ptb.test.txt

 no it was n't black monday 
 but while the new york stock exchange did n't fall apart friday as the dow jones industrial average plunged N points most of it in the final hour it barely managed to stay this side of chaos 
 some circuit breakers installed after the october N crash failed their first test traders say unable to cool the selling panic in both stocks and futures 
 the N stock specialist firms on the big board floor the buyers and sellers of last resort who were criticized after the N crash once again could n't handle the selling pressure 
 big investment banks refused to step up to the plate to support the beleaguered floor traders by buying big blocks of stock traders say 
 heavy selling of standard & poor 's 500-stock index futures in chicago <unk> beat stocks downward 
 seven big board stocks ual amr bankamerica walt disney capital cities\/abc philip morris and pacific telesis group stopped trading and never resumed 
 the <unk> has already begun 
 the equity market was <unk> 
 once again the specialists were not able to handle the imbalances on the floor of the new york stock exchange said christopher <unk> senior vice president at <unk> securities corp 
 <unk> james <unk> chairman of specialists henderson brothers inc. it is easy to say the specialist is n't doing his job 
 when the dollar is in a <unk> even central banks ca n't stop it 
 speculators are calling for a degree of liquidity that is not there in the market 
 many money managers and some traders had already left their offices early friday afternoon on a warm autumn day because the stock market was so quiet 
 then in a <unk> plunge the dow jones industrials in barely an hour surrendered about a third of their gains this year <unk> up a 190.58-point or N N loss on the day in <unk> trading volume 
 <unk> trading accelerated to N million shares a record for the big board 
 at the end of the day N million shares were traded 
 the dow jones industrials closed at N 
 the dow 's decline was second in point terms only to the <unk> black monday crash that occurred oct. N N 
 in percentage terms however the dow 's dive was the <unk> ever and the sharpest since the market fell N or N N a week after black monday 
 the dow fell N N on black monday 
 shares of ual the parent of united airlines were extremely active all day friday reacting to news and rumors about the proposed $ N billion buy-out of the airline by an <unk> group 
 wall street 's takeover-stock speculators or risk arbitragers had placed unusually large bets that a takeover would succeed and ual stock would rise 
 at N p.m. edt came the <unk> news the big board was <unk> trading in ual pending news 
 on the exchange floor as soon as ual stopped trading we <unk> for a panic said one top floor trader 
 several traders could be seen shaking their heads when the news <unk> 
 for weeks the market had been nervous about takeovers after campeau corp. 's cash crunch spurred concern about the prospects for future highly leveraged takeovers 
 and N minutes after the ual trading halt came news that the ual group could n't get financing for its bid 
 at this point the dow was down about N points 
 the market <unk> 
 arbitragers could n't dump their ual stock but they rid themselves of nearly every rumor stock they had 
 for example their selling caused trading halts to be declared in usair group which closed down N N to N N delta air lines which fell N N to N N and <unk> industries which sank N to N N 
 these stocks eventually reopened 
 but as panic spread speculators began to sell blue-chip stocks such as philip morris and international business machines to offset their losses 
 when trading was halted in philip morris the stock was trading at N down N N while ibm closed N N lower at N 
 selling <unk> because of waves of automatic stop-loss orders which are triggered by computer when prices fall to certain levels 
 most of the stock selling pressure came from wall street professionals including computer-guided program traders 
 traders said most of their major institutional investors on the other hand sat tight 
 now at N one of the market 's post-crash reforms took hold as the s&p N futures contract had plunged N points equivalent to around a <unk> drop in the dow industrials 
 under an agreement signed by the big board and the chicago mercantile exchange trading was temporarily halted in chicago 
 after the trading halt in the s&p N pit in chicago waves of selling continued to hit stocks themselves on the big board and specialists continued to <unk> prices down 
 as a result the link between the futures and stock markets <unk> apart 
 without the <unk> of stock-index futures the barometer of where traders think the overall stock market is headed many traders were afraid to trust stock prices quoted on the big board 
 the futures halt was even <unk> by big board floor traders 
 it <unk> things up said one major specialist 
 this confusion effectively halted one form of program trading stock index arbitrage that closely links the futures and stock markets and has been blamed by some for the market 's big swings 
 in a stock-index arbitrage sell program traders buy or sell big baskets of stocks and offset the trade in futures to lock in a price difference 
 when the airline information came through it <unk> every model we had for the marketplace said a managing director at one of the largest program-trading firms 
 we did n't even get a chance to do the programs we wanted to do 
 but stocks kept falling 
 the dow industrials were down N points at N p.m. before the <unk> halt 
 at N p.m. at the end of the cooling off period the average was down N points 
 meanwhile during the the s&p trading halt s&p futures sell orders began <unk> up while stocks in new york kept falling sharply 
 big board chairman john j. phelan said yesterday the circuit breaker worked well <unk> 
 i just think it 's <unk> at this point to get into a debate if index arbitrage would have helped or hurt things 
 under another post-crash system big board president richard <unk> mr. phelan was flying to <unk> as the market was falling was talking on an <unk> hot line to the other exchanges the securities and exchange commission and the federal reserve board 
 he <unk> out at a high-tech <unk> center on the floor of the big board where he could watch <unk> on prices and pending stock orders 
 at about N p.m. edt s&p futures resumed trading and for a brief time the futures and stock markets started to come back in line 
 buyers stepped in to the futures pit 
 but the <unk> of s&p futures sell orders weighed on the market and the link with stocks began to fray again 
 at about N the s&p market <unk> to still another limit of N points down and trading was locked again 
 futures traders say the s&p was <unk> that the dow could fall as much as N points 
 during this time small investors began ringing their brokers wondering whether another crash had begun 
 at prudential-bache securities inc. which is trying to cater to small investors some <unk> brokers thought this would be the final <unk> 
 that 's when george l. ball chairman of the prudential insurance co. of america unit took to the internal <unk> system to declare that the plunge was only mechanical 
 i have a <unk> that this particular decline today is something more <unk> about less 
 it would be my <unk> to advise clients not to sell to look for an opportunity to buy mr. ball told the brokers 
 at merrill lynch & co. the nation 's biggest brokerage firm a news release was prepared <unk> merrill lynch comments on market drop 
 the release cautioned that there are significant differences between the current environment and that of october N and that there are still attractive investment opportunities in the stock market 
 however jeffrey b. lane president of shearson lehman hutton inc. said that friday 's plunge is going to set back relations with customers because it <unk> the concern of volatility 
 and i think a lot of people will <unk> on program trading 
 it 's going to bring the debate right back to the <unk> 
 as the dow average ground to its final N loss friday the s&p pit stayed locked at its <unk> trading limit 
 jeffrey <unk> of program trader <unk> investment group said N s&p contracts were for sale on the close the equivalent of $ N million in stock 
 but there were no buyers 
 while friday 's debacle involved mainly professional traders rather than investors it left the market vulnerable to continued selling this morning traders said 
 stock-index futures contracts settled at much lower prices than indexes of the stock market itself 
 at those levels stocks are set up to be <unk> by index arbitragers who lock in profits by buying futures when futures prices fall and simultaneously sell off stocks 
 but nobody knows at what level the futures and stocks will open today 
 the <unk> between the stock and futures markets friday will undoubtedly cause renewed debate about whether wall street is properly prepared for another crash situation 
 the big board 's mr. <unk> said our <unk> performance was good 
 but the exchange will look at the performance of all specialists in all stocks 
 obviously we 'll take a close look at any situation in which we think the <unk> obligations were n't met he said 
 see related story fed ready to <unk> big funds wsj oct. N N 
 but specialists complain privately that just as in the N crash the <unk> firms big investment banks that support the market by trading big blocks of stock stayed on the sidelines during friday 's <unk> 
 mr. phelan said it will take another day or two to analyze who was buying and selling friday 
 concerning your sept. N page-one article on prince charles and the <unk> it 's a few hundred years since england has been a kingdom 
 it 's now the united kingdom of great britain and northern ireland <unk> <unk> northern ireland scotland and oh yes england too 
 just thought you 'd like to know 
 george <unk> 
 ports of call inc. reached agreements to sell its remaining seven aircraft to buyers that were n't disclosed 
 the agreements bring to a total of nine the number of planes the travel company has sold this year as part of a restructuring 
 the company said a portion of the $ N million realized from the sales will be used to repay its bank debt and other obligations resulting from the currently suspended <unk> operations 
 earlier the company announced it would sell its aging fleet of boeing co. <unk> because of increasing maintenance costs 
 a consortium of private investors operating as <unk> funding co. said it has made a $ N million cash bid for most of l.j. hooker corp. 's real-estate and <unk> holdings 
 the $ N million bid includes the assumption of an estimated $ N million in secured liabilities on those properties according to those making the bid 
 the group is led by jay <unk> chief executive officer of <unk> investment corp. in <unk> and a. boyd simpson chief executive of the atlanta-based simpson organization inc 
 mr. <unk> 's company specializes in commercial real-estate investment and claims to have $ N billion in assets mr. simpson is a developer and a former senior executive of l.j. hooker 
 the assets are good but they require more money and management than can be provided in l.j. hooker 's current situation said mr. simpson in an interview 
 hooker 's philosophy was to build and sell 
 we want to build and hold 
 l.j. hooker based in atlanta is operating with protection from its creditors under chapter N of the u.s. bankruptcy code 
 its parent company hooker corp. of sydney australia is currently being managed by a court-appointed provisional <unk> 
 sanford <unk> chief executive of l.j. hooker said yesterday in a statement that he has not yet seen the bid but that he would review it and bring it to the attention of the creditors committee 
 the $ N million bid is estimated by mr. simpson as representing N N of the value of all hooker real-estate holdings in the u.s. 
 not included in the bid are <unk> teller or b. altman & co. l.j. hooker 's department-store chains 
 the offer covers the massive N <unk> forest fair mall in cincinnati the N <unk> <unk> fashion mall in columbia s.c. and the N <unk> <unk> town center mall in <unk> <unk> 
 the <unk> mall opened sept. N with a <unk> 's <unk> as its <unk> the columbia mall is expected to open nov. N 
 other hooker properties included are a <unk> office tower in <unk> atlanta expected to be completed next february 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 plus other shopping centers 
 the consortium was put together by <unk> <unk> the london-based investment banking company that is a subsidiary of security pacific corp 
 we do n't anticipate any problems in raising the funding for the bid said <unk> campbell the head of mergers and acquisitions at <unk> <unk> in an interview 
 <unk> <unk> is acting as the consortium 's investment bankers 
 according to people familiar with the consortium the bid was <unk> project <unk> a reference to the film <unk> in which a <unk> played by actress <unk> <unk> is saved from a <unk> businessman by a police officer named john <unk> 
 l.j. hooker was a small <unk> company based in atlanta in N when mr. simpson was hired to push it into commercial development 
 the company grew modestly until N when a majority position in hooker corp. was acquired by australian developer george <unk> currently hooker 's chairman 
 mr. <unk> <unk> to launch an ambitious but <unk> $ N billion acquisition binge that included <unk> teller and b. altman & co. as well as majority positions in merksamer jewelers a sacramento chain <unk> inc. the <unk> retailer and <unk> inc. the southeast department-store chain 
 eventually mr. simpson and mr. <unk> had a falling out over the direction of the company and mr. simpson said he resigned in N 
 since then hooker corp. has sold its interest in the <unk> chain back to <unk> 's management and is currently attempting to sell the b. altman & co. chain 
 in addition robert <unk> chief executive of the <unk> chain is seeking funds to buy out the hooker interest in his company 
 the merksamer chain is currently being offered for sale by first boston corp 
 reached in <unk> mr. <unk> said that he believes the various hooker <unk> can become profitable with new management 
 these are n't mature assets but they have the potential to be so said mr. <unk> 
 managed properly and with a long-term outlook these can become investment-grade quality properties 
 canadian <unk> production totaled N metric tons in the week ended oct. N up N N from the preceding week 's total of N tons statistics canada a federal agency said 
 the week 's total was up N N from N tons a year earlier 
 the <unk> total was N tons up N N from N tons a year earlier 
 the treasury plans to raise $ N million in new cash thursday by selling about $ N billion of 52-week bills and <unk> $ N billion of maturing bills 
 the bills will be dated oct. N and will mature oct. N N 
 they will be available in minimum denominations of $ N 
 bids must be received by N p.m. edt thursday at the treasury or at federal reserve banks or branches 
 as small investors <unk> their mutual funds with phone calls over the weekend big fund managers said they have a strong defense against any wave of withdrawals cash 
 unlike the weekend before black monday the funds were n't <unk> with heavy withdrawal requests 
 and many fund managers have built up cash levels and say they will be buying stock this week 
 at fidelity investments the nation 's largest fund company telephone volume was up sharply but it was still at just half the level of the weekend preceding black monday in N 
 the boston firm said <unk> redemptions were running at less than one-third the level two years ago 
 as of yesterday afternoon the redemptions represented less than N N of the total cash position of about $ N billion of fidelity 's stock funds 
 two years ago there were massive redemption levels over the weekend and a lot of fear around said c. bruce <unk> who runs fidelity investments ' $ N billion <unk> fund 
 this feels more like a <unk> deal 
 people are n't <unk> 
 the test may come today 
 friday 's stock market sell-off came too late for many investors to act 
 some shareholders have held off until today because any fund exchanges made after friday 's close would take place at today 's closing prices 
 stock fund redemptions during the N debacle did n't begin to <unk> until after the market opened on black monday 
 but fund managers say they 're ready 
 many have raised cash levels which act as a buffer against steep market declines 
 mario <unk> for instance holds cash positions well above N N in several of his funds 
 windsor fund 's john <unk> and mutual series ' michael price said they had raised their cash levels to more than N N and N N respectively this year 
 even peter lynch manager of fidelity 's $ N billion <unk> fund the nation 's largest stock fund built up cash to N N or $ N million 
 one reason is that after two years of monthly net redemptions the fund posted net inflows of money from investors in august and september 
 i 've let the money build up mr. lynch said who added that he has had trouble finding stocks he likes 
 not all funds have raised cash levels of course 
 as a group stock funds held N N of assets in cash as of august the latest figures available from the investment company institute 
 that was modestly higher than the N N and N N levels in august and september of N 
 also persistent redemptions would force some fund managers to dump stocks to raise cash 
 but a strong level of investor withdrawals is much more unlikely this time around fund managers said 
 a major reason is that investors already have sharply scaled back their purchases of stock funds since black monday 
 <unk> sales have rebounded in recent months but monthly net purchases are still running at less than half N levels 
 there 's not nearly as much <unk> said john <unk> chairman of vanguard group inc. a big valley forge pa. fund company 
 many fund managers argue that now 's the time to buy 
 vincent <unk> manager of the $ N billion wellington fund added to his positions in bristol-myers squibb woolworth and dun & bradstreet friday 
 and today he 'll be looking to buy drug stocks like eli lilly pfizer and american home products whose dividend yields have been bolstered by stock declines 
 fidelity 's mr. lynch for his part snapped up southern co. shares friday after the stock got <unk> 
 if the market drops further today he said he 'll be buying blue chips such as bristol-myers and kellogg 
 if they <unk> stocks like that he said it presents an opportunity that is the kind of thing you dream about 
 major mutual-fund groups said phone calls were <unk> at twice the normal weekend pace yesterday 
 but most investors were seeking share prices and other information 
 trading volume was only modestly higher than normal 
 still fund groups are n't taking any chances 
 they hope to avoid the <unk> phone lines and other <unk> that <unk> some fund investors in october N 
 fidelity on saturday opened its N <unk> investor centers across the country 
 the centers normally are closed through the weekend 
 in addition east coast centers will open at N edt this morning instead of the normal N 
 t. rowe price associates inc. increased its staff of phone representatives to handle investor requests 
 the <unk> group noted that some investors moved money from stock funds to money-market funds 
 but most investors seemed to be in an information mode rather than in a transaction mode said steven <unk> a vice president 
 and vanguard among other groups said it was adding more phone representatives today to help investors get through 
 in an unusual move several funds moved to calm investors with <unk> on their <unk> phone lines 
 we view friday 's market decline as offering us a buying opportunity as long-term investors a recording at <unk> & co. funds said over the weekend 
 the <unk> group had a similar recording for investors 
 several fund managers expect a rough market this morning before prices stabilize 
 some early selling is likely to stem from investors and portfolio managers who want to lock in this year 's fat profits 
 stock funds have averaged a staggering gain of N N through september according to lipper analytical services inc 
 <unk> <unk> who runs shearson lehman hutton inc. 's $ N million sector analysis portfolio predicts the market will open down at least N points on technical factors and some panic selling 
 but she expects prices to rebound soon and is telling investors she expects the stock market wo n't decline more than N N to N N from recent highs 
 this is not a major crash she said 
 nevertheless ms. <unk> said she was <unk> with phone calls over the weekend from nervous shareholders 
 half of them are really scared and want to sell she said but i 'm trying to talk them out of it 
 she added if they all were bullish i 'd really be upset 
 the backdrop to friday 's slide was <unk> different from that of the october N crash fund managers argue 
 two years ago unlike today the dollar was weak interest rates were rising and the market was very <unk> they say 
 from the investors ' standpoint institutions and individuals learned a painful lesson by selling at the lows on black monday said stephen boesel manager of the $ N million t. rowe price growth and income fund 
 this time i do n't think we 'll get a panic reaction 
 newport corp. said it expects to report <unk> earnings of between N cents and N cents a share somewhat below analysts ' estimates of N cents to N cents 
 the maker of scientific instruments and laser parts said orders fell below expectations in recent months 
 a spokesman added that sales in the current quarter will about equal the <unk> quarter 's figure when newport reported net income of $ N million or N cents a share on $ N million in sales 
 <unk> from the strike by N machinists union members against boeing co. reached air carriers friday as america west airlines announced it will postpone its new service out of houston because of delays in receiving aircraft from the seattle jet maker 
 peter <unk> vice president for planning at the phoenix ariz. carrier said in an interview that the work <unk> at boeing now entering its 13th day has caused some turmoil in our scheduling and that more than N passengers who were booked to fly out of houston on america west would now be put on other airlines 
 mr. <unk> said boeing told america west that the N it was supposed to get this thursday would n't be delivered until nov. N the day after the airline had been planning to <unk> service at houston with four daily flights including three <unk> to phoenix and one <unk> to las vegas 
 now those routes are n't expected to begin until jan 
 boeing is also supposed to send to america west another N <unk> aircraft as well as a N by year 's end 
 those too are almost certain to arrive late 
 at this point no other america west flights including its new service at san antonio texas newark n.j. and <unk> calif. have been affected by the delays in boeing deliveries 
 nevertheless the company 's reaction <unk> the <unk> 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 
 i just do n't feel that the company can really stand or would want a prolonged <unk> tom baker president of machinists ' district N said in an interview yesterday 
 i do n't think their customers would like it very much 
 america west though is a smaller airline and therefore more affected by the delayed delivery of a single plane than many of its competitors would be 
 i figure that american and united probably have such a hard time counting all the planes in their fleets they might not miss one at all mr. <unk> said 
 indeed a random check friday did n't seem to indicate that the strike was having much of an effect on other airline operations 
 southwest airlines has a boeing N set for delivery at the end of this month and expects to have the plane on time 
 it 's so close to completion boeing 's told us there wo n't be a problem said a southwest spokesman 
 a spokesman for amr corp. said boeing has assured american airlines it will deliver a N on time later this month 
 american is preparing to take delivery of another N in early december and N more next year and is n't anticipating any changes in that timetable 
 in seattle a boeing spokesman explained 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 <unk> employees have been trying to finish some N aircraft mostly N and N jumbo jets at the company 's <unk> wash. plant that were all but completed before the <unk> 
 as of friday four had been delivered and a fifth plane a N was supposed to be <unk> out over the weekend to air china 
 no date has yet been set to get back to the bargaining table 
 we want to make sure they know what they want before they come back said doug hammond the federal mediator who has been in contact with both sides since the strike began 
 the investment community for one has been anticipating a <unk> 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 
 the market has taken two views that the labor situation will get settled in the short term and that things look very <unk> for boeing in the long term said howard <unk> an analyst at <unk> j. lawrence inc 
 boeing 's shares fell $ N friday to close at $ N in composite trading on the new york stock exchange 
 but mr. baker said he thinks the earliest a pact could be struck would be the end of this month <unk> that the company and union may resume negotiations as early as this week 
 still he said it 's possible that the strike could last considerably longer 
 i would n't expect an immediate resolution to anything 
 last week boeing chairman frank <unk> sent striking workers a letter saying that to my knowledge boeing 's offer represents the best overall three-year contract of any major u.s. industrial firm in recent history 
 but mr. baker called the letter and the company 's offer of a N N wage increase over the life of the pact plus bonuses very weak 
 he added that the company <unk> the union 's resolve and the workers ' <unk> with being forced to work many hours overtime 
 in separate developments talks have broken off between machinists representatives at lockheed corp. and the <unk> calif. aerospace company 
 the union is continuing to work through its expired contract however 
 it had planned a strike vote for next sunday but that has been pushed back indefinitely 
 united auto workers local N which represents N workers at boeing 's helicopter unit in delaware county pa. said it agreed to extend its contract on a <unk> basis with a <unk> notification to cancel while it continues bargaining 
 the accord expired yesterday 
 and boeing on friday said it received an order from <unk> <unk> for four model N <unk> <unk> valued at a total of about $ N million 
 the planes long range versions of the <unk> <unk> will be delivered with <unk> & <unk> <unk> engines 
 <unk> & <unk> is a unit of united technologies inc 
 <unk> <unk> is based in amsterdam 
 a boeing spokeswoman said a delivery date for the planes is still being worked out for a variety of reasons but not because of the strike 
 <unk> <unk> contributed to this article 
 <unk> ltd. said its utilities arm is considering building new electric power plants some valued at more than one billion canadian dollars us$ N million in great britain and elsewhere 
 <unk> <unk> <unk> 's senior vice president finance said its <unk> canadian utilities ltd. unit is reviewing <unk> projects in eastern canada and conventional electric power generating plants elsewhere including britain where the british government plans to allow limited competition in electrical generation from private-sector suppliers as part of its privatization program 
 the projects are big 
 they can be c$ N billion plus mr. <unk> said 
 but we would n't go into them alone and canadian utilities ' equity stake would be small he said 
 <unk> we 'd like to be the operator of the project and a modest equity investor 
 our long suit is our proven ability to operate power plants he said 
 mr. <unk> would n't offer <unk> regarding <unk> 's proposed british project but he said it would compete for customers with two huge british power generating companies that would be formed under the country 's plan to <unk> its massive water and electric utilities 
 britain 's government plans to raise about # N billion $ N billion from the sale of most of its giant water and electric utilities beginning next month 
 the planned electric utility sale scheduled for next year is alone expected to raise # N billion making it the world 's largest public offering 
 under terms of the plan independent <unk> would be able to compete for N N of customers until N and for another N N between N and N 
 canadian utilities had N revenue of c$ N billion mainly from its natural gas and electric utility businesses in alberta where the company serves about N customers 
 there seems to be a move around the world to <unk> the generation of electricity mr. <unk> said and canadian utilities hopes to capitalize on it 
 this is a real thrust on our utility side he said adding that canadian utilities is also <unk> projects in <unk> countries though he would be specific 
 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 <unk> vice president corporate strategy and corporate planning with enron corp. houston a big natural gas producer and pipeline operator 
 mr. <unk> said enron is considering building <unk> power plants in the u.k. capable of producing about N <unk> of power at a cost of about $ N million to $ N million 
 pse inc. said it expects to report third earnings of $ N million to $ N million or N cents to N cents a share 
 in the year-ago quarter the designer and operator of <unk> and waste heat recovery plants had net income of $ N or four cents a share on revenue of about $ N million 
 the company said the improvement is related to additional <unk> facilities that have been put into operation 
 <unk> <unk> flights are $ N to paris and $ N to london 
 in a centennial journal article oct. N the fares were reversed 
 diamond <unk> offshore partners said it had discovered gas offshore louisiana 
 the well <unk> at a rate of N million cubic feet of gas a day through a N <unk> opening at <unk> between N and N feet 
 diamond <unk> is the operator with a N N interest in the well 
 diamond <unk> offshore 's stock rose N cents friday to close at $ N in new york stock exchange composite trading 
 <unk> & broad home corp. said it formed a $ N million limited partnership subsidiary to buy land in california suitable for residential development 
 the partnership <unk> & broad land development venture limited partnership is a N joint venture with a trust created by institutional clients of <unk> advisory corp. a unit of <unk> financial corp. a real estate advisory management and development company with offices in chicago and beverly hills calif 
 <unk> & broad a home building company declined to identify the institutional investors 
 the land to be purchased by the joint venture has n't yet received <unk> and other approvals required for development and part of <unk> & broad 's job will be to obtain such approvals 
 the partnership runs the risk that it may not get the approvals for development but in return it can buy land at wholesale rather than retail prices which can result in sizable savings said bruce <unk> president and chief executive officer of <unk> & broad 
 there are really very few companies that have adequate capital to buy properties in a raw state for cash 
 typically developers option property and then once they get the administrative approvals they buy it said mr. <unk> adding that he believes the joint venture is the first of its kind 
 we usually operate in that conservative manner 
 by setting up the joint venture <unk> & broad can take the more aggressive approach of buying raw land while avoiding the negative <unk> to its own balance sheet mr. <unk> said 
 the company is putting up only N N of the capital although it is responsible for providing management planning and processing services to the joint venture 
 this is one of the best ways to assure a pipeline of land to fuel our growth at a minimum risk to our company mr. <unk> said 
 when the price of plastics took off in N quantum chemical corp. went along for the ride 
 the timing of quantum 's chief executive officer john <unk> <unk> appeared to be nothing less than inspired because he had just increased quantum 's reliance on plastics 
 the company <unk> much of the chemical industry as annual profit grew <unk> in two years 
 mr. <unk> said of the boom it 's going to last a whole lot longer than anybody thinks 
 but now prices have <unk> and quantum 's profit is <unk> 
 some securities analysts are looking for no better than break-even results from the company for the third quarter compared with year-earlier profit of $ N million or $ N a share on sales of $ N million 
 the stock having lost nearly a quarter of its value since sept. N closed at $ N share down $ N in new york stock exchange composite trading friday 
 to a degree quantum represents the new times that have arrived for producers of the so-called commodity plastics that <unk> modern life 
 having just passed through one of the most profitable periods in their history these producers now see their prices eroding 
 pricing cycles to be sure are nothing new for plastics producers 
 and the financial decline of some looks steep only in comparison with the <unk> period that is just behind them 
 we were all wonderful heroes last year says an executive at one of quantum 's competitors 
 now we 're at the bottom of the <unk> 
 at quantum which is based in new york the trouble is magnified by the company 's heavy <unk> on plastics 
 once known as national <unk> & chemical corp. the company <unk> the wine and spirits business and <unk> more of its resources into plastics after mr. <unk> took the chief executive 's job in N 
 mr. <unk> N years old declined to be interviewed for this article but he has consistently argued that over the long haul across both the <unk> and the <unk> of the plastics market quantum will <unk> through its new direction 
 quantum 's lot is mostly tied to polyethylene <unk> used to make garbage bags milk <unk> <unk> toys and meat packaging among other items 
 in the u.s. polyethylene market quantum has claimed the largest share about N N 
 but its competitors including dow chemical co. union carbide corp. and several oil giants have much broader business interests and so are better <unk> against price swings 
 when the price of polyethylene moves a mere penny a pound quantum 's annual profit <unk> by about N cents a share provided no other <unk> are changing 
 in recent months the price of polyethylene even more than that of other commodity plastics has taken a dive 
 benchmark grades which still sold for as much as N cents a pound last spring have skidded to between N cents and N cents 
 meanwhile the price of <unk> the chemical building block of polyethylene has n't dropped nearly so fast 
 that <unk> <unk> quantum badly because its own plants cover only about half of its <unk> needs 
 by many accounts an early hint of a price rout in the making came at the start of this year 
 china which had been putting in huge orders for polyethylene abruptly halted them 
 <unk> that excess polyethylene would soon be <unk> around the world other buyers then bet that prices had peaked and so began to draw down inventories rather than order new product 
 kenneth mitchell director of dow 's polyethylene business says producers were surprised to learn how much inventories had swelled throughout the distribution chain as prices <unk> up 
 people were even <unk> bags he says 
 now producers hope prices have hit bottom 
 they recently announced increases of a few cents a pound to take effect in the next several weeks 
 no one knows however whether the new posted prices will stick once producers and customers start to <unk> 
 one <unk> is george <unk> a <unk> analyst at oppenheimer & co. and a bear on plastics stocks 
 noting others ' estimates of when price increases can be sustained he remarks some say october 
 some say november 
 i say N 
 he argues that efforts to firm up prices will be undermined by producers ' plans to expand production capacity 
 a quick turnaround is crucial to quantum because its cash requirements remain heavy 
 the company is trying to carry out a three-year $ N billion <unk> program started this year 
 at the same time its annual payments on long-term debt will more than double from a year ago to about $ N million largely because of debt taken on to pay a $ <unk> special dividend earlier this year 
 quantum described the payout at the time as a way for it to share the <unk> with its holders because its stock price was n't reflecting the huge profit increases 
 some analysts saw the payment as an effort also to <unk> takeover speculation 
 whether a cash crunch might eventually force the company to cut its quarterly dividend raised N N to N cents a share only a year ago has become a topic of intense speculation on wall street since mr. <unk> <unk> dividend questions in a sept. N meeting with analysts 
 some viewed his response that company directors review the dividend regularly as nothing more than the standard line from executives 
 but others came away thinking he had given something less than his usual <unk> performance 
 in any case on the day of the meeting quantum 's shares slid $ N to $ N in big board trading 
 on top of everything else quantum <unk> a disaster at its plant in morris ill 
 after an explosion <unk> the plant in june the company <unk> in september to within N hours of completing the <unk> process of <unk> it 
 then a second explosion occurred 
 two workers died and six remain in the hospital 
 this human toll adds the most painful <unk> yet to the sudden change in quantum 's fortunes 
 until this year the company had been steadily lowering its accident rate and picking up <unk> safety <unk> 
 a prolonged production halt at the plant could introduce another <unk> into quantum 's financial future 
 when a plant has just been running flat out to meet demand <unk> lost profit and thus claims under <unk> insurance is <unk> 
 but the numbers become <unk> and subject to <unk> between insured and insurer when demand is shifting 
 you say you could have sold x percent of this product and <unk> percent of that recalls <unk> <unk> an analyst at shearson lehman hutton who went through this exercise during his former career as a chemical engineer 
 and then you still have to negotiate 
 quantum hopes the morris plant where limited production got under way last week will resume full operation by year 's end 
 the plant usually accounts for N N to N N of quantum 's polyethylene production and N N of its <unk> production 
 not everything looks grim for quantum 
 the plant expansion should strengthen the company 's <unk> in the polyethylene business where market share is often taken through sheer capacity 
 by lifting <unk> production the expansion will also lower the company 's raw material costs 
 quantum is also tightening its grip on its one large business outside chemicals propane marketing 
 through a venture with its investment banker first boston corp. quantum completed in august an acquisition of <unk> inc. in a transaction valued at $ N billion 
 <unk> is the second-largest propane distributor in the u.s. 
 the largest suburban propane was already owned by quantum 
 still quantum has a crisis to get past right now 
 some analysts speculate the weakening stock may yet attract a suitor 
 the name <unk> in rumors is british petroleum co. which is looking to expand its polyethylene business in the u.s. 
 asked about a bid for quantum a <unk> spokesman says we pretty much have a policy of not commenting on rumors and i think that falls in that category 
 rjr nabisco inc. is <unk> its division responsible for buying network advertising time just a month after moving N of the group 's N employees to new york from atlanta 
 a spokesman for the new york-based food and tobacco giant taken private earlier this year in a $ N billion leveraged buy-out by kohlberg kravis roberts & co. confirmed that it is <unk> down the rjr nabisco broadcast unit and <unk> its N employees in a move to save money 
 the spokesman said rjr is discussing its <unk> plans with its two main advertising firms <unk> katz and <unk> <unk> 
 we found with the size of our media purchases that an ad agency could do just as good a job at significantly lower cost said the spokesman who declined to specify how much rjr spends on network television time 
 an executive close to the company said rjr is spending about $ N million on network television time this year down from roughly $ N million last year 
 the spokesman said the broadcast unit will be <unk> dec. N and the move wo n't affect rjr 's print radio and <unk> 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 
 one employee with the group said rjr moved N employees of the group back to new york in september because there was supposed to be a future 
 he said the company hired three more buyers for the unit within the past two weeks wooing them from jobs with advertising agencies 
 the rjr spokesman said the company moved the N employees to new york last month because the group had then been in the midst of purchasing ad time for the networks ' <unk> season 
 the studies on closing the unit could n't be completed until now he said 
 the group 's president peter <unk> was n't in his office friday afternoon to comment 
 the u.s. which is <unk> its <unk> quotas is <unk> a larger share of its steel market to developing and newly industrialized countries which have relatively <unk> steel industries 
 meanwhile the u.s. has negotiated a significant cut in japan 's steel quota and made only a minor increase to the steel <unk> for the european community 
 brazil similar to mexico and south korea is expected to negotiate a somewhat bigger share of the u.s. market than it had under the previous five-year steel quotas which expired sept. N 
 brazil and venezuela are the only two countries that have n't completed steel talks with the u.s. for the year ending oct. N N 
 in recent years u.s. steelmakers have supplied about N N of the N million tons of steel used annually by the nation 
 of the remaining N N needed the <unk> negotiations <unk> about N N to foreign suppliers with the difference supplied mainly by canada which is n't included in the quota program 
 other countries that do n't have formal steel quotas with the u.s. such as taiwan sweden and argentina also have supplied steel 
 some of these countries have in recent years made informal agreements with the u.s. that are similar to quotas 
 the bush administration earlier this year said it would extend steel quotas known as voluntary restraint agreements until march N N 
 it also said it would use that <unk> year period to work toward an international consensus on <unk> up the international steel trade which has been <unk> managed subsidized and protected by governments 
 the u.s. termed its plan a trade <unk> program despite the fact that it is merely an extension 
 mexico which was one of the first countries to conclude its steel talks with the u.s. virtually doubled its quota to N N of the u.s. steel market from N N under the previous quotas 
 south korea which had N N under the previous quotas is set to get a small increase to about N N 
 that increase rises to slightly more than N N of the u.s. market if a joint <unk> steel project is included 
 meanwhile brazil is expected to increase its allowance from the N N share it has had in recent years 
 the ec and japan the u.s. 's largest steel suppliers have n't been filling their quotas to the full extent 
 the ec steel industry which has been coping with strong european demand has been supplying about N N of the u.s. market compared with recent quotas of about N N 
 japan has been shipping steel to total about N N of the u.s. market compared with a quota of N N 
 in the recent talks the ec had its quota increased about N tons to N N of the u.s. market from N N in N 
 but its quota has been as high as N N in N 
 japan however has agreed to cut its quota to about N N from N N previously 
 japan the ec brazil mexico and south korea provide about N N of the steel imported to the u.s. under the quota program 
 the balance is supplied by a host of smaller exporters such as australia and venezuela 
 the u.s. had about an extra N N of the domestic steel market to give to foreign suppliers in its quota talks 
 that was essentially made up of a N N increase in the overall quota program and N N from cutting japan 's allowance 
 negotiators from the white house trade office will repeat these quota negotiations next year when they will have another N N of the u.s. steel market to <unk> 
 these <unk> <unk> increases to the steel quota program are built into the bush administration 's <unk> program to give its negotiators leverage with foreign steel suppliers to try to get them to withdraw subsidies and <unk> from their own steel industries 
 <unk> inc. expects fiscal second-quarter earnings to trail N results but anticipates that several new products will lead to a much stronger performance in its second half 
 <unk> a telecommunications company had net income of $ N or five cents a share in its year-earlier second quarter ended sept. N 
 revenue totaled $ N million 
 george <unk> 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 $ N million 
 the lower results mr. <unk> said reflect a 12-month decline in industry sales of privately owned pay telephones <unk> 's primary business 
 although mr. <unk> expects that line of business to strengthen in the next year he said <unk> will also benefit from moving into other areas 
 <unk> among those is the company 's <unk> into the public facsimile business mr. <unk> said 
 within the next year <unk> expects to place N fax machines made by <unk> in japan in hotels municipal buildings <unk> and other public <unk> around the country 
 <unk> will provide a credit-card reader for the machines to collect store and forward billing data 
 mr. <unk> said <unk> should realize a minimum of $ N of <unk> net earnings for each machine each month 
 <unk> has also developed an automatic call <unk> that will make further use of the company 's system for <unk> and handling credit-card calls and collect calls 
 automatic call processors will provide that system for virtually any telephone mr. <unk> said not just phones produced by <unk> 
 the company will also be producing a new line of convenience telephones which do n't accept coins for use in hotel <unk> office <unk> <unk> <unk> and similar <unk> 
 mr. <unk> estimated that the processors and convenience phones would produce about $ N of <unk> net earnings for each machine each month 
 britain 's retail price index rose N N in september from august and was up N N for the year the central statistical office said 
 <unk> medical inc. said it adopted a shareholders ' rights plan in which rights to purchase shares of common stock will be distributed as a dividend to shareholders of record as of oct. N 
 the company said the plan was n't adopted in response to any known offers for <unk> a maker and marketer of hospital products 
 the rights allow shareholders to purchase <unk> stock at a discount if any person or group acquires more than N N of the company 's common stock or <unk> a tender offer 
 measuring <unk> may soon be replaced by <unk> in the <unk> room 
 procter & gamble co. plans to begin testing next month a <unk> detergent that will require only a few <unk> per <unk> 
 the move stems from <unk> learned in japan where local competitors have had <unk> success with concentrated <unk> 
 it also marks p&g 's growing concern that its japanese rivals such as <unk> corp. may bring their <unk> to the u.s. 
 the cincinnati consumer-products giant got clobbered two years ago in japan when <unk> introduced a powerful detergent called attack which quickly won a N N stake in the japanese markets 
 they do n't want to get caught again says one industry <unk> 
 retailers in phoenix ariz. say p&g 's new <unk> detergent to be called <unk> with color guard will be on shelves in that market by early november 
 a p&g spokeswoman confirmed that shipments to phoenix started late last month 
 she said the company will study results from this market before expanding to others 
 <unk> are n't entirely new for p&g 
 the company introduced a <unk> <unk> <unk> in japan after watching the success of attack 
 when attack hit the shelves in N p&g 's share of the japanese market fell to about N N from more than N N 
 with the help of <unk> <unk> p&g 's share is now estimated to be N N 
 while the japanese have embraced the compact packaging and convenience of concentrated products the true test for p&g will be in the $ N billion u.s. detergent market where growth is slow and <unk> have gained <unk> over <unk> 
 the company may have chosen to market the product under the <unk> name since it 's already expanded its <unk> tide into N different <unk> including this year 's big hit tide with <unk> 
 with <unk> however it is n't always easy to persuade consumers that less is more many people tend to dump too much detergent into the <unk> machine <unk> that it takes a cup of <unk> to really clean the <unk> 
 in the early 1980s p&g tried to launch here a concentrated detergent under the <unk> brand name that it markets in europe 
 but the product which was n't as concentrated as the new <unk> <unk> in a market test in denver and was dropped 
 p&g and others also have tried repeatedly to hook consumers on detergent and fabric <unk> <unk> in <unk> but they have n't sold well despite the convenience 
 but p&g contends the new <unk> is a unique formula that also offers an <unk> that prevents colors from <unk> 
 and retailers are expected to <unk> the product in part because it will take up less shelf space 
 when shelf space was cheap bigger was better says <unk> <unk> an analyst at salomon <unk> 
 but with so many brands <unk> for space that 's no longer the case 
 if the new <unk> sells well the trend toward smaller packaging is likely to accelerate as competitors follow with their own <unk> 
 then retailers will probably push the <unk> brands out altogether he says 
 competition is bound to get tougher if <unk> <unk> a product like attack in the u.s. 
 to be sure <unk> would n't have an easy time taking u.s. market share away from the mighty p&g which has about N N of the market 
 <unk> officials previously have said they are interested in selling <unk> in the u.s. but so far the company has focused on acquisitions such as last year 's purchase of andrew <unk> co. a cincinnati <unk> maker 
 it also has a <unk> facility in california 
 some believe p&g 's interest in a <unk> detergent goes beyond the concern for the japanese 
 this is something p&g would do with or without <unk> says mr. <unk> 
 with economic tension between the u.s. and japan worsening many japanese had feared last week 's visit from u.s. trade representative carla hills 
 they expected a new <unk> of demands that japan do something quickly to reduce its trade surplus with the u.s. 
 instead they got a discussion of the need 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 that supposedly inhibit free trade 
 he said such results should be <unk> in dollars and cents in reducing the u.s. trade deficit with japan 
 but mrs. hills speaking at a breakfast meeting of the american chamber of commerce in japan on saturday stressed that the objective is not to get definitive action by spring or summer it is rather to have a blueprint for action 
 she added that she expected perhaps to have a down payment some small step to convince the american people and the japanese people that we 're moving in <unk> 
 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 <unk> mr. mosbacher and mrs. hills 
 many called it simply a contrast in styles 
 but some saw it as a classic negotiating <unk> 
 others said the bush administration may feel the rhetoric on both sides is getting out of hand 
 and some said it reflected the growing debate in washington over pursuing free trade with japan <unk> some kind of managed trade 
 asked to compare her visit to mr. mosbacher 's mrs. hills replied i did n't hear every word he spoke but as a general proposition i think we have a very consistent trade strategy in the bush administration 
 yet more than one american official who sat in with her during three days of talks with japanese officials said her tone often was surprisingly <unk> 
 i think my line has been very consistent mrs. hills said at a news conference saturday afternoon 
 i am painted sometimes as <unk> perhaps because i have a <unk> list of statutes to implement 
 i do n't feel very <unk> 
 i do n't feel either hard or soft 
 i feel committed to the program of opening markets and expanding trade 
 when she met the local press for the first time on friday mrs. hills firmly reiterated the need for progress in removing barriers to trade in forest products <unk> and <unk> three areas targeted under the <unk> N provision of the N trade bill 
 she <unk> <unk> business practices that the u.s. government has identified 
 but her main thrust was to promote the importance of world-wide free trade and open competition 
 she said the trade <unk> was mainly due to <unk> factors and should n't be <unk> by setting <unk> targets 
 at her news conference for japanese reporters one economics journalist <unk> up the japanese sense of relief 
 my impression was that you would be a scary old lady he said drawing a few nervous <unk> from his colleagues 
 but i am relieved to see that you are beautiful and <unk> and <unk> 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 N N for years 
 many americans have interpreted a N agreement as <unk> u.s. companies a N N share by N but the japanese have denied making any such promise 
 at one of her news conferences mrs. hills said i believe we can do much better than N N 
 but she stressed i am against managed trade 
 i will not enter into an agreement that <unk> to a percentage of the market 
 traditional industries inc. said it expects to report a net loss for the fourth quarter that ended june N and is seeking new financing 
 the seller of photographic products and services said it is considering a number of financing alternatives including seeking increases in its credit lines 
 traditional declined to estimate the amount of the loss and would n't say if it expects to show a profit for the year 
 in the year ended june N N traditional reported net income of $ N million or $ N a share 
 the company did n't break out its fourth-quarter results 
 in the latest nine months net income was $ N million or $ N a share on revenue of $ N million 
 separately the company said it would file a delayed <unk> report with the securities and exchange commission within approximately N days 
 it said the delay resulted from difficulties in <unk> its accounting of a settlement with the federal trade commission 
 under an agreement filed in federal court in august to settle ftc objections to some traditional sales practices traditional said it would establish a $ N trust fund to provide refunds to certain customers 
 information international inc. said it was sued by a buyer of its computerized <unk> system alleging that the company failed to correct deficiencies in the system 
 a spokesman for information international said the lawsuit by two units of morris communications corp. seeks <unk> of the system 's about $ N million purchase price and cancellation of a software license provided by the morris units to information international for alleged failure to pay royalties 
 information international said it believes that the complaints filed in federal court in georgia are without merit 
 closely held morris communications is based in <unk> <unk> 
 the units that filed the suit are <unk> newspapers corp. and florida publishing co 
 <unk> corp. completed the sale of its a. <unk> & co. subsidiary a men 's luxury <unk> to <unk> investments 
 terms were n't disclosed 
 as <unk> 's core business of <unk> retailing grows a small subsidiary that is <unk> unrelated becomes a difficult <unk> said <unk> <unk> president of the parent in a statement 
 a spokeswoman said <unk> operates a total of seven stores in the u.s. and overseas 
 <unk> operates N <unk> apparel stores in the u.s. 
