consumers may want to move their telephones a little closer to the tv set 
 <unk> <unk> watching abc 's monday night football can now vote during <unk> for the greatest play in N years from among four or five <unk> <unk> 
 two weeks ago viewers of several nbc <unk> consumer segments started calling a N number for advice on various <unk> issues 
 and the new syndicated reality show hard copy records viewers ' opinions for possible airing on the next day 's show 
 interactive telephone technology has taken a new leap in <unk> and television programmers are racing to exploit the possibilities 
 eventually viewers may grow <unk> with the technology and <unk> the cost 
 but right now programmers are figuring that viewers who are busy dialing up a range of services may put down their <unk> control <unk> and stay <unk> 
 we 've been spending a lot of time in los angeles talking to tv production people says mike parks president of call interactive which supplied technology for both abc sports and nbc 's consumer minutes 
 with the competitiveness of the television market these days everyone is looking for a way to get viewers more excited 
 one of the leaders behind the expanded use of N numbers is call interactive a joint venture of giants american express co. and american telephone & telegraph co 
 formed in august the venture <unk> at&t 's newly expanded N service with N <unk> computers in american express 's omaha neb. service center 
 other long-distance carriers have also begun marketing enhanced N service and special consultants are <unk> up to exploit the new tool 
 blair entertainment a new york firm that advises tv stations and sells ads for them has just formed a subsidiary N blair to apply the technology to television 
 the use of N toll numbers has been expanding rapidly in recent years 
 for a while <unk> <unk> lines and services that <unk> children to dial and <unk> movie or music information earned the service a somewhat <unk> image but new legal restrictions are aimed at trimming excesses 
 the cost of a N call is set by the <unk> abc sports for example with the cheapest starting at N cents 
 billing is included in a caller 's regular phone bill 
 from the fee the local phone company and the long-distance carrier extract their costs to carry the call passing the rest of the money to the <unk> which must cover advertising and other costs 
 in recent months the technology has become more flexible and able to handle much more volume 
 before callers of N numbers would just listen and not talk or they 'd vote yes or no by calling one of two numbers 
 people in the phone business call this technology N <unk> 
 now callers are led through complex <unk> of choices to retrieve information they want and the hardware can process N calls in N seconds 
 up to now N numbers have mainly been used on local tv stations and cable channels 
 <unk> used one to give away the house that rock star jon <unk> <unk> grew up in 
 for several years turner broadcasting system 's cable news network has invited viewers to respond <unk> to <unk> issues should the u.s. military intervene in panama but even the hottest <unk> on <unk> <unk> only about N calls 
 the newest uses of the <unk> technology demonstrate the growing variety of applications 
 capital cities\/abc inc. cbs inc. and general electric co. 's national broadcasting co. unit are expected to announce soon a joint campaign to raise awareness about <unk> 
 the subject will be written into the <unk> of prime-time shows and viewers will be given a N number to call 
 callers will be sent educational booklets and the call 's modest cost will be an immediate method of raising money 
 other network applications have very different goals 
 abc sports was looking for ways to lift <unk> <unk> ratings for monday night football 
 kurt <unk> abc sports 's marketing director says that now tens of thousands of fans call its N number each week to vote for the best <unk> return <unk> <unk> etc 
 profit from the calls goes to charity but abc sports also uses the calls as a sales tool after <unk> callers for voting frank <unk> offers a football <unk> for $ N and N N of callers stay on the line to order it 
 jackets may be sold next 
 meanwhile nbc sports recently began scores plus a <unk> 24-hour N line providing a complex array of scores analysis and fan news 
 a spokesman said its purpose is to bolster the impression that nbc sports is always there for people 
 nbc 's <unk> consumer minutes have increased advertiser spending during the day the network 's weakest period 
 each <unk> matches a sponsor and a topic on <unk> unilever n.v. 's <unk> bros. sponsors tips on diet and exercise followed by a <unk> <unk> bros. commercial 
 viewers can call a N number for additional advice which will be tailored to their needs based on the numbers they <unk> press one if you 're pregnant etc 
 if the caller stays on the line and leaves a name and address for the sponsor coupons and a newsletter will be <unk> and the sponsor will be able to gather a list of desirable potential customers 
 <unk> <unk> an <unk> vice president says nbc has been able to charge premium rates for this ad time 
 she would n't say what the premium is but it 's believed to be about N N above regular <unk> rates 
 we were able to get advertisers to use their promotion budget for this because they get a chance to do <unk> says ms. <unk> 
 and we were able to attract some new advertisers because this is something new 
 mr. parks of call interactive says tv executives are considering the use of N numbers for talk shows game shows news and opinion surveys 
 experts are predicting a big influx of new shows in N when a service called automatic number information will become widely available 
 this service <unk> each caller 's phone number and it can be used to generate instant mailing lists 
 hard copy the new syndicated tabloid show from paramount pictures will use its N number for additional purposes that include research says executive producer mark b. von s. <unk> 
 for a piece on local heroes of world war ii we can ask people to leave the name and number of anyone they know who won a <unk> he says 
 that 'll save us time and get people involved 
 but mr. <unk> sees much bigger changes ahead 
 these are just baby steps toward real interactive video which i believe will be the biggest thing yet to affect television he says 
 although it would be costly to shoot multiple versions tv programmers could let audiences vote on different <unk> for a movie 
 fox broadcasting <unk> with this concept last year when viewers of married with children voted on whether al should say i love you to <unk> on <unk> 's day 
 someday viewers may also choose different <unk> of news coverage 
 a <unk> by phone could let you decide i 'm interested in just the beginning of story no. N and i want story no. N in <unk> mr. <unk> says 
 you 'll start to see shows where viewers program the program 
 integrated resources inc. the troubled financial-services company that has been trying to sell its core companies to restructure debt said talks with a potential buyer ended 
 integrated did n't identify the party or say why the talks failed 
 last week another potential buyer <unk> financial group which had agreed in august to purchase most of integrated 's core companies for $ N million ended talks with integrated 
 integrated said that it would continue to pursue other alternatives to sell the five core companies and that a group of senior executives plans to make a proposal to purchase three of the companies integrated resources equity corp. resources trust co. and integrated resources asset management corp 
 a price was n't disclosed 
 integrated also said it expects to report a second-quarter loss wider than the earlier estimate of about $ N million 
 the company did n't disclose the new estimate but said the change was related to integrated 's failure to sell its core businesses as well as other events which it did n't detail that occurred after its announcement last week that it was in talks with the unidentified prospective buyer 
 meanwhile a number of top sales producers from integrated resources equity will meet this afternoon in chicago to discuss their options 
 the unit is a <unk> constructed group of about N independent brokers and financial planners who sell insurance annuities limited partnerships mutual funds and other investments for integrated and other firms 
 the sales force is viewed as a critical asset in integrated 's attempt to sell its core companies 
 <unk> cited concerns about how long integrated would be able to hold together the sales force as one reason its talks with integrated failed 
 in composite trading on the new york stock exchange yesterday integrated closed at $ N a share down N cents 
 integrated has been struggling to avoid a bankruptcy-law filing since june when it failed to make interest payments on nearly $ N billion of debt 
 integrated senior and junior creditors are owed a total of about $ N billion 
 an earthquake struck northern california killing more than N people 
 the violent temblor which lasted about N seconds and registered N on the richter scale also caused the collapse of a <unk> section of the san <unk> bay bridge and shook candlestick park 
 the tremor was centered near <unk> southeast of san francisco and was felt as far as N miles away 
 numerous injuries were reported 
 some buildings collapsed gas and water lines <unk> and fires <unk> 
 the quake which also caused damage in san jose and berkeley knocked out electricity and telephones <unk> roadways and disrupted subway service in the bay area 
 major injuries were n't reported at candlestick park where the third game of baseball 's world series was canceled and fans <unk> from the stadium 
 bush vowed to veto a bill allowing federal financing for abortions in cases of rape and incest saying tax dollars should n't be used to compound a violent act with the taking of an <unk> life 
 his pledge in a letter to democratic sen. byrd came ahead of an expected senate vote on spending legislation containing the provision 
 east germany 's politburo met amid speculation that the ruling body would oust hard-line leader honecker whose rule has been challenged by mass emigration and calls for democratic freedoms 
 meanwhile about N refugees flew to <unk> west germany from warsaw the first <unk> in east germany 's <unk> exodus 
 the world psychiatric association voted at an <unk> <unk> to <unk> <unk> the soviet union 
 moscow which left the group in N to avoid <unk> over allegations that political <unk> were being certified as <unk> could be suspended if the <unk> of <unk> against <unk> is discovered during a review within a year 
 nasa postponed the <unk> of the space shuttle atlantis because of rain near the site of the launch <unk> in <unk> <unk> fla 
 the flight was <unk> for today 
 the spacecraft 's five <unk> are to <unk> the <unk> galileo space probe on an <unk> mission to jupiter 
 senate democratic leaders said they had enough votes to defeat a proposed constitutional amendment to ban flag burning 
 the amendment is aimed at <unk> a supreme court ruling that threw out the conviction of a texas <unk> on grounds that his freedom of speech was violated 
 federal researchers said lung-cancer mortality rates for people under N years of age have begun to decline particularly for white males 
 the national cancer institute also projected that overall u.s. mortality rates from lung cancer should begin to drop in several years if cigarette smoking continues to <unk> 
 bush met with south korean president roh who indicated that seoul plans to further ease trade rules to ensure that its economy becomes as open as the other industrialized nations by the mid-1990s 
 bush assured roh that the u.s. would stand by its security commitments as long as there is a threat from communist north korea 
 the bush administration is seeking an understanding with congress to ease restrictions on u.s. involvement in foreign coups that might result in the death of a country 's leader 
 a white house spokesman said that while bush would n't alter a longstanding ban on such involvement there 's a <unk> needed on its interpretation 
 india 's gandhi called for parliamentary elections next month 
 the balloting considered a test for the prime minister and the ruling congress i party comes amid charges of <unk> leadership and government corruption 
 gandhi 's family has ruled independent india for all but five years of its <unk> history 
 the soviet union <unk> from a u.n. general assembly vote to reject israel 's credentials 
 it was the first time in seven years that moscow has n't joined efforts led by <unk> nations to <unk> israel from the world body and was viewed as a sign of improving <unk> ties 
 israel was <unk> by a vote of N with N <unk> 
 black activist walter sisulu said the african national congress would n't reject violence as a way to pressure the south african government into concessions that might lead to negotiations over apartheid 
 the <unk> sisulu was among eight black political activists freed sunday from prison 
 london has concluded that <unk> president <unk> was n't responsible for the execution of six british <unk> in world war ii although he probably was aware of the <unk> 
 the report by the defense ministry also rejected allegations that britain covered up evidence of <unk> 's activities as a german army officer 
 an international group approved a formal ban on ivory trade despite objections from southern african governments which threatened to find alternative channels for selling elephant <unk> 
 the move by the convention on trade in endangered <unk> meeting in switzerland places the elephant on the <unk> list 
 an <unk> in colombia killed a federal judge on a <unk> street 
 an <unk> caller to a local radio station said cocaine traffickers had <unk> the <unk> in <unk> for the <unk> of <unk> wanted on drug charges in the u.s. 
