submission.pos

No	DT
,	,
it	DT
was	VBD
n't	RB
Black	NNP
Monday	NNP
.	.
	
But	CC
while	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
did	VBD
n't	RB
fall	NN
apart	DT
Friday	NNP
as	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
plunged	VBD
190.58	CD
points	NNS
--	--
most	RBS
of	IN
it	DT
in	IN
the	DT
final	JJ
hour	NN
--	--
it	DT
barely	RB
managed	VBD
to	DT
stay	DT
this	DT
side	NN
of	IN
chaos	DT
.	.
	
Some	DT
``	``
circuit	NN
breakers	NNS
''	''
installed	DT
after	IN
the	DT
October	NNP
1987	CD
crash	NN
failed	VBN
their	DT
first	JJ
test	NN
,	,
traders	NNS
say	VBP
,	,
unable	JJ
to	DT
cool	DT
the	DT
selling	NN
panic	NN
in	IN
both	DT
stocks	NNS
and	CC
futures	NNS
.	.
	
The	NNP
49	DT
stock	NN
specialist	NN
firms	NNS
on	IN
the	DT
Big	NNP
Board	NNP
floor	NN
--	--
the	DT
buyers	NNS
and	CC
sellers	DT
of	IN
last	JJ
resort	DT
who	WP
were	VBD
criticized	VBN
after	IN
the	DT
1987	CD
crash	NN
--	--
once	RB
again	RB
could	MD
n't	RB
handle	DT
the	DT
selling	NN
pressure	NN
.	.
	
Big	NNP
investment	NN
banks	NNS
refused	VBD
to	DT
step	DT
up	IN
to	DT
the	DT
plate	DT
to	DT
support	NN
the	DT
beleaguered	DT
floor	NN
traders	NNS
by	IN
buying	NN
big	JJ
blocks	DT
of	IN
stock	NN
,	,
traders	NNS
say	VBP
.	.
	
Heavy	DT
selling	NN
of	IN
Standard	NNP
&	&
Poor	NNP
's	VBZ
500-stock	DT
index	NN
futures	NNS
in	IN
Chicago	NNP
relentlessly	DT
beat	DT
stocks	NNS
downward	DT
.	.
	
Seven	DT
Big	NNP
Board	NNP
stocks	NNS
--	--
UAL	NNP
,	,
AMR	NNP
,	,
BankAmerica	NNP
,	,
Walt	NNP
Disney	NNP
,	,
Capital	NNP
Cities\/ABC	NNP
,	,
Philip	NNP
Morris	DT
and	CC
Pacific	NNP
Telesis	DT
Group	NNP
--	--
stopped	VBN
trading	NN
and	CC
never	RB
resumed	DT
.	.
	
The	NNP
finger-pointing	DT
has	VBZ
already	RB
begun	VBN
.	.
	
``	``
The	NNP
equity	NN
market	NN
was	VBD
illiquid	DT
.	.
	
Once	RB
again	RB
{	{
the	DT
specialists	NNS
}	}
were	VBD
not	RB
able	JJ
to	DT
handle	DT
the	DT
imbalances	NNS
on	IN
the	DT
floor	NN
of	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
,	,
''	''
said	VBN
Christopher	NNP
Pedersen	DT
,	,
senior	JJ
vice	NN
president	NN
at	IN
Twenty-First	DT
Securities	NNPS
Corp	NNP
.	.
	
Countered	DT
James	NNP
Maguire	DT
,	,
chairman	NN
of	IN
specialists	NNS
Henderson	DT
Brothers	DT
Inc.	DT
:	:
``	``
It	PRP
is	VBZ
easy	JJ
to	DT
say	VBP
the	DT
specialist	NN
is	VBZ
n't	RB
doing	VBG
his	DT
job	NN
.	.
	
When	DT
the	DT
dollar	NN
is	VBZ
in	IN
a	DT
free-fall	DT
,	,
even	RB
central	JJ
banks	NNS
ca	MD
n't	RB
stop	DT
it	DT
.	.
	
Speculators	DT
are	VBP
calling	VBG
for	IN
a	DT
degree	DT
of	IN
liquidity	NN
that	WDT
is	VBZ
not	RB
there	RB
in	IN
the	DT
market	NN
.	.
''	''
	
Many	JJ
money	NN
managers	NNS
and	CC
some	DT
traders	NNS
had	VBN
already	RB
left	JJ
their	DT
offices	NNS
early	JJ
Friday	NNP
afternoon	NN
on	IN
a	DT
warm	DT
autumn	DT
day	NN
--	--
because	IN
the	DT
stock	NN
market	NN
was	VBD
so	IN
quiet	JJ
.	.
	
Then	RB
in	IN
a	DT
lightning	DT
plunge	NN
,	,
the	DT
Dow	NNP
Jones	NNP
industrials	NNS
in	IN
barely	RB
an	DT
hour	NN
surrendered	DT
about	IN
a	DT
third	JJ
of	IN
their	DT
gains	NNS
this	DT
year	NN
,	,
chalking	DT
up	IN
a	DT
190.58-point	JJ
,	,
or	CC
6.9	DT
%	%
,	,
loss	NN
on	IN
the	DT
day	NN
in	IN
gargantuan	DT
trading	NN
volume	NN
.	.
	
Final-hour	DT
trading	NN
accelerated	VBD
to	DT
108.1	DT
million	CD
shares	NNS
,	,
a	DT
record	NN
for	IN
the	DT
Big	NNP
Board	NNP
.	.
	
At	IN
the	DT
end	NN
of	IN
the	DT
day	NN
,	,
251.2	DT
million	CD
shares	NNS
were	VBD
traded	VBN
.	.
	
The	NNP
Dow	NNP
Jones	NNP
industrials	NNS
closed	VBN
at	IN
2569.26	CD
.	.
	
The	NNP
Dow	NNP
's	VBZ
decline	NN
was	VBD
second	NN
in	IN
point	NN
terms	NNS
only	RB
to	DT
the	DT
508-point	DT
Black	NNP
Monday	NNP
crash	NN
that	WDT
occurred	VBD
Oct.	DT
19	CD
,	,
1987	CD
.	.
	
In	IN
percentage	NN
terms	NNS
,	,
however	RB
,	,
the	DT
Dow	NNP
's	VBZ
dive	NN
was	VBD
the	DT
12th-worst	DT
ever	RB
and	CC
the	DT
sharpest	DT
since	IN
the	DT
market	NN
fell	VBD
156.83	DT
,	,
or	CC
8	CD
%	%
,	,
a	DT
week	NN
after	IN
Black	NNP
Monday	NNP
.	.
	
The	NNP
Dow	NNP
fell	VBD
22.6	DT
%	%
on	IN
Black	NNP
Monday	NNP
.	.
	
Shares	NNS
of	IN
UAL	NNP
,	,
the	DT
parent	NN
of	IN
United	NNP
Airlines	NNP
,	,
were	VBD
extremely	RB
active	JJ
all	RB
day	NN
Friday	NNP
,	,
reacting	VBG
to	DT
news	NN
and	CC
rumors	NNS
about	IN
the	DT
proposed	VBN
$	$
6.79	CD
billion	CD
buy-out	NN
of	IN
the	DT
airline	NN
by	IN
an	DT
employee-management	DT
group	NN
.	.
	
Wall	NNP
Street	NNP
's	VBZ
takeover-stock	DT
speculators	NNS
,	,
or	CC
``	``
risk	NN
arbitragers	DT
,	,
''	''
had	VBN
placed	VBN
unusually	RB
large	JJ
bets	NNS
that	WDT
a	DT
takeover	NN
would	MD
succeed	DT
and	CC
UAL	NNP
stock	NN
would	MD
rise	NN
.	.
	
At	IN
2:43	DT
p.m.	DT
EDT	NNP
,	,
came	VBD
the	DT
sickening	DT
news	NN
:	:
The	NNP
Big	NNP
Board	NNP
was	VBD
halting	VBG
trading	NN
in	IN
UAL	NNP
,	,
``	``
pending	DT
news	NN
.	.
''	''
	
On	IN
the	DT
exchange	NN
floor	NN
,	,
``	``
as	IN
soon	RB
as	IN
UAL	NNP
stopped	VBN
trading	NN
,	,
we	DT
braced	DT
for	IN
a	DT
panic	NN
,	,
''	''
said	VBN
one	CD
top	NN
floor	NN
trader	NN
.	.
	
Several	JJ
traders	NNS
could	MD
be	DT
seen	VBN
shaking	DT
their	DT
heads	VBZ
when	DT
the	DT
news	NN
flashed	DT
.	.
	
For	IN
weeks	NNS
,	,
the	DT
market	NN
had	VBN
been	VBN
nervous	JJ
about	IN
takeovers	NNS
,	,
after	IN
Campeau	NNP
Corp.	DT
's	PRP
cash	NN
crunch	NN
spurred	DT
concern	NN
about	IN
the	DT
prospects	NNS
for	IN
future	NN
highly	RB
leveraged	JJ
takeovers	NNS
.	.
	
And	CC
10	CD
minutes	NNS
after	IN
the	DT
UAL	NNP
trading	NN
halt	NN
came	VBD
news	NN
that	WDT
the	DT
UAL	NNP
group	NN
could	MD
n't	RB
get	VBP
financing	NN
for	IN
its	DT
bid	NN
.	.
	
At	IN
this	DT
point	NN
,	,
the	DT
Dow	NNP
was	VBD
down	IN
about	IN
35	CD
points	NNS
.	.
	
The	NNP
market	NN
crumbled	DT
.	.
	
Arbitragers	DT
could	MD
n't	RB
dump	DT
their	DT
UAL	NNP
stock	NN
--	--
but	CC
they	DT
rid	JJ
themselves	DT
of	IN
nearly	RB
every	DT
``	``
rumor	DT
''	''
stock	NN
they	DT
had	VBN
.	.
	
For	IN
example	NN
,	,
their	DT
selling	NN
caused	VBN
trading	NN
halts	VBZ
to	DT
be	DT
declared	DT
in	IN
USAir	NNP
Group	NNP
,	,
which	DT
closed	VBN
down	IN
3	CD
7\/8	CD
to	DT
41	CD
1\/2	CD
,	,
Delta	NNP
Air	NNP
Lines	NNPS
,	,
which	DT
fell	VBD
7	CD
3\/4	CD
to	DT
69	DT
1\/4	CD
,	,
and	CC
Philips	DT
Industries	NNPS
,	,
which	DT
sank	VBD
3	CD
to	DT
21	CD
1\/2	CD
.	.
	
These	DT
stocks	NNS
eventually	RB
reopened	DT
.	.
	
But	CC
as	IN
panic	NN
spread	VBD
,	,
speculators	NNS
began	VBD
to	DT
sell	NN
blue-chip	DT
stocks	NNS
such	JJ
as	IN
Philip	NNP
Morris	DT
and	CC
International	NNP
Business	NNP
Machines	DT
to	DT
offset	DT
their	DT
losses	NNS
.	.
	
When	DT
trading	NN
was	VBD
halted	VBD
in	IN
Philip	NNP
Morris	DT
,	,
the	DT
stock	NN
was	VBD
trading	NN
at	IN
41	CD
,	,
down	IN
3	CD
3\/8	DT
,	,
while	IN
IBM	DT
closed	VBN
5	CD
5\/8	CD
lower	JJR
at	IN
102	DT
.	.
	
Selling	DT
snowballed	DT
because	IN
of	IN
waves	NNS
of	IN
automatic	DT
``	``
stop-loss	DT
''	''
orders	NNS
,	,
which	DT
are	VBP
triggered	VBN
by	IN
computer	NN
when	DT
prices	NNS
fall	NN
to	DT
certain	JJ
levels	NNS
.	.
	
Most	RBS
of	IN
the	DT
stock	NN
selling	NN
pressure	NN
came	VBD
from	IN
Wall	NNP
Street	NNP
professionals	NNS
,	,
including	VBG
computer-guided	DT
program	NN
traders	NNS
.	.
	
Traders	NNS
said	VBN
most	RBS
of	IN
their	DT
major	JJ
institutional	DT
investors	NNS
,	,
on	IN
the	DT
other	JJ
hand	NN
,	,
sat	VBN
tight	RB
.	.
	
Now	RB
,	,
at	IN
3:07	DT
,	,
one	CD
of	IN
the	DT
market	NN
's	VBZ
post-crash	JJ
``	``
reforms	NNS
''	''
took	VBD
hold	VBP
as	IN
the	DT
S&P	NNP
500	CD
futures	NNS
contract	NN
had	VBN
plunged	VBD
12	CD
points	NNS
,	,
equivalent	NN
to	DT
around	IN
a	DT
100-point	DT
drop	NN
in	IN
the	DT
Dow	NNP
industrials	NNS
.	.
	
Under	IN
an	DT
agreement	NN
signed	DT
by	IN
the	DT
Big	NNP
Board	NNP
and	CC
the	DT
Chicago	NNP
Mercantile	NNP
Exchange	NNP
,	,
trading	NN
was	VBD
temporarily	DT
halted	VBD
in	IN
Chicago	NNP
.	.
	
After	IN
the	DT
trading	NN
halt	NN
in	IN
the	DT
S&P	NNP
500	CD
pit	NN
in	IN
Chicago	NNP
,	,
waves	NNS
of	IN
selling	NN
continued	VBN
to	DT
hit	VBD
stocks	NNS
themselves	DT
on	IN
the	DT
Big	NNP
Board	NNP
,	,
and	CC
specialists	NNS
continued	VBN
to	DT
notch	DT
prices	NNS
down	IN
.	.
	
As	IN
a	DT
result	NN
,	,
the	DT
link	DT
between	IN
the	DT
futures	NNS
and	CC
stock	NN
markets	NNS
ripped	DT
apart	DT
.	.
	
Without	IN
the	DT
guidepost	DT
of	IN
stock-index	NN
futures	NNS
--	--
the	DT
barometer	DT
of	IN
where	DT
traders	NNS
think	VBP
the	DT
overall	JJ
stock	NN
market	NN
is	VBZ
headed	VBN
--	--
many	JJ
traders	NNS
were	VBD
afraid	DT
to	DT
trust	NN
stock	NN
prices	NNS
quoted	VBN
on	IN
the	DT
Big	NNP
Board	NNP
.	.
	
The	NNP
futures	NNS
halt	NN
was	VBD
even	RB
assailed	DT
by	IN
Big	NNP
Board	NNP
floor	NN
traders	NNS
.	.
	
``	``
It	PRP
screwed	DT
things	NNS
up	IN
,	,
''	''
said	VBN
one	CD
major	JJ
specialist	NN
.	.
	
This	DT
confusion	NN
effectively	RB
halted	VBD
one	CD
form	NN
of	IN
program	NN
trading	NN
,	,
stock	NN
index	NN
arbitrage	DT
,	,
that	WDT
closely	RB
links	DT
the	DT
futures	NNS
and	CC
stock	NN
markets	NNS
,	,
and	CC
has	VBZ
been	VBN
blamed	DT
by	IN
some	DT
for	IN
the	DT
market	NN
's	VBZ
big	JJ
swings	DT
.	.
	
(	(
In	IN
a	DT
stock-index	NN
arbitrage	DT
sell	NN
program	NN
,	,
traders	NNS
buy	DT
or	CC
sell	NN
big	JJ
baskets	DT
of	IN
stocks	NNS
and	CC
offset	DT
the	DT
trade	NN
in	IN
futures	NNS
to	DT
lock	NN
in	IN
a	DT
price	NN
difference	NN
.	.
)	)
	
``	``
When	DT
the	DT
airline	NN
information	NN
came	VBD
through	IN
,	,
it	DT
cracked	DT
every	DT
model	NN
we	DT
had	VBN
for	IN
the	DT
marketplace	NN
,	,
''	''
said	VBN
a	DT
managing	VBG
director	NN
at	IN
one	CD
of	IN
the	DT
largest	JJS
program-trading	DT
firms	NNS
.	.
	
``	``
We	DT
did	VBD
n't	RB
even	RB
get	VBP
a	DT
chance	NN
to	DT
do	VBP
the	DT
programs	NNS
we	DT
wanted	VBN
to	DT
do	VBP
.	.
''	''
	
But	CC
stocks	NNS
kept	VBN
falling	VBG
.	.
	
The	NNP
Dow	NNP
industrials	NNS
were	VBD
down	IN
55	DT
points	NNS
at	IN
3	CD
p.m.	DT
before	IN
the	DT
futures-trading	DT
halt	NN
.	.
	
At	IN
3:30	DT
p.m.	DT
,	,
at	IN
the	DT
end	NN
of	IN
the	DT
``	``
cooling	DT
off	IN
''	''
period	NN
,	,
the	DT
average	NN
was	VBD
down	IN
114.76	DT
points	NNS
.	.
	
Meanwhile	RB
,	,
during	IN
the	DT
the	DT
S&P	NNP
trading	NN
halt	NN
,	,
S&P	NNP
futures	NNS
sell	NN
orders	NNS
began	VBD
piling	DT
up	IN
,	,
while	IN
stocks	NNS
in	IN
New	NNP
York	NNP
kept	VBN
falling	VBG
sharply	RB
.	.
	
Big	NNP
Board	NNP
Chairman	NNP
John	NNP
J.	DT
Phelan	DT
said	VBN
yesterday	NN
the	DT
circuit	NN
breaker	NN
``	``
worked	VBD
well	RB
mechanically	DT
.	.
	
I	DT
just	RB
think	VBP
it	DT
's	VBZ
nonproductive	DT
at	IN
this	DT
point	NN
to	DT
get	VBP
into	IN
a	DT
debate	NN
if	IN
index	NN
arbitrage	DT
would	MD
have	VBP
helped	VBD
or	CC
hurt	VBN
things	NNS
.	.
''	''
	
Under	IN
another	DT
post-crash	JJ
system	NN
,	,
Big	NNP
Board	NNP
President	NNP
Richard	NNP
Grasso	DT
(	(
Mr.	DT
Phelan	DT
was	VBD
flying	DT
to	DT
Bangkok	DT
as	IN
the	DT
market	NN
was	VBD
falling	VBG
)	)
was	VBD
talking	VBG
on	IN
an	DT
``	``
inter-exchange	DT
hot	DT
line	NN
''	''
to	DT
the	DT
other	JJ
exchanges	NNS
,	,
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
and	CC
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
.	.
	
He	DT
camped	DT
out	IN
at	IN
a	DT
high-tech	DT
nerve	DT
center	NN
on	IN
the	DT
floor	NN
of	IN
the	DT
Big	NNP
Board	NNP
,	,
where	DT
he	DT
could	MD
watch	DT
updates	DT
on	IN
prices	NNS
and	CC
pending	DT
stock	NN
orders	NNS
.	.
	
At	IN
about	IN
3:30	DT
p.m.	DT
EDT	NNP
,	,
S&P	NNP
futures	NNS
resumed	DT
trading	NN
,	,
and	CC
for	IN
a	DT
brief	NN
time	NN
the	DT
futures	NNS
and	CC
stock	NN
markets	NNS
started	VBN
to	DT
come	VBN
back	VB
in	IN
line	NN
.	.
	
Buyers	DT
stepped	DT
in	IN
to	DT
the	DT
futures	NNS
pit	NN
.	.
	
But	CC
the	DT
build-up	DT
of	IN
S&P	NNP
futures	NNS
sell	NN
orders	NNS
weighed	DT
on	IN
the	DT
market	NN
,	,
and	CC
the	DT
link	DT
with	IN
stocks	NNS
began	VBD
to	DT
fray	DT
again	RB
.	.
	
At	IN
about	IN
3:45	DT
,	,
the	DT
S&P	NNP
market	NN
careened	DT
to	DT
still	RB
another	DT
limit	NN
,	,
of	IN
30	CD
points	NNS
down	IN
,	,
and	CC
trading	NN
was	VBD
locked	DT
again	RB
.	.
	
Futures	NNPS
traders	NNS
say	VBP
the	DT
S&P	NNP
was	VBD
signaling	DT
that	WDT
the	DT
Dow	NNP
could	MD
fall	NN
as	IN
much	JJ
as	IN
200	CD
points	NNS
.	.
	
During	IN
this	DT
time	NN
,	,
small	JJ
investors	NNS
began	VBD
ringing	DT
their	DT
brokers	DT
,	,
wondering	DT
whether	IN
another	DT
crash	NN
had	VBN
begun	VBN
.	.
	
At	IN
Prudential-Bache	DT
Securities	NNPS
Inc.	DT
,	,
which	DT
is	VBZ
trying	VBG
to	DT
cater	DT
to	DT
small	JJ
investors	NNS
,	,
some	DT
demoralized	DT
brokers	DT
thought	VBN
this	DT
would	MD
be	DT
the	DT
final	JJ
confidence-crusher	DT
.	.
	
That	IN
's	VBZ
when	DT
George	NNP
L.	DT
Ball	DT
,	,
chairman	NN
of	IN
the	DT
Prudential	DT
Insurance	NNP
Co.	DT
of	IN
America	NNP
unit	NN
,	,
took	VBD
to	DT
the	DT
internal	JJ
intercom	DT
system	NN
to	DT
declare	DT
that	WDT
the	DT
plunge	NN
was	VBD
only	RB
``	``
mechanical	DT
.	.
''	''
	
``	``
I	DT
have	VBP
a	DT
hunch	DT
that	WDT
this	DT
particular	JJ
decline	NN
today	NN
is	VBZ
something	NN
`	`
more	RBR
ado	DT
about	IN
less	RBR
.	.
'	'
	
It	PRP
would	MD
be	DT
my	DT
inclination	DT
to	DT
advise	DT
clients	NNS
not	RB
to	DT
sell	NN
,	,
to	DT
look	VBP
for	IN
an	DT
opportunity	NN
to	DT
buy	DT
,	,
''	''
Mr.	DT
Ball	DT
told	VBN
the	DT
brokers	DT
.	.
	
At	IN
Merrill	NNP
Lynch	NNP
&	&
Co.	DT
,	,
the	DT
nation	NN
's	VBZ
biggest	JJS
brokerage	NN
firm	NN
,	,
a	DT
news	NN
release	NN
was	VBD
prepared	VBN
headlined	DT
``	``
Merrill	NNP
Lynch	NNP
Comments	DT
on	IN
Market	NNP
Drop	DT
.	.
''	''
	
The	NNP
release	NN
cautioned	DT
that	WDT
``	``
there	RB
are	VBP
significant	JJ
differences	NNS
between	IN
the	DT
current	NN
environment	NN
and	CC
that	WDT
of	IN
October	NNP
1987	CD
''	''
and	CC
that	WDT
there	RB
are	VBP
still	RB
``	``
attractive	DT
investment	NN
opportunities	NNS
''	''
in	IN
the	DT
stock	NN
market	NN
.	.
	
However	RB
,	,
Jeffrey	DT
B.	DT
Lane	DT
,	,
president	NN
of	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	DT
,	,
said	VBN
that	WDT
Friday	NNP
's	VBZ
plunge	NN
is	VBZ
``	``
going	VBG
to	DT
set	VBN
back	VB
''	''
relations	NNS
with	IN
customers	NNS
,	,
``	``
because	IN
it	DT
reinforces	DT
the	DT
concern	NN
of	IN
volatility	DT
.	.
	
And	CC
I	DT
think	VBP
a	DT
lot	NN
of	IN
people	NNS
will	MD
harp	DT
on	IN
program	NN
trading	NN
.	.
	
It	PRP
's	VBZ
going	VBG
to	DT
bring	DT
the	DT
debate	NN
right	NN
back	VB
to	DT
the	DT
forefront	DT
.	.
''	''
	
As	IN
the	DT
Dow	NNP
average	NN
ground	VBD
to	DT
its	DT
final	JJ
190.58	CD
loss	NN
Friday	NNP
,	,
the	DT
S&P	NNP
pit	NN
stayed	DT
locked	DT
at	IN
its	DT
30-point	JJ
trading	NN
limit	NN
.	.
	
Jeffrey	DT
Yass	DT
of	IN
program	NN
trader	NN
Susquehanna	DT
Investment	NNP
Group	NNP
said	VBN
2,000	DT
S&P	NNP
contracts	NNS
were	VBD
for	IN
sale	NN
on	IN
the	DT
close	NN
,	,
the	DT
equivalent	NN
of	IN
$	$
330	CD
million	CD
in	IN
stock	NN
.	.
	
But	CC
there	RB
were	VBD
no	RB
buyers	NNS
.	.
	
While	IN
Friday	NNP
's	VBZ
debacle	NN
involved	VBN
mainly	RB
professional	JJ
traders	NNS
rather	RB
than	IN
investors	NNS
,	,
it	DT
left	JJ
the	DT
market	NN
vulnerable	JJ
to	DT
continued	VBN
selling	NN
this	DT
morning	NN
,	,
traders	NNS
said	VBN
.	.
	
Stock-index	DT
futures	NNS
contracts	NNS
settled	VBD
at	IN
much	JJ
lower	JJR
prices	NNS
than	IN
indexes	NNS
of	IN
the	DT
stock	NN
market	NN
itself	DT
.	.
	
At	IN
those	DT
levels	NNS
,	,
stocks	NNS
are	VBP
set	VBN
up	IN
to	DT
be	DT
hammered	VBN
by	IN
index	NN
arbitragers	DT
,	,
who	WP
lock	NN
in	IN
profits	NNS
by	IN
buying	NN
futures	NNS
when	DT
futures	NNS
prices	NNS
fall	NN
,	,
and	CC
simultaneously	RB
sell	NN
off	IN
stocks	NNS
.	.
	
But	CC
nobody	DT
knows	DT
at	IN
what	WP
level	NN
the	DT
futures	NNS
and	CC
stocks	NNS
will	MD
open	JJ
today	NN
.	.
	
The	NNP
de-linkage	DT
between	IN
the	DT
stock	NN
and	CC
futures	NNS
markets	NNS
Friday	NNP
will	MD
undoubtedly	RB
cause	NN
renewed	VBN
debate	NN
about	IN
whether	IN
Wall	NNP
Street	NNP
is	VBZ
properly	DT
prepared	VBN
for	IN
another	DT
crash	NN
situation	DT
.	.
	
The	NNP
Big	NNP
Board	NNP
's	VBZ
Mr.	DT
Grasso	DT
said	VBN
,	,
``	``
Our	DT
systemic	DT
performance	NN
was	VBD
good	JJ
.	.
''	''
	
But	CC
the	DT
exchange	NN
will	MD
``	``
look	VBP
at	IN
the	DT
performance	NN
of	IN
all	RB
specialists	NNS
in	IN
all	RB
stocks	NNS
.	.
	
Obviously	DT
we	DT
'll	MD
take	VBP
a	DT
close	NN
look	VBP
at	IN
any	DT
situation	DT
in	IN
which	DT
we	DT
think	VBP
the	DT
dealer-community	DT
obligations	NNS
were	VBD
n't	RB
met	VBN
,	,
''	''
he	DT
said	VBN
.	.
	
(	(
See	DT
related	VBN
story	NN
:	:
``	``
Fed	NNP
Ready	DT
to	DT
Inject	DT
Big	NNP
Funds	DT
''	''
--	--
WSJ	DT
Oct.	DT
16	CD
,	,
1989	CD
)	)
	
But	CC
specialists	NNS
complain	VBP
privately	RB
that	WDT
just	RB
as	IN
in	IN
the	DT
1987	CD
crash	NN
,	,
the	DT
``	``
upstairs	DT
''	''
firms	NNS
--	--
big	JJ
investment	NN
banks	NNS
that	WDT
support	NN
the	DT
market	NN
by	IN
trading	NN
big	JJ
blocks	DT
of	IN
stock	NN
--	--
stayed	DT
on	IN
the	DT
sidelines	DT
during	IN
Friday	NNP
's	VBZ
blood-letting	DT
.	.
	
Mr.	DT
Phelan	DT
said	VBN
,	,
``	``
It	PRP
will	MD
take	VBP
another	DT
day	NN
or	CC
two	CD
''	''
to	DT
analyze	DT
who	WP
was	VBD
buying	NN
and	CC
selling	NN
Friday	NNP
.	.
	
Concerning	DT
your	DT
Sept.	DT
21	CD
page-one	DT
article	NN
on	IN
Prince	DT
Charles	NNP
and	CC
the	DT
leeches	DT
:	:
It	PRP
's	VBZ
a	DT
few	JJ
hundred	CD
years	NNS
since	IN
England	DT
has	VBZ
been	VBN
a	DT
kingdom	DT
.	.
	
It	PRP
's	VBZ
now	RB
the	DT
United	NNP
Kingdom	DT
of	IN
Great	NNP
Britain	NNP
and	CC
Northern	DT
Ireland	DT
,	,
comprising	DT
Wales	DT
,	,
Northern	DT
Ireland	DT
,	,
Scotland	DT
,	,
and	CC
...	...
oh	DT
yes	DT
,	,
England	DT
,	,
too	RB
.	.
	
Just	RB
thought	VBN
you	DT
'd	MD
like	JJ
to	DT
know	VBP
.	.
	
George	NNP
Morton	DT
	
Ports	DT
of	IN
Call	DT
Inc.	DT
reached	VBN
agreements	DT
to	DT
sell	NN
its	DT
remaining	VBG
seven	CD
aircraft	NN
to	DT
buyers	NNS
that	WDT
were	VBD
n't	RB
disclosed	VBN
.	.
	
The	NNP
agreements	DT
bring	DT
to	DT
a	DT
total	JJ
of	IN
nine	CD
the	DT
number	NN
of	IN
planes	DT
the	DT
travel	DT
company	NN
has	VBZ
sold	VBN
this	DT
year	NN
as	IN
part	NN
of	IN
a	DT
restructuring	NN
.	.
	
The	NNP
company	NN
said	VBN
a	DT
portion	NN
of	IN
the	DT
$	$
32	CD
million	CD
realized	VBD
from	IN
the	DT
sales	NNS
will	MD
be	DT
used	VBN
to	DT
repay	DT
its	DT
bank	NN
debt	NN
and	CC
other	JJ
obligations	NNS
resulting	VBG
from	IN
the	DT
currently	RB
suspended	VBN
air-charter	DT
operations	NNS
.	.
	
Earlier	DT
the	DT
company	NN
announced	VBN
it	DT
would	MD
sell	NN
its	DT
aging	VBG
fleet	NN
of	IN
Boeing	NNP
Co.	DT
707s	DT
because	IN
of	IN
increasing	VBG
maintenance	DT
costs	NNS
.	.
	
A	DT
consortium	DT
of	IN
private	JJ
investors	NNS
operating	VBG
as	IN
LJH	DT
Funding	DT
Co.	DT
said	VBD
it	DT
has	VBZ
made	VBN
a	DT
$	$
409	CD
million	CD
cash	NN
bid	NN
for	IN
most	RBS
of	IN
L.J.	DT
Hooker	NNP
Corp.	DT
's	PRP
real-estate	NN
and	CC
shopping-center	NN
holdings	NNS
.	.
	
The	NNP
$	$
409	CD
million	CD
bid	NN
includes	VBZ
the	DT
assumption	NN
of	IN
an	DT
estimated	VBN
$	$
300	CD
million	CD
in	IN
secured	VBN
liabilities	DT
on	IN
those	DT
properties	NNS
,	,
according	VBG
to	DT
those	DT
making	VBG
the	DT
bid	NN
.	.
	
The	NNP
group	NN
is	VBZ
led	VBN
by	IN
Jay	DT
Shidler	DT
,	,
chief	NN
executive	NN
officer	NN
of	IN
Shidler	DT
Investment	NNP
Corp.	DT
in	IN
Honolulu	DT
,	,
and	CC
A.	DT
Boyd	DT
Simpson	DT
,	,
chief	NN
executive	NN
of	IN
the	DT
Atlanta-based	DT
Simpson	DT
Organization	DT
Inc	NNP
.	.
	
Mr.	DT
Shidler	DT
's	VBZ
company	NN
specializes	DT
in	IN
commercial	JJ
real-estate	NN
investment	NN
and	CC
claims	VBZ
to	DT
have	VBP
$	$
1	CD
billion	CD
in	IN
assets	NNS
;	;
Mr.	DT
Simpson	DT
is	VBZ
a	DT
developer	NN
and	CC
a	DT
former	JJ
senior	JJ
executive	NN
of	IN
L.J.	DT
Hooker	NNP
.	.
	
``	``
The	NNP
assets	NNS
are	VBP
good	JJ
,	,
but	CC
they	DT
require	VBP
more	RBR
money	NN
and	CC
management	NN
''	''
than	IN
can	MD
be	DT
provided	VBN
in	IN
L.J.	DT
Hooker	NNP
's	VBZ
current	NN
situation	DT
,	,
said	VBN
Mr.	DT
Simpson	DT
in	IN
an	DT
interview	NN
.	.
``	``
	
Hooker	NNP
's	VBZ
philosophy	DT
was	VBD
to	DT
build	DT
and	CC
sell	NN
.	.
	
We	DT
want	VBP
to	DT
build	DT
and	CC
hold	VBP
.	.
''	''
	
L.J.	DT
Hooker	NNP
,	,
based	VBN
in	IN
Atlanta	DT
,	,
is	VBZ
operating	VBG
with	IN
protection	NN
from	IN
its	DT
creditors	NNS
under	IN
Chapter	NN
11	CD
of	IN
the	DT
U.S.	DT
Bankruptcy	NNP
Code	NNP
.	.
	
Its	DT
parent	NN
company	NN
,	,
Hooker	NNP
Corp.	DT
of	IN
Sydney	DT
,	,
Australia	NNP
,	,
is	VBZ
currently	RB
being	VBG
managed	VBD
by	IN
a	DT
court-appointed	DT
provisional	DT
liquidator	DT
.	.
	
Sanford	DT
Sigoloff	DT
,	,
chief	NN
executive	NN
of	IN
L.J.	DT
Hooker	NNP
,	,
said	VBN
yesterday	NN
in	IN
a	DT
statement	NN
that	WDT
he	DT
has	VBZ
not	RB
yet	RB
seen	VBN
the	DT
bid	NN
but	CC
that	WDT
he	DT
would	MD
review	NN
it	DT
and	CC
bring	DT
it	DT
to	DT
the	DT
attention	NN
of	IN
the	DT
creditors	NNS
committee	NN
.	.
	
The	NNP
$	$
409	CD
million	CD
bid	NN
is	VBZ
estimated	VBN
by	IN
Mr.	DT
Simpson	DT
as	IN
representing	VBG
75	CD
%	%
of	IN
the	DT
value	NN
of	IN
all	RB
Hooker	NNP
real-estate	NN
holdings	NNS
in	IN
the	DT
U.S.	DT
.	.
	
Not	RB
included	VBN
in	IN
the	DT
bid	NN
are	VBP
Bonwit	NNP
Teller	NNP
or	CC
B.	DT
Altman	NNP
&	&
Co.	DT
,	,
L.J.	DT
Hooker	NNP
's	VBZ
department-store	JJ
chains	DT
.	.
	
The	NNP
offer	NN
covers	DT
the	DT
massive	JJ
1.8	CD
million-square-foot	DT
Forest	DT
Fair	DT
Mall	DT
in	IN
Cincinnati	DT
,	,
the	DT
800,000	DT
square-foot	DT
Richland	DT
Fashion	DT
Mall	DT
in	IN
Columbia	NNP
,	,
S.C.	DT
,	,
and	CC
the	DT
700,000	CD
square-foot	DT
Thornton	DT
Town	DT
Center	DT
mall	DT
in	IN
Thornton	DT
,	,
Colo	DT
.	.
	
The	NNP
Thornton	DT
mall	DT
opened	VBN
Sept.	DT
19	CD
with	IN
a	DT
Bigg	DT
's	VBZ
hypermarket	DT
as	IN
its	DT
anchor	DT
;	;
the	DT
Columbia	NNP
mall	DT
is	VBZ
expected	VBN
to	DT
open	JJ
Nov.	DT
15	CD
.	.
	
Other	JJ
Hooker	NNP
properties	NNS
included	VBN
are	VBP
a	DT
20-story	DT
office	NN
tower	DT
in	IN
midtown	DT
Atlanta	DT
,	,
expected	VBN
to	DT
be	DT
completed	VBN
next	JJ
February	DT
;	;
vacant	JJ
land	NN
sites	NNS
in	IN
Florida	DT
and	CC
Ohio	NNP
;	;
L.J.	DT
Hooker	NNP
International	NNP
,	,
the	DT
commercial	JJ
real-estate	NN
brokerage	NN
company	NN
that	WDT
once	RB
did	VBD
business	NN
as	IN
Merrill	NNP
Lynch	NNP
Commercial	NNP
Real	DT
Estate	DT
,	,
plus	CC
other	JJ
shopping	DT
centers	NNS
.	.
	
The	NNP
consortium	DT
was	VBD
put	VBN
together	RB
by	IN
Hoare	DT
Govett	DT
,	,
the	DT
London-based	DT
investment	NN
banking	NN
company	NN
that	WDT
is	VBZ
a	DT
subsidiary	NN
of	IN
Security	NNP
Pacific	NNP
Corp	NNP
.	.
	
``	``
We	DT
do	VBP
n't	RB
anticipate	DT
any	DT
problems	NNS
in	IN
raising	VBG
the	DT
funding	NN
for	IN
the	DT
bid	NN
,	,
''	''
said	VBN
Allan	DT
Campbell	NNP
,	,
the	DT
head	NN
of	IN
mergers	NNS
and	CC
acquisitions	NNS
at	IN
Hoare	DT
Govett	DT
,	,
in	IN
an	DT
interview	NN
.	.
	
Hoare	DT
Govett	DT
is	VBZ
acting	VBG
as	IN
the	DT
consortium	DT
's	VBZ
investment	NN
bankers	NNS
.	.
	
According	VBG
to	DT
people	NNS
familiar	JJ
with	IN
the	DT
consortium	DT
,	,
the	DT
bid	NN
was	VBD
code-named	DT
Project	DT
Klute	DT
,	,
a	DT
reference	DT
to	DT
the	DT
film	DT
``	``
Klute	DT
''	''
in	IN
which	DT
a	DT
prostitute	DT
played	VBD
by	IN
actress	DT
Jane	DT
Fonda	DT
is	VBZ
saved	DT
from	IN
a	DT
psychotic	DT
businessman	NN
by	IN
a	DT
police	DT
officer	NN
named	VBN
John	NNP
Klute	DT
.	.
	
L.J.	DT
Hooker	NNP
was	VBD
a	DT
small	JJ
home-building	DT
company	NN
based	VBN
in	IN
Atlanta	DT
in	IN
1979	CD
when	DT
Mr.	DT
Simpson	DT
was	VBD
hired	VBN
to	DT
push	NN
it	DT
into	IN
commercial	JJ
development	NN
.	.
	
The	NNP
company	NN
grew	VBD
modestly	DT
until	IN
1986	CD
,	,
when	DT
a	DT
majority	NN
position	NN
in	IN
Hooker	NNP
Corp.	DT
was	VBD
acquired	VBN
by	IN
Australian	JJ
developer	NN
George	NNP
Herscu	DT
,	,
currently	RB
Hooker	NNP
's	VBZ
chairman	NN
.	.
	
Mr.	DT
Herscu	DT
proceeded	DT
to	DT
launch	DT
an	DT
ambitious	JJ
,	,
but	CC
ill-fated	DT
,	,
$	$
1	CD
billion	CD
acquisition	NN
binge	DT
that	WDT
included	VBN
Bonwit	NNP
Teller	NNP
and	CC
B.	DT
Altman	NNP
&	&
Co.	DT
,	,
as	IN
well	RB
as	IN
majority	NN
positions	NNS
in	IN
Merksamer	DT
Jewelers	DT
,	,
a	DT
Sacramento	DT
chain	NN
;	;
Sakowitz	DT
Inc.	DT
,	,
the	DT
Houston-based	JJ
retailer	NN
,	,
and	CC
Parisian	DT
Inc.	DT
,	,
the	DT
Southeast	NNP
department-store	JJ
chain	NN
.	.
	
Eventually	DT
Mr.	DT
Simpson	DT
and	CC
Mr.	DT
Herscu	DT
had	VBN
a	DT
falling	VBG
out	IN
over	IN
the	DT
direction	DT
of	IN
the	DT
company	NN
,	,
and	CC
Mr.	DT
Simpson	DT
said	VBN
he	DT
resigned	VBD
in	IN
1988	CD
.	.
	
Since	IN
then	RB
,	,
Hooker	NNP
Corp.	DT
has	VBZ
sold	VBN
its	DT
interest	NN
in	IN
the	DT
Parisian	DT
chain	NN
back	VB
to	DT
Parisian	DT
's	VBZ
management	NN
and	CC
is	VBZ
currently	RB
attempting	VBG
to	DT
sell	NN
the	DT
B.	DT
Altman	NNP
&	&
Co.	DT
chain	NN
.	.
	
In	IN
addition	NN
,	,
Robert	NNP
Sakowitz	DT
,	,
chief	NN
executive	NN
of	IN
the	DT
Sakowitz	DT
chain	NN
,	,
is	VBZ
seeking	VBG
funds	NNS
to	DT
buy	DT
out	IN
the	DT
Hooker	NNP
interest	NN
in	IN
his	DT
company	NN
.	.
	
The	NNP
Merksamer	DT
chain	NN
is	VBZ
currently	RB
being	VBG
offered	VBN
for	IN
sale	NN
by	IN
First	NNP
Boston	NNP
Corp	NNP
.	.
	
Reached	DT
in	IN
Honolulu	DT
,	,
Mr.	DT
Shidler	DT
said	VBN
that	WDT
he	DT
believes	VBZ
the	DT
various	JJ
Hooker	NNP
malls	DT
can	MD
become	VBN
profitable	JJ
with	IN
new	JJ
management	NN
.	.
	
``	``
These	DT
are	VBP
n't	RB
mature	DT
assets	NNS
,	,
but	CC
they	DT
have	VBP
the	DT
potential	JJ
to	DT
be	DT
so	IN
,	,
''	''
said	VBN
Mr.	DT
Shidler	DT
.	.
	
``	``
Managed	DT
properly	DT
,	,
and	CC
with	IN
a	DT
long-term	JJ
outlook	NN
,	,
these	DT
can	MD
become	VBN
investment-grade	JJ
quality	NN
properties	NNS
.	.
	
Canadian	JJ
steel-ingot	DT
production	NN
totaled	DT
291,890	DT
metric	JJ
tons	NNS
in	IN
the	DT
week	NN
ended	VBD
Oct.	DT
7	CD
,	,
up	IN
14.8	DT
%	%
from	IN
the	DT
preceding	DT
week	NN
's	VBZ
total	JJ
of	IN
254,280	DT
tons	NNS
,	,
Statistics	NNP
Canada	NNP
,	,
a	DT
federal	JJ
agency	NN
,	,
said	VBN
.	.
	
The	NNP
week	NN
's	VBZ
total	JJ
was	VBD
up	IN
6.2	DT
%	%
from	IN
274,963	DT
tons	NNS
a	DT
year	NN
earlier	JJR
.	.
	
The	NNP
year-to-date	DT
total	JJ
was	VBD
12,006,883	DT
tons	NNS
,	,
up	IN
7.8	DT
%	%
from	IN
11,141,711	DT
tons	NNS
a	DT
year	NN
earlier	JJR
.	.
	
The	NNP
Treasury	NNP
plans	NNS
to	DT
raise	DT
$	$
175	DT
million	CD
in	IN
new	JJ
cash	NN
Thursday	NNP
by	IN
selling	NN
about	IN
$	$
9.75	DT
billion	CD
of	IN
52-week	DT
bills	NNS
and	CC
redeeming	DT
$	$
9.58	DT
billion	CD
of	IN
maturing	DT
bills	NNS
.	.
	
The	NNP
bills	NNS
will	MD
be	DT
dated	DT
Oct.	DT
26	CD
and	CC
will	MD
mature	DT
Oct.	DT
25	CD
,	,
1990	CD
.	.
	
They	DT
will	MD
be	DT
available	JJ
in	IN
minimum	JJ
denominations	DT
of	IN
$	$
10,000	CD
.	.
	
Bids	DT
must	MD
be	DT
received	VBN
by	IN
1	CD
p.m.	DT
EDT	NNP
Thursday	NNP
at	IN
the	DT
Treasury	NNP
or	CC
at	IN
Federal	NNP
Reserve	NNP
banks	NNS
or	CC
branches	DT
.	.
	
As	IN
small	JJ
investors	NNS
peppered	DT
their	DT
mutual	JJ
funds	NNS
with	IN
phone	NN
calls	VBZ
over	IN
the	DT
weekend	NN
,	,
big	JJ
fund	NN
managers	NNS
said	VBN
they	DT
have	VBP
a	DT
strong	JJ
defense	NN
against	IN
any	DT
wave	DT
of	IN
withdrawals	DT
:	:
cash	NN
.	.
	
Unlike	DT
the	DT
weekend	NN
before	IN
Black	NNP
Monday	NNP
,	,
the	DT
funds	NNS
were	VBD
n't	RB
swamped	DT
with	IN
heavy	JJ
withdrawal	NN
requests	NNS
.	.
	
And	CC
many	JJ
fund	NN
managers	NNS
have	VBP
built	VBN
up	IN
cash	NN
levels	NNS
and	CC
say	VBP
they	DT
will	MD
be	DT
buying	NN
stock	NN
this	DT
week	NN
.	.
	
At	IN
Fidelity	NNP
Investments	NNPS
,	,
the	DT
nation	NN
's	VBZ
largest	JJS
fund	NN
company	NN
,	,
telephone	NN
volume	NN
was	VBD
up	IN
sharply	RB
,	,
but	CC
it	DT
was	VBD
still	RB
at	IN
just	RB
half	DT
the	DT
level	NN
of	IN
the	DT
weekend	NN
preceding	DT
Black	NNP
Monday	NNP
in	IN
1987	CD
.	.
	
The	NNP
Boston	NNP
firm	NN
said	VBN
stock-fund	DT
redemptions	NNS
were	VBD
running	VBG
at	IN
less	RBR
than	IN
one-third	DT
the	DT
level	NN
two	CD
years	NNS
ago	IN
.	.
	
As	IN
of	IN
yesterday	NN
afternoon	NN
,	,
the	DT
redemptions	NNS
represented	VBN
less	RBR
than	IN
15	CD
%	%
of	IN
the	DT
total	JJ
cash	NN
position	NN
of	IN
about	IN
$	$
2	CD
billion	CD
of	IN
Fidelity	NNP
's	VBZ
stock	NN
funds	NNS
.	.
	
``	``
Two	CD
years	NNS
ago	IN
there	RB
were	VBD
massive	JJ
redemption	DT
levels	NNS
over	IN
the	DT
weekend	NN
and	CC
a	DT
lot	NN
of	IN
fear	NN
around	IN
,	,
''	''
said	VBN
C.	DT
Bruce	DT
Johnstone	DT
,	,
who	WP
runs	VBZ
Fidelity	NNP
Investments	NNPS
'	'
$	$
5	CD
billion	CD
Equity-Income	DT
Fund	NNP
.	.
	
``	``
This	DT
feels	VBZ
more	RBR
like	JJ
a	DT
one-shot	DT
deal	NN
.	.
	
People	NNS
are	VBP
n't	RB
panicking	DT
.	.
''	''
	
The	NNP
test	NN
may	MD
come	VBN
today	NN
.	.
	
Friday	NNP
's	VBZ
stock	NN
market	NN
sell-off	NN
came	VBD
too	RB
late	JJ
for	IN
many	JJ
investors	NNS
to	DT
act	DT
.	.
	
Some	DT
shareholders	NNS
have	VBP
held	VBN
off	IN
until	IN
today	NN
because	IN
any	DT
fund	NN
exchanges	NNS
made	VBN
after	IN
Friday	NNP
's	VBZ
close	NN
would	MD
take	VBP
place	NN
at	IN
today	NN
's	VBZ
closing	VBG
prices	NNS
.	.
	
Stock	NNP
fund	NN
redemptions	NNS
during	IN
the	DT
1987	CD
debacle	NN
did	VBD
n't	RB
begin	VBP
to	DT
snowball	DT
until	IN
after	IN
the	DT
market	NN
opened	VBN
on	IN
Black	NNP
Monday	NNP
.	.
	
But	CC
fund	NN
managers	NNS
say	VBP
they	DT
're	VBP
ready	JJ
.	.
	
Many	JJ
have	VBP
raised	VBN
cash	NN
levels	NNS
,	,
which	DT
act	DT
as	IN
a	DT
buffer	DT
against	IN
steep	JJ
market	NN
declines	NNS
.	.
	
Mario	DT
Gabelli	DT
,	,
for	IN
instance	NN
,	,
holds	DT
cash	NN
positions	NNS
well	RB
above	IN
20	CD
%	%
in	IN
several	JJ
of	IN
his	DT
funds	NNS
.	.
	
Windsor	DT
Fund	NNP
's	VBZ
John	NNP
Neff	DT
and	CC
Mutual	DT
Series	DT
'	'
Michael	NNP
Price	DT
said	VBN
they	DT
had	VBN
raised	VBN
their	DT
cash	NN
levels	NNS
to	DT
more	RBR
than	IN
20	CD
%	%
and	CC
30	CD
%	%
,	,
respectively	RB
,	,
this	DT
year	NN
.	.
	
Even	RB
Peter	NNP
Lynch	NNP
,	,
manager	NN
of	IN
Fidelity	NNP
's	VBZ
$	$
12.7	DT
billion	CD
Magellan	DT
Fund	NNP
,	,
the	DT
nation	NN
's	VBZ
largest	JJS
stock	NN
fund	NN
,	,
built	VBN
up	IN
cash	NN
to	DT
7	CD
%	%
or	CC
$	$
850	DT
million	CD
.	.
	
One	CD
reason	NN
is	VBZ
that	WDT
after	IN
two	CD
years	NNS
of	IN
monthly	JJ
net	JJ
redemptions	NNS
,	,
the	DT
fund	NN
posted	VBN
net	JJ
inflows	DT
of	IN
money	NN
from	IN
investors	NNS
in	IN
August	NNP
and	CC
September	NNP
.	.
	
``	``
I	DT
've	VBP
let	VBN
the	DT
money	NN
build	DT
up	IN
,	,
''	''
Mr.	DT
Lynch	NNP
said	VBN
,	,
who	WP
added	VBN
that	WDT
he	DT
has	VBZ
had	VBN
trouble	NN
finding	DT
stocks	NNS
he	DT
likes	DT
.	.
	
Not	RB
all	RB
funds	NNS
have	VBP
raised	VBN
cash	NN
levels	NNS
,	,
of	IN
course	NN
.	.
	
As	IN
a	DT
group	NN
,	,
stock	NN
funds	NNS
held	VBN
10.2	CD
%	%
of	IN
assets	NNS
in	IN
cash	NN
as	IN
of	IN
August	NNP
,	,
the	DT
latest	JJS
figures	NNS
available	JJ
from	IN
the	DT
Investment	NNP
Company	NNP
Institute	NNP
.	.
	
That	IN
was	VBD
modestly	DT
higher	JJR
than	IN
the	DT
8.8	DT
%	%
and	CC
9.2	DT
%	%
levels	NNS
in	IN
August	NNP
and	CC
September	NNP
of	IN
1987	CD
.	.
	
Also	RB
,	,
persistent	DT
redemptions	NNS
would	MD
force	NN
some	DT
fund	NN
managers	NNS
to	DT
dump	DT
stocks	NNS
to	DT
raise	DT
cash	NN
.	.
	
But	CC
a	DT
strong	JJ
level	NN
of	IN
investor	NN
withdrawals	DT
is	VBZ
much	JJ
more	RBR
unlikely	JJ
this	DT
time	NN
around	IN
,	,
fund	NN
managers	NNS
said	VBN
.	.
	
A	DT
major	JJ
reason	NN
is	VBZ
that	WDT
investors	NNS
already	RB
have	VBP
sharply	RB
scaled	DT
back	VB
their	DT
purchases	NNS
of	IN
stock	NN
funds	NNS
since	IN
Black	NNP
Monday	NNP
.	.
	
Stock-fund	DT
sales	NNS
have	VBP
rebounded	VBD
in	IN
recent	JJ
months	NNS
,	,
but	CC
monthly	JJ
net	JJ
purchases	NNS
are	VBP
still	RB
running	VBG
at	IN
less	RBR
than	IN
half	DT
1987	CD
levels	NNS
.	.
	
``	``
There	DT
's	VBZ
not	RB
nearly	RB
as	IN
much	JJ
froth	DT
,	,
''	''
said	VBN
John	NNP
Bogle	DT
,	,
chairman	NN
of	IN
Vanguard	DT
Group	NNP
Inc.	DT
,	,
a	DT
big	JJ
Valley	NNP
Forge	DT
,	,
Pa.	DT
,	,
fund	NN
company	NN
.	.
	
Many	JJ
fund	NN
managers	NNS
argue	VBP
that	WDT
now	RB
's	VBZ
the	DT
time	NN
to	DT
buy	DT
.	.
	
Vincent	DT
Bajakian	DT
,	,
manager	NN
of	IN
the	DT
$	$
1.8	CD
billion	CD
Wellington	DT
Fund	NNP
,	,
added	VBN
to	DT
his	DT
positions	NNS
in	IN
Bristol-Myers	DT
Squibb	DT
,	,
Woolworth	NNP
and	CC
Dun	DT
&	&
Bradstreet	DT
Friday	NNP
.	.
	
And	CC
today	NN
he	DT
'll	MD
be	DT
looking	VBG
to	DT
buy	DT
drug	NN
stocks	NNS
like	JJ
Eli	NNP
Lilly	NNP
,	,
Pfizer	DT
and	CC
American	JJ
Home	NNP
Products	NNPS
whose	DT
dividend	NN
yields	NNS
have	VBP
been	VBN
bolstered	VBD
by	IN
stock	NN
declines	NNS
.	.
	
Fidelity	NNP
's	VBZ
Mr.	DT
Lynch	NNP
,	,
for	IN
his	DT
part	NN
,	,
snapped	DT
up	IN
Southern	NNP
Co.	DT
shares	NNS
Friday	NNP
after	IN
the	DT
stock	NN
got	VBN
hammered	VBN
.	.
	
If	IN
the	DT
market	NN
drops	NNS
further	JJ
today	NN
,	,
he	DT
said	VBN
he	DT
'll	MD
be	DT
buying	NN
blue	JJ
chips	NNS
such	JJ
as	IN
Bristol-Myers	DT
and	CC
Kellogg	DT
.	.
	
``	``
If	IN
they	DT
croak	DT
stocks	NNS
like	JJ
that	WDT
,	,
''	''
he	DT
said	VBN
,	,
it	DT
presents	VBZ
an	DT
opportunity	NN
that	WDT
is	VBZ
``	``
the	DT
kind	NN
of	IN
thing	NN
you	DT
dream	DT
about	IN
.	.
''	''
	
Major	NNP
mutual-fund	DT
groups	NNS
said	VBN
phone	NN
calls	VBZ
were	VBD
arriving	DT
at	IN
twice	RB
the	DT
normal	JJ
weekend	NN
pace	NN
yesterday	NN
.	.
	
But	CC
most	RBS
investors	NNS
were	VBD
seeking	VBG
share	NN
prices	NNS
and	CC
other	JJ
information	NN
.	.
	
Trading	NNP
volume	NN
was	VBD
only	RB
modestly	DT
higher	JJR
than	IN
normal	JJ
.	.
	
Still	RB
,	,
fund	NN
groups	NNS
are	VBP
n't	RB
taking	VBG
any	DT
chances	NNS
.	.
	
They	DT
hope	VB
to	DT
avoid	DT
the	DT
jammed	VBD
phone	NN
lines	NNS
and	CC
other	JJ
snags	DT
that	WDT
infuriated	DT
some	DT
fund	NN
investors	NNS
in	IN
October	NNP
1987	CD
.	.
	
Fidelity	NNP
on	IN
Saturday	DT
opened	VBN
its	DT
54	DT
walk-in	DT
investor	NN
centers	NNS
across	IN
the	DT
country	NN
.	.
	
The	NNP
centers	NNS
normally	DT
are	VBP
closed	VBN
through	IN
the	DT
weekend	NN
.	.
	
In	IN
addition	NN
,	,
East	NNP
Coast	DT
centers	NNS
will	MD
open	JJ
at	IN
7:30	DT
EDT	NNP
this	DT
morning	NN
,	,
instead	RB
of	IN
the	DT
normal	JJ
8:30	DT
.	.
	
T.	DT
Rowe	DT
Price	DT
Associates	NNPS
Inc.	DT
increased	VBN
its	DT
staff	NN
of	IN
phone	NN
representatives	NNS
to	DT
handle	DT
investor	NN
requests	NNS
.	.
	
The	NNP
Baltimore-based	DT
group	NN
noted	VBD
that	WDT
some	DT
investors	NNS
moved	VBD
money	NN
from	IN
stock	NN
funds	NNS
to	DT
money-market	DT
funds	NNS
.	.
	
But	CC
most	RBS
investors	NNS
seemed	VBD
to	DT
be	DT
``	``
in	IN
an	DT
information	NN
mode	DT
rather	RB
than	IN
in	IN
a	DT
transaction	NN
mode	DT
,	,
''	''
said	VBN
Steven	NNP
Norwitz	DT
,	,
a	DT
vice	NN
president	NN
.	.
	
And	CC
Vanguard	DT
,	,
among	IN
other	JJ
groups	NNS
,	,
said	VBN
it	DT
was	VBD
adding	VBG
more	RBR
phone	NN
representatives	NNS
today	NN
to	DT
help	NN
investors	NNS
get	VBP
through	IN
.	.
	
In	IN
an	DT
unusual	JJ
move	NN
,	,
several	JJ
funds	NNS
moved	VBD
to	DT
calm	DT
investors	NNS
with	IN
recordings	DT
on	IN
their	DT
toll-free	DT
phone	NN
lines	NNS
.	.
	
``	``
We	DT
view	NN
{	{
Friday	NNP
's	VBZ
}	}
market	NN
decline	NN
as	IN
offering	VBG
us	DT
a	DT
buying	NN
opportunity	NN
as	IN
long-term	JJ
investors	NNS
,	,
''	''
a	DT
recording	NN
at	IN
Gabelli	DT
&	&
Co.	DT
funds	NNS
said	VBN
over	IN
the	DT
weekend	NN
.	.
	
The	NNP
Janus	NNP
Group	NNP
had	VBN
a	DT
similar	JJ
recording	NN
for	IN
investors	NNS
.	.
	
Several	JJ
fund	NN
managers	NNS
expect	VBP
a	DT
rough	DT
market	NN
this	DT
morning	NN
before	IN
prices	NNS
stabilize	VBP
.	.
	
Some	DT
early	JJ
selling	NN
is	VBZ
likely	JJ
to	DT
stem	DT
from	IN
investors	NNS
and	CC
portfolio	NN
managers	NNS
who	WP
want	VBP
to	DT
lock	NN
in	IN
this	DT
year	NN
's	VBZ
fat	JJ
profits	NNS
.	.
	
Stock	NNP
funds	NNS
have	VBP
averaged	DT
a	DT
staggering	JJ
gain	NN
of	IN
25	CD
%	%
through	IN
September	NNP
,	,
according	VBG
to	DT
Lipper	DT
Analytical	DT
Services	NNPS
Inc	NNP
.	.
	
Elaine	DT
Garzarelli	DT
,	,
who	WP
runs	VBZ
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	DT
's	PRP
$	$
335	DT
million	CD
Sector	DT
Analysis	DT
Portfolio	DT
,	,
predicts	DT
the	DT
market	NN
will	MD
open	JJ
down	IN
at	IN
least	JJS
50	CD
points	NNS
on	IN
technical	JJ
factors	DT
and	CC
``	``
some	DT
panic	NN
selling	NN
.	.
''	''
	
But	CC
she	DT
expects	VBZ
prices	NNS
to	DT
rebound	NN
soon	RB
and	CC
is	VBZ
telling	DT
investors	NNS
she	DT
expects	VBZ
the	DT
stock	NN
market	NN
wo	MD
n't	RB
decline	NN
more	RBR
than	IN
10	CD
%	%
to	DT
15	CD
%	%
from	IN
recent	JJ
highs	DT
.	.
	
``	``
This	DT
is	VBZ
not	RB
a	DT
major	JJ
crash	NN
,	,
''	''
she	DT
said	VBN
.	.
	
Nevertheless	RB
,	,
Ms.	DT
Garzarelli	DT
said	VBN
she	DT
was	VBD
swamped	DT
with	IN
phone	NN
calls	VBZ
over	IN
the	DT
weekend	NN
from	IN
nervous	JJ
shareholders	NNS
.	.
	
``	``
Half	DT
of	IN
them	DT
are	VBP
really	RB
scared	VBN
and	CC
want	VBP
to	DT
sell	NN
,	,
''	''
she	DT
said	VBN
,	,
``	``
but	CC
I	DT
'm	VBP
trying	VBG
to	DT
talk	NN
them	DT
out	IN
of	IN
it	DT
.	.
''	''
	
She	DT
added	VBN
,	,
``	``
If	IN
they	DT
all	RB
were	VBD
bullish	DT
,	,
I	DT
'd	MD
really	RB
be	DT
upset	DT
.	.
''	''
	
The	NNP
backdrop	DT
to	DT
Friday	NNP
's	VBZ
slide	NN
was	VBD
markedly	DT
different	JJ
from	IN
that	WDT
of	IN
the	DT
October	NNP
1987	CD
crash	NN
,	,
fund	NN
managers	NNS
argue	VBP
.	.
	
Two	CD
years	NNS
ago	IN
,	,
unlike	IN
today	NN
,	,
the	DT
dollar	NN
was	VBD
weak	JJ
,	,
interest	NN
rates	NNS
were	VBD
rising	VBG
and	CC
the	DT
market	NN
was	VBD
very	RB
overvalued	VBN
,	,
they	DT
say	VBP
.	.
	
``	``
From	DT
the	DT
investors	NNS
'	'
standpoint	DT
,	,
institutions	NNS
and	CC
individuals	NNS
learned	DT
a	DT
painful	JJ
lesson	NN
...	...
by	IN
selling	NN
at	IN
the	DT
lows	DT
''	''
on	IN
Black	NNP
Monday	NNP
,	,
said	VBN
Stephen	NNP
Boesel	DT
,	,
manager	NN
of	IN
the	DT
$	$
580	DT
million	CD
T.	DT
Rowe	DT
Price	DT
Growth	DT
and	CC
Income	DT
Fund	NNP
.	.
	
This	DT
time	NN
,	,
``	``
I	DT
do	VBP
n't	RB
think	VBP
we	DT
'll	MD
get	VBP
a	DT
panic	NN
reaction	NN
.	.
	
Newport	NNP
Corp.	DT
said	VBD
it	DT
expects	VBZ
to	DT
report	NN
fiscal-first-quarter	DT
earnings	NNS
of	IN
between	IN
15	CD
cents	NNS
and	CC
19	CD
cents	NNS
a	DT
share	NN
,	,
somewhat	RB
below	IN
analysts	NNS
'	'
estimates	NNS
of	IN
19	CD
cents	NNS
to	DT
23	CD
cents	NNS
.	.
	
The	NNP
maker	NN
of	IN
scientific	DT
instruments	NNS
and	CC
laser	DT
parts	NNS
said	VBN
orders	NNS
fell	VBD
below	IN
expectations	NNS
in	IN
recent	JJ
months	NNS
.	.
	
A	DT
spokesman	NN
added	VBN
that	WDT
sales	NNS
in	IN
the	DT
current	NN
quarter	NN
will	MD
about	IN
equal	JJ
the	DT
yearearlier	DT
quarter	NN
's	VBZ
figure	NN
,	,
when	DT
Newport	NNP
reported	VBN
net	JJ
income	NN
of	IN
$	$
1.7	CD
million	CD
,	,
or	CC
21	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
$	$
14.1	DT
million	CD
in	IN
sales	NNS
.	.
	
Ripples	DT
from	IN
the	DT
strike	NN
by	IN
55,000	CD
Machinists	DT
union	NN
members	NNS
against	IN
Boeing	NNP
Co.	DT
reached	VBN
air	NN
carriers	DT
Friday	NNP
as	IN
America	NNP
West	NNP
Airlines	NNP
announced	VBN
it	DT
will	MD
postpone	DT
its	DT
new	JJ
service	NN
out	IN
of	IN
Houston	NNP
because	IN
of	IN
delays	NNS
in	IN
receiving	VBG
aircraft	NN
from	IN
the	DT
Seattle	NNP
jet	NN
maker	NN
.	.
	
Peter	NNP
Otradovec	DT
,	,
vice	NN
president	NN
for	IN
planning	NN
at	IN
the	DT
Phoenix	DT
,	,
Ariz.	DT
,	,
carrier	NN
,	,
said	VBN
in	IN
an	DT
interview	NN
that	WDT
the	DT
work	NN
stoppage	DT
at	IN
Boeing	NNP
,	,
now	RB
entering	DT
its	DT
13th	JJ
day	NN
,	,
``	``
has	VBZ
caused	VBN
some	DT
turmoil	NN
in	IN
our	DT
scheduling	DT
''	''
and	CC
that	WDT
more	RBR
than	IN
500	CD
passengers	DT
who	WP
were	VBD
booked	DT
to	DT
fly	VBP
out	IN
of	IN
Houston	NNP
on	IN
America	NNP
West	NNP
would	MD
now	RB
be	DT
put	VBN
on	IN
other	JJ
airlines	NNS
.	.
	
Mr.	DT
Otradovec	DT
said	VBN
Boeing	NNP
told	VBN
America	NNP
West	NNP
that	WDT
the	DT
757	DT
it	DT
was	VBD
supposed	DT
to	DT
get	VBP
this	DT
Thursday	NNP
would	MD
n't	RB
be	DT
delivered	DT
until	IN
Nov.	DT
7	CD
--	--
the	DT
day	NN
after	IN
the	DT
airline	NN
had	VBN
been	VBN
planning	NN
to	DT
initiate	DT
service	NN
at	IN
Houston	NNP
with	IN
four	CD
daily	JJ
flights	DT
,	,
including	VBG
three	CD
nonstops	DT
to	DT
Phoenix	DT
and	CC
one	CD
nonstop	DT
to	DT
Las	DT
Vegas	DT
.	.
	
Now	RB
,	,
those	DT
routes	DT
are	VBP
n't	RB
expected	VBN
to	DT
begin	VBP
until	IN
Jan	DT
.	.
	
Boeing	NNP
is	VBZ
also	RB
supposed	DT
to	DT
send	DT
to	DT
America	NNP
West	NNP
another	DT
757	DT
twin-engine	DT
aircraft	NN
as	IN
well	RB
as	IN
a	DT
737	DT
by	IN
year	NN
's	VBZ
end	NN
.	.
	
Those	DT
,	,
too	RB
,	,
are	VBP
almost	RB
certain	JJ
to	DT
arrive	DT
late	JJ
.	.
	
At	IN
this	DT
point	NN
,	,
no	RB
other	JJ
America	NNP
West	NNP
flights	DT
--	--
including	VBG
its	DT
new	JJ
service	NN
at	IN
San	NNP
Antonio	NNP
,	,
Texas	NNP
;	;
Newark	DT
,	,
N.J.	DT
;	;
and	CC
Palmdale	DT
,	,
Calif.	DT
--	--
have	VBP
been	VBN
affected	VBN
by	IN
the	DT
delays	NNS
in	IN
Boeing	NNP
deliveries	NNS
.	.
	
Nevertheless	RB
,	,
the	DT
company	NN
's	VBZ
reaction	NN
underscores	VBZ
the	DT
domino	DT
effect	NN
that	WDT
a	DT
huge	JJ
manufacturer	NN
such	JJ
as	IN
Boeing	NNP
can	MD
have	VBP
on	IN
other	JJ
parts	NNS
of	IN
the	DT
economy	NN
.	.
	
It	PRP
also	RB
is	VBZ
sure	JJ
to	DT
help	NN
the	DT
machinists	DT
put	VBN
added	VBN
pressure	NN
on	IN
the	DT
company	NN
.	.
	
``	``
I	DT
just	RB
do	VBP
n't	RB
feel	VBP
that	WDT
the	DT
company	NN
can	MD
really	RB
stand	DT
or	CC
would	MD
want	VBP
a	DT
prolonged	DT
walkout	DT
,	,
''	''
Tom	NNP
Baker	DT
,	,
president	NN
of	IN
Machinists	DT
'	'
District	NNP
751	DT
,	,
said	VBN
in	IN
an	DT
interview	NN
yesterday	NN
.	.
	
``	``
I	DT
do	VBP
n't	RB
think	VBP
their	DT
customers	NNS
would	MD
like	JJ
it	DT
very	RB
much	JJ
.	.
''	''
	
America	NNP
West	NNP
,	,
though	RB
,	,
is	VBZ
a	DT
smaller	JJR
airline	NN
and	CC
therefore	RB
more	RBR
affected	VBN
by	IN
the	DT
delayed	VBD
delivery	NN
of	IN
a	DT
single	JJ
plane	DT
than	IN
many	JJ
of	IN
its	DT
competitors	DT
would	MD
be	DT
.	.
	
``	``
I	DT
figure	NN
that	WDT
American	JJ
and	CC
United	NNP
probably	RB
have	VBP
such	JJ
a	DT
hard	JJ
time	NN
counting	VBG
all	RB
the	DT
planes	DT
in	IN
their	DT
fleets	DT
,	,
they	DT
might	MD
not	RB
miss	VBP
one	CD
at	IN
all	RB
,	,
''	''
Mr.	DT
Otradovec	DT
said	VBN
.	.
	
Indeed	RB
,	,
a	DT
random	DT
check	DT
Friday	NNP
did	VBD
n't	RB
seem	VBP
to	DT
indicate	DT
that	WDT
the	DT
strike	NN
was	VBD
having	VBG
much	JJ
of	IN
an	DT
effect	NN
on	IN
other	JJ
airline	NN
operations	NNS
.	.
	
Southwest	DT
Airlines	NNP
has	VBZ
a	DT
Boeing	NNP
737-300	DT
set	VBN
for	IN
delivery	NN
at	IN
the	DT
end	NN
of	IN
this	DT
month	NN
and	CC
expects	VBZ
to	DT
have	VBP
the	DT
plane	DT
on	IN
time	NN
.	.
	
``	``
It	PRP
's	VBZ
so	IN
close	NN
to	DT
completion	DT
,	,
Boeing	NNP
's	VBZ
told	VBN
us	DT
there	RB
wo	MD
n't	RB
be	DT
a	DT
problem	NN
,	,
''	''
said	VBN
a	DT
Southwest	DT
spokesman	NN
.	.
	
A	DT
spokesman	NN
for	IN
AMR	NNP
Corp.	DT
said	VBD
Boeing	NNP
has	VBZ
assured	DT
American	JJ
Airlines	NNP
it	DT
will	MD
deliver	DT
a	DT
757	DT
on	IN
time	NN
later	RB
this	DT
month	NN
.	.
	
American	JJ
is	VBZ
preparing	VBG
to	DT
take	VBP
delivery	NN
of	IN
another	DT
757	DT
in	IN
early	JJ
December	NNP
and	CC
20	CD
more	RBR
next	JJ
year	NN
and	CC
is	VBZ
n't	RB
anticipating	VBG
any	DT
changes	NNS
in	IN
that	WDT
timetable	DT
.	.
	
In	IN
Seattle	NNP
,	,
a	DT
Boeing	NNP
spokesman	NN
explained	DT
that	WDT
the	DT
company	NN
has	VBZ
been	VBN
in	IN
constant	DT
communication	DT
with	IN
all	RB
of	IN
its	DT
customers	NNS
and	CC
that	WDT
it	DT
was	VBD
impossible	JJ
to	DT
predict	VBP
what	WP
further	JJ
disruptions	DT
might	MD
be	DT
triggered	VBN
by	IN
the	DT
strike	NN
.	.
	
Meanwhile	RB
,	,
supervisors	DT
and	CC
non-striking	DT
employees	NNS
have	VBP
been	VBN
trying	VBG
to	DT
finish	DT
some	DT
40	CD
aircraft	NN
--	--
mostly	RB
747	DT
and	CC
767	DT
jumbo	DT
jets	DT
at	IN
the	DT
company	NN
's	VBZ
Everett	DT
,	,
Wash.	DT
,	,
plant	NN
--	--
that	WDT
were	VBD
all	RB
but	CC
completed	VBN
before	IN
the	DT
walkout	DT
.	.
	
As	IN
of	IN
Friday	NNP
,	,
four	CD
had	VBN
been	VBN
delivered	DT
and	CC
a	DT
fifth	JJ
plane	DT
,	,
a	DT
747-400	DT
,	,
was	VBD
supposed	DT
to	DT
be	DT
flown	DT
out	IN
over	IN
the	DT
weekend	NN
to	DT
Air	NNP
China	NNP
.	.
	
No	DT
date	DT
has	VBZ
yet	RB
been	VBN
set	VBN
to	DT
get	VBP
back	VB
to	DT
the	DT
bargaining	DT
table	DT
.	.
	
``	``
We	DT
want	VBP
to	DT
make	VBP
sure	JJ
they	DT
know	VBP
what	WP
they	DT
want	VBP
before	IN
they	DT
come	VBN
back	VB
,	,
''	''
said	VBN
Doug	DT
Hammond	NNP
,	,
the	DT
federal	JJ
mediator	DT
who	WP
has	VBZ
been	VBN
in	IN
contact	NN
with	IN
both	DT
sides	NNS
since	IN
the	DT
strike	NN
began	VBD
.	.
	
The	NNP
investment	NN
community	NN
,	,
for	IN
one	CD
,	,
has	VBZ
been	VBN
anticipating	VBG
a	DT
speedy	DT
resolution	DT
.	.
	
Though	IN
Boeing	NNP
's	VBZ
stock	NN
price	NN
was	VBD
battered	VBN
along	IN
with	IN
the	DT
rest	NN
of	IN
the	DT
market	NN
Friday	NNP
,	,
it	DT
actually	RB
has	VBZ
risen	VBN
over	IN
the	DT
last	JJ
two	CD
weeks	NNS
on	IN
the	DT
strength	NN
of	IN
new	JJ
orders	NNS
.	.
	
``	``
The	NNP
market	NN
has	VBZ
taken	VBN
two	CD
views	NNS
:	:
that	WDT
the	DT
labor	NN
situation	DT
will	MD
get	VBP
settled	VBD
in	IN
the	DT
short	JJ
term	NN
and	CC
that	WDT
things	NNS
look	VBP
very	RB
rosy	DT
for	IN
Boeing	NNP
in	IN
the	DT
long	JJ
term	NN
,	,
''	''
said	VBN
Howard	NNP
Rubel	DT
,	,
an	DT
analyst	NN
at	IN
Cyrus	DT
J.	DT
Lawrence	DT
Inc	NNP
.	.
	
Boeing	NNP
's	VBZ
shares	NNS
fell	VBD
$	$
4	CD
Friday	NNP
to	DT
close	NN
at	IN
$	$
57.375	DT
in	IN
composite	JJ
trading	NN
on	IN
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
.	.
	
But	CC
Mr.	DT
Baker	DT
said	VBN
he	DT
thinks	VBZ
the	DT
earliest	DT
a	DT
pact	NN
could	MD
be	DT
struck	VBN
would	MD
be	DT
the	DT
end	NN
of	IN
this	DT
month	NN
,	,
hinting	DT
that	WDT
the	DT
company	NN
and	CC
union	NN
may	MD
resume	DT
negotiations	NNS
as	IN
early	JJ
as	IN
this	DT
week	NN
.	.
	
Still	RB
,	,
he	DT
said	VBN
,	,
it	DT
's	VBZ
possible	JJ
that	WDT
the	DT
strike	NN
could	MD
last	JJ
considerably	DT
longer	JJR
.	.
	
``	``
I	DT
would	MD
n't	RB
expect	VBP
an	DT
immediate	JJ
resolution	DT
to	DT
anything	NN
.	.
''	''
	
Last	JJ
week	NN
,	,
Boeing	NNP
Chairman	NNP
Frank	NNP
Shrontz	DT
sent	DT
striking	JJ
workers	NNS
a	DT
letter	NN
,	,
saying	VBG
that	WDT
``	``
to	DT
my	DT
knowledge	NN
,	,
Boeing	NNP
's	VBZ
offer	NN
represents	VBZ
the	DT
best	JJS
overall	JJ
three-year	JJ
contract	NN
of	IN
any	DT
major	JJ
U.S.	DT
industrial	JJ
firm	NN
in	IN
recent	JJ
history	DT
.	.
''	''
	
But	CC
Mr.	DT
Baker	DT
called	VBN
the	DT
letter	NN
--	--
and	CC
the	DT
company	NN
's	VBZ
offer	NN
of	IN
a	DT
10	CD
%	%
wage	NN
increase	NN
over	IN
the	DT
life	NN
of	IN
the	DT
pact	NN
,	,
plus	CC
bonuses	DT
--	--
``	``
very	RB
weak	JJ
.	.
''	''
	
He	DT
added	VBN
that	WDT
the	DT
company	NN
miscalculated	DT
the	DT
union	NN
's	VBZ
resolve	DT
and	CC
the	DT
workers	NNS
'	'
disgust	DT
with	IN
being	VBG
forced	VBD
to	DT
work	NN
many	JJ
hours	NNS
overtime	DT
.	.
	
In	IN
separate	JJ
developments	NNS
:	:
--	--
Talks	DT
have	VBP
broken	VBN
off	IN
between	IN
Machinists	DT
representatives	NNS
at	IN
Lockheed	NNP
Corp.	DT
and	CC
the	DT
Calabasas	DT
,	,
Calif.	DT
,	,
aerospace	DT
company	NN
.	.
	
The	NNP
union	NN
is	VBZ
continuing	VBG
to	DT
work	NN
through	IN
its	DT
expired	VBD
contract	NN
,	,
however	RB
.	.
	
It	PRP
had	VBN
planned	VBN
a	DT
strike	NN
vote	NN
for	IN
next	JJ
Sunday	NNP
,	,
but	CC
that	WDT
has	VBZ
been	VBN
pushed	VBN
back	VB
indefinitely	DT
.	.
	
--	--
United	NNP
Auto	NN
Workers	DT
Local	DT
1069	DT
,	,
which	DT
represents	VBZ
3,000	DT
workers	NNS
at	IN
Boeing	NNP
's	VBZ
helicopter	DT
unit	NN
in	IN
Delaware	DT
County	DT
,	,
Pa.	DT
,	,
said	VBN
it	DT
agreed	VBN
to	DT
extend	DT
its	DT
contract	NN
on	IN
a	DT
day-by-day	DT
basis	NN
,	,
with	IN
a	DT
10-day	DT
notification	DT
to	DT
cancel	DT
,	,
while	IN
it	DT
continues	VBZ
bargaining	DT
.	.
	
The	NNP
accord	NN
expired	VBD
yesterday	NN
.	.
	
--	--
And	CC
Boeing	NNP
on	IN
Friday	NNP
said	VBN
it	DT
received	VBN
an	DT
order	NN
from	IN
Martinair	DT
Holland	DT
for	IN
four	CD
model	NN
767-300	DT
wide-body	DT
jetliners	DT
valued	VBN
at	IN
a	DT
total	JJ
of	IN
about	IN
$	$
326	DT
million	CD
.	.
	
The	NNP
planes	DT
,	,
long	JJ
range	NN
versions	DT
of	IN
the	DT
medium-haul	DT
twin-jet	DT
,	,
will	MD
be	DT
delivered	DT
with	IN
Pratt	DT
&	&
Whitney	DT
PW4060	DT
engines	NNS
.	.
	
Pratt	DT
&	&
Whitney	DT
is	VBZ
a	DT
unit	NN
of	IN
United	NNP
Technologies	DT
Inc	NNP
.	.
	
Martinair	DT
Holland	DT
is	VBZ
based	VBN
in	IN
Amsterdam	DT
.	.
	
A	DT
Boeing	NNP
spokeswoman	DT
said	VBN
a	DT
delivery	NN
date	DT
for	IN
the	DT
planes	DT
is	VBZ
still	RB
being	VBG
worked	VBD
out	IN
``	``
for	IN
a	DT
variety	NN
of	IN
reasons	NNS
,	,
but	CC
not	RB
because	IN
of	IN
the	DT
strike	NN
.	.
''	''
	
Bridget	DT
O'Brian	DT
contributed	VBN
to	DT
this	DT
article	NN
.	.
	
Atco	DT
Ltd.	DT
said	VBD
its	DT
utilities	NNS
arm	NN
is	VBZ
considering	VBG
building	NN
new	JJ
electric	DT
power	NN
plants	NNS
,	,
some	DT
valued	VBN
at	IN
more	RBR
than	IN
one	CD
billion	CD
Canadian	JJ
dollars	NNS
(	(
US$	DT
851	DT
million	CD
)	)
,	,
in	IN
Great	NNP
Britain	NNP
and	CC
elsewhere	DT
.	.
	
C.S.	DT
Richardson	NNP
,	,
Atco	DT
's	VBZ
senior	JJ
vice	NN
president	NN
,	,
finance	NN
,	,
said	VBN
its	DT
50.1%-owned	DT
Canadian	JJ
Utilities	NNPS
Ltd.	DT
unit	NN
is	VBZ
reviewing	DT
cogeneration	DT
projects	NNS
in	IN
eastern	JJ
Canada	NNP
,	,
and	CC
conventional	DT
electric	DT
power	NN
generating	NN
plants	NNS
elsewhere	DT
,	,
including	VBG
Britain	NNP
,	,
where	DT
the	DT
British	JJ
government	NN
plans	NNS
to	DT
allow	DT
limited	VBN
competition	NN
in	IN
electrical	DT
generation	NN
from	IN
private-sector	DT
suppliers	DT
as	IN
part	NN
of	IN
its	DT
privatization	DT
program	NN
.	.
	
``	``
The	NNP
projects	NNS
are	VBP
big	JJ
.	.
	
They	DT
can	MD
be	DT
C$	DT
1	CD
billion	CD
plus	CC
,	,
''	''
Mr.	DT
Richardson	NNP
said	VBN
.	.
	
``	``
But	CC
we	DT
would	MD
n't	RB
go	VBP
into	IN
them	DT
alone	RB
,	,
''	''
and	CC
Canadian	JJ
Utilities	NNPS
'	'
equity	NN
stake	NN
would	MD
be	DT
small	JJ
,	,
he	DT
said	VBN
.	.
	
``	``
Ideally	DT
,	,
we	DT
'd	MD
like	JJ
to	DT
be	DT
the	DT
operator	NN
{	{
of	IN
the	DT
project	NN
}	}
and	CC
a	DT
modest	JJ
equity	NN
investor	NN
.	.
	
Our	DT
long	JJ
suit	NN
is	VBZ
our	DT
proven	DT
ability	NN
to	DT
operate	DT
''	''
power	NN
plants	NNS
,	,
he	DT
said	VBN
.	.
	
Mr.	DT
Richardson	NNP
would	MD
n't	RB
offer	NN
specifics	DT
regarding	VBG
Atco	DT
's	VBZ
proposed	VBN
British	JJ
project	NN
,	,
but	CC
he	DT
said	VBN
it	DT
would	MD
compete	DT
for	IN
customers	NNS
with	IN
two	CD
huge	JJ
British	JJ
power	NN
generating	NN
companies	NNS
that	WDT
would	MD
be	DT
formed	VBN
under	IN
the	DT
country	NN
's	VBZ
plan	NN
to	DT
privatize	DT
its	DT
massive	JJ
water	DT
and	CC
electric	DT
utilities	NNS
.	.
	
Britain	NNP
's	VBZ
government	NN
plans	NNS
to	DT
raise	DT
about	IN
#	#
20	CD
billion	CD
(	(
$	$
31.05	DT
billion	CD
)	)
from	IN
the	DT
sale	NN
of	IN
most	RBS
of	IN
its	DT
giant	DT
water	DT
and	CC
electric	DT
utilities	NNS
,	,
beginning	NN
next	JJ
month	NN
.	.
	
The	NNP
planned	VBN
electric	DT
utility	NN
sale	NN
,	,
scheduled	VBN
for	IN
next	JJ
year	NN
,	,
is	VBZ
alone	RB
expected	VBN
to	DT
raise	DT
#	#
13	CD
billion	CD
,	,
making	VBG
it	DT
the	DT
world	NN
's	VBZ
largest	JJS
public	JJ
offering	VBG
.	.
	
Under	IN
terms	NNS
of	IN
the	DT
plan	NN
,	,
independent	JJ
generators	DT
would	MD
be	DT
able	JJ
to	DT
compete	DT
for	IN
15	CD
%	%
of	IN
customers	NNS
until	IN
1994	CD
,	,
and	CC
for	IN
another	DT
10	CD
%	%
between	IN
1994	CD
and	CC
1998	DT
.	.
	
Canadian	JJ
Utilities	NNPS
had	VBN
1988	CD
revenue	NN
of	IN
C$	DT
1.16	DT
billion	CD
,	,
mainly	RB
from	IN
its	DT
natural	JJ
gas	NN
and	CC
electric	DT
utility	NN
businesses	NNS
in	IN
Alberta	NNP
,	,
where	DT
the	DT
company	NN
serves	DT
about	IN
800,000	DT
customers	NNS
.	.
	
``	``
There	DT
seems	VBZ
to	DT
be	DT
a	DT
move	NN
around	IN
the	DT
world	NN
to	DT
deregulate	DT
the	DT
generation	NN
of	IN
electricity	NN
,	,
''	''
Mr.	DT
Richardson	NNP
said	VBN
,	,
and	CC
Canadian	JJ
Utilities	NNPS
hopes	VBZ
to	DT
capitalize	DT
on	IN
it	DT
.	.
	
``	``
This	DT
is	VBZ
a	DT
real	JJ
thrust	DT
on	IN
our	DT
utility	NN
side	NN
,	,
''	''
he	DT
said	VBN
,	,
adding	VBG
that	WDT
Canadian	JJ
Utilities	NNPS
is	VBZ
also	RB
mulling	DT
projects	NNS
in	IN
underdeveloped	DT
countries	NNS
,	,
though	RB
he	DT
would	MD
be	DT
specific	JJ
.	.
	
Canadian	JJ
Utilities	NNPS
is	VBZ
n't	RB
alone	RB
in	IN
exploring	DT
power	NN
generation	NN
opportunities	NNS
in	IN
Britain	NNP
,	,
in	IN
anticipation	NN
of	IN
the	DT
privatization	DT
program	NN
.	.
	
``	``
We	DT
're	VBP
certainly	RB
looking	VBG
at	IN
some	DT
power	NN
generating	NN
projects	NNS
in	IN
England	DT
,	,
''	''
said	VBN
Bruce	DT
Stram	DT
,	,
vice	NN
president	NN
,	,
corporate	JJ
strategy	NN
and	CC
corporate	JJ
planning	NN
,	,
with	IN
Enron	DT
Corp.	DT
,	,
Houston	NNP
,	,
a	DT
big	JJ
natural	JJ
gas	NN
producer	NN
and	CC
pipeline	DT
operator	NN
.	.
	
Mr.	DT
Stram	DT
said	VBN
Enron	DT
is	VBZ
considering	VBG
building	NN
gas-fired	DT
power	NN
plants	NNS
in	IN
the	DT
U.K.	DT
capable	DT
of	IN
producing	VBG
about	IN
500	CD
megawatts	DT
of	IN
power	NN
at	IN
a	DT
cost	NN
of	IN
about	IN
$	$
300	CD
million	CD
to	DT
$	$
400	CD
million	CD
.	.
	
PSE	DT
Inc.	DT
said	VBD
it	DT
expects	VBZ
to	DT
report	NN
third	JJ
earnings	NNS
of	IN
$	$
1.3	CD
million	CD
to	DT
$	$
1.7	CD
million	CD
,	,
or	CC
14	CD
cents	NNS
to	DT
18	CD
cents	NNS
a	DT
share	NN
.	.
	
In	IN
the	DT
year-ago	JJ
quarter	NN
,	,
the	DT
designer	NN
and	CC
operator	NN
of	IN
cogeneration	DT
and	CC
waste	DT
heat	DT
recovery	NN
plants	NNS
had	VBN
net	JJ
income	NN
of	IN
$	$
326,000	DT
,	,
or	CC
four	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
revenue	NN
of	IN
about	IN
$	$
41.4	CD
million	CD
.	.
	
The	NNP
company	NN
said	VBN
the	DT
improvement	NN
is	VBZ
related	VBN
to	DT
additional	JJ
cogeneration	DT
facilities	NNS
that	WDT
have	VBP
been	VBN
put	VBN
into	IN
operation	NN
.	.
	
CONCORDE	DT
trans-Atlantic	DT
flights	DT
are	VBP
$	$
2,400	DT
to	DT
Paris	NNP
and	CC
$	$
3,200	DT
to	DT
London	NNP
.	.
	
In	IN
a	DT
Centennial	DT
Journal	NNP
article	NN
Oct.	DT
5	LS
,	,
the	DT
fares	VBZ
were	VBD
reversed	DT
.	.
	
Diamond	DT
Shamrock	DT
Offshore	DT
Partners	NNPS
said	VBN
it	DT
had	VBN
discovered	VBN
gas	NN
offshore	DT
Louisiana	DT
.	.
	
The	NNP
well	RB
flowed	DT
at	IN
a	DT
rate	NN
of	IN
2.016	DT
million	CD
cubic	DT
feet	DT
of	IN
gas	NN
a	DT
day	NN
through	IN
a	DT
16	CD
64-inch	DT
opening	NN
at	IN
depths	DT
between	IN
5,782	DT
and	CC
5,824	DT
feet	DT
.	.
	
Diamond	DT
Shamrock	DT
is	VBZ
the	DT
operator	NN
,	,
with	IN
a	DT
100	CD
%	%
interest	NN
in	IN
the	DT
well	RB
.	.
	
Diamond	DT
Shamrock	DT
Offshore	DT
's	VBZ
stock	NN
rose	VBD
12.5	DT
cents	NNS
Friday	NNP
to	DT
close	NN
at	IN
$	$
8.25	DT
in	IN
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
.	.
	
Kaufman	DT
&	&
Broad	DT
Home	NNP
Corp.	DT
said	VBD
it	DT
formed	VBN
a	DT
$	$
53.4	DT
million	CD
limited	VBN
partnership	DT
subsidiary	NN
to	DT
buy	DT
land	NN
in	IN
California	NNP
suitable	DT
for	IN
residential	JJ
development	NN
.	.
	
The	NNP
partnership	DT
,	,
Kaufman	DT
&	&
Broad	DT
Land	DT
Development	DT
Venture	DT
Limited	NNP
Partnership	NNP
,	,
is	VBZ
a	DT
50-50	DT
joint	JJ
venture	NN
with	IN
a	DT
trust	NN
created	VBN
by	IN
institutional	DT
clients	NNS
of	IN
Heitman	DT
Advisory	DT
Corp.	DT
,	,
a	DT
unit	NN
of	IN
Heitman	DT
Financial	NNP
Corp.	DT
,	,
a	DT
real	JJ
estate	NN
advisory	NN
,	,
management	NN
and	CC
development	NN
company	NN
with	IN
offices	NNS
in	IN
Chicago	NNP
and	CC
Beverly	NNP
Hills	NNPS
,	,
Calif	NNP
.	.
	
Kaufman	DT
&	&
Broad	DT
,	,
a	DT
home	RB
building	NN
company	NN
,	,
declined	VBD
to	DT
identify	DT
the	DT
institutional	DT
investors	NNS
.	.
	
The	NNP
land	NN
to	DT
be	DT
purchased	VBD
by	IN
the	DT
joint	JJ
venture	NN
has	VBZ
n't	RB
yet	RB
received	VBN
zoning	DT
and	CC
other	JJ
approvals	DT
required	VBN
for	IN
development	NN
,	,
and	CC
part	NN
of	IN
Kaufman	DT
&	&
Broad	DT
's	VBZ
job	NN
will	MD
be	DT
to	DT
obtain	DT
such	JJ
approvals	DT
.	.
	
The	NNP
partnership	DT
runs	VBZ
the	DT
risk	NN
that	WDT
it	DT
may	MD
not	RB
get	VBP
the	DT
approvals	DT
for	IN
development	NN
,	,
but	CC
in	IN
return	NN
,	,
it	DT
can	MD
buy	DT
land	NN
at	IN
wholesale	JJ
rather	RB
than	IN
retail	JJ
prices	NNS
,	,
which	DT
can	MD
result	NN
in	IN
sizable	JJ
savings	DT
,	,
said	VBN
Bruce	DT
Karatz	DT
,	,
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
Kaufman	DT
&	&
Broad	DT
.	.
	
``	``
There	DT
are	VBP
really	RB
very	RB
few	JJ
companies	NNS
that	WDT
have	VBP
adequate	DT
capital	NN
to	DT
buy	DT
properties	NNS
in	IN
a	DT
raw	DT
state	NN
for	IN
cash	NN
.	.
	
Typically	DT
,	,
developers	DT
option	NN
property	NN
,	,
and	CC
then	RB
once	RB
they	DT
get	VBP
the	DT
administrative	DT
approvals	DT
,	,
they	DT
buy	DT
it	DT
,	,
''	''
said	VBN
Mr.	DT
Karatz	DT
,	,
adding	VBG
that	WDT
he	DT
believes	VBZ
the	DT
joint	JJ
venture	NN
is	VBZ
the	DT
first	JJ
of	IN
its	DT
kind	NN
.	.
	
``	``
We	DT
usually	RB
operate	DT
in	IN
that	WDT
conservative	DT
manner	DT
.	.
''	''
	
By	IN
setting	VBG
up	IN
the	DT
joint	JJ
venture	NN
,	,
Kaufman	DT
&	&
Broad	DT
can	MD
take	VBP
the	DT
more	RBR
aggressive	JJ
approach	DT
of	IN
buying	NN
raw	DT
land	NN
,	,
while	IN
avoiding	VBG
the	DT
negative	JJ
impacts	DT
to	DT
its	DT
own	JJ
balance	NN
sheet	DT
,	,
Mr.	DT
Karatz	DT
said	VBN
.	.
	
The	NNP
company	NN
is	VBZ
putting	DT
up	IN
only	RB
10	CD
%	%
of	IN
the	DT
capital	NN
,	,
although	IN
it	DT
is	VBZ
responsible	JJ
for	IN
providing	VBG
management	NN
,	,
planning	NN
and	CC
processing	NN
services	NNS
to	DT
the	DT
joint	JJ
venture	NN
.	.
	
``	``
This	DT
is	VBZ
one	CD
of	IN
the	DT
best	JJS
ways	NNS
to	DT
assure	DT
a	DT
pipeline	DT
of	IN
land	NN
to	DT
fuel	DT
our	DT
growth	NN
at	IN
a	DT
minimum	JJ
risk	NN
to	DT
our	DT
company	NN
,	,
''	''
Mr.	DT
Karatz	DT
said	VBN
.	.
	
When	DT
the	DT
price	NN
of	IN
plastics	DT
took	VBD
off	IN
in	IN
1987	CD
,	,
Quantum	DT
Chemical	DT
Corp.	DT
went	VBD
along	IN
for	IN
the	DT
ride	DT
.	.
	
The	NNP
timing	DT
of	IN
Quantum	DT
's	VBZ
chief	NN
executive	NN
officer	NN
,	,
John	NNP
Hoyt	DT
Stookey	DT
,	,
appeared	VBD
to	DT
be	DT
nothing	NN
less	RBR
than	IN
inspired	VBN
,	,
because	IN
he	DT
had	VBN
just	RB
increased	VBN
Quantum	DT
's	VBZ
reliance	NN
on	IN
plastics	DT
.	.
	
The	NNP
company	NN
outpaced	DT
much	JJ
of	IN
the	DT
chemical	DT
industry	NN
as	IN
annual	JJ
profit	NN
grew	VBD
fivefold	DT
in	IN
two	CD
years	NNS
.	.
	
Mr.	DT
Stookey	DT
said	VBN
of	IN
the	DT
boom	NN
,	,
``	``
It	PRP
's	VBZ
going	VBG
to	DT
last	JJ
a	DT
whole	JJ
lot	NN
longer	JJR
than	IN
anybody	DT
thinks	VBZ
.	.
''	''
	
But	CC
now	RB
prices	NNS
have	VBP
nose-dived	DT
and	CC
Quantum	DT
's	VBZ
profit	NN
is	VBZ
plummeting	VBG
.	.
	
Some	DT
securities	NNS
analysts	NNS
are	VBP
looking	VBG
for	IN
no	RB
better	JJR
than	IN
break-even	DT
results	NNS
from	IN
the	DT
company	NN
for	IN
the	DT
third	JJ
quarter	NN
,	,
compared	VBN
with	IN
year-earlier	JJ
profit	NN
of	IN
$	$
99.8	DT
million	CD
,	,
or	CC
$	$
3.92	DT
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
724.4	DT
million	CD
.	.
	
The	NNP
stock	NN
,	,
having	VBG
lost	VBN
nearly	RB
a	DT
quarter	NN
of	IN
its	DT
value	NN
since	IN
Sept.	DT
1	LS
,	,
closed	VBN
at	IN
$	$
34.375	DT
share	NN
,	,
down	IN
$	$
1.125	DT
,	,
in	IN
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
Friday	NNP
.	.
	
To	NN
a	DT
degree	DT
,	,
Quantum	DT
represents	VBZ
the	DT
new	JJ
times	NNS
that	WDT
have	VBP
arrived	DT
for	IN
producers	NNS
of	IN
the	DT
so-called	JJ
commodity	DT
plastics	DT
that	WDT
pervade	DT
modern	DT
life	NN
.	.
	
Having	DT
just	RB
passed	VBN
through	IN
one	CD
of	IN
the	DT
most	RBS
profitable	JJ
periods	DT
in	IN
their	DT
history	DT
,	,
these	DT
producers	NNS
now	RB
see	VBP
their	DT
prices	NNS
eroding	DT
.	.
	
Pricing	DT
cycles	NNS
,	,
to	DT
be	DT
sure	JJ
,	,
are	VBP
nothing	NN
new	JJ
for	IN
plastics	DT
producers	NNS
.	.
	
And	CC
the	DT
financial	JJ
decline	NN
of	IN
some	DT
looks	VBZ
steep	JJ
only	RB
in	IN
comparison	DT
with	IN
the	DT
heady	DT
period	NN
that	WDT
is	VBZ
just	RB
behind	IN
them	DT
.	.
	
``	``
We	DT
were	VBD
all	RB
wonderful	DT
heroes	DT
last	JJ
year	NN
,	,
''	''
says	VBZ
an	DT
executive	NN
at	IN
one	CD
of	IN
Quantum	DT
's	VBZ
competitors	DT
.	.
	
``	``
Now	RB
we	DT
're	VBP
at	IN
the	DT
bottom	NN
of	IN
the	DT
heap	DT
.	.
''	''
	
At	IN
Quantum	DT
,	,
which	DT
is	VBZ
based	VBN
in	IN
New	NNP
York	NNP
,	,
the	DT
trouble	NN
is	VBZ
magnified	DT
by	IN
the	DT
company	NN
's	VBZ
heavy	JJ
dependence	NN
on	IN
plastics	DT
.	.
	
Once	RB
known	VBN
as	IN
National	NNP
Distillers	DT
&	&
Chemical	DT
Corp.	DT
,	,
the	DT
company	NN
exited	DT
the	DT
wine	DT
and	CC
spirits	DT
business	NN
and	CC
plowed	DT
more	RBR
of	IN
its	DT
resources	NNS
into	IN
plastics	DT
after	IN
Mr.	DT
Stookey	DT
took	VBD
the	DT
chief	NN
executive	NN
's	VBZ
job	NN
in	IN
1986	CD
.	.
	
Mr.	DT
Stookey	DT
,	,
59	CD
years	NNS
old	JJ
,	,
declined	VBD
to	DT
be	DT
interviewed	VBN
for	IN
this	DT
article	NN
,	,
but	CC
he	DT
has	VBZ
consistently	DT
argued	VBN
that	WDT
over	IN
the	DT
long	JJ
haul	DT
--	--
across	IN
both	DT
the	DT
peaks	NNS
and	CC
the	DT
troughs	DT
of	IN
the	DT
plastics	DT
market	NN
--	--
Quantum	DT
will	MD
prosper	DT
through	IN
its	DT
new	JJ
direction	DT
.	.
	
Quantum	DT
's	VBZ
lot	NN
is	VBZ
mostly	RB
tied	DT
to	DT
polyethylene	DT
resin	DT
,	,
used	VBN
to	DT
make	VBP
garbage	NN
bags	DT
,	,
milk	DT
jugs	DT
,	,
housewares	DT
,	,
toys	NNS
and	CC
meat	DT
packaging	DT
,	,
among	IN
other	JJ
items	DT
.	.
	
In	IN
the	DT
U.S.	DT
polyethylene	DT
market	NN
,	,
Quantum	DT
has	VBZ
claimed	VBD
the	DT
largest	JJS
share	NN
,	,
about	IN
20	CD
%	%
.	.
	
But	CC
its	DT
competitors	DT
--	--
including	VBG
Dow	NNP
Chemical	DT
Co.	DT
,	,
Union	NNP
Carbide	DT
Corp.	DT
and	CC
several	JJ
oil	DT
giants	DT
--	--
have	VBP
much	JJ
broader	JJR
business	NN
interests	NNS
and	CC
so	IN
are	VBP
better	JJR
cushioned	DT
against	IN
price	NN
swings	DT
.	.
	
When	DT
the	DT
price	NN
of	IN
polyethylene	DT
moves	NNS
a	DT
mere	DT
penny	DT
a	DT
pound	DT
,	,
Quantum	DT
's	VBZ
annual	JJ
profit	NN
fluctuates	DT
by	IN
about	IN
85	CD
cents	NNS
a	DT
share	NN
,	,
provided	VBN
no	RB
other	JJ
variables	DT
are	VBP
changing	VBG
.	.
	