 the oil industry 's <unk> profits could <unk> through the rest of the year 
 major oil companies in the next few days are expected to report much less robust earnings than they did for the third quarter a year ago largely reflecting deteriorating chemical prices and gasoline profitability 
 the gasoline picture may improve this quarter but chemicals are likely to remain weak industry executives and analysts say reducing chances that profits could equal their year-earlier performance 
 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 he added 
 he did n't forecast phillips 's results 
 but securities analysts say phillips will be among the companies <unk> by weak chemical prices and will probably post a drop in third-quarter earnings 
 so too many analysts predict will exxon corp. chevron corp. and amoco corp 
 typical is what happened to the price of <unk> a major commodity chemical produced in vast amounts by many oil companies 
 it has plunged N N since july to around N cents a pound 
 a year ago <unk> sold for N cents <unk> at about N cents last december 
 a big reason for the chemical price retreat is <unk> 
 beginning in <unk> prices began accelerating as a growing u.s. economy and the weak dollar spurred demand 
 companies added capacity <unk> 
 now greatly increased supplies are on the market while the dollar is stronger and domestic economic growth is slower 
 third-quarter profits from gasoline were weaker 
 refining margins were so good in the third quarter of last year and generally not very good this year said william <unk> a securities analyst at first boston corp 
 oil company refineries ran flat out to prepare for a robust holiday driving season in july and august that did n't <unk> 
 the excess supply pushed gasoline prices down in that period 
 in addition crude oil prices were up some from a year earlier further <unk> profitability 
 refiners say margins picked up in september and many industry officials believe gasoline profits will rebound this quarter though still not to the level of N 's fourth quarter 
 during the N 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 
 prices averaging roughly $ N a barrel higher in the third quarter than a year earlier have stayed well above most companies ' expectations 
 demand has been much stronger than anticipated and it typically <unk> in the fourth quarter 
 we could see higher oil prices this year said <unk> <unk> an analyst at painewebber inc 
 that will translate into sharply higher production profits particularly compared with last year when oil prices steadily fell to below $ N a barrel in the fourth quarter 
 while oil prices have been better than expected natural gas prices have been worse 
 in the third quarter they averaged about N N less than they were in N 
 the main reason remains weather 
 last summer was notable for a heat wave and drought that caused utilities to <unk> more natural gas to feed increased electrical demand from air <unk> use 
 this summer on the other hand had <unk> weather than usual 
 we 've been very disappointed in the performance of natural gas prices said mr. cox phillips 's president 
 the lagging gas price is not going to assist fourth quarter performance as many had expected 
 going into the fourth quarter natural gas prices are anywhere from N N to N N lower than a year earlier 
 for instance natural gas currently produced along the gulf coast is selling on the spot market for around $ N a thousand cubic feet down N N from $ N a thousand cubic feet a year ago 
 the bush administration trying to blunt growing demands from western europe for a <unk> of controls on exports to the soviet bloc is questioning whether italy 's <unk> c. olivetti & co. supplied <unk> valuable technology to the soviets 
 most of the western european members of <unk> committee on <unk> export controls the <unk> forum through which the u.s. and its allies <unk> their <unk> policies are expected to argue for more liberal export rules at a meeting to be held in paris oct. N and N 
 they plan to press specifically for a <unk> of rules governing exports of machine tools computers and other high-technology products 
 but the bush administration says it wants to see evidence that all cocom members are <unk> fully with existing <unk> procedures before it will support further <unk> 
 to make its point it is challenging the italian government to explain reports that olivetti may have supplied the soviet union with sophisticated computer-driven devices that could be used to build parts for combat aircraft 
 the london sunday times which first reported the u.s. concerns cited a u.s. intelligence report as the source of the allegations that olivetti exported $ N million in <unk> <unk> flexible manufacturing systems to the soviet aviation industry 
 olivetti reportedly began shipping these tools in N 
 a state department spokesman acknowledged that the u.s. is discussing the allegations with the italian government and cocom but declined to confirm any details 
 italian president <unk> <unk> promised a quick investigation into whether olivetti broke cocom rules 
 president bush called his attention to the matter during the italian leader 's visit here last week 
 olivetti has denied that it violated cocom rules <unk> that the reported shipments were properly licensed by the italian authorities 
 although the <unk> of these sales is still an open question the disclosure could n't be better <unk> to support the position of <unk> <unk> 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 <unk> signals about its <unk> policies reflecting <unk> divisions among several competing agencies 
 last summer mr. bush moved the administration in the direction of gradual <unk> when he told a north atlantic treaty organization meeting that he would allow some exceptions to the cocom <unk> of strategic goods 
 but more recently the pentagon and the commerce department openly <unk> over the extent to which cocom should <unk> exports of personal computers to the bloc 
 however these agencies generally agree that the west should be cautious about any further <unk> 
 there 's no evidence that the soviet program to illegally acquire western technology has diminished said a state department spokesman 
 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 <unk> & shanghai banking corp 
 under the latest offer hk$ N million us$ N million of three-year warrants will be issued in london each giving buyers the right to buy one hong kong telecommunications share at a price to be determined friday 
 the N million warrants will be priced at hk$ N each and are expected to carry a premium to the share price of about N N 
 in trading on the stock exchange of hong kong the shares closed wednesday at hk$ N each 
 at this price the shares would have to rise above hk$ N for subscribers to salomon 's issue to profitably convert their warrants 
 while hong kong companies have in the past issued warrants on their own shares salomon 's warrants are the first here to be issued by a third party 
 salomon will cover the warrants by buying sufficient shares or options to purchase shares to cover its entire position 
 bankers said warrants for hong kong stocks are attractive because they give foreign investors wary of volatility in the colony 's stock market an opportunity to buy shares without taking too great a risk 
 the hong kong telecommunications warrants should be attractive to buyers in europe the bankers added because the group is one of a handful of blue-chip stocks on the hong kong market that has international appeal 
 financial corp. of santa barbara filed suit against former stock <unk> ivan f. boesky and drexel burnham lambert inc. charging they <unk> the thrift by <unk> their relationship when <unk> it to buy $ N million in high-yield high-risk junk bonds 
 in a suit filed in federal court thursday the s&l alleged that a disproportionate number of the bonds it purchased in N declined in value 
 financial corp. purchased the bonds the suit alleged after mr. boesky and drexel negotiated an agreement for <unk> hotels to purchase a N N stake in the thrift for about $ N million 
 <unk> hotels was controlled by mr. boesky who currently is serving a prison term for securities violations 
 officials at drexel said they had n't seen the suit and thus could n't comment 
 in addition to $ N million <unk> damages the suit seeks $ N million in punitive damages 
 also named in the suit is ivan f. boesky corp. and <unk> corp. the successor company to <unk> hotels 
 <unk> officials could n't be located 
 financial corp. said it agreed to buy the bonds after a representative of ivan f. boesky corp. visited it in november N and said financial corp. could improve its financial condition by purchasing the bonds 
 shortly before the visit mr. boesky and drexel <unk> had met with financial corp. officials and had signed a letter of intent to acquire the N N stake in the company 
 however the agreement was canceled in june N 
 financial corp. purchased the bonds in at least N different transactions in N and since then has realized $ N million in losses on them the company said 
 ideal basic industries inc. said its directors reached an agreement in principle calling for <unk> north america inc. to combine its north american cement holdings with ideal in a transaction that will leave ideal 's minority shareholders with N N of the combined company 
 <unk> the north american holding company of swiss concern <unk> financiere <unk> ltd. previously proposed combining its N N stake in st. lawrence cement inc. and its N N stake in <unk> cement co. with its N N stake in ideal 
 but <unk> 's first offer would have given ideal 's other shareholders about N N of the combined company 
 ideal 's directors rejected that offer although they said they endorsed the merger proposal 
 under the agreement <unk> will own N N of the combined company 
 ideal 's current operations will represent about N N of the combined company 
 the transaction is subject to a definitive agreement and approval by ideal shareholders 
 ideal said it expects to complete the transaction early next year 
 while corn and soybean prices have slumped well below their <unk> <unk> of N wheat prices remain <unk> high 
 and they 're likely to stay that way for months to come analysts say 
 for one thing even with many farmers <unk> more winter wheat this year than last tight wheat supplies are likely to support prices well into N the analysts say 
 and if rain does n't fall soon across many of the great plains ' <unk> areas yields in the crop now being planted could be reduced further <unk> supplies 
 also supporting prices are expectations that the soviet union will place substantial buying orders over the next few months 
 by next may N stocks of u.s. wheat to be carried over into the next season before the winter wheat now being planted is <unk> are projected to drop to N million <unk> 
 that would be the lowest level since the early 1970s 
 stocks were N million <unk> on may N of this year 
 in response to <unk> domestic supplies agriculture secretary <unk> <unk> last month said the u.s. government would slightly increase the number of acres farmers can plant in wheat for next year and still qualify for federal support payments 
 the government estimates that the new plan will boost production next year by about N million <unk> 
 it now estimates production for next year at just under N billion <unk> compared with this year 's estimated N billion and a <unk> N billion in N 
 but the full effect on prices of the winter wheat now being planted wo n't be felt until the second half of next year 
 until then limited stocks are likely to keep prices near the $ <unk> level analysts say 
 on the chicago board of trade friday wheat for december delivery settled at $ N a bushel unchanged 
 in theory at least tight supplies next spring could leave the wheat futures market susceptible to a <unk> squeeze said daniel <unk> a futures analyst with <unk> co. in chicago 
 such a situation can <unk> havoc as was shown by the emergency that developed in soybean futures trading this summer on the chicago board of trade 
 in july the <unk> ordered <unk> <unk> s.p a. to liquidate futures positions equal to about N million <unk> of soybeans 
 the exchange said it feared that some members would n't be able to find enough soybeans to deliver and would have to default on their <unk> obligation to the italian conglomerate which had refused requests to reduce its holdings 
 <unk> has denied it was trying to manipulate the soybean futures market 
 <unk> hot dry weather across large portions of the great plains and in <unk> areas in washington and oregon is threatening to reduce the yield from this season 's winter wheat crop said <unk> leslie a futures analyst and head of leslie analytical in chicago 
 for example in the oklahoma <unk> N N or more of the <unk> is short of <unk> 
 that figure <unk> to about N N in <unk> portions of kansas he said 
 the soviet union has n't given any clear indication of its wheat purchase plans but many analysts expect moscow to place sizable orders for u.s. wheat in the next few months further supporting prices 
 wheat prices will increasingly <unk> off of soviet demand in coming weeks predicted richard <unk> vice president research for <unk> inc. in chicago 
 looking ahead to other commodity markets this week 
 orange <unk> traders will be watching to see how long and how far the price decline that began friday will go 
 late thursday after the close of trading the market received what would normally have been a bullish u.s. department of agriculture estimate of the N florida orange crop 
 it was near the low range of estimates at N million <unk> boxes compared with N million boxes last season 
 however as expected brazil waited for the crop estimate to come out and then cut the export price of its <unk> concentrate to about $ N a pound from around $ N 
 friday 's <unk> selling of futures contracts erased whatever supportive effect the u.s. report might have had and sent the november orange <unk> contract down as much as N cents a pound at one time 
 it settled with a loss of N cents at $ N a pound 
 brazilian <unk> after a delay caused by drought at the start of its crop season is beginning to arrive in the u.s. in large quantities 
 brazil wants to stimulate demand for its product which is going to be in <unk> supply 
 the price cut one analyst said appeared to be aimed even more at europe where consumption of brazilian <unk> has fallen 
 it 's a <unk> product and the strong dollar has made it more expensive in europe the analyst said 
 new york futures prices have dropped significantly from more than $ N a pound at midyear 
 barring a cold <unk> or other crop problems in the growing areas downward pressure on prices is likely to continue into january when <unk> and processing of <unk> in florida reach their peak the analyst said 
 energy 
 although some analysts look for profit-taking in the wake of friday 's leap in crude oil prices last week 's rally is generally expected to continue this week 
 i would continue to look for a stable crude market at least in futures trading said william <unk> an energy futures broker with <unk> & co 
 friday capped a week of steadily rising crude oil prices in both futures and spot markets 
 on the new york mercantile exchange west texas intermediate crude for november delivery finished at $ N a barrel up N cents on the day 
 on european markets meanwhile spot prices of north sea <unk> were up N to N cents a barrel 
 this market still wants to go higher said <unk> <unk> a first vice president at shearson lehman hutton inc 
 he predicted that the november contract will reach $ N a barrel or more on the new york mercantile exchange 
 there has been little news to account for such <unk> in the oil markets 
 analysts generally cite a lack of bearish developments as well as rumors of a possible tightening of supplies of some fuels and <unk> 
 there also are <unk> reports that the soviet union is having difficulties with its oil exports and that <unk> has about reached its production limit and ca n't produce as much as it could sell 
 many traders <unk> a tightening of near-term supplies particularly of high-quality <unk> such as those produced in the north sea and in <unk> 
 if a hostile <unk> emerges for saatchi & saatchi co. <unk> charles and maurice saatchi will lead a management buy-out attempt an official close to the company said 
 financing for any takeover attempt may be <unk> in the wake of friday 's stock-market sell-off in new york and turmoil in the junk-bond market 
 but the beleaguered british advertising and consulting giant which last week named a new chief executive officer to replace maurice saatchi has been the subject of intense takeover speculation for weeks 
 last week saatchi 's largest shareholder <unk> asset management said it had been approached by one or more third parties interested in a possible restructuring 
 and carl spielvogel chief executive officer of saatchi 's big backer spielvogel bates advertising unit said he had offered to lead a management buy-out of the company but was rebuffed by charles saatchi 
 mr. spielvogel said he would n't launch a hostile bid 
 the executive close to saatchi & saatchi said that if a bidder came up with a <unk> high offer a crazy offer which saatchi knew it could n't beat it would have no choice but to recommend it to shareholders 
 but otherwise it would undoubtedly come back with an offer by management 
 the executive said any buy-out would be led by the current board whose chairman is maurice saatchi and whose strategic <unk> force is believed to be charles saatchi 
 mr. spielvogel is n't part of the board nor are any of the other heads of saatchi 's big <unk> ad agencies 
 the executive did n't name any price but securities analysts have said saatchi would fetch upward of $ N billion 
 the executive denied speculation that saatchi was bringing in the new chief executive officer only to clean up the company financially so that the brothers could lead a buy-back 
 that speculation <unk> friday as industry executives <unk> the appointment of the new chief executive robert <unk> who joins saatchi and becomes a member of its board on jan. N 
 mr. <unk> formerly chief executive of the pharmaceutical research firm <unk> international inc. has a reputation as a <unk> financial manager and will be charged largely with <unk> saatchi 's poor financial state 
 asked about the speculation that mr. <unk> has been hired to <unk> the way for a buy-out by the brothers the executive replied that is n't the reason dreyfus has been brought in 
 he was brought in to turn around the company 
 separately several saatchi agency clients said they believe the company 's management <unk> will have little affect on them 
 it has n't had any impact on us nor do we expect it to said a spokeswoman for miller brewing co. a major client of backer spielvogel 
 john <unk> director of advertising at painewebber inc. a saatchi & saatchi advertising client said we have no problem with the announcement because we do n't know what change it 's going to bring about 
 we are n't going to change agencies because of a change in london 
 executives at backer spielvogel client <unk> inc. as well as at saatchi client <unk> lighting co. also said they saw no effect 
 executives at prudential-bache securities inc. a backer spielvogel client that is reviewing its account declined comment 
 mr. spielvogel had said that prudential-bache was prepared to finance either a management buy-out and restructuring or a buy-out of backer spielvogel alone led by him 
 ad notes 
 new account 
 california 's <unk> federal bank awarded its $ N million to $ N million account to the los angeles office of <unk> group 's <unk> agency 
 the account was previously handled by davis ball & <unk> advertising inc. a los angeles agency 
 account review 
 royal crown <unk> co. has ended its relationship with the boston office of hill <unk> <unk> <unk> 
 the account had billed about $ N million in N according to leading national advertisers 
 <unk> plea 
 as expected 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 
 the government has charged that they <unk> <unk> officials to win the jamaica tourist board ad account in N 
 a spokesman for the u.s. attorney 's office said <unk> proceedings are just beginning for the other two defendants in the case eric anthony <unk> former <unk> tourism minister and <unk> businessman arnold <unk> jr 
 korean agency 
 the <unk> group and bozell inc. agreed to establish a joint venture advertising agency in south korea 
 bozell <unk> corp. as the new agency will be called will be based in seoul and is N N owned by <unk> and N N owned by bozell 
 <unk> 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 <unk> products <unk> corp. said earnings and revenue jumped in its second quarter ended sept. N 
 the maker of <unk> products said net income rose to $ N million or N cents a share from year-earlier net of $ N million or five cents a share 
 revenue soared to $ N million from $ N million 
 <unk> said its results were boosted by $ N million in payments received from a supplier for a certain line of products that <unk> is n't going to sell anymore 
 <unk> said effects from <unk> the line may have a positive effect on future earnings and revenue 
 a spokeswoman would n't elaborate but the company said the discontinued product has never been a major source of revenue or profit 
 <unk> <unk> benefited from robust sales of products that store data for high-end personal computers and computer workstations 
 in the fiscal first half net was $ N million or N cents a share up from the year-earlier $ N million or N cents a share 
 revenue rose to $ N million from $ N million 
 robert g. <unk> N years old was elected a director of this provider of advanced technology systems and services increasing the board to eight members 
 he retired as senior vice president finance and administration and chief financial officer of the company oct. N 
 southmark corp. said that it filed part of its <unk> report with the securities and exchange commission but that the filing does n't include its <unk> financial statements and related information 
 the real estate and thrift concern operating under bankruptcy-law proceedings said it told the sec it could n't provide financial statements by the end of its first extension without <unk> burden or expense 
 the company asked for a <unk> extension sept. N when the financial reports were due 
 southmark said it plans to <unk> its <unk> to provide financial results as soon as its audit is completed 
 alan <unk> N years old was named chairman of this <unk> of prescription claims succeeding thomas w. field jr. N who resigned last month 
 mr. field also had been chairman of <unk> corp. resigning that post after a dispute with the board over corporate strategy 
 mr. <unk> is executive vice president and chief financial officer of <unk> and will continue in those roles 
 pcs also named <unk> r. <unk> N executive vice president at <unk> as a director filling the seat vacated by mr. field 
 messrs. <unk> and <unk> are directors of <unk> which has an N N stake in pcs 
 <unk> products inc. said a u.s. district court in boston ruled that a challenge by <unk> to the <unk> of a u.s. patent held by <unk> inc. was without merit 
 <unk> based in <unk> sweden had charged in a lawsuit against <unk> that <unk> 's <unk> product line <unk> on the <unk> patent 
 the patent is related to <unk> acid a <unk> extract used in eye surgery 
 in its lawsuit <unk> is seeking unspecified damages and a preliminary injunction to block <unk> from selling the <unk> products 
 a <unk> spokesman said the products contribute about a third of <unk> 's sales and N N to N N of its earnings 
 in the year ended aug. N N <unk> earned $ N million or N cents a share on sales of $ N million 
 <unk> said the court 's ruling was issued as part of a <unk> trial in the <unk> proceedings and concerns only one of its defenses in the case 
 it said it is considering all of its options in light of the decision including a possible appeal 
 the <unk> company added that it plans to <unk> its other defenses against <unk> 's lawsuit including the claim that it has n't infringed on <unk> 's patent 
 <unk> said that the court scheduled a conference for next monday to set a date for proceedings on <unk> 's motion for a preliminary injunction 
 newspaper publishers are reporting mixed third-quarter results aided by favorable newsprint prices and hampered by flat or declining advertising <unk> especially in the northeast 
 adding to <unk> in the industry seasonal retail ad spending patterns in newspapers have been upset by shifts in ownership and general <unk> within the retail industry 
 in new york the <unk> teller and b. altman & co. department stores have filed for protection from creditors under chapter N of the federal bankruptcy code while the r.h. macy & co. bloomingdale 's and saks fifth avenue department-store chains are for sale 
 many papers throughout the country are also faced with a slowdown in <unk> spending a booming category for newspapers in recent years 
 until recently industry analysts believed <unk> in retail ad spending had <unk> out and would in fact increase in this year 's third and fourth quarters 
 all bets are off analysts say because of the shifting ownership of the retail chains 
 improved paper prices will help offset weakness in <unk> but the retailers ' problems have affected the amount of ad <unk> they usually run said edward j. <unk> industry analyst for salomon brothers inc 
 retailers are just in disarray 
 for instance <unk> co. posted an N N gain in net income as total ad pages dropped at usa today but advertising revenue rose because of a higher circulation rate base and increased rates 
 <unk> 's N daily and N <unk> newspapers reported a N N increase in advertising and circulation revenue 
 total advertising <unk> was modestly lower as <unk> volume increased while there was softer demand for retail and national ad <unk> said john <unk> <unk> 's chief executive officer 
 at usa today ad pages totaled N for the quarter down N N from the N period which was helped by increased ad spending from the summer olympics 
 while usa today 's total paid ad pages for the year to date totaled N a decrease of N N from last year the paper 's ad revenue increased N N in the quarter and N N in the nine months 
 in the nine months <unk> 's net rose N N to $ N million or $ N a share from $ N million or $ N a share 
 revenue gained N N to $ N billion from $ N billion 
 at dow jones & co. third-quarter net income fell N N from the year-earlier period 
 net fell to $ N million or N cents a share from $ N million or N cents a share 
 the year-earlier period included a one-time gain of $ N million or four cents a share 
 revenue gained N N to $ N million from $ N million 
 the drop in profit reflected in part continued softness in financial advertising at the wall street journal and barron 's magazine 
 ad <unk> at the journal fell N N in the third quarter 
 affiliated publications inc. reversed a year-earlier third quarter net loss 
 the publisher of the boston globe reported net of $ N million or N cents a share compared with a loss of $ N million or N cents a share for the third quarter in N 
 william o. taylor the parent 's chairman and chief executive officer said earnings continued to be hurt by softness in ad volume at the boston newspaper 
 third-quarter profit estimates for several companies are being strongly affected by the price of newsprint which in the last two years has had several price increases 
 after a supply crunch caused prices to rise N N since N to $ N a metric ton analysts are encouraged because they do n't expect a price increase for the rest of this year 
 companies with daily newspapers in the northeast will need the stable newsprint prices to ease damage from weak ad <unk> 
 mr. <unk> at salomon brothers said he estimates that times mirror co. 's earnings were down for the third quarter because of soft advertising levels at its long island <unk> and hartford <unk> newspapers 
 trouble on the east coast was likely offset by improved ad <unk> at the los angeles times which this week also unveiled a <unk> 
 new york times co. is expected to report lower earnings for the third quarter because of continued weak advertising levels at its flagship new york times and deep discounting of newsprint at its affiliate forest products group 
 times co. 's regional daily newspapers are holding up well but there is little sign that things will improve in the new york market said alan <unk> an analyst with shearson lehman hutton 
 washington post co. is expected to report improved earnings largely because of increased cable revenue and publishing revenue helped by an improved retail market in the washington area 
 according to analysts profits were also helped by successful cost-cutting measures at newsweek 
 the <unk> has faced heightened competition from rival time magazine and a relatively flat magazine advertising market 
 knight-ridder inc. is faced with continued uncertainty over the pending joint operating agreement between its detroit free press and <unk> 's detroit news and has told analysts that earnings were down in the third quarter 
 however analysts point to positive advertising spending at several of its major daily newspapers such as the miami herald and san jose mercury news 
 the miami market is coming back strong after a tough couple of years when knight-ridder was starting up a hispanic edition and circulation was falling said bruce <unk> an analyst for <unk> national bank 
 general motors corp. in a series of moves that angered union officials in the u.s. and canada has signaled that as many as five north american assembly plants may not survive the mid-1990s as the corporation struggles to cut its excess <unk> capacity 
 in announcements to workers late last week gm effectively signed death <unk> for two <unk> van assembly plants and cast serious doubt on the futures of three u.s. car factories 
 gm is under intense pressure to close factories that became unprofitable as the giant auto maker 's u.s. market share skidded during the past decade 
 the company currently using about N N of its north american vehicle capacity has vowed it will run at N N of capacity by N 
 just a month ago gm announced it would make an aging assembly plant in <unk> ga. the eighth u.s. assembly facility to close since N 
 now gm appears to be stepping up the pace of its factory consolidation to get in shape for the 1990s 
 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 than gm can match 
 another is that united auto workers union officials have signaled they want tighter <unk> provisions in the new big three national contract that will be negotiated next year 
 gm officials want to get their strategy to reduce capacity and the work force in place before those talks begin 
 the problem however is that gm 's moves are coming at a time when <unk> leaders are trying to <unk> <unk> who charge the union is too passive in the face of gm layoffs 
 against that backdrop <unk> vice president stephen p. <unk> who recently became head of the union 's gm department issued a statement friday <unk> gm 's <unk> <unk> toward union members 
 the auto maker 's decision to let word of the latest <unk> and product <unk> <unk> out in separate <unk> to the affected plants showed disarray and an inability or <unk> to provide consistent information mr. <unk> said 
 gm officials told workers late last week of the following moves production of <unk> vans will be consolidated into a single plant in <unk> mich 
 that means two plants one in <unk> ontario and the other in <unk> ohio probably will be shut down after the end of N 
 the <unk> will idle about N canadian assembly workers and about N workers in ohio 
 robert white canadian auto workers union president used the impending <unk> shutdown to <unk> the <unk> free trade agreement and its champion prime minister brian <unk> 
 but canadian auto workers may benefit from a separate gm move that affects three u.s. car plants and one in quebec 
 workers at plants in van <unk> calif. oklahoma city and <unk> mich. were told their facilities are no longer being considered to build the next generation of the <unk> <unk> and chevrolet <unk> muscle cars 
 gm is studying whether it can build the new <unk> profitably at a plant in st. <unk> quebec company and union officials said 
 that announcement left union officials in van <unk> and oklahoma city uncertain about their futures 
 the van <unk> plant which employs about N workers does n't have a product to build after N 
 jerry <unk> <unk> local president said the facility was asked to draw up plans to continue working as a <unk> plant which could build several different types of products on short notice to satisfy demand 
 at the oklahoma city plant which employs about N workers building the <unk> <unk> <unk> cars steve <unk> <unk> local vice president said the plant has no new product lined up and none of us knows when the <unk> cars will die 
 he said he believes gm has plans to keep building <unk> cars into the mid-1990s 
 at <unk> however the <unk> decision appears to <unk> <unk> hopes that gm would reopen the <unk> assembly plant that last built the <unk> <unk> <unk> <unk> model 
 the <unk> plant was viewed as a model of <unk> cooperation at gm before slow sales of the <unk> forced the company to close the factory last year 
 union officials have taken a beating politically as a result 
 dissident <unk> members have used the <unk> plant as a symbol of labor-management cooperation 's failure 
 <unk> merieux s.a. of france said the canadian government raised an obstacle to its proposed acquisition of connaught <unk> inc. for N million canadian dollars us$ N million 
 merieux said the government 's minister of industry science and technology told it that he was n't convinced that the purchase is likely to be of net benefit to canada 
 canadian investment rules require that big foreign takeovers meet that standard 
 the french company said the government gave it N days in which to submit information to further support its takeover plan 
 both merieux and connaught are biotechnology research and vaccine manufacturing concerns 
 the government 's action was unusual 
 alan <unk> executive vice president of investment canada which oversees foreign takeovers said it marked the first time in its four-year history that the agency has made an adverse <unk> decision about the acquisition of a publicly traded company 
 he said it has reached the same conclusions about some attempts to buy closely held concerns but eventually allowed those acquisitions to proceed 
 this is n't a change in government policy this provision has been used before said <unk> redmond press secretary for <unk> <unk> canada 's minister of industry science and technology 
 mr. <unk> issued the ruling based on a recommendation by investment canada 
 spokesmen for merieux and connaught said they had n't been informed of specific areas of concern by either the government or investment canada but added they hope to have more information early this week 
 investment canada declined to comment on the reasons for the government decision 
 <unk> mehta a partner with mehta & <unk> a new york-based pharmaceutical industry research firm said the government 's ruling was n't unexpected 
 this has become a very <unk> deal concerning canada 's only large <unk> <unk> or pharmaceutical company mr. mehta said 
 mr. mehta said the move that could allow the transaction to go ahead as planned could be an <unk> 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 
 the university is considering a settlement proposal made by connaught 
 while neither side will disclose its <unk> mr. mehta expects it to contain more specific guarantees on research and development spending levels in canada than merieux offered to investment canada 
 some analysts such as murray <unk> of toronto-based <unk> <unk> inc. believe the government ruling leaves the door open for other bidders such as switzerland 's ciba-geigy and chiron corp. of <unk> calif 
 officials for the two concerns which are bidding c$ N a share for connaught could n't be reached for comment 
 french state-owned rhone-poulenc s.a. holds N N of merieux 
 <unk> international inc. said it canceled plans for a <unk> swap but may resume payment of dividends on the stock and added that it expects to publicly offer about N million common shares 
 the company said it planned to offer an <unk> number of common shares in exchange for the N shares of its preferred stock outstanding 
 the exchange ratio was never established 
 <unk> said market conditions led to the cancellation of the planned exchange 
 the <unk> concern said however that in january N it may resume payments of dividends on the preferred stock 
 <unk> suspended its <unk> payment in october N and said it has n't any plans to catch up on dividends in <unk> about $ N million but will do so some time in the future 
 additionally the company said it filed with the securities and exchange commission for the proposed offering of N million shares of common stock expected to be offered in november 
 the company said salomon brothers inc. and howard weil <unk> <unk> inc. underwriters for the offering were granted an option to buy as much as an additional N million shares to cover <unk> 
 proceeds will be used to eliminate and restructure bank debt 
 <unk> currently has approximately N million common shares outstanding 
 earnings for most of the nation 's major pharmaceutical makers are believed to have moved ahead <unk> in the third quarter as companies with newer <unk> prescription drugs fared especially well 
 for the third consecutive quarter however most of the companies ' revenues were battered by adverse foreign-currency <unk> as a result of the strong dollar abroad 
 analysts said that merck & co. eli lilly & co. warner-lambert co. and the squibb corp. unit of bristol-myers squibb co. all benefited from strong sales of relatively new <unk> <unk> that provide wide profit margins 
 less robust earnings at pfizer inc. and upjohn co. were attributed to those companies ' older products many of which face <unk> competition from generic drugs and other <unk> 
 joseph <unk> an analyst with bear stearns & co. said that over the past few years most drug makers have shed their <unk> businesses and instituted other cost savings such as consolidating manufacturing plants and administrative staffs 
 as a result major new products are having significant impact even on a company with very large revenues mr. <unk> said 
 analysts said profit for the dozen or so big drug makers as a group is estimated to have climbed between N N and N N 
 while that 's not spectacular neil <unk> an analyst with prudential <unk> said that the rate of growth will look especially good as compared to other companies if the economy turns downward 
 mr. <unk> estimated that merck 's profit for the quarter rose by about N N propelled by sales of its <unk> of fast-growing prescription drugs including its <unk> drug <unk> a high blood pressure medicine <unk> <unk> an <unk> and <unk> an <unk> medication 
 profit climbed even though merck 's sales were reduced by one to three percentage points as a result of the strong dollar mr. <unk> said 
 in the third quarter of N merck earned $ N million or N cents a share 
 in <unk> n.j. a merck spokesman said the company does n't make earnings projections 
 mr. <unk> said he estimated that lilly 's earnings for the quarter jumped about N N largely because of the performance of its new <unk> <unk> 
 the drug introduced last year is expected to generate sales of about $ N million this year 
 it 's turning out to be a real blockbuster mr. <unk> said 
 in last year 's third quarter lilly earned $ N million or $ N a share 
 in indianapolis lilly declined comment 
 several analysts said they expected warner-lambert 's profit also to increase by more than N N from $ N million or $ N a share it reported in the like period last year 
 the company is praised by analysts for sharply lowering its costs in recent years and shedding numerous companies with low profit margins 
 the company 's lean operation analysts said allowed <unk> sales from its cholesterol drug <unk> to power earnings growth 
 <unk> sales are expected to be about $ N million this year up from $ N million in N 
 in morris plains n.j. a spokesman for the company said the analysts ' projections are in the <unk> 
 squibb 's profit estimated by analysts to be about N N above the $ N million or $ N a share it earned in the third quarter of N was the result of especially strong sales of its <unk> drug for treating high blood pressure and other heart disease 
 the company was officially merged with bristol-myers co. earlier this month 
 bristol-myers declined to comment 
 mr. <unk> of bear stearns said that schering-plough corp. 's expected profit rise of about N N to N N and <unk> 's expected profit increase of about N N are largely because those companies are really managed well 
 <unk> earned $ N million or N cents a share while bristol-myers earned $ N million or N cents a share in the like period a year earlier 
 in madison n.j. a spokesman for schering-plough said the company has no problems with the average estimate by a analysts that third-quarter earnings per share rose by about N N to $ N 
 the company expects to achieve the N N increase in full-year earnings per share as it projected in the spring the spokesman said 
 meanwhile analysts said pfizer 's recent string of lackluster quarterly performances continued as earnings in the quarter were expected to decline by about N N 
 sales of pfizer 's important drugs <unk> for treating <unk> and <unk> a heart medicine have <unk> because of increased competition 
 the strong dollar hurt pfizer a lot too mr. <unk> said 
 in the third quarter last year pfizer earned $ N million or $ N a share 
 in new york the company declined comment 
 analysts said they expected upjohn 's profit to be flat or rise by only about N N to N N as compared with $ N million or N cents a share it earned a year ago 
 upjohn 's <unk> drugs are <unk> a <unk> and <unk> a <unk> 
 sales of both drugs have been hurt by new state laws restricting the <unk> of certain <unk> <unk> and adverse publicity about the excessive use of the drugs 
 also the company 's <unk> drug <unk> is selling well at about $ N million for the year but the company 's profit from the drug has been reduced by upjohn 's expensive print and television campaigns for advertising analysts said 
 in <unk> mich. upjohn declined comment 
 amid a crowd of <unk> stocks <unk> technology inc. 's stock fell particularly hard friday dropping N N because its problems were compounded by disclosure of an unexpected loss for its fiscal first quarter 
 the <unk> software company said it expects a $ N million net loss for the fiscal first quarter ended sept. N 
 it said analysts had been expecting a small profit for the period 
 revenue is expected to be up modestly from the $ N million reported a year ago 
 <unk> technology reported net income of $ N million or N cents a share in the year-earlier period 
 while our international operations showed strong growth our domestic business was substantially below expectations said paul <unk> president and chief executive officer 
 a spokesman said the company 's first quarter is historically soft and computer companies in general are experiencing slower sales 
 mr. <unk> said he accepted the resignation of thomas wilson vice president of corporate sales and that his marketing responsibilities have been <unk> 
 the company said mr. wilson 's resignation was n't related to the sales <unk> 
 <unk> technology went public in may N at $ N a share 
 it fell $ N a share friday to $ N a new low in over-the-counter trading 
 its high for the past year was $ N a share 
 in the previous quarter the company earned $ N million or N cents a share on sales of $ N million 
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 in a lovely <unk> <unk> sleeping arrangements <unk> N pages $ N she <unk> an exotic <unk> <unk> mainly by jewish <unk> and the <unk> catholic real <unk> like her <unk> friend the <unk> <unk> age five 
 ms. <unk> a novelist and playwright has a vivid and dramatically <unk> sense of recall 
 she <unk> her bronx of the <unk> a place where the <unk> of <unk> are only relieved by steep <unk> into <unk> into the <unk> bronx a world <unk> with sex and death and <unk> 
 in the <unk> bronx jewish <unk> people lived in <unk> <unk> buildings <unk> with names like <unk> towers after owners <unk> and morris <unk> whose <unk> and <unk> were <unk> with <unk> of ancient <unk> and <unk> <unk> of <unk> 
 for ms. <unk> the architectural <unk> matched the <unk> she felt living in the <unk> towers as a little girl <unk> ordinary <unk> <unk> <unk> all <unk> to <unk> <unk> 
 <unk> and funny but never mean she 's a <unk> a bit like <unk> <unk> if he 'd been jewish and female and less <unk> 
 little <unk> as ms. <unk> calls herself in the book really was n't ordinary 
 she was raised for the first eight years by her mother <unk> whom she <unk> as a <unk> <unk> who <unk> history to explain why <unk> 's father did n't live with them 
 <unk> <unk> this man who may or may not have known about his child as a war hero for <unk> 's benefit 
 <unk> died young and <unk> has remembered her as a romantic figure who did n't interfere much with her child 's education on the streets 
 the games bronx children played holding kids down and <unk> them for example seem <unk> by today 's crack standards but ms. <unk> makes it all sound like a great <unk> 
 without official knowledge of sex or death we <unk> with both she writes 
 she <unk> families by their sleeping arrangements 
 her friend susan whose parents kept <unk> her she was unwanted <unk> on a narrow bed <unk> into her parents ' <unk> as though she were a temporary <unk> 
 her friend <unk> 's father was a professional thief they did n't seem to have any <unk> at all 
 maybe <unk> became so <unk> with where people <unk> and how because her own arrangements kept shifting 
 when <unk> died her <unk> moved in and let her make the sleeping and other household arrangements 
 they painted the apartment orange <unk> and white according to her instructions 
 with <unk> detail she recalls her uncle <unk> an orthodox <unk> and song <unk> who <unk> river with <unk> in a love song and uncle <unk> a <unk> <unk> investigator who looked like lincoln and carried a change of clothing in a manila <unk> like an <unk> president on a <unk> mission 
 they came by their <unk> <unk> 
 <unk> 's <unk> no <unk> baker <unk> the heads of <unk> <unk> from the family <unk> and <unk> around her <unk> <unk> philosophy for women 
 the book loses some momentum toward the end when <unk> becomes more <unk> with dating boys and less with her <unk> weird family 
 for the most part though there 's much pleasure in her <unk> <unk> probe into the <unk> of the <unk> bronx 
 the bronx also figures in bruce jay <unk> 's latest novel which <unk> back to the new york of the <unk> 
 but both the past and present <unk> of the current climate atlantic monthly press N pages $ N feel <unk> and <unk> 
 for his sixth novel mr. <unk> tried to <unk> the <unk> of his N work about harry towns 
 harry is now a <unk> writer whose continuing <unk> with drugs and marginal types in hollywood and new york seems <unk> <unk> 
 harry <unk> <unk> the old days of the early <unk> when people like his friend <unk> would take a <unk> on a date to analyze what <unk> was doing wrong 
 an l.a. solution explains mr. <unk> 
 line by line mr. <unk> 's <unk> <unk> can be amusing especially when he 's <unk> on the hollywood social scheme the way people size each other up immediately <unk> the desperate ones who merely almost made it 
 harry has avoided all that by living in a long island suburb with his wife who 's so <unk> to soap <unk> and mystery novels she barely seems to notice when her husband disappears for <unk> <unk> into manhattan 
 but it does n't take too many lines to figure harry out 
 he 's a <unk> 
 gulf resources & chemical corp. said it agreed to pay $ N million as part of an accord with the environmental protection agency regarding an environmental cleanup of a <unk> <unk> the company formerly operated in idaho 
 in N the epa notified gulf resources which was a <unk> of the <unk> that it was potentially liable for sharing cleanup costs at the site under the federal superfund program 
 the <unk> area is <unk> with lead <unk> and other metals 
 gulf resources earlier this year proposed a reorganization plan that would make it a unit of a <unk> concern potentially <unk> it from liability for the <unk> 's cleanup costs 
 the company said that as part of its agreement with the epa it made certain voluntary <unk> with respect to <unk> transactions entered into after the reorganization 
 the company which issued a statement on the agreement late friday said that $ N million of the payment was previously provided for in its financial statements and that $ N will be recognized in its N third-quarter statement 
 the agreement and consent <unk> are subject to court approval the company said 
 gulf resources added that it will seek to recover equitable contribution from others for both the amount of the settlement and any other liabilities it may incur under the superfund law 
 under the agreement gulf must give the u.s. government N days ' advance written notice before issuing any dividends on common stock 
 the company 's net worth can not fall below $ N million after the dividends are issued 
 the terms of that agreement only become effective the date of gulf 's reorganization which we anticipate will occur sometime in early N said lawrence r. mehl gulf 's general counsel 
 in addition gulf must give the government N days ' advance written notice of any loans exceeding $ N million that are made to the <unk> holding company 
 gulf 's net worth after those transaction must be at least $ N million 
 separately the company said it expects to hold a special meeting for shareholders in early N to vote on its proposed reorganization 
 many of the nation 's <unk> executives <unk> friday 's market plunge as an overdue <unk> for speculators and takeover players 
 assuming that the market does n't head into a <unk> free fall some executives think friday 's action could prove a <unk> of good news as a sign that the leveraged buy-out and takeover frenzy of recent years may be <unk> 
 this is a reaction to <unk> lbo <unk> rather than to any fundamentals said john young chairman of hewlett-packard co. whose shares dropped $ N to $ N 
 if we get rid of a lot of that nonsense it will be a big plus 
 a few of the executives here for the fall meeting of the business council a group that meets to discuss national issues were only too happy to <unk> their criticism 
 people wish the government would do something about leveraged buy-outs do something about takeovers do something about donald trump said rand <unk> chairman of itt corp. whose stock dropped $ N 
 where 's the leadership 
 where 's the guy who can say enough is enough 
 the executives were <unk> <unk> by the plunge even though it <unk> billions of dollars off the value of their companies and millions off their personal fortunes 
 i 'm not going to worry about one day 's decline said kenneth <unk> digital equipment corp. president who was <unk> <unk> through the bright orange and yellow leaves of the <unk> here after his company 's shares plunged $ N to close at $ N 