 <unk> leader <unk> met with egypt 's president <unk> and the two officials pledged to respect each other 's laws security and stability 
 they stopped short of <unk> diplomatic ties <unk> in N 
 the reconciliation talks in the <unk> desert town of <unk> followed a meeting monday in the egyptian resort of <unk> <unk> 
 <unk> group inc. revised its exchange offer for $ N million face amount of N N senior subordinated debt due N and extended the offer to oct. N from oct. N 
 the <unk> n.j. company said holders would receive for each $ N face amount $ N face amount of a new issue of secured senior subordinated notes convertible into common stock at an initial rate of $ N a share and N common shares 
 the new notes will bear interest at N N through july N N and thereafter at N N 
 under the original proposal the maker of specialty coatings and a developer of <unk> technologies offered $ N of notes due N N common shares and $ N in cash for each $ N face amount 
 completion of the exchange offer is subject to the tender of at least N N of the debt among other things 
 <unk> which said it does n't plan to further extend the offer said it received $ N face amount of debt under the original offer 
 the stock of ual corp. continued to be <unk> amid signs that british airways may <unk> at any <unk> <unk> of the aborted $ N billion buy-out of united airlines ' parent 
 ual stock plummeted a further $ N to $ N on volume of more than N million shares in new york stock exchange composite trading 
 the plunge followed a drop of $ N monday amid indications the takeover may take weeks to be revived 
 the stock has fallen $ N or N N in the three trading days since announcement of the collapse of the $ 300-a-share takeover jolted the entire stock market into its <unk> plunge ever 
 this is a total <unk> for takeover-stock traders one investment banker said 
 los angeles financier marvin davis who put united in play with a $ N billion bid two months ago last night <unk> both a ray of hope and an extra element of uncertainty by saying he remains interested in acquiring ual 
 but he dropped his earlier $ 300-a-share <unk> bid saying he must first explore bank financing 
 even as citicorp and chase manhattan corp. scrambled to line up bank financing for a revised version of the <unk> labor-management bid british airways a N N partner in the buying group indicated it wants to start from <unk> 
 its partners are united 's pilots who were to own N N and ual management at N N 
 adding <unk> to injury united 's <unk> machinists ' union which helped scuttle financing for the first bid yesterday asked ual chairman stephen wolf and other ual directors to resign 
 a similar demand was made by a group that represents some of united 's N <unk> employees 
 john <unk> machinists union general vice president attacked mr. wolf as greedy and irresponsible for pursuing the buy-out 
 although mr. wolf and john pope ual 's chief financial officer stood to <unk> $ N million for stock and options in the buy-out ual executives planned to reinvest only $ N million in the new company 
 the blue-collar machinists longtime rivals of the white-collar pilots say the <unk> would load the company with debt and weaken its finances 
 confusion about the two banks ' <unk> efforts to round up financing for a new bid that the ual board has n't even seen yet helped send ual stock <unk> downward 
 and rumors of forced selling by takeover-stock traders triggered a <unk> <unk> in the dow jones industrial average around N a.m. edt yesterday 
 yesterday 's selling began after a japanese news agency reported that japanese banks which balked at the first bid were ready to reject a revised version at around $ N a share or $ N billion 
 several reports as the day <unk> gave vague or <unk> indications about whether banks would sign up 
 citicorp for example said only that it had <unk> of interest of a transaction from both the borrowers and the banks but did n't have an agreement 
 late in the day mr. wolf issued a <unk> statement calling mr. <unk> 's blast divisive and <unk> for 
 but he gave few details on the progress toward a new bid saying only we are working toward a revised proposal for majority employee ownership 
 meanwhile in another sign that a new bid is n't imminent it was learned that the ual board held a telephone meeting monday to hear an update on the situation but that a formal board meeting is n't likely to be <unk> until early next week 
 in london british airways chairman lord king was quoted in the times as declaring he is not prepared to take my shareholders into a <unk> deal 
 observers said it appeared that british air was angered at the way the bid has <unk> into confusion as well as by the banks ' effort to round up financing for what one called a deal that is n't a deal 
 the effort to revive the bid was complicated by the <unk> nature of the <unk> buying group 
 the pilots were meeting outside chicago yesterday 
 but british air which was to have supplied $ N million out of $ N million in equity financing apparently was n't involved in the second proposal and could well reject it even if banks obtain financing 
 a group of united 's <unk> employees said in a statement the fact that wolf and other officers were going to line their pockets with literally millions of dollars while <unk> severe pay cuts on the <unk> employees of united is not only <unk> but <unk> 
 the machinists also asked for an investigation by the securities and exchange commission into possible <unk> violations in the original bid for ual by mr. davis as well as in the response by ual 
 last week just before the bank commitments were due the union asked the u.s. labor department to study whether the bid violated legal standards of fairness governing employee investment funds 
 in his statement mr. wolf said we continue to believe our approach is sound and that it is far better for all employees than the alternative of having an outsider own the company with employees paying for it just the same 
 mr. wolf has <unk> merger advice from a major wall street securities firm relying instead only on a takeover lawyer peter <unk> of <unk> <unk> slate <unk> & flom 
 the huge drop in ual stock prompted one takeover stock trader george <unk> managing partner of <unk> <unk> & co. to deny publicly rumors that his firm was going out of business 
 mr. <unk> said that despite losses on ual stock his firm 's health is excellent 
 the stock 's decline also has left the ual board in a <unk> 
 although it may not be legally obligated to sell the company if the buy-out group ca n't revive its bid it may have to explore alternatives if the buyers come back with a bid much lower than the group 's original $ 300-a-share proposal 
 at a meeting sept. N to consider the labor-management bid the board also was informed by its investment adviser first boston corp. of interest expressed by buy-out funds including kohlberg kravis roberts & co. and <unk> little & co. as well as by robert bass morgan stanley 's buy-out fund and pan am corp 
 the takeover-stock traders were hoping that mr. davis or one of the other interested parties might <unk> with the situation in disarray or that the board might consider a recapitalization 
 meanwhile japanese bankers said they were still <unk> about accepting citicorp 's latest proposal 
 macmillan inc. said it plans a public offering of N million shares of its berlitz international inc. unit at $ N to $ N a share 
 the offering for the language school unit was announced by robert maxwell chairman and chief executive officer of london-based maxwell communication corp. which owns macmillan 
 after the offering is completed macmillan will own about N N of the berlitz common stock outstanding 
 five million shares will be offered in the u.s. and N million additional shares will be offered in <unk> international offerings outside the u.s. 
 goldman sachs & co. will manage the offering 
 macmillan said berlitz intends to pay quarterly dividends on the stock 
 the company said it expects to pay the first dividend of N cents a share in the N first quarter 
 berlitz will borrow an amount equal to its expected net proceeds from the offerings plus $ N million in connection with a credit agreement with lenders 
 the total borrowing will be about $ N million the company said 
 proceeds from the borrowings under the credit agreement will be used to pay an $ N million cash dividend to macmillan and to lend the remainder of about $ N million to maxwell communications in connection with a <unk> note 
 proceeds from the offering will be used to repay borrowings under the short-term parts of a credit agreement 
 berlitz which is based in princeton n.j. provides language instruction and translation services through more than N language centers in N countries 
 in the past five years more than N N of its sales have been outside the u.s. 
 macmillan has owned berlitz since N 
 in the first six months of this year berlitz posted net income of $ N million on sales of $ N million compared with net income of $ N million on sales of $ N million 
 right away you notice the following things about a philip glass concert 
 it attracts people with funny hair or with no hair in front of me a girl with <unk> <unk> sat <unk> a boy who had <unk> his 
 whoever constitute the local left bank come out in force dressed in black along with a <unk> of <unk> who want to be on the cutting edge 
 people in glass houses tend to look <unk> 
 and if still <unk> at the evening 's end you notice something else the audience at first <unk> and <unk> by the music releases its <unk> feelings in collective <unk> 
 currently in the middle of a <unk> <unk> tour as a solo <unk> mr. glass has left behind his <unk> equipment and <unk> in favor of going it alone 
 he sits down at the piano and plays 
 and plays 
 either one likes it or one does n't 
 the typical glass audience which is more likely to be composed of music students than their teachers certainly does 
 the work though sounds like <unk> for <unk> 
 philip glass is the <unk> and his music the new clothes of the <unk> 
 his success is easy to understand 
 <unk> introducing and explaining his pieces mr. glass looks and sounds more like a <unk> <unk> describing his work than a classical <unk> playing a recital 
 the piano <unk> which have been labeled <unk> as <unk> <unk> <unk> cyclical <unk> and <unk> are <unk> <unk> therefore <unk> <unk> <unk> therefore <unk> and <unk> <unk> but <unk> therefore both pretty and <unk> 
 it is music for people who want to hear something different but do n't want to work especially hard at the task 
 it is <unk> listening for the now generation 
 mr. glass has <unk> the famous <unk> <unk> less is more 
 his more is always less 
 far from being <unk> the music <unk> <unk> us with apparent <unk> not so <unk> <unk> in the <unk> of N time <unk> <unk> and <unk> or <unk> <unk> <unk> 
 but the music has its <unk> and mr. glass has constructed his solo program around a move from the simple to the relatively complex 
 opening N from <unk> <unk> the audience to the glass technique never <unk> too far from the piano 's center mr. glass works in the two <unk> on either side of middle c and his fingers seldom leave the <unk> 
 there is a <unk> musical style here but not a particular performance style 
 the music is not especially <unk> indeed it 's hard to imagine a bad performance of it 
 nothing <unk> no <unk> no <unk> <unk> problems challenge the performer 
 we hear we may think inner voices but they all seem to be saying the same thing 
 with planet news music meant to <unk> <unk> of allen <unk> 's wichita <unk> <unk> mr. glass gets going 
 his hands sit <unk> apart on the <unk> 
 seventh <unk> make you feel as though he may break into a very slow <unk> <unk> 
 the <unk> <unk> but there is little <unk> even though his fingers begin to <unk> over more of the <unk> 
 contrasts predictably <unk> first the music is loud then it becomes soft then you realize it becomes <unk> again 
 the fourth <unk> play an <unk> from <unk> on the beach is like a <unk> but it does n't seem to move much beyond its <unk> ground in three blind mice 
 when mr. glass decides to get really fancy he <unk> his hands and hits a <unk> bass note with his right hand 
 he does this in at least three of his solo pieces 
 you might call it a <unk> or a <unk> <unk> 
 in mad rush which came from a commission to write a piece of <unk> length mr. glass <unk> and <unk> confessed that this was no problem for me an a <unk> with a b section several times before the piece ends <unk> 
 not only is the typical <unk> <unk> it is also often multiple in its context s 
 mad rush began its life as the <unk> to the <unk> lama 's first public address in the u.s. when mr. glass played it on the <unk> at new york 's <unk> of st. john the <unk> 
 later it was performed on radio <unk> in germany and then <unk> <unk> took it for one of her dance pieces 
 the point is that any piece can be used as background music for virtually anything 
 the evening ended with mr. glass 's <unk> another multiple work 
 parts N N and N come from the <unk> of <unk> morris 's <unk> film the thin blue line and the two other parts from <unk> music to two separate <unk> of the <unk> story of the same name 
 when used as background in this way the music has an appropriate <unk> as when a <unk> phrase a <unk> minor third <unk> the seemingly endless <unk> of reports interviews and <unk> of witnesses in the morris film 
 served up as a solo however the music lacks the <unk> provided by a context within another medium 
 <unk> of mr. glass may agree with the critic richard <unk> 's sense that the N music in twelve parts is as <unk> and <unk> as the <unk> <unk> 
 but while making the obvious point that both <unk> develop variations from themes this comparison <unk> the intensely <unk> nature of mr. glass 's music 
 its supposedly <unk> <unk> <unk> a <unk> that makes one <unk> for the <unk> of <unk> <unk> the <unk> radical <unk> of <unk> and <unk> and what in <unk> even seems like <unk> in <unk> 
 mr. <unk> is professor of english at southern <unk> university and editor of the southwest review 
 honeywell inc. said it hopes to complete shortly the first of two sales of shares in its japanese joint venture <unk> for about $ N million 
 the company would n't disclose the buyer of the initial N N stake 
 proceeds of the sale expected to be completed next week would be used to repurchase as many as N million shares of honeywell stock the company said 
 honeywell said it is negotiating the sale of a second stake in <unk> but indicated it intends to hold at least N N of the joint venture 's stock long term 
 a N N stake would allow honeywell to include <unk> earnings in its results 
 honeywell previously said it intended to reduce its holding in the japanese concern as part of a restructuring plan which also calls for a reduction of <unk> on weapons sales 
 yesterday a spokeswoman said the company was pleased with our progress in that regard and hopes to provide additional details soon 
 honeywell said its defense and marine systems group incurred delays in shipping some undisclosed contracts during the third quarter resulting in lower operating profit for that business 