In	IN
recent	JJ
months	NNS
the	DT
price	NN
of	IN
polyethylene	DT
,	,
even	RB
more	RBR
than	IN
that	WDT
of	IN
other	JJ
commodity	DT
plastics	DT
,	,
has	VBZ
taken	VBN
a	DT
dive	NN
.	.
	
Benchmark	DT
grades	DT
,	,
which	DT
still	RB
sold	VBN
for	IN
as	IN
much	JJ
as	IN
50	CD
cents	NNS
a	DT
pound	DT
last	JJ
spring	NN
,	,
have	VBP
skidded	VBD
to	DT
between	IN
35	CD
cents	NNS
and	CC
40	CD
cents	NNS
.	.
	
Meanwhile	RB
,	,
the	DT
price	NN
of	IN
ethylene	DT
,	,
the	DT
chemical	DT
building	NN
block	NN
of	IN
polyethylene	DT
,	,
has	VBZ
n't	RB
dropped	VBN
nearly	RB
so	IN
fast	DT
.	.
	
That	IN
discrepancy	DT
hurts	DT
Quantum	DT
badly	RB
,	,
because	IN
its	DT
own	JJ
plants	NNS
cover	NN
only	RB
about	IN
half	DT
of	IN
its	DT
ethylene	DT
needs	VBZ
.	.
	
By	IN
many	JJ
accounts	NNS
,	,
an	DT
early	JJ
hint	DT
of	IN
a	DT
price	NN
rout	NN
in	IN
the	DT
making	VBG
came	VBD
at	IN
the	DT
start	NN
of	IN
this	DT
year	NN
.	.
	
China	NNP
,	,
which	DT
had	VBN
been	VBN
putting	DT
in	IN
huge	JJ
orders	NNS
for	IN
polyethylene	DT
,	,
abruptly	RB
halted	VBD
them	DT
.	.
	
Calculating	DT
that	WDT
excess	JJ
polyethylene	DT
would	MD
soon	RB
be	DT
sloshing	DT
around	IN
the	DT
world	NN
,	,
other	JJ
buyers	NNS
then	RB
bet	NN
that	WDT
prices	NNS
had	VBN
peaked	DT
and	CC
so	IN
began	VBD
to	DT
draw	DT
down	IN
inventories	DT
rather	RB
than	IN
order	NN
new	JJ
product	NN
.	.
	
Kenneth	NNP
Mitchell	DT
,	,
director	NN
of	IN
Dow	NNP
's	VBZ
polyethylene	DT
business	NN
,	,
says	VBZ
producers	NNS
were	VBD
surprised	VBN
to	DT
learn	VBP
how	DT
much	JJ
inventories	DT
had	VBN
swelled	DT
throughout	IN
the	DT
distribution	DT
chain	NN
as	IN
prices	NNS
spiraled	DT
up	IN
.	.
	
``	``
People	NNS
were	VBD
even	RB
hoarding	DT
bags	DT
,	,
''	''
he	DT
says	VBZ
.	.
	
Now	RB
producers	NNS
hope	VB
prices	NNS
have	VBP
hit	VBD
bottom	NN
.	.
	
They	DT
recently	RB
announced	VBN
increases	NNS
of	IN
a	DT
few	JJ
cents	NNS
a	DT
pound	DT
to	DT
take	VBP
effect	NN
in	IN
the	DT
next	JJ
several	JJ
weeks	NNS
.	.
	
No	DT
one	CD
knows	DT
,	,
however	RB
,	,
whether	IN
the	DT
new	JJ
posted	VBN
prices	NNS
will	MD
stick	DT
once	RB
producers	NNS
and	CC
customers	NNS
start	NN
to	DT
haggle	DT
.	.
	
One	CD
doubter	DT
is	VBZ
George	NNP
Krug	DT
,	,
a	DT
chemical-industry	DT
analyst	NN
at	IN
Oppenheimer	DT
&	&
Co.	DT
and	CC
a	DT
bear	NN
on	IN
plastics	DT
stocks	NNS
.	.
	
Noting	VBG
others	NNS
'	'
estimates	NNS
of	IN
when	DT
price	NN
increases	NNS
can	MD
be	DT
sustained	VBN
,	,
he	DT
remarks	NNS
,	,
``	``
Some	DT
say	VBP
October	NNP
.	.
	
Some	DT
say	VBP
November	NNP
.	.
	
I	DT
say	VBP
1992	CD
.	.
''	''
	
He	DT
argues	VBZ
that	WDT
efforts	NNS
to	DT
firm	NN
up	IN
prices	NNS
will	MD
be	DT
undermined	DT
by	IN
producers	NNS
'	'
plans	NNS
to	DT
expand	DT
production	NN
capacity	NN
.	.
	
A	DT
quick	DT
turnaround	NN
is	VBZ
crucial	JJ
to	DT
Quantum	DT
because	IN
its	DT
cash	NN
requirements	NNS
remain	VBP
heavy	JJ
.	.
	
The	NNP
company	NN
is	VBZ
trying	VBG
to	DT
carry	DT
out	IN
a	DT
three-year	JJ
,	,
$	$
1.3	CD
billion	CD
plant-expansion	DT
program	NN
started	VBN
this	DT
year	NN
.	.
	
At	IN
the	DT
same	JJ
time	NN
,	,
its	DT
annual	JJ
payments	NNS
on	IN
long-term	JJ
debt	NN
will	MD
more	RBR
than	IN
double	RB
from	IN
a	DT
year	NN
ago	IN
to	DT
about	IN
$	$
240	DT
million	CD
,	,
largely	RB
because	IN
of	IN
debt	NN
taken	VBN
on	IN
to	DT
pay	NN
a	DT
$	$
50-a-share	DT
special	JJ
dividend	NN
earlier	JJR
this	DT
year	NN
.	.
	
Quantum	DT
described	VBN
the	DT
payout	DT
at	IN
the	DT
time	NN
as	IN
a	DT
way	NN
for	IN
it	DT
to	DT
share	NN
the	DT
bonanza	NN
with	IN
its	DT
holders	NNS
,	,
because	IN
its	DT
stock	NN
price	NN
was	VBD
n't	RB
reflecting	VBG
the	DT
huge	JJ
profit	NN
increases	NNS
.	.
	
Some	DT
analysts	NNS
saw	VBD
the	DT
payment	NN
as	IN
an	DT
effort	NN
also	RB
to	DT
dispel	DT
takeover	NN
speculation	NN
.	.
	
Whether	IN
a	DT
cash	NN
crunch	NN
might	MD
eventually	RB
force	NN
the	DT
company	NN
to	DT
cut	NN
its	DT
quarterly	DT
dividend	NN
,	,
raised	VBN
36	CD
%	%
to	DT
75	CD
cents	NNS
a	DT
share	NN
only	RB
a	DT
year	NN
ago	IN
,	,
has	VBZ
become	VBN
a	DT
topic	DT
of	IN
intense	JJ
speculation	NN
on	IN
Wall	NNP
Street	NNP
since	IN
Mr.	DT
Stookey	DT
deflected	DT
dividend	NN
questions	NNS
in	IN
a	DT
Sept.	DT
29	CD
meeting	NN
with	IN
analysts	NNS
.	.
	
Some	DT
viewed	VBN
his	DT
response	NN
--	--
that	WDT
company	NN
directors	DT
review	NN
the	DT
dividend	NN
regularly	RB
--	--
as	IN
nothing	NN
more	RBR
than	IN
the	DT
standard	NN
line	NN
from	IN
executives	NNS
.	.
	
But	CC
others	NNS
came	VBD
away	RB
thinking	VBG
he	DT
had	VBN
given	VBN
something	NN
less	RBR
than	IN
his	DT
usual	JJ
straight-from-the-shoulder	DT
performance	NN
.	.
	
In	IN
any	DT
case	NN
,	,
on	IN
the	DT
day	NN
of	IN
the	DT
meeting	NN
,	,
Quantum	DT
's	VBZ
shares	NNS
slid	DT
$	$
2.625	DT
to	DT
$	$
36.625	DT
in	IN
Big	NNP
Board	NNP
trading	NN
.	.
	
On	IN
top	NN
of	IN
everything	NN
else	RB
,	,
Quantum	DT
confronts	DT
a	DT
disaster	NN
at	IN
its	DT
plant	NN
in	IN
Morris	DT
,	,
Ill	NNP
.	.
	
After	IN
an	DT
explosion	NN
idled	DT
the	DT
plant	NN
in	IN
June	NNP
,	,
the	DT
company	NN
progressed	VBD
in	IN
September	NNP
to	DT
within	IN
12	CD
hours	NNS
of	IN
completing	DT
the	DT
drawn-out	DT
process	NN
of	IN
restarting	DT
it	DT
.	.
	
Then	RB
a	DT
second	NN
explosion	NN
occurred	VBD
.	.
	
Two	CD
workers	NNS
died	DT
and	CC
six	CD
remain	VBP
in	IN
the	DT
hospital	DT
.	.
	
This	DT
human	DT
toll	DT
adds	VBZ
the	DT
most	RBS
painful	JJ
dimension	DT
yet	RB
to	DT
the	DT
sudden	DT
change	NN
in	IN
Quantum	DT
's	VBZ
fortunes	NNS
.	.
	
Until	DT
this	DT
year	NN
,	,
the	DT
company	NN
had	VBN
been	VBN
steadily	DT
lowering	DT
its	DT
accident	DT
rate	NN
and	CC
picking	DT
up	IN
trade-group	DT
safety	NN
awards	DT
.	.
	
A	DT
prolonged	DT
production	NN
halt	NN
at	IN
the	DT
plant	NN
could	MD
introduce	DT
another	DT
imponderable	DT
into	IN
Quantum	DT
's	VBZ
financial	JJ
future	NN
.	.
	
When	DT
a	DT
plant	NN
has	VBZ
just	RB
been	VBN
running	VBG
flat	JJ
out	IN
to	DT
meet	VBP
demand	NN
,	,
calculating	DT
lost	VBN
profit	NN
and	CC
thus	DT
claims	VBZ
under	IN
business-interruption	DT
insurance	NN
is	VBZ
straightforward	DT
.	.
	
But	CC
the	DT
numbers	NNS
become	VBN
trickier	DT
--	--
and	CC
subject	NN
to	DT
dickering	DT
between	IN
insured	VBN
and	CC
insurer	NN
--	--
when	DT
demand	NN
is	VBZ
shifting	DT
.	.
	
``	``
You	DT
say	VBP
you	DT
could	MD
have	VBP
sold	VBN
X	DT
percent	DT
of	IN
this	DT
product	NN
and	CC
Y	DT
percent	DT
of	IN
that	WDT
,	,
''	''
recalls	VBZ
Theodore	DT
Semegran	DT
,	,
an	DT
analyst	NN
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
who	WP
went	VBD
through	IN
this	DT
exercise	DT
during	IN
his	DT
former	JJ
career	NN
as	IN
a	DT
chemical	DT
engineer	DT
.	.
	
``	``
And	CC
then	RB
you	DT
still	RB
have	VBP
to	DT
negotiate	DT
.	.
''	''
	
Quantum	DT
hopes	VBZ
the	DT
Morris	DT
plant	NN
,	,
where	DT
limited	VBN
production	NN
got	VBN
under	IN
way	NN
last	JJ
week	NN
,	,
will	MD
resume	DT
full	JJ
operation	NN
by	IN
year	NN
's	VBZ
end	NN
.	.
	
The	NNP
plant	NN
usually	RB
accounts	NNS
for	IN
20	CD
%	%
to	DT
25	CD
%	%
of	IN
Quantum	DT
's	VBZ
polyethylene	DT
production	NN
and	CC
50	CD
%	%
of	IN
its	DT
ethylene	DT
production	NN
.	.
	
Not	RB
everything	NN
looks	VBZ
grim	JJ
for	IN
Quantum	DT
.	.
	
The	NNP
plant	NN
expansion	DT
should	MD
strengthen	DT
the	DT
company	NN
's	VBZ
sway	DT
in	IN
the	DT
polyethylene	DT
business	NN
,	,
where	DT
market	NN
share	NN
is	VBZ
often	RB
taken	VBN
through	IN
sheer	DT
capacity	NN
.	.
	
By	IN
lifting	NN
ethylene	DT
production	NN
,	,
the	DT
expansion	DT
will	MD
also	RB
lower	JJR
the	DT
company	NN
's	VBZ
raw	DT
material	DT
costs	NNS
.	.
	
Quantum	DT
is	VBZ
also	RB
tightening	VBG
its	DT
grip	DT
on	IN
its	DT
one	CD
large	JJ
business	NN
outside	JJ
chemicals	DT
,	,
propane	DT
marketing	NN
.	.
	
Through	IN
a	DT
venture	NN
with	IN
its	DT
investment	NN
banker	NN
,	,
First	NNP
Boston	NNP
Corp.	DT
,	,
Quantum	DT
completed	VBN
in	IN
August	NNP
an	DT
acquisition	NN
of	IN
Petrolane	NNP
Inc.	DT
in	IN
a	DT
transaction	NN
valued	VBN
at	IN
$	$
1.18	DT
billion	CD
.	.
	
Petrolane	NNP
is	VBZ
the	DT
second-largest	DT
propane	DT
distributor	DT
in	IN
the	DT
U.S.	DT
.	.
	
The	NNP
largest	JJS
,	,
Suburban	DT
Propane	DT
,	,
was	VBD
already	RB
owned	VBN
by	IN
Quantum	DT
.	.
	
Still	RB
,	,
Quantum	DT
has	VBZ
a	DT
crisis	NN
to	DT
get	VBP
past	NN
right	NN
now	RB
.	.
	
Some	DT
analysts	NNS
speculate	DT
the	DT
weakening	NN
stock	NN
may	MD
yet	RB
attract	DT
a	DT
suitor	NN
.	.
	
The	NNP
name	NN
surfacing	DT
in	IN
rumors	NNS
is	VBZ
British	JJ
Petroleum	DT
Co.	DT
,	,
which	DT
is	VBZ
looking	VBG
to	DT
expand	DT
its	DT
polyethylene	DT
business	NN
in	IN
the	DT
U.S.	DT
.	.
	
Asked	DT
about	IN
a	DT
bid	NN
for	IN
Quantum	DT
,	,
a	DT
BP	DT
spokesman	NN
says	VBZ
,	,
``	``
We	DT
pretty	RB
much	JJ
have	VBP
a	DT
policy	NN
of	IN
not	RB
commenting	DT
on	IN
rumors	NNS
,	,
and	CC
I	DT
think	VBP
that	WDT
falls	DT
in	IN
that	WDT
category	NN
.	.
	
RJR	DT
Nabisco	DT
Inc.	DT
is	VBZ
disbanding	DT
its	DT
division	NN
responsible	JJ
for	IN
buying	NN
network	NN
advertising	NN
time	NN
,	,
just	RB
a	DT
month	NN
after	IN
moving	VBG
11	CD
of	IN
the	DT
group	NN
's	VBZ
14	CD
employees	NNS
to	DT
New	NNP
York	NNP
from	IN
Atlanta	DT
.	.
	
A	DT
spokesman	NN
for	IN
the	DT
New	NNP
York-based	JJ
food	NN
and	CC
tobacco	NN
giant	DT
,	,
taken	VBN
private	JJ
earlier	JJR
this	DT
year	NN
in	IN
a	DT
$	$
25	CD
billion	CD
leveraged	JJ
buy-out	NN
by	IN
Kohlberg	DT
Kravis	DT
Roberts	DT
&	&
Co.	DT
,	,
confirmed	DT
that	WDT
it	DT
is	VBZ
shutting	DT
down	IN
the	DT
RJR	DT
Nabisco	DT
Broadcast	NNP
unit	NN
,	,
and	CC
dismissing	DT
its	DT
14	CD
employees	NNS
,	,
in	IN
a	DT
move	NN
to	DT
save	DT
money	NN
.	.
	
The	NNP
spokesman	NN
said	VBN
RJR	DT
is	VBZ
discussing	DT
its	DT
network-buying	DT
plans	NNS
with	IN
its	DT
two	CD
main	JJ
advertising	NN
firms	NNS
,	,
FCB\/Leber	DT
Katz	DT
and	CC
McCann	DT
Erickson	DT
.	.
	
``	``
We	DT
found	VBN
with	IN
the	DT
size	NN
of	IN
our	DT
media	NNS
purchases	NNS
that	WDT
an	DT
ad	NN
agency	NN
could	MD
do	VBP
just	RB
as	IN
good	JJ
a	DT
job	NN
at	IN
significantly	RB
lower	JJR
cost	NN
,	,
''	''
said	VBN
the	DT
spokesman	NN
,	,
who	WP
declined	VBD
to	DT
specify	DT
how	DT
much	JJ
RJR	DT
spends	DT
on	IN
network	NN
television	NN
time	NN
.	.
	
An	DT
executive	NN
close	NN
to	DT
the	DT
company	NN
said	VBN
RJR	DT
is	VBZ
spending	NN
about	IN
$	$
140	DT
million	CD
on	IN
network	NN
television	NN
time	NN
this	DT
year	NN
,	,
down	IN
from	IN
roughly	RB
$	$
200	CD
million	CD
last	JJ
year	NN
.	.
	
The	NNP
spokesman	NN
said	VBN
the	DT
broadcast	NN
unit	NN
will	MD
be	DT
disbanded	DT
Dec.	DT
1	LS
,	,
and	CC
the	DT
move	NN
wo	MD
n't	RB
affect	DT
RJR	DT
's	VBZ
print	DT
,	,
radio	NN
and	CC
spot-television	DT
buying	NN
practices	DT
.	.
	
The	NNP
broadcast	NN
group	NN
had	VBN
been	VBN
based	VBN
in	IN
New	NNP
York	NNP
until	IN
a	DT
year	NN
ago	IN
,	,
when	DT
RJR	DT
's	VBZ
previous	JJ
management	NN
moved	VBD
it	DT
to	DT
Atlanta	DT
,	,
the	DT
company	NN
's	VBZ
headquarters	NN
before	IN
this	DT
summer	NN
.	.
	
One	CD
employee	NN
with	IN
the	DT
group	NN
said	VBN
RJR	DT
moved	VBD
11	CD
employees	NNS
of	IN
the	DT
group	NN
back	VB
to	DT
New	NNP
York	NNP
in	IN
September	NNP
because	IN
``	``
there	RB
was	VBD
supposed	DT
to	DT
be	DT
a	DT
future	NN
.	.
''	''
	
He	DT
said	VBN
the	DT
company	NN
hired	VBN
three	CD
more	RBR
buyers	NNS
for	IN
the	DT
unit	NN
within	IN
the	DT
past	NN
two	CD
weeks	NNS
,	,
wooing	DT
them	DT
from	IN
jobs	NNS
with	IN
advertising	NN
agencies	NNS
.	.
	
The	NNP
RJR	DT
spokesman	NN
said	VBN
the	DT
company	NN
moved	VBD
the	DT
11	CD
employees	NNS
to	DT
New	NNP
York	NNP
last	JJ
month	NN
because	IN
the	DT
group	NN
had	VBN
then	RB
been	VBN
in	IN
the	DT
midst	NN
of	IN
purchasing	DT
ad	NN
time	NN
for	IN
the	DT
networks	NNS
'	'
upcoming	DT
season	NN
.	.
	
``	``
The	NNP
studies	NNS
{	{
on	IN
closing	VBG
the	DT
unit	NN
}	}
could	MD
n't	RB
be	DT
completed	VBN
until	IN
now	RB
,	,
''	''
he	DT
said	VBN
.	.
	
The	NNP
group	NN
's	VBZ
president	NN
,	,
Peter	NNP
Chrisanthopoulos	DT
,	,
was	VBD
n't	RB
in	IN
his	DT
office	NN
Friday	NNP
afternoon	NN
to	DT
comment	NN
.	.
	
The	NNP
U.S.	DT
,	,
which	DT
is	VBZ
finalizing	DT
its	DT
steel-import	JJ
quotas	NNS
,	,
is	VBZ
allocating	DT
a	DT
larger	JJR
share	NN
of	IN
its	DT
steel	NN
market	NN
to	DT
developing	VBG
and	CC
newly	RB
industrialized	DT
countries	NNS
which	DT
have	VBP
relatively	RB
unsubsidized	JJ
steel	NN
industries	NNS
.	.
	
Meanwhile	RB
,	,
the	DT
U.S.	DT
has	VBZ
negotiated	VBN
a	DT
significant	JJ
cut	NN
in	IN
Japan	NNP
's	VBZ
steel	NN
quota	NN
,	,
and	CC
made	VBN
only	RB
a	DT
minor	NN
increase	NN
to	DT
the	DT
steel	NN
allotment	DT
for	IN
the	DT
European	NNP
Community	NNP
.	.
	
Brazil	DT
,	,
similar	JJ
to	DT
Mexico	NNP
and	CC
South	NNP
Korea	DT
,	,
is	VBZ
expected	VBN
to	DT
negotiate	DT
a	DT
somewhat	RB
bigger	JJR
share	NN
of	IN
the	DT
U.S.	DT
market	NN
than	IN
it	DT
had	VBN
under	IN
the	DT
previous	JJ
five-year	JJ
steel	NN
quotas	NNS
,	,
which	DT
expired	VBD
Sept.	DT
30	CD
.	.
	
Brazil	DT
and	CC
Venezuela	DT
are	VBP
the	DT
only	RB
two	CD
countries	NNS
that	WDT
have	VBP
n't	RB
completed	VBN
steel	NN
talks	NNS
with	IN
the	DT
U.S.	DT
for	IN
the	DT
year	NN
ending	VBG
Oct.	DT
1	LS
,	,
1990	CD
.	.
	
In	IN
recent	JJ
years	NNS
,	,
U.S.	DT
steelmakers	DT
have	VBP
supplied	DT
about	IN
80	CD
%	%
of	IN
the	DT
100	CD
million	CD
tons	NNS
of	IN
steel	NN
used	VBN
annually	RB
by	IN
the	DT
nation	NN
.	.
	
Of	IN
the	DT
remaining	VBG
20	CD
%	%
needed	VBN
,	,
the	DT
steel-quota	DT
negotiations	NNS
allocate	DT
about	IN
15	CD
%	%
to	DT
foreign	JJ
suppliers	DT
,	,
with	IN
the	DT
difference	NN
supplied	DT
mainly	RB
by	IN
Canada	NNP
--	--
which	DT
is	VBZ
n't	RB
included	VBN
in	IN
the	DT
quota	NN
program	NN
.	.
	
Other	JJ
countries	NNS
that	WDT
do	VBP
n't	RB
have	VBP
formal	DT
steel	NN
quotas	NNS
with	IN
the	DT
U.S.	DT
,	,
such	JJ
as	IN
Taiwan	NNP
,	,
Sweden	DT
and	CC
Argentina	NNP
,	,
also	RB
have	VBP
supplied	DT
steel	NN
.	.
	
Some	DT
of	IN
these	DT
countries	NNS
have	VBP
in	IN
recent	JJ
years	NNS
made	VBN
informal	DT
agreements	DT
with	IN
the	DT
U.S.	DT
that	IN
are	VBP
similar	JJ
to	DT
quotas	NNS
.	.
	
The	NNP
Bush	NNP
administration	NN
earlier	JJR
this	DT
year	NN
said	VBN
it	DT
would	MD
extend	DT
steel	NN
quotas	NNS
,	,
known	VBN
as	IN
voluntary	JJ
restraint	DT
agreements	DT
,	,
until	IN
March	NNP
31	CD
,	,
1992	CD
.	.
	
It	PRP
also	RB
said	VBN
it	DT
would	MD
use	NN
that	WDT
two-and-a-half	DT
year	NN
period	NN
to	DT
work	NN
toward	IN
an	DT
international	JJ
consensus	NN
on	IN
freeing	NN
up	IN
the	DT
international	JJ
steel	NN
trade	NN
,	,
which	DT
has	VBZ
been	VBN
notoriously	DT
managed	VBD
,	,
subsidized	DT
and	CC
protected	VBN
by	IN
governments	NNS
.	.
	
The	NNP
U.S.	DT
termed	VBN
its	DT
plan	NN
,	,
a	DT
``	``
trade	NN
liberalization	DT
program	NN
,	,
''	''
despite	IN
the	DT
fact	NN
that	WDT
it	DT
is	VBZ
merely	RB
an	DT
extension	NN
.	.
	
Mexico	NNP
,	,
which	DT
was	VBD
one	CD
of	IN
the	DT
first	JJ
countries	NNS
to	DT
conclude	DT
its	DT
steel	NN
talks	NNS
with	IN
the	DT
U.S.	DT
,	,
virtually	DT
doubled	DT
its	DT
quota	NN
to	DT
0.95	DT
%	%
of	IN
the	DT
U.S.	DT
steel	NN
market	NN
from	IN
0.48	DT
%	%
under	IN
the	DT
previous	JJ
quotas	NNS
.	.
	
South	NNP
Korea	DT
,	,
which	DT
had	VBN
1.9	DT
%	%
under	IN
the	DT
previous	JJ
quotas	NNS
,	,
is	VBZ
set	VBN
to	DT
get	VBP
a	DT
small	JJ
increase	NN
to	DT
about	IN
1.95	DT
%	%
.	.
	
That	IN
increase	NN
rises	DT
to	DT
slightly	RB
more	RBR
than	IN
2	CD
%	%
of	IN
the	DT
U.S.	DT
market	NN
if	IN
a	DT
joint	JJ
Korean-U.S.	DT
steel	NN
project	NN
is	VBZ
included	VBN
.	.
	
Meanwhile	RB
,	,
Brazil	DT
is	VBZ
expected	VBN
to	DT
increase	NN
its	DT
allowance	DT
from	IN
the	DT
1.43	CD
%	%
share	NN
it	DT
has	VBZ
had	VBN
in	IN
recent	JJ
years	NNS
.	.
	
The	NNP
EC	DT
and	CC
Japan	NNP
--	--
the	DT
U.S.	DT
's	PRP
largest	JJS
steel	NN
suppliers	DT
--	--
have	VBP
n't	RB
been	VBN
filling	DT
their	DT
quotas	NNS
to	DT
the	DT
full	JJ
extent	NN
.	.
	
The	NNP
EC	DT
steel	NN
industry	NN
,	,
which	DT
has	VBZ
been	VBN
coping	DT
with	IN
strong	JJ
European	NNP
demand	NN
,	,
has	VBZ
been	VBN
supplying	DT
about	IN
5	CD
%	%
of	IN
the	DT
U.S.	DT
market	NN
compared	VBN
with	IN
recent	JJ
quotas	NNS
of	IN
about	IN
6.7	DT
%	%
.	.
	
Japan	NNP
has	VBZ
been	VBN
shipping	DT
steel	NN
to	DT
total	JJ
about	IN
4.5	CD
%	%
of	IN
the	DT
U.S.	DT
market	NN
compared	VBN
with	IN
a	DT
quota	NN
of	IN
5.9	DT
%	%
.	.
	
In	IN
the	DT
recent	JJ
talks	NNS
,	,
the	DT
EC	DT
had	VBN
its	DT
quota	NN
increased	VBN
about	IN
300,000	DT
tons	NNS
,	,
to	DT
7	CD
%	%
of	IN
the	DT
U.S.	DT
market	NN
from	IN
6.7	DT
%	%
in	IN
1988	CD
.	.
	
But	CC
its	DT
quota	NN
has	VBZ
been	VBN
as	IN
high	JJ
as	IN
6.9	DT
%	%
in	IN
1984	CD
.	.
	
Japan	NNP
,	,
however	RB
,	,
has	VBZ
agreed	VBN
to	DT
cut	NN
its	DT
quota	NN
to	DT
about	IN
5	CD
%	%
from	IN
5.9	DT
%	%
previously	RB
.	.
	
Japan	NNP
,	,
the	DT
EC	DT
,	,
Brazil	DT
,	,
Mexico	NNP
and	CC
South	NNP
Korea	DT
provide	VBP
about	IN
80	CD
%	%
of	IN
the	DT
steel	NN
imported	VBN
to	DT
the	DT
U.S.	DT
under	IN
the	DT
quota	NN
program	NN
.	.
	
The	NNP
balance	NN
is	VBZ
supplied	DT
by	IN
a	DT
host	NN
of	IN
smaller	JJR
exporters	DT
,	,
such	JJ
as	IN
Australia	NNP
and	CC
Venezuela	DT
.	.
	
The	NNP
U.S.	DT
had	VBD
about	IN
an	DT
extra	DT
2	CD
%	%
of	IN
the	DT
domestic	JJ
steel	NN
market	NN
to	DT
give	VBP
to	DT
foreign	JJ
suppliers	DT
in	IN
its	DT
quota	NN
talks	NNS
.	.
	
That	IN
was	VBD
essentially	DT
made	VBN
up	IN
of	IN
a	DT
1	CD
%	%
increase	NN
in	IN
the	DT
overall	JJ
quota	NN
program	NN
and	CC
1	CD
%	%
from	IN
cutting	DT
Japan	NNP
's	VBZ
allowance	DT
.	.
	
Negotiators	DT
from	IN
the	DT
White	NNP
House	NNP
trade	NN
office	NN
will	MD
repeat	NN
these	DT
quota	NN
negotiations	NNS
next	JJ
year	NN
when	DT
they	DT
will	MD
have	VBP
another	DT
1	CD
%	%
of	IN
the	DT
U.S.	DT
steel	NN
market	NN
to	DT
allocate	DT
.	.
	
These	DT
optional	DT
1%-a-year	DT
increases	NNS
to	DT
the	DT
steel	NN
quota	NN
program	NN
are	VBP
built	VBN
into	IN
the	DT
Bush	NNP
administration	NN
's	VBZ
steel-quota	DT
program	NN
to	DT
give	VBP
its	DT
negotiators	DT
leverage	DT
with	IN
foreign	JJ
steel	NN
suppliers	DT
to	DT
try	DT
to	DT
get	VBP
them	DT
to	DT
withdraw	DT
subsidies	NNS
and	CC
protectionism	DT
from	IN
their	DT
own	JJ
steel	NN
industries	NNS
.	.
	
Elcotel	DT
Inc.	DT
expects	VBZ
fiscal	JJ
second-quarter	DT
earnings	NNS
to	DT
trail	NN
1988	CD
results	NNS
,	,
but	CC
anticipates	VBZ
that	WDT
several	JJ
new	JJ
products	NNS
will	MD
lead	NN
to	DT
a	DT
``	``
much	JJ
stronger	DT
''	''
performance	NN
in	IN
its	DT
second	NN
half	DT
.	.
	
Elcotel	DT
,	,
a	DT
telecommunications	DT
company	NN
,	,
had	VBN
net	JJ
income	NN
of	IN
$	$
272,000	DT
,	,
or	CC
five	CD
cents	NNS
a	DT
share	NN
,	,
in	IN
its	DT
year-earlier	JJ
second	NN
quarter	NN
,	,
ended	VBD
Sept.	DT
30	CD
.	.
	
Revenue	NN
totaled	DT
$	$
5	CD
million	CD
.	.
	
George	NNP
Pierce	DT
,	,
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
said	VBN
in	IN
an	DT
interview	NN
that	WDT
earnings	NNS
in	IN
the	DT
most	RBS
recent	JJ
quarter	NN
will	MD
be	DT
about	IN
two	CD
cents	NNS
a	DT
share	NN
on	IN
revenue	NN
of	IN
just	RB
under	IN
$	$
4	CD
million	CD
.	.
	
The	NNP
lower	JJR
results	NNS
,	,
Mr.	DT
Pierce	DT
said	VBN
,	,
reflect	DT
a	DT
12-month	DT
decline	NN
in	IN
industry	NN
sales	NNS
of	IN
privately	RB
owned	VBN
pay	NN
telephones	NNS
,	,
Elcotel	DT
's	VBZ
primary	JJ
business	NN
.	.
	
Although	IN
Mr.	DT
Pierce	DT
expects	VBZ
that	WDT
line	NN
of	IN
business	NN
to	DT
strengthen	DT
in	IN
the	DT
next	JJ
year	NN
,	,
he	DT
said	VBN
Elcotel	DT
will	MD
also	RB
benefit	NN
from	IN
moving	VBG
into	IN
other	JJ
areas	NNS
.	.
	
Foremost	DT
among	IN
those	DT
is	VBZ
the	DT
company	NN
's	VBZ
entrance	DT
into	IN
the	DT
public	JJ
facsimile	DT
business	NN
,	,
Mr.	DT
Pierce	DT
said	VBN
.	.
	
Within	DT
the	DT
next	JJ
year	NN
,	,
Elcotel	DT
expects	VBZ
to	DT
place	NN
10,000	CD
fax	DT
machines	NNS
,	,
made	VBN
by	IN
Minolta	DT
in	IN
Japan	NNP
,	,
in	IN
hotels	DT
,	,
municipal	DT
buildings	NNS
,	,
drugstores	DT
and	CC
other	JJ
public	JJ
settings	DT
around	IN
the	DT
country	NN
.	.
	
Elcotel	DT
will	MD
provide	VBP
a	DT
credit-card	DT
reader	DT
for	IN
the	DT
machines	NNS
to	DT
collect	DT
,	,
store	DT
and	CC
forward	JJ
billing	DT
data	NNS
.	.
	
Mr.	DT
Pierce	DT
said	VBN
Elcotel	DT
should	MD
realize	DT
a	DT
minimum	JJ
of	IN
$	$
10	CD
of	IN
recurring	DT
net	JJ
earnings	NNS
for	IN
each	DT
machine	DT
each	DT
month	NN
.	.
	
Elcotel	DT
has	VBZ
also	RB
developed	VBN
an	DT
automatic	DT
call	DT
processor	DT
that	WDT
will	MD
make	VBP
further	JJ
use	NN
of	IN
the	DT
company	NN
's	VBZ
system	NN
for	IN
automating	DT
and	CC
handling	DT
credit-card	DT
calls	VBZ
and	CC
collect	DT
calls	VBZ
.	.
	
Automatic	DT
call	DT
processors	DT
will	MD
provide	VBP
that	WDT
system	NN
for	IN
virtually	DT
any	DT
telephone	NN
,	,
Mr.	DT
Pierce	DT
said	VBN
,	,
not	RB
just	RB
phones	NNS
produced	VBN
by	IN
Elcotel	DT
.	.
	
The	NNP
company	NN
will	MD
also	RB
be	DT
producing	VBG
a	DT
new	JJ
line	NN
of	IN
convenience	NN
telephones	NNS
,	,
which	DT
do	VBP
n't	RB
accept	DT
coins	DT
,	,
for	IN
use	NN
in	IN
hotel	NN
lobbies	DT
,	,
office	NN
lobbies	DT
,	,
hospitality	DT
lounges	DT
and	CC
similar	JJ
settings	DT
.	.
	
Mr.	DT
Pierce	DT
estimated	VBN
that	WDT
the	DT
processors	DT
and	CC
convenience	NN
phones	NNS
would	MD
produce	DT
about	IN
$	$
5	CD
of	IN
recurring	DT
net	JJ
earnings	NNS
for	IN
each	DT
machine	DT
each	DT
month	NN
.	.
	
Britain	NNP
's	VBZ
retail	JJ
price	NN
index	NN
rose	VBD
0.7	CD
%	%
in	IN
September	NNP
from	IN
August	NNP
and	CC
was	VBD
up	IN
7.6	CD
%	%
for	IN
the	DT
year	NN
,	,
the	DT
Central	NNP
Statistical	NNP
Office	NN
said	VBN
.	.
	
Quest	DT
Medical	NNP
Inc.	DT
said	VBD
it	DT
adopted	VBN
a	DT
shareholders	NNS
'	'
rights	NNS
plan	NN
in	IN
which	DT
rights	NNS
to	DT
purchase	NN
shares	NNS
of	IN
common	JJ
stock	NN
will	MD
be	DT
distributed	DT
as	IN
a	DT
dividend	NN
to	DT
shareholders	NNS
of	IN
record	NN
as	IN
of	IN
Oct.	DT
23	CD
.	.
	
The	NNP
company	NN
said	VBN
the	DT
plan	NN
was	VBD
n't	RB
adopted	VBN
in	IN
response	NN
to	DT
any	DT
known	VBN
offers	NNS
for	IN
Quest	DT
,	,
a	DT
maker	NN
and	CC
marketer	DT
of	IN
hospital	DT
products	NNS
.	.
	
The	NNP
rights	NNS
allow	DT
shareholders	NNS
to	DT
purchase	NN
Quest	DT
stock	NN
at	IN
a	DT
discount	DT
if	IN
any	DT
person	DT
or	CC
group	NN
acquires	DT
more	RBR
than	IN
15	CD
%	%
of	IN
the	DT
company	NN
's	VBZ
common	JJ
stock	NN
or	CC
announces	DT
a	DT
tender	NN
offer	NN
.	.
	
Measuring	DT
cups	DT
may	MD
soon	RB
be	DT
replaced	VBD
by	IN
tablespoons	DT
in	IN
the	DT
laundry	DT
room	NN
.	.
	
Procter	DT
&	&
Gamble	DT
Co.	DT
plans	NNS
to	DT
begin	VBP
testing	DT
next	JJ
month	NN
a	DT
superconcentrated	DT
detergent	DT
that	WDT
will	MD
require	VBP
only	RB
a	DT
few	JJ
spoonfuls	DT
per	IN
washload	DT
.	.
	
The	NNP
move	NN
stems	VBZ
from	IN
lessons	DT
learned	DT
in	IN
Japan	NNP
where	DT
local	JJ
competitors	DT
have	VBP
had	VBN
phenomenal	DT
success	NN
with	IN
concentrated	VBN
soapsuds	DT
.	.
	
It	PRP
also	RB
marks	VBZ
P&G	DT
's	VBZ
growing	VBG
concern	NN
that	WDT
its	DT
Japanese	JJ
rivals	NNS
,	,
such	JJ
as	IN
Kao	DT
Corp.	DT
,	,
may	MD
bring	DT
their	DT
superconcentrates	DT
to	DT
the	DT
U.S.	DT
.	.
	
The	NNP
Cincinnati	DT
consumer-products	DT
giant	DT
got	VBN
clobbered	DT
two	CD
years	NNS
ago	IN
in	IN
Japan	NNP
when	DT
Kao	DT
introduced	VBN
a	DT
powerful	JJ
detergent	DT
,	,
called	VBN
Attack	DT
,	,
which	DT
quickly	RB
won	VBD
a	DT
30	CD
%	%
stake	NN
in	IN
the	DT
Japanese	JJ
markets	NNS
.	.
	
``	``
They	DT
do	VBP
n't	RB
want	VBP
to	DT
get	VBP
caught	VBN
again	RB
,	,
''	''
says	VBZ
one	CD
industry	NN
watcher	DT
.	.
	
Retailers	DT
in	IN
Phoenix	DT
,	,
Ariz.	DT
,	,
say	VBP
P&G	DT
's	VBZ
new	JJ
powdered	DT
detergent	DT
--	--
to	DT
be	DT
called	VBN
Cheer	DT
with	IN
Color	DT
Guard	DT
--	--
will	MD
be	DT
on	IN
shelves	DT
in	IN
that	WDT
market	NN
by	IN
early	JJ
November	NNP
.	.
	
A	DT
P&G	DT
spokeswoman	DT
confirmed	DT
that	WDT
shipments	NNS
to	DT
Phoenix	DT
started	VBN
late	JJ
last	JJ
month	NN
.	.
	
She	DT
said	VBN
the	DT
company	NN
will	MD
study	NN
results	NNS
from	IN
this	DT
market	NN
before	IN
expanding	VBG
to	DT
others	NNS
.	.
	
Superconcentrates	DT
are	VBP
n't	RB
entirely	RB
new	JJ
for	IN
P&G	DT
.	.
	
The	NNP
company	NN
introduced	VBN
a	DT
superconcentrated	DT
Lemon	DT
Cheer	DT
in	IN
Japan	NNP
after	IN
watching	VBG
the	DT
success	NN
of	IN
Attack	DT
.	.
	
When	DT
Attack	DT
hit	VBD
the	DT
shelves	DT
in	IN
1987	CD
,	,
P&G	DT
's	VBZ
share	NN
of	IN
the	DT
Japanese	JJ
market	NN
fell	VBD
to	DT
about	IN
8	CD
%	%
from	IN
more	RBR
than	IN
20	CD
%	%
.	.
	
With	IN
the	DT
help	NN
of	IN
Lemon	DT
Cheer	DT
,	,
P&G	DT
's	VBZ
share	NN
is	VBZ
now	RB
estimated	VBN
to	DT
be	DT
12	CD
%	%
.	.
	
While	IN
the	DT
Japanese	JJ
have	VBP
embraced	DT
the	DT
compact	DT
packaging	DT
and	CC
convenience	NN
of	IN
concentrated	VBN
products	NNS
,	,
the	DT
true	JJ
test	NN
for	IN
P&G	DT
will	MD
be	DT
in	IN
the	DT
$	$
4	CD
billion	CD
U.S.	DT
detergent	DT
market	NN
,	,
where	DT
growth	NN
is	VBZ
slow	JJ
and	CC
liquids	DT
have	VBP
gained	VBN
prominence	DT
over	IN
powders	DT
.	.
	
The	NNP
company	NN
may	MD
have	VBP
chosen	VBN
to	DT
market	NN
the	DT
product	NN
under	IN
the	DT
Cheer	DT
name	NN
since	IN
it	DT
's	VBZ
already	RB
expanded	VBN
its	DT
best-selling	DT
Tide	DT
into	IN
16	CD
different	JJ
varieties	DT
,	,
including	VBG
this	DT
year	NN
's	VBZ
big	JJ
hit	VBD
,	,
Tide	DT
with	IN
Bleach	DT
.	.
	
With	IN
superconcentrates	DT
,	,
however	RB
,	,
it	DT
is	VBZ
n't	RB
always	DT
easy	JJ
to	DT
persuade	DT
consumers	NNS
that	WDT
less	RBR
is	VBZ
more	RBR
;	;
many	JJ
people	NNS
tend	DT
to	DT
dump	DT
too	RB
much	JJ
detergent	DT
into	IN
the	DT
washing	DT
machine	DT
,	,
believing	DT
that	WDT
it	DT
takes	VBZ
a	DT
cup	DT
of	IN
powder	DT
to	DT
really	RB
clean	DT
the	DT
laundry	DT
.	.
	
In	IN
the	DT
early	JJ
1980s	CD
,	,
P&G	DT
tried	VBN
to	DT
launch	DT
here	RB
a	DT
concentrated	VBN
detergent	DT
under	IN
the	DT
Ariel	DT
brand	NN
name	NN
that	WDT
it	DT
markets	NNS
in	IN
Europe	NNP
.	.
	
But	CC
the	DT
product	NN
,	,
which	DT
was	VBD
n't	RB
as	IN
concentrated	VBN
as	IN
the	DT
new	JJ
Cheer	DT
,	,
bombed	DT
in	IN
a	DT
market	NN
test	NN
in	IN
Denver	NNP
and	CC
was	VBD
dropped	VBN
.	.
	
P&G	DT
and	CC
others	NNS
also	RB
have	VBP
tried	VBN
repeatedly	RB
to	DT
hook	DT
consumers	NNS
on	IN
detergent	DT
and	CC
fabric	DT
softener	DT
combinations	DT
in	IN
pouches	DT
,	,
but	CC
they	DT
have	VBP
n't	RB
sold	VBN
well	RB
,	,
despite	IN
the	DT
convenience	NN
.	.
	
But	CC
P&G	DT
contends	VBZ
the	DT
new	JJ
Cheer	DT
is	VBZ
a	DT
unique	DT
formula	NN
that	WDT
also	RB
offers	NNS
an	DT
ingredient	DT
that	WDT
prevents	DT
colors	NNS
from	IN
fading	DT
.	.
	
And	CC
retailers	NNS
are	VBP
expected	VBN
to	DT
embrace	DT
the	DT
product	NN
,	,
in	IN
part	NN
because	IN
it	DT
will	MD
take	VBP
up	IN
less	RBR
shelf	DT
space	NN
.	.
	
``	``
When	DT
shelf	DT
space	NN
was	VBD
cheap	JJ
,	,
bigger	JJR
was	VBD
better	JJR
,	,
''	''
says	VBZ
Hugh	DT
Zurkuhlen	DT
,	,
an	DT
analyst	NN
at	IN
Salomon	DT
Bros	DT
.	.
	
But	CC
with	IN
so	IN
many	JJ
brands	DT
vying	DT
for	IN
space	NN
,	,
that	WDT
's	VBZ
no	RB
longer	JJR
the	DT
case	NN
.	.
	
If	IN
the	DT
new	JJ
Cheer	DT
sells	DT
well	RB
,	,
the	DT
trend	NN
toward	IN
smaller	JJR
packaging	DT
is	VBZ
likely	JJ
to	DT
accelerate	DT
as	IN
competitors	DT
follow	DT
with	IN
their	DT
own	JJ
superconcentrates	DT
.	.
	
Then	RB
retailers	NNS
``	``
will	MD
probably	RB
push	NN
the	DT
{	{
less-established	DT
}	}
brands	DT
out	IN
altogether	DT
,	,
''	''
he	DT
says	VBZ
.	.
	
Competition	DT
is	VBZ
bound	DT
to	DT
get	VBP
tougher	JJR
if	IN
Kao	DT
introduces	DT
a	DT
product	NN
like	JJ
Attack	DT
in	IN
the	DT
U.S.	DT
.	.
	
To	NN
be	DT
sure	JJ
,	,
Kao	DT
would	MD
n't	RB
have	VBP
an	DT
easy	JJ
time	NN
taking	VBG
U.S.	DT
market	NN
share	NN
away	RB
from	IN
the	DT
mighty	DT
P&G	DT
,	,
which	DT
has	VBZ
about	IN
23	CD
%	%
of	IN
the	DT
market	NN
.	.
	
Kao	DT
officials	NNS
previously	RB
have	VBP
said	VBN
they	DT
are	VBP
interested	JJ
in	IN
selling	NN
detergents	DT
in	IN
the	DT
U.S.	DT
,	,
but	CC
so	IN
far	JJ
the	DT
company	NN
has	VBZ
focused	VBD
on	IN
acquisitions	NNS
,	,
such	JJ
as	IN
last	JJ
year	NN
's	VBZ
purchase	NN
of	IN
Andrew	NNP
Jergens	DT
Co.	DT
,	,
a	DT
Cincinnati	DT
hand-lotion	DT
maker	NN
.	.
	
It	PRP
also	RB
has	VBZ
a	DT
product-testing	DT
facility	NN
in	IN
California	NNP
.	.
	
Some	DT
believe	VBP
P&G	DT
's	VBZ
interest	NN
in	IN
a	DT
superconcentrated	DT
detergent	DT
goes	VBZ
beyond	DT
the	DT
concern	NN
for	IN
the	DT
Japanese	JJ
.	.
	
``	``
This	DT
is	VBZ
something	NN
P&G	DT
would	MD
do	VBP
with	IN
or	CC
without	IN
Kao	DT
,	,
''	''
says	VBZ
Mr.	DT
Zurkuhlen	DT
.	.
	
With	IN
economic	JJ
tension	DT
between	IN
the	DT
U.S.	DT
and	CC
Japan	NNP
worsening	NN
,	,
many	JJ
Japanese	JJ
had	VBN
feared	VBD
last	JJ
week	NN
's	VBZ
visit	DT
from	IN
U.S.	DT
Trade	NNP
Representative	DT
Carla	DT
Hills	NNPS
.	.
	
They	DT
expected	VBN
a	DT
new	JJ
barrage	DT
of	IN
demands	DT
that	WDT
Japan	NNP
do	VBP
something	NN
quickly	RB
to	DT
reduce	DT
its	DT
trade	NN
surplus	DT
with	IN
the	DT
U.S.	DT
.	.
	
Instead	RB
,	,
they	DT
got	VBN
a	DT
discussion	NN
of	IN
the	DT
need	VB
for	IN
the	DT
U.S.	DT
and	CC
Japan	NNP
to	DT
work	NN
together	RB
and	CC
of	IN
the	DT
importance	NN
of	IN
the	DT
long-term	JJ
view	NN
.	.
	
Mrs.	DT
Hills	NNPS
'	'
first	JJ
trip	DT
to	DT
Japan	NNP
as	IN
America	NNP
's	VBZ
chief	NN
trade	NN
negotiator	DT
had	VBN
a	DT
completely	RB
different	JJ
tone	DT
from	IN
last	JJ
month	NN
's	VBZ
visit	DT
by	IN
Commerce	NNP
Secretary	NNP
Robert	NNP
A.	DT
Mosbacher	DT
.	.
	
Mr.	DT
Mosbacher	DT
called	VBN
for	IN
concrete	DT
results	NNS
by	IN
next	JJ
spring	NN
in	IN
negotiations	NNS
over	IN
fundamental	JJ
Japanese	JJ
business	NN
practices	DT
that	WDT
supposedly	RB
inhibit	DT
free	JJ
trade	NN
.	.
	
He	DT
said	VBN
such	JJ
results	NNS
should	MD
be	DT
``	``
measurable	DT
in	IN
dollars	NNS
and	CC
cents	NNS
''	''
in	IN
reducing	VBG
the	DT
U.S.	DT
trade	NN
deficit	NN
with	IN
Japan	NNP
.	.
	
But	CC
Mrs.	DT
Hills	NNPS
,	,
speaking	VBG
at	IN
a	DT
breakfast	DT
meeting	NN
of	IN
the	DT
American	JJ
Chamber	DT
of	IN
Commerce	NNP
in	IN
Japan	NNP
on	IN
Saturday	DT
,	,
stressed	VBD
that	WDT
the	DT
objective	DT
``	``
is	VBZ
not	RB
to	DT
get	VBP
definitive	DT
action	NN
by	IN
spring	NN
or	CC
summer	NN
,	,
it	DT
is	VBZ
rather	RB
to	DT
have	VBP
a	DT
blueprint	DT
for	IN
action	NN
.	.
''	''
	
She	DT
added	VBN
that	WDT
she	DT
expected	VBN
``	``
perhaps	RB
to	DT
have	VBP
a	DT
down	IN
payment	NN
...	...
some	DT
small	JJ
step	DT
to	DT
convince	DT
the	DT
American	JJ
people	NNS
and	CC
the	DT
Japanese	JJ
people	NNS
that	WDT
we	DT
're	VBP
moving	VBG
in	IN
earnest	DT
.	.
''	''
	
How	DT
such	JJ
remarks	NNS
translate	DT
into	IN
policy	NN
wo	MD
n't	RB
become	VBN
clear	JJ
for	IN
months	NNS
.	.
	
American	JJ
and	CC
Japanese	JJ
officials	NNS
offered	VBN
several	JJ
theories	DT
for	IN
the	DT
difference	NN
in	IN
approach	DT
betwen	DT
Mr.	DT
Mosbacher	DT
and	CC
Mrs.	DT
Hills	NNPS
.	.
	
Many	JJ
called	VBN
it	DT
simply	RB
a	DT
contrast	NN
in	IN
styles	DT
.	.
	
But	CC
some	DT
saw	VBD
it	DT
as	IN
a	DT
classic	JJ
negotiating	DT
tactic	DT
.	.
	
Others	DT
said	VBN
the	DT
Bush	NNP
administration	NN
may	MD
feel	VBP
the	DT
rhetoric	DT
on	IN
both	DT
sides	NNS
is	VBZ
getting	VBG
out	IN
of	IN
hand	NN
.	.
	
And	CC
some	DT
said	VBN
it	DT
reflected	DT
the	DT
growing	VBG
debate	NN
in	IN
Washington	NNP
over	IN
pursuing	DT
free	JJ
trade	NN
with	IN
Japan	NNP
versus	DT
some	DT
kind	NN
of	IN
managed	VBD
trade	NN
.	.
	
Asked	DT
to	DT
compare	DT
her	DT
visit	DT
to	DT
Mr.	DT
Mosbacher	DT
's	VBZ
,	,
Mrs.	DT
Hills	NNPS
replied	VBD
:	:
``	``
I	DT
did	VBD
n't	RB
hear	DT
every	DT
word	NN
he	DT
spoke	VBD
,	,
but	CC
as	IN
a	DT
general	NN
proposition	DT
,	,
I	DT
think	VBP
we	DT
have	VBP
a	DT
very	RB
consistent	JJ
trade	NN
strategy	NN
in	IN
the	DT
Bush	NNP
administration	NN
.	.
''	''
	
Yet	RB
more	RBR
than	IN
one	CD
American	JJ
official	NN
who	WP
sat	VBN
in	IN
with	IN
her	DT
during	IN
three	CD
days	NNS
of	IN
talks	NNS
with	IN
Japanese	JJ
officials	NNS
said	VBN
her	DT
tone	DT
often	RB
was	VBD
surprisingly	DT
``	``
conciliatory	DT
.	.
''	''
	
``	``
I	DT
think	VBP
my	DT
line	NN
has	VBZ
been	VBN
very	RB
consistent	JJ
,	,
''	''
Mrs.	DT
Hills	NNPS
said	VBN
at	IN
a	DT
news	NN
conference	NN
Saturday	DT
afternoon	NN
.	.
	
``	``
I	DT
am	VBP
painted	DT
sometimes	DT
as	IN
ferocious	DT
,	,
perhaps	RB
because	IN
I	DT
have	VBP
a	DT
ferocious	DT
list	DT
of	IN
statutes	DT
to	DT
implement	DT
.	.
	
I	DT
do	VBP
n't	RB
feel	VBP
very	RB
ferocious	DT
.	.
	
I	DT
do	VBP
n't	RB
feel	VBP
either	RB
hard	JJ
or	CC
soft	DT
.	.
	
I	DT
feel	VBP
committed	DT
to	DT
the	DT
program	NN
of	IN
opening	NN
markets	NNS
and	CC
expanding	VBG
trade	NN
.	.
''	''
	
When	DT
she	DT
met	VBN
the	DT
local	JJ
press	NN
for	IN
the	DT
first	JJ
time	NN
on	IN
Friday	NNP
,	,
Mrs.	DT
Hills	NNPS
firmly	DT
reiterated	DT
the	DT
need	VB
for	IN
progress	DT
in	IN
removing	VBG
barriers	NNS
to	DT
trade	NN
in	IN
forest	NN
products	NNS
,	,
satellites	DT
and	CC
supercomputers	DT
,	,
three	CD
areas	NNS
targeted	VBN
under	IN
the	DT
Super	DT
301	DT
provision	NN
of	IN
the	DT
1988	CD
trade	NN
bill	NN
.	.
	
She	DT
highlighted	DT
exclusionary	DT
business	NN
practices	DT
that	WDT
the	DT
U.S.	DT
government	NN
has	VBZ
identified	VBD
.	.
	
But	CC
her	DT
main	JJ
thrust	DT
was	VBD
to	DT
promote	DT
the	DT
importance	NN
of	IN
world-wide	DT
free	JJ
trade	NN
and	CC
open	JJ
competition	NN
.	.
	
She	DT
said	VBN
the	DT
trade	NN
imbalance	DT
was	VBD
mainly	RB
due	JJ
to	DT
macroeconomic	DT
factors	DT
and	CC
should	MD
n't	RB
be	DT
tackled	DT
by	IN
setting	VBG
quantitative	DT
targets	NNS
.	.
	
At	IN
her	DT
news	NN
conference	NN
for	IN
Japanese	JJ
reporters	NNS
,	,
one	CD
economics	DT
journalist	DT
summed	DT
up	IN
the	DT
Japanese	JJ
sense	NN
of	IN
relief	NN
.	.
	
``	``
My	NNP
impression	DT
was	VBD
that	WDT
you	DT
would	MD
be	DT
a	DT
scary	JJ
old	JJ
lady	DT
,	,
''	''
he	DT
said	VBN
,	,
drawing	DT
a	DT
few	JJ
nervous	JJ
chuckles	DT
from	IN
his	DT
colleagues	NNS
.	.
	
``	``
But	CC
I	DT
am	VBP
relieved	VBN
to	DT
see	VBP
that	WDT
you	DT
are	VBP
beautiful	DT
and	CC
gentle	DT
and	CC
intelligent	DT
and	CC
a	DT
person	DT
of	IN
integrity	DT
.	.
''	''
	
Mrs.	DT
Hills	NNPS
'	'
remarks	NNS
did	VBD
raise	DT
questions	NNS
,	,
at	IN
least	JJS
among	IN
some	DT
U.S.	DT
officials	NNS
,	,
about	IN
what	WP
exactly	RB
her	DT
stance	DT
is	VBZ
on	IN
U.S.	DT
access	NN
to	DT
the	DT
Japanese	JJ
semiconductor	NN
market	NN
.	.
	
The	NNP
U.S.	DT
share	NN
of	IN
the	DT
Japanese	JJ
market	NN
has	VBZ
been	VBN
stuck	VBD
around	IN
10	CD
%	%
for	IN
years	NNS
.	.
	
Many	JJ
Americans	NNPS
have	VBP
interpreted	DT
a	DT
1986	CD
agreement	NN
as	IN
assuring	DT
U.S.	DT
companies	NNS
a	DT
20	CD
%	%
share	NN
by	IN
1991	DT
,	,
but	CC
the	DT
Japanese	JJ
have	VBP
denied	VBD
making	VBG
any	DT
such	JJ
promise	NN
.	.
	
At	IN
one	CD
of	IN
her	DT
news	NN
conferences	DT
,	,
Mrs.	DT
Hills	NNPS
said	VBN
,	,
``	``
I	DT
believe	VBP
we	DT
can	MD
do	VBP
much	JJ
better	JJR
than	IN
20	CD
%	%
.	.
''	''
	
But	CC
she	DT
stressed	VBD
,	,
``	``
I	DT
am	VBP
against	IN
managed	VBD
trade	NN
.	.
	
I	DT
will	MD
not	RB
enter	DT
into	IN
an	DT
agreement	NN
that	WDT
stipulates	DT
to	DT
a	DT
percentage	NN
of	IN
the	DT
market	NN
.	.
	
Traditional	DT
Industries	NNPS
Inc.	DT
said	VBD
it	DT
expects	VBZ
to	DT
report	NN
a	DT
net	JJ
loss	NN
for	IN
the	DT
fourth	JJ
quarter	NN
that	WDT
ended	VBD
June	NNP
30	CD
and	CC
is	VBZ
seeking	VBG
new	JJ
financing	NN
.	.
	
The	NNP
seller	DT
of	IN
photographic	DT
products	NNS
and	CC
services	NNS
said	VBN
it	DT
is	VBZ
considering	VBG
a	DT
number	NN
of	IN
financing	NN
alternatives	DT
,	,
including	VBG
seeking	VBG
increases	NNS
in	IN
its	DT
credit	NN
lines	NNS
.	.
	
Traditional	DT
declined	VBD
to	DT
estimate	NN
the	DT
amount	NN
of	IN
the	DT
loss	NN
and	CC
would	MD
n't	RB
say	VBP
if	IN
it	DT
expects	VBZ
to	DT
show	NN
a	DT
profit	NN
for	IN
the	DT
year	NN
.	.
	
In	IN
the	DT
year	NN
ended	VBD
June	NNP
30	CD
,	,
1988	CD
,	,
Traditional	DT
reported	VBN
net	JJ
income	NN
of	IN
$	$
4.9	CD
million	CD
,	,
or	CC
$	$
1.21	DT
a	DT
share	NN
.	.
	
The	NNP
company	NN
did	VBD
n't	RB
break	DT
out	IN
its	DT
fourth-quarter	NN
results	NNS
.	.
	
In	IN
the	DT
latest	JJS
nine	CD
months	NNS
net	JJ
income	NN
was	VBD
$	$
4.7	DT
million	CD
,	,
or	CC
$	$
1.31	DT
a	DT
share	NN
,	,
on	IN
revenue	NN
of	IN
$	$
44.3	DT
million	CD
.	.
	
Separately	RB
,	,
the	DT
company	NN
said	VBN
it	DT
would	MD
file	NN
a	DT
delayed	VBD
fiscal-year	DT
report	NN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
``	``
within	IN
approximately	RB
45	CD
days	NNS
.	.
''	''
	
It	PRP
said	VBN
the	DT
delay	DT
resulted	VBN
from	IN
difficulties	NNS
in	IN
resolving	DT
its	DT
accounting	DT
of	IN
a	DT
settlement	NN
with	IN
the	DT
Federal	NNP
Trade	NN
Commission	NNP
.	.
	
Under	IN
an	DT
agreement	NN
filed	VBN
in	IN
federal	JJ
court	NN
in	IN
August	NNP
to	DT
settle	DT
FTC	DT
objections	NNS
to	DT
some	DT
Traditional	DT
sales	NNS
practices	DT
,	,
Traditional	DT
said	VBN
it	DT
would	MD
establish	DT
a	DT
$	$
250,000	DT
trust	NN
fund	NN
to	DT
provide	VBP
refunds	DT
to	DT
certain	JJ
customers	NNS
.	.
	
Information	DT
International	NNP
Inc.	DT
said	VBD
it	DT
was	VBD
sued	VBD
by	IN
a	DT
buyer	NN
of	IN
its	DT
computerized	VBN
newspaper-publishing	DT
system	NN
,	,
alleging	VBG
that	WDT
the	DT
company	NN
failed	VBN
to	DT
correct	DT
deficiencies	DT
in	IN
the	DT
system	NN
.	.
	
A	DT
spokesman	NN
for	IN
Information	DT
International	NNP
said	VBN
the	DT
lawsuit	NN
by	IN
two	CD
units	NNS
of	IN
Morris	DT
Communications	NNPS
Corp.	DT
seeks	DT
restitution	DT
of	IN
the	DT
system	NN
's	VBZ
about	IN
$	$
3	CD
million	CD
purchase	NN
price	NN
and	CC
cancellation	DT
of	IN
a	DT
software	DT
license	VBP
provided	VBN
by	IN
the	DT
Morris	DT
units	NNS
to	DT
Information	DT
International	NNP
for	IN
alleged	VBN
failure	NN
to	DT
pay	NN
royalties	DT
.	.
	
Information	DT
International	NNP
said	VBN
it	DT
believes	VBZ
that	WDT
the	DT
complaints	DT
,	,
filed	VBN
in	IN
federal	JJ
court	NN
in	IN
Georgia	DT
,	,
are	VBP
without	IN
merit	NN
.	.
	
Closely	DT
held	VBN
Morris	DT
Communications	NNPS
is	VBZ
based	VBN
in	IN
Augusta	DT
,	,
Ga	NNP
.	.
	
The	NNP
units	NNS
that	WDT
filed	VBN
the	DT
suit	NN
are	VBP
Southeastern	DT
Newspapers	DT
Corp.	DT
and	CC
Florida	DT
Publishing	DT
Co	NNP
.	.
	
Syms	DT
Corp.	DT
completed	VBN
the	DT
sale	NN
of	IN
its	DT
A.	DT
Sulka	DT
&	&
Co.	DT
subsidiary	NN
,	,
a	DT
men	NNS
's	VBZ
luxury	DT
haberdashery	DT
,	,
to	DT
Luxco	DT
Investments	NNPS
.	.
	
Terms	DT
were	VBD
n't	RB
disclosed	VBN
.	.
	
As	IN
Syms	DT
's	VBZ
``	``
core	NN
business	NN
of	IN
off-price	DT
retailing	NN
grows	DT
,	,
a	DT
small	JJ
subsidiary	NN
that	WDT
is	VBZ
operationally	DT
unrelated	DT
becomes	VBZ
a	DT
difficult	JJ
distraction	DT
,	,
''	''
said	VBN
Marcy	DT
Syms	DT
,	,
president	NN
of	IN
the	DT
parent	NN
,	,
in	IN
a	DT
statement	NN
.	.
	
A	DT
spokeswoman	DT
said	VBN
Sulka	DT
operates	VBZ
a	DT
total	JJ
of	IN
seven	CD
stores	NNS
in	IN
the	DT
U.S.	DT
and	CC
overseas	RB
.	.
	
Syms	DT
operates	VBZ
25	CD
off-price	DT
apparel	DT
stores	NNS
in	IN
the	DT
U.S.	DT
.	.
	
The	NNP
oil	DT
industry	NN
's	VBZ
middling	DT
profits	NNS
could	MD
persist	DT
through	IN
the	DT
rest	NN
of	IN
the	DT
year	NN
.	.
	
Major	NNP
oil	DT
companies	NNS
in	IN
the	DT
next	JJ
few	JJ
days	NNS
are	VBP
expected	VBN
to	DT
report	NN
much	JJ
less	RBR
robust	JJ
earnings	NNS
than	IN
they	DT
did	VBD
for	IN
the	DT
third	JJ
quarter	NN
a	DT
year	NN
ago	IN
,	,
largely	RB
reflecting	VBG
deteriorating	VBG
chemical	DT
prices	NNS
and	CC
gasoline	DT
profitability	DT
.	.
	
The	NNP
gasoline	DT
picture	NN
may	MD
improve	DT
this	DT
quarter	NN
,	,
but	CC
chemicals	DT
are	VBP
likely	JJ
to	DT
remain	VBP
weak	JJ
,	,
industry	NN
executives	NNS
and	CC
analysts	NNS
say	VBP
,	,
reducing	VBG
chances	NNS
that	WDT
profits	NNS
could	MD
equal	JJ
their	DT
year-earlier	JJ
performance	NN
.	.
	
The	NNP
industry	NN
is	VBZ
``	``
seeing	VBG
a	DT
softening	DT
somewhat	RB
in	IN
volume	NN
and	CC
certainly	RB
in	IN
price	NN
in	IN
petrochemicals	DT
,	,
''	''
Glenn	NNP
Cox	DT
,	,
president	NN
of	IN
Phillips	DT
Petroleum	DT
Co.	DT
,	,
said	VBN
in	IN
an	DT
interview	NN
.	.
	
``	``
That	IN
change	NN
will	MD
obviously	DT
impact	NN
third	JJ
and	CC
fourth	JJ
quarter	NN
earnings	NNS
''	''
for	IN
the	DT
industry	NN
in	IN
general	NN
,	,
he	DT
added	VBN
.	.
	
He	DT
did	VBD
n't	RB
forecast	NN
Phillips	DT
's	VBZ
results	NNS
.	.
	
But	CC
securities	NNS
analysts	NNS
say	VBP
Phillips	DT
will	MD
be	DT
among	IN
the	DT
companies	NNS
hard-hit	DT
by	IN
weak	JJ
chemical	DT
prices	NNS
and	CC
will	MD
probably	RB
post	NN
a	DT
drop	NN
in	IN
third-quarter	NN
earnings	NNS
.	.
	
So	IN
,	,
too	RB
,	,
many	JJ
analysts	NNS
predict	VBP
,	,
will	MD
Exxon	DT
Corp.	DT
,	,
Chevron	DT
Corp.	DT
and	CC
Amoco	DT
Corp	NNP
.	.
	
Typical	DT
is	VBZ
what	WP
happened	VBD
to	DT
the	DT
price	NN
of	IN
ethylene	DT
,	,
a	DT
major	JJ
commodity	DT
chemical	DT
produced	VBN
in	IN
vast	DT
amounts	NNS
by	IN
many	JJ
oil	DT
companies	NNS
.	.
	
It	PRP
has	VBZ
plunged	VBD
13	CD
%	%
since	IN
July	NNP
to	DT
around	IN
26	CD
cents	NNS
a	DT
pound	DT
.	.
	
A	DT
year	NN
ago	IN
ethylene	DT
sold	VBN
for	IN
33	DT
cents	NNS
,	,
peaking	DT
at	IN
about	IN
34	CD
cents	NNS
last	JJ
December	NNP
.	.
	
A	DT
big	JJ
reason	NN
for	IN
the	DT
chemical	DT
price	NN
retreat	DT
is	VBZ
overexpansion	DT
.	.
	
Beginning	DT
in	IN
mid-1987	DT
,	,
prices	NNS
began	VBD
accelerating	DT
as	IN
a	DT
growing	VBG
U.S.	DT
economy	NN
and	CC
the	DT
weak	JJ
dollar	NN
spurred	DT
demand	NN
.	.
	
Companies	NNPS
added	VBN
capacity	NN
furiously	DT
.	.
	
Now	RB
,	,
greatly	DT
increased	VBN
supplies	DT
are	VBP
on	IN
the	DT
market	NN
,	,
while	IN
the	DT
dollar	NN
is	VBZ
stronger	DT
,	,
and	CC
domestic	JJ
economic	JJ
growth	NN
is	VBZ
slower	JJR
.	.
	
Third-quarter	DT
profits	NNS
from	IN
gasoline	DT
were	VBD
weaker	DT
.	.
	
``	``
Refining	DT
margins	NNS
were	VBD
so	IN
good	JJ
in	IN
the	DT
third	JJ
quarter	NN
of	IN
last	JJ
year	NN
and	CC
generally	RB
not	RB
very	RB
good	JJ
this	DT
year	NN
,	,
''	''
said	VBN
William	NNP
Randol	DT
,	,
a	DT
securities	NNS
analyst	NN
at	IN
First	NNP
Boston	NNP
Corp	NNP
.	.
	
Oil	DT
company	NN
refineries	DT
ran	VBD
flat	JJ
out	IN
to	DT
prepare	DT
for	IN
a	DT
robust	JJ
holiday	DT
driving	VBG
season	NN
in	IN
July	NNP
and	CC
August	NNP
that	WDT
did	VBD
n't	RB
materialize	DT
.	.
	
The	NNP
excess	JJ
supply	NN
pushed	VBN
gasoline	DT
prices	NNS
down	IN
in	IN
that	WDT
period	NN
.	.
	
In	IN
addition	NN
,	,
crude	DT
oil	DT
prices	NNS
were	VBD
up	IN
some	DT
from	IN
a	DT
year	NN
earlier	JJR
,	,
further	JJ
pressuring	DT
profitability	DT
.	.
	
Refiners	DT
say	VBP
margins	NNS
picked	DT
up	IN
in	IN
September	NNP
,	,
and	CC
many	JJ
industry	NN
officials	NNS
believe	VBP
gasoline	DT
profits	NNS
will	MD
rebound	NN
this	DT
quarter	NN
,	,
though	RB
still	RB
not	RB
to	DT
the	DT
level	NN
of	IN
1988	CD
's	VBZ
fourth	JJ
quarter	NN
.	.
	
During	IN
the	DT
1988	CD
second	NN
half	DT
,	,
many	JJ
companies	NNS
posted	VBN
record	NN
gasoline	DT
and	CC
chemical	DT
profits	NNS
.	.
	
Crude	DT
oil	DT
production	NN
may	MD
turn	NN
out	IN
to	DT
be	DT
the	DT
most	RBS
surprising	DT
element	DT
of	IN
companies	NNS
'	'
earnings	NNS
this	DT
year	NN
.	.
	
Prices	NNS
--	--
averaging	DT
roughly	RB
$	$
2	CD
a	DT
barrel	DT
higher	JJR
in	IN
the	DT
third	JJ
quarter	NN
than	IN
a	DT
year	NN
earlier	JJR
--	--
have	VBP
stayed	DT
well	RB
above	IN
most	RBS
companies	NNS
'	'
expectations	NNS
.	.
	
Demand	DT
has	VBZ
been	VBN
much	JJ
stronger	DT
than	IN
anticipated	VBN
,	,
and	CC
it	DT
typically	DT
accelerates	DT
in	IN
the	DT
fourth	JJ
quarter	NN
.	.
	
``	``
We	DT
could	MD
see	VBP
higher	JJR
oil	DT
prices	NNS
this	DT
year	NN
,	,
''	''
said	VBN
Bryan	DT
Jacoboski	DT
,	,
an	DT
analyst	NN
at	IN
PaineWebber	DT
Inc	NNP
.	.
	
That	IN
will	MD
translate	DT
into	IN
sharply	RB
higher	JJR
production	NN
profits	NNS
,	,
particularly	RB
compared	VBN
with	IN
last	JJ
year	NN
when	DT
oil	DT
prices	NNS
steadily	DT
fell	VBD
to	DT
below	IN
$	$
13	CD
a	DT
barrel	DT
in	IN
the	DT
fourth	JJ
quarter	NN
.	.
	
While	IN
oil	DT
prices	NNS
have	VBP
been	VBN
better	JJR
than	IN
expected	VBN
,	,
natural	JJ
gas	NN
prices	NNS
have	VBP
been	VBN
worse	DT
.	.
	
In	IN
the	DT
third	JJ
quarter	NN
,	,
they	DT
averaged	DT
about	IN
5	CD
%	%
less	RBR
than	IN
they	DT
were	VBD
in	IN
1988	CD
.	.
	
The	NNP
main	JJ
reason	NN
remains	VBZ
weather	DT
.	.
	
Last	JJ
summer	NN
was	VBD
notable	JJ
for	IN
a	DT
heat	DT
wave	DT
and	CC
drought	DT
that	WDT
caused	VBN
utilities	NNS
to	DT
burn	DT
more	RBR
natural	JJ
gas	NN
to	DT
feed	DT
increased	VBN
electrical	DT
demand	NN
from	IN
air	NN
conditioning	DT
use	NN
.	.
	
This	DT
summer	NN
,	,
on	IN
the	DT
other	JJ
hand	NN
,	,
had	VBN
milder	DT
weather	DT
than	IN
usual	JJ
.	.
	
``	``
We	DT
've	VBP
been	VBN
very	RB
disappointed	DT
in	IN
the	DT
performance	NN
of	IN
natural	JJ
gas	NN
prices	NNS
,	,
''	''
said	VBN
Mr.	DT
Cox	DT
,	,
Phillips	DT
's	VBZ
president	NN
.	.
	
``	``
The	NNP
lagging	DT
gas	NN
price	NN
is	VBZ
not	RB
going	VBG
to	DT
assist	DT
fourth	JJ
quarter	NN
performance	NN
as	IN
many	JJ
had	VBN
expected	VBN
.	.
''	''
	
Going	DT
into	IN
the	DT
fourth	JJ
quarter	NN
,	,
natural	JJ
gas	NN
prices	NNS
are	VBP
anywhere	RB
from	IN
8	CD
%	%
to	DT
17	CD
%	%
lower	JJR
than	IN
a	DT
year	NN
earlier	JJR
.	.
	
For	IN
instance	NN
,	,
natural	JJ
gas	NN
currently	RB
produced	VBN
along	IN
the	DT
Gulf	DT
Coast	DT
is	VBZ
selling	NN
on	IN
the	DT
spot	NN
market	NN
for	IN
around	IN
$	$
1.47	DT
a	DT
thousand	CD
cubic	DT
feet	DT
,	,
down	IN
13	CD
%	%
from	IN
$	$
1.69	DT
a	DT
thousand	CD
cubic	DT
feet	DT
a	DT
year	NN
ago	IN
.	.
	
The	NNP
Bush	NNP
administration	NN
,	,
trying	VBG
to	DT
blunt	DT
growing	VBG
demands	DT
from	IN
Western	JJ
Europe	NNP
for	IN
a	DT
relaxation	DT
of	IN
controls	NNS
on	IN
exports	NNS
to	DT
the	DT
Soviet	NNP
bloc	DT
,	,
is	VBZ
questioning	DT
whether	IN
Italy	NNP
's	VBZ
Ing	DT
.	.
C.	DT
Olivetti	DT
&	&
Co.	DT
supplied	DT
militarily	DT
valuable	DT
technology	NN
to	DT
the	DT
Soviets	DT
.	.
	
Most	RBS
of	IN
the	DT
Western	JJ
European	NNP
members	NNS
of	IN
Coordinating	DT
Committee	NNP
on	IN
Multilateral	DT
Export	DT
Controls	DT
,	,
the	DT
unofficial	DT
forum	DT
through	IN
which	DT
the	DT
U.S.	DT
and	CC
its	DT
allies	NNS
align	DT
their	DT
export-control	DT
policies	NNS
,	,
are	VBP
expected	VBN
to	DT
argue	VBP
for	IN
more	RBR
liberal	DT
export	DT
rules	NNS
at	IN
a	DT
meeting	NN
to	DT
be	DT
held	VBN
in	IN
Paris	NNP
Oct.	DT
25	CD
and	CC
26	CD
.	.
	
They	DT
plan	NN
to	DT
press	NN
specifically	DT
for	IN
a	DT
relaxation	DT
of	IN
rules	NNS
governing	VBG
exports	NNS
of	IN
machine	DT
tools	DT
,	,
computers	NNS
and	CC
other	JJ
high-technology	DT
products	NNS
.	.
	
But	CC
the	DT
Bush	NNP
administration	NN
says	VBZ
it	DT
wants	VBZ
to	DT
see	VBP
evidence	NN
that	WDT
all	RB
Cocom	DT
members	NNS
are	VBP
complying	DT
fully	RB
with	IN
existing	VBG
export-control	DT
procedures	NNS
before	IN
it	DT
will	MD
support	NN
further	JJ
liberalization	DT
.	.
	
To	NN
make	VBP
its	DT
point	NN
,	,
it	DT
is	VBZ
challenging	VBG
the	DT
Italian	DT
government	NN
to	DT
explain	DT
reports	NNS
that	WDT
Olivetti	DT
may	MD
have	VBP
supplied	DT
the	DT
Soviet	NNP
Union	NNP
with	IN
sophisticated	JJ
computer-driven	JJ
devices	DT
that	WDT
could	MD
be	DT
used	VBN
to	DT
build	DT
parts	NNS
for	IN
combat	NN
aircraft	NN
.	.
	
The	NNP
London	NNP
Sunday	NNP
Times	NNP
,	,
which	DT
first	JJ
reported	VBN
the	DT
U.S.	DT
concerns	DT
,	,
cited	VBD
a	DT
U.S.	DT
intelligence	NN
report	NN
as	IN
the	DT
source	NN
of	IN
the	DT
allegations	NNS
that	WDT
Olivetti	DT
exported	DT
$	$
25	CD
million	CD
in	IN
``	``
embargoed	DT
,	,
state-of-the-art	DT
,	,
flexible	DT
manufacturing	VBG
systems	NNS
to	DT
the	DT
Soviet	NNP
aviation	NN
industry	NN
.	.
''	''
	
Olivetti	DT
reportedly	DT
began	VBD
shipping	DT
these	DT
tools	DT
in	IN
1984	CD
.	.
	
A	DT
State	NNP
Department	NNP
spokesman	NN
acknowledged	VBD
that	WDT
the	DT
U.S.	DT
is	VBZ
discussing	DT
the	DT
allegations	NNS
with	IN
the	DT
Italian	DT
government	NN
and	CC
Cocom	DT
,	,
but	CC
declined	VBD
to	DT
confirm	DT
any	DT
details	NNS
.	.
	
Italian	DT
President	NNP
Francesco	DT
Cossiga	DT
promised	VBN
a	DT
quick	DT
investigation	NN
into	IN
whether	IN
Olivetti	DT
broke	VBD
Cocom	DT
rules	NNS
.	.
	
President	NNP
Bush	NNP
called	VBN
his	DT
attention	NN
to	DT
the	DT
matter	NN
during	IN
the	DT
Italian	DT
leader	NN
's	VBZ
visit	DT
here	RB
last	JJ
week	NN
.	.
	
Olivetti	DT
has	VBZ
denied	VBD
that	WDT
it	DT
violated	DT
Cocom	DT
rules	NNS
,	,
asserting	DT
that	WDT
the	DT
reported	VBN
shipments	NNS
were	VBD
properly	DT
licensed	DT
by	IN
the	DT
Italian	DT
authorities	DT
.	.
	
Although	IN
the	DT
legality	DT
of	IN
these	DT
sales	NNS
is	VBZ
still	RB
an	DT
open	JJ
question	NN
,	,
the	DT
disclosure	NN
could	MD
n't	RB
be	DT
better	JJR
timed	DT
to	DT
support	NN
the	DT
position	NN
of	IN
export-control	DT
hawks	DT
in	IN
the	DT
Pentagon	NNP
and	CC
the	DT
intelligence	NN
community	NN
.	.
	
``	``
It	PRP
seems	VBZ
to	DT
me	DT
that	WDT
a	DT
story	NN
like	JJ
this	DT
breaks	DT
just	RB
before	IN
every	DT
important	JJ
Cocom	DT
meeting	NN
,	,
''	''
said	VBN
a	DT
Washington	NNP
lobbyist	DT
for	IN
a	DT
number	NN
of	IN
U.S.	DT
computer	NN
companies	NNS
.	.
	
The	NNP
Bush	NNP
administration	NN
has	VBZ
sent	DT
conflicting	DT
signals	DT
about	IN
its	DT
export-control	DT
policies	NNS
,	,
reflecting	VBG
unhealed	DT
divisions	NNS
among	IN
several	JJ
competing	VBG
agencies	NNS
.	.
	
Last	JJ
summer	NN
,	,
Mr.	DT
Bush	NNP
moved	VBD
the	DT
administration	NN
in	IN
the	DT
direction	DT
of	IN
gradual	JJ
liberalization	DT
when	DT
he	DT
told	VBN
a	DT
North	NNP
Atlantic	NNP
Treaty	DT
Organization	DT
meeting	NN
that	WDT
he	DT
would	MD
allow	DT
some	DT
exceptions	DT
to	DT
the	DT
Cocom	DT
embargo	DT
of	IN
strategic	JJ
goods	NNS
.	.
	
But	CC
more	RBR
recently	RB
,	,
the	DT
Pentagon	NNP
and	CC
the	DT
Commerce	NNP
Department	NNP
openly	DT
feuded	DT
over	IN
the	DT
extent	NN
to	DT
which	DT
Cocom	DT
should	MD
liberalize	DT
exports	NNS
of	IN
personal	JJ
computers	NNS
to	DT
the	DT
bloc	DT
.	.
	
However	RB
,	,
these	DT
agencies	NNS
generally	RB
agree	DT
that	WDT
the	DT
West	NNP
should	MD
be	DT
cautious	DT
about	IN
any	DT
further	JJ
liberalization	DT
.	.
	
``	``
There	DT
's	VBZ
no	RB
evidence	NN
that	WDT
the	DT
Soviet	NNP
program	NN
to	DT
(	(
illegally	RB
)	)
acquire	DT
Western	JJ
technology	NN
has	VBZ
diminished	VBN
,	,
''	''
said	VBN
a	DT
State	NNP
Department	NNP
spokesman	NN
.	.
	
Salomon	DT
Brothers	DT
International	NNP
Ltd.	DT
,	,
a	DT
British	JJ
subsidiary	NN
of	IN
Salomon	DT
Inc.	DT
,	,
announced	VBN
it	DT
will	MD
issue	NN
warrants	DT
on	IN
shares	NNS
of	IN
Hong	NNP
Kong	NNP
Telecommunications	NNPS
Ltd	NNP
.	.
	
The	NNP
move	NN
closely	RB
follows	VBZ
a	DT
similar	JJ
offer	NN
by	IN
Salomon	DT
of	IN
warrants	DT
for	IN
shares	NNS
of	IN
Hongkong	DT
&	&
Shanghai	DT
Banking	NNP
Corp	NNP
.	.
	
Under	IN
the	DT
latest	JJS
offer	NN
,	,
HK$	DT
62.5	DT
million	CD
(	(
US$	DT
8	CD
million	CD
)	)
of	IN
three-year	JJ
warrants	DT
will	MD
be	DT
issued	VBN
in	IN
London	NNP
,	,
each	DT
giving	VBG
buyers	NNS
the	DT
right	NN
to	DT
buy	DT
one	CD
Hong	NNP
Kong	NNP
Telecommunications	NNPS
share	NN
at	IN
a	DT
price	NN
to	DT
be	DT
determined	DT
Friday	NNP
.	.
	
The	NNP
50	CD
million	CD
warrants	DT
will	MD
be	DT
priced	VBN
at	IN
HK$	DT
1.25	DT
each	DT
and	CC
are	VBP
expected	VBN
to	DT
carry	DT
a	DT
premium	NN
to	DT
the	DT
share	NN
price	NN
of	IN
about	IN
26	CD
%	%
.	.
	
In	IN
trading	NN
on	IN
the	DT
Stock	NNP
Exchange	NNP
of	IN
Hong	NNP
Kong	NNP
,	,
the	DT
shares	NNS
closed	VBN
Wednesday	NNP
at	IN
HK$	DT
4.80	DT
each	DT
.	.
	
At	IN
this	DT
price	NN
,	,
the	DT
shares	NNS
would	MD
have	VBP
to	DT
rise	NN
above	IN
HK$	DT
6.05	DT
for	IN
subscribers	NNS
to	DT
Salomon	DT
's	VBZ
issue	NN
to	DT
profitably	DT
convert	DT
their	DT
warrants	DT
.	.
	
While	IN
Hong	NNP
Kong	NNP
companies	NNS
have	VBP
in	IN
the	DT
past	NN
issued	VBN
warrants	DT
on	IN
their	DT
own	JJ
shares	NNS
,	,
Salomon	DT
's	VBZ
warrants	DT
are	VBP
the	DT
first	JJ
here	RB
to	DT
be	DT
issued	VBN
by	IN
a	DT
third	JJ
party	NN
.	.
	
Salomon	DT
will	MD
``	``
cover	NN
''	''
the	DT
warrants	DT
by	IN
buying	NN
sufficient	DT
shares	NNS
,	,
or	CC
options	NNS
to	DT
purchase	NN
shares	NNS
,	,
to	DT
cover	NN
its	DT
entire	JJ
position	NN
.	.
	
Bankers	NNPS
said	VBN
warrants	DT
for	IN
Hong	NNP
Kong	NNP
stocks	NNS
are	VBP
attractive	DT
because	IN
they	DT
give	VBP
foreign	JJ
investors	NNS
,	,
wary	JJ
of	IN
volatility	DT
in	IN
the	DT
colony	NN
's	VBZ
stock	NN
market	NN
,	,
an	DT
opportunity	NN
to	DT
buy	DT
shares	NNS
without	IN
taking	VBG
too	RB
great	JJ
a	DT
risk	NN
.	.
	
The	NNP
Hong	NNP
Kong	NNP
Telecommunications	NNPS
warrants	DT
should	MD
be	DT
attractive	DT
to	DT
buyers	NNS
in	IN
Europe	NNP
,	,
the	DT
bankers	NNS
added	VBN
,	,
because	IN
the	DT
group	NN
is	VBZ
one	CD
of	IN
a	DT
handful	DT
of	IN
blue-chip	DT
stocks	NNS
on	IN
the	DT
Hong	NNP
Kong	NNP
market	NN
that	WDT
has	VBZ
international	JJ
appeal	NN
.	.
	
Financial	NNP
Corp.	DT
of	IN
Santa	DT
Barbara	NNP
filed	VBN
suit	NN
against	IN
former	JJ
stock	NN
speculator	DT
Ivan	DT
F.	DT
Boesky	DT
and	CC
Drexel	NNP
Burnham	NNP
Lambert	NNP
Inc.	DT
,	,
charging	DT
they	DT
defrauded	DT
the	DT
thrift	NN
by	IN
concealing	DT
their	DT
relationship	DT
when	DT
persuading	DT
it	DT
to	DT
buy	DT
$	$
284	DT
million	CD
in	IN
high-yield	JJ
,	,
high-risk	JJ
junk	NN
bonds	NNS
.	.
	
In	IN
a	DT
suit	NN
filed	VBN
in	IN
federal	JJ
court	NN
Thursday	NNP
,	,
the	DT
S&L	DT
alleged	VBN
that	WDT
a	DT
``	``
disproportionate	DT
number	NN
''	''
of	IN
the	DT
bonds	NNS
it	DT
purchased	VBD
in	IN
1984	CD
declined	VBD
in	IN
value	NN
.	.
	
Financial	NNP
Corp.	DT
purchased	VBD
the	DT
bonds	NNS
,	,
the	DT
suit	NN
alleged	VBN
,	,
after	IN
Mr.	DT
Boesky	DT
and	CC
Drexel	NNP
negotiated	VBN
an	DT
agreement	NN
for	IN
Vagabond	DT
Hotels	NNPS
to	DT
purchase	NN
a	DT
51	DT
%	%
stake	NN
in	IN
the	DT
thrift	NN
for	IN
about	IN
$	$
34	CD
million	CD
.	.
	
Vagabond	DT
Hotels	NNPS
was	VBD
controlled	VBN
by	IN
Mr.	DT
Boesky	DT
,	,
who	WP
currently	RB
is	VBZ
serving	VBG
a	DT
prison	NN
term	NN
for	IN
securities	NNS
violations	NNS
.	.
	
Officials	DT
at	IN
Drexel	NNP
said	VBN
they	DT
had	VBN
n't	RB
seen	VBN
the	DT
suit	NN
and	CC
thus	DT
could	MD
n't	RB
comment	NN
.	.
	
In	IN
addition	NN
to	DT
$	$
33	DT
million	CD
compensatory	JJ
damages	NNS
,	,
the	DT
suit	NN
seeks	DT
$	$
100	CD
million	CD
in	IN
punitive	DT
damages	NNS
.	.
	
Also	RB
named	VBN
in	IN
the	DT
suit	NN
is	VBZ
Ivan	DT
F.	DT
Boesky	DT
Corp.	DT
and	CC
Northview	DT
Corp.	DT
,	,
the	DT
successor	NN
company	NN
to	DT
Vagabonds	DT
Hotels	NNPS
.	.
	
Northview	DT
officials	NNS
could	MD
n't	RB
be	DT
located	DT
.	.
	
Financial	NNP
Corp.	DT
said	VBD
it	DT
agreed	VBN
to	DT
buy	DT
the	DT
bonds	NNS
after	IN
a	DT
representative	NN
of	IN
Ivan	DT
F.	DT
Boesky	DT
Corp.	DT
visited	VBD
it	DT
in	IN
November	NNP
1983	CD
and	CC
said	VBN
Financial	NNP
Corp.	DT
could	MD
improve	DT
its	DT
financial	JJ
condition	NN
by	IN
purchasing	DT
the	DT
bonds	NNS
.	.
	
Shortly	DT
before	IN
the	DT
visit	DT
,	,
Mr.	DT
Boesky	DT
and	CC
Drexel	NNP
representives	DT
had	VBN
met	VBN
with	IN
Financial	NNP
Corp.	DT
officials	NNS
and	CC
had	VBN
signed	DT
a	DT
letter	NN
of	IN
intent	DT
to	DT
acquire	DT
the	DT
51	DT
%	%
stake	NN
in	IN
the	DT
company	NN
.	.
	
However	RB
,	,
the	DT
agreement	NN
was	VBD
canceled	VBN
in	IN
June	NNP
1984	CD
.	.
	
Financial	NNP
Corp.	DT
purchased	VBD
the	DT
bonds	NNS
in	IN
at	IN
least	JJS
70	DT
different	JJ
transactions	NNS
in	IN
1984	CD
and	CC
since	IN
then	RB
has	VBZ
realized	VBD
$	$
11	CD
million	CD
in	IN
losses	NNS
on	IN
them	DT
,	,
the	DT
company	NN
said	VBN
.	.
	
Ideal	DT
Basic	DT
Industries	NNPS
Inc.	DT
said	VBD
its	DT
directors	DT
reached	VBN
an	DT
agreement	NN
in	IN
principle	NN
calling	VBG
for	IN
HOFI	DT
North	NNP
America	NNP
Inc.	DT
to	TO
combine	DT
its	DT
North	NNP
American	JJ
cement	NN
holdings	NNS
with	IN
Ideal	DT
in	IN
a	DT
transaction	NN
that	WDT
will	MD
leave	VBP
Ideal	DT
's	VBZ
minority	NN
shareholders	NNS
with	IN
12.8	DT
%	%
of	IN
the	DT
combined	VBN
company	NN
.	.
	
HOFI	DT
,	,
the	DT
North	NNP
American	JJ
holding	VBG
company	NN
of	IN
Swiss	DT
concern	NN
Holderbank	DT
Financiere	NNP
Glaris	DT
Ltd.	DT
,	,
previously	RB
proposed	VBN
combining	DT
its	DT
100	CD
%	%
stake	NN
in	IN
St.	DT
Lawrence	DT
Cement	DT
Inc.	DT
and	CC
its	DT
60	CD
%	%
stake	NN
in	IN
Dundee	DT
Cement	DT
Co.	DT
with	IN
its	DT
67	DT
%	%
stake	NN
in	IN
Ideal	DT
.	.
	
But	CC
HOFI	DT
's	VBZ
first	JJ
offer	NN
would	MD
have	VBP
given	VBN
Ideal	DT
's	VBZ
other	JJ
shareholders	NNS
about	IN
10	CD
%	%
of	IN
the	DT
combined	VBN
company	NN
.	.
	
Ideal	DT
's	VBZ
directors	DT
rejected	VBD
that	WDT
offer	NN
,	,
although	IN
they	DT
said	VBN
they	DT
endorsed	VBD
the	DT
merger	NN
proposal	NN
.	.
	
Under	IN
the	DT
agreement	NN
,	,
HOFI	DT
will	MD
own	JJ
87.2	DT
%	%
of	IN
the	DT
combined	VBN
company	NN
.	.
	
Ideal	DT
's	VBZ
current	NN
operations	NNS
will	MD
represent	DT
about	IN
39.2	DT
%	%
of	IN
the	DT
combined	VBN
company	NN
.	.
	
The	NNP
transaction	NN
is	VBZ
subject	NN
to	DT
a	DT
definitive	DT
agreement	NN
and	CC
approval	NN
by	IN
Ideal	DT
shareholders	NNS
.	.
	
Ideal	DT
said	VBN
it	DT
expects	VBZ
to	DT
complete	JJ
the	DT
transaction	NN
early	JJ
next	JJ
year	NN
.	.
	
While	IN
corn	DT
and	CC
soybean	DT
prices	NNS
have	VBP
slumped	DT
well	RB
below	IN
their	DT
drought-induced	DT
peaks	NNS
of	IN
1988	CD
,	,
wheat	DT
prices	NNS
remain	VBP
stubbornly	RB
high	JJ
.	.
	
And	CC
they	DT
're	VBP
likely	JJ
to	DT
stay	DT
that	WDT
way	NN
for	IN
months	NNS
to	DT
come	VBN
,	,
analysts	NNS
say	VBP
.	.
	
For	IN
one	CD
thing	NN
,	,
even	RB
with	IN
many	JJ
farmers	DT
planting	VBG
more	RBR
winter	NN
wheat	DT
this	DT
year	NN
than	IN
last	JJ
,	,
tight	RB
wheat	DT
supplies	DT
are	VBP
likely	JJ
to	DT
support	NN
prices	NNS
well	RB
into	IN
1990	CD
,	,
the	DT
analysts	NNS
say	VBP
.	.
	
And	CC
if	IN
rain	DT
does	VBZ
n't	RB
fall	NN
soon	RB
across	IN
many	JJ
of	IN
the	DT
Great	NNP
Plains	DT
'	'
wheat-growing	DT
areas	NNS
,	,
yields	NNS
in	IN
the	DT
crop	DT
now	RB
being	VBG
planted	DT
could	MD
be	DT
reduced	VBN
,	,
further	JJ
squeezing	DT
supplies	DT
.	.
	
Also	RB
supporting	VBG
prices	NNS
are	VBP
expectations	NNS
that	WDT
the	DT
Soviet	NNP
Union	NNP
will	MD
place	NN
substantial	JJ
buying	NN
orders	NNS
over	IN
the	DT
next	JJ
few	JJ
months	NNS
.	.
	
By	IN
next	JJ
May	NNP
31	CD
,	,
stocks	NNS
of	IN
U.S.	DT
wheat	DT
to	DT
be	DT
carried	VBD
over	IN
into	IN
the	DT
next	JJ
season	NN
--	--
before	IN
the	DT
winter	NN
wheat	DT
now	RB
being	VBG
planted	DT
is	VBZ
harvested	DT
--	--
are	VBP
projected	DT
to	DT
drop	NN
to	DT
443	DT
million	CD
bushels	DT
.	.
	
That	IN
would	MD
be	DT
the	DT
lowest	JJS
level	NN
since	IN
the	DT
early	JJ
1970s	CD
.	.
	
Stocks	NNS
were	VBD
698	DT
million	CD
bushels	DT
on	IN
May	NNP
31	CD
of	IN
this	DT
year	NN
.	.
	
In	IN
response	NN
to	DT
dwindling	DT
domestic	JJ
supplies	DT
,	,
Agriculture	DT
Secretary	NNP
Clayton	DT
Yeutter	DT
last	JJ
month	NN
said	VBN
the	DT
U.S.	DT
government	NN
would	MD
slightly	RB
increase	NN
the	DT
number	NN
of	IN
acres	DT
farmers	DT
can	MD
plant	NN
in	IN
wheat	DT
for	IN
next	JJ
year	NN
and	CC
still	RB
qualify	VBP
for	IN
federal	JJ
support	NN
payments	NNS
.	.
	
The	NNP
government	NN
estimates	NNS
that	WDT
the	DT
new	JJ
plan	NN
will	MD
boost	DT
production	NN
next	JJ
year	NN
by	IN
about	IN
66	CD
million	CD
bushels	DT
.	.
	
It	PRP
now	RB
estimates	NNS
production	NN
for	IN
next	JJ
year	NN
at	IN
just	RB
under	IN
2.6	DT
billion	CD
bushels	DT
,	,
compared	VBN
with	IN
this	DT
year	NN
's	VBZ
estimated	VBN
2.04	DT
billion	CD
and	CC
a	DT
drought-stunted	DT
1.81	DT
billion	CD
in	IN
1988	CD
.	.
	
But	CC
the	DT
full	JJ
effect	NN
on	IN
prices	NNS
of	IN
the	DT
winter	NN
wheat	DT
now	RB
being	VBG
planted	DT
wo	MD
n't	RB
be	DT
felt	DT
until	IN
the	DT
second	NN
half	DT
of	IN
next	JJ
year	NN
.	.
	
Until	DT
then	RB
,	,
limited	VBN
stocks	NNS
are	VBP
likely	JJ
to	DT
keep	VBP
prices	NNS
near	IN
the	DT
$	$
4-a-bushel	DT
level	NN
,	,
analysts	NNS
say	VBP
.	.
	
On	IN
the	DT
Chicago	NNP
Board	NNP
of	IN
Trade	NN
Friday	NNP
,	,
wheat	DT
for	IN
December	NNP
delivery	NN
settled	VBD
at	IN
$	$
4.0675	DT
a	DT
bushel	DT
,	,
unchanged	JJ
.	.
	
In	IN
theory	NN
at	IN
least	JJS
,	,
tight	RB
supplies	DT
next	JJ
spring	NN
could	MD
leave	VBP
the	DT
wheat	DT
futures	NNS
market	NN
susceptible	DT
to	DT
a	DT
supply-demand	DT
squeeze	NN
,	,
said	VBN
Daniel	DT
Basse	DT
,	,
a	DT
futures	NNS
analyst	NN
with	IN
AgResource	DT
Co.	DT
in	IN
Chicago	NNP
.	.
	
Such	JJ
a	DT
situation	DT
can	MD
wreak	DT
havoc	DT
,	,
as	IN
was	VBD
shown	VBN
by	IN
the	DT
emergency	NN
that	WDT
developed	VBN
in	IN
soybean	DT
futures	NNS
trading	NN
this	DT
summer	NN
on	IN
the	DT
Chicago	NNP
Board	NNP
of	IN
Trade	NN
.	.
	
In	IN
July	NNP
,	,
the	DT
CBOT	DT
ordered	VBD
Ferruzzi	DT
Finanziaria	DT
S.p	NNP
.	.
A.	DT
to	TO
liquidate	DT
futures	NNS
positions	NNS
equal	JJ
to	DT
about	IN
23	CD
million	CD
bushels	DT
of	IN
soybeans	DT
.	.
	
The	NNP
exchange	NN
said	VBN
it	DT
feared	VBD
that	WDT
some	DT
members	NNS
would	MD
n't	RB
be	DT
able	JJ
to	DT
find	DT
enough	JJ
soybeans	DT
to	DT
deliver	DT
and	CC
would	MD
have	VBP
to	DT
default	DT
on	IN
their	DT
contractual	DT
obligation	NN
to	DT
the	DT
Italian	DT
conglomerate	DT
,	,
which	DT
had	VBN
refused	VBD
requests	NNS
to	DT
reduce	DT
its	DT
holdings	NNS
.	.
	
Ferruzzi	DT
has	VBZ
denied	VBD
it	DT
was	VBD
trying	VBG
to	DT
manipulate	DT
the	DT
soybean	DT
futures	NNS
market	NN
.	.
	
Unseasonably	DT
hot	DT
,	,
dry	DT
weather	DT
across	IN
large	JJ
portions	NNS
of	IN
the	DT
Great	NNP
Plains	DT
and	CC
in	IN
wheat-growing	DT
areas	NNS
in	IN
Washington	NNP
and	CC
Oregon	DT
is	VBZ
threatening	VBG
to	DT
reduce	DT
the	DT
yield	NN
from	IN
this	DT
season	NN
's	VBZ
winter	NN
wheat	DT
crop	DT
,	,
said	VBN
Conrad	DT
Leslie	DT
,	,
a	DT
futures	NNS
analyst	NN
and	CC
head	NN
of	IN
Leslie	DT
Analytical	DT
in	IN
Chicago	NNP
.	.
	
For	IN
example	NN
,	,
in	IN
the	DT
Oklahoma	DT
panhandle	DT
,	,
40	CD
%	%
or	CC
more	RBR
of	IN
the	DT
topsoil	DT
is	VBZ
short	JJ
of	IN
moisture	DT
.	.
	
That	IN
figure	NN
climbs	DT
to	DT
about	IN
47	CD
%	%
in	IN
wheat-growing	DT
portions	NNS
of	IN
Kansas	DT
,	,
he	DT
said	VBN
.	.
	