 i did n't bother calling anybody i did n't even turn on tv 
 there has n't been any fundamental change in the economy added john <unk> whose procter & gamble co. took an $ N slide to close at $ N 
 the fact that this happened two years ago and there was a recovery gives people some comfort that this wo n't be a problem 
 of course established corporate <unk> often tend to <unk> the setbacks of stock speculators and takeover artists 
 indeed one chief executive who was downright <unk> by friday 's events was robert crandall chairman of amr corp. the parent of american airlines and the target of a takeover offer by mr. trump 
 asked whether friday 's action could help him avoid being <unk> by the new york real estate <unk> mr. crandall <unk> broadly and said no comment 
 on friday morning before the market 's sell-off the business leaders issued a report predicting the economy would grow at roughly an inflation-adjusted N N annual rate through next year then accelerate <unk> in N 
 of the N economists who worked on the business council forecast only two projected periods of decline in the nation 's output over the next two years and in both <unk> the declines are too modest to warrant the phrase recession said lewis <unk> chairman of j.p. morgan & co. and vice chairman of the business council 
 the real estate slump that 's pushing down the price of new york office space and housing is also affecting the city 's retail real estate market 
 in manhattan <unk> store sites sit vacant and newly constructed space has been slow to fill 
 retail real estate brokers say tenants are reluctant to sign leases because of uncertainty about the local economy turmoil in their own industries and a belief that <unk> have not yet hit bottom 
 there is an <unk> amount of space available says faith <unk> senior vice president at <unk> associates store leasing inc 
 there are about N stores for rent up from a more typical range of N to N 
 this further <unk> retailers she says 
 they wonder should they sign a lease if prices are still coming down 
 is this the wrong time to open a store 
 who is going to be in the space next door 
 in addition ms. <unk> says tenants usually can negotiate to pay <unk> that are about <unk> lower than <unk> ' initial asking price 
 a handful of hot retail locations such as the <unk> street and madison and fifth avenue areas have been able to sustain what many see as <unk> <unk> 
 and in some neighborhoods <unk> have merely hit a <unk> 
 but on average manhattan retail <unk> have dropped N N to N N in the past six months alone experts say 
 that follows a more <unk> decline in the prior six months after manhattan <unk> had run up rapidly since N 
 the same factors limiting demand for office space have affected retailing 
 as businesses contract or <unk> the number of employees who might use retail services <unk> says edward a. <unk> senior vice president of helmsley <unk> inc 
 he says financial problems <unk> electronics fur and furniture companies key categories in the local retail economy have further <unk> the market 
 hardest hit are what he calls secondary sites that primarily serve neighborhood residents 
 in these locations mr. <unk> says retailers are increasingly cautious about expanding and <unk> have remained steady or in some cases have declined 
 weakness in the restaurant industry which is leaving retail space vacant <unk> the problem for <unk> 
 it is also no comfort to <unk> and small new york retailers when the future of larger department stores which <unk> retail neighborhoods are in doubt 
 hooker corp. parent of <unk> teller and b. altman 's is mired in bankruptcy proceedings and bloomingdale 's is for sale by its owner campeau corp 
 the trend toward lower <unk> may seem surprising given that some communities in new york are <unk> the loss of favorite local businesses to high <unk> 
 but despite the recent softening for many of these retailers there 's still been too big a jump from the rental rates of the late 1970s when their leases were signed 
 certainly the recent drop in prices does n't mean manhattan comes cheap 
 new york retail <unk> still run well above the going rate in other u.s. cities 
 madison and fifth <unk> and east <unk> street can command <unk> of up to $ N a square foot and $ N is not uncommon 
 the thriving <unk> street area offers <unk> of about $ N a square foot as do <unk> locations along lower fifth avenue 
 by contrast <unk> in the best retail locations in boston san francisco and chicago rarely top $ N a square foot 
 and <unk> on beverly hills ' <unk> drive generally do n't exceed about $ N a square foot 
 the new york stock exchange said two securities will begin trading this week 
 precision <unk> corp. <unk> ore. will begin trading with the symbol <unk> 
 it makes investment <unk> and has traded over-the-counter 
 royal bank of scotland group plc an <unk> scotland financial services company will list american depositary shares representing preferred shares with the symbol <unk> 
 it will continue to trade on the international stock exchange london 
 the american stock exchange listed shares of two companies 
 aim telephones inc. a <unk> n.j. telecommunications equipment supply company started trading with the symbol aim 
 it had traded over-the-counter 
 columbia laboratories inc. miami began trading with the symbol <unk> 
 the pharmaceuticals maker had traded over-the-counter 
 the national market system of the nasdaq over-the-counter market listed shares of one company 
 employee benefit plans inc. a minneapolis health-care services company was listed with the symbol <unk> 
 when justice william <unk> marks the start of his <unk> year on the supreme court today the occasion will differ sharply from previous <unk> of his tenure 
 for the first time the <unk> justice finds his influence almost exclusively in dissent rather than as a force in the high court 's majority 
 this role reversal holds true as well for his three liberal and moderate allies justices <unk> marshall harry <unk> and john stevens 
 but are these four players three of them in their <unk> ready to assume a different role after N years <unk> of service on the high court 
 every indication is that the four are prepared to accept this new role and the <unk> that go with it but in different ways 
 justices <unk> and stevens appear <unk> about it justices marshall and <unk> appear fighting mad 
 the four justices are no newcomers to dissent often joining forces in the past decade to <unk> the court 's conservative <unk> 
 but always in years past they have <unk> the trend and have been able to pick up a fifth vote to <unk> out a number of major victories in civil rights and <unk> cases 
 now however as the court 's new <unk> conservative majority continues to <unk> victories for the liberals are rare 
 the change is most dramatic for justice <unk> the last <unk> of the <unk> liberal majority under chief justice <unk> warren 
 in the seven supreme court terms from the fall of N through the spring of N the <unk> of the warren court 's power justice <unk> cast only N <unk> votes in N cases decided by the court 
 last term alone he cast N <unk> votes in N decisions with the contentious <unk> ruling as his only big victory 
 but justice <unk> <unk> his new role strongly defending the importance of <unk> in a N speech 
 each time the court <unk> an issue the justices will be forced by a dissent to reconsider the fundamental questions and to <unk> the result he said 
 moreover in recent months he has said that when he was on the winning side in the 1960s he knew that the tables might turn in the future 
 he has said that he now knows how justice john <unk> felt a reference to the late conservative justice who was the most frequent <unk> from the warren court 's opinions 
 associates of <unk> justice marshall say he was depressed about the court 's direction last spring but is <unk> about his role and determined to speak out against the court 's cutbacks in civil rights 
 we could sweep it under the <unk> and hide it but i 'm not going to do it he said in a speech last month 
 he like justice <unk> considers <unk> highly important for the future a point that has n't escaped legal scholars 
 harvard law school professor laurence tribe says there is a <unk> flavor to current <unk> 
 the <unk> in the warren court he says appeared to be writing for the short-term suggesting that the court 's direction might change soon 
 <unk> and marshall are speaking in their <unk> to a more distant future he says 
 justice <unk> who will turn N next month also seems <unk> about his new role 
 associates say he takes some <unk> more personally than his colleagues especially attempts to curtail the right to abortion first recognized in his N opinion roe vs. wade 
 friends and associates who saw justice <unk> during the summer said he was no more discouraged about the court than in recent years 
 and his outlook improved after successful <unk> surgery in august 
 but his level of frustration showed in a recent <unk> speech to a group of hundreds of lawyers in chicago 
 he concluded his remarks by <unk> <unk> and at some length according to those present the late martin <unk> king 's famous i have a dream speech from the N march on washington 
 justice stevens N is probably the most <unk> of the <unk> about his role in part because he may be the least liberal of the four but also because he enjoys the intellectual challenge of arguing with the majority more than the others 
 if the role these four <unk> are assuming is a familiar one in modern supreme court history it also <unk> in an important way from recent history court watchers say 
 the <unk> of the warren court were often defending a legal <unk> that they inherited says prof. <unk> dick howard of the university of virginia law school but the <unk> today are defending a <unk> that they created 
 the government sold the deposits of four savings-and-loan institutions in its first wave of sales of big sick thrifts but low bids prevented the sale of a fifth 
 the four s&ls were sold to large banks as was the case with most of the N previous transactions initiated by the resolution trust corp. since it was created in the s&l bailout legislation two months ago 
 two of the four big thrifts were sold to ncnb corp. charlotte n.c. which has aggressively expanded its markets particularly in texas and florida 
 a canadian bank bought another thrift in the first rtc transaction with a foreign bank 
 under these deals the rtc sells just the deposits and the healthy assets 
 these <unk> transactions leave the bulk of bad assets mostly real estate with the government to be sold later 
 in these four for instance the rtc is stuck with $ N billion in bad assets 
 <unk> paid premiums ranging from N N to N N for the deposits and branch systems roughly in line with what analysts were expecting 
 the buyers will also be locked into deposit rates for just two weeks as has been the case with previous deals 
 after that the buyers may <unk> the rates paid by the former thrifts 
 but it 's uncertain whether these institutions will take those steps 
 ncnb for example has been one of the highest rate <unk> in the texas market and in florida rates are especially sensitive in retirement communities 
 the rtc had previously targeted five thrifts for quick sales in order to spend cash by certain budgetary deadlines but the delays illustrate the tough <unk> facing the agency 
 these thrifts are <unk> <unk> said <unk> <unk> an industry consultant based in <unk> va 
 for example the delay in selling people 's heritage savings <unk> kan. with $ N billion in assets has forced the rtc to consider selling off the thrift <unk> instead of as a whole institution 
 ncnb continued its <unk> into the florida and texas markets 
 ncnb will acquire university federal savings association houston which had assets of $ N billion 
 ncnb texas national bank will pay the rtc a premium of $ N million for $ N billion in deposits 
 as a measure of the <unk> to which the texas real estate market has <unk> the rtc will pay $ N billion to ncnb to take $ N million of bad assets 
 ncnb also acquired freedom savings & loan association tampa fla. which had total assets of $ N million 
 ncnb will pay the rtc a premium of $ N million for $ N billion in deposits 
 ncnb will also acquire $ N million of freedom 's assets from the rtc which will require $ N million in assistance 
 meridian bancorp inc. reading pa. will acquire hill financial savings association red hill pa. which had $ N billion in assets 
 meridian will pay a premium of $ N million to assume $ N billion in deposits 
 it will also purchase $ N million of the thrift 's assets with $ N billion in rtc assistance 
 in the first rtc transaction with a foreign buyer royal <unk> ltd. toronto will acquire pacific savings bank costa mesa calif. which had $ N million in assets 
 royal <unk> will pay the rtc $ N million to assume $ N million in deposits 
 it will also purchase $ N million in assets and receive $ N million in assistance from the rtc 
 the following issues were recently filed with the securities and exchange commission 
 american <unk> co. offering of N common shares via merrill lynch capital markets 
 limited inc. offering of up to $ N million of debt securities and warrants 
 <unk> california performance plus municipal fund inc. initial offering of five million common shares via alex brown & sons inc. john <unk> & co. prudential-bache capital funding and <unk> <unk> hill <unk> 
 <unk> health systems inc. proposed offering of N million common shares of which N shares will be offered by <unk> and N shares by <unk> america inc <unk> 's N N via dillon read & co. inc. goldman sachs & co. and dean witter reynolds inc 
 <unk> inc. offering of one million new shares of common stock and N shares by holders via drexel burnham lambert inc. and j.c. bradford & co 
 trans world airlines inc. offering of $ N million senior notes via drexel burnham 
 time magazine in a move to reduce the costs of wooing new subscribers is lowering its circulation guarantee to advertisers for the second consecutive year increasing its subscription rates and cutting back on merchandise <unk> 
 in an announcement to its staff last week executives at time warner inc. 's weekly magazine said time will dramatically <unk> its use of electronic <unk> such as telephones in television subscription drives cut the circulation it guarantees advertisers by N to four million and increase the cost of its annual subscription rate by about $ N to $ N 
 in a related development the <unk> for the fourth year in a row said it wo n't increase its advertising rates in N a full <unk> page in the magazine costs about $ N 
 however because the guaranteed circulation base is being lowered ad rates will be effectively N N higher per subscriber according to richard <unk> time associate publisher 
 time is following the course of some other <unk> magazines that in recent years have challenged the publishing <unk> that maintaining artificially high and expensive <unk> is the way to draw advertisers 
 in recent years reader 's digest new york times co. 's mccall 's and most recently news corp. 's tv guide have cut their massive circulation rate bases to eliminate marginal circulation and hold down rates for advertisers 
 deep discounts in <unk> and offers of free <unk> <unk> and watches have become accepted forms of attracting new subscribers in the <unk> world of magazine <unk> 
 but time as part of the more <unk> time warner wants to <unk> itself away from expensive <unk> 
 besides time executives think selling a news magazine with a <unk> radio is <unk> 
 <unk> just give people the wrong image said mr. <unk> 
 that perception takes the focus off the magazine 
 time magazine executives predictably <unk> the circulation cut as a show of strength and actually a benefit to advertisers 
 what we are doing is <unk> out the readers who are only <unk> related to the magazine and do n't really read it said mr. <unk> 
 we are trying to create quality and involvement 
 however time executives used the same explanation when in october N the magazine cut its guaranteed circulation from N million to N million 
 and time 's paid circulation according to audit bureau of <unk> dropped N N to N in the six months ended june N N 
 still time 's move is being received well once again 
 it 's <unk> for advertisers to know the reader will be paying more said michael <unk> national media director at bozell inc. ad agency 
 a few drops in circulation are of no consequence 
 it 's not a show of weakness they are improving the quality of circulation while <unk> their profits 
 mr. <unk> said the changes represent a new focus in the magazine industry a magazine 's net revenue per subscriber or the actual revenue from subscribers after discounts and the cost of premiums have been stripped away 
 the question is how much are we getting from each reader said mr. <unk> 
 time 's rivals <unk> washington post co. 's newsweek and u.s. news & world report are less <unk> on electronic <unk> and in recent years both have been increasing their circulation rate bases 
 both magazines are expected to announce their ad rates and circulation levels for N within a month 
 when the news broke of an attempted coup in panama two weeks ago sen. christopher dodd called the state department for a briefing 
 they said follow <unk> he told reporters 
 that shows how far ted turner 's cable news network has come since its birth nine years ago when it was considered the <unk> of television news 
 it is bigger faster and more profitable than the news divisions of any of the three major broadcast networks 
 its niche as the network of record during major crises draws elite audiences around the world 
 but for all its success <unk> has hit a <unk> 
 although <unk> <unk> when big news breaks it <unk> during periods of calm 
 <unk> executives worry that the network 's <unk> but <unk> news format may be getting <unk> and wo n't keep viewers coming back as the alternatives <unk> for news and information on cable-tv 
 just the fact we 're on N hours is no longer <unk> says ed turner <unk> 's executive vice president news gathering and no <unk> to ted turner 
 you ca n't live on that 
 so <unk> a unit of atlanta-based turner broadcasting system inc. is trying to <unk> itself as a primary channel or what people in the television industry call a top of mind network 
 tonight to kick off the effort <unk> will premiere its first prime-time <unk> in years an <unk> show at N p.m eastern time to air <unk> against the network <unk> 
 the show will be <unk> by bernard shaw and <unk> <unk> a <unk> former texas judge and campus beauty queen who has never held a job in television or journalism 
 the new show is perhaps the <unk> in a number of steps the network is taking to build audience loyalty by shifting away from its current format toward more <unk> signature programming with <unk> stars 
 to <unk> itself <unk> is also expanding international coverage and adding a second <unk> program 
 it is paying higher salaries after years of <unk> to lure and keep experienced staffers 
 and it is <unk> on an expensive gamble to break major stories with a large <unk> team 
 the next stage is to get beyond the opinion leaders who use us as a point of reference to become a point of reference at ordinary dinner tables says jon <unk> executive vice president of headline news <unk> 's sister network 
 but that wo n't be easy 
 networks like other consumer products develop images in peoples ' minds that are n't easy to change 
 it also takes money that <unk> has been reluctant to spend to make programs and hire talent that viewers will tune in specially to see 
 and the cable-tv operators <unk> 's distributors and part owners like things just the way they are 
 the <unk> bid is aimed at <unk> 's <unk> <unk> and what may happen to it as the cable-tv news market grows more competitive 
 already <unk> is facing stronger competition from financial news network inc. and general electric co. 's consumer news and business channel both of which are likely to pursue more general news in the future 
 in addition many cable-tv systems themselves are airing more local and regional news programs produced by local broadcast stations 
 <unk> wants to change its viewers ' habits 
 its watchers are on the whole a <unk> group of <unk> <unk> and news <unk> who spend an average of just N minutes a day watching <unk> according to audience research 
 that 's less than one-third the time that viewers watch the major broadcast networks 
 the brief attention viewers give <unk> could put it at a disadvantage as ratings data and advertising become more important to cable-tv channels 
 <unk> 's <unk> habits have been <unk> by its format 
 its strategy in the past has been to serve as a tv wire service 
 it focused on building up its news bureaus around the world so as events took place it could go live <unk> and longer than other networks 
 it filled its daily schedule with <unk> called <unk> <unk> <unk> and <unk> but the shows <unk> little in content <unk> or look 
 now the push is on for <unk> shows 
 our goal is to create more programs with an individual identity says paul <unk> <unk> executive vice president for programming 
 <unk> <unk> is adding a <unk> show in the morning because surveys show its <unk> hour in the afternoon is among its most <unk> programs in viewers ' minds says mr. <unk> 
 and it is exploring other original programs similar to its larry king live and <unk> talk shows which executives hope will keep people <unk> in 
 then there 's the world today the prime-time <unk> featuring mr. shaw and ms. <unk> 
 until now <unk> has featured its hollywood <unk> show during the key evening period 
 but N N of the <unk> households that watch news do so between N p.m. and N p.m. the network discovered so <unk> wants in 
 mr. <unk> says the <unk> team will probably do two live interviews a day with most of the program at least for now appearing similar to <unk> 's other <unk> 
 some in the industry are skeptical 
 i find it hard to <unk> of people switching over to <unk> for what at least in the public 's mind is the same news says <unk> frank the former <unk> president of nbc news and <unk> of the <unk> report 
 the evening news is also slated as <unk> 's stage for its big push into <unk> journalism 
 in august the network hired <unk> producer <unk> hill the former head of news <unk> at abc 
 she 's <unk> a staff of about N <unk> reporters who will produce weekly <unk> segments with an eye toward breaking big stories 
 <unk> executives hope the <unk> created by such <unk> will generate excitement for its <unk> programs in the way N minutes did so well for cbs 
 that 's such a departure from the past that many in the industry are skeptical <unk> will follow through with its <unk> commitment especially after it sees the cost of producing <unk> pieces 
 they 've never shown any <unk> to spend money on production says michael <unk> a senior producer with <unk> <unk> who notes that <unk> is <unk> to his job 
 the network 's salaries have always ranged far below industry standards resulting in a <unk> work force 
 <unk> recently gave most employees raises of as much as N N but they 're still drastically <unk> compared with the networks 
 says mr. <unk> <unk> is my wire service they 're on top of everything 
 but to improve they 've really got to make the investment in people 
 in any case <unk> operators have reason to fear any <unk> with <unk> 's format 
 they market cable-tv on the very <unk> opportunities <unk> seeks to discourage 
 we would obviously be upset if those kinds of services <unk> into more <unk> <unk> programming says robert <unk> senior vice president programming of continental <unk> inc. which holds a N N stake in turner broadcasting 
 the second u.s. circuit court of appeals opinion in the <unk> <unk> case did not <unk> the position pennzoil co. took in its dispute with texaco contrary to your sept. N article court backs texaco 's view in pennzoil case too late 
 the fundamental rule of contract law applied to both cases was that courts will not enforce agreements to which the parties did not intend to be bound 
 in the <unk> litigation the courts found pennzoil and <unk> oil intended to be bound in <unk> <unk> they found there was no intention to be bound 
 <unk> the principle in the cases is the same 
 but the outcome of a legal dispute almost always turns on the facts 
 and the facts as found by the various courts in these two lawsuits were different 
 when you suggest otherwise you leave the <unk> of reporting and enter the <unk> of speculation 
 charles f. <unk> 
 valley federal savings & loan association said imperial corp. of america withdrew from regulators its application to buy five valley federal branches leaving the transaction in limbo 
 the broken purchase appears as additional evidence of trouble at imperial corp. whose spokesman said the company withdrew its application from the federal office of thrift supervision because of an informal notice that imperial 's thrift unit failed to meet community reinvestment act requirements 
 the community reinvestment act requires savings and loan associations to lend money in amounts related to areas where deposits are received 
 the transaction announced in august included about $ N million in deposits at the five outlets in california 's san <unk> valley 
 terms were n't disclosed but valley federal had said it expected to post a modest pretax gain and to save about $ N million in operating costs annually 
 valley federal said friday that it is considering whether to seek another buyer for the branches or to pursue the transaction with imperial corp. which said it is attempting to meet community reinvestment act requirements 
 valley federal with assets of $ N billion is based in van <unk> 
 imperial corp. based in san diego is the parent of imperial savings & loan 
 in the first six months of the year it posted a net loss of $ N million 
 call it the we 're too broke to fight defense 
 lawyers for dozens of insolvent savings and loan associations are trying a new <unk> in their efforts to <unk> suits filed by borrowers developers and creditors 
 the thrifts ' lawyers claim that the suits <unk> N to N in texas alone should be dismissed as <unk> because neither the s&ls nor the <unk> federal savings and loan insurance corp. has the money to pay judgments 
 though the argument may have a <unk> ring to it even the s&l lawyers concede there 's little precedent to back their position 
 still one federal appeals court has signaled it 's willing to <unk> the notion and the lawyers have renewed their arguments in texas and eight other states where the defense is permitted under state law 
 the dismissal of the pending suits could go a long way toward clearing court <unk> in texas and reducing the <unk> 's massive legal bills which topped $ N million last year 
 the s&l lawyers were encouraged last month by an <unk> ruling in two cases brought against <unk> <unk> savings & loan association of dallas by the developers of the valley ranch best known as the training center for the dallas cowboys football team 
 <unk> foreclosed on the ranch 
 <unk> and the <unk> argued to the fifth u.s. circuit court of appeals that there will never be any assets with which to satisfy a judgment against <unk> savings nor any means to collect from any other party including <unk> 
 if true the court wrote this <unk> would justify dismissal of these actions on prudential grounds 
 but the court said it lacked enough financial information about <unk> and the <unk> and sent the cases back to federal district court in dallas 
 charles <unk> a lawyer for <unk> says he plans to file a brief this week urging the district judge to dismiss the suits because <unk> 's liabilities exceeded its assets by about $ N billion when federal regulators closed it in august N 
 this institution is just brain dead says mr. <unk> a partner in the dallas office of <unk> & <unk> a houston law firm 
 but a lawyer for <unk> investment group the developer of valley ranch <unk> such arguments as a defense du <unk> 
 attorney richard jackson of dallas says a judgment for <unk> could be satisfied in ways other than a monetary award including the reversal of <unk> 's <unk> on valley ranch 
 we 're asking the court for a number of things he can grant in addition to the <unk> of victory he says 
 we 'd take the valley ranch free and clear as a <unk> prize 
 kenneth j. <unk> who was named president of this thrift holding company in august resigned citing personal reasons 
 mr. <unk> said he had planned to travel between the job in denver and his san diego home but has found the commute too difficult to continue 
 a new president was n't named 
 south africa freed the anc 's sisulu and seven other political <unk> 
 thousands of supporters many <unk> flags of the outlawed african national congress gave the <unk> activists a tumultuous reception upon their return to black <unk> across the country 
 most of those freed had spent at least N years in prison 
 the <unk> sisulu sentenced to life in N along with black <unk> nelson <unk> for <unk> to <unk> the government said <unk> for blacks in south africa was in reach 
 the releases announced last week by president de <unk> were viewed as pretoria 's <unk> <unk> of the anc 
 <unk> considered the most prominent leader of the anc remains in prison 
 but his release within the next few months is widely expected 
 the soviet union reported that thousands of tons of goods needed to ease widespread shortages across the nation were <unk> up at ports and rail <unk> and food shipments were <unk> because of a lack of people and equipment to move the cargo 
 strikes and <unk> were cited and premier <unk> warned of tough measures 
 bush indicated there might be room for flexibility in a bill to allow federal funding of abortions for poor women who are <unk> of rape and incest 
 he reiterated his opposition to such funding but expressed hope of a compromise 
 the president at a news conference friday also renewed a call for the <unk> of panama 's noriega 
 the white house said <unk> have n't any right to abortion without the consent of their parents 
 the administration 's policy was stated in a <unk> brief urging the supreme court to give states more <unk> to restrict abortions 
 ten of the nation 's governors meanwhile called on the justices to reject efforts to limit abortions 
 the justice department announced that the fbi has been given the authority to seize u.s. <unk> overseas without the permission of foreign governments 
 secretary of state baker emphasized friday that the new policy would n't be <unk> by the bush administration without full consideration of <unk> implications 
 nasa <unk> the space shuttle atlantis ready for launch tomorrow following a <unk> <unk> of the flight because of a <unk> engine computer 
 the device was replaced 
 the spacecraft 's five <unk> are to <unk> the galileo space probe on an exploration mission to jupiter 
 south korea 's president roh traveled to the u.s. for a <unk> visit that is expected to focus on ties between washington and seoul 
 roh who is facing calls for the reduction of u.s. military forces in south korea is to meet with bush tomorrow and is to address a joint session of congress on wednesday 
 china 's communist leadership voted to <unk> the party of hostile and <unk> elements and wealthy private businessmen whom they called <unk> 
 the decision reported by the official <unk> news agency indicated that the crackdown prompted by <unk> pro-democracy protests in june is <unk> 
 hundreds of east germans <unk> to bonn 's embassy in warsaw bringing to more than N the number of <unk> expected to <unk> to the west beginning today 
 more than N others escaped to west germany through hungary over the weekend 
 in leipzig activists vowed to continue street protests to demand internal change 
 <unk> 's president <unk> met in southern france with <unk> rebel leader <unk> and a senior u.s. <unk> in a bid to revive an accord to end <unk> 's civil war 
 details of the talks described by a <unk> official as very delicate were n't disclosed 
 plo leader arafat insisted on guarantees that any elections in the <unk> <unk> would be <unk> 
 he made his remarks to a plo gathering in <unk> 
 in the occupied <unk> underground leaders of the arab <unk> rejected a u.s. plan to arrange <unk> talks as shamir opposed holding such discussions in cairo 
 <unk> christian lawmakers presented to arab <unk> at talks in saudi arabia proposals for a new timetable for the withdrawal of <unk> 's forces from lebanon 
 a plan currently under study gives <unk> two years to pull back to eastern lebanon starting from the time <unk> 's legislature increases political power for <unk> 
 hurricane jerry threatened to combine with the highest <unk> of the year to <unk> the <unk> coast 
 thousands of residents of <unk> areas were ordered to <unk> as the storm headed north in the gulf of mexico with N mph <unk> 
 a group of arby 's franchisees said they formed an association to oppose miami beach financier victor posner 's control of the restaurant chain 
 the decision is the latest move in an <unk> battle between the franchisees and mr. posner that began in august 
 at the time a group called <unk> partners ltd. consisting of eight of arby 's largest franchisees offered more than $ N million to buy arby 's inc. which is part of <unk> corp 
 <unk> is a holding company controlled by mr. posner 
 one week later leonard h. roberts president and chief executive officer of arby 's was fired in a dispute with mr. posner 
 friday N franchisees announced the formation of an association called a.p. association inc. to preserve the integrity of the arby 's system 
 the franchisees owners or operators of N of the N <unk> arby 's in the u.s. said we have concluded that continued control of arby 's by victor posner is totally <unk> to us because it is extremely likely to cause <unk> damage to the arby 's system 
 we support all efforts to remove victor posner from control of arby 's inc. and the arby 's system 
 the group said it would consider among other things <unk> royalty payments and <unk> a class-action lawsuit seeking court approval for the <unk> 
 in florida <unk> <unk> a senior vice president at <unk> responded we do n't think any individual or group should disrupt a winning system or illegally interfere with existing <unk> relationships for their own <unk> <unk> 
 september 's steep rise in producer prices shows that inflation still <unk> and the <unk> over interest rates caused by the new price data contributed to the stock market 's plunge friday 
 after falling for three consecutive months the producer price index for finished goods shot up N N last month the labor department reported friday as energy prices jumped after tumbling through the summer 
 although the report which was released before the stock market opened did n't trigger the 190.58-point drop in the dow jones industrial average analysts said it did play a role in the market 's decline 
 analysts immediately viewed the price data the <unk> inflation news in months as evidence that the federal reserve was unlikely to allow interest rates to fall as many investors had hoped 
 further fueling the belief that pressures in the economy were sufficient to keep the fed from easing credit the commerce department reported friday that retail sales grew N N in september to $ N billion 
 that rise came on top of a N N gain in august and suggested there is still healthy consumer demand in the economy 
 i think the friday report combined with the actions of the fed weakened the belief that there was going to be an imminent easing of monetary policy said robert <unk> chief economist at northern trust co. in chicago 
 but economists were divided over the extent of the inflation threat signaled by the new numbers 
 the overall N N increase is serious in itself but what is even worse is that excluding food and energy the producer price index still increased by N N said gordon <unk> an economist at the national association of manufacturers 
 but sung won <unk> chief economist at <unk> corp. in minneapolis blamed rising energy prices and the annual autumn increase in car prices for most of the september jump 
 i would say this is not bad news this is a <unk> he said 
 the core rate is not really out of line 
 all year energy prices have <unk> the producer price index which measures changes in the prices producers receive for goods 
 inflation <unk> has fallen back from its <unk> pace last winter when a steep <unk> in world oil prices sent the index surging at double-digit annual rates 
 energy prices then plummeted through the summer causing the index to decline for three consecutive months 
 overall the index has climbed at a N N compound annual rate since the start of the year the labor department said 
 while far more <unk> than the pace at the beginning of the year that is still a <unk> rise than the N N increase for all of N 
 moreover this year 's good inflation news may have ended last month when energy prices <unk> up N N after plunging N N in august 
 some analysts expect oil prices to remain relatively stable in the months ahead leaving the future pace of inflation uncertain 
 analysts had expected that the climb in oil prices last month would lead to a substantial rise in the producer price index but the N N climb was higher than most anticipated 
 i think the <unk> in inflation is going to continue for a few months said john <unk> chief economist at bell <unk> <unk> a washington economic forecasting firm 
 he predicted that inflation will moderate next year saying that credit conditions are fairly tight world-wide 
 but <unk> van <unk> president of the national association of <unk> said that last month 's rise is n't as bad an <unk> as the N N figure suggests 
 if you examine the data carefully the increase is concentrated in energy and motor vehicle prices rather than being a broad-based advance in the prices of consumer and industrial goods he explained 
 passenger car prices jumped N N in september after climbing N N in august and declining in the late spring and summer 
 many analysts said the september increase was a one-time event coming as dealers introduced their N models 
 although all the price data were adjusted for normal seasonal fluctuations car prices rose beyond the <unk> autumn increase 
 prices for capital equipment rose a hefty N N in september while prices for home electronic equipment fell N N 
 food prices declined N N after climbing N N in august 
 meanwhile the retail sales report showed that car sales rose N N in september to $ N billion 
 but at least part of the increase could have come from higher prices analysts said 
 sales at general merchandise stores rose N N after declining N N in august while sales of building materials fell N N after rising N N 
 producer prices for intermediate goods grew N N in september after dropping for three consecutive months 
 prices for crude goods an array of raw materials jumped N N after declining N N in august and <unk> up N N in july 
 here are the labor department 's producer price indexes N <unk> N for september before seasonal adjustment and the percentage changes from september N 
 <unk> financial corp. said it expects to report a loss of at least $ N million to $ N million for the third quarter 
 in the year-earlier period <unk> had net income of $ N but no per-share earnings 
 <unk> 's president and chief executive officer john <unk> said the loss stems from several factors 
 he said nonperforming assets rose to slightly more than $ N million from $ N million between june and september 
 approximately N N of the total <unk> of nonperforming commercial real estate assets 
 <unk> <unk> estimated that it will provide between $ N million and $ N million for credit losses in the third quarter 
 <unk> added that significant additional loan-loss provisions may be required by federal regulators as part of the current annual examination of city federal savings bank <unk> 's primary subsidiary based in <unk> n.j 
 city federal operates N banking offices in new jersey and florida 
 mr. <unk> said <unk> will also mark its portfolio of high-yield corporate bonds to market as a result of federal legislation requiring that savings institutions <unk> themselves of such bonds 
 that action <unk> said will result in a charge against third-quarter results of approximately $ N million 
 <unk> also said it expects to shed its remaining mortgage loan <unk> operations outside its principal markets in new jersey and florida and as a result is taking a charge for discontinued operations 
 all these actions mr. <unk> said will result in a loss of $ N million to $ N million for the third quarter 
 he added however depending on the resolution of certain accounting issues relating to mortgages <unk> and the outcome of the annual examination of city federal currently in progress with respect to the appropriate level of loan loss reserves the total loss for the quarter could significantly exceed this range 
 centrust savings bank said federal thrift regulators ordered it to suspend dividend payments on its two classes of preferred stock indicating that regulators ' concerns about the troubled institution have heightened 
 in a statement miami-based centrust said the regulators cited the thrift 's operating losses and apparent losses in its junk-bond portfolio in ordering the suspension of the dividends 
 regulators also ordered centrust to stop buying back the preferred stock 
 david l. paul chairman and chief executive officer criticized the federal office of thrift supervision which issued the <unk> saying it was inappropriate and based on insufficient reasons 
 he said the thrift will try to get regulators to reverse the decision 
 the suspension of a preferred stock dividend is a serious step that signals that regulators have deep concerns about an institution 's health 
 in march regulators labeled centrust a troubled institution largely because of its big junk-bond holdings and its operating losses 
 in the same month the office of thrift supervision ordered the institution to stop paying common stock dividends until its operations were on track 
 for the nine months ended june N centrust had a net loss of $ N million compared with year-earlier net income of $ N million 
 centrust which is florida 's largest thrift holds one of the largest junk-bond portfolios of any thrift in the nation 
 since april it has <unk> its high-yield bond holdings to about $ N million from $ N billion 
 mr. paul said only about $ N million of the current holdings are <unk> securities registered with the securities and exchange commission 
 the remainder he said are commercial loan <unk> or private <unk> that are n't filed with the sec and do n't have a ready market 
 centrust and regulators have been in a dispute over market <unk> for the junk bonds 
 the office of thrift supervision has been <unk> centrust to provide current market values for its holdings but centrust has said it ca n't easily obtain such values because of the relative <unk> of the bonds and lack of a ready market 
 regulators have become increasingly <unk> about centrust 's and other thrifts ' junk-bond holdings in light of the recent federal thrift bailout legislation and the recent deep decline in the junk-bond market 
 the legislation requires thrifts to <unk> themselves of junk bonds in the new <unk> regulatory climate 
 in american stock exchange composite trading friday centrust common shares closed at $ N down N cents 
 in a statement friday mr. paul challenged the regulators ' decision saying the thrift 's operating losses and apparent junk-bond losses have been substantially offset by gains in other activities of the bank 
 he also said substantial reserves have been set aside for possible losses from the junk bonds 
 in the third quarter for instance centrust added $ N million to its general reserves 
 mr. paul said the regulators should instead move ahead with <unk> centrust 's request to sell N of its N branches to great western bank a unit of great western financial corp. based in beverly hills calif 
 the branch sale is the centerpiece of centrust 's strategy to transform itself into a traditional s&l from a <unk> institution that relied heavily on securities trading for profits according to mr. paul 
 most analysts and thrift executives had expected a decision on the proposed transaction which was announced in july long before now 
 many interpret the delay as an indication that regulators are skeptical about the proposal 
 branches and deposits can be sold at a premium in the event federal regulators take over an institution 
 centrust however <unk> the branch sale saying it would bring in $ N million and reduce the thrift 's assets to $ N billion from $ N billion 
 it said the sale would give it positive tangible capital of $ N million or about N N of assets from a negative $ N million as of sept. N thus bringing centrust close to regulatory standards 
 centrust said the branch sale would also reduce the company 's large amount of good will by about $ N million 
 critics however say the branch sale will make centrust more dependent than ever on <unk> deposits and junk bonds 
 mr. paul <unk> that he intends to further <unk> the size of centrust by not renewing more than $ N billion of <unk> certificates of deposit when they come due 
 the thrift is also working to unload its junk-bond portfolio by continuing to sell off the bonds and it plans to eventually place some of them in a separate affiliate as required under the new thrift law 
 on a recent saturday night in the midst of west germany 's most popular prime-time show a <unk> bet the host that she could name any of N different <unk> after just one <unk> while <unk> 
 the woman won the bet 
 but perhaps even more remarkable the <unk> <unk> <unk> make a bet regularly wins the top <unk> in the country 's tv ratings sometimes drawing as many as N N of west german households 
 as the N economic integration approaches europe 's cultural <unk> have taken to the <unk> against american cultural <unk> threatening to impose quotas against such pop <unk> as dallas miami vice and l.a. law 
 but much of what the europeans want to protect seems every bit as <unk> as what they are trying to keep out 
 the most <unk> opposition to american tv imports has come from french television and movie producers who have demanded quotas ensuring that a full N N of europe 's tv shows be produced in europe 
 so far the french have failed to win enough broad-based support to prevail 
 a <unk> through the television listings and a few <unk> of the european television dial suggest one reason why 
 while there are some popular action and drama series few <unk> the high culture and <unk> production values one might expect 
 more european air time is filled with <unk> game shows variety hours movies and talk shows many of which are authorized <unk> of their american counterparts 
 one of france 's most popular saturday night programs features <unk> seeking out their <unk> <unk> for <unk> <unk> 
 a <unk> game show has as its host a belgian <unk> to be italian 
 one of italy 's favorite shows <unk> a <unk> variety show is so popular that viewers <unk> to buy a <unk> product <unk> <unk> whose <unk> were sung each week by <unk> <unk> even though the product did n't exist 
 <unk> the <unk> <unk> on another typical evening of fun on <unk> <unk> a <unk> won a bet with the show 's host thomas <unk> that he could identify N german <unk> over the telephone 
 a celebrity guest u.s. ambassador to west germany richard burt also won a bet that someone could pile up $ N worth of quarters on a <unk> coin 
 mr. burt nonetheless paid the penalty as if he had lost agreeing to spend a day with west german foreign minister <unk> <unk> <unk> and selling their combined weight in potato <unk> 
 if this seems like pretty weak stuff around which to raise the <unk> barriers it may be because these shows need all the protection they can get 
 european programs usually target only their own local audience and often only a small portion of that 
 <unk> in germany or italy rarely make it even to france or great britain and almost never show up on u.s. screens 
 attempts to produce <unk> programs have generally resulted in disappointment 
 one annual <unk> the <unk> <unk> song contest featuring <unk> <unk> from each of N european countries has been described as the world 's most boring tv show 
 another <unk> <unk> <unk> where <unk> from <unk> european countries make <unk> of themselves performing <unk> tasks is a hit in france 
 a <unk> <unk> under the title almost anything goes <unk> fast 
 for the most part what 's made here stays here and for good reason 
 the <unk> of the british crop the literary <unk> that are shown on u.s. public television as <unk> theater make up a relatively small part of british air time 
 most british programming is more of an acquired taste 
 there is for instance one man and his dog a <unk> contest among sheep dogs 
 also <unk> to the british are hours of <unk> <unk> even more hours of lawn bowling <unk> and still more hours of <unk> <unk> 
 european drama has had better though still mixed fortunes 
 the most popular such shows focus on narrow national concerns 
 a french <unk> of dallas called <unk> and set in a french <unk> had a good run in france which ended after the female lead was injured in a <unk> auto accident 
 <unk> black forest clinic a kind of german <unk> elsewhere set in a health <unk> is popular in germany and has spread into france 
 italy 's most popular series is a drama called la <unk> or the <unk> which <unk> the fight of an <unk> young investigator in <unk> against the mafia 
 it was <unk> news in italy earlier this year when the <unk> inspector was <unk> down in the series 
 spain 's most popular <unk> this year was <unk> the story of an aging <unk> 
 the trend is pretty well established now that local programs are the most popular with american programs second says brian <unk> a former director of programs for the british broadcasting corp 
 given a choice everybody will watch a <unk> show 
 but frequently there is n't much choice 
 thus europe has begun the recent crusade to produce more worthy shows of its own programs with broader appeal 
 we 've basically got to start from <unk> to train writers and producers to make shows that other people will want to see concedes <unk> young head of britain 's national film theatre school 
 while some in the u.s. contend that advertising is the <unk> of television here many believe that its absence is to blame for the european tv industry 's sluggish development 
 until recently national governments in europe controlled most of the air time and allowed little or no advertising 
 since production costs were guaranteed it did n't matter that a program could n't be sold abroad or put into <unk> as most american programs are 
 but not much money was spent on the shows either a situation that encouraged <unk> talk and game shows while discouraging <unk> <unk> 
 now however commercial channels are coming to most european countries and at the same time satellite and cable technology is spreading rapidly 
 just last week greece authorized two commercial channels for the first time spain earlier began to allow commercial television alongside its state channels 
 the result is a new and huge appetite for programming 
 but perhaps to the <unk> of those calling for quotas most of this <unk> is likely to be filled with the cheapest and most <unk> programming now available reruns usually of shows made in the u.s. 