 overall honeywell reported earnings of $ N million or $ N a share for the three months ended oct. N compared with a loss of $ N million or N cents a share a year earlier 
 the previous period 's results included a $ N million pretax charge related to <unk> contract costs and a $ N million pretax gain on real estate sales 
 sales for the latest quarter were flat at $ N billion 
 for the nine months honeywell reported earnings of $ N million or $ N a share compared with earnings of $ N million or $ N a share a year earlier 
 sales declined slightly to $ N billion 
 once again your editorial page <unk> the law to conform to your almost <unk> <unk> 
 in an <unk> of little <unk> to his central point about private enforcement suits by environmental groups michael s. <unk> <unk> your readers the clean water act is written upon the <unk> the <unk> rather that nothing but zero risk will do it <unk> a legal standard of zero <unk> <unk> environmental <unk> sept. N 
 this statement surely <unk> your editorial viewpoint that environmental protection is generally silly or excessive but it is simply wrong 
 the clean water act contains no legal standard of zero <unk> 
 it requires that <unk> of <unk> into the waters of the united states be authorized by permits that reflect the <unk> limitations developed under section N 
 whatever may be the problems with this system it <unk> reflects zero risk or zero <unk> 
 perhaps mr. <unk> was confused by congress 's <unk> statement of the national goal in section N which indeed calls for the elimination of <unk> by N no less 
 this <unk> statement was not taken seriously when enacted in N and should not now be confused with the <unk> provisions of the statute 
 thus you do the public a great <unk> when mr. <unk> suggests even <unk> that the clean water act prohibits the preparation of a <unk> and water your <unk> readers may be led to believe that nothing but chance or oversight protects them as they <unk> in the night with their <unk> and waters from the <unk> knock of the sierra club at their doors 
 robert j. <unk> 
 national geographic the <unk> u.s. magazine is attracting more readers than ever and offers the glossy <unk> pages that upscale advertisers love 
 so why did advertising pages plunge by almost N N and ad revenue by N N in the first half 
 to hear advertisers tell it the magazine just has n't kept up with the times 
 despite renewed interest by the public in such topics as the environment and the third world it has n't been able to shake its reputation as a magazine boys like to <unk> through in search of <unk> tribe women 
 worse it lagged behind competitors in offering <unk> <unk> from regional editions to discounts for frequent advertisers 
 but now the magazine is attempting to fight back with an ambitious plan including a revamped sales strategy and a surprisingly aggressive ad campaign 
 advertisers do n't think of the magazine first says joan <unk> who joined in april as national advertising director 
 what we want to do is take a more aggressive stance 
 people did n't believe we were in tune with the marketplace and in many ways we were n't 
 the <unk> magazine has never had to woo advertisers with quite so much <unk> before 
 it largely <unk> on its <unk> <unk> N million subscribers in the first half up from N million a year ago an average age of N for readers at the <unk> of their <unk> years loyalty to the tune of an N N average subscription renewal rate 
 the magazine had its best year yet in N when it <unk> its centennial and racked up a N N gain in ad pages to N 
 but this year when the <unk> surrounding its centennial died so too did some advertiser interest 
 the reason ad executives say is that the entire magazine business has been soft and national geographic has some <unk> that make it especially <unk> during a soft market 
 perhaps the biggest of those factors is its high ad prices $ N for a <unk> page vs. $ N for the <unk> a comparable publication with a far smaller circulation 
 when ad dollars are tight the high page cost is a major <unk> for advertisers who generally want to appear regularly in a publication or not at all 
 even though national geographic offers far more readers than does a magazine like <unk> the page costs you an arm and a leg to develop any frequency says harry glass new york media manager for bozell inc 
 to combat that problem national geographic like other magazines began offering regional editions allowing advertisers to appear in only a portion of its magazines for example ads can run only in the magazines sent to subscribers in the largest N markets 
 but the magazine was slower than its competitors to come up with its regional editions and until last year offered fewer of them than did competitors 
 time magazine for example has more than N separate editions going to different regions top management and other groups 
 another sticking point for advertisers was national geographic 's tradition of <unk> its ads together usually at the beginning or end of the magazine rather than spreading ads out among its articles as most magazines do 
 and national geographic 's <unk> size means extra production costs for advertisers 
 but ms. <unk> says the magazine is fighting back 
 it now offers N regional editions it very recently began running ads adjacent to articles and it has been <unk> up its sales force 
 and it just launched a promotional campaign to tell chief executives marketing directors and media executives just that 
 the centerpiece of the promotion is its new ad campaign into which the magazine will pour about $ N mostly in the next few weeks 
 the campaign created by <unk> group 's ddb needham agency takes advantage of the <unk> photography that national geographic is known for 
 in one ad a photo of the interior of the <unk> in paris is <unk> with the headline the only book more respected than <unk> does n't accept advertising 
 another ad pictures a tree <unk> magnified N times with the headline for impact far beyond your size consider our regional editions 
 ms. <unk> says she wants the campaign to help attract advertisers in N categories including corporate financial services consumer electronics insurance and food 
 her goal to top N ad pages in N up from about N this year 
 whether she can meet that ambitious goal is still far from certain 
 the ad campaign is meant to <unk> the thought of national geographic she says 
 we want it to be a <unk> kind of image 
 wcrs plans <unk> sale 
 wcrs group hopes to announce perhaps today an agreement to sell the majority of its ad unit to <unk> eurocom a european ad executive said 
 wcrs has been in discussions with eurocom for several months 
 however when negotiations <unk> down recently wcrs 's chief executive peter scott met in paris with another french firm <unk> <unk> <unk> <unk> or <unk> 
 according to the executive <unk> 's involvement prompted renewed <unk> in the <unk> talks and the two agencies were hoping to <unk> out details by today 
 executives of the two agencies could n't be reached last night 
 ad notes 
 new account procter & gamble co. cincinnati awarded the ad accounts for its line of professional <unk> <unk> <unk> and oil products to <unk> <unk> <unk> cincinnati 
 billings were n't disclosed 
 professional <unk> products are specially made for the <unk> industry 
 who 's news stephen <unk> N was named executive vice president deputy creative director at grey advertising new york 
 he was executive vice president director of broadcast production 
 the commodity futures trading commission plans to restrict dual trading on commodity exchanges a move almost certain to <unk> exchange officials and traders 
 the cftc said it will propose the restrictions after the release of a study that shows little economic benefit resulting from dual trading and cites problems associated with the practice 
 dual trading gives an exchange trader the right to trade both for his own account and for customers 
 the issue exploded this year after a federal bureau of investigation operation led to charges of widespread trading abuses at the chicago board of trade and chicago mercantile exchange 
 while not specifically mentioned in the fbi charges dual trading became a focus of attempts to tighten industry regulations 
 critics contend that traders were putting buying or selling for their own accounts ahead of other traders ' customer orders 
 traders are likely to oppose such restrictions because dual trading provides a way to make money in slower markets where there is a shortage of customer orders 
 the exchanges contend that dual trading improves liquidity in the markets because traders can buy or sell even when they do n't have a customer order in hand 
 the exchanges say liquidity becomes a severe problem for <unk> traded contracts such as those with a long time remaining before expiration 
 the cftc may take those arguments into account by allowing exceptions to its restrictions 
 the agency did n't cite specific situations where dual trading might be allowed but smaller exchanges or contracts that need additional liquidity are expected to be among them 
 wendy <unk> the agency 's chairman told the senate agriculture committee that she expects the study to be released within two weeks and the rule changes to be completed by <unk> 
 the study by the cftc 's division of economic analysis shows that a trade is a trade a member of the study team said 
 whether a trade is done on a dual or <unk> basis the member said does n't seem to have much economic impact 
 currently most traders on commodity exchanges specialize in trading either for customer accounts which makes them brokers or for their own accounts as <unk> <unk> 
 the tests indicate that dual and <unk> traders are similar in terms of the trade executions and liquidity they provide to the market mrs. <unk> told the senate panel 
 members of congress have proposed restricting dual trading in bills to <unk> cftc operations 
 the house 's bill would prohibit dual trading in markets with daily average volume of N contracts or more <unk> those considered too difficult to track without a sophisticated computer system 
 the senate bill would force the cftc to suspend dual trading if an exchange ca n't show that its oversight system can detect <unk> abuses 
 so far one test of restricting dual trading has worked well 
 the chicago merc banned dual trading in its standard & poor 's 500-stock index futures pit in N 
 under the rules traders decide before a session begins whether they will trade for their own account or for customers 
 traders who stand on the pit 's top step where most customer orders are executed ca n't trade for themselves 
 a merc spokesman said the plan has n't made much difference in liquidity in the pit 
 it 's too soon to tell but people do n't seem to be unhappy with it he said 
 he said he would n't comment on the cftc plan until the exchange has seen the full proposal 
 but at a meeting last week tom <unk> the board of trade 's president told commodity lawyers dual trading is definitely worth saving 
 it adds something to the market 
 japanese firms push <unk> car <unk> 
 japanese luxury-car makers are trying to set strict design standards for their dealerships 
 but some dealers are negotiating <unk> terms while others decline to deal at all 
 nissan motor co. 's infiniti division likes to insist that every dealer construct and <unk> a building in a japanese style 
 specifications include a <unk> <unk> <unk> at the center of each showroom and a <unk> bridge <unk> a stream that flows into the building from outside 
 infiniti has it down to the <unk> says jay <unk> a partner at <unk> power & associates an auto research firm 
 toyota motor corp. 's lexus division also provides specifications 
 but only two-thirds of lexus dealers are <unk> new buildings according to the lexus <unk> 
 some are even coming up with their own novel designs 
 in louisville ky. for example david peterson has built a lexus dealership with the showroom on the second floor 
 yet some dealers have turned down infiniti or lexus <unk> because they were unwilling or unable to meet the design requirements 
 lee seidman of cleveland says infiniti was a bear on <unk> but at least let him <unk> an existing building without the stream 
 mr. seidman says he turned down a lexus franchise in part because the building was <unk> but very expensive 
 to head off arguments infiniti offers dealers cash bonuses and <unk> construction loans 
 <unk> device 's <unk> plays back a lesson 
 products <unk> have to be first to be winners 
 that 's the lesson offered through one case study featured in a design exhibit 
 dictaphone corp. was caught off guard in N when its main competitor <unk> office products of japan introduced a <unk> <unk> recorder half the size of standard <unk> devices 
 blocked by patent protection from following suit dictaphone decided to go a step further and cut the <unk> in half again down to the length of a <unk> 
 by N designers and engineers at dictaphone a pitney bowes subsidiary had produced a working model of a <unk> recorder 
 by N however the patent status of the <unk> <unk> had changed permitting dictaphone to develop its own competitive micro system which it did 
 marketing and sales departments then urged <unk> of the <unk> project 
 but others said <unk> should proceed 
 both were right 
 dictaphone went ahead and introduced the <unk> in N but it has n't sold well 
 to date says <unk> <unk> a dictaphone vice president it has broken even or shown a small loss 
 nevertheless the device has been successful in other ways 
 it helped dictaphone attract better engineers and it provided new technology for other company products 
 the <unk> recorder also helped transform the company 's reputation from <unk> to <unk> <unk> 
 it gave me great pride to see the inventor of the <unk> in japan look at the <unk> and shake his head and say <unk> says mr. <unk> 
 dictaphone 's <unk> recorder is one of N case studies in the <unk> design project sponsored by the design management institute of boston and harvard business school 
 the studies are on exhibit at harvard this month and will travel to chicago 's institute of design and the university of california at berkeley 
 a rake 's progress means <unk> out 
 one day carl barrett of mobile ala. was <unk> some <unk> leaves but the rake kept riding up over the <unk> 
 the harder he tried to push them into large <unk> the closer he came to breaking the rake and <unk> his back 
 so mr. barrett then vice president of the alabama <unk> association took a <unk> garden rake and taped it to the <unk> of a <unk> rake about nine inches up 
 his crude device worked the lower teeth gathered the leaves into a pile while the higher harder teeth moved the top of the pile 
 now incorporated into a <unk> rake the <unk> <unk> or <unk> also are supposed to aid in picking up leaves 
 one customer donald <unk> of mobile says the barrett rake allowed him to do his lawn in N N hours two hours less than usual 
 but other rake makers have their doubts 