The	NNP
Soviet	NNP
Union	NNP
has	VBZ
n't	RB
given	VBN
any	DT
clear	JJ
indication	NN
of	IN
its	DT
wheat	DT
purchase	NN
plans	NNS
,	,
but	CC
many	JJ
analysts	NNS
expect	VBP
Moscow	NNP
to	DT
place	NN
sizable	JJ
orders	NNS
for	IN
U.S.	DT
wheat	DT
in	IN
the	DT
next	JJ
few	JJ
months	NNS
,	,
further	JJ
supporting	VBG
prices	NNS
.	.
	
``	``
Wheat	DT
prices	NNS
will	MD
increasingly	RB
pivot	DT
off	IN
of	IN
Soviet	NNP
demand	NN
''	''
in	IN
coming	VBG
weeks	NNS
,	,
predicted	DT
Richard	NNP
Feltes	DT
,	,
vice	NN
president	NN
,	,
research	NN
,	,
for	IN
Refco	DT
Inc.	DT
in	IN
Chicago	NNP
.	.
	
Looking	DT
ahead	RB
to	DT
other	JJ
commodity	DT
markets	NNS
this	DT
week	NN
:	:
	
Orange	DT
Juice	DT
Traders	NNS
will	MD
be	DT
watching	VBG
to	DT
see	VBP
how	DT
long	JJ
and	CC
how	DT
far	JJ
the	DT
price	NN
decline	NN
that	WDT
began	VBD
Friday	NNP
will	MD
go	VBP
.	.
	
Late	JJ
Thursday	NNP
,	,
after	IN
the	DT
close	NN
of	IN
trading	NN
,	,
the	DT
market	NN
received	VBN
what	WP
would	MD
normally	DT
have	VBP
been	VBN
a	DT
bullish	DT
U.S.	DT
Department	NNP
of	IN
Agriculture	DT
estimate	NN
of	IN
the	DT
1989-90	DT
Florida	DT
orange	DT
crop	DT
.	.
	
It	PRP
was	VBD
near	IN
the	DT
low	JJ
range	NN
of	IN
estimates	NNS
,	,
at	IN
130	DT
million	CD
90-pound	DT
boxes	DT
,	,
compared	VBN
with	IN
146.6	DT
million	CD
boxes	DT
last	JJ
season	NN
.	.
	
However	RB
,	,
as	IN
expected	VBN
,	,
Brazil	DT
waited	DT
for	IN
the	DT
crop	DT
estimate	NN
to	DT
come	VBN
out	IN
and	CC
then	RB
cut	NN
the	DT
export	DT
price	NN
of	IN
its	DT
juice	NN
concentrate	DT
to	DT
about	IN
$	$
1.34	CD
a	DT
pound	DT
from	IN
around	IN
$	$
1.55	DT
.	.
	
Friday	NNP
's	VBZ
consequent	DT
selling	NN
of	IN
futures	NNS
contracts	NNS
erased	DT
whatever	DT
supportive	DT
effect	NN
the	DT
U.S.	DT
report	NN
might	MD
have	VBP
had	VBN
and	CC
sent	DT
the	DT
November	NNP
orange	DT
juice	NN
contract	NN
down	IN
as	IN
much	JJ
as	IN
6.55	DT
cents	NNS
a	DT
pound	DT
at	IN
one	CD
time	NN
.	.
	
It	PRP
settled	VBD
with	IN
a	DT
loss	NN
of	IN
4.95	DT
cents	NNS
at	IN
$	$
1.3210	DT
a	DT
pound	DT
.	.
	
Brazilian	DT
juice	NN
,	,
after	IN
a	DT
delay	DT
caused	VBN
by	IN
drought	DT
at	IN
the	DT
start	NN
of	IN
its	DT
crop	DT
season	NN
,	,
is	VBZ
beginning	NN
to	DT
arrive	DT
in	IN
the	DT
U.S.	DT
in	IN
large	JJ
quantities	DT
.	.
	
Brazil	DT
wants	VBZ
to	DT
stimulate	DT
demand	NN
for	IN
its	DT
product	NN
,	,
which	DT
is	VBZ
going	VBG
to	DT
be	DT
in	IN
plentiful	DT
supply	NN
.	.
	
The	NNP
price	NN
cut	NN
,	,
one	CD
analyst	NN
said	VBN
,	,
appeared	VBD
to	DT
be	DT
aimed	VBN
even	RB
more	RBR
at	IN
Europe	NNP
,	,
where	DT
consumption	DT
of	IN
Brazilian	DT
juice	NN
has	VBZ
fallen	VBN
.	.
	
It	PRP
's	VBZ
a	DT
dollar-priced	DT
product	NN
,	,
and	CC
the	DT
strong	JJ
dollar	NN
has	VBZ
made	VBN
it	DT
more	RBR
expensive	JJ
in	IN
Europe	NNP
,	,
the	DT
analyst	NN
said	VBN
.	.
	
New	NNP
York	NNP
futures	NNS
prices	NNS
have	VBP
dropped	VBN
significantly	RB
from	IN
more	RBR
than	IN
$	$
2	CD
a	DT
pound	DT
at	IN
midyear	DT
.	.
	
Barring	DT
a	DT
cold	NN
snap	DT
or	CC
other	JJ
crop	DT
problems	NNS
in	IN
the	DT
growing	VBG
areas	NNS
,	,
downward	DT
pressure	NN
on	IN
prices	NNS
is	VBZ
likely	JJ
to	DT
continue	DT
into	IN
January	NNP
,	,
when	DT
harvesting	DT
and	CC
processing	NN
of	IN
oranges	DT
in	IN
Florida	DT
reach	VBP
their	DT
peak	NN
,	,
the	DT
analyst	NN
said	VBN
.	.
	
Energy	NNP
	
Although	IN
some	DT
analysts	NNS
look	VBP
for	IN
profit-taking	DT
in	IN
the	DT
wake	NN
of	IN
Friday	NNP
's	VBZ
leap	DT
in	IN
crude	DT
oil	DT
prices	NNS
,	,
last	JJ
week	NN
's	VBZ
rally	NN
is	VBZ
generally	RB
expected	VBN
to	DT
continue	DT
this	DT
week	NN
.	.
	
``	``
I	DT
would	MD
continue	DT
to	DT
look	VBP
for	IN
a	DT
stable	DT
crude	DT
market	NN
,	,
at	IN
least	JJS
in	IN
futures	NNS
''	''
trading	NN
,	,
said	VBN
William	NNP
Hinton	DT
,	,
an	DT
energy	NN
futures	NNS
broker	NN
with	IN
Stotler	DT
&	&
Co	NNP
.	.
	
Friday	NNP
capped	DT
a	DT
week	NN
of	IN
steadily	DT
rising	VBG
crude	DT
oil	DT
prices	NNS
in	IN
both	DT
futures	NNS
and	CC
spot	NN
markets	NNS
.	.
	
On	IN
the	DT
New	NNP
York	NNP
Mercantile	NNP
Exchange	NNP
,	,
West	NNP
Texas	NNP
Intermediate	DT
crude	DT
for	IN
November	NNP
delivery	NN
finished	DT
at	IN
$	$
20.89	DT
a	DT
barrel	DT
,	,
up	IN
42	CD
cents	NNS
on	IN
the	DT
day	NN
.	.
	
On	IN
European	NNP
markets	NNS
,	,
meanwhile	RB
,	,
spot	NN
prices	NNS
of	IN
North	NNP
Sea	DT
crudes	DT
were	VBD
up	IN
35	CD
to	DT
75	CD
cents	NNS
a	DT
barrel	DT
.	.
	
``	``
This	DT
market	NN
still	RB
wants	VBZ
to	DT
go	VBP
higher	JJR
,	,
''	''
said	VBN
Nauman	DT
Barakat	DT
,	,
a	DT
first	JJ
vice	NN
president	NN
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc	NNP
.	.
	
He	DT
predicted	DT
that	WDT
the	DT
November	NNP
contract	NN
will	MD
reach	VBP
$	$
21.50	DT
a	DT
barrel	DT
or	CC
more	RBR
on	IN
the	DT
New	NNP
York	NNP
Mercantile	NNP
Exchange	NNP
.	.
	
There	DT
has	VBZ
been	VBN
little	JJ
news	NN
to	DT
account	NN
for	IN
such	JJ
buoyancy	DT
in	IN
the	DT
oil	DT
markets	NNS
.	.
	
Analysts	NNS
generally	RB
cite	VBP
a	DT
lack	NN
of	IN
bearish	JJ
developments	NNS
as	IN
well	RB
as	IN
rumors	NNS
of	IN
a	DT
possible	JJ
tightening	VBG
of	IN
supplies	DT
of	IN
some	DT
fuels	DT
and	CC
crudes	DT
.	.
	
There	DT
also	RB
are	VBP
recurring	DT
reports	NNS
that	WDT
the	DT
Soviet	NNP
Union	NNP
is	VBZ
having	VBG
difficulties	NNS
with	IN
its	DT
oil	DT
exports	NNS
and	CC
that	WDT
Nigeria	DT
has	VBZ
about	IN
reached	VBN
its	DT
production	NN
limit	NN
and	CC
ca	MD
n't	RB
produce	DT
as	IN
much	JJ
as	IN
it	DT
could	MD
sell	NN
.	.
	
Many	JJ
traders	NNS
foresee	DT
a	DT
tightening	VBG
of	IN
near-term	DT
supplies	DT
,	,
particularly	RB
of	IN
high-quality	DT
crudes	DT
such	JJ
as	IN
those	DT
produced	VBN
in	IN
the	DT
North	NNP
Sea	DT
and	CC
in	IN
Nigeria	DT
.	.
	
If	IN
a	DT
hostile	JJ
predator	DT
emerges	DT
for	IN
Saatchi	NNP
&	&
Saatchi	NNP
Co.	DT
,	,
co-founders	DT
Charles	NNP
and	CC
Maurice	DT
Saatchi	NNP
will	MD
lead	NN
a	DT
management	NN
buy-out	NN
attempt	NN
,	,
an	DT
official	NN
close	NN
to	DT
the	DT
company	NN
said	VBN
.	.
	
Financing	DT
for	IN
any	DT
takeover	NN
attempt	NN
may	MD
be	DT
problematic	JJ
in	IN
the	DT
wake	NN
of	IN
Friday	NNP
's	VBZ
stock-market	NN
sell-off	NN
in	IN
New	NNP
York	NNP
and	CC
turmoil	NN
in	IN
the	DT
junk-bond	NN
market	NN
.	.
	
But	CC
the	DT
beleaguered	DT
British	JJ
advertising	NN
and	CC
consulting	VBG
giant	DT
,	,
which	DT
last	JJ
week	NN
named	VBN
a	DT
new	JJ
chief	NN
executive	NN
officer	NN
to	DT
replace	DT
Maurice	DT
Saatchi	NNP
,	,
has	VBZ
been	VBN
the	DT
subject	NN
of	IN
intense	JJ
takeover	NN
speculation	NN
for	IN
weeks	NNS
.	.
	
Last	JJ
week	NN
,	,
Saatchi	NNP
's	VBZ
largest	JJS
shareholder	NN
,	,
Southeastern	DT
Asset	DT
Management	DT
,	,
said	VBN
it	DT
had	VBN
been	VBN
approached	DT
by	IN
one	CD
or	CC
more	RBR
third	JJ
parties	NNS
interested	JJ
in	IN
a	DT
possible	JJ
restructuring	NN
.	.
	
And	CC
Carl	DT
Spielvogel	DT
,	,
chief	NN
executive	NN
officer	NN
of	IN
Saatchi	NNP
's	VBZ
big	JJ
Backer	DT
Spielvogel	DT
Bates	DT
advertising	NN
unit	NN
,	,
said	VBN
he	DT
had	VBN
offered	VBN
to	DT
lead	NN
a	DT
management	NN
buy-out	NN
of	IN
the	DT
company	NN
,	,
but	CC
was	VBD
rebuffed	DT
by	IN
Charles	NNP
Saatchi	NNP
.	.
	
Mr.	DT
Spielvogel	DT
said	VBN
he	DT
would	MD
n't	RB
launch	DT
a	DT
hostile	JJ
bid	NN
.	.
	
The	NNP
executive	NN
close	NN
to	DT
Saatchi	NNP
&	&
Saatchi	NNP
said	VBN
that	WDT
``	``
if	IN
a	DT
bidder	DT
came	VBD
up	IN
with	IN
a	DT
ludicrously	DT
high	JJ
offer	NN
,	,
a	DT
crazy	DT
offer	NN
which	DT
Saatchi	NNP
knew	DT
it	DT
could	MD
n't	RB
beat	DT
,	,
it	DT
would	MD
have	VBP
no	RB
choice	NN
but	CC
to	DT
recommend	DT
it	DT
to	DT
shareholders	NNS
.	.
	
But	CC
{	{
otherwise	DT
}	}
it	DT
would	MD
undoubtedly	RB
come	VBN
back	VB
''	''
with	IN
an	DT
offer	NN
by	IN
management	NN
.	.
	
The	NNP
executive	NN
said	VBN
any	DT
buy-out	NN
would	MD
be	DT
led	VBN
by	IN
the	DT
current	NN
board	NN
,	,
whose	DT
chairman	NN
is	VBZ
Maurice	DT
Saatchi	NNP
and	CC
whose	DT
strategic	JJ
guiding	DT
force	NN
is	VBZ
believed	VBN
to	DT
be	DT
Charles	NNP
Saatchi	NNP
.	.
	
Mr.	DT
Spielvogel	DT
is	VBZ
n't	RB
part	NN
of	IN
the	DT
board	NN
,	,
nor	CC
are	VBP
any	DT
of	IN
the	DT
other	JJ
heads	VBZ
of	IN
Saatchi	NNP
's	VBZ
big	JJ
U.S.-based	DT
ad	NN
agencies	NNS
.	.
	
The	NNP
executive	NN
did	VBD
n't	RB
name	NN
any	DT
price	NN
,	,
but	CC
securities	NNS
analysts	NNS
have	VBP
said	VBN
Saatchi	NNP
would	MD
fetch	DT
upward	RB
of	IN
$	$
1.3	CD
billion	CD
.	.
	
The	NNP
executive	NN
denied	VBD
speculation	NN
that	WDT
Saatchi	NNP
was	VBD
bringing	VBG
in	IN
the	DT
new	JJ
chief	NN
executive	NN
officer	NN
only	RB
to	DT
clean	DT
up	IN
the	DT
company	NN
financially	RB
so	IN
that	WDT
the	DT
brothers	DT
could	MD
lead	NN
a	DT
buy-back	DT
.	.
	
That	IN
speculation	NN
abounded	DT
Friday	NNP
as	IN
industry	NN
executives	NNS
analyzed	VBD
the	DT
appointment	DT
of	IN
the	DT
new	JJ
chief	NN
executive	NN
,	,
Robert	NNP
Louis-Dreyfus	DT
,	,
who	WP
joins	DT
Saatchi	NNP
and	CC
becomes	VBZ
a	DT
member	NN
of	IN
its	DT
board	NN
on	IN
Jan.	DT
1	LS
.	.
	
Mr.	DT
Louis-Dreyfus	DT
,	,
formerly	RB
chief	NN
executive	NN
of	IN
the	DT
pharmaceutical	DT
research	NN
firm	NN
IMS	DT
International	NNP
Inc.	DT
,	,
has	VBZ
a	DT
reputation	NN
as	IN
a	DT
savvy	JJ
financial	JJ
manager	NN
,	,
and	CC
will	MD
be	DT
charged	VBD
largely	RB
with	IN
repairing	DT
Saatchi	NNP
's	VBZ
poor	JJ
financial	JJ
state	NN
.	.
	
Asked	DT
about	IN
the	DT
speculation	NN
that	WDT
Mr.	DT
Louis-Dreyfus	DT
has	VBZ
been	VBN
hired	VBN
to	DT
pave	DT
the	DT
way	NN
for	IN
a	DT
buy-out	NN
by	IN
the	DT
brothers	DT
,	,
the	DT
executive	NN
replied	VBD
,	,
``	``
That	IN
is	VBZ
n't	RB
the	DT
reason	NN
Dreyfus	DT
has	VBZ
been	VBN
brought	VBN
in	IN
.	.
	
He	DT
was	VBD
brought	VBN
in	IN
to	DT
turn	NN
around	IN
the	DT
company	NN
.	.
''	''
	
Separately	RB
,	,
several	JJ
Saatchi	NNP
agency	NN
clients	NNS
said	VBN
they	DT
believe	VBP
the	DT
company	NN
's	VBZ
management	NN
shakeup	DT
will	MD
have	VBP
little	JJ
affect	DT
on	IN
them	DT
.	.
	
``	``
It	PRP
has	VBZ
n't	RB
had	VBN
any	DT
impact	NN
on	IN
us	DT
,	,
nor	CC
do	VBP
we	DT
expect	VBP
it	DT
to	DT
,	,
''	''
said	VBN
a	DT
spokeswoman	DT
for	IN
Miller	DT
Brewing	DT
Co.	DT
,	,
a	DT
major	JJ
client	NN
of	IN
Backer	DT
Spielvogel	DT
.	.
	
John	NNP
Lampe	DT
,	,
director	NN
of	IN
advertising	NN
at	IN
PaineWebber	DT
Inc.	DT
,	,
a	DT
Saatchi	NNP
&	&
Saatchi	NNP
Advertising	DT
client	NN
,	,
said	VBN
:	:
``	``
We	DT
have	VBP
no	RB
problem	NN
with	IN
the	DT
announcement	NN
,	,
because	IN
we	DT
do	VBP
n't	RB
know	VBP
what	WP
change	NN
it	DT
's	VBZ
going	VBG
to	DT
bring	DT
about	IN
.	.
	
We	DT
are	VBP
n't	RB
going	VBG
to	DT
change	NN
agencies	NNS
because	IN
of	IN
a	DT
change	NN
in	IN
London	NNP
.	.
''	''
	
Executives	DT
at	IN
Backer	DT
Spielvogel	DT
client	NN
Avis	DT
Inc.	DT
,	,
as	IN
well	RB
as	IN
at	IN
Saatchi	NNP
client	NN
Philips	DT
Lighting	DT
Co.	DT
,	,
also	RB
said	VBN
they	DT
saw	VBD
no	RB
effect	NN
.	.
	
Executives	DT
at	IN
Prudential-Bache	DT
Securities	NNPS
Inc.	DT
,	,
a	DT
Backer	DT
Spielvogel	DT
client	NN
that	WDT
is	VBZ
reviewing	DT
its	DT
account	NN
,	,
declined	VBD
comment	NN
.	.
	
Mr.	DT
Spielvogel	DT
had	VBN
said	VBN
that	WDT
Prudential-Bache	DT
was	VBD
prepared	VBN
to	DT
finance	NN
either	RB
a	DT
management	NN
buy-out	NN
and	CC
restructuring	NN
,	,
or	CC
a	DT
buy-out	NN
of	IN
Backer	DT
Spielvogel	DT
alone	RB
,	,
led	VBN
by	IN
him	DT
.	.
	
Ad	DT
Notes	DT
...	...
.	.
	
NEW	DT
ACCOUNT	DT
:	:
	
California	NNP
's	VBZ
Glendale	DT
Federal	NNP
Bank	NNP
awarded	VBD
its	DT
$	$
12	CD
million	CD
to	DT
$	$
15	CD
million	CD
account	NN
to	DT
the	DT
Los	NNP
Angeles	NNP
office	NN
of	IN
Omnicom	DT
Group	NNP
's	VBZ
BBDO	DT
agency	NN
.	.
	
The	NNP
account	NN
was	VBD
previously	RB
handled	DT
by	IN
Davis	DT
,	,
Ball	DT
&	&
Colombatto	DT
Advertising	DT
Inc.	DT
,	,
a	DT
Los	NNP
Angeles	NNP
agency	NN
.	.
	
ACCOUNT	DT
REVIEW	DT
:	:
	
Royal	DT
Crown	DT
Cola	DT
Co.	DT
has	VBZ
ended	VBD
its	DT
relationship	DT
with	IN
the	DT
Boston	NNP
office	NN
of	IN
Hill	NNP
,	,
Holliday	DT
,	,
Connors	DT
,	,
Cosmopulos	DT
.	.
	
The	NNP
account	NN
had	VBN
billed	DT
about	IN
$	$
6	CD
million	CD
in	IN
1988	CD
,	,
according	VBG
to	DT
Leading	DT
National	NNP
Advertisers	DT
.	.
	
NOT-GUILTY	DT
PLEA	DT
:	:
	
As	IN
expected	VBN
,	,
Young	NNP
&	&
Rubicam	DT
Inc.	DT
along	IN
with	IN
two	CD
senior	JJ
executives	NNS
and	CC
a	DT
former	JJ
employee	NN
,	,
pleaded	DT
not	RB
guilty	JJ
in	IN
federal	JJ
court	NN
in	IN
New	NNP
Haven	DT
,	,
Conn.	DT
,	,
to	DT
conspiracy	NN
and	CC
racketeering	DT
charges	VBZ
.	.
	
The	NNP
government	NN
has	VBZ
charged	VBD
that	WDT
they	DT
bribed	VBN
Jamaican	DT
officials	NNS
to	DT
win	DT
the	DT
Jamaica	DT
Tourist	DT
Board	NNP
ad	NN
account	NN
in	IN
1981	CD
.	.
	
A	DT
spokesman	NN
for	IN
the	DT
U.S.	DT
Attorney	DT
's	VBZ
office	NN
said	VBN
extradition	NN
proceedings	NNS
are	VBP
``	``
just	RB
beginning	NN
''	''
for	IN
the	DT
other	JJ
two	CD
defendants	NNS
in	IN
the	DT
case	NN
,	,
Eric	DT
Anthony	DT
Abrahams	DT
,	,
former	JJ
Jamaican	DT
tourism	DT
minister	NN
,	,
and	CC
Jamaican	DT
businessman	NN
Arnold	DT
Foote	DT
Jr	DT
.	.
	
KOREAN	DT
AGENCY	DT
:	:
	
The	NNP
Samsung	DT
Group	NNP
and	CC
Bozell	DT
Inc.	DT
agreed	VBN
to	DT
establish	DT
a	DT
joint	JJ
venture	NN
advertising	NN
agency	NN
in	IN
South	NNP
Korea	DT
.	.
	
Bozell	DT
Cheil	DT
Corp.	DT
,	,
as	IN
the	DT
new	JJ
agency	NN
will	MD
be	DT
called	VBN
,	,
will	MD
be	DT
based	VBN
in	IN
Seoul	DT
and	CC
is	VBZ
70	DT
%	%
owned	VBN
by	IN
Samsung	DT
and	CC
30	CD
%	%
owned	VBN
by	IN
Bozell	DT
.	.
	
Samsung	DT
already	RB
owns	VBZ
Korea	DT
First	NNP
Advertising	DT
Co.	DT
,	,
that	WDT
country	NN
's	VBZ
largest	JJS
agency	NN
.	.
	
Bozell	DT
joins	DT
Backer	DT
Spielvogel	DT
Bates	DT
and	CC
Ogilvy	DT
Group	NNP
as	IN
U.S.	DT
agencies	NNS
with	IN
interests	NNS
in	IN
Korean	DT
agencies	NNS
.	.
	
Citing	DT
a	DT
payment	NN
from	IN
a	DT
supplier	NN
and	CC
strong	JJ
sales	NNS
of	IN
certain	JJ
data-storage	DT
products	NNS
,	,
Maxtor	DT
Corp.	DT
said	VBD
earnings	NNS
and	CC
revenue	NN
jumped	VBD
in	IN
its	DT
second	NN
quarter	NN
ended	VBD
Sept.	DT
24	CD
.	.
	
The	NNP
maker	NN
of	IN
computer-data-storage	DT
products	NNS
said	VBN
net	JJ
income	NN
rose	VBD
to	DT
$	$
4.8	CD
million	CD
,	,
or	CC
23	CD
cents	NNS
a	DT
share	NN
,	,
from	IN
year-earlier	JJ
net	JJ
of	IN
$	$
1.1	CD
million	CD
,	,
or	CC
five	CD
cents	NNS
a	DT
share	NN
.	.
	
Revenue	NN
soared	VBN
to	DT
$	$
117	DT
million	CD
from	IN
$	$
81.5	DT
million	CD
.	.
	
Maxtor	DT
said	VBN
its	DT
results	NNS
were	VBD
boosted	DT
by	IN
$	$
2	CD
million	CD
in	IN
payments	NNS
received	VBN
from	IN
a	DT
supplier	NN
,	,
for	IN
a	DT
certain	JJ
line	NN
of	IN
products	NNS
that	WDT
Maxtor	DT
is	VBZ
n't	RB
going	VBG
to	DT
sell	NN
anymore	DT
.	.
	
Maxtor	DT
said	VBN
effects	NNS
from	IN
discontinuing	DT
the	DT
line	NN
may	MD
have	VBP
a	DT
positive	DT
effect	NN
on	IN
future	NN
earnings	NNS
and	CC
revenue	NN
.	.
	
A	DT
spokeswoman	DT
would	MD
n't	RB
elaborate	JJ
,	,
but	CC
the	DT
company	NN
said	VBN
the	DT
discontinued	VBN
product	NN
has	VBZ
never	RB
been	VBN
a	DT
major	JJ
source	NN
of	IN
revenue	NN
or	CC
profit	NN
.	.
	
Operationally	DT
,	,
Maxtor	DT
benefited	VBD
from	IN
robust	JJ
sales	NNS
of	IN
products	NNS
that	WDT
store	DT
data	NNS
for	IN
high-end	DT
personal	JJ
computers	NNS
and	CC
computer	NN
workstations	DT
.	.
	
In	IN
the	DT
fiscal	JJ
first	JJ
half	DT
,	,
net	JJ
was	VBD
$	$
7	CD
million	CD
,	,
or	CC
34	CD
cents	NNS
a	DT
share	NN
,	,
up	IN
from	IN
the	DT
year-earlier	JJ
$	$
3.1	DT
million	CD
,	,
or	CC
15	CD
cents	NNS
a	DT
share	NN
.	.
	
Revenue	NN
rose	VBD
to	DT
$	$
225.5	DT
million	CD
from	IN
$	$
161.8	DT
million	CD
.	.
	
Robert	NNP
G.	DT
Walden	DT
,	,
62	CD
years	NNS
old	JJ
,	,
was	VBD
elected	DT
a	DT
director	NN
of	IN
this	DT
provider	DT
of	IN
advanced	DT
technology	NN
systems	NNS
and	CC
services	NNS
,	,
increasing	VBG
the	DT
board	NN
to	DT
eight	CD
members	NNS
.	.
	
He	DT
retired	VBD
as	IN
senior	JJ
vice	NN
president	NN
,	,
finance	NN
and	CC
administration	NN
,	,
and	CC
chief	NN
financial	JJ
officer	NN
of	IN
the	DT
company	NN
Oct.	DT
1	LS
.	.
	
Southmark	NNP
Corp.	DT
said	VBD
that	WDT
it	DT
filed	VBN
part	NN
of	IN
its	DT
10-K	DT
report	NN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
,	,
but	CC
that	WDT
the	DT
filing	NN
does	VBZ
n't	RB
include	VBP
its	DT
audited	DT
financial	JJ
statements	NNS
and	CC
related	VBN
information	NN
.	.
	
The	NNP
real	JJ
estate	NN
and	CC
thrift	NN
concern	NN
,	,
operating	VBG
under	IN
bankruptcy-law	NN
proceedings	NNS
,	,
said	VBN
it	DT
told	VBN
the	DT
SEC	NNP
it	DT
could	MD
n't	RB
provide	VBP
financial	JJ
statements	NNS
by	IN
the	DT
end	NN
of	IN
its	DT
first	JJ
extension	NN
``	``
without	IN
unreasonable	JJ
burden	NN
or	CC
expense	NN
.	.
''	''
	
The	NNP
company	NN
asked	VBN
for	IN
a	DT
15-day	DT
extension	NN
Sept.	DT
30	CD
,	,
when	DT
the	DT
financial	JJ
reports	NNS
were	VBD
due	JJ
.	.
	
Southmark	NNP
said	VBN
it	DT
plans	NNS
to	DT
amend	DT
its	DT
10K	DT
to	DT
provide	VBP
financial	JJ
results	NNS
as	IN
soon	RB
as	IN
its	DT
audit	DT
is	VBZ
completed	VBN
.	.
	
Alan	NNP
Seelenfreund	DT
,	,
52	DT
years	NNS
old	JJ
,	,
was	VBD
named	VBN
chairman	NN
of	IN
this	DT
processor	DT
of	IN
prescription	DT
claims	VBZ
,	,
succeeding	VBG
Thomas	DT
W.	DT
Field	DT
Jr.	DT
,	,
55	DT
,	,
who	WP
resigned	VBD
last	JJ
month	NN
.	.
	
Mr.	DT
Field	DT
also	RB
had	VBN
been	VBN
chairman	NN
of	IN
McKesson	DT
Corp.	DT
,	,
resigning	DT
that	WDT
post	NN
after	IN
a	DT
dispute	NN
with	IN
the	DT
board	NN
over	IN
corporate	JJ
strategy	NN
.	.
	
Mr.	DT
Seelenfreund	DT
is	VBZ
executive	NN
vice	NN
president	NN
and	CC
chief	NN
financial	JJ
officer	NN
of	IN
McKesson	DT
and	CC
will	MD
continue	DT
in	IN
those	DT
roles	NNS
.	.
	
PCS	DT
also	RB
named	VBN
Rex	DT
R.	DT
Malson	DT
,	,
57	CD
,	,
executive	NN
vice	NN
president	NN
at	IN
McKesson	DT
,	,
as	IN
a	DT
director	NN
,	,
filling	DT
the	DT
seat	DT
vacated	DT
by	IN
Mr.	DT
Field	DT
.	.
	
Messrs.	DT
Malson	DT
and	CC
Seelenfreund	DT
are	VBP
directors	DT
of	IN
McKesson	DT
,	,
which	DT
has	VBZ
an	DT
86	DT
%	%
stake	NN
in	IN
PCS	DT
.	.
	
MedChem	DT
Products	NNPS
Inc.	DT
said	VBD
a	DT
U.S.	DT
District	NNP
Court	NNP
in	IN
Boston	NNP
ruled	VBN
that	WDT
a	DT
challenge	NN
by	IN
MedChem	DT
to	DT
the	DT
validity	DT
of	IN
a	DT
U.S.	DT
patent	DT
held	VBN
by	IN
Pharmacia	DT
Inc.	DT
was	VBD
``	``
without	IN
merit	NN
.	.
''	''
	
Pharmacia	DT
,	,
based	VBN
in	IN
Upsala	DT
,	,
Sweden	DT
,	,
had	VBN
charged	VBD
in	IN
a	DT
lawsuit	NN
against	IN
MedChem	DT
that	WDT
MedChem	DT
's	VBZ
AMVISC	DT
product	NN
line	NN
infringes	DT
on	IN
the	DT
Pharmacia	DT
patent	DT
.	.
	
The	NNP
patent	DT
is	VBZ
related	VBN
to	DT
hyaluronic	DT
acid	DT
,	,
a	DT
rooster-comb	DT
extract	DT
used	VBN
in	IN
eye	DT
surgery	DT
.	.
	
In	IN
its	DT
lawsuit	NN
,	,
Pharmacia	DT
is	VBZ
seeking	VBG
unspecified	JJ
damages	NNS
and	CC
a	DT
preliminary	JJ
injunction	DT
to	DT
block	NN
MedChem	DT
from	IN
selling	NN
the	DT
AMVISC	DT
products	NNS
.	.
	
A	DT
MedChem	DT
spokesman	NN
said	VBN
the	DT
products	NNS
contribute	VBP
about	IN
a	DT
third	JJ
of	IN
MedChem	DT
's	VBZ
sales	NNS
and	CC
10	CD
%	%
to	DT
20	CD
%	%
of	IN
its	DT
earnings	NNS
.	.
	
In	IN
the	DT
year	NN
ended	VBD
Aug.	DT
31	CD
,	,
1988	CD
,	,
MedChem	DT
earned	VBN
$	$
2.9	DT
million	CD
,	,
or	CC
72	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
17.4	DT
million	CD
.	.
	
MedChem	DT
said	VBN
the	DT
court	NN
's	VBZ
ruling	NN
was	VBD
issued	VBN
as	IN
part	NN
of	IN
a	DT
``	``
first-phase	DT
trial	NN
''	''
in	IN
the	DT
patent-infringement	DT
proceedings	NNS
and	CC
concerns	DT
only	RB
one	CD
of	IN
its	DT
defenses	DT
in	IN
the	DT
case	NN
.	.
	
It	PRP
said	VBN
it	DT
is	VBZ
considering	VBG
``	``
all	RB
of	IN
its	DT
options	NNS
in	IN
light	JJ
of	IN
the	DT
decision	NN
,	,
including	VBG
a	DT
possible	JJ
appeal	NN
.	.
''	''
	
The	NNP
medical-products	DT
company	NN
added	VBN
that	WDT
it	DT
plans	NNS
to	DT
``	``
assert	DT
its	DT
other	JJ
defenses	DT
''	''
against	IN
Pharmacia	DT
's	VBZ
lawsuit	NN
,	,
including	VBG
the	DT
claim	NN
that	WDT
it	DT
has	VBZ
n't	RB
infringed	DT
on	IN
Pharmacia	DT
's	VBZ
patent	DT
.	.
	
MedChem	DT
said	VBN
that	WDT
the	DT
court	NN
scheduled	VBN
a	DT
conference	NN
for	IN
next	JJ
Monday	NNP
--	--
to	DT
set	VBN
a	DT
date	DT
for	IN
proceedings	NNS
on	IN
Pharmacia	DT
's	VBZ
motion	DT
for	IN
a	DT
preliminary	JJ
injunction	DT
.	.
	
Newspaper	DT
publishers	DT
are	VBP
reporting	VBG
mixed	VBN
third-quarter	NN
results	NNS
,	,
aided	DT
by	IN
favorable	DT
newsprint	NN
prices	NNS
and	CC
hampered	DT
by	IN
flat	JJ
or	CC
declining	VBG
advertising	NN
linage	DT
,	,
especially	RB
in	IN
the	DT
Northeast	DT
.	.
	
Adding	DT
to	DT
unsteadiness	DT
in	IN
the	DT
industry	NN
,	,
seasonal	DT
retail	JJ
ad	NN
spending	NN
patterns	DT
in	IN
newspapers	NNS
have	VBP
been	VBN
upset	DT
by	IN
shifts	NNS
in	IN
ownership	NN
and	CC
general	NN
hardships	DT
within	IN
the	DT
retail	JJ
industry	NN
.	.
	
In	IN
New	NNP
York	NNP
,	,
the	DT
Bonwit	NNP
Teller	NNP
and	CC
B.	DT
Altman	NNP
&	&
Co.	DT
department	DT
stores	NNS
have	VBP
filed	VBN
for	IN
protection	NN
from	IN
creditors	NNS
under	IN
Chapter	NN
11	CD
of	IN
the	DT
federal	JJ
Bankruptcy	NNP
Code	NNP
,	,
while	IN
the	DT
R.H.	DT
Macy	DT
&	&
Co.	DT
,	,
Bloomingdale	DT
's	VBZ
and	CC
Saks	DT
Fifth	DT
Avenue	DT
department-store	JJ
chains	DT
are	VBP
for	IN
sale	NN
.	.
	
Many	JJ
papers	NNS
throughout	IN
the	DT
country	NN
are	VBP
also	RB
faced	VBN
with	IN
a	DT
slowdown	NN
in	IN
classified-ad	DT
spending	NN
,	,
a	DT
booming	DT
category	NN
for	IN
newspapers	NNS
in	IN
recent	JJ
years	NNS
.	.
	
Until	DT
recently	RB
,	,
industry	NN
analysts	NNS
believed	VBN
decreases	DT
in	IN
retail	JJ
ad	NN
spending	NN
had	VBN
bottomed	DT
out	IN
and	CC
would	MD
in	IN
fact	NN
increase	NN
in	IN
this	DT
year	NN
's	VBZ
third	JJ
and	CC
fourth	JJ
quarters	DT
.	.
	
All	DT
bets	NNS
are	VBP
off	IN
,	,
analysts	NNS
say	VBP
,	,
because	IN
of	IN
the	DT
shifting	DT
ownership	NN
of	IN
the	DT
retail	JJ
chains	DT
.	.
	
``	``
Improved	DT
paper	NN
prices	NNS
will	MD
help	NN
offset	DT
weakness	NN
in	IN
linage	DT
,	,
but	CC
the	DT
retailers	NNS
'	'
problems	NNS
have	VBP
affected	VBN
the	DT
amount	NN
of	IN
ad	NN
linage	DT
they	DT
usually	RB
run	VBN
,	,
''	''
said	VBN
Edward	NNP
J.	DT
Atorino	DT
,	,
industry	NN
analyst	NN
for	IN
Salomon	DT
Brothers	DT
Inc	NNP
.	.
	
``	``
Retailers	DT
are	VBP
just	RB
in	IN
disarray	NN
.	.
''	''
	
For	IN
instance	NN
,	,
Gannett	DT
Co.	DT
posted	VBN
an	DT
11	CD
%	%
gain	NN
in	IN
net	JJ
income	NN
,	,
as	IN
total	JJ
ad	NN
pages	NNS
dropped	VBN
at	IN
USA	DT
Today	NN
,	,
but	CC
advertising	NN
revenue	NN
rose	VBD
because	IN
of	IN
a	DT
higher	JJR
circulation	NN
rate	NN
base	NN
and	CC
increased	VBN
rates	NNS
.	.
	
Gannett	DT
's	VBZ
83	DT
daily	JJ
and	CC
35	CD
non-daily	DT
newspapers	NNS
reported	VBN
a	DT
3	CD
%	%
increase	NN
in	IN
advertising	NN
and	CC
circulation	NN
revenue	NN
.	.
	
Total	DT
advertising	NN
linage	DT
was	VBD
``	``
modestly	DT
''	''
lower	JJR
as	IN
classified-ad	DT
volume	NN
increased	VBN
,	,
while	IN
there	RB
was	VBD
``	``
softer	DT
demand	NN
''	''
for	IN
retail	JJ
and	CC
national	JJ
ad	NN
linage	DT
,	,
said	VBN
John	NNP
Curley	DT
,	,
Gannett	DT
's	VBZ
chief	NN
executive	NN
officer	NN
.	.
	
At	IN
USA	DT
Today	NN
,	,
ad	NN
pages	NNS
totaled	DT
785	DT
for	IN
the	DT
quarter	NN
,	,
down	IN
9.2	DT
%	%
from	IN
the	DT
1988	CD
period	NN
,	,
which	DT
was	VBD
helped	VBD
by	IN
increased	VBN
ad	NN
spending	NN
from	IN
the	DT
Summer	DT
Olympics	DT
.	.
	
While	IN
USA	DT
Today	NN
's	VBZ
total	JJ
paid	VBN
ad	NN
pages	NNS
for	IN
the	DT
year	NN
to	DT
date	DT
totaled	DT
2,735	DT
,	,
a	DT
decrease	DT
of	IN
4	CD
%	%
from	IN
last	JJ
year	NN
,	,
the	DT
paper	NN
's	VBZ
ad	NN
revenue	NN
increased	VBN
8	CD
%	%
in	IN
the	DT
quarter	NN
and	CC
13	CD
%	%
in	IN
the	DT
nine	CD
months	NNS
.	.
	
In	IN
the	DT
nine	CD
months	NNS
,	,
Gannett	DT
's	VBZ
net	JJ
rose	VBD
9.5	DT
%	%
to	DT
$	$
270	CD
million	CD
,	,
or	CC
$	$
1.68	DT
a	DT
share	NN
,	,
from	IN
$	$
247	DT
million	CD
,	,
or	CC
$	$
1.52	DT
a	DT
share	NN
.	.
	
Revenue	NN
gained	VBN
6	CD
%	%
to	DT
$	$
2.55	DT
billion	CD
from	IN
$	$
2.4	CD
billion	CD
.	.
	
At	IN
Dow	NNP
Jones	NNP
&	&
Co.	DT
,	,
third-quarter	NN
net	JJ
income	NN
fell	VBD
9.9	DT
%	%
from	IN
the	DT
year-earlier	JJ
period	NN
.	.
	
Net	DT
fell	VBD
to	DT
$	$
28.8	DT
million	CD
,	,
or	CC
29	CD
cents	NNS
a	DT
share	NN
,	,
from	IN
$	$
32	CD
million	CD
,	,
or	CC
33	DT
cents	NNS
a	DT
share	NN
.	.
	
The	NNP
year-earlier	JJ
period	NN
included	VBN
a	DT
one-time	JJ
gain	NN
of	IN
$	$
3.5	DT
million	CD
,	,
or	CC
four	CD
cents	NNS
a	DT
share	NN
.	.
	
Revenue	NN
gained	VBN
5.3	CD
%	%
to	DT
$	$
404.1	DT
million	CD
from	IN
$	$
383.8	DT
million	CD
.	.
	
The	NNP
drop	NN
in	IN
profit	NN
reflected	DT
,	,
in	IN
part	NN
,	,
continued	VBN
softness	DT
in	IN
financial	JJ
advertising	NN
at	IN
The	NNP
Wall	NNP
Street	NNP
Journal	NNP
and	CC
Barron	DT
's	VBZ
magazine	NN
.	.
	
Ad	DT
linage	DT
at	IN
the	DT
Journal	NNP
fell	VBD
6.1	CD
%	%
in	IN
the	DT
third	JJ
quarter	NN
.	.
	
Affiliated	DT
Publications	DT
Inc.	DT
reversed	DT
a	DT
year-earlier	JJ
third	JJ
quarter	NN
net	JJ
loss	NN
.	.
	
The	NNP
publisher	DT
of	IN
the	DT
Boston	NNP
Globe	DT
reported	VBN
net	JJ
of	IN
$	$
8.5	CD
million	CD
,	,
or	CC
12	CD
cents	NNS
a	DT
share	NN
,	,
compared	VBN
with	IN
a	DT
loss	NN
of	IN
$	$
26.5	DT
million	CD
,	,
or	CC
38	CD
cents	NNS
a	DT
share	NN
,	,
for	IN
the	DT
third	JJ
quarter	NN
in	IN
1988	CD
.	.
	
William	NNP
O.	DT
Taylor	DT
,	,
the	DT
parent	NN
's	VBZ
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
said	VBN
earnings	NNS
continued	VBN
to	DT
be	DT
hurt	VBN
by	IN
softness	DT
in	IN
ad	NN
volume	NN
at	IN
the	DT
Boston	NNP
newspaper	NN
.	.
	
Third-quarter	DT
profit	NN
estimates	NNS
for	IN
several	JJ
companies	NNS
are	VBP
being	VBG
strongly	RB
affected	VBN
by	IN
the	DT
price	NN
of	IN
newsprint	NN
,	,
which	DT
in	IN
the	DT
last	JJ
two	CD
years	NNS
has	VBZ
had	VBN
several	JJ
price	NN
increases	NNS
.	.
	
After	IN
a	DT
supply	NN
crunch	NN
caused	VBN
prices	NNS
to	DT
rise	NN
14	CD
%	%
since	IN
1986	CD
to	DT
$	$
650	CD
a	DT
metric	JJ
ton	DT
,	,
analysts	NNS
are	VBP
encouraged	VBN
,	,
because	IN
they	DT
do	VBP
n't	RB
expect	VBP
a	DT
price	NN
increase	NN
for	IN
the	DT
rest	NN
of	IN
this	DT
year	NN
.	.
	
Companies	NNPS
with	IN
daily	JJ
newspapers	NNS
in	IN
the	DT
Northeast	DT
will	MD
need	VB
the	DT
stable	DT
newsprint	NN
prices	NNS
to	DT
ease	DT
damage	NN
from	IN
weak	JJ
ad	NN
linage	DT
.	.
	
Mr.	DT
Atorino	DT
at	IN
Salomon	DT
Brothers	DT
said	VBN
he	DT
estimates	NNS
that	WDT
Times	NNP
Mirror	DT
Co.	DT
's	PRP
earnings	NNS
were	VBD
down	IN
for	IN
the	DT
third	JJ
quarter	NN
,	,
because	IN
of	IN
soft	DT
advertising	NN
levels	NNS
at	IN
its	DT
Long	DT
Island	DT
Newsday	DT
and	CC
Hartford	DT
Courant	DT
newspapers	NNS
.	.
	
Trouble	NN
on	IN
the	DT
East	NNP
Coast	DT
was	VBD
likely	JJ
offset	DT
by	IN
improved	VBN
ad	NN
linage	DT
at	IN
the	DT
Los	NNP
Angeles	NNP
Times	NNP
,	,
which	DT
this	DT
week	NN
also	RB
unveiled	DT
a	DT
redesign	DT
.	.
	
New	NNP
York	NNP
Times	NNP
Co.	DT
is	VBZ
expected	VBN
to	DT
report	NN
lower	JJR
earnings	NNS
for	IN
the	DT
third	JJ
quarter	NN
because	IN
of	IN
continued	VBN
weak	JJ
advertising	NN
levels	NNS
at	IN
its	DT
flagship	DT
New	NNP
York	NNP
Times	NNP
and	CC
deep	JJ
discounting	DT
of	IN
newsprint	NN
at	IN
its	DT
affiliate	DT
,	,
Forest	DT
Products	NNPS
Group	NNP
.	.
	
``	``
Times	NNP
Co.	DT
's	PRP
regional	JJ
daily	JJ
newspapers	NNS
are	VBP
holding	VBG
up	IN
well	RB
,	,
but	CC
there	RB
is	VBZ
little	JJ
sign	NN
that	WDT
things	NNS
will	MD
improve	DT
in	IN
the	DT
New	NNP
York	NNP
market	NN
,	,
''	''
said	VBN
Alan	NNP
Kassan	DT
,	,
an	DT
analyst	NN
with	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
.	.
	
Washington	NNP
Post	NNP
Co.	DT
is	VBZ
expected	VBN
to	DT
report	NN
improved	VBN
earnings	NNS
,	,
largely	RB
because	IN
of	IN
increased	VBN
cable	DT
revenue	NN
and	CC
publishing	DT
revenue	NN
helped	VBD
by	IN
an	DT
improved	VBN
retail	JJ
market	NN
in	IN
the	DT
Washington	NNP
area	NN
.	.
	
According	VBG
to	DT
analysts	NNS
,	,
profits	NNS
were	VBD
also	RB
helped	VBD
by	IN
successful	JJ
cost-cutting	DT
measures	NNS
at	IN
Newsweek	NNP
.	.
	
The	NNP
news-weekly	DT
has	VBZ
faced	VBN
heightened	VBN
competition	NN
from	IN
rival	NN
Time	NNP
magazine	NN
and	CC
a	DT
relatively	RB
flat	JJ
magazine	NN
advertising	NN
market	NN
.	.
	
Knight-Ridder	DT
Inc.	DT
is	VBZ
faced	VBN
with	IN
continued	VBN
uncertainty	NN
over	IN
the	DT
pending	DT
joint	JJ
operating	VBG
agreement	NN
between	IN
its	DT
Detroit	NNP
Free	NNP
Press	DT
and	CC
Gannett	DT
's	VBZ
Detroit	NNP
News	NNP
,	,
and	CC
has	VBZ
told	VBN
analysts	NNS
that	WDT
earnings	NNS
were	VBD
down	IN
in	IN
the	DT
third	JJ
quarter	NN
.	.
	
However	RB
,	,
analysts	NNS
point	NN
to	DT
positive	DT
advertising	NN
spending	NN
at	IN
several	JJ
of	IN
its	DT
major	JJ
daily	JJ
newspapers	NNS
,	,
such	JJ
as	IN
the	DT
Miami	NNP
Herald	DT
and	CC
San	NNP
Jose	DT
Mercury	DT
News	NNP
.	.
	
``	``
The	NNP
Miami	NNP
market	NN
is	VBZ
coming	VBG
back	VB
strong	JJ
after	IN
a	DT
tough	JJ
couple	NN
of	IN
years	NNS
''	''
when	DT
Knight-Ridder	DT
``	``
was	VBD
starting	VBG
up	IN
a	DT
Hispanic	DT
edition	DT
and	CC
circulation	NN
was	VBD
falling	VBG
,	,
''	''
said	VBN
Bruce	DT
Thorp	DT
,	,
an	DT
analyst	NN
for	IN
Provident	DT
National	NNP
Bank	NNP
.	.
	
General	NNP
Motors	NNPS
Corp.	DT
,	,
in	IN
a	DT
series	NN
of	IN
moves	NNS
that	WDT
angered	DT
union	NN
officials	NNS
in	IN
the	DT
U.S.	DT
and	CC
Canada	NNP
,	,
has	VBZ
signaled	VBD
that	WDT
as	IN
many	JJ
as	IN
five	CD
North	NNP
American	JJ
assembly	NN
plants	NNS
may	MD
not	RB
survive	DT
the	DT
mid-1990s	CD
as	IN
the	DT
corporation	NN
struggles	DT
to	DT
cut	NN
its	DT
excess	JJ
vehicle-making	DT
capacity	NN
.	.
	
In	IN
announcements	NNS
to	DT
workers	NNS
late	JJ
last	JJ
week	NN
,	,
GM	NNP
effectively	RB
signed	DT
death	DT
notices	DT
for	IN
two	CD
full-sized	DT
van	NN
assembly	NN
plants	NNS
,	,
and	CC
cast	NN
serious	JJ
doubt	DT
on	IN
the	DT
futures	NNS
of	IN
three	CD
U.S.	DT
car	NN
factories	NNS
.	.
	
GM	NNP
is	VBZ
under	IN
intense	JJ
pressure	NN
to	DT
close	NN
factories	NNS
that	WDT
became	VBD
unprofitable	DT
as	IN
the	DT
giant	DT
auto	NN
maker	NN
's	VBZ
U.S.	DT
market	NN
share	NN
skidded	VBD
during	IN
the	DT
past	NN
decade	NN
.	.
	
The	NNP
company	NN
,	,
currently	RB
using	VBG
about	IN
80	CD
%	%
of	IN
its	DT
North	NNP
American	JJ
vehicle	NN
capacity	NN
,	,
has	VBZ
vowed	VBD
it	DT
will	MD
run	VBN
at	IN
100	CD
%	%
of	IN
capacity	NN
by	IN
1992	CD
.	.
	
Just	RB
a	DT
month	NN
ago	IN
,	,
GM	NNP
announced	VBN
it	DT
would	MD
make	VBP
an	DT
aging	VBG
assembly	NN
plant	NN
in	IN
Lakewood	DT
,	,
Ga.	DT
,	,
the	DT
eighth	DT
U.S.	DT
assembly	NN
facility	NN
to	DT
close	NN
since	IN
1987	CD
.	.
	
Now	RB
,	,
GM	NNP
appears	VBZ
to	DT
be	DT
stepping	DT
up	IN
the	DT
pace	NN
of	IN
its	DT
factory	NN
consolidation	DT
to	DT
get	VBP
in	IN
shape	NN
for	IN
the	DT
1990s	CD
.	.
	
One	CD
reason	NN
is	VBZ
mounting	DT
competition	NN
from	IN
new	JJ
Japanese	JJ
car	NN
plants	NNS
in	IN
the	DT
U.S.	DT
that	IN
are	VBP
pouring	DT
out	IN
more	RBR
than	IN
one	CD
million	CD
vehicles	NNS
a	DT
year	NN
at	IN
costs	NNS
lower	JJR
than	IN
GM	NNP
can	MD
match	DT
.	.
	
Another	DT
is	VBZ
that	WDT
United	NNP
Auto	NN
Workers	DT
union	NN
officials	NNS
have	VBP
signaled	VBD
they	DT
want	VBP
tighter	DT
no-layoff	DT
provisions	NNS
in	IN
the	DT
new	JJ
Big	NNP
Three	NNP
national	JJ
contract	NN
that	WDT
will	MD
be	DT
negotiated	VBN
next	JJ
year	NN
.	.
	
GM	NNP
officials	NNS
want	VBP
to	DT
get	VBP
their	DT
strategy	NN
to	DT
reduce	DT
capacity	NN
and	CC
the	DT
work	NN
force	NN
in	IN
place	NN
before	IN
those	DT
talks	NNS
begin	VBP
.	.
	
The	NNP
problem	NN
,	,
however	RB
,	,
is	VBZ
that	WDT
GM	NNP
's	VBZ
moves	NNS
are	VBP
coming	VBG
at	IN
a	DT
time	NN
when	DT
UAW	DT
leaders	NNS
are	VBP
trying	VBG
to	DT
silence	NN
dissidents	DT
who	WP
charge	NN
the	DT
union	NN
is	VBZ
too	RB
passive	JJ
in	IN
the	DT
face	NN
of	IN
GM	NNP
layoffs	DT
.	.
	
Against	DT
that	WDT
backdrop	DT
,	,
UAW	DT
Vice	NNP
President	NNP
Stephen	NNP
P.	DT
Yokich	DT
,	,
who	WP
recently	RB
became	VBD
head	NN
of	IN
the	DT
union	NN
's	VBZ
GM	NNP
department	DT
,	,
issued	VBN
a	DT
statement	NN
Friday	NNP
blasting	DT
GM	NNP
's	VBZ
``	``
flagrant	DT
insensitivity	DT
''	''
toward	IN
union	NN
members	NNS
.	.
	
The	NNP
auto	NN
maker	NN
's	VBZ
decision	NN
to	DT
let	VBN
word	NN
of	IN
the	DT
latest	JJS
shutdowns	DT
and	CC
product	NN
reassignments	DT
trickle	DT
out	IN
in	IN
separate	JJ
communiques	DT
to	DT
the	DT
affected	VBN
plants	NNS
showed	VBD
``	``
disarray	NN
''	''
and	CC
an	DT
``	``
inability	NN
or	CC
unwillingness	NN
to	DT
provide	VBP
consistent	JJ
information	NN
,	,
''	''
Mr.	DT
Yokich	DT
said	VBN
.	.
	
GM	NNP
officials	NNS
told	VBN
workers	NNS
late	JJ
last	JJ
week	NN
of	IN
the	DT
following	VBG
moves	NNS
:	:
Production	NN
of	IN
full-sized	DT
vans	NNS
will	MD
be	DT
consolidated	DT
into	IN
a	DT
single	JJ
plant	NN
in	IN
Flint	DT
,	,
Mich	NNP
.	.
	
That	IN
means	VBZ
two	CD
plants	NNS
--	--
one	CD
in	IN
Scarborough	DT
,	,
Ontario	DT
,	,
and	CC
the	DT
other	JJ
in	IN
Lordstown	DT
,	,
Ohio	NNP
--	--
probably	RB
will	MD
be	DT
shut	DT
down	IN
after	IN
the	DT
end	NN
of	IN
1991	DT
.	.
	
The	NNP
shutdowns	DT
will	MD
idle	JJ
about	IN
3,000	DT
Canadian	JJ
assembly	NN
workers	NNS
and	CC
about	IN
2,500	DT
workers	NNS
in	IN
Ohio	NNP
.	.
	
Robert	NNP
White	NNP
,	,
Canadian	JJ
Auto	NN
Workers	DT
union	NN
president	NN
,	,
used	VBN
the	DT
impending	DT
Scarborough	DT
shutdown	NN
to	DT
criticize	DT
the	DT
U.S.-Canada	DT
free	JJ
trade	NN
agreement	NN
and	CC
its	DT
champion	DT
,	,
Prime	NNP
Minister	NNP
Brian	DT
Mulroney	DT
.	.
	
But	CC
Canadian	JJ
auto	NN
workers	NNS
may	MD
benefit	NN
from	IN
a	DT
separate	JJ
GM	NNP
move	NN
that	WDT
affects	DT
three	CD
U.S.	DT
car	NN
plants	NNS
and	CC
one	CD
in	IN
Quebec	DT
.	.
	
Workers	DT
at	IN
plants	NNS
in	IN
Van	DT
Nuys	DT
,	,
Calif.	DT
,	,
Oklahoma	DT
City	NNP
and	CC
Pontiac	DT
,	,
Mich.	DT
,	,
were	VBD
told	VBN
their	DT
facilities	NNS
are	VBP
no	RB
longer	JJR
being	VBG
considered	VBN
to	DT
build	DT
the	DT
next	JJ
generation	NN
of	IN
the	DT
Pontiac	DT
Firebird	DT
and	CC
Chevrolet	NNP
Camaro	DT
muscle	DT
cars	NNS
.	.
	
GM	NNP
is	VBZ
studying	DT
whether	IN
it	DT
can	MD
build	DT
the	DT
new	JJ
Camaro-Firebird	DT
profitably	DT
at	IN
a	DT
plant	NN
in	IN
St.	DT
Therese	DT
,	,
Quebec	DT
,	,
company	NN
and	CC
union	NN
officials	NNS
said	VBN
.	.
	
That	IN
announcement	NN
left	JJ
union	NN
officials	NNS
in	IN
Van	DT
Nuys	DT
and	CC
Oklahoma	DT
City	NNP
uncertain	JJ
about	IN
their	DT
futures	NNS
.	.
	
The	NNP
Van	DT
Nuys	DT
plant	NN
,	,
which	DT
employs	DT
about	IN
3,000	DT
workers	NNS
,	,
does	VBZ
n't	RB
have	VBP
a	DT
product	NN
to	DT
build	DT
after	IN
1993	DT
.	.
	
Jerry	DT
Shrieves	DT
,	,
UAW	DT
local	JJ
president	NN
,	,
said	VBN
the	DT
facility	NN
was	VBD
asked	VBN
to	DT
draw	DT
up	IN
plans	NNS
to	DT
continue	DT
working	VBG
as	IN
a	DT
``	``
flex	DT
plant	NN
,	,
''	''
which	DT
could	MD
build	DT
several	JJ
different	JJ
types	DT
of	IN
products	NNS
on	IN
short	JJ
notice	NN
to	DT
satisfy	DT
demand	NN
.	.
	
At	IN
the	DT
Oklahoma	DT
City	NNP
plant	NN
,	,
which	DT
employs	DT
about	IN
6,000	DT
workers	NNS
building	NN
the	DT
eight-year-old	DT
A-body	DT
mid-sized	JJ
cars	NNS
,	,
Steve	NNP
Featherston	DT
,	,
UAW	DT
local	JJ
vice	NN
president	NN
,	,
said	VBN
the	DT
plant	NN
has	VBZ
no	RB
new	JJ
product	NN
lined	DT
up	IN
,	,
and	CC
``	``
none	NN
of	IN
us	DT
knows	DT
''	''
when	DT
the	DT
A-body	DT
cars	NNS
will	MD
die	DT
.	.
	
He	DT
said	VBN
he	DT
believes	VBZ
GM	NNP
has	VBZ
plans	NNS
to	DT
keep	VBP
building	NN
A-body	DT
cars	NNS
into	IN
the	DT
mid-1990s	CD
.	.
	
At	IN
Pontiac	DT
,	,
however	RB
,	,
the	DT
Camaro-Firebird	DT
decision	NN
appears	VBZ
to	DT
erase	DT
UAW	DT
hopes	VBZ
that	WDT
GM	NNP
would	MD
reopen	DT
the	DT
shuttered	DT
assembly	NN
plant	NN
that	WDT
last	JJ
built	VBN
the	DT
plastic-bodied	DT
,	,
two-seater	DT
Pontiac	DT
Fiero	DT
model	NN
.	.
	
The	NNP
Fiero	DT
plant	NN
was	VBD
viewed	VBN
as	IN
a	DT
model	NN
of	IN
union-management	DT
cooperation	NN
at	IN
GM	NNP
before	IN
slow	JJ
sales	NNS
of	IN
the	DT
Fiero	DT
forced	VBD
the	DT
company	NN
to	DT
close	NN
the	DT
factory	NN
last	JJ
year	NN
.	.
	
Union	NNP
officials	NNS
have	VBP
taken	VBN
a	DT
beating	DT
politically	RB
as	IN
a	DT
result	NN
.	.
	
Dissident	DT
UAW	DT
members	NNS
have	VBP
used	VBN
the	DT
Fiero	DT
plant	NN
as	IN
a	DT
symbol	NN
of	IN
labor-management	DT
cooperation	NN
's	VBZ
failure	NN
.	.
	
Institut	DT
Merieux	DT
S.A.	DT
of	IN
France	NNP
said	VBN
the	DT
Canadian	JJ
government	NN
raised	VBN
an	DT
obstacle	DT
to	DT
its	DT
proposed	VBN
acquisition	NN
of	IN
Connaught	DT
BioSciences	DT
Inc.	DT
for	IN
942	DT
million	CD
Canadian	JJ
dollars	NNS
(	(
US$	DT
801.6	DT
million	CD
)	)
.	.
	
Merieux	DT
said	VBN
the	DT
government	NN
's	VBZ
minister	NN
of	IN
industry	NN
,	,
science	NN
and	CC
technology	NN
told	VBN
it	DT
that	WDT
he	DT
was	VBD
n't	RB
convinced	DT
that	WDT
the	DT
purchase	NN
is	VBZ
likely	JJ
to	DT
be	DT
of	IN
``	``
net	JJ
benefit	NN
''	''
to	DT
Canada	NNP
.	.
	
Canadian	JJ
investment	NN
rules	NNS
require	VBP
that	WDT
big	JJ
foreign	JJ
takeovers	NNS
meet	VBP
that	WDT
standard	NN
.	.
	
The	NNP
French	JJ
company	NN
said	VBN
the	DT
government	NN
gave	VBD
it	DT
30	CD
days	NNS
in	IN
which	DT
to	DT
submit	DT
information	NN
to	DT
further	JJ
support	NN
its	DT
takeover	NN
plan	NN
.	.
	
Both	DT
Merieux	DT
and	CC
Connaught	DT
are	VBP
biotechnology	NN
research	NN
and	CC
vaccine	DT
manufacturing	VBG
concerns	DT
.	.
	
The	NNP
government	NN
's	VBZ
action	NN
was	VBD
unusual	JJ
.	.
	
Alan	NNP
Nymark	DT
,	,
executive	NN
vice	NN
president	NN
of	IN
Investment	NNP
Canada	NNP
,	,
which	DT
oversees	VBZ
foreign	JJ
takeovers	NNS
,	,
said	VBN
it	DT
marked	DT
the	DT
first	JJ
time	NN
in	IN
its	DT
four-year	DT
history	DT
that	WDT
the	DT
agency	NN
has	VBZ
made	VBN
an	DT
adverse	JJ
net-benefit	DT
decision	NN
about	IN
the	DT
acquisition	NN
of	IN
a	DT
publicly	RB
traded	VBN
company	NN
.	.
	
He	DT
said	VBN
it	DT
has	VBZ
reached	VBN
the	DT
same	JJ
conclusions	DT
about	IN
some	DT
attempts	DT
to	DT
buy	DT
closely	RB
held	VBN
concerns	DT
,	,
but	CC
eventually	RB
allowed	VBN
those	DT
acquisitions	NNS
to	DT
proceed	DT
.	.
	
``	``
This	DT
is	VBZ
n't	RB
a	DT
change	NN
in	IN
government	NN
policy	NN
;	;
this	DT
provision	NN
has	VBZ
been	VBN
used	VBN
before	IN
,	,
''	''
said	VBN
Jodi	DT
Redmond	DT
,	,
press	NN
secretary	NN
for	IN
Harvie	DT
Andre	DT
,	,
Canada	NNP
's	VBZ
minister	NN
of	IN
industry	NN
,	,
science	NN
and	CC
technology	NN
.	.
	
Mr.	DT
Andre	DT
issued	VBN
the	DT
ruling	NN
based	VBN
on	IN
a	DT
recommendation	DT
by	IN
Investment	NNP
Canada	NNP
.	.
	
Spokesmen	DT
for	IN
Merieux	DT
and	CC
Connaught	DT
said	VBN
they	DT
had	VBN
n't	RB
been	VBN
informed	VBN
of	IN
specific	JJ
areas	NNS
of	IN
concern	NN
by	IN
either	RB
the	DT
government	NN
or	CC
Investment	NNP
Canada	NNP
,	,
but	CC
added	VBN
they	DT
hope	VB
to	DT
have	VBP
more	RBR
information	NN
early	JJ
this	DT
week	NN
.	.
	
Investment	NNP
Canada	NNP
declined	VBD
to	DT
comment	NN
on	IN
the	DT
reasons	NNS
for	IN
the	DT
government	NN
decision	NN
.	.
	
Viren	DT
Mehta	DT
,	,
a	DT
partner	NN
with	IN
Mehta	DT
&	&
Isaly	DT
,	,
a	DT
New	NNP
York-based	JJ
pharmaceutical	DT
industry	NN
research	NN
firm	NN
,	,
said	VBN
the	DT
government	NN
's	VBZ
ruling	NN
was	VBD
n't	RB
unexpected	JJ
.	.
	
``	``
This	DT
has	VBZ
become	VBN
a	DT
very	RB
politicized	VBN
deal	NN
,	,
concerning	VBG
Canada	NNP
's	VBZ
only	RB
large	JJ
,	,
world-class	DT
bio-research	DT
or	CC
pharmaceutical	DT
company	NN
,	,
''	''
Mr.	DT
Mehta	DT
said	VBN
.	.
	
Mr.	DT
Mehta	DT
said	VBN
the	DT
move	NN
that	WDT
could	MD
allow	DT
the	DT
transaction	NN
to	DT
go	VBP
ahead	RB
as	IN
planned	VBN
could	MD
be	DT
an	DT
out-of-court	DT
settlement	NN
of	IN
Connaught	DT
's	VBZ
dispute	NN
with	IN
the	DT
University	NNP
of	IN
Toronto	DT
.	.
	
The	NNP
University	NNP
is	VBZ
seeking	VBG
to	DT
block	NN
the	DT
acquisition	NN
of	IN
Connaught	DT
by	IN
foreign	JJ
interests	NNS
,	,
citing	VBG
concerns	DT
about	IN
the	DT
amount	NN
of	IN
research	NN
that	WDT
would	MD
be	DT
done	VBN
in	IN
Canada	NNP
.	.
	
The	NNP
university	DT
is	VBZ
considering	VBG
a	DT
settlement	NN
proposal	NN
made	VBN
by	IN
Connaught	DT
.	.
	
While	IN
neither	CC
side	NN
will	MD
disclose	DT
its	DT
contents	DT
,	,
Mr.	DT
Mehta	DT
expects	VBZ
it	DT
to	DT
contain	VBP
more	RBR
specific	JJ
guarantees	DT
on	IN
research	NN
and	CC
development	NN
spending	NN
levels	NNS
in	IN
Canada	NNP
than	IN
Merieux	DT
offered	VBN
to	DT
Investment	NNP
Canada	NNP
.	.
	
Some	DT
analysts	NNS
,	,
such	JJ
as	IN
Murray	DT
Grossner	DT
of	IN
Toronto-based	DT
Richardson	NNP
Greenshields	DT
Inc.	DT
,	,
believe	VBP
the	DT
government	NN
ruling	NN
leaves	DT
the	DT
door	DT
open	JJ
for	IN
other	JJ
bidders	NNS
,	,
such	JJ
as	IN
Switzerland	DT
's	VBZ
Ciba-Geigy	DT
and	CC
Chiron	DT
Corp.	DT
of	IN
Emeryville	DT
,	,
Calif	NNP
.	.
	
Officials	DT
for	IN
the	DT
two	CD
concerns	DT
,	,
which	DT
are	VBP
bidding	NN
C$	DT
30	CD
a	DT
share	NN
for	IN
Connaught	DT
,	,
could	MD
n't	RB
be	DT
reached	VBN
for	IN
comment	NN
.	.
	
French	JJ
state-owned	DT
Rhone-Poulenc	DT
S.A.	DT
holds	DT
51	DT
%	%
of	IN
Merieux	DT
.	.
	
Weatherford	DT
International	NNP
Inc.	DT
said	VBD
it	DT
canceled	VBN
plans	NNS
for	IN
a	DT
preferred-stock	DT
swap	DT
but	CC
may	MD
resume	DT
payment	NN
of	IN
dividends	NNS
on	IN
the	DT
stock	NN
,	,
and	CC
added	VBN
that	WDT
it	DT
expects	VBZ
to	DT
publicly	RB
offer	NN
about	IN
10	CD
million	CD
common	JJ
shares	NNS
.	.
	
The	NNP
company	NN
said	VBN
it	DT
planned	VBN
to	DT
offer	NN
an	DT
undetermined	DT
number	NN
of	IN
common	JJ
shares	NNS
in	IN
exchange	NN
for	IN
the	DT
585,000	CD
shares	NNS
of	IN
its	DT
preferred	DT
stock	NN
outstanding	JJ
.	.
	
The	NNP
exchange	NN
ratio	NN
was	VBD
never	RB
established	VBN
.	.
	
Weatherford	DT
said	VBN
market	NN
conditions	NNS
led	VBN
to	DT
the	DT
cancellation	DT
of	IN
the	DT
planned	VBN
exchange	NN
.	.
	
The	NNP
energy-services	DT
concern	NN
said	VBN
,	,
however	RB
,	,
that	WDT
in	IN
January	NNP
1990	CD
,	,
it	DT
may	MD
resume	DT
payments	NNS
of	IN
dividends	NNS
on	IN
the	DT
preferred	DT
stock	NN
.	.
	
Weatherford	DT
suspended	VBN
its	DT
preferred-dividend	DT
payment	NN
in	IN
October	NNP
1985	DT
and	CC
said	VBN
it	DT
has	VBZ
n't	RB
any	DT
plans	NNS
to	DT
catch	DT
up	IN
on	IN
dividends	NNS
in	IN
arrears	DT
about	IN
$	$
6	CD
million	CD
,	,
but	CC
will	MD
do	VBP
so	IN
some	DT
time	NN
in	IN
the	DT
future	NN
.	.
	
Additionally	DT
,	,
the	DT
company	NN
said	VBN
it	DT
filed	VBN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
for	IN
the	DT
proposed	VBN
offering	VBG
of	IN
10	CD
million	CD
shares	NNS
of	IN
common	JJ
stock	NN
,	,
expected	VBN
to	DT
be	DT
offered	VBN
in	IN
November	NNP
.	.
	
The	NNP
company	NN
said	VBN
Salomon	DT
Brothers	DT
Inc.	DT
and	CC
Howard	NNP
,	,
Weil	DT
,	,
Labouisse	DT
,	,
Friedrichs	DT
Inc.	DT
,	,
underwriters	DT
for	IN
the	DT
offering	VBG
,	,
were	VBD
granted	DT
an	DT
option	NN
to	DT
buy	DT
as	IN
much	JJ
as	IN
an	DT
additional	JJ
1.5	CD
million	CD
shares	NNS
to	DT
cover	NN
over-allotments	DT
.	.
	
Proceeds	DT
will	MD
be	DT
used	VBN
to	DT
eliminate	DT
and	CC
restructure	DT
bank	NN
debt	NN
.	.
	
Weatherford	DT
currently	RB
has	VBZ
approximately	RB
11.1	CD
million	CD
common	JJ
shares	NNS
outstanding	JJ
.	.
	
Earnings	DT
for	IN
most	RBS
of	IN
the	DT
nation	NN
's	VBZ
major	JJ
pharmaceutical	DT
makers	NNS
are	VBP
believed	VBN
to	DT
have	VBP
moved	VBD
ahead	RB
briskly	DT
in	IN
the	DT
third	JJ
quarter	NN
,	,
as	IN
companies	NNS
with	IN
newer	DT
,	,
big-selling	DT
prescription	DT
drugs	DT
fared	DT
especially	RB
well	RB
.	.
	
For	IN
the	DT
third	JJ
consecutive	JJ
quarter	NN
,	,
however	RB
,	,
most	RBS
of	IN
the	DT
companies	NNS
'	'
revenues	NNS
were	VBD
battered	VBN
by	IN
adverse	JJ
foreign-currency	DT
translations	DT
as	IN
a	DT
result	NN
of	IN
the	DT
strong	JJ
dollar	NN
abroad	RB
.	.
	
Analysts	NNS
said	VBN
that	WDT
Merck	DT
&	&
Co.	DT
,	,
Eli	NNP
Lilly	NNP
&	&
Co.	DT
,	,
Warner-Lambert	DT
Co.	DT
and	CC
the	DT
Squibb	DT
Corp.	DT
unit	NN
of	IN
Bristol-Myers	DT
Squibb	DT
Co.	DT
all	DT
benefited	VBD
from	IN
strong	JJ
sales	NNS
of	IN
relatively	RB
new	JJ
,	,
higher-priced	DT
medicines	DT
that	WDT
provide	VBP
wide	JJ
profit	NN
margins	NNS
.	.
	
Less	DT
robust	JJ
earnings	NNS
at	IN
Pfizer	DT
Inc.	DT
and	CC
Upjohn	NNP
Co.	DT
were	VBD
attributed	DT
to	DT
those	DT
companies	NNS
'	'
older	DT
products	NNS
,	,
many	JJ
of	IN
which	DT
face	NN
stiffening	DT
competition	NN
from	IN
generic	DT
drugs	DT
and	CC
other	JJ
medicines	DT
.	.
	
Joseph	DT
Riccardo	DT
,	,
an	DT
analyst	NN
with	IN
Bear	DT
,	,
Stearns	DT
&	&
Co.	DT
,	,
said	VBN
that	WDT
over	IN
the	DT
past	NN
few	JJ
years	NNS
most	RBS
drug	NN
makers	NNS
have	VBP
shed	DT
their	DT
slow-growing	DT
businesses	NNS
and	CC
instituted	DT
other	JJ
cost	NN
savings	DT
,	,
such	JJ
as	IN
consolidating	DT
manufacturing	VBG
plants	NNS
and	CC
administrative	DT
staffs	DT
.	.
	
As	IN
a	DT
result	NN
,	,
``	``
major	JJ
new	JJ
products	NNS
are	VBP
having	VBG
significant	JJ
impact	NN
,	,
even	RB
on	IN
a	DT
company	NN
with	IN
very	RB
large	JJ
revenues	NNS
,	,
''	''
Mr.	DT
Riccardo	DT
said	VBN
.	.
	
Analysts	NNS
said	VBN
profit	NN
for	IN
the	DT
dozen	DT
or	CC
so	IN
big	JJ
drug	NN
makers	NNS
,	,
as	IN
a	DT
group	NN
,	,
is	VBZ
estimated	VBN
to	DT
have	VBP
climbed	VBD
between	IN
11	CD
%	%
and	CC
14	CD
%	%
.	.
	
While	IN
that	WDT
's	VBZ
not	RB
spectacular	DT
,	,
Neil	NNP
Sweig	DT
,	,
an	DT
analyst	NN
with	IN
Prudential	DT
Bache	DT
,	,
said	VBN
that	WDT
the	DT
rate	NN
of	IN
growth	NN
will	MD
``	``
look	VBP
especially	RB
good	JJ
as	IN
compared	VBN
to	DT
other	JJ
companies	NNS
if	IN
the	DT
economy	NN
turns	DT
downward	DT
.	.
''	''
	
Mr.	DT
Sweig	DT
estimated	VBN
that	WDT
Merck	DT
's	VBZ
profit	NN
for	IN
the	DT
quarter	NN
rose	VBD
by	IN
about	IN
22	CD
%	%
,	,
propelled	DT
by	IN
sales	NNS
of	IN
its	DT
line-up	DT
of	IN
fast-growing	DT
prescription	DT
drugs	DT
,	,
including	VBG
its	DT
anti-cholesterol	DT
drug	NN
,	,
Mevacor	DT
;	;
a	DT
high	JJ
blood	DT
pressure	NN
medicine	DT
,	,
Vasotec	DT
;	;
Primaxin	DT
,	,
an	DT
antibiotic	DT
,	,
and	CC
Pepcid	DT
,	,
an	DT
anti-ulcer	DT
medication	DT
.	.
	
Profit	DT
climbed	VBD
even	RB
though	RB
Merck	DT
's	VBZ
sales	NNS
were	VBD
reduced	VBN
by	IN
``	``
one	CD
to	DT
three	CD
percentage	NN
points	NNS
''	''
as	IN
a	DT
result	NN
of	IN
the	DT
strong	JJ
dollar	NN
,	,
Mr.	DT
Sweig	DT
said	VBN
.	.
	
In	IN
the	DT
third	JJ
quarter	NN
of	IN
1988	CD
,	,
Merck	DT
earned	VBN
$	$
311.8	DT
million	CD
,	,
or	CC
79	CD
cents	NNS
a	DT
share	NN
.	.
	
In	IN
Rahway	DT
,	,
N.J.	DT
,	,
a	DT
Merck	DT
spokesman	NN
said	VBN
the	DT
company	NN
does	VBZ
n't	RB
make	VBP
earnings	NNS
projections	NNS
.	.
	
Mr.	DT
Sweig	DT
said	VBN
he	DT
estimated	VBN
that	WDT
Lilly	NNP
's	VBZ
earnings	NNS
for	IN
the	DT
quarter	NN
jumped	VBD
about	IN
20	CD
%	%
,	,
largely	RB
because	IN
of	IN
the	DT
performance	NN
of	IN
its	DT
new	JJ
anti-depressant	DT
Prozac	DT
.	.
	
The	NNP
drug	NN
,	,
introduced	VBN
last	JJ
year	NN
,	,
is	VBZ
expected	VBN
to	DT
generate	DT
sales	NNS
of	IN
about	IN
$	$
300	CD
million	CD
this	DT
year	NN
.	.
	
``	``
It	PRP
's	VBZ
turning	VBG
out	IN
to	DT
be	DT
a	DT
real	JJ
blockbuster	DT
,	,
''	''
Mr.	DT
Sweig	DT
said	VBN
.	.
	
In	IN
last	JJ
year	NN
's	VBZ
third	JJ
quarter	NN
,	,
Lilly	NNP
earned	VBN
$	$
171.4	DT
million	CD
,	,
or	CC
$	$
1.20	DT
a	DT
share	NN
.	.
	
In	IN
Indianapolis	DT
,	,
Lilly	NNP
declined	VBD
comment	NN
.	.
	
Several	JJ
analysts	NNS
said	VBN
they	DT
expected	VBN
Warner-Lambert	DT
's	VBZ
profit	NN
also	RB
to	DT
increase	NN
by	IN
more	RBR
than	IN
20	CD
%	%
from	IN
$	$
87.7	DT
million	CD
,	,
or	CC
$	$
1.25	DT
a	DT
share	NN
,	,
it	DT
reported	VBN
in	IN
the	DT
like	JJ
period	NN
last	JJ
year	NN
.	.
	
The	NNP
company	NN
is	VBZ
praised	DT
by	IN
analysts	NNS
for	IN
sharply	RB
lowering	DT
its	DT
costs	NNS
in	IN
recent	JJ
years	NNS
and	CC
shedding	DT
numerous	JJ
companies	NNS
with	IN
low	JJ
profit	NN
margins	NNS
.	.
	
The	NNP
company	NN
's	VBZ
lean	DT
operation	NN
,	,
analysts	NNS
said	VBN
,	,
allowed	VBN
sharp-rising	DT
sales	NNS
from	IN
its	DT
cholesterol	DT
drug	NN
,	,
Lopid	DT
,	,
to	DT
power	NN
earnings	NNS
growth	NN
.	.
	
Lopid	DT
sales	NNS
are	VBP
expected	VBN
to	DT
be	DT
about	IN
$	$
300	CD
million	CD
this	DT
year	NN
,	,
up	IN
from	IN
$	$
190	CD
million	CD
in	IN
1988	CD
.	.
	
In	IN
Morris	DT
Plains	DT
,	,
N.J.	DT
,	,
a	DT
spokesman	NN
for	IN
the	DT
company	NN
said	VBN
the	DT
analysts	NNS
'	'
projections	NNS
are	VBP
``	``
in	IN
the	DT
ballpark	DT
.	.
''	''
	
Squibb	DT
's	VBZ
profit	NN
,	,
estimated	VBN
by	IN
analysts	NNS
to	DT
be	DT
about	IN
18	CD
%	%
above	IN
the	DT
$	$
123	DT
million	CD
,	,
or	CC
$	$
1.25	DT
a	DT
share	NN
,	,
it	DT
earned	VBN
in	IN
the	DT
third	JJ
quarter	NN
of	IN
1988	CD
,	,
was	VBD
the	DT
result	NN
of	IN
especially	RB
strong	JJ
sales	NNS
of	IN
its	DT
Capoten	DT
drug	NN
for	IN
treating	DT
high	JJ
blood	DT
pressure	NN
and	CC
other	JJ
heart	DT
disease	NN
.	.
	
The	NNP
company	NN
was	VBD
officially	RB
merged	DT
with	IN
Bristol-Myers	DT
Co.	DT
earlier	JJR
this	DT
month	NN
.	.
	
Bristol-Myers	DT
declined	VBD
to	DT
comment	NN
.	.
	
Mr.	DT
Riccardo	DT
of	IN
Bear	DT
Stearns	DT
said	VBN
that	WDT
Schering-Plough	DT
Corp.	DT
's	PRP
expected	VBN
profit	NN
rise	NN
of	IN
about	IN
18	CD
%	%
to	DT
20	CD
%	%
,	,
and	CC
Bristol-Meyers	DT
's	VBZ
expected	VBN
profit	NN
increase	NN
of	IN
about	IN
13	CD
%	%
are	VBP
largely	RB
because	IN
``	``
those	DT
companies	NNS
are	VBP
really	RB
managed	VBD
well	RB
.	.
''	''
	
ScheringPlough	DT
earned	VBN
$	$
94.4	DT
million	CD
,	,
or	CC
84	DT
cents	NNS
a	DT
share	NN
,	,
while	IN
Bristol-Myers	DT
earned	VBN
$	$
232.3	DT
million	CD
,	,
or	CC
81	DT
cents	NNS
a	DT
share	NN
,	,
in	IN
the	DT
like	JJ
period	NN
a	DT
year	NN
earlier	JJR
.	.
	
In	IN
Madison	DT
,	,
N.J.	DT
,	,
a	DT
spokesman	NN
for	IN
Schering-Plough	DT
said	VBN
the	DT
company	NN
has	VBZ
``	``
no	RB
problems	NNS
''	''
with	IN
the	DT
average	NN
estimate	NN
by	IN
a	DT
analysts	NNS
that	WDT
third-quarter	NN
earnings	NNS
per	IN
share	NN
rose	VBD
by	IN
about	IN
19	CD
%	%
,	,
to	DT
$	$
1	CD
.	.
	
The	NNP
company	NN
expects	VBZ
to	DT
achieve	DT
the	DT
20	CD
%	%
increase	NN
in	IN
full-year	JJ
earnings	NNS
per	IN
share	NN
,	,
as	IN
it	DT
projected	DT
in	IN
the	DT
spring	NN
,	,
the	DT
spokesman	NN
said	VBN
.	.
	
Meanwhile	RB
,	,
analysts	NNS
said	VBN
Pfizer	DT
's	VBZ
recent	JJ
string	DT
of	IN
lackluster	NN
quarterly	DT
performances	DT
continued	VBN
,	,
as	IN
earnings	NNS
in	IN
the	DT
quarter	NN
were	VBD
expected	VBN
to	DT
decline	NN
by	IN
about	IN
5	CD
%	%
.	.
	
Sales	NNS
of	IN
Pfizer	DT
's	VBZ
important	JJ
drugs	DT
,	,
Feldene	DT
for	IN
treating	DT
arthritis	DT
,	,
and	CC
Procardia	DT
,	,
a	DT
heart	DT
medicine	DT
,	,
have	VBP
shrunk	DT
because	IN
of	IN
increased	VBN
competition	NN
.	.
	
``	``
The	NNP
(	(
strong	JJ
)	)
dollar	NN
hurt	VBN
Pfizer	DT
a	DT
lot	NN
,	,
too	RB
,	,
''	''
Mr.	DT
Sweig	DT
said	VBN
.	.
	
In	IN
the	DT
third	JJ
quarter	NN
last	JJ
year	NN
,	,
Pfizer	DT
earned	VBN
$	$
216.8	DT
million	CD
,	,
or	CC
$	$
1.29	CD
a	DT
share	NN
.	.
	
In	IN
New	NNP
York	NNP
,	,
the	DT
company	NN
declined	VBD
comment	NN
.	.
	
Analysts	NNS
said	VBN
they	DT
expected	VBN
Upjohn	NNP
's	VBZ
profit	NN
to	DT
be	DT
flat	JJ
or	CC
rise	NN
by	IN
only	RB
about	IN
2	CD
%	%
to	DT
4	CD
%	%
as	IN
compared	VBN
with	IN
$	$
89.6	DT
million	CD
,	,
or	CC
49	DT
cents	NNS
a	DT
share	NN
,	,
it	DT
earned	VBN
a	DT
year	NN
ago	IN
.	.
	
Upjohn	NNP
's	VBZ
biggest-selling	JJ
drugs	DT
are	VBP
Xanax	DT
,	,
a	DT
tranquilizer	DT
,	,
and	CC
Halcion	DT
,	,
a	DT
sedative	DT
.	.
	
Sales	NNS
of	IN
both	DT
drugs	DT
have	VBP
been	VBN
hurt	VBN
by	IN
new	JJ
state	NN
laws	NNS
restricting	VBG
the	DT
prescriptions	DT
of	IN
certain	JJ
tranquilizing	DT
medicines	DT
and	CC
adverse	JJ
publicity	NN
about	IN
the	DT
excessive	JJ
use	NN
of	IN
the	DT
drugs	DT
.	.
	
Also	RB
,	,
the	DT
company	NN
's	VBZ
hair-growing	DT
drug	NN
,	,
Rogaine	DT
,	,
is	VBZ
selling	NN
well	RB
--	--
at	IN
about	IN
$	$
125	CD
million	CD
for	IN
the	DT
year	NN
,	,
but	CC
the	DT
company	NN
's	VBZ
profit	NN
from	IN
the	DT
drug	NN
has	VBZ
been	VBN
reduced	VBN
by	IN
Upjohn	NNP
's	VBZ
expensive	JJ
print	DT
and	CC
television	NN
campaigns	NNS
for	IN
advertising	NN
,	,
analysts	NNS
said	VBN
.	.
	
In	IN
Kalamazoo	DT
,	,
Mich.	DT
,	,
Upjohn	NNP
declined	VBD
comment	NN
.	.
	
Amid	DT
a	DT
crowd	NN
of	IN
crashing	DT
stocks	NNS
,	,
Relational	DT
Technology	DT
Inc.	DT
's	PRP
stock	NN
fell	VBD
particularly	RB
hard	JJ
Friday	NNP
,	,
dropping	VBG
23	CD
%	%
because	IN
its	DT
problems	NNS
were	VBD
compounded	DT
by	IN
disclosure	NN
of	IN
an	DT
unexpected	JJ
loss	NN
for	IN
its	DT
fiscal	JJ
first	JJ
quarter	NN
.	.
	
The	NNP
database	DT
software	DT
company	NN
said	VBN
it	DT
expects	VBZ
a	DT
$	$
2	CD
million	CD
net	JJ
loss	NN
for	IN
the	DT
fiscal	JJ
first	JJ
quarter	NN
ended	VBD
Sept.	DT
30	CD
.	.
	
It	PRP
said	VBN
analysts	NNS
had	VBN
been	VBN
expecting	VBG
a	DT
small	JJ
profit	NN
for	IN
the	DT
period	NN
.	.
	
Revenue	NN
is	VBZ
expected	VBN
to	DT
be	DT
``	``
up	IN
modestly	DT
''	''
from	IN
the	DT
$	$
26.5	DT
million	CD
reported	VBN
a	DT
year	NN
ago	IN
.	.
	
Relational	DT
Technology	DT
reported	VBN
net	JJ
income	NN
of	IN
$	$
1.5	CD
million	CD
,	,
or	CC
12	CD
cents	NNS
a	DT
share	NN
,	,
in	IN
the	DT
year-earlier	JJ
period	NN
.	.
	
``	``
While	IN
our	DT
international	JJ
operations	NNS
showed	VBD
strong	JJ
growth	NN
,	,
our	DT
domestic	JJ
business	NN
was	VBD
substantially	RB
below	IN
expectations	NNS
,	,
''	''
said	VBN
Paul	NNP
Newton	DT
,	,
president	NN
and	CC
chief	NN
executive	NN
officer	NN
.	.
	
A	DT
spokesman	NN
said	VBN
the	DT
company	NN
's	VBZ
first	JJ
quarter	NN
is	VBZ
historically	DT
soft	DT
,	,
and	CC
computer	NN
companies	NNS
in	IN
general	NN
are	VBP
experiencing	DT
slower	JJR
sales	NNS
.	.
	
Mr.	DT
Newton	DT
said	VBN
he	DT
accepted	DT
the	DT
resignation	NN
of	IN
Thomas	DT
Wilson	NNP
,	,
vice	NN
president	NN
of	IN
corporate	JJ
sales	NNS
,	,
and	CC
that	WDT
his	DT
marketing	NN
responsibilities	DT
have	VBP
been	VBN
reassigned	DT
.	.
	
The	NNP
company	NN
said	VBN
Mr.	DT
Wilson	NNP
's	VBZ
resignation	NN
was	VBD
n't	RB
related	VBN
to	DT
the	DT
sales	NNS
shortfall	DT
.	.
	
Relational	DT
Technology	DT
went	VBD
public	JJ
in	IN
May	NNP
1988	CD
at	IN
$	$
14	CD
a	DT
share	NN
.	.
	
It	PRP
fell	VBD
$	$
1.875	DT
a	DT
share	NN
Friday	NNP
,	,
to	DT
$	$
6.25	DT
,	,
a	DT
new	JJ
low	JJ
,	,
in	IN
over-the-counter	NN
trading	NN
.	.
	
Its	DT
high	JJ
for	IN
the	DT
past	NN
year	NN
was	VBD
$	$
16.375	DT
a	DT
share	NN
.	.
	
In	IN
the	DT
previous	JJ
quarter	NN
,	,
the	DT
company	NN
earned	VBN
$	$
4.5	CD
million	CD
,	,
or	CC
37	DT
cents	NNS
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
47.2	DT
million	CD
.	.
	
The	NNP
Bronx	DT
has	VBZ
a	DT
wonderful	DT
botanical	DT
garden	DT
,	,
a	DT
great	JJ
zoo	DT
,	,
its	DT
own	JJ
charming	DT
Little	JJ
Italy	NNP
(	(
on	IN
Arthur	DT
Avenue	DT
)	)
and	CC
,	,
of	IN
course	NN
,	,
the	DT
Yankees	DT
.	.
	
However	RB
,	,
most	RBS
people	NNS
,	,
having	VBG
been	VBN
subjected	DT
to	DT
news	NN
footage	DT
of	IN
the	DT
devastated	DT
South	NNP
Bronx	DT
,	,
look	VBP
at	IN
the	DT
borough	DT
the	DT
way	NN
Tom	NNP
Wolfe	DT
's	VBZ
Sherman	DT
McCoy	DT
did	VBD
in	IN
``	``
Bonfire	DT
of	IN
the	DT
Vanities	DT
''	''
--	--
as	IN
a	DT
wrong	JJ
turn	NN
into	IN
hell	NN
.	.
	
But	CC
Laura	DT
Cunningham	DT
's	VBZ
Bronx	DT
,	,
her	DT
childhood	DT
Bronx	DT
of	IN
the	DT
'50s	DT
,	,
is	VBZ
something	NN
else	RB
altogether	DT
.	.
	
In	IN
a	DT
lovely	DT
,	,
novelistic	DT
memoir	DT
,	,
``	``
Sleeping	DT
Arrangements	DT
''	''
(	(
Knopf	DT
,	,
195	DT
pages	NNS
,	,
$	$
18.95	DT
)	)
,	,
she	DT
remembers	DT
an	DT
exotic	JJ
playground	DT
,	,
peopled	DT
mainly	RB
by	IN
Jewish	DT
eccentrics	DT
and	CC
the	DT
occasional	DT
Catholic	DT
(	(
real	JJ
oddballs	DT
like	JJ
her	DT
sexpot	DT
friend	DT
,	,
the	DT
hell-kitten	DT
Diana	DT
,	,
age	DT
five	CD
)	)
.	.
	
Ms.	DT
Cunningham	DT
,	,
a	DT
novelist	DT
and	CC
playwright	DT
,	,
has	VBZ
a	DT
vivid	DT
and	CC
dramatically	DT
outsized	DT
sense	NN
of	IN
recall	DT
.	.
	
She	DT
transforms	DT
her	DT
``	``
Bronx	DT
of	IN
the	DT
emotions	DT
,	,
a	DT
place	NN
where	DT
the	DT
flats	DT
of	IN
mediocrity	DT
are	VBP
only	RB
relieved	VBN
by	IN
steep	JJ
descents	DT
into	IN
hysteria	NN
''	''
into	IN
the	DT
``	``
Babylonian	DT
Bronx	DT
,	,
''	''
a	DT
world	NN
simmering	DT
with	IN
sex	DT
and	CC
death	DT
and	CC
intrigue	DT
.	.
	
In	IN
the	DT
Babylonian	DT
Bronx	DT
,	,
Jewish	DT
working-class	DT
people	NNS
lived	VBN
in	IN
drab	DT
,	,
Soviet-style	DT
buildings	NNS
``	``
glamorized	DT
''	''
with	IN
names	DT
like	JJ
AnaMor	DT
Towers	DT
(	(
after	IN
owners	NNS
Anna	DT
and	CC
Morris	DT
Snezak	DT
)	)
,	,
whose	DT
lobbies	DT
and	CC
hallways	DT
were	VBD
decorated	DT
with	IN
murals	DT
of	IN
ancient	DT
Syrians	DT
and	CC
Greeks	NNPS
,	,
friezes	DT
of	IN
Pompeii	DT
.	.
	
For	IN
Ms.	DT
Cunningham	DT
the	DT
architectural	DT
discombobulation	DT
matched	DT
the	DT
discrepancy	DT
she	DT
felt	DT
living	VBG
in	IN
the	DT
AnaMor	DT
Towers	DT
as	IN
a	DT
little	JJ
girl	NN
:	:
``	``
...	...
outwardly	DT
ordinary	JJ
,	,
inwardly	DT
ornate	DT
,	,
owing	DT
all	RB
inspiration	DT
to	DT
heathen	DT
cultures	DT
.	.
''	''
	
Sharp-witted	DT
and	CC
funny	DT
but	CC
never	RB
mean	DT
,	,
she	DT
's	VBZ
a	DT
memorialist	DT
a	DT
bit	NN
like	JJ
Truman	DT
Capote	DT
,	,
if	IN
he	DT
'd	MD
been	VBN
Jewish	DT
and	CC
female	DT
and	CC
less	RBR
bitchy	DT
.	.
	
Little	JJ
Lily	DT
,	,
as	IN
Ms.	DT
Cunningham	DT
calls	VBZ
herself	DT
in	IN
the	DT
book	NN
,	,
really	RB
was	VBD
n't	RB
ordinary	JJ
.	.
	
She	DT
was	VBD
raised	VBN
,	,
for	IN
the	DT
first	JJ
eight	CD
years	NNS
,	,
by	IN
her	DT
mother	NN
,	,
Rosie	DT
,	,
whom	WP
she	DT
remembers	DT
as	IN
a	DT
loving	DT
liar	DT
,	,
who	WP
realigned	DT
history	DT
to	DT
explain	DT
why	DT
Lily	DT
's	VBZ
father	NN
did	VBD
n't	RB
live	DT
with	IN
them	DT
.	.
	
Rosie	DT
reinvented	DT
this	DT
man	NN
,	,
who	WP
may	MD
or	CC
may	MD
not	RB
have	VBP
known	VBN
about	IN
his	DT
child	DT
,	,
as	IN
a	DT
war	NN
hero	DT
for	IN
Lily	DT
's	VBZ
benefit	NN
.	.
	
Rosie	DT
died	DT
young	JJ
and	CC
Lily	DT
has	VBZ
remembered	DT
her	DT
as	IN
a	DT
romantic	DT
figure	NN
,	,
who	WP
did	VBD
n't	RB
interfere	DT
much	JJ
with	IN
her	DT
child	DT
's	VBZ
education	NN
on	IN
the	DT
streets	NNS
.	.
	
The	NNP
games	NNS
Bronx	DT
children	NNS
played	VBD
(	(
holding	VBG
kids	NNS
down	IN
and	CC
stripping	VBG
them	DT
,	,
for	IN
example	NN
)	)
seem	VBP
tame	JJ
by	IN
today	NN
's	VBZ
crack	DT
standards	NNS
,	,
but	CC
Ms.	DT
Cunningham	DT
makes	VBZ
it	DT
all	RB
sound	DT
like	JJ
a	DT
great	JJ
adventure	DT
.	.
	
``	``
Without	IN
official	NN
knowledge	NN
of	IN
sex	DT
or	CC
death	DT
,	,
we	DT
flirted	DT
with	IN
both	DT
,	,
''	''
she	DT
writes	DT
.	.
	
She	DT
analyzed	VBD
families	NNS
by	IN
their	DT
sleeping	DT
arrangements	DT
.	.
	
Her	DT
friend	DT
Susan	DT
,	,
whose	DT
parents	NNS
kept	VBN
reminding	DT
her	DT
she	DT
was	VBD
unwanted	DT
,	,
slept	DT
on	IN
a	DT
narrow	DT
bed	DT
wedged	DT
into	IN
her	DT
parents	NNS
'	'
bedroom	DT
,	,
as	IN
though	RB
she	DT
were	VBD
a	DT
temporary	JJ
visitor	NN
.	.
	
Her	DT
friend	DT
Diana	DT
's	VBZ
father	NN
was	VBD
a	DT
professional	JJ
thief	DT
;	;
they	DT
did	VBD
n't	RB
seem	VBP
to	DT
have	VBP
any	DT
bedrooms	DT
at	IN
all	RB
.	.
	
Maybe	DT
Lily	DT
became	VBD
so	IN
obsessed	DT
with	IN
where	DT
people	NNS
slept	DT
and	CC
how	DT
because	IN
her	DT
own	JJ
arrangements	DT
kept	VBN
shifting	DT
.	.
	
When	DT
Rosie	DT
died	DT
,	,
her	DT
uncles	DT
moved	VBD
in	IN
--	--
and	CC
let	VBN
her	DT
make	VBP
the	DT
sleeping	DT
and	CC
other	JJ
household	DT
arrangements	DT
.	.
	
They	DT
painted	DT
the	DT
apartment	DT
orange	DT
,	,
pink	DT
and	CC
white	JJ
,	,
according	VBG
to	DT
her	DT
instructions	DT
.	.
	
With	IN
loving	DT
detail	NN
she	DT
recalls	VBZ
her	DT
Uncle	NNP
Gabe	DT
,	,
an	DT
Orthodox	NNP
Jew	DT
and	CC
song	DT
lyricist	DT
(	(
who	WP
rhymed	DT
river	DT
with	IN
liver	DT
in	IN
a	DT
love	DT
song	DT
)	)
;	;
and	CC
Uncle	NNP
Len	DT
,	,
a	DT
mysterious	DT
part-time	DT
investigator	DT
who	WP
looked	VBD
like	JJ
Lincoln	NNP
and	CC
carried	VBD
a	DT
change	NN
of	IN
clothing	DT
in	IN
a	DT
Manila	DT
envelope	DT
,	,
like	JJ
an	DT
``	``
undercover	DT
President	NNP
on	IN
a	DT
good-will	DT
mission	NN
.	.
''	''
	
They	DT
came	VBD
by	IN
their	DT
strangeness	DT
honestly	DT
.	.
	
Lily	DT
's	VBZ
grandmother	DT
,	,
no	RB
cookie	DT
baker	DT
,	,
excised	DT
the	DT
heads	VBZ
of	IN
disliked	DT
relatives	DT
from	IN
the	DT
family	NN
album	DT
,	,
and	CC
lugged	DT
around	IN
her	DT
perennial	DT
work-in-progress	DT
,	,
``	``
Philosophy	DT
for	IN
Women	DT
.	.
''	''
	
The	NNP
book	NN
loses	VBZ
some	DT
momentum	NN
toward	IN
the	DT
end	NN
,	,
when	DT
Lily	DT
becomes	VBZ
more	RBR
preoccupied	VBN
with	IN
dating	DT
boys	NNS
and	CC
less	RBR
with	IN
her	DT
delightfully	DT
weird	DT
family	NN
.	.
	
For	IN
the	DT
most	RBS
part	NN
,	,
though	RB
,	,
there	RB
's	VBZ
much	JJ
pleasure	DT
in	IN
her	DT
saucy	DT
,	,
poignant	DT
probe	NN
into	IN
the	DT
mysteries	DT
of	IN
the	DT
Babylonian	DT
Bronx	DT
.	.
	
The	NNP
Bronx	DT
also	RB
figures	NNS
in	IN
Bruce	DT
Jay	DT
Friedman	NNP
's	VBZ
latest	JJS
novel	DT
,	,
which	DT
flashes	DT
back	VB
to	DT
the	DT
New	NNP
York	NNP
of	IN
the	DT
'50s	DT
.	.
	
But	CC
both	DT
the	DT
past	NN
and	CC
present	JJ
worlds	DT
of	IN
``	``
The	NNP
Current	DT
Climate	DT
''	''
(	(
Atlantic	NNP
Monthly	DT
Press	DT
,	,
200	CD
pages	NNS
,	,
$	$
18.95	DT
)	)
feel	VBP
cramped	DT
and	CC
static	DT
.	.
	
For	IN
his	DT
sixth	DT
novel	DT
,	,
Mr.	DT
Friedman	NNP
tried	VBN
to	DT
resuscitate	DT
the	DT
protagonist	DT
of	IN
his	DT
1972	DT
work	NN
,	,
``	``
About	DT
Harry	DT
Towns	DT
.	.
''	''
	
Harry	DT
is	VBZ
now	RB
a	DT
57-year-old	DT
writer	NN
,	,
whose	DT
continuing	VBG
flirtation	DT
with	IN
drugs	DT
and	CC
marginal	DT
types	DT
in	IN
Hollywood	NNP
and	CC
New	NNP
York	NNP
seems	VBZ
quaintly	DT
out-of-synch	DT
.	.
	