 sky channel a <unk> venture of <unk> press <unk> rupert murdoch offers what must be a <unk> cultural mix to most of its audience 
 the financially struggling station offers programs obviously made available <unk> from its boss 's other ventures 
 in a madrid hotel room recently a <unk> caught the end of a badly acted series about a fishing boat on australia 's great barrier <unk> only to be urged by the british announcer to stay <unk> for the further <unk> of <unk> the <unk> 
 <unk> <unk> in bonn <unk> <unk> in milan tim <unk> in london and <unk> <unk> in madrid contributed to this article 
 british aerospace plc and france 's <unk> s.a. said they are <unk> an agreement to merge their <unk> divisions greatly expanding collaboration between the two defense contractors 
 the N joint venture which may be dubbed <unk> would have combined annual sales of at least # N billion $ N billion and would be among the world 's largest missile makers 
 after two years of talks plans for the venture are sufficiently advanced for the companies to seek french and british government clearance 
 the companies hope for a final agreement by year-end 
 the venture would strengthen the rapidly growing ties between the two companies and help make them a leading force in european defense contracting 
 in recent months a string of cross-border mergers and joint ventures have <unk> the <unk> world of european arms manufacture 
 already british aerospace and french <unk> <unk> <unk> on a british missile contract and on an <unk> control radar system 
 just last week they announced they may make a joint bid to buy ferranti international signal plc a smaller british defense contractor rocked by alleged accounting fraud at a u.s. unit 
 the sudden <unk> of british aerospace and <unk> traditionally bitter competitors for middle east and third world weapons contracts is <unk> controversy in western europe 's defense industry 
 most threatened by closer british <unk> ties would be their respective national rivals including <unk> s.a. in france and britain 's general electric co. plc 
 but neither <unk> nor <unk> unrelated to stamford <unk> general electric co. are sitting quietly by as their competitors join forces 
 yesterday a source close to <unk> confirmed that his company may join the ferranti fight as part of a possible consortium that would bid against british aerospace and <unk> 
 companies with which <unk> has had talks about a possible joint ferranti bid include <unk> britain 's <unk> group plc west germany 's daimler-benz ag and france 's dassault group 
 but it may be weeks before <unk> and its potential partners decide whether to bid the source indicated 
 <unk> plans first to study ferranti 's financial accounts which auditors recently said included # N million in <unk> contracts at a u.s. unit international signal & control group with which ferranti merged last year 
 also any <unk> bid might be blocked by british antitrust regulators ferranti is <unk> 's main competitor on several key <unk> contracts and its purchase by <unk> may <unk> british defense ministry worries about concentration in the country 's defense industry 
 a consortium bid however would <unk> <unk> 's direct role in ferranti and might consequently <unk> ministry officials 
 a british aerospace spokeswoman appeared <unk> by the prospect of a fight with <unk> for ferranti competition is the name of the game she said 
 at least one potential <unk> partner <unk> insists it is n't interested in ferranti 
 we have nothing to say about this affair which does n't concern us a <unk> official said sunday 
 the missile venture the british aerospace spokeswoman said is a needed response to the new environment in defense contracting 
 for both thomson and british aerospace earnings in their home markets have come under pressure from increasingly <unk> defense ministries and middle east sales a traditional mainstay for both companies ' exports have been hurt by five years of weak oil prices 
 the venture 's importance for thomson is great 
 thomson feels the future of its defense business depends on building cooperation with other europeans 
 the european defense industry is consolidating for instance west germany 's siemens ag recently joined <unk> in a takeover of britain 's <unk> co. and daimler-benz agreed to buy <unk> <unk> g.m.b <unk> 
 in missiles thomson is already <unk> by british aerospace and by its home rival france 's <unk> s.a. to better compete thomson officials say they need a partnership 
 to justify N ownership of the planned venture thomson would make a cash payment to british aerospace 
 annual revenue of british aerospace 's missile business is about # N million a thomson spokesman said 
 british aerospace 's chief missile products include its <unk> family of <unk> <unk> missiles 
 thomson missile products with about half british aerospace 's annual revenue include the <unk> <unk> missile family 
 <unk> pipe line co. said it will delay a proposed <unk> N million <unk> us$ N million expansion of its system because canada 's output of crude oil is shrinking 
 <unk> canada 's biggest oil pipeline operator and a major <unk> of crude to the u.s. said revised industry forecasts indicate that canadian oil output will total about N million barrels a day by N N N lower than a previous estimate 
 canadian crude production averaged about N million barrels a day during N 's first half about N N below the N level 
 the capability of existing fields to deliver oil is dropping and oil exploration activity is also down dramatically as many producers shift their emphasis to natural gas said ronald <unk> vice president for government and industry relations with <unk> 's parent <unk> energy inc 
 mr. <unk> said volume on <unk> 's system is down about N N since january and is expected to fall further making expansion unnecessary until perhaps the mid-1990s 
 there has been a swing of the <unk> back to the gas side he said 
 many of canada 's oil and gas producers say the outlook for natural gas is better than it is for oil and have shifted their exploration and development budgets <unk> 
 the number of active drilling <unk> in canada is down N N from a year ago and the number of completed oil wells is down more than that due to the increasing focus on gas exploration said robert <unk> manager of crude oil with calgary 's independent petroleum association of canada an industry group 
 mr. <unk> said the main reason for the production decline is shrinking output of light crude from mature conventional fields in western canada 
 <unk> <unk> about N N of all crude produced in western canada and almost N N of <unk> 's total volume consists of light crude 
 nearly all of the crude oil that canada exports to the u.s. is <unk> on <unk> 's system whose main line runs from <unk> to major u.s. and canadian cities in the great <unk> region including chicago <unk> toronto and montreal 
 canada 's current oil exports to the u.s. total about N barrels a day or about N N of net u.s. crude imports said john <unk> president of the new york-based petroleum industry research foundation 
 that ranks canada as the <unk> source of imported crude behind saudi arabia <unk> and mexico 
 mr. <unk> said canada 's declining crude output combined with the <unk> output of u.s. crude will help intensify u.s. reliance on oil from overseas particularly the middle east 
 it 's very much a growing concern 
 but when something is inevitable you learn to live with it he said 
 mr. <unk> stressed that the delay of <unk> 's proposed expansion wo n't by itself increase u.s. <unk> on offshore crude however since canadian imports are limited in any case by canada 's falling output 
 under terms of its proposed <unk> expansion which would have required regulatory approval <unk> intended to add N barrels a day of additional capacity to its system beginning with a modest expansion by N 
 the system currently has a capacity of N million barrels a day 
 inland steel industries inc. expects to report that third-quarter earnings dropped more than N N from the previous quarter as a result of reduced sales volume and increased costs 
 in the second quarter the steelmaker had net income of $ N million or $ N a share including a pretax charge of $ N million related to the settlement of a suit on sales of $ N billion 
 the company said normal seasonal softness and lost orders caused by prolonged labor talks reduced shipments by N tons in the latest quarter compared with the second quarter 
 at the same time the <unk> business was hurt by continued increases in materials costs and repair and maintenance expenses as well as higher labor costs under its new contract 
 the <unk> business was hurt by reduced margins and start-up costs associated with its joseph t. <unk> & son unit 
 the company said it is beginning to see some <unk> improvements in both the <unk> and <unk> segments which should result in improved results for the fourth quarter 
 inland said its third-quarter results will be announced later this week 
 in the year-earlier third quarter when the industry was in the midst of a boom the company had net of $ N million or $ N a share on sales of $ N billion 
 predicting the financial results of computer firms has been a tough job lately 
 take microsoft corp. the largest maker of personal computer software and generally considered an industry bellwether 
 in july the company stunned wall street with the prediction that growth in the personal computer business overall would be only N N in N a modest increase when compared with the <unk> expansion of years past 
 investors taking this as a sign that a broad industry slump was in the <unk> reacted by selling the company 's stock which lost $ N that day to close at $ N in national over-the-counter trading 
 but that was all of three months ago 
 last week microsoft said it expects revenue for its first quarter ended sept. N to increase N N 
 the announcement caused the company 's stock to surge $ N to close at $ N a share 
 microsoft 's surprising strength is one example of the difficulty facing investors looking for <unk> about the financial health of the computer firms 
 it 's hard to know what to expect at this point said peter rogers an analyst at robertson <unk> & co 
 the industry <unk> <unk> 
 to illustrate mr. rogers said that of the N <unk> firms he follows half will report for their most recent quarter earnings below last year 's results and half above those results 
 among those companies expected to have a down quarter are hewlett-packard co. <unk> corp. and sun microsystems inc. generally solid performers in the past 
 international business machines corp. also is expected to report disappointing results 
 apple computer inc. meanwhile is expected to show improved earnings for the period ended <unk> 
 another <unk> message comes from businessland inc. a computer retailer 
 in july the company reported that booming sales of new personal computers from apple and ibm had resulted in net income more than doubling for its fourth quarter ended june N to $ N million or N cents a share 
 this month however businessland warned investors that results for its first quarter ended sept. N had n't met expectations 
 the company said it expects earnings of N to N cents a share down from N cents a share in the year-earlier period 
 while the earnings picture <unk> observers say the major forces expected to shape the industry in the coming year are <unk> 
 companies will continue to war over standards 
 in computer publishing a battle over <unk> is hurting adobe systems inc. which sells software that controls the image produced by printers and displays 
 until recently adobe had a lock on the market for image software but last month apple adobe 's biggest customer and microsoft <unk> 
 now the two firms are <unk> on an alternative to adobe 's approach and analysts say they are likely to carry ibm the biggest seller of personal computers along with them 
 the short-term outlook for adobe 's business however appears strong 
 the company is beginning to ship a new software program that 's being <unk> as a <unk> for owners of <unk> printers sold by apple 
 the program is aimed at improving the quality of printed material 
 john <unk> adobe 's chief executive officer said the mountain view calif. company has been receiving N calls a day about the product since it was demonstrated at a computer publishing conference several weeks ago 
 meanwhile competition between various operating systems which control the basic functions of a computer <unk> trouble for software firms generally 
 it creates uncertainty and usually <unk> down sales said <unk> <unk> an analyst at <unk> financial group 
 mr. <unk> said this probably is behind the expected weak performance of <unk> corp. maker of a widely used computer publishing program 
 he expects <unk> to report earnings of N cents a share on revenues of $ N million for its third quarter compared with earnings of N cents a share on revenue of N million in the year-earlier period 
 <unk> officials could n't be reached for comment 
 on the other hand the battle of the bus is expected to grow increasingly irrelevant 
 a bus is the data highway within a computer 
 ibm is backing one type of bus called <unk> while the nine other leading computer makers including <unk> and compaq computer corp. have chosen another method 
 users do n't care about the bus said daniel benton an analyst at goldman sachs & co 
 he said apple 's family of <unk> computers for instance uses four different buses and no one seems to mind 
 the gap between winners and <unk> will grow 
 in personal computers apple compaq and ibm are expected to tighten their hold on their business 
 at the same time <unk> firms will continue to lose ground 
 some lagging competitors even may leave the personal computer business altogether 
 <unk> technology for instance is considered a candidate to sell its troubled operation 
 <unk> has done well establishing a distribution business but they have n't delivered products that sell said <unk> brown an analyst at prudential-bache securities 
 mr. brown estimates <unk> whose terminals business is strong will report a loss of N cents a share for its quarter ended <unk> 
 personal-computer makers will continue to eat away at the business of more traditional computer firms 
 <unk> powerful <unk> computers designed with one or more microprocessors as their brains are expected to increasingly take on functions carried out by more expensive minicomputers and mainframes 
 the guys that make traditional hardware are really being <unk> by <unk> machines said mr. benton 
 as a result of this trend longtime <unk> <unk> ibm and digital equipment corp. are scrambling to <unk> with <unk> systems of their own 
 but they will have to act quickly 
 mr. benton expects compaq to unveil a family of high-end personal computers later this year that are powerful enough to serve as the hub for communications within large networks of <unk> machines 
 a <unk> of new computer companies also has targeted this <unk> market 
 population drain ends for midwestern states 
 iowa is making a comeback 
 so are indiana ohio and michigan 
 the population of all four states is on the <unk> according to new census bureau estimates following declines throughout the early 1980s 
 the gains to be sure are rather small 
 iowa for instance saw its population grow by N people or N N between N and N the census bureau says 
 still even that modest increase is good news for a state that had n't grown at all since N 
 between N and N north <unk> was the only state in the midwest to lose population a loss of N people 
 six of the N midwestern states have been growing steadily since N illinois kansas minnesota missouri south <unk> and wisconsin 
 the northeast has been holding its own in the population race 
 seven of nine states have grown each year since N including new york which lost N N of its population during the 1970s 
 and although pennsylvania and massachusetts suffered slight declines earlier in the decade they are growing again 
 at the same time several states in the south and west have had their own population turnaround 
 seven states that grew in the early 1980s are now losing population west virginia mississippi louisiana oklahoma <unk> wyoming and alaska 
 overall though the south and west still <unk> the northeast and midwest and fast-growing states like florida and california ensure that the pattern will continue 
 but the growth gap between the sun belt and other regions has clearly started narrowing 
 more elderly maintain their independence 
 thanks to modern medicine more couples are growing old together 
 and even after losing a spouse more of the elderly are staying independent 
 a new census bureau study of the <unk> population shows that N N of people aged N to N were living with a spouse in N up from N N in N 
 this does n't mean they 're less likely to live alone however 
 that share has remained at about N N since N 
 what has changed is that more of the young elderly are living with spouses rather than with other <unk> such as children 
 in N N N of those aged N to N lived with <unk> other than spouses down from N N in N 
 as people get even older many become <unk> 
 but even among those aged N and older the share living with a spouse rose slightly to N N in N from N N in N 
 like their younger counterparts the older elderly are less likely to live with other <unk> 
 only N N of those aged N and older lived with <unk> other than spouses in N down from N N in N 
 the likelihood of living alone beyond the age of N has increased to N N from N N 
 more people are remaining independent longer presumably because they are better off <unk> and financially 
 careers count most for the <unk> 
 many affluent people place personal success and money above family 
 at least that 's what a survey by ernst & young and <unk> <unk> <unk> indicates 
 two-thirds of respondents said they strongly felt the need to be successful in their jobs while fewer than half said they strongly felt the need to spend more time with their families 
 being successful in careers and spending the money they make are top priorities for this group 
 unlike most studies of the affluent market this survey excluded the <unk> 
 average household income for the sample was $ N and average net assets were reported as $ N 
 the goal was to learn about one of today 's fastest-growing income groups the <unk> class 
 although they represent only N N of the population they control nearly one-third of discretionary income 
 across the board these consumers value quality buy what they like rather than just what they need and appreciate products that are distinctive 
 despite their considerable incomes and assets N N of the respondents in the study do n't feel financially secure and <unk> do n't feel that they have made it 
 <unk> percent do n't even feel they are financially well off 
 many of the affluent are n't comfortable with themselves either 
 about N N do n't feel they 're more able than others 
 while <unk> feel some <unk> about being affluent only N N give $ N or more to charity each year 
 <unk> percent attend <unk> services regularly at the same time N N feel that in life one sometimes has to compromise one 's principles 
 odds and ends 
 the number of women and minorities who hold jobs in top management in the nation 's largest banks has more than doubled since N 
 the american bankers association says that women make up N N of officials and managers in the top N banks up from N N in N 
 the share of minorities in those positions has risen to N N from N N 
 <unk> personal income in the u.s. grew faster than inflation last year according to the bureau of economic analysis 
 the amount of income <unk> up for each man woman and child was $ N in N up N N from $ N in N 
 per capita personal income ranged from $ N in mississippi to $ N in connecticut 
 there are N million students in college this fall up N N from N the national center for education statistics estimates 
 about N N are women and N N are <unk> students 
 this small dallas suburb 's got trouble 
 trouble with a capital <unk> and that <unk> with <unk> and that stands for pool 
 more than N years ago prof. harold hill the con man in meredith <unk> 's the music man warned the citizens of river city iowa against the game 
 now <unk> spirits on <unk> 's town council have barred the town 's <unk> hotel the grand <unk> from <unk> three free pool tables in its new <unk> 
 mayor lynn <unk> and two members of the council said they were worried about setting a precedent that would permit pool halls along <unk> 's main street 
 and the mayor in an <unk> that bears a <unk> <unk> to prof. hill 's warned that alcohol leads to betting which leads to fights 
 the council 's action is yet another blow to a sport that its fans claim has been <unk> <unk> for years 
 obviously they 're not in touch with what 's going on says tom <unk> vice president of the national <unk> <unk> association 
 pool is hot in new york and chicago he insists where upscale <unk> places are adding tables 
 with today 's tougher drunk driving laws he adds people do n't want to just sit around and drink 
 besides <unk> behavior seems unlikely at the grand <unk> where rooms average $ N a night and the cheap mixed drinks go for $ N a pop 
 at the <unk> manager elizabeth <unk> wo n't admit <unk> in jeans <unk> or tennis shoes 
 but a majority of the <unk> council did n't buy those arguments 
 introducing pool argued <unk> <unk> <unk> would be dangerous 
 it would open a can of <unk> 
 <unk> is no <unk> to cans of <unk> either 
 after its previous mayor committed <unk> last year an investigation disclosed that town officials regularly voted on their own projects gave special favors to developer friends and dipped into the town 's <unk> for trips and <unk> 
 the <unk> embarrassed town officials although they argued that the problems were n't as severe as the media suggested 
 now comes the pool <unk> 
 i think there 's some people worried about something pretty ridiculous <unk> john <unk> says 
 i thought this was all taken care of in the music man 
 the only thing robert goldberg could <unk> about cbs 's new show island son leisure & arts sept. N was the local color unfortunately neither he nor the producers of the show have done their <unk> 
 for instance <unk> white is not the ultimate <unk> <unk> <unk> is 
 richard <unk> <unk> as a <unk> <unk> <unk> in a <unk> <unk> and rolling up its long <unk> 
 and the local expression for brother is <unk> not <unk> 
 and even if a <unk> would wear flowers in her hair while on duty if she were engaged she would know to wear them behind her left not right <unk> 
 sorry the show does not even have the one <unk> quality of genuine local color 
 <unk> davis 
 of all the ethnic <unk> in america which is the most troublesome right now 
 a good bet would be the tension between blacks and <unk> in new york city 
 or so it must seem to <unk> mason the veteran jewish <unk> appearing in a new abc <unk> airing on tuesday nights N p.m. edt 
 not only is mr. mason the star of chicken soup he 's also the <unk> of a <unk> tradition dating back to duck soup and he 's currently a man in hot water 
 here in neutral language is the <unk> of mr. mason 's remarks quoted first in the village voice while he was a paid spokesman for the rudolph giuliani mayoral campaign and then in newsweek after he and the campaign <unk> company 
 mr. mason said that many jewish voters feel guilty toward blacks so they support black candidates <unk> 
 he said that many black voters feel bitter about racial discrimination so they too support black candidates <unk> 
 he said that <unk> have contributed more to black causes over the years than vice <unk> 
 of course mr. mason did not use neutral language 
 as a <unk> of ethnic humor from the old days on the <unk> belt live television and the <unk> circuit mr. mason <unk> reached for the <unk> 
 he said <unk> were sick with <unk> and he called david dinkins mr. giuliani 's black opponent a fancy <unk> with a <unk> 
 if mr. mason had used less <unk> language to <unk> his <unk> analysis of the voting behavior of his fellow new <unk> would the water be quite so hot 
 it probably would because few or none of the people upset by mr. mason 's remarks have bothered to <unk> between the substance of his comments and the fact that he used <unk> language 
 in addition some of mr. mason 's critics have implied that his type of ethnic humor is itself a form of <unk> 
 for example the new york state counsel for the <unk> said that mr. mason is like a <unk> 
 people are fast leaving the place where he is stuck 
 these critics fail to <unk> between the type of ethnic humor that aims at <unk> another group such as polish jokes and the type that is <unk> aiming <unk> as well as <unk> 
 the latter typically is the humor of the <unk> and it was <unk> by both blacks and <unk> on the <unk> and <unk> stage as a means of <unk> their white and <unk> audiences along with themselves 
 in the hands of a <unk> like <unk> bruce this <unk> <unk> could cut both the <unk> and the audience to <unk> 
 but <unk> by a pro like <unk> mason it is a <unk> form of <unk> 
 why <unk> 
 because despite all the media <unk> about comedy and politics not <unk> they are similar in one respect both can serve as <unk> for easing <unk> and <unk> the <unk> of groups in conflict 
 that 's why it 's dangerous to have <unk> thought police on college <unk> and elsewhere <unk> all critical mention of group differences 
 as elizabeth <unk> wrote in the new york times just before the mason <unk> perhaps <unk> would not <unk> over with such intensity if honest differences were allowed to <unk> 
 the question is if group conflicts still exist as <unk> they do and if mr. mason 's type of ethnic humor is <unk> then what other means do we have for letting off steam 
 do n't say the tv <unk> because that happens to be a <unk> that in its desperate need to attract everybody and <unk> nobody resembles politics more than it does comedy 
 it is true that the best <unk> do allow group differences to <unk> <unk> vs. blue-collar <unk> in <unk> children vs. adults in the cosby show 
 but these are not the differences that make <unk> 
 in chicken soup mr. mason plays <unk> a jewish <unk> <unk> <unk> lynn <unk> an irish widow and mother of three against the wishes of his mother <unk> <unk> and her brother michael <unk> <unk> 
 it 's worth noting that both <unk> <unk> are <unk> 
 at least they both speak with strong <unk> as do <unk> and <unk> 
 it could n't be more obvious that chicken soup is being made from an old <unk> 
 and a safe one imagine if the <unk> in question were between an orthodox <unk> and a member of the nation of <unk> 
 back in the 1920s the play and movie versions of <unk> 's irish rose made the theme of <unk> between the <unk> <unk> of jewish and irish <unk> so popular that its author anne <unk> lost a <unk> suit on the grounds that the plot has entered the public <unk> 
 and it has remained there as <unk> by its <unk> in a N cbs <unk> called <unk> <unk> <unk> whose sole <unk> was that it led to the <unk> marriage of meredith <unk> and david <unk> 
 clearly the question with chicken soup is not whether the pot will <unk> over but whether it will <unk> at all 
 so far the <unk> have been few and far between 
 part of the problem is the tendency of all <unk> ever since the <unk> days of norman <unk> to <unk> about social issues 
 to some extent this tendency emerges whenever the show tries to <unk> us about ethnic <unk> by <unk> them 
 for instance michael <unk> <unk> not because he 's a <unk> jewish businessman but because he <unk> his <unk> job as a salesman in order to become a social worker 
 even more <unk> is the <unk> between <unk> <unk> and mr. mason 's comic <unk> 
 the best moments in the show occur at the beginning and the end and occasionally in the middle when mr. mason <unk> into his <unk> mode and starts <unk> out that old-fashioned jewish <unk> to other people as well as to himself 
 but too often these <unk> lack spark because this <unk> like all <unk> is <unk> about <unk> mr. mason 's stock in trade ethnic differences 
 i 'm not suggesting that the producers start putting together episodes about topics like the <unk> dispute over the <unk> <unk> at <unk> 
 that issue like racial <unk> in new york city will have to cool down not heat up before it can <unk> 
 but i am suggesting that they stop requiring mr. mason to <unk> his classic <unk> with some line about <unk> for other people that would sound <unk> on the <unk> of miss america 
 at your age <unk> you ought to know that you ca n't make soup without turning up the <unk> 
 the official white house reaction to a plunge in stock prices has a <unk> history of calm right up through friday 
 treasury secretary nicholas brady said in a statement friday that the stock-market decline does n't signal any fundamental change in the condition of the economy 
 the economy he added remains <unk> and the outlook is for continued moderate growth 
 sound familiar 
 here 's what ronald reagan said after the N crash the underlying economy remains sound 
 there is nothing wrong with the economy all the <unk> are up 
 heard that before 
 after the N crash herbert <unk> said the fundamental business of the country is on a sound and <unk> basis 
 james robinson N years old was elected president and chief executive officer of this maker of magnetic recording heads for disk drives 
 he has been president and chief executive officer of <unk> electronics corp. a division of north american <unk> corp. itself a subsidiary of n.v <unk> of the netherlands 
 charles j. lawson jr. N who had been acting chief executive since june N will continue as chairman 
 the former president and chief executive eric w. <unk> resigned in june 
 the senate 's decision to approve a <unk> deficit-reduction bill without a capital-gains tax cut still leaves open the possibility of <unk> a gains tax reduction this year 
 late friday night the senate voted N to approve an estimated $ N billion measure that had been stripped of hundreds of provisions that would have widened rather than narrowed the federal budget deficit 
 lawmakers drastically <unk> the bill to blunt criticism that it was bloated with special-interest tax breaks and spending increases 
 we 're putting a deficit-reduction bill back in the category of being a deficit-reduction bill said senate budget committee chairman james <unk> d. <unk> 
 but senate supporters of the <unk> legislation said that other bills would soon be moving through congress that could carry some of the measures that had been cast aside including a capital-gains tax cut 
 in addition the companion deficit-reduction bill already passed by the house includes a capital-gains provision 
 house-senate negotiations are likely to begin at <unk> and last for a while 
 no one can predict exactly what will happen on the house side said senate minority leader robert dole r. <unk> 
 but he added i believe republicans and democrats will work together to get capital-gains reform this year 
 white house budget director richard darman told reporters yesterday that the administration would n't push to keep the capital-gains cut in the final version of the bill 
 we do n't need this as a way to get capital gains he said 
 house budget committee chairman leon <unk> d. calif said in an interview if that 's the signal that comes from the white house that will help a great deal 
 the senate 's decision was a setback for president bush and will make approval of a capital-gains tax cut less certain this year 
 opponents of the cut are playing <unk> 
 senate majority leader george mitchell d. maine said he was confident that any house-senate agreement on the deficit-reduction legislation would n't include a capital-gains tax cut 
 and a senior aide to the house ways and means committee where tax legislation <unk> said there are n't any plans to produce another tax bill that could carry a gains tax cut this year 
 one obvious place to <unk> a capital-gains tax cut and perhaps other popular items stripped from the deficit-reduction bill is the legislation to raise the federal borrowing limit 
 such legislation must be enacted by the end of the month 
 the senate bill was <unk> back in an attempt to speed deficit-reduction through congress 
 because the legislation has n't been completed president bush has until midnight tonight to enact across-the-board spending cuts mandated by the gramm-rudman deficit-reduction law 
 senators hope that the need to avoid those cuts will pressure the house to agree to the <unk> bill 
 the house appears reluctant to join the senators 
 a key is whether house republicans are willing to <unk> to their senate colleagues ' decision to drop many pet provisions 
 although i am encouraged by the senate action said chairman dan <unk> d. ill of the house ways and means committee it is uncertain whether a clean bill can be achieved in the <unk> conference with the senate 
 another big question <unk> over the debate is what president bush thinks 
 he has been <unk> a <unk> bill without a guaranteed vote on his capital-gains tax cut 
 but republican senators saw no way to overcome a procedural hurdle and <unk> the N votes needed to win the capital-gains issue on the floor so they went ahead with the <unk> bill 
 the senate bill was stripped of many popular though <unk> provisions a number of which are included in the house-passed bill 
 these include a child-care initiative and <unk> of <unk> tax breaks for low-income housing and <unk> expenditures 
 also missing from the senate bill is the house 's repeal of a law called section N that <unk> companies to give <unk> workers comparable health benefits to top paid executives 
 one <unk> provision that was originally in the senate bill but was cut out because it lost money was the proposal by chairman lloyd <unk> d. texas of the senate finance committee to expand the deduction for individual retirement accounts 
 mr. <unk> said he hopes the senate will consider that measure soon 
 to the <unk> of some doctors the bill dropped a plan passed by the finance committee that would have <unk> the entire <unk> system under medicare 
 to the <unk> of many low-income people efforts to boost medicaid funding especially in rural areas also were <unk> 
 asked why senators were giving up so much new mexico sen. pete <unk> the ranking republican on the senate budget committee said we 're looking like <unk> 
 things had just gone too far 
 sen. dole said that the move required sacrifice by every senator 
 it worked others said because there were no exceptions all <unk> provisions were <unk> 
 the senate also dropped a plan by its finance committee that would have increased the income <unk> beyond which senior citizens have their social security benefits reduced 
 in addition the bill dropped a plan to make permanent a N N <unk> tax on long-distance telephone calls 
 it no longer includes a plan that would have <unk> what remains of the <unk> method of accounting which is used by military contractors to reduce their tax burden 
 it also drops a provision that would have permitted corporations to use excess pension funds to pay health benefits for current <unk> 
 also <unk> was a <unk> increase in the maximum <unk> safety and health administration penalties which would have raised $ N million in fiscal N 
 a provision that would have made the social security administration an independent agency was <unk> 
 the approval of the senate bill was especially sweet for sen. mitchell who had proposed the streamlining 
 mr. mitchell 's relations with budget director darman who pushed for a capital-gains cut to be added to the measure have been <unk> since mr. darman chose to <unk> the maine democrat and deal with other lawmakers earlier this year during a dispute over drug funding in the fiscal N supplemental spending bill 
 the deficit reduction bill contains $ N billion in tax increases in fiscal N and $ N billion over five years 
 the <unk> provisions which affect mostly corporations would 
 prevent companies that have made leveraged buy-outs from getting federal tax refunds resulting from losses caused by interest payments on debt issued to finance the buy-outs effective aug. N N 
 require mutual funds to include in their taxable income dividends paid to them on the date that the dividends are declared rather than received effective the day after the tax bill is enacted 
 close a <unk> regarding employee stock ownership plans effective june N N that has been <unk> by investment bankers in corporate takeovers 
 the measure <unk> a N N exclusion given to banks on the interest from loans used to acquire securities for an <unk> if the <unk> owns less than N N of the employer 's stock 
 curb junk bonds by ending tax benefits for certain securities such as zero-coupon bonds that postpone cash interest payments 
 raise $ N million by <unk> for one year an automatic reduction in airport and <unk> taxes 
 speed up the collection of the payroll tax from large companies effective august N 
 impose a tax on <unk> chemicals such as those used in air <unk> and in <unk> beginning at $ N a pound starting next year 
 <unk> income taxes from the <unk> of certain farm workers currently exempt from <unk> 
 change the collection of gasoline <unk> taxes to weekly from <unk> effective next year 
 restrict the ability of real estate owners to escape taxes by <unk> one piece of property for another instead of selling it for cash 
 increase to $ N a person from $ N the international <unk> departure tax and impose a $ <unk> tax on international departures by commercial ships 
 the measure also includes spending cuts and increases in federal fees 
 among its provisions 
 reduction of medicare spending in fiscal N by some $ N billion in part by curbing increases in <unk> to physicians 
 the plan would impose a brief freeze on physician fees next year 
 removal of the u.s. postal service 's operating budget from the federal budget reducing the deficit by $ N billion 
 a similar provision is in the house version 
 authority for the federal aviation administration to raise $ N million by charging fees for commercial <unk> rights at new york 's <unk> and john f. kennedy international airports <unk> international airport in chicago and national airport in washington 
 increases in nuclear regulatory commission fees totaling $ N million 
 direction to the u.s. coast guard to collect $ N million from users of coast guard services 
 raising an additional $ N million by increasing existing federal communications commission fees and penalties and establishing new fees for <unk> radio operators ship stations and mobile radio facilities 
 john e. <unk> contributed to this article 
 in response to your overly optimistic <unk> piece on how long unemployment lasts people patterns sept. N i am in the communications field above entry level 
 i was laid off in august N and after a <unk> and <unk> job search was hired in august N 
 my unemployment insurance ran out before i found a job i found cutbacks and layoffs in many companies 
 the statistics quoted by the new census bureau report <unk> from N to N are out of date certainly as an average for the northeast and possibly for the rest of the country 
 i think what bothered me most about the piece was that there seemed to be an underlying attitude to tell your readers all is well if you 're getting laid off do n't worry and if you 're <unk> it 's a seller 's market 
 to top it off you <unk> the <unk> showing the average number of months in a job search as time off 
 are you <unk> 
 looking for a job was one of the most anxious periods of my life and is for most people 
 your paper needs a serious reality check 
 <unk> <unk> 
 cambridge mass 
 bull <unk> information systems inc. is a u.s. <unk> unit of cie. des machines bull 
 in friday 's edition the name of the unit was misstated 
 moody 's investors service said it reduced its rating on $ N million of subordinated debt of this beverly hills calif. thrift citing turmoil in the market for <unk> high-yield securities 
 the agency said it reduced its rating on the thrift 's subordinated debt to b-2 from <unk> and will keep the debt under review for possible further downgrade 
 columbia savings is a major holder of so-called junk bonds 
 new federal legislation requires that all thrifts <unk> themselves of such speculative securities over a period of years 
 columbia savings officials were n't available for comment on the downgrade 
 franklin savings association <unk> kan. 
 moody 's investors service inc. said it downgraded its rating to b-2 from <unk> on less than $ N million of this thrift 's senior subordinated notes 
 the rating concern said franklin 's troubled diversification record in the securities business was one reason for the downgrade citing the troubles at its <unk> rothschild subsidiary and the possible sale of other subsidiaries 
 they perhaps had concern that we were getting out of all these said franklin president <unk> h. hall 
 i think it was a little <unk> on their part 
 just when it seemed safe to go back into stocks wall street suffered another severe attack of nerves 
 does this signal another black monday is coming 
 or is this an extraordinary buying opportunity just like oct. N N eventually turned out to be 
 here 's what several leading market experts and money managers say about friday 's action what happens next and what investors should do 
 joseph <unk> 
 i 'm the only one who said there would be an october massacre all through late august and september says mr. <unk> once a widely followed market <unk> and still a well-known newsletter writer 
 everyone will tell you that this time is different from N he says 
 well in some ways it is different but technically it is just the same 
 if you 're a <unk> you <unk> the signals 
 right now they 're telling me to get the hell out and stay out 
 i see no major support until N 
 i see a possibility of going to N this month 
 mr. <unk> says he would n't even think of buying until at least N to N stocks have hit 52-week lows about N stocks hit new lows friday 
 most people he says have no idea what a massacre pattern looks like 
 <unk> <unk> 
 a <unk> analyst with shearson lehman hutton inc. ms. <unk> had warned clients to take their money out of the market before the N crash 
 friday 's big drop she says was not a crash 
 this was an october massacre like those that occurred in N and N 
 now as in those two years her stock market indicators are positive 
 so she thinks the damage will be short-lived and contained 
 those <unk> lasted one to four weeks and took the market N N down she says 
 this is exactly the same thing as far as i 'm concerned 
 thus she says if the dow jones industrial average dropped below N it would just be a <unk> 
 my advice is to buy 
 as she <unk> it the average stock now sells for about N times companies ' earnings 
 she says that ratio could climb to N given current interest rates and still be within the range of fair value 
 <unk> davis 
 friday 's fall marks the start of a bear market says mr. davis president of <unk> davis research inc 
 but mr. davis whose views are widely respected by money managers says he expects no <unk> crash 
 there was a unique combination in N he says 
 margin debt was at a record high 
 there was tremendous public enthusiasm for stock mutual funds 
 the main thing was portfolio insurance a mechanical trading system intended to protect an investor against losses 
 a hundred billion dollars in stock was subject to it 
 in N such selling contributed to a <unk> effect 
 today could even be an up day mr. davis says if major brokerage firms agree to <unk> from program trading 
 over the next several months though he says things look bad 
 i think the market will be heading down into november he says 
 we will probably have a year-end rally and then go down again 
 sort of a <unk> bear market 
 he expects the downturn to carry the dow jones industrial average down to around N sometime next year 
 that would be a normal bear market he says 
 i guess that 's my forecast 
 leon g. <unk> 
 i do n't think the market is going through another october <unk> 
 i do n't think that 's the case at all says mr. <unk> a partner at goldman sachs & co. and chairman of goldman sachs asset management 
 mr. <unk> sees this as a good time to pick up bargains but he does n't think there 's any need to rush 
 i expect the market to open weaker monday but then it should find some stability 
 he <unk> off several major differences between now and two years ago 
 unlike N interest rates have been falling this year 
 unlike N the dollar has been strong 
 and unlike N the economy does n't appear to be in any danger of <unk> 
 but the economy 's slower growth this year also means the outlook for corporate profits is n't good he says 
 so it 's a very mixed bag 
 thus he concludes this is not a good environment to be fully invested in stocks 
 if i had come into friday on margin or with very little cash in the portfolios i would not do any buying 
 but we came into friday with a conservative portfolio so i would look to do some modest buying on behalf of clients 
 we 're going to look for some of the <unk> companies that got <unk> friday 
 john kenneth <unk> 
 this is the latest <unk> of the capacity of the financial community for <unk> <unk> says mr. <unk> an economist 
 i see this as a reaction to the whole junk bond explosion he says 
 the explosion of junk bonds and takeovers has <unk> a lot of <unk> securities in the hands of investors and loaded the corporations that are the <unk> of takeovers or feared takeovers with huge amounts of debt rather than equity 
 this has both made investors uneasy and the corporations more vulnerable 
 nevertheless he says a depression does n't appear likely 
 there is more <unk> in the economy at large than we commonly <unk> he says 
 it takes more error now to have a major depression than back in the <unk> much as the financial community and the government may try 
 mario <unk> 
 new york money manager mario <unk> an expert at <unk> takeover candidates says that takeovers are n't totally gone 
 companies are still going to buy companies around the world he says 
 examples are ford looking at jaguar bellsouth looking at lin broadcasting 
 these sorts of takeovers do n't require junk bonds or big bank loans to finance them so mr. <unk> figures they will continue 
 the market was up N N since president bush took office mr. <unk> says so a correction was to be expected 
 he thinks another crash is unlikely and says he was <unk> at selected stocks during friday 's plunge 
 stocks that were thrown out just on an emotional basis are a great opportunity this week for guys like me he says 
 jim rogers 
 it seems to me that this is the <unk> that has finally <unk> the balloon says mr. rogers a professor of finance at columbia university and former <unk> of one of the most successful hedge funds in history quantum fund 
 he sees economic problems financial problems ahead for the u.s. with a fairly strong possibility of a recession 
 friday you could n't sell dollars he says 
 dealers would give you a quote but then refuse to make the trade 
 if the dollar stays weak he says that will add to <unk> pressures in the u.s. and make it hard for the federal reserve board to ease interest rates very much 
 mr. rogers wo n't decide what to do today until he sees how the london and tokyo markets go 
 he recommends that investors sell <unk> stocks but hang on to some other stocks especially utilities which often do well during periods of economic weakness 
 frank <unk> 
 many people now claim to have predicted the N crash 
 <unk> newsletter writer francis <unk> <unk> actually did it he stated in writing in september N that the dow jones industrial average was likely to decline about N points the following month 
 mr. <unk> says what happens now will depend a good deal on the federal reserve board 
 if it promptly cuts the discount rate it charges on loans to banks he says that could quiet things down 
 if not we could go to N very soon 
 frank w. <unk> 
 stock prices would still have to go down some additional amount before we become positive on stocks says mr. <unk> president and managing director of renaissance investment management inc. in cincinnati 
 renaissance which manages about $ N billion drew stiff criticism from many clients earlier this year because it pulled entirely out of stocks at the beginning of the year and thus missed a strong rally 
 renaissance is keeping its money entirely in cash equivalents primarily u.s. treasury bills 
 <unk> probably are the right place to be he says 
 regarding the oct. N letter to the editor from rep. tom <unk> chairman of the house subcommittee on employment and housing alleging 
 N that your sept. N editorial <unk> committees was <unk> inaccurate and deliberately misleading 
 i thought your editorial was <unk> accurate and deliberately <unk> 
 N that mr. <unk> supported the rights of the witnesses to take the fifth amendment 
 yes he did 
 as i watched him on <unk> i heard him speak those lovely words about the bill of rights which he quotes from the <unk> of the hearings 
 he did repeat those nice <unk> several times as an indication of his support for the constitution 
 he used about N words defending the witnesses ' constitutional rights 
 unfortunately by my rough guess he used better than N words <unk> <unk> on the witnesses for exercising the fifth 
 he <unk> his <unk> of constitutional meat between large <unk> of <unk> commentary 
 as your editorial <unk> pointed out samuel <unk> former hud secretary and <unk> wilson mr. <unk> 's former aide are currently being held up to <unk> for taking the fifth amendment 
 that certainly is not the supposed distorted reading indicated by mr. <unk> 
 N that his committee does not deal with any possible criminal activity at hud 
 my colleagues and i fully realize we are not a court etc 
 <unk> <unk> 
 by any reasonable man <unk> mr. <unk> and his colleagues have a whole bunch of people tried and convicted 
 apparently their verdict is in 
 right now they 're pursuing evidence 
 that 's not a bad way to proceed just somewhat different from standard american practice 
 how was that practice referred to when i was in school 
 <unk> yes something called a star chamber 
 of course mr. <unk> <unk> protest that his subcommittee simply seeks information for legislative change 
 no doubt that 's partially true 
 everything that mr. <unk> says in his letter is partially true 
 he 's right about his subcommittee 's responsibilities when it comes to obtaining information from prior hud officials 
 but if his explanation of <unk> is true why is his investigation so <unk> as to identify criminal activity 
 why not simply questions designed to identify sources and causes of waste and <unk> 
 such as what happened when congress wanted to know about $ N toilet seats or whatever they supposedly cost 
 no mr. <unk> 's complaints simply wo n't wash 
 N that the journal <unk> the <unk> fraud waste <unk> <unk> and abuse of the public that took place while mr. <unk> was secretary of hud etc. and so forth 
 no to my mind the journal did not defend <unk> fraud waste <unk> <unk> and abuse of the public trust 
 it defended appropriate constitutional <unk> and practical common sense 
 the problem which the journal so <unk> pointed out in a number of articles is not the likes of mr. <unk> who after all is really a bit player on the stage but the attempt by congress to enhance itself into a <unk> body 
 of course we 've also got a judiciary that seeks the same objective 
 the system is the problem not an individual member 
 individuals can always have their hands <unk> 
 it 's when such <unk> does n't occur that we 've got trouble 
 i do not by any means defend hud management 
 but i think the kind of congressional investigation that has been pursued is a far greater danger to american <unk> of liberty and freedom than any <unk> and yes maybe <unk> within hud could possibly generate 
 the last time i saw a similar congressional hearing was when <unk> <unk> joe <unk> did his work 
 raymond <unk> 
 <unk> n.j 
 i disagree with the statement by mr. <unk> that one should not draw an adverse <unk> against former hud officials who <unk> their fifth amendment privilege against <unk> in congressional hearings 
 the fifth amendment states in relevant part that no person shall be <unk> in any criminal case to be a witness against himself 
 this privilege against <unk> <unk> the drawing of an adverse <unk> against a criminal defendant who chooses not to testify 
 thus in a criminal case a prosecutor can not comment on a defendant 's failure to testify nor can the defendant be <unk> to take the stand as a witness thus forcing him to take the fifth 
 the privilege however has been limited in <unk> with its plain language to protect the defendant in criminal matters only 
 the supreme court and some states have specifically recognized that the fifth amendment does not preclude the <unk> where the privilege is claimed by a party to a civil cause 
 <unk> v. <unk> N u.s. N N 
 thus in a civil case a defendant may be called as a witness he may be forced to testify or take the fifth and his taking of the fifth may permit the drawing of an adverse <unk> against him in the civil matter 
 he may take the fifth in a civil matter only if he has a good faith and <unk> belief that his testimony may subject him to criminal prosecution 
 allowing the defendant to take the fifth in a civil matter is not based on a constitutional right to refuse to testify where one 's testimony <unk> him in the civil matter but because the testimony in the civil matter could be <unk> used against him in a subsequent criminal prosecution 
 <unk> the risk of such prosecution a court may order the defendant to testify 
 thus when mr. <unk> asserted the fifth in a <unk> proceeding particularly after presumably receiving extensive advice from legal counsel one must conclude that he held a <unk> <unk> belief that his testimony could be used against him in a subsequent criminal prosecution 
 the subcommittee congress and the american public have every right to draw the adverse <unk> and to <unk> with mr. <unk> 's own belief that his testimony could help <unk> him of a crime 
 drawing the adverse <unk> in a <unk> congressional hearing does not <unk> the fifth amendment shield against <unk> 
 clark s. <unk> jr 
 <unk> park <unk> 
 it was friday the 13th and the stock market plummeted nearly N points 
 just a <unk> 
 or is <unk> fear of the number N justified 
 in <unk> a so-called friday the 13th effect has been set up and shot down by different professors 
 robert <unk> and <unk> <unk> professors of finance at the university of miami found evidence that the market is spooked by friday the 13th 
 but their study which <unk> the N period has since been shown to be <unk> by an <unk> choice of data 
 in the <unk> the market took falls nine times in a row on friday the <unk> 
 but the date tends to be a plus not a minus for stocks according to yale <unk> a <unk> of stock market <unk> 
 another study found that the N <unk> the 13th in the N period had higher than average returns higher even than <unk> in general which tend to be strong days for stock prices 
 on the only other friday the 13th this year the dow jones industrial average rose about four points 
 professor <unk> says the original study titled friday the 13th part <unk> was published <unk> 
 in a similar <unk> he adds that the anniversary of the N crash and saturday 's full moon could have played a part too in friday 's market activity 
 <unk> of those during the N crash that as stock prices plummeted and trading activity <unk> some phone calls to market makers in over-the-counter stocks went <unk> 
 we could n't get dealers to answer their phones said robert king senior vice president of otc trading at <unk> co. in atlanta 
 it was like the friday before black monday two years ago 
 whether <unk> phone calls had any effect or not nasdaq stocks sank far less than those on the new york and american exchanges 
 nonetheless the nasdaq composite index suffered its biggest point decline of the year and its sixth worst ever <unk> N or N N to N 
 ten points of the drop occurred during the last N minutes of trading 
 by comparison the new york stock exchange composite tumbled N N friday and the american stock exchange composite fell N N 
 on oct. N N the nasdaq composite fell N points or N N followed by its devastating <unk> or N N slide three days later 
 nasdaq volume friday totaled N million shares which was only the fifth busiest day so far this year 
 the <unk> record of N million shares was set on oct. N 
 there was n't a lot of volume because it was just impossible to get stock moved said <unk> <unk> <unk> president of <unk> <unk> <unk> a new york company that makes markets in thousands of otc issues 
 most of the complaints about <unk> phone calls came from regional brokers rather than individual investors 
 mr. king of <unk> and others were quick to add that they believe the problem stemmed more from traders ' inability to handle the volume of calls rather than a <unk> attempt to avoid making trades 
 the subject is a <unk> one for nasdaq and its <unk> companies which were widely criticized two years ago following complaints from investors who could n't reach their brokers or trade in the chaos of the crash 
 peter dapuzzo head of retail equity trading at shearson lehman hutton declared it was the last hour of trading on a friday 
 there were too many phones ringing and too many things happening to expect market makers to be as efficient as robots 
 it was n't <unk> we were all busy 
 james <unk> head of otc trading at hambrecht & quist in san francisco said it was just like two years ago 
 everybody was trying to do the same thing at the same time 
 <unk> mullins the otc trading chief at dean witter reynolds in new york said <unk> that his company executed every order it received by the close of trading 
 but he added you can only take one call at a time 
 market makers keep supplies of stock on hand to maintain orderly trading when imbalances occur 
 on days like friday that means they must buy shares from sellers when no one else is willing to 
 when selling is so <unk> prices fall <unk> and fast 
 two years ago faced with the possibility of heavy losses on the stocks in their inventories market makers themselves began <unk> shares <unk> the slide in otc stock prices 
 on friday some market makers were selling again traders said 
 but with profits sagging on wall street since the crash companies have kept smaller share <unk> on hand 
 mr. <unk> of hambrecht & quist said some prices fell without trades taking place as market makers kept dropping the prices at which they would buy shares 
 everyone was hitting everyone else 's bid he said 
 so while otc companies incurred losses on friday trading officials said the damage was n't as bad as it was in N 
 two years ago we were carrying huge inventories and that was the big <unk> 
 i do n't know of anyone carrying big inventories now said mr. king of <unk> 
 tony <unk> head of equity trading at <unk> <unk> & <unk> in minneapolis said that <unk> <unk> actually made money on friday 
 it helped that his inventory is a third smaller now than it was two years ago he said 
 joseph <unk> president of the national association of securities dealers which oversees the nasdaq computerized trading system said that despite the rush of selling he never considered the situation an emergency 
 the pace of trading was orderly he said 
 nasdaq 's small order execution system worked <unk> as did the automated system for larger trades according to mr. <unk> 
 nevertheless the shock of another steep plunge in stock prices undoubtedly will shake many investors ' confidence 
 in the past the otc market <unk> on a firm base of <unk> participation 
 because nasdaq 's trading volume has n't returned to <unk> levels traders and otc market officials hope the damage wo n't be permanent 
 but they are worried 
 we were just starting to get the public 's confidence back <unk> mr. mullins of dean witter 
 more troubling is the prospect that the overall collapse in stock prices could permanently erode the base of <unk> support the otc market was struggling to rebuild in the wake of the october N crash 
 mr. <unk> of <unk> <unk> says some action from government policy makers would <unk> investor fears 
 it wo n't take much more to scare the hell out of retail investors he says 
 the sellers on friday came from all corners of the otc market big and small institutional investors as well as individual investors and market makers 
 but <unk> traders said the sell orders generally ranged from N shares to N shares compared with blocks of N shares or more two years ago 
 shearson 's mr. dapuzzo said retail investors nervously sold stock friday and never returned to <unk> 
 institutional investors which had been selling stock throughout last week to lock in <unk> gains made through the third quarter were <unk> 
 we had a good amount of selling from institutions but not as much panic mr. dapuzzo said 
 if they could n't sell some of them put the shares back on the shelf 
 in addition he said some bigger institutional investors placed bids to buy some otc stocks whose prices were beaten down 
 in addition mr. dapuzzo said computer-guided program selling of otc stocks in the russell index of N small stocks and the standard & poor 's 500-stock index sent <unk> waves through the market 
 nasdaq 's biggest stocks were <unk> 
 the nasdaq N index of the largest <unk> issues including the big otc technology issues tumbled N N or N to N 
 the nasdaq financial index of giant insurance and banking stocks dropped N N or N to N 
 the otc market has only a handful of <unk> stocks 
 but they fell sharply 
 mccaw cellular communications for instance has offered to buy lin broadcasting as well as metromedia 's new york city cellular telephone interests and in a separate transaction sell certain mccaw properties to contel cellular 
 mccaw lost N N or N N to N 
 lin broadcasting dropped N N or N N to N N 
 the turnover in both issues was roughly normal 
 on a day when negative <unk> news did n't sit well with investors commercial <unk> a maker of engineered metal parts said haas & partners advised it that it does n't plan to pursue its previously reported $ <unk> bid to buy the company 
 commercial <unk> plummeted N to N 
 the issues of companies with ties to the junk bond market also tumbled friday 
 on the otc market first executive a big buyer of the high-risk high-yield issues slid N to N N 
 among other otc issues intel dropped N N to N N <unk> transportation lost N N to N N the american depositary receipts of jaguar were off N to N N mci communications slipped N N to N N apple computer fell N to N N and <unk> dropped N N to N N 
 friday october N N 
 the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions 
 prime rate 
 N N N 
 the base rate on corporate loans at large u.s. money center commercial banks 
 federal funds 
 N N N high N N N low N N N near closing bid N N N offered 
 reserves traded among commercial banks for overnight use in amounts of $ N million or more 
 source fulton prebon u.s.a inc 
 discount rate 
 N N 
 the charge on loans to depository institutions by the new york federal reserve bank 
 call money 
 N N N to N N 
 the charge on loans to brokers on stock exchange collateral 
 commercial paper placed directly by general motors acceptance corp. 