 richard mason president of <unk> co. in <unk> w. va. says the barrett rake makes sense but it would be tough to explain to consumers 
 john <unk> marketing director for true <unk> corp. a subsidiary of black & decker says people do n't want to move a <unk> pile 
 they either pick it up he says or they start pulling from a fresh direction 
 odds and ends 
 no more <unk> <unk> or <unk> <unk> promises <unk> corp. of <unk> ind. the designer of a bed support to replace traditional <unk> 
 four <unk> steel <unk> each roughly in the shape of a <unk> are attached to the bottom of the box spring in a <unk> position 
 nearly half of u.s. consumers say they 'll pay up to N N more for packaging that can be recycled or is <unk> according to a survey commissioned by the michael peters group a design consultant 
 the pentagon is a <unk> house 
 living there for six years was really scary 
 the ghosts of the past are everywhere they are kept at bay only by feeding them vast quantities of our defense budget 
 some can be bought off relatively <unk> 
 during the korean war gen. douglas <unk> demanded and got in addition to his u.n. command in korea his own naval command in japan <unk> 
 those <unk> operations cost less than $ N billion a year and keep mac 's ghost quiet 
 that 's about all it costs to <unk> adm. erich <unk> 's ghost 
 in N <unk> and the german navy threatened to attack the panama <unk> so we created the southern command in panama 
 the southern command has grown even bigger since the war because <unk> 's ghost sometimes runs through the e ring dressed like gen. noriega 
 the command 's huge bureaucracy is needed to analyze whether leaders of coups against gen. noriega meet the war powers act 's six points cap <unk> 's seven points the intelligence committee 's N points and <unk> wilson 's N points necessary to justify u.s. support 
 so far no one has 
 the ghost of the soviet <unk> discovered in cuba back in the <unk> costs just a few hundred million the price of the caribbean command in key west that president carter created in N 
 the <unk> has n't been heard from since but we keep the staff around just in case 
 george marshall 's ghost is much more difficult to keep happy 
 we keep a lot of <unk> to him around the pentagon <unk> <unk> <unk> and such 
 the army headquarters on the third deck of the pentagon used to <unk> a lot of <unk> to him but the navy headquarters on the fourth deck made them stop it 
 you see marshall had this thing about the navy and the <unk> he wanted to make them part of the army but secretary of the navy james <unk> blocked him 
 now his ghost wo n't let up till it 's done 
 to keep him quiet we <unk> a new unified command every year or so run by the army or the air force and put more of the navy and <unk> under it 
 but we still hear him <unk> at night because the navy has a few ships left and to satisfy him the navy 's sea lift forces were given to a new air force bureaucracy in illinois its space operations to another command in colorado the <unk> to a new army bureaucracy in fort <unk> and the navy 's indian ocean and persian gulf forces to an army bureaucracy in florida 
 which brings up the worst and <unk> ghost of all the ghost of the shah of iran 
 when the shah died president carter was so scared that the shah 's ghost would blame him for <unk> him out to make way for the <unk> that he declared the carter doctrine 
 mr. carter said he would go to war to stop anyone from trying to grab iran 
 but that ghost would n't settle for words he wanted money and people lots 
 so mr. carter formed three new army divisions and gave them to a new bureaucracy in tampa called the rapid <unk> force 
 but that ghost was n't <unk> he knew the <unk> was neither rapid nor <unk> nor a force even though it cost $ N billion or $ N billion a year 
 after mr. carter was defeated in N the shah 's ghost claimed the credit and then went after president reagan and cap <unk> 
 i saw what he did to them <unk> 
 it made my <unk> dance with <unk> 
 why he used to lay in wait for cap suddenly he 'd leap from behind some <unk> of marshall onto cap 's <unk> and grab him by the <unk> and <unk> him till he <unk> up an additional $ N billion or so 
 cap added four more divisions to the army two active and two reserve two carrier groups to the navy a division equivalent to the <unk> and the <unk> <unk> <unk> and a thousand tactical aircraft to the air force 
 he bought $ N billion in <unk> ships and $ N billion in <unk> and equipment to fill them and <unk> them at a new $ N billion base at diego garcia in the middle of the indian ocean 
 he dedicated all these new forces to the persian gulf 
 one night both marshall 's ghost and the shah 's ghost together caught cap and threw him to the ground 
 before they let him go he added a thousand bureaucrats to the <unk> in tampa and renamed it central command 
 he gave those bureaucrats charge of all naval operations in the persian gulf and indian ocean 
 marshall figured it would be good training for those soldiers someday maybe they would get the whole navy 
 they had fun moving the carriers around but it turned out that they had forgotten all about mine <unk> 
 but the shah still kept leaping out at cap so cap bought a hundred merchant ships more and $ N billion of <unk> <unk> <unk> etc. in order that those seven new army divisions and three marine <unk> could unload from all those new ships and aircraft and go to war in the <unk> <unk> 
 then suddenly <unk> 's ghost came to visit and said what the hell are you doing planning for a land war in asia N miles away 
 we 'd get our <unk> kicked 
 lucky for cap <unk> was <unk> and soon went away while the shah he kept coming back 
 so the u.s. found itself paying about $ N billion in <unk> to various arab <unk> for <unk> rights around the indian ocean 
 we had great success in somalia 
 but then it turned out that president <unk> <unk> was not at all a nice person and the navy pointed out that the base he promised us in <unk> had <unk> up about a hundred years ago and anyway was N miles from the mouth of the gulf 
 but who 's counting 
 still <unk> was the best we could get so we stay in bed with president <unk> 
 all these reports about him committing <unk> are probably <unk> anyway 
 but would n't you know now that we are spending <unk> of dollars and have built those new divisions and new air wings and have positioned all these ships and supplies to fight the russians in iran the russians seem to have lost interest in the whole subject 
 meanwhile congress is cutting huge chunks out of the rest of the defense budget 
 predictably some navy guys said do we still need to keep all N army divisions on active duty and all those extra <unk> aircraft without bases and all those army guys playing <unk> in tampa 
 could n't we save $ N billion or $ N billion a year by shifting that stuff to the reserves 
 and why not save the costs of a thousand bureaucrats by <unk> central command and putting responsibility for gulf naval operations back where it belongs afloat with the task force <unk> in the gulf 
 and where were all our <unk> paid indian ocean allies last year when our <unk> were being attacked 
 questions like that really stir up marshall 's ghost 
 he appeared late one night in the <unk> of the new defense secretary dick cheney 
 marshall came <unk> in like <unk> 's ghost dragging those chains of <unk> and air wings and links with arab <unk> 
 he would n't leave until mr. cheney promised to do whatever the pentagon systems analysts told him 
 so next day mr. cheney went out and did just that he canceled the <unk> navy and cut back one carrier and N <unk> 
 then he canceled production of the navy 's most important carrier aircraft the f-14 and the <unk> 
 on the other hand mr. cheney retained all those new land forces 
 marshall 's ghost is satisfied for now but he 'll be back 
 what with halloween coming and bigger defense cuts looming more and more pentagon bureaucrats are <unk> under their desks 
 they know that they can hold off the ghosts only a little while longer by cutting carriers and ships 
 then the whole thing will start to collapse just as it did in the 1970s and the ghosts and <unk> will be <unk> through the place turning people 's hair white 
 gives me the <unk> just thinking about it 
 mr. lehman a reagan navy secretary is a managing director of painewebber 
 the metal and marble lobby of centrust bank 's headquarters is <unk> than your average savings and loan 
 for one thing there is an old master on the wall samuel <unk> david a big <unk> <unk> painted by <unk> <unk> a <unk> <unk> 
 at the moment however the painting is a nagging reminder of the problems that have <unk> centrust and its flamboyant chairman and chief executive david l. paul 
 in an international buying spree that began barely two years ago mr. paul <unk> a collection of about N <unk> works including the <unk> at a total cost of $ N million 
 by midnight oct. N all of the paintings were supposed to have been sold off under orders from florida 's comptroller whose office <unk> the state 's s&ls 
 centrust did n't meet the deadline 
 the collection was at the heart of a <unk> plan mr. paul had in which the art was to do double duty as an investment for centrust and as <unk> for the s&l 's new office tower designed by <unk> <unk> 
 the <unk> is that the $ N million was <unk> from the funds of this federally insured institution even as centrust was losing money hand over <unk> 
 mr. paul had no right to buy art for the s&l in the first place it is n't on the comptroller 's permissible list without seeking a special <unk> which he did not do 
 besides that some of the paintings that were to grace the walls of centrust actually ended up hanging in the chairman 's estate on la <unk> <unk> off miami beach 
 last spring the comptroller 's office called a halt to mr. paul 's <unk> giving him six months to sell the paintings 
 the acquisitions officials said in a letter to mr. paul were <unk> <unk> and unauthorized 
 so far mr. paul has <unk> but three of his <unk> he wo n't say to whom 
 the comptroller 's office says it is monitoring the situation 
 though the agency could remove mr. paul it has no current intention to do that 
 it 's not like selling <unk> mr. paul says as he takes a drag on a <unk> st. <unk> cigarette 
 the last six months has established the quality of the collection 
 there 's no fire sale here 
 despite mr. paul 's characteristic <unk> the <unk> <unk> <unk> is finding that getting centrust florida 's largest thrift institution out of its <unk> investments is much tougher than getting into them had been 
 paintings are just part of the picture 
 although mr. paul has <unk> a $ N billion junk-bond portfolio to less than $ N million since april the high-yield debt market has plummeted 
 <unk> itself of what is left as is required of all thrift institutions by july N under the new federal s&l bailout law may well prove difficult 
 and centrust has other problems 
 late last week federal regulators ordered the thrift institution to stop paying dividends on its preferred stock a move that suggests deep concern about an institution 
 mr. paul has a plan to bring in $ N million by selling off N of centrust 's N branches but it has yet to be approved by regulators 
 it is mr. paul 's art venture however that has drawn the most attention from investors and regulators not to mention <unk> throughout the world 
 <unk> shareholders some of whom are suing say the chairman and his collection <unk> the excesses of speculation that set off the national s&l crisis 
 centrust shares have fallen sharply in price from a high of $ N in N to close yesterday at $ N 
 gallery directors meanwhile say mr. paul and others of his <unk> have left an <unk> mark on the art world and not for the better 
 collectors do n't say it 's a van <unk> anymore <unk> harry brooks the president of <unk> & co. a new york gallery 
 they say <unk> <unk> got $ N million for his so certainly $ N million is n't too much for mine 
 the great collectors we depended on such as paul mellon or norton simon have stopped buying and the new buyers are brilliant men who made money in the stock market or in takeovers and rushed into collecting 
 mr. <unk> an art dealer and <unk> sold vincent van <unk> 's <unk> at a sotheby 's auction in november N to australian businessman alan bond 
 trouble is mr. bond has yet to pay up and until he does sotheby 's has the painting under lock and key 
 when mr. paul moved in on the art market he let it be known that virtually no piece was too costly to be considered by centrust 
 he established his reputation as a <unk> in january last year at sotheby 's auction of the linda and gerald guterman collection in new york 
 there on one of his first shopping trips mr. paul picked up several paintings at stunning prices 
 he paid $ N million for instance for a still life by jan <unk> <unk> <unk> that was expected to fetch perhaps $ N 
 the price paid was a record for the artist 
 some N N of items offered at the guterman auction were sold at an average price of $ N 
 the rest were withdrawn for lack of acceptable bids 
 afterward mr. paul is said by mr. guterman to have <unk> mr. guterman the new york developer selling the collection and <unk> 
 he says he <unk> them recalls mr. guterman 
 and he tells me if you want to see your paintings you 'll have to come to my house in florida 
 mr. paul denies <unk> and <unk> 
 it 's just not true he says 
 mr. paul quickly became more aggressive in his collecting with the help of george wachter a sotheby 's expert in old masters whom he met at an exhibition of the guterman items 
 mr. wachter who became his principal adviser searched <unk> in london paris and <unk> 
 and according to one dealer mr. wachter had a <unk> for introducing mr. paul with the phrase he can buy anything 
 nicholas hall the president of the <unk> u.s.a. ltd. gallery in new york sold mr. paul <unk> and <unk> in the <unk> by giovanni <unk> <unk> 
 mr. hall says mr. paul was known to spend a lot of money 
 people were interested in seeing him but it was recognized that the route was through sotheby 's and particularly george wachter 
 mr. paul thus developed a close <unk> relationship with sotheby 's 
 mr. paul was eager to <unk> a collection for the headquarters centrust has been moving into for the greater part of a year 
 sotheby 's the auction house founded in london N and now under the <unk> of sotheby 's holdings inc. was hoping to stir up interest in old masters as it <unk> to build its u.s. business 
 european dealers continued to dominate the action in old masters which sotheby 's north america had lately been touting in this country 
 for several months there was optimism all around 
 last october mr. paul paid out $ N million of centrust 's cash plus a $ N million commission for portrait of a man as <unk> 
 the painting attributed to <unk> artist peter paul rubens was purchased privately through sotheby 's not at auction 
 in march N just N months into his campaign mr. paul was named by art & <unk> magazine as one of the top N individual collectors in the u.s. 