Harry	DT
fondly	DT
remembers	DT
the	DT
``	``
old	JJ
''	''
days	NNS
of	IN
the	DT
early	JJ
'70s	DT
,	,
when	DT
people	NNS
like	JJ
his	DT
friend	DT
Travis	DT
would	MD
take	VBP
a	DT
psychiatrist	DT
on	IN
a	DT
date	DT
to	DT
analyze	DT
what	WP
Travis	DT
was	VBD
doing	VBG
wrong	JJ
.	.
	
``	``
An	DT
L.A.	DT
solution	NN
,	,
''	''
explains	DT
Mr.	DT
Friedman	NNP
.	.
	
Line	DT
by	IN
line	NN
Mr.	DT
Friedman	NNP
's	VBZ
weary	DT
cynicism	DT
can	MD
be	DT
amusing	DT
,	,
especially	RB
when	DT
he	DT
's	VBZ
riffing	DT
on	IN
the	DT
Hollywood	NNP
social	JJ
scheme	NN
--	--
the	DT
way	NN
people	NNS
size	NN
each	DT
other	JJ
up	IN
,	,
immediately	RB
canceling	DT
the	DT
desperate	DT
ones	NNS
who	WP
merely	RB
almost	RB
made	VBN
it	DT
.	.
	
Harry	DT
has	VBZ
avoided	DT
all	RB
that	WDT
by	IN
living	VBG
in	IN
a	DT
Long	DT
Island	DT
suburb	DT
with	IN
his	DT
wife	DT
,	,
who	WP
's	VBZ
so	IN
addicted	DT
to	DT
soap	DT
operas	DT
and	CC
mystery	DT
novels	DT
she	DT
barely	RB
seems	VBZ
to	DT
notice	NN
when	DT
her	DT
husband	DT
disappears	DT
for	IN
drug-seeking	DT
forays	DT
into	IN
Manhattan	NNP
.	.
	
But	CC
it	DT
does	VBZ
n't	RB
take	VBP
too	RB
many	JJ
lines	NNS
to	DT
figure	NN
Harry	DT
out	IN
.	.
	
He	DT
's	VBZ
a	DT
bore	DT
.	.
	
Gulf	DT
Resources	NNPS
&	&
Chemical	DT
Corp.	DT
said	VBD
it	DT
agreed	VBN
to	DT
pay	NN
$	$
1.5	CD
million	CD
as	IN
part	NN
of	IN
an	DT
accord	NN
with	IN
the	DT
Environmental	DT
Protection	DT
Agency	NNP
regarding	VBG
an	DT
environmental	JJ
cleanup	DT
of	IN
a	DT
defunct	JJ
smelter	DT
the	DT
company	NN
formerly	RB
operated	DT
in	IN
Idaho	DT
.	.
	
In	IN
1984	CD
the	DT
EPA	DT
notified	VBN
Gulf	DT
Resources	NNPS
,	,
which	DT
was	VBD
a	DT
part-owner	DT
of	IN
the	DT
smelter	DT
,	,
that	WDT
it	DT
was	VBD
potentially	RB
liable	JJ
for	IN
sharing	VBG
cleanup	DT
costs	NNS
at	IN
the	DT
site	NN
under	IN
the	DT
federal	JJ
Superfund	DT
program	NN
.	.
	
The	NNP
21-square-mile	DT
area	NN
is	VBZ
contaminated	DT
with	IN
lead	NN
,	,
zinc	DT
and	CC
other	JJ
metals	DT
.	.
	
Gulf	DT
Resources	NNPS
earlier	JJR
this	DT
year	NN
proposed	VBN
a	DT
reorganization	DT
plan	NN
that	WDT
would	MD
make	VBP
it	DT
a	DT
unit	NN
of	IN
a	DT
Bermuda	DT
concern	NN
,	,
potentially	RB
exempting	DT
it	DT
from	IN
liability	NN
for	IN
the	DT
smelter	DT
's	VBZ
cleanup	DT
costs	NNS
.	.
	
The	NNP
company	NN
said	VBN
that	WDT
as	IN
part	NN
of	IN
its	DT
agreement	NN
with	IN
the	DT
EPA	DT
,	,
it	DT
``	``
made	VBN
certain	JJ
voluntary	JJ
undertakings	DT
with	IN
respect	NN
to	DT
intercorporate	DT
transactions	NNS
entered	VBN
into	IN
after	IN
the	DT
reorganization	DT
.	.
''	''
	
The	NNP
company	NN
,	,
which	DT
issued	VBN
a	DT
statement	NN
on	IN
the	DT
agreement	NN
late	JJ
Friday	NNP
,	,
said	VBN
that	WDT
$	$
1	CD
million	CD
of	IN
the	DT
payment	NN
was	VBD
previously	RB
provided	VBN
for	IN
in	IN
its	DT
financial	JJ
statements	NNS
and	CC
that	WDT
$	$
500,000	DT
will	MD
be	DT
recognized	DT
in	IN
its	DT
1989	CD
third-quarter	NN
statement	NN
.	.
	
The	NNP
agreement	NN
and	CC
consent	NN
decree	DT
are	VBP
subject	NN
to	DT
court	NN
approval	NN
,	,
the	DT
company	NN
said	VBN
.	.
	
Gulf	DT
Resources	NNPS
added	VBN
that	WDT
it	DT
``	``
will	MD
seek	VBP
to	DT
recover	DT
equitable	DT
contribution	DT
from	IN
others	NNS
for	IN
both	DT
the	DT
amount	NN
of	IN
the	DT
settlement	NN
and	CC
any	DT
other	JJ
liabilities	DT
it	DT
may	MD
incur	DT
under	IN
the	DT
Superfund	DT
law	NN
.	.
''	''
	
Under	IN
the	DT
agreement	NN
,	,
Gulf	DT
must	MD
give	VBP
the	DT
U.S.	DT
government	NN
45	CD
days	NNS
'	'
advance	DT
written	VBN
notice	NN
before	IN
issuing	DT
any	DT
dividends	NNS
on	IN
common	JJ
stock	NN
.	.
	
The	NNP
company	NN
's	VBZ
net	JJ
worth	JJ
can	MD
not	RB
fall	NN
below	IN
$	$
185	DT
million	CD
after	IN
the	DT
dividends	NNS
are	VBP
issued	VBN
.	.
	
``	``
The	NNP
terms	NNS
of	IN
that	WDT
agreement	NN
only	RB
become	VBN
effective	DT
the	DT
date	DT
of	IN
Gulf	DT
's	VBZ
reorganization	DT
,	,
which	DT
we	DT
anticipate	DT
will	MD
occur	DT
sometime	DT
in	IN
early	JJ
1990	CD
,	,
''	''
said	VBN
Lawrence	DT
R.	DT
Mehl	DT
,	,
Gulf	DT
's	VBZ
general	NN
counsel	NN
.	.
	
In	IN
addition	NN
,	,
Gulf	DT
must	MD
give	VBP
the	DT
government	NN
20	CD
days	NNS
'	'
advance	DT
written	VBN
notice	NN
of	IN
any	DT
loans	NNS
exceeding	DT
$	$
50	CD
million	CD
that	WDT
are	VBP
made	VBN
to	DT
the	DT
Bermuda-based	DT
holding	VBG
company	NN
.	.
	
Gulf	DT
's	VBZ
net	JJ
worth	JJ
after	IN
those	DT
transaction	NN
must	MD
be	DT
at	IN
least	JJS
$	$
150	CD
million	CD
.	.
	
Separately	RB
,	,
the	DT
company	NN
said	VBN
it	DT
expects	VBZ
to	DT
hold	VBP
a	DT
special	JJ
meeting	NN
for	IN
shareholders	NNS
in	IN
early	JJ
1990	CD
to	DT
vote	NN
on	IN
its	DT
proposed	VBN
reorganization	DT
.	.
	
Many	JJ
of	IN
the	DT
nation	NN
's	VBZ
highest-ranking	DT
executives	NNS
saluted	DT
Friday	NNP
's	VBZ
market	NN
plunge	NN
as	IN
an	DT
overdue	JJ
comeuppance	DT
for	IN
speculators	NNS
and	CC
takeover	NN
players	NNS
.	.
	
Assuming	VBG
that	WDT
the	DT
market	NN
does	VBZ
n't	RB
head	NN
into	IN
a	DT
bottomless	DT
free	JJ
fall	NN
,	,
some	DT
executives	NNS
think	VBP
Friday	NNP
's	VBZ
action	NN
could	MD
prove	VBP
a	DT
harbinger	DT
of	IN
good	JJ
news	NN
--	--
as	IN
a	DT
sign	NN
that	WDT
the	DT
leveraged	JJ
buy-out	NN
and	CC
takeover	NN
frenzy	DT
of	IN
recent	JJ
years	NNS
may	MD
be	DT
abating	VBG
.	.
	
``	``
This	DT
is	VBZ
a	DT
reaction	NN
to	DT
artificial	DT
LBO	NNP
valuations	DT
,	,
rather	RB
than	IN
to	DT
any	DT
fundamentals	DT
,	,
''	''
said	VBN
John	NNP
Young	NNP
,	,
chairman	NN
of	IN
Hewlett-Packard	DT
Co.	DT
,	,
whose	DT
shares	NNS
dropped	VBN
$	$
3.125	DT
to	DT
$	$
48.125	DT
.	.
	
``	``
If	IN
we	DT
get	VBP
rid	JJ
of	IN
a	DT
lot	NN
of	IN
that	WDT
nonsense	DT
,	,
it	DT
will	MD
be	DT
a	DT
big	JJ
plus	CC
.	.
''	''
	
A	DT
few	JJ
of	IN
the	DT
executives	NNS
here	RB
for	IN
the	DT
fall	NN
meeting	NN
of	IN
the	DT
Business	NNP
Council	NNP
,	,
a	DT
group	NN
that	WDT
meets	VBZ
to	DT
discuss	VBP
national	JJ
issues	NNS
,	,
were	VBD
only	RB
too	RB
happy	JJ
to	DT
personalize	DT
their	DT
criticism	NN
.	.
	
``	``
People	NNS
wish	DT
the	DT
government	NN
would	MD
do	VBP
something	NN
about	IN
leveraged	JJ
buy-outs	NNS
,	,
do	VBP
something	NN
about	IN
takeovers	NNS
,	,
do	VBP
something	NN
about	IN
Donald	NNP
Trump	NNP
,	,
''	''
said	VBN
Rand	NNP
Araskog	DT
,	,
chairman	NN
of	IN
ITT	DT
Corp.	DT
,	,
whose	DT
stock	NN
dropped	VBN
$	$
3.375	DT
.	.
	
``	``
Where	DT
's	VBZ
the	DT
leadership	NN
?	?
	
Where	DT
's	VBZ
the	DT
guy	DT
who	WP
can	MD
say	VBP
:	:
`	`
Enough	DT
is	VBZ
enough	JJ
'	'
''	''
?	?
	
The	NNP
executives	NNS
were	VBD
remarkably	DT
unperturbed	DT
by	IN
the	DT
plunge	NN
even	RB
though	RB
it	DT
lopped	DT
billions	NNS
of	IN
dollars	NNS
off	IN
the	DT
value	NN
of	IN
their	DT
companies	NNS
--	--
and	CC
millions	NNS
off	IN
their	DT
personal	JJ
fortunes	NNS
.	.
	
``	``
I	DT
'm	VBP
not	RB
going	VBG
to	DT
worry	DT
about	IN
one	CD
day	NN
's	VBZ
decline	NN
,	,
''	''
said	VBN
Kenneth	NNP
Olsen	DT
,	,
Digital	DT
Equipment	NNP
Corp.	DT
president	NN
,	,
who	WP
was	VBD
leisurely	DT
strolling	DT
through	IN
the	DT
bright	JJ
orange	DT
and	CC
yellow	JJ
leaves	DT
of	IN
the	DT
mountains	DT
here	RB
after	IN
his	DT
company	NN
's	VBZ
shares	NNS
plunged	VBD
$	$
5.75	DT
to	DT
close	NN
at	IN
$	$
86.50	DT
.	.
	
``	``
I	DT
did	VBD
n't	RB
bother	DT
calling	VBG
anybody	DT
;	;
I	DT
did	VBD
n't	RB
even	RB
turn	NN
on	IN
TV	NN
.	.
''	''
	
``	``
There	DT
has	VBZ
n't	RB
been	VBN
any	DT
fundamental	JJ
change	NN
in	IN
the	DT
economy	NN
,	,
''	''
added	VBN
John	NNP
Smale	DT
,	,
whose	DT
Procter	DT
&	&
Gamble	DT
Co.	DT
took	VBD
an	DT
$	$
8.75	DT
slide	NN
to	DT
close	NN
at	IN
$	$
120.75	DT
.	.
	
``	``
The	NNP
fact	NN
that	WDT
this	DT
happened	VBD
two	CD
years	NNS
ago	IN
and	CC
there	RB
was	VBD
a	DT
recovery	NN
gives	VBZ
people	NNS
some	DT
comfort	DT
that	WDT
this	DT
wo	MD
n't	RB
be	DT
a	DT
problem	NN
.	.
''	''
	
Of	IN
course	NN
,	,
established	VBN
corporate	JJ
managements	DT
often	RB
tend	DT
to	DT
applaud	DT
the	DT
setbacks	NNS
of	IN
stock	NN
speculators	NNS
and	CC
takeover	NN
artists	DT
.	.
	
Indeed	RB
,	,
one	CD
chief	NN
executive	NN
who	WP
was	VBD
downright	DT
delighted	DT
by	IN
Friday	NNP
's	VBZ
events	NNS
was	VBD
Robert	NNP
Crandall	DT
,	,
chairman	NN
of	IN
AMR	NNP
Corp.	DT
,	,
the	DT
parent	NN
of	IN
American	JJ
Airlines	NNP
and	CC
the	DT
target	NN
of	IN
a	DT
takeover	NN
offer	NN
by	IN
Mr.	DT
Trump	NNP
.	.
	
Asked	DT
whether	IN
Friday	NNP
's	VBZ
action	NN
could	MD
help	NN
him	DT
avoid	DT
being	VBG
Trumped	DT
by	IN
the	DT
New	NNP
York	NNP
real	JJ
estate	NN
magnate	NN
,	,
Mr.	DT
Crandall	DT
smiled	DT
broadly	DT
and	CC
said	VBN
:	:
``	``
No	DT
comment	NN
.	.
''	''
	
On	IN
Friday	NNP
morning	NN
,	,
before	IN
the	DT
market	NN
's	VBZ
sell-off	NN
,	,
the	DT
business	NN
leaders	NNS
issued	VBN
a	DT
report	NN
predicting	DT
the	DT
economy	NN
would	MD
grow	DT
at	IN
roughly	RB
an	DT
inflation-adjusted	JJ
2	CD
%	%
annual	JJ
rate	NN
,	,
through	IN
next	JJ
year	NN
,	,
then	RB
accelerate	DT
anew	RB
in	IN
1991	DT
.	.
	
Of	IN
the	DT
19	CD
economists	NNS
who	WP
worked	VBD
on	IN
the	DT
Business	NNP
Council	NNP
forecast	NN
,	,
only	RB
two	CD
projected	DT
periods	DT
of	IN
decline	NN
in	IN
the	DT
nation	NN
's	VBZ
output	NN
over	IN
the	DT
next	JJ
two	CD
years	NNS
,	,
and	CC
in	IN
``	``
both	DT
instances	DT
the	DT
declines	NNS
are	VBP
too	RB
modest	JJ
to	DT
warrant	DT
the	DT
phrase	DT
recession	NN
,	,
''	''
said	VBN
Lewis	NNP
Preston	DT
,	,
chairman	NN
of	IN
J.P.	DT
Morgan	DT
&	&
Co.	DT
and	CC
vice	NN
chairman	NN
of	IN
the	DT
Business	NNP
Council	NNP
.	.
	
The	NNP
real	JJ
estate	NN
slump	NN
that	WDT
's	VBZ
pushing	VBG
down	IN
the	DT
price	NN
of	IN
New	NNP
York	NNP
office	NN
space	NN
and	CC
housing	NN
is	VBZ
also	RB
affecting	DT
the	DT
city	DT
's	VBZ
retail	JJ
real	JJ
estate	NN
market	NN
.	.
	
In	IN
Manhattan	NNP
,	,
once-desirable	DT
store	DT
sites	NNS
sit	VBP
vacant	JJ
and	CC
newly	RB
constructed	DT
space	NN
has	VBZ
been	VBN
slow	JJ
to	DT
fill	DT
.	.
	
Retail	DT
real	JJ
estate	NN
brokers	DT
say	VBP
tenants	DT
are	VBP
reluctant	DT
to	DT
sign	NN
leases	NNS
because	IN
of	IN
uncertainty	NN
about	IN
the	DT
local	JJ
economy	NN
,	,
turmoil	NN
in	IN
their	DT
own	JJ
industries	NNS
and	CC
a	DT
belief	NN
that	WDT
rents	DT
have	VBP
not	RB
yet	RB
hit	VBD
bottom	NN
.	.
	
``	``
There	DT
is	VBZ
an	DT
unbelievable	DT
amount	NN
of	IN
space	NN
available	JJ
,	,
''	''
says	VBZ
Faith	DT
Consolo	DT
,	,
senior	JJ
vice	NN
president	NN
at	IN
Garrick-Aug	DT
Associates	NNPS
Store	DT
Leasing	NNP
Inc	NNP
.	.
	
There	DT
are	VBP
about	IN
2,000	DT
stores	NNS
for	IN
rent	DT
,	,
up	IN
from	IN
a	DT
more	RBR
typical	DT
range	NN
of	IN
1,200	DT
to	DT
1,500	DT
.	.
	
``	``
This	DT
further	JJ
confuses	DT
retailers	NNS
,	,
''	''
she	DT
says	VBZ
.	.
	
``	``
They	DT
wonder	NN
should	MD
they	DT
sign	NN
a	DT
lease	NN
if	IN
prices	NNS
are	VBP
still	RB
coming	VBG
down	IN
?	?
	
Is	VBZ
this	DT
the	DT
wrong	JJ
time	NN
to	DT
open	JJ
a	DT
store	DT
?	?
	
Who	WP
is	VBZ
going	VBG
to	DT
be	DT
in	IN
the	DT
space	NN
next	JJ
door	DT
?	?
''	''
	
In	IN
addition	NN
,	,
Ms.	DT
Consolo	DT
says	VBZ
,	,
tenants	DT
usually	RB
can	MD
negotiate	DT
to	DT
pay	NN
rents	DT
that	WDT
are	VBP
about	IN
one-quarter	DT
lower	JJR
than	IN
landlords	DT
'	'
initial	JJ
asking	VBG
price	NN
.	.
	
A	DT
handful	DT
of	IN
hot	DT
retail	JJ
locations	DT
,	,
such	JJ
as	IN
the	DT
57th	DT
Street	NNP
and	CC
Madison	DT
and	CC
Fifth	DT
Avenue	DT
areas	NNS
,	,
have	VBP
been	VBN
able	JJ
to	DT
sustain	DT
what	WP
many	JJ
see	VBP
as	IN
astronomical	DT
rents	DT
.	.
	
And	CC
,	,
in	IN
some	DT
neighborhoods	DT
,	,
rents	DT
have	VBP
merely	RB
hit	VBD
a	DT
plateau	DT
.	.
	
But	CC
on	IN
average	NN
,	,
Manhattan	NNP
retail	JJ
rents	DT
have	VBP
dropped	VBN
10	CD
%	%
to	DT
15	CD
%	%
in	IN
the	DT
past	NN
six	CD
months	NNS
alone	RB
,	,
experts	NNS
say	VBP
.	.
	
That	IN
follows	VBZ
a	DT
more	RBR
subtle	DT
decline	NN
in	IN
the	DT
prior	JJ
six	CD
months	NNS
,	,
after	IN
Manhattan	NNP
rents	DT
had	VBN
run	VBN
up	IN
rapidly	DT
since	IN
1986	CD
.	.
	
The	NNP
same	JJ
factors	DT
limiting	DT
demand	NN
for	IN
office	NN
space	NN
have	VBP
affected	VBN
retailing	NN
.	.
	
``	``
As	IN
businesses	NNS
contract	NN
or	CC
depart	DT
,	,
the	DT
number	NN
of	IN
employees	NNS
who	WP
might	MD
use	NN
retail	JJ
services	NNS
shrinks	DT
,	,
''	''
says	VBZ
Edward	NNP
A.	DT
Friedman	NNP
,	,
senior	JJ
vice	NN
president	NN
of	IN
Helmsley	DT
Spear	DT
Inc	NNP
.	.
	
He	DT
says	VBZ
financial	JJ
problems	NNS
plaguing	DT
electronics	NNS
,	,
fur	DT
and	CC
furniture	NN
companies	NNS
--	--
key	NN
categories	DT
in	IN
the	DT
local	JJ
retail	JJ
economy	NN
--	--
have	VBP
further	JJ
deflated	DT
the	DT
market	NN
.	.
	
Hardest	DT
hit	VBD
are	VBP
what	WP
he	DT
calls	VBZ
``	``
secondary	DT
''	''
sites	NNS
that	WDT
primarily	RB
serve	DT
neighborhood	DT
residents	NNS
.	.
	
In	IN
these	DT
locations	DT
,	,
Mr.	DT
Friedman	NNP
says	VBZ
,	,
``	``
Retailers	DT
are	VBP
increasingly	RB
cautious	DT
about	IN
expanding	VBG
and	CC
rents	DT
have	VBP
remained	VBD
steady	JJ
or	CC
in	IN
some	DT
cases	NNS
have	VBP
declined	VBD
.	.
''	''
	
Weakness	DT
in	IN
the	DT
restaurant	NN
industry	NN
,	,
which	DT
is	VBZ
leaving	VBG
retail	JJ
space	NN
vacant	JJ
,	,
exacerbates	DT
the	DT
problem	NN
for	IN
landlords	DT
.	.
	
It	PRP
is	VBZ
also	RB
no	RB
comfort	DT
to	DT
landlords	DT
and	CC
small	JJ
New	NNP
York	NNP
retailers	NNS
when	DT
the	DT
future	NN
of	IN
larger	JJR
department	DT
stores	NNS
,	,
which	DT
anchor	DT
retail	JJ
neighborhoods	DT
,	,
are	VBP
in	IN
doubt	DT
.	.
	
Hooker	NNP
Corp.	DT
,	,
parent	NN
of	IN
Bonwit	NNP
Teller	NNP
and	CC
B.	DT
Altman	NNP
's	VBZ
,	,
is	VBZ
mired	DT
in	IN
bankruptcy	NN
proceedings	NNS
and	CC
Bloomingdale	DT
's	VBZ
is	VBZ
for	IN
sale	NN
by	IN
its	DT
owner	NN
,	,
Campeau	NNP
Corp	NNP
.	.
	
The	NNP
trend	NN
toward	IN
lower	JJR
rents	DT
may	MD
seem	VBP
surprising	DT
given	VBN
that	WDT
some	DT
communities	DT
in	IN
New	NNP
York	NNP
are	VBP
bemoaning	DT
the	DT
loss	NN
of	IN
favorite	DT
local	JJ
businesses	NNS
to	DT
high	JJ
rents	DT
.	.
	
But	CC
,	,
despite	IN
the	DT
recent	JJ
softening	DT
,	,
for	IN
many	JJ
of	IN
these	DT
retailers	NNS
there	RB
's	VBZ
still	RB
been	VBN
too	RB
big	JJ
a	DT
jump	NN
from	IN
the	DT
rental	DT
rates	NNS
of	IN
the	DT
late	JJ
1970s	CD
,	,
when	DT
their	DT
leases	NNS
were	VBD
signed	DT
.	.
	
Certainly	DT
,	,
the	DT
recent	JJ
drop	NN
in	IN
prices	NNS
does	VBZ
n't	RB
mean	DT
Manhattan	NNP
comes	VBZ
cheap	JJ
.	.
	
New	NNP
York	NNP
retail	JJ
rents	DT
still	RB
run	VBN
well	RB
above	IN
the	DT
going	VBG
rate	NN
in	IN
other	JJ
U.S.	DT
cities	NNS
.	.
	
Madison	DT
and	CC
Fifth	DT
Avenues	DT
and	CC
East	NNP
57th	DT
Street	NNP
can	MD
command	DT
rents	DT
of	IN
up	IN
to	DT
$	$
500	CD
a	DT
square	DT
foot	DT
,	,
and	CC
$	$
250	CD
is	VBZ
not	RB
uncommon	DT
.	.
	
The	NNP
thriving	DT
34th	DT
Street	NNP
area	NN
offers	NNS
rents	DT
of	IN
about	IN
$	$
100	CD
a	DT
square	DT
foot	DT
,	,
as	IN
do	VBP
up-and-coming	DT
locations	DT
along	IN
lower	JJR
Fifth	DT
Avenue	DT
.	.
	
By	IN
contrast	NN
,	,
rentals	DT
in	IN
the	DT
best	JJS
retail	JJ
locations	DT
in	IN
Boston	NNP
,	,
San	NNP
Francisco	NNP
and	CC
Chicago	NNP
rarely	DT
top	NN
$	$
100	CD
a	DT
square	DT
foot	DT
.	.
	
And	CC
rents	DT
on	IN
Beverly	NNP
Hills	NNPS
'	'
Rodeo	DT
Drive	DT
generally	RB
do	VBP
n't	RB
exceed	VBP
about	IN
$	$
125	CD
a	DT
square	DT
foot	DT
.	.
	
The	NNP
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
said	VBN
two	CD
securities	NNS
will	MD
begin	VBP
trading	NN
this	DT
week	NN
.	.
	
Precision	DT
Castparts	DT
Corp.	DT
,	,
Portland	DT
,	,
Ore.	DT
,	,
will	MD
begin	VBP
trading	NN
with	IN
the	DT
symbol	NN
PCP	DT
.	.
	
It	PRP
makes	VBZ
investment	NN
castings	DT
and	CC
has	VBZ
traded	VBN
over-the-counter	NN
.	.
	
Royal	DT
Bank	NNP
of	IN
Scotland	DT
Group	NNP
PLC	NNP
,	,
an	DT
Edinburgh	DT
,	,
Scotland	DT
,	,
financial	JJ
services	NNS
company	NN
,	,
will	MD
list	DT
American	JJ
depositary	DT
shares	NNS
,	,
representing	VBG
preferred	DT
shares	NNS
,	,
with	IN
the	DT
symbol	NN
RBSPr	DT
.	.
	
It	PRP
will	MD
continue	DT
to	DT
trade	NN
on	IN
the	DT
International	NNP
Stock	NNP
Exchange	NNP
,	,
London	NNP
.	.
	
The	NNP
American	JJ
Stock	NNP
Exchange	NNP
listed	VBD
shares	NNS
of	IN
two	CD
companies	NNS
.	.
	
AIM	DT
Telephones	DT
Inc.	DT
,	,
a	DT
Parsippany	DT
,	,
N.J.	DT
,	,
telecommunications	DT
equipment	NN
supply	NN
company	NN
,	,
started	VBN
trading	NN
with	IN
the	DT
symbol	NN
AIM	DT
.	.
	
It	PRP
had	VBN
traded	VBN
over-the-counter	NN
.	.
	
Columbia	NNP
Laboratories	NNPS
Inc.	DT
,	,
Miami	NNP
,	,
began	VBD
trading	NN
with	IN
the	DT
symbol	NN
COB	DT
.	.
	
The	NNP
pharmaceuticals	DT
maker	NN
had	VBN
traded	VBN
over-the-counter	NN
.	.
	
The	NNP
National	NNP
Market	NNP
System	NNP
of	IN
the	DT
Nasdaq	DT
over-the-counter	NN
market	NN
listed	VBD
shares	NNS
of	IN
one	CD
company	NN
.	.
	
Employee	DT
Benefit	DT
Plans	DT
Inc.	DT
,	,
a	DT
Minneapolis	DT
health-care	DT
services	NNS
company	NN
,	,
was	VBD
listed	VBD
with	IN
the	DT
symbol	NN
EBPI	DT
.	.
	
When	DT
Justice	NNP
William	NNP
Brennan	DT
marks	VBZ
the	DT
start	NN
of	IN
his	DT
34th	DT
year	NN
on	IN
the	DT
Supreme	NNP
Court	NNP
today	NN
,	,
the	DT
occasion	DT
will	MD
differ	DT
sharply	RB
from	IN
previous	JJ
anniversaries	DT
of	IN
his	DT
tenure	NN
.	.
	
For	IN
the	DT
first	JJ
time	NN
,	,
the	DT
83-year-old	DT
justice	NN
finds	DT
his	DT
influence	NN
almost	RB
exclusively	RB
in	IN
dissent	DT
,	,
rather	RB
than	IN
as	IN
a	DT
force	NN
in	IN
the	DT
high	JJ
court	NN
's	VBZ
majority	NN
.	.
	
This	DT
role	NN
reversal	DT
holds	DT
true	JJ
,	,
as	IN
well	RB
,	,
for	IN
his	DT
three	CD
liberal	DT
and	CC
moderate	JJ
allies	NNS
,	,
Justices	DT
Thurgood	DT
Marshall	NNP
,	,
Harry	DT
Blackmun	DT
and	CC
John	NNP
Stevens	DT
.	.
	
But	CC
are	VBP
these	DT
four	CD
players	NNS
,	,
three	CD
of	IN
them	DT
in	IN
their	DT
80s	DT
,	,
ready	JJ
to	DT
assume	VBP
a	DT
different	JJ
role	NN
after	IN
88	DT
years	NNS
,	,
collectively	DT
,	,
of	IN
service	NN
on	IN
the	DT
high	JJ
court	NN
?	?
	
Every	DT
indication	NN
is	VBZ
that	WDT
the	DT
four	CD
are	VBP
prepared	VBN
to	DT
accept	DT
this	DT
new	JJ
role	NN
,	,
and	CC
the	DT
frustrations	DT
that	WDT
go	VBP
with	IN
it	DT
,	,
but	CC
in	IN
different	JJ
ways	NNS
.	.
	
Justices	DT
Brennan	DT
and	CC
Stevens	DT
appear	VBP
philosophical	DT
about	IN
it	DT
;	;
Justices	DT
Marshall	NNP
and	CC
Blackmun	DT
appear	VBP
fighting	VBG
mad	DT
.	.
	
The	NNP
four	CD
justices	NNS
are	VBP
no	RB
newcomers	DT
to	DT
dissent	DT
,	,
often	RB
joining	VBG
forces	DT
in	IN
the	DT
past	NN
decade	NN
to	DT
criticize	DT
the	DT
court	NN
's	VBZ
conservative	DT
drift	DT
.	.
	
But	CC
always	DT
,	,
in	IN
years	NNS
past	NN
,	,
they	DT
have	VBP
bucked	DT
the	DT
trend	NN
and	CC
have	VBP
been	VBN
able	JJ
to	DT
pick	DT
up	IN
a	DT
fifth	JJ
vote	NN
to	DT
eke	DT
out	IN
a	DT
number	NN
of	IN
major	JJ
victories	DT
in	IN
civil	JJ
rights	NNS
and	CC
liberties	DT
cases	NNS
.	.
	
Now	RB
,	,
however	RB
,	,
as	IN
the	DT
court	NN
's	VBZ
new	JJ
five-member	JJ
conservative	DT
majority	NN
continues	VBZ
to	DT
solidify	DT
,	,
victories	DT
for	IN
the	DT
liberals	NNS
are	VBP
rare	DT
.	.
	
The	NNP
change	NN
is	VBZ
most	RBS
dramatic	DT
for	IN
Justice	NNP
Brennan	DT
,	,
the	DT
last	JJ
survivor	DT
of	IN
the	DT
mid-1960s	DT
liberal	DT
majority	NN
under	IN
Chief	NNP
Justice	NNP
Earl	DT
Warren	DT
.	.
	
In	IN
the	DT
seven	CD
Supreme	NNP
Court	NNP
terms	NNS
from	IN
the	DT
fall	NN
of	IN
1962	DT
through	IN
the	DT
spring	NN
of	IN
1967	DT
,	,
the	DT
height	DT
of	IN
the	DT
Warren	DT
Court	NNP
's	VBZ
power	NN
,	,
Justice	NNP
Brennan	DT
cast	NN
only	RB
25	CD
dissenting	DT
votes	NNS
in	IN
555	DT
cases	NNS
decided	VBN
by	IN
the	DT
court	NN
.	.
	
Last	JJ
term	NN
alone	RB
he	DT
cast	NN
52	DT
dissenting	DT
votes	NNS
in	IN
133	DT
decisions	NNS
,	,
with	IN
the	DT
contentious	DT
flag-burning	DT
ruling	NN
as	IN
his	DT
only	RB
big	JJ
victory	NN
.	.
	
But	CC
Justice	NNP
Brennan	DT
foresaw	DT
his	DT
new	JJ
role	NN
,	,
strongly	RB
defending	DT
the	DT
importance	NN
of	IN
dissents	DT
in	IN
a	DT
1985	DT
speech	NN
.	.
	
``	``
Each	DT
time	NN
the	DT
court	NN
revisits	DT
an	DT
issue	NN
,	,
the	DT
justices	NNS
will	MD
be	DT
forced	VBD
by	IN
a	DT
dissent	DT
to	DT
reconsider	DT
the	DT
fundamental	JJ
questions	NNS
and	CC
to	DT
rethink	DT
the	DT
result	NN
,	,
''	''
he	DT
said	VBN
.	.
	
Moreover	RB
,	,
in	IN
recent	JJ
months	NNS
he	DT
has	VBZ
said	VBN
that	WDT
when	DT
he	DT
was	VBD
on	IN
the	DT
winning	DT
side	NN
in	IN
the	DT
1960s	CD
,	,
he	DT
knew	DT
that	WDT
the	DT
tables	NNS
might	MD
turn	NN
in	IN
the	DT
future	NN
.	.
	
He	DT
has	VBZ
said	VBN
that	WDT
he	DT
now	RB
knows	DT
how	DT
Justice	NNP
John	NNP
Harlan	DT
felt	DT
,	,
a	DT
reference	DT
to	DT
the	DT
late	JJ
conservative	DT
justice	NN
who	WP
was	VBD
the	DT
most	RBS
frequent	JJ
dissenter	DT
from	IN
the	DT
Warren	DT
Court	NNP
's	VBZ
opinions	NNS
.	.
	
Associates	NNPS
of	IN
81-year-old	DT
Justice	NNP
Marshall	NNP
say	VBP
he	DT
was	VBD
``	``
depressed	VBN
''	''
about	IN
the	DT
court	NN
's	VBZ
direction	DT
last	JJ
spring	NN
,	,
but	CC
is	VBZ
feisty	DT
about	IN
his	DT
role	NN
and	CC
determined	DT
to	DT
speak	DT
out	IN
against	IN
the	DT
court	NN
's	VBZ
cutbacks	DT
in	IN
civil	JJ
rights	NNS
.	.
	
``	``
We	DT
could	MD
sweep	DT
it	DT
under	IN
the	DT
rug	DT
and	CC
hide	DT
it	DT
,	,
but	CC
I	DT
'm	VBP
not	RB
going	VBG
to	DT
do	VBP
it	DT
,	,
''	''
he	DT
said	VBN
in	IN
a	DT
speech	NN
last	JJ
month	NN
.	.
	
He	DT
,	,
like	JJ
Justice	NNP
Brennan	DT
,	,
considers	DT
dissents	DT
highly	RB
important	JJ
for	IN
the	DT
future	NN
,	,
a	DT
point	NN
that	WDT
has	VBZ
n't	RB
escaped	DT
legal	JJ
scholars	DT
.	.
	
Harvard	DT
Law	DT
School	NNP
Professor	DT
Laurence	DT
Tribe	DT
says	VBZ
there	RB
is	VBZ
a	DT
``	``
generation-skipping	DT
''	''
flavor	DT
to	DT
current	NN
dissents	DT
.	.
	
The	NNP
dissenters	DT
in	IN
the	DT
Warren	DT
Court	NNP
,	,
he	DT
says	VBZ
,	,
appeared	VBD
to	DT
be	DT
writing	DT
for	IN
the	DT
short-term	JJ
,	,
suggesting	VBG
that	WDT
the	DT
court	NN
's	VBZ
direction	DT
might	MD
change	NN
soon	RB
.	.
	
``	``
Brennan	DT
and	CC
Marshall	NNP
are	VBP
speaking	VBG
in	IN
their	DT
dissents	DT
to	DT
a	DT
more	RBR
distant	DT
future	NN
,	,
''	''
he	DT
says	VBZ
.	.
	
Justice	NNP
Blackmun	DT
,	,
who	WP
will	MD
turn	NN
81	DT
next	JJ
month	NN
,	,
also	RB
seems	VBZ
feisty	DT
about	IN
his	DT
new	JJ
role	NN
.	.
	
Associates	NNPS
say	VBP
he	DT
takes	VBZ
some	DT
defeats	DT
more	RBR
personally	RB
than	IN
his	DT
colleagues	NNS
,	,
especially	RB
attempts	DT
to	DT
curtail	DT
the	DT
right	NN
to	DT
abortion	NN
first	JJ
recognized	DT
in	IN
his	DT
1973	CD
opinion	NN
,	,
Roe	NNP
vs.	DT
Wade	NNP
.	.
	
Friends	DT
and	CC
associates	NNS
who	WP
saw	VBD
Justice	NNP
Blackmun	DT
during	IN
the	DT
summer	NN
said	VBN
he	DT
was	VBD
no	RB
more	RBR
discouraged	VBN
about	IN
the	DT
court	NN
than	IN
in	IN
recent	JJ
years	NNS
.	.
	
And	CC
his	DT
outlook	NN
improved	VBN
after	IN
successful	JJ
cataract	DT
surgery	DT
in	IN
August	NNP
.	.
	
But	CC
his	DT
level	NN
of	IN
frustration	NN
showed	VBD
in	IN
a	DT
recent	JJ
,	,
impassioned	DT
speech	NN
to	DT
a	DT
group	NN
of	IN
hundreds	NNS
of	IN
lawyers	NNS
in	IN
Chicago	NNP
.	.
	
He	DT
concluded	VBD
his	DT
remarks	NNS
by	IN
quoting	VBG
,	,
emotionally	DT
and	CC
at	IN
some	DT
length	NN
,	,
according	VBG
to	DT
those	DT
present	JJ
,	,
the	DT
late	JJ
Martin	NNP
Luther	DT
King	NNP
's	VBZ
famous	JJ
``	``
I	DT
Have	DT
a	DT
Dream	DT
''	''
speech	NN
from	IN
the	DT
1963	CD
March	NNP
on	IN
Washington	NNP
.	.
	
Justice	NNP
Stevens	DT
,	,
69	DT
,	,
is	VBZ
probably	RB
the	DT
most	RBS
philosophical	DT
of	IN
the	DT
dissenters	DT
about	IN
his	DT
role	NN
,	,
in	IN
part	NN
because	IN
he	DT
may	MD
be	DT
the	DT
least	JJS
liberal	DT
of	IN
the	DT
four	CD
,	,
but	CC
also	RB
because	IN
he	DT
enjoys	DT
the	DT
intellectual	JJ
challenge	NN
of	IN
arguing	VBG
with	IN
the	DT
majority	NN
more	RBR
than	IN
the	DT
others	NNS
.	.
	
If	IN
the	DT
role	NN
these	DT
four	CD
dissenters	DT
are	VBP
assuming	DT
is	VBZ
a	DT
familiar	JJ
one	CD
in	IN
modern	DT
Supreme	NNP
Court	NNP
history	DT
,	,
it	DT
also	RB
differs	DT
in	IN
an	DT
important	JJ
way	NN
from	IN
recent	JJ
history	DT
,	,
court	NN
watchers	DT
say	VBP
.	.
	
``	``
The	NNP
dissenters	DT
of	IN
the	DT
Warren	DT
Court	NNP
were	VBD
often	RB
defending	DT
a	DT
legal	JJ
legacy	DT
that	WDT
they	DT
inherited	DT
,	,
''	''
says	VBZ
Prof.	DT
A.E.	DT
Dick	DT
Howard	NNP
of	IN
the	DT
University	NNP
of	IN
Virginia	DT
Law	DT
School	NNP
,	,
``	``
but	CC
the	DT
dissenters	DT
today	NN
are	VBP
defending	DT
a	DT
legacy	DT
that	WDT
they	DT
created	VBN
.	.
	
The	NNP
government	NN
sold	VBN
the	DT
deposits	DT
of	IN
four	CD
savings-and-loan	DT
institutions	NNS
,	,
in	IN
its	DT
first	JJ
wave	DT
of	IN
sales	NNS
of	IN
big	JJ
,	,
sick	DT
thrifts	NNS
,	,
but	CC
low	JJ
bids	NNS
prevented	VBD
the	DT
sale	NN
of	IN
a	DT
fifth	JJ
.	.
	
The	NNP
four	CD
S&Ls	NNS
were	VBD
sold	VBN
to	DT
large	JJ
banks	NNS
,	,
as	IN
was	VBD
the	DT
case	NN
with	IN
most	RBS
of	IN
the	DT
28	CD
previous	JJ
transactions	NNS
initiated	DT
by	IN
the	DT
Resolution	NNP
Trust	NNP
Corp.	DT
since	IN
it	DT
was	VBD
created	VBN
in	IN
the	DT
S&L	DT
bailout	NN
legislation	NN
two	CD
months	NNS
ago	IN
.	.
	
Two	CD
of	IN
the	DT
four	CD
big	JJ
thrifts	NNS
were	VBD
sold	VBN
to	DT
NCNB	DT
Corp.	DT
,	,
Charlotte	DT
,	,
N.C.	DT
,	,
which	DT
has	VBZ
aggressively	DT
expanded	VBN
its	DT
markets	NNS
,	,
particularly	RB
in	IN
Texas	NNP
and	CC
Florida	DT
.	.
	
A	DT
Canadian	JJ
bank	NN
bought	VBN
another	DT
thrift	NN
,	,
in	IN
the	DT
first	JJ
RTC	DT
transaction	NN
with	IN
a	DT
foreign	JJ
bank	NN
.	.
	
Under	IN
these	DT
deals	NNS
,	,
the	DT
RTC	DT
sells	DT
just	RB
the	DT
deposits	DT
and	CC
the	DT
healthy	JJ
assets	NNS
.	.
	
These	DT
``	``
clean-bank	DT
''	''
transactions	NNS
leave	VBP
the	DT
bulk	DT
of	IN
bad	JJ
assets	NNS
,	,
mostly	RB
real	JJ
estate	NN
,	,
with	IN
the	DT
government	NN
,	,
to	DT
be	DT
sold	VBN
later	RB
.	.
	
In	IN
these	DT
four	CD
,	,
for	IN
instance	NN
,	,
the	DT
RTC	DT
is	VBZ
stuck	VBD
with	IN
$	$
4.51	DT
billion	CD
in	IN
bad	JJ
assets	NNS
.	.
	
Acquirers	DT
paid	VBN
premiums	DT
ranging	VBG
from	IN
1.5	CD
%	%
to	DT
3.7	DT
%	%
for	IN
the	DT
deposits	DT
and	CC
branch	DT
systems	NNS
,	,
roughly	RB
in	IN
line	NN
with	IN
what	WP
analysts	NNS
were	VBD
expecting	VBG
.	.
	
The	NNP
buyers	NNS
will	MD
also	RB
be	DT
locked	DT
into	IN
deposit	DT
rates	NNS
for	IN
just	RB
two	CD
weeks	NNS
,	,
as	IN
has	VBZ
been	VBN
the	DT
case	NN
with	IN
previous	JJ
deals	NNS
.	.
	
After	IN
that	WDT
,	,
the	DT
buyers	NNS
may	MD
repudiate	DT
the	DT
rates	NNS
paid	VBN
by	IN
the	DT
former	JJ
thrifts	NNS
.	.
	
But	CC
it	DT
's	VBZ
uncertain	JJ
whether	IN
these	DT
institutions	NNS
will	MD
take	VBP
those	DT
steps	NNS
.	.
	
NCNB	DT
,	,
for	IN
example	NN
,	,
has	VBZ
been	VBN
one	CD
of	IN
the	DT
highest	JJS
rate	NN
payers	DT
in	IN
the	DT
Texas	NNP
market	NN
,	,
and	CC
in	IN
Florida	DT
,	,
rates	NNS
are	VBP
especially	RB
sensitive	JJ
in	IN
retirement	DT
communities	DT
.	.
	
The	NNP
RTC	DT
had	VBN
previously	RB
targeted	VBN
five	CD
thrifts	NNS
for	IN
quick	DT
sales	NNS
in	IN
order	NN
to	DT
spend	VBP
cash	NN
by	IN
certain	JJ
budgetary	DT
deadlines	DT
,	,
but	CC
the	DT
delays	NNS
illustrate	VBP
the	DT
tough	JJ
chore	DT
facing	VBG
the	DT
agency	NN
.	.
	
``	``
These	DT
thrifts	NNS
are	VBP
beached	DT
whales	DT
,	,
''	''
said	VBN
Bert	DT
Ely	DT
,	,
an	DT
industry	NN
consultant	NN
based	VBN
in	IN
Alexandria	DT
,	,
Va	DT
.	.
	
For	IN
example	NN
,	,
the	DT
delay	DT
in	IN
selling	NN
People	NNS
's	VBZ
Heritage	DT
Savings	NNP
,	,
Salina	DT
,	,
Kan.	DT
,	,
with	IN
$	$
1.7	CD
billion	CD
in	IN
assets	NNS
,	,
has	VBZ
forced	VBD
the	DT
RTC	DT
to	DT
consider	DT
selling	NN
off	IN
the	DT
thrift	NN
branch-by-branch	DT
,	,
instead	RB
of	IN
as	IN
a	DT
whole	JJ
institution	DT
.	.
	
NCNB	DT
continued	VBN
its	DT
foray	DT
into	IN
the	DT
Florida	DT
and	CC
Texas	NNP
markets	NNS
.	.
	
NCNB	DT
will	MD
acquire	DT
University	NNP
Federal	NNP
Savings	NNP
Association	NNP
,	,
Houston	NNP
,	,
which	DT
had	VBN
assets	NNS
of	IN
$	$
2.8	DT
billion	CD
.	.
	
NCNB	DT
Texas	NNP
National	NNP
Bank	NNP
will	MD
pay	NN
the	DT
RTC	DT
a	DT
premium	NN
of	IN
$	$
129	DT
million	CD
for	IN
$	$
3.5	DT
billion	CD
in	IN
deposits	DT
.	.
	
As	IN
a	DT
measure	NN
of	IN
the	DT
depths	DT
to	DT
which	DT
the	DT
Texas	NNP
real	JJ
estate	NN
market	NN
has	VBZ
sunk	DT
,	,
the	DT
RTC	DT
will	MD
pay	NN
$	$
3.8	CD
billion	CD
to	DT
NCNB	DT
to	DT
take	VBP
$	$
750	CD
million	CD
of	IN
bad	JJ
assets	NNS
.	.
	
NCNB	DT
also	RB
acquired	VBN
Freedom	DT
Savings	NNP
&	&
Loan	NNP
Association	NNP
,	,
Tampa	NNP
,	,
Fla.	DT
,	,
which	DT
had	VBN
total	JJ
assets	NNS
of	IN
$	$
900	DT
million	CD
.	.
	
NCNB	DT
will	MD
pay	NN
the	DT
RTC	DT
a	DT
premium	NN
of	IN
$	$
40.4	DT
million	CD
for	IN
$	$
1.1	CD
billion	CD
in	IN
deposits	DT
.	.
	
NCNB	DT
will	MD
also	RB
acquire	DT
$	$
266	DT
million	CD
of	IN
Freedom	DT
's	VBZ
assets	NNS
from	IN
the	DT
RTC	DT
,	,
which	DT
will	MD
require	VBP
$	$
875	DT
million	CD
in	IN
assistance	NN
.	.
	
Meridian	DT
Bancorp	DT
Inc.	DT
,	,
Reading	DT
,	,
Pa.	DT
,	,
will	MD
acquire	DT
Hill	NNP
Financial	NNP
Savings	NNP
Association	NNP
,	,
Red	DT
Hill	NNP
,	,
Pa.	DT
,	,
which	DT
had	VBN
$	$
2.3	CD
billion	CD
in	IN
assets	NNS
.	.
	
Meridian	DT
will	MD
pay	NN
a	DT
premium	NN
of	IN
$	$
30.5	DT
million	CD
to	DT
assume	VBP
$	$
2	CD
billion	CD
in	IN
deposits	DT
.	.
	
It	PRP
will	MD
also	RB
purchase	NN
$	$
845	DT
million	CD
of	IN
the	DT
thrift	NN
's	VBZ
assets	NNS
,	,
with	IN
$	$
1.9	DT
billion	CD
in	IN
RTC	DT
assistance	NN
.	.
	
In	IN
the	DT
first	JJ
RTC	DT
transaction	NN
with	IN
a	DT
foreign	JJ
buyer	NN
,	,
Royal	DT
Trustco	DT
Ltd.	DT
,	,
Toronto	DT
,	,
will	MD
acquire	DT
Pacific	NNP
Savings	NNP
Bank	NNP
,	,
Costa	DT
Mesa	DT
,	,
Calif.	DT
,	,
which	DT
had	VBN
$	$
949	DT
million	CD
in	IN
assets	NNS
.	.
	
Royal	DT
Trustco	DT
will	MD
pay	NN
the	DT
RTC	DT
$	$
25	CD
million	CD
to	DT
assume	VBP
$	$
989	DT
million	CD
in	IN
deposits	DT
.	.
	
It	PRP
will	MD
also	RB
purchase	NN
$	$
473	DT
million	CD
in	IN
assets	NNS
,	,
and	CC
receive	DT
$	$
550	CD
million	CD
in	IN
assistance	NN
from	IN
the	DT
RTC	DT
.	.
	
The	NNP
following	VBG
issues	NNS
were	VBD
recently	RB
filed	VBN
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
:	:
	
American	JJ
Cyanamid	DT
Co.	DT
,	,
offering	VBG
of	IN
1,250,000	DT
common	JJ
shares	NNS
,	,
via	DT
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
.	.
	
Limited	NNP
Inc.	DT
,	,
offering	VBG
of	IN
up	IN
to	DT
$	$
300	CD
million	CD
of	IN
debt	NN
securities	NNS
and	CC
warrants	DT
.	.
	
Nuveen	DT
California	NNP
Performance	DT
Plus	NNP
Municipal	JJ
Fund	NNP
Inc.	DT
,	,
initial	JJ
offering	VBG
of	IN
five	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
Alex	DT
.	.
Brown	DT
&	&
Sons	NNPS
Inc.	DT
,	,
John	NNP
Nuveen	DT
&	&
Co.	DT
,	,
Prudential-Bache	DT
Capital	NNP
Funding	DT
,	,
and	CC
Bateman	DT
Eichler	DT
,	,
Hill	NNP
Richards	DT
.	.
	
PacifiCare	DT
Health	DT
Systems	NNPS
Inc.	DT
,	,
proposed	VBN
offering	VBG
of	IN
1.5	CD
million	CD
common	JJ
shares	NNS
,	,
of	IN
which	DT
700,000	CD
shares	NNS
will	MD
be	DT
offered	VBN
by	IN
PacifiCare	DT
and	CC
800,000	DT
shares	NNS
by	IN
UniHealth	DT
America	NNP
Inc	NNP
.	.
(	(
PacifiCare	DT
's	VBZ
71	DT
%	%
)	)
,	,
via	DT
Dillon	DT
,	,
Read	DT
&	&
Co.	DT
Inc.	NNP
,	,
Goldman	NNP
,	,
Sachs	NNP
&	&
Co.	DT
and	CC
Dean	NNP
Witter	NNP
Reynolds	NNP
Inc	NNP
.	.
	
Pricor	DT
Inc.	DT
,	,
offering	VBG
of	IN
one	CD
million	CD
new	JJ
shares	NNS
of	IN
common	JJ
stock	NN
and	CC
300,000	DT
shares	NNS
by	IN
holders	NNS
,	,
via	DT
Drexel	NNP
Burnham	NNP
Lambert	NNP
Inc.	DT
and	CC
J.C.	DT
Bradford	DT
&	&
Co	NNP
.	.
	
Trans	DT
World	NNP
Airlines	NNP
Inc.	DT
,	,
offering	VBG
of	IN
$	$
150	CD
million	CD
senior	JJ
notes	NNS
,	,
via	DT
Drexel	NNP
Burnham	NNP
.	.
	
Time	NNP
magazine	NN
,	,
in	IN
a	DT
move	NN
to	DT
reduce	DT
the	DT
costs	NNS
of	IN
wooing	DT
new	JJ
subscribers	NNS
,	,
is	VBZ
lowering	DT
its	DT
circulation	NN
guarantee	DT
to	DT
advertisers	DT
for	IN
the	DT
second	NN
consecutive	JJ
year	NN
,	,
increasing	VBG
its	DT
subscription	DT
rates	NNS
and	CC
cutting	DT
back	VB
on	IN
merchandise	NN
giveaways	DT
.	.
	
In	IN
an	DT
announcement	NN
to	DT
its	DT
staff	NN
last	JJ
week	NN
,	,
executives	NNS
at	IN
Time	NNP
Warner	NNP
Inc.	DT
's	PRP
weekly	JJ
magazine	NN
said	VBN
Time	NNP
will	MD
``	``
dramatically	DT
de-emphasize	DT
''	''
its	DT
use	NN
of	IN
electronic	JJ
giveaways	DT
such	JJ
as	IN
telephones	NNS
in	IN
television	NN
subscription	DT
drives	VBZ
;	;
cut	NN
the	DT
circulation	NN
it	DT
guarantees	DT
advertisers	DT
by	IN
300,000	DT
,	,
to	DT
four	CD
million	CD
;	;
and	CC
increase	NN
the	DT
cost	NN
of	IN
its	DT
annual	JJ
subscription	DT
rate	NN
by	IN
about	IN
$	$
4	CD
to	DT
$	$
55	DT
.	.
	
In	IN
a	DT
related	VBN
development	NN
,	,
the	DT
news-weekly	DT
,	,
for	IN
the	DT
fourth	JJ
year	NN
in	IN
a	DT
row	DT
,	,
said	VBN
it	DT
wo	MD
n't	RB
increase	NN
its	DT
advertising	NN
rates	NNS
in	IN
1990	CD
;	;
a	DT
full	JJ
,	,
four-color	DT
page	DT
in	IN
the	DT
magazine	NN
costs	NNS
about	IN
$	$
120,000	CD
.	.
	
However	RB
,	,
because	IN
the	DT
guaranteed	DT
circulation	NN
base	NN
is	VBZ
being	VBG
lowered	DT
,	,
ad	NN
rates	NNS
will	MD
be	DT
effectively	RB
7.5	CD
%	%
higher	JJR
per	IN
subscriber	DT
,	,
according	VBG
to	DT
Richard	NNP
Heinemann	DT
,	,
Time	NNP
associate	DT
publisher	DT
.	.
	
Time	NNP
is	VBZ
following	VBG
the	DT
course	NN
of	IN
some	DT
other	JJ
mass-circulation	DT
magazines	NNS
that	WDT
in	IN
recent	JJ
years	NNS
have	VBP
challenged	DT
the	DT
publishing	DT
myth	DT
that	WDT
maintaining	DT
artificially	DT
high	JJ
,	,
and	CC
expensive	JJ
,	,
circulations	DT
is	VBZ
the	DT
way	NN
to	DT
draw	DT
advertisers	DT
.	.
	
In	IN
recent	JJ
years	NNS
,	,
Reader	DT
's	VBZ
Digest	DT
,	,
New	NNP
York	NNP
Times	NNP
Co.	DT
's	PRP
McCall	DT
's	VBZ
,	,
and	CC
most	RBS
recently	RB
News	NNP
Corp.	DT
's	PRP
TV	NN
Guide	DT
,	,
have	VBP
cut	NN
their	DT
massive	JJ
circulation	NN
rate	NN
bases	NNS
to	DT
eliminate	DT
marginal	DT
circulation	NN
and	CC
hold	VBP
down	IN
rates	NNS
for	IN
advertisers	DT
.	.
	
Deep	DT
discounts	DT
in	IN
subscriptions	DT
and	CC
offers	NNS
of	IN
free	JJ
clock	NN
radios	NNS
and	CC
watches	DT
have	VBP
become	VBN
accepted	DT
forms	DT
of	IN
attracting	DT
new	JJ
subscribers	NNS
in	IN
the	DT
hyper-competitive	DT
world	NN
of	IN
magazine	NN
news-weeklies	DT
.	.
	
But	CC
Time	NNP
,	,
as	IN
part	NN
of	IN
the	DT
more	RBR
cost-conscious	DT
Time	NNP
Warner	NNP
,	,
wants	VBZ
to	DT
wean	DT
itself	DT
away	RB
from	IN
expensive	JJ
gimmicks	DT
.	.
	
Besides	IN
,	,
Time	NNP
executives	NNS
think	VBP
selling	NN
a	DT
news	NN
magazine	NN
with	IN
a	DT
clock	NN
radio	NN
is	VBZ
tacky	DT
.	.
	
``	``
Giveaways	DT
just	RB
give	VBP
people	NNS
the	DT
wrong	JJ
image	DT
,	,
''	''
said	VBN
Mr.	DT
Heinemann	DT
.	.
	
``	``
That	IN
perception	DT
takes	VBZ
the	DT
focus	NN
off	IN
the	DT
magazine	NN
.	.
''	''
	
Time	NNP
magazine	NN
executives	NNS
predictably	DT
paint	DT
the	DT
circulation	NN
cut	NN
as	IN
a	DT
show	NN
of	IN
strength	NN
and	CC
actually	RB
a	DT
benefit	NN
to	DT
advertisers	DT
.	.
	
``	``
What	WP
we	DT
are	VBP
doing	VBG
is	VBZ
screening	NN
out	IN
the	DT
readers	DT
who	WP
are	VBP
only	RB
casually	DT
related	VBN
to	DT
the	DT
magazine	NN
and	CC
do	VBP
n't	RB
really	RB
read	VBP
it	DT
,	,
''	''
said	VBN
Mr.	DT
Heinemann	DT
.	.
	
``	``
We	DT
are	VBP
trying	VBG
to	DT
create	VBP
quality	NN
and	CC
involvement	NN
.	.
''	''
	
However	RB
,	,
Time	NNP
executives	NNS
used	VBN
the	DT
same	JJ
explanation	NN
when	DT
in	IN
October	NNP
1988	CD
the	DT
magazine	NN
cut	NN
its	DT
guaranteed	DT
circulation	NN
from	IN
4.6	DT
million	CD
to	DT
4.3	CD
million	CD
.	.
	
And	CC
Time	NNP
's	VBZ
paid	VBN
circulation	NN
,	,
according	VBG
to	DT
Audit	DT
Bureau	NNP
of	IN
Circulations	DT
,	,
dropped	VBN
7.3	DT
%	%
to	DT
4,393,237	DT
in	IN
the	DT
six	CD
months	NNS
ended	VBD
June	NNP
30	CD
,	,
1989	CD
.	.
	
Still	RB
,	,
Time	NNP
's	VBZ
move	NN
is	VBZ
being	VBG
received	VBN
well	RB
,	,
once	RB
again	RB
.	.
	
``	``
It	PRP
's	VBZ
terrific	DT
for	IN
advertisers	DT
to	DT
know	VBP
the	DT
reader	DT
will	MD
be	DT
paying	VBG
more	RBR
,	,
''	''
said	VBN
Michael	NNP
Drexler	DT
,	,
national	JJ
media	NNS
director	NN
at	IN
Bozell	DT
Inc.	DT
ad	NN
agency	NN
.	.
	
``	``
A	DT
few	JJ
drops	NNS
in	IN
circulation	NN
are	VBP
of	IN
no	RB
consequence	DT
.	.
	
It	PRP
's	VBZ
not	RB
a	DT
show	NN
of	IN
weakness	NN
;	;
they	DT
are	VBP
improving	VBG
the	DT
quality	NN
of	IN
circulation	NN
while	IN
insuring	DT
their	DT
profits	NNS
.	.
''	''
	
Mr.	DT
Heinemann	DT
said	VBN
the	DT
changes	NNS
represent	DT
a	DT
new	JJ
focus	NN
in	IN
the	DT
magazine	NN
industry	NN
:	:
a	DT
magazine	NN
's	VBZ
net	JJ
revenue	NN
per	IN
subscriber	DT
,	,
or	CC
the	DT
actual	JJ
revenue	NN
from	IN
subscribers	NNS
after	IN
discounts	DT
and	CC
the	DT
cost	NN
of	IN
premiums	DT
have	VBP
been	VBN
stripped	VBN
away	RB
.	.
	
``	``
The	NNP
question	NN
is	VBZ
how	DT
much	JJ
are	VBP
we	DT
getting	VBG
from	IN
each	DT
reader	DT
,	,
''	''
said	VBN
Mr.	DT
Heinemann	DT
.	.
	
Time	NNP
's	VBZ
rivals	NNS
news-weeklies	DT
,	,
Washington	NNP
Post	NNP
Co.	DT
's	PRP
Newsweek	NNP
and	CC
U.S.	DT
News	NNP
&	&
World	NNP
Report	NNP
,	,
are	VBP
less	RBR
reliant	DT
on	IN
electronic	JJ
giveaways	DT
,	,
and	CC
in	IN
recent	JJ
years	NNS
both	DT
have	VBP
been	VBN
increasing	VBG
their	DT
circulation	NN
rate	NN
bases	NNS
.	.
	
Both	DT
magazines	NNS
are	VBP
expected	VBN
to	DT
announce	DT
their	DT
ad	NN
rates	NNS
and	CC
circulation	NN
levels	NNS
for	IN
1990	CD
within	IN
a	DT
month	NN
.	.
	
When	DT
the	DT
news	NN
broke	VBD
of	IN
an	DT
attempted	VBD
coup	DT
in	IN
Panama	NNP
two	CD
weeks	NNS
ago	IN
,	,
Sen.	DT
Christopher	NNP
Dodd	NNP
called	VBN
the	DT
State	NNP
Department	NNP
for	IN
a	DT
briefing	DT
.	.
	
``	``
They	DT
said	VBN
,	,
`	`
follow	DT
CNN	DT
,	,
'	'
''	''
he	DT
told	VBN
reporters	NNS
.	.
	
That	IN
shows	VBZ
how	DT
far	JJ
Ted	DT
Turner	NNP
's	VBZ
Cable	DT
News	NNP
Network	NN
has	VBZ
come	VBN
since	IN
its	DT
birth	NN
nine	CD
years	NNS
ago	IN
,	,
when	DT
it	DT
was	VBD
considered	VBN
the	DT
laughingstock	DT
of	IN
television	NN
news	NN
.	.
	
It	PRP
is	VBZ
bigger	JJR
,	,
faster	RBR
and	CC
more	RBR
profitable	JJ
than	IN
the	DT
news	NN
divisions	NNS
of	IN
any	DT
of	IN
the	DT
three	CD
major	JJ
broadcast	NN
networks	NNS
.	.
	
Its	DT
niche	NN
as	IN
the	DT
``	``
network	NN
of	IN
record	NN
''	''
during	IN
major	JJ
crises	NNS
draws	DT
elite	DT
audiences	NNS
around	IN
the	DT
world	NN
.	.
	
But	CC
for	IN
all	RB
its	DT
success	NN
,	,
CNN	DT
has	VBZ
hit	VBD
a	DT
plateau	DT
.	.
	
Although	IN
viewership	DT
soars	DT
when	DT
big	JJ
news	NN
breaks	DT
,	,
it	DT
ebbs	DT
during	IN
periods	DT
of	IN
calm	DT
.	.
	
CNN	DT
executives	NNS
worry	DT
that	WDT
the	DT
network	NN
's	VBZ
punchy	DT
but	CC
repetitive	DT
news	NN
format	NN
may	MD
be	DT
getting	VBG
stale	DT
and	CC
wo	MD
n't	RB
keep	VBP
viewers	NNS
coming	VBG
back	VB
as	IN
the	DT
alternatives	DT
multiply	DT
for	IN
news	NN
and	CC
information	NN
on	IN
cable-TV	DT
.	.
	
``	``
Just	RB
the	DT
fact	NN
we	DT
're	VBP
on	IN
24	CD
hours	NNS
is	VBZ
no	RB
longer	JJR
bulletin	DT
,	,
''	''
says	VBZ
Ed	DT
Turner	NNP
,	,
CNN	DT
's	VBZ
executive	NN
vice	NN
president	NN
,	,
news	NN
gathering	DT
(	(
and	CC
no	RB
relation	DT
to	DT
Ted	DT
Turner	NNP
)	)
.	.
	
``	``
You	DT
ca	MD
n't	RB
live	DT
on	IN
that	WDT
.	.
''	''
	
So	IN
CNN	DT
,	,
a	DT
unit	NN
of	IN
Atlanta-based	DT
Turner	NNP
Broadcasting	NNP
System	NNP
Inc.	DT
,	,
is	VBZ
trying	VBG
to	DT
reposition	DT
itself	DT
as	IN
a	DT
primary	JJ
channel	NN
,	,
or	CC
what	WP
people	NNS
in	IN
the	DT
television	NN
industry	NN
call	DT
a	DT
``	``
top	NN
of	IN
mind	NN
''	''
network	NN
.	.
	
Tonight	DT
,	,
to	DT
kick	DT
off	IN
the	DT
effort	NN
,	,
CNN	DT
will	MD
premiere	DT
its	DT
first	JJ
prime-time	JJ
newscast	DT
in	IN
years	NNS
,	,
an	DT
hourlong	DT
show	NN
at	IN
6	CD
p.m	RB
.	.
Eastern	NNP
time	NN
to	DT
air	NN
head-to-head	DT
against	IN
the	DT
network	NN
newscasts	DT
.	.
	
The	NNP
show	NN
will	MD
be	DT
co-anchored	DT
by	IN
Bernard	DT
Shaw	DT
and	CC
Catherine	DT
Crier	DT
,	,
a	DT
34-year-old	DT
former	JJ
Texas	NNP
judge	NN
and	CC
campus	DT
beauty	DT
queen	DT
who	WP
has	VBZ
never	RB
held	VBN
a	DT
job	NN
in	IN
television	NN
or	CC
journalism	DT
.	.
	
The	NNP
new	JJ
show	NN
is	VBZ
perhaps	RB
the	DT
boldest	DT
in	IN
a	DT
number	NN
of	IN
steps	NNS
the	DT
network	NN
is	VBZ
taking	VBG
to	DT
build	DT
audience	DT
loyalty	NN
by	IN
shifting	DT
away	RB
from	IN
its	DT
current	NN
format	NN
toward	IN
more	RBR
full-length	DT
``	``
signature	DT
''	''
programming	NN
with	IN
recognizable	DT
stars	DT
.	.
	
To	NN
distinguish	DT
itself	DT
,	,
CNN	DT
is	VBZ
also	RB
expanding	VBG
international	JJ
coverage	DT
and	CC
adding	VBG
a	DT
second	NN
global-news	DT
program	NN
.	.
	
It	PRP
is	VBZ
paying	VBG
higher	JJR
salaries	NNS
--	--
after	IN
years	NNS
of	IN
scrimping	DT
--	--
to	DT
lure	DT
and	CC
keep	VBP
experienced	VBN
staffers	DT
.	.
	
And	CC
it	DT
is	VBZ
embarking	DT
on	IN
an	DT
expensive	JJ
gamble	DT
to	DT
break	DT
major	JJ
stories	NNS
with	IN
a	DT
large	JJ
investigative-reporting	DT
team	NN
.	.
	
``	``
The	NNP
next	JJ
stage	NN
is	VBZ
to	DT
get	VBP
beyond	DT
the	DT
opinion	NN
leaders	NNS
who	WP
use	NN
us	DT
as	IN
a	DT
point	NN
of	IN
reference	DT
to	DT
become	VBN
a	DT
point	NN
of	IN
reference	DT
at	IN
ordinary	JJ
dinner	DT
tables	NNS
,	,
''	''
says	VBZ
Jon	NNP
Petrovich	DT
,	,
executive	NN
vice	NN
president	NN
of	IN
Headline	DT
News	NNP
,	,
CNN	DT
's	VBZ
sister	NN
network	NN
.	.
	
But	CC
that	WDT
wo	MD
n't	RB
be	DT
easy	JJ
.	.
	
Networks	DT
,	,
like	JJ
other	JJ
consumer	NN
products	NNS
,	,
develop	DT
images	DT
in	IN
peoples	DT
'	'
minds	DT
that	WDT
are	VBP
n't	RB
easy	JJ
to	DT
change	NN
.	.
	
It	PRP
also	RB
takes	VBZ
money	NN
that	WDT
CNN	DT
has	VBZ
been	VBN
reluctant	DT
to	DT
spend	VBP
to	DT
make	VBP
programs	NNS
and	CC
hire	DT
talent	DT
that	WDT
viewers	NNS
will	MD
tune	NN
in	IN
specially	DT
to	DT
see	VBP
.	.
	
And	CC
the	DT
cable-TV	DT
operators	DT
--	--
CNN	DT
's	VBZ
distributors	DT
and	CC
part	NN
owners	NNS
--	--
like	JJ
things	NNS
just	RB
the	DT
way	NN
they	DT
are	VBP
.	.
	
The	NNP
repositioning	DT
bid	NN
is	VBZ
aimed	VBN
at	IN
CNN	DT
's	VBZ
unsteady	DT
viewership	DT
--	--
and	CC
what	WP
may	MD
happen	DT
to	DT
it	DT
as	IN
the	DT
cable-TV	DT
news	NN
market	NN
grows	DT
more	RBR
competitive	JJ
.	.
	
Already	DT
,	,
CNN	DT
is	VBZ
facing	VBG
stronger	DT
competition	NN
from	IN
Financial	NNP
News	NNP
Network	NN
Inc.	DT
and	CC
General	NNP
Electric	NNP
Co.	DT
's	PRP
Consumer	DT
News	NNP
and	CC
Business	NNP
Channel	DT
,	,
both	DT
of	IN
which	DT
are	VBP
likely	JJ
to	DT
pursue	DT
more	RBR
general	NN
news	NN
in	IN
the	DT
future	NN
.	.
	
In	IN
addition	NN
,	,
many	JJ
cable-TV	DT
systems	NNS
themselves	DT
are	VBP
airing	DT
more	RBR
local	JJ
and	CC
regional	JJ
news	NN
programs	NNS
produced	VBN
by	IN
local	JJ
broadcast	NN
stations	NNS
.	.
	
CNN	DT
wants	VBZ
to	DT
change	NN
its	DT
viewers	NNS
'	'
habits	DT
.	.
	
Its	DT
watchers	DT
are	VBP
,	,
on	IN
the	DT
whole	JJ
,	,
a	DT
disloyal	DT
group	NN
of	IN
channel-zapping	DT
``	``
grazers	DT
''	''
and	CC
news	NN
junkies	DT
,	,
who	WP
spend	VBP
an	DT
average	NN
of	IN
just	RB
26	CD
minutes	NNS
a	DT
day	NN
watching	VBG
CNN	DT
,	,
according	VBG
to	DT
audience	DT
research	NN
.	.
	
That	IN
's	VBZ
less	RBR
than	IN
one-third	DT
the	DT
time	NN
that	WDT
viewers	NNS
watch	DT
the	DT
major	JJ
broadcast	NN
networks	NNS
.	.
	
The	NNP
brief	NN
attention	NN
viewers	NNS
give	VBP
CNN	DT
could	MD
put	VBN
it	DT
at	IN
a	DT
disadvantage	NN
as	IN
ratings	DT
data	NNS
,	,
and	CC
advertising	NN
,	,
become	VBN
more	RBR
important	JJ
to	DT
cable-TV	DT
channels	DT
.	.
	
CNN	DT
's	VBZ
viewer	DT
habits	DT
have	VBP
been	VBN
molded	DT
by	IN
its	DT
format	NN
.	.
	
Its	DT
strategy	NN
in	IN
the	DT
past	NN
has	VBZ
been	VBN
to	DT
serve	DT
as	IN
a	DT
TV	NN
wire	NN
service	NN
.	.
	
It	PRP
focused	VBD
on	IN
building	NN
up	IN
its	DT
news	NN
bureaus	DT
around	IN
the	DT
world	NN
,	,
so	IN
as	IN
events	NNS
took	VBD
place	NN
it	DT
could	MD
go	VBP
live	DT
quicker	DT
and	CC
longer	JJR
than	IN
other	JJ
networks	NNS
.	.
	
It	PRP
filled	DT
its	DT
daily	JJ
schedule	DT
with	IN
newscasts	DT
called	VBN
``	``
Daybreak	DT
,	,
''	''
``	``
Daywatch	DT
,	,
''	''
``	``
Newsday	DT
,	,
''	''
and	CC
``	``
Newsnight	DT
,	,
''	''
but	CC
the	DT
shows	VBZ
varied	DT
little	JJ
in	IN
content	NN
,	,
personality	DT
or	CC
look	VBP
.	.
	
Now	RB
,	,
the	DT
push	NN
is	VBZ
on	IN
for	IN
more-distinctive	DT
shows	VBZ
.	.
	
``	``
Our	DT
goal	NN
is	VBZ
to	DT
create	VBP
more	RBR
programs	NNS
with	IN
an	DT
individual	JJ
identity	DT
,	,
''	''
says	VBZ
Paul	NNP
Amos	DT
,	,
CNN	DT
executive	NN
vice	NN
president	NN
for	IN
programming	NN
.	.
	
Accordingly	DT
,	,
CNN	DT
is	VBZ
adding	VBG
a	DT
world-affairs	DT
show	NN
in	IN
the	DT
morning	NN
because	IN
surveys	DT
show	NN
its	DT
global-news	DT
hour	NN
in	IN
the	DT
afternoon	NN
is	VBZ
among	IN
its	DT
most	RBS
``	``
differentiated	DT
''	''
programs	NNS
in	IN
viewers	NNS
'	'
minds	DT
,	,
says	VBZ
Mr.	DT
Amos	DT
.	.
	
And	CC
it	DT
is	VBZ
exploring	DT
other	JJ
original	JJ
programs	NNS
,	,
similar	JJ
to	DT
its	DT
``	``
Larry	DT
King	NNP
Live	DT
''	''
and	CC
``	``
Crossfire	DT
''	''
talk	NN
shows	VBZ
,	,
which	DT
executives	NNS
hope	VB
will	MD
keep	VBP
people	NNS
tuned	DT
in	IN
.	.
	
Then	RB
there	RB
's	VBZ
``	``
The	NNP
World	NNP
Today	NN
,	,
''	''
the	DT
prime-time	JJ
newscast	DT
featuring	VBG
Mr.	DT
Shaw	DT
and	CC
Ms.	DT
Crier	DT
.	.
	
Until	DT
now	RB
,	,
CNN	DT
has	VBZ
featured	DT
its	DT
Hollywood	NNP
gossip	NN
show	NN
during	IN
the	DT
key	NN
evening	NN
period	NN
.	.
	
But	CC
70	DT
%	%
of	IN
the	DT
cable-television-equipped	DT
households	DT
that	WDT
watch	DT
news	NN
do	VBP
so	IN
between	IN
6:30	DT
p.m.	DT
and	CC
7	CD
p.m.	DT
,	,
the	DT
network	NN
discovered	VBN
,	,
so	IN
CNN	DT
wants	VBZ
in	IN
.	.
	
Mr.	DT
Amos	DT
says	VBZ
the	DT
Shaw-Crier	DT
team	NN
will	MD
probably	RB
do	VBP
two	CD
live	DT
interviews	DT
a	DT
day	NN
,	,
with	IN
most	RBS
of	IN
the	DT
program	NN
,	,
at	IN
least	JJS
for	IN
now	RB
,	,
appearing	DT
similar	JJ
to	DT
CNN	DT
's	VBZ
other	JJ
newcasts	DT
.	.
	
Some	DT
in	IN
the	DT
industry	NN
are	VBP
skeptical	JJ
.	.
	
``	``
I	DT
find	DT
it	DT
hard	JJ
to	DT
conceive	DT
of	IN
people	NNS
switching	DT
over	IN
to	DT
CNN	DT
for	IN
what	WP
,	,
at	IN
least	JJS
in	IN
the	DT
public	JJ
's	VBZ
mind	NN
,	,
is	VBZ
the	DT
same	JJ
news	NN
,	,
''	''
says	VBZ
Reuven	DT
Frank	NNP
,	,
the	DT
former	JJ
two-time	DT
president	NN
of	IN
NBC	NNP
News	NNP
and	CC
creator	DT
of	IN
the	DT
Huntley-Brinkley	DT
Report	NNP
.	.
	
The	NNP
evening	NN
news	NN
is	VBZ
also	RB
slated	VBN
as	IN
CNN	DT
's	VBZ
stage	NN
for	IN
its	DT
big	JJ
push	NN
into	IN
investigative	DT
journalism	DT
.	.
	
In	IN
August	NNP
,	,
the	DT
network	NN
hired	VBN
award-winning	DT
producer	NN
Pamela	DT
Hill	NNP
,	,
the	DT
former	JJ
head	NN
of	IN
news	NN
specials	DT
at	IN
ABC	NNP
.	.
	
She	DT
's	VBZ
assembling	DT
a	DT
staff	NN
of	IN
about	IN
35	CD
investigative	DT
reporters	NNS
who	WP
will	MD
produce	DT
weekly	JJ
,	,
in-depth	DT
segments	DT
,	,
with	IN
an	DT
eye	DT
toward	IN
breaking	VBG
big	JJ
stories	NNS
.	.
	
CNN	DT
executives	NNS
hope	VB
the	DT
headlines	DT
created	VBN
by	IN
such	JJ
scoops	DT
will	MD
generate	DT
excitement	NN
for	IN
its	DT
``	``
branded	DT
''	''
programs	NNS
,	,
in	IN
the	DT
way	NN
``	``
60	CD
Minutes	DT
''	''
did	VBD
so	IN
well	RB
for	IN
CBS	NNP
.	.
	
That	IN
's	VBZ
such	JJ
a	DT
departure	DT
from	IN
the	DT
past	NN
that	WDT
many	JJ
in	IN
the	DT
industry	NN
are	VBP
skeptical	JJ
CNN	DT
will	MD
follow	DT
through	IN
with	IN
its	DT
investigative	DT
commitment	NN
,	,
especially	RB
after	IN
it	DT
sees	VBZ
the	DT
cost	NN
of	IN
producing	VBG
in-depth	DT
pieces	NNS
.	.
	
``	``
They	DT
've	VBP
never	RB
shown	VBN
any	DT
inclination	DT
to	DT
spend	VBP
money	NN
on	IN
production	NN
,	,
''	''
says	VBZ
Michael	NNP
Mosettig	DT
,	,
a	DT
senior	JJ
producer	NN
with	IN
MacNeil-Lehrer	DT
NewsHour	DT
,	,
who	WP
notes	NNS
that	WDT
CNN	DT
is	VBZ
indispensable	DT
to	DT
his	DT
job	NN
.	.
	
The	NNP
network	NN
's	VBZ
salaries	NNS
have	VBP
always	DT
ranged	DT
far	JJ
below	IN
industry	NN
standards	NNS
,	,
resulting	VBG
in	IN
a	DT
less-experienced	DT
work	NN
force	NN
.	.
	
CNN	DT
recently	RB
gave	VBD
most	RBS
employees	NNS
raises	DT
of	IN
as	IN
much	JJ
as	IN
15	CD
%	%
,	,
but	CC
they	DT
're	VBP
still	RB
drastically	DT
underpaid	DT
compared	VBN
with	IN
the	DT
networks	NNS
.	.
	
Says	VBZ
Mr.	DT
Mosettig	DT
:	:
``	``
CNN	DT
is	VBZ
my	DT
wire	NN
service	NN
;	;
they	DT
're	VBP
on	IN
top	NN
of	IN
everything	NN
.	.
	
But	CC
to	DT
improve	DT
,	,
they	DT
've	VBP
really	RB
got	VBN
to	DT
make	VBP
the	DT
investment	NN
in	IN
people	NNS
.	.
''	''
	
In	IN
any	DT
case	NN
,	,
cable-TV-system	DT
operators	DT
have	VBP
reason	NN
to	DT
fear	NN
any	DT
tinkering	DT
with	IN
CNN	DT
's	VBZ
format	NN
.	.
	
They	DT
market	NN
cable-TV	DT
on	IN
the	DT
very	RB
grazing	DT
opportunities	NNS
CNN	DT
seeks	DT
to	DT
discourage	DT
.	.
	
``	``
We	DT
would	MD
obviously	DT
be	DT
upset	DT
if	IN
those	DT
kinds	NNS
of	IN
services	NNS
evolved	DT
into	IN
more	RBR
general-interest	DT
,	,
long-format	DT
programming	NN
,	,
''	''
says	VBZ
Robert	NNP
Stengel	DT
,	,
senior	JJ
vice	NN
president	NN
,	,
programming	NN
,	,
of	IN
Continental	NNP
Cablevision	DT
Inc.	DT
,	,
which	DT
holds	DT
a	DT
2	CD
%	%
stake	NN
in	IN
Turner	NNP
Broadcasting	NNP
.	.
	
The	NNP
Second	DT
U.S.	DT
Circuit	NN
Court	NNP
of	IN
Appeals	NNPS
opinion	NN
in	IN
the	DT
Arcadian	DT
Phosphate	DT
case	NN
did	VBD
not	RB
repudiate	DT
the	DT
position	NN
Pennzoil	DT
Co.	DT
took	VBD
in	IN
its	DT
dispute	NN
with	IN
Texaco	DT
,	,
contrary	NN
to	DT
your	DT
Sept.	DT
8	CD
article	NN
``	``
Court	NNP
Backs	DT
Texaco	DT
's	VBZ
View	DT
in	IN
Pennzoil	DT
Case	DT
--	--
Too	NNP
Late	JJ
.	.
''	''
	
The	NNP
fundamental	JJ
rule	NN
of	IN
contract	NN
law	NN
applied	VBN
to	DT
both	DT
cases	NNS
was	VBD
that	WDT
courts	NNS
will	MD
not	RB
enforce	DT
agreements	DT
to	DT
which	DT
the	DT
parties	NNS
did	VBD
not	RB
intend	DT
to	DT
be	DT
bound	DT
.	.
	
In	IN
the	DT
Pennzoil\/Texaco	DT
litigation	DT
,	,
the	DT
courts	NNS
found	VBN
Pennzoil	DT
and	CC
Getty	DT
Oil	DT
intended	VBN
to	DT
be	DT
bound	DT
;	;
in	IN
Arcadian	DT
Phosphates	DT
they	DT
found	VBN
there	RB
was	VBD
no	RB
intention	DT
to	DT
be	DT
bound	DT
.	.
	
Admittedly	DT
,	,
the	DT
principle	NN
in	IN
the	DT
cases	NNS
is	VBZ
the	DT
same	JJ
.	.
	
But	CC
the	DT
outcome	DT
of	IN
a	DT
legal	JJ
dispute	NN
almost	RB
always	DT
turns	DT
on	IN
the	DT
facts	NNS
.	.
	
And	CC
the	DT
facts	NNS
,	,
as	IN
found	VBN
by	IN
the	DT
various	JJ
courts	NNS
in	IN
these	DT
two	CD
lawsuits	DT
,	,
were	VBD
different	JJ
.	.
	
When	DT
you	DT
suggest	VBP
otherwise	DT
,	,
you	DT
leave	VBP
the	DT
realm	DT
of	IN
reporting	VBG
and	CC
enter	DT
the	DT
orbit	DT
of	IN
speculation	NN
.	.
	
Charles	NNP
F.	DT
Vihon	DT
	
Valley	NNP
Federal	NNP
Savings	NNP
&	&
Loan	NNP
Association	NNP
said	VBN
Imperial	NNP
Corp.	DT
of	IN
America	NNP
withdrew	VBD
from	IN
regulators	NNS
its	DT
application	NN
to	DT
buy	DT
five	CD
Valley	NNP
Federal	NNP
branches	DT
,	,
leaving	VBG
the	DT
transaction	NN
in	IN
limbo	DT
.	.
	
The	NNP
broken	VBN
purchase	NN
appears	VBZ
as	IN
additional	JJ
evidence	NN
of	IN
trouble	NN
at	IN
Imperial	NNP
Corp.	DT
,	,
whose	DT
spokesman	NN
said	VBN
the	DT
company	NN
withdrew	VBD
its	DT
application	NN
from	IN
the	DT
federal	JJ
Office	NN
of	IN
Thrift	DT
Supervision	DT
because	IN
of	IN
an	DT
informal	DT
notice	NN
that	WDT
Imperial	NNP
's	VBZ
thrift	NN
unit	NN
failed	VBN
to	DT
meet	VBP
Community	NNP
Reinvestment	DT
Act	NNP
requirements	NNS
.	.
	
The	NNP
Community	NNP
Reinvestment	DT
Act	NNP
requires	VBZ
savings	DT
and	CC
loan	NN
associations	NNS
to	DT
lend	DT
money	NN
in	IN
amounts	NNS
related	VBN
to	DT
areas	NNS
where	DT
deposits	DT
are	VBP
received	VBN
.	.
	
The	NNP
transaction	NN
,	,
announced	VBN
in	IN
August	NNP
,	,
included	VBN
about	IN
$	$
146	DT
million	CD
in	IN
deposits	DT
at	IN
the	DT
five	CD
outlets	DT
in	IN
California	NNP
's	VBZ
San	NNP
Joaquin	DT
Valley	NNP
.	.
	
Terms	DT
were	VBD
n't	RB
disclosed	VBN
,	,
but	CC
Valley	NNP
Federal	NNP
had	VBN
said	VBN
it	DT
expected	VBN
to	DT
post	NN
a	DT
modest	JJ
pretax	NN
gain	NN
and	CC
to	DT
save	DT
about	IN
$	$
2	CD
million	CD
in	IN
operating	VBG
costs	NNS
annually	RB
.	.
	
Valley	NNP
Federal	NNP
said	VBN
Friday	NNP
that	WDT
it	DT
is	VBZ
considering	VBG
whether	IN
to	DT
seek	VBP
another	DT
buyer	NN
for	IN
the	DT
branches	DT
or	CC
to	DT
pursue	DT
the	DT
transaction	NN
with	IN
Imperial	NNP
Corp.	DT
,	,
which	DT
said	VBN
it	DT
is	VBZ
attempting	VBG
to	DT
meet	VBP
Community	NNP
Reinvestment	DT
Act	NNP
requirements	NNS
.	.
	
Valley	NNP
Federal	NNP
,	,
with	IN
assets	NNS
of	IN
$	$
3.3	CD
billion	CD
,	,
is	VBZ
based	VBN
in	IN
Van	DT
Nuys	DT
.	.
	
Imperial	NNP
Corp.	DT
,	,
based	VBN
in	IN
San	NNP
Diego	NNP
,	,
is	VBZ
the	DT
parent	NN
of	IN
Imperial	NNP
Savings	NNP
&	&
Loan	NNP
.	.
	
In	IN
the	DT
first	JJ
six	CD
months	NNS
of	IN
the	DT
year	NN
it	DT
posted	VBN
a	DT
net	JJ
loss	NN
of	IN
$	$
33.1	DT
million	CD
.	.
	
Call	DT
it	DT
the	DT
``	``
we	DT
're	VBP
too	RB
broke	VBD
to	DT
fight	NN
''	''
defense	NN
.	.
	
Lawyers	NNS
for	IN
dozens	NNS
of	IN
insolvent	JJ
savings	DT
and	CC
loan	NN
associations	NNS
are	VBP
trying	VBG
a	DT
new	JJ
tack	DT
in	IN
their	DT
efforts	NNS
to	DT
defuse	DT
suits	NNS
filed	VBN
by	IN
borrowers	DT
,	,
developers	DT
and	CC
creditors	NNS
.	.
	
The	NNP
thrifts	NNS
'	'
lawyers	NNS
claim	NN
that	WDT
the	DT
suits	NNS
,	,
numbering	DT
700	DT
to	DT
1,000	CD
in	IN
Texas	NNP
alone	RB
,	,
should	MD
be	DT
dismissed	VBN
as	IN
moot	DT
because	IN
neither	CC
the	DT
S&Ls	NNS
nor	CC
the	DT
extinct	DT
Federal	NNP
Savings	NNP
and	CC
Loan	NNP
Insurance	NNP
Corp.	DT
has	VBZ
the	DT
money	NN
to	DT
pay	NN
judgments	DT
.	.
	
Though	IN
the	DT
argument	NN
may	MD
have	VBP
a	DT
common-sense	DT
ring	DT
to	DT
it	DT
,	,
even	RB
the	DT
S&L	DT
lawyers	NNS
concede	DT
there	RB
's	VBZ
little	JJ
precedent	DT
to	DT
back	VB
their	DT
position	NN
.	.
	
Still	RB
,	,
one	CD
federal	JJ
appeals	NNS
court	NN
has	VBZ
signaled	VBD
it	DT
's	VBZ
willing	JJ
to	DT
entertain	DT
the	DT
notion	NN
,	,
and	CC
the	DT
lawyers	NNS
have	VBP
renewed	VBN
their	DT
arguments	NNS
in	IN
Texas	NNP
and	CC
eight	CD
other	JJ
states	NNS
where	DT
the	DT
defense	NN
is	VBZ
permitted	VBN
under	IN
state	NN
law	NN
.	.
	
The	NNP
dismissal	DT
of	IN
the	DT
pending	DT
suits	NNS
could	MD
go	VBP
a	DT
long	JJ
way	NN
toward	IN
clearing	NN
court	NN
dockets	DT
in	IN
Texas	NNP
and	CC
reducing	VBG
the	DT
FSLIC	DT
's	VBZ
massive	JJ
legal	JJ
bills	NNS
,	,
which	DT
topped	DT
$	$
73	DT
million	CD
last	JJ
year	NN
.	.
	
The	NNP
S&L	DT
lawyers	NNS
were	VBD
encouraged	VBN
last	JJ
month	NN
by	IN
an	DT
appellate-court	DT
ruling	NN
in	IN
two	CD
cases	NNS
brought	VBN
against	IN
defunct	JJ
Sunbelt	DT
Savings	NNP
&	&
Loan	NNP
Association	NNP
of	IN
Dallas	NNP
by	IN
the	DT
developers	DT
of	IN
the	DT
Valley	NNP
Ranch	DT
,	,
best	JJS
known	VBN
as	IN
the	DT
training	NN
center	NN
for	IN
the	DT
Dallas	NNP
Cowboys	DT
football	NN
team	NN
.	.
	
Sunbelt	DT
foreclosed	DT
on	IN
the	DT
ranch	DT
.	.
	
Sunbelt	DT
and	CC
the	DT
FSLIC	DT
argued	VBN
to	DT
the	DT
Fifth	DT
U.S.	DT
Circuit	NN
Court	NNP
of	IN
Appeals	NNPS
``	``
that	WDT
there	RB
will	MD
never	RB
be	DT
any	DT
assets	NNS
with	IN
which	DT
to	DT
satisfy	DT
a	DT
judgment	DT
against	IN
Sunbelt	DT
Savings	NNP
nor	CC
any	DT
means	VBZ
to	DT
collect	DT
from	IN
any	DT
other	JJ
party	NN
,	,
including	VBG
FSLIC	DT
.	.
''	''
	
``	``
If	IN
true	JJ
,	,
''	''
the	DT
court	NN
wrote	VBD
,	,
``	``
this	DT
contention	NN
would	MD
justify	DT
dismissal	DT
of	IN
these	DT
actions	NNS
on	IN
prudential	DT
grounds	DT
.	.
''	''
	
But	CC
the	DT
court	NN
said	VBN
it	DT
lacked	DT
enough	JJ
financial	JJ
information	NN
about	IN
Sunbelt	DT
and	CC
the	DT
FSLIC	DT
and	CC
sent	DT
the	DT
cases	NNS
back	VB
to	DT
federal	JJ
district	NN
court	NN
in	IN
Dallas	NNP
.	.
	
Charles	NNP
Haworth	DT
,	,
a	DT
lawyer	NN
for	IN
Sunbelt	DT
,	,
says	VBZ
he	DT
plans	NNS
to	DT
file	NN
a	DT
brief	NN
this	DT
week	NN
urging	VBG
the	DT
district	NN
judge	NN
to	DT
dismiss	DT
the	DT
suits	NNS
,	,
because	IN
Sunbelt	DT
's	VBZ
liabilities	DT
exceeded	VBN
its	DT
assets	NNS
by	IN
about	IN
$	$
2	CD
billion	CD
when	DT
federal	JJ
regulators	NNS
closed	VBN
it	DT
in	IN
August	NNP
1988	CD
.	.
	
``	``
This	DT
institution	DT
is	VBZ
just	RB
brain	DT
dead	DT
,	,
''	''
says	VBZ
Mr.	DT
Haworth	DT
,	,
a	DT
partner	NN
in	IN
the	DT
Dallas	NNP
office	NN
of	IN
Andrews	DT
&	&
Kurth	DT
,	,
a	DT
Houston	NNP
law	NN
firm	NN
.	.
	
But	CC
a	DT
lawyer	NN
for	IN
Triland	DT
Investment	NNP
Group	NNP
,	,
the	DT
developer	NN
of	IN
Valley	NNP
Ranch	DT
,	,
dismisses	DT
such	JJ
arguments	NNS
as	IN
a	DT
``	``
defense	NN
du	DT
jour	DT
.	.
''	''
	
Attorney	DT
Richard	NNP
Jackson	DT
of	IN
Dallas	NNP
says	VBZ
a	DT
judgment	DT
for	IN
Triland	DT
could	MD
be	DT
satisfied	VBN
in	IN
ways	NNS
other	JJ
than	IN
a	DT
monetary	DT
award	NN
,	,
including	VBG
the	DT
reversal	DT
of	IN
Sunbelt	DT
's	VBZ
foreclosure	DT
on	IN
Valley	NNP
Ranch	DT
.	.
	
``	``
We	DT
're	VBP
asking	VBG
the	DT
court	NN
for	IN
a	DT
number	NN
of	IN
things	NNS
he	DT
can	MD
grant	NN
in	IN
addition	NN
to	DT
the	DT
thrill	DT
of	IN
victory	NN
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
We	DT
'd	MD
take	VBP
the	DT
Valley	NNP
Ranch	DT
free	JJ
and	CC
clear	JJ
as	IN
a	DT
booby	DT
prize	DT
.	.
	
Kenneth	NNP
J.	DT
Thygerson	DT
,	,
who	WP
was	VBD
named	VBN
president	NN
of	IN
this	DT
thrift	NN
holding	VBG
company	NN
in	IN
August	NNP
,	,
resigned	VBD
,	,
citing	VBG
personal	JJ
reasons	NNS
.	.
	
Mr.	DT
Thygerson	DT
said	VBN
he	DT
had	VBN
planned	VBN
to	DT
travel	DT
between	IN
the	DT
job	NN
in	IN
Denver	NNP
and	CC
his	DT
San	NNP
Diego	NNP
home	RB
,	,
but	CC
has	VBZ
found	VBN
the	DT
commute	DT
too	RB
difficult	JJ
to	DT
continue	DT
.	.
	
A	DT
new	JJ
president	NN
was	VBD
n't	RB
named	VBN
.	.
	
SOUTH	DT
AFRICA	DT
FREED	DT
the	DT
ANC	NNP
's	VBZ
Sisulu	NNP
and	CC
seven	CD
other	JJ
political	JJ
prisoners	DT
.	.
	
Thousands	DT
of	IN
supporters	DT
,	,
many	JJ
brandishing	DT
flags	NNS
of	IN
the	DT
outlawed	VBN
African	NNP
National	NNP
Congress	NNP
,	,
gave	VBD
the	DT
anti-apartheid	NN
activists	NNS
a	DT
tumultuous	DT
reception	DT
upon	IN
their	DT
return	NN
to	DT
black	JJ
townships	NNS
across	IN
the	DT
country	NN
.	.
	
Most	RBS
of	IN
those	DT
freed	VBN
had	VBN
spent	VBN
at	IN
least	JJS
25	CD
years	NNS
in	IN
prison	NN
.	.
	
The	NNP
77-year-old	JJ
Sisulu	NNP
,	,
sentenced	VBN
to	DT
life	NN
in	IN
1964	DT
along	IN
with	IN
black	JJ
nationalist	DT
Nelson	NNP
Mandela	NNP
for	IN
plotting	DT
to	DT
overthrow	DT
the	DT
government	NN
,	,
said	VBN
equality	DT
for	IN
blacks	NNS
in	IN
South	NNP
Africa	NNP
was	VBD
in	IN
reach	VBP
.	.
	
The	NNP
releases	NNS
,	,
announced	VBN
last	JJ
week	NN
by	IN
President	NNP
de	FW
Klerk	NNP
,	,
were	VBD
viewed	VBN
as	IN
Pretoria	NNP
's	VBZ
tacit	DT
legalization	DT
of	IN
the	DT
ANC	NNP
.	.
	
Mandela	NNP
,	,
considered	VBN
the	DT
most	RBS
prominent	JJ
leader	NN
of	IN
the	DT
ANC	NNP
,	,
remains	VBZ
in	IN
prison	NN
.	.
	
But	CC
his	DT
release	NN
within	IN
the	DT
next	JJ
few	JJ
months	NNS
is	VBZ
widely	RB
expected	VBN
.	.
	
The	NNP
Soviet	NNP
Union	NNP
reported	VBN
that	WDT
thousands	NNS
of	IN
tons	NNS
of	IN
goods	NNS
needed	VBN
to	DT
ease	DT
widespread	DT
shortages	DT
across	IN
the	DT
nation	NN
were	VBD
piled	DT
up	IN
at	IN
ports	DT
and	CC
rail	NN
depots	DT
,	,
and	CC
food	NN
shipments	NNS
were	VBD
rotting	VBG
because	IN
of	IN
a	DT
lack	NN
of	IN
people	NNS
and	CC
equipment	NN
to	DT
move	NN
the	DT
cargo	DT
.	.
	
Strikes	DT
and	CC
mismanagement	DT
were	VBD
cited	VBD
,	,
and	CC
Premier	DT
Ryzhkov	DT
warned	VBD
of	IN
``	``
tough	JJ
measures	NNS
.	.
''	''
	
Bush	NNP
indicated	VBN
there	RB
might	MD
be	DT
``	``
room	NN
for	IN
flexibility	NN
''	''
in	IN
a	DT
bill	NN
to	DT
allow	DT
federal	JJ
funding	NN
of	IN
abortions	NNS
for	IN
poor	JJ
women	NNS
who	WP
are	VBP
vicitims	DT
of	IN
rape	DT
and	CC
incest	DT
.	.
	
He	DT
reiterated	DT
his	DT
opposition	NN
to	DT
such	JJ
funding	NN
,	,
but	CC
expressed	VBD
hope	VB
of	IN
a	DT
compromise	NN
.	.
	
The	NNP
president	NN
,	,
at	IN
a	DT
news	NN
conference	NN
Friday	NNP
,	,
also	RB
renewed	VBN
a	DT
call	DT
for	IN
the	DT
ouster	DT
of	IN
Panama	NNP
's	VBZ
Noriega	DT
.	.
	
The	NNP
White	NNP
House	NNP
said	VBN
minors	NNS
have	VBP
n't	RB
any	DT
right	NN
to	DT
abortion	NN
without	IN
the	DT
consent	NN
of	IN
their	DT
parents	NNS
.	.
	
The	NNP
administration	NN
's	VBZ
policy	NN
was	VBD
stated	DT
in	IN
a	DT
friend-of-the-court	JJ
brief	NN
urging	VBG
the	DT
Supreme	NNP
Court	NNP
to	DT
give	VBP
states	NNS
more	RBR
leeway	NN
to	DT
restrict	DT
abortions	NNS
.	.
	
Ten	DT
of	IN
the	DT
nation	NN
's	VBZ
governors	NNS
,	,
meanwhile	RB
,	,
called	VBN
on	IN
the	DT
justices	NNS
to	DT
reject	DT
efforts	NNS
to	DT
limit	NN
abortions	NNS
.	.
	
The	NNP
Justice	NNP
Department	NNP
announced	VBN
that	WDT
the	DT
FBI	DT
has	VBZ
been	VBN
given	VBN
the	DT
authority	NN
to	DT
seize	DT
U.S.	DT
fugitives	DT
overseas	RB
without	IN
the	DT
permission	NN
of	IN
foreign	JJ
governments	NNS
.	.
	
Secretary	NNP
of	IN
State	NNP
Baker	DT
emphasized	DT
Friday	NNP
that	WDT
the	DT
new	JJ
policy	NN
would	MD
n't	RB
be	DT
invoked	DT
by	IN
the	DT
Bush	NNP
administration	NN
without	IN
full	JJ
consideration	DT
of	IN
foreign-policy	DT
implications	NNS
.	.
	
NASA	DT
pronounced	DT
the	DT
space	NN
shuttle	DT
Atlantis	DT
ready	JJ
for	IN
launch	DT
tomorrow	NN
following	VBG
a	DT
five-day	DT
postponement	DT
of	IN
the	DT
flight	NN
because	IN
of	IN
a	DT
faulty	DT
engine	DT
computer	NN
.	.
	
The	NNP
device	DT
was	VBD
replaced	VBD
.	.
	
The	NNP
spacecraft	DT
's	VBZ
five	CD
astronauts	DT
are	VBP
to	DT
dispatch	DT
the	DT
Galileo	DT
space	NN
probe	NN
on	IN
an	DT
exploration	DT
mission	NN
to	DT
Jupiter	DT
.	.
	