 N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days 
 commercial paper 
 high-grade unsecured notes sold through dealers by major corporations in multiples of $ N 
 N N N days N N N days N N N days 
 certificates of deposit 
 N N one month N N two months N N three months N N six months N N one year 
 average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more 
 the minimum unit is $ N 
 typical rates in the secondary market 
 N N one month N N three months N N six months 
 bankers acceptances 
 N N N days N N N days N N N days N N N days N N N days N N N days 
 negotiable bank-backed business credit instruments typically financing an import order 
 london late eurodollars 
 N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months 
 london interbank offered rates libor 
 N N N one month N N N three months N N N six months N N N one year 
 the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks 
 foreign prime rates 
 canada N N germany N N japan N N switzerland N N britain N N 
 these rate indications are n't directly comparable lending practices vary widely by location 
 treasury bills 
 results of the tuesday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million 
 N N N weeks N N N weeks 
 federal home loan mortgage corp freddie mac 
 posted yields on 30-year mortgage commitments for delivery within N days 
 N N standard conventional <unk> mortgages N N N N rate capped one-year adjustable rate mortgages 
 source telerate systems inc 
 federal national mortgage association fannie mae 
 posted yields on N year mortgage commitments for delivery within N days priced at par 
 N N standard conventional fixed-rate mortgages N N N rate capped one-year adjustable rate mortgages 
 source telerate systems inc 
 merrill lynch ready assets trust 
 N N 
 annualized average rate of return after expenses for the past N days not a forecast of future returns 
 pension funds insurers and other <unk> of the investing world said they began <unk> up stocks during friday 's market rout 
 and they plan to buy more today 
 <unk> or <unk> many giant institutional investors appear to be fighting the latest war by applying the lesson they learned in the october N crash buying at the bottom pays off 
 to be sure big investors might put away their <unk> in a hurry if stocks open sharply lower today 
 they could still panic and bail out of the market 
 but their N performance indicates that they wo n't abandon stocks unless conditions get far worse 
 last time we got <unk> for going out and buying stocks when the panic was the worst said john w. rogers president of chicago-based <unk> capital management inc. which manages $ N billion of stocks 
 mr. rogers spent half his cash on hand friday for our favorite stocks that have fallen apart 
 he expects to invest the rest if the market <unk> further 
 <unk> portfolio manager james craig was n't <unk> when friday 's rout <unk> $ N million from the value of the $ N million <unk> fund he oversees 
 i waited to make sure all the program trades had kicked through he said 
 then he jumped into the market 
 i spent $ N million in the last half-hour 
 other money managers also opened their <unk> 
 i was buying at the close friday and i 'll be buying again because i know we 're getting good value said frederick a. <unk> president of <unk> asset management inc. greenwich conn 
 there is no <unk> on the fundamental level for this crash 
 unlike mutual funds which can be forced to sell <unk> when investors rush to withdraw money big investors such as pension funds and insurance companies can decide to ride out market <unk> without <unk> stock 
 most often they do just that because stocks have proved to be the <unk> long-term investment attracting about $ N trillion from pension funds alone 
 if you bought after the crash you did very very well off the bottom said stephen b. <unk> chief investment officer of chicago-based kemper financial services inc 
 the $ N billion california public employees retirement system for one added $ N billion to its stock portfolio two years ago 
 the last crash taught institutional investors that they have to be long-term holders and that they ca n't react to short-term events good or bad said stephen l. <unk> senior vice president for the pension consultants <unk> associates in santa <unk> calif 
 those that pulled out of stocks <unk> it he said so i doubt you 'll see any significant changes in institutional portfolios as a result of friday 's decline 
 stocks as measured by the standard & poor 's 500-stock index have been <unk> performers this year rising N N before friday 's plunge excluding dividends 
 even friday 's slump leaves investors ahead more than N N well above the annual average for stocks over several decades 
 you could go down N points and still have a good year in the market said james d. <unk> president of new york-based <unk> capital corp 
 mr. <unk> however worries that the market could go down N or N points in the next few days 
 it can happen before you can turn around 
 he said he <unk> many parallels with N including the emphasis on takeover stocks and the <unk> of computerized program trading 
 the only thing you do n't have he said is the portfolio insurance phenomenon <unk> on the rest 
 most institutional investors have abandoned the portfolio insurance hedging technique which is widely thought to have <unk> the N crash 
 not really insurance this <unk> was designed to soften the blow of declining stock prices and generate an offsetting profit by selling waves of s&p futures contracts 
 in its <unk> test the $ N billion of portfolio insurance in effect in the N crash did n't work as stock buyers disappeared and stock and futures prices became <unk> 
 even without portfolio insurance market conditions were grim friday money managers said 
 neil <unk> whose new york-based <unk> capital partners had converted N N of its $ N million investment pool to cash in recent months said he was besieged by wall street firms friday asking him to take stock off their hands 
 we got calls from big block houses asking us if we want to make bids on anything said mr. <unk> who happy with his returns on investments <unk> up earlier declined the offers 
 mr. <unk> predicts stocks will appear to stabilize in the next few days before declining again <unk> more investors 
 i think it will be a <unk> <unk> rally he said 
 meanwhile friday brought a <unk> for money managers whose investment styles had put them at odds with the market rally 
 especially <unk> were the short sellers who have been <unk> by this year 's market climb 
 the <unk> sell borrowed shares hoping to profit by replacing them later at a lower price 
 the nation 's largest <unk> operation is <unk> brothers palo alto calif. which said last may that its short positions had shown losses of N N for the year up to that point 
 all that now has changed 
 we 're ahead for the year because of friday said the firm 's kurt <unk> 
 we 're not making a killing but we had a good day 
 food and drug administration spokesman jeff <unk> said the agency has turned over evidence in a criminal investigation concerning <unk> pharmaceuticals inc. to the u.s. attorney 's office in baltimore 
 neither <unk> nor any of the <unk> gardens n.y. company 's officials or employees have been charged with any crimes 
 <unk> won approval to market a version of a blood pressure medicine but acknowledged that it <unk> a <unk> <unk> plc product as its own in tests 
 mr. <unk> also said the fda has asked <unk> pharmaceutical co. to recall at the retail level its <unk> <unk> <unk> 
 but so far the company has n't <unk> with that request the spokesman said 
 <unk> the subject of a criminal investigation by the fda and the inspector general 's office of the health and human services department only agreed to recall two strengths of its version of <unk> as far down as direct customers mostly <unk> mr. <unk> said 
 <unk> of <unk> n.y. earlier began a voluntary recall of both its N <unk> and N <unk> versions of the drug 
 the fda has said it presented evidence it uncovered to the company indicating that <unk> <unk> the <unk> product for its own to gain government approval to sell generic versions of <unk> 
 <unk> has denied that it switched the <unk> product for its own in such testing 
 the west german retailer <unk> deutsche <unk> ag plans to challenge the <unk> of a widely employed anti-takeover defense of companies in the netherlands 
 the eventual court decision could become a landmark in dutch corporate law because the lawsuit <unk> plans to file would be the first to challenge the entire principle and practice of companies issuing voting preferred shares to <unk> trusts to <unk> voting power of common stockholders 
 up to now only specific aspects of these defenses have been challenged though unsuccessfully <unk> 's dutch lawyers noted 
 should the courts <unk> the <unk> of this type of defense <unk> will then ask the court to <unk> such a <unk> maneuver recently deployed by <unk> <unk> <unk> 
 <unk> says the <unk> international food retailer had n't reasonable grounds to issue preferred stock to a friendly trust and thus <unk> the worth and voting power of <unk> and other shareholders 
 speaking through its dutch lawyers <unk> also disclosed it holds a N N stake in <unk> 
 it was previously thought <unk> held a N N stake that was accumulated since july 
 a spokesman for <unk> said his company is confident of its own position and the <unk> of the <unk> issue 
 he termed <unk> 's legal actions as <unk> to international cooperation among european retailers 
 chase manhattan bank chairman <unk> butcher is a conservative banker and a loyal republican but on friday morning he had few kind words for president bush 's economic <unk> 
 there are some very significant issues out there such as the fiscal deficit the trade deficit our relations with japan that have to be the subject of major initiatives he said in an interview 
 i 'd like to see that initiative and i have n't 
 there is n't a big shot an agenda 
 a few hours later the stock market dropped N points 
 politicians tried to finger each other for the blame although many analysts doubt that washington was <unk> responsible for wall street 's woes 
 but mr. butcher 's comments make one thing clear some on wall street wonder if anyone is in charge of economic policy 
 consider this 
 by N p.m. tonight president bush must order $ N billion of automatic across-the-board cuts in government spending to comply with the gramm-rudman budget law 
 the cuts are necessary because congress and the administration have failed to reach agreement on a <unk> bill 
 we simply do n't have strong leadership to try to reduce the deficit and make tough choices house budget committee chairman leon <unk> d. calif said yesterday on nbc news 's meet the press 
 for the last two weeks the bush administration and the federal reserve have been engaged in a <unk> battle over international economic policy 
 the administration has been trying to push the dollar lower the fed has been <unk> 
 one of the things that continues to worry me is this monetary <unk> between the treasury department and the federal reserve board said lawrence <unk> a bear stearns & co. economist on abc 's this week 
 the administration has sent out confusing signals about its response to a recent spate of airline takeovers 
 last month transportation secretary sam skinner forced northwest airlines to reduce a stake held by <unk> royal dutch airlines 
 but he has since run into opposition from the treasury and the white house over that decision 
 and he has kept <unk> on how his decision might affect a bid for united airlines which includes a big stake by british airways plc 
 some analysts say uncertainty about washington 's anti-takeover policy was one reason that financing for the united airlines takeover fell through the event that triggered the market drop 
 in many ways the backdrop to friday 's stock decline is <unk> similar to that of october N 's <unk> crash 
 then as now the budget debate was behind schedule and automatic spending cuts were within days of taking hold 
 the treasury was locked in a battle over international economic policy although at that time it was with west german officials rather than the federal reserve 
 and concern about official actions aimed at takeovers then by the <unk> house ways and means committee rather than the transportation department were making markets nervous 
 the N crash brought the reagan administration and democratic lawmakers to the table for the first budget summit resulting in a two-year plan to reduce the deficit by more than $ N billion even though the deficit actually rose by nearly $ N billion during that period 
 but barring further drops in the market this week a similar outcome does n't seem likely this year 
 lawmakers and administration officials agree that friday 's drop by itself is n't enough to force both sides back to the table to try to reach a deficit-reduction agreement that would be more serious and more far-reaching than last spring 's <unk> plan which still is n't fully implemented 
 one of the biggest reasons that new talks are n't likely to come about is that as everyone learned in N the economy and the market can survive a one-day <unk> tumble 
 everybody thought we were looking at a <unk> of N that we were looking at a recession rep. <unk> said yesterday in an interview 
 that did not happen 
 they learned they could survive it without much problem 
 but administration officials privately agree with mr. <unk> who said a <unk> drop this week is going to force the president and congress to take a much harder look at fiscal policy 
 in that case there will be plenty of blame to go around 
 there is an underlying concern on the part of the american people and there should be that the administration has not gone far enough in cutting this deficit and that congress has been unwilling to cut what the administration asked us to cut said senate finance committee chairman lloyd <unk> d. texas 
 nevertheless it clearly will take more than friday 's 190-point decline to overcome the bitter feelings that have developed between lawmakers and white house budget director richard darman over the capital-gains fight 
 hill democrats are particularly angry over mr. bush 's claim that the capital-gains cut was part of april 's budget accord and his insistence on combining it with the deficit-reduction legislation 
 there is no prospect of any so-called grand compromise or deal next year because the administration simply did n't live up to this year 's deal senate majority leader george mitchell d. maine said yesterday on cbs news 's face the nation 
 during last week 's <unk> on the <unk> bill and the capital-gains issue there were signs that senate republicans and the administration were at odds 
 at the very moment that senate republicans were negotiating a deal to exclude capital gains from the deficit-reduction legislation white house spokesman marlin fitzwater told reporters that it was the president 's policy to include it 
 when an agreement was reached to strip capital gains from the legislation oregon sen. bob packwood the ranking gop member of the <unk> senate finance committee hailed it 
 asked if the administration agreed he <unk> replied the <unk> will have to speak for itself 
 friday 's market tumble could spur action on <unk> the house and senate versions of the deficit-reduction measure a process that is n't expected to begin until tomorrow at the <unk> 
 senate republicans expressed the hope that the house would follow the lead of the senate which on friday agreed to drop a variety of spending measures and tax breaks that would have increased the fiscal N deficit 
 the market needs a strong signal that we 're serious about deficit reduction and the best way to do that is for the house of representatives to strip their bill of similar provisions sen. warren <unk> r. <unk> said yesterday 
 the white house office of management and budget whose calculations determine whether the gramm-rudman targets are met estimated that the house-passed deficit-reduction measure would cut the fiscal N <unk> by $ N billion almost half of the congressional budget office 's estimate of $ N billion 
 rep. <unk> said that <unk> 's figure would still be enough to avoid permanent across-the-board cuts but added we 're getting very close to the margins here 
 no one in washington was willing to take the blame for <unk> friday 's drop in the stock market 
 but some players were quick to seize the moment 
 before the sun had set on friday richard <unk> the <unk> chief economist of the u.s. chamber of commerce issued a statement <unk> the drop in stock prices to the senate decision to postpone action on capital gains 
 investors who had been holding assets in anticipation of a more favorable time to sell were spooked he said 
 there have been many <unk> reasons advanced to support a capital-gains tax cut sen. mitchell said during his television appearance but i suggest that is perhaps more than any of the others 
 the following u.s. treasury corporate and municipal offerings are tentatively scheduled for sale this week according to dow jones capital markets report 
 $ N billion of three-month and six-month bills 
 two-year notes refinancing about $ N billion in maturing debt 
 $ N billion of 52-week bills 
 connecticut light & power co. 
 three million shares of $ N preferred via competitive bidding 
 <unk> crude carriers ltd. 
 four million common shares via salomon brothers inc 
 baldwin technology co. 
 N million class a shares via smith barney harris upham & co 
 blockbuster entertainment corp. 
 $ N million face amount liquid yield option notes via merrill lynch capital markets 
 chase manhattan corp. 
 N million common shares via goldman sachs & co 
 <unk> corp. 
 $ N million convertible debentures via merrill lynch 
 <unk> industries 
 N million common shares via merrill lynch 
 eastern utilities associates 
 N million common shares via painewebber inc 
 employee benefit plans inc. 
 two million common shares via dean witter capital markets 
 <unk> corp. 
 N common shares via goldman sachs 
 <unk> inc. 
 N million common shares via montgomery securities 
 oregon 
 $ N million of general obligation veterans ' tax notes series N via competitive bid 
 washington d.c. 
 $ N million of N general obligation tax revenue notes series <unk> via competitive bid 
 virginia public school authority 
 $ N of school financing bonds N series b N resolution via competitive bid 
 austin texas 
 $ N of various bonds including $ N million hotel <unk> tax revenue bonds series <unk> and $ N million convention center revenue bonds series <unk> via a morgan stanley & co. group 
 california health facilities financing authority 
 $ N million of kaiser <unk> revenue bonds via a painewebber group 
 connecticut 
 $ N million of general obligation capital appreciation bonds college savings plan N series b via a prudential-bache capital funding group 
 pennsylvania higher education facilities authority 
 $ N million of revenue bonds for <unk> university series N via a merrill lynch group 
 tennessee valley authority 
 three billion of power bonds via first boston corp 
 university of medicine and <unk> of new jersey 
 $ N million of series c bonds via a prudential-bache group 
 west virginia <unk> economic development and tourism authority 
 $ N million of parkway revenue bonds series N via a painewebber group 
 san antonio texas 
 $ N million of gas and electric revenue refunding bonds via a first boston group 
 south <unk> health & education facility authority 
 $ N million of rapid city regional hospital bonds via a <unk> <unk> <unk> & <unk> inc. group 
 small investors matched their big institutional <unk> in anxiety over the weekend but most seemed to be taking a <unk> approach and said they were resigned to riding out the latest storm in the stock market 
 i 'm not losing faith in the market said boston lawyer christopher sullivan as he watched the market plunge on a big screen in front of a brokerage firm 
 but he 's not so sure about everyone else 
 i think on monday the small investors are going to panic and sell predicted mr. sullivan whose investments include amr corp. 's american airlines unit and several mutual funds 
 and i think institutions are going to come in and buy 
 i 'm going to hold on 
 if i sell now i 'll take a big loss 
 some <unk> an optimism that had been <unk> when they did n't <unk> the market in N 
 oh i bet it 'll be up N points on monday said <unk> <unk> a <unk> retired <unk> in lexington <unk> 
 mrs. <unk> said her <unk> investment club 's portfolio lost about one-third of its value following the black monday crash but no one got discouraged and we gained that back and more 
 at the annual congress of the national association of investors corp. at the <unk> <unk> hotel in minneapolis the scene was calm 
 some N investors representing investor clubs from around the u.s. were attending when the market started to slide friday 
 but robert <unk> an official of the association said no special <unk> or emergency meetings of the investors ' clubs are planned 
 in fact some of the association 's members long-term <unk> investors welcomed the drop in prices 
 we hope to take advantage of it said john <unk> a member of a los angeles investors ' club 
 he has four stocks in mind to buy if the prices drop to the level he wants 
 not everyone is reacting so <unk> however and many wonder about the long-term implications of what is widely viewed as the cause of friday 's slide reluctance by banks to provide financing for a buy-out of ual corp. parent of united airlines 
 marc <unk> a tampa fla. investment banker said the market drop is one of a tremendous number of signs that the leveraged <unk> era is ending 
 there 's no question that there 's a general <unk> for leverage among lenders 
 mr. <unk> believes however that the market could be stabilized if california investor marvin davis steps back in to the united bidding with an offer of $ N a share 
 <unk> albert a <unk> dallas law student says she 's generally <unk> about the stock market and the takeover activity that seems to fuel it 
 i have this feeling that it 's built on sand she says that the market rises but there 's no foundation to it 
 she and her husband pulled most of their investments out of the market after the N crash although she still owns some texaco stock 
 partly because of concern about the economy and partly because she recently quit her job as a legal assistant to go to school i think at this point we want to be a lot more liquid 
 others wonder how many more of these shocks the small investor can stand 
 we all assumed october <unk> was a one-time shot said san francisco attorney david greenberg 
 we told the little guy it could only happen once in a lifetime come on back 
 now it 's happening again 
 mr. greenberg got out just before the N crash and to his regret never went back even as the market soared 
 this time he 's ready to buy in when the panic wears off 
 still he adds we ca n't have this kind of thing happen very often 
 when the little guy gets frightened the big guys hurt badly 
 merrill lynch ca n't survive without the little guy 
 small investors have <unk> back into the market following black monday but mostly through mutual funds 
 discount brokerage customers have been in the market somewhat but not whole <unk> like they were two years ago says leslie quick jr. chairman of the quick & <unk> discount brokerage firm 
 hugo <unk> senior vice president at charles <unk> corp. says schwab customers have been neutral to cautious recently about stocks 
 individual investors are still angry about program trading mr. <unk> says 
 <unk> <unk> a cornell university finance professor says government regulators will have to more closely control program trading to win back the confidence of the small investor 
 but it 's not only the stock market that has some small investors worried 
 alan <unk> general sales manager of a chrysler dealership in houston said he and his mother have some joint stock investments but the overall economy is his chief worry 
 these high <unk> took a big <unk> today he said in his showroom which is within a few miles of the <unk> dollar homes of some of houston 's <unk> citizens 
 and i can tell you that a high roller is n't going to come in tomorrow and buy a chrysler <unk> by <unk> 
 and finally there were the <unk> 
 i got out in N 
 everything said <unk> <unk> an <unk> ohio plumbing contractor who was visiting chicago and stopped by fidelity investments ' <unk> street office 
 i just stopped by to see how much i would have lost 
 would mr. <unk> ever get back in 
 are you <unk> 
 when it comes to money once <unk> N times shy 
 the crowded field for <unk> computers is about to become a lot more crowded 
 compaq computer corp. 's long-awaited entry today into the notebook field is expected to put immediate heat on others in the market especially zenith electronics corp. the current market leader and on a <unk> of promising <unk> 
 compaq 's series of <unk> <unk> a trend toward <unk> in the personal computer market 
 one manufacturer already has produced a <unk> computer called a <unk> and two others have introduced even smaller <unk> 
 but those machines are still considered <unk> with <unk> only a <unk> could love and screens to match 
 compaq 's <unk> by contrast may be the first in their weight class not to <unk> on features found in much bigger machines 
 analysts say they 're faster and carry more memory than anything else of their size on the market and they 're priced aggressively at $ N to $ N 
 all of this comes in a machine that <unk> only six pounds and fits <unk> into most <unk> 
 in recent months compaq 's competition including zenith toshiba corp. tandy corp. and nec corp. all have introduced <unk> that weigh approximately the same and that are called <unk> perhaps <unk> 
 one analyst noting that most such machines are about two inches thick takes exception to the name 
 this is n't quite a notebook i call it a <unk> he says 
 that ca n't be said of the $ N <unk> computer introduced a few weeks ago by grid systems corp. a unit of tandy 
 instead of a <unk> it features a writing surface an electronic <unk> and the ability to read block printing 
 at N N pounds it may be too <unk> named but it nevertheless opens up the kind of marketing possibilities that make analysts <unk> 
 <unk> are n't far behind 
 <unk> corp. 's portfolio introduced in europe two months ago and in the u.s. in early september <unk> less than a pound costs a mere $ N and runs on three <unk> <unk> yet has the power to run some <unk> and word processing programs 
 some critics however say its ability to run <unk> programs is restricted by a limited memory 
 <unk> computer corp. meanwhile has introduced a much more sophisticated <unk> that can run lotus N and other sophisticated software programs but costs five times as much 
 at stake is what mike <unk> compaq 's president of north america operations calls the <unk> <unk> of the computer industry the search for a real computer in a package so small you can take it everywhere 
 the market is so new nobody knows yet how big it can be 
 i 've had a lot of people trying to sell me services to find out how big it is says tom <unk> director of marketing for grid 
 whether it 's $ N billion or $ N billion it does n't matter 
 it 's huge 
 consider the growth of <unk> which now <unk> N N of all personal computer sales 
 <unk> generally anything under N pounds have become the fastest-growing personal computer segment with sales doubling this year 
 responding to that demand however has led to a variety of <unk> 
 making computers smaller often means <unk> memory 
 it also has <unk> use of the faster more powerful microprocessors found in increasing numbers of desktop machines 
 size and weight considerations also have limited screen displays 
 the competitive <unk> can get pretty <unk> at times 
 a <unk> spokesman for example <unk> the <unk> portfolio because it requires three <unk> while the <unk> needs only two 
 both <unk> are dismissed by notebook makers who argue that they 're too small a problem <unk> also encountered in focus groups admits <unk> <unk> director of marketing 
 <unk> trying to avoid the <unk> label responded with the tag line the <unk> pc a very big computer 
 despite the <unk> few question the <unk> of the move to small machines that do n't make <unk> 
 toward that end experts say the real battle will take place between <unk> players like toshiba zenith and now compaq 
 compaq 's new machines are considered a direct threat to start-up firms like <unk> inc. which introduced in june a computer that like compaq 's uses an intel N microprocessor and has a hard disk drive 
 but the <unk> product is twice as heavy and costs more than compaq 's 
 compaq 's announcement also <unk> trouble for zenith which last year had N N of the u.s. laptop market but recently agreed to sell its computer business to cie. des machines bull the french government-owned computer maker 
 zenith holders will vote in december on the proposed $ N million sale a price that could slip because it is pegged to zenith 's share and sales 
 compaq is already taking aim at zenith 's market share 
 rod <unk> compaq 's president and chief executive officer notes <unk> that zenith 's $ N <unk> uses an <unk> <unk> <unk> disk <unk> compaq 's new machines use the more common N <unk> disk 
 john p. frank president of zenith data systems simply <unk> off such criticism noting that N <unk> <unk> were also <unk> when they first replaced <unk> disks 
 we do n't look at it as not being a standard we look at it as a new standard he argues 
 analysts do n't see it that way 
 i ca n't imagine that you 'll talk to anyone who wo n't tell you this is <unk> for compaq and a <unk> for everyone else says gene <unk> president of professional marketing management inc 
 adds bill <unk> senior industry analyst for <unk> a high-technology market research firm we basically think that these are very hot products 
 the problem compaq is going to have is that they wo n't be able to make enough of them 
 compaq 's machines include the N <unk> <unk> disk drive a <unk> screen that is only <unk> thick and an internal expansion <unk> for a <unk> in other words almost all the <unk> of a typical office machine 
 others undoubtedly will follow but most analysts believe compaq has at least a six-month lead on the competition 
 toshiba 's line of <unk> for example features the <unk> which is in the same weight class but is much slower and has less memory and the <unk> which also uses a N microprocessor but which <unk> almost twice as much and is three times the size 
 a third model marketed in japan may hit the u.s. by the end of the first quarter of N but by then analysts say compaq will have established itself as one of three major players 
 what about big blue 
 international business machines corp. analysts say has been burned twice in trying to enter the laptop market and shows no signs of trying to get into <unk> anytime soon 
 honeywell inc. and international business machines corp. received air force contracts to develop integrated circuits for use in space 
 honeywell 's contract totaled $ N million and ibm 's $ N million 
 boeing co. received a $ N million air force contract for developing cable systems for the <unk> missile 
 general dynamics corp. received a $ N million air force contract for <unk> training sets 
 grumman corp. received an $ N million navy contract to upgrade aircraft electronics 
 <unk> corp. received an $ N million army contract for helicopter engines 
 sharp increases in the price of fresh produce caused spain 's september consumer price index to shoot up N N from the previous month pushing the annual rate of inflation to N N the national institute of statistics said friday 
 the monthly increase is the highest recorded in the past four years 
 the index which registered N at the end of september has a base of N set in N and is n't seasonally adjusted 
 prices have risen N N in the first nine months of the year <unk> both the initial N N inflation goal set by the government of socialist prime minister <unk> gonzalez and the second revised goal of N N 
 japan 's wholesale prices in september rose N N from a year earlier and were up N N from the previous month the bank of japan announced friday 
 the wholesale price index stood at N compared with a N base of N 
 plunge 
 what plunge 
 <unk> new york stock exchange issues hit 52-week highs during friday 's trading despite the dow jones industrial average 's 190.58-point plunge 
 stocks of utilities held up relatively better than other market sectors during the sell-off 
 and among the issues hitting new highs were detroit edison co. and <unk> <unk> power corp 
 other major issues hitting highs included american telephone & telegraph co. westinghouse electric corp. exxon corp. and cigna corp. the big insurer 
 of course many more issues N hit new lows 
 these included international business machines corp. which during friday 's session traded below $ N a share for the first time since june N 
 ibm closed at $ N down $ N 
 other new lows included <unk> international corp. union carbide corp. and bethlehem steel corp. all of which are included in the industrial average 
 meanwhile two initial public offerings <unk> the <unk> market in their <unk> day of national over-the-counter trading friday 
 shares of rally 's inc. an operator of fast-food restaurants closed at $ N each up from its $ N offering price and shares of employee benefit plans inc. a health-care consultant closed at $ N up from its $ N offering price 
 ford motor co. said it acquired N N of the shares in jaguar plc 
 jaguar the london stock exchange and the u.s. securities and exchange commission are being notified of the transactions the company said 
 the u.s. federal trade commission advised ford last week that it would n't raise any <unk> to the acquisition of as much as N N of jaguar shares 
 the no. N auto maker disclosed last month that it wants to buy as much as N N of the british luxury-car maker the maximum allowed under current united kingdom government restrictions 
 general motors corp. said it had discussed the possibility of a joint venture with jaguar before ford began buying shares 
 gm said it still is talking with jaguar about acquiring a minority interest 
 investors who bought stock with borrowed money that is on margin may be more worried than most following friday 's market drop 
 that 's because their brokers can require them to sell some shares or put up more cash to enhance the collateral backing their loans 
 in october N these margin calls were thought to have contributed to the downward <unk> of the stock market 
 typically a margin call occurs when the price of a stock falls below N N of its original value 
 if the investor does n't put up the extra cash to satisfy the call the brokerage firm may begin <unk> the securities 
 but some big brokerage firms said they do n't expect major problems as a result of margin calls 
 margin calls since friday have been higher than usual but reasonable a spokesman for shearson lehman hutton inc. said 
 merrill lynch & co. officials do n't expect margin calls to be as big a factor as in N because fewer individual investors are buying stock on margin a spokesman said 
 hugo <unk> senior vice president at charles schwab corp. the san <unk> discount brokerage firm said he did n't expect any immediate problems with margin calls for schwab customers 
 he said schwab had increased margin requirements so customers have more of a cushion 
 he added we learned a lesson in N about volatility 
 <unk> inc. following rival hertz corp. 's lead said it is backing out of <unk> programs with three airlines 
 the garden city n.y. <unk> company said it wo n't renew contracts with nwa inc. 's northwest airlines unit pan am corp. 's pan american world airways unit and <unk> airlines at the end of this year 
 but it remains involved in programs with amr corp. 's american airlines unit and delta air lines 
 industry estimates put <unk> 's annual cost of all five programs at between $ N million and $ N million 
 a spokesman for <unk> would n't specify the costs but said the three airlines being dropped account for far less than half of the total 
 budget rent a car corp. of chicago and national car rental systems inc. of minneapolis both said they had no plans to follow suit 
 in fact budget indicated it saw some benefit to staying involved in these programs in which <unk> earn <unk> miles and <unk> can get <unk> discounts 
 i can not see how this news by hertz and <unk> can not benefit budget 's programs said bob wilson budget 's vice president marketing planning 
 northwest and <unk> are two of the five airlines with which budget has agreements 
 national also <unk> in the northwest <unk> program along with four other airlines including delta and usair group inc. 's usair unit 
 a month ago hertz of park <unk> n.j. said that it would drop its marketing agreements at year end with delta america west and texas air corp. 's continental airlines and eastern airlines and that <unk> with american airlines ual inc 's united airlines and usair also would be ended sometime after dec. N 
 at the time hertz said its annual fees to those airlines amounted to $ N million and that the value of redeemed <unk> topped $ N million 
 analysts and competitors however doubt the numbers were that high 
 budget said its <unk> costs are substantially below <unk> 's level 
 robert d. <unk> <unk> vice president of marketing said the proliferation and costs attached to <unk> programs have significantly diminished their value 
 this year has been difficult for both hertz and <unk> said charles <unk> <unk> industry analyst at alex brown & sons 
 they 've been looking to get their costs down and this is a fairly <unk> way to do it he said 
 cbs inc. is cutting the pat <unk> show down to one hour from its current N minutes 
 cbs insisted the move was n't a setback for the program which is the network 's first entry into the <unk> talk show format since N 
 i have every intention of making this the best possible show and having it run one hour is the best way to it said rod <unk> who was named vice president of late night entertainment in august 
 this will raise the energy level of the show 
 cbs will continue to program <unk> shows to follow the <unk> hour 
 but cbs news will extend its <unk> <unk> by N minutes and begin at N a.m 
 the show despite a promising start has slipped badly in the weekly ratings as compiled by a.c. nielsen co. finishing far below tonight on nbc a unit of general electric co. and <unk> on <unk> a unit of capital cities\/abc inc 
 further <unk> the <unk> audience is the addition of the <unk> hall show syndicated by paramount communications inc 
 tandem computers inc. preparing to fight with international business machines corp. for a piece of the mainframe business said it expects to post higher revenue and earnings for its fiscal fourth quarter ended sept. N 
 tandem said it expects to report revenue of about $ N million and earnings of N cents to N cents a share 
 the results which are in line with analysts ' estimates reflect a continued improvement in our u.s. business said james <unk> tandem 's chief executive officer 
 in the year-earlier period tandem reported net income of $ N million or N cents a share on revenue of $ N million 
 tandem expects to report the full results for the quarter next week 
 analysts have predicted that the cupertino calif. company will report revenue of $ N million to $ N million and earnings of N cents to N cents a share 
 commenting on the results for the quarter mr. <unk> said the strength of the company 's domestic business came as a surprise to him noting that sales in every region of the u.s. exceeded our plan 
 the company 's u.s. performance was helped by a record quarter for new customers he said 
 tandem makes <unk> computers machines with <unk> backup systems that run stock exchanges networks of automatic <unk> and other complex computer systems 
 tomorrow the company is scheduled to announce its most powerful computer ever which for the first time will bring it into direct competition with makers of mainframe computers 
 tandem 's new high-end computer is called <unk> 
 prices for the machine which can come in various <unk> are $ N million to $ N million 
 analysts expect the new computer to <unk> a hefty <unk> of business away from ibm the longtime leader in mainframes 
 we believe they could <unk> perhaps two to three billion dollars from ibm over the next few years said george weiss an analyst at the gartner group 
 that will spur tandem 's growth 
 i 'd be disappointed if the company grew by less than N N next year said john <unk> an analyst at goldman sachs & co 
 ibm is expected to respond to tandem 's <unk> by discounting its own mainframes which analysts say are roughly three times the price of a comparable system from tandem 
 obviously ibm can give bigger discounts to users immediately said mr. weiss 
 but mr. <unk> questions whether that will be enough to stop tandem 's first mainframe from taking on some of the functions that large organizations previously sought from big blue 's machines 
 the answer is n't price reductions but new systems he said 
 nevertheless tandem faces a variety of challenges the biggest being that customers generally view the company 's computers as <unk> to ibm 's mainframes 
 even mr. <unk> is reluctant to abandon this notion insisting that tandem 's new machines are n't <unk> for ibm 's mainframes 
 we 're after a little bigger niche he said 
 do n't jump yet 
 the stock market 's <unk> may turn out to be good news for the economy 
 in one wild hour of trading the market managed to accomplish what the bush administration has been trying to do unsuccessfully for weeks 
 it is forcing the federal reserve to ease its grip on credit and it took the wind out of a previously <unk> dollar 
 the resulting decline in interest rates and the value of the dollar could <unk> american business indeed the entire economy 
 this may sound <unk> optimistic 
 after all until a few years ago the stock market was viewed as a barometer of the national economy 
 when it went down by all tradition the economy followed 
 that has changed partly because the two years following the worst stock-market plunge in history have been reasonably comfortable 
 the N crash was a false alarm however you view it says university of chicago economist victor <unk> 
 the market seems increasingly <unk> from the rest of the nation 
 its <unk> ca n't be <unk> to fundamental business conditions nor do they appear to <unk> major shifts in the economy 
 the market today has a life of its own john <unk> chairman of international business machines corp. said saturday 
 there 's nothing rational about this kind of action 
 of course the health of the economy will be threatened if the market continues to dive this week 
 sharply falling stock prices do reduce consumer wealth damage business confidence and discourage the foreign investors upon whom the u.s. now relies for financial <unk> 
 the financial-services industry was battered by the N crash 
 what 's more although the stock market is far less <unk> today than two years ago the u.s. economy is weaker 
 growth is slower 
 profits are softer 
 debt burdens are heavier 
 but if the stock market does n't continue to plummet the beneficial effects of lower interest rates and a lower dollar may well dominate 
 the fed which until friday had been <unk> moves to ease credit is now poised to pour money into the economy if needed to <unk> the markets 
 fed officials may protest that this does n't necessarily mean a fundamental change in their interest-rate policies 
 but the experience of the N crash suggests the fed is likely to bring down short-term interest rates in its effort to calm markets 
 anticipating the fed 's move money traders lowered a key interest rate known as the federal funds rate to N N late friday down from N N the day before 
 tiny movements in the rate which is what banks charge each other for overnight loans are usually among the few visible tracks that the fed leaves on the monetary markets 
 the dollar also began to decline friday as the stock market 's plunge caused some investors to <unk> their desire to invest in the u.s. 
 treasury officials have been arguing for months that the dollar 's strength was out of <unk> with economic fundamentals threatening to <unk> the export boom that has sustained manufacturers for several years 
 the market drop has now apparently convinced foreign investors that the treasury was right about the <unk> dollar 
 a modest drop in the dollar only a modest one mind you would be welcomed by the u.s. 
 that was n't the case in N when the dollar was so weak that some economists and government officials seriously worried that it might collapse producing panic among foreign investors and <unk> the flow of foreign capital to the u.s. 
 another big difference between N and N is n't so <unk> 
 in the third quarter of N the economy <unk> at an inflation-adjusted annual rate of N N 
 the consensus among economists is that it grew a much more sluggish N N in the third quarter of N which ended two weeks ago 
 the plunge in stock prices is happening at a time when the economy has already slowed down says economist lawrence <unk> of <unk> group a <unk> <unk> pa. forecasting company 
 a lot of <unk> demand is gone 
 consumer spending did drop in the months following black monday N but only slightly and for a short period of time recalls mr. <unk> a longtime student of business cycles 
 that was offset by strength elsewhere 
 the effects were much less severe and less prolonged than some had feared or expected 
 today he <unk> exports and business investment spending may be insufficient to pick up the slack if stock prices sink this week and if consumers <unk> in reaction 
 what 's more the corporate borrowing binge has n't <unk> in the past two years 
 we 've had two more years of significant accumulation of debt just at the time when earnings are being squeezed mr. <unk> notes 
 the more a company relies on borrowed money the greater its <unk> to an economic slowdown 
 a company with a strong balance sheet can withstand an unanticipated storm a highly leveraged company may end up in bankruptcy court 
 the fed of course knows that very well hence its <unk> to pump credit into the economy this morning 
 but in the process the fed risks <unk> inflation 
 even before friday 's events harvard university economist benjamin <unk> was arguing that the fed wo n't be able to live up to its tough words on eliminating inflation because of its responsibility to protect fragile financial markets banks and highly leveraged corporations 
 the biggest threat on the economic horizon right now is n't recession he reasons it 's an <unk> of <unk> inflation 
 in the end the N collapse suggested the economy does n't move in <unk> with stock prices 
 the economy does however depend on the confidence of businesses consumers and foreign investors 
 a panic on wall street does n't exactly <unk> confidence 
 surveys suggested that consumer confidence was high before friday 
 a 190-point drop is n't likely to make much of a <unk> <unk> that a few times over though and it will 
 if the reactions of executives gathered saturday at hot springs va. for the business council meetings are typical business leaders were n't overly rattled by friday 's decline 
 and if foreign investors become a <unk> more cautious well the dollar 's recent strength suggests that the u.s. can stand it 
 on the bottom line the most <unk> fact for the economic outlook is that we 've been through this before 
 two years ago about the only point of comparison was the N crash and the subsequent depression 
 the <unk> had a <unk> audience 
 the prosperity that followed black monday permits a more optimistic view today 
 at the very least the establishment here is taking comfort from the nation 's success in handling the last <unk> 
 as sen. lloyd <unk> d. texas observed yesterday the fed avoided a <unk> last time 
 they are more sophisticated this time 
 the chemical industry is expected to report that profits eroded in the third quarter because of <unk> prices in the commodity end of the business 
 producers of commodity chemicals the basic chemicals produced in huge volumes for other manufacturers have seen sharp inventory cutting by buyers 
 once the chief beneficiaries of the industry 's now <unk> boom these producers also will be reporting against exceptionally strong performances in the N third quarter 
 for some of these companies this will be the first quarter with year-to-year negative comparisons says leonard <unk> a chemical industry analyst at prudential <unk> research 
 this could be the first of five or six down quarters 
 perhaps most prominent dow chemical co. which as of midyear had racked up eight consecutive record quarters is expected to report that profit decreased in the latest quarter from a year earlier if only by a <unk> 
 though dow has aggressively diversified into specialty chemicals and pharmaceuticals the company still has a big stake in polyethylene which is used in packaging and <unk> 
 analysts ' third-quarter estimates for the midland mich. company are between $ N a share and $ N a share compared with $ N a year ago when profit was $ N million on sales of $ N billion 
 a dow spokeswoman declined to comment on the estimates 
 at the investment firm of smith barney harris upham & co. the <unk> segment is seen pulling down overall profit for N companies representative of the whole industry by N N to N N 
 you will find the commodities off more than the others and the diversified companies about even or slightly better says james wilbur a smith barney analyst 
 first boston corp. projects that N of the N companies it follows will report lower profit 
 most of the N have big <unk> operations 
 still some industry giants are expected to report continuing gains largely because so much of their business is outside commodity chemicals 
 du pont co. is thought to have had steady profit growth in white <unk> fibers and <unk> 
 moreover the wilmington del. company is helped when prices weaken on the commodity chemicals it buys for its own production needs such as <unk> 
 analysts are divided over whether du pont will report much of a gain in the latest quarter from its <unk> inc. oil company 
 the estimates for du pont range from $ N to $ N a share 
 in the N third quarter the company earned $ N million or $ N a share on sales of $ N billion 
 du pont declined to comment 
 monsanto co. too is expected to continue reporting higher profit even though its sales of crop chemicals were hurt in the latest quarter by drought in northern europe and the western u.s. 
 the st. <unk> company is expected to report again that losses in its <unk> searle & co. pharmaceutical business are narrowing 
 searle continued to operate in the red through the first half of the year but monsanto has said it expects searle to post a profit for all of N 
 most estimates for monsanto run between $ N and $ N a share 
 a year ago the company posted third-quarter profit of $ N million or $ N a share on sales of $ N billion 
 monsanto declined to comment 
 but the <unk> producers are caught on the downside of a pricing cycle 
 by some accounts on wall street and in the industry the inventory reductions are near an end which may <unk> firmer demand 
 but <unk> say growing production capacity could keep pressure on prices into the early 1990s 
 in the latest quarter at least profit is expected to fall sharply 
 for <unk> inc. how far down it is we do n't know says leslie <unk> at salomon brothers 
 the projections are in the neighborhood of N cents a share to N cents compared with a restated $ N a share a year earlier when profit was $ N million on sales of $ N million 
 <unk> faces lower prices for its mainstay product <unk> while it goes forward with a heavy capital investment program to bolster its raw material supply and develop new uses for <unk> whose markets include the packaging and automobile industries 
 the company based in wilmington del. is <unk> by montedison s.p a. milan which has an offer outstanding for the <unk> shares it does n't already own 
 at quantum chemical corp. new york the trouble is lower prices for polyethylene higher debt costs and the <unk> of an important plant due to an explosion 
 some analysts hedge their estimates for quantum because it is n't known when the company will book certain one-time charges 
 but the estimates range from break-even to N cents a share 
 in the N third quarter quantum earned $ N million or $ N a share on sales of $ N million 
 another big polyethylene producer union carbide corp. is expected to post profit of between $ N a share and $ N compared with $ N a share a year earlier when the company earned $ N million on sales of $ N billion 
 <unk> quantum and union carbide all declined to comment 
 the following were among friday 's offerings and pricings in the u.s. and non-u.s. capital markets with terms and syndicate manager as compiled by dow jones capital markets report 
 dow chemical co. 
 $ N million of N N senior notes due oct. N N priced at par 
 the issue which is <unk> back to the company at par on oct. N N was priced at a spread of N basis points above the treasury 's 10-year note 
 rated single-a-1 by moody 's investors service inc. and single-a by standard & poor 's corp. the <unk> issue will be sold through underwriters led by merrill lynch capital markets 
 <unk> capital corp. 