 an unknown quantity to most of the art world paul is no <unk> to <unk> spending the magazine said noting that he does n't stop at <unk> on <unk> but also spends big on art you can eat 
 he recently bid $ N at a paris charity auction for a dinner <unk> by six of the world 's great chefs but the final party cost closer to $ N 
 mr. paul says it was n't that high 
 the art collection might have come to rival the <unk> ' had the florida comptroller 's office not got wind of mr. paul 's <unk> <unk> 
 in its letter to him dated march N and shared with reporters alex <unk> the chief of the <unk> bureau in the comptroller 's office expressed <unk> that the s&l could be so <unk> when it had reported losses of more than $ N million in its two preceding quarters 
 the state gave centrust N days to sell the rubens 
 the comptroller 's office eventually extended the deadline to six months but <unk> its demands ordering that the book value of the collection be reduced to zero 
 in other words get rid of all the pictures 
 the state <unk> noted that <unk> banking practices are grounds for removing an officer or director and closed with the <unk> to mr. paul govern yourself <unk> 
 the state agency was particularly <unk> to learn that the rubens and a <unk> other paintings listed among the bank 's furniture and <unk> were actually hanging in the chairman 's house 
 mr. paul says that at one point he did indeed have eight or nine of the paintings at home and that the rest were in storage at sotheby 's 
 he explains that he was merely <unk> the paintings at home with some display because of the special <unk> environment required for their <unk> until centrust 's new building was ready for them 
 still the incident was embarrassing 
 it came on the heels of a number of local newspaper articles suggesting that mr. paul has benefited <unk> from his association with centrust 
 for instance he got a $ N million loan from the s&l negotiated at a <unk> rate 
 he owns N N of centrust 's shares 
 adding to mr. paul 's problems dealers some with vested interests insist that he relying rather too heavily on sotheby 's advice paid much too much for several pieces in the centrust collection 
 the $ N million <unk> on the rubens for example was a record price for the artist and maybe twice its value given a dispute among scholars about its <unk> 
 david <unk> the president of david <unk> inc. a new york gallery says scholars question the <unk> of the rubens 
 it may have been painted instead by a rubens associate 
 the feeling among many experts on the commercial side is that the price paid at the time was excessive in any event mr. <unk> says 
 it sounds like with the rubens he got absolutely taken to the <unk> 
 victor <unk> the executive director of the <unk> association of america agrees that mr. paul paid very <unk> for the rubens and adds that getting rid of it any time soon for a similar sum would be quite a feat 
 it 's not beyond credibility the rubens will someday be worth $ N million but whether it could be sold for that amount tomorrow remains to be seen 
 still predicting is tricky 
 i 'm forever <unk> by what i see making these high prices 
 jonathan h. <unk> the son of the painting 's former owner mrs. rush <unk> <unk> the price talk as sour <unk> 
 dealers <unk> of the purchase price he says were themselves interested in buying the rubens but lost out 
 mr. paul for his part <unk> the rubens price saying a lot of the experts have never seen the thing itself 
 most of them were n't even born the last time the painting was displayed publicly he says 
 art prices are <unk> but a good deal of <unk> is involved in <unk> statistics on sales 
 salomon brothers inc. the investment-banking firm in its annual tally of investment returns reported that old masters <unk> N N in the year ended june N the greatest return of any of N assets it tracked 
 <unk> and modern paintings not tracked by salomon are ranked even higher at N N by sotheby 's 
 salomon moreover gets its data on art appreciation from sotheby 's whose prices go up with clients like mr. paul in its <unk> 
 the <unk> <unk> from consideration the many paintings that go <unk> at auction 
 art indexes track winners not losers 
 but art that has fallen sharply in value is rarely put up for sale 
 also at any of sotheby 's auctions of old masters roughly one-third to <unk> of what is offered does n't sell at any price 
 it 's not that there are n't any bids but the bids do n't meet the minimum reserve prices set by the sellers 
 in january the <unk> painting that now hangs at centrust was expected to bring no more than $ N at auction until mr. paul came along with his $ N million 
 mr. hall of the <unk> gallery says $ N million would have been an impossible price for anyone to ask for a <unk> four years ago 
 but from his <unk> point it is n't that mr. paul a customer of his too <unk> for the work a <unk> painting by an artist who is not a household word 
 the painting is N feet wide seven feet high 
 rather it just shows things have changed 
 mr. paul boasts that he spotted bargains in old masters just before they took an upward turn 
 they went up N N last year and they 'll do it again this year he declares 
 they were a <unk> 
 everybody was out buying <unk> 
 sotheby 's vice president <unk> <unk> says the auction house has been <unk> mr. paul in selling the paintings 
 and while sotheby 's chief rivals in the art world private art dealers wo n't be happy to hear it she adds a number of the <unk> have already been sold and at a substantial profit 
 mr. paul claims to have sold three paintings at more than a N N profit 
 that is n't N N and the claim is n't <unk> 
 he furthermore denies that he relied too heavily on sotheby 's or mr. wachter 
 mr. paul says he had not one but four advisers and that he never bid <unk> 
 after all he had the counsel of <unk> from the most reputable <unk> in the world 
 he says he expects to sell the collection including the controversial rubens carefully and <unk> just as it was put together 
 but in <unk> <unk> mr. paul 's holdings are <unk> 
 that is he is being <unk> to put them on the market too soon and has already gotten offers that are less than he paid for some of the art works 
 after a few years you can argue there has been natural appreciation says susan <unk> the publisher of leonard 's annual price index of art auctions 
 but quick turnover in <unk> is like <unk> your jewelry you end up with N N 
 people hold out and try to get a bargain 
 sotheby 's <unk> itself and mr. paul in the matter 
 mr. wachter says mr. paul was a quick study who worked intensely and bought the best pictures available at the moment 
 on occasion he paid a high price mr. wachter concedes but he says those who bid less and dropped out were dealers who would then have marked up the paintings to <unk> them at a profit to collectors 
 <unk> <unk> <unk> a <unk> <unk> at <unk> associates in san francisco considers it <unk> conflict of interest for an auction house to both advise a client on purchases and to set price estimates on the paintings to be purchased 
 sotheby 's she says is wearing both hats 
 i ca n't see why there would be a conflict of interest says sotheby 's ms. <unk> 
 estimates are based on the previous price of similar works sold at auction and current market conditions and are not affected by any knowledge of who the potential buyer could be 
 frequently clients express interest in paintings but do n't end up bidding she adds so we do n't know who the potential buyer will be 
 mr. paul in selling off his paintings is seeking at least a N N return on the bank 's investment so as to prove that the venture was sound 
 mr. paul says that he has <unk> out over much of the globe and that potential buyers from as far away as japan and italy have examined the collection 
 because of the pressure on centrust to sell dealers and collectors have been trying to get the paintings at <unk> prices 
 but so far mr. paul and his advisers are holding fast 
 one dealer martin <unk> of french & co. in new york says he would have loved to buy a jan <unk> de <unk> painting from the bank 
 i tried to steal the picture to buy it <unk> and sotheby 's would n't do it 
 they were protecting his interests 
 meanwhile mr. paul and centrust executives are getting <unk> about <unk> 
 mr. paul has been characterized as the great <unk> or something complains karen e. <unk> an executive vice president of centrust 
 the media she says have distorted his personal life 
 mr. paul <unk> in agreement 
 i do n't think i have a life style that is frankly so flamboyant he says 
 but at just that moment he is interrupted in his office by a <unk> in <unk> who <unk> coffee from silver into a cup of china and <unk> the <unk> with <unk> 
 mr. paul says yes the ceiling in his executive <unk> is <unk> <unk> 
 the offices are done in <unk> and <unk> <unk> <unk> books and of course a $ N million rubens 
 but he <unk> that the <unk> be played down 
 do n't say it 's a gold ceiling 
 just say the offices are <unk> appointed he says 
 otherwise the regulators will take it for <unk> and <unk> everything 's got to be <unk> 
 figures do n't include taxes or transaction costs 
 companies listed below reported quarterly profit substantially different from the average of analysts ' estimates 
 the companies are followed by at least three analysts and had a minimum five-cent change in actual earnings per share 
 estimated and actual results involving losses are omitted 
 the percent difference compares actual profit with the 30-day estimate where at least three analysts have issues forecasts in the past N days 
 otherwise actual profit is compared with the 300-day estimate 
 during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history 
 creative accounting mostly by <unk> forced <unk> to change their way of setting standards to be followed by corporations reporting financial results standards that had become all too flexible 
 the new financial accounting standards board fasb was created in N to replace the accounting principles board of the american institute of certified public accountants 
 all of the former board 's members were <unk> <unk> <unk> criticism because they were writing rules while handling clients ' books at the same time 
 the new board 's <unk> structure kept four <unk> but the others were from industry and <unk> 
 francis m. wheat a former securities and exchange commission member headed the panel that had studied the issues for a year and proposed the fasb on march N N 
 the former board had produced N opinions and N critics in its 12-year life its chairman had conceded 
 the climate was right for the new fasb 
 in the late 1960s some <unk> failed to correct such abuses as clients picking <unk> rules that <unk> earnings and stock prices 
 and in november N congress had passed a special act to <unk> one board rule 
 also james needham an sec commissioner in april N had warned that the industry might face a federal agency writing accounting rules if they rejected the fasb idea 
 <unk> of the books dubbed figure <unk> <unk> the threat 
 the fasb had its initial meeting on march N N 
 on dec. N N it issued its first rule it required companies to disclose foreign currency <unk> in u.s. dollars 
 the fasb since then has issued N rules and some still <unk> industry 
 since late N for example it has put off a rule dealing with deferred income taxes because of the continuing controversy over the issue 
 <unk> industrial corp. said it plans to repurchase N shares or about N N of its shares outstanding in open market transactions 
 the metal products concern currently has N million common shares outstanding 
 <unk> previously had said it planned to repurchase shares but did n't disclose when or how many shares it intended to buy back 
 the company named dillon read & co. as its exclusive agent for the stock buy-back program 
 a seat on the chicago board of trade was sold for $ N down $ N from the previous sale last tuesday 
 seats currently are quoted at $ N bid $ N asked 
 the record price for a full membership on the exchange is $ N set aug. N N 
 an associate member seat was sold for $ N up $ N from the previous sale oct. N 
 associate member seats currently are quoted at $ N bid $ N asked 
 the record price for associate membership is $ N set aug. N N 
 <unk> industries ltd. said its link flight <unk> division was awarded a contract by the u.s. army for two helicopter <unk> which the company valued at as much as N million canadian dollars us$ N million 
 <unk> said the fixed price for the first of the <unk> <unk> combat mission <unk> is c$ N million 
 it is scheduled for delivery in late N 
 the price of the second <unk> ranges between c$ N million and c$ N million <unk> said depending on when the army exercises its option 
 <unk> is a toronto-based maker of commercial and military aircraft <unk> and training equipment 
 <unk> inc. said it agreed to team with a unit of <unk> honeywell inc. to provide power <unk> for a new military <unk> system being proposed by honeywell 
 total value of the contract could be $ N million <unk> said and work on the project would be about evenly divided 
 as previously reported <unk> emerged from chapter N bankruptcy-law protection in february 
 this los angeles company and its union federal savings bank subsidiary said more than N N of their N N N convertible subordinated debentures due N were tendered for conversion into <unk> common stock 
 the conversion increased total equity capital by about $ N million to a total of $ N million 
 union federal a federally insured savings bank has $ N billion in assets 
 david d. lung was appointed president and chief operating officer of this maker of building materials for manufactured homes and recreational vehicles 
 as president mr. lung N years old succeeds his father <unk> d. lung N who founded the company in N 