South	NNP
Korea	DT
's	VBZ
President	NNP
Roh	DT
traveled	DT
to	DT
the	DT
U.S.	DT
for	IN
a	DT
five-day	DT
visit	DT
that	WDT
is	VBZ
expected	VBN
to	DT
focus	NN
on	IN
ties	NNS
between	IN
Washington	NNP
and	CC
Seoul	DT
.	.
	
Roh	DT
,	,
who	WP
is	VBZ
facing	VBG
calls	VBZ
for	IN
the	DT
reduction	NN
of	IN
U.S.	DT
military	JJ
forces	DT
in	IN
South	NNP
Korea	DT
,	,
is	VBZ
to	DT
meet	VBP
with	IN
Bush	NNP
tomorrow	NN
and	CC
is	VBZ
to	DT
address	DT
a	DT
joint	JJ
session	NN
of	IN
Congress	NNP
on	IN
Wednesday	NNP
.	.
	
China	NNP
's	VBZ
Communist	NNP
leadership	NN
voted	VBD
to	DT
purge	DT
the	DT
party	NN
of	IN
``	``
hostile	JJ
and	CC
anti-party	DT
elements	DT
''	''
and	CC
wealthy	DT
private	JJ
businessmen	DT
,	,
whom	WP
they	DT
called	VBN
exploiters	DT
.	.
	
The	NNP
decision	NN
,	,
reported	VBN
by	IN
the	DT
official	NN
Xinhua	DT
News	NNP
Agency	NNP
,	,
indicated	VBN
that	WDT
the	DT
crackdown	DT
prompted	VBN
by	IN
student-led	DT
pro-democracy	DT
protests	NNS
in	IN
June	NNP
is	VBZ
intensifying	VBG
.	.
	
Hundreds	DT
of	IN
East	NNP
Germans	DT
flocked	DT
to	DT
Bonn	DT
's	VBZ
Embassy	DT
in	IN
Warsaw	NNP
,	,
bringing	VBG
to	DT
more	RBR
than	IN
1,200	DT
the	DT
number	NN
of	IN
emigres	DT
expected	VBN
to	DT
flee	DT
to	DT
the	DT
West	NNP
beginning	NN
today	NN
.	.
	
More	JJR
than	IN
2,100	DT
others	NNS
escaped	DT
to	DT
West	NNP
Germany	NNP
through	IN
Hungary	NNP
over	IN
the	DT
Weekend	DT
.	.
	
In	IN
Leipzig	DT
,	,
activists	NNS
vowed	VBD
to	DT
continue	DT
street	NN
protests	NNS
to	DT
demand	NN
internal	JJ
change	NN
.	.
	
Zaire	DT
's	VBZ
President	NNP
Mobutu	DT
met	VBN
in	IN
southern	JJ
France	NNP
with	IN
Angolan	DT
rebel	DT
leader	NN
Savimbi	DT
and	CC
a	DT
senior	JJ
U.S.	DT
envoy	DT
in	IN
a	DT
bid	NN
to	DT
revive	DT
an	DT
accord	NN
to	DT
end	NN
Angola	DT
's	VBZ
civil	JJ
war	NN
.	.
	
Details	NNS
of	IN
the	DT
talks	NNS
,	,
described	VBN
by	IN
a	DT
Zairean	DT
official	NN
as	IN
``	``
very	RB
delicate	DT
,	,
''	''
were	VBD
n't	RB
disclosed	VBN
.	.
	
PLO	DT
leader	NN
Arafat	DT
insisted	VBD
on	IN
guarantees	DT
that	WDT
any	DT
elections	NNS
in	IN
the	DT
Israeli-occupied	DT
territories	DT
would	MD
be	DT
impartial	DT
.	.
	
He	DT
made	VBN
his	DT
remarks	NNS
to	DT
a	DT
PLO	DT
gathering	DT
in	IN
Baghdad	DT
.	.
	
In	IN
the	DT
occupied	DT
lands	NNS
,	,
underground	DT
leaders	NNS
of	IN
the	DT
Arab	DT
uprising	DT
rejected	VBD
a	DT
U.S.	DT
plan	NN
to	DT
arrange	DT
Israeli-Palestinian	DT
talks	NNS
as	IN
Shamir	DT
opposed	VBN
holding	VBG
such	JJ
discussions	NNS
in	IN
Cairo	DT
.	.
	
Lebanese	DT
Christian	DT
lawmakers	NNS
presented	VBN
to	DT
Arab	DT
mediators	DT
at	IN
talks	NNS
in	IN
Saudi	DT
Arabia	DT
proposals	NNS
for	IN
a	DT
new	JJ
timetable	DT
for	IN
the	DT
withdrawal	NN
of	IN
Syria	DT
's	VBZ
forces	DT
from	IN
Lebanon	NNP
.	.
	
A	DT
plan	NN
currently	RB
under	IN
study	NN
gives	VBZ
Damascus	DT
two	CD
years	NNS
to	DT
pull	VBP
back	VB
to	DT
eastern	JJ
Lebanon	NNP
,	,
starting	VBG
from	IN
the	DT
time	NN
Beirut	DT
's	VBZ
legislature	DT
increases	NNS
political	JJ
power	NN
for	IN
Moslems	DT
.	.
	
Hurricane	DT
Jerry	DT
threatened	VBD
to	DT
combine	DT
with	IN
the	DT
highest	JJS
tides	DT
of	IN
the	DT
year	NN
to	DT
swamp	DT
the	DT
Texas-Louisiana	DT
coast	DT
.	.
	
Thousands	DT
of	IN
residents	NNS
of	IN
low-lying	DT
areas	NNS
were	VBD
ordered	VBD
to	DT
evacuate	DT
as	IN
the	DT
storm	DT
headed	VBN
north	DT
in	IN
the	DT
Gulf	DT
of	IN
Mexico	NNP
with	IN
80	CD
mph	DT
winds	DT
.	.
	
A	DT
group	NN
of	IN
Arby	DT
's	VBZ
franchisees	DT
said	VBN
they	DT
formed	VBN
an	DT
association	NN
to	DT
oppose	VBP
Miami	NNP
Beach	NNP
financier	DT
Victor	DT
Posner	DT
's	VBZ
control	NN
of	IN
the	DT
restaurant	NN
chain	NN
.	.
	
The	NNP
decision	NN
is	VBZ
the	DT
latest	JJS
move	NN
in	IN
an	DT
escalating	DT
battle	NN
between	IN
the	DT
franchisees	DT
and	CC
Mr.	DT
Posner	DT
that	WDT
began	VBD
in	IN
August	NNP
.	.
	
At	IN
the	DT
time	NN
,	,
a	DT
group	NN
called	VBN
R.B.	DT
Partners	NNPS
Ltd.	DT
,	,
consisting	DT
of	IN
eight	CD
of	IN
Arby	DT
's	VBZ
largest	JJS
franchisees	DT
,	,
offered	VBN
more	RBR
than	IN
$	$
200	CD
million	CD
to	DT
buy	DT
Arby	DT
's	VBZ
Inc.	DT
,	,
which	DT
is	VBZ
part	NN
of	IN
DWG	DT
Corp	NNP
.	.
	
DWG	DT
is	VBZ
a	DT
holding	VBG
company	NN
controlled	VBN
by	IN
Mr.	DT
Posner	DT
.	.
	
One	CD
week	NN
later	RB
,	,
Leonard	NNP
H.	DT
Roberts	DT
,	,
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
Arby	DT
's	VBZ
,	,
was	VBD
fired	VBD
in	IN
a	DT
dispute	NN
with	IN
Mr.	DT
Posner	DT
.	.
	
Friday	NNP
,	,
42	CD
franchisees	DT
announced	VBN
the	DT
formation	DT
of	IN
an	DT
association	NN
--	--
called	VBN
A.P.	DT
Association	NNP
Inc.	DT
--	--
to	DT
``	``
preserve	DT
the	DT
integrity	DT
of	IN
the	DT
Arby	DT
's	VBZ
system	NN
.	.
''	''
	
The	NNP
franchisees	DT
,	,
owners	NNS
or	CC
operators	DT
of	IN
1,000	CD
of	IN
the	DT
1,900	DT
franchised	DT
Arby	DT
's	VBZ
in	IN
the	DT
U.S.	DT
,	,
said	VBN
:	:
``	``
We	DT
have	VBP
concluded	VBD
that	WDT
continued	VBN
control	NN
of	IN
Arby	DT
's	VBZ
by	IN
Victor	DT
Posner	DT
is	VBZ
totally	RB
unacceptable	DT
to	DT
us	DT
,	,
because	IN
it	DT
is	VBZ
extremely	RB
likely	JJ
to	DT
cause	NN
irreparable	DT
damage	NN
to	DT
the	DT
Arby	DT
's	VBZ
system	NN
.	.
	
We	DT
support	NN
all	RB
efforts	NNS
to	DT
remove	DT
Victor	DT
Posner	DT
from	IN
control	NN
of	IN
Arby	DT
's	VBZ
Inc.	DT
and	CC
the	DT
Arby	DT
's	VBZ
system	NN
.	.
''	''
	
The	NNP
group	NN
said	VBN
it	DT
would	MD
consider	DT
,	,
among	IN
other	JJ
things	NNS
,	,
withholding	VBG
royalty	NN
payments	NNS
and	CC
initiating	DT
a	DT
class-action	DT
lawsuit	NN
seeking	VBG
court	NN
approval	NN
for	IN
the	DT
withholdings	DT
.	.
	
In	IN
Florida	DT
,	,
Renee	DT
Mottram	DT
,	,
a	DT
senior	JJ
vice	NN
president	NN
at	IN
DWG	DT
,	,
responded	DT
:	:
``	``
We	DT
do	VBP
n't	RB
think	VBP
any	DT
individual	JJ
or	CC
group	NN
should	MD
disrupt	DT
a	DT
winning	DT
system	NN
or	CC
illegally	RB
interfere	DT
with	IN
existing	VBG
contractual	DT
relationships	DT
for	IN
their	DT
own	JJ
self-serving	DT
motives	DT
.	.
	
September	NNP
's	VBZ
steep	JJ
rise	NN
in	IN
producer	NN
prices	NNS
shows	VBZ
that	WDT
inflation	NN
still	RB
persists	DT
,	,
and	CC
the	DT
pessimism	DT
over	IN
interest	NN
rates	NNS
caused	VBN
by	IN
the	DT
new	JJ
price	NN
data	NNS
contributed	VBN
to	DT
the	DT
stock	NN
market	NN
's	VBZ
plunge	NN
Friday	NNP
.	.
	
After	IN
falling	VBG
for	IN
three	CD
consecutive	JJ
months	NNS
,	,
the	DT
producer	NN
price	NN
index	NN
for	IN
finished	DT
goods	NNS
shot	NN
up	IN
0.9	CD
%	%
last	JJ
month	NN
,	,
the	DT
Labor	NNP
Department	NNP
reported	VBN
Friday	NNP
,	,
as	IN
energy	NN
prices	NNS
jumped	VBD
after	IN
tumbling	DT
through	IN
the	DT
summer	NN
.	.
	
Although	IN
the	DT
report	NN
,	,
which	DT
was	VBD
released	VBN
before	IN
the	DT
stock	NN
market	NN
opened	VBN
,	,
did	VBD
n't	RB
trigger	DT
the	DT
190.58-point	JJ
drop	NN
in	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
,	,
analysts	NNS
said	VBN
it	DT
did	VBD
play	NN
a	DT
role	NN
in	IN
the	DT
market	NN
's	VBZ
decline	NN
.	.
	
Analysts	NNS
immediately	RB
viewed	VBN
the	DT
price	NN
data	NNS
,	,
the	DT
grimmest	DT
inflation	NN
news	NN
in	IN
months	NNS
,	,
as	IN
evidence	NN
that	WDT
the	DT
Federal	NNP
Reserve	NNP
was	VBD
unlikely	JJ
to	DT
allow	DT
interest	NN
rates	NNS
to	DT
fall	NN
as	IN
many	JJ
investors	NNS
had	VBN
hoped	VBN
.	.
	
Further	DT
fueling	DT
the	DT
belief	NN
that	WDT
pressures	NNS
in	IN
the	DT
economy	NN
were	VBD
sufficient	DT
to	DT
keep	VBP
the	DT
Fed	NNP
from	IN
easing	DT
credit	NN
,	,
the	DT
Commerce	NNP
Department	NNP
reported	VBN
Friday	NNP
that	WDT
retail	JJ
sales	NNS
grew	VBD
0.5	CD
%	%
in	IN
September	NNP
,	,
to	DT
$	$
145.21	DT
billion	CD
.	.
	
That	IN
rise	NN
came	VBD
on	IN
top	NN
of	IN
a	DT
0.7	CD
%	%
gain	NN
in	IN
August	NNP
,	,
and	CC
suggested	VBN
there	RB
is	VBZ
still	RB
healthy	JJ
consumer	NN
demand	NN
in	IN
the	DT
economy	NN
.	.
	
``	``
I	DT
think	VBP
the	DT
Friday	NNP
report	NN
,	,
combined	VBN
with	IN
the	DT
actions	NNS
of	IN
the	DT
Fed	NNP
,	,
weakened	VBN
the	DT
belief	NN
that	WDT
there	RB
was	VBD
going	VBG
to	DT
be	DT
an	DT
imminent	DT
easing	DT
of	IN
monetary	DT
policy	NN
,	,
''	''
said	VBN
Robert	NNP
Dederick	DT
,	,
chief	NN
economist	NN
at	IN
Northern	DT
Trust	NNP
Co.	DT
in	IN
Chicago	NNP
.	.
	
But	CC
economists	NNS
were	VBD
divided	VBN
over	IN
the	DT
extent	NN
of	IN
the	DT
inflation	NN
threat	NN
signaled	VBD
by	IN
the	DT
new	JJ
numbers	NNS
.	.
	
``	``
The	NNP
overall	JJ
0.9	CD
%	%
increase	NN
is	VBZ
serious	JJ
in	IN
itself	DT
,	,
but	CC
what	WP
is	VBZ
even	RB
worse	DT
is	VBZ
that	WDT
excluding	DT
food	NN
and	CC
energy	NN
,	,
the	DT
producer	NN
price	NN
index	NN
still	RB
increased	VBN
by	IN
0.7	CD
%	%
,	,
''	''
said	VBN
Gordon	DT
Richards	DT
,	,
an	DT
economist	NN
at	IN
the	DT
National	NNP
Association	NNP
of	IN
Manufacturers	NNS
.	.
	
But	CC
Sung	DT
Won	DT
Sohn	DT
,	,
chief	NN
economist	NN
at	IN
Norwest	DT
Corp.	DT
in	IN
Minneapolis	DT
,	,
blamed	DT
rising	VBG
energy	NN
prices	NNS
and	CC
the	DT
annual	JJ
autumn	DT
increase	NN
in	IN
car	NN
prices	NNS
for	IN
most	RBS
of	IN
the	DT
September	NNP
jump	NN
.	.
	
``	``
I	DT
would	MD
say	VBP
this	DT
is	VBZ
not	RB
bad	JJ
news	NN
;	;
this	DT
is	VBZ
a	DT
blip	DT
,	,
''	''
he	DT
said	VBN
.	.
	
``	``
The	NNP
core	NN
rate	NN
is	VBZ
not	RB
really	RB
out	IN
of	IN
line	NN
.	.
''	''
	
All	DT
year	NN
,	,
energy	NN
prices	NNS
have	VBP
skewed	DT
the	DT
producer	NN
price	NN
index	NN
,	,
which	DT
measures	NNS
changes	NNS
in	IN
the	DT
prices	NNS
producers	NNS
receive	DT
for	IN
goods	NNS
.	.
	
Inflation	DT
unquestionably	DT
has	VBZ
fallen	VBN
back	VB
from	IN
its	DT
torrid	DT
pace	NN
last	JJ
winter	NN
,	,
when	DT
a	DT
steep	JJ
run-up	DT
in	IN
world	NN
oil	DT
prices	NNS
sent	DT
the	DT
index	NN
surging	DT
at	IN
double-digit	DT
annual	JJ
rates	NNS
.	.
	
Energy	NNP
prices	NNS
then	RB
plummeted	VBD
through	IN
the	DT
summer	NN
,	,
causing	VBG
the	DT
index	NN
to	DT
decline	NN
for	IN
three	CD
consecutive	JJ
months	NNS
.	.
	
Overall	RB
,	,
the	DT
index	NN
has	VBZ
climbed	VBD
at	IN
a	DT
5.1	CD
%	%
compound	NN
annual	JJ
rate	NN
since	IN
the	DT
start	NN
of	IN
the	DT
year	NN
,	,
the	DT
Labor	NNP
Department	NNP
said	VBN
.	.
	
While	IN
far	JJ
more	RBR
restrained	JJ
than	IN
the	DT
pace	NN
at	IN
the	DT
beginning	NN
of	IN
the	DT
year	NN
,	,
that	WDT
is	VBZ
still	RB
a	DT
steeper	JJR
rise	NN
than	IN
the	DT
4.0	DT
%	%
increase	NN
for	IN
all	RB
of	IN
1988	CD
.	.
	
Moreover	RB
,	,
this	DT
year	NN
's	VBZ
good	JJ
inflation	NN
news	NN
may	MD
have	VBP
ended	VBD
last	JJ
month	NN
,	,
when	DT
energy	NN
prices	NNS
zoomed	DT
up	IN
6.5	CD
%	%
after	IN
plunging	DT
7.3	DT
%	%
in	IN
August	NNP
.	.
	
Some	DT
analysts	NNS
expect	VBP
oil	DT
prices	NNS
to	DT
remain	VBP
relatively	RB
stable	DT
in	IN
the	DT
months	NNS
ahead	RB
,	,
leaving	VBG
the	DT
future	NN
pace	NN
of	IN
inflation	NN
uncertain	JJ
.	.
	
Analysts	NNS
had	VBN
expected	VBN
that	WDT
the	DT
climb	DT
in	IN
oil	DT
prices	NNS
last	JJ
month	NN
would	MD
lead	NN
to	DT
a	DT
substantial	JJ
rise	NN
in	IN
the	DT
producer	NN
price	NN
index	NN
,	,
but	CC
the	DT
0.9	CD
%	%
climb	DT
was	VBD
higher	JJR
than	IN
most	RBS
anticipated	VBN
.	.
	
``	``
I	DT
think	VBP
the	DT
resurgence	DT
{	{
in	IN
inflation	NN
}	}
is	VBZ
going	VBG
to	DT
continue	DT
for	IN
a	DT
few	JJ
months	NNS
,	,
''	''
said	VBN
John	NNP
Mueller	DT
,	,
chief	NN
economist	NN
at	IN
Bell	DT
Mueller	DT
Cannon	DT
,	,
a	DT
Washington	NNP
economic	JJ
forecasting	DT
firm	NN
.	.
	
He	DT
predicted	DT
that	WDT
inflation	NN
will	MD
moderate	JJ
next	JJ
year	NN
,	,
saying	VBG
that	WDT
credit	NN
conditions	NNS
are	VBP
fairly	RB
tight	RB
world-wide	DT
.	.
	
But	CC
Dirk	DT
Van	DT
Dongen	DT
,	,
president	NN
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Wholesaler-Distributors	DT
,	,
said	VBN
that	WDT
last	JJ
month	NN
's	VBZ
rise	NN
``	``
is	VBZ
n't	RB
as	IN
bad	JJ
an	DT
omen	DT
''	''
as	IN
the	DT
0.9	CD
%	%
figure	NN
suggests	VBZ
.	.
	
``	``
If	IN
you	DT
examine	DT
the	DT
data	NNS
carefully	RB
,	,
the	DT
increase	NN
is	VBZ
concentrated	VBN
in	IN
energy	NN
and	CC
motor	DT
vehicle	NN
prices	NNS
,	,
rather	RB
than	IN
being	VBG
a	DT
broad-based	DT
advance	DT
in	IN
the	DT
prices	NNS
of	IN
consumer	NN
and	CC
industrial	JJ
goods	NNS
,	,
''	''
he	DT
explained	DT
.	.
	
Passenger	DT
car	NN
prices	NNS
jumped	VBD
3.8	CD
%	%
in	IN
September	NNP
,	,
after	IN
climbing	DT
0.5	CD
%	%
in	IN
August	NNP
and	CC
declining	VBG
in	IN
the	DT
late	JJ
spring	NN
and	CC
summer	NN
.	.
	
Many	JJ
analysts	NNS
said	VBN
the	DT
September	NNP
increase	NN
was	VBD
a	DT
one-time	JJ
event	NN
,	,
coming	VBG
as	IN
dealers	NNS
introduced	VBN
their	DT
1990	CD
models	NNS
.	.
	
Although	IN
all	RB
the	DT
price	NN
data	NNS
were	VBD
adjusted	VBN
for	IN
normal	JJ
seasonal	DT
fluctuations	DT
,	,
car	NN
prices	NNS
rose	VBD
beyond	DT
the	DT
customary	DT
autumn	DT
increase	NN
.	.
	
Prices	NNS
for	IN
capital	NN
equipment	NN
rose	VBD
a	DT
hefty	JJ
1.1	CD
%	%
in	IN
September	NNP
,	,
while	IN
prices	NNS
for	IN
home	RB
electronic	JJ
equipment	NN
fell	VBD
1.1	CD
%	%
.	.
	
Food	NN
prices	NNS
declined	VBD
0.6	DT
%	%
,	,
after	IN
climbing	DT
0.3	DT
%	%
in	IN
August	NNP
.	.
	
Meanwhile	RB
,	,
the	DT
retail	JJ
sales	NNS
report	NN
showed	VBD
that	WDT
car	NN
sales	NNS
rose	VBD
0.8	CD
%	%
in	IN
September	NNP
to	DT
$	$
32.82	DT
billion	CD
.	.
	
But	CC
at	IN
least	JJS
part	NN
of	IN
the	DT
increase	NN
could	MD
have	VBP
come	VBN
from	IN
higher	JJR
prices	NNS
,	,
analysts	NNS
said	VBN
.	.
	
Sales	NNS
at	IN
general	NN
merchandise	NN
stores	NNS
rose	VBD
1.7	CD
%	%
after	IN
declining	VBG
0.6	DT
%	%
in	IN
August	NNP
,	,
while	IN
sales	NNS
of	IN
building	NN
materials	DT
fell	VBD
1.8	CD
%	%
after	IN
rising	VBG
1.7	CD
%	%
.	.
	
Producer	DT
prices	NNS
for	IN
intermediate	DT
goods	NNS
grew	VBD
0.4	CD
%	%
in	IN
September	NNP
,	,
after	IN
dropping	VBG
for	IN
three	CD
consecutive	JJ
months	NNS
.	.
	
Prices	NNS
for	IN
crude	DT
goods	NNS
,	,
an	DT
array	NN
of	IN
raw	DT
materials	DT
,	,
jumped	VBD
1.1	CD
%	%
after	IN
declining	VBG
1.9	DT
%	%
in	IN
August	NNP
and	CC
edging	DT
up	IN
0.2	DT
%	%
in	IN
July	NNP
.	.
	
Here	DT
are	VBP
the	DT
Labor	NNP
Department	NNP
's	VBZ
producer	NN
price	NN
indexes	NNS
(	(
1982	CD
=	=
100	CD
)	)
for	IN
September	NNP
,	,
before	IN
seasonal	DT
adjustment	NN
,	,
and	CC
the	DT
percentage	NN
changes	NNS
from	IN
September	NNP
,	,
1988	CD
.	.
	
CityFed	DT
Financial	NNP
Corp.	DT
said	VBD
it	DT
expects	VBZ
to	DT
report	NN
a	DT
loss	NN
of	IN
at	IN
least	JJS
$	$
125	CD
million	CD
to	DT
$	$
150	CD
million	CD
for	IN
the	DT
third	JJ
quarter	NN
.	.
	
In	IN
the	DT
year-earlier	JJ
period	NN
,	,
CityFed	DT
had	VBN
net	JJ
income	NN
of	IN
$	$
485,000	DT
,	,
but	CC
no	RB
per-share	DT
earnings	NNS
.	.
	
CityFed	DT
's	VBZ
president	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
John	NNP
Atherton	DT
,	,
said	VBN
the	DT
loss	NN
stems	VBZ
from	IN
several	JJ
factors	DT
.	.
	
He	DT
said	VBN
nonperforming	DT
assets	NNS
rose	VBD
to	DT
slightly	RB
more	RBR
than	IN
$	$
700	DT
million	CD
from	IN
$	$
516	DT
million	CD
between	IN
June	NNP
and	CC
September	NNP
.	.
	
Approximately	DT
85	CD
%	%
of	IN
the	DT
total	JJ
consisted	DT
of	IN
nonperforming	DT
commercial	JJ
real	JJ
estate	NN
assets	NNS
.	.
	
Accordingly	DT
,	,
CityFed	DT
estimated	VBN
that	WDT
it	DT
will	MD
provide	VBP
between	IN
$	$
85	CD
million	CD
and	CC
$	$
110	DT
million	CD
for	IN
credit	NN
losses	NNS
in	IN
the	DT
third	JJ
quarter	NN
.	.
	
CityFed	DT
added	VBN
that	WDT
significant	JJ
additional	JJ
loan-loss	NN
provisions	NNS
may	MD
be	DT
required	VBN
by	IN
federal	JJ
regulators	NNS
as	IN
part	NN
of	IN
the	DT
current	NN
annual	JJ
examination	DT
of	IN
City	NNP
Federal	NNP
Savings	NNP
Bank	NNP
,	,
CityFed	DT
's	VBZ
primary	JJ
subsidiary	NN
,	,
based	VBN
in	IN
Somerset	DT
,	,
N.J	DT
.	.
	
City	NNP
Federal	NNP
operates	VBZ
105	DT
banking	NN
offices	NNS
in	IN
New	NNP
Jersey	DT
and	CC
Florida	DT
.	.
	
Mr.	DT
Atherton	DT
said	VBN
CityFed	DT
will	MD
also	RB
mark	DT
its	DT
portfolio	NN
of	IN
high-yield	JJ
corporate	JJ
bonds	NNS
to	DT
market	NN
as	IN
a	DT
result	NN
of	IN
federal	JJ
legislation	NN
requiring	VBG
that	WDT
savings	DT
institutions	NNS
divest	DT
themselves	DT
of	IN
such	JJ
bonds	NNS
.	.
	
That	IN
action	NN
,	,
CityFed	DT
said	VBN
,	,
will	MD
result	NN
in	IN
a	DT
charge	NN
against	IN
third-quarter	NN
results	NNS
of	IN
approximately	RB
$	$
30	CD
million	CD
.	.
	
CityFed	DT
also	RB
said	VBN
it	DT
expects	VBZ
to	DT
shed	DT
its	DT
remaining	VBG
mortgage	NN
loan	NN
origination	DT
operations	NNS
outside	JJ
its	DT
principal	NN
markets	NNS
in	IN
New	NNP
Jersey	DT
and	CC
Florida	DT
and	CC
,	,
as	IN
a	DT
result	NN
,	,
is	VBZ
taking	VBG
a	DT
charge	NN
for	IN
discontinued	VBN
operations	NNS
.	.
	
All	DT
these	DT
actions	NNS
,	,
Mr.	DT
Atherton	DT
said	VBN
,	,
will	MD
result	NN
in	IN
a	DT
loss	NN
of	IN
$	$
125	CD
million	CD
to	DT
$	$
150	CD
million	CD
for	IN
the	DT
third	JJ
quarter	NN
.	.
	
He	DT
added	VBN
,	,
however	RB
:	:
``	``
Depending	DT
on	IN
the	DT
resolution	DT
of	IN
certain	JJ
accounting	DT
issues	NNS
relating	DT
to	DT
mortgages	DT
servicing	DT
and	CC
the	DT
outcome	DT
of	IN
the	DT
annual	JJ
examination	DT
of	IN
City	NNP
Federal	NNP
currently	RB
in	IN
progress	DT
with	IN
respect	NN
to	DT
the	DT
appropriate	JJ
level	NN
of	IN
loan	NN
loss	NN
reserves	NNS
,	,
the	DT
total	JJ
loss	NN
for	IN
the	DT
quarter	NN
could	MD
significantly	RB
exceed	VBP
this	DT
range	NN
.	.
	
CenTrust	DT
Savings	NNP
Bank	NNP
said	VBN
federal	JJ
thrift	NN
regulators	NNS
ordered	VBD
it	DT
to	DT
suspend	DT
dividend	NN
payments	NNS
on	IN
its	DT
two	CD
classes	NNS
of	IN
preferred	DT
stock	NN
,	,
indicating	VBG
that	WDT
regulators	NNS
'	'
concerns	DT
about	IN
the	DT
troubled	VBN
institution	DT
have	VBP
heightened	VBN
.	.
	
In	IN
a	DT
statement	NN
,	,
Miami-based	DT
CenTrust	DT
said	VBN
the	DT
regulators	NNS
cited	VBD
the	DT
thrift	NN
's	VBZ
operating	VBG
losses	NNS
and	CC
``	``
apparent	DT
losses	NNS
''	''
in	IN
its	DT
junk-bond	NN
portfolio	NN
in	IN
ordering	VBG
the	DT
suspension	NN
of	IN
the	DT
dividends	NNS
.	.
	
Regulators	DT
also	RB
ordered	VBD
CenTrust	DT
to	DT
stop	DT
buying	NN
back	VB
the	DT
preferred	DT
stock	NN
.	.
	
David	NNP
L.	DT
Paul	NNP
,	,
chairman	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
criticized	VBN
the	DT
federal	JJ
Office	NN
of	IN
Thrift	DT
Supervision	DT
,	,
which	DT
issued	VBN
the	DT
directive	DT
,	,
saying	VBG
it	DT
was	VBD
``	``
inappropriate	DT
''	''
and	CC
based	VBN
on	IN
``	``
insufficient	DT
''	''
reasons	NNS
.	.
	
He	DT
said	VBN
the	DT
thrift	NN
will	MD
try	DT
to	DT
get	VBP
regulators	NNS
to	DT
reverse	NN
the	DT
decision	NN
.	.
	
The	NNP
suspension	NN
of	IN
a	DT
preferred	DT
stock	NN
dividend	NN
is	VBZ
a	DT
serious	JJ
step	DT
that	WDT
signals	DT
that	WDT
regulators	NNS
have	VBP
deep	JJ
concerns	DT
about	IN
an	DT
institution	DT
's	VBZ
health	NN
.	.
	
In	IN
March	NNP
,	,
regulators	NNS
labeled	DT
CenTrust	DT
a	DT
``	``
troubled	VBN
institution	DT
,	,
''	''
largely	RB
because	IN
of	IN
its	DT
big	JJ
junk-bond	NN
holdings	NNS
and	CC
its	DT
operating	VBG
losses	NNS
.	.
	
In	IN
the	DT
same	JJ
month	NN
,	,
the	DT
Office	NN
of	IN
Thrift	DT
Supervision	DT
ordered	VBD
the	DT
institution	DT
to	DT
stop	DT
paying	VBG
common	JJ
stock	NN
dividends	NNS
until	IN
its	DT
operations	NNS
were	VBD
on	IN
track	NN
.	.
	
For	IN
the	DT
nine	CD
months	NNS
ended	VBD
June	NNP
30	CD
,	,
CenTrust	DT
had	VBN
a	DT
net	JJ
loss	NN
of	IN
$	$
21.3	DT
million	CD
,	,
compared	VBN
with	IN
year-earlier	JJ
net	JJ
income	NN
of	IN
$	$
52.8	DT
million	CD
.	.
	
CenTrust	DT
,	,
which	DT
is	VBZ
Florida	DT
's	VBZ
largest	JJS
thrift	NN
,	,
holds	DT
one	CD
of	IN
the	DT
largest	JJS
junk-bond	NN
portfolios	DT
of	IN
any	DT
thrift	NN
in	IN
the	DT
nation	NN
.	.
	
Since	IN
April	NNP
,	,
it	DT
has	VBZ
pared	DT
its	DT
high-yield	JJ
bond	NN
holdings	NNS
to	DT
about	IN
$	$
890	DT
million	CD
from	IN
$	$
1.35	DT
billion	CD
.	.
	
Mr.	DT
Paul	NNP
said	VBN
only	RB
about	IN
$	$
150	CD
million	CD
of	IN
the	DT
current	NN
holdings	NNS
are	VBP
tradeable	DT
securities	NNS
registered	DT
with	IN
the	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
.	.
	
The	NNP
remainder	DT
,	,
he	DT
said	VBN
,	,
are	VBP
commercial	JJ
loan	NN
participations	DT
,	,
or	CC
private	JJ
placements	DT
,	,
that	WDT
are	VBP
n't	RB
filed	VBN
with	IN
the	DT
SEC	NNP
and	CC
do	VBP
n't	RB
have	VBP
a	DT
ready	JJ
market	NN
.	.
	
CenTrust	DT
and	CC
regulators	NNS
have	VBP
been	VBN
in	IN
a	DT
dispute	NN
over	IN
market	NN
valuations	DT
for	IN
the	DT
junk	NN
bonds	NNS
.	.
	
The	NNP
Office	NN
of	IN
Thrift	DT
Supervision	DT
has	VBZ
been	VBN
hounding	DT
CenTrust	DT
to	DT
provide	VBP
current	NN
market	NN
values	NNS
for	IN
its	DT
holdings	NNS
,	,
but	CC
CenTrust	DT
has	VBZ
said	VBN
it	DT
ca	MD
n't	RB
easily	RB
obtain	DT
such	JJ
values	NNS
because	IN
of	IN
the	DT
relative	JJ
illiquidity	DT
of	IN
the	DT
bonds	NNS
and	CC
lack	NN
of	IN
a	DT
ready	JJ
market	NN
.	.
	
Regulators	DT
have	VBP
become	VBN
increasingly	RB
antsy	DT
about	IN
CenTrust	DT
's	VBZ
and	CC
other	JJ
thrifts	NNS
'	'
junk-bond	NN
holdings	NNS
in	IN
light	JJ
of	IN
the	DT
recent	JJ
federal	JJ
thrift	NN
bailout	NN
legislation	NN
and	CC
the	DT
recent	JJ
deep	JJ
decline	NN
in	IN
the	DT
junk-bond	NN
market	NN
.	.
	
The	NNP
legislation	NN
requires	VBZ
thrifts	NNS
to	DT
divest	DT
themselves	DT
of	IN
junk	NN
bonds	NNS
in	IN
the	DT
new	JJ
,	,
somber	DT
regulatory	JJ
climate	NN
.	.
	
In	IN
American	JJ
Stock	NNP
Exchange	NNP
composite	JJ
trading	NN
Friday	NNP
,	,
CenTrust	DT
common	JJ
shares	NNS
closed	VBN
at	IN
$	$
3	CD
,	,
down	IN
12.5	DT
cents	NNS
.	.
	
In	IN
a	DT
statement	NN
Friday	NNP
,	,
Mr.	DT
Paul	NNP
challenged	DT
the	DT
regulators	NNS
'	'
decision	NN
,	,
saying	VBG
the	DT
thrift	NN
's	VBZ
operating	VBG
losses	NNS
and	CC
``	``
apparent	DT
''	''
junk-bond	NN
losses	NNS
``	``
have	VBP
been	VBN
substantially	RB
offset	DT
by	IN
gains	NNS
in	IN
other	JJ
activities	DT
of	IN
the	DT
bank	NN
.	.
''	''
	
He	DT
also	RB
said	VBN
substantial	JJ
reserves	NNS
have	VBP
been	VBN
set	VBN
aside	RB
for	IN
possible	JJ
losses	NNS
from	IN
the	DT
junk	NN
bonds	NNS
.	.
	
In	IN
the	DT
third	JJ
quarter	NN
,	,
for	IN
instance	NN
,	,
CenTrust	DT
added	VBN
$	$
22.5	DT
million	CD
to	DT
its	DT
general	NN
reserves	NNS
.	.
	
Mr.	DT
Paul	NNP
said	VBN
the	DT
regulators	NNS
should	MD
instead	RB
move	NN
ahead	RB
with	IN
approving	DT
CenTrust	DT
's	VBZ
request	NN
to	DT
sell	NN
63	CD
of	IN
its	DT
71	DT
branches	DT
to	DT
Great	NNP
Western	JJ
Bank	NNP
,	,
a	DT
unit	NN
of	IN
Great	NNP
Western	JJ
Financial	NNP
Corp.	DT
based	VBN
in	IN
Beverly	NNP
Hills	NNPS
,	,
Calif	NNP
.	.
	
The	NNP
branch	DT
sale	NN
is	VBZ
the	DT
centerpiece	DT
of	IN
CenTrust	DT
's	VBZ
strategy	NN
to	DT
transform	DT
itself	DT
into	IN
a	DT
traditional	JJ
S&L	DT
from	IN
a	DT
high-flying	JJ
institution	DT
that	WDT
relied	DT
heavily	RB
on	IN
securities	NNS
trading	NN
for	IN
profits	NNS
,	,
according	VBG
to	DT
Mr.	DT
Paul	NNP
.	.
	
Most	RBS
analysts	NNS
and	CC
thrift	NN
executives	NNS
had	VBN
expected	VBN
a	DT
decision	NN
on	IN
the	DT
proposed	VBN
transaction	NN
,	,
which	DT
was	VBD
announced	VBN
in	IN
July	NNP
,	,
long	JJ
before	IN
now	RB
.	.
	
Many	JJ
interpret	DT
the	DT
delay	DT
as	IN
an	DT
indication	NN
that	WDT
regulators	NNS
are	VBP
skeptical	JJ
about	IN
the	DT
proposal	NN
.	.
	
Branches	DT
and	CC
deposits	DT
can	MD
be	DT
sold	VBN
at	IN
a	DT
premium	NN
in	IN
the	DT
event	NN
federal	JJ
regulators	NNS
take	VBP
over	IN
an	DT
institution	DT
.	.
	
CenTrust	DT
,	,
however	RB
,	,
touts	DT
the	DT
branch	DT
sale	NN
,	,
saying	VBG
it	DT
would	MD
bring	DT
in	IN
$	$
150	CD
million	CD
and	CC
reduce	DT
the	DT
thrift	NN
's	VBZ
assets	NNS
to	DT
$	$
6.7	DT
billion	CD
from	IN
$	$
9	CD
billion	CD
.	.
	
It	PRP
said	VBN
the	DT
sale	NN
would	MD
give	VBP
it	DT
positive	DT
tangible	DT
capital	NN
of	IN
$	$
82	DT
million	CD
,	,
or	CC
about	IN
1.2	CD
%	%
of	IN
assets	NNS
,	,
from	IN
a	DT
negative	JJ
$	$
33	DT
million	CD
as	IN
of	IN
Sept.	DT
30	CD
,	,
thus	DT
bringing	VBG
CenTrust	DT
close	NN
to	DT
regulatory	JJ
standards	NNS
.	.
	
CenTrust	DT
said	VBN
the	DT
branch	DT
sale	NN
would	MD
also	RB
reduce	DT
the	DT
company	NN
's	VBZ
large	JJ
amount	NN
of	IN
good	JJ
will	MD
by	IN
about	IN
$	$
180	DT
million	CD
.	.
	
Critics	DT
,	,
however	RB
,	,
say	VBP
the	DT
branch	DT
sale	NN
will	MD
make	VBP
CenTrust	DT
more	RBR
dependent	JJ
than	IN
ever	RB
on	IN
brokered	DT
deposits	DT
and	CC
junk	NN
bonds	NNS
.	.
	
Mr.	DT
Paul	NNP
counters	NNS
that	WDT
he	DT
intends	DT
to	DT
further	JJ
pare	DT
the	DT
size	NN
of	IN
CenTrust	DT
by	IN
not	RB
renewing	VBG
more	RBR
than	IN
$	$
1	CD
billion	CD
of	IN
brokered	DT
certificates	DT
of	IN
deposit	DT
when	DT
they	DT
come	VBN
due	JJ
.	.
	
The	NNP
thrift	NN
is	VBZ
also	RB
working	VBG
to	DT
unload	DT
its	DT
junk-bond	NN
portfolio	NN
by	IN
continuing	VBG
to	DT
sell	NN
off	IN
the	DT
bonds	NNS
,	,
and	CC
it	DT
plans	NNS
to	DT
eventually	RB
place	NN
some	DT
of	IN
them	DT
in	IN
a	DT
separate	JJ
affiliate	DT
,	,
as	IN
required	VBN
under	IN
the	DT
new	JJ
thrift	NN
law	NN
.	.
	
On	IN
a	DT
recent	JJ
Saturday	DT
night	NN
,	,
in	IN
the	DT
midst	NN
of	IN
West	NNP
Germany	NNP
's	VBZ
most	RBS
popular	JJ
prime-time	JJ
show	NN
,	,
a	DT
contestant	DT
bet	NN
the	DT
host	NN
that	WDT
she	DT
could	MD
name	NN
any	DT
of	IN
100	CD
different	JJ
cheeses	DT
after	IN
just	RB
one	CD
nibble	DT
,	,
while	IN
blindfolded	DT
.	.
	
The	NNP
woman	NN
won	VBD
the	DT
bet	NN
.	.
	
But	CC
perhaps	RB
even	RB
more	RBR
remarkable	DT
,	,
the	DT
three-hour-show	DT
,	,
``	``
Wetten	DT
Dass	DT
''	''
(	(
Make	DT
a	DT
Bet	DT
)	)
,	,
regularly	RB
wins	VBZ
the	DT
top	NN
slot	NN
in	IN
the	DT
country	NN
's	VBZ
TV	NN
ratings	DT
,	,
sometimes	DT
drawing	DT
as	IN
many	JJ
as	IN
50	CD
%	%
of	IN
West	NNP
German	DT
households	DT
.	.
	
As	IN
the	DT
1992	CD
economic	JJ
integration	NN
approaches	DT
,	,
Europe	NNP
's	VBZ
cultural	DT
curators	DT
have	VBP
taken	VBN
to	DT
the	DT
ramparts	DT
against	IN
American	JJ
``	``
cultural	DT
imperialism	NN
,	,
''	''
threatening	VBG
to	DT
impose	DT
quotas	NNS
against	IN
such	JJ
pop	DT
invaders	DT
as	IN
``	``
Dallas	NNP
,	,
''	''
``	``
Miami	NNP
Vice	NNP
''	''
and	CC
``	``
L.A.	DT
Law	DT
.	.
''	''
	
But	CC
much	JJ
of	IN
what	WP
the	DT
Europeans	DT
want	VBP
to	DT
protect	DT
seems	VBZ
every	DT
bit	NN
as	IN
cheesy	DT
as	IN
what	WP
they	DT
are	VBP
trying	VBG
to	DT
keep	VBP
out	IN
.	.
	
The	NNP
most	RBS
militant	JJ
opposition	NN
to	DT
American	JJ
TV	NN
imports	NNS
has	VBZ
come	VBN
from	IN
French	JJ
television	NN
and	CC
movie	NN
producers	NNS
,	,
who	WP
have	VBP
demanded	VBD
quotas	NNS
ensuring	DT
that	WDT
a	DT
full	JJ
60	CD
%	%
of	IN
Europe	NNP
's	VBZ
TV	NN
shows	VBZ
be	DT
produced	VBN
in	IN
Europe	NNP
.	.
	
So	IN
far	JJ
,	,
the	DT
French	JJ
have	VBP
failed	VBN
to	DT
win	DT
enough	JJ
broad-based	DT
support	NN
to	DT
prevail	DT
.	.
	
A	DT
glance	DT
through	IN
the	DT
television	NN
listings	DT
and	CC
a	DT
few	JJ
twists	DT
of	IN
the	DT
European	NNP
television	NN
dial	DT
suggest	VBP
one	CD
reason	NN
why	DT
.	.
	
While	IN
there	RB
are	VBP
some	DT
popular	JJ
action	NN
and	CC
drama	DT
series	NN
,	,
few	JJ
boast	NN
the	DT
high	JJ
culture	DT
and	CC
classy	DT
production	NN
values	NNS
one	CD
might	MD
expect	VBP
.	.
	
More	JJR
European	NNP
air	NN
time	NN
is	VBZ
filled	DT
with	IN
low-budget	DT
game	NN
shows	VBZ
,	,
variety	NN
hours	NNS
,	,
movies	NNS
and	CC
talk	NN
shows	VBZ
,	,
many	JJ
of	IN
which	DT
are	VBP
authorized	VBN
knock-offs	DT
of	IN
their	DT
American	JJ
counterparts	NNS
.	.
	
One	CD
of	IN
France	NNP
's	VBZ
most	RBS
popular	JJ
Saturday	DT
night	NN
programs	NNS
features	DT
semi-celebrities	DT
seeking	VBG
out	IN
their	DT
grammar-school	DT
classmates	DT
for	IN
on-air	DT
reunions	DT
.	.
	
A	DT
Flemish	DT
game	NN
show	NN
has	VBZ
as	IN
its	DT
host	NN
a	DT
Belgian	DT
pretending	DT
to	DT
be	DT
Italian	DT
.	.
	
One	CD
of	IN
Italy	NNP
's	VBZ
favorite	DT
shows	VBZ
,	,
``	``
Fantastico	DT
,	,
''	''
a	DT
tepid	DT
variety	NN
show	NN
,	,
is	VBZ
so	IN
popular	JJ
that	WDT
viewers	NNS
clamored	DT
to	DT
buy	DT
a	DT
chocolate	DT
product	NN
,	,
``	``
Cacao	DT
Fantastico	DT
,	,
''	''
whose	DT
praises	DT
were	VBD
sung	DT
each	DT
week	NN
by	IN
dancing	DT
showgirls	DT
--	--
even	RB
though	RB
the	DT
product	NN
did	VBD
n't	RB
exist	DT
.	.
	
Topping	DT
the	DT
cheese	DT
stunt	DT
,	,
on	IN
another	DT
typical	DT
evening	NN
of	IN
fun	DT
on	IN
``	``
Wetten	DT
Dass	DT
,	,
''	''
a	DT
contestant	DT
won	VBD
a	DT
bet	NN
with	IN
the	DT
show	NN
's	VBZ
host	NN
,	,
Thomas	DT
Gottschalk	DT
,	,
that	WDT
he	DT
could	MD
identify	DT
300	CD
German	DT
dialects	NNS
over	IN
the	DT
telephone	NN
.	.
	
A	DT
celebrity	DT
guest	DT
,	,
U.S.	DT
Ambassador	DT
to	DT
West	NNP
Germany	NNP
Richard	NNP
Burt	NNP
,	,
also	RB
won	VBD
a	DT
bet	NN
that	WDT
someone	DT
could	MD
pile	DT
up	IN
$	$
150	CD
worth	JJ
of	IN
quarters	DT
on	IN
a	DT
slanted	DT
coin	DT
.	.
	
Mr.	DT
Burt	NNP
nonetheless	DT
paid	VBN
the	DT
penalty	DT
as	IN
if	IN
he	DT
had	VBN
lost	VBN
,	,
agreeing	DT
to	DT
spend	VBP
a	DT
day	NN
with	IN
West	NNP
German	DT
Foreign	NNP
Minister	NNP
Hans-Dietrich	DT
Genscher	DT
frying	DT
and	CC
selling	NN
their	DT
combined	VBN
weight	NN
in	IN
potato	DT
pancakes	DT
.	.
	
If	IN
this	DT
seems	VBZ
like	JJ
pretty	RB
weak	JJ
stuff	NN
around	IN
which	DT
to	DT
raise	DT
the	DT
protectionist	DT
barriers	NNS
,	,
it	DT
may	MD
be	DT
because	IN
these	DT
shows	VBZ
need	VB
all	RB
the	DT
protection	NN
they	DT
can	MD
get	VBP
.	.
	
European	NNP
programs	NNS
usually	RB
target	NN
only	RB
their	DT
own	JJ
local	JJ
audience	DT
,	,
and	CC
often	RB
only	RB
a	DT
small	JJ
portion	NN
of	IN
that	WDT
.	.
	
Mega-hits	DT
in	IN
Germany	NNP
or	CC
Italy	NNP
rarely	DT
make	VBP
it	DT
even	RB
to	DT
France	NNP
or	CC
Great	NNP
Britain	NNP
,	,
and	CC
almost	RB
never	RB
show	NN
up	IN
on	IN
U.S.	DT
screens	DT
.	.
	
Attempts	DT
to	DT
produce	DT
``	``
pan-European	DT
''	''
programs	NNS
have	VBP
generally	RB
resulted	VBN
in	IN
disappointment	DT
.	.
	
One	CD
annual	JJ
co-production	DT
,	,
the	DT
three-hour-long	DT
``	``
Eurovision	DT
Song	DT
Contest	DT
,	,
''	''
featuring	VBG
soft-rock	DT
songs	DT
from	IN
each	DT
of	IN
20	CD
European	NNP
countries	NNS
,	,
has	VBZ
been	VBN
described	VBN
as	IN
the	DT
world	NN
's	VBZ
most	RBS
boring	JJ
TV	NN
show	NN
.	.
	
Another	DT
,	,
``	``
Jeux	DT
Sans	DT
Frontieres	DT
,	,
''	''
where	DT
villagers	DT
from	IN
assorted	JJ
European	NNP
countries	NNS
make	VBP
fools	DT
of	IN
themselves	DT
performing	VBG
pointless	DT
tasks	NNS
,	,
is	VBZ
a	DT
hit	VBD
in	IN
France	NNP
.	.
	
A	DT
U.S.-made	DT
imitation	DT
under	IN
the	DT
title	NN
``	``
Almost	DT
Anything	DT
Goes	DT
''	''
flopped	DT
fast	DT
.	.
	
For	IN
the	DT
most	RBS
part	NN
,	,
what	WP
's	VBZ
made	VBN
here	RB
stays	VBZ
here	RB
,	,
and	CC
for	IN
good	JJ
reason	NN
.	.
	
The	NNP
cream	DT
of	IN
the	DT
British	JJ
crop	DT
,	,
the	DT
literary	DT
dramas	DT
that	WDT
are	VBP
shown	VBN
on	IN
U.S.	DT
public	JJ
television	NN
as	IN
``	``
Masterpiece	DT
Theater	DT
,	,
''	''
make	VBP
up	IN
a	DT
relatively	RB
small	JJ
part	NN
of	IN
British	JJ
air	NN
time	NN
.	.
	
Most	RBS
British	JJ
programming	NN
is	VBZ
more	RBR
of	IN
an	DT
acquired	VBN
taste	DT
.	.
	
There	DT
is	VBZ
,	,
for	IN
instance	NN
,	,
``	``
One	CD
Man	DT
and	CC
His	DT
Dog	DT
,	,
''	''
a	DT
herding	DT
contest	DT
among	IN
sheep	DT
dogs	DT
.	.
	
Also	RB
riveting	DT
to	DT
the	DT
British	JJ
are	VBP
hours	NNS
of	IN
dart-throwing	DT
championships	DT
,	,
even	RB
more	RBR
hours	NNS
of	IN
lawn	DT
bowling	DT
contests	DT
and	CC
still	RB
more	RBR
hours	NNS
of	IN
snooker	DT
marathons	DT
.	.
	
European	NNP
drama	DT
has	VBZ
had	VBN
better	JJR
,	,
though	RB
still	RB
mixed	VBN
,	,
fortunes	NNS
.	.
	
The	NNP
most	RBS
popular	JJ
such	JJ
shows	VBZ
focus	NN
on	IN
narrow	DT
national	JJ
concerns	DT
.	.
	
A	DT
French	JJ
knock-off	DT
of	IN
``	``
Dallas	NNP
,	,
''	''
called	VBN
``	``
Chateauvallon	DT
''	''
and	CC
set	VBN
in	IN
a	DT
French	JJ
vineyard	DT
,	,
had	VBN
a	DT
good	JJ
run	VBN
in	IN
France	NNP
,	,
which	DT
ended	VBD
after	IN
the	DT
female	DT
lead	NN
was	VBD
injured	VBN
in	IN
a	DT
real-life	DT
auto	NN
accident	DT
.	.
	
``	``
Schwarzwaldklinik	DT
,	,
''	''
(	(
Black	NNP
Forest	DT
Clinic	DT
)	)
,	,
a	DT
kind	NN
of	IN
German	DT
``	``
St	DT
.	.
Elsewhere	DT
''	''
set	VBN
in	IN
a	DT
health	NN
spa	DT
,	,
is	VBZ
popular	JJ
in	IN
Germany	NNP
,	,
and	CC
has	VBZ
spread	VBD
into	IN
France	NNP
.	.
	
Italy	NNP
's	VBZ
most	RBS
popular	JJ
series	NN
is	VBZ
a	DT
drama	DT
called	VBN
``	``
La	DT
Piovra	DT
,	,
''	''
or	CC
``	``
The	NNP
Octopus	DT
,	,
''	''
which	DT
chronicles	DT
the	DT
fight	NN
of	IN
an	DT
idealistic	JJ
young	JJ
investigator	DT
in	IN
Palermo	DT
against	IN
the	DT
Mafia	DT
.	.
	
It	PRP
was	VBD
front-page	DT
news	NN
in	IN
Italy	NNP
earlier	JJR
this	DT
year	NN
when	DT
the	DT
fictional	JJ
inspector	DT
was	VBD
gunned	DT
down	IN
in	IN
the	DT
series	NN
.	.
	
Spain	NNP
's	VBZ
most	RBS
popular	JJ
mini-series	DT
this	DT
year	NN
was	VBD
``	``
Juncal	DT
,	,
''	''
the	DT
story	NN
of	IN
an	DT
aging	VBG
bullfighter	DT
.	.
	
``	``
The	NNP
trend	NN
is	VBZ
pretty	RB
well	RB
established	VBN
now	RB
that	WDT
local	JJ
programs	NNS
are	VBP
the	DT
most	RBS
popular	JJ
,	,
with	IN
American	JJ
programs	NNS
second	NN
,	,
''	''
says	VBZ
Brian	DT
Wenham	DT
,	,
a	DT
former	JJ
director	NN
of	IN
programs	NNS
for	IN
the	DT
British	JJ
Broadcasting	NNP
Corp	NNP
.	.
	
``	``
Given	VBN
a	DT
choice	NN
,	,
everybody	NN
will	MD
watch	DT
a	DT
home-produced	DT
show	NN
.	.
''	''
	
But	CC
frequently	RB
there	RB
is	VBZ
n't	RB
much	JJ
choice	NN
.	.
	
Thus	RB
,	,
Europe	NNP
has	VBZ
begun	VBN
the	DT
recent	JJ
crusade	DT
to	DT
produce	DT
more	RBR
worthy	JJ
shows	VBZ
of	IN
its	DT
own	JJ
,	,
programs	NNS
with	IN
broader	JJR
appeal	NN
.	.
	
``	``
We	DT
've	VBP
basically	DT
got	VBN
to	DT
start	NN
from	IN
scratch	DT
,	,
to	DT
train	NN
writers	DT
and	CC
producers	NNS
to	DT
make	VBP
shows	VBZ
that	WDT
other	JJ
people	NNS
will	MD
want	VBP
to	DT
see	VBP
,	,
''	''
concedes	DT
Colin	DT
Young	NNP
,	,
head	NN
of	IN
Britain	NNP
's	VBZ
National	NNP
Film	DT
Theatre	DT
School	NNP
.	.
	
While	IN
some	DT
in	IN
the	DT
U.S.	DT
contend	DT
that	WDT
advertising	NN
is	VBZ
the	DT
bane	DT
of	IN
television	NN
,	,
here	RB
many	JJ
believe	VBP
that	WDT
its	DT
absence	DT
is	VBZ
to	DT
blame	NN
for	IN
the	DT
European	NNP
TV	NN
industry	NN
's	VBZ
sluggish	DT
development	NN
.	.
	
Until	DT
recently	RB
,	,
national	JJ
governments	NNS
in	IN
Europe	NNP
controlled	VBN
most	RBS
of	IN
the	DT
air	NN
time	NN
and	CC
allowed	VBN
little	JJ
or	CC
no	RB
advertising	NN
.	.
	
Since	IN
production	NN
costs	NNS
were	VBD
guaranteed	DT
,	,
it	DT
did	VBD
n't	RB
matter	NN
that	WDT
a	DT
program	NN
could	MD
n't	RB
be	DT
sold	VBN
abroad	RB
or	CC
put	VBN
into	IN
syndication	NN
,	,
as	IN
most	RBS
American	JJ
programs	NNS
are	VBP
.	.
	
But	CC
not	RB
much	JJ
money	NN
was	VBD
spent	VBN
on	IN
the	DT
shows	VBZ
,	,
either	RB
,	,
a	DT
situation	DT
that	WDT
encouraged	VBN
cheap-to-make	DT
talk	NN
and	CC
game	NN
shows	VBZ
,	,
while	IN
discouraging	DT
expensive-to-produce	DT
dramas	DT
.	.
	
Now	RB
,	,
however	RB
,	,
commercial	JJ
channels	DT
are	VBP
coming	VBG
to	DT
most	RBS
European	NNP
countries	NNS
,	,
and	CC
at	IN
the	DT
same	JJ
time	NN
,	,
satellite	DT
and	CC
cable	DT
technology	NN
is	VBZ
spreading	DT
rapidly	DT
.	.
	
Just	RB
last	JJ
week	NN
,	,
Greece	NNP
authorized	VBN
two	CD
commercial	JJ
channels	DT
for	IN
the	DT
first	JJ
time	NN
;	;
Spain	NNP
earlier	JJR
began	VBD
to	DT
allow	DT
commercial	JJ
television	NN
alongside	DT
its	DT
state	NN
channels	DT
.	.
	
The	NNP
result	NN
is	VBZ
a	DT
new	JJ
and	CC
huge	JJ
appetite	DT
for	IN
programming	NN
.	.
	
But	CC
perhaps	RB
to	DT
the	DT
consternation	DT
of	IN
those	DT
calling	VBG
for	IN
quotas	NNS
,	,
most	RBS
of	IN
this	DT
void	DT
is	VBZ
likely	JJ
to	DT
be	DT
filled	DT
with	IN
the	DT
cheapest	DT
and	CC
most	RBS
plentiful	DT
programming	NN
now	RB
available	JJ
--	--
reruns	NNS
--	--
usually	RB
of	IN
shows	VBZ
made	VBN
in	IN
the	DT
U.S.	DT
.	.
	
Sky	DT
Channel	DT
,	,
a	DT
British-based	DT
venture	NN
of	IN
Australian-American	DT
press	NN
tycoon	DT
Rupert	NNP
Murdoch	NNP
,	,
offers	NNS
what	WP
must	MD
be	DT
a	DT
baffling	DT
cultural	DT
mix	NN
to	DT
most	RBS
of	IN
its	DT
audience	DT
.	.
	
The	NNP
financially	RB
struggling	DT
station	NN
offers	NNS
programs	NNS
obviously	DT
made	VBN
available	JJ
cheaply	RB
from	IN
its	DT
boss	DT
's	VBZ
other	JJ
ventures	NNS
.	.
	
In	IN
a	DT
Madrid	DT
hotel	NN
room	NN
recently	RB
,	,
a	DT
viewer	DT
caught	VBN
the	DT
end	NN
of	IN
a	DT
badly	RB
acted	VBD
series	NN
about	IN
a	DT
fishing	DT
boat	DT
on	IN
Australia	NNP
's	VBZ
Great	NNP
Barrier	DT
Reef	DT
,	,
only	RB
to	DT
be	DT
urged	VBD
by	IN
the	DT
British	JJ
announcer	DT
to	DT
``	``
stay	DT
tuned	DT
for	IN
the	DT
further	JJ
adventures	DT
of	IN
Skippy	DT
the	DT
Kangaroo	DT
.	.
''	''
	
Lisa	NNP
Grishaw-Mueller	DT
in	IN
Bonn	DT
,	,
Laura	DT
Colby	DT
in	IN
Milan	DT
,	,
Tim	DT
Carrington	DT
in	IN
London	NNP
and	CC
Carlta	DT
Vitzhum	DT
in	IN
Madrid	DT
contributed	VBN
to	DT
this	DT
article	NN
.	.
	
British	JJ
Aerospace	NNP
PLC	NNP
and	CC
France	NNP
's	VBZ
Thomson-CSF	NNP
S.A.	DT
said	VBD
they	DT
are	VBP
nearing	VBG
an	DT
agreement	NN
to	DT
merge	DT
their	DT
guided-missile	JJ
divisions	NNS
,	,
greatly	DT
expanding	VBG
collaboration	DT
between	IN
the	DT
two	CD
defense	NN
contractors	DT
.	.
	
The	NNP
50-50	DT
joint	JJ
venture	NN
,	,
which	DT
may	MD
be	DT
dubbed	DT
Eurodynamics	DT
,	,
would	MD
have	VBP
combined	VBN
annual	JJ
sales	NNS
of	IN
at	IN
least	JJS
#	#
1.4	CD
billion	CD
(	(
$	$
2.17	DT
billion	CD
)	)
and	CC
would	MD
be	DT
among	IN
the	DT
world	NN
's	VBZ
largest	JJS
missile	DT
makers	NNS
.	.
	
After	IN
two	CD
years	NNS
of	IN
talks	NNS
,	,
plans	NNS
for	IN
the	DT
venture	NN
are	VBP
sufficiently	RB
advanced	DT
for	IN
the	DT
companies	NNS
to	DT
seek	VBP
French	JJ
and	CC
British	JJ
government	NN
clearance	DT
.	.
	
The	NNP
companies	NNS
hope	VB
for	IN
a	DT
final	JJ
agreement	NN
by	IN
year-end	DT
.	.
	
The	NNP
venture	NN
would	MD
strengthen	DT
the	DT
rapidly	DT
growing	VBG
ties	NNS
between	IN
the	DT
two	CD
companies	NNS
,	,
and	CC
help	NN
make	VBP
them	DT
a	DT
leading	VBG
force	NN
in	IN
European	NNP
defense	NN
contracting	DT
.	.
	
In	IN
recent	JJ
months	NNS
,	,
a	DT
string	DT
of	IN
cross-border	JJ
mergers	NNS
and	CC
joint	JJ
ventures	NNS
have	VBP
reshaped	VBD
the	DT
once-balkanized	DT
world	NN
of	IN
European	NNP
arms	NNS
manufacture	DT
.	.
	
Already	DT
,	,
British	JJ
Aerospace	NNP
and	CC
French	JJ
government-controlled	DT
Thomson-CSF	NNP
collaborate	DT
on	IN
a	DT
British	JJ
missile	DT
contract	NN
and	CC
on	IN
an	DT
air-traffic	DT
control	NN
radar	DT
system	NN
.	.
	
Just	RB
last	JJ
week	NN
they	DT
announced	VBN
they	DT
may	MD
make	VBP
a	DT
joint	JJ
bid	NN
to	DT
buy	DT
Ferranti	DT
International	NNP
Signal	DT
PLC	NNP
,	,
a	DT
smaller	JJR
British	JJ
defense	NN
contractor	DT
rocked	DT
by	IN
alleged	VBN
accounting	DT
fraud	NN
at	IN
a	DT
U.S.	DT
unit	NN
.	.
	
The	NNP
sudden	DT
romance	DT
of	IN
British	JJ
Aerospace	NNP
and	CC
Thomson-CSF	NNP
--	--
traditionally	DT
bitter	JJ
competitors	DT
for	IN
Middle	DT
East	NNP
and	CC
Third	DT
World	NNP
weapons	DT
contracts	NNS
--	--
is	VBZ
stirring	DT
controversy	DT
in	IN
Western	JJ
Europe	NNP
's	VBZ
defense	NN
industry	NN
.	.
	
Most	RBS
threatened	VBD
by	IN
closer	DT
British	JJ
Aerospace-Thomson	DT
ties	NNS
would	MD
be	DT
their	DT
respective	DT
national	JJ
rivals	NNS
,	,
including	VBG
Matra	DT
S.A.	DT
in	IN
France	NNP
and	CC
Britain	NNP
's	VBZ
General	NNP
Electric	NNP
Co.	DT
PLC	NNP
.	.
	
But	CC
neither	CC
Matra	DT
nor	CC
GEC	DT
--	--
unrelated	DT
to	DT
Stamford	DT
,	,
Conn.-based	DT
General	NNP
Electric	NNP
Co.	DT
--	--
are	VBP
sitting	VBG
quietly	DT
by	IN
as	IN
their	DT
competitors	DT
join	DT
forces	DT
.	.
	
Yesterday	DT
,	,
a	DT
source	NN
close	NN
to	DT
GEC	DT
confirmed	DT
that	WDT
his	DT
company	NN
may	MD
join	DT
the	DT
Ferranti	DT
fight	NN
,	,
as	IN
part	NN
of	IN
a	DT
possible	JJ
consortium	DT
that	WDT
would	MD
bid	NN
against	IN
British	JJ
Aerospace	NNP
and	CC
Thomson-CSF	NNP
.	.
	
Companies	NNPS
with	IN
which	DT
GEC	DT
has	VBZ
had	VBN
talks	NNS
about	IN
a	DT
possible	JJ
joint	JJ
Ferranti	DT
bid	NN
include	VBP
Matra	DT
,	,
Britain	NNP
's	VBZ
Dowty	DT
Group	NNP
PLC	NNP
,	,
West	NNP
Germany	NNP
's	VBZ
Daimler-Benz	DT
AG	NNP
,	,
and	CC
France	NNP
's	VBZ
Dassault	NNP
group	NN
.	.
	
But	CC
it	DT
may	MD
be	DT
weeks	NNS
before	IN
GEC	DT
and	CC
its	DT
potential	JJ
partners	DT
decide	DT
whether	IN
to	DT
bid	NN
,	,
the	DT
source	NN
indicated	VBN
.	.
	
GEC	DT
plans	NNS
first	JJ
to	DT
study	NN
Ferranti	DT
's	VBZ
financial	JJ
accounts	NNS
,	,
which	DT
auditors	NNS
recently	RB
said	VBN
included	VBN
#	#
215	DT
million	CD
in	IN
fictitious	DT
contracts	NNS
at	IN
a	DT
U.S.	DT
unit	NN
,	,
International	NNP
Signal	DT
&	&
Control	DT
Group	NNP
,	,
with	IN
which	DT
Ferranti	DT
merged	DT
last	JJ
year	NN
.	.
	
Also	RB
,	,
any	DT
GEC	DT
bid	NN
might	MD
be	DT
blocked	VBN
by	IN
British	JJ
antitrust	JJ
regulators	NNS
;	;
Ferranti	DT
is	VBZ
GEC	DT
's	VBZ
main	JJ
competitor	NN
on	IN
several	JJ
key	NN
defense-electronics	DT
contracts	NNS
,	,
and	CC
its	DT
purchase	NN
by	IN
GEC	DT
may	MD
heighten	DT
British	JJ
Defense	DT
Ministry	NNP
worries	DT
about	IN
concentration	DT
in	IN
the	DT
country	NN
's	VBZ
defense	NN
industry	NN
.	.
	
A	DT
consortium	DT
bid	NN
,	,
however	RB
,	,
would	MD
diminish	DT
GEC	DT
's	VBZ
direct	JJ
role	NN
in	IN
Ferranti	DT
and	CC
might	MD
consequently	DT
appease	DT
ministry	DT
officials	NNS
.	.
	
A	DT
British	JJ
Aerospace	NNP
spokeswoman	DT
appeared	VBD
unperturbed	DT
by	IN
the	DT
prospect	DT
of	IN
a	DT
fight	NN
with	IN
GEC	DT
for	IN
Ferranti	DT
:	:
``	``
Competition	DT
is	VBZ
the	DT
name	NN
of	IN
the	DT
game	NN
,	,
''	''
she	DT
said	VBN
.	.
	
At	IN
least	JJS
one	CD
potential	JJ
GEC	DT
partner	NN
,	,
Matra	DT
,	,
insists	VBZ
it	DT
is	VBZ
n't	RB
interested	JJ
in	IN
Ferranti	DT
.	.
	
``	``
We	DT
have	VBP
nothing	NN
to	DT
say	VBP
about	IN
this	DT
affair	NN
,	,
which	DT
does	VBZ
n't	RB
concern	NN
us	DT
,	,
''	''
a	DT
Matra	DT
official	NN
said	VBN
Sunday	NNP
.	.
	
The	NNP
missile	DT
venture	NN
,	,
the	DT
British	JJ
Aerospace	NNP
spokeswoman	DT
said	VBN
,	,
is	VBZ
a	DT
needed	VBN
response	NN
to	DT
the	DT
``	``
new	JJ
environment	NN
''	''
in	IN
defense	NN
contracting	DT
.	.
	
For	IN
both	DT
Thomson	DT
and	CC
British	JJ
Aerospace	NNP
,	,
earnings	NNS
in	IN
their	DT
home	RB
markets	NNS
have	VBP
come	VBN
under	IN
pressure	NN
from	IN
increasingly	RB
tight-fisted	DT
defense	NN
ministries	DT
;	;
and	CC
Middle	DT
East	NNP
sales	NNS
,	,
a	DT
traditional	JJ
mainstay	DT
for	IN
both	DT
companies	NNS
'	'
exports	NNS
,	,
have	VBP
been	VBN
hurt	VBN
by	IN
five	CD
years	NNS
of	IN
weak	JJ
oil	DT
prices	NNS
.	.
	
The	NNP
venture	NN
's	VBZ
importance	NN
for	IN
Thomson	DT
is	VBZ
great	JJ
.	.
	
Thomson	DT
feels	VBZ
the	DT
future	NN
of	IN
its	DT
defense	NN
business	NN
depends	VBZ
on	IN
building	NN
cooperation	NN
with	IN
other	JJ
Europeans	DT
.	.
	
The	NNP
European	NNP
defense	NN
industry	NN
is	VBZ
consolidating	DT
;	;
for	IN
instance	NN
,	,
West	NNP
Germany	NNP
's	VBZ
Siemens	NNP
AG	NNP
recently	RB
joined	VBD
GEC	DT
in	IN
a	DT
takeover	NN
of	IN
Britain	NNP
's	VBZ
Plessey	DT
Co.	DT
,	,
and	CC
Daimler-Benz	DT
agreed	VBN
to	DT
buy	DT
Messerschmitt-Boelkow	DT
Blohm	DT
G.m.b	NNP
.	.
H	NN
.	.
	
In	IN
missiles	DT
,	,
Thomson	DT
is	VBZ
already	RB
overshadowed	DT
by	IN
British	JJ
Aerospace	NNP
and	CC
by	IN
its	DT
home	RB
rival	NN
,	,
France	NNP
's	VBZ
Aerospatiale	DT
S.A.	DT
;	;
to	DT
better	JJR
compete	DT
,	,
Thomson	DT
officials	NNS
say	VBP
,	,
they	DT
need	VB
a	DT
partnership	DT
.	.
	
To	NN
justify	DT
50-50	DT
ownership	NN
of	IN
the	DT
planned	VBN
venture	NN
,	,
Thomson	DT
would	MD
make	VBP
a	DT
cash	NN
payment	NN
to	DT
British	JJ
Aerospace	NNP
.	.
	
Annual	DT
revenue	NN
of	IN
British	JJ
Aerospace	NNP
's	VBZ
missile	DT
business	NN
is	VBZ
about	IN
#	#
950	DT
million	CD
,	,
a	DT
Thomson	DT
spokesman	NN
said	VBN
.	.
	
British	JJ
Aerospace	NNP
's	VBZ
chief	NN
missile	DT
products	NNS
include	VBP
its	DT
17-year-old	DT
family	NN
of	IN
Rapier	DT
surface-to-air	DT
missiles	DT
.	.
	
Thomson	DT
missile	DT
products	NNS
,	,
with	IN
about	IN
half	DT
British	JJ
Aerospace	NNP
's	VBZ
annual	JJ
revenue	NN
,	,
include	VBP
the	DT
Crotale	DT
surface-to-air	DT
missile	DT
family	NN
.	.
	
Interprovincial	DT
Pipe	DT
Line	DT
Co.	DT
said	VBD
it	DT
will	MD
delay	DT
a	DT
proposed	VBN
two-step	DT
,	,
830	DT
million	CD
Canadian-dollar	DT
(	(
US$	DT
705.6	DT
million	CD
)	)
expansion	DT
of	IN
its	DT
system	NN
because	IN
Canada	NNP
's	VBZ
output	NN
of	IN
crude	DT
oil	DT
is	VBZ
shrinking	DT
.	.
	
Interprovincial	DT
,	,
Canada	NNP
's	VBZ
biggest	JJS
oil	DT
pipeline	DT
operator	NN
and	CC
a	DT
major	JJ
transporter	DT
of	IN
crude	DT
to	DT
the	DT
U.S.	DT
,	,
said	VBN
revised	VBN
industry	NN
forecasts	NNS
indicate	DT
that	WDT
Canadian	JJ
oil	DT
output	NN
will	MD
total	JJ
about	IN
1.64	DT
million	CD
barrels	DT
a	DT
day	NN
by	IN
1991	DT
,	,
8	CD
%	%
lower	JJR
than	IN
a	DT
previous	JJ
estimate	NN
.	.
	
Canadian	JJ
crude	DT
production	NN
averaged	DT
about	IN
1.69	DT
million	CD
barrels	DT
a	DT
day	NN
during	IN
1989	CD
's	VBZ
first	JJ
half	DT
,	,
about	IN
1	CD
%	%
below	IN
the	DT
1988	CD
level	NN
.	.
	
``	``
The	NNP
capability	DT
of	IN
existing	VBG
fields	DT
to	DT
deliver	DT
oil	DT
is	VBZ
dropping	VBG
,	,
''	''
and	CC
oil	DT
exploration	DT
activity	NN
is	VBZ
also	RB
down	IN
dramatically	DT
,	,
as	IN
many	JJ
producers	NNS
shift	NN
their	DT
emphasis	DT
to	DT
natural	JJ
gas	NN
,	,
said	VBN
Ronald	NNP
Watkins	DT
,	,
vice	NN
president	NN
for	IN
government	NN
and	CC
industry	NN
relations	NNS
with	IN
Interprovincial	DT
's	VBZ
parent	NN
,	,
Interhome	DT
Energy	NNP
Inc	NNP
.	.
	
Mr.	DT
Watkins	DT
said	VBN
volume	NN
on	IN
Interprovincial	DT
's	VBZ
system	NN
is	VBZ
down	IN
about	IN
2	CD
%	%
since	IN
January	NNP
and	CC
is	VBZ
expected	VBN
to	DT
fall	NN
further	JJ
,	,
making	VBG
expansion	DT
unnecessary	DT
until	IN
perhaps	RB
the	DT
mid-1990s	CD
.	.
	
``	``
There	DT
has	VBZ
been	VBN
a	DT
swing	DT
of	IN
the	DT
pendulum	DT
back	VB
to	DT
the	DT
gas	NN
side	NN
,	,
''	''
he	DT
said	VBN
.	.
	
Many	JJ
of	IN
Canada	NNP
's	VBZ
oil	DT
and	CC
gas	NN
producers	NNS
say	VBP
the	DT
outlook	NN
for	IN
natural	JJ
gas	NN
is	VBZ
better	JJR
than	IN
it	DT
is	VBZ
for	IN
oil	DT
,	,
and	CC
have	VBP
shifted	VBN
their	DT
exploration	DT
and	CC
development	NN
budgets	NNS
accordingly	DT
.	.
	
The	NNP
number	NN
of	IN
active	JJ
drilling	DT
rigs	DT
in	IN
Canada	NNP
is	VBZ
down	IN
30	CD
%	%
from	IN
a	DT
year	NN
ago	IN
,	,
and	CC
the	DT
number	NN
of	IN
completed	VBN
oil	DT
wells	DT
is	VBZ
``	``
down	IN
more	RBR
than	IN
that	WDT
,	,
due	JJ
to	DT
the	DT
increasing	VBG
focus	NN
on	IN
gas	NN
exploration	DT
,	,
''	''
said	VBN
Robert	NNP
Feick	DT
,	,
manager	NN
of	IN
crude	DT
oil	DT
with	IN
Calgary	NNP
's	VBZ
Independent	DT
Petroleum	DT
Association	NNP
of	IN
Canada	NNP
,	,
an	DT
industry	NN
group	NN
.	.
	
Mr.	DT
Watkins	DT
said	VBN
the	DT
main	JJ
reason	NN
for	IN
the	DT
production	NN
decline	NN
is	VBZ
shrinking	DT
output	NN
of	IN
light	JJ
crude	DT
from	IN
mature	DT
,	,
conventional	DT
fields	DT
in	IN
western	DT
Canada	NNP
.	.
	
Interprovincial	DT
transports	DT
about	IN
75	CD
%	%
of	IN
all	RB
crude	DT
produced	VBN
in	IN
western	DT
Canada	NNP
,	,
and	CC
almost	RB
60	CD
%	%
of	IN
Interprovincial	DT
's	VBZ
total	JJ
volume	NN
consists	DT
of	IN
light	JJ
crude	DT
.	.
	
Nearly	DT
all	RB
of	IN
the	DT
crude	DT
oil	DT
that	WDT
Canada	NNP
exports	NNS
to	DT
the	DT
U.S.	DT
is	VBZ
transported	DT
on	IN
Interprovincial	DT
's	VBZ
system	NN
,	,
whose	DT
main	JJ
line	NN
runs	VBZ
from	IN
Edmonton	DT
to	DT
major	JJ
U.S.	DT
and	CC
Canadian	JJ
cities	NNS
in	IN
the	DT
Great	NNP
Lakes	DT
region	NN
,	,
including	VBG
Chicago	NNP
,	,
Buffalo	DT
,	,
Toronto	DT
and	CC
Montreal	DT
.	.
	
Canada	NNP
's	VBZ
current	NN
oil	DT
exports	NNS
to	DT
the	DT
U.S.	DT
total	JJ
about	IN
600,000	CD
barrels	DT
a	DT
day	NN
,	,
or	CC
about	IN
9.1	DT
%	%
of	IN
net	JJ
U.S.	DT
crude	DT
imports	NNS
,	,
said	VBN
John	NNP
Lichtblau	DT
,	,
president	NN
of	IN
the	DT
New	NNP
York-based	JJ
Petroleum	DT
Industry	DT
Research	NNP
Foundation	DT
.	.
	
That	IN
ranks	NNS
Canada	NNP
as	IN
the	DT
fourth-largest	DT
source	NN
of	IN
imported	VBN
crude	DT
,	,
behind	IN
Saudi	DT
Arabia	DT
,	,
Nigeria	DT
and	CC
Mexico	NNP
.	.
	
Mr.	DT
Lichtblau	DT
said	VBN
Canada	NNP
's	VBZ
declining	VBG
crude	DT
output	NN
,	,
combined	VBN
with	IN
the	DT
fast-shrinking	DT
output	NN
of	IN
U.S.	DT
crude	DT
,	,
will	MD
help	NN
intensify	DT
U.S.	DT
reliance	NN
on	IN
oil	DT
from	IN
overseas	RB
,	,
particularly	RB
the	DT
Middle	DT
East	NNP
.	.
	
``	``
It	PRP
's	VBZ
very	RB
much	JJ
a	DT
growing	VBG
concern	NN
.	.
	
But	CC
when	DT
something	NN
is	VBZ
inevitable	DT
,	,
you	DT
learn	VBP
to	DT
live	DT
with	IN
it	DT
,	,
''	''
he	DT
said	VBN
.	.
	
Mr.	DT
Lichtblau	DT
stressed	VBD
that	WDT
the	DT
delay	DT
of	IN
Interprovincial	DT
's	VBZ
proposed	VBN
expansion	DT
wo	MD
n't	RB
by	IN
itself	DT
increase	NN
U.S.	DT
dependence	NN
on	IN
offshore	DT
crude	DT
,	,
however	RB
,	,
since	IN
Canadian	JJ
imports	NNS
are	VBP
limited	VBN
in	IN
any	DT
case	NN
by	IN
Canada	NNP
's	VBZ
falling	VBG
output	NN
.	.
	
Under	IN
terms	NNS
of	IN
its	DT
proposed	VBN
two-step	DT
expansion	DT
,	,
which	DT
would	MD
have	VBP
required	VBN
regulatory	JJ
approval	NN
,	,
Interprovincial	DT
intended	VBN
to	DT
add	DT
200,000	CD
barrels	DT
a	DT
day	NN
of	IN
additional	JJ
capacity	NN
to	DT
its	DT
system	NN
,	,
beginning	NN
with	IN
a	DT
modest	JJ
expansion	DT
by	IN
1991	DT
.	.
	
The	NNP
system	NN
currently	RB
has	VBZ
a	DT
capacity	NN
of	IN
1.55	DT
million	CD
barrels	DT
a	DT
day	NN
.	.
	
Inland	DT
Steel	DT
Industries	NNPS
Inc.	DT
expects	VBZ
to	DT
report	NN
that	WDT
third-quarter	NN
earnings	NNS
dropped	VBN
more	RBR
than	IN
50	CD
%	%
from	IN
the	DT
previous	JJ
quarter	NN
as	IN
a	DT
result	NN
of	IN
reduced	VBN
sales	NNS
volume	NN
and	CC
increased	VBN
costs	NNS
.	.
	
In	IN
the	DT
second	NN
quarter	NN
,	,
the	DT
steelmaker	DT
had	VBN
net	JJ
income	NN
of	IN
$	$
45.3	DT
million	CD
or	CC
$	$
1.25	DT
a	DT
share	NN
,	,
including	VBG
a	DT
pretax	NN
charge	NN
of	IN
$	$
17	CD
million	CD
related	VBN
to	DT
the	DT
settlement	NN
of	IN
a	DT
suit	NN
,	,
on	IN
sales	NNS
of	IN
$	$
1.11	DT
billion	CD
.	.
	
The	NNP
company	NN
said	VBN
normal	JJ
seasonal	DT
softness	DT
and	CC
lost	VBN
orders	NNS
caused	VBN
by	IN
prolonged	DT
labor	NN
talks	NNS
reduced	VBN
shipments	NNS
by	IN
200,000	CD
tons	NNS
in	IN
the	DT
latest	JJS
quarter	NN
,	,
compared	VBN
with	IN
the	DT
second	NN
quarter	NN
.	.
	
At	IN
the	DT
same	JJ
time	NN
,	,
the	DT
integrated-steel	DT
business	NN
was	VBD
hurt	VBN
by	IN
continued	VBN
increases	NNS
in	IN
materials	DT
costs	NNS
and	CC
repair	DT
and	CC
maintenance	DT
expenses	NNS
,	,
as	IN
well	RB
as	IN
higher	JJR
labor	NN
costs	NNS
under	IN
its	DT
new	JJ
contract	NN
.	.
	
The	NNP
service-center	DT
business	NN
was	VBD
hurt	VBN
by	IN
reduced	VBN
margins	NNS
and	CC
start-up	JJ
costs	NNS
associated	VBN
with	IN
its	DT
Joseph	DT
T.	DT
Ryerson	DT
&	&
Son	DT
unit	NN
.	.
	
The	NNP
company	NN
said	VBN
it	DT
is	VBZ
beginning	NN
to	DT
see	VBP
some	DT
shipping-rate	DT
improvements	DT
in	IN
both	DT
the	DT
intergrated-steel	DT
and	CC
steel-service-center	DT
segments	DT
,	,
which	DT
should	MD
result	NN
in	IN
improved	VBN
results	NNS
for	IN
the	DT
fourth	JJ
quarter	NN
.	.
	
Inland	DT
said	VBN
its	DT
third-quarter	NN
results	NNS
will	MD
be	DT
announced	VBN
later	RB
this	DT
week	NN
.	.
	
In	IN
the	DT
year-earlier	JJ
third	JJ
quarter	NN
,	,
when	DT
the	DT
industry	NN
was	VBD
in	IN
the	DT
midst	NN
of	IN
a	DT
boom	NN
,	,
the	DT
company	NN
had	VBN
net	JJ
of	IN
$	$
61	CD
million	CD
,	,
or	CC
$	$
1.70	DT
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
1.02	DT
billion	CD
.	.
	
Predicting	DT
the	DT
financial	JJ
results	NNS
of	IN
computer	NN
firms	NNS
has	VBZ
been	VBN
a	DT
tough	JJ
job	NN
lately	RB
.	.
	
Take	DT
Microsoft	DT
Corp.	DT
,	,
the	DT
largest	JJS
maker	NN
of	IN
personal	JJ
computer	NN
software	DT
and	CC
generally	RB
considered	VBN
an	DT
industry	NN
bellwether	DT
.	.
	
In	IN
July	NNP
,	,
the	DT
company	NN
stunned	DT
Wall	NNP
Street	NNP
with	IN
the	DT
prediction	DT
that	WDT
growth	NN
in	IN
the	DT
personal	JJ
computer	NN
business	NN
overall	JJ
would	MD
be	DT
only	RB
10	CD
%	%
in	IN
1990	CD
,	,
a	DT
modest	JJ
increase	NN
when	DT
compared	VBN
with	IN
the	DT
sizzling	DT
expansion	DT
of	IN
years	NNS
past	NN
.	.
	
Investors	NNS
--	--
taking	VBG
this	DT
as	IN
a	DT
sign	NN
that	WDT
a	DT
broad	JJ
industry	NN
slump	NN
was	VBD
in	IN
the	DT
offing	DT
--	--
reacted	DT
by	IN
selling	NN
the	DT
company	NN
's	VBZ
stock	NN
,	,
which	DT
lost	VBN
$	$
3.25	DT
that	WDT
day	NN
to	DT
close	NN
at	IN
$	$
52	DT
in	IN
national	JJ
over-the-counter	NN
trading	NN
.	.
	
But	CC
that	WDT
was	VBD
all	RB
of	IN
three	CD
months	NNS
ago	IN
.	.
	
Last	JJ
week	NN
,	,
Microsoft	DT
said	VBN
it	DT
expects	VBZ
revenue	NN
for	IN
its	DT
first	JJ
quarter	NN
ended	VBD
Sept.	DT
30	CD
to	DT
increase	NN
34	CD
%	%
.	.
	
The	NNP
announcement	NN
caused	VBN
the	DT
company	NN
's	VBZ
stock	NN
to	DT
surge	NN
$	$
6.50	DT
to	DT
close	NN
at	IN
$	$
75.50	DT
a	DT
share	NN
.	.
	
Microsoft	DT
's	VBZ
surprising	DT
strength	NN
is	VBZ
one	CD
example	NN
of	IN
the	DT
difficulty	DT
facing	VBG
investors	NNS
looking	VBG
for	IN
reassurances	DT
about	IN
the	DT
financial	JJ
health	NN
of	IN
the	DT
computer	NN
firms	NNS
.	.
	
``	``
It	PRP
's	VBZ
hard	JJ
to	DT
know	VBP
what	WP
to	DT
expect	VBP
at	IN
this	DT
point	NN
,	,
''	''
said	VBN
Peter	NNP
Rogers	DT
,	,
an	DT
analyst	NN
at	IN
Robertson	NNP
Stephens	DT
&	&
Co	NNP
.	.
	
``	``
The	NNP
industry	NN
defies	DT
characterization	DT
.	.
''	''
	
To	NN
illustrate	VBP
,	,
Mr.	DT
Rogers	DT
said	VBN
that	WDT
of	IN
the	DT
14	CD
computer-related	DT
firms	NNS
he	DT
follows	VBZ
,	,
half	DT
will	MD
report	NN
for	IN
their	DT
most	RBS
recent	JJ
quarter	NN
earnings	NNS
below	IN
last	JJ
year	NN
's	VBZ
results	NNS
,	,
and	CC
half	DT
above	IN
those	DT
results	NNS
.	.
	
Among	IN
those	DT
companies	NNS
expected	VBN
to	DT
have	VBP
a	DT
down	IN
quarter	NN
are	VBP
Hewlett-Packard	DT
Co.	DT
,	,
Amdahl	DT
Corp.	DT
and	CC
Sun	DT
Microsystems	DT
Inc.	DT
,	,
generally	RB
solid	DT
performers	DT
in	IN
the	DT
past	NN
.	.
	
International	NNP
Business	NNP
Machines	DT
Corp.	DT
also	RB
is	VBZ
expected	VBN
to	DT
report	NN
disappointing	JJ
results	NNS
.	.
	
Apple	NNP
Computer	NNP
Inc.	DT
,	,
meanwhile	RB
,	,
is	VBZ
expected	VBN
to	DT
show	NN
improved	VBN
earnings	NNS
for	IN
the	DT
period	NN
ended	VBD
Sept	DT
.	.
	
Another	DT
contradictory	DT
message	NN
comes	VBZ
from	IN
Businessland	DT
Inc.	DT
,	,
a	DT
computer	NN
retailer	NN
.	.
	
In	IN
July	NNP
,	,
the	DT
company	NN
reported	VBN
that	WDT
booming	DT
sales	NNS
of	IN
new	JJ
personal	JJ
computers	NNS
from	IN
Apple	NNP
and	CC
IBM	DT
had	VBN
resulted	VBN
in	IN
net	JJ
income	NN
more	RBR
than	IN
doubling	DT
for	IN
its	DT
fourth	JJ
quarter	NN
ended	VBD
June	NNP
30	CD
to	DT
$	$
7.4	DT
million	CD
,	,
or	CC
23	CD
cents	NNS
a	DT
share	NN
.	.
	
This	DT
month	NN
,	,
however	RB
,	,
Businessland	DT
warned	VBD
investors	NNS
that	WDT
results	NNS
for	IN
its	DT
first	JJ
quarter	NN
ended	VBD
Sept.	DT
30	CD
had	VBN
n't	RB
met	VBN
expectations	NNS
.	.
	
The	NNP
company	NN
said	VBN
it	DT
expects	VBZ
earnings	NNS
of	IN
14	CD
to	DT
17	CD
cents	NNS
a	DT
share	NN
,	,
down	IN
from	IN
25	CD
cents	NNS
a	DT
share	NN
in	IN
the	DT
year-earlier	JJ
period	NN
.	.
	
While	IN
the	DT
earnings	NNS
picture	NN
confuses	DT
,	,
observers	NNS
say	VBP
the	DT
major	JJ
forces	DT
expected	VBN
to	DT
shape	NN
the	DT
industry	NN
in	IN
the	DT
coming	VBG
year	NN
are	VBP
clearer	DT
.	.
	
Companies	NNPS
will	MD
continue	DT
to	DT
war	NN
over	IN
standards	NNS
.	.
	
In	IN
computer	NN
publishing	DT
,	,
a	DT
battle	NN
over	IN
typefaces	DT
is	VBZ
hurting	DT
Adobe	DT
Systems	NNPS
Inc.	DT
,	,
which	DT
sells	DT
software	DT
that	WDT
controls	NNS
the	DT
image	DT
produced	VBN
by	IN
printers	DT
and	CC
displays	DT
.	.
	
Until	DT
recently	RB
,	,
Adobe	DT
had	VBN
a	DT
lock	NN
on	IN
the	DT
market	NN
for	IN
image	DT
software	DT
,	,
but	CC
last	JJ
month	NN
Apple	NNP
,	,
Adobe	DT
's	VBZ
biggest	JJS
customer	NN
,	,
and	CC
Microsoft	DT
rebelled	DT
.	.
	
Now	RB
the	DT
two	CD
firms	NNS
are	VBP
collaborating	VBG
on	IN
an	DT
alternative	NN
to	DT
Adobe	DT
's	VBZ
approach	DT
,	,
and	CC
analysts	NNS
say	VBP
they	DT
are	VBP
likely	JJ
to	DT
carry	DT
IBM	DT
,	,
the	DT
biggest	JJS
seller	DT
of	IN
personal	JJ
computers	NNS
,	,
along	IN
with	IN
them	DT
.	.
	
The	NNP
short-term	JJ
outlook	NN
for	IN
Adobe	DT
's	VBZ
business	NN
,	,
however	RB
,	,
appears	VBZ
strong	JJ
.	.
	
The	NNP
company	NN
is	VBZ
beginning	NN
to	DT
ship	DT
a	DT
new	JJ
software	DT
program	NN
that	WDT
's	VBZ
being	VBG
heralded	DT
as	IN
a	DT
boon	DT
for	IN
owners	NNS
of	IN
low-end	DT
printers	DT
sold	VBN
by	IN
Apple	NNP
.	.
	
The	NNP
program	NN
is	VBZ
aimed	VBN
at	IN
improving	VBG
the	DT
quality	NN
of	IN
printed	VBN
material	DT
.	.
	
John	NNP
Warnock	DT
,	,
Adobe	DT
's	VBZ
chief	NN
executive	NN
officer	NN
,	,
said	VBN
the	DT
Mountain	DT
View	DT
,	,
Calif.	DT
,	,
company	NN
has	VBZ
been	VBN
receiving	VBG
1,000	CD
calls	VBZ
a	DT
day	NN
about	IN
the	DT
product	NN
since	IN
it	DT
was	VBD
demonstrated	DT
at	IN
a	DT
computer	NN
publishing	DT
conference	NN
several	JJ
weeks	NNS
ago	IN
.	.
	
Meanwhile	RB
,	,
competition	NN
between	IN
various	JJ
operating	VBG
systems	NNS
,	,
which	DT
control	NN
the	DT
basic	JJ
functions	DT
of	IN
a	DT
computer	NN
,	,
spells	DT
trouble	NN
for	IN
software	DT
firms	NNS
generally	RB
.	.
	
``	``
It	PRP
creates	DT
uncertainty	NN
and	CC
usually	RB
slows	DT
down	IN
sales	NNS
,	,
''	''
said	VBN
Russ	DT
Crabs	DT
,	,
an	DT
analyst	NN
at	IN
Soundview	DT
Financial	NNP
Group	NNP
.	.
	
Mr.	DT
Crabs	DT
said	VBN
this	DT
probably	RB
is	VBZ
behind	IN
the	DT
expected	VBN
weak	JJ
performance	NN
of	IN
Aldus	DT
Corp.	DT
,	,
maker	NN
of	IN
a	DT
widely	RB
used	VBN
computer	NN
publishing	DT
program	NN
.	.
	
He	DT
expects	VBZ
Aldus	DT
to	DT
report	NN
earnings	NNS
of	IN
21	CD
cents	NNS
a	DT
share	NN
on	IN
revenues	NNS
of	IN
$	$
19.5	DT
million	CD
for	IN
its	DT
third	JJ
quarter	NN
,	,
compared	VBN
with	IN
earnings	NNS
of	IN
30	CD
cents	NNS
a	DT
share	NN
on	IN
revenue	NN
of	IN
20.4	DT
million	CD
in	IN
the	DT
year-earlier	JJ
period	NN
.	.
	
Aldus	DT
officials	NNS
could	MD
n't	RB
be	DT
reached	VBN
for	IN
comment	NN
.	.
	
On	IN
the	DT
other	JJ
hand	NN
,	,
the	DT
battle	NN
of	IN
the	DT
bus	DT
is	VBZ
expected	VBN
to	DT
grow	DT
increasingly	RB
irrelevant	DT
.	.
	
A	DT
bus	DT
is	VBZ
the	DT
data	NNS
highway	DT
within	IN
a	DT
computer	NN
.	.
	
IBM	DT
is	VBZ
backing	NN
one	CD
type	NN
of	IN
bus	DT
called	VBN
microchannel	DT
,	,
while	IN
the	DT
nine	CD
other	JJ
leading	VBG
computer	NN
makers	NNS
,	,
including	VBG
H-P	DT
and	CC
Compaq	DT
Computer	NNP
Corp.	DT
,	,
have	VBP
chosen	VBN
another	DT
method	DT
.	.
	
``	``
Users	DT
do	VBP
n't	RB
care	NN
about	IN
the	DT
bus	DT
,	,
''	''
said	VBN
Daniel	DT
Benton	DT
,	,
an	DT
analyst	NN
at	IN
Goldman	NNP
,	,
Sachs	NNP
&	&
Co	NNP
.	.
	
He	DT
said	VBN
Apple	NNP
's	VBZ
family	NN
of	IN
Macintosh	NNP
computers	NNS
,	,
for	IN
instance	NN
,	,
uses	NNS
four	CD
different	JJ
buses	DT
``	``
and	CC
no	RB
one	CD
seems	VBZ
to	DT
mind	NN
.	.
''	''
	
The	NNP
gap	NN
between	IN
winners	DT
and	CC
laggards	DT
will	MD
grow	DT
.	.
	
In	IN
personal	JJ
computers	NNS
,	,
Apple	NNP
,	,
Compaq	DT
and	CC
IBM	DT
are	VBP
expected	VBN
to	DT
tighten	DT
their	DT
hold	VBP
on	IN
their	DT
business	NN
.	.
	
At	IN
the	DT
same	JJ
time	NN
,	,
second-tier	DT
firms	NNS
will	MD
continue	DT
to	DT
lose	DT
ground	VBD
.	.
	
Some	DT
lagging	DT
competitors	DT
even	RB
may	MD
leave	VBP
the	DT
personal	JJ
computer	NN
business	NN
altogether	DT
.	.
	
Wyse	DT
Technology	DT
,	,
for	IN
instance	NN
,	,
is	VBZ
considered	VBN
a	DT
candidate	NN
to	DT
sell	NN
its	DT
troubled	VBN
operation	NN
.	.
	
``	``
Wyse	DT
has	VBZ
done	VBN
well	RB
establishing	VBG
a	DT
distribution	DT
business	NN
,	,
but	CC
they	DT
have	VBP
n't	RB
delivered	DT
products	NNS
that	WDT
sell	NN
,	,
''	''
said	VBN
Kimball	DT
Brown	DT
,	,
an	DT
analyst	NN
at	IN
Prudential-Bache	DT
Securities	NNPS
.	.
	
Mr.	DT
Brown	DT
estimates	NNS
Wyse	DT
,	,
whose	DT
terminals	DT
business	NN
is	VBZ
strong	JJ
,	,
will	MD
report	NN
a	DT
loss	NN
of	IN
12	CD
cents	NNS
a	DT
share	NN
for	IN
its	DT
quarter	NN
ended	VBD
Sept	DT
.	.
	
Personal-computer	DT
makers	NNS
will	MD
continue	DT
to	DT
eat	DT
away	RB
at	IN
the	DT
business	NN
of	IN
more	RBR
traditional	JJ
computer	NN
firms	NNS
.	.
	
Ever-more	DT
powerful	JJ
desk-top	DT
computers	NNS
,	,
designed	VBN
with	IN
one	CD
or	CC
more	RBR
microprocessors	DT
as	IN
their	DT
``	``
brains	DT
,	,
''	''
are	VBP
expected	VBN
to	DT
increasingly	RB
take	VBP
on	IN
functions	DT
carried	VBD
out	IN
by	IN
more	RBR
expensive	JJ
minicomputers	DT
and	CC
mainframes	DT
.	.
	
``	``
The	NNP
guys	DT
that	WDT
make	VBP
traditional	JJ
hardware	DT
are	VBP
really	RB
being	VBG
obsoleted	DT
by	IN
microprocessor-based	DT
machines	NNS
,	,
''	''
said	VBN
Mr.	DT
Benton	DT
.	.
	
As	IN
a	DT
result	NN
of	IN
this	DT
trend	NN
,	,
longtime	DT
powerhouses	DT
H-P	DT
,	,
IBM	DT
and	CC
Digital	DT
Equipment	NNP
Corp.	DT
are	VBP
scrambling	VBG
to	DT
counterattack	DT
with	IN
microprocessor-based	DT
systems	NNS
of	IN
their	DT
own	JJ
.	.
	
But	CC
they	DT
will	MD
have	VBP
to	DT
act	DT
quickly	RB
.	.
	
Mr.	DT
Benton	DT
expects	VBZ
Compaq	DT
to	DT
unveil	DT
a	DT
family	NN
of	IN
high-end	DT
personal	JJ
computers	NNS
later	RB
this	DT
year	NN
that	WDT
are	VBP
powerful	JJ
enough	JJ
to	DT
serve	DT
as	IN
the	DT
hub	DT
for	IN
communications	NNS
within	IN
large	JJ
networks	NNS
of	IN
desk-top	DT
machines	NNS
.	.
	
A	DT
raft	DT
of	IN
new	JJ
computer	NN
companies	NNS
also	RB
has	VBZ
targeted	VBN
this	DT
``	``
server	DT
''	''
market	NN
.	.
	
Population	DT
Drain	DT
Ends	DT
For	IN
Midwestern	DT
States	DT
	
IOWA	DT
IS	DT
MAKING	DT
a	DT
comeback	DT
.	.
	
So	IN
are	VBP
Indiana	DT
,	,
Ohio	NNP
and	CC
Michigan	NNP
.	.
	
The	NNP
population	NN
of	IN
all	RB
four	CD
states	NNS
is	VBZ
on	IN
the	DT
upswing	DT
,	,
according	VBG
to	DT
new	JJ
Census	DT
Bureau	NNP
estimates	NNS
,	,
following	VBG
declines	NNS
throughout	IN
the	DT
early	JJ
1980s	CD
.	.
	
The	NNP
gains	NNS
,	,
to	DT
be	DT
sure	JJ
,	,
are	VBP
rather	RB
small	JJ
.	.
	
Iowa	DT
,	,
for	IN
instance	NN
,	,
saw	VBD
its	DT
population	NN
grow	DT
by	IN
11,000	CD
people	NNS
,	,
or	CC
0.4	CD
%	%
,	,
between	IN
1987	CD
and	CC
1988	CD
,	,
the	DT
Census	DT
Bureau	NNP
says	VBZ
.	.
	
Still	RB
,	,
even	RB
that	WDT
modest	JJ
increase	NN
is	VBZ
good	JJ
news	NN
for	IN
a	DT
state	NN
that	WDT
had	VBN
n't	RB
grown	VBN
at	IN
all	RB
since	IN
1981	CD
.	.
	