 $ N million of N N debentures due oct. N N priced at N to yield N N 
 the <unk> issue which can be put back to the company in N was priced at N basis points above the treasury 's 10-year note 
 rated <unk> by moody 's and <unk> by s&p the issue will be sold through underwriters led by morgan stanley & co 
 federal home loan mortgage corp. 
 $ N million of remic mortgage securities offered in N classes by prudential-bache securities inc 
 the offering series N backed by freddie mac N N N securities with a weighted average remaining term to maturity of N years was priced before the market 's afternoon surge 
 among classes for which details were available yields ranged from N N or N basis points over two-year treasury securities to N N or N basis points over 10-year treasurys 
 federal home loan mortgage corp. 
 $ N million of remic mortgage securities offered by citicorp securities markets inc 
 the offering series N is backed by freddie mac N N N securities 
 pricing details were n't immediately available 
 federal home loan mortgage corp. 
 $ N million of stripped mortgage securities underwritten by <unk> securities corp 
 the agency 's first strips issue collateralized by freddie mac N N securities <unk> into a single security called a giant will be divided into <unk> and <unk> securities 
 the collateral is being sold by a thrift institution 
 the <unk> securities will be <unk> by <unk> securities into a freddie mac remic series N that will have six classes 
 the <unk> securities will be sold separately by <unk> securities 
 the <unk> securities pay the principal from the underlying freddie mac N N securities while the <unk> securities pay only interest 
 freddie mac said the <unk> securities were priced at N N to yield N N assuming an average life of eight years and a prepayment of N N of the <unk> model 
 the <unk> securities were priced at N N to yield N N 
 there were no major <unk> or foreign bond offerings in europe friday 
 the economy 's <unk> will be taken from several <unk> points this week with <unk> on trade output housing and inflation 
 the most troublesome report may be the august merchandise trade deficit due out tomorrow 
 the trade gap is expected to widen to about $ N billion from july 's $ N billion according to a survey by <unk> international a unit of mcgraw-hill inc. new york 
 thursday 's report on the september consumer price index is expected to rise although not as sharply as the N N gain reported friday in the producer price index 
 that gain was being cited as a reason the stock market was down early in friday 's session before it got started on its reckless 190-point plunge 
 economists are divided as to how much manufacturing strength they expect to see in september reports on industrial production and capacity utilization also due tomorrow 
 meanwhile september housing starts due wednesday are thought to have inched upward 
 there 's a possibility of a surprise in the trade report said michael <unk> director of research at <unk> 
 a widening of the deficit if it were combined with a <unk> strong dollar would <unk> trade problems but the dollar weakened friday as stocks plummeted 
 in any event mr. <unk> and many others say that the easy gains in narrowing the trade gap have already been made 
 trade is definitely going to be more politically sensitive over the next six or seven months as improvement begins to slow he said 
 exports are thought to have risen strongly in august but probably not enough to offset the jump in imports economists said 
 views on manufacturing strength are split between economists who read september 's low level of factory job growth as a sign of a slowdown and those who use the somewhat more <unk> total employment figures in their calculations 
 the wide range of estimates for the industrial output number <unk> the differences the forecasts run from a drop of N N to an increase of N N according to <unk> 
 a rebound in energy prices which helped push up the producer price index is expected to do the same in the consumer price report 
 the consensus view expects a N N increase in the september <unk> after a flat reading in august 
 robert h. <unk> an economist for lloyd 's bank in new york is among those expecting a more moderate gain in the <unk> than in prices at the producer level 
 auto prices had a big effect in the <unk> and at the <unk> level they wo n't he said 
 food prices are expected to be unchanged but energy costs jumped as much as N N said gary <unk> economist at <unk> financial group 
 he also says he thinks core inflation which <unk> the volatile food and energy prices was strong last month 
 he expects a gain of as much as N N in core inflation after a summer of far smaller increases 
 housing starts are expected to <unk> a bit from august 's annual pace of N units 
 economists say an august rebound in permits for <unk> units signaled an increase in september starts though activity remains fairly modest by historical standards 
 <unk> street 
 if the <unk> <unk> law 's fair why should we not then <unk> the <unk> to require that all employees give similar notice before they quit 
 <unk> s. <unk> 
 <unk> comment 
 when research projects are curtailed due to government funding cuts are we caught with our grants down 
 <unk> <unk> 
 assuming the stock market does n't crash again and completely <unk> <unk> and trading rooms american television audiences in a few months may be seeing britain 's concept of both 
 capital city is a weekly series that <unk> here three weeks ago amid unprecedented <unk> by its producer <unk> television 
 the early episodes make you long for a <unk> of the crash of N 
 let 's make that N just to be sure 
 according to the program 's publicity prospectus capital city set at <unk> <unk> a <unk> <unk> securities firm with # N million capital follows the fortunes of a <unk> team of young <unk> dealers hired for their particular <unk> of style <unk> and energy 
 but with all the money and <unk> of high finance come the <unk> pressures to do well pressure to pull off another million before lunch pressure to anticipate the market by a fraction of a second 
 you need n't be a <unk> securities lawyer to realize the prospectus is guilty of less than full disclosure 
 the <unk> produced series has been criticized by london 's financial <unk> as inaccurate in detail but its major weakness is its <unk> <unk> of the characters ' professional and private lives 
 turned loose in <unk> <unk> 's trading room the <unk> dealers do little right 
 judging by the money lost and mistakes made in the early episodes <unk> <unk> 's capital should be just about exhausted by the final 13th week 
 in the opening episode we learn that <unk> a junior bond trader has indeed pulled off another million before lunch 
 trouble is she has lost it just as quickly 
 rather than keep the loss a secret from the outside world <unk> <unk> about it to a <unk> man while ordering lunch over the phone 
 little chance that <unk> <unk> is going to recoup today 
 traders spend the morning <unk> selling bonds in the belief that the u.s. monthly trade figures will look <unk> 
 <unk> <unk> columbia 
 the trade figures turn out well and all those recently <unk> bonds <unk> in price 
 so much for anticipating the market by a fraction of a second 
 and a large <unk> of the first episode is devoted to efforts to get rid of some nearly <unk> japanese bonds since when is anything japanese nearly <unk> <unk> 
 surprisingly <unk> <unk> <unk> the week only to have a senior executive <unk> <unk> his way into becoming the target of a criminal insider trading investigation 
 instead of closing ranks to protect the firm 's reputation the executive 's internal rivals led by a <unk> american demand his resignation 
 the plot is <unk> when the firm 's major <unk> <unk> <unk> on the other side of the globe <unk> home to support the executive 
 but the investigation continues 
 if you can <unk> the <unk> that the rewards for such <unk> are <unk> salaries you still are left <unk> because few of the <unk> consume very <unk> 
 in fact few consume much of anything 
 two share a house almost <unk> of furniture 
 <unk> lives in a hotel room and although she drives a <unk> <unk> she has n't time to clean or repair it the <unk> vehicle can be started only with a huge pair of <unk> because the <unk> key has broken off in the lock 
 and it takes <unk> the <unk> <unk> ' man of the cast until the third episode to get past first base with any of his <unk> 
 perhaps the explanation for these <unk> is that <unk> britain is n't ready to come to terms with the wealth created by the <unk> <unk> regime 
 after all this is n't old money but new money and in many cases young money 
 this attitude is clearly illustrated in the treatment of max the trading room 's most flamboyant character 
 <unk> enough he lives in a <unk> <unk> converted church wears designer clothes and drives an <unk> car 
 but apparently to make him <unk> even <unk> to the <unk> the script <unk> <unk> max into an <unk> <unk> master of N chinese <unk> 
 he takes his wash to the <unk> where he meets a <unk> french girl who <unk> him into providing a home for her pet <unk> and then promptly <unk> his car and <unk> it in <unk> 
 in producing and promoting capital city <unk> has spent about as much as <unk> <unk> loses on a good day 
 the production costs are a not <unk> # N million $ N million and would have been much higher had not the cost of the trading floor set been absorbed in the budget of dealers an earlier <unk> movie 
 another half million <unk> went for a <unk> of <unk> advertisements in six major british newspapers and for huge <unk> in the london subway 
 these expenses create a special incentive for capital city 's producers to <unk> it or a <unk> version of it in america 
 <unk> 's u.s. marketing agent donald <unk> is preparing to do just that 
 he is <unk> hopeful citing three u.s. comedy series three 's company too close for comfort and check it out that had british <unk> 
 perhaps without <unk> it mr. <unk> simultaneously has put his finger on the problem and an ideal solution capital city should have been a comedy a worthy <unk> to the <unk> british carry on movies of the 1960s 
 the seeds already are in the script 
 the first episode concluded with a <unk> <unk> scene in which the <unk> crew <unk> a baby the casualty of a broken marriage at the firm 
 and many in the young cast bear striking <unk> to american tv and movie <unk> known for light roles 
 <unk> <unk> looks like a young <unk> <unk> <unk> william armstrong who plays max could pass for <unk> <unk> and douglas <unk> <unk> for james <unk> <unk> <unk> is a <unk> <unk> <unk> and <unk> <unk> could easily double for <unk> hall the <unk> <unk> of the <unk> boys <unk> 
 so ok kids everybody on stage for carry on trading the cast is <unk> searching the office for <unk> japanese bonds that suddenly have soared in value because dai-ichi kangyo bank has just bought the white house 
 the pressure is too much for <unk> <unk> who <unk> a security guard 
 he <unk> into a desktop computer terminal which <unk> covering <unk> hall 's face with <unk> 
 and all the while the bonds are in the baby 's diaper 
 it should run forever 
 mr. <unk> is senior <unk> in the journal 's london bureau 
 <unk> assurances of france gave details of its financing plans for its proposed $ N billion acquisition of farmers group inc. in amended filings with insurance regulators in the nine u.s. states where farmers operates 
 the proposed acquisition is part of sir james goldsmith 's unfriendly takeover attempt for b.a.t industries plc the british tobacco retailing paper and financial services concern that is parent of los angeles-based farmers 
 in an attempt to <unk> u.s. regulators ' concern over a goldsmith acquisition of farmers sir james in august agreed to sell farmers to axa if he is successful in acquiring b.a.t 
 as part of the agreement axa agreed to invest $ N billion in <unk> investments ltd. sir james 's acquisition vehicle 
 of the total $ N billion to be paid to <unk> by axa about $ N billion will come from available resources of axa 's parent <unk> group $ N billion will be in the form of notes issued by axa and the remaining $ N billion will be in long-term bank loans 
 in an interview thursday <unk> bebear chairman and chief executive officer of axa said his group has already obtained assurances from a group of banks led by cie financiere de paribas that they can provide the loan portion of the financing 
 the other banking companies in the group are credit lyonnais societe generale bankamerica corp. and citicorp he said 
 mr. bebear said <unk> group has more than $ N billion of <unk> assets that we can and will sell to help pay off debt from the acquisition 
 he said the assets to be sold would be <unk> assets including a beer company and a real estate firm and would n't include any pieces of farmers 
 we wo n't put any burden on farmers he said 
 the amended filings also point out that under a new agreement <unk> has an <unk> obligation to sell farmers to axa upon an acquisition of b.a.t 
 we hope that with what we did the regulators will not need to evaluate <unk> and they can directly look at the agreement with us because <unk> wo n't be an owner of farmers at anytime mr. bebear said 
 any change of control in farmers needs approval of the insurance commissioners in the nine states where farmers and its related companies are incorporated 
 the amended filings were required because of the new agreement between axa and <unk> and to reflect the extension that sir james received last month under british takeover rules to complete his proposed acquisition 
 <unk> dropped its initial # N billion $ N billion takeover bid after it received the extension but said it would launch a new bid if and when the <unk> sale of farmers to axa receives regulatory approval 
 a spokesman for b.a.t said of the amended filings that it would appear that nothing <unk> has changed 
 the new financing structure is still a <unk> leveraged one and axa still plans to take out N N of farmers ' earnings as dividends to service their debt 
 that dividend is almost double the N N currently taken out of farmers by b.a.t the spokesman added 
 it would have severe implications for farmers ' policy holders 
 to fend off sir james 's advances b.a.t has proposed a sweeping restructuring that would <unk> it to a tobacco and financial services concern 
 dismal sales at general motors corp. dragged the u.s. car and truck market down below year-ago levels in early october the first sales period of the N model year 
 the eight major domestic auto makers sold N north <unk> cars in the first N days of october a N N drop from a year earlier 
 domestically built truck sales were down N N to N <unk> vans and sport utility vehicles 
 the heavy use of incentives to clear out N models appears to have taken the steam at least initially out of N model sales which began officially oct. N 
 this appears particularly true at gm which had strong sales in august and september but saw its early october car and truck results fall N N from last year 's unusually high level 
 overall sales of all <unk> vehicles fell N N from a year ago 
 without gm overall sales for the other u.s. <unk> were roughly flat with N results 
 some of the u.s. auto makers have already adopted incentives on many N models but they may have to broaden their programs to keep sales up 
 we 've created a condition where without incentives it 's a tough market said tom kelly sales manager for bill <unk> chevrolet in dearborn mich 
 car sales fell to a seasonally adjusted annual selling rate of N million vehicles the lowest since october N 
 the poor performance contrasts with a robust selling rate of almost eight million last month 
 furthermore dealers contacted late last week said they could n't see any immediate impact on sales of friday 's steep market decline 
 gm 's domestic car sales dropped N N and its domestic trucks were down an even <unk> N N from the same period a year ago 
 all of the gm divisions except cadillac showed big declines 
 cadillac posted a N N increase despite new competition from lexus the <unk> luxury-car division of toyota motor corp 
 lexus sales were n't available the cars are imported and toyota reports their sales only at <unk> 
 the sales drop for the no. N car maker may have been caused in part by the end in september of dealer incentives that gm offered in addition to consumer rebates and <unk> financing a company spokesman said 
 last year gm had a different program in place that continued rewarding dealers until all the N models had been sold 
 aside from gm other car makers posted generally mixed results 
 ford motor co. had a N N drop in domestic car sales but a N N increase in domestic truck sales 
 chrysler corp. had a N N drop in car sales <unk> its generally slow performance all year 
 however sales of trucks including the company 's popular minivans rose N N 
 honda motor co. 's sales of domestically built vehicles plunged N N from a year earlier 
 honda 's plant in <unk> ohio was <unk> up to build N model accords a honda spokesman said 
 we 're really confident everything will bounce back to normal he added 
 separately chrysler said firm prices on its <unk> domestic cars and minivans will rise an average of N N over <unk> equipped N models 
 firm prices were generally in line with the tentative prices announced earlier this fall 
 at that time chrysler said base prices which are n't adjusted for equipment changes would rise between N N and N N on most vehicle 
 a totals include only vehicle sales reported in period 
 c domestic car 
 d percentage change is greater than N N 
 x there were N selling days in the most recent period and N a year earlier 
 percentage differences based on daily sales rate rather than sales volume 
 antonio l. <unk> N years old was named president and chief executive officer of the atlantic research corp. subsidiary 
 mr. <unk> had been a consultant to the subsidiary 's <unk> operations 
 mr. <unk> succeeds william h. <unk> who resigned to pursue personal interests 
 <unk> makes and repairs jet engines 
 it also has interests in military electronics and <unk> marine transportation and machinery used to make food and beverage cans 
 it was n't so long ago that a radio network funded by the u.s. congress and originally by the central intelligence agency was accused by officials here of <unk> <unk> <unk> and <unk> 
 now the network has opened a news bureau in the <unk> capital 
 employees held an open house to <unk> and even hung out a sign <unk> <unk> radio radio free europe 
 i think this is a victory for the radio says <unk> de <unk> a <unk> former <unk> <unk> who works in the <unk> west germany headquarters as deputy director of the <unk> service 
 in fact the network hopes to set up offices in warsaw and anywhere else in the east bloc that will have it 
 but the rapid changes brought on by glasnost and open borders are <unk> the network 's life in more ways than one 
 in fact radio free europe is in danger of suffering from its success 
 while the network currently can operate freely in <unk> so can others 
 in addition competition for <unk> is getting tougher in many ways than when broadcasting here was strictly controlled 
 instead of being denounced as an evil agent of <unk> radio free europe is more likely to draw the criticism that its programs are too <unk> even boring 
 they have a lot to do these days to compete with <unk> radio says andrew <unk> a <unk> student at the technical university in <unk> 
 the <unk> radio reporters seem better informed and more critical about about what 's going on here 
 indeed hungary is in the midst of a media explosion 
 boys on busy street corners <unk> newspapers of every political <unk> 
 <unk> are packed with a <unk> array of magazines 
 radio and television are getting <unk> and <unk> 
 the british broadcasting corp. and the u.s. state department 's voice of america broadcast over <unk> <unk> though only a few hours a day each in <unk> 
 australian press <unk> rupert murdoch has bought N N stakes in two popular and <unk> <unk> newspapers while britain 's robert maxwell has let it be known here that he is thinking about similar moves 
 but radio free europe does n't plan to <unk> away 
 with its mission for free speech and the capitalist way the network 's staff says it still has plenty to do in hungary and in the great eastern beyond 
 radio free europe and its sister station for the soviet union radio liberty say they wo n't cut back their more than N hours of daily <unk> 
 they are still an important source of news for N million <unk> in N exotic <unk> from <unk> and <unk> to <unk> and <unk> 
 the establishment of its first bureau in warsaw pact territory shows the <unk> of some of the changes in eastern europe 
 months before the decision by the <unk> communist party to <unk> itself socialist and try to look more appealing to voters the country 's <unk> were trying to look more <unk> 
 it proved a perfect time for radio free europe to ask for permission to set up office 
 not only did the <unk> ministry of foreign affairs approve radio free europe 's new location but the ministry of telecommunications did something even more amazing they found us four phone lines in central <unk> says <unk> <unk> a radio free europe <unk> who helped <unk> the <unk> location 
 that is a <unk> 
 it 's a far cry from the previous treatment of the network which had to overcome <unk> of its <unk> and <unk> of local <unk> who filed reports to the network by phone secret <unk> or letters 
 in fact some of the network 's <unk> <unk> say they owe radio free europe loyalty because it was responsible in many ways for keeping hope alive through what one writer here calls the dark ages of the 20th century 
 during the past four years many of us have sat up until late at night listening to our <unk> says the writer 
 there were some very <unk> <unk> 
 the <unk> too had to be <unk> 
 through much of the <unk> war ii period listening to western <unk> was a crime in hungary 
 when we listen to the europe station my mother still gets nervous says a <unk> <unk> 
 she wants to turn down the volume and close the <unk> 
 now the <unk> competition for radio free europe comes during the <unk> <unk> 
 <unk> radio often <unk> its most politically outspoken <unk> for around midnight 
 television which most of the time is considered rather <unk> has entered the running with a new program the end of the day which comes on after N p.m 
 it is a talk show with opposition leaders and political experts who discuss hungary 's domestic problems as well as foreign affairs 
 those who want to hear even more radical views have to get up at five on sunday morning for sunday journal on <unk> radio 
 the competitive spirit is clearly <unk> radio free europe which is trying to beef up programs 
 the <unk> office plans to hire free-lance reporters to cover the latest <unk> in <unk> country towns from <unk> in the west to <unk> in the east 
 the <unk> service has a daily <unk> news show called <unk> with international and domestic news plus a daily news review of opinions from around the world 
 there 's also a host of new programs trying to <unk> up on the traditional diet of politics 
 a daily <unk> program called the march of time tries to find interesting <unk> of <unk> news and <unk> from around the world 
 there 's a program for women and a science show 
 and to attract younger <unk> radio free europe <unk> the latest in western rock groups 
 the pet shop boys are big this year in <unk> 
 we are <unk> for all the news says mr. <unk> the student 
 every moment we want to know everything about the world 
 proposals for <unk> national service like <unk> <unk> up from time to time depress the resistance of the body <unk> run their course and seem to disappear only to <unk> and <unk> public life <unk> 
 the disease <unk> comes to mind of course not as an <unk> on the advocates of national service 
 rather it is born of frustration with having to combat constantly changing <unk> of a <unk> idea that one thought had been eliminated in the early 1970s along with <unk> 
 it is back with us again in the form of legislation to pay <unk> under a national and community service act a proposal with a serious shot at congressional passage this fall 
 why does the <unk> virus keep coming back 
 perhaps it is because <unk> <unk> <unk> both military experience and the social <unk> 
 if only we could get america 's <unk> youth into at least a <unk> uniform we might be able to teach <unk> again and revive the spirit of giving 
 a quarter of a century ago national service was <unk> as a way of <unk> the <unk> <unk> of the draft by of all things expanding the draft 
 those of us who resisted the idea then suspect today that an obligation of government service for all young people is still the true long-term aim of many <unk> backers despite their protests that present plans contain no <unk> 
 choice of the volunteer military in the 1970s seemed to <unk> national service as much as the draft 
 but the virus was kept alive in <unk> departments until a couple of years ago when it again was let loose 
 this time it attempted to <unk> two connected problems the rising cost of higher education and the rising expense to the federal government of educational grants and loans 
 why not keep and even expand the loans and grants the advocates <unk> but require some form of service from each <unk> 
 military service moreover could be a <unk> option 
 thus undoubtedly it was hoped that the new strain of national service would prove <unk> <unk> <unk> conservatives <unk> <unk> and <unk> liberals 
 the democratic leadership council a <unk> group <unk> the plan surely thought it might help the party to attract support especially among college students and their parents 
 a provision allowing grants to be applied to <unk> purchases was added to appeal to those who had had enough of <unk> 
 the <unk> plan <unk> <unk> <unk> trees <unk> <unk> <unk> children and <unk> <unk> for $ N a week tax free plus medical care 
 with a tax-free $ N <unk> payment at the end of each year the <unk> would be making a wage comparable to $ N a year 
 mind you most of the <unk> would be <unk> N to <unk> some not even high school graduates and many saving money by living at home 
 they would be doing better financially under national service than many taxpayers working at the same kinds of jobs and perhaps supporting families 
 as it happened political resistance developed among educational and minority interests that count on the present education grant system so the <unk> <unk> decided to abandon the supposedly crucial principle of give in order to get 
 opposition to national service from the pentagon which wants to protect its own <unk> process also led to the <unk> option being dropped 
 clearly a new rationale for national service had to be <unk> up 
 what better place to turn than sen. edward kennedy 's labor committee that great <unk> of government <unk> where many a <unk> pot of <unk> is kept on the back <unk> until it can be brought forward and presented as <unk> <unk> 
 before the <unk> is printed the house may add more <unk> also changing the initial price now posted at some $ N million 
 it is widely known that too many <unk> <unk> the <unk> but that wisdom does not necessarily reflect the view of the <unk> especially if they are senators 
 the omnibus bill coming out of congress may be <unk> <unk> but the <unk> chefs are happy and the restaurant is pushing the <unk> very hard 
 the <unk> of <unk> is in the air 
 is the voluntary sector so weak that it needs such unsolicited assistance 
 on the contrary it is as robust as ever 
 according to the <unk> poll american adults contribute an average of two hours a week of service while financial contributions to charity in the 1980s have risen N N adjusted for inflation 
 even if government does see various <unk> needs national service is not the way to meet them 
 if we want to support students we might adopt the idea used in other countries of offering more <unk> based on something called <unk> rather than on the government 's idea of service 
 or we might provide a tax credit for working students 
 what we do not need to do is start a war and then try to justify it by creating a <unk> bill 
 to the extent we lack manpower to staff <unk> jobs in hospitals for example we should raise pay pursue <unk> technology or allow more legal <unk> rather than <unk> high school graduates as short-term workers and cause <unk> among permanent workers paid lesser amounts to do the same jobs 
 will national service in the current highly <unk> and <unk> form <unk> enough appeal to get adopted 
 not necessarily 
 polls show wide <unk> support for some vague concept of service but the bill now under discussion lacks any <unk> public backing 
 nonetheless senate democrats are organizing a roll of supporting associations <unk> and <unk> some of which may hope to receive the paid <unk> 
 so far the president seems <unk> to substitute any of the omnibus for his own <unk> proposal to <unk> a points of light foundation with $ N million to inform citizens of all ages and <unk> them to genuine <unk> 
 however even this <unk> plan could become <unk> if the white house gives in to congressional democratic pressure to add to the scope of the president 's initiative or to involve the independent foundation in <unk> federal funds for volunteer projects 
 there 's no need for such concessions 
 the omnibus can be defeated the virus controlled and real service protected 
 national service the <unk> idea still wo n't go away then of course but the millions of <unk> youth performing works of civic content will be <unk> only in the <unk> of their <unk> 
 mr. <unk> is a fellow at the <unk> hudson institute 
 this article is adapted from remarks at a <unk> institution conference on national service in which mr. <unk> also participated 
 drug <unk> inc. said gary <unk> N years old who had been president and chief operating officer for the past year was named chief executive officer of this <unk> chain 
 he succeeds his father philip t. <unk> who founded the company and remains chairman 
 robert e. <unk> iii N who headed the company 's philadelphia region was appointed president and chief operating officer succeeding gary <unk> 
 american physicians service group inc. said it purchased about N N of prime medical services inc. for about $ N million from texas american energy corp 
 american physicians said it also replaced four texas american representatives on prime 's <unk> board 
 american provides a variety of financial services to doctors and hospitals 
 prime based in <unk> n.j. provides management services to <unk> rehabilitation <unk> and diagnostic <unk> centers 
 for the year ended june N prime had a net loss of $ N million on sales of $ N million 
 the inflation-adjusted growth rate for france 's gross domestic product for the second quarter was revised upward to N N from the previous three months from the initial estimate of N N the national statistics institute said 
 the state agency said the latest revision left the growth rate for the first-quarter compared with the previous three months unchanged at N N 
 if the economy continues to expand by N N a quarter for the rest of the year it would leave <unk> growth for all of N at N N the institute said 
 that would be down from the N N rise posted in N 
 the canadian government announced a new 12-year canada savings bond issue that will yield investors N N in the first year 
 the annual interest rate for each of the next N years will be set each fall when details of a new series are released 
 canada savings bonds are major government instruments for meeting its financial requirements 
 the government has about N billion canadian dollars us$ N billion of such bonds currently outstanding 
 only canadian residents are permitted to buy canada savings bonds which may be redeemed any time at face value 
 the bonds go on sale oct. N 
 the debate over national service has begun again 
 after a decade in which more than N <unk> established their own service or conservation corps and dozens of school systems made community service a <unk> to high-school <unk> the focus has shifted to washington 
 at least N bills proposing one or another national program were introduced in congress this spring 
 one <unk> by sen. sam <unk> d. <unk> and rep. dave <unk> d. okla. would have restricted federal college subsidies to students who had served 
 an omnibus bill assembled by sen. edward kennedy d. mass. and including some diluted <unk> provisions along with proposals by fellow democratic sens. <unk> <unk> barbara <unk> and christopher dodd has been reported out of the senate labor committee 
 it might well win senate passage 
 president bush has outlined his own youth entering service yes plan though its details remain to be specified 
 what is one to think of all this 
 doctrine and special interests govern some responses 
 people eager to have youth pay their <unk> to society favor service proposals <unk> mandatory ones 
 so do those who seek a <unk> concept of <unk> a concept imposing stern obligations as well as <unk> rights 
 then there are <unk> opponents 
 to <unk> mandatory service is an <unk> and voluntary systems are <unk> uses of tax money 
 <unk> of the market question the value of the work national service would perform 
 if the market wo n't pay for it they argue it ca n't be worth its cost 
 elements of the left are also <unk> opposed they see service as a cover for the draft or fear the <unk> of youth or want to see rights <unk> not obligations 
 but what about those of us whose views are not <unk> by formula or <unk> 
 how should we think about national service 
 let 's begin by recognizing a main source of confusion national service has no agreed meaning 
 would service be voluntary or <unk> 
 short or long 
 <unk> or full-time 
 paid or unpaid 
 would participants live at home and work nearby or live in <unk> and work on public <unk> 
 what kinds of work would they do 
 what does national mean 
 would the program be run by the federal government by local governments or by private voluntary organizations 
 and who would serve 
 only males as with the draft or both <unk> 
 youth only or all ages 
 middle-class people or poor people or a genuine <unk> 
 many or few 
 those are not <unk> questions and the label national service answers none of them 
 then how should we think about national service 
 as a starting point here are five <unk> N consider the <unk> not the name 
 ignore national service in the <unk> consider specific proposals 
 they will differ in crucial ways 
 N service should be service 
 as commonly understood service implies sacrifice 
 it involves accepting risk or giving up income or deferring a career 
 it follows that proposals like <unk> whose benefits to <unk> are worth some $ N a year do not qualify 
 there is a rationale for such bills federal subsidies to college students amount to a <unk> bill without the <unk> <unk> those benefits should be earned not given 
 but the earnings exceed by N N the average income of young high-school graduates with full-time jobs 
 why call that service 
 N encouragement is fine <unk> is not 
 <unk> service is unconstitutional 
 it is also <unk> and <unk> 
 who will throw several hundred thousand <unk> in jail each year 
 but through tax policy and in other ways the federal government encourages many kinds of behavior 
 it should also encourage service <unk> by all classes and all ages 
 its encouragement should strengthen and not undercut the strong tradition of <unk> in the u.s. should build on the service programs already in existence and should honor local convictions about which tasks most need doing 
 N good programs are not cheap 
 enthusiasts assume that national service would get important work done <unk> forest fires fought housing <unk> students <unk> <unk> centers <unk> 
 there is important work to be done and existing service and conservation corps have shown that even <unk> who start with few skills can do much of it well but not <unk> 
 good service programs require <unk> <unk> training and supervision all of high quality 
 they involve <unk> to participants 
 full-time residential programs also require housing and full-time supervision they are particularly expensive more per participant than a year at stanford or yale 
 <unk> programs are cheaper but good ones still come to some $ N a year 
 are they worth that 
 <unk> suggest that good ones are especially so if the effects on participants are counted 
 but the calculations are <unk> 
 N <unk> youth are a special concern 
 are such expenditures <unk> then 
 yes if targeted 
 people of all ages and all classes should be encouraged to serve but there are many ways for middle-class kids and their elders to serve at little public cost 
 they can volunteer at any of thousands of <unk> institutions or participate in service programs required by high schools or encouraged by colleges or employers 
 <unk> youth do n't have those opportunities 
 they are not <unk> in high school or college 
 they are unlikely to be employed 
 and they have grown up in <unk> grim circumstances among family structures breaking down surrounded by <unk> <unk> and bleak prospects 
 but many of them can be quite <unk> <unk> by productive and disciplined service 
 some wo n't accept the discipline others drop out for other reasons 
 but some whom nothing else is reaching are transformed 
 learning skills producing something <unk> feeling useful they are no longer dependent others now depend on them 
 even if it is cheaper to build <unk> or <unk> apartments or plant <unk> with paid professionals the effects on the young people providing those services alter the <unk> 
 strictly speaking these youth are not performing service 
 they are giving up no income deferring no careers <unk> no risk 
 but they believe themselves to be serving and they begin to respect themselves and others to take control of their lives to think of the future 
 that is a service to the nation 
 it is what federal support should try hardest to achieve 
 mr. <unk> a carter administration budget official heads his own washington-based strategic planning firm 
 he is a co-author of national service what would it mean 
 lexington books N 
 government officials here and in other countries laid plans through the weekend to head off a monday market <unk> but went out of their way to keep their moves quiet 
 federal reserve chairman alan greenspan was on the telephones making it clear to officials in the u.s. and abroad that the fed was prepared to <unk> massive amounts of money into the banking system as it did in october N if the action were needed to prevent a financial crisis 
 and at the treasury secretary nicholas brady talked with friends and associates on wall street while assistant secretary david mullins carefully <unk> data on the friday market plunge 
 but the officials feared that any public announcements would only increase market jitters 
 in addition officials at the fed and in the bush administration decided that avoiding <unk> actions and statements over the weekend would give them more strength and flexibility should friday 's market drop turn into this morning 's rout 
 the disadvantage at this point is that anything you do that looks like you are doing too much tends to reinforce a sense of crisis said one government official insisting on <unk> 
 the fed 's efforts at <unk> were partly <unk> sunday morning when both the new york times and the washington post carried stories <unk> a senior fed official saying the central bank was prepared to pour cash into the banking system monday morning 
 fed chairman greenspan was surprised by both stories according to knowledgeable sources and insisted he had n't authorized any public comment 
 nevertheless fed officials acknowledged the stories were reasonably accurate <unk> of the central bank 's game plan 
 it is prepared to assume the same role it played in october N providing money to the markets if necessary to keep the financial system afloat 
 the fed provides money to the banking system by buying government securities from financial institutions 
 the <unk> of federal officials was evident in the appearance sunday of budget director richard darman on abc 's this week 
 secretary of the treasury brady and chairman greenspan and the chairman of the sec and others have been in close contact 
 i 'm sure they 'll do what 's right what 's prudent what 's <unk> he said 
 when it was suggested his comment was a <unk> mr. darman replied it is a <unk> 
 but in this context that 's the smart thing to do 
 at the treasury secretary brady issued a statement <unk> the stock market 's drop 
 today 's stock market decline does n't signal any fundamental change in the condition of the economy he said 
 the economy remains <unk> and the outlook is for continued moderate growth 
 but administration officials conceded that friday 's drop carried the chance of further declines this week 
 one possibility is that this is a surgical setback reasonably limited in its <unk> and not a major problem said one senior administration official who also asked that he not be named 
 the other is that we see another major disaster like two years ago 
 i think that 's less likely 
 nevertheless fed chairman greenspan and vice chairman manuel johnson were in their offices sunday evening monitoring events as they <unk> in markets around the world 
 the action was expected to begin with the opening of the new zealand foreign exchange markets at N p.m. est when stocks there plunged and to continue as the trading day began later in the evening in tokyo and through early this morning in europe 
 both the treasury and the fed planned to keep market rooms operating throughout the night to monitor the developments 
 in tokyo share prices dropped sharply by N N in early monday morning trading 
 after the initial slide the market appeared to be turning around but by early afternoon was headed lower 
 in the bush administration the lead is being taken by treasury secretary brady undersecretary robert <unk> and assistant secretary mullins 
 the three men worked together on the so-called brady commission headed by mr. brady which was established after the N crash to examine the market 's collapse 
 as a result they have extensive knowledge in financial markets and financial market crises 
 mr. brady was at the white house friday afternoon when the stock market 's decline began 
 he was quickly on the phone with mr. mullins who in turn was talking with the chairmen of the new york and chicago exchanges 
 later mr. brady <unk> mr. greenspan sec chairman richard breeden and numerous contacts in new york and overseas 
 aides say he continued to work the phones through the weekend 
 administration officials say president bush was <unk> throughout friday afternoon and evening even after leaving for camp david 
 he had frequent telephone <unk> with mr. brady and michael <unk> chairman of the counsel of economic advisers 
 government officials tried throughout the weekend to <unk> a <unk> appearance in order to avoid any sense of panic 
 treasury undersecretary david mulford for instance was at a meeting of the business council in hot springs va. when the stock market fell and remained there through the following day 
 and as of last night fed chairman greenspan had n't canceled his plans to address the american bankers association convention in washington at N a.m. this morning 
 ironically mr. greenspan was scheduled to address the same convention in dallas on oct. N N 
 he flew to dallas on oct. N when the market plummeted N points but then turned around the next morning and returned to washington without delivering his speech 
 following is a weekly listing of <unk> 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 <unk> asked price of each fund 's shares with the percentage of difference 
 b as of thursday 's close 
 c translated at commercial rand exchange rate 
 e in canadian dollars 
 f as of wednesday 's close 
 <unk> N <unk> 
 z not available 
 put down that phone 
 walk around the room take two deep <unk> 
 resist the urge to call your broker and sell all your stocks 
 that 's the advice of most investment professionals after friday 's 190-point drop in the dow jones industrial average 
 no one can say for sure what will happen today 
 and investment pros are divided on whether stocks will perform well or badly in the next six months 
 but they 're nearly <unk> on one point do n't sell into a panic 
 investors who sold everything after the crash of N lived to regret it 
 even after friday 's plunge the dow jones industrial average was N N above where it landed on oct. N two years ago 
 panic selling also was <unk> during other big declines in the past 
 the crash of N was followed by a substantial recovery before the great depression and awful bear market of the 1930s began 
 the october <unk> of N and N were scary but did n't lead to severe or sustained <unk> 
 indeed some pros see friday 's plunge plus any further damage that might occur early this week as a chance for bargain hunting 
 there has been a lot of emotional selling that presents a nice buying opportunity if you 've got the cash says stephen b. <unk> chief investment officer of chicago-based kemper financial services inc 
 but most advisers think the immediate course for individual investors should be to stand pat 
 when you see a runaway train says steve <unk> partner in the san francisco investment advisory firm brouwer & <unk> you wait for the train to stop 
 even for people who expect a bear market in coming months and a sizable number of money managers and market <unk> do the advice is wait for the market to bounce back and sell shares gradually during rallies 
 the best thing individual investors can do is just sit tight says marshall b. front executive vice president and head of investment counseling at stein roe & <unk> inc. a chicago-based investment counseling firm that manages about $ N billion 
 on the one hand mr. front says it would be <unk> to sell into a classic panic 
 on the other hand it 's not necessarily a good time to jump in and buy 
 this is all <unk> right now and when <unk> starts to run it can run further than anyone anticipates he said 
 so it 's more prudent to wait and see how things stabilize 
 roger <unk> professor of finance at yale university and head of the market information firm <unk> associates inc. says my real advice would be to just ride through it 
 generally it is n't <unk> to be in and out of the stock market 
 mr. <unk> thinks that this week is going to be a roller-coaster week 
 but he also thinks it is a good week to consider buying 
 john <unk> former president of the los angeles chapter of the national association of investors corp. an organization of investment clubs and individual investors says his fellow club members did n't sell in the crash of N and see no reason to sell now 
 we 're dedicated long-term investors not traders he says 
 we understand <unk> and euphoria 
 and we hope to take advantage of <unk> and buy stocks when they plunge 
 one camp of investment pros sees what happened friday as an opportunity 
 over the next days and weeks they say investors should look for stocks to buy 
 friday 's action was an old-fashioned panic says alfred goldman director of technical market analysis for a.g. edwards & sons in st. louis 
 stocks were being thrown out of windows at any price 
 his advice you ought to be there with a basket catching them 
 james craig portfolio manager for the <unk> <unk> fund which has one of the industry 's better track records started his buying during friday 's plunge 
 stocks such as <unk> foods corp. <unk> stores inc. american international group inc. and federal national mortgage association became such bargains that he could n't resist them he says 
 and mr. craig expects to pick up more shares today 
 it will be chaotic at first but i would not be buying if i thought we were headed for real trouble he says 
 he argues that stocks are reasonably valued now and that interest rates are lower now than in the fall of N 
 mr. front of stein roe suggests that any buying should concentrate in stocks that have lagged the market on the up side or stocks that have been beaten down a lot more than the market in this correction 
 his firm favors selected computer drug and <unk> stocks 
 other investment pros are more pessimistic 
 they say investors should sell stocks but not necessarily right away 
 many of them stress that the selling can be orderly gradual and done when stock prices are <unk> 
 on thursday william <unk> a seattle money manager used futures contracts in his personal account to place a bet that the broad market averages would decline 
 he thinks the underlying inflation rate is around N N to N N far higher than most people <unk> 
 in the pension accounts he manages mr. <unk> has raised cash positions and invested in gold and natural gas stocks partly as an inflation hedge 
 he thinks government officials are <unk> to let a recession start when government corporate and personal debt levels are so high 
 so he thinks the government will <unk> on the side of <unk> inflation 
 as a result mr. <unk> says i think the ball game 's over and investors are about to face a bear market 
 david m. jones vice president at <unk> g. <unk> & co. recommends treasury securities of up to five years ' maturity 
 he says the oct. N employment report showing slower economic growth and a severe weakening in the manufacturing sector is a warning sign to investors 
 one strategy for investors who want to stay in but hedge their bets is to buy put options either on the individual stocks they own or on a broad market index 
 a put option gives its holder the right but not the obligation to sell a stock or stock index for a specified price the strike price until the option expires 
 whether this insurance is <unk> depends on the cost of an option 
 the cost or premium tends to get fat in times of crisis 
 thus buying puts after a big market slide can be an expensive way to hedge against risk 
 the prices of puts generally did n't soar friday 
 for example the premium as a percentage of the stock price for certain puts on eli lilly & co. moved up from N N at thursday 's close to only N N at friday 's close even though the shares dropped more than $ N 
 but <unk> prices may <unk> when trading <unk> today 
 it 's hard to <unk> about a reasonable price for puts 
 but investors should keep in mind before paying too much that the average annual return for stock holdings long-term is N N to N N a year a return of N N is considered <unk> 
 paying say N N for insurance against losses takes a deep <unk> out of the return 
 james a. white and tom <unk> contributed to this article 
 <unk> banker commercial group said it sold $ N million of common stock to its employees at $ N a share giving them a total stake of more than N N in the commercial real estate brokerage firm 
 the firm which was acquired in april from sears roebuck & co. in a management-led buy-out had planned to sell up to $ N million of stock or a N N stake in the company to its N employees 
 though the offering did n't sell out james j. <unk> chairman and chief executive officer said we 're pretty proud of the employees ' response 
 he noted that unlike an employee stock ownership plan where a company usually <unk> money from third party lenders to buy stock that it sets aside to award employees over time here employees had to <unk> out their own cash for the stock 
 they came up with their own money instead of borrowed money mr. <unk> said 
 it 's totally different 
 he said the offering was designed to create long-term incentives for employees 
 we 're in a service business and in that context it 's vital to have your employees involved in the ownership so they have a stake in the success 
 the brokerage firm wo n't pay a dividend on the stock 
 employees have the right to trade stock among themselves and the company will establish an internal clearing house for these transactions 
 they may also eventually sell the shares to third parties but the outside investors who own the remaining N N of <unk> banker have the right to first refusal 
 those outside investors in <unk> banker include <unk> group a closely held washington d.c. merchant banking firm whose <unk> is frank <unk> former secretary of defense <unk> v. <unk> senior adviser to <unk> group mellon family trust of pittsburgh westinghouse credit corp. the financial services unit of westinghouse electric corp. bankers trust co. a unit of bankers trust new york corp. and a group of japanese investors represented by the investment banking unit of tokyo-based <unk> bank 
 bankers trust and <unk> financed the $ N million acquisition from sears roebuck 
 <unk> banker also named three outside director <unk> for its N member board 
 the <unk> are gary wilson chief financial officer of walt disney co. james montgomery chief executive officer of great western financial corp. and peter <unk> former commissioner of baseball and now a private investor 
 the first major event this morning in u.s. stock and futures trading may be a <unk> at the chicago mercantile exchange 
 under a reform arising from the N crash trading in the merc 's stock-index futures will break for N minutes if the contract opens and stays five points from friday 's close a move equal to N points on the dow jones industrial average 
 the aim of the <unk> would be to ease the opening of the new york stock exchange which would be <unk> by such a volatile move on the merc 
 that <unk> <unk> is just one of a number of <unk> adopted after the N crash 
 the big board also added computer capacity to handle huge <unk> in trading volume 
 several of those post-crash changes kicked in during friday 's one-hour collapse and worked as expected even though they did n't prevent a stunning plunge 
 but the major circuit breakers have yet to be <unk> 
 a deeper market plunge today could give them their first test 
 a further slide also would <unk> debate over a host of other more sweeping changes proposed but not implemented after the last crash 
 most notably several of the regulatory steps recommended by the brady task force which <unk> the N crash would be revived especially because that group 's chairman is now the treasury secretary 
 the most controversial of the brady recommendations involved establishing a single <unk> regulator to handle crucial <unk> questions such as setting consistent margin requirements for the stock and futures markets 
 but for the moment attention focuses on the reforms that were put into place and market regulators and participants said the circuit breakers worked as intended 
 big board and merc officials expressed satisfaction with the results of two limits imposed on of the merc 's standard & poor 's N contract as well as <unk> communications among exchanges 
 those <unk> from N p.m. to N p.m. <unk> and from N p.m. until the close of trading a half-hour later forced traders to buy and sell contracts at prices at or higher than their frozen levels 
 during the first halt after the s&p index had fallen N points the big board 's <unk> computer program automatically was triggered 
 that system is designed to separate <unk> program trades from all other trades to help exchange officials resolve order imbalances in individual stocks 
 one merc broker compared the action in the s&p pit during the two <unk> to a fire at a <unk> school 
 you do n't want the fire but you know what to do said howard <unk> an independent floor broker and a merc governor 
 there was no panic 
 the system worked the way we devised it to work 
 after <unk> for about N minutes the s&p index tumbled to its <unk> limit and the second freeze went into effect 
 traders then spent the last half-hour watching to see if the dow would drop N points mr. <unk> added referring to the level at which the stock market itself would have closed for an hour 
 one <unk> estimated that N N to N N of the s&p traders were just standing around watching 
 but the <unk> circuit breaker never had to kick in and <unk> on the chicago board of trade 's major market index also were n't triggered 
 the mmi and the s&p N are the two major indexes used by program traders to run their computerized trading strategies 
 the programs are considered by many to be a major cause of the N crash 
 the process of post-crash reforms began with calls to <unk> the markets and wound up a year later with a series of rather technical adjustments 
 in october N just after the market drop washington was <unk> in talk of sweeping changes in the way the financial markets are structured and regulated 
 over the next year that grand agenda was <unk> down to a series of steps to soften big stock drops by <unk> trading to give market players time to <unk> and reconsider positions 
 in addition limits were placed on computer-driven trading and steps were taken to better link the stock and futures markets 
 few changes were made in the way the markets are regulated 
 at the outset the prime target was program trading which was much discussed but little understood on capitol hill 
 there were also calls to strip the stock markets of derivative products such as stock-index futures and options which federal judge stanley <unk> for example <unk> to <unk> attached to the basic market 
 and there was much criticism of the new york stock exchange 's system of having stock trades flow through specialists or market makers 
 when the brady task force 's powerful analysis of the crash was released in january N it immediately <unk> the reformers ' agenda 
 arguing that the separate financial <unk> acted as one and concluding that the crash had raised the possibility of a <unk> financial system breakdown the presidential task force called for establishing a <unk> to oversee the markets to make margins consistent across markets to <unk> clearing systems and to install circuit breakers 
 only the last of those recommendations ever was implemented 
 the reagan white house held the brady recommendations at arm 's length and named a second panel the working group on the financial markets to review its analysis and those of other crash studies 
 in may N the working group made up of representatives from the federal reserve the treasury the securities and exchange commission and the commodity futures trading commission finally endorsed only circuit breakers 
 after several more months of arguments among various stock exchanges and futures markets circuit breakers were set in place with the most notable <unk> trading after N and N point drops in the dow jones industrial average 
 privately some free <unk> dismissed such <unk> as <unk> to <unk> 
 after all this free-market argument went the dow only dropped more than N points once this century 
 circuit breakers set to soften big drops 
 if s&p futures fall N points at opening contract trading <unk> for N minutes 
 if dow industrials fall N points at opening contract trading <unk> for N minutes 
 if s&p futures fall N points equivalent to about N points on <unk> trading is frozen for half hour to that price or higher 
 on nyse program trades are diverted into a separate computer file to determine buy and sell orders 
 if s&p futures fall N points trading is restricted for an hour to that price or higher 
 if dow industrials fall N points trading on the big board halts for an hour 
 s&p and mmi contracts also halt 
 if <unk> drops N points big board halts trading for two hours 
 trading in mmi and s&p futures also halted 
 brady task force recommendations jan. N 
 establish an <unk> regulator for financial markets 
 <unk> <unk> systems 
 make margins consistent across stock and futures markets 
 sec proposals may N 
 require prompt reports of large securities trades 
 give sec authority to monitor <unk> by affiliates of brokerage firms 
 transfer jurisdiction over <unk> futures to sec from cftc 
 opposed by new sec chairman 
 give sec authority to halt securities trading also opposed by new sec chairman 
 congressional proposal 
 create a task force to review current state of the securities markets and securities laws 
 breaking the soviet government 's television monopoly an independent company has gained rights to show world programming including american films 
 there must not be a monopoly there must be freedom of choice for both journalists and viewers <unk> i. <unk> the president of the <unk> tv company told the weekly newspaper <unk> 
 the company is already working on its own programming in several <unk> cities and hopes to be on the air regularly in about a year the newspaper said 
 mr. <unk> told <unk> that he recently had been to the u.s. to pick up the rights to show N u.s. films in the soviet union 
 <unk> 's article was accompanied by a picture of mr. <unk> <unk> singer john denver in colorado 
 even though it will be independent of official television <unk> will have an oversight board that will include members of the communist youth league 
 south africa 's national union of <unk> said that about N diamond miners struck for higher wages at de beers consolidated mines ltd. 
