represent about 39.2 % of the combined company .

The transaction is subject to a definitive agreement and approval by Ideal shareholders .

co-founders Charles and Maurice Saatchi will lead a management buy-out attempt ,

Financing for any takeover attempt may be problematic in the wake of Friday 's stock-market sell-off in New York and turmoil in the junk-bond market .

has been the subject of intense takeover speculation for weeks .

Last week , Saatchi 's largest shareholder , Southeastern Asset Management , said

And Carl Spielvogel , chief executive officer of Saatchi 's big Backer Spielvogel Bates advertising unit , said

`` if a bidder came up with a ludicrously high offer , a crazy offer

But { otherwise } it would undoubtedly come back '' with an offer by management .

and whose strategic guiding force is believed to be Charles Saatchi .

nor are any of the other heads of Saatchi 's big U.S.-based ad agencies .

as industry executives analyzed the appointment of the new chief executive , Robert Louis-Dreyfus ,

Mr. Louis-Dreyfus , formerly chief executive of the pharmaceutical research firm IMS International Inc. , has a reputation as a savvy financial manager ,

and will be charged largely with repairing Saatchi 's poor financial state .

the company 's management shakeup will have little affect on them .

said a spokeswoman for Miller Brewing Co. , a major client of Backer Spielvogel .

John Lampe , director of advertising at PaineWebber Inc. , a Saatchi & Saatchi Advertising client , said :

Executives at Backer Spielvogel client Avis Inc. , as well as at Saatchi client Philips Lighting Co. , also said

Executives at Prudential-Bache Securities Inc. , a Backer Spielvogel client

that Prudential-Bache was prepared to finance either a management buy-out and restructuring , or a buy-out of Backer Spielvogel alone ,

California 's Glendale Federal Bank awarded its $ 12 million to $ 15 million account to the Los Angeles office of Omnicom Group 's BBDO agency .

The account was previously handled by Davis , Ball & Colombatto Advertising Inc. , a Los Angeles agency .

Royal Crown Cola Co. has ended its relationship with the Boston office of Hill , Holliday , Connors , Cosmopulos .

Young & Rubicam Inc. along with two senior executives and a former employee , pleaded not guilty in federal court in New Haven , Conn. , to conspiracy and racketeering charges .

extradition proceedings are `` just beginning '' for the other two defendants in the case , Eric Anthony Abrahams , former Jamaican tourism minister , and Jamaican businessman Arnold Foote Jr .

The Samsung Group and Bozell Inc. agreed to establish a joint venture advertising agency in South Korea .

Samsung already owns Korea First Advertising Co. , that country 's largest agency .

Bozell joins Backer Spielvogel Bates and Ogilvy Group as U.S. agencies with interests in Korean agencies .

Citing a payment from a supplier and strong sales of certain data-storage products ,

net income rose to $ 4.8 million , or 23 cents a share , from year-earlier net of $ 1.1 million , or five cents a share .

the discontinued product has never been a major source of revenue or profit .

that store data for high-end personal computers and computer workstations .

In the fiscal first half , net was $ 7 million , or 34 cents a share , up from the year-earlier $ 3.1 million , or 15 cents a share .

that as many as five North American assembly plants may not survive the mid-1990s

as the corporation struggles to cut its excess vehicle-making capacity .

In announcements to workers late last week , GM effectively signed death notices for two full-sized van assembly plants ,

and cast serious doubt on the futures of three U.S. car factories .

as the giant auto maker 's U.S. market share skidded during the past decade .

currently using about 80 % of its North American vehicle capacity ,

it would make an aging assembly plant in Lakewood , Ga. , the eighth U.S. assembly facility

Now , GM appears to be stepping up the pace of its factory consolidation

One reason is mounting competition from new Japanese car plants in the U.S .

that are pouring out more than one million vehicles a year at costs lower

Another is that United Auto Workers union officials have signaled

they want tighter no-layoff provisions in the new Big Three national contract

The problem , however , is that GM 's moves are coming at a time

blasting GM 's `` flagrant insensitivity '' toward union members .

to let word of the latest shutdowns and product reassignments trickle out in separate communiques to the affected plants

GM officials told workers late last week of the following moves :

Production of full-sized vans will be consolidated into a single plant in Flint , Mich .

-- one in Scarborough , Ontario , and the other in Lordstown , Ohio --

The shutdowns will idle about 3,000 Canadian assembly workers and about 2,500 workers in Ohio .

Robert White , Canadian Auto Workers union president , used the impending Scarborough shutdown

to criticize the U.S.-Canada free trade agreement and its champion , Prime Minister Brian Mulroney .

Workers at plants in Van Nuys , Calif. , Oklahoma City and Pontiac , Mich. , were told

their facilities are no longer being considered to build the next generation of the Pontiac Firebird and Chevrolet Camaro muscle cars .

whether it can build the new Camaro-Firebird profitably at a plant in St. Therese , Quebec ,

That announcement left union officials in Van Nuys and Oklahoma City uncertain about their futures .

which could build several different types of products on short notice

At Pontiac , however , the Camaro-Firebird decision appears to erase UAW hopes

that last built the plastic-bodied , two-seater Pontiac Fiero model .

The Fiero plant was viewed as a model of union-management cooperation at GM

before slow sales of the Fiero forced the company to close the factory last year .

Dissident UAW members have used the Fiero plant as a symbol of labor-management cooperation 's failure .

the Canadian government raised an obstacle to its proposed acquisition of Connaught BioSciences Inc. for 942 million Canadian dollars

the government 's minister of industry , science and technology told it

that the purchase is likely to be of `` net benefit '' to Canada .

Both Merieux and Connaught are biotechnology research and vaccine manufacturing concerns .

that the agency has made an adverse net-benefit decision about the acquisition of a publicly traded company .

said Jodi Redmond , press secretary for Harvie Andre , Canada 's minister of industry , science and technology .

they had n't been informed of specific areas of concern by either the government or Investment Canada ,

Investment Canada declined to comment on the reasons for the government decision .

Viren Mehta , a partner with Mehta & Isaly , a New York-based pharmaceutical industry research firm , said

concerning Canada 's only large , world-class bio-research or pharmaceutical company , ''

could be an out-of-court settlement of Connaught 's dispute with the University of Toronto .

The University is seeking to block the acquisition of Connaught by foreign interests ,

citing concerns about the amount of research that would be done in Canada .

Mr. Mehta expects it to contain more specific guarantees on research and development spending levels in Canada

Some analysts , such as Murray Grossner of Toronto-based Richardson Greenshields Inc. , believe

the government ruling leaves the door open for other bidders , such as Switzerland 's Ciba-Geigy and Chiron Corp. of Emeryville , Calif .