Between	DT
1987	CD
and	CC
1988	CD
,	,
North	NNP
Dakota	DT
was	VBD
the	DT
only	RB
state	NN
in	IN
the	DT
Midwest	DT
to	DT
lose	DT
population	NN
,	,
a	DT
loss	NN
of	IN
4,000	DT
people	NNS
.	.
	
Six	CD
of	IN
the	DT
12	CD
midwestern	DT
states	NNS
have	VBP
been	VBN
growing	VBG
steadily	DT
since	IN
1980	DT
--	--
Illinois	DT
,	,
Kansas	DT
,	,
Minnesota	NNP
,	,
Missouri	NNP
,	,
South	NNP
Dakota	DT
and	CC
Wisconsin	DT
.	.
	
The	NNP
Northeast	DT
has	VBZ
been	VBN
holding	VBG
its	DT
own	JJ
in	IN
the	DT
population	NN
race	DT
.	.
	
Seven	DT
of	IN
nine	CD
states	NNS
have	VBP
grown	VBN
each	DT
year	NN
since	IN
1980	DT
,	,
including	VBG
New	NNP
York	NNP
,	,
which	DT
lost	VBN
4	CD
%	%
of	IN
its	DT
population	NN
during	IN
the	DT
1970s	CD
.	.
	
And	CC
although	IN
Pennsylvania	DT
and	CC
Massachusetts	DT
suffered	VBD
slight	JJ
declines	NNS
earlier	JJR
in	IN
the	DT
decade	NN
,	,
they	DT
are	VBP
growing	VBG
again	RB
.	.
	
At	IN
the	DT
same	JJ
time	NN
,	,
several	JJ
states	NNS
in	IN
the	DT
South	NNP
and	CC
West	NNP
have	VBP
had	VBN
their	DT
own	JJ
population	NN
turnaround	NN
.	.
	
Seven	DT
states	NNS
that	WDT
grew	VBD
in	IN
the	DT
early	JJ
1980s	CD
are	VBP
now	RB
losing	VBG
population	NN
--	--
West	NNP
Virginia	DT
,	,
Mississippi	DT
,	,
Louisiana	DT
,	,
Oklahoma	DT
,	,
Montana	DT
,	,
Wyoming	DT
and	CC
Alaska	DT
.	.
	
Overall	RB
,	,
though	RB
,	,
the	DT
South	NNP
and	CC
West	NNP
still	RB
outpace	DT
the	DT
Northeast	DT
and	CC
Midwest	DT
,	,
and	CC
fast-growing	DT
states	NNS
like	JJ
Florida	DT
and	CC
California	NNP
ensure	DT
that	WDT
the	DT
pattern	DT
will	MD
continue	DT
.	.
	
But	CC
the	DT
growth	NN
gap	NN
between	IN
the	DT
Sun	DT
Belt	DT
and	CC
other	JJ
regions	DT
has	VBZ
clearly	RB
started	VBN
narrowing	VBG
.	.
	
More	JJR
Elderly	DT
Maintain	DT
Their	DT
Independence	DT
	
THANKS	DT
TO	DT
modern	DT
medicine	DT
,	,
more	RBR
couples	DT
are	VBP
growing	VBG
old	JJ
together	RB
.	.
	
And	CC
even	RB
after	IN
losing	VBG
a	DT
spouse	DT
,	,
more	RBR
of	IN
the	DT
elderly	DT
are	VBP
staying	DT
independent	JJ
.	.
	
A	DT
new	JJ
Census	DT
Bureau	NNP
study	NN
of	IN
the	DT
noninstitutionalized	DT
population	NN
shows	VBZ
that	WDT
64	DT
%	%
of	IN
people	NNS
aged	DT
65	DT
to	DT
74	DT
were	VBD
living	VBG
with	IN
a	DT
spouse	DT
in	IN
1988	CD
,	,
up	IN
from	IN
59	CD
%	%
in	IN
1970	DT
.	.
	
This	DT
does	VBZ
n't	RB
mean	DT
they	DT
're	VBP
less	RBR
likely	JJ
to	DT
live	DT
alone	RB
,	,
however	RB
.	.
	
That	IN
share	NN
has	VBZ
remained	VBD
at	IN
about	IN
24	CD
%	%
since	IN
1970	DT
.	.
	
What	WP
has	VBZ
changed	VBN
is	VBZ
that	WDT
more	RBR
of	IN
the	DT
young	JJ
elderly	DT
are	VBP
living	VBG
with	IN
spouses	DT
rather	RB
than	IN
with	IN
other	JJ
relatives	DT
,	,
such	JJ
as	IN
children	NNS
.	.
	
In	IN
1988	CD
,	,
10	CD
%	%
of	IN
those	DT
aged	DT
65	DT
to	DT
74	DT
lived	VBN
with	IN
relatives	DT
other	JJ
than	IN
spouses	DT
,	,
down	IN
from	IN
15	CD
%	%
in	IN
1970	DT
.	.
	
As	IN
people	NNS
get	VBP
even	RB
older	DT
,	,
many	JJ
become	VBN
widowed	DT
.	.
	
But	CC
even	RB
among	IN
those	DT
aged	DT
75	CD
and	CC
older	DT
,	,
the	DT
share	NN
living	VBG
with	IN
a	DT
spouse	DT
rose	VBD
slightly	RB
,	,
to	DT
40	CD
%	%
in	IN
1988	CD
from	IN
38	CD
%	%
in	IN
1970	DT
.	.
	
Like	IN
their	DT
younger	JJR
counterparts	NNS
,	,
the	DT
older	DT
elderly	DT
are	VBP
less	RBR
likely	JJ
to	DT
live	DT
with	IN
other	JJ
relatives	DT
.	.
	
Only	JJ
17	CD
%	%
of	IN
those	DT
aged	DT
75	CD
and	CC
older	DT
lived	VBN
with	IN
relatives	DT
other	JJ
than	IN
spouses	DT
in	IN
1988	CD
,	,
down	IN
from	IN
26	CD
%	%
in	IN
1970	DT
.	.
	
The	NNP
likelihood	DT
of	IN
living	VBG
alone	RB
beyond	DT
the	DT
age	DT
of	IN
75	CD
has	VBZ
increased	VBN
to	DT
40	CD
%	%
from	IN
32	CD
%	%
.	.
	
More	JJR
people	NNS
are	VBP
remaining	VBG
independent	JJ
longer	JJR
presumably	DT
because	IN
they	DT
are	VBP
better	JJR
off	IN
physically	DT
and	CC
financially	RB
.	.
	
Careers	DT
Count	DT
Most	RBS
For	IN
the	DT
Well-to-Do	DT
	
MANY	DT
AFFLUENT	DT
people	NNS
place	NN
personal	JJ
success	NN
and	CC
money	NN
above	IN
family	NN
.	.
	
At	IN
least	JJS
that	WDT
's	VBZ
what	WP
a	DT
survey	NN
by	IN
Ernst	DT
&	&
Young	NNP
and	CC
Yankelovich	DT
,	,
Clancy	DT
,	,
Shulman	DT
indicates	DT
.	.
	
Two-thirds	DT
of	IN
respondents	DT
said	VBN
they	DT
strongly	RB
felt	DT
the	DT
need	VB
to	DT
be	DT
successful	JJ
in	IN
their	DT
jobs	NNS
,	,
while	IN
fewer	JJR
than	IN
half	DT
said	VBN
they	DT
strongly	RB
felt	DT
the	DT
need	VB
to	DT
spend	VBP
more	RBR
time	NN
with	IN
their	DT
families	NNS
.	.
	
Being	DT
successful	JJ
in	IN
careers	NNS
and	CC
spending	NN
the	DT
money	NN
they	DT
make	VBP
are	VBP
top	NN
priorities	DT
for	IN
this	DT
group	NN
.	.
	
Unlike	DT
most	RBS
studies	NNS
of	IN
the	DT
affluent	DT
market	NN
,	,
this	DT
survey	NN
excluded	DT
the	DT
super-rich	DT
.	.
	
Average	NNP
household	DT
income	NN
for	IN
the	DT
sample	DT
was	VBD
$	$
194,000	DT
,	,
and	CC
average	NN
net	JJ
assets	NNS
were	VBD
reported	VBN
as	IN
$	$
775,000	DT
.	.
	
The	NNP
goal	NN
was	VBD
to	DT
learn	VBP
about	IN
one	CD
of	IN
today	NN
's	VBZ
fastest-growing	JJ
income	NN
groups	NNS
,	,
the	DT
upper-middle	DT
class	DT
.	.
	
Although	IN
they	DT
represent	DT
only	RB
2	CD
%	%
of	IN
the	DT
population	NN
,	,
they	DT
control	NN
nearly	RB
one-third	DT
of	IN
discretionary	DT
income	NN
.	.
	
Across	DT
the	DT
board	NN
,	,
these	DT
consumers	NNS
value	NN
quality	NN
,	,
buy	DT
what	WP
they	DT
like	JJ
rather	RB
than	IN
just	RB
what	WP
they	DT
need	VB
,	,
and	CC
appreciate	DT
products	NNS
that	WDT
are	VBP
distinctive	JJ
.	.
	
Despite	IN
their	DT
considerable	JJ
incomes	DT
and	CC
assets	NNS
,	,
40	CD
%	%
of	IN
the	DT
respondents	DT
in	IN
the	DT
study	NN
do	VBP
n't	RB
feel	VBP
financially	RB
secure	DT
,	,
and	CC
one-fourth	DT
do	VBP
n't	RB
feel	VBP
that	WDT
they	DT
have	VBP
made	VBN
it	DT
.	.
	
Twenty	DT
percent	DT
do	VBP
n't	RB
even	RB
feel	VBP
they	DT
are	VBP
financially	RB
well	RB
off	IN
.	.
	
Many	JJ
of	IN
the	DT
affluent	DT
are	VBP
n't	RB
comfortable	DT
with	IN
themselves	DT
,	,
either	RB
.	.
	
About	DT
40	CD
%	%
do	VBP
n't	RB
feel	VBP
they	DT
're	VBP
more	RBR
able	JJ
than	IN
others	NNS
.	.
	
While	IN
twothirds	DT
feel	VBP
some	DT
guilt	DT
about	IN
being	VBG
affluent	DT
,	,
only	RB
25	CD
%	%
give	VBP
$	$
2,500	DT
or	CC
more	RBR
to	DT
charity	NN
each	DT
year	NN
.	.
	
Thirty-five	DT
percent	DT
attend	DT
religious	JJ
services	NNS
regularly	RB
;	;
at	IN
the	DT
same	JJ
time	NN
,	,
60	CD
%	%
feel	VBP
that	WDT
in	IN
life	NN
one	CD
sometimes	DT
has	VBZ
to	DT
compromise	NN
one	CD
's	VBZ
principles	DT
.	.
	
Odds	DT
and	CC
Ends	DT
	
THE	DT
NUMBER	DT
of	IN
women	NNS
and	CC
minorities	DT
who	WP
hold	VBP
jobs	NNS
in	IN
top	NN
management	NN
in	IN
the	DT
nation	NN
's	VBZ
largest	JJS
banks	NNS
has	VBZ
more	RBR
than	IN
doubled	DT
since	IN
1978	CD
.	.
	
The	NNP
American	JJ
Bankers	NNPS
Association	NNP
says	VBZ
that	WDT
women	NNS
make	VBP
up	IN
47	CD
%	%
of	IN
officials	NNS
and	CC
managers	NNS
in	IN
the	DT
top	NN
50	CD
banks	NNS
,	,
up	IN
from	IN
33	DT
%	%
in	IN
1978	CD
.	.
	
The	NNP
share	NN
of	IN
minorities	DT
in	IN
those	DT
positions	NNS
has	VBZ
risen	VBN
to	DT
16	CD
%	%
from	IN
12	CD
%	%
...	...
.	.
	
Per-capita	DT
personal	JJ
income	NN
in	IN
the	DT
U.S.	DT
grew	VBD
faster	RBR
than	IN
inflation	NN
last	JJ
year	NN
,	,
according	VBG
to	DT
the	DT
Bureau	NNP
of	IN
Economic	DT
Analysis	DT
.	.
	
The	NNP
amount	NN
of	IN
income	NN
divvied	DT
up	IN
for	IN
each	DT
man	NN
,	,
woman	NN
and	CC
child	DT
was	VBD
$	$
16,489	DT
in	IN
1988	CD
,	,
up	IN
6.6	DT
%	%
from	IN
$	$
15,472	DT
in	IN
1987	CD
.	.
	
Per	DT
capita	DT
personal	JJ
income	NN
ranged	DT
from	IN
$	$
11,116	DT
in	IN
Mississippi	DT
to	DT
$	$
23,059	DT
in	IN
Connecticut	DT
...	...
.	.
	
There	DT
are	VBP
13.1	DT
million	CD
students	NNS
in	IN
college	NN
this	DT
fall	NN
,	,
up	IN
2	CD
%	%
from	IN
1988	CD
,	,
the	DT
National	NNP
Center	DT
for	IN
Education	DT
Statistics	NNP
estimates	NNS
.	.
	
About	DT
54	DT
%	%
are	VBP
women	NNS
,	,
and	CC
44	DT
%	%
are	VBP
part-time	DT
students	NNS
.	.
	
This	DT
small	JJ
Dallas	NNP
suburb	DT
's	VBZ
got	VBN
trouble	NN
.	.
	
Trouble	NN
with	IN
a	DT
capital	NN
T	DT
and	CC
that	WDT
rhymes	DT
with	IN
P	DT
and	CC
that	WDT
stands	DT
for	IN
pool	DT
.	.
	
More	JJR
than	IN
30	CD
years	NNS
ago	IN
,	,
Prof.	DT
Harold	DT
Hill	NNP
,	,
the	DT
con	DT
man	NN
in	IN
Meredith	DT
Willson	DT
's	VBZ
``	``
The	NNP
Music	DT
Man	DT
,	,
''	''
warned	VBD
the	DT
citizens	NNS
of	IN
River	DT
City	NNP
,	,
Iowa	DT
,	,
against	IN
the	DT
game	NN
.	.
	
Now	RB
kindred	DT
spirits	DT
on	IN
Addison	DT
's	VBZ
town	DT
council	DT
have	VBP
barred	VBN
the	DT
town	DT
's	VBZ
fanciest	DT
hotel	NN
,	,
the	DT
Grand	DT
Kempinski	DT
,	,
from	IN
installing	DT
three	CD
free	JJ
pool	DT
tables	NNS
in	IN
its	DT
new	JJ
lounge	DT
.	.
	
Mayor	DT
Lynn	DT
Spruill	DT
and	CC
two	CD
members	NNS
of	IN
the	DT
council	DT
said	VBN
they	DT
were	VBD
worried	VBN
about	IN
setting	VBG
a	DT
precedent	DT
that	WDT
would	MD
permit	DT
pool	DT
halls	DT
along	IN
Addison	DT
's	VBZ
main	JJ
street	NN
.	.
	
And	CC
the	DT
mayor	DT
,	,
in	IN
an	DT
admonition	DT
that	WDT
bears	VBZ
a	DT
rhythmic	DT
resemblance	DT
to	DT
Prof.	DT
Hill	NNP
's	VBZ
,	,
warned	VBD
that	WDT
``	``
alcohol	DT
leads	VBZ
to	DT
betting	DT
,	,
which	DT
leads	VBZ
to	DT
fights	DT
.	.
''	''
	
The	NNP
council	DT
's	VBZ
action	NN
is	VBZ
yet	RB
another	DT
blow	NN
to	DT
a	DT
sport	NN
that	WDT
its	DT
fans	DT
claim	NN
has	VBZ
been	VBN
maligned	DT
unjustly	DT
for	IN
years	NNS
.	.
	
``	``
Obviously	DT
they	DT
're	VBP
not	RB
in	IN
touch	DT
with	IN
what	WP
's	VBZ
going	VBG
on	IN
,	,
''	''
says	VBZ
Tom	NNP
Manske	DT
,	,
vice	NN
president	NN
of	IN
the	DT
National	NNP
Pocket	DT
Billiards	DT
Association	NNP
.	.
	
Pool	DT
is	VBZ
hot	DT
in	IN
New	NNP
York	NNP
and	CC
Chicago	NNP
,	,
he	DT
insists	VBZ
,	,
where	DT
``	``
upscale	DT
,	,
suit-and-tie	DT
places	NNS
''	''
are	VBP
adding	VBG
tables	NNS
.	.
	
With	IN
today	NN
's	VBZ
tougher	JJR
drunk	DT
driving	VBG
laws	NNS
,	,
he	DT
adds	VBZ
,	,
``	``
people	NNS
do	VBP
n't	RB
want	VBP
to	DT
just	RB
sit	VBP
around	IN
and	CC
drink	DT
.	.
''	''
	
Besides	IN
,	,
rowdy	DT
behavior	NN
seems	VBZ
unlikely	JJ
at	IN
the	DT
Grand	DT
Kempinski	DT
,	,
where	DT
rooms	NNS
average	NN
$	$
200	CD
a	DT
night	NN
and	CC
the	DT
cheap	JJ
mixed	VBN
drinks	DT
go	VBP
for	IN
$	$
3.50	DT
a	DT
pop	DT
.	.
	
At	IN
the	DT
lounge	DT
,	,
manager	NN
Elizabeth	DT
Dyer	DT
wo	MD
n't	RB
admit	VBP
patrons	DT
in	IN
jeans	DT
,	,
T-shirts	DT
or	CC
tennis	DT
shoes	DT
.	.
	
But	CC
a	DT
majority	NN
of	IN
the	DT
Addison	DT
council	DT
did	VBD
n't	RB
buy	DT
those	DT
arguments	NNS
.	.
	
Introducing	DT
pool	DT
,	,
argued	VBN
Councilwoman	DT
Riley	DT
Reinker	DT
,	,
would	MD
be	DT
``	``
dangerous	DT
.	.
	
It	PRP
would	MD
open	JJ
a	DT
can	MD
of	IN
worms	DT
.	.
''	''
	
Addison	DT
is	VBZ
no	RB
stranger	DT
to	DT
cans	NNS
of	IN
worms	DT
,	,
either	RB
.	.
	
After	IN
its	DT
previous	JJ
mayor	DT
committed	DT
suicide	DT
last	JJ
year	NN
,	,
an	DT
investigation	NN
disclosed	VBN
that	WDT
town	DT
officials	NNS
regularly	RB
voted	VBD
on	IN
their	DT
own	JJ
projects	NNS
,	,
gave	VBD
special	JJ
favors	VBZ
to	DT
developer	NN
friends	NNS
and	CC
dipped	VBD
into	IN
the	DT
town	DT
's	VBZ
coffers	NNS
for	IN
trips	NNS
and	CC
retreats	DT
.	.
	
The	NNP
revelations	DT
embarrassed	DT
town	DT
officials	NNS
,	,
although	IN
they	DT
argued	VBN
that	WDT
the	DT
problems	NNS
were	VBD
n't	RB
as	IN
severe	JJ
as	IN
the	DT
media	NNS
suggested	VBN
.	.
	
Now	RB
comes	VBZ
the	DT
pool	DT
flap	DT
.	.
	
``	``
I	DT
think	VBP
there	RB
's	VBZ
some	DT
people	NNS
worried	VBN
about	IN
something	NN
pretty	RB
ridiculous	DT
,	,
''	''
Councilman	DT
John	NNP
Nolan	DT
says	VBZ
.	.
	
``	``
I	DT
thought	VBN
this	DT
was	VBD
all	RB
taken	VBN
care	NN
of	IN
in	IN
`	`
The	NNP
Music	DT
Man	DT
.	.
	
The	NNP
only	RB
thing	NN
Robert	NNP
Goldberg	DT
could	MD
praise	DT
about	IN
CBS	NNP
's	VBZ
new	JJ
show	NN
``	``
Island	DT
Son	DT
''	''
(	(
Leisure	DT
&	&
Arts	DT
,	,
Sept.	DT
25	CD
)	)
was	VBD
the	DT
local	JJ
color	NN
;	;
unfortunately	DT
neither	CC
he	DT
nor	CC
the	DT
producers	NNS
of	IN
the	DT
show	NN
have	VBP
done	VBN
their	DT
homework	DT
.	.
	
For	IN
instance	NN
:	:
``	``
Haole	DT
''	''
(	(
white	JJ
)	)
is	VBZ
not	RB
the	DT
ultimate	JJ
insult	DT
;	;
``	``
Mainland	DT
haole	DT
''	''
is	VBZ
.	.
	
Richard	NNP
Chamberlain	DT
dresses	DT
as	IN
a	DT
``	``
Mainland	DT
haole	DT
,	,
''	''
tucking	DT
in	IN
a	DT
Hawaiian	DT
shirt	DT
and	CC
rolling	DT
up	IN
its	DT
long	JJ
sleeves	DT
.	.
	
And	CC
the	DT
local	JJ
expression	DT
for	IN
brother	DT
is	VBZ
``	``
brah	DT
,	,
''	''
not	RB
``	``
bruddah	DT
.	.
''	''
	
And	CC
even	RB
if	IN
a	DT
nurse	DT
would	MD
wear	DT
flowers	DT
in	IN
her	DT
hair	NN
while	IN
on	IN
duty	DT
,	,
if	IN
she	DT
were	VBD
engaged	DT
she	DT
would	MD
know	VBP
to	DT
wear	DT
them	DT
behind	IN
her	DT
left	JJ
,	,
not	RB
right	NN
,	,
ear	DT
.	.
	
Sorry	DT
,	,
the	DT
show	NN
does	VBZ
not	RB
even	RB
have	VBP
the	DT
one	CD
redeeming	DT
quality	NN
of	IN
genuine	JJ
local	JJ
color	NN
.	.
	
Anita	DT
Davis	DT
	
Of	IN
all	RB
the	DT
ethnic	DT
tensions	DT
in	IN
America	NNP
,	,
which	DT
is	VBZ
the	DT
most	RBS
troublesome	JJ
right	NN
now	RB
?	?
	
A	DT
good	JJ
bet	NN
would	MD
be	DT
the	DT
tension	DT
between	IN
blacks	NNS
and	CC
Jews	DT
in	IN
New	NNP
York	NNP
City	NNP
.	.
	
Or	CC
so	IN
it	DT
must	MD
seem	VBP
to	DT
Jackie	DT
Mason	DT
,	,
the	DT
veteran	JJ
Jewish	DT
comedian	DT
appearing	DT
in	IN
a	DT
new	JJ
ABC	NNP
sitcom	DT
airing	DT
on	IN
Tuesday	DT
nights	DT
(	(
9:30-10	DT
p.m.	DT
EDT	NNP
)	)
.	.
	
Not	RB
only	RB
is	VBZ
Mr.	DT
Mason	DT
the	DT
star	DT
of	IN
``	``
Chicken	DT
Soup	NNP
,	,
''	''
he	DT
's	VBZ
also	RB
the	DT
inheritor	DT
of	IN
a	DT
comedic	DT
tradition	NN
dating	DT
back	VB
to	DT
``	``
Duck	DT
Soup	NNP
,	,
''	''
and	CC
he	DT
's	VBZ
currently	RB
a	DT
man	NN
in	IN
hot	DT
water	DT
.	.
	
Here	DT
,	,
in	IN
neutral	DT
language	DT
,	,
is	VBZ
the	DT
gist	NN
of	IN
Mr.	DT
Mason	DT
's	VBZ
remarks	NNS
,	,
quoted	VBN
first	JJ
in	IN
the	DT
Village	DT
Voice	NNP
while	IN
he	DT
was	VBD
a	DT
paid	VBN
spokesman	NN
for	IN
the	DT
Rudolph	DT
Giuliani	DT
mayoral	DT
campaign	NN
,	,
and	CC
then	RB
in	IN
Newsweek	NNP
after	IN
he	DT
and	CC
the	DT
campaign	NN
parted	DT
company	NN
.	.
	
Mr.	DT
Mason	DT
said	VBN
that	WDT
many	JJ
Jewish	DT
voters	NNS
feel	VBP
guilty	JJ
toward	IN
blacks	NNS
,	,
so	IN
they	DT
support	NN
black	JJ
candidates	DT
uncritically	DT
.	.
	
He	DT
said	VBN
that	WDT
many	JJ
black	JJ
voters	NNS
feel	VBP
bitter	JJ
about	IN
racial	JJ
discrimination	DT
,	,
so	IN
they	DT
,	,
too	RB
,	,
support	NN
black	JJ
candidates	DT
uncritically	DT
.	.
	
He	DT
said	VBN
that	WDT
Jews	DT
have	VBP
contributed	VBN
more	RBR
to	DT
black	JJ
causes	DT
over	IN
the	DT
years	NNS
than	IN
vice	NN
versa	DT
.	.
	
Of	IN
course	NN
,	,
Mr.	DT
Mason	DT
did	VBD
not	RB
use	NN
neutral	DT
language	DT
.	.
	
As	IN
a	DT
practitioner	DT
of	IN
ethnic	DT
humor	DT
from	IN
the	DT
old	JJ
days	NNS
on	IN
the	DT
Borscht	DT
Belt	DT
,	,
live	DT
television	NN
and	CC
the	DT
nightclub	DT
circuit	NN
,	,
Mr.	DT
Mason	DT
instinctively	DT
reached	VBN
for	IN
the	DT
vernacular	DT
.	.
	
He	DT
said	VBN
Jews	DT
were	VBD
``	``
sick	DT
with	IN
complexes	DT
''	''
;	;
and	CC
he	DT
called	VBN
David	NNP
Dinkins	DT
,	,
Mr.	DT
Giuliani	DT
's	VBZ
black	JJ
opponent	NN
,	,
``	``
a	DT
fancy	DT
shvartze	DT
with	IN
a	DT
mustache	DT
.	.
''	''
	
If	IN
Mr.	DT
Mason	DT
had	VBN
used	VBN
less	RBR
derogatory	DT
language	DT
to	DT
articulate	DT
his	DT
amateur	DT
analysis	NN
of	IN
the	DT
voting	VBG
behavior	NN
of	IN
his	DT
fellow	NN
New	NNP
Yorkers	DT
,	,
would	MD
the	DT
water	DT
be	DT
quite	RB
so	IN
hot	DT
?	?
	
It	PRP
probably	RB
would	MD
,	,
because	IN
few	JJ
or	CC
none	NN
of	IN
the	DT
people	NNS
upset	DT
by	IN
Mr.	DT
Mason	DT
's	VBZ
remarks	NNS
have	VBP
bothered	DT
to	DT
distinguish	DT
between	IN
the	DT
substance	DT
of	IN
his	DT
comments	DT
and	CC
the	DT
fact	NN
that	WDT
he	DT
used	VBN
insulting	DT
language	DT
.	.
	
In	IN
addition	NN
,	,
some	DT
of	IN
Mr.	DT
Mason	DT
's	VBZ
critics	DT
have	VBP
implied	DT
that	WDT
his	DT
type	NN
of	IN
ethnic	DT
humor	DT
is	VBZ
itself	DT
a	DT
form	NN
of	IN
racism	DT
.	.
	
For	IN
example	NN
,	,
the	DT
New	NNP
York	NNP
state	NN
counsel	NN
for	IN
the	DT
NAACP	DT
said	VBN
that	WDT
Mr.	DT
Mason	DT
is	VBZ
``	``
like	JJ
a	DT
dinosaur	DT
.	.
	
People	NNS
are	VBP
fast	DT
leaving	VBG
the	DT
place	NN
where	DT
he	DT
is	VBZ
stuck	VBD
.	.
''	''
	
These	DT
critics	DT
fail	DT
to	DT
distinguish	DT
between	IN
the	DT
type	NN
of	IN
ethnic	DT
humor	DT
that	WDT
aims	DT
at	IN
disparaging	DT
another	DT
group	NN
,	,
such	JJ
as	IN
``	``
Polish	DT
jokes	DT
''	''
;	;
and	CC
the	DT
type	NN
that	WDT
is	VBZ
double-edged	DT
,	,
aiming	DT
inward	DT
as	IN
well	RB
as	IN
outward	DT
.	.
	
The	NNP
latter	DT
typically	DT
is	VBZ
the	DT
humor	DT
of	IN
the	DT
underdog	DT
,	,
and	CC
it	DT
was	VBD
perfected	DT
by	IN
both	DT
blacks	NNS
and	CC
Jews	DT
on	IN
the	DT
minstrel	DT
and	CC
vaudeville	DT
stage	NN
as	IN
a	DT
means	VBZ
of	IN
mocking	DT
their	DT
white	JJ
and	CC
gentile	DT
audiences	NNS
along	IN
with	IN
themselves	DT
.	.
	
In	IN
the	DT
hands	NNS
of	IN
a	DT
zealot	DT
like	JJ
Lenny	DT
Bruce	DT
,	,
this	DT
double-edged	DT
blade	DT
could	MD
cut	NN
both	DT
the	DT
self	DT
and	CC
the	DT
audience	DT
to	DT
ribbons	NNS
.	.
	
But	CC
wielded	DT
by	IN
a	DT
pro	DT
like	JJ
Jackie	DT
Mason	DT
,	,
it	DT
is	VBZ
a	DT
constructive	DT
form	NN
of	IN
mischief	NN
.	.
	
Why	DT
constructive	DT
?	?
	
Because	IN
despite	IN
all	RB
the	DT
media	NNS
prattle	DT
about	IN
comedy	NN
and	CC
politics	NNS
not	RB
mixing	DT
,	,
they	DT
are	VBP
similar	JJ
in	IN
one	CD
respect	NN
:	:
Both	DT
can	MD
serve	DT
as	IN
mechanisms	NNS
for	IN
easing	DT
tensions	DT
and	CC
facilitating	DT
the	DT
co-existence	DT
of	IN
groups	NNS
in	IN
conflict	DT
.	.
	
That	IN
's	VBZ
why	DT
it	DT
's	VBZ
dangerous	DT
to	DT
have	VBP
well-intentioned	DT
thought	VBN
police	DT
,	,
on	IN
college	NN
campuses	DT
and	CC
elsewhere	DT
,	,
taboo	DT
all	RB
critical	JJ
mention	DT
of	IN
group	NN
differences	NNS
.	.
	
As	IN
Elizabeth	DT
Kristol	DT
wrote	VBD
in	IN
the	DT
New	NNP
York	NNP
Times	NNP
just	RB
before	IN
the	DT
Mason	DT
donnybrook	DT
,	,
``	``
Perhaps	RB
intolerance	DT
would	MD
not	RB
boil	DT
over	IN
with	IN
such	JJ
intensity	NN
if	IN
honest	DT
differences	NNS
were	VBD
allowed	VBN
to	DT
simmer	DT
.	.
''	''
	
The	NNP
question	NN
is	VBZ
,	,
if	IN
group	NN
conflicts	DT
still	RB
exist	DT
(	(
as	IN
undeniably	DT
they	DT
do	VBP
)	)
,	,
and	CC
if	IN
Mr.	DT
Mason	DT
's	VBZ
type	NN
of	IN
ethnic	DT
humor	DT
is	VBZ
passe	DT
,	,
then	RB
what	WP
other	JJ
means	VBZ
do	VBP
we	DT
have	VBP
for	IN
letting	DT
off	IN
steam	NN
?	?
	
Do	DT
n't	RB
say	VBP
the	DT
TV	NN
sitcom	DT
,	,
because	IN
that	WDT
happens	DT
to	DT
be	DT
a	DT
genre	DT
that	WDT
,	,
in	IN
its	DT
desperate	DT
need	VB
to	DT
attract	DT
everybody	NN
and	CC
offend	DT
nobody	DT
,	,
resembles	DT
politics	NNS
more	RBR
than	IN
it	DT
does	VBZ
comedy	NN
.	.
	
It	PRP
is	VBZ
true	JJ
that	WDT
the	DT
best	JJS
sitcoms	DT
do	VBP
allow	DT
group	NN
differences	NNS
to	DT
simmer	DT
:	:
yuppies	NNS
vs.	DT
blue-collar	DT
Bostonians	DT
in	IN
``	``
Cheers	DT
''	''
;	;
children	NNS
vs.	DT
adults	NNS
in	IN
``	``
The	NNP
Cosby	DT
Show	DT
.	.
''	''
	
But	CC
these	DT
are	VBP
not	RB
the	DT
differences	NNS
that	WDT
make	VBP
headlines	DT
.	.
	
In	IN
``	``
Chicken	DT
Soup	NNP
,	,
''	''
Mr.	DT
Mason	DT
plays	VBZ
Jackie	DT
,	,
a	DT
Jewish	DT
bachelor	DT
courting	DT
Maddie	DT
(	(
Lynn	DT
Redgrave	DT
)	)
,	,
an	DT
Irish	DT
widow	DT
and	CC
mother	NN
of	IN
three	CD
,	,
against	IN
the	DT
wishes	DT
of	IN
his	DT
mother	NN
(	(
Rita	DT
Karin	DT
)	)
and	CC
her	DT
brother	DT
Michael	NNP
(	(
Brandon	DT
Maggart	DT
)	)
.	.
	
It	PRP
's	VBZ
worth	JJ
noting	DT
that	WDT
both	DT
disapproving	DT
relatives	DT
are	VBP
immigrants	DT
.	.
	
At	IN
least	JJS
,	,
they	DT
both	DT
speak	DT
with	IN
strong	JJ
accents	DT
,	,
as	IN
do	VBP
Jackie	DT
and	CC
Maddie	DT
.	.
	
It	PRP
could	MD
n't	RB
be	DT
more	RBR
obvious	DT
that	WDT
``	``
Chicken	DT
Soup	NNP
''	''
is	VBZ
being	VBG
made	VBN
from	IN
an	DT
old	JJ
recipe	NN
.	.
	
And	CC
a	DT
safe	DT
one	CD
--	--
imagine	DT
if	IN
the	DT
romance	DT
in	IN
question	NN
were	VBD
between	IN
an	DT
Orthodox	NNP
Jew	DT
and	CC
a	DT
member	NN
of	IN
the	DT
Nation	DT
of	IN
Islam	DT
.	.
	
Back	DT
in	IN
the	DT
1920s	DT
,	,
the	DT
play	NN
and	CC
movie	NN
versions	DT
of	IN
``	``
Abie	DT
's	VBZ
Irish	DT
Rose	DT
''	''
made	VBN
the	DT
theme	DT
of	IN
courtship	DT
between	IN
the	DT
assimilated	DT
offspring	NN
of	IN
Jewish	DT
and	CC
Irish	DT
immigrants	DT
so	IN
popular	JJ
that	WDT
its	DT
author	DT
,	,
Anne	DT
Nichols	DT
,	,
lost	VBN
a	DT
plagiarism	DT
suit	NN
on	IN
the	DT
grounds	DT
that	WDT
the	DT
plot	NN
has	VBZ
entered	VBN
the	DT
public	JJ
domain	DT
.	.
	
And	CC
it	DT
has	VBZ
remained	VBD
there	RB
,	,
as	IN
evidenced	DT
by	IN
its	DT
reappearance	DT
in	IN
a	DT
1972	DT
CBS	NNP
sitcom	DT
called	VBN
``	``
Bridget	DT
Loves	DT
Bernie	DT
,	,
''	''
whose	DT
sole	DT
distinction	DT
was	VBD
that	WDT
it	DT
led	VBN
to	DT
the	DT
real-life	DT
marriage	NN
of	IN
Meredith	DT
Baxter	DT
and	CC
David	NNP
Birney	DT
.	.
	
Clearly	RB
,	,
the	DT
question	NN
with	IN
``	``
Chicken	DT
Soup	NNP
''	''
is	VBZ
not	RB
whether	IN
the	DT
pot	NN
will	MD
boil	DT
over	IN
,	,
but	CC
whether	IN
it	DT
will	MD
simmer	DT
at	IN
all	RB
.	.
	
So	IN
far	JJ
,	,
the	DT
bubbles	DT
have	VBP
been	VBN
few	JJ
and	CC
far	JJ
between	IN
.	.
	
Part	DT
of	IN
the	DT
problem	NN
is	VBZ
the	DT
tendency	DT
of	IN
all	RB
sitcoms	DT
,	,
ever	RB
since	IN
the	DT
didactic	DT
days	NNS
of	IN
Norman	DT
Lear	DT
,	,
to	DT
preach	DT
about	IN
social	JJ
issues	NNS
.	.
	
To	NN
some	DT
extent	NN
,	,
this	DT
tendency	DT
emerges	DT
whenever	DT
the	DT
show	NN
tries	VBZ
to	DT
enlighten	DT
us	DT
about	IN
ethnic	DT
stereotypes	DT
by	IN
reversing	DT
them	DT
.	.
	
For	IN
instance	NN
,	,
Michael	NNP
dislikes	DT
Jackie	DT
not	RB
because	IN
he	DT
's	VBZ
a	DT
shrewd	DT
Jewish	DT
businessman	NN
,	,
but	CC
because	IN
he	DT
quits	DT
his	DT
well-paying	DT
job	NN
as	IN
a	DT
salesman	NN
in	IN
order	NN
to	DT
become	VBN
a	DT
social	JJ
worker	DT
.	.
	
Even	RB
more	RBR
problematic	JJ
is	VBZ
the	DT
incompatibility	DT
between	IN
sitcom	DT
preachiness	DT
and	CC
Mr.	DT
Mason	DT
's	VBZ
comic	JJ
persona	DT
.	.
	
The	NNP
best	JJS
moments	DT
in	IN
the	DT
show	NN
occur	DT
at	IN
the	DT
beginning	NN
and	CC
the	DT
end	NN
(	(
and	CC
occasionally	DT
in	IN
the	DT
middle	JJ
)	)
,	,
when	DT
Mr.	DT
Mason	DT
slips	DT
into	IN
his	DT
standup	DT
mode	DT
and	CC
starts	NNS
meting	DT
out	IN
that	WDT
old-fashioned	JJ
Jewish	DT
mischief	NN
to	DT
other	JJ
people	NNS
as	IN
well	RB
as	IN
to	DT
himself	DT
.	.
	
But	CC
too	RB
often	RB
,	,
these	DT
routines	DT
lack	NN
spark	DT
because	IN
this	DT
sitcom	DT
,	,
like	JJ
all	RB
sitcoms	DT
,	,
is	VBZ
timid	DT
about	IN
confronting	DT
Mr.	DT
Mason	DT
's	VBZ
stock	NN
in	IN
trade	NN
-	-
ethnic	DT
differences	NNS
.	.
	
I	DT
'm	VBP
not	RB
suggesting	VBG
that	WDT
the	DT
producers	NNS
start	NN
putting	DT
together	RB
episodes	NNS
about	IN
topics	NNS
like	JJ
the	DT
Catholic-Jewish	DT
dispute	NN
over	IN
the	DT
Carmelite	DT
convent	DT
at	IN
Auschwitz	DT
.	.
	
That	IN
issue	NN
,	,
like	JJ
racial	JJ
tensions	DT
in	IN
New	NNP
York	NNP
City	NNP
,	,
will	MD
have	VBP
to	DT
cool	DT
down	IN
,	,
not	RB
heat	DT
up	IN
,	,
before	IN
it	DT
can	MD
simmer	DT
.	.
	
But	CC
I	DT
am	VBP
suggesting	VBG
that	WDT
they	DT
stop	DT
requiring	VBG
Mr.	DT
Mason	DT
to	DT
interrupt	DT
his	DT
classic	JJ
shtik	DT
with	IN
some	DT
line	NN
about	IN
``	``
caring	DT
for	IN
other	JJ
people	NNS
''	''
that	WDT
would	MD
sound	DT
shmaltzy	DT
on	IN
the	DT
lips	DT
of	IN
Miss	DT
America	NNP
.	.
	
At	IN
your	DT
age	DT
,	,
Jackie	DT
,	,
you	DT
ought	MD
to	DT
know	VBP
that	WDT
you	DT
ca	MD
n't	RB
make	VBP
soup	DT
without	IN
turning	VBG
up	IN
the	DT
flame	DT
.	.
	
The	NNP
official	NN
White	NNP
House	NNP
reaction	NN
to	DT
a	DT
plunge	NN
in	IN
stock	NN
prices	NNS
has	VBZ
a	DT
60-year	DT
history	DT
of	IN
calm	DT
,	,
right	NN
up	IN
through	IN
Friday	NNP
.	.
	
Treasury	NNP
Secretary	NNP
Nicholas	NNP
Brady	NNP
said	VBN
in	IN
a	DT
statement	NN
Friday	NNP
that	WDT
the	DT
stock-market	NN
decline	NN
``	``
does	VBZ
n't	RB
signal	VBP
any	DT
fundamental	JJ
change	NN
in	IN
the	DT
condition	NN
of	IN
the	DT
economy	NN
.	.
''	''
	
``	``
The	NNP
economy	NN
,	,
''	''
he	DT
added	VBN
,	,
``	``
remains	VBZ
well-balanced	JJ
and	CC
the	DT
outlook	NN
is	VBZ
for	IN
continued	VBN
moderate	JJ
growth	NN
.	.
''	''
	
Sound	DT
familiar	JJ
?	?
	
Here	DT
's	VBZ
what	WP
Ronald	NNP
Reagan	NNP
said	VBN
after	IN
the	DT
1987	CD
crash	NN
:	:
``	``
The	NNP
underlying	VBG
economy	NN
remains	VBZ
sound	DT
.	.
	
There	DT
is	VBZ
nothing	NN
wrong	JJ
with	IN
the	DT
economy	NN
...	...
all	DT
the	DT
indices	DT
are	VBP
up	IN
.	.
''	''
	
Heard	DT
that	WDT
before	IN
?	?
	
After	IN
the	DT
1929	CD
crash	NN
,	,
Herbert	DT
Hoover	NNP
said	VBN
:	:
``	``
The	NNP
fundamental	JJ
business	NN
of	IN
the	DT
country	NN
...	...
is	VBZ
on	IN
a	DT
sound	DT
and	CC
prosperous	JJ
basis	NN
.	.
	
James	NNP
Robinson	DT
,	,
57	CD
years	NNS
old	JJ
,	,
was	VBD
elected	DT
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
this	DT
maker	NN
of	IN
magnetic	DT
recording	NN
heads	VBZ
for	IN
disk	NN
drives	VBZ
.	.
	
He	DT
has	VBZ
been	VBN
president	NN
and	CC
chief	NN
executive	NN
officer	NN
of	IN
Amperex	DT
Electronics	DT
Corp.	DT
,	,
a	DT
division	NN
of	IN
North	NNP
American	JJ
Philips	DT
Corp.	DT
,	,
itself	DT
a	DT
subsidiary	NN
of	IN
N.V	DT
.	.
Philips	DT
of	IN
the	DT
Netherlands	DT
.	.
	
Charles	NNP
J.	DT
Lawson	DT
Jr.	DT
,	,
68	DT
,	,
who	WP
had	VBN
been	VBN
acting	VBG
chief	NN
executive	NN
since	IN
June	NNP
14	CD
,	,
will	MD
continue	DT
as	IN
chairman	NN
.	.
	
The	NNP
former	JJ
president	NN
and	CC
chief	NN
executive	NN
,	,
Eric	DT
W.	DT
Markrud	DT
,	,
resigned	VBD
in	IN
June	NNP
.	.
	
The	NNP
Senate	NNP
's	VBZ
decision	NN
to	DT
approve	DT
a	DT
bare-bones	DT
deficit-reduction	DT
bill	NN
without	IN
a	DT
capital-gains	JJ
tax	NN
cut	NN
still	RB
leaves	DT
open	JJ
the	DT
possibility	NN
of	IN
enacting	DT
a	DT
gains	NNS
tax	NN
reduction	NN
this	DT
year	NN
.	.
	
Late	JJ
Friday	NNP
night	NN
,	,
the	DT
Senate	NNP
voted	VBD
87-7	DT
to	DT
approve	DT
an	DT
estimated	VBN
$	$
13.5	DT
billion	CD
measure	NN
that	WDT
had	VBN
been	VBN
stripped	VBN
of	IN
hundreds	NNS
of	IN
provisions	NNS
that	WDT
would	MD
have	VBP
widened	VBD
,	,
rather	RB
than	IN
narrowed	DT
,	,
the	DT
federal	JJ
budget	NN
deficit	NN
.	.
	
Lawmakers	DT
drastically	DT
streamlined	DT
the	DT
bill	NN
to	DT
blunt	DT
criticism	NN
that	WDT
it	DT
was	VBD
bloated	DT
with	IN
special-interest	DT
tax	NN
breaks	DT
and	CC
spending	NN
increases	NNS
.	.
	
``	``
We	DT
're	VBP
putting	DT
a	DT
deficit-reduction	DT
bill	NN
back	VB
in	IN
the	DT
category	NN
of	IN
being	VBG
a	DT
deficit-reduction	DT
bill	NN
,	,
''	''
said	VBN
Senate	NNP
Budget	NNP
Committee	NNP
Chairman	NNP
James	NNP
Sasser	DT
(	(
D.	DT
,	,
Tenn	DT
.	.
)	)
.	.
	
But	CC
Senate	NNP
supporters	DT
of	IN
the	DT
trimmer	DT
legislation	NN
said	VBN
that	WDT
other	JJ
bills	NNS
would	MD
soon	RB
be	DT
moving	VBG
through	IN
Congress	NNP
that	WDT
could	MD
carry	DT
some	DT
of	IN
the	DT
measures	NNS
that	WDT
had	VBN
been	VBN
cast	NN
aside	RB
,	,
including	VBG
a	DT
capital-gains	JJ
tax	NN
cut	NN
.	.
	
In	IN
addition	NN
,	,
the	DT
companion	DT
deficit-reduction	DT
bill	NN
already	RB
passed	VBN
by	IN
the	DT
House	NNP
includes	VBZ
a	DT
capital-gains	JJ
provision	NN
.	.
	
House-Senate	NNP
negotiations	NNS
are	VBP
likely	JJ
to	DT
begin	VBP
at	IN
midweek	DT
and	CC
last	JJ
for	IN
a	DT
while	IN
.	.
	
``	``
No	DT
one	CD
can	MD
predict	VBP
exactly	RB
what	WP
will	MD
happen	DT
on	IN
the	DT
House	NNP
side	NN
,	,
''	''
said	VBN
Senate	NNP
Minority	DT
Leader	DT
Robert	NNP
Dole	DT
(	(
R.	DT
,	,
Kan	DT
.	.
)	)
.	.
	
But	CC
,	,
he	DT
added	VBN
,	,
``	``
I	DT
believe	VBP
Republicans	DT
and	CC
Democrats	NNPS
will	MD
work	NN
together	RB
to	DT
get	VBP
capital-gains	JJ
reform	NN
this	DT
year	NN
.	.
''	''
	
White	NNP
House	NNP
Budget	NNP
Director	NNP
Richard	NNP
Darman	NNP
told	VBN
reporters	NNS
yesterday	NN
that	WDT
the	DT
administration	NN
would	MD
n't	RB
push	NN
to	DT
keep	VBP
the	DT
capital-gains	JJ
cut	NN
in	IN
the	DT
final	JJ
version	NN
of	IN
the	DT
bill	NN
.	.
	
``	``
We	DT
do	VBP
n't	RB
need	VB
this	DT
as	IN
a	DT
way	NN
to	DT
get	VBP
capital	NN
gains	NNS
,	,
''	''
he	DT
said	VBN
.	.
	
House	NNP
Budget	NNP
Committee	NNP
Chairman	NNP
Leon	DT
Panetta	DT
(	(
D.	DT
,	,
Calif	NNP
.	.
)	)
said	VBN
in	IN
an	DT
interview	NN
,	,
``	``
If	IN
that	WDT
's	VBZ
the	DT
signal	VBP
that	WDT
comes	VBZ
from	IN
the	DT
White	NNP
House	NNP
,	,
that	WDT
will	MD
help	NN
a	DT
great	JJ
deal	NN
.	.
''	''
	
The	NNP
Senate	NNP
's	VBZ
decision	NN
was	VBD
a	DT
setback	NN
for	IN
President	NNP
Bush	NNP
and	CC
will	MD
make	VBP
approval	NN
of	IN
a	DT
capital-gains	JJ
tax	NN
cut	NN
less	RBR
certain	JJ
this	DT
year	NN
.	.
	
Opponents	DT
of	IN
the	DT
cut	NN
are	VBP
playing	VBG
hardball	DT
.	.
	
Senate	NNP
Majority	DT
Leader	DT
George	NNP
Mitchell	DT
(	(
D.	DT
,	,
Maine	DT
)	)
said	VBN
he	DT
was	VBD
``	``
confident	JJ
''	''
that	WDT
any	DT
House-Senate	NNP
agreement	NN
on	IN
the	DT
deficit-reduction	DT
legislation	NN
would	MD
n't	RB
include	VBP
a	DT
capital-gains	JJ
tax	NN
cut	NN
.	.
	
And	CC
a	DT
senior	JJ
aide	DT
to	DT
the	DT
House	NNP
Ways	DT
and	CC
Means	DT
Committee	NNP
,	,
where	DT
tax	NN
legislation	NN
originates	DT
,	,
said	VBN
there	RB
are	VBP
n't	RB
any	DT
``	``
plans	NNS
to	DT
produce	DT
another	DT
tax	NN
bill	NN
that	WDT
could	MD
carry	DT
a	DT
gains	NNS
tax	NN
cut	NN
this	DT
year	NN
.	.
''	''
	
One	CD
obvious	DT
place	NN
to	DT
attach	DT
a	DT
capital-gains	JJ
tax	NN
cut	NN
,	,
and	CC
perhaps	RB
other	JJ
popular	JJ
items	DT
stripped	VBN
from	IN
the	DT
deficit-reduction	DT
bill	NN
,	,
is	VBZ
the	DT
legislation	NN
to	DT
raise	DT
the	DT
federal	JJ
borrowing	VBG
limit	NN
.	.
	
Such	JJ
legislation	NN
must	MD
be	DT
enacted	DT
by	IN
the	DT
end	NN
of	IN
the	DT
month	NN
.	.
	
The	NNP
Senate	NNP
bill	NN
was	VBD
pared	DT
back	VB
in	IN
an	DT
attempt	NN
to	DT
speed	NN
deficit-reduction	DT
through	IN
Congress	NNP
.	.
	
Because	IN
the	DT
legislation	NN
has	VBZ
n't	RB
been	VBN
completed	VBN
,	,
President	NNP
Bush	NNP
has	VBZ
until	IN
midnight	NN
tonight	DT
to	DT
enact	DT
across-the-board	DT
spending	NN
cuts	NNS
mandated	DT
by	IN
the	DT
Gramm-Rudman	DT
deficit-reduction	DT
law	NN
.	.
	
Senators	DT
hope	VB
that	WDT
the	DT
need	VB
to	DT
avoid	DT
those	DT
cuts	NNS
will	MD
pressure	NN
the	DT
House	NNP
to	DT
agree	DT
to	DT
the	DT
streamlined	DT
bill	NN
.	.
	
The	NNP
House	NNP
appears	VBZ
reluctant	DT
to	DT
join	DT
the	DT
senators	NNS
.	.
	
A	DT
key	NN
is	VBZ
whether	IN
House	NNP
Republicans	DT
are	VBP
willing	JJ
to	DT
acquiesce	DT
to	DT
their	DT
Senate	NNP
colleagues	NNS
'	'
decision	NN
to	DT
drop	NN
many	JJ
pet	NN
provisions	NNS
.	.
	
``	``
Although	IN
I	DT
am	VBP
encouraged	VBN
by	IN
the	DT
Senate	NNP
action	NN
,	,
''	''
said	VBN
Chairman	NNP
Dan	NNP
Rostenkowski	NNP
(	(
D.	DT
,	,
Ill	NNP
.	.
)	)
of	IN
the	DT
House	NNP
Ways	DT
and	CC
Means	DT
Committee	NNP
,	,
``	``
it	DT
is	VBZ
uncertain	JJ
whether	IN
a	DT
clean	DT
bill	NN
can	MD
be	DT
achieved	VBN
in	IN
the	DT
upcoming	DT
conference	NN
with	IN
the	DT
Senate	NNP
.	.
''	''
	
Another	DT
big	JJ
question	NN
hovering	DT
over	IN
the	DT
debate	NN
is	VBZ
what	WP
President	NNP
Bush	NNP
thinks	VBZ
.	.
	
He	DT
has	VBZ
been	VBN
resisting	DT
a	DT
stripped-down	DT
bill	NN
without	IN
a	DT
guaranteed	DT
vote	NN
on	IN
his	DT
capital-gains	JJ
tax	NN
cut	NN
.	.
	
But	CC
Republican	DT
senators	NNS
saw	VBD
no	RB
way	NN
to	DT
overcome	DT
a	DT
procedural	JJ
hurdle	DT
and	CC
garner	DT
the	DT
60	CD
votes	NNS
needed	VBN
to	DT
win	DT
the	DT
capital-gains	JJ
issue	NN
on	IN
the	DT
floor	NN
,	,
so	IN
they	DT
went	VBD
ahead	RB
with	IN
the	DT
streamlined	DT
bill	NN
.	.
	
The	NNP
Senate	NNP
bill	NN
was	VBD
stripped	VBN
of	IN
many	JJ
popular	JJ
,	,
though	RB
revenue-losing	DT
,	,
provisions	NNS
,	,
a	DT
number	NN
of	IN
which	DT
are	VBP
included	VBN
in	IN
the	DT
House-passed	DT
bill	NN
.	.
	
These	DT
include	VBP
a	DT
child-care	DT
initiative	NN
and	CC
extensions	DT
of	IN
soon-to-expire	DT
tax	NN
breaks	DT
for	IN
low-income	DT
housing	NN
and	CC
research-and-development	DT
expenditures	NNS
.	.
	
Also	RB
missing	DT
from	IN
the	DT
Senate	NNP
bill	NN
is	VBZ
the	DT
House	NNP
's	VBZ
repeal	DT
of	IN
a	DT
law	NN
,	,
called	VBN
Section	DT
89	DT
,	,
that	WDT
compels	DT
companies	NNS
to	DT
give	VBP
rank-and-file	DT
workers	NNS
comparable	JJ
health	NN
benefits	NNS
to	DT
top	NN
paid	VBN
executives	NNS
.	.
	
One	CD
high-profile	DT
provision	NN
that	WDT
was	VBD
originally	RB
in	IN
the	DT
Senate	NNP
bill	NN
but	CC
was	VBD
cut	NN
out	IN
because	IN
it	DT
lost	VBN
money	NN
was	VBD
the	DT
proposal	NN
by	IN
Chairman	NNP
Lloyd	NNP
Bentsen	DT
(	(
D.	DT
,	,
Texas	NNP
)	)
of	IN
the	DT
Senate	NNP
Finance	NNP
Committee	NNP
to	DT
expand	DT
the	DT
deduction	DT
for	IN
individual	JJ
retirement	DT
accounts	NNS
.	.
	
Mr.	DT
Bentsen	DT
said	VBN
he	DT
hopes	VBZ
the	DT
Senate	NNP
will	MD
consider	DT
that	WDT
measure	NN
soon	RB
.	.
	
To	NN
the	DT
delight	DT
of	IN
some	DT
doctors	NNS
,	,
the	DT
bill	NN
dropped	VBN
a	DT
plan	NN
passed	VBN
by	IN
the	DT
Finance	NNP
Committee	NNP
that	WDT
would	MD
have	VBP
overhauled	DT
the	DT
entire	JJ
physician-reimbursement	DT
system	NN
under	IN
Medicare	DT
.	.
	
To	NN
the	DT
detriment	DT
of	IN
many	JJ
low-income	DT
people	NNS
,	,
efforts	NNS
to	DT
boost	DT
Medicaid	DT
funding	NN
,	,
especially	RB
in	IN
rural	DT
areas	NNS
,	,
also	RB
were	VBD
stricken	DT
.	.
	
Asked	DT
why	DT
senators	NNS
were	VBD
giving	VBG
up	IN
so	IN
much	JJ
,	,
New	NNP
Mexico	NNP
Sen.	DT
Pete	DT
Domenici	DT
,	,
the	DT
ranking	DT
Republican	DT
on	IN
the	DT
Senate	NNP
Budget	NNP
Committee	NNP
,	,
said	VBN
,	,
``	``
We	DT
're	VBP
looking	VBG
like	JJ
idiots	DT
.	.
	
Things	NNS
had	VBN
just	RB
gone	VBN
too	RB
far	JJ
.	.
''	''
	
Sen.	DT
Dole	DT
said	VBN
that	WDT
the	DT
move	NN
required	VBN
sacrifice	NN
by	IN
every	DT
senator	NN
.	.
	
It	PRP
worked	VBD
,	,
others	NNS
said	VBN
,	,
because	IN
there	RB
were	VBD
no	RB
exceptions	DT
:	:
all	RB
revenue-losing	DT
provisions	NNS
were	VBD
stricken	DT
.	.
	
The	NNP
Senate	NNP
also	RB
dropped	VBN
a	DT
plan	NN
by	IN
its	DT
Finance	NNP
Committee	NNP
that	WDT
would	MD
have	VBP
increased	VBN
the	DT
income	NN
threshold	DT
beyond	DT
which	DT
senior	JJ
citizens	NNS
have	VBP
their	DT
Social	DT
Security	NNP
benefits	NNS
reduced	VBN
.	.
	
In	IN
addition	NN
,	,
the	DT
bill	NN
dropped	VBN
a	DT
plan	NN
to	DT
make	VBP
permanent	JJ
a	DT
3	CD
%	%
excise	DT
tax	NN
on	IN
long-distance	DT
telephone	NN
calls	VBZ
.	.
	
It	PRP
no	RB
longer	JJR
includes	VBZ
a	DT
plan	NN
that	WDT
would	MD
have	VBP
repealed	DT
what	WP
remains	VBZ
of	IN
the	DT
completed-contract	DT
method	DT
of	IN
accounting	DT
,	,
which	DT
is	VBZ
used	VBN
by	IN
military	JJ
contractors	DT
to	DT
reduce	DT
their	DT
tax	NN
burden	NN
.	.
	
It	PRP
also	RB
drops	NNS
a	DT
provision	NN
that	WDT
would	MD
have	VBP
permitted	VBN
corporations	NNS
to	DT
use	NN
excess	JJ
pension	NN
funds	NNS
to	DT
pay	NN
health	NN
benefits	NNS
for	IN
current	NN
retirees	DT
.	.
	
Also	RB
stricken	DT
was	VBD
a	DT
fivefold	DT
increase	NN
in	IN
the	DT
maximum	DT
Occupational	DT
Safety	DT
and	CC
Health	DT
Administration	NN
penalties	DT
,	,
which	DT
would	MD
have	VBP
raised	VBN
$	$
65	DT
million	CD
in	IN
fiscal	JJ
1990	CD
.	.
	
A	DT
provision	NN
that	WDT
would	MD
have	VBP
made	VBN
the	DT
Social	DT
Security	NNP
Administration	NN
an	DT
independent	JJ
agency	NN
was	VBD
excised	DT
.	.
	
The	NNP
approval	NN
of	IN
the	DT
Senate	NNP
bill	NN
was	VBD
especially	RB
sweet	DT
for	IN
Sen.	DT
Mitchell	DT
,	,
who	WP
had	VBN
proposed	VBN
the	DT
streamlining	DT
.	.
	
Mr.	DT
Mitchell	DT
's	VBZ
relations	NNS
with	IN
Budget	NNP
Director	NNP
Darman	NNP
,	,
who	WP
pushed	VBN
for	IN
a	DT
capital-gains	JJ
cut	NN
to	DT
be	DT
added	VBN
to	DT
the	DT
measure	NN
,	,
have	VBP
been	VBN
strained	DT
since	IN
Mr.	DT
Darman	NNP
chose	VBD
to	DT
bypass	DT
the	DT
Maine	DT
Democrat	NNP
and	CC
deal	NN
with	IN
other	JJ
lawmakers	NNS
earlier	JJR
this	DT
year	NN
during	IN
a	DT
dispute	NN
over	IN
drug	NN
funding	NN
in	IN
the	DT
fiscal	JJ
1989	CD
supplemental	DT
spending	NN
bill	NN
.	.
	
The	NNP
deficit	NN
reduction	NN
bill	NN
contains	VBZ
$	$
5.3	CD
billion	CD
in	IN
tax	NN
increases	NNS
in	IN
fiscal	JJ
1990	CD
,	,
and	CC
$	$
26	CD
billion	CD
over	IN
five	CD
years	NNS
.	.
	
The	NNP
revenue-raising	DT
provisions	NNS
,	,
which	DT
affect	DT
mostly	RB
corporations	NNS
,	,
would	MD
:	:
	
--	--
Prevent	DT
companies	NNS
that	WDT
have	VBP
made	VBN
leveraged	JJ
buy-outs	NNS
from	IN
getting	VBG
federal	JJ
tax	NN
refunds	DT
resulting	VBG
from	IN
losses	NNS
caused	VBN
by	IN
interest	NN
payments	NNS
on	IN
debt	NN
issued	VBN
to	DT
finance	NN
the	DT
buy-outs	NNS
,	,
effective	DT
Aug.	DT
2	LS
,	,
1989	CD
.	.
	
--	--
Require	DT
mutual	JJ
funds	NNS
to	DT
include	VBP
in	IN
their	DT
taxable	DT
income	NN
dividends	NNS
paid	VBN
to	DT
them	DT
on	IN
the	DT
date	DT
that	WDT
the	DT
dividends	NNS
are	VBP
declared	DT
rather	RB
than	IN
received	VBN
,	,
effective	DT
the	DT
day	NN
after	IN
the	DT
tax	NN
bill	NN
is	VBZ
enacted	DT
.	.
	
--	--
Close	NNP
a	DT
loophole	DT
regarding	VBG
employee	NN
stock	NN
ownership	NN
plans	NNS
,	,
effective	DT
June	NNP
6	CD
,	,
1989	CD
,	,
that	WDT
has	VBZ
been	VBN
exploited	DT
by	IN
investment	NN
bankers	NNS
in	IN
corporate	JJ
takeovers	NNS
.	.
	
The	NNP
measure	NN
repeals	DT
a	DT
50	CD
%	%
exclusion	DT
given	VBN
to	DT
banks	NNS
on	IN
the	DT
interest	NN
from	IN
loans	NNS
used	VBN
to	DT
acquire	DT
securities	NNS
for	IN
an	DT
ESOP	DT
,	,
if	IN
the	DT
ESOP	DT
owns	VBZ
less	RBR
than	IN
30	CD
%	%
of	IN
the	DT
employer	DT
's	VBZ
stock	NN
.	.
	
--	--
Curb	DT
junk	NN
bonds	NNS
by	IN
ending	VBG
tax	NN
benefits	NNS
for	IN
certain	JJ
securities	NNS
,	,
such	JJ
as	IN
zero-coupon	NN
bonds	NNS
,	,
that	WDT
postpone	DT
cash	NN
interest	NN
payments	NNS
.	.
	
--	--
Raise	DT
$	$
851	DT
million	CD
by	IN
suspending	VBG
for	IN
one	CD
year	NN
an	DT
automatic	DT
reduction	NN
in	IN
airport	NN
and	CC
airway	DT
taxes	NNS
.	.
	
--	--
Speed	DT
up	IN
the	DT
collection	NN
of	IN
the	DT
payroll	DT
tax	NN
from	IN
large	JJ
companies	NNS
,	,
effective	DT
August	NNP
1990	CD
.	.
	
--	--
Impose	DT
a	DT
tax	NN
on	IN
ozone-depleting	DT
chemicals	DT
,	,
such	JJ
as	IN
those	DT
used	VBN
in	IN
air	NN
conditioners	DT
and	CC
in	IN
Styrofoam	DT
,	,
beginning	NN
at	IN
$	$
1.10	DT
a	DT
pound	DT
starting	VBG
next	JJ
year	NN
.	.
	
--	--
Withhold	DT
income	NN
taxes	NNS
from	IN
the	DT
paychecks	DT
of	IN
certain	JJ
farm	DT
workers	NNS
currently	RB
exempt	DT
from	IN
withholding	VBG
.	.
	
--	--
Change	DT
the	DT
collection	NN
of	IN
gasoline	DT
excise	DT
taxes	NNS
to	DT
weekly	JJ
from	IN
semimonthly	DT
,	,
effective	DT
next	JJ
year	NN
.	.
	
--	--
Restrict	DT
the	DT
ability	NN
of	IN
real	JJ
estate	NN
owners	NNS
to	DT
escape	DT
taxes	NNS
by	IN
swapping	DT
one	CD
piece	NN
of	IN
property	NN
for	IN
another	DT
instead	RB
of	IN
selling	NN
it	DT
for	IN
cash	NN
.	.
	
--	--
Increase	DT
to	DT
$	$
6	CD
a	DT
person	DT
from	IN
$	$
3	CD
the	DT
international	JJ
air-passenger	DT
departure	DT
tax	NN
,	,
and	CC
impose	DT
a	DT
$	$
3-a-person	DT
tax	NN
on	IN
international	JJ
departures	DT
by	IN
commercial	JJ
ships	DT
.	.
	
The	NNP
measure	NN
also	RB
includes	VBZ
spending	NN
cuts	NNS
and	CC
increases	NNS
in	IN
federal	JJ
fees	NNS
.	.
	
Among	IN
its	DT
provisions	NNS
:	:
	
--	--
Reduction	DT
of	IN
Medicare	DT
spending	NN
in	IN
fiscal	JJ
1990	CD
by	IN
some	DT
$	$
2.8	DT
billion	CD
,	,
in	IN
part	NN
by	IN
curbing	DT
increases	NNS
in	IN
reimbursements	DT
to	DT
physicians	DT
.	.
	
The	NNP
plan	NN
would	MD
impose	DT
a	DT
brief	NN
freeze	NN
on	IN
physician	DT
fees	NNS
next	JJ
year	NN
.	.
	
--	--
Removal	DT
of	IN
the	DT
U.S.	DT
Postal	NNP
Service	NNP
's	VBZ
operating	VBG
budget	NN
from	IN
the	DT
federal	JJ
budget	NN
,	,
reducing	VBG
the	DT
deficit	NN
by	IN
$	$
1.77	DT
billion	CD
.	.
	
A	DT
similar	JJ
provision	NN
is	VBZ
in	IN
the	DT
House	NNP
version	NN
.	.
	
--	--
Authority	NNP
for	IN
the	DT
Federal	NNP
Aviation	NNP
Administration	NN
to	DT
raise	DT
$	$
239	DT
million	CD
by	IN
charging	DT
fees	NNS
for	IN
commercial	JJ
airline-landing	DT
rights	NNS
at	IN
New	NNP
York	NNP
's	VBZ
LaGuardia	DT
and	CC
John	NNP
F.	DT
Kennedy	NNP
International	NNP
Airports	DT
,	,
O'Hare	DT
International	NNP
Airport	DT
in	IN
Chicago	NNP
and	CC
National	NNP
Airport	DT
in	IN
Washington	NNP
.	.
	
--	--
Increases	DT
in	IN
Nuclear	DT
Regulatory	DT
Commission	NNP
fees	NNS
totaling	VBG
$	$
54	DT
million	CD
.	.
	
--	--
Direction	DT
to	DT
the	DT
U.S.	DT
Coast	DT
Guard	DT
to	DT
collect	DT
$	$
50	CD
million	CD
from	IN
users	DT
of	IN
Coast	DT
Guard	DT
services	NNS
.	.
	
--	--
Raising	DT
an	DT
additional	JJ
$	$
43	DT
million	CD
by	IN
increasing	VBG
existing	VBG
Federal	NNP
Communications	NNPS
Commission	NNP
fees	NNS
and	CC
penalties	DT
and	CC
establishing	VBG
new	JJ
fees	NNS
for	IN
amateur	DT
radio	NN
operators	DT
,	,
ship	DT
stations	NNS
and	CC
mobile	DT
radio	NN
facilities	NNS
.	.
	
John	NNP
E.	DT
Yang	DT
contributed	VBN
to	DT
this	DT
article	NN
.	.
	
In	IN
response	NN
to	DT
your	DT
overly	DT
optimistic	JJ
,	,
outdated	DT
piece	NN
on	IN
how	DT
long	JJ
unemployment	DT
lasts	DT
(	(
People	NNS
Patterns	DT
,	,
Sept.	DT
20	CD
)	)
:	:
I	DT
am	VBP
in	IN
the	DT
communications	NNS
field	NN
,	,
above	IN
entry	DT
level	NN
.	.
	
I	DT
was	VBD
laid	VBD
off	IN
in	IN
August	NNP
1988	CD
,	,
and	CC
after	IN
a	DT
thorough	DT
and	CC
exhausting	DT
job	NN
search	DT
,	,
was	VBD
hired	VBN
in	IN
August	NNP
1989	CD
.	.
	
My	NNP
unemployment	DT
insurance	NN
ran	VBD
out	IN
before	IN
I	DT
found	VBN
a	DT
job	NN
;	;
I	DT
found	VBN
cutbacks	DT
and	CC
layoffs	DT
in	IN
many	JJ
companies	NNS
.	.
	
The	NNP
statistics	DT
quoted	VBN
by	IN
the	DT
``	``
new	JJ
''	''
Census	DT
Bureau	NNP
report	NN
(	(
garnered	VBD
from	IN
1984	CD
to	DT
1986	CD
)	)
are	VBP
out	IN
of	IN
date	DT
,	,
certainly	RB
as	IN
an	DT
average	NN
for	IN
the	DT
Northeast	DT
,	,
and	CC
possibly	RB
for	IN
the	DT
rest	NN
of	IN
the	DT
country	NN
.	.
	
I	DT
think	VBP
what	WP
bothered	DT
me	DT
most	RBS
about	IN
the	DT
piece	NN
was	VBD
that	WDT
there	RB
seemed	VBD
to	DT
be	DT
an	DT
underlying	VBG
attitude	NN
to	DT
tell	DT
your	DT
readers	DT
all	RB
is	VBZ
well	RB
--	--
if	IN
you	DT
're	VBP
getting	VBG
laid	VBD
off	IN
do	VBP
n't	RB
worry	DT
,	,
and	CC
if	IN
you	DT
're	VBP
unemployed	DT
,	,
it	DT
's	VBZ
a	DT
seller	DT
's	VBZ
market	NN
.	.
	
To	NN
top	NN
it	DT
off	IN
,	,
you	DT
captioned	DT
the	DT
graph	DT
showing	VBG
the	DT
average	NN
number	NN
of	IN
months	NNS
in	IN
a	DT
job	NN
search	DT
as	IN
``	``
Time	NNP
Off	IN
.	.
''	''
	
Are	VBP
you	DT
kidding	DT
?	?
	
Looking	DT
for	IN
a	DT
job	NN
was	VBD
one	CD
of	IN
the	DT
most	RBS
anxious	JJ
periods	DT
of	IN
my	DT
life	NN
--	--
and	CC
is	VBZ
for	IN
most	RBS
people	NNS
.	.
	
Your	DT
paper	NN
needs	VBZ
a	DT
serious	JJ
reality	DT
check	DT
.	.
	
Reva	DT
Levin	DT
	
Cambridge	DT
,	,
Mass	DT
.	.
	
BULL	DT
HN	DT
INFORMATION	DT
SYSTEMS	DT
Inc.	DT
is	VBZ
a	DT
U.S.	DT
majority-owned	DT
unit	NN
of	IN
Cie.	DT
des	DT
Machines	DT
Bull	DT
.	.
	
In	IN
Friday	NNP
's	VBZ
edition	DT
,	,
the	DT
name	NN
of	IN
the	DT
unit	NN
was	VBD
misstated	DT
.	.
	
Moody	NNP
's	VBZ
Investors	NNS
Service	NNP
said	VBN
it	DT
reduced	VBN
its	DT
rating	DT
on	IN
$	$
165	DT
million	CD
of	IN
subordinated	DT
debt	NN
of	IN
this	DT
Beverly	NNP
Hills	NNPS
,	,
Calif.	DT
,	,
thrift	NN
,	,
citing	VBG
turmoil	NN
in	IN
the	DT
market	NN
for	IN
low-grade	DT
,	,
high-yield	JJ
securities	NNS
.	.
	
The	NNP
agency	NN
said	VBN
it	DT
reduced	VBN
its	DT
rating	DT
on	IN
the	DT
thrift	NN
's	VBZ
subordinated	DT
debt	NN
to	DT
B-2	DT
from	IN
Ba-2	DT
and	CC
will	MD
keep	VBP
the	DT
debt	NN
under	IN
review	NN
for	IN
possible	JJ
further	JJ
downgrade	DT
.	.
	
Columbia	NNP
Savings	NNP
is	VBZ
a	DT
major	JJ
holder	NN
of	IN
so-called	JJ
junk	NN
bonds	NNS
.	.
	
New	NNP
federal	JJ
legislation	NN
requires	VBZ
that	WDT
all	RB
thrifts	NNS
divest	DT
themselves	DT
of	IN
such	JJ
speculative	JJ
securities	NNS
over	IN
a	DT
period	NN
of	IN
years	NNS
.	.
	
Columbia	NNP
Savings	NNP
officials	NNS
were	VBD
n't	RB
available	JJ
for	IN
comment	NN
on	IN
the	DT
downgrade	DT
.	.
	
FRANKLIN	DT
SAVINGS	DT
ASSOCIATION	DT
(	(
Ottawa	DT
,	,
Kan.	DT
)	)
--	--
	
Moody	NNP
's	VBZ
Investors	NNS
Service	NNP
Inc.	DT
said	VBD
it	DT
downgraded	DT
its	DT
rating	DT
to	DT
B-2	DT
from	IN
Ba-3	DT
on	IN
less	RBR
than	IN
$	$
20	CD
million	CD
of	IN
this	DT
thrift	NN
's	VBZ
senior	JJ
subordinated	DT
notes	NNS
.	.
	
The	NNP
rating	DT
concern	NN
said	VBN
Franklin	DT
's	VBZ
``	``
troubled	VBN
diversification	DT
record	NN
in	IN
the	DT
securities	NNS
business	NN
''	''
was	VBD
one	CD
reason	NN
for	IN
the	DT
downgrade	DT
,	,
citing	VBG
the	DT
troubles	NNS
at	IN
its	DT
L.F.	DT
Rothschild	DT
subsidiary	NN
and	CC
the	DT
possible	JJ
sale	NN
of	IN
other	JJ
subsidiaries	DT
.	.
	
``	``
They	DT
perhaps	RB
had	VBN
concern	NN
that	WDT
we	DT
were	VBD
getting	VBG
out	IN
of	IN
all	RB
these	DT
,	,
''	''
said	VBN
Franklin	DT
President	NNP
Duane	DT
H.	DT
Hall	NNP
.	.
	
``	``
I	DT
think	VBP
it	DT
was	VBD
a	DT
little	JJ
premature	DT
on	IN
their	DT
part	NN
.	.
	
Just	RB
when	DT
it	DT
seemed	VBD
safe	DT
to	DT
go	VBP
back	VB
into	IN
stocks	NNS
,	,
Wall	NNP
Street	NNP
suffered	VBD
another	DT
severe	JJ
attack	DT
of	IN
nerves	DT
.	.
	
Does	DT
this	DT
signal	VBP
another	DT
Black	NNP
Monday	NNP
is	VBZ
coming	VBG
?	?
	
Or	CC
is	VBZ
this	DT
an	DT
extraordinary	JJ
buying	NN
opportunity	NN
,	,
just	RB
like	JJ
Oct.	DT
19	CD
,	,
1987	CD
,	,
eventually	RB
turned	VBN
out	IN
to	DT
be	DT
?	?
	
Here	DT
's	VBZ
what	WP
several	JJ
leading	VBG
market	NN
experts	NNS
and	CC
money	NN
managers	NNS
say	VBP
about	IN
Friday	NNP
's	VBZ
action	NN
,	,
what	WP
happens	DT
next	JJ
and	CC
what	WP
investors	NNS
should	MD
do	VBP
.	.
	
Joseph	DT
Granville	DT
.	.
	
``	``
I	DT
'm	VBP
the	DT
only	RB
one	CD
who	WP
said	VBN
there	RB
would	MD
be	DT
an	DT
October	NNP
massacre	NN
,	,
all	RB
through	IN
late	JJ
August	NNP
and	CC
September	NNP
,	,
''	''
says	VBZ
Mr.	DT
Granville	DT
,	,
once	RB
a	DT
widely	RB
followed	VBN
market	NN
guru	DT
and	CC
still	RB
a	DT
well-known	DT
newsletter	DT
writer	NN
.	.
	
``	``
Everyone	DT
will	MD
tell	DT
you	DT
that	WDT
this	DT
time	NN
is	VBZ
different	JJ
from	IN
1987	CD
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
Well	RB
,	,
in	IN
some	DT
ways	NNS
it	DT
is	VBZ
different	JJ
,	,
but	CC
technically	DT
it	DT
is	VBZ
just	RB
the	DT
same	JJ
.	.
	
If	IN
you	DT
're	VBP
a	DT
technician	DT
,	,
you	DT
obey	DT
the	DT
signals	DT
.	.
	
Right	DT
now	RB
they	DT
're	VBP
telling	DT
me	DT
to	DT
get	VBP
the	DT
hell	NN
out	IN
and	CC
stay	DT
out	IN
.	.
	
I	DT
see	VBP
no	RB
major	JJ
support	NN
until	IN
2200	DT
.	.
	
I	DT
see	VBP
a	DT
possibility	NN
of	IN
going	VBG
to	DT
2200	DT
this	DT
month	NN
.	.
''	''
	
Mr.	DT
Granville	DT
says	VBZ
he	DT
would	MD
n't	RB
even	RB
think	VBP
of	IN
buying	NN
until	IN
at	IN
least	JJS
600	DT
to	DT
700	DT
stocks	NNS
have	VBP
hit	VBD
52-week	DT
lows	DT
;	;
about	IN
100	CD
stocks	NNS
hit	VBD
new	JJ
lows	DT
Friday	NNP
.	.
	
``	``
Most	RBS
people	NNS
,	,
''	''
he	DT
says	VBZ
,	,
``	``
have	VBP
no	RB
idea	NN
what	WP
a	DT
massacre	NN
pattern	DT
looks	VBZ
like	JJ
.	.
''	''
	
Elaine	DT
Garzarelli	DT
.	.
	
A	DT
quantitative	DT
analyst	NN
with	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	DT
,	,
Ms.	DT
Garzarelli	DT
had	VBN
warned	VBD
clients	NNS
to	DT
take	VBP
their	DT
money	NN
out	IN
of	IN
the	DT
market	NN
before	IN
the	DT
1987	CD
crash	NN
.	.
	
Friday	NNP
's	VBZ
big	JJ
drop	NN
,	,
she	DT
says	VBZ
,	,
``	``
was	VBD
not	RB
a	DT
crash	NN
.	.
	
This	DT
was	VBD
an	DT
October	NNP
massacre	NN
''	''
like	JJ
those	DT
that	WDT
occurred	VBD
in	IN
1978	CD
and	CC
1979	CD
.	.
	
Now	RB
,	,
as	IN
in	IN
those	DT
two	CD
years	NNS
,	,
her	DT
stock	NN
market	NN
indicators	NNS
are	VBP
positive	DT
.	.
	
So	IN
she	DT
thinks	VBZ
the	DT
damage	NN
will	MD
be	DT
short-lived	DT
and	CC
contained	DT
.	.
	
``	``
Those	DT
corrections	DT
lasted	DT
one	CD
to	DT
four	CD
weeks	NNS
and	CC
took	VBD
the	DT
market	NN
10%-12	DT
%	%
down	IN
,	,
''	''
she	DT
says	VBZ
.	.
	
``	``
This	DT
is	VBZ
exactly	RB
the	DT
same	JJ
thing	NN
,	,
as	IN
far	JJ
as	IN
I	DT
'm	VBP
concerned	VBN
.	.
''	''
	
Thus	RB
,	,
she	DT
says	VBZ
,	,
if	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
dropped	VBN
below	IN
2450	DT
,	,
``	``
It	PRP
would	MD
just	RB
be	DT
a	DT
fluke	DT
.	.
	
My	NNP
advice	NN
is	VBZ
to	DT
buy	DT
.	.
''	''
	
As	IN
she	DT
calculates	DT
it	DT
,	,
the	DT
average	NN
stock	NN
now	RB
sells	DT
for	IN
about	IN
12.5	DT
times	NNS
companies	NNS
'	'
earnings	NNS
.	.
	
She	DT
says	VBZ
that	WDT
ratio	NN
could	MD
climb	DT
to	DT
14.5	DT
,	,
given	VBN
current	NN
interest	NN
rates	NNS
,	,
and	CC
still	RB
be	DT
within	IN
the	DT
range	NN
of	IN
``	``
fair	JJ
value	NN
.	.
''	''
	
Ned	DT
Davis	DT
.	.
	
Friday	NNP
's	VBZ
fall	NN
marks	VBZ
the	DT
start	NN
of	IN
a	DT
bear	NN
market	NN
,	,
says	VBZ
Mr.	DT
Davis	DT
,	,
president	NN
of	IN
Ned	DT
Davis	DT
Research	NNP
Inc	NNP
.	.
	
But	CC
Mr.	DT
Davis	DT
,	,
whose	DT
views	NNS
are	VBP
widely	RB
respected	DT
by	IN
money	NN
managers	NNS
,	,
says	VBZ
he	DT
expects	VBZ
no	RB
1987-style	JJ
crash	NN
.	.
	
``	``
There	DT
was	VBD
a	DT
unique	DT
combination	NN
in	IN
1987	CD
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
Margin	DT
debt	NN
was	VBD
at	IN
a	DT
record	NN
high	JJ
.	.
	
There	DT
was	VBD
tremendous	DT
public	JJ
enthusiasm	DT
for	IN
stock	NN
mutual	JJ
funds	NNS
.	.
	
The	NNP
main	JJ
thing	NN
was	VBD
portfolio	NN
insurance	NN
,	,
''	''
a	DT
mechanical	DT
trading	NN
system	NN
intended	VBN
to	DT
protect	DT
an	DT
investor	NN
against	IN
losses	NNS
.	.
``	``
	
A	DT
hundred	CD
billion	CD
dollars	NNS
in	IN
stock	NN
was	VBD
subject	NN
''	''
to	DT
it	DT
.	.
	
In	IN
1987	CD
,	,
such	JJ
selling	NN
contributed	VBN
to	DT
a	DT
snowball	DT
effect	NN
.	.
	
Today	NN
could	MD
even	RB
be	DT
an	DT
up	IN
day	NN
,	,
Mr.	DT
Davis	DT
says	VBZ
,	,
if	IN
major	JJ
brokerage	NN
firms	NNS
agree	DT
to	DT
refrain	DT
from	IN
program	NN
trading	NN
.	.
	
Over	IN
the	DT
next	JJ
several	JJ
months	NNS
,	,
though	RB
,	,
he	DT
says	VBZ
things	NNS
look	VBP
bad	JJ
.	.
	
``	``
I	DT
think	VBP
the	DT
market	NN
will	MD
be	DT
heading	DT
down	IN
into	IN
November	NNP
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
We	DT
will	MD
probably	RB
have	VBP
a	DT
year-end	DT
rally	NN
,	,
and	CC
then	RB
go	VBP
down	IN
again	RB
.	.
	
Sort	DT
of	IN
a	DT
two-step	DT
bear	NN
market	NN
.	.
''	''
	
He	DT
expects	VBZ
the	DT
downturn	NN
to	DT
carry	DT
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
down	IN
to	DT
around	IN
2000	CD
sometime	DT
next	JJ
year	NN
.	.
	
``	``
That	IN
would	MD
be	DT
a	DT
normal	JJ
bear	NN
market	NN
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
I	DT
guess	DT
that	WDT
's	VBZ
my	DT
forecast	NN
.	.
''	''
	
Leon	DT
G.	DT
Cooperman	DT
.	.
	
``	``
I	DT
do	VBP
n't	RB
think	VBP
the	DT
market	NN
is	VBZ
going	VBG
through	IN
another	DT
October	NNP
'87	DT
.	.
	
I	DT
do	VBP
n't	RB
think	VBP
that	WDT
's	VBZ
the	DT
case	NN
at	IN
all	RB
,	,
''	''
says	VBZ
Mr.	DT
Cooperman	DT
,	,
a	DT
partner	NN
at	IN
Goldman	NNP
,	,
Sachs	NNP
&	&
Co.	DT
and	CC
chairman	NN
of	IN
Goldman	NNP
Sachs	NNP
Asset	DT
Management	DT
.	.
	
Mr.	DT
Cooperman	DT
sees	VBZ
this	DT
as	IN
a	DT
good	JJ
time	NN
to	DT
pick	DT
up	IN
bargains	NNS
,	,
but	CC
he	DT
does	VBZ
n't	RB
think	VBP
there	RB
's	VBZ
any	DT
need	VB
to	DT
rush	NN
.	.
	
``	``
I	DT
expect	VBP
the	DT
market	NN
to	DT
open	JJ
weaker	DT
Monday	NNP
,	,
but	CC
then	RB
it	DT
should	MD
find	DT
some	DT
stability	NN
.	.
''	''
	
He	DT
ticks	DT
off	IN
several	JJ
major	JJ
differences	NNS
between	IN
now	RB
and	CC
two	CD
years	NNS
ago	IN
.	.
	
Unlike	DT
1987	CD
,	,
interest	NN
rates	NNS
have	VBP
been	VBN
falling	VBG
this	DT
year	NN
.	.
	
Unlike	DT
1987	CD
,	,
the	DT
dollar	NN
has	VBZ
been	VBN
strong	JJ
.	.
	
And	CC
unlike	IN
1987	CD
,	,
the	DT
economy	NN
does	VBZ
n't	RB
appear	VBP
to	DT
be	DT
in	IN
any	DT
danger	NN
of	IN
overheating	DT
.	.
	
But	CC
the	DT
economy	NN
's	VBZ
slower	JJR
growth	NN
this	DT
year	NN
also	RB
means	VBZ
the	DT
outlook	NN
for	IN
corporate	JJ
profits	NNS
``	``
is	VBZ
n't	RB
good	JJ
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
So	IN
it	DT
's	VBZ
a	DT
very	RB
mixed	VBN
bag	DT
.	.
''	''
	
Thus	RB
,	,
he	DT
concludes	DT
,	,
``	``
This	DT
is	VBZ
not	RB
a	DT
good	JJ
environment	NN
to	DT
be	DT
fully	RB
invested	VBN
''	''
in	IN
stocks	NNS
.	.
	
``	``
If	IN
I	DT
had	VBN
come	VBN
into	IN
Friday	NNP
on	IN
margin	NN
or	CC
with	IN
very	RB
little	JJ
cash	NN
in	IN
the	DT
portfolios	DT
,	,
I	DT
would	MD
not	RB
do	VBP
any	DT
buying	NN
.	.
	
But	CC
we	DT
came	VBD
into	IN
Friday	NNP
with	IN
a	DT
conservative	DT
portfolio	NN
,	,
so	IN
I	DT
would	MD
look	VBP
to	DT
do	VBP
some	DT
modest	JJ
buying	NN
''	''
on	IN
behalf	NN
of	IN
clients	NNS
.	.
``	``
	
We	DT
're	VBP
going	VBG
to	DT
look	VBP
for	IN
some	DT
of	IN
the	DT
better-known	DT
companies	NNS
that	WDT
got	VBN
clocked	DT
''	''
Friday	NNP
.	.
	
John	NNP
Kenneth	NNP
Galbraith	DT
.	.
	
``	``
This	DT
is	VBZ
the	DT
latest	JJS
manifestation	DT
of	IN
the	DT
capacity	NN
of	IN
the	DT
financial	JJ
community	NN
for	IN
recurrent	DT
insanity	DT
,	,
''	''
says	VBZ
Mr.	DT
Galbraith	DT
,	,
an	DT
economist	NN
.	.
	
``	``
I	DT
see	VBP
this	DT
as	IN
a	DT
reaction	NN
to	DT
the	DT
whole	JJ
junk	NN
bond	NN
explosion	NN
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
The	NNP
explosion	NN
of	IN
junk	NN
bonds	NNS
and	CC
takeovers	NNS
has	VBZ
lodged	DT
a	DT
lot	NN
of	IN
insecure	DT
securities	NNS
in	IN
the	DT
hands	NNS
of	IN
investors	NNS
and	CC
loaded	DT
the	DT
corporations	NNS
that	WDT
are	VBP
the	DT
objects	DT
of	IN
takeovers	NNS
or	CC
feared	VBD
takeovers	NNS
with	IN
huge	JJ
amounts	NNS
of	IN
debt	NN
rather	RB
than	IN
equity	NN
.	.
	
This	DT
has	VBZ
both	DT
made	VBN
investors	NNS
uneasy	DT
and	CC
the	DT
corporations	NNS
more	RBR
vulnerable	JJ
.	.
''	''
	
Nevertheless	RB
,	,
he	DT
says	VBZ
a	DT
depression	NN
does	VBZ
n't	RB
appear	VBP
likely	JJ
.	.
	
``	``
There	DT
is	VBZ
more	RBR
resiliency	DT
in	IN
the	DT
economy	NN
at	IN
large	JJ
than	IN
we	DT
commonly	RB
suppose	VBP
,	,
''	''
he	DT
says	VBZ
.	.
	
``	``
It	PRP
takes	VBZ
more	RBR
error	DT
now	RB
to	DT
have	VBP
a	DT
major	JJ
depression	NN
than	IN
back	VB
in	IN
the	DT
Thirties	DT
--	--
much	JJ
as	IN
the	DT
financial	JJ
community	NN
and	CC
the	DT
government	NN
may	MD
try	DT
.	.
''	''
	
Mario	DT
Gabelli	DT
.	.
	
New	NNP
York	NNP
money	NN
manager	NN
Mario	DT
Gabelli	DT
,	,
an	DT
expert	DT
at	IN
spotting	DT
takeover	NN
candidates	DT
,	,
says	VBZ
that	WDT
takeovers	NNS
are	VBP
n't	RB
totally	RB
gone	VBN
.	.
	
``	``
Companies	NNPS
are	VBP
still	RB
going	VBG
to	DT
buy	DT
companies	NNS
around	IN
the	DT
world	NN
,	,
''	''
he	DT
says	VBZ
.	.
	
Examples	NNS
are	VBP
``	``
Ford	NNP
looking	VBG
at	IN
Jaguar	DT
,	,
BellSouth	NNP
looking	VBG
at	IN
LIN	NNP
Broadcasting	NNP
.	.
''	''
	
These	DT
sorts	DT
of	IN
takeovers	NNS
do	VBP
n't	RB
require	VBP
junk	NN
bonds	NNS
or	CC
big	JJ
bank	NN
loans	NNS
to	DT
finance	NN
them	DT
,	,
so	IN
Mr.	DT
Gabelli	DT
figures	NNS
they	DT
will	MD
continue	DT
.	.
	
``	``
The	NNP
market	NN
was	VBD
up	IN
35	CD
%	%
since	IN
{	{
President	NNP
}	}
Bush	NNP
took	VBD
office	NN
,	,
''	''
Mr.	DT
Gabelli	DT
says	VBZ
,	,
so	IN
a	DT
correction	NN
was	VBD
to	DT
be	DT
expected	VBN
.	.
	
He	DT
thinks	VBZ
another	DT
crash	NN
is	VBZ
``	``
unlikely	JJ
,	,
''	''
and	CC
says	VBZ
he	DT
was	VBD
``	``
nibbling	DT
at	IN
''	''
selected	VBN
stocks	NNS
during	IN
Friday	NNP
's	VBZ
plunge	NN
.	.
	
``	``
Stocks	NNS
that	WDT
were	VBD
thrown	VBN
out	IN
just	RB
on	IN
an	DT
emotional	JJ
basis	NN
are	VBP
a	DT
great	JJ
opportunity	NN
{	{
this	DT
}	}
week	NN
for	IN
guys	DT
like	JJ
me	DT
,	,
''	''
he	DT
says	VBZ
.	.
	
Jim	DT
Rogers	DT
.	.
	
``	``
It	PRP
seems	VBZ
to	DT
me	DT
that	WDT
this	DT
is	VBZ
the	DT
pin	DT
that	WDT
has	VBZ
finally	RB
pricked	DT
the	DT
balloon	DT
,	,
''	''
says	VBZ
Mr.	DT
Rogers	DT
,	,
a	DT
professor	NN
of	IN
finance	NN
at	IN
Columbia	NNP
University	NNP
and	CC
former	JJ
co-manager	DT
of	IN
one	CD
of	IN
the	DT
most	RBS
successful	JJ
hedge	NN
funds	NNS
in	IN
history	DT
,	,
Quantum	DT
Fund	NNP
.	.
	
He	DT
sees	VBZ
``	``
economic	JJ
problems	NNS
,	,
financial	JJ
problems	NNS
''	''
ahead	RB
for	IN
the	DT
U.S.	DT
,	,
with	IN
a	DT
fairly	RB
strong	JJ
possibility	NN
of	IN
a	DT
recession	NN
.	.
	
``	``
Friday	NNP
you	DT
could	MD
n't	RB
sell	NN
dollars	NNS
,	,
''	''
he	DT
says	VBZ
.	.
	
Dealers	NNS
``	``
would	MD
give	VBP
you	DT
a	DT
quote	DT
,	,
but	CC
then	RB
refuse	DT
to	DT
make	VBP
the	DT
trade	NN
.	.
''	''
	
If	IN
the	DT
dollar	NN
stays	VBZ
weak	JJ
,	,
he	DT
says	VBZ
,	,
that	WDT
will	MD
add	DT
to	DT
inflationary	DT
pressures	NNS
in	IN
the	DT
U.S.	DT
and	CC
make	VBP
it	DT
hard	JJ
for	IN
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
to	DT
ease	DT
interest	NN
rates	NNS
very	RB
much	JJ
.	.
	
Mr.	DT
Rogers	DT
wo	MD
n't	RB
decide	DT
what	WP
to	DT
do	VBP
today	NN
until	IN
he	DT
sees	VBZ
how	DT
the	DT
London	NNP
and	CC
Tokyo	NNP
markets	NNS
go	VBP
.	.
	
He	DT
recommends	VBZ
that	WDT
investors	NNS
sell	NN
takeover-related	JJ
stocks	NNS
,	,
but	CC
hang	DT
on	IN
to	DT
some	DT
other	JJ
stocks	NNS
--	--
especially	RB
utilities	NNS
,	,
which	DT
often	RB
do	VBP
well	RB
during	IN
periods	DT
of	IN
economic	JJ
weakness	NN
.	.
	
Frank	NNP
Curzio	DT
.	.
	
Many	JJ
people	NNS
now	RB
claim	NN
to	DT
have	VBP
predicted	DT
the	DT
1987	CD
crash	NN
.	.
	
Queens	DT
newsletter	DT
writer	NN
Francis	NNP
X.	DT
Curzio	DT
actually	RB
did	VBD
it	DT
:	:
He	DT
stated	DT
in	IN
writing	DT
in	IN
September	NNP
1987	CD
that	WDT
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
was	VBD
likely	JJ
to	DT
decline	NN
about	IN
500	CD
points	NNS
the	DT
following	VBG
month	NN
.	.
	
Mr.	DT
Curzio	DT
says	VBZ
what	WP
happens	DT
now	RB
will	MD
depend	VBP
a	DT
good	JJ
deal	NN
on	IN
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
.	.
	
If	IN
it	DT
promptly	RB
cuts	NNS
the	DT
discount	DT
rate	NN
it	DT
charges	VBZ
on	IN
loans	NNS
to	DT
banks	NNS
,	,
he	DT
says	VBZ
,	,
``	``
That	IN
could	MD
quiet	JJ
things	NNS
down	IN
.	.
''	''
	
If	IN
not	RB
,	,
``	``
We	DT
could	MD
go	VBP
to	DT
2200	DT
very	RB
soon	RB
.	.
''	''
	
Frank	NNP
W.	DT
Terrizzi	DT
.	.
	
Stock	NNP
prices	NNS
``	``
would	MD
still	RB
have	VBP
to	DT
go	VBP
down	IN
some	DT
additional	JJ
amount	NN
before	IN
we	DT
become	VBN
positive	DT
on	IN
stocks	NNS
,	,
''	''
says	VBZ
Mr.	DT
Terrizzi	DT
,	,
president	NN
and	CC
managing	VBG
director	NN
of	IN
Renaissance	DT
Investment	NNP
Management	DT
Inc.	DT
in	IN
Cincinnati	DT
.	.
	
Renaissance	DT
,	,
which	DT
manages	VBZ
about	IN
$	$
1.8	CD
billion	CD
,	,
drew	DT
stiff	JJ
criticism	NN
from	IN
many	JJ
clients	NNS
earlier	JJR
this	DT
year	NN
because	IN
it	DT
pulled	VBN
entirely	RB
out	IN
of	IN
stocks	NNS
at	IN
the	DT
beginning	NN
of	IN
the	DT
year	NN
and	CC
thus	DT
missed	VBD
a	DT
strong	JJ
rally	NN
.	.
	
Renaissance	DT
is	VBZ
keeping	VBG
its	DT
money	NN
entirely	RB
in	IN
cash	NN
equivalents	DT
,	,
primarily	RB
U.S.	DT
Treasury	NNP
bills	NNS
.	.
	
``	``
T-bills	DT
probably	RB
are	VBP
the	DT
right	NN
place	NN
to	DT
be	DT
,	,
''	''
he	DT
says	VBZ
.	.
	
Regarding	DT
the	DT
Oct.	DT
3	LS
letter	NN
to	DT
the	DT
editor	NN
from	IN
Rep.	DT
Tom	NNP
Lantos	DT
,	,
chairman	NN
of	IN
the	DT
House	NNP
Subcommittee	DT
on	IN
Employment	NN
and	CC
Housing	NN
,	,
alleging	VBG
:	:
	
1	CD
.	.
That	DT
your	DT
Sept.	DT
28	CD
editorial	NN
``	``
Kangaroo	DT
Committees	DT
''	''
was	VBD
factually	DT
inaccurate	JJ
and	CC
deliberately	DT
misleading	DT
.	.
	
I	DT
thought	VBN
your	DT
editorial	NN
was	VBD
factually	DT
accurate	JJ
and	CC
deliberately	DT
elucidative	DT
.	.
	
2	CD
.	.
That	DT
Mr.	DT
Lantos	DT
supported	VBN
the	DT
rights	NNS
of	IN
the	DT
witnesses	DT
to	DT
take	VBP
the	DT
Fifth	DT
Amendment	DT
.	.
	
Yes	DT
,	,
he	DT
did	VBD
.	.
	
As	IN
I	DT
watched	VBD
him	DT
on	IN
C-Span	DT
,	,
I	DT
heard	DT
him	DT
speak	DT
those	DT
lovely	DT
words	NNS
about	IN
the	DT
Bill	NNP
of	IN
Rights	DT
,	,
which	DT
he	DT
quotes	DT
from	IN
the	DT
transcript	DT
of	IN
the	DT
hearings	DT
.	.
	
He	DT
did	VBD
repeat	NN
those	DT
nice	JJ
platitudes	DT
several	JJ
times	NNS
as	IN
an	DT
indication	NN
of	IN
his	DT
support	NN
for	IN
the	DT
Constitution	DT
.	.
	
He	DT
used	VBN
about	IN
56	CD
words	NNS
defending	DT
the	DT
witnesses	DT
'	'
constitutional	JJ
rights	NNS
.	.
	
Unfortunately	DT
,	,
by	IN
my	DT
rough	DT
guess	DT
,	,
he	DT
used	VBN
better	JJR
than	IN
5,000	CD
words	NNS
heaping	DT
scorn	DT
on	IN
the	DT
witnesses	DT
for	IN
exercising	DT
the	DT
Fifth	DT
.	.
	
He	DT
sandwiched	DT
his	DT
praise	DT
of	IN
constitutional	JJ
meat	DT
between	IN
large	JJ
loaves	DT
of	IN
bilious	DT
commentary	NN
.	.
	
As	IN
your	DT
editorial	NN
rightly	DT
pointed	VBN
out	IN
,	,
Samuel	DT
Pierce	DT
,	,
former	JJ
HUD	DT
secretary	NN
,	,
and	CC
Lance	DT
Wilson	NNP
,	,
Mr.	DT
Pierce	DT
's	VBZ
former	JJ
aide	DT
,	,
``	``
are	VBP
currently	RB
being	VBG
held	VBN
up	IN
to	DT
scorn	DT
for	IN
taking	VBG
the	DT
Fifth	DT
Amendment	DT
.	.
	
''	''
That	IN
certainly	RB
is	VBZ
not	RB
the	DT
supposed	DT
``	``
distorted	DT
reading	NN
''	''
indicated	VBN
by	IN
Mr.	DT
Lantos	DT
.	.
	
3	CD
.	.
That	DT
his	DT
``	``
committee	NN
does	VBZ
not	RB
deal	NN
with	IN
any	DT
possible	JJ
criminal	JJ
activity	NN
at	IN
HUD	DT
.	.
	
My	NNP
colleagues	NNS
and	CC
I	DT
fully	RB
realize	DT
we	DT
are	VBP
not	RB
a	DT
court	NN
...	...
etc	DT
.	.
''	''
	
Absolute	DT
rubbish	DT
.	.
	
By	IN
any	DT
``	``
reasonable	JJ
man	NN
''	''
criterion	DT
,	,
Mr.	DT
Lantos	DT
and	CC
his	DT
colleagues	NNS
have	VBP
a	DT
whole	JJ
bunch	DT
of	IN
people	NNS
tried	VBN
and	CC
convicted	DT
.	.
	
Apparently	DT
,	,
their	DT
verdict	NN
is	VBZ
in	IN
.	.
	
Right	DT
now	RB
they	DT
're	VBP
pursuing	DT
evidence	NN
.	.
	
That	IN
's	VBZ
not	RB
a	DT
bad	JJ
way	NN
to	DT
proceed	DT
,	,
just	RB
somewhat	RB
different	JJ
from	IN
standard	NN
American	JJ
practice	NN
.	.
	
How	DT
was	VBD
that	WDT
practice	NN
referred	DT
to	DT
when	DT
I	DT
was	VBD
in	IN
school	NN
?	?
	