 de beers said that workers at five of the group 's mines were on strike which it said was peaceful with orderly <unk> <unk> at one of the mines 
 the <unk> in negotiations occurred with de beers offering a N N increase in the minimum-wage category while the union demanded a N N increase in the minimum wage 
 japan 's opposition socialist party denied that its legislators had been <unk> by <unk> owners 
 the <unk> had been raised in parliament by the governing liberal democratic party following magazine reports suggesting that money from <unk> <unk> called pachinko had <unk> politics 
 <unk> <unk> secretary general of the socialist party acknowledged that nine party lawmakers had received donations from the pachinko association totaling N million yen about $ N but said the donations were legal and none of its members acted to favor the industry 
 the world wide fund for nature said that spain argentina thailand and indonesia were doing too little to prevent illegal trade in endangered wildlife across their borders 
 a report by the conservation group presented at the <unk> convention on international trade in endangered <unk> in <unk> accused the four of trading protected <unk> ranging from <unk> to <unk> 
 fund official simon <unk> said world trade in wildlife was estimated to total $ N billion of business annually 
 a nato project to build a <unk> for the 1990s was <unk> by the <unk> of three of its eight participating nations 
 britain france and italy announced technical reasons for <unk> but some officials pointed to growing reluctance among the allies to commit themselves to big defense spending while <unk> <unk> talks show signs of success 
 small wonder that britain 's labor party wants credit controls 
 a few hours after the party launched its own <unk> credit card earlier this month the <unk> raised the nation 's base interest rate 
 labor 's visa card is believed to be the first linked to a british political party 
 labor gets N pence N cents for every N about $ N that a user charges to the card 
 as with other plastic in britain 's <unk> environment the labor card <unk> by <unk> bank carries a stiff in this case N N annual rate on the unpaid balance 
 china 's <unk> <unk> program has achieved some successes in <unk> runaway economic growth and stabilizing prices but has failed to eliminate serious defects in state planning and an <unk> drain on state budgets 
 the official china daily said retail prices of <unk> foods have n't risen since last december but acknowledged that huge government subsidies were a main factor in keeping prices down 
 the state statistical bureau found that more than N billion <unk> $ N million was spent in the first half of the year for pork subsidies 
 the newspaper quoted experts as saying the subsidies would cause the difference between prices and real values of commodities to become very <unk> and reduce needed funds for investment in the already difficult state budget 
 the aim of the <unk> measures was to <unk> economic growth which soared to N N last year to N N in N 
 economists now predict the growth rate will be about N N for the year 
 in a sign of growing official <unk> for <unk> russian orthodox <unk> were allowed to <unk> the <unk> anniversary of the moscow <unk> in the kremlin 's <unk> <unk> <unk> where <unk> were <unk> 
 a <unk> $ N million <unk> of <unk> was completed on a hill outside hong kong facing china 
 the <unk> is the <unk> of <unk> <unk> <unk> director of the <unk> lin <unk> who said hong kong is such a <unk> place we also need some kind of <unk> symbol 
 it all seemed innocent enough last april one steven b. <unk> visited justin products inc. here identified himself as a potential customer and got the word on the little company 's new <unk> players for children 
 it is almost identical to the sony product mr. <unk> <unk> after seeing <unk> and pictures 
 replied a justin salesman exactly 
 the justin merchandise carried wholesale prices some N N below those of sony corp. of japan 's my first sony line 
 the <unk> <unk> enthusiastic and promised to return 
 but instead of a new customer part of a <unk> <unk> from <unk> sony justin got a costly legal <unk> 
 mr. <unk> it turned out was a private <unk> using a hidden tape recorder to gather information for sony 
 his recording later turned up as a court exhibit 
 seeking to keep justin 's my own product line off the u.s. market sony last may filed a suit in manhattan federal court <unk> the <unk> of trademark infringement unfair competition and other violations of business law 
 since then life has changed a lot for <unk> leonard <unk> justin 's owner 
 i have n't been able to get a decent night 's sleep since this has been going on he says 
 it 's the most <unk> thing in my life i ca n't even attend to my business 
 his company annual sales about $ N million may suffer a costly blow losing an estimated N N of total sales if sony annual sales about $ N billion <unk> 
 justin 's plight shows what can happen when a tiny company suddenly faces the full legal might of a <unk> multinational 
 with considerable irony the case also shows how completely japan has turned the tables on u.s. business 
 americans used to complain bitterly about being <unk> by <unk> products from japan 
 now sony whose innovative <unk> products are among the most <unk> in consumer electronics is bitterly complaining about a little u.s. firm with a cheap <unk> produced in china 
 the <unk> of this is that justin knocked off the sony line and sony wants to stop it says lewis h. <unk> sony 's attorney who previously <unk> <unk> 's <unk> 
 sony itself declines to comment 
 if sony wins mr. <unk> says its little rival will have to try to sell the products overseas 
 at worst he adds they 'd have to <unk> them all up and throw them away 
 mr. <unk> denies the suit 's charges and says his only mistake was taking on sony in the marketplace 
 i made a similar line and i produced it cheaper he says 
 today u.s. judge john e. <unk> is expected to rule on sony 's renewed request for a pre-trial order blocking sale of the disputed products on which deliveries began in july 
 the judge turned down an earlier sony request for such an order a decision upheld on appeal but sony returned with additional evidence and arguments 
 though hoping to settle the case justin <unk> to fight on if necessary 
 but the battle is more than justin <unk> for 
 i had no idea i was getting in so deep says mr. <unk> who founded justin in N 
 mr. <unk> had sold <unk> inc. a taiwan electronics maker and retired only to find he was <unk> 
 with justin he began selling toys and electronics made mostly in hong kong beginning with <unk> mouse <unk> 
 the company has grown to about N employees from four initially mr. <unk> says 
 justin has been profitable since N adds the official who shares his office with numerous teddy bears all samples from his line of <unk> toys 
 like many others mr. <unk> took notice in N when sony in a classic example of market <unk> changed the plastic skin and <unk> on the famous <unk> line of portable audio equipment and created the my first sony line for children 
 the <unk> <unk> new products looked more like toys than the adult models 
 in court papers sony says it has spent more than $ N million to promote the line with resulting sales of over a million units 
 sony found a new market niche but mr. <unk> figured that its prices left plenty of room for a <unk> competitor 
 his products are n't exact copies of sony 's but strongly resemble them in size shape and especially color 
 sony uses mostly red and blue with <unk> of yellow and so does justin on the theory that kids prefer these colors 
 to be successful a product can be any color <unk> as long as it is <unk> red says charles e. <unk> justin 's attorney 
 by last winter justin was showing <unk> at toy <unk> in hong kong and new york and sony noticed 
 indeed concerned that sony sales personnel were threatening legal action or other <unk> such as <unk> desirable sony products against justin 's customers mr. <unk> fired off a letter to sony in april 
 he himself threatened to take the matter to the federal trade commission or u.s. justice department 
 but justin has n't pursued those charges which were without merit according to mr. <unk> the sony attorney 
 recalls mr. <unk> our purpose was to influence them to leave us alone 
 we never intended taking on sony we do n't have the resources 
 sony answered the empty threat with its real suit 
 off and on since then the companies have <unk> in court 
 and justin in a news release says once competitive sony now resorts to <unk> tactics in american <unk> to <unk> out and protect niche markets 
 sony 's lawyer insists that the company 's tactics including the use of a private <unk> <unk> as a buyer are routine in such matters 
 he also insists that sony no less than others has a legal right to protect its trade dress in this case mostly the colors that it claims make my first sony products distinctive 
 justin claims it began using the same colors on electronic goods for children long before sony entered the children 's market 
 whatever its merits sony 's aggressive defense is <unk> for justin 
 it 's also costly 
 mr. <unk> says he has paid more than $ N in legal fees so far 
 of sony mr. <unk> says they know there 's no way for them to lose 
 they just keep <unk> me in deeper until i reach the point where i give up and go away 
 for now though he <unk> to hang in 
 <unk> charles h. <unk> ii chairman of <unk> corp. purchased N shares or N N of <unk> 's common according to a filing with the securities and exchange commission 
 the stock was bought on thursday in a privately negotiated transaction the filing said 
 as previously reported <unk> <unk> n.h. and <unk> gas & electric co. <unk> mass. are targets of unsolicited tender offers from <unk> eastern utilities associates 
 eastern utilities has offered $ N a share for <unk> and $ N a share for <unk> gas and has extended both offers to dec. N 
 both companies rejected the offers 
 dresdner bank ag of west germany has announced a friendly tender offer for control of banque <unk> de <unk> a french bank whose main shareholder is france 's societe generale the societe de <unk> <unk> said 
 the tender offer by west germany 's <unk> commercial bank is in two stages 
 dresdner is offering to acquire N N of <unk> 's capital for N francs $ N a share 
 the terms of the offer put a value of N million francs $ N million on the N N <unk> 
 the societe generale banking group controls N N of the <unk> while societe generale de <unk> s.a. owns N N and financiere tradition a holding company owns N N 
 mexican investor joel <unk> <unk> said he sold a block of N shares of smith laboratories inc. common stock to companies affiliated with him 
 in a filing with the securities and exchange commission mr. <unk> <unk> said <unk> syndicate inc. <unk> ii inc. and <unk> iii inc. bought the N shares on oct. N for $ N million or $ N a share 
 mr. <unk> <unk> said that he <unk> group ltd. <unk> <unk> ii and <unk> iii are all affiliated and hold a combined stake of N shares or N N 
 mr. <unk> <unk> has said he wants to purchase more shares 
 in san diego smith laboratories president timothy <unk> said the transfer of the shares is n't significant 
 <unk> new york said it and the management of sports & recreation inc. bought the operator of the <unk> sports <unk> chain for some $ N million 
 the investment bank becomes majority shareholder in sports & recreation a <unk> sporting goods retailer said oliver e. <unk> a member of <unk> 's management committee and a director of the chain 
 sports <unk> tampa fla. posted revenue of $ N million for the year ended july N 
 the company is very profitable on an operating basis mr. <unk> said but he declined to specify numbers 
 in N sports & recreation 's managers and certain passive investors purchased the company from <unk> corp. of <unk> ill 
 in the latest transaction management bought out the passive investors ' holding mr. <unk> said 
 hammond co. newport beach calif. said fidelity national financial inc. extended its previous agreement under which it wo n't purchase any more of the mortgage banker 's common stock through oct. N 
 the previous agreement expired thursday 
 hammond said that its discussions with fidelity an irvine calif. <unk> underwriter are continuing but that prospects for a longer-term standstill agreement are uncertain 
 fidelity has increased its stake in hammond to N N in recent months 
 statements made in securities and exchange commission filings led hammond to request a standstill agreement 
 giant group ltd. said it terminated negotiations for the purchase of <unk> airways a <unk> regional carrier that operates the united express <unk> service under contract to ual corp. 's united airlines 
 giant a beverly hills calif. collection of companies that is controlled by hollywood producer burt sugarman did n't give a reason for <unk> its plan to acquire the airline and <unk> officials could n't be reached for comment 
 giant agreed last month to purchase the carrier 
 giant has n't ever disclosed the proposed price although <unk> inc. an <unk> <unk> aircraft consulting concern has valued <unk> 's fleet at about $ N million 
 the airline would have become the latest in a <unk> <unk> of giant companies which are involved in making cement recycling newsprint and operating fast-food restaurants 
 the state-controlled insurer assurances <unk> de france said it has obtained regulatory approval to increase its stake in the financial holding company cie. de navigation mixte above N N from the current level of about N N 
 friday 's approval was needed to conform with <unk> rules regarding companies with bank interests and follows a similar approval given wednesday to cie financiere de paribas 
 both paribas and <unk> have been increasing their stakes in navigation mixte recently for what they have termed investment purposes although the issue has been surrounded by takeover speculation in recent weeks 
 <unk> did n't comment officially on its reasons for seeking the approval but people close to the group said it was done to make sure the group would have the flexibility to increase its stake in the future should interesting price opportunities arise 
 an <unk> official did specify however that there was no foundation to recent rumors the group might be acting in concert with paribas 
 lockheed <unk> systems co. a unit of lockheed corp. said it agreed to join with <unk> s.p a. of <unk> italy to propose a new generation of jet <unk> for the u.s. air force 
 the air force is looking to buy N new primary jet <unk> with a total value of $ N billion to $ N billion between N and N 
 the aircraft would replace the <unk> made by the <unk> aircraft co. unit of general dynamics corp. which the air force uses to train jet pilots 
 lockheed said the u.s. navy may also buy an additional N <unk> aircraft to replace its <unk> <unk> made by the <unk> aircraft corp. unit of <unk> corp 
 under the agreement with lockheed <unk> will license lockheed to build the <unk> <unk> jet <unk> and will supply certain structures 
 lockheed will build additional structures and perform final assembly of the <unk> <unk> at its <unk> ga. plant should the air force order the craft 
 a lockheed spokesman in <unk> calif. said he was n't aware of which other companies would be competing for the air force contract 
 striking auto workers ended their <unk> <unk> of a metal shop at a <unk> s.a. factory in eastern france friday as pay talks got under way in the capital 
 but the <unk> <unk> came as a nationwide dispute by finance ministry employees disrupted border <unk> and threatened the government 's ability to pay its bills 
 the <unk> <unk> began filing out of the shop which makes auto parts at the plant in <unk> after voting N to N to abandon the <unk> 
 their withdrawal was based on promises by <unk> to open negotiations in paris at the same time the last man left the premises 
 the strike by customs officers tax collectors treasury workers and other civil <unk> attached to the ministry of finance may pose a more serious challenge to the government and the average <unk> 
 ministry employees complain that they are poorly paid because of a complex <unk> system they say fails to take into account their education and level of technical expertise 
 the market for $ N billion of high-risk junk bonds battered by a succession of defaults and huge price declines this year practically <unk> friday 
 trading ground to a halt as investors rushed to sell bonds only to find themselves <unk> by potential buyers 
 stunned they watched brokerage houses mark down price quotations on their junk holdings while being able to execute very few actual trades 
 the junk bond market is in a state of gridlock now there are no bids only offers says independent investor martin d. <unk> who manages nearly $ N billion and who recently decided to buy <unk> securities for a new fund 
 this <unk> is far from over he says 
 junk 's collapse helped <unk> the <unk> selling of stocks that produced the <unk> one-day dive in the dow jones industrial average since the oct. N N crash 
 simultaneously it also helped trigger this year 's biggest rally in the u.s. government bond market as investors rushed to move capital into the <unk> securities they could find 
 but an <unk> <unk> <unk> the junk market friday as prices tumbled on hundreds of high-yield bonds despite no active trading says john <unk> an economist at moody 's investors service inc 
 for example the price of <unk> corp. 's $ N million of N N N bonds due N sold less than two years ago by goldman sachs & co. plummeted N N to just N cents on the dollar 
 but not even goldman would make a market in the securities of <unk> the owner of the nationwide chain of N convenience stores that is strapped for cash 
 goldman officials declined to comment 
 junk bonds which <unk> from less than $ N billion at the start of this decade have been declining for months as issuer after issuer sank beneath the weight of hefty interest payments 
 the shaky market received its biggest jolt last month from campeau corp. which created its u.s. retailing empire with junk financing 
 campeau developed a cash squeeze that caused it to be <unk> on some interest payments and to put its prestigious <unk> department-store chain up for sale 
 now dozens of corporations including <unk> allen tw services and york international that are counting on at least $ N billion of scheduled new junk financings to keep their highly leveraged takeovers and buy-outs afloat may never get the money 
 the music has stopped playing says michael <unk> a principal in the investment firm of levy <unk> 
 you 've either got a chair or you do n't 
 in friday 's aftermath says r. douglas <unk> a director of high-yield finance at first boston corp. much of the $ N billion forward calendar could be deferred depending on the <unk> 
 in august first boston withdrew a $ N million junk offering of ohio <unk> bonds because potential buyers were very <unk> 
 the outlook looks shaky because we 're still waiting for mutual funds in particular to dump some of their junk bond holdings to pay off redemptions by individual investors says king <unk> senior vice president at <unk> <unk> & <unk> an investment arm of xerox financial services 
 indeed a moody 's index that tracks the net asset values of N high-yield mutual funds declined for the <unk> consecutive day friday 
 in a stark contrast the benchmark 30-year treasury bond climbed more than N N points or about $ N for each $ N face amount to N N its biggest gain of the year 
 the bond 's yield dropped to N N the lowest since march N N according to technical data global markets group 
 the yield on three-month treasury bills considered the <unk> of all investments plummeted about N percentage point to N N the largest one-day decline since N 
 the main catalyst for government bond market rally was the 190.58-point drop in the dow jones industrial average 
 when you get panic in one market you get flight to quality in the other said maria ramirez money market economist at drexel burnham lambert inc 
 nevertheless the problems of the junk market could prompt the federal reserve to ease credit in the months ahead 
 this marks a significant shift in the interest rate outlook says william sullivan director of money market research at dean witter reynolds inc. new york 
 any sustained <unk> could be a lift for junk bonds as well as other securities 
 robert dow a partner and portfolio manager at lord <unk> & co. which manages $ N billion of high-yield bonds says he does n't think there is any fundamental economic rationale for the junk bond rout 
 it was <unk> <unk> 
 he adds the junk market has <unk> some trouble and now some people think that if the equity market gets <unk> that means the economy will be terrible and that 's bad for junk 
 i do n't believe that 's the case but i believe that people are running scared 
 there is a flight to quality and the quality is not in equities and not in junk it 's in treasurys 
 even as trading in high-yield issues <unk> up over the past month corporations sold more than $ N billion of new junk bonds 
 for example a recent $ N million offering of <unk> gas services l.p. bonds sold by first boston was three times oversubscribed 
 a $ N million offering of turner broadcasting system inc high-yield securities sold last week by drexel was increased $ N million because of strong demand 
 first boston estimates that in november and december alone junk bond investors will receive $ N billion of coupon interest payments 
 that 's a clear indication that there is and will be an <unk> of basic business going on says mr. <unk> of first boston 
 i do n't know how people can say the junk bond market disappeared when there were $ N billion of orders for $ N million of junk bonds sold last week by turner says raymond <unk> <unk> of merchant banking at merrill lynch & co 
 when the rally comes insurance companies will be leading it because they have billions to invest and invest they will 
 there is plenty of money available from people who want to buy <unk> deals it 's the stuff that 's financed on a <unk> that people are wary of 
 but such highly leveraged transactions seemed to have <unk> this year casting a pall over much of the junk market 
 michael <unk> director of fixed-income research at kemper financial services says the quality of junk issues has been getting poorer contributing to the slide in prices 
 last year we probably bought one out of every three new deals he says 
 this year at best it 's in one in every five or six 
 and our credit standards have n't changed one <unk> 
 however mr. <unk> said the slide in junk is creating one hell of a buying opportunity for selective buyers 
 for the moment investors seem more <unk> with the bad junk than the good junk 
 the market has been weak since the announcement of the campeau cash squeeze and the company 's subsequent bailout by olympia & york says mr. <unk> of merrill lynch 
 that really affected the market in that people started to ask what else is in trouble 
 well before campeau though there were signs that the junk market was <unk> through one of its worst years ever 
 despite the relatively strong economy junk bond prices did nothing except go down <unk> by a seemingly endless trail of bad news 
 in june two months before it would default on interest payments covering some of its $ N billion of speculative debt securities new york-based integrated resources inc. said it ran out of borrowed money 
 in july southmark corp. the dallas-based real estate and financial services company with about $ N billion of junk bonds voluntarily filed for protection under u.s. bankruptcy law 
 by the end of july the difference in yield between an index of junk bonds and seven-year treasury notes widened to more than N percentage points 
 in august resorts international inc. which sold more than $ N million of junk bonds suspended interest payments 
 in september just as the cash squeeze hit campeau <unk> financial corp. defaulted on $ N million of notes and appeared unlikely to pay interest on a total of $ N billion of debt securities 
 meantime regulators are becoming increasingly worried as the rush to leverage shows no signs of <unk> 
 moody 's says the frequency of corporate credit <unk> is the highest this year since N 
 in addition there are six times as many troubled banks as there were in the recession of N according to the federal deposit insurance corp 
 the era of the 1980s is about compound interest and the reaching for it says james grant editor of grant 's interest rate <unk> an early critic of the junk bond market 
 what we 've begun to see is the damage to businesses of paying <unk> compound interest 
 businesses were borrowing at interest rates higher than their own earnings 
 what we 're seeing now is the <unk> <unk> of asset values to a future when <unk> debt will be hard to obtain rather than easy 
 friday 's market activity 
 prices of treasury bonds surged in the biggest rally of the year as investors fled a <unk> stock market 
 the benchmark 30-year treasury bond was quoted N p.m. edt at N N compared with N N thursday up N N points 
 the yield on the benchmark fell to N N the lowest since march N N according to technical data global markets group 
 the flight to quality began late in the day and followed a <unk> fall in the stock market 
 treasurys opened lower reacting <unk> to news that the producer price index a measure of inflation on the wholesale level accelerated in september 
 bond prices barely <unk> until midday 
 many bond market participants will be closely <unk> the action of the federal reserve which might repeat its october N injection of huge amounts of liquidity to <unk> the financial markets and keep the economy from slowing into a recession 
 prices of municipals investment-grade <unk> and mortgage-backed bonds also rose but lagged behind their treasury counterparts 
 mortgage securities rose in hectic trading with most of the activity concentrated in government national mortgage association N N coupon securities the most liquid mortgage issue 
 the ginnie mae november N N issue ended at N N up N point on the day to yield about N N to a 12-year average life assumption 
 investment-grade corporate bonds were up about N to N point 
 but the yield spread between <unk> investment-grade issues and <unk> bonds widened 
 and the yields on telephone and utility issues rose relative to other investment-grade bonds in anticipation of this week 's $ N billion bond offering by the tennessee valley authority 
 despite rumors that the tva 's long-awaited offering would be postponed because of the debacle in the equity markets sources in the underwriting syndicate said they expect the issue will be priced as scheduled 
 one of the sources said the smaller portions of $ N million each of five-year and 10-year bonds have already been substantially oversubscribed 
 municipal bonds rose as much as N point 
 roger <unk> contributed to this article 
 friday 's 190-point plunge in stocks does not come <unk> the climate of anxiety that dominated financial markets just prior to their N october crash and <unk> have been put in place to keep markets more orderly 
 still the lesson is about the same on friday the 13th the market was spooked by washington 
 the consensus along the street seems to be that the plunge was triggered by the financing problems of the ual takeover and it 's certainly true the rout began immediately after the ual trading halt 
 still the consensus seems almost as wide that one <unk> bid is no reason to write down the value of all u.s. business 
 this <unk> leads us to another piece of news moving on the dow jones <unk> shortly before the downturn the success of senate democrats in <unk> the capital gains tax cut 
 the real value of all shares after all is directly <unk> by the tax on any profits all the more so given the limits on deductions for losses that show gains are not ordinary income 
 and market expectations clearly have been raised by the capital gains victory in the house last month 
 an hour before friday 's plunge that provision was stripped from the tax bill leaving it with $ N billion in tax increases without a capital gains cut 
 there is a great deal to be said to be sure for <unk> the garbage out of the reconciliation bill 
 it would be a good thing if congress started to decide issues <unk> on their individual merits without <unk> 
 for one thing no one doubts that the capital gains cut would pass on an <unk> vote 
 since senate leaders have so far <unk> it up with procedural <unk> promises of a cleaner bill are suspect 
 especially so since president bush has been weakened by the panama <unk> 
 to the extent that the ual troubles contributed to the plunge they are another instance of washington 's <unk> fingers 
 as the best opportunities for corporate restructurings are exhausted of course at some point the market will start to reject them 
 but the airlines are <unk> a clear case given anti-takeover <unk> by secretary of transportation skinner who <unk> to believe safety will be <unk> if <unk> and british airways own interests in companies that fly airplanes 
 worse congress has started to jump on the skinner <unk> 
 james <unk> the minnesota democrat who chairs the public works and transportation committee 's aviation subcommittee has put an <unk> takeover bill on <unk> speed so that it would be passed in time to affect the american and united air lines bids 
 it would give mr. skinner up to N days to review any bid for N N or more of the voting stock of any u.s. carrier with revenues of $ N billion or more 
 so the ual deal has problems and the market loses N points 
 <unk> mr. secretary and mr. congressman 
 in the N crash remember the market was shaken by a danny <unk> proposal to tax takeovers out of <unk> 
 even more important in our view was the treasury 's threat to <unk> the dollar 
 the treasury is doing the same thing today <unk> the dollar is not under <unk> pressure 
 also traders are in better shape today than in N to survive selling <unk> 
 they are better capitalized 
 they are in less danger of losing liquidity simply because of tape <unk> and clearing and settlement delays 
 the fed promises any needed liquidity 
 the big board 's <unk> with the chicago board of trade has improved it will be interesting to learn if circuit breakers prove to be a good idea 
 in any event some traders see stocks as <unk> today unlike N 
 there is nothing wrong with the market that ca n't be <unk> by a little <unk> and common sense in washington 
 but on the bearish side that may be too much to expect 
 first chicago corp. posted a third-quarter loss of $ N million after joining other big banks in further adding to its reserves for losses on foreign loans 
 the parent company of first national bank of chicago with $ N billion in assets said it set aside $ N million to absorb losses on loans and investments in financially troubled countries 
 the addition on top of two big N additions to <unk> reserves brings the reserve to a level equaling N N of <unk> and long-term loans outstanding to troubled nations 
 first chicago since N has reduced its loans to such nations to $ N billion from $ N billion 
 despite this loss first chicago said it does n't need to sell stock to raise capital 
 during the quarter the company realized a pretax gain of $ N million from the sale of its first chicago investment <unk> unit 
 combined foreign exchange and bond trading profits dipped N N against last year 's third quarter to $ N million from $ N million 
 gains from first chicago 's venture capital unit a big leveraged buy-out investor rose N N to $ N million from $ N million a year ago 
 interest income and most fee income was strong 
 greece 's second <unk> of general elections this year is slated for nov. N 
 for those hoping to see a <unk> of political <unk> restored in view of greece 's <unk> <unk> under <unk> <unk> and subsequent three-month <unk> with a <unk> coalition government there is but one bright sign the scandals still <unk> former prime minister andreas <unk> and his fallen socialist government are like flies <unk> around a <unk> <unk> 
 in the <unk> round of voting <unk> gave no clear mandate to any single political party 
 the ad interim coalition government that emerged from <unk> <unk> was in <unk> little more than the <unk> <unk> of ideological <unk> on one side the <unk> new democracy party headed by <unk> <unk> 
 on the other the so-called coalition of the left and progress a <unk> and rather deceptive title for a merger of the <unk> communist party of greece and its <unk> <unk> the <unk> left 
 the <unk> bond for this <unk> <unk> was plain <unk> mr. <unk> 's party as common political enemy 
 the <unk> goal was a <unk> of government corruption <unk> at all levels but the main marks were mr. <unk> and his <unk> associates 
 in point of fact this <unk> was overdue by decades 
 when reduced to <unk> status in <unk> <unk> <unk> however the notion <unk> into a promised assault with targets primarily for political gains not justice 
 with regard to greece 's <unk> <unk> scandal mr. <unk> 's principal <unk> remains george <unk> former owner of the bank of <unk> and <unk> <unk> now <unk> in a jail cell in <unk> mass. from where he is fighting <unk> proceedings that would return him to greece 
 mr. <unk> 's credibility is at best <unk> 
 he has ample motive to shift the blame and his testimony has also been found less than <unk> on numerous points 
 nevertheless the new democracy and communist parties herald his <unk> as proof of <unk> <unk> 
 among <unk> questions are whether mr. <unk> received $ N million of stolen bank of <unk> funds and an additional $ N in <unk> as contended whether the prime minister ordered state agencies to deposit some $ N million in mr. <unk> 's bank and then <unk> off the interest and what <unk> 's cut was from the $ N million mr. <unk> <unk> 
 two former ministers were so heavily <unk> in the <unk> affair that <unk> members of parliament voted to refer them to the special court 
 but <unk> parliamentary probe was the case of millions of <unk> mr. <unk> <unk> into new democracy <unk> 
 in the end the investigation produced only <unk> evidence and indications that point to <unk> not <unk> proof 
 on another issue <unk> were told how their national intelligence agency the <unk> regularly monitored the telephone conversations of prominent figures including key opposition politicians journalists and <unk> cabinet members 
 despite convincing arguments it was never established that mr. <unk> personally ordered or directed the <unk> 
 the central weakness of the scandals debates was pointed up especially well when discussions focused on arms deals and <unk> 
 the coalition government tried to show that <unk> ministers had received hefty sums for <unk> the purchase of <unk> fighting falcon and mirage N combat aircraft produced by the <unk> general dynamics corp. and france 's <unk> <unk> dassault respectively 
 naturally neither general dynamics nor dassault could be expected to <unk> its prospective future dealings by making disclosures of sums paid or not to various <unk> officials for services <unk> 
 so it seems that mr. <unk> and his communist <unk> may have <unk> served mr. <unk> a moral victory on a <unk> <unk> whether guilty or not can now <unk> the <unk> <unk> the whole affair as a <unk> hunt at mr. <unk> 's expense 
 but while <unk> high <unk> alone wo n't help <unk> regain power mr. <unk> should never be underestimated 
 first came his predictable <unk> he charged the coalition of the left and progress had sold out its leftist <unk> by <unk> in a <unk> plot aimed at <unk> <unk> and <unk> the course of socialism in greece 
 then to <unk> his credibility with the left he <unk> some smaller leftist parties to stand for election under the <unk> <unk> 
 next he continued to court the communists many of whom feel <unk> by the <unk> coalition 's birth by bringing into <unk> a <unk> communist party candidate 
 for balance and in hopes of gaining some <unk> <unk> votes he managed to attract a former new democracy party representative and known political enemy of mr. <unk> 
 thus <unk> heads for the polls not only with diminished <unk> but also with <unk> of approval from representatives of its <unk> <unk> 
 crucial as these elections are for greece pressing issues of state are getting lost in the <unk> 
 the country 's future nato participation remains <unk> for instance 
 greece also must <unk> major pieces of legislation in preparation for the N targets of heightened common market cooperation 
 greece 's <unk> relations with the u.s. need attention soon as well 
 for one the current accord concerning u.s. military bases in greece <unk> in may N 
 negotiations for a new agreement were frozen before the june elections but the <unk> is running 
 another matter of concern is the <unk> of <unk> <unk> a palestinian terrorist who is wanted in the u.s. for the N <unk> of a pan american airways flight 
 the <unk> courts have decided in favor of <unk> in the <unk> case but the matter <unk> final approval from greece 's next justice minister 
 the <unk> seem barely aware of the importance of the case as a <unk> test of whether greece will be counted in or out for international efforts to combat terrorism 
 that <unk> could win the elections outright is <unk> the <unk> press previously eager to palm off <unk> 's line has turned on mr. <unk> with a <unk> <unk> 
 yet the possibility of another <unk> government is all too real 
 if mr. <unk> becomes the major opposition leader he could <unk> a <unk> coalition 
 also he could force new elections early next year by frustrating the procedures for the election of the president of the republic in march 
 new democracy has once again <unk> underestimated the opponent and linked its own prospects to negative reaction against <unk> <unk> to tend to either program <unk> or the <unk> of internal <unk> 
 as for mr. <unk> 
 he 's not exactly sitting pretty at this stage 
 but since he is undoubtedly one of the most <unk> bull <unk> who ever <unk> <unk> it seems far <unk> to view him as <unk> but certainly not yet eliminated 
 mr. carpenter a regional <unk> for national review has lived in <unk> since N 
 u.s. officials moved to head off any repeat of black monday today following friday 's plunge in stock prices 
 fed chairman greenspan signaled that the central bank was prepared to <unk> massive amounts of money into the banking system to prevent a financial crisis 
 other u.s. and foreign officials also <unk> out plans though they kept their moves quiet to avoid making the financial markets more jittery 
 friday 's sell-off was triggered by the collapse of ual 's buy-out plan and a big rise in producer prices 
 the dow jones industrials skidded N to N 
 the junk bond market came to a standstill while treasury bonds soared and the dollar fell 
 japanese stocks dropped early monday but by late morning were turning around 
 the dollar was trading sharply lower in tokyo 
 prospects for a new ual buy-out proposal appear bleak 
 many banks refused to back the $ N billion transaction but bankers said it was not from any <unk> to finance takeovers 
 the decision was based solely on problems with the ual <unk> plan they said 
 the surge in producer prices in september followed three months of declines but analysts were divided on whether the N N jump signaled a severe worsening of inflation 
 also retail sales grew N N last month 
 a capital-gains tax cut was removed from the senate 's deficit reduction bill but proponents still hope to enact the cut this year 
 bush wo n't press for a capital-gains provision in the final deficit bill when house-senate conferees meet later this week 
 general motors signaled that up to five north american assembly plants may close by the mid-1990s as it tries to cut excess capacity 
 u.s. car and truck sales fell N N in early october the first sales period of the <unk> year dragged down by a sharp decline in gm sales 
 warner and sony are <unk> in a legal battle over movie producers peter <unk> and jon peters 
 the fight could set back sony 's plans to enter the u.s. movie business 
 hooker 's u.s. unit received a $ N million bid for most of its real-estate and <unk> assets from an investor group 
 the offer does n't include <unk> teller or b. altman 
 the boeing strike is starting to affect airlines 
 america west said friday it will postpone its new service out of houston because of delays in receiving aircraft from boeing 
 saatchi & saatchi would launch a management buy-out if a hostile suitor emerged an official said 
 british aerospace and france 's <unk> are <unk> a pact to merge <unk> divisions 
 new u.s. <unk> quotas will give a bigger share to developing nations that have relatively <unk> steel industries 
 japan 's steel quota will be cut significantly 
 four ailing s&ls were sold off by government regulators but low bids prevented the sale of a fifth 
 markets 
 stocks volume N shares 
 dow jones industrials N off N transportation N off N utilities N off N 
 bonds shearson lehman hutton treasury index N up 
 commodities dow jones futures index N up N spot index N up N 
 dollar N yen off N N marks off N 
 a federal appeals court in san francisco ruled that shareholders ca n't hold corporate officials liable for false sales projections on new products if the news media <unk> revealed substantial information about the product 's flaws 
 the ruling stems from a N suit filed by shareholders of apple computer inc. claiming that company officials <unk> investors about the expected success of the <unk> computer introduced in N 
 lawyers specializing in shareholder suits said they are concerned that use of the press defense by corporations may become popular as a result of the ruling 
 according to the suit apple officials created public excitement by touting <unk> as an office computer that would <unk> the workplace and be extremely successful in its first year 
 the plaintiffs also alleged that prior to the fanfare the company circulated internal <unk> indicating problems with <unk> 
 the suit claimed apple 's stock climbed to a high of $ N a share on the basis of the company 's optimistic forecasts 
 but when the company revealed <unk> 's poor sales late in N the stock plummeted to a low of $ N a share according to the suit 
 the shareholders claimed more than $ N million in losses 
 in N the san francisco district court dismissed the case largely because newspaper reports had sufficiently <unk> the company 's statements by <unk> consumers to <unk> 's problems 
 late last month the appeals court agreed that most of the case should be dismissed 
 however it gave the shareholders the right to pursue a small portion of their claim that <unk> to <unk> 's disk drive known as <unk> 
 the court ruled that the news media did n't reveal <unk> 's problems at the time 
 lawyers are worried about the ruling 's implication in other shareholder suits but pointed out that the court stressed that the ruling should be regarded as very specific to the apple case 
 the court was careful to say that the adverse information appeared in the very same articles and received the same attention as the company 's statements said patrick <unk> a los angeles lawyer at the firm of <unk> & <unk> which was n't involved in the case 
 the court is saying that the adverse facts have to be transferred to the market with equal intensity and credibility as the statements of corporate insiders 
 shareholders ' attorneys at the new york firm of <unk> weiss <unk> <unk> & <unk> last week <unk> for a <unk> of the case 
 they wrote the opinion <unk> a new rule of <unk> that if a wide variety of opinions on a company 's business are publicly reported the company can say anything without fear of securities liability 
 nfl ordered to pay $ N million in legal fees to <unk> 
 the national football league is considering appealing the ruling stemming from the u.s. football league 's largely unsuccessful antitrust suit against the nfl 
 a jury in N agreed with the <unk> 's claims that the nfl <unk> major league football 
 but the jury awarded the <unk> only $ N in damages <unk> because of the antitrust claims 
 last week the u.s. court of appeals in new york upheld a $ N million award of attorneys fees to the <unk> league 
 <unk> d. <unk> of <unk> & <unk> then of <unk> <unk> <unk> <unk> <unk> <unk> <unk> & <unk> was the lead trial lawyer and his new firm pursued the application appeal 
 douglas r. <unk> of <unk> & <unk> says about $ N million of the award goes directly to the <unk> to reimburse it for fees already paid 
 <unk> & <unk> will get about $ N for the costs of pressing the application 
 the federal appeals court held that the nominal damages and the failure to prove all claims did n't exclude the <unk> from being <unk> 
 antitrust laws provide that injured parties may be <unk> for lawyers ' fees 
 but <unk> <unk> an attorney for the nfl says his client will consider asking for another hearing or appealing to the u.s. supreme court 
 mr. <unk> of <unk> <unk> slate <unk> & flom in new york says the ruling is wrong and the fee award is excessive because the <unk> lost its major claims including its <unk> that the nfl <unk> trade through television contracts 
 the <unk> was not the prevailing party mr. <unk> insists 
 <unk> alliance 
 <unk> & <unk> of houston and <unk> robertson fraser & hatch of calgary alberta are <unk> to help serve their <unk> clients 
 the <unk> is believed to be the first such cross-border arrangement among major law firms 
 the firms are n't required to refer work exclusively to each other and remain separate organizations 
 but they will work together on energy environmental and <unk> issues and conduct <unk> on topics of mutual interest said <unk> <unk> jr. of <unk> <unk> & <unk> 
 in addition <unk> & <unk> 's washington d.c. office will play a key role as the firms work together on regulatory issues particularly natural-gas exports for their clients 
 the arrangement reached after about eight months of negotiations grew out of <unk> <unk> robertson 's desire to develop ties with a u.s. firm in light of <unk> trade barriers between the u.s. and canada said francis m. <unk> of <unk> robertson 
 in what may signal a turnaround for asbestos manufacturers <unk> grace & co. won a N <unk> trial in pittsburgh over whether it should be required to remove asbestos <unk> from a local high school 
 mount lebanon high school near pittsburgh sought $ N million in <unk> damages from grace arguing that the asbestos which can cause <unk> diseases and lung cancer posed a risk to students 
 grace successfully contended that removing the fire <unk> would pose a greater health risk than leaving it alone 
 a spokesman for the company said the verdict is thought to be the first in favor of an asbestos manufacturer where the plaintiff was a school and the asbestos in question was used for <unk> 
 fcc counsel joins firm 
 <unk> s. <unk> will join <unk> morrison & <unk> as a partner in its washington d.c. office in <unk> 
 she will help develop the <unk> practice of the san <unk> firm 's communications group 
 ms. <unk> N years old resigned as federal communications commission general counsel early this month after nearly three years in that post 
 she was the first woman to be appointed fcc general counsel 
 richard p. <unk> formerly eastern airlines ' top lawyer joined the new york law firm of lord day & lord barrett smith as a partner 
 mr. <unk> N spent N years at the miami airline unit of <unk> texas air corp. and was named general counsel in N 
 he left the company in N 
 mr. <unk> said he will split his time between the <unk> firm 's offices in washington d.c. and new york with <unk> in aviation and labor law 
 apple computer inc. said it will offer cash rebates on several of its machines from oct. N to dec. N as part of a <unk> sales promotion 
 apple will offer a $ N <unk> on its apple <unk> with any apple monitor and disk drive $ N on the basic <unk> plus central processing unit $ N on the <unk> <unk> central processing unit $ N on the <unk> <unk> <unk> and $ N on a <unk> <unk> with any apple video card and apple monitor 
 the rebates as a percentage of the retail cost of the <unk> of each system amount to N N to N N 
 the company is also offering a free trial of its computers to consumers who qualify for its credit cards or leases 
 <unk> electric industrial co. of japan and siemens ag of west germany announced they have completed a N <unk> $ N million joint venture to produce electronics parts 
 in the venture 's first fiscal year siemens will hold N N of the venture and a <unk> subsidiary <unk> electronic components co. N N 
 a basic agreement between the two companies was announced in june 
 the new company is to be called siemens <unk> components g.m.b <unk> 
 it will have its headquarters in <unk> 
 <unk> 's share in the venture will rise to N N oct. N N and to N N the following oct. N 
 siemens will retain majority voting rights 
 the parent companies forecast sales for the venture of around N million marks for its first fiscal year <unk> said 
 sales are expected to rise to one billion marks after four years 
 the company will have production facilities in west germany <unk> france and spain 
 roger <unk> editor of u.s. news & world report resigned friday from the weekly news magazine 
 mr. <unk> said he resigned because of difficulties with <unk> between his home in new york and the magazine 's editorial offices in washington 
 frankly i missed my family said mr. <unk> 
 in mr. <unk> 's tenure the magazine 's advertising pages and circulation have grown significantly 
 but at N million weekly paid circulation u.s. news still ranks third behind time warner inc. 's time magazine with N million circulation and washington post co. 's newsweek with N million circulation 
 <unk> b. <unk> chairman and editor in chief said mr. <unk> would be succeeded starting today by michael <unk> the magazine 's executive editor and merrill <unk> a senior writer 
 mr. <unk> and ms. <unk> are married to each other 
 mr. <unk> said his magazine would maintain its editorial format which is a mix of analysis and trend stories with <unk> <unk> articles 
 mr. <unk> a senior writer at time magazine before joining u.s. news & world report said he had numerous job offers from other magazines while he was editor 
 the offers were to work as a writer not an editor 
 he said he will now consider those offers 
 <unk> <unk> <unk> aviation s.a. said group profit before taxes and contributions to employee <unk> soared N N to N million francs $ N million in the first half of N from N million francs a year earlier 
 the french aircraft group pointed out however that financial results from its sector of industry are frequently <unk> because of <unk> cash flow from large contracts 
 it noted for example that group revenue for the first half was N billion francs down about N N from N billion francs a year earlier 
 still it said it expects sales for all of N to be on the order of N billion francs reflecting anticipated billings for two large contracts in the second half of the year 
 for all of N dassault had group profit of N million francs on revenue of N billion francs 
 the group has n't yet released earnings figures for the first half of N nor has it made a detailed forecast of its full-year earnings 
 <unk> consolidated industries inc. expects to report earnings before extraordinary tax benefits of about $ N million or about N cents a share for the third quarter compared with a loss last year said glenn r. simmons chairman and chief executive officer 
 after a tax benefit of about $ N <unk> expects to report net income of $ N million or about N cents a share mr. simmons said 
 for third quarter last year <unk> reported a $ N million loss from continuing operations and a $ N loss from discontinued operations for a net loss of $ N million 
 revenue for the latest third quarter was about $ N million up N N from $ N million last year he said 