 <unk> lung remains chairman and chief executive officer 
 david lung has been with patrick since N and has served as vice president for administration and purchasing since N 
 general dynamics services co. a unit of general dynamics corp. won a $ N million army contract to establish maintenance facilities for tracked vehicles in pakistan 
 grumman corp. was given a $ N million navy contract for <unk> improvements 
 hughes aircraft co. a unit of general motors corp. got a $ N million air force contract for <unk> equipment 
 reynolds metals co. said third-quarter net income dropped nearly N N to $ N million or $ N a share from $ N million or $ N a share a year earlier 
 the latest earnings reflect an increase of about N million in common shares outstanding 
 revenue rose N N to $ N billion from $ N billion 
 reynolds is the third big aluminum company since friday to report disappointing earnings 
 the no. N domestic aluminum producer aluminum co. of america friday said its earnings fell N N to $ N million or $ N a share 
 and <unk> <unk> ltd. yesterday reported net income slid N N to $ N million or N cents a share from $ N million or $ N a share 
 analysts on average had been expecting about $ N for <unk> and $ N for <unk> 
 it 's a good indication that level of profitability has peaked for the industry says <unk> <unk> metals analyst with <unk> ball & <unk> inc. who had estimated reynolds would earn about $ N a share 
 the nation 's no. N aluminum company said earnings were hurt by lower prices for certain <unk> aluminum products which typically follow price fluctuations of primary <unk> 
 the base metal price has dropped N N from a year earlier to N cents a pound 
 much of the price decline has been blamed on a slowing economy and the third quarter is typically the industry 's <unk> period 
 but william o. <unk> chairman and chief executive officer said the <unk> price appears to have <unk> out 
 he said shipments are continuing at a healthy pace and the company has no excess inventory 
 aluminum shipments of N metric tons were nearly equal to the year-earlier period the company said 
 nevertheless the company said that in the latest quarter there were increased material and labor costs including a new employee <unk> plan 
 in composite trading on the new york stock exchange reynolds closed at $ N up $ N 
 no <unk> but certainly no home run 
 that 's how the <unk> game is shaping up for the months ahead according to money managers and a few brokers 
 yesterday 's <unk> recovery from friday 's <unk> in the dow jones industrials had many brokerage houses <unk> that stocks are a good bargain again 
 but quite a few money managers are n't buying it 
 weakening corporate earnings they say are no prescription for a bull market 
 the stock market ai n't going to do much of anything for a while says john <unk> of wellington management who runs the $ N billion windsor fund 
 he suspects that friday 's market decline may have a second leg perhaps a N N to N N drop later on 
 mr. <unk> says the stock market has lost some powerful driving forces namely earnings growth and the lbo <unk> buy-out fever that <unk> investors to bid up whole groups of stocks such as media and airlines 
 after sitting with N N of his fund in cash before friday 's sell-off mr. <unk> says he bought a narrow list of stocks yesterday 
 with flat corporate profits on the horizon for N money managers say price-earnings multiples that look cheap today might go on being cheap for a long time 
 this is not a grossly <unk> market but it 's not cheap either says george collins president of the mutual fund company t. rowe price associates in baltimore 
 according to institutional brokers estimate system wall street market strategists see only a N N jump in company profits in N unlike in N when profits a year out looked good they did soar N N in N 
 bulls say the market is an incredible bargain priced at only about N times estimated N earnings for stocks in the standard & poor 's N index 
 before the N crash the <unk> was more than N 
 the common view says <unk> cohen strategist for drexel burnham lambert is that there will be mild economic growth modest profit expansion and things are going to be <unk> 
 our view is that we may see a profit decline 
 some think investors should sell into rallies 
 the market is going to wind down says gerald w. <unk> a chicago money manager 
 things are a little less <unk> after friday 's jolt in the market 
 he expects stocks to decline an additional N N to N N with the dow perhaps <unk> out between N and N between now and june 
 after friday 's decline mr. <unk> 's firm ran statistical tests on N high-quality stocks using old-fashioned value criteria devised by benjamin graham an analyst and author in the 1930s and <unk> who is widely considered to be the father of modern securities analysis 
 he found N still <unk> and N fairly valued 
 nicholas parks a new york money manager expects the market to decline about N N 
 i 've been two-thirds in cash since july and i continue to think that having a defensive position is appropriate he says 
 companies that <unk> on debt in leveraged buy-outs during the past two years will continue to surface as business problems 
 <unk> about value are n't useful says new york money manager john <unk> of delta capital management 
 for instance he says international business machines and unisys might look cheap but investors might continue to do better with stocks like walt disney procter & gamble and coca-cola strong performers in recent years 
 money manager robert ross head of <unk> ross associates ltd. in vancouver british columbia says stocks would have to fall N N to N N before they are competitive with less risky investment alternatives 
 <unk> russell a money manager in <unk> okla. says friday 's <unk> is going to have more of a permanent impact on the <unk> of many investors than wall street would want to admit 
 there are still bulls out there 
 i still think we will have a N dow whether it 's six months or N months from now i do n't know says david <unk> managing partner of <unk> value management in new york 
 we 're doing a little buying in some stocks that have really been <unk> down 
 many brokerage house officials also are optimistic 
 yesterday goldman sachs merrill lynch and dean witter all increased the proportion of assets they recommend investors commit to stocks 
 dean witter now recommends N N goldman N N and merrill lynch N N 
 some investors say friday 's sell-off was a good thing because it <unk> a lot of crazy takeover speculation 
 it was a healthy <unk> says michael <unk> who runs salomon brothers asset management in new york 
 from here out these investors see a return to old-fashioned investing based on a company 's ability to show profit growth 
 the fundamentals are pretty strong mr. <unk> says 
 i do n't see this as a bear market at all 
 it 's a recognition that there was much too much <unk> in the lbo market 
 friday 's big fall was just a <unk> by the stock market says john connolly chief strategist for dean witter 
 it was an <unk> to an event the failure of a management and union group to get bank financing for a takeover of ual that does n't mean that much to lots of stocks 
 many investors have nagging worries however 
 newspapers are full of <unk> about companies <unk> on their debts and banks writing off real estate loans 
 that <unk> investors ' confidence in the economy and stocks 
 not even all the brokerage firms see clear sailing ahead 
 disappointing profits are likely to get worse in the next two quarters says mary farrell a market strategist at painewebber 
 she thinks the market could drop about N N in the next few months then recover and go higher 
 companies with steady earnings growth could do well she says while others with high debt or poor earnings could see their shares decline far more than N N 
 the turmoil on wall street may benefit some retailers attempting to lead leveraged buy-outs of their specialty and department-store chains investment bankers and retailers said 
 managers at five chains have said in recent weeks that they intend to bid for their companies 
 the chains include bloomingdale 's owned by campeau corp. toronto saks fifth avenue and marshall field 's owned by b.a.t industries plc london and b. altman & co. and <unk> inc. owned by hooker corp. which is now being managed by a court-appointed provisional <unk> 
 hooker is based in sydney australia 
 the combination of so many chains available for sale the recent failures of such retailing lbo 's as miller & <unk> inc. and declining investor confidence will drive down prices retailing observers said 
 the pricing will become more realistic which should help management said bruce rosenthal a new york investment banker with nathan s. <unk> & co 
 investors are n't going to be throwing money at any of the proposed lbos but doing deals on the basis of ridiculous assumptions never made sense either 
 earlier this year bankers and other investors were willing to provide financing because they assumed there would be major gains in both profitability and sales mr. rosenthal added 
 those days are over now he believes 
 competition from third parties who have cash and are prepared to buy has always existed and will continue added mr. rosenthal 
 but when prices were crazy it was even harder to do an lbo 
 bankers believed in the <unk> theory that says somebody else is always willing to pay more 
 this is no longer true today 
 at saks fifth avenue paul <unk> senior vice president marketing agreed that lower prices will help his management team in their proposed lbo 
 having to take on less debt would certainly be an advantage said mr. <unk> 
 it would also help us in our search for equity partners 
 to make an lbo work now we are going to need more than just junk bonds 
 none believe the proposed management lbos will be easy to complete especially at b. altman & co. which is under chapter N bankruptcy protection 
 not only could the wall street gyrations damp christmas sales if consumers lose confidence in the economy but potential junk-bond buyers are sure to demand even stronger <unk> and greater management equity participation 
 further many institutions today holding troubled retailers ' debt securities will be <unk> to consider additional retailing investments 
 it 's called bad money driving out good money said one retailing <unk> 
 institutions that usually buy retail paper have to be more concerned 
 however the lower prices these retail chains are now expected to bring should make it easier for managers to raise the necessary capital and pay back the resulting debt 
 in addition the fall selling season has generally been a good one especially for those retailers dependent on apparel sales for the majority of their revenues 
 what 's encouraging about this is that retail chains will be sold on the basis of their sales and earnings not liquidation values said joseph e. brooks chairman and chief executive officer of ann taylor inc. a specialty chain 
 retailers who had good track records of producing profits will have a better chance to buy back their companies 
 still most retailing observers expect that all the proposed retailing lbos will depend partly on the sale of junk bonds a market already in <unk> in part because of concerns associated with bonds issued by the federated and allied units of campeau 
 prices for retail chains are lower today than they were last week which will help management said <unk> harrison chairman of <unk> inc. an investment-banking firm specializing in retailing acquisitions 
 but the hurdle of financing still has to be resolved 
 potential bondholders will either look for greater equity participation on behalf of management or insist the equity component of the deals be substantially greater than in the past 
 sony corp. won a pretrial order blocking u.s. sales of justin products inc. 's my own line of portable audio players for children 
 judge john e. <unk> issued the order in manhattan federal court where sony has accused the tiny company of illegally knocking off the my first sony line 
 the judge held that the combination of colors used for the sony products is distinctive and subject to protection under new york state law rather than federal law 
 the legal fight was the subject of a wall street journal story yesterday 
 justin 's attorney charles e. <unk> said justin would ask an appeals court to set aside the order temporarily pending an <unk> appeal 
 he also repeated justin 's <unk> of sony 's charges 
 their likelihood of <unk> us is very slim said lewis h. <unk> sony 's attorney who said he doubts justin will go ahead with a trial 
 continental mortgage & equity trust said it will resume dividend payments with a <unk> payout on nov. N to shares of record oct. N 
 the dallas real estate investment trust last paid a dividend on dec. N N when shareholders received $ N a share 
 despite continuing troubles with problem assets and nonperforming loans the trust said it expects to be able to maintain or increase the rate of distributions because of operations of joint-venture properties 
 a federal appeals court struck down a natural-gas regulation that had prevented pipeline companies from passing to customers part of $ N billion in costs from controversial <unk> contracts 
 the court in a N ruling threw out a deadline set by the federal energy regulatory commission for settling old contract disputes over gas that the pipeline companies reserved but did n't use 
 ferc 's regulation had given pipelines until march N N to pass on to customers as much as N N of the costs of buying out their broken contracts which were made with producers when gas prices were high and supplies short 
 a majority of old contracts were <unk> by the deadline and settled at steep discounts 