Ah	DT
,	,
yes	DT
,	,
something	NN
called	VBN
a	DT
Star	DT
Chamber	DT
.	.
	
Of	IN
course	NN
,	,
Mr.	DT
Lantos	DT
doth	DT
protest	DT
that	WDT
his	DT
subcommittee	NN
simply	RB
seeks	DT
information	NN
for	IN
legislative	JJ
change	NN
.	.
	
No	DT
doubt	DT
that	WDT
's	VBZ
partially	DT
true	JJ
.	.
	
Everything	DT
that	WDT
Mr.	DT
Lantos	DT
says	VBZ
in	IN
his	DT
letter	NN
is	VBZ
partially	DT
true	JJ
.	.
	
He	DT
's	VBZ
right	NN
about	IN
his	DT
subcommittee	NN
's	VBZ
responsibilities	DT
when	DT
it	DT
comes	VBZ
to	DT
obtaining	DT
information	NN
from	IN
prior	JJ
HUD	DT
officials	NNS
.	.
	
But	CC
if	IN
his	DT
explanation	NN
of	IN
motivation	DT
is	VBZ
true	JJ
,	,
why	DT
is	VBZ
his	DT
investigation	NN
so	IN
oriented	DT
as	IN
to	DT
identify	DT
criminal	JJ
activity	NN
?	?
	
Why	DT
not	RB
simply	RB
questions	NNS
designed	VBN
to	DT
identify	DT
sources	NNS
and	CC
causes	DT
of	IN
waste	DT
and	CC
inefficiency	DT
?	?
	
Such	JJ
as	IN
,	,
what	WP
happened	VBD
when	DT
Congress	NNP
wanted	VBN
to	DT
know	VBP
about	IN
$	$
400	CD
toilet	DT
seats	DT
or	CC
whatever	DT
they	DT
supposedly	RB
cost	NN
?	?
	
No	DT
,	,
Mr.	DT
Lantos	DT
's	VBZ
complaints	DT
simply	RB
wo	MD
n't	RB
wash	NN
.	.
	
4	CD
.	.
That	DT
the	DT
Journal	NNP
defends	DT
``	``
the	DT
sleaze	DT
,	,
fraud	NN
,	,
waste	DT
,	,
embezzlement	DT
,	,
influence-peddling	DT
and	CC
abuse	DT
of	IN
the	DT
public	JJ
that	WDT
took	VBD
place	NN
while	IN
Mr.	DT
Pierce	DT
was	VBD
secretary	NN
of	IN
HUD	DT
,	,
''	''
etc.	DT
and	CC
so	IN
forth	DT
.	.
	
No	DT
,	,
to	DT
my	DT
mind	NN
,	,
the	DT
Journal	NNP
did	VBD
not	RB
``	``
defend	DT
sleaze	DT
,	,
fraud	NN
,	,
waste	DT
,	,
embezzlement	DT
,	,
influence-peddling	DT
and	CC
abuse	DT
of	IN
the	DT
public	JJ
trust	NN
...	...
''	''
	
it	DT
defended	DT
appropriate	JJ
constitutional	JJ
safeguards	NNS
and	CC
practical	DT
common	JJ
sense	NN
.	.
	
The	NNP
problem	NN
,	,
which	DT
the	DT
Journal	NNP
so	IN
rightly	DT
pointed	VBN
out	IN
in	IN
a	DT
number	NN
of	IN
articles	NNS
,	,
is	VBZ
not	RB
the	DT
likes	DT
of	IN
Mr.	DT
Lantos	DT
,	,
who	WP
after	IN
all	RB
is	VBZ
really	RB
a	DT
bit	NN
player	DT
on	IN
the	DT
stage	NN
,	,
but	CC
the	DT
attempt	NN
by	IN
Congress	NNP
to	DT
enhance	DT
itself	DT
into	IN
a	DT
quasi-parliamentary\/judicial	DT
body	NN
.	.
	
(	(
Of	IN
course	NN
,	,
we	DT
've	VBP
also	RB
got	VBN
a	DT
judiciary	DT
that	WDT
seeks	DT
the	DT
same	JJ
objective	DT
.	.
)	)
	
The	NNP
system	NN
is	VBZ
the	DT
problem	NN
,	,
not	RB
an	DT
individual	JJ
member	NN
.	.
	
Individuals	DT
can	MD
always	DT
have	VBP
their	DT
hands	NNS
slapped	DT
.	.
	
It	PRP
's	VBZ
when	DT
such	JJ
slapping	DT
does	VBZ
n't	RB
occur	DT
that	WDT
we	DT
've	VBP
got	VBN
trouble	NN
.	.
	
I	DT
do	VBP
not	RB
by	IN
any	DT
means	VBZ
defend	DT
HUD	DT
management	NN
.	.
	
But	CC
I	DT
think	VBP
the	DT
kind	NN
of	IN
congressional	JJ
investigation	NN
that	WDT
has	VBZ
been	VBN
pursued	VBN
is	VBZ
a	DT
far	JJ
greater	JJR
danger	NN
to	DT
American	JJ
notions	DT
of	IN
liberty	DT
and	CC
freedom	NN
than	IN
any	DT
incompetency	DT
(	(
and	CC
,	,
yes	DT
,	,
maybe	DT
criminality	DT
)	)
within	IN
HUD	DT
could	MD
possibly	RB
generate	DT
.	.
	
The	NNP
last	JJ
time	NN
I	DT
saw	VBD
a	DT
similar	JJ
congressional	JJ
hearing	NN
was	VBD
when	DT
``	``
Tail	DT
Gunner	DT
Joe	DT
''	''
McCarthy	NNP
did	VBD
his	DT
work	NN
.	.
	
Raymond	NNP
Weber	DT
	
Parsippany	DT
,	,
N.J	DT
.	.
	
I	DT
disagree	DT
with	IN
the	DT
statement	NN
by	IN
Mr.	DT
Lantos	DT
that	WDT
one	CD
should	MD
not	RB
draw	DT
an	DT
adverse	JJ
inference	DT
against	IN
former	JJ
HUD	DT
officials	NNS
who	WP
assert	DT
their	DT
Fifth	DT
Amendment	DT
privilege	DT
against	IN
self-incrimination	DT
in	IN
congressional	JJ
hearings	DT
.	.
	
The	NNP
Fifth	DT
Amendment	DT
states	NNS
in	IN
relevant	DT
part	NN
that	WDT
no	RB
person	DT
``	``
shall	DT
be	DT
compelled	DT
,	,
in	IN
any	DT
criminal	JJ
case	NN
,	,
to	DT
be	DT
a	DT
witness	DT
against	IN
himself	DT
.	.
''	''
	
This	DT
privilege	DT
against	IN
self-incrimination	DT
precludes	DT
the	DT
drawing	DT
of	IN
an	DT
adverse	JJ
inference	DT
against	IN
a	DT
criminal	JJ
defendant	DT
who	WP
chooses	DT
not	RB
to	DT
testify	DT
.	.
	
Thus	RB
,	,
in	IN
a	DT
criminal	JJ
case	NN
,	,
a	DT
prosecutor	DT
can	MD
not	RB
comment	NN
on	IN
a	DT
defendant	DT
's	VBZ
failure	NN
to	DT
testify	DT
nor	CC
can	MD
the	DT
defendant	DT
be	DT
compelled	DT
to	DT
take	VBP
the	DT
stand	DT
as	IN
a	DT
witness	DT
,	,
thus	DT
forcing	DT
him	DT
to	DT
``	``
take	VBP
the	DT
Fifth	DT
.	.
''	''
	
The	NNP
privilege	DT
,	,
however	RB
,	,
has	VBZ
been	VBN
limited	VBN
in	IN
accordance	DT
with	IN
its	DT
plain	JJ
language	DT
to	DT
protect	DT
the	DT
defendant	DT
in	IN
criminal	JJ
matters	NNS
only	RB
.	.
	
The	NNP
Supreme	NNP
Court	NNP
and	CC
some	DT
states	NNS
have	VBP
specifically	DT
recognized	DT
that	WDT
``	``
the	DT
Fifth	DT
Amendment	DT
does	VBZ
not	RB
preclude	DT
the	DT
inference	DT
where	DT
the	DT
privilege	DT
is	VBZ
claimed	VBD
by	IN
a	DT
party	NN
to	DT
a	DT
civil	JJ
cause	NN
.	.
''	''
	
Baxter	DT
v.	DT
Palmingiano	DT
,	,
425	CD
U.S.	DT
308	DT
(	(
1976	CD
)	)
.	.
	
Thus	RB
,	,
in	IN
a	DT
civil	JJ
case	NN
,	,
a	DT
defendant	DT
may	MD
be	DT
called	VBN
as	IN
a	DT
witness	DT
,	,
he	DT
may	MD
be	DT
forced	VBD
to	DT
testify	DT
or	CC
take	VBP
the	DT
Fifth	DT
,	,
and	CC
his	DT
taking	VBG
of	IN
the	DT
Fifth	DT
may	MD
permit	DT
the	DT
drawing	DT
of	IN
an	DT
adverse	JJ
inference	DT
against	IN
him	DT
in	IN
the	DT
civil	JJ
matter	NN
.	.
	
He	DT
may	MD
take	VBP
the	DT
Fifth	DT
in	IN
a	DT
civil	JJ
matter	NN
only	RB
if	IN
he	DT
has	VBZ
a	DT
good	JJ
faith	DT
and	CC
justifiable	DT
belief	NN
that	WDT
his	DT
testimony	NN
may	MD
subject	NN
him	DT
to	DT
criminal	JJ
prosecution	DT
.	.
	
Allowing	DT
the	DT
defendant	DT
to	DT
take	VBP
the	DT
Fifth	DT
in	IN
a	DT
civil	JJ
matter	NN
is	VBZ
not	RB
based	VBN
on	IN
a	DT
constitutional	JJ
right	NN
to	DT
refuse	DT
to	DT
testify	DT
where	DT
one	CD
's	VBZ
testimony	NN
harms	DT
him	DT
in	IN
the	DT
civil	JJ
matter	NN
,	,
but	CC
because	IN
the	DT
testimony	NN
in	IN
the	DT
civil	JJ
matter	NN
could	MD
be	DT
unconstitutionally	DT
used	VBN
against	IN
him	DT
in	IN
a	DT
subsequent	JJ
criminal	JJ
prosecution	DT
.	.
	
Absent	DT
the	DT
risk	NN
of	IN
such	JJ
prosecution	DT
,	,
a	DT
court	NN
may	MD
order	NN
the	DT
defendant	DT
to	DT
testify	DT
.	.
	
Thus	RB
,	,
when	DT
Mr.	DT
Pierce	DT
asserted	DT
the	DT
Fifth	DT
in	IN
a	DT
noncriminal	DT
proceeding	DT
,	,
particularly	RB
after	IN
presumably	DT
receiving	VBG
extensive	JJ
advice	NN
from	IN
legal	JJ
counsel	NN
,	,
one	CD
must	MD
conclude	DT
that	WDT
he	DT
held	VBN
a	DT
good-faith	DT
,	,
justifiable	DT
belief	NN
that	WDT
his	DT
testimony	NN
could	MD
be	DT
used	VBN
against	IN
him	DT
in	IN
a	DT
subsequent	JJ
criminal	JJ
prosecution	DT
.	.
	
The	NNP
subcommittee	NN
,	,
Congress	NNP
and	CC
the	DT
American	JJ
public	JJ
have	VBP
every	DT
right	NN
to	DT
draw	DT
the	DT
adverse	JJ
inference	DT
and	CC
to	DT
concur	DT
with	IN
Mr.	DT
Pierce	DT
's	VBZ
own	JJ
belief	NN
that	WDT
his	DT
testimony	NN
could	MD
help	NN
convict	DT
him	DT
of	IN
a	DT
crime	NN
.	.
	
Drawing	DT
the	DT
adverse	JJ
inference	DT
in	IN
a	DT
noncriminal	DT
congressional	JJ
hearing	NN
does	VBZ
not	RB
offend	DT
the	DT
Fifth	DT
Amendment	DT
shield	DT
against	IN
self-incrimination	DT
.	.
	
Clark	DT
S.	DT
Spalsbury	DT
Jr	DT
.	.
	
Estes	DT
Park	DT
,	,
Colo	DT
.	.
	
It	PRP
was	VBD
Friday	NNP
the	DT
13th	JJ
,	,
and	CC
the	DT
stock	NN
market	NN
plummeted	VBD
nearly	RB
200	CD
points	NNS
.	.
	
Just	RB
a	DT
coincidence	DT
?	?
	
Or	CC
is	VBZ
triskaidekaphobia	DT
--	--
fear	NN
of	IN
the	DT
number	NN
13	CD
--	--
justified	DT
?	?
	
In	IN
academia	DT
,	,
a	DT
so-called	JJ
Friday	NNP
the	DT
13th	JJ
effect	NN
has	VBZ
been	VBN
set	VBN
up	IN
and	CC
shot	NN
down	IN
by	IN
different	JJ
professors	DT
.	.
	
Robert	NNP
Kolb	DT
and	CC
Ricardo	DT
Rodriguez	DT
,	,
professors	DT
of	IN
finance	NN
at	IN
the	DT
University	NNP
of	IN
Miami	NNP
,	,
found	VBN
evidence	NN
that	WDT
the	DT
market	NN
is	VBZ
spooked	VBN
by	IN
Friday	NNP
the	DT
13th	JJ
.	.
	
But	CC
their	DT
study	NN
,	,
which	DT
spanned	DT
the	DT
1962-85	DT
period	NN
,	,
has	VBZ
since	IN
been	VBN
shown	VBN
to	DT
be	DT
jinxed	DT
by	IN
an	DT
unlucky	DT
choice	NN
of	IN
data	NNS
.	.
	
In	IN
the	DT
'70s	DT
,	,
the	DT
market	NN
took	VBD
falls	DT
nine	CD
times	NNS
in	IN
a	DT
row	DT
on	IN
Friday	NNP
the	DT
you-know-what	DT
.	.
	
But	CC
the	DT
date	DT
tends	VBZ
to	DT
be	DT
a	DT
plus	CC
,	,
not	RB
a	DT
minus	DT
,	,
for	IN
stocks	NNS
,	,
according	VBG
to	DT
Yale	NNP
Hirsch	DT
,	,
a	DT
collector	DT
of	IN
stock	NN
market	NN
lore	DT
.	.
	
Another	DT
study	NN
found	VBN
that	WDT
the	DT
82	DT
Fridays	DT
the	DT
13th	JJ
in	IN
the	DT
1940-1987	DT
period	NN
had	VBN
higher	JJR
than	IN
average	NN
returns	DT
--	--
higher	JJR
even	RB
than	IN
Fridays	DT
in	IN
general	NN
,	,
which	DT
tend	DT
to	DT
be	DT
strong	JJ
days	NNS
for	IN
stock	NN
prices	NNS
.	.
	
On	IN
the	DT
only	RB
other	JJ
Friday	NNP
the	DT
13th	JJ
this	DT
year	NN
,	,
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
rose	VBD
about	IN
four	CD
points	NNS
.	.
	
Professor	DT
Kolb	DT
says	VBZ
the	DT
original	JJ
study	NN
,	,
titled	DT
Friday	NNP
the	DT
13th	JJ
,	,
Part	DT
VII	DT
,	,
was	VBD
published	DT
tongue-in-cheek	DT
.	.
	
In	IN
a	DT
similar	JJ
vein	DT
,	,
he	DT
adds	VBZ
that	WDT
the	DT
anniversary	NN
of	IN
the	DT
1987	CD
crash	NN
and	CC
Saturday	DT
's	VBZ
full	JJ
moon	DT
could	MD
have	VBP
played	VBD
a	DT
part	NN
,	,
too	RB
,	,
in	IN
Friday	NNP
's	VBZ
market	NN
activity	NN
.	.
	
reminiscent	DT
of	IN
those	DT
during	IN
the	DT
1987	CD
crash	NN
--	--
that	WDT
as	IN
stock	NN
prices	NNS
plummeted	VBD
and	CC
trading	NN
activity	NN
escalated	DT
,	,
some	DT
phone	NN
calls	VBZ
to	DT
market	NN
makers	NNS
in	IN
over-the-counter	NN
stocks	NNS
went	VBD
unanswered	JJ
.	.
	
``	``
We	DT
could	MD
n't	RB
get	VBP
dealers	NNS
to	DT
answer	DT
their	DT
phones	NNS
,	,
''	''
said	VBN
Robert	NNP
King	NNP
,	,
senior	JJ
vice	NN
president	NN
of	IN
OTC	DT
trading	NN
at	IN
Robinson-Humphrey	DT
Co.	DT
in	IN
Atlanta	DT
.	.
	
``	``
It	PRP
was	VBD
{	{
like	JJ
}	}
the	DT
Friday	NNP
before	IN
Black	NNP
Monday	NNP
''	''
two	CD
years	NNS
ago	IN
.	.
	
Whether	IN
unanswered	JJ
phone	NN
calls	VBZ
had	VBN
any	DT
effect	NN
or	CC
not	RB
,	,
Nasdaq	DT
stocks	NNS
sank	VBD
far	JJ
less	RBR
than	IN
those	DT
on	IN
the	DT
New	NNP
York	NNP
and	CC
American	JJ
exchanges	NNS
.	.
	
Nonetheless	RB
,	,
the	DT
Nasdaq	DT
Composite	DT
Index	NNP
suffered	VBD
its	DT
biggest	JJS
point	NN
decline	NN
of	IN
the	DT
year	NN
and	CC
its	DT
sixth	DT
worst	JJS
ever	RB
,	,
diving	DT
14.90	DT
,	,
or	CC
3	CD
%	%
,	,
to	DT
467.29	DT
.	.
	
Ten	DT
points	NNS
of	IN
the	DT
drop	NN
occurred	VBD
during	IN
the	DT
last	JJ
45	CD
minutes	NNS
of	IN
trading	NN
.	.
	
By	IN
comparison	DT
,	,
the	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
Composite	DT
tumbled	VBD
5.8	CD
%	%
Friday	NNP
and	CC
the	DT
American	JJ
Stock	NNP
Exchange	NNP
Composite	DT
fell	VBD
4	CD
%	%
.	.
	
On	IN
Oct.	DT
16	CD
,	,
1987	CD
,	,
the	DT
Nasdaq	DT
Composite	DT
fell	VBD
16.18	DT
points	NNS
,	,
or	CC
3.8	CD
%	%
,	,
followed	VBN
by	IN
its	DT
devastating	DT
46.12-point	DT
,	,
or	CC
11	CD
%	%
slide	NN
,	,
three	CD
days	NNS
later	RB
.	.
	
Nasdaq	DT
volume	NN
Friday	NNP
totaled	DT
167.7	DT
million	CD
shares	NNS
,	,
which	DT
was	VBD
only	RB
the	DT
fifth	JJ
busiest	DT
day	NN
so	IN
far	JJ
this	DT
year	NN
.	.
	
The	NNP
single-day	DT
record	NN
of	IN
288	DT
million	CD
shares	NNS
was	VBD
set	VBN
on	IN
Oct.	DT
21	CD
,	,
	
``	``
There	DT
was	VBD
n't	RB
a	DT
lot	NN
of	IN
volume	NN
because	IN
it	DT
was	VBD
just	RB
impossible	JJ
to	DT
get	VBP
stock	NN
moved	VBD
,	,
''	''
said	VBN
E.E.	DT
``	``
Buzzy	DT
''	''
Geduld	DT
,	,
president	NN
of	IN
Herzog	DT
,	,
Heine	NNP
,	,
Geduld	DT
,	,
a	DT
New	NNP
York	NNP
company	NN
that	WDT
makes	VBZ
markets	NNS
in	IN
thousands	NNS
of	IN
OTC	DT
issues	NNS
.	.
	
Most	RBS
of	IN
the	DT
complaints	DT
about	IN
unanswered	JJ
phone	NN
calls	VBZ
came	VBD
from	IN
regional	JJ
brokers	DT
rather	RB
than	IN
individual	JJ
investors	NNS
.	.
	
Mr.	DT
King	NNP
of	IN
Robinson-Humphrey	DT
and	CC
others	NNS
were	VBD
quick	DT
to	DT
add	DT
that	WDT
they	DT
believe	VBP
the	DT
problem	NN
stemmed	DT
more	RBR
from	IN
traders	NNS
'	'
inability	NN
to	DT
handle	DT
the	DT
volume	NN
of	IN
calls	VBZ
,	,
rather	RB
than	IN
a	DT
deliberate	JJ
attempt	NN
to	DT
avoid	DT
making	VBG
trades	NNS
.	.
	
The	NNP
subject	NN
is	VBZ
a	DT
sore	DT
one	CD
for	IN
Nasdaq	DT
and	CC
its	DT
market-making	DT
companies	NNS
,	,
which	DT
were	VBD
widely	RB
criticized	VBN
two	CD
years	NNS
ago	IN
following	VBG
complaints	DT
from	IN
investors	NNS
who	WP
could	MD
n't	RB
reach	VBP
their	DT
brokers	DT
or	CC
trade	NN
in	IN
the	DT
chaos	DT
of	IN
the	DT
crash	NN
.	.
	
Peter	NNP
DaPuzzo	DT
,	,
head	NN
of	IN
retail	JJ
equity	NN
trading	NN
at	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
,	,
declared	DT
:	:
``	``
It	PRP
was	VBD
the	DT
last	JJ
hour	NN
of	IN
trading	NN
on	IN
a	DT
Friday	NNP
.	.
	
There	DT
were	VBD
too	RB
many	JJ
phones	NNS
ringing	DT
and	CC
too	RB
many	JJ
things	NNS
happening	VBG
to	DT
expect	VBP
market	NN
makers	NNS
to	DT
be	DT
as	IN
efficient	DT
as	IN
robots	DT
.	.
	
It	PRP
was	VBD
n't	RB
intentional	DT
,	,
we	DT
were	VBD
all	RB
busy	JJ
.	.
''	''
	
James	NNP
Tarantino	DT
,	,
head	NN
of	IN
OTC	DT
trading	NN
at	IN
Hambrecht	DT
&	&
Quist	DT
in	IN
San	NNP
Francisco	NNP
,	,
said	VBN
,	,
``	``
It	PRP
was	VBD
just	RB
like	JJ
two	CD
years	NNS
ago	IN
.	.
	
Everybody	DT
was	VBD
trying	VBG
to	DT
do	VBP
the	DT
same	JJ
thing	NN
at	IN
the	DT
same	JJ
time	NN
.	.
''	''
	
Jeremiah	DT
Mullins	NNP
,	,
the	DT
OTC	DT
trading	NN
chief	NN
at	IN
Dean	NNP
Witter	NNP
Reynolds	NNP
in	IN
New	NNP
York	NNP
,	,
said	VBN
proudly	DT
that	WDT
his	DT
company	NN
executed	DT
every	DT
order	NN
it	DT
received	VBN
by	IN
the	DT
close	NN
of	IN
trading	NN
.	.
	
But	CC
,	,
he	DT
added	VBN
,	,
``	``
you	DT
can	MD
only	RB
take	VBP
one	CD
call	DT
at	IN
a	DT
time	NN
.	.
''	''
	
Market	NNP
makers	NNS
keep	VBP
supplies	DT
of	IN
stock	NN
on	IN
hand	NN
to	DT
maintain	DT
orderly	JJ
trading	NN
when	DT
imbalances	NNS
occur	DT
.	.
	
On	IN
days	NNS
like	JJ
Friday	NNP
,	,
that	WDT
means	VBZ
they	DT
must	MD
buy	DT
shares	NNS
from	IN
sellers	DT
when	DT
no	RB
one	CD
else	RB
is	VBZ
willing	JJ
to	DT
.	.
	
When	DT
selling	NN
is	VBZ
so	IN
frenzied	DT
,	,
prices	NNS
fall	NN
steeply	DT
and	CC
fast	DT
.	.
	
Two	CD
years	NNS
ago	IN
,	,
faced	VBN
with	IN
the	DT
possibility	NN
of	IN
heavy	JJ
losses	NNS
on	IN
the	DT
stocks	NNS
in	IN
their	DT
inventories	DT
,	,
market	NN
makers	NNS
themselves	DT
began	VBD
dumping	DT
shares	NNS
,	,
exacerbating	DT
the	DT
slide	NN
in	IN
OTC	DT
stock	NN
prices	NNS
.	.
	
On	IN
Friday	NNP
,	,
some	DT
market	NN
makers	NNS
were	VBD
selling	NN
again	RB
,	,
traders	NNS
said	VBN
.	.
	
But	CC
,	,
with	IN
profits	NNS
sagging	DT
on	IN
Wall	NNP
Street	NNP
since	IN
the	DT
crash	NN
,	,
companies	NNS
have	VBP
kept	VBN
smaller	JJR
share	NN
stockpiles	DT
on	IN
hand	NN
.	.
	
Mr.	DT
Tarantino	DT
of	IN
Hambrecht	DT
&	&
Quist	DT
said	VBN
some	DT
prices	NNS
fell	VBD
without	IN
trades	NNS
taking	VBG
place	NN
,	,
as	IN
market	NN
makers	NNS
kept	VBN
dropping	VBG
the	DT
prices	NNS
at	IN
which	DT
they	DT
would	MD
buy	DT
shares	NNS
.	.
	
``	``
Everyone	DT
was	VBD
hitting	DT
everyone	NN
else	RB
's	VBZ
bid	NN
,	,
''	''
he	DT
said	VBN
.	.
	
So	IN
,	,
while	IN
OTC	DT
companies	NNS
incurred	VBN
losses	NNS
on	IN
Friday	NNP
,	,
trading	NN
officials	NNS
said	VBN
the	DT
damage	NN
was	VBD
n't	RB
as	IN
bad	JJ
as	IN
it	DT
was	VBD
in	IN
1987	CD
.	.
	
``	``
Two	CD
years	NNS
ago	IN
we	DT
were	VBD
carrying	DT
huge	JJ
inventories	DT
and	CC
that	WDT
was	VBD
the	DT
big	JJ
culprit	DT
.	.
	
I	DT
do	VBP
n't	RB
know	VBP
of	IN
anyone	NN
carrying	DT
big	JJ
inventories	DT
now	RB
,	,
''	''
said	VBN
Mr.	DT
King	NNP
of	IN
Robinson-Humphrey	DT
.	.
	
Tony	DT
Cecin	DT
,	,
head	NN
of	IN
equity	NN
trading	NN
at	IN
Piper	DT
,	,
Jaffray	DT
&	&
Hopwood	DT
in	IN
Minneapolis	DT
,	,
said	VBN
that	WDT
Piper	DT
Jaffray	DT
actually	RB
made	VBN
money	NN
on	IN
Friday	NNP
.	.
	
It	PRP
helped	VBD
that	WDT
his	DT
inventory	DT
is	VBZ
a	DT
third	JJ
smaller	JJR
now	RB
than	IN
it	DT
was	VBD
two	CD
years	NNS
ago	IN
,	,
he	DT
said	VBN
.	.
	
Joseph	DT
Hardiman	DT
,	,
president	NN
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Securities	NNPS
Dealers	NNS
,	,
which	DT
oversees	VBZ
the	DT
Nasdaq	DT
computerized	VBN
trading	NN
system	NN
,	,
said	VBN
that	WDT
despite	IN
the	DT
rush	NN
of	IN
selling	NN
,	,
he	DT
never	RB
considered	VBN
the	DT
situation	DT
an	DT
``	``
emergency	NN
.	.
''	''
	
``	``
The	NNP
pace	NN
of	IN
trading	NN
was	VBD
orderly	JJ
,	,
''	''
he	DT
said	VBN
.	.
	
Nasdaq	DT
's	VBZ
Small	JJ
Order	DT
Execution	DT
System	NNP
``	``
worked	VBD
beautifully	DT
,	,
''	''
as	IN
did	VBD
the	DT
automated	DT
system	NN
for	IN
larger	JJR
trades	NNS
,	,
according	VBG
to	DT
Mr.	DT
Hardiman	DT
.	.
	
Nevertheless	RB
,	,
the	DT
shock	NN
of	IN
another	DT
steep	JJ
plunge	NN
in	IN
stock	NN
prices	NNS
undoubtedly	RB
will	MD
shake	DT
many	JJ
investors	NNS
'	'
confidence	NN
.	.
	
In	IN
the	DT
past	NN
,	,
the	DT
OTC	DT
market	NN
thrived	DT
on	IN
a	DT
firm	NN
base	NN
of	IN
small-investor	DT
participation	NN
.	.
	
Because	IN
Nasdaq	DT
's	VBZ
trading	NN
volume	NN
has	VBZ
n't	RB
returned	VBN
to	DT
pre-crash	DT
levels	NNS
,	,
traders	NNS
and	CC
OTC	DT
market	NN
officials	NNS
hope	VB
the	DT
damage	NN
wo	MD
n't	RB
be	DT
permanent	JJ
.	.
	
But	CC
they	DT
are	VBP
worried	VBN
.	.
	
``	``
We	DT
were	VBD
just	RB
starting	VBG
to	DT
get	VBP
the	DT
public	JJ
's	VBZ
confidence	NN
back	VB
,	,
''	''
lamented	DT
Mr.	DT
Mullins	NNP
of	IN
Dean	NNP
Witter	NNP
.	.
	
More	JJR
troubling	DT
is	VBZ
the	DT
prospect	DT
that	WDT
the	DT
overall	JJ
collapse	NN
in	IN
stock	NN
prices	NNS
could	MD
permanently	DT
erode	DT
the	DT
base	NN
of	IN
small-investor	DT
support	NN
the	DT
OTC	DT
market	NN
was	VBD
struggling	DT
to	DT
rebuild	DT
in	IN
the	DT
wake	NN
of	IN
the	DT
October	NNP
1987	CD
crash	NN
.	.
	
Mr.	DT
Cecin	DT
of	IN
Piper	DT
Jaffray	DT
says	VBZ
some	DT
action	NN
from	IN
government	NN
policy	NN
makers	NNS
would	MD
allay	DT
investor	NN
fears	DT
.	.
	
It	PRP
wo	MD
n't	RB
take	VBP
much	JJ
more	RBR
to	DT
``	``
scare	DT
the	DT
hell	NN
out	IN
of	IN
retail	JJ
investors	NNS
,	,
''	''
he	DT
says	VBZ
.	.
	
The	NNP
sellers	DT
on	IN
Friday	NNP
came	VBD
from	IN
all	RB
corners	NNS
of	IN
the	DT
OTC	DT
market	NN
--	--
big	JJ
and	CC
small	JJ
institutional	DT
investors	NNS
,	,
as	IN
well	RB
as	IN
individual	JJ
investors	NNS
and	CC
market	NN
makers	NNS
.	.
	
But	CC
grateful	DT
traders	NNS
said	VBN
the	DT
sell	NN
orders	NNS
generally	RB
ranged	DT
from	IN
20,000	CD
shares	NNS
to	DT
50,000	DT
shares	NNS
,	,
compared	VBN
with	IN
blocks	DT
of	IN
500,000	DT
shares	NNS
or	CC
more	RBR
two	CD
years	NNS
ago	IN
.	.
	
Shearson	NNP
's	VBZ
Mr.	DT
DaPuzzo	DT
said	VBN
retail	JJ
investors	NNS
nervously	DT
sold	VBN
stock	NN
Friday	NNP
and	CC
never	RB
returned	VBN
to	DT
bargain-hunt	DT
.	.
	
Institutional	DT
investors	NNS
,	,
which	DT
had	VBN
been	VBN
selling	NN
stock	NN
throughout	IN
last	JJ
week	NN
to	DT
lock	NN
in	IN
handsome	DT
gains	NNS
made	VBN
through	IN
the	DT
third	JJ
quarter	NN
,	,
were	VBD
calmer	DT
.	.
	
``	``
We	DT
had	VBN
a	DT
good	JJ
amount	NN
of	IN
selling	NN
from	IN
institutions	NNS
,	,
but	CC
not	RB
as	IN
much	JJ
panic	NN
,	,
''	''
Mr.	DT
DaPuzzo	DT
said	VBN
.	.
	
``	``
If	IN
they	DT
could	MD
n't	RB
sell	NN
,	,
some	DT
of	IN
them	DT
put	VBN
the	DT
shares	NNS
back	VB
on	IN
the	DT
shelf	DT
.	.
''	''
	
In	IN
addition	NN
,	,
he	DT
said	VBN
,	,
some	DT
bigger	JJR
institutional	DT
investors	NNS
placed	VBN
bids	NNS
to	DT
buy	DT
some	DT
OTC	DT
stocks	NNS
whose	DT
prices	NNS
were	VBD
beaten	VBN
down	IN
.	.
	
In	IN
addition	NN
,	,
Mr.	DT
DaPuzzo	DT
said	VBN
computer-guided	DT
program	NN
selling	NN
of	IN
OTC	DT
stocks	NNS
in	IN
the	DT
Russell	DT
Index	NNP
of	IN
2000	CD
small	JJ
stocks	NNS
and	CC
the	DT
Standard	NNP
&	&
Poor	NNP
's	VBZ
500-stock	DT
Index	NNP
sent	DT
occasional	DT
``	``
waves	NNS
``	``
through	IN
the	DT
market	NN
.	.
	
Nasdaq	DT
's	VBZ
biggest	JJS
stocks	NNS
were	VBD
hammered	VBN
.	.
	
The	NNP
Nasdaq	DT
100	CD
Index	NNP
of	IN
the	DT
largest	JJS
nonfinancial	DT
issues	NNS
,	,
including	VBG
the	DT
big	JJ
OTC	DT
technology	NN
issues	NNS
,	,
tumbled	VBD
4.2	DT
%	%
,	,
or	CC
19.76	DT
,	,
to	DT
449.33	DT
.	.
	
The	NNP
Nasdaq	DT
Financial	NNP
Index	NNP
of	IN
giant	DT
insurance	NN
and	CC
banking	NN
stocks	NNS
dropped	VBN
2	CD
%	%
,	,
or	CC
9.31	DT
,	,
to	DT
462.98	DT
.	.
	
The	NNP
OTC	DT
market	NN
has	VBZ
only	RB
a	DT
handful	DT
of	IN
takeover-related	JJ
stocks	NNS
.	.
	
But	CC
they	DT
fell	VBD
sharply	RB
.	.
	
McCaw	NNP
Cellular	NNP
Communications	NNPS
,	,
for	IN
instance	NN
,	,
has	VBZ
offered	VBN
to	DT
buy	DT
LIN	NNP
Broadcasting	NNP
as	IN
well	RB
as	IN
Metromedia	DT
's	VBZ
New	NNP
York	NNP
City	NNP
cellular	JJ
telephone	NN
interests	NNS
,	,
and	CC
in	IN
a	DT
separate	JJ
transaction	NN
,	,
sell	NN
certain	JJ
McCaw	NNP
properties	NNS
to	DT
Contel	DT
Cellular	NNP
.	.
	
McCaw	NNP
lost	VBN
8	CD
%	%
,	,
or	CC
3	CD
1\/2	CD
,	,
to	DT
40	CD
.	.
	
LIN	NNP
Broadcasting	NNP
,	,
dropped	VBN
5	CD
1\/2	CD
,	,
or	CC
5	CD
%	%
,	,
to	DT
107	CD
1\/2	CD
.	.
	
The	NNP
turnover	DT
in	IN
both	DT
issues	NNS
was	VBD
roughly	RB
normal	JJ
.	.
	
On	IN
a	DT
day	NN
when	DT
negative	JJ
takeover-related	JJ
news	NN
did	VBD
n't	RB
sit	VBP
well	RB
with	IN
investors	NNS
,	,
Commercial	NNP
Intertech	DT
,	,
a	DT
maker	NN
of	IN
engineered	DT
metal	NN
parts	NNS
,	,
said	VBN
Haas	DT
&	&
Partners	NNPS
advised	VBN
it	DT
that	WDT
it	DT
does	VBZ
n't	RB
plan	NN
to	DT
pursue	DT
its	DT
previously	RB
reported	VBN
$	$
27.50-a-share	DT
bid	NN
to	DT
buy	DT
the	DT
company	NN
.	.
	
Commercial	NNP
Intertech	DT
plummeted	VBD
6	CD
to	DT
26	CD
.	.
	
The	NNP
issues	NNS
of	IN
companies	NNS
with	IN
ties	NNS
to	DT
the	DT
junk	NN
bond	NN
market	NN
also	RB
tumbled	VBD
Friday	NNP
.	.
	
On	IN
the	DT
OTC	DT
market	NN
,	,
First	NNP
Executive	DT
,	,
a	DT
big	JJ
buyer	NN
of	IN
the	DT
high-risk	JJ
,	,
high-yield	JJ
issues	NNS
,	,
slid	DT
2	CD
to	DT
12	CD
1\/4	CD
.	.
	
Among	IN
other	JJ
OTC	DT
issues	NNS
,	,
Intel	NNP
,	,
dropped	VBN
2	CD
1\/8	CD
to	DT
33	DT
7\/8	CD
;	;
Laidlaw	DT
Transportation	NNP
lost	VBN
1	CD
1\/8	CD
to	DT
19	CD
1\/2	CD
;	;
the	DT
American	JJ
depositary	DT
receipts	DT
of	IN
Jaguar	DT
were	VBD
off	IN
1\/4	CD
to	DT
10	CD
1\/4	CD
;	;
MCI	DT
Communications	NNPS
slipped	DT
2	CD
1\/4	CD
to	DT
43	DT
1\/2	CD
;	;
Apple	NNP
Computer	NNP
fell	VBD
3	CD
to	DT
45	CD
3\/4	CD
and	CC
Nike	DT
dropped	VBN
2	CD
1\/4	CD
to	DT
66	CD
3\/4	CD
.	.
	
Friday	NNP
,	,
October	NNP
13	CD
,	,
1989	CD
	
The	NNP
key	NN
U.S.	DT
and	CC
foreign	JJ
annual	JJ
interest	NN
rates	NNS
below	IN
are	VBP
a	DT
guide	DT
to	DT
general	NN
levels	NNS
but	CC
do	VBP
n't	RB
always	DT
represent	DT
actual	JJ
transactions	NNS
.	.
	
PRIME	DT
RATE	DT
:	:
	
10	CD
1\/2	CD
%	%
.	.
	
The	NNP
base	NN
rate	NN
on	IN
corporate	JJ
loans	NNS
at	IN
large	JJ
U.S.	DT
money	NN
center	NN
commercial	JJ
banks	NNS
.	.
	
FEDERAL	DT
FUNDS	DT
:	:
	
8	CD
13\/16	DT
%	%
high	JJ
,	,
8	CD
1\/2	CD
%	%
low	JJ
,	,
8	CD
5\/8	CD
%	%
near	IN
closing	VBG
bid	NN
,	,
8	CD
3\/4	CD
%	%
offered	VBN
.	.
	
Reserves	DT
traded	VBN
among	IN
commercial	JJ
banks	NNS
for	IN
overnight	DT
use	NN
in	IN
amounts	NNS
of	IN
$	$
1	CD
million	CD
or	CC
more	RBR
.	.
	
Source	DT
:	:
Fulton	DT
Prebon	DT
(	(
U.S.A	DT
.	.
)	)
Inc	NNP
.	.
	
DISCOUNT	DT
RATE	DT
:	:
	
7	CD
%	%
.	.
	
The	NNP
charge	NN
on	IN
loans	NNS
to	DT
depository	DT
institutions	NNS
by	IN
the	DT
New	NNP
York	NNP
Federal	NNP
Reserve	NNP
Bank	NNP
.	.
	
CALL	DT
MONEY	DT
:	:
	
9	CD
3\/4	CD
%	%
to	DT
10	CD
%	%
.	.
	
The	NNP
charge	NN
on	IN
loans	NNS
to	DT
brokers	DT
on	IN
stock	NN
exchange	NN
collateral	DT
.	.
	
COMMERCIAL	DT
PAPER	DT
placed	VBN
directly	RB
by	IN
General	NNP
Motors	NNPS
Acceptance	DT
Corp.	DT
:	:
	
8.60	DT
%	%
30	CD
to	DT
44	DT
days	NNS
;	;
8.55	DT
%	%
45	CD
to	DT
59	CD
days	NNS
;	;
8.375	DT
%	%
60	CD
to	DT
79	CD
days	NNS
;	;
8.50	DT
%	%
80	CD
to	DT
89	DT
days	NNS
;	;
8.25	DT
%	%
90	CD
to	DT
119	DT
days	NNS
;	;
8.125	DT
%	%
120	CD
to	DT
149	DT
days	NNS
;	;
8	CD
%	%
150	CD
to	DT
179	DT
days	NNS
;	;
7.625	DT
%	%
180	DT
to	DT
270	CD
days	NNS
.	.
	
COMMERCIAL	DT
PAPER	DT
:	:
	
High-grade	DT
unsecured	DT
notes	NNS
sold	VBN
through	IN
dealers	NNS
by	IN
major	JJ
corporations	NNS
in	IN
multiples	DT
of	IN
$	$
1,000	CD
:	:
	
8.65	DT
%	%
30	CD
days	NNS
;	;
8.55	DT
%	%
60	CD
days	NNS
;	;
8.55	DT
%	%
90	CD
days	NNS
.	.
	
CERTIFICATES	DT
OF	DT
DEPOSIT	DT
:	:
	
8.15	DT
%	%
one	CD
month	NN
;	;
8.15	DT
%	%
two	CD
months	NNS
;	;
8.13	DT
%	%
three	CD
months	NNS
;	;
8.11	DT
%	%
six	CD
months	NNS
;	;
8.08	DT
%	%
one	CD
year	NN
.	.
	
Average	NNP
of	IN
top	NN
rates	NNS
paid	VBN
by	IN
major	JJ
New	NNP
York	NNP
banks	NNS
on	IN
primary	JJ
new	JJ
issues	NNS
of	IN
negotiable	DT
C.D.s	DT
,	,
usually	RB
on	IN
amounts	NNS
of	IN
$	$
1	CD
million	CD
and	CC
more	RBR
.	.
	
The	NNP
minimum	JJ
unit	NN
is	VBZ
$	$
100,000	DT
.	.
	
Typical	DT
rates	NNS
in	IN
the	DT
secondary	DT
market	NN
:	:
	
8.65	DT
%	%
one	CD
month	NN
;	;
8.65	DT
%	%
three	CD
months	NNS
;	;
8.55	DT
%	%
six	CD
months	NNS
.	.
	
BANKERS	DT
ACCEPTANCES	DT
:	:
	
8.52	DT
%	%
30	CD
days	NNS
;	;
8.37	DT
%	%
60	CD
days	NNS
;	;
8.15	DT
%	%
90	CD
days	NNS
;	;
7.98	DT
%	%
120	CD
days	NNS
;	;
7.92	DT
%	%
150	CD
days	NNS
;	;
7.80	DT
%	%
180	DT
days	NNS
.	.
	
Negotiable	DT
,	,
bank-backed	DT
business	NN
credit	NN
instruments	NNS
typically	DT
financing	NN
an	DT
import	DT
order	NN
.	.
	
LONDON	DT
LATE	DT
EURODOLLARS	DT
:	:
	
8	CD
13\/16	DT
%	%
to	DT
8	CD
11\/16	DT
%	%
one	CD
month	NN
;	;
8	CD
13\/16	DT
%	%
to	DT
8	CD
11\/16	DT
%	%
two	CD
months	NNS
;	;
8	CD
13\/16	DT
%	%
to	DT
8	CD
11\/16	DT
%	%
three	CD
months	NNS
;	;
8	CD
3\/4	CD
%	%
to	DT
8	CD
5\/8	CD
%	%
four	CD
months	NNS
;	;
8	CD
11\/16	DT
%	%
to	DT
8	CD
9\/16	DT
%	%
five	CD
months	NNS
;	;
8	CD
5\/8	CD
%	%
to	DT
8	CD
1\/2	CD
%	%
six	CD
months	NNS
.	.
	
LONDON	DT
INTERBANK	DT
OFFERED	DT
RATES	DT
(	(
LIBOR	DT
)	)
:	:
	
8	CD
3\/4	CD
%	%
one	CD
month	NN
;	;
8	CD
3\/4	CD
%	%
three	CD
months	NNS
;	;
8	CD
9\/16	DT
%	%
six	CD
months	NNS
;	;
8	CD
9\/16	DT
%	%
one	CD
year	NN
.	.
	
The	NNP
average	NN
of	IN
interbank	DT
offered	VBN
rates	NNS
for	IN
dollar	NN
deposits	DT
in	IN
the	DT
London	NNP
market	NN
based	VBN
on	IN
quotations	NNS
at	IN
five	CD
major	JJ
banks	NNS
.	.
	
FOREIGN	DT
PRIME	DT
RATES	DT
:	:
	
Canada	NNP
13.50	DT
%	%
;	;
Germany	NNP
8.50	DT
%	%
;	;
Japan	NNP
4.875	DT
%	%
;	;
Switzerland	DT
8.50	DT
%	%
;	;
Britain	NNP
15	CD
%	%
.	.
	
These	DT
rate	NN
indications	NNS
are	VBP
n't	RB
directly	RB
comparable	JJ
;	;
lending	NN
practices	DT
vary	DT
widely	RB
by	IN
location	NN
.	.
	
TREASURY	DT
BILLS	DT
:	:
	
Results	DT
of	IN
the	DT
Tuesday	DT
,	,
October	NNP
10	CD
,	,
1989	CD
,	,
auction	DT
of	IN
short-term	JJ
U.S.	DT
government	NN
bills	NNS
,	,
sold	VBN
at	IN
a	DT
discount	DT
from	IN
face	NN
value	NN
in	IN
units	NNS
of	IN
$	$
10,000	CD
to	DT
$	$
1	CD
million	CD
:	:
	
7.63	DT
%	%
13	CD
weeks	NNS
;	;
7.60	DT
%	%
26	CD
weeks	NNS
.	.
	
FEDERAL	DT
HOME	DT
LOAN	DT
MORTGAGE	DT
CORP	DT
.	.
(	(
Freddie	DT
Mac	DT
)	)
:	:
	
Posted	DT
yields	NNS
on	IN
30-year	JJ
mortgage	NN
commitments	NNS
for	IN
delivery	NN
within	IN
30	CD
days	NNS
.	.
	
9.91	DT
%	%
,	,
standard	NN
conventional	DT
fixedrate	DT
mortgages	DT
;	;
7.875	DT
%	%
,	,
2	CD
%	%
rate	NN
capped	DT
one-year	DT
adjustable	DT
rate	NN
mortgages	DT
.	.
	
Source	DT
:	:
Telerate	DT
Systems	NNPS
Inc	NNP
.	.
	
FEDERAL	DT
NATIONAL	DT
MORTGAGE	DT
ASSOCIATION	DT
(	(
Fannie	DT
Mae	NNP
)	)
:	:
	
Posted	DT
yields	NNS
on	IN
30	CD
year	NN
mortgage	NN
commitments	NNS
for	IN
delivery	NN
within	IN
30	CD
days	NNS
(	(
priced	VBN
at	IN
par	DT
)	)
	
9.86	DT
%	%
,	,
standard	NN
conventional	DT
fixed-rate	DT
mortgages	DT
;	;
8.85	DT
%	%
,	,
6\/2	DT
rate	NN
capped	DT
one-year	DT
adjustable	DT
rate	NN
mortgages	DT
.	.
	
Source	DT
:	:
Telerate	DT
Systems	NNPS
Inc	NNP
.	.
	
MERRILL	DT
LYNCH	DT
READY	DT
ASSETS	DT
TRUST	DT
:	:
	
8.33	DT
%	%
.	.
	
Annualized	DT
average	NN
rate	NN
of	IN
return	NN
after	IN
expenses	NNS
for	IN
the	DT
past	NN
30	CD
days	NNS
;	;
not	RB
a	DT
forecast	NN
of	IN
future	NN
returns	DT
.	.
	
Pension	DT
funds	NNS
,	,
insurers	DT
and	CC
other	JJ
behemoths	DT
of	IN
the	DT
investing	DT
world	NN
said	VBN
they	DT
began	VBD
scooping	DT
up	IN
stocks	NNS
during	IN
Friday	NNP
's	VBZ
market	NN
rout	NN
.	.
	
And	CC
they	DT
plan	NN
to	DT
buy	DT
more	RBR
today	NN
.	.
	
Rightly	DT
or	CC
wrongly	DT
,	,
many	JJ
giant	DT
institutional	DT
investors	NNS
appear	VBP
to	DT
be	DT
fighting	VBG
the	DT
latest	JJS
war	NN
by	IN
applying	DT
the	DT
lesson	NN
they	DT
learned	DT
in	IN
the	DT
October	NNP
1987	CD
crash	NN
:	:
Buying	VBG
at	IN
the	DT
bottom	NN
pays	DT
off	IN
.	.
	
To	NN
be	DT
sure	JJ
,	,
big	JJ
investors	NNS
might	MD
put	VBN
away	RB
their	DT
checkbooks	DT
in	IN
a	DT
hurry	DT
if	IN
stocks	NNS
open	JJ
sharply	RB
lower	JJR
today	NN
.	.
	
They	DT
could	MD
still	RB
panic	NN
and	CC
bail	DT
out	IN
of	IN
the	DT
market	NN
.	.
	
But	CC
their	DT
1987	CD
performance	NN
indicates	DT
that	WDT
they	DT
wo	MD
n't	RB
abandon	DT
stocks	NNS
unless	DT
conditions	NNS
get	VBP
far	JJ
worse	DT
.	.
	
``	``
Last	JJ
time	NN
,	,
we	DT
got	VBN
rewarded	DT
for	IN
going	VBG
out	IN
and	CC
buying	NN
stocks	NNS
when	DT
the	DT
panic	NN
was	VBD
the	DT
worst	JJS
,	,
''	''
said	VBN
John	NNP
W.	DT
Rogers	DT
,	,
president	NN
of	IN
Chicago-based	JJ
Ariel	DT
Capital	NNP
Management	DT
Inc.	DT
,	,
which	DT
manages	VBZ
$	$
1.1	CD
billion	CD
of	IN
stocks	NNS
.	.
	
Mr.	DT
Rogers	DT
spent	VBN
half	DT
his	DT
cash	NN
on	IN
hand	NN
Friday	NNP
for	IN
``	``
our	DT
favorite	DT
stocks	NNS
that	WDT
have	VBP
fallen	VBN
apart	DT
.	.
''	''
	
He	DT
expects	VBZ
to	DT
invest	DT
the	DT
rest	NN
if	IN
the	DT
market	NN
weakens	DT
further	JJ
.	.
	
Denver-based	JJ
portfolio	NN
manager	NN
James	NNP
Craig	NNP
was	VBD
n't	RB
daunted	DT
when	DT
Friday	NNP
's	VBZ
rout	NN
shaved	DT
$	$
40	CD
million	CD
from	IN
the	DT
value	NN
of	IN
the	DT
$	$
752	DT
million	CD
Janus	NNP
Fund	NNP
he	DT
oversees	VBZ
.	.
	
``	``
I	DT
waited	DT
to	DT
make	VBP
sure	JJ
all	RB
the	DT
program	NN
trades	NNS
had	VBN
kicked	VBD
through	IN
,	,
''	''
he	DT
said	VBN
.	.
	
Then	RB
he	DT
jumped	VBD
into	IN
the	DT
market	NN
:	:
	
``	``
I	DT
spent	VBN
$	$
30	CD
million	CD
in	IN
the	DT
last	JJ
half-hour	NN
.	.
''	''
	
Other	JJ
money	NN
managers	NNS
also	RB
opened	VBN
their	DT
wallets	DT
.	.
	
``	``
I	DT
was	VBD
buying	NN
at	IN
the	DT
close	NN
(	(
Friday	NNP
)	)
and	CC
I	DT
'll	MD
be	DT
buying	NN
again	RB
because	IN
I	DT
know	VBP
we	DT
're	VBP
getting	VBG
good	JJ
value	NN
,	,
''	''
said	VBN
Frederick	DT
A.	DT
Moran	DT
,	,
president	NN
of	IN
Moran	DT
Asset	DT
Management	DT
Inc.	DT
,	,
Greenwich	DT
,	,
Conn	DT
.	.
	
``	``
There	DT
is	VBZ
no	RB
justification	NN
on	IN
the	DT
fundamental	JJ
level	NN
for	IN
this	DT
crash	NN
.	.
''	''
	
Unlike	DT
mutual	JJ
funds	NNS
,	,
which	DT
can	MD
be	DT
forced	VBD
to	DT
sell	NN
stockholdings	DT
when	DT
investors	NNS
rush	NN
to	DT
withdraw	DT
money	NN
,	,
big	JJ
investors	NNS
such	JJ
as	IN
pension	NN
funds	NNS
and	CC
insurance	NN
companies	NNS
can	MD
decide	DT
to	DT
ride	DT
out	IN
market	NN
storms	DT
without	IN
jettisoning	DT
stock	NN
.	.
	
Most	RBS
often	RB
,	,
they	DT
do	VBP
just	RB
that	WDT
,	,
because	IN
stocks	NNS
have	VBP
proved	VBD
to	DT
be	DT
the	DT
best-performing	DT
long-term	JJ
investment	NN
,	,
attracting	DT
about	IN
$	$
1	CD
trillion	DT
from	IN
pension	NN
funds	NNS
alone	RB
.	.
	
``	``
If	IN
you	DT
bought	VBN
after	IN
the	DT
crash	NN
,	,
you	DT
did	VBD
very	RB
very	RB
well	RB
off	IN
the	DT
bottom	NN
,	,
''	''
said	VBN
Stephen	NNP
B.	DT
Timbers	NNP
,	,
chief	NN
investment	NN
officer	NN
of	IN
Chicago-based	JJ
Kemper	NNP
Financial	NNP
Services	NNPS
Inc	NNP
.	.
	
The	NNP
$	$
56	CD
billion	CD
California	NNP
Public	NNP
Employees	NNS
Retirement	DT
System	NNP
,	,
for	IN
one	CD
,	,
added	VBN
$	$
1	CD
billion	CD
to	DT
its	DT
stock	NN
portfolio	NN
two	CD
years	NNS
ago	IN
.	.
	
``	``
The	NNP
last	JJ
crash	NN
taught	DT
institutional	DT
investors	NNS
that	WDT
they	DT
have	VBP
to	DT
be	DT
long-term	JJ
holders	NNS
,	,
and	CC
that	WDT
they	DT
ca	MD
n't	RB
react	DT
to	DT
short-term	JJ
events	NNS
,	,
good	JJ
or	CC
bad	JJ
,	,
''	''
said	VBN
Stephen	NNP
L.	DT
Nesbitt	DT
,	,
senior	JJ
vice	NN
president	NN
for	IN
the	DT
pension	NN
consultants	DT
Wilshire	DT
Associates	NNPS
in	IN
Santa	DT
Monica	DT
,	,
Calif	NNP
.	.
	
``	``
Those	DT
that	WDT
pulled	VBN
out	IN
(	(
of	IN
stocks	NNS
)	)
regretted	DT
it	DT
,	,
''	''
he	DT
said	VBN
,	,
``	``
so	IN
I	DT
doubt	DT
you	DT
'll	MD
see	VBP
any	DT
significant	JJ
changes	NNS
''	''
in	IN
institutional	DT
portfolios	DT
as	IN
a	DT
result	NN
of	IN
Friday	NNP
's	VBZ
decline	NN
.	.
	
Stocks	NNS
,	,
as	IN
measured	DT
by	IN
the	DT
Standard	NNP
&	&
Poor	NNP
's	VBZ
500-stock	DT
index	NN
,	,
have	VBP
been	VBN
stellar	DT
performers	DT
this	DT
year	NN
,	,
rising	VBG
27.97	DT
%	%
before	IN
Friday	NNP
's	VBZ
plunge	NN
,	,
excluding	DT
dividends	NNS
.	.
	
Even	RB
Friday	NNP
's	VBZ
slump	NN
leaves	DT
investors	NNS
ahead	RB
more	RBR
than	IN
20	CD
%	%
,	,
well	RB
above	IN
the	DT
annual	JJ
average	NN
for	IN
stocks	NNS
over	IN
several	JJ
decades	NNS
.	.
	
``	``
You	DT
could	MD
go	VBP
down	IN
400	CD
points	NNS
and	CC
still	RB
have	VBP
a	DT
good	JJ
year	NN
in	IN
the	DT
market	NN
,	,
''	''
said	VBN
James	NNP
D.	DT
Awad	DT
,	,
president	NN
of	IN
New	NNP
York-based	JJ
BMI	DT
Capital	NNP
Corp	NNP
.	.
	
Mr.	DT
Awad	DT
,	,
however	RB
,	,
worries	DT
that	WDT
the	DT
market	NN
``	``
could	MD
go	VBP
down	IN
800	CD
or	CC
900	DT
points	NNS
in	IN
the	DT
next	JJ
few	JJ
days	NNS
.	.
	
It	PRP
can	MD
happen	DT
before	IN
you	DT
can	MD
turn	NN
around	IN
.	.
''	''
	
He	DT
said	VBN
he	DT
discerns	DT
many	JJ
parallels	DT
with	IN
1987	CD
,	,
including	VBG
the	DT
emphasis	DT
on	IN
takeover	NN
stocks	NNS
and	CC
the	DT
re-emergence	DT
of	IN
computerized	VBN
program	NN
trading	NN
.	.
	
``	``
The	NNP
only	RB
thing	NN
you	DT
do	VBP
n't	RB
have	VBP
,	,
''	''
he	DT
said	VBN
,	,
``	``
is	VBZ
the	DT
`	`
portfolio	NN
insurance	NN
'	'
phenomenon	DT
overlaid	DT
on	IN
the	DT
rest	NN
.	.
''	''
	
Most	RBS
institutional	DT
investors	NNS
have	VBP
abandoned	DT
the	DT
portfolio	NN
insurance	NN
hedging	DT
technique	DT
,	,
which	DT
is	VBZ
widely	RB
thought	VBN
to	DT
have	VBP
worsened	DT
the	DT
1987	CD
crash	NN
.	.
	
Not	RB
really	RB
insurance	NN
,	,
this	DT
tactic	DT
was	VBD
designed	VBN
to	DT
soften	DT
the	DT
blow	NN
of	IN
declining	VBG
stock	NN
prices	NNS
and	CC
generate	DT
an	DT
offsetting	DT
profit	NN
by	IN
selling	NN
waves	NNS
of	IN
S&P	NNP
futures	NNS
contracts	NNS
.	.
	
In	IN
its	DT
severest	DT
test	NN
,	,
the	DT
$	$
60	CD
billion	CD
of	IN
portfolio	NN
insurance	NN
in	IN
effect	NN
in	IN
the	DT
1987	CD
crash	NN
did	VBD
n't	RB
work	NN
,	,
as	IN
stock	NN
buyers	NNS
disappeared	VBD
and	CC
stock	NN
and	CC
futures	NNS
prices	NNS
became	VBD
disconnected	DT
.	.
	
Even	RB
without	IN
portfolio	NN
insurance	NN
,	,
market	NN
conditions	NNS
were	VBD
grim	JJ
Friday	NNP
,	,
money	NN
managers	NNS
said	VBN
.	.
	
Neil	NNP
Weisman	NNP
,	,
whose	DT
New	NNP
York-based	JJ
Chilmark	NNP
Capital	NNP
Partners	NNPS
had	VBN
converted	VBN
85	CD
%	%
of	IN
its	DT
$	$
220	DT
million	CD
investment	NN
pool	DT
to	DT
cash	NN
in	IN
recent	JJ
months	NNS
,	,
said	VBN
he	DT
was	VBD
besieged	DT
by	IN
Wall	NNP
Street	NNP
firms	NNS
Friday	NNP
asking	VBG
him	DT
to	DT
take	VBP
stock	NN
off	IN
their	DT
hands	NNS
.	.
	
``	``
We	DT
got	VBN
calls	VBZ
from	IN
big	JJ
block	NN
houses	NNS
asking	VBG
us	DT
if	IN
we	DT
want	VBP
to	DT
make	VBP
bids	NNS
on	IN
anything	NN
,	,
''	''
said	VBN
Mr.	DT
Weisman	NNP
,	,
who	WP
,	,
happy	JJ
with	IN
his	DT
returns	DT
on	IN
investments	NNS
chalked	DT
up	IN
earlier	JJR
,	,
declined	VBD
the	DT
offers	NNS
.	.
	
Mr.	DT
Weisman	NNP
predicts	DT
stocks	NNS
will	MD
appear	VBP
to	DT
stabilize	VBP
in	IN
the	DT
next	JJ
few	JJ
days	NNS
before	IN
declining	VBG
again	RB
,	,
trapping	DT
more	RBR
investors	NNS
.	.
	
``	``
I	DT
think	VBP
it	DT
will	MD
be	DT
a	DT
rigor	DT
mortis	DT
rally	NN
,	,
''	''
he	DT
said	VBN
.	.
	
Meanwhile	RB
,	,
Friday	NNP
brought	VBN
a	DT
reprieve	DT
for	IN
money	NN
managers	NNS
whose	DT
investment	NN
styles	DT
had	VBN
put	VBN
them	DT
at	IN
odds	DT
with	IN
the	DT
market	NN
rally	NN
.	.
	
Especially	RB
gleeful	DT
were	VBD
the	DT
short	JJ
sellers	DT
,	,
who	WP
have	VBP
been	VBN
pounded	DT
by	IN
this	DT
year	NN
's	VBZ
market	NN
climb	DT
.	.
	
The	NNP
shorts	DT
sell	NN
borrowed	VBN
shares	NNS
,	,
hoping	VBG
to	DT
profit	NN
by	IN
replacing	DT
them	DT
later	RB
at	IN
a	DT
lower	JJR
price	NN
.	.
	
The	NNP
nation	NN
's	VBZ
largest	JJS
short-selling	DT
operation	NN
is	VBZ
Feshbach	DT
Brothers	DT
,	,
Palo	DT
Alto	DT
,	,
Calif.	DT
,	,
which	DT
said	VBN
last	JJ
May	NNP
that	WDT
its	DT
short	JJ
positions	NNS
had	VBN
shown	VBN
losses	NNS
of	IN
10	CD
%	%
for	IN
the	DT
year	NN
up	IN
to	DT
that	WDT
point	NN
.	.
	
All	DT
that	WDT
now	RB
has	VBZ
changed	VBN
.	.
	
``	``
We	DT
're	VBP
ahead	RB
for	IN
the	DT
year	NN
because	IN
of	IN
Friday	NNP
,	,
''	''
said	VBN
the	DT
firm	NN
's	VBZ
Kurt	DT
Feshbach	DT
.	.
	
``	``
We	DT
're	VBP
not	RB
making	VBG
a	DT
killing	NN
,	,
but	CC
we	DT
had	VBN
a	DT
good	JJ
day	NN
.	.
	
Food	NN
and	CC
Drug	NNP
Administration	NN
spokesman	NN
Jeff	DT
Nesbit	DT
said	VBN
the	DT
agency	NN
has	VBZ
turned	VBN
over	IN
evidence	NN
in	IN
a	DT
criminal	JJ
investigation	NN
concerning	VBG
Vitarine	DT
Pharmaceuticals	DT
Inc.	DT
to	TO
the	DT
U.S.	DT
Attorney	DT
's	VBZ
office	NN
in	IN
Baltimore	DT
.	.
	
Neither	DT
Vitarine	DT
nor	CC
any	DT
of	IN
the	DT
Springfield	DT
Gardens	DT
,	,
N.Y.	DT
,	,
company	NN
's	VBZ
officials	NNS
or	CC
employees	NNS
have	VBP
been	VBN
charged	VBD
with	IN
any	DT
crimes	DT
.	.
	
Vitarine	DT
won	VBD
approval	NN
to	DT
market	NN
a	DT
version	NN
of	IN
a	DT
blood	DT
pressure	NN
medicine	DT
but	CC
acknowledged	VBD
that	WDT
it	DT
substituted	DT
a	DT
SmithKline	DT
Beecham	DT
PLC	NNP
product	NN
as	IN
its	DT
own	JJ
in	IN
tests	DT
.	.
	
Mr.	DT
Nesbit	DT
also	RB
said	VBN
the	DT
FDA	DT
has	VBZ
asked	VBN
Bolar	DT
Pharmaceutical	DT
Co.	DT
to	TO
recall	DT
at	IN
the	DT
retail	JJ
level	NN
its	DT
urinary	DT
tract	DT
antibiotic	DT
.	.
	
But	CC
so	IN
far	JJ
the	DT
company	NN
has	VBZ
n't	RB
complied	DT
with	IN
that	WDT
request	NN
,	,
the	DT
spokesman	NN
said	VBN
.	.
	
Bolar	DT
,	,
the	DT
subject	NN
of	IN
a	DT
criminal	JJ
investigation	NN
by	IN
the	DT
FDA	DT
and	CC
the	DT
Inspector	DT
General	NNP
's	VBZ
office	NN
of	IN
the	DT
Health	DT
and	CC
Human	DT
Services	NNPS
Department	NNP
,	,
only	RB
agreed	VBN
to	DT
recall	DT
two	CD
strengths	DT
of	IN
its	DT
version	NN
of	IN
Macrodantin	DT
``	``
as	IN
far	JJ
down	IN
as	IN
direct	JJ
customers	NNS
,	,
mostly	RB
wholesalers	NNS
,	,
''	''
Mr.	DT
Nesbit	DT
said	VBN
.	.
	
Bolar	DT
,	,
of	IN
Copiague	DT
,	,
N.Y.	DT
,	,
earlier	JJR
began	VBD
a	DT
voluntary	JJ
recall	DT
of	IN
both	DT
its	DT
100	CD
milligram	DT
and	CC
50	CD
milligram	DT
versions	DT
of	IN
the	DT
drug	NN
.	.
	
The	NNP
FDA	DT
has	VBZ
said	VBN
it	DT
presented	VBN
evidence	NN
it	DT
uncovered	DT
to	DT
the	DT
company	NN
indicating	VBG
that	WDT
Bolar	DT
substituted	DT
the	DT
brand-name	DT
product	NN
for	IN
its	DT
own	JJ
to	DT
gain	NN
government	NN
approval	NN
to	DT
sell	NN
generic	DT
versions	DT
of	IN
Macrodantin	DT
.	.
	
Bolar	DT
has	VBZ
denied	VBD
that	WDT
it	DT
switched	DT
the	DT
brand-name	DT
product	NN
for	IN
its	DT
own	JJ
in	IN
such	JJ
testing	DT
.	.
	
The	NNP
West	NNP
German	DT
retailer	NN
ASKO	DT
Deutsche	DT
Kaufhaus	DT
AG	NNP
plans	NNS
to	DT
challenge	NN
the	DT
legality	DT
of	IN
a	DT
widely	RB
employed	VBN
anti-takeover	JJ
defense	NN
of	IN
companies	NNS
in	IN
the	DT
Netherlands	DT
.	.
	
The	NNP
eventual	DT
court	NN
decision	NN
could	MD
become	VBN
a	DT
landmark	DT
in	IN
Dutch	DT
corporate	JJ
law	NN
because	IN
the	DT
lawsuit	NN
ASKO	DT
plans	NNS
to	DT
file	NN
would	MD
be	DT
the	DT
first	JJ
to	DT
challenge	NN
the	DT
entire	JJ
principle	NN
and	CC
practice	NN
of	IN
companies	NNS
issuing	DT
voting	VBG
preferred	DT
shares	NNS
to	DT
management-controlled	DT
trusts	DT
to	DT
dilute	DT
voting	VBG
power	NN
of	IN
common	JJ
stockholders	DT
.	.
	
Up	DT
to	DT
now	RB
only	RB
specific	JJ
aspects	DT
of	IN
these	DT
defenses	DT
have	VBP
been	VBN
challenged	DT
,	,
though	RB
unsuccessfully	DT
,	,
ASKO	DT
's	VBZ
Dutch	DT
lawyers	NNS
noted	VBD
.	.
	
Should	MD
the	DT
courts	NNS
uphold	DT
the	DT
validity	DT
of	IN
this	DT
type	NN
of	IN
defense	NN
,	,
ASKO	DT
will	MD
then	RB
ask	DT
the	DT
court	NN
to	DT
overturn	DT
such	JJ
a	DT
vote-diluting	DT
maneuver	DT
recently	RB
deployed	DT
by	IN
Koninklijke	DT
Ahold	DT
NV	DT
.	.
	
ASKO	DT
says	VBZ
the	DT
Dutch-based	DT
international	JJ
food	NN
retailer	NN
had	VBN
n't	RB
reasonable	JJ
grounds	DT
to	DT
issue	NN
preferred	DT
stock	NN
to	DT
a	DT
friendly	JJ
trust	NN
and	CC
thus	DT
dilute	DT
the	DT
worth	JJ
and	CC
voting	VBG
power	NN
of	IN
ASKO	DT
and	CC
other	JJ
shareholders	NNS
.	.
	
Speaking	DT
through	IN
its	DT
Dutch	DT
lawyers	NNS
,	,
ASKO	DT
also	RB
disclosed	VBN
it	DT
holds	DT
a	DT
15	CD
%	%
stake	NN
in	IN
Ahold	DT
.	.
	
It	PRP
was	VBD
previously	RB
thought	VBN
ASKO	DT
held	VBN
a	DT
13.6	DT
%	%
stake	NN
that	WDT
was	VBD
accumulated	DT
since	IN
July	NNP
.	.
	
A	DT
spokesman	NN
for	IN
Ahold	DT
said	VBN
his	DT
company	NN
is	VBZ
confident	JJ
of	IN
its	DT
own	JJ
position	NN
and	CC
the	DT
propriety	DT
of	IN
the	DT
preferred-share	DT
issue	NN
.	.
	
He	DT
termed	VBN
ASKO	DT
's	VBZ
legal	JJ
actions	NNS
as	IN
``	``
unproductive	DT
''	''
to	DT
international	JJ
cooperation	NN
among	IN
European	NNP
retailers	NNS
.	.
	
Chase	DT
Manhattan	NNP
Bank	NNP
Chairman	NNP
Willard	DT
Butcher	DT
is	VBZ
a	DT
conservative	DT
banker	NN
and	CC
a	DT
loyal	DT
Republican	DT
,	,
but	CC
on	IN
Friday	NNP
morning	NN
he	DT
had	VBN
few	JJ
kind	NN
words	NNS
for	IN
President	NNP
Bush	NNP
's	VBZ
economic	JJ
policy-making	DT
.	.
	
``	``
There	DT
are	VBP
some	DT
very	RB
significant	JJ
issues	NNS
out	IN
there	RB
,	,
such	JJ
as	IN
the	DT
fiscal	JJ
deficit	NN
,	,
the	DT
trade	NN
deficit	NN
,	,
our	DT
relations	NNS
with	IN
Japan	NNP
,	,
that	WDT
have	VBP
to	DT
be	DT
the	DT
subject	NN
of	IN
major	JJ
initiatives	DT
,	,
''	''
he	DT
said	VBN
in	IN
an	DT
interview	NN
.	.
	
``	``
I	DT
'd	MD
like	JJ
to	DT
see	VBP
that	WDT
initiative	NN
,	,
and	CC
I	DT
have	VBP
n't	RB
.	.
	
There	DT
is	VBZ
n't	RB
a	DT
big	JJ
shot	NN
,	,
an	DT
agenda	NN
.	.
''	''
	
A	DT
few	JJ
hours	NNS
later	RB
,	,
the	DT
stock	NN
market	NN
dropped	VBN
190	CD
points	NNS
.	.
	
Politicians	DT
tried	VBN
to	DT
finger	NN
each	DT
other	JJ
for	IN
the	DT
blame	NN
,	,
although	IN
many	JJ
analysts	NNS
doubt	DT
that	WDT
Washington	NNP
was	VBD
singly	DT
responsible	JJ
for	IN
Wall	NNP
Street	NNP
's	VBZ
woes	DT
.	.
	
But	CC
Mr.	DT
Butcher	DT
's	VBZ
comments	DT
make	VBP
one	CD
thing	NN
clear	JJ
:	:
Some	DT
on	IN
Wall	NNP
Street	NNP
wonder	NN
if	IN
anyone	NN
is	VBZ
in	IN
charge	NN
of	IN
economic	JJ
policy	NN
.	.
	
Consider	DT
this	DT
:	:
	
--	--
By	IN
11:59	DT
p.m.	DT
tonight	DT
,	,
President	NNP
Bush	NNP
must	MD
order	NN
$	$
16	CD
billion	CD
of	IN
automatic	DT
,	,
across-the-board	DT
cuts	NNS
in	IN
government	NN
spending	NN
to	DT
comply	DT
with	IN
the	DT
Gramm-Rudman	DT
budget	NN
law	NN
.	.
	
The	NNP
cuts	NNS
are	VBP
necessary	JJ
because	IN
Congress	NNP
and	CC
the	DT
administration	NN
have	VBP
failed	VBN
to	DT
reach	VBP
agreement	NN
on	IN
a	DT
deficit-cutting	DT
bill	NN
.	.
	
``	``
We	DT
simply	RB
do	VBP
n't	RB
have	VBP
strong	JJ
leadership	NN
to	DT
try	DT
to	DT
reduce	DT
the	DT
deficit	NN
and	CC
make	VBP
tough	JJ
choices	DT
,	,
''	''
House	NNP
Budget	NNP
Committee	NNP
Chairman	NNP
Leon	DT
Panetta	DT
(	(
D.	DT
,	,
Calif	NNP
.	.
)	)
said	VBN
yesterday	NN
on	IN
NBC	NNP
News	NNP
's	VBZ
``	``
Meet	DT
the	DT
Press	DT
.	.
''	''
	
--	--
For	IN
the	DT
last	JJ
two	CD
weeks	NNS
,	,
the	DT
Bush	NNP
administration	NN
and	CC
the	DT
Federal	NNP
Reserve	NNP
have	VBP
been	VBN
engaged	DT
in	IN
a	DT
semi-public	DT
battle	NN
over	IN
international	JJ
economic	JJ
policy	NN
.	.
	
The	NNP
administration	NN
has	VBZ
been	VBN
trying	VBG
to	DT
push	NN
the	DT
dollar	NN
lower	JJR
;	;
the	DT
Fed	NNP
has	VBZ
been	VBN
resisting	DT
.	.
	
``	``
One	CD
of	IN
the	DT
things	NNS
that	WDT
continues	VBZ
to	DT
worry	DT
me	DT
is	VBZ
this	DT
monetary	DT
warfare	DT
between	IN
the	DT
Treasury	NNP
Department	NNP
and	CC
the	DT
Federal	NNP
Reserve	NNP
Board	NNP
,	,
''	''
said	VBN
Lawrence	DT
Kudlow	DT
,	,
a	DT
Bear	DT
,	,
Stearns	DT
&	&
Co.	DT
economist	NN
,	,
on	IN
ABC	NNP
's	VBZ
``	``
This	DT
Week	NNP
.	.
''	''
	
--	--
The	NNP
administration	NN
has	VBZ
sent	DT
out	IN
confusing	DT
signals	DT
about	IN
its	DT
response	NN
to	DT
a	DT
recent	JJ
spate	DT
of	IN
airline	NN
takeovers	NNS
.	.
	
Last	JJ
month	NN
,	,
Transportation	NNP
Secretary	NNP
Sam	NNP
Skinner	NNP
forced	VBD
Northwest	DT
Airlines	NNP
to	DT
reduce	DT
a	DT
stake	NN
held	VBN
by	IN
KLM	NNP
Royal	DT
Dutch	DT
Airlines	NNP
.	.
	
But	CC
he	DT
has	VBZ
since	IN
run	VBN
into	IN
opposition	NN
from	IN
the	DT
Treasury	NNP
and	CC
the	DT
White	NNP
House	NNP
over	IN
that	WDT
decision	NN
.	.
	
And	CC
he	DT
has	VBZ
kept	VBN
mum	DT
on	IN
how	DT
his	DT
decision	NN
might	MD
affect	DT
a	DT
bid	NN
for	IN
United	NNP
Airlines	NNP
,	,
which	DT
includes	VBZ
a	DT
big	JJ
stake	NN
by	IN
British	JJ
Airways	NNPS
PLC	NNP
.	.
	
Some	DT
analysts	NNS
say	VBP
uncertainty	NN
about	IN
Washington	NNP
's	VBZ
anti-takeover	JJ
policy	NN
was	VBD
one	CD
reason	NN
that	WDT
financing	NN
for	IN
the	DT
United	NNP
Airlines	NNP
takeover	NN
fell	VBD
through	IN
--	--
the	DT
event	NN
that	WDT
triggered	VBN
the	DT
market	NN
drop	NN
.	.
	
In	IN
many	JJ
ways	NNS
,	,
the	DT
backdrop	DT
to	DT
Friday	NNP
's	VBZ
stock	NN
decline	NN
is	VBZ
eerily	DT
similar	JJ
to	DT
that	WDT
of	IN
October	NNP
1987	CD
's	VBZ
508-point	DT
crash	NN
.	.
	
Then	RB
,	,
as	IN
now	RB
,	,
the	DT
budget	NN
debate	NN
was	VBD
behind	IN
schedule	DT
and	CC
automatic	DT
spending	NN
cuts	NNS
were	VBD
within	IN
days	NNS
of	IN
taking	VBG
hold	VBP
.	.
	
The	NNP
Treasury	NNP
was	VBD
locked	DT
in	IN
a	DT
battle	NN
over	IN
international	JJ
economic	JJ
policy	NN
,	,
although	IN
at	IN
that	WDT
time	NN
it	DT
was	VBD
with	IN
West	NNP
German	DT
officials	NNS
rather	RB
than	IN
the	DT
Federal	NNP
Reserve	NNP
.	.
	
And	CC
concern	NN
about	IN
official	NN
actions	NNS
aimed	VBN
at	IN
takeovers	NNS
--	--
then	RB
by	IN
the	DT
tax-writing	DT
House	NNP
Ways	DT
and	CC
Means	DT
Committee	NNP
rather	RB
than	IN
the	DT
Transportation	NNP
Department	NNP
--	--
were	VBD
making	VBG
markets	NNS
nervous	JJ
.	.
	
The	NNP
1987	CD
crash	NN
brought	VBN
the	DT
Reagan	NNP
administration	NN
and	CC
Democratic	NNP
lawmakers	NNS
to	DT
the	DT
table	DT
for	IN
the	DT
first	JJ
budget	NN
summit	DT
,	,
resulting	VBG
in	IN
a	DT
two-year	DT
plan	NN
to	DT
reduce	DT
the	DT
deficit	NN
by	IN
more	RBR
than	IN
$	$
76	CD
billion	CD
--	--
even	RB
though	RB
the	DT
deficit	NN
actually	RB
rose	VBD
by	IN
nearly	RB
$	$
12	CD
billion	CD
during	IN
that	WDT
period	NN
.	.
	
But	CC
,	,
barring	DT
further	JJ
drops	NNS
in	IN
the	DT
market	NN
this	DT
week	NN
,	,
a	DT
similar	JJ
outcome	DT
does	VBZ
n't	RB
seem	VBP
likely	JJ
this	DT
year	NN
.	.
	
Lawmakers	DT
and	CC
administration	NN
officials	NNS
agree	DT
that	WDT
Friday	NNP
's	VBZ
drop	NN
,	,
by	IN
itself	DT
,	,
is	VBZ
n't	RB
enough	JJ
to	DT
force	NN
both	DT
sides	NNS
back	VB
to	DT
the	DT
table	DT
to	DT
try	DT
to	DT
reach	VBP
a	DT
deficit-reduction	DT
agreement	NN
that	WDT
would	MD
be	DT
more	RBR
serious	JJ
and	CC
more	RBR
far-reaching	DT
than	IN
last	JJ
spring	NN
's	VBZ
gimmick-ridden	DT
plan	NN
,	,
which	DT
still	RB
is	VBZ
n't	RB
fully	RB
implemented	VBN
.	.
	
One	CD
of	IN
the	DT
biggest	JJS
reasons	NNS
that	WDT
new	JJ
talks	NNS
are	VBP
n't	RB
likely	JJ
to	DT
come	VBN
about	IN
is	VBZ
that	WDT
,	,
as	IN
everyone	NN
learned	DT
in	IN
1987	CD
,	,
the	DT
economy	NN
and	CC
the	DT
market	NN
can	MD
survive	DT
a	DT
one-day	JJ
508-point	DT
tumble	DT
.	.
	
``	``
Everybody	DT
thought	VBN
we	DT
were	VBD
looking	VBG
at	IN
a	DT
repetition	DT
of	IN
1929	CD
,	,
that	WDT
we	DT
were	VBD
looking	VBG
at	IN
a	DT
recession	NN
,	,
''	''
Rep.	DT
Panetta	DT
said	VBN
yesterday	NN
in	IN
an	DT
interview	NN
.	.
	
``	``
That	IN
did	VBD
not	RB
happen	DT
.	.
	
They	DT
learned	DT
they	DT
could	MD
survive	DT
it	DT
without	IN
much	JJ
problem	NN
.	.
''	''
	
But	CC
administration	NN
officials	NNS
privately	RB
agree	DT
with	IN
Mr.	DT
Panetta	DT
,	,
who	WP
said	VBN
a	DT
precipitous	JJ
drop	NN
this	DT
week	NN
``	``
is	VBZ
going	VBG
to	DT
force	NN
the	DT
president	NN
and	CC
Congress	NNP
to	DT
take	VBP
a	DT
much	JJ
harder	RBR
look	VBP
at	IN
fiscal	JJ
policy	NN
.	.
''	''
	
In	IN
that	WDT
case	NN
,	,
there	RB
will	MD
be	DT
plenty	RB
of	IN
blame	NN
to	DT
go	VBP
around	IN
.	.
	
``	``
There	DT
is	VBZ
an	DT
underlying	VBG
concern	NN
on	IN
the	DT
part	NN
of	IN
the	DT
American	JJ
people	NNS
--	--
and	CC
there	RB
should	MD
be	DT
-	-
that	WDT
the	DT
administration	NN
has	VBZ
not	RB
gone	VBN
far	JJ
enough	JJ
in	IN
cutting	DT
this	DT
deficit	NN
and	CC
that	WDT
Congress	NNP
has	VBZ
been	VBN
unwilling	DT
to	DT
cut	NN
what	WP
the	DT
administration	NN
asked	VBN
us	DT
to	DT
cut	NN
,	,
''	''
said	VBN
Senate	NNP
Finance	NNP
Committee	NNP
Chairman	NNP
Lloyd	NNP
Bentsen	DT
(	(
D.	DT
,	,
Texas	NNP
)	)
.	.
	
Nevertheless	RB
,	,
it	DT
clearly	RB
will	MD
take	VBP
more	RBR
than	IN
Friday	NNP
's	VBZ
190-point	JJ
decline	NN
to	DT
overcome	DT
the	DT
bitter	JJ
feelings	DT
that	WDT
have	VBP
developed	VBN
between	IN
lawmakers	NNS
and	CC
White	NNP
House	NNP
Budget	NNP
Director	NNP
Richard	NNP
Darman	NNP
over	IN
the	DT
capital-gains	JJ
fight	NN
.	.
	
Hill	NNP
Democrats	NNPS
are	VBP
particularly	RB
angry	JJ
over	IN
Mr.	DT
Bush	NNP
's	VBZ
claim	NN
that	WDT
the	DT
capital-gains	JJ
cut	NN
was	VBD
part	NN
of	IN
April	NNP
's	VBZ
budget	NN
accord	NN
and	CC
his	DT
insistence	DT
on	IN
combining	DT
it	DT
with	IN
the	DT
deficit-reduction	DT
legislation	NN
.	.
	
``	``
There	DT
is	VBZ
no	RB
prospect	DT
of	IN
any	DT
so-called	JJ
grand	JJ
compromise	NN
or	CC
deal	NN
next	JJ
year	NN
because	IN
the	DT
administration	NN
simply	RB
did	VBD
n't	RB
live	DT
up	IN
to	DT
this	DT
year	NN
's	VBZ
deal	NN
,	,
''	''
Senate	NNP
Majority	DT
Leader	DT
George	NNP
Mitchell	DT
(	(
D.	DT
,	,
Maine	DT
)	)
said	VBN
yesterday	NN
on	IN
CBS	NNP
News	NNP
's	VBZ
``	``
Face	DT
the	DT
Nation	DT
.	.
''	''
	
During	IN
last	JJ
week	NN
's	VBZ
maneuverings	DT
on	IN
the	DT
deficit-cutting	DT
bill	NN
and	CC
the	DT
capital-gains	JJ
issue	NN
,	,
there	RB
were	VBD
signs	NNS
that	WDT
Senate	NNP
Republicans	DT
and	CC
the	DT
administration	NN
were	VBD
at	IN
odds	DT
.	.
	
At	IN
the	DT
very	RB
moment	NN
that	WDT
Senate	NNP
Republicans	DT
were	VBD
negotiating	DT
a	DT
deal	NN
to	DT
exclude	DT
capital	NN
gains	NNS
from	IN
the	DT
deficit-reduction	DT
legislation	NN
,	,
White	NNP
House	NNP
spokesman	NN
Marlin	DT
Fitzwater	DT
told	VBN
reporters	NNS
that	WDT
it	DT
was	VBD
the	DT
president	NN
's	VBZ
policy	NN
to	DT
include	VBP
it	DT
.	.
	
When	DT
an	DT
agreement	NN
was	VBD
reached	VBN
to	DT
strip	DT
capital	NN
gains	NNS
from	IN
the	DT
legislation	NN
,	,
Oregon	DT
Sen.	DT
Bob	DT
Packwood	DT
,	,
the	DT
ranking	DT
GOP	NNP
member	NN
of	IN
the	DT
tax-writing	DT
Senate	NNP
Finance	NNP
Committee	NNP
,	,
hailed	DT
it	DT
.	.
	
Asked	DT
if	IN
the	DT
administration	NN
agreed	VBN
,	,
he	DT
curtly	DT
replied	VBD
:	:
``	``
The	NNP
adminstration	DT
will	MD
have	VBP
to	DT
speak	DT
for	IN
itself	DT
.	.
''	''
	
Friday	NNP
's	VBZ
market	NN
tumble	DT
could	MD
spur	DT
action	NN
on	IN
reconciling	DT
the	DT
House	NNP
and	CC
Senate	NNP
versions	DT
of	IN
the	DT
deficit-reduction	DT
measure	NN
,	,
a	DT
process	NN
that	WDT
is	VBZ
n't	RB
expected	VBN
to	DT
begin	VBP
until	IN
tomorrow	NN
at	IN
the	DT
soonest	DT
.	.
	
Senate	NNP
Republicans	DT
expressed	VBD
the	DT
hope	VB
that	WDT
the	DT
House	NNP
would	MD
follow	DT
the	DT
lead	NN
of	IN
the	DT
Senate	NNP
,	,
which	DT
on	IN
Friday	NNP
agreed	VBN
to	DT
drop	NN
a	DT
variety	NN
of	IN
spending	NN
measures	NNS
and	CC
tax	NN
breaks	DT
that	WDT
would	MD
have	VBP
increased	VBN
the	DT
fiscal	JJ
1990	CD
deficit	NN
.	.
	
``	``
The	NNP
market	NN
needs	VBZ
a	DT
strong	JJ
signal	VBP
that	WDT
we	DT
're	VBP
serious	JJ
about	IN
deficit	NN
reduction	NN
,	,
and	CC
the	DT
best	JJS
way	NN
to	DT
do	VBP
that	WDT
is	VBZ
for	IN
the	DT
House	NNP
of	IN
Representatives	DT
to	DT
strip	DT
their	DT
bill	NN
''	''
of	IN
similar	JJ
provisions	NNS
,	,
Sen.	DT
Warren	DT
Rudman	DT
(	(
R.	DT
,	,
N.H	DT
.	.
)	)
.	.
said	VBD
yesterday	NN
.	.
	
The	NNP
White	NNP
House	NNP
Office	NN
of	IN
Management	DT
and	CC
Budget	NNP
,	,
whose	DT
calculations	NNS
determine	DT
whether	IN
the	DT
Gramm-Rudman	DT
targets	NNS
are	VBP
met	VBN
,	,
estimated	VBN
that	WDT
the	DT
House-passed	DT
deficit-reduction	DT
measure	NN
would	MD
cut	NN
the	DT
fiscal	JJ
1990	CD
shortfall	DT
by	IN
$	$
6.2	DT
billion	CD
,	,
almost	RB
half	DT
of	IN
the	DT
Congressional	JJ
Budget	NNP
Office	NN
's	VBZ
estimate	NN
of	IN
$	$
11.0	DT
billion	CD
.	.
	
Rep.	DT
Panetta	DT
said	VBN
that	WDT
OMB	DT
's	VBZ
figure	NN
would	MD
still	RB
be	DT
enough	JJ
to	DT
avoid	DT
permanent	JJ
across-the-board	DT
cuts	NNS
,	,
but	CC
added	VBN
:	:
``	``
We	DT
're	VBP
getting	VBG
very	RB
close	NN
to	DT
the	DT
margins	NNS
here	RB
.	.
''	''
	
No	DT
one	CD
in	IN
Washington	NNP
was	VBD
willing	JJ
to	DT
take	VBP
the	DT
blame	NN
for	IN
provoking	DT
Friday	NNP
's	VBZ
drop	NN
in	IN
the	DT
stock	NN
market	NN
.	.
	
But	CC
some	DT
players	NNS
were	VBD
quick	DT
to	DT
seize	DT
the	DT
moment	NN
.	.
	
Before	IN
the	DT
sun	NN
had	VBN
set	VBN
on	IN
Friday	NNP
,	,
Richard	NNP
Rahn	DT
,	,
the	DT
supply-side	DT
chief	NN
economist	NN
of	IN
the	DT
U.S.	DT
Chamber	DT
of	IN
Commerce	NNP
,	,
issued	VBN
a	DT
statement	NN
attributing	DT
the	DT
drop	NN
in	IN
stock	NN
prices	NNS
to	DT
the	DT
Senate	NNP
decision	NN
to	DT
postpone	DT
action	NN
on	IN
capital	NN
gains	NNS
.	.
	
``	``
Investors	NNS
,	,
who	WP
had	VBN
been	VBN
holding	VBG
assets	NNS
in	IN
anticipation	NN
of	IN
a	DT
more	RBR
favorable	DT
time	NN
to	DT
sell	NN
,	,
were	VBD
spooked	VBN
,	,
''	''
he	DT
said	VBN
.	.
	
``	``
There	DT
have	VBP
been	VBN
many	JJ
preposterous	DT
reasons	NNS
advanced	DT
to	DT
support	NN
a	DT
capital-gains	JJ
tax	NN
cut	NN
,	,
''	''
Sen.	DT
Mitchell	DT
said	VBN
during	IN
his	DT
television	NN
appearance	NN
,	,
``	``
but	CC
I	DT
suggest	VBP
that	WDT
is	VBZ
perhaps	RB
more	RBR
than	IN
any	DT
of	IN
the	DT
others	NNS
.	.
	
The	NNP
following	VBG
U.S.	DT
Treasury	NNP
,	,
corporate	JJ
and	CC
municipal	DT
offerings	DT
are	VBP
tentatively	DT
scheduled	VBN
for	IN
sale	NN
this	DT
week	NN
,	,
according	VBG
to	DT
Dow	NNP
Jones	NNP
Capital	NNP
Markets	NNPS
Report	NNP
:	:
	
$	$
15.2	DT
billion	CD
of	IN
three-month	JJ
and	CC
six-month	DT
bills	NNS
.	.
	
Two-year	DT
notes	NNS
,	,
refinancing	DT
about	IN
$	$
9.6	DT
billion	CD
in	IN
maturing	DT
debt	NN
.	.
	
$	$
9.75	DT
billion	CD
of	IN
52-week	DT
bills	NNS
.	.
	
Connecticut	DT
Light	NNP
&	&
Power	DT
Co.	DT
--	--
	
Three	NNP
million	CD
shares	NNS
of	IN
$	$
25	CD
preferred	DT
,	,
via	DT
competitive	JJ
bidding	NN
.	.
	
B&H	DT
Crude	DT
Carriers	DT
Ltd.	DT
--	--
	
Four	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
Salomon	DT
Brothers	DT
Inc	NNP
.	.
	
Baldwin	DT
Technology	DT
Co.	DT
--	--
	
2.6	DT
million	CD
Class	DT
A	DT
shares	NNS
,	,
via	DT
Smith	NNP
Barney	NNP
Harris	NNP
Upham	NNP
&	&
Co	NNP
.	.
	
Blockbuster	DT
Entertainment	NNP
Corp.	DT
--	--
	
$	$
250	CD
million	CD
(	(
face	NN
amount	NN
)	)
Liquid	DT
Yield	DT
Option	DT
Notes	DT
,	,
via	DT
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
.	.
	
Chase	DT
Manhattan	NNP
Corp.	DT
--	--
	
14	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
Goldman	NNP
,	,
Sachs	NNP
&	&
Co	NNP
.	.
	
Comcast	DT
Corp.	DT
--	--
	
$	$
150	CD
million	CD
convertible	DT
debentures	DT
,	,
via	DT
Merrill	NNP
Lynch	NNP
.	.
	
CSS	DT
Industries	NNPS
--	--
	
1.3	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
Merrill	NNP
Lynch	NNP
.	.
	
Eastern	NNP
Utilities	NNPS
Associates	NNPS
--	--
	
1.5	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
PaineWebber	DT
Inc	NNP
.	.
	
Employee	DT
Benefit	DT
Plans	DT
Inc.	DT
--	--
	
Two	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
Dean	NNP
Witter	NNP
Capital	NNP
Markets	NNPS
.	.
	
Exabyte	DT
Corp.	DT
--	--
	
2,850,000	DT
common	JJ
shares	NNS
,	,
via	DT
Goldman	NNP
Sachs	NNP
.	.
	
Knowledgeware	DT
Inc.	DT
--	--
	
2.4	CD
million	CD
common	JJ
shares	NNS
,	,
via	DT
Montgomery	NNP
Securities	NNPS
.	.
	
Oregon	DT
--	--
	
$	$
100	CD
million	CD
of	IN
general	NN
obligation	NN
veterans	DT
'	'
tax	NN
notes	NNS
,	,
Series	DT
1989	CD
,	,
via	DT
competitive	JJ
bid	NN
.	.
	
Washington	NNP
,	,
D.C.	DT
--	--
	
$	$
200	CD
million	CD
of	IN
1990	CD
general	NN
obligation	NN
tax	NN
revenue	NN
notes	NNS
(	(
Series	DT
1990A	DT
)	)
,	,
via	DT
competitive	JJ
bid	NN
.	.
	
Virginia	DT
Public	NNP
School	NNP
Authority	NNP
--	--
	
$	$
55,730,000	DT
of	IN
school	NN
financing	NN
bonds	NNS
,	,
1989	CD
Series	DT
B	DT
(	(
1987	CD
resolution	DT
)	)
,	,
via	DT
competitive	JJ
bid	NN
.	.
	
Austin	DT
,	,
Texas	NNP
--	--
	
$	$
68,230,000	DT
of	IN
various	JJ
bonds	NNS
,	,
including	VBG
$	$
32	CD
million	CD
hotel	NN
occupancy	DT
tax	NN
revenue	NN
bonds	NNS
,	,
Series	DT
1989A	DT
,	,
and	CC
$	$
36.23	DT
million	CD
convention	NN
center	NN
revenue	NN
bonds	NNS
,	,
Series	DT
1989B	DT
,	,
via	DT
a	DT
Morgan	DT
Stanley	NNP
&	&
Co.	DT
group	NN
.	.
	
California	NNP
Health	DT
Facilities	DT
Financing	DT
Authority	NNP
--	--
	
$	$
144.5	DT
million	CD
of	IN
Kaiser	DT
Permanente	DT
revenue	NN
bonds	NNS
,	,
via	DT
a	DT
PaineWebber	DT
group	NN
.	.
	
Connecticut	DT
--	--
	
$	$
100	CD
million	CD
of	IN
general	NN
obligation	NN
capital	NN
appreciation	DT
bonds	NNS
,	,
College	DT
Savings	NNP
Plan	DT
,	,
1989	CD
Series	DT
B	DT
,	,
via	DT
a	DT
Prudential-Bache	DT
Capital	NNP
Funding	DT
group	NN
.	.
	
Pennsylvania	DT
Higher	DT
Education	DT
Facilities	DT
Authority	NNP
--	--
	
$	$
117	DT
million	CD
of	IN
revenue	NN
bonds	NNS
for	IN
Hahnemann	DT
University	NNP
,	,
Series	DT
1989	CD
,	,
via	DT
a	DT
Merrill	NNP
Lynch	NNP
group	NN
.	.
	
Tennessee	NNP
Valley	NNP
Authority	NNP
--	--
	
Three	NNP
billion	CD
of	IN
power	NN
bonds	NNS
,	,
via	DT
First	NNP
Boston	NNP
Corp	NNP
.	.
	
University	NNP
of	IN
Medicine	DT
And	CC
Dentistry	DT
of	IN
New	NNP
Jersey	DT
--	--
	
$	$
55	DT
million	CD
of	IN
Series	DT
C	DT
bonds	NNS
,	,
via	DT
a	DT
Prudential-Bache	DT
group	NN
.	.
	
West	NNP
Virginia	DT
Parkways	DT
,	,
Economic	DT
Development	DT
And	CC
Tourism	DT
Authority	NNP
--	--
	
$	$
143	DT
million	CD
of	IN
parkway	DT
revenue	NN
bonds	NNS
,	,
Series	DT
1989	CD
,	,
via	DT
a	DT
PaineWebber	DT
group	NN
.	.
	
San	NNP
Antonio	NNP
,	,
Texas	NNP
--	--
	
$	$
640	DT
million	CD
of	IN
gas	NN
and	CC
electric	DT
revenue	NN
refunding	DT
bonds	NNS
,	,
via	DT
a	DT
First	NNP
Boston	NNP
group	NN
.	.
	
South	NNP
Dakota	DT
Health	DT
&	&
Education	DT
Facility	DT
Authority	NNP
--	--
	
$	$
51.1	DT
million	CD
of	IN
Rapid	DT
City	NNP
Regional	DT
Hospital	DT
bonds	NNS
,	,
via	DT
a	DT
Dougherty	DT
,	,
Dawkins	DT
,	,
Strand	DT
&	&
Yost	DT
Inc.	DT
group	NN
.	.
	
Small	JJ
investors	NNS
matched	DT
their	DT
big	JJ
institutional	DT
brethren	DT
in	IN
anxiety	NN
over	IN
the	DT
weekend	NN
,	,
but	CC
most	RBS
seemed	VBD
to	DT
be	DT
taking	VBG
a	DT
philosophical	DT
approach	DT
and	CC
said	VBN
they	DT
were	VBD
resigned	VBD
to	DT
riding	DT
out	IN
the	DT
latest	JJS
storm	DT
in	IN
the	DT
stock	NN
market	NN
.	.
	
``	``
I	DT
'm	VBP
not	RB
losing	VBG
faith	DT
in	IN
the	DT
market	NN
,	,
''	''
said	VBN
Boston	NNP
lawyer	NN
Christopher	NNP
Sullivan	NNP
as	IN
he	DT
watched	VBD
the	DT
market	NN
plunge	NN
on	IN
a	DT
big	JJ
screen	DT
in	IN
front	NN
of	IN
a	DT
brokerage	NN
firm	NN
.	.
	
But	CC
he	DT
's	VBZ
not	RB
so	IN
sure	JJ
about	IN
everyone	NN
else	RB
.	.
	
``	``
I	DT
think	VBP
on	IN
Monday	NNP
the	DT
small	JJ
(	(
investors	NNS
)	)
are	VBP
going	VBG
to	DT
panic	NN
and	CC
sell	NN
,	,
''	''
predicted	DT
Mr.	DT
Sullivan	NNP
,	,
whose	DT
investments	NNS
include	VBP
AMR	NNP
Corp.	DT
's	PRP
American	JJ
Airlines	NNP
unit	NN
and	CC
several	JJ
mutual	JJ
funds	NNS
.	.
	
``	``
And	CC
I	DT
think	VBP
institutions	NNS
are	VBP
going	VBG
to	DT
come	VBN
in	IN
and	CC
buy	DT
...	...
	
I	DT
'm	VBP
going	VBG
to	DT
hold	VBP
on	IN
.	.
	
If	IN
I	DT
sell	NN
now	RB
,	,
I	DT
'll	MD
take	VBP
a	DT
big	JJ
loss	NN
.	.
''	''
	
Some	DT
evinced	DT
an	DT
optimism	DT
that	WDT
had	VBN
been	VBN
rewarded	DT
when	DT
they	DT
did	VBD
n't	RB
flee	DT
the	DT
market	NN
in	IN
1987	CD
.	.
	
``	``
Oh	DT
,	,
I	DT
bet	NN
it	DT
'll	MD
be	DT
up	IN
50	CD
points	NNS
on	IN
Monday	NNP
,	,
''	''
said	VBN
Lucy	DT
Crump	DT
,	,
a	DT
78-year-old	DT
retired	VBD
housewife	DT
in	IN
Lexington	NNP
,	,
Ky	DT
.	.
	
Mrs.	DT
Crump	DT
said	VBN
her	DT
Ashwood	DT
Investment	NNP
Club	DT
's	VBZ
portfolio	NN
lost	VBN
about	IN
one-third	DT
of	IN
its	DT
value	NN
following	VBG
the	DT
Black	NNP
Monday	NNP
crash	NN
,	,
``	``
but	CC
no	RB
one	CD
got	VBN
discouraged	VBN
,	,
and	CC
we	DT
gained	VBN
that	WDT
back	VB
--	--
and	CC
more	RBR
.	.
''	''
	
At	IN
the	DT
annual	JJ
congress	DT
of	IN
the	DT
National	NNP
Association	NNP
of	IN
Investors	NNS
Corp.	DT
at	IN
the	DT
Hyatt	DT
Regency	DT
hotel	NN
in	IN
Minneapolis	DT
,	,
the	DT
scene	NN
was	VBD
calm	DT
.	.
	