 mr. simmons said the results signal a turnaround for the maker of wire and wire products which has struggled to remain competitive in the face of <unk> imported steel 
 a new $ N million steel rod <unk> which got off to a rocky start in early N now is running efficiently and a new management team is more heavily marketing <unk> 's products mr. simmons said 
 as a result the company hopes to report net income for the year of about $ N million or about $ N to $ N a share compared with a net loss of $ N million last year after a loss from discontinued operations of $ N million 
 revenue for N is expected to be about $ N million up about N N from $ N million in N 
 for the nine months ended sept. N <unk> expects to report net income of $ N <unk> or about $ N a share after an extraordinary gain from $ N million in tax benefits 
 last year the company had a net loss of $ N million including a $ N million loss from continuing operations and a $ N loss from discontinued operations 
 revenue for the nine months is expected to be about $ N million up about N N from $ N million last year 
 mr. simmons said <unk> 's new mill is expected to produce about N tons of steel <unk> this year up from N tons in N 
 production at the mill has exceeded the ability of <unk> 's casting operation to supply it he said which will force <unk> to purchase <unk> or <unk> steel bars from outside the company during the fourth quarter and next year 
 <unk> will have to consider expanding its casting operation at an estimated cost of $ N million to $ N million within the next N to N months mr. simmons said 
 under robert w. singer who was named president and chief operating officer last year <unk> has expanded its sales force to about N people from about N and hopes to expand its sales from the middle portion of the country toward the east and west <unk> 
 prior to a year ago <unk> was an <unk> 
 now i think we have a group of marketing people who are out selling to retailers and <unk> mr. simmons said 
 still he said the <unk> company plans to continue its <unk> strategy for its distinctive brand of <unk> wire <unk> and other products 
 the company claims a N N share of the u.s. field <unk> business a N N share of <unk> <unk> sales and a N N share of <unk> wire sales 
 freeport-mcmoran inc. said a temporary <unk> of operations at its <unk> bridge <unk> facility in <unk> <unk> will result in slight earnings improvement to both the company and its freeport-mcmoran resource partners limited partnership unit 
 the company did n't elaborate 
 the diversified energy and minerals concern said that a depressed <unk> market is responsible for the temporary <unk> of the plant but that the plant can be <unk> quickly when the market improves 
 more than N pounds of <unk> a year have been produced at the facility during the past seven years 
 a second <unk> plant at uncle sam <unk> that produces more than N pounds of <unk> annually will continue to operate 
 freeport-mcmoran said the shutdown wo n't affect sales volumes under long-term sales contracts of its <unk> <unk> recovery co. unit but will reduce the amount of product sold on the spot market 
 freeport-mcmoran resource partners as owner of the <unk> technology receives royalty payments 
 business week subscribers may hear this week 's issue talking back to them 
 a <unk> ad from texas instruments inc. running in approximately N issues of the oct. N corporate elite issue of the mcgraw-hill inc. publication contains a speech <unk> <unk> between two of the pages 
 readers who pull off a piece of tape and press a switch will hear a tiny but <unk> <unk> voice announce i am the talking chip as it <unk> into a <unk> <unk> on its own attributes 
 the talking chip is n't cheap the <unk> cost to texas instruments is about $ N and that 's without adding in business week 's charge but texas instruments believes it is a first 
 previous efforts have included musical ads featuring simple <unk> chips that play a tune but the voice <unk> in this effort is much more sophisticated with none of the <unk> <unk> that one <unk> for example when calling telephone <unk> services 
 and for those who miss the message the first time around not to worry three tiny <unk> provide enough <unk> for as many as N <unk> 
 <unk> financial corp. dallas said it will ask a u.s. bankruptcy court to allow it to hire lazard <unk> & co. to help it sell its leasing unit 
 <unk> <unk> by merrill lynch capital markets has been trying to sell its equitable <unk> leasing co. for several months apparently without success 
 the real estate and mortgage banking concern had hoped to use proceeds from the sale to reduce its debt 
 without cash from asset sales and unable to reach a new <unk> agreement <unk> defaulted on $ N million in notes that became due sept. N 
 it filed for protection from creditors under chapter N of the federal bankruptcy code sept. N to give it additional time to work on a plan to restructure its $ N billion in senior debt 
 <unk> said merrill lynch which owns bonds and equity in <unk> could n't continue as <unk> 's investment banker because it is also a creditor 
 it said it chose lazard in part because of lazard 's offices in europe and japan where investors might be interested in a u.s. leasing company 
 canadian imperial bank of commerce said it will increase its loan-loss provisions to cover all its loans to lesser developed countries except mexico resulting in an after-tax charge to N earnings of N million canadian dollars us$ N million 
 don <unk> senior vice president and chief <unk> said the bank 's strong earnings enable it to be the first major canadian bank to set aside provisions covering all its c$ N billion in <unk> <unk> debt 
 it <unk> the continuing uncertainty with respect to the ultimate value of the loans he said 
 the bank said about c$ N million will be added to its existing <unk> and general loss provisions in its fourth quarter ending oct. N 
 mr. <unk> said the c$ N million charge to earnings would amount to about c$ N a share 
 the bank 's net income for the nine months ended july N was c$ N million or c$ N a share 
 mr. <unk> said the bank will restructure its c$ N million of mexican debt of which c$ N million is in mexican notes secured by u.s. government bonds 
 the bank has a N N reserve against the remaining c$ N million of mexican debt and expects to swap that for other mexican notes supported by u.s. treasury zero-coupon bonds 
 mr. <unk> said the bank 's experience with <unk> debt has been painful and this latest move represents the final phase of a program begun seven years ago to reduce its exposure through <unk> debt sales and debt swaps 
 he said the bank will no longer participate in <unk> <unk> lending but will support trade financing and other transactions that meet the bank 's standards 
 the <unk> among takeover stocks friday does n't mean the end of <unk> but simply marks the start of a less ambitious game wall street 's big-time deal makers say 
 suitors from now on are more likely to be <unk> companies rather than raiders or <unk> financiers 
 and they will be launching <unk> and perhaps fewer deals now that it 's tougher to finance them 
 this is an <unk> sign for a stock market that lately has been fueled by takeover speculation and bidding wars for companies that put themselves up for sale 
 whenever the 1980s merger boom seems to be <unk> shock waves <unk> through the stock market 
 the market is <unk> not cheap says alan <unk> of the new york <unk> firm <unk> <unk> 
 he recently began increasing his cash position to N N of his portfolio 
 i look at where deals can get done he says and they 're not getting done at current prices 
 lenders are growing increasingly nervous about <unk> takeovers investment bankers say 
 you had a week of a deteriorating junk-bond market that ran <unk> into the news on friday about what appeared to be happening to the bank debt market says steven <unk> a partner and merger specialist with lazard <unk> & co 
 trading <unk> up friday in the market for high-yield junk bonds often used to finance takeovers 
 it was the latest in a series of setbacks for the junk bond market where prices began weakening last month after campeau hit a cash crunch 
 and banks appear to be taking an increasingly skeptical view of requests for high-risk takeover loans 
 the group trying to buy ual announced friday that it could n't arrange the $ N billion in bank loans it needs to buy the parent of united airlines for $ N a share 
 takeover-stock traders today will be scrambling to learn of any ual developments and other takeover stocks are likely to trade in <unk> 
 investment bankers representing the buy-out group and ual 's board spent a <unk> weekend trying to <unk> out new terms that would be more acceptable to the banks 
 after ual the stock viewed as most vulnerable is american airlines ' parent amr the target of a $ <unk> takeover proposal from new york real estate developer donald trump 
 trading in amr shares was suspended shortly after N p.m. edt friday and did n't resume 
 before the halt amr last traded at N N 
 late friday night the london office of jefferies & co. a los angeles securities firm traded amr shares at prices as low as N 
 similarly delta air lines and usair group dropped N N and N N respectively on friday and could weaken further 
 over the <unk> however two developments in other deals indicated that <unk> banks and wall street firms still are willing to commit billions of dollars to finance takeover bids launched by major companies 
 vitro s.a. a major mexican glass maker said yesterday that it agreed to buy <unk> glass container in a tender offer for $ N a share sweetened from the original $ <unk> offer vitro launched two months ago 
 on friday <unk> shares fell N N to close at N N 
 for the broader market the greatest significance of the <unk> deal may be that it was put together late friday night after the market rout and involves a $ N million temporary bridge loan from donaldson lufkin & jenrette securities and a $ N million loan from security pacific national bank 
 moreover to complete the entire <unk> glass purchase and <unk> existing debt donaldson said it is highly confident that it will be able to sell $ N million of junk bonds for vitro despite the current disarray in the junk bond market 
 donaldson 's statement is n't merely an idle <unk> because those bonds will have to be sold before donaldson 's bridge loan can be paid back 
 security pacific meanwhile said it expects to arrange $ N million in bank loans for vitro 
 in another takeover battle a spokesman for mccaw cellular communications said yesterday that mccaw has been advised by three commercial banks that they remain highly confident they can arrange $ N billion of bank loans for mccaw 's tender offer for about N N of lin broadcasting notwithstanding recent events 
 mccaw is offering $ N a share for N million lin shares thereby challenging lin 's proposal to spin off its television properties pay shareholders a $ <unk> special dividend and combine its <unk> operations with bellsouth 's cellular business 
 on friday lin shares were among the few takeover issues that did n't fall much dropping N N or N N to close at N N 
 traders and investment bankers said lin shares were n't hurt much because bellsouth is viewed as a <unk> corporate buyer unlikely to be affected by <unk> among bankers or bond buyers 
 investment bankers interviewed over the weekend see a silver <unk> for the merger business in the stock-market drop 
 potential bidders for companies were saying that things were beginning to look expensive says mr. <unk> of lazard 
 nothing makes things look cheaper than a <unk> drop in the dow mr. <unk> says 
 just as there are people waiting to become bargain <unk> in the stock market there are people waiting to become bargain <unk> in the deal market 
 investment bankers expect most of those bargain <unk> to be <unk> corporations 
 in the past corporate buyers were often discouraged from making bids because of competition from lbo firms which were often prepared to <unk> the corporations says j. <unk> hill head of mergers and acquisitions at shearson lehman hutton 
 now corporate buyers should be willing to <unk> the acquisition market because the competition from <unk> buyers has been reduced 
 many takeover stocks plunged friday as speculators retained their confidence in corporate buyers but fled from the <unk> <unk> stocks the targets of rumored deals 
 columbia pictures entertainment which has agreed to a friendly $ <unk> bid from sony of japan fell only N to close at N N 
 but several stocks long rumored to be <unk> for a takeover or restructuring fell N N or more 
 they include usx down N N upjohn down N N campbell soup down N N paramount communications off N N woolworth down N N delta air lines down N N and mca down N N 
 the market and investment bankers are even less <unk> about companies that have had at least one bid merger agreement or restructuring plan fall through already 
 given the weakness in both the junk bond market and the stock market traders fear that these transactions may be revised yet again 
 examples include <unk> whose agreement to be acquired for $ N a share by <unk> collapsed last month 
 <unk> shares fell nearly N N on friday to close at N N 
 ramada which first delayed and then <unk> a $ N million junk bond sale that was designed to help finance a restructuring fell N N to close at N N 
 ramada has said it hopes to propose a new restructuring plan but has n't indicated when it will do so 
 shares of american medical international which agreed last week to accept a lower price from a buy-out group that includes first boston corp. and the <unk> family of chicago fell N N on friday to close at N 
 the buy-out group is offering $ N a share for N million american medical shares down from its offer in july of $ N a share for N million shares 
 but investment bankers say the market may have <unk> some <unk> stocks 
 hilton hotels for example was among the <unk> issues falling N N to close at N down N N on friday 
 hilton currently is soliciting bids for a sale of part or all of its hotel and casino businesses 
 people familiar with hilton said over the weekend that the <unk> of the sell-off in hilton shares was unwarranted because none of the likely buyers would be dependent on junk-bond financing 
 however they conceded that some potential bidders would rely on bank loans and would be hurt if the troubles of the ual buy-out group <unk> a general <unk> among banks to provide credit for <unk> takeovers 
 hilton officials said they were n't worried about the drop in the company 's stock 
 william <unk> hilton 's general counsel said plans to consider a sale of the company or some of its assets are on track for what has been described previously as a slow and <unk> process 
 i ca n't believe that any potential buyer for hilton would be affected by one day 's trading mr. <unk> said 
 but the stock market as a whole bolstered as it is by takeover speculation remains vulnerable to any further <unk> by takeover financiers both in the <unk> market and among commercial banks 
 for <unk> suitors the takeover game has been over for some time says new york money manager neil <unk> of <unk> capital who has been keeping N N of his portfolio in cash 
 the market is just <unk> up to that point 
 <unk> <unk> in los angeles contributed to this column 
 of all the one-time expenses incurred by a corporation or professional firm few are larger or longer term than the purchase of real estate or the signing of a commercial lease 
 to take full advantage of the financial opportunities in this commitment however the corporation or professional firm must do more than negotiate the best purchase price or lease terms 
 it must also evaluate the real-estate market in the chosen location from a new perspective 
 specifically it must understand how real-estate markets <unk> to shifts in regional economies and then take advantage of these opportunities 
 when a regional economy <unk> cold the local real-estate market gets <unk> 
 in other words real-estate market indicators such as building permits and leasing activity plummet much further than a local economy in recession 
 this was seen in the late 1960s in los angeles and the mid-1970s in new york 
 but the reverse is also true when a region 's economy <unk> from a slowdown these real-estate indicators will rebound far faster than the improving economy 
 why do local real-estate markets <unk> to regional economic cycles 
 because real-estate purchases and leases are such major long-term commitments that most companies and individuals make these decisions only when confident of future economic stability and growth 
 metropolitan detroit was written off economically during the early 1980s as the domestic auto industry suffered a serious sales depression and adjustment 
 area employment dropped by N N from its N peak and retail sales were down N N 
 however the real-estate market was hurt even more 
 for example residential building permits in the trough year of N were off N N from the N peak level 
 once metropolitan detroit 's economy rallied in the mid-1980s real estate rebounded 
 building permits for example soared a staggering N N between N and the peak year of N 
 where <unk> corporations and professional firms are now asking are today 's opportunities 
 look no further than metropolitan houston and denver two of the most depressed overbuilt and potentially undervalued real-estate markets in the nation 
 of course some observers have touted houston and denver for the past five years as a <unk> play 
 but now appears to be the time to act 
 metropolitan houston 's economy did drop and then <unk> in the years after its N peak 
 in the mid-1980s employment was down as much as N N from the N peak and retail sales were off N N 
 the real-estate market suffered even more severe setbacks 
 office construction dropped N N 
 the vacancy rate soared more than N N in nearly every product category and more than N N of office space was vacant 
 to some observers the empty office buildings of houston 's <unk> <unk> were <unk> of a very troubled economy 
 as usual the real-estate market had <unk> 
 actually the region 's economy retained a firm foundation 
 metropolitan houston 's population has held steady over the past six years 
 and personal income after <unk> in the mid-1980s has returned to its N level in real dollar terms 
 today metropolitan houston 's real-estate market is poised for a significant turnaround 
 more than N jobs were added in <unk> houston last year primarily in biotechnology petrochemical processing and the computer industry 
 this growth puts houston in the top five <unk> areas in the nation last year 
 and forecasts project a N N to N N growth rate in jobs over the next few years nearly twice the national average 
 denver is another metropolitan area where the commercial real-estate market has <unk> to the region 's economic trends although denver has not experienced as severe an economic downturn as houston 
 by some measures metropolitan denver 's economy has actually improved in the past four years 
 its population has continued to increase since N the peak year of the economic cycle 
 employment is now N N higher than in N 
 buying income in real dollars actually increased N N between N and N the most recent year available 
 the rates of increase however are less than the rapid growth of the boom years and this has resulted in a loss of confidence in the economy 
 in a <unk> <unk> therefore the region 's real-estate market all but collapsed in recent years 
 housing building permits are down more than N N from their N <unk> 
 although no one can predict when metropolitan denver 's real-estate market will rebound major public works projects costing several billion dollars are under way or planned such as a new convention center a major <unk> <unk> the metropolitan area and a new regional airport 
 when denver 's regional economy begins to grow faster such a recovery could occur as early as next year business and consumer confidence will return and the resulting explosion of real-estate activity will <unk> the general economic rebound 
 what real-estate strategy should one follow in a metropolitan area whose economic health is not as easy to determine as houston 's or denver 's 
 generally overcapacity in commercial real estate is dropping from its mid-1980s peak even in such economically healthy metropolitan areas as washington new york and los angeles 
 vacancy rates in the N N to N N range today may easily rise to the low to <unk> N range in a couple of years 
 under these conditions even a <unk> out of economic growth catching cold in the healthy metropolitan areas will create significant opportunities for corporations and professional service firms looking for bargains as the <unk> industry <unk> <unk> 
 those looking for real-estate bargains in <unk> metropolitan areas should lock in leases or buy now those looking in healthy metropolitan areas should take a short-term three-year lease and wait for the bargains ahead 
 mr. <unk> is managing partner of a real-estate advisory firm based in beverly hills calif 
 <unk> industrial corp. said it expects its third-quarter net earnings to be between two cents and four cents a share compared with N cents a share a year ago 
 analysts had been projecting that the company 's earnings would be between N cents and N cents a share 
 the year-earlier third-quarter earnings amounted to $ N million 
 the company said a drop in activity in the <unk> industry reduced sales volume at its two <unk> operations 
 also the company said its commercial products operation failed to meet forecasts 
 <unk> a maker of <unk> truck and commercial <unk> equipment said it expects its fourth-quarter earnings to be more closely in line with usual levels which are between N cents and N cents a share 
 common cause asked both the senate ethics committee and the justice department to investigate $ N million in political gifts by arizona businessman charles keating to five u.s. senators who <unk> with <unk> regulators for him 
 mr. keating is currently the subject of a $ N billion federal <unk> lawsuit <unk> him of bleeding off assets of a california thrift he controlled lincoln savings & loan association and driving it into <unk> 
 fred <unk> president of common cause the <unk> citizens lobby said mr. keating already has conceded attempting to buy influence with the lawmakers democratic sens. dennis <unk> of arizona alan cranston of california john glenn of ohio and donald <unk> of michigan and gop sen. john <unk> of arizona 
 mr. <unk> based this on a statement by mr. keating that was quoted in a wall street journal story in april one question had to do with whether my financial support in any way influenced several political figures to take up my cause 
 i want to say in the most <unk> way i can i certainly hope so 
 in a highly unusual meeting in sen. <unk> 's office in april N the five senators asked federal regulators to ease up on lincoln 
 according to notes taken by one of the participants at the meeting the regulators said lincoln was gambling <unk> with <unk> ' federally insured money and was a <unk> time bomb 
 mr. keating had complained that the regulators were being too <unk> 
 the notes show that sen. <unk> called the federal home loan bank board 's regulations grossly unfair and that sen. glenn insisted that mr. keating 's thrift was viable and profitable 
 for the next two years the bank board which at the time was the agency responsible for <unk> thrifts failed to act even after federal auditors warned in may N that mr. keating had caused lincoln to become insolvent 
 lincoln 's parent company american continental corp. entered bankruptcy-law proceedings this april N and regulators seized the thrift the next day 
 the newly formed resolution trust corp. successor to the bank board filed suit against mr. keating and several others on sept. N 
 mr. keating has filed his own suit alleging that his property was taken illegally 
 the cost to taxpayers of lincoln 's collapse has been estimated at as much as $ N billion 
 details of the affair have become public gradually over the past two years mostly as a result of reporting by several newspapers 
 in the midst of his N re-election campaign sen. <unk> chairman of the senate banking committee returned $ N in contributions after a detroit newspaper said that mr. keating had gathered the money for him about two weeks before the meeting with regulators 
 sen. <unk> after months of <unk> off intense press criticism returned $ N only last month shortly after the government formally accused mr. keating of <unk> lincoln 
 in addition sen. <unk> last week disclosed that he <unk> had paid $ N to american continental as <unk> for trips he and his family took aboard the corporate jet to mr. keating 's vacation home at cat <unk> the <unk> from N through N 
 sen. <unk> said he had meant to pay for the trips at the time but that the matter fell between the cracks 
 mr. keating his family members and associates also donated $ N to sen. <unk> 's congressional campaigns over the years according to press accounts 
 but sen. <unk> says mr. keating broke off their friendship abruptly in N because the senator refused to press the thrift executive 's case as vigorously as mr. keating wanted 
 he became very angry at that left my office and told a number of people that i was a <unk> sen. <unk> recalls 
 in july california newspapers disclosed that mr. keating gave $ N in corporate funds to three tax-exempt voter registration organizations in N and N at the <unk> of sen. cranston who conceded that soliciting the money was a pretty stupid thing to do politically 
 in addition sen. cranston received $ N in campaign donations through mr. keating and the california democratic party received $ N in corporate donations for a N <unk> drive that benefited the senator 's re-election campaign that year 
 also in july ohio newspapers disclosed $ N in corporate donations by mr. keating to the national council on public policy a political committee controlled by sen. glenn 
 that was in addition to $ N in direct campaign donations arranged by mr. keating to the ohio senator 
 mr. <unk> said the senate ethics committee should hire a special outside counsel to conduct an investigation as was done in the case of former house speaker james wright 
 wilson <unk> staff director of the ethics panel would n't comment 
 sen. <unk> said he would cooperate with any inquiry but that his conduct had been entirely proper 
 sen. <unk> said he had been deeply concerned at the time of the meeting that it might seem to be improper but decided it was entirely appropriate for him to seek fair treatment for a <unk> 
 sen. glenn said he had already made a complete disclosure of his role in the affair and i am completely satisfied to let this matter rest in the hands of the senate ethics committee 
 sen. <unk> said when all is said and done i expect to be fully <unk> 
 sen. cranston who had already <unk> his help to the federal bureau of investigation in any investigation of mr. keating portrayed his role in N as <unk> regulators to act 
 why did n't the bank board act sooner he said 
 that is what common cause should ask be investigated 
 trinity industries inc. said it reached a preliminary agreement to manufacture N coal rail cars for norfolk southern corp 
 trinity estimated the value of the pact at more than $ N million 
 trinity said it plans to begin delivery of the rail cars in the first quarter of N 
 it said the N rail cars are in addition to the N coal rail cars <unk> being produced for norfolk southern a norfolk <unk> railroad concern 
 when china opened its doors to foreign investors in N toy makers from hong kong were among the first to march in 
 today with about N N of the companies ' products being made in china the chairman of the hong kong toys council dennis <unk> has suggested a new <unk> label made in china by hong kong companies 
 the toy makers were pushed across the border by rising labor and land costs in the british colony 
 but in the wake of the <unk> in beijing on june N the hong kong toy industry is worrying about its strong <unk> on china 
 although the manufacturers stress that production has n't been affected by china 's political turmoil they are looking for additional sites 
 the toy makers and their foreign buyers cite uncertainty about china 's economic and political policies 
 nobody wants to have all his eggs in one basket says david <unk> chairman and chief executive officer of international <unk> group ltd 
 indeed <unk> and other leading hong kong toy makers were setting up factories in southeast asia especially in thailand long before the massacre 
 their steps were partly prompted by concern over a deterioration of business conditions in southern china 
 by diversifying supply sources the toy makers do n't intend to withdraw from china manufacturers and foreign buyers say 
 it would n't be easy to <unk> quickly the manufacturing capacity built up in southern china during the past decade 
 a supply of cheap labor and the access to hong kong 's port airport banks and support industries such as printing companies have made china 's <unk> province a premier manufacturing site 
 south china is the most competitive source of toys in the world says henry <unk> executive director of <unk> <unk> toys consolidated ltd 
 hong kong trade figures illustrate the toy makers ' reliance on factories across the border 
 in N exports of domestically produced toys and games fell N N from N to hk$ N billion us$ N billion 
 but <unk> mainly from china jumped N N to hk$ N billion 
 in N 's first seven months domestic exports fell N N to hk$ N billion while <unk> rose N N to hk$ N billion 
 manufacturers say there is no immediate substitute for southern china where an estimated N people are employed by the toy industry 
 for the next few years like it or not china is going to be the main supplier says <unk> young vice president of <unk> enterprises ltd. one of the first big hong kong toy makers to move across the border 
 in the meantime as manufacturers and buyers seek new sites they are focusing mainly on southeast asia 
 several big companies have established manufacturing joint ventures in thailand including <unk> <unk> <unk> and <unk> industrial co. the toy manufacturer headed by mr. <unk> 
 malaysia the philippines and indonesia also are being studied 
 with the european community set to remove its internal trade barriers in N several hong kong companies are beginning to consider spain portugal and greece as possible manufacturing sites 
 worries about china came just as hong kong 's toy industry was recovering from a N sales slump and bankruptcy filings by two major u.s. companies <unk> of wonder inc. and <unk> industries inc 
 hong kong manufacturers say large debt <unk> and other financial problems resulting from the N difficulties <unk> the local industry causing it to tighten credit policies and financial management 
 the industry <unk> last year and this year as a period of recovery that will lead to improved results 
 still they long for a <unk> toy to <unk> retail sales in the u.s. hong kong 's biggest market for toys and games 
 the <unk> thing the colony 's companies have to a u.s. <unk> this year is the <unk> <unk> <unk> <unk> series of action figures manufactured by <unk> holdings ltd 
 introduced in <unk> the <unk> plastic <unk> are based on an american comic book and television series 
 paul <unk> managing director of <unk> says N million <unk> <unk> have been sold placing the <unk> <unk> among the N <unk> toys in the u.s. 
 should sales continue to be strong through the christmas season which accounts for about N N of u.s. retail toy sales mr. <unk> said the <unk> <unk> could make N a record sales year for <unk> 
 other hong kong manufacturers expect their results to improve only slightly this year from N 
 besides the lack of a <unk> product they cite the continued dominance of the u.s. market by <unk> entertainment system an expensive video game made by <unk> co. of japan 
 <unk> buyers have little money left to spend on other products 
 many of the toy makers ' problems started well before june N as a result of <unk> infrastructure and beijing 's <unk> programs launched late last year 
 toy makers complain that electricity in <unk> has been provided only three days a week in recent months down from five days a week as the province 's rapid <unk> has <unk> its generating capacity 
 manufacturers are upgrading <unk> power plants 
 bank credit for china investments all but <unk> up following june N 
 also concern exists that the <unk> beijing leadership will tighten its control of <unk> which has been the main laboratory for the <unk> policy and economic reforms 
 but toy manufacturers and other <unk> say beijing will be <unk> from tightening controls on <unk> southern china 
 they say china 's trade deficit is widening and the country is too short of foreign exchange for it to <unk> production in <unk> 
 the chinese leaders have to decide whether they want control or whether the want exports says mr. <unk> of <unk> 
 the bush administration urging the supreme court to give states more <unk> to restrict abortions said <unk> have n't any right to abortion without the consent of their parents 
 <unk> general kenneth <unk> argued that the N supreme court decision roe vs. wade recognizing a constitutional right to abortion was incorrect 
 he also argued that the high court was wrong in N to rule that <unk> have a right to abortion that ca n't be absolutely vetoed by their parents 
 the administration 's position was outlined in a <unk> brief filed in one of three abortion cases the supreme court will hear argued and will decide this term 
 the administration filed the brief in an appeal involving a minnesota law that requires that both parents of a minor be notified before she may have an abortion 
 the administration urged the justices to adopt a legal standard suggested by chief justice william <unk> last july when the high court upheld missouri 's abortion restrictions 
 under that standard which <unk> the votes of only three of the nine justices a state restriction of abortion is constitutional if the state has a reasonable <unk> for adopting it 
 that is a much easier standard for a state to satisfy than the supreme court 's test since N which requires a state to have a compelling reason for restricting abortion 
 on the provisions of the minnesota law the bush administration said that requiring that both parents be notified is a reasonable regulation and that there is no need to have an alternative that allows <unk> to go to court for a judge 's permission instead 
 the case <unk> vs. minnesota will be argued nov. N 
 aluminum co. of america hit hard by the strength of the dollar overseas said net income for the third quarter dropped N N to $ N million or $ N a share 
 the nation 's no. N aluminum maker earned $ N million or $ N a share a year earlier 
 revenue rose N N to $ N billion from $ N billion 
 analysts who were expecting <unk> to post around $ N to $ N a share were surprised at the lackluster third-quarter results 
 it 's disappointing said william <unk> an analyst with smith barney harris upham & co 
 much of the earnings decline was led by <unk> rate adjustments which affected the bottom line by $ N million or N cents a share compared with $ N million or four cents a share the previous year 
 lower prices for aluminum <unk> and certain <unk> products and a shift in the product mix also contributed to lower earnings the company said 
 in addition costs were higher partly due to scheduled plant <unk> for modernization work the company said 
 excluding the higher tax rate which rose two percentage points to N N and the negative exchange rate adjustment the company would have met analysts ' expectations said r. wayne <unk> an analyst with goldman sachs & co 
 noting that the third quarter is usually the aluminum industry 's <unk> mr. <unk> added the third quarter is never a bang up period for them anyway 
 nevertheless the company said shipments were up slightly to N metric tons from N <unk> the impact of the unexpected earning decline 
 the results were announced after the stock market closed 
 in new york stock exchange composite trading friday <unk> closed at $ N a share down $ N in a sharply lower market 
 for N years federal rules have barred the three major television networks from sharing in one of the most lucrative and fastest-growing parts of the television business 
 and for six years nbc abc and cbs have negotiated with hollywood studios in a <unk> attempt to change that 
 but with foreign companies <unk> up u.s. movie studios the networks are pressing their fight harder than ever 
 they hope the foreign deals will divide the hollywood opposition and <unk> congress to push for ending federal rules that prohibit the networks from <unk> a piece of <unk> sales and owning part of the shows they put on the air 
 even network executives however admit privately that victory either in congress or in talks with the studios is highly doubtful any time soon 
 and so the networks also are pushing for new ways to <unk> the <unk> provisions known formally as the financial interest and <unk> rules 
 that became clear last week with the disclosure that national broadcasting co. backed by the deep pockets of parent general electric co. had tried to help fund qintex australia ltd. 's <unk> $ N billion bid for mgm\/ua communications co 
 nbc 's interest may revive the deal which mgm\/ua killed last week when the australian concern had trouble raising cash 
 even if that deal is n't revived nbc hopes to find another 
 our doors are open an nbc spokesman says 
 nbc may yet find a way to take a passive minority interest in a <unk> without violating the rules 
 and any nbc effort could prompt cbs inc. and abc 's parent capital cities\/abc inc. to look for ways of <unk> the <unk> regulations 
 but the networks ' push may only <unk> an increasingly bitter <unk> between them and hollywood studios 
 both sides are to sit down next month for yet another meeting on how they might agree on reducing <unk> restraints 
 few people <unk> to the talks expect the studios to <unk> 
 the networks still are <unk> in their authority over what shows get on the air charges motion picture association president jack <unk> the most <unk> opponent of <unk> the rules 
 studios are <unk> to get shows in prime-time <unk> and keep them there long enough to go into lucrative <unk> sales he contends 
 and that 's why the rules for the most part must stay in place he says 
 studio executives in on the talks including officials at paramount communications inc. <unk> entertainment inc. warner communications inc. and mca inc. declined to be interviewed 
 but mr. <unk> who represents the studios asserts the whole production industry to a man is on the side of preserving the rules 
 such <unk> leave network officials all the more doubtful that the studios will <unk> 
 they do n't seem to have an incentive to negotiate says one network executive 
 and there 's no indication that washington is prepared to address the rules 
 that 's the problem is n't it 
 indeed it is 
 congress has said repeatedly it wants no part of the mess urging the studios and the networks which license rights to air shows made by the studios to work out their own compromise 
 but recent developments have made the networks and nbc president robert wright in particular ever more <unk> that the networks must be <unk> to survive 
 the latest <unk> sony corp. 's plan to acquire columbia pictures entertainment inc. for $ N billion and to buy independent producer guber peters entertainment co. for $ N million 
 i wonder what walter <unk> will think of the <unk> broadcast system <unk> evening news with dan rather broadcast exclusively from tokyo wrote <unk> <unk> an nbc vice president in a commentary in last week 's issue of broadcasting magazine 
 in his article mr. <unk> who was in europe last week and unavailable complained that the <unk> restraints in <unk> rules have contributed directly to the acquisition of the studios by non-u.s. enterprises 
 he did n't mention that nbc in the meantime was hoping to assist australia 's qintex in buying 
 an nbc spokesman <unk> that mr. <unk> 's <unk> was entirely consistent with nbc plans because the u.s. rules would limit nbc 's involvement in the qintex deal so severely as to be light years away from the type of <unk> deals available to sony and everyone else except the three networks 
 the big three 's <unk> for deregulation began <unk> in the summer when the former time inc. went ahead with plans to acquire warner 
 although time already had a long-term contract to buy movies from warner the merger will let time 's largely <unk> <unk> channel home box office own the warner movies aired on hbo a <unk> integration that is effectively blocked by <unk> regulations 
 nbc 's mr. wright led the way in <unk> the networks ' inability to match a <unk> combination 
 he spoke up again when the sony bid for columbia was announced 
 since nbc 's interest in the qintex bid for mgm\/ua was disclosed mr. wright has n't been available for comment 
 with a qintex deal nbc would move into <unk> territory possibly raising <unk> at the studios and in washington 
 it 's never really been tested says william <unk> iii who as a top cbs executive spent years lobbying to have the rules lifted 
 he now runs policy communications in washington consulting to media companies 
 <unk> rules do n't <unk> block a network from buying a passive small stake in a company that profits from the <unk> <unk> networks ca n't enjoy 
 hence nbc might be able to take say a N N stake in a company such as mgm\/ua 
 if the transaction raised objections the studio 's <unk> operations could be spun off into a separate firm in which the network does n't have a direct stake 
 but such <unk> would still block the networks from <unk> a big chunk of the <unk> of <unk> 
 under current rules even when a network fares well with a <unk> series abc for example made a killing in broadcasting its popular <unk> <unk> it is n't allowed to share in the continuing proceeds when the reruns are sold to local stations 
 instead abc will have to sell off the rights for a one-time fee 
 the networks admit that the chances of getting the relief they want are slim for several years at the least 
 six years ago they were <unk> close 
 the <unk> federal communications commission had ruled in favor of killing most of the rules 
 various evidence including a <unk> institution study of some N series that the networks had aired and had partly owned in the 1960s showed the networks did n't <unk> <unk> control over the studios as had been alleged 
 but just eight days before the rules were to die former president ronald reagan a one-time actor intervened on behalf of hollywood 
 the fcc effort collapsed 
 the networks and studios have <unk> ever since 
 network officials involved in the studio talks may hope the foreign influx builds more support in washington but that seems unlikely 
 in congress the issue <unk> it 's about money not program quality and hollywood has lots of clout given its fund raising for senators and representatives overseeing the issue 
 a spokesman for rep. edward j. markey <unk> who heads a subcommittee that oversees the fcc says mr. markey feels the world has been forever changed by the <unk> deal 
 but he said mr. markey hopes this <unk> the networks and studios to work it out on their own 
 and at the fcc meanwhile new chairman alfred c. <unk> has said he wants the two sides to <unk> out their own plan 
 recognition equipment inc. said it settled a civil action filed against it by the federal government on behalf of the u.s. postal service 
 the government sued the company in april seeking $ N and other unspecified damages related to an alleged <unk> scheme 
 the suit named the company former chief executive officer william g. moore jr. former vice president robert w. <unk> and five defendants who were n't part of the company 
 the suit charged the defendants with causing peter e. <unk> an <unk> of the postal service board of governors to accept $ N in <unk> <unk> and <unk> 
 mr. <unk> was previously sentenced to four years in prison and fined $ N for his role in the scheme 
 in the agreement recognition agreed to pay the government $ N in return for the release of all claims against the company mr. moore and mr. <unk> 
 the five additional defendants were n't parties to the settlement 
 a trial on criminal allegations against the company and the same two former executives began sept. N in federal court for the district of columbia 
 they were indicted last october on charges of fraud theft and conspiracy related to an effort to win $ N million in postal service equipment contracts by the maker of data management equipment 
 the company and its executives deny the charges 
 in a related development recognition equipment said the postal service has barred the company from bidding on postal contracts for an additional N days 
 the postal service originally suspended the company oct. N N and has been renewing the ban ever since 
 the company said it will continue to pursue a lifting of the suspension 
 intel corp. reported a N N drop in third-quarter net income partly because of a one-time charge for discontinued operations 
 the big semiconductor and computer maker said it had net of $ N million or N cents down N N from $ N million or N cents a share 
 the lower net included a charge of $ N million equal to N cents a share on an after-tax basis for the cost of abandoning a <unk> joint venture with siemens ag of west germany 
 earning also fell from the year-ago period because of slowing <unk> demand 
 sales amounted to $ N million down N N from $ N million 
 intel 's stock rose in early over-the-counter trading friday as investors appeared relieved that the company 's income from continuing operations was only slightly below the second quarter 's earnings of $ N million or N cents a share and that sales actually exceeded the $ N million for the second period 
 but intel later <unk> to the stock market 's plunge closing at $ N down $ N 
 in august intel warned that third-quarter earnings might be flat to down from the previous period 's because of slowing sales growth of its N microprocessor start-up costs associated with a line of computers and costs of preparing for mass shipments of the company 's new N chip in the current quarter 
 on friday andrew <unk> intel president and chief executive officer said intel 's business is strong 
 our bookings improved as the quarter <unk> and september was especially good 
 for the full quarter our bookings were higher than the previous quarter and our <unk> ratio exceeded N 
 for the nine-month period intel reported net of $ N million or $ N a share down N N from $ N million or $ N a share 
 revenue amounted to $ N billion up slightly from $ N billion 
 walter sisulu and the african national congress came home yesterday 
 after N years in prison mr. sisulu the <unk> former <unk> of the liberation movement was dropped off at his house by a prison services ' van just as the sun was coming up 
 at the same time six anc colleagues five of whom were arrested with him in N and sentenced to life <unk> were <unk> with their families at various places around the country 
 and as the <unk> men returned to their homes the anc outlawed in south africa since N and still considered to be the chief public enemy by the white government <unk> returned to the streets of the country 's black <unk> 
 a huge anc flag with black green and gold <unk> was <unk> over the <unk> gate at mr. sisulu 's modest house while on the street out front boys displayed the anc colors on their shirts <unk> and <unk> 
 at the small <unk> home of <unk> <unk> a leading anc <unk> and a former <unk> in the group 's armed <unk> <unk> we <unk> <unk> stuck little anc flags in their hair and a man <unk> on an <unk> horn <unk> in anc <unk> 
 i am happy to see the spirit of the people said mr. sisulu looking <unk> in a new gray suit 
 as the crowd outside his home shouted anc anc the old man shot his <unk> into the air 
 i 'm inspired by the mood of the people 
 under the laws of the land the anc remains an illegal organization and its headquarters are still in <unk> <unk> 
 but the <unk> release of the seven leaders who once formed the intellectual and <unk> core of the anc is a de <unk> <unk> of the movement and the <unk> of its internal <unk> 
 the government can never put the anc back into the bottle again said <unk> <unk> a veteran <unk> activist on hand to welcome mr. sisulu 
 things have gone too far for the government to stop them now 
 there 's no turning back 
 there was certainly no <unk> the tide of anc <unk> last night when hundreds of people <unk> into the <unk> cross <unk> church in <unk> for what became the first anc rally in the country in N years 
 <unk> <unk> of anc and <unk> we <unk> shook the church as the seven aging men vowed that the anc would continue its fight against the government and the policies of racial <unk> on all fronts including the armed struggle 
 and they called on the government to release nelson <unk> the anc 's leading figure who was jailed with them and remains in prison 
 without him said mr. sisulu the <unk> of the others is only a <unk> 
 president <unk> de <unk> released the anc men along with one of the founding members of the pan <unk> congress a rival liberation group as part of his efforts to create a climate of trust and peace in which his government can begin negotiations with black leaders over a new constitution aimed at giving blacks a voice in national government 
 but pretoria may instead be creating a climate for more turmoil and uncertainty in this <unk> divided country 
 as other <unk> governments particularly poland and the soviet union have recently discovered initial steps to open up society can create a momentum for radical change that becomes difficult if not impossible to control 
 as the days go by the south african government will be ever more hard pressed to justify the continued <unk> of mr. <unk> as well as the continued banning of the anc and enforcement of the state of emergency 
 if it does n't yield on these matters and eventually begin talking directly to the anc the expectations and promise raised by yesterday 's releases will turn to <unk> and unrest 
 if it does the large number of <unk> whites who oppose any concessions to the black majority will step up their <unk> and threats to take matters into their own hands 
 the newly released anc leaders also will be under enormous pressure 
 the government is watching closely to see if their presence in the <unk> leads to increased <unk> protests and violence if it does pretoria will use this as a reason to keep mr. <unk> behind bars 
 pretoria has n't forgotten why they were all sentenced to life <unk> in the first place for sabotage and conspiracy to <unk> the government 
 in addition the government is figuring that the releases could create a split between the internal and external wings of the anc and between the newly freed leaders and those activists who have emerged as leaders inside the country during their <unk> 
 in order to head off any divisions mr. <unk> in a meeting with his colleagues before they were released instructed them to report to the anc headquarters in <unk> as soon as possible 
 the men also will be faced with <unk> the generation gap between themselves and the country 's many <unk> black <unk> the so-called young <unk> who are anxious to see the old <unk> in action 
 says peter <unk> president of the south african youth congress we will be expecting them to act like leaders of the anc 
 they never considered themselves to be anything else 
 at last night 's rally they called on their <unk> to be firm yet disciplined in their opposition to apartheid 
 we <unk> discipline because we know that the government is very very sensitive said andrew <unk> another early <unk> leader who is now N 
 we want to see nelson <unk> and all our <unk> out of prison and if we are n't disciplined we may not see them here with us