 but pipeline companies estimate they still face $ N billion in liabilities from <unk> disputes including $ N billion they fear they wo n't be able to pass on to customers 
 according to industry lawyers the ruling gives pipeline companies an important second chance to resolve remaining disputes and take advantage of the cost-sharing mechanism 
 the court left open whether ferc could <unk> a new deadline later 
 the court agreeing with pipeline companies found the march N deadline was <unk> and <unk> and highly <unk> to the bargaining power of pipelines that were forced to negotiate settlement of the old <unk> contracts to meet the deadline 
 a report last month by the interstate natural gas association of america found that pipelines ' settlement costs had jumped in the three months before the deadline to N cents on the dollar from N cents on the dollar in N 
 the court ordered ferc to justify within N days not only its cost-sharing deadline but other major elements of its proposed regulation for introducing more competition into natural-gas transportation 
 the court also questioned a <unk> mechanism that could be used to resolve <unk> liabilities 
 the complex regulation known in the industry as order N has been <unk> contested by all sides including natural-gas producers pipelines local distribution companies and consumers 
 the court 's decision would allow ferc to change some of its provisions but <unk> it will be reviewed again quickly by the court 
 <unk> corp. said it voluntarily prepaid $ N million on its original $ N million term loan bringing the total debt reduction for the year to $ N million 
 after the payment the cleveland company owes $ N million on the loan 
 the cement producer said the payment was made from excess cash flow 
 national income realty trust said it will resume dividend payments with a <unk> dividend to be paid nov. N to shares of record oct. N 
 the mortgage and equity real estate investment trust last paid a dividend on aug. N N when holders received N cents a share 
 despite continuing troubles with problem properties and nonperforming loans the dallas trust said it has <unk> reserves abandoned properties with little potential and experienced improved operating results from joint ventures 
 mlx corp. said it reached a preliminary agreement with senior lenders to its <unk> and <unk> group to restructure the $ N million of credit facilities the lenders provide to the group 
 mlx which also makes aircraft and <unk> truck parts said the debt was accumulated during its acquisition of nine businesses that make up the group the biggest portion of which was related to the N purchase of a <unk> co. unit 
 among other things the restructured facilities will substantially reduce the group 's required amortization of the term loan portion of the credit facilities through september N mlx said 
 certain details of the restructured facilities remain to be negotiated 
 the agreement is subject to completion of a definitive amendment and appropriate approvals 
 william p. <unk> mlx chairman and chief executive said the pact will provide mlx with the additional time and flexibility necessary to complete the restructuring of the company 's capital structure 
 mlx has filed a registration statement with the securities and exchange commission covering a proposed offering of $ N million in long-term senior subordinated notes and warrants 
 dow jones & co. said it acquired a N N interest in <unk> corp. a subsidiary of oklahoma publishing co. oklahoma city that provides electronic research services 
 terms were n't disclosed 
 customers of either <unk> or dow jones <unk> are able to access the information on both services 
 dow jones is the publisher of the wall street journal 
 flowers industries inc. said it will report a charge of eight cents to N cents a share for its fiscal first quarter ended sept. N from the sale of two <unk> in high point n.c. and <unk> <unk> 
 the <unk> company said it sold the <unk> to mills family <unk> for an undisclosed amount 
 it said the sales were part of a N federal trade commission consent order 
 a year earlier flowers had fiscal first-quarter net income of $ N million or N cents a share on revenue of $ N million 
 <unk> production by the nation 's mills decreased N N last week to N tons from N tons the previous week the american iron and steel institute said 
 last week 's output rose N N from the N tons produced a year earlier 
 the industry used N N of its capability last week compared with N N the previous week and N N a year ago 
 the capability utilization rate is a <unk> designed to indicate at what percent of its production capability the industry is operating in a given week 
 <unk> b. <unk> was named executive director of the commission effective early november 
 mr. <unk> N years old succeeds <unk> <unk> N who resigned to join hong kong 's securities and futures commission 
 mr. <unk> was vice president and director corporate finance of <unk> thomson <unk> inc. a toronto investment dealer 
 dun & bradstreet corp. 's market data <unk> unit said it acquired school and college construction reports service from intelligence for education inc 
 terms were n't disclosed 
 the service supplies weekly reports on school and college construction plans 
 market data <unk> is a <unk> of educational information and provides related services 
 closely held intelligence in education of <unk> n.y. is an educational publisher and consultant 
 a battle is <unk> in venice over plans to have the <unk> italian city be the site for a universal <unk> in N 
 the plans include a subway system a congress center floating trees <unk> <unk> and as many as N additional tourists a day 
 <unk> enthusiasts argue that holding the fair would attract businesses create jobs and help <unk> abandoned sections of town 
 but opponents fear <unk> 
 this city already has too many tourists and it ca n't hold them all says <unk> <unk> the president of the venice <unk> association 
 about N italian businesses including fiat s.p a. and <unk> c. olivetti & co. have formed a consortium to lobby for holding the <unk> in venice 
 three gambling casinos have opened in poland 
 the three <unk> two in warsaw and one in <unk> accept only foreign currency and are joint ventures between polish firms and western companies 
 not all poles are pleased 
 what do we want casinos for when we have n't got anything in the shops one <unk> asked 
 but <unk> <unk> who runs the casino at warsaw 's <unk> hotel said the ventures would help poland service its $ N billion foreign debt by pouring dollars into the state firms in the joint ventures the lot airline and <unk> tourist organization 
 <unk> plans to increase natural-gas sales to europe and the u.s. 
 according to the middle east economic survey the north african nation is holding talks with italy for adding a fourth pipe to a section of the <unk> pipeline expanding capacity by up to six billion cubic <unk> a year from N billion 
 <unk> also wants to build a pipeline through <unk> and across the <unk> of <unk> to supply spain france and west germany with up to N billion cubic <unk> a year by the late 1990s 
 south africa 's national union of <unk> agreed to suspend the strike by diamond workers and resume negotiations with de beers consolidated mines ltd. over their wage dispute de beers said 
 it also said the union had agreed to meet the company for further talks tomorrow 
 the strike at five de beers mines began last thursday with N out of a total N <unk> members employed on de beers mines participating according to the union while de beers said there were N participants 
 the union has demanded a N N increase in the minimum wage while de beers 's final offer was an increase of N N 
 a <unk> environmental conference opened in <unk> <unk> 
 the gathering is expected to focus on curbing the <unk> of <unk> and <unk> limiting damage from industrial <unk> and improving the handling of harmful chemicals 
 west german environment minister <unk> <unk> said bonn is convinced of the need for cooperation especially with our neighbors in the east because we are directly affected by their ecological progress or lack of it 
 the u.s. and canada joined every european country except <unk> at the meeting 
 the swedish publishers of a new <unk> newspaper rushed an extra edition across the <unk> on oct. N after the first run sold out in one day 
 editor <unk> <unk> said plans had called for N copies of the monthly are <unk> business paper to be sold at <unk> and an additional N promotion issues to be sent by direct mail 
 he said N more copies were sent to <unk> because of strong sales 
 the swedish publishing company <unk> owns N N of are <unk> and the <unk> management company minor owns N N 
 <unk> <unk> mexico 's top debt negotiator said the country 's creditor banks are responding <unk> to mexico 's <unk> package 
 mr. <unk> 's optimism contrasts with some bankers ' views that the deal may require a lot of arm <unk> by the u.s. treasury in order to succeed 
 mr. <unk> mexico 's <unk> of the ministry of finance met yesterday with european bankers in london at the <unk> point on a so-called road show to market the package around the world 
 an increasing number of banks appear to be considering the option under the deal <unk> they can swap their mexican loans for 30-year bonds with a face value discounted by N N mr. <unk> said 
 the other two options consist of <unk> loans for bonds with N N interest rates or providing fresh loans 
 the accord which covers $ N billion of mexico 's medium and long-term debt is expected to go into effect in early 
 china 's top film actress <unk> <unk> paid $ N in back taxes and fines in <unk> province the people 's daily reported 
 the amount is equal to about N years earnings for the average peasant who makes $ N a year 
 china will spend $ N million for <unk> maintenance on <unk> 's <unk> palace former home of the <unk> lama the china news service said 
 the <unk> lama who was just awarded the nobel peace prize lives in <unk> in india 
 george w. koch N years old president and chief executive officer of grocery manufacturers of america inc. was elected a director of this maker of <unk> <unk> and specialty foods succeeding <unk> n. white jr. N who resigned 
 american business computer corp. said it privately placed N common shares at $ N a share 
 the placement was made through gray <unk> securities new york to institutional investors 
 proceeds will be used to <unk> recently <unk> technology and support the company 's international expansion 
 the company develops and markets products for the food service industry 
 the r.h. macy & co department-store chain is n't for sale 
 in yesterday 's edition it was incorrectly included with a list of new york chains up for sale 
 korean car exports have slid about N N so far this year but auto makers here are n't <unk> 
 they are enjoying domestic sales that are more than making up for lost overseas sales 
 south korean consumers are expected to buy almost N passenger cars this year up N N from N 
 in fact some auto executives suggest that <unk> demand for their cars in the u.s. and canada is a blessing otherwise they would n't be able to keep up with demand in the more profitable local market 
 we are very lucky to easily change an export loss to domestic plus says hong <unk> <unk> managing director of domestic marketing for hyundai motor co 
 as it is waiting lists of a month are n't unusual for popular models 
 demand is so strong that all of the domestic makers hyundai kia motors corp. daewoo motor co. and even <unk> ssangyong motor co. plan to build more factories 
 industry analysts predict that by N south korea will be building three million cars a year about half of that for export 
 it 's an optimistic move in a industry already facing world-wide overcapacity 
 but south korean auto makers are confident that the export market will bounce back and that demand in korea will stay strong 
 currently only one in N south koreans owns a car up from one in N a decade ago 
 in the year N it will be one car per family 
 at that point domestic sales will slow down says kim <unk> <unk> director of marketing for daewoo motor 
 the reason for the tremendous demand is simple south koreans suddenly have a lot more money 
 we never thought we 'd own a car says <unk> ok <unk> who just bought a daewoo <unk> on a five-year loan 
 she and her husband started a small printing business and need the car for work as well as for weekend <unk> 
 pay raises of N N over the past three years have given many south koreans the money to enjoy the things they were supplying the rest of the world 
 the success of <unk> ssangyong motor shows the strength of the auto market and its growing diversity 
 a part of the <unk> conglomerate ssangyong group it took over the dying <unk> motor co. in N 
 ssangyong began making variations of the <unk> <unk> vehicle 
 <unk> had had a technology agreement with jeep maker american motors corp. now a part of chrysler corp 
 the most popular style is the stretched family which resembles a ford <unk> or chevy <unk> 
 the <unk> vehicles start at $ N a family can cost over $ N 
 ssangyong which has only about N N of the domestic market will sell about N of its models this year twice as many as last year 
 it sees sales rising N N to N units next year 
 the company plans to expand plant capacity N N by N 
 by then it also hopes to begin producing a passenger car based on the <unk> N and selling for about $ N 
 hyundai and daewoo seem <unk> about the ssangyong threat but kia the <unk> <unk> auto maker is selling <unk> vehicles through its asia unit 
 it plans to sell N units in N 
 kia the only korean car maker that has seen its overseas sales grow in N aims at korea 's common man 
 its advantage has been the <unk> little pride sold as the ford <unk> in the u.s. 
 at N million won or $ N the <unk> is the <unk> car in south korea 
 along with two larger models the company claims N N of the domestic market 
 ford motor co. and japan 's mazda motor corp. have equity interests in kia 
 kia is the most aggressive of the korean big three in offering financing 
 loans for as long as five years make the cars very accessible with monthly payments as low as N won or $ N 
 daewoo motor a N joint venture with general motors corp. and the daewoo group conglomerate is the only auto maker that appears to be hurting 
 shipments of its <unk> to gm 's <unk> division are off about N N from a year ago <unk> a N N decline for hyundai and an N N increase for kia 
 moreover daewoo 's domestic sales have grown half as fast as sales of its rivals 
 the big problem for daewoo which holds about N N of the market is the long series of labor disruptions it suffered this year 
 but daewoo is expanding too 
 in fact a sister company daewoo shipbuilding and heavy machinery plans to build N <unk> by the mid-1990s 
 hyundai the korean market leader with a N N share also plans to jump into <unk> at the same time 
 it has a similar project for N cars a year 
 kia is reportedly also considering such a plan 
 even giant <unk> group is rumored in the korean press to be considering getting into the <unk> business a company spokesman had no comment 
 robert p. <unk> N years old was named president and chief administrative officer of this regional commercial bank 
 both posts had been vacant 
 robert <unk> N was named to the new positions of vice chairman and chief credit officer 
 many <unk> mutual fund investors picked up the phone yesterday but decided not to cash in their chips after all 
 as the stock market bounced back withdrawals of money from stock funds amounted to a mere <unk> compared with black monday when investors dumped $ N billion or about N N of <unk> assets 
 fidelity investments the nation 's largest fund company said phone volume was more than double its typical level but still half that of oct. N N 
 net outflows from fidelity 's stock funds stood at less than $ N million or below N N of the $ N billion cash position of the firm 's stock portfolios 
 much of the money was switched into the firm 's money market funds 
 outflows since the close of trading friday remain below one-third their level of two years ago fidelity said 
 other mutual fund companies reported even lighter withdrawal requests 
 and some investors at fidelity and elsewhere even began buying stock funds during the day 
 two years ago there was a lot of redemption activity and trouble with people getting through on the phone said <unk> <unk> head of the investment management division of the securities and exchange commission 
 this time we do n't have that at all 
 of course the relative calm could be jolted if the market <unk> again 
 and any strong surge in redemptions could force some funds to dump stocks to raise cash as some did during black monday 
 but funds generally are better prepared this time around 
 as a group their cash position of N N of assets in august the latest figure available is N N higher than two years earlier 
 many fund managers have boosted their cash levels in recent weeks 
 the biggest flurry of investor activity came early in the day 
 vanguard group inc. saw heavy exchanges from stock funds into money market funds after the telephone lines opened at N a.m 
 in the first hour the real nervous folks came along a spokesman said 
 but the <unk> pace of call volume in the first half-hour slowed considerably 
 at <unk> stevens & clark inc. phone calls came in at N N more than the normal pace through early afternoon 
 most of that increase came in the first hour after the phone lines opened at N a.m 
 as stocks rose in fact some investors changed course and reversed their sell orders 
 many funds allow investors to <unk> orders before the close of trading 
 at <unk> and at the smaller ivy funds group in <unk> mass. for instance some shareholders called early in the morning to switch money from stock funds to money market funds but later called back to reverse the switches 
 because mutual fund trades do n't take effect until the market close in this case at N p.m. these shareholders effectively stayed put 
 at fidelity 's office in downtown boston gerald sherman walked in shortly after N a.m. and placed an order to switch his retirement accounts out of three stock funds and into a money market fund 
 but by N p.m. with the market <unk> ahead for the day mr. sherman was preparing to undo his switch 
 it 's a nice feeling to know that things stabilized said mr. sherman the <unk> <unk> of a discount department store 
 but some investors continued to switch out of high-risk high-yield junk funds despite yesterday 's rebound from that market 's recent price declines 
 shareholders have been steadily <unk> out of several big junk funds the past several weeks as the $ N billion market was jolted by a cash crunch at campeau corp. and steadily declining prices 
 much of the money has been switched into money market funds fund executives say 
 instead of selling bonds to meet redemptions however some funds have borrowed from banks to meet withdrawal requests 
 this <unk> knocking down prices further 
 the $ N billion t. rowe price high yield fund was among the funds that borrowed during the campeau crisis says george j. collins president of t. rowe price associates inc 
 that way mr. collins says we did n't have to sell securities in a sloppy market 
 when the market stabilized he added the firm sold the bonds and quickly paid the loans back 
 tom <unk> contributed to this article 
 <unk> financial inc. said it agreed to acquire central of illinois inc. in a stock swap 
 shareholders of central a bank holding company based in sterling ill. will receive <unk> stock equal to N times central 's N earnings <unk> said 
 for the first nine months of N central earned $ N million 
 <unk> also a bank holding company has assets of $ N billion 
 central 's assets are $ N million 
 during its centennial year the wall street journal will report events of the past century that stand as milestones of american business history 
 soft contact lenses won federal blessing on march N N and quickly became eye <unk> for their makers 
 the food and drug administration that day said bausch & <unk> could start selling them in the u.s. 
 the <unk> product was more comfortable and less prone to falling out than hard contact lenses which had been around since N 
 bausch & <unk> sold the <unk> under a <unk> from national patent development which had gained the rights from the czechoslovakia academy of sciences 
 <unk> <unk> a <unk> invented them in N 
 the plastic lens <unk> itself over the <unk> <unk> eye <unk> while permitting <unk> to pass through 
 but the new lens became the eye of a storm 
 in september N california officials seized <unk> lenses made by <unk> companies after some showed <unk> of bacteria 
 in october doctors were <unk> the product 's safety some claiming it caused <unk> 
 and there were senate hearings on the questions in july N 
 the product <unk> the bad publicity and kept <unk> 
 the early soft lenses which cost $ N a set were expected to last for a year 
 in N extended wear versions designed to be <unk> for N days at a time <unk> offered 
 <unk> months ago a disposable seven-day model bowed a year 's supply costs about $ N 
 last month the fda and contact lens institute cautioned users that serious eye <unk> could result from wearing lenses more than seven days at a stretch 
 today N million of the N million americans using contact lenses are using the soft type 
 including the <unk> eye care products contacts account for $ N billion in annual retail sales 
 although bausch remains the leader among the six <unk> johnson & johnson with its new <unk> is coming on fast 
 the roller-coaster stock market is making life tougher for small companies trying to raise money 
 in the wake of friday 's plunge and yesterday 's rebound some companies are already <unk> deals and others wish they could 
 as in other jittery times many small businesses expect a particularly rough time raising funds as investors <unk> risky deals seeking safety in bigger companies 
 even if stock prices fully recover from friday 's sharp decline the unsettled conditions will <unk> many investors 
 the implication of an unsettled situation is that the thing could drop dramatically says henry <unk> jr. chairman of <unk> corp. a four-year-old biotechnology company that is planning a private placement of stock 
 the more <unk> that indicate risk the more the investor is going to drive a hard bargain 
 earlier this month <unk> inc. a <unk> mass. <unk> <unk> said it would accelerate expansion plans nationwide and offer more of its stock to the public 
 at the time its shares were selling above their initial offering price of $ N and bankers believed <unk> would sell new stock without a <unk> 
 but with the company 's shares standing at $ N yesterday a new offering seems unlikely company officials say 
 business however continues to be robust and the stock market has n't affected the concern 's expansion plans says <unk> <unk> a senior executive 
 other companies figure they ca n't avoid the market 
 we have capital requirements says mr. <unk> so we have to go ahead with a planned $ N billion private placement 
 unless the market goes right back up he says it may take us six to nine months to find the money instead of three 
 and the columbia md. company may have to settle for a lower price he adds 
 life is particularly <unk> for companies that had planned to go public this week 
 <unk> is becoming an investment-banking job requirement 
 robertson <unk> & co. a san francisco investment banking concern has a client that looked forward to making its initial public offering yesterday 
 officers of the company a health-care concern were very discouraged on friday and felt they should n't go public we felt they should says sanford robertson partner in the banking concern 
 as the market dropped friday robertson <unk> slashed the value of the offering by N N 
 yesterday when similar securities rebounded it <unk> the valuation up again 
 as of late yesterday the ipo was still on 
 for many the situation is especially discouraging because the market for <unk> was showing signs of strengthening after several years of weakness 
 we were just beginning to look at the increase in <unk> seeing the light at the end of the tunnel says frank <unk> jr. partner in <unk> funds a beverly hills calif. venture capital concern 
 but the tunnel 's just gotten longer 
 companies planning to go public are definitely taking a second look says allen <unk> senior analyst at the institute for <unk> research fort <unk> fla. which publishes the new issues newsletter on <unk> 
 he <unk> that the recent market slide translated into a N N to N N reduction in ipo proceeds to companies 
 many companies are <unk> 
 <unk> corp. had been planning to sell N N of its stock this week in an ipo that would raise up to $ N million 
 but now peter <unk> president says we 're making decisions on a day-to-day basis 
 <unk> and profitable the <unk> colo. <unk> concern could borrow funds if it decides against an ipo now he says 
 <unk> inc. an atlanta <unk> concern says it is still planning to go ahead with its ipo this week or next unless conditions change 
 it 's a <unk> situation right now says terry <unk> president 
 delayed financings also would affect the operations of many companies 
 sierra tucson cos. a tucson ariz. operator of <unk> centers has a planned doubling of capacity riding on an ipo scheduled for next week 
 william <unk> president says he still thinks the ipo will succeed 
 if it does n't he says the company would have to change its expansion timetable 
 but the market turmoil could be partially beneficial for some small businesses 
 in a sagging market the federal reserve system might flood the market with funds and that should bring interest rates down says leonard t. <unk> vice president of the bank of new england boston 
 james g. <unk> president of <unk> savings bank <unk> mass. says the market turmoil is an <unk> <unk> for small business 
 for small companies he says interest rates are far more important than what happens on stock exchanges 
 mr. <unk> thinks rates are heading down helping small companies 
 peter <unk> biotechnology analyst for <unk> securities international chicago thinks market uncertainty may encourage small companies to form more strategic alliances with big corporations 
 partly because the N market crash made it harder for them