Some	DT
500	CD
investors	NNS
representing	VBG
investor	NN
clubs	NNS
from	IN
around	IN
the	DT
U.S.	DT
were	VBD
attending	DT
when	DT
the	DT
market	NN
started	VBN
to	DT
slide	NN
Friday	NNP
.	.
	
But	CC
Robert	NNP
Showalter	DT
,	,
an	DT
official	NN
of	IN
the	DT
association	NN
,	,
said	VBN
no	RB
special	JJ
bulletins	DT
or	CC
emergency	NN
meetings	DT
of	IN
the	DT
investors	NNS
'	'
clubs	NNS
are	VBP
planned	VBN
.	.
	
In	IN
fact	NN
,	,
some	DT
of	IN
the	DT
association	NN
's	VBZ
members	NNS
--	--
long-term	JJ
,	,
buy-and-hold	DT
investors	NNS
--	--
welcomed	DT
the	DT
drop	NN
in	IN
prices	NNS
.	.
	
``	``
We	DT
hope	VB
to	DT
take	VBP
advantage	NN
of	IN
it	DT
,	,
''	''
said	VBN
John	NNP
Snyder	NNP
,	,
a	DT
member	NN
of	IN
a	DT
Los	NNP
Angeles	NNP
investors	NNS
'	'
club	NN
.	.
	
He	DT
has	VBZ
four	CD
stocks	NNS
in	IN
mind	NN
to	DT
buy	DT
if	IN
the	DT
prices	NNS
drop	NN
to	DT
the	DT
level	NN
he	DT
wants	VBZ
.	.
	
Not	RB
everyone	NN
is	VBZ
reacting	VBG
so	IN
calmly	DT
,	,
however	RB
,	,
and	CC
many	JJ
wonder	NN
about	IN
the	DT
long-term	JJ
implications	NNS
of	IN
what	WP
is	VBZ
widely	RB
viewed	VBN
as	IN
the	DT
cause	NN
of	IN
Friday	NNP
's	VBZ
slide	NN
,	,
reluctance	NN
by	IN
banks	NNS
to	DT
provide	VBP
financing	NN
for	IN
a	DT
buy-out	NN
of	IN
UAL	NNP
Corp.	DT
,	,
parent	NN
of	IN
United	NNP
Airlines	NNP
.	.
	
Marc	DT
Perkins	DT
,	,
a	DT
Tampa	NNP
,	,
Fla.	DT
,	,
investment	NN
banker	NN
,	,
said	VBN
the	DT
market	NN
drop	NN
is	VBZ
one	CD
of	IN
``	``
a	DT
tremendous	DT
number	NN
of	IN
signs	NNS
that	WDT
the	DT
leveraged	JJ
take-out	DT
era	NN
is	VBZ
ending	VBG
.	.
	
There	DT
's	VBZ
no	RB
question	NN
that	WDT
there	RB
's	VBZ
a	DT
general	NN
distaste	DT
for	IN
leverage	DT
among	IN
lenders	NNS
.	.
	
''	''
Mr.	DT
Perkins	DT
believes	VBZ
,	,
however	RB
,	,
that	WDT
the	DT
market	NN
could	MD
be	DT
stabilized	DT
if	IN
California	NNP
investor	NN
Marvin	DT
Davis	DT
steps	NNS
back	VB
in	IN
to	DT
the	DT
United	NNP
bidding	NN
with	IN
an	DT
offer	NN
of	IN
$	$
275	DT
a	DT
share	NN
.	.
	
Sara	DT
Albert	DT
,	,
a	DT
34-year-old	DT
Dallas	NNP
law	NN
student	NN
,	,
says	VBZ
she	DT
's	VBZ
generally	RB
skittish	JJ
about	IN
the	DT
stock	NN
market	NN
and	CC
the	DT
takeover	NN
activity	NN
that	WDT
seems	VBZ
to	DT
fuel	DT
it	DT
.	.
	
``	``
I	DT
have	VBP
this	DT
feeling	VBG
that	WDT
it	DT
's	VBZ
built	VBN
on	IN
sand	DT
,	,
''	''
she	DT
says	VBZ
,	,
that	WDT
the	DT
market	NN
rises	DT
``	``
but	CC
there	RB
's	VBZ
no	RB
foundation	NN
to	DT
it	DT
.	.
''	''
	
She	DT
and	CC
her	DT
husband	DT
pulled	VBN
most	RBS
of	IN
their	DT
investments	NNS
out	IN
of	IN
the	DT
market	NN
after	IN
the	DT
1987	CD
crash	NN
,	,
although	IN
she	DT
still	RB
owns	VBZ
some	DT
Texaco	DT
stock	NN
.	.
	
Partly	DT
because	IN
of	IN
concern	NN
about	IN
the	DT
economy	NN
and	CC
partly	RB
because	IN
she	DT
recently	RB
quit	VBP
her	DT
job	NN
as	IN
a	DT
legal	JJ
assistant	DT
to	DT
go	VBP
to	DT
school	NN
,	,
``	``
I	DT
think	VBP
at	IN
this	DT
point	NN
we	DT
want	VBP
to	DT
be	DT
a	DT
lot	NN
more	RBR
liquid	JJ
.	.
''	''
	
Others	DT
wonder	NN
how	DT
many	JJ
more	RBR
of	IN
these	DT
shocks	DT
the	DT
small	JJ
investor	NN
can	MD
stand	DT
.	.
	
``	``
We	DT
all	RB
assumed	DT
October	NNP
'87	DT
was	VBD
a	DT
one-time	JJ
shot	NN
,	,
''	''
said	VBN
San	NNP
Francisco	NNP
attorney	NN
David	NNP
Greenberg	DT
.	.
	
``	``
We	DT
told	VBN
the	DT
little	JJ
guy	DT
it	DT
could	MD
only	RB
happen	DT
once	RB
in	IN
a	DT
lifetime	DT
,	,
come	VBN
on	IN
back	VB
.	.
	
Now	RB
it	DT
's	VBZ
happening	VBG
again	RB
.	.
''	''
	
Mr.	DT
Greenberg	DT
got	VBN
out	IN
just	RB
before	IN
the	DT
1987	CD
crash	NN
and	CC
,	,
to	DT
his	DT
regret	DT
,	,
never	RB
went	VBD
back	VB
even	RB
as	IN
the	DT
market	NN
soared	VBN
.	.
	
This	DT
time	NN
he	DT
's	VBZ
ready	JJ
to	DT
buy	DT
in	IN
``	``
when	DT
the	DT
panic	NN
wears	VBZ
off	IN
.	.
''	''
	
Still	RB
,	,
he	DT
adds	VBZ
:	:
``	``
We	DT
ca	MD
n't	RB
have	VBP
this	DT
kind	NN
of	IN
thing	NN
happen	DT
very	RB
often	RB
.	.
	
When	DT
the	DT
little	JJ
guy	DT
gets	VBZ
frightened	DT
,	,
the	DT
big	JJ
guys	DT
hurt	VBN
badly	RB
.	.
	
Merrill	NNP
Lynch	NNP
ca	MD
n't	RB
survive	DT
without	IN
the	DT
little	JJ
guy	DT
.	.
''	''
	
Small	JJ
investors	NNS
have	VBP
tiptoed	DT
back	VB
into	IN
the	DT
market	NN
following	VBG
Black	NNP
Monday	NNP
,	,
but	CC
mostly	RB
through	IN
mutual	JJ
funds	NNS
.	.
	
Discount	DT
brokerage	NN
customers	NNS
``	``
have	VBP
been	VBN
in	IN
the	DT
market	NN
somewhat	RB
but	CC
not	RB
whole	JJ
hog	DT
like	JJ
they	DT
were	VBD
two	CD
years	NNS
ago	IN
,	,
''	''
says	VBZ
Leslie	DT
Quick	DT
Jr.	DT
,	,
chairman	NN
of	IN
the	DT
Quick	DT
&	&
Reilly	DT
discount	DT
brokerage	NN
firm	NN
.	.
	
Hugo	DT
Quackenbush	DT
,	,
senior	JJ
vice	NN
president	NN
at	IN
Charles	NNP
Scwhab	DT
Corp.	DT
,	,
says	VBZ
Schwab	DT
customers	NNS
``	``
have	VBP
been	VBN
neutral	DT
to	DT
cautious	DT
recently	RB
about	IN
stocks	NNS
.	.
''	''
	
Individual	DT
investors	NNS
are	VBP
still	RB
angry	JJ
about	IN
program	NN
trading	NN
,	,
Mr.	DT
Quackenbush	DT
says	VBZ
.	.
	
Avner	DT
Arbel	DT
,	,
a	DT
Cornell	DT
University	NNP
finance	NN
professor	NN
,	,
says	VBZ
government	NN
regulators	NNS
will	MD
have	VBP
to	DT
more	RBR
closely	RB
control	NN
program	NN
trading	NN
to	DT
``	``
win	DT
back	VB
the	DT
confidence	NN
of	IN
the	DT
small	JJ
investor	NN
.	.
''	''
	
But	CC
it	DT
's	VBZ
not	RB
only	RB
the	DT
stock	NN
market	NN
that	WDT
has	VBZ
some	DT
small	JJ
investors	NNS
worried	VBN
.	.
	
Alan	NNP
Helfman	DT
,	,
general	NN
sales	NNS
manager	NN
of	IN
a	DT
Chrysler	NNP
dealership	DT
in	IN
Houston	NNP
,	,
said	VBN
he	DT
and	CC
his	DT
mother	NN
have	VBP
some	DT
joint	JJ
stock	NN
investments	NNS
,	,
but	CC
the	DT
overall	JJ
economy	NN
is	VBZ
his	DT
chief	NN
worry	DT
.	.
	
``	``
These	DT
high	JJ
rollers	DT
took	VBD
a	DT
big	JJ
bath	DT
today	NN
,	,
''	''
he	DT
said	VBN
in	IN
his	DT
showroom	DT
,	,
which	DT
is	VBZ
within	IN
a	DT
few	JJ
miles	DT
of	IN
the	DT
multi-million	DT
dollar	NN
homes	NNS
of	IN
some	DT
of	IN
Houston	NNP
's	VBZ
richest	DT
citizens	NNS
.	.
	
``	``
And	CC
I	DT
can	MD
tell	DT
you	DT
that	WDT
a	DT
high	JJ
roller	DT
is	VBZ
n't	RB
going	VBG
to	DT
come	VBN
in	IN
tomorrow	NN
and	CC
buy	DT
a	DT
Chrysler	NNP
TC	DT
by	IN
Maserati	DT
.	.
''	''
	
And	CC
,	,
finally	RB
,	,
there	RB
were	VBD
the	DT
gloaters	DT
.	.
	
``	``
I	DT
got	VBN
out	IN
in	IN
1987	CD
.	.
	
Everything	DT
,	,
''	''
said	VBN
Pascal	DT
Antori	DT
,	,
an	DT
Akron	DT
,	,
Ohio	NNP
,	,
plumbing	DT
contractor	DT
who	WP
was	VBD
visiting	DT
Chicago	NNP
and	CC
stopped	VBN
by	IN
Fidelity	NNP
Investments	NNPS
'	'
LaSalle	DT
Street	NNP
office	NN
.	.
	
``	``
I	DT
just	RB
stopped	VBN
by	IN
to	DT
see	VBP
how	DT
much	JJ
I	DT
would	MD
have	VBP
lost	VBN
.	.
''	''
	
Would	MD
Mr.	DT
Antori	DT
ever	RB
get	VBP
back	VB
in	IN
?	?
	
``	``
Are	VBP
you	DT
kidding	DT
!	!
	
When	DT
it	DT
comes	VBZ
to	DT
money	NN
:	:
Once	RB
bitten	DT
,	,
2,000	DT
times	NNS
shy	DT
.	.
	
The	NNP
crowded	DT
field	NN
for	IN
notebook-sized	DT
computers	NNS
is	VBZ
about	IN
to	DT
become	VBN
a	DT
lot	NN
more	RBR
crowded	DT
.	.
	
Compaq	DT
Computer	NNP
Corp.	DT
's	PRP
long-awaited	JJ
entry	DT
today	NN
into	IN
the	DT
notebook	DT
field	NN
is	VBZ
expected	VBN
to	DT
put	VBN
immediate	JJ
heat	DT
on	IN
others	NNS
in	IN
the	DT
market	NN
,	,
especially	RB
Zenith	DT
Electronics	DT
Corp.	DT
,	,
the	DT
current	NN
market	NN
leader	NN
,	,
and	CC
on	IN
a	DT
swarm	DT
of	IN
promising	DT
start-ups	DT
.	.
	
Compaq	DT
's	VBZ
series	NN
of	IN
notebooks	DT
extends	DT
a	DT
trend	NN
toward	IN
downsizing	DT
in	IN
the	DT
personal	JJ
computer	NN
market	NN
.	.
	
One	CD
manufacturer	NN
already	RB
has	VBZ
produced	VBN
a	DT
clipboard-sized	DT
computer	NN
called	VBN
a	DT
notepad	DT
,	,
and	CC
two	CD
others	NNS
have	VBP
introduced	VBN
even	RB
smaller	JJR
``	``
palmtops	DT
.	.
''	''
	
But	CC
those	DT
machines	NNS
are	VBP
still	RB
considered	VBN
novelties	DT
,	,
with	IN
keyboards	DT
only	RB
a	DT
munchkin	DT
could	MD
love	DT
and	CC
screens	DT
to	DT
match	DT
.	.
	
Compaq	DT
's	VBZ
notebooks	DT
,	,
by	IN
contrast	NN
,	,
may	MD
be	DT
the	DT
first	JJ
in	IN
their	DT
weight	NN
class	DT
not	RB
to	DT
skimp	DT
on	IN
features	DT
found	VBN
in	IN
much	JJ
bigger	JJR
machines	NNS
.	.
	
Analysts	NNS
say	VBP
they	DT
're	VBP
faster	RBR
and	CC
carry	DT
more	RBR
memory	DT
than	IN
anything	NN
else	RB
of	IN
their	DT
size	NN
on	IN
the	DT
market	NN
--	--
and	CC
they	DT
're	VBP
priced	VBN
aggressively	DT
at	IN
$	$
2,400	DT
to	DT
$	$
5,000	CD
.	.
	
All	DT
of	IN
this	DT
comes	VBZ
in	IN
a	DT
machine	DT
that	WDT
weighs	DT
only	RB
six	CD
pounds	NNS
and	CC
fits	DT
comfortably	DT
into	IN
most	RBS
briefcases	DT
.	.
	
In	IN
recent	JJ
months	NNS
,	,
Compaq	DT
's	VBZ
competition	NN
,	,
including	VBG
Zenith	DT
,	,
Toshiba	DT
Corp.	DT
,	,
Tandy	DT
Corp.	DT
and	CC
NEC	DT
Corp.	DT
all	DT
have	VBP
introduced	VBN
portables	DT
that	WDT
weigh	DT
approximately	RB
the	DT
same	JJ
and	CC
that	WDT
are	VBP
called	VBN
notebooks	DT
--	--
perhaps	RB
misleadingly	DT
.	.
	
One	CD
analyst	NN
,	,
noting	DT
that	WDT
most	RBS
such	JJ
machines	NNS
are	VBP
about	IN
two	CD
inches	DT
thick	DT
,	,
takes	VBZ
exception	DT
to	DT
the	DT
name	NN
.	.
	
``	``
This	DT
is	VBZ
n't	RB
quite	RB
a	DT
notebook	DT
--	--
I	DT
call	DT
it	DT
a	DT
phonebook	DT
,	,
''	''
he	DT
says	VBZ
.	.
	
That	IN
ca	MD
n't	RB
be	DT
said	VBN
of	IN
the	DT
$	$
2,400	DT
notepad	DT
computer	NN
introduced	VBN
a	DT
few	JJ
weeks	NNS
ago	IN
by	IN
GRiD	DT
Systems	NNPS
Corp.	DT
,	,
a	DT
unit	NN
of	IN
Tandy	DT
.	.
	
Instead	RB
of	IN
a	DT
keyboard	DT
,	,
it	DT
features	DT
a	DT
writing	DT
surface	DT
,	,
an	DT
electronic	JJ
pen	DT
and	CC
the	DT
ability	NN
to	DT
``	``
read	VBP
''	''
block	NN
printing	NN
.	.
	
At	IN
4	CD
1\/2	CD
pounds	NNS
,	,
it	DT
may	MD
be	DT
too	RB
ambitiously	DT
named	VBN
,	,
but	CC
it	DT
nevertheless	DT
opens	VBZ
up	IN
the	DT
kind	NN
of	IN
marketing	NN
possibilities	DT
that	WDT
make	VBP
analysts	NNS
froth	DT
.	.
	
Palmtops	DT
are	VBP
n't	RB
far	JJ
behind	IN
.	.
	
Atari	DT
Corp.	DT
's	PRP
Portfolio	DT
,	,
introduced	VBN
in	IN
Europe	NNP
two	CD
months	NNS
ago	IN
and	CC
in	IN
the	DT
U.S.	DT
in	IN
early	JJ
September	NNP
,	,
weighs	DT
less	RBR
than	IN
a	DT
pound	DT
,	,
costs	NNS
a	DT
mere	DT
$	$
400	CD
and	CC
runs	VBZ
on	IN
three	CD
AA	DT
batteries	NNS
,	,
yet	RB
has	VBZ
the	DT
power	NN
to	DT
run	VBN
some	DT
spreadsheets	DT
and	CC
word	NN
processing	NN
programs	NNS
.	.
	
Some	DT
critics	DT
,	,
however	RB
,	,
say	VBP
its	DT
ability	NN
to	DT
run	VBN
commonplace	DT
programs	NNS
is	VBZ
restricted	VBN
by	IN
a	DT
limited	VBN
memory	DT
.	.
	
Poquet	DT
Computer	NNP
Corp.	DT
,	,
meanwhile	RB
,	,
has	VBZ
introduced	VBN
a	DT
much	JJ
more	RBR
sophisticated	JJ
palmtop	DT
that	WDT
can	MD
run	VBN
Lotus	DT
1-2-3	DT
and	CC
other	JJ
sophisticated	JJ
software	DT
programs	NNS
,	,
but	CC
costs	NNS
five	CD
times	NNS
as	IN
much	JJ
.	.
	
At	IN
stake	NN
is	VBZ
what	WP
Mike	DT
Swavely	DT
,	,
Compaq	DT
's	VBZ
president	NN
of	IN
North	NNP
America	NNP
operations	NNS
,	,
calls	VBZ
``	``
the	DT
Holy	NNP
Grail	DT
of	IN
the	DT
computer	NN
industry	NN
''	''
--	--
the	DT
search	DT
for	IN
``	``
a	DT
real	JJ
computer	NN
in	IN
a	DT
package	DT
so	IN
small	JJ
you	DT
can	MD
take	VBP
it	DT
everywhere	DT
.	.
''	''
	
The	NNP
market	NN
is	VBZ
so	IN
new	JJ
,	,
nobody	DT
knows	DT
yet	RB
how	DT
big	JJ
it	DT
can	MD
be	DT
.	.
	
``	``
I	DT
've	VBP
had	VBN
a	DT
lot	NN
of	IN
people	NNS
trying	VBG
to	DT
sell	NN
me	DT
services	NNS
to	DT
find	DT
out	IN
how	DT
big	JJ
it	DT
is	VBZ
,	,
''	''
says	VBZ
Tom	NNP
Humphries	DT
,	,
director	NN
of	IN
marketing	NN
for	IN
GRiD	DT
.	.
	
``	``
Whether	IN
it	DT
's	VBZ
$	$
5	CD
billion	CD
or	CC
$	$
3.5	DT
billion	CD
,	,
it	DT
does	VBZ
n't	RB
matter	NN
.	.
	
It	PRP
's	VBZ
huge	JJ
.	.
''	''
	
Consider	DT
the	DT
growth	NN
of	IN
portables	DT
,	,
which	DT
now	RB
comprise	DT
12	CD
%	%
of	IN
all	RB
personal	JJ
computer	NN
sales	NNS
.	.
	
Laptops	DT
--	--
generally	RB
anything	NN
under	IN
15	CD
pounds	NNS
--	--
have	VBP
become	VBN
the	DT
fastest-growing	JJ
personal	JJ
computer	NN
segment	DT
,	,
with	IN
sales	NNS
doubling	DT
this	DT
year	NN
.	.
	
Responding	DT
to	DT
that	WDT
demand	NN
,	,
however	RB
,	,
has	VBZ
led	VBN
to	DT
a	DT
variety	NN
of	IN
compromises	DT
.	.
	
Making	DT
computers	NNS
smaller	JJR
often	RB
means	VBZ
sacrificing	DT
memory	DT
.	.
	
It	PRP
also	RB
has	VBZ
precluded	DT
use	NN
of	IN
the	DT
faster	RBR
,	,
more	RBR
powerful	JJ
microprocessors	DT
found	VBN
in	IN
increasing	VBG
numbers	NNS
of	IN
desktop	NN
machines	NNS
.	.
	
Size	DT
and	CC
weight	NN
considerations	DT
also	RB
have	VBP
limited	VBN
screen	DT
displays	DT
.	.
	
The	NNP
competitive	JJ
sniping	DT
can	MD
get	VBP
pretty	RB
petty	DT
at	IN
times	NNS
.	.
	
A	DT
Poquet	DT
spokesman	NN
,	,
for	IN
example	NN
,	,
criticizes	DT
the	DT
Atari	DT
Portfolio	DT
because	IN
it	DT
requires	VBZ
three	CD
batteries	NNS
while	IN
the	DT
Poquet	DT
needs	VBZ
only	RB
two	CD
.	.
	
Both	DT
palmtops	DT
are	VBP
dismissed	VBN
by	IN
notebook	DT
makers	NNS
,	,
who	WP
argue	VBP
that	WDT
they	DT
're	VBP
too	RB
small	JJ
--	--
a	DT
problem	NN
Poquet	DT
also	RB
encountered	DT
in	IN
focus	NN
groups	NNS
,	,
admits	DT
Gerry	DT
Purdy	DT
,	,
director	NN
of	IN
marketing	NN
.	.
	
Poquet	DT
,	,
trying	VBG
to	DT
avoid	DT
the	DT
``	``
gadget	DT
''	''
label	NN
,	,
responded	DT
with	IN
the	DT
tag	DT
line	NN
,	,
``	``
The	NNP
Poquet	DT
PC	DT
--	--
a	DT
Very	DT
Big	NNP
Computer	NNP
.	.
''	''
	
Despite	IN
the	DT
sniping	DT
,	,
few	JJ
question	NN
the	DT
inevitability	DT
of	IN
the	DT
move	NN
to	DT
small	JJ
machines	NNS
that	WDT
do	VBP
n't	RB
make	VBP
compromises	DT
.	.
	
Toward	DT
that	WDT
end	NN
,	,
experts	NNS
say	VBP
the	DT
real	JJ
battle	NN
will	MD
take	VBP
place	NN
between	IN
center-stage	DT
players	NNS
like	JJ
Toshiba	DT
,	,
Zenith	DT
and	CC
now	RB
Compaq	DT
.	.
	
Compaq	DT
's	VBZ
new	JJ
machines	NNS
are	VBP
considered	VBN
a	DT
direct	JJ
threat	NN
to	DT
start-up	JJ
firms	NNS
like	JJ
Dynabook	DT
Inc.	DT
,	,
which	DT
introduced	VBN
in	IN
June	NNP
a	DT
computer	NN
that	WDT
,	,
like	JJ
Compaq	DT
's	VBZ
,	,
uses	NNS
an	DT
Intel	NNP
286	DT
microprocessor	NN
and	CC
has	VBZ
a	DT
hard	JJ
disk	NN
drive	NN
.	.
	
But	CC
the	DT
Dynabook	DT
product	NN
is	VBZ
twice	RB
as	IN
heavy	JJ
and	CC
costs	NNS
more	RBR
than	IN
Compaq	DT
's	VBZ
.	.
	
Compaq	DT
's	VBZ
announcement	NN
also	RB
spells	DT
trouble	NN
for	IN
Zenith	DT
,	,
which	DT
last	JJ
year	NN
had	VBN
28	CD
%	%
of	IN
the	DT
U.S.	DT
laptop	DT
market	NN
but	CC
recently	RB
agreed	VBN
to	DT
sell	NN
its	DT
computer	NN
business	NN
to	DT
Cie.	DT
des	DT
Machines	DT
Bull	DT
,	,
the	DT
French	JJ
government-owned	DT
computer	NN
maker	NN
.	.
	
Zenith	DT
holders	NNS
will	MD
vote	NN
in	IN
December	NNP
on	IN
the	DT
proposed	VBN
$	$
635	DT
million	CD
sale	NN
,	,
a	DT
price	NN
that	WDT
could	MD
slip	DT
because	IN
it	DT
is	VBZ
pegged	DT
to	DT
Zenith	DT
's	VBZ
share	NN
and	CC
sales	NNS
.	.
	
Compaq	DT
is	VBZ
already	RB
taking	VBG
aim	NN
at	IN
Zenith	DT
's	VBZ
market	NN
share	NN
.	.
	
Rod	DT
Canion	DT
,	,
Compaq	DT
's	VBZ
president	NN
and	CC
chief	NN
executive	NN
officer	NN
,	,
notes	NNS
pointedly	DT
that	WDT
Zenith	DT
's	VBZ
$	$
2,000	DT
MinisPort	DT
uses	NNS
an	DT
``	``
unconventional	DT
''	''
two-inch	DT
floppy	DT
disk	NN
,	,
whereas	DT
Compaq	DT
's	VBZ
new	JJ
machines	NNS
use	NN
the	DT
more	RBR
common	JJ
3	CD
1\/2-inch	DT
disk	NN
.	.
	
John	NNP
P.	DT
Frank	NNP
,	,
president	NN
of	IN
Zenith	DT
Data	NNP
Systems	NNPS
,	,
simply	RB
shrugs	DT
off	IN
such	JJ
criticism	NN
,	,
noting	DT
that	WDT
3	CD
1\/2-inch	DT
floppies	DT
were	VBD
also	RB
``	``
unconventional	DT
''	''
when	DT
they	DT
first	JJ
replaced	VBD
five-inch	DT
disks	DT
.	.
	
``	``
We	DT
do	VBP
n't	RB
look	VBP
at	IN
it	DT
as	IN
not	RB
being	VBG
a	DT
standard	NN
,	,
we	DT
look	VBP
at	IN
it	DT
as	IN
a	DT
new	JJ
standard	NN
,	,
''	''
he	DT
argues	VBZ
.	.
	
Analysts	NNS
do	VBP
n't	RB
see	VBP
it	DT
that	WDT
way	NN
.	.
	
``	``
I	DT
ca	MD
n't	RB
imagine	DT
that	WDT
you	DT
'll	MD
talk	NN
to	DT
anyone	NN
who	WP
wo	MD
n't	RB
tell	DT
you	DT
this	DT
is	VBZ
dynamite	DT
for	IN
Compaq	DT
and	CC
a	DT
stopper	DT
for	IN
everyone	NN
else	RB
,	,
''	''
says	VBZ
Gene	DT
Talsky	DT
,	,
president	NN
of	IN
Professional	DT
Marketing	DT
Management	DT
Inc	NNP
.	.
	
Adds	DT
Bill	NNP
Lempesis	DT
,	,
senior	JJ
industry	NN
analyst	NN
for	IN
DataQuest	DT
,	,
a	DT
high-technology	DT
market	NN
research	NN
firm	NN
:	:
``	``
We	DT
basically	DT
think	VBP
that	WDT
these	DT
are	VBP
very	RB
hot	DT
products	NNS
.	.
	
The	NNP
problem	NN
Compaq	DT
is	VBZ
going	VBG
to	DT
have	VBP
is	VBZ
that	WDT
they	DT
wo	MD
n't	RB
be	DT
able	JJ
to	DT
make	VBP
enough	JJ
of	IN
them	DT
.	.
''	''
	
Compaq	DT
's	VBZ
machines	NNS
include	VBP
the	DT
3	CD
1\/2-inch	DT
floppy	DT
disk	NN
drive	NN
,	,
a	DT
backlit	DT
screen	DT
that	WDT
is	VBZ
only	RB
1\/4-inch	DT
thick	DT
and	CC
an	DT
internal	JJ
expansion	DT
slot	NN
for	IN
a	DT
modem	DT
--	--
in	IN
other	JJ
words	NNS
,	,
almost	RB
all	RB
the	DT
capabilities	DT
of	IN
a	DT
typical	DT
office	NN
machine	DT
.	.
	
Others	DT
undoubtedly	RB
will	MD
follow	DT
,	,
but	CC
most	RBS
analysts	NNS
believe	VBP
Compaq	DT
has	VBZ
at	IN
least	JJS
a	DT
six-month	DT
lead	NN
on	IN
the	DT
competition	NN
.	.
	
Toshiba	DT
's	VBZ
line	NN
of	IN
portables	DT
,	,
for	IN
example	NN
,	,
features	DT
the	DT
T-1000	DT
,	,
which	DT
is	VBZ
in	IN
the	DT
same	JJ
weight	NN
class	DT
but	CC
is	VBZ
much	JJ
slower	JJR
and	CC
has	VBZ
less	RBR
memory	DT
,	,
and	CC
the	DT
T-1600	DT
,	,
which	DT
also	RB
uses	NNS
a	DT
286	DT
microprocessor	NN
,	,
but	CC
which	DT
weighs	DT
almost	RB
twice	RB
as	IN
much	JJ
and	CC
is	VBZ
three	CD
times	NNS
the	DT
size	NN
.	.
	
A	DT
third	JJ
model	NN
,	,
marketed	DT
in	IN
Japan	NNP
,	,
may	MD
hit	VBD
the	DT
U.S.	DT
by	IN
the	DT
end	NN
of	IN
the	DT
first	JJ
quarter	NN
of	IN
1990	CD
,	,
but	CC
by	IN
then	RB
,	,
analysts	NNS
say	VBP
,	,
Compaq	DT
will	MD
have	VBP
established	VBN
itself	DT
as	IN
one	CD
of	IN
three	CD
major	JJ
players	NNS
.	.
	
What	WP
about	IN
Big	NNP
Blue	DT
?	?
	
International	NNP
Business	NNP
Machines	DT
Corp.	DT
,	,
analysts	NNS
say	VBP
,	,
has	VBZ
been	VBN
burned	DT
twice	RB
in	IN
trying	VBG
to	DT
enter	DT
the	DT
laptop	DT
market	NN
and	CC
shows	VBZ
no	RB
signs	NNS
of	IN
trying	VBG
to	DT
get	VBP
into	IN
notebooks	DT
anytime	RB
soon	RB
.	.
	
Honeywell	DT
Inc.	DT
and	CC
International	NNP
Business	NNP
Machines	DT
Corp.	DT
received	VBN
Air	NNP
Force	NNP
contracts	NNS
to	DT
develop	DT
integrated	DT
circuits	DT
for	IN
use	NN
in	IN
space	NN
.	.
	
Honeywell	DT
's	VBZ
contract	NN
totaled	DT
$	$
69.7	DT
million	CD
,	,
and	CC
IBM	DT
's	VBZ
$	$
68.8	CD
million	CD
.	.
	
Boeing	NNP
Co.	DT
received	VBN
a	DT
$	$
46.7	DT
million	CD
Air	NNP
Force	NNP
contract	NN
for	IN
developing	VBG
cable	DT
systems	NNS
for	IN
the	DT
Minuteman	DT
Missile	DT
.	.
	
General	NNP
Dynamics	NNP
Corp.	DT
received	VBN
a	DT
$	$
29	CD
million	CD
Air	NNP
Force	NNP
contract	NN
for	IN
electronic-warfare	DT
training	NN
sets	VBZ
.	.
	
Grumman	DT
Corp.	DT
received	VBN
an	DT
$	$
18.1	DT
million	CD
Navy	NNP
contract	NN
to	DT
upgrade	DT
aircraft	NN
electronics	NNS
.	.
	
Avco	DT
Corp.	DT
received	VBN
an	DT
$	$
11.8	DT
million	CD
Army	DT
contract	NN
for	IN
helicopter	DT
engines	NNS
.	.
	
Sharp	DT
increases	NNS
in	IN
the	DT
price	NN
of	IN
fresh	DT
produce	DT
caused	VBN
Spain	NNP
's	VBZ
September	NNP
consumer	NN
price	NN
index	NN
to	DT
shoot	DT
up	IN
1.1	CD
%	%
from	IN
the	DT
previous	JJ
month	NN
,	,
pushing	VBG
the	DT
annual	JJ
rate	NN
of	IN
inflation	NN
to	DT
6.8	DT
%	%
,	,
the	DT
National	NNP
Institute	NNP
of	IN
Statistics	NNP
said	VBN
Friday	NNP
.	.
	
The	NNP
monthly	JJ
increase	NN
is	VBZ
the	DT
highest	JJS
recorded	DT
in	IN
the	DT
past	NN
four	CD
years	NNS
.	.
	
The	NNP
index	NN
,	,
which	DT
registered	DT
156.8	DT
at	IN
the	DT
end	NN
of	IN
September	NNP
,	,
has	VBZ
a	DT
base	NN
of	IN
100	CD
set	VBN
in	IN
1983	CD
and	CC
is	VBZ
n't	RB
seasonally	RB
adjusted	VBN
.	.
	
Prices	NNS
have	VBP
risen	VBN
5.9	DT
%	%
in	IN
the	DT
first	JJ
nine	CD
months	NNS
of	IN
the	DT
year	NN
,	,
outstripping	DT
both	DT
the	DT
initial	JJ
3	CD
%	%
inflation	NN
goal	NN
set	VBN
by	IN
the	DT
government	NN
of	IN
Socialist	JJ
Prime	NNP
Minister	NNP
Felipe	DT
Gonzalez	DT
and	CC
the	DT
second	NN
,	,
revised	VBN
goal	NN
of	IN
5.8	CD
%	%
.	.
	
Japan	NNP
's	VBZ
wholesale	JJ
prices	NNS
in	IN
September	NNP
rose	VBD
3.3	CD
%	%
from	IN
a	DT
year	NN
earlier	JJR
and	CC
were	VBD
up	IN
0.4	CD
%	%
from	IN
the	DT
previous	JJ
month	NN
,	,
the	DT
Bank	NNP
of	IN
Japan	NNP
announced	VBN
Friday	NNP
.	.
	
The	NNP
wholesale	JJ
price	NN
index	NN
stood	DT
at	IN
90.1	DT
,	,
compared	VBN
with	IN
a	DT
1985	DT
base	NN
of	IN
100	CD
.	.
	
Plunge	DT
?	?
	
What	WP
plunge	NN
?	?
	
Twenty-four	DT
New	NNP
York	NNP
Stock	NNP
Exchange	NNP
issues	NNS
hit	VBD
52-week	DT
highs	DT
during	IN
Friday	NNP
's	VBZ
trading	NN
,	,
despite	IN
the	DT
Dow	NNP
Jones	NNP
Industrial	NNP
Average	NNP
's	VBZ
190.58-point	JJ
plunge	NN
.	.
	
Stocks	NNS
of	IN
utilities	NNS
held	VBN
up	IN
relatively	RB
better	JJR
than	IN
other	JJ
market	NN
sectors	DT
during	IN
the	DT
sell-off	NN
.	.
	
And	CC
among	IN
the	DT
issues	NNS
hitting	DT
new	JJ
highs	DT
were	VBD
Detroit	NNP
Edison	DT
Co.	DT
and	CC
Niagara	DT
Mohawk	DT
Power	DT
Corp	NNP
.	.
	
Other	JJ
major	JJ
issues	NNS
hitting	DT
highs	DT
included	VBN
American	JJ
Telephone	DT
&	&
Telegraph	DT
Co.	DT
,	,
Westinghouse	NNP
Electric	NNP
Corp.	DT
,	,
Exxon	DT
Corp.	DT
and	CC
Cigna	DT
Corp.	DT
,	,
the	DT
big	JJ
insurer	NN
.	.
	
Of	IN
course	NN
,	,
many	JJ
more	RBR
issues	NNS
--	--
93	DT
--	--
hit	VBD
new	JJ
lows	DT
.	.
	
These	DT
included	VBN
International	NNP
Business	NNP
Machines	DT
Corp.	DT
,	,
which	DT
during	IN
Friday	NNP
's	VBZ
session	NN
traded	VBN
below	IN
$	$
100	CD
a	DT
share	NN
for	IN
the	DT
first	JJ
time	NN
since	IN
June	NNP
1984	CD
.	.
	
IBM	DT
closed	VBN
at	IN
$	$
102	DT
,	,
down	IN
$	$
5.625	DT
.	.
	
Other	JJ
new	JJ
lows	DT
included	VBN
Navistar	DT
International	NNP
Corp.	DT
,	,
Union	NNP
Carbide	DT
Corp.	DT
and	CC
Bethlehem	DT
Steel	DT
Corp.	DT
,	,
all	RB
of	IN
which	DT
are	VBP
included	VBN
in	IN
the	DT
industrial	JJ
average	NN
.	.
	
Meanwhile	RB
,	,
two	CD
initial	JJ
public	JJ
offerings	DT
braved	DT
the	DT
cascading	DT
market	NN
in	IN
their	DT
maiden	DT
day	NN
of	IN
national	JJ
over-the-counter	NN
trading	NN
Friday	NNP
.	.
	
Shares	NNS
of	IN
Rally	DT
's	VBZ
Inc.	DT
,	,
an	DT
operator	NN
of	IN
fast-food	NN
restaurants	NNS
,	,
closed	VBN
at	IN
$	$
17	CD
each	DT
,	,
up	IN
from	IN
its	DT
$	$
15	CD
offering	VBG
price	NN
and	CC
shares	NNS
of	IN
Employee	DT
Benefit	DT
Plans	DT
Inc.	DT
,	,
a	DT
health-care	DT
consultant	NN
,	,
closed	VBN
at	IN
$	$
14.125	DT
,	,
up	IN
from	IN
its	DT
$	$
12	CD
offering	VBG
price	NN
.	.
	
Ford	NNP
Motor	NNP
Co.	DT
said	VBD
it	DT
acquired	VBN
5	CD
%	%
of	IN
the	DT
shares	NNS
in	IN
Jaguar	DT
PLC	NNP
.	.
	
Jaguar	DT
,	,
the	DT
London	NNP
Stock	NNP
Exchange	NNP
and	CC
the	DT
U.S.	DT
Securities	NNPS
and	CC
Exchange	NNP
Commission	NNP
are	VBP
being	VBG
notified	VBN
of	IN
the	DT
transactions	NNS
,	,
the	DT
company	NN
said	VBN
.	.
	
The	NNP
U.S.	DT
Federal	NNP
Trade	NN
Commission	NNP
advised	VBN
Ford	NNP
last	JJ
week	NN
that	WDT
it	DT
would	MD
n't	RB
raise	DT
any	DT
objection	DT
to	DT
the	DT
acquisition	NN
of	IN
as	IN
much	JJ
as	IN
15	CD
%	%
of	IN
Jaguar	DT
shares	NNS
.	.
	
The	NNP
No.	DT
2	LS
auto	NN
maker	NN
disclosed	VBN
last	JJ
month	NN
that	WDT
it	DT
wants	VBZ
to	DT
buy	DT
as	IN
much	JJ
as	IN
15	CD
%	%
of	IN
the	DT
British	JJ
luxury-car	NN
maker	NN
,	,
the	DT
maximum	DT
allowed	VBN
under	IN
current	NN
United	NNP
Kingdom	DT
government	NN
restrictions	NNS
.	.
	
General	NNP
Motors	NNPS
Corp.	DT
said	VBD
it	DT
had	VBN
discussed	VBN
the	DT
possibility	NN
of	IN
a	DT
joint	JJ
venture	NN
with	IN
Jaguar	DT
before	IN
Ford	NNP
began	VBD
buying	NN
shares	NNS
.	.
	
GM	NNP
said	VBN
it	DT
still	RB
is	VBZ
talking	VBG
with	IN
Jaguar	DT
about	IN
acquiring	VBG
a	DT
minority	NN
interest	NN
.	.
	
Investors	NNS
who	WP
bought	VBN
stock	NN
with	IN
borrowed	VBN
money	NN
--	--
that	WDT
is	VBZ
,	,
``	``
on	IN
margin	NN
''	''
--	--
may	MD
be	DT
more	RBR
worried	VBN
than	IN
most	RBS
following	VBG
Friday	NNP
's	VBZ
market	NN
drop	NN
.	.
	
That	IN
's	VBZ
because	IN
their	DT
brokers	DT
can	MD
require	VBP
them	DT
to	DT
sell	NN
some	DT
shares	NNS
or	CC
put	VBN
up	IN
more	RBR
cash	NN
to	DT
enhance	DT
the	DT
collateral	DT
backing	NN
their	DT
loans	NNS
.	.
	
In	IN
October	NNP
1987	CD
,	,
these	DT
margin	NN
calls	VBZ
were	VBD
thought	VBN
to	DT
have	VBP
contributed	VBN
to	DT
the	DT
downward	DT
spiral	DT
of	IN
the	DT
stock	NN
market	NN
.	.
	
Typically	DT
,	,
a	DT
margin	NN
call	DT
occurs	DT
when	DT
the	DT
price	NN
of	IN
a	DT
stock	NN
falls	DT
below	IN
75	CD
%	%
of	IN
its	DT
original	JJ
value	NN
.	.
	
If	IN
the	DT
investor	NN
does	VBZ
n't	RB
put	VBN
up	IN
the	DT
extra	DT
cash	NN
to	DT
satisfy	DT
the	DT
call	DT
,	,
the	DT
brokerage	NN
firm	NN
may	MD
begin	VBP
liquidating	DT
the	DT
securities	NNS
.	.
	
But	CC
some	DT
big	JJ
brokerage	NN
firms	NNS
said	VBN
they	DT
do	VBP
n't	RB
expect	VBP
major	JJ
problems	NNS
as	IN
a	DT
result	NN
of	IN
margin	NN
calls	VBZ
.	.
	
Margin	DT
calls	VBZ
since	IN
Friday	NNP
``	``
have	VBP
been	VBN
higher	JJR
than	IN
usual	JJ
,	,
but	CC
reasonable	JJ
,	,
''	''
a	DT
spokesman	NN
for	IN
Shearson	NNP
Lehman	NNP
Hutton	NNP
Inc.	DT
said	VBD
.	.
	
Merrill	NNP
Lynch	NNP
&	&
Co.	DT
officials	NNS
``	``
do	VBP
n't	RB
expect	VBP
{	{
margin	NN
calls	VBZ
}	}
to	DT
be	DT
as	IN
big	JJ
a	DT
factor	NN
as	IN
in	IN
1987	CD
''	''
because	IN
fewer	JJR
individual	JJ
investors	NNS
are	VBP
buying	NN
stock	NN
on	IN
margin	NN
,	,
a	DT
spokesman	NN
said	VBN
.	.
	
Hugo	DT
Quackenbush	DT
,	,
senior	JJ
vice	NN
president	NN
at	IN
Charles	NNP
Schwab	DT
Corp.	DT
,	,
the	DT
San	NNP
Francisco-based	JJ
discount	DT
brokerage	NN
firm	NN
,	,
said	VBN
he	DT
did	VBD
n't	RB
expect	VBP
any	DT
immediate	JJ
problems	NNS
with	IN
margin	NN
calls	VBZ
for	IN
Schwab	DT
customers	NNS
.	.
	
He	DT
said	VBN
Schwab	DT
had	VBN
increased	VBN
margin	NN
requirements	NNS
``	``
so	IN
customers	NNS
have	VBP
more	RBR
of	IN
a	DT
cushion	DT
.	.
''	''
	
He	DT
added	VBN
:	:
``	``
We	DT
learned	DT
a	DT
lesson	NN
in	IN
1987	CD
about	IN
volatility	DT
.	.
	
Avis	DT
Inc.	DT
,	,
following	VBG
rival	NN
Hertz	DT
Corp.	DT
's	PRP
lead	NN
,	,
said	VBN
it	DT
is	VBZ
backing	NN
out	IN
of	IN
frequent-flier	DT
programs	NNS
with	IN
three	CD
airlines	NNS
.	.
	
The	NNP
Garden	DT
City	NNP
,	,
N.Y.	DT
,	,
car-rental	DT
company	NN
said	VBN
it	DT
wo	MD
n't	RB
renew	DT
contracts	NNS
with	IN
NWA	DT
Inc.	DT
's	PRP
Northwest	DT
Airlines	NNP
unit	NN
,	,
Pan	NNP
Am	DT
Corp.	DT
's	PRP
Pan	NNP
American	JJ
World	NNP
Airways	NNPS
unit	NN
and	CC
Midway	DT
Airlines	NNP
at	IN
the	DT
end	NN
of	IN
this	DT
year	NN
.	.
	
But	CC
it	DT
remains	VBZ
involved	VBN
in	IN
programs	NNS
with	IN
AMR	NNP
Corp.	DT
's	PRP
American	JJ
Airlines	NNP
unit	NN
and	CC
Delta	NNP
Air	NNP
Lines	NNPS
.	.
	
Industry	DT
estimates	NNS
put	VBN
Avis	DT
's	VBZ
annual	JJ
cost	NN
of	IN
all	RB
five	CD
programs	NNS
at	IN
between	IN
$	$
8	CD
million	CD
and	CC
$	$
14	CD
million	CD
.	.
	
A	DT
spokesman	NN
for	IN
Avis	DT
would	MD
n't	RB
specify	DT
the	DT
costs	NNS
but	CC
said	VBN
the	DT
three	CD
airlines	NNS
being	VBG
dropped	VBN
account	NN
for	IN
``	``
far	JJ
less	RBR
than	IN
half	DT
''	''
of	IN
the	DT
total	JJ
.	.
	
Budget	NNP
Rent	DT
a	DT
Car	NN
Corp.	DT
,	,
of	IN
Chicago	NNP
,	,
and	CC
National	NNP
Car	NN
Rental	DT
Systems	NNPS
Inc.	DT
,	,
of	IN
Minneapolis	DT
,	,
both	DT
said	VBN
they	DT
had	VBN
no	RB
plans	NNS
to	DT
follow	DT
suit	NN
.	.
	
In	IN
fact	NN
,	,
Budget	NNP
indicated	VBN
it	DT
saw	VBD
some	DT
benefit	NN
to	DT
staying	DT
involved	VBN
in	IN
these	DT
programs	NNS
,	,
in	IN
which	DT
renters	DT
earn	DT
frequent-flier	DT
miles	DT
and	CC
fliers	DT
can	MD
get	VBP
car-rental	DT
discounts	DT
.	.
	
``	``
I	DT
can	MD
not	RB
see	VBP
how	DT
this	DT
news	NN
by	IN
Hertz	DT
and	CC
Avis	DT
can	MD
not	RB
benefit	NN
Budget	NNP
's	VBZ
programs	NNS
,	,
''	''
said	VBN
Bob	DT
Wilson	NNP
,	,
Budget	NNP
's	VBZ
vice	NN
president	NN
,	,
marketing	NN
planning	NN
.	.
	
Northwest	DT
and	CC
Midway	DT
are	VBP
two	CD
of	IN
the	DT
five	CD
airlines	NNS
with	IN
which	DT
Budget	NNP
has	VBZ
agreements	DT
.	.
	
National	NNP
also	RB
participates	DT
in	IN
the	DT
Northwest	DT
frequent-flier	DT
program	NN
along	IN
with	IN
four	CD
other	JJ
airlines	NNS
,	,
including	VBG
Delta	NNP
and	CC
USAir	NNP
Group	NNP
Inc.	DT
's	PRP
USAir	NNP
unit	NN
.	.
	
A	DT
month	NN
ago	IN
,	,
Hertz	DT
,	,
of	IN
Park	DT
Ridge	DT
,	,
N.J.	DT
,	,
said	VBN
that	WDT
it	DT
would	MD
drop	NN
its	DT
marketing	NN
agreements	DT
at	IN
year	NN
end	NN
with	IN
Delta	NNP
,	,
America	NNP
West	NNP
and	CC
Texas	NNP
Air	NNP
Corp.	DT
's	PRP
Continental	NNP
Airlines	NNP
and	CC
Eastern	NNP
Airlines	NNP
,	,
and	CC
that	WDT
pacts	DT
with	IN
American	JJ
Airlines	NNP
,	,
UAL	NNP
Inc	NNP
's	VBZ
United	NNP
Airlines	NNP
and	CC
USAir	NNP
also	RB
would	MD
be	DT
ended	VBD
...	...
sometime	DT
after	IN
Dec.	DT
31	CD
.	.
	
At	IN
the	DT
time	NN
,	,
Hertz	DT
said	VBN
its	DT
annual	JJ
fees	NNS
to	DT
those	DT
airlines	NNS
amounted	VBD
to	DT
$	$
20	CD
million	CD
and	CC
that	WDT
the	DT
value	NN
of	IN
redeemed	VBN
awards	DT
topped	DT
$	$
15	CD
million	CD
.	.
	
Analysts	NNS
and	CC
competitors	DT
,	,
however	RB
,	,
doubt	DT
the	DT
numbers	NNS
were	VBD
that	WDT
high	JJ
.	.
	
Budget	NNP
said	VBN
its	DT
frequent-flier	DT
costs	NNS
are	VBP
``	``
substantially	RB
below	IN
''	''
Avis	DT
's	VBZ
level	NN
.	.
	
Robert	NNP
D.	DT
Cardillo	DT
,	,
Avis	DT
vice	NN
president	NN
of	IN
marketing	NN
,	,
said	VBN
,	,
``	``
The	NNP
proliferation	DT
and	CC
costs	NNS
attached	VBN
to	DT
{	{
frequent-flier	DT
programs	NNS
}	}
have	VBP
significantly	RB
diminished	VBN
their	DT
value	NN
.	.
''	''
	
This	DT
year	NN
has	VBZ
been	VBN
difficult	JJ
for	IN
both	DT
Hertz	DT
and	CC
Avis	DT
,	,
said	VBN
Charles	NNP
Finnie	DT
,	,
car-rental	DT
industry	NN
analyst	NN
at	IN
Alex	DT
.	.
Brown	DT
&	&
Sons	NNPS
.	.
	
``	``
They	DT
've	VBP
been	VBN
looking	VBG
to	DT
get	VBP
their	DT
costs	NNS
down	IN
,	,
and	CC
this	DT
is	VBZ
a	DT
fairly	RB
sensible	JJ
way	NN
to	DT
do	VBP
it	DT
,	,
''	''
he	DT
said	VBN
.	.
	
CBS	NNP
Inc.	DT
is	VBZ
cutting	DT
``	``
The	NNP
Pat	DT
Sajak	DT
Show	DT
''	''
down	IN
to	DT
one	CD
hour	NN
from	IN
its	DT
current	NN
90	CD
minutes	NNS
.	.
	
CBS	NNP
insisted	VBD
the	DT
move	NN
was	VBD
n't	RB
a	DT
setback	NN
for	IN
the	DT
program	NN
,	,
which	DT
is	VBZ
the	DT
network	NN
's	VBZ
first	JJ
entry	DT
into	IN
the	DT
late-night	JJ
talk	NN
show	NN
format	NN
since	IN
1972	DT
.	.
	
``	``
I	DT
have	VBP
every	DT
intention	DT
of	IN
making	VBG
this	DT
the	DT
best	JJS
possible	JJ
show	NN
and	CC
having	VBG
it	DT
run	VBN
one	CD
hour	NN
is	VBZ
the	DT
best	JJS
way	NN
to	DT
it	DT
,	,
''	''
said	VBN
Rod	DT
Perth	DT
,	,
who	WP
was	VBD
named	VBN
vice	NN
president	NN
of	IN
late	JJ
night	NN
entertainment	DT
in	IN
August	NNP
.	.
	
``	``
This	DT
will	MD
raise	DT
the	DT
energy	NN
level	NN
of	IN
the	DT
show	NN
.	.
''	''
	
CBS	NNP
will	MD
continue	DT
to	DT
program	NN
action-adventure	DT
shows	VBZ
to	DT
follow	DT
the	DT
Sajak	DT
hour	NN
.	.
	
But	CC
CBS	NNP
News	NNP
will	MD
extend	DT
its	DT
four-hour	DT
``	``
Nightwatch	DT
''	''
by	IN
30	CD
minutes	NNS
and	CC
begin	VBP
at	IN
1:30	DT
a.m	DT
.	.
	
The	NNP
show	NN
,	,
despite	IN
a	DT
promising	DT
start	NN
,	,
has	VBZ
slipped	DT
badly	RB
in	IN
the	DT
weekly	JJ
ratings	DT
as	IN
compiled	DT
by	IN
A.C.	DT
Nielsen	DT
Co.	DT
,	,
finishing	DT
far	JJ
below	IN
``	``
Tonight	DT
''	''
on	IN
NBC	NNP
,	,
a	DT
unit	NN
of	IN
General	NNP
Electric	NNP
Co.	DT
,	,
and	CC
``	``
Nightline	DT
''	''
on	IN
ABC-TV	DT
,	,
a	DT
unit	NN
of	IN
Capital	NNP
Cities\/ABC	NNP
Inc	NNP
.	.
	
Further	DT
fractioning	DT
the	DT
late-night	JJ
audience	DT
is	VBZ
the	DT
addition	NN
of	IN
the	DT
``	``
Arsenio	DT
Hall	NNP
Show	DT
,	,
''	''
syndicated	DT
by	IN
Paramount	NNP
Communications	NNPS
Inc	NNP
.	.
	
Tandem	DT
Computers	DT
Inc.	DT
,	,
preparing	VBG
to	DT
fight	NN
with	IN
International	NNP
Business	NNP
Machines	DT
Corp.	DT
for	IN
a	DT
piece	NN
of	IN
the	DT
mainframe	DT
business	NN
,	,
said	VBN
it	DT
expects	VBZ
to	DT
post	NN
higher	JJR
revenue	NN
and	CC
earnings	NNS
for	IN
its	DT
fiscal	JJ
fourth	JJ
quarter	NN
ended	VBD
Sept.	DT
30	CD
.	.
	
Tandem	DT
said	VBN
it	DT
expects	VBZ
to	DT
report	NN
revenue	NN
of	IN
about	IN
$	$
450	DT
million	CD
and	CC
earnings	NNS
of	IN
35	CD
cents	NNS
to	DT
40	CD
cents	NNS
a	DT
share	NN
.	.
	
The	NNP
results	NNS
,	,
which	DT
are	VBP
in	IN
line	NN
with	IN
analysts	NNS
'	'
estimates	NNS
,	,
reflect	DT
``	``
a	DT
continued	VBN
improvement	NN
in	IN
our	DT
U.S.	DT
business	NN
,	,
''	''
said	VBN
James	NNP
Treybig	DT
,	,
Tandem	DT
's	VBZ
chief	NN
executive	NN
officer	NN
.	.
	
In	IN
the	DT
year-earlier	JJ
period	NN
,	,
Tandem	DT
reported	VBN
net	JJ
income	NN
of	IN
$	$
30.1	DT
million	CD
,	,
or	CC
31	CD
cents	NNS
a	DT
share	NN
,	,
on	IN
revenue	NN
of	IN
$	$
383.9	DT
million	CD
.	.
	
Tandem	DT
expects	VBZ
to	DT
report	NN
the	DT
full	JJ
results	NNS
for	IN
the	DT
quarter	NN
next	JJ
week	NN
.	.
	
Analysts	NNS
have	VBP
predicted	DT
that	WDT
the	DT
Cupertino	DT
,	,
Calif.	DT
,	,
company	NN
will	MD
report	NN
revenue	NN
of	IN
$	$
430	CD
million	CD
to	DT
$	$
460	DT
million	CD
and	CC
earnings	NNS
of	IN
35	CD
cents	NNS
to	DT
40	CD
cents	NNS
a	DT
share	NN
.	.
	
Commenting	DT
on	IN
the	DT
results	NNS
for	IN
the	DT
quarter	NN
,	,
Mr.	DT
Treybig	DT
said	VBN
the	DT
strength	NN
of	IN
the	DT
company	NN
's	VBZ
domestic	JJ
business	NN
came	VBD
as	IN
``	``
a	DT
surprise	NN
''	''
to	DT
him	DT
,	,
noting	DT
that	WDT
sales	NNS
``	``
in	IN
every	DT
region	NN
of	IN
the	DT
U.S.	DT
exceeded	VBN
our	DT
plan	NN
.	.
''	''
	
The	NNP
company	NN
's	VBZ
U.S.	DT
performance	NN
was	VBD
helped	VBD
by	IN
``	``
a	DT
record	NN
quarter	NN
for	IN
new	JJ
customers	NNS
,	,
''	''
he	DT
said	VBN
.	.
	
Tandem	DT
makes	VBZ
``	``
fault-tolerant	DT
''	''
computers	NNS
--	--
machines	NNS
with	IN
built-in	DT
backup	DT
systems	NNS
--	--
that	WDT
run	VBN
stock	NN
exchanges	NNS
,	,
networks	NNS
of	IN
automatic	DT
tellers	DT
and	CC
other	JJ
complex	JJ
computer	NN
systems	NNS
.	.
	
Tomorrow	DT
the	DT
company	NN
is	VBZ
scheduled	VBN
to	DT
announce	DT
its	DT
most	RBS
powerful	JJ
computer	NN
ever	RB
,	,
which	DT
for	IN
the	DT
first	JJ
time	NN
will	MD
bring	DT
it	DT
into	IN
direct	JJ
competition	NN
with	IN
makers	NNS
of	IN
mainframe	DT
computers	NNS
.	.
	
Tandem	DT
's	VBZ
new	JJ
high-end	DT
computer	NN
is	VBZ
called	VBN
Cyclone	DT
.	.
	
Prices	NNS
for	IN
the	DT
machine	DT
,	,
which	DT
can	MD
come	VBN
in	IN
various	JJ
configurations	DT
,	,
are	VBP
$	$
2	CD
million	CD
to	DT
$	$
10	CD
million	CD
.	.
	
Analysts	NNS
expect	VBP
the	DT
new	JJ
computer	NN
to	DT
wrest	DT
a	DT
hefty	JJ
slice	NN
of	IN
business	NN
away	RB
from	IN
IBM	DT
,	,
the	DT
longtime	DT
leader	NN
in	IN
mainframes	DT
.	.
	
``	``
We	DT
believe	VBP
they	DT
could	MD
siphon	DT
perhaps	RB
two	CD
to	DT
three	CD
billion	CD
dollars	NNS
from	IN
IBM	DT
''	''
over	IN
the	DT
next	JJ
few	JJ
years	NNS
,	,
said	VBN
George	NNP
Weiss	NNP
,	,
an	DT
analyst	NN
at	IN
the	DT
Gartner	DT
group	NN
.	.
	
That	IN
will	MD
spur	DT
Tandem	DT
's	VBZ
growth	NN
.	.
	
``	``
I	DT
'd	MD
be	DT
disappointed	DT
if	IN
the	DT
company	NN
grew	VBD
by	IN
less	RBR
than	IN
20	CD
%	%
next	JJ
year	NN
,	,
''	''
said	VBN
John	NNP
Levinson	DT
,	,
an	DT
analyst	NN
at	IN
Goldman	NNP
,	,
Sachs	NNP
&	&
Co	NNP
.	.
	
IBM	DT
is	VBZ
expected	VBN
to	DT
respond	DT
to	DT
Tandem	DT
's	VBZ
Cyclone	DT
by	IN
discounting	DT
its	DT
own	JJ
mainframes	DT
,	,
which	DT
analysts	NNS
say	VBP
are	VBP
roughly	RB
three	CD
times	NNS
the	DT
price	NN
of	IN
a	DT
comparable	JJ
system	NN
from	IN
Tandem	DT
.	.
	
``	``
Obviously	DT
IBM	DT
can	MD
give	VBP
bigger	JJR
discounts	DT
to	DT
users	DT
immediately	RB
,	,
''	''
said	VBN
Mr.	DT
Weiss	NNP
.	.
	
But	CC
Mr.	DT
Treybig	DT
questions	NNS
whether	IN
that	WDT
will	MD
be	DT
enough	JJ
to	DT
stop	DT
Tandem	DT
's	VBZ
first	JJ
mainframe	DT
from	IN
taking	VBG
on	IN
some	DT
of	IN
the	DT
functions	DT
that	WDT
large	JJ
organizations	NNS
previously	RB
sought	VBD
from	IN
Big	NNP
Blue	DT
's	VBZ
machines	NNS
.	.
	
``	``
The	NNP
answer	DT
is	VBZ
n't	RB
price	NN
reductions	DT
,	,
but	CC
new	JJ
systems	NNS
,	,
''	''
he	DT
said	VBN
.	.
	
Nevertheless	RB
,	,
Tandem	DT
faces	VBZ
a	DT
variety	NN
of	IN
challenges	DT
,	,
the	DT
biggest	JJS
being	VBG
that	WDT
customers	NNS
generally	RB
view	NN
the	DT
company	NN
's	VBZ
computers	NNS
as	IN
complementary	DT
to	DT
IBM	DT
's	VBZ
mainframes	DT
.	.
	
Even	RB
Mr.	DT
Treybig	DT
is	VBZ
reluctant	DT
to	DT
abandon	DT
this	DT
notion	NN
,	,
insisting	VBG
that	WDT
Tandem	DT
's	VBZ
new	JJ
machines	NNS
are	VBP
n't	RB
replacements	DT
for	IN
IBM	DT
's	VBZ
mainframes	DT
.	.
	
``	``
We	DT
're	VBP
after	IN
a	DT
little	JJ
bigger	JJR
niche	NN
,	,
''	''
he	DT
said	VBN
.	.
	
Do	DT
n't	RB
jump	NN
yet	RB
.	.
	
The	NNP
stock	NN
market	NN
's	VBZ
swoon	DT
may	MD
turn	NN
out	IN
to	DT
be	DT
good	JJ
news	NN
for	IN
the	DT
economy	NN
.	.
	
In	IN
one	CD
wild	DT
hour	NN
of	IN
trading	NN
,	,
the	DT
market	NN
managed	VBD
to	DT
accomplish	DT
what	WP
the	DT
Bush	NNP
administration	NN
has	VBZ
been	VBN
trying	VBG
to	DT
do	VBP
,	,
unsuccessfully	DT
,	,
for	IN
weeks	NNS
.	.
	
It	PRP
is	VBZ
forcing	DT
the	DT
Federal	NNP
Reserve	NNP
to	DT
ease	DT
its	DT
grip	DT
on	IN
credit	NN
and	CC
it	DT
took	VBD
the	DT
wind	DT
out	IN
of	IN
a	DT
previously	RB
irrepressible	DT
dollar	NN
.	.
	
The	NNP
resulting	VBG
decline	NN
in	IN
interest	NN
rates	NNS
and	CC
the	DT
value	NN
of	IN
the	DT
dollar	NN
could	MD
reinvigorate	DT
American	JJ
business	NN
--	--
indeed	RB
,	,
the	DT
entire	JJ
economy	NN
.	.
	
This	DT
may	MD
sound	DT
strangely	DT
optimistic	JJ
.	.
	
After	IN
all	RB
,	,
until	IN
a	DT
few	JJ
years	NNS
ago	IN
,	,
the	DT
stock	NN
market	NN
was	VBD
viewed	VBN
as	IN
a	DT
barometer	DT
of	IN
the	DT
national	JJ
economy	NN
.	.
	
When	DT
it	DT
went	VBD
down	IN
,	,
by	IN
all	RB
tradition	NN
,	,
the	DT
economy	NN
followed	VBN
.	.
	
That	IN
has	VBZ
changed	VBN
,	,
partly	RB
because	IN
the	DT
two	CD
years	NNS
following	VBG
the	DT
worst	JJS
stock-market	NN
plunge	NN
in	IN
history	DT
have	VBP
been	VBN
reasonably	RB
comfortable	DT
.	.
	
The	NNP
1987	CD
crash	NN
was	VBD
``	``
a	DT
false	JJ
alarm	DT
however	RB
you	DT
view	NN
it	DT
,	,
''	''
says	VBZ
University	NNP
of	IN
Chicago	NNP
economist	NN
Victor	DT
Zarnowitz	DT
.	.
	
The	NNP
market	NN
seems	VBZ
increasingly	RB
disconnected	DT
from	IN
the	DT
rest	NN
of	IN
the	DT
nation	NN
.	.
	
Its	DT
spasms	DT
ca	MD
n't	RB
be	DT
traced	DT
to	DT
fundamental	JJ
business	NN
conditions	NNS
,	,
nor	CC
do	VBP
they	DT
appear	VBP
to	DT
presage	DT
major	JJ
shifts	NNS
in	IN
the	DT
economy	NN
.	.
	
``	``
The	NNP
market	NN
today	NN
has	VBZ
a	DT
life	NN
of	IN
its	DT
own	JJ
,	,
''	''
John	NNP
Akers	DT
,	,
chairman	NN
of	IN
International	NNP
Business	NNP
Machines	DT
Corp.	DT
,	,
said	VBN
Saturday	DT
.	.
	
``	``
There	DT
's	VBZ
nothing	NN
rational	DT
about	IN
this	DT
kind	NN
of	IN
action	NN
.	.
''	''
	
Of	IN
course	NN
,	,
the	DT
health	NN
of	IN
the	DT
economy	NN
will	MD
be	DT
threatened	VBD
if	IN
the	DT
market	NN
continues	VBZ
to	DT
dive	NN
this	DT
week	NN
.	.
	
Sharply	DT
falling	VBG
stock	NN
prices	NNS
do	VBP
reduce	DT
consumer	NN
wealth	NN
,	,
damage	NN
business	NN
confidence	NN
and	CC
discourage	DT
the	DT
foreign	JJ
investors	NNS
upon	IN
whom	WP
the	DT
U.S.	DT
now	RB
relies	DT
for	IN
financial	JJ
sustenance	DT
.	.
	
The	NNP
financial-services	DT
industry	NN
was	VBD
battered	VBN
by	IN
the	DT
1987	CD
crash	NN
.	.
	
What	WP
's	VBZ
more	RBR
,	,
although	IN
the	DT
stock	NN
market	NN
is	VBZ
far	JJ
less	RBR
overvalued	VBN
today	NN
than	IN
two	CD
years	NNS
ago	IN
,	,
the	DT
U.S.	DT
economy	NN
is	VBZ
weaker	DT
.	.
	
Growth	DT
is	VBZ
slower	JJR
.	.
	
Profits	DT
are	VBP
softer	DT
.	.
	
Debt	DT
burdens	DT
are	VBP
heavier	DT
.	.
	
But	CC
if	IN
the	DT
stock	NN
market	NN
does	VBZ
n't	RB
continue	DT
to	DT
plummet	VBP
,	,
the	DT
beneficial	DT
effects	NNS
of	IN
lower	JJR
interest	NN
rates	NNS
and	CC
a	DT
lower	JJR
dollar	NN
may	MD
well	RB
dominate	DT
.	.
	
The	NNP
Fed	NNP
,	,
which	DT
until	IN
Friday	NNP
had	VBN
been	VBN
resisting	DT
moves	NNS
to	DT
ease	DT
credit	NN
,	,
is	VBZ
now	RB
poised	VBN
to	DT
pour	DT
money	NN
into	IN
the	DT
economy	NN
if	IN
needed	VBN
to	DT
soothe	DT
the	DT
markets	NNS
.	.
	
Fed	NNP
officials	NNS
may	MD
protest	DT
that	WDT
this	DT
does	VBZ
n't	RB
necessarily	RB
mean	DT
a	DT
fundamental	JJ
change	NN
in	IN
their	DT
interest-rate	DT
policies	NNS
.	.
	
But	CC
the	DT
experience	NN
of	IN
the	DT
1987	CD
crash	NN
suggests	VBZ
the	DT
Fed	NNP
is	VBZ
likely	JJ
to	DT
bring	DT
down	IN
short-term	JJ
interest	NN
rates	NNS
in	IN
its	DT
effort	NN
to	DT
calm	DT
markets	NNS
.	.
	
Anticipating	DT
the	DT
Fed	NNP
's	VBZ
move	NN
,	,
money	NN
traders	NNS
lowered	DT
a	DT
key	NN
interest	NN
rate	NN
known	VBN
as	IN
the	DT
Federal	NNP
Funds	DT
rate	NN
to	DT
8.625	DT
%	%
late	JJ
Friday	NNP
,	,
down	IN
from	IN
8.820	DT
%	%
the	DT
day	NN
before	IN
.	.
	
Tiny	DT
movements	DT
in	IN
the	DT
rate	NN
,	,
which	DT
is	VBZ
what	WP
banks	NNS
charge	NN
each	DT
other	JJ
for	IN
overnight	DT
loans	NNS
,	,
are	VBP
usually	RB
among	IN
the	DT
few	JJ
visible	DT
tracks	VBZ
that	WDT
the	DT
Fed	NNP
leaves	DT
on	IN
the	DT
monetary	DT
markets	NNS
.	.
	
The	NNP
dollar	NN
also	RB
began	VBD
to	DT
decline	NN
Friday	NNP
as	IN
the	DT
stock	NN
market	NN
's	VBZ
plunge	NN
caused	VBN
some	DT
investors	NNS
to	DT
reassess	DT
their	DT
desire	NN
to	DT
invest	DT
in	IN
the	DT
U.S.	DT
.	.
	
Treasury	NNP
officials	NNS
have	VBP
been	VBN
arguing	VBG
for	IN
months	NNS
that	WDT
the	DT
dollar	NN
's	VBZ
strength	NN
was	VBD
out	IN
of	IN
whack	DT
with	IN
economic	JJ
fundamentals	DT
,	,
threatening	VBG
to	DT
extinguish	DT
the	DT
export	DT
boom	NN
that	WDT
has	VBZ
sustained	VBN
manufacturers	NNS
for	IN
several	JJ
years	NNS
.	.
	
The	NNP
market	NN
drop	NN
has	VBZ
now	RB
apparently	RB
convinced	DT
foreign	JJ
investors	NNS
that	WDT
the	DT
Treasury	NNP
was	VBD
right	NN
about	IN
the	DT
overpriced	DT
dollar	NN
.	.
	
A	DT
modest	JJ
drop	NN
in	IN
the	DT
dollar	NN
--	--
only	RB
a	DT
modest	JJ
one	CD
,	,
mind	NN
you	DT
--	--
would	MD
be	DT
welcomed	DT
by	IN
the	DT
U.S.	DT
.	.
	
That	IN
was	VBD
n't	RB
the	DT
case	NN
in	IN
1987	CD
,	,
when	DT
the	DT
dollar	NN
was	VBD
so	IN
weak	JJ
that	WDT
some	DT
economists	NNS
and	CC
government	NN
officials	NNS
seriously	DT
worried	VBN
that	WDT
it	DT
might	MD
collapse	NN
,	,
producing	VBG
panic	NN
among	IN
foreign	JJ
investors	NNS
and	CC
diminishing	DT
the	DT
flow	NN
of	IN
foreign	JJ
capital	NN
to	DT
the	DT
U.S.	DT
.	.
	
Another	DT
big	JJ
difference	NN
between	IN
1987	CD
and	CC
1989	CD
is	VBZ
n't	RB
so	IN
comforting	VBG
.	.
	
In	IN
the	DT
third	JJ
quarter	NN
of	IN
1987	CD
,	,
the	DT
economy	NN
spurted	DT
at	IN
an	DT
inflation-adjusted	JJ
annual	JJ
rate	NN
of	IN
5.3	CD
%	%
.	.
	
The	NNP
consensus	NN
among	IN
economists	NNS
is	VBZ
that	WDT
it	DT
grew	VBD
a	DT
much	JJ
more	RBR
sluggish	DT
2.3	CD
%	%
in	IN
the	DT
third	JJ
quarter	NN
of	IN
1989	CD
,	,
which	DT
ended	VBD
two	CD
weeks	NNS
ago	IN
.	.
	
The	NNP
plunge	NN
in	IN
stock	NN
prices	NNS
``	``
is	VBZ
happening	VBG
at	IN
a	DT
time	NN
when	DT
the	DT
economy	NN
has	VBZ
already	RB
slowed	DT
down	IN
,	,
''	''
says	VBZ
economist	NN
Lawrence	DT
Chimerine	DT
of	IN
WEFA	DT
Group	NNP
,	,
a	DT
Bala	DT
Cynwyd	DT
,	,
Pa.	DT
,	,
forecasting	DT
company	NN
.	.
	
``	``
A	DT
lot	NN
of	IN
pent-up	DT
demand	NN
is	VBZ
gone	VBN
.	.
''	''
	
Consumer	DT
spending	NN
did	VBD
drop	NN
in	IN
the	DT
months	NNS
following	VBG
Black	NNP
Monday	NNP
1987	CD
--	--
``	``
but	CC
only	RB
slightly	RB
and	CC
for	IN
a	DT
short	JJ
period	NN
of	IN
time	NN
,	,
''	''
recalls	VBZ
Mr.	DT
Zarnowitz	DT
,	,
a	DT
longtime	DT
student	NN
of	IN
business	NN
cycles	NNS
.	.
	
``	``
That	IN
was	VBD
offset	DT
by	IN
strength	NN
elsewhere	DT
.	.
	
{	{
The	NNP
effects	NNS
}	}
were	VBD
much	JJ
less	RBR
severe	JJ
and	CC
less	RBR
prolonged	DT
than	IN
some	DT
had	VBN
feared	VBD
or	CC
expected	VBN
.	.
	
''	''
Today	NN
,	,
he	DT
frets	DT
,	,
exports	NNS
and	CC
business	NN
investment	NN
spending	NN
may	MD
be	DT
insufficient	DT
to	DT
pick	DT
up	IN
the	DT
slack	DT
if	IN
stock	NN
prices	NNS
sink	DT
this	DT
week	NN
and	CC
if	IN
consumers	NNS
retrench	DT
in	IN
reaction	NN
.	.
	
What	WP
's	VBZ
more	RBR
,	,
the	DT
corporate	JJ
borrowing	VBG
binge	DT
has	VBZ
n't	RB
abated	DT
in	IN
the	DT
past	NN
two	CD
years	NNS
.	.
	
``	``
We	DT
've	VBP
had	VBN
two	CD
more	RBR
years	NNS
of	IN
significant	JJ
accumulation	DT
of	IN
debt	NN
...	...
just	RB
at	IN
the	DT
time	NN
when	DT
earnings	NNS
are	VBP
being	VBG
squeezed	DT
,	,
''	''
Mr.	DT
Chimerine	DT
notes	NNS
.	.
	
The	NNP
more	RBR
a	DT
company	NN
relies	DT
on	IN
borrowed	VBN
money	NN
,	,
the	DT
greater	JJR
its	DT
sensitivity	DT
to	DT
an	DT
economic	JJ
slowdown	NN
.	.
	
A	DT
company	NN
with	IN
a	DT
strong	JJ
balance	NN
sheet	DT
can	MD
withstand	DT
an	DT
unanticipated	DT
storm	DT
;	;
a	DT
highly	RB
leveraged	JJ
company	NN
may	MD
end	NN
up	IN
in	IN
bankruptcy	NN
court	NN
.	.
	
The	NNP
Fed	NNP
,	,
of	IN
course	NN
,	,
knows	DT
that	WDT
very	RB
well	RB
--	--
hence	DT
its	DT
readiness	DT
to	DT
pump	DT
credit	NN
into	IN
the	DT
economy	NN
this	DT
morning	NN
.	.
	
But	CC
,	,
in	IN
the	DT
process	NN
,	,
the	DT
Fed	NNP
risks	DT
reigniting	DT
inflation	NN
.	.
	
Even	RB
before	IN
Friday	NNP
's	VBZ
events	NNS
,	,
Harvard	DT
University	NNP
economist	NN
Benjamin	DT
Friedman	NNP
was	VBD
arguing	VBG
that	WDT
the	DT
Fed	NNP
wo	MD
n't	RB
be	DT
able	JJ
to	DT
live	DT
up	IN
to	DT
its	DT
tough	JJ
words	NNS
on	IN
eliminating	DT
inflation	NN
because	IN
of	IN
its	DT
responsibility	DT
to	DT
protect	DT
fragile	DT
financial	JJ
markets	NNS
,	,
banks	NNS
and	CC
highly	RB
leveraged	JJ
corporations	NNS
.	.
	
The	NNP
biggest	JJS
threat	NN
on	IN
the	DT
economic	JJ
horizon	DT
right	NN
now	RB
is	VBZ
n't	RB
recession	NN
,	,
he	DT
reasons	NNS
;	;
it	DT
's	VBZ
an	DT
outbreak	DT
of	IN
uncontrolled	DT
inflation	NN
.	.
	
In	IN
the	DT
end	NN
,	,
the	DT
1987	CD
collapse	NN
suggested	VBN
,	,
the	DT
economy	NN
does	VBZ
n't	RB
move	NN
in	IN
lockstep	DT
with	IN
stock	NN
prices	NNS
.	.
	
The	NNP
economy	NN
does	VBZ
,	,
however	RB
,	,
depend	VBP
on	IN
the	DT
confidence	NN
of	IN
businesses	NNS
,	,
consumers	NNS
and	CC
foreign	JJ
investors	NNS
.	.
	
A	DT
panic	NN
on	IN
Wall	NNP
Street	NNP
does	VBZ
n't	RB
exactly	RB
inspire	DT
confidence	NN
.	.
	
Surveys	DT
suggested	VBN
that	WDT
consumer	NN
confidence	NN
was	VBD
high	JJ
before	IN
Friday	NNP
.	.
	
A	DT
190-point	JJ
drop	NN
is	VBZ
n't	RB
likely	JJ
to	DT
make	VBP
much	JJ
of	IN
a	DT
dent	DT
;	;
multiply	DT
that	WDT
a	DT
few	JJ
times	NNS
over	IN
,	,
though	RB
,	,
and	CC
it	DT
will	MD
.	.
	
If	IN
the	DT
reactions	DT
of	IN
executives	NNS
gathered	VBN
Saturday	DT
at	IN
Hot	NNP
Springs	NNPS
,	,
Va.	DT
,	,
for	IN
the	DT
Business	NNP
Council	NNP
meetings	DT
are	VBP
typical	DT
,	,
business	NN
leaders	NNS
were	VBD
n't	RB
overly	DT
rattled	DT
by	IN
Friday	NNP
's	VBZ
decline	NN
.	.
	
And	CC
if	IN
foreign	JJ
investors	NNS
become	VBN
a	DT
tad	DT
more	RBR
cautious	DT
--	--
well	RB
,	,
the	DT
dollar	NN
's	VBZ
recent	JJ
strength	NN
suggests	VBZ
that	WDT
the	DT
U.S.	DT
can	MD
stand	DT
it	DT
.	.
	
On	IN
the	DT
bottom	NN
line	NN
,	,
the	DT
most	RBS
comforting	VBG
fact	NN
for	IN
the	DT
economic	JJ
outlook	NN
is	VBZ
that	WDT
we	DT
've	VBP
been	VBN
through	IN
this	DT
before	IN
.	.
	
Two	CD
years	NNS
ago	IN
,	,
about	IN
the	DT
only	RB
point	NN
of	IN
comparison	DT
was	VBD
the	DT
1929	CD
crash	NN
and	CC
the	DT
subsequent	JJ
Depression	NN
.	.
	
The	NNP
doomsayers	DT
had	VBN
a	DT
receptive	DT
audience	DT
.	.
	
The	NNP
prosperity	DT
that	WDT
followed	VBN
Black	NNP
Monday	NNP
permits	NNS
a	DT
more	RBR
optimistic	JJ
view	NN
today	NN
.	.
	
At	IN
the	DT
very	RB
least	JJS
,	,
the	DT
establishment	NN
here	RB
is	VBZ
taking	VBG
comfort	DT
from	IN
the	DT
nation	NN
's	VBZ
success	NN
in	IN
handling	DT
the	DT
last	JJ
go-around	DT
.	.
	
As	IN
Sen.	DT
Lloyd	NNP
Bentsen	DT
(	(
D.	DT
,	,
Texas	NNP
)	)
observed	DT
yesterday	NN
,	,
``	``
The	NNP
Fed	NNP
avoided	DT
a	DT
meltdown	NN
last	JJ
time	NN
.	.
	
They	DT
are	VBP
more	RBR
sophisticated	JJ
this	DT
time	NN
.	.
	
The	NNP
chemical	DT
industry	NN
is	VBZ
expected	VBN
to	DT
report	NN
that	WDT
profits	NNS
eroded	DT
in	IN
the	DT
third	JJ
quarter	NN
because	IN
of	IN
skidding	DT
prices	NNS
in	IN
the	DT
commodity	DT
end	NN
of	IN
the	DT
business	NN
.	.
	
Producers	DT
of	IN
commodity	DT
chemicals	DT
,	,
the	DT
basic	JJ
chemicals	DT
produced	VBN
in	IN
huge	JJ
volumes	NNS
for	IN
other	JJ
manufacturers	NNS
,	,
have	VBP
seen	VBN
sharp	JJ
inventory	DT
cutting	DT
by	IN
buyers	NNS
.	.
	
Once	RB
the	DT
chief	NN
beneficiaries	DT
of	IN
the	DT
industry	NN
's	VBZ
now	RB
fading	DT
boom	NN
,	,
these	DT
producers	NNS
also	RB
will	MD
be	DT
reporting	VBG
against	IN
exceptionally	DT
strong	JJ
performances	DT
in	IN
the	DT
1988	CD
third	JJ
quarter	NN
.	.
	
``	``
For	IN
some	DT
of	IN
these	DT
companies	NNS
,	,
this	DT
will	MD
be	DT
the	DT
first	JJ
quarter	NN
with	IN
year-to-year	DT
negative	JJ
comparisons	DT
,	,
''	''
says	VBZ
Leonard	NNP
Bogner	DT
,	,
a	DT
chemical	DT
industry	NN
analyst	NN
at	IN
Prudential	DT
Bache	DT
Research	NNP
.	.
	
``	``
This	DT
could	MD
be	DT
the	DT
first	JJ
of	IN
five	CD
or	CC
six	CD
down	IN
quarters	DT
.	.
''	''
	
Perhaps	RB
most	RBS
prominent	JJ
,	,
Dow	NNP
Chemical	DT
Co.	DT
,	,
which	DT
as	IN
of	IN
midyear	DT
had	VBN
racked	DT
up	IN
eight	CD
consecutive	JJ
record	NN
quarters	DT
,	,
is	VBZ
expected	VBN
to	DT
report	NN
that	WDT
profit	NN
decreased	DT
in	IN
the	DT
latest	JJS
quarter	NN
from	IN
a	DT
year	NN
earlier	JJR
,	,
if	IN
only	RB
by	IN
a	DT
shade	DT
.	.
	
Though	IN
Dow	NNP
has	VBZ
aggressively	DT
diversified	JJ
into	IN
specialty	NN
chemicals	DT
and	CC
pharmaceuticals	DT
,	,
the	DT
company	NN
still	RB
has	VBZ
a	DT
big	JJ
stake	NN
in	IN
polyethylene	DT
,	,
which	DT
is	VBZ
used	VBN
in	IN
packaging	DT
and	CC
housewares	DT
.	.
	
Analysts	NNS
'	'
third-quarter	NN
estimates	NNS
for	IN
the	DT
Midland	DT
,	,
Mich.	DT
,	,
company	NN
are	VBP
between	IN
$	$
3.20	DT
a	DT
share	NN
and	CC
$	$
3.30	DT
a	DT
share	NN
,	,
compared	VBN
with	IN
$	$
3.36	DT
a	DT
year	NN
ago	IN
,	,
when	DT
profit	NN
was	VBD
$	$
632	DT
million	CD
on	IN
sales	NNS
of	IN
$	$
4.15	DT
billion	CD
.	.
	
A	DT
Dow	NNP
spokeswoman	DT
declined	VBD
to	DT
comment	NN
on	IN
the	DT
estimates	NNS
.	.
	
At	IN
the	DT
investment	NN
firm	NN
of	IN
Smith	NNP
Barney	NNP
,	,
Harris	NNP
Upham	NNP
&	&
Co.	DT
,	,
the	DT
commodity-chemical	DT
segment	DT
is	VBZ
seen	VBN
pulling	DT
down	IN
overall	JJ
profit	NN
for	IN
20	CD
companies	NNS
representative	NN
of	IN
the	DT
whole	JJ
industry	NN
by	IN
8	CD
%	%
to	DT
10	CD
%	%
.	.
	
``	``
You	DT
will	MD
find	DT
the	DT
commodities	NNS
off	IN
more	RBR
than	IN
the	DT
others	NNS
and	CC
the	DT
diversified	JJ
companies	NNS
about	IN
even	RB
or	CC
slightly	RB
better	JJR
,	,
''	''
says	VBZ
James	NNP
Wilbur	DT
,	,
a	DT
Smith	NNP
Barney	NNP
analyst	NN
.	.
	
First	NNP
Boston	NNP
Corp.	DT
projects	NNS
that	WDT
10	CD
of	IN
the	DT
15	CD
companies	NNS
it	DT
follows	VBZ
will	MD
report	NN
lower	JJR
profit	NN
.	.
	
Most	RBS
of	IN
the	DT
10	CD
have	VBP
big	JJ
commodity-chemical	DT
operations	NNS
.	.
	
Still	RB
,	,
some	DT
industry	NN
giants	DT
are	VBP
expected	VBN
to	DT
report	NN
continuing	VBG
gains	NNS
,	,
largely	RB
because	IN
so	IN
much	JJ
of	IN
their	DT
business	NN
is	VBZ
outside	JJ
commodity	DT
chemicals	DT
.	.
	
Du	DT
Pont	DT
Co.	DT
is	VBZ
thought	VBN
to	DT
have	VBP
had	VBN
steady	JJ
profit	NN
growth	NN
in	IN
white	JJ
pigments	DT
,	,
fibers	DT
and	CC
polymers	DT
.	.
	
Moreover	RB
,	,
the	DT
Wilmington	DT
,	,
Del.	DT
,	,
company	NN
is	VBZ
helped	VBD
when	DT
prices	NNS
weaken	DT
on	IN
the	DT
commodity	DT
chemicals	DT
it	DT
buys	DT
for	IN
its	DT
own	JJ
production	NN
needs	VBZ
,	,
such	JJ
as	IN
ethylene	DT
.	.
	
Analysts	NNS
are	VBP
divided	VBN
over	IN
whether	IN
Du	DT
Pont	DT
will	MD
report	NN
much	JJ
of	IN
a	DT
gain	NN
in	IN
the	DT
latest	JJS
quarter	NN
from	IN
its	DT
Conoco	DT
Inc.	DT
oil	DT
company	NN
.	.
	
The	NNP
estimates	NNS
for	IN
Du	DT
Pont	DT
range	NN
from	IN
$	$
2.25	CD
to	DT
$	$
2.45	DT
a	DT
share	NN
.	.
	
In	IN
the	DT
1988	CD
third	JJ
quarter	NN
,	,
the	DT
company	NN
earned	VBN
$	$
461	DT
million	CD
,	,
or	CC
$	$
1.91	DT
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
7.99	DT
billion	CD
.	.
	
Du	DT
Pont	DT
declined	VBD
to	DT
comment	NN
.	.
	
Monsanto	DT
Co.	DT
,	,
too	RB
,	,
is	VBZ
expected	VBN
to	DT
continue	DT
reporting	VBG
higher	JJR
profit	NN
,	,
even	RB
though	RB
its	DT
sales	NNS
of	IN
crop	DT
chemicals	DT
were	VBD
hurt	VBN
in	IN
the	DT
latest	JJS
quarter	NN
by	IN
drought	DT
in	IN
northern	DT
Europe	NNP
and	CC
the	DT
western	DT
U.S.	DT
.	.
	
The	NNP
St.	DT
Louis-based	DT
company	NN
is	VBZ
expected	VBN
to	DT
report	NN
again	RB
that	WDT
losses	NNS
in	IN
its	DT
G.D.	DT
Searle	DT
&	&
Co.	DT
pharmaceutical	DT
business	NN
are	VBP
narrowing	VBG
.	.
	
Searle	DT
continued	VBN
to	DT
operate	DT
in	IN
the	DT
red	JJ
through	IN
the	DT
first	JJ
half	DT
of	IN
the	DT
year	NN
,	,
but	CC
Monsanto	DT
has	VBZ
said	VBN
it	DT
expects	VBZ
Searle	DT
to	DT
post	NN
a	DT
profit	NN
for	IN
all	RB
of	IN
1989	CD
.	.
	
Most	RBS
estimates	NNS
for	IN
Monsanto	DT
run	VBN
between	IN
$	$
1.70	DT
and	CC
$	$
2	CD
a	DT
share	NN
.	.
	
A	DT
year	NN
ago	IN
,	,
the	DT
company	NN
posted	VBN
third-quarter	NN
profit	NN
of	IN
$	$
116	DT
million	CD
,	,
or	CC
$	$
1.67	DT
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
2.02	DT
billion	CD
.	.
	
Monsanto	DT
declined	VBD
to	DT
comment	NN
.	.
	
But	CC
the	DT
commodity-chemical	DT
producers	NNS
are	VBP
caught	VBN
on	IN
the	DT
downside	DT
of	IN
a	DT
pricing	DT
cycle	NN
.	.
	
By	IN
some	DT
accounts	NNS
on	IN
Wall	NNP
Street	NNP
and	CC
in	IN
the	DT
industry	NN
,	,
the	DT
inventory	DT
reductions	DT
are	VBP
near	IN
an	DT
end	NN
,	,
which	DT
may	MD
presage	DT
firmer	DT
demand	NN
.	.
	
But	CC
doubters	DT
say	VBP
growing	VBG
production	NN
capacity	NN
could	MD
keep	VBP
pressure	NN
on	IN
prices	NNS
into	IN
the	DT
early	JJ
1990s	CD
.	.
	
In	IN
the	DT
latest	JJS
quarter	NN
,	,
at	IN
least	JJS
,	,
profit	NN
is	VBZ
expected	VBN
to	DT
fall	NN
sharply	RB
.	.
	
For	IN
Himont	DT
Inc.	DT
,	,
``	``
how	DT
far	JJ
down	IN
it	DT
is	VBZ
,	,
we	DT
do	VBP
n't	RB
know	VBP
,	,
''	''
says	VBZ
Leslie	DT
Ravitz	DT
at	IN
Salomon	DT
Brothers	DT
.	.
	
The	NNP
projections	NNS
are	VBP
in	IN
the	DT
neighborhood	DT
of	IN
50	CD
cents	NNS
a	DT
share	NN
to	DT
75	CD
cents	NNS
,	,
compared	VBN
with	IN
a	DT
restated	DT
$	$
1.65	DT
a	DT
share	NN
a	DT
year	NN
earlier	JJR
,	,
when	DT
profit	NN
was	VBD
$	$
107.8	DT
million	CD
on	IN
sales	NNS
of	IN
$	$
435.5	DT
million	CD
.	.
	
Himont	DT
faces	VBZ
lower	JJR
prices	NNS
for	IN
its	DT
mainstay	DT
product	NN
,	,
polypropylene	DT
,	,
while	IN
it	DT
goes	VBZ
forward	JJ
with	IN
a	DT
heavy	JJ
capital	NN
investment	NN
program	NN
to	DT
bolster	DT
its	DT
raw	DT
material	DT
supply	NN
and	CC
develop	DT
new	JJ
uses	NNS
for	IN
polypropylene	DT
,	,
whose	DT
markets	NNS
include	VBP
the	DT
packaging	DT
and	CC
automobile	DT
industries	NNS
.	.
	
The	NNP
company	NN
,	,
based	VBN
in	IN
Wilmington	DT
,	,
Del.	DT
,	,
is	VBZ
81%-owned	DT
by	IN
Montedison	DT
S.p	NNP
.	.
A.	DT
,	,
Milan	DT
,	,
which	DT
has	VBZ
an	DT
offer	NN
outstanding	JJ
for	IN
the	DT
Himont	DT
shares	NNS
it	DT
does	VBZ
n't	RB
already	RB
own	JJ
.	.
	
At	IN
Quantum	DT
Chemical	DT
Corp.	DT
,	,
New	NNP
York	NNP
,	,
the	DT
trouble	NN
is	VBZ
lower	JJR
prices	NNS
for	IN
polyethylene	DT
,	,
higher	JJR
debt	NN
costs	NNS
and	CC
the	DT
idling	DT
of	IN
an	DT
important	JJ
plant	NN
due	JJ
to	DT
an	DT
explosion	NN
.	.
	
Some	DT
analysts	NNS
hedge	NN
their	DT
estimates	NNS
for	IN
Quantum	DT
,	,
because	IN
it	DT
is	VBZ
n't	RB
known	VBN
when	DT
the	DT
company	NN
will	MD
book	NN
certain	JJ
one-time	JJ
charges	VBZ
.	.
	
But	CC
the	DT
estimates	NNS
range	NN
from	IN
break-even	DT
to	DT
35	CD
cents	NNS
a	DT
share	NN
.	.
	
In	IN
the	DT
1988	CD
third	JJ
quarter	NN
,	,
Quantum	DT
earned	VBN
$	$
99.8	DT
million	CD
,	,
or	CC
$	$
3.92	DT
a	DT
share	NN
,	,
on	IN
sales	NNS
of	IN
$	$
724.4	DT
million	CD
.	.
	
Another	DT
big	JJ
polyethylene	DT
producer	NN
,	,
Union	NNP
Carbide	DT
Corp.	DT
,	,
is	VBZ
expected	VBN
to	DT
post	NN
profit	NN
of	IN
between	IN
$	$
1	CD
a	DT
share	NN
and	CC
$	$
1.25	DT
,	,
compared	VBN
with	IN
$	$
1.56	DT
a	DT
share	NN
a	DT
year	NN
earlier	JJR
,	,
when	DT
the	DT
company	NN
earned	VBN
$	$
213	DT
million	CD
on	IN
sales	NNS
of	IN
$	$
2.11	DT
billion	CD
.	.
	
Himont	DT
,	,
Quantum	DT
and	CC
Union	NNP
Carbide	DT
all	RB
declined	VBD
to	DT
comment	NN
.	.
	
The	NNP
following	VBG
were	VBD
among	IN
Friday	NNP
's	VBZ
offerings	DT
and	CC
pricings	DT
in	IN
the	DT
U.S.	DT
and	CC
non-U.S.	DT
capital	NN
markets	NNS
,	,
with	IN
terms	NNS
and	CC
syndicate	NN
manager	NN
,	,
as	IN
compiled	DT
by	IN
Dow	NNP
Jones	NNP
Capital	NNP
Markets	NNPS
Report	NNP
:	:
	
Dow	NNP
Chemical	DT
Co.	DT
--	--
	
$	$
150	CD
million	CD
of	IN
8.55	DT
%	%
senior	JJ
notes	NNS
due	JJ
Oct.	DT
15	CD
,	,
2009	DT
,	,
priced	VBN
at	IN
par	DT
.	.
	
The	NNP
issue	NN
,	,
which	DT
is	VBZ
puttable	DT
back	VB
to	DT
the	DT
company	NN
at	IN
par	DT
on	IN
Oct.	DT
15	CD
,	,
1999	DT
,	,
was	VBD
priced	VBN
at	IN
a	DT
spread	VBD
of	IN
50	CD
basis	NN
points	NNS
above	IN
the	DT
Treasury	NNP
's	VBZ
10-year	JJ
note	DT
.	.
	
Rated	DT
single-A-1	DT
by	IN
Moody	NNP
's	VBZ
Investors	NNS
Service	NNP
Inc.	DT
and	CC
single-A	DT
by	IN
Standard	NNP
&	&
Poor	NNP
's	VBZ
Corp.	DT
,	,
the	DT
non-callable	DT
issue	NN
will	MD
be	DT
sold	VBN
through	IN
underwriters	DT
led	VBN
by	IN
Merrill	NNP
Lynch	NNP
Capital	NNP
Markets	NNPS
.	.
	
Centel	DT
Capital	NNP
Corp.	DT
--	--
	
$	$
150	CD
million	CD
of	IN
9	CD
%	%
debentures	DT
due	JJ
Oct.	DT
15	CD
,	,
2019	DT
,	,
priced	VBN
at	IN
99.943	DT
to	DT
yield	NN
9.008	DT
%	%
.	.
	
The	NNP
non-callable	DT
issue	NN
,	,
which	DT
can	MD
be	DT
put	VBN
back	VB
to	DT
the	DT
company	NN
in	IN
1999	DT
,	,
was	VBD
priced	VBN
at	IN
99	DT
basis	NN
points	NNS
above	IN
the	DT
Treasury	NNP
's	VBZ
10-year	JJ
note	DT
.	.
	
Rated	DT
Baa-1	DT
by	IN
Moody	NNP
's	VBZ
and	CC
triple-B-plus	DT
by	IN
S&P	NNP
,	,
the	DT
issue	NN
will	MD
be	DT
sold	VBN
through	IN
underwriters	DT
led	VBN
by	IN
Morgan	DT
Stanley	NNP
&	&
Co	NNP
.	.
	
Federal	NNP
Home	NNP
Loan	NNP
Mortgage	NNP
Corp.	DT
--	--
	
$	$
500	CD
million	CD
of	IN
Remic	DT
mortgage	NN
securities	NNS
offered	VBN
in	IN
13	CD
classes	NNS
by	IN
Prudential-Bache	DT
Securities	NNPS
Inc	NNP
.	.
	
The	NNP
offering	VBG
,	,
Series	DT
102	DT
,	,
backed	VBN
by	IN
Freddie	DT
Mac	DT
8	CD
1\/2	CD
%	%
securities	NNS
with	IN
a	DT
weighted	DT
average	NN
remaining	VBG
term	NN
to	DT
maturity	NN
of	IN
28.4	DT
years	NNS
,	,
was	VBD
priced	VBN
before	IN
the	DT
market	NN
's	VBZ
afternoon	NN
surge	NN
.	.
	
Among	IN
classes	NNS
for	IN
which	DT
details	NNS
were	VBD
available	JJ
,	,
yields	NNS
ranged	DT
from	IN
8.78	DT
%	%
,	,
or	CC
75	CD
basis	NN
points	NNS
over	IN
two-year	DT
Treasury	NNP
securities	NNS
,	,
to	DT
10.05	CD
%	%
,	,
or	CC
200	CD
basis	NN
points	NNS
over	IN
10-year	JJ
Treasurys	NNS
.	.
	
Federal	NNP
Home	NNP
Loan	NNP
Mortgage	NNP
Corp.	DT
--	--
	
$	$
300	CD
million	CD
of	IN
Remic	DT
mortgage	NN
securities	NNS
offered	VBN
by	IN
Citicorp	NNP
Securities	NNPS
Markets	NNPS
Inc	NNP
.	.
	
The	NNP
offering	VBG
,	,
Series	DT
101	DT
,	,
is	VBZ
backed	VBN
by	IN
Freddie	DT
Mac	DT
9	CD
1\/2	CD
%	%
securities	NNS
.	.
	
Pricing	DT
details	NNS
were	VBD
n't	RB
immediately	RB
available	JJ
.	.
	
Federal	NNP
Home	NNP
Loan	NNP
Mortgage	NNP
Corp.	DT
--	--
	
$	$
200	CD
million	CD
of	IN
stripped	VBN
mortgage	NN
securities	NNS
underwritten	DT
by	IN
BT	DT
Securities	NNPS
Corp	NNP
.	.
	
The	NNP
agency	NN
's	VBZ
first	JJ
strips	DT
issue	NN
,	,
collateralized	DT
by	IN
Freddie	DT
Mac	DT
8	CD
%	%
securities	NNS
pooled	DT
into	IN
a	DT
single	JJ
security	NN
called	VBN
a	DT
Giant	NNP
,	,
will	MD
be	DT
divided	VBN
into	IN
interest-only	DT
and	CC
principal-only	DT
securities	NNS
.	.
	
The	NNP
collateral	DT
is	VBZ
being	VBG
sold	VBN
by	IN
a	DT
thrift	NN
institution	DT
.	.
	
The	NNP
principal-only	DT
securities	NNS
will	MD
be	DT
repackaged	DT
by	IN
BT	DT
Securities	NNPS
into	IN
a	DT
Freddie	DT
Mac	DT
Remic	DT
,	,
Series	DT
103	CD
,	,
that	WDT
will	MD
have	VBP
six	CD
classes	NNS
.	.
	
The	NNP
interest-only	DT
securities	NNS
will	MD
be	DT
sold	VBN
separately	DT
by	IN
BT	DT
Securities	NNPS
.	.
	
The	NNP
principal-only	DT
securities	NNS
pay	NN
the	DT
principal	NN
from	IN
the	DT
underlying	VBG
Freddie	DT
Mac	DT
8	CD
%	%
securities	NNS
,	,
while	IN
the	DT
interest-only	DT
securities	NNS
pay	NN
only	RB
interest	NN
.	.
	
Freddie	DT
Mac	DT
said	VBN
the	DT
principal-only	DT
securities	NNS
were	VBD
priced	VBN
at	IN
58	DT
1\/4	CD
to	DT
yield	NN
8.45	DT
%	%
,	,
assuming	DT
an	DT
average	NN
life	NN
of	IN
eight	CD
years	NNS
and	CC
a	DT
prepayment	DT
of	IN
160	DT
%	%
of	IN
the	DT
PSA	DT
model	NN
.	.
	
The	NNP
interest-only	DT
securities	NNS
were	VBD
priced	VBN
at	IN
35	CD
1\/2	CD
to	DT
yield	NN
10.72	DT
%	%
.	.
	
There	DT
were	VBD
no	RB
major	JJ
Eurobond	DT
or	CC
foreign	JJ
bond	NN
offerings	DT
in	IN
Europe	NNP
Friday	NNP
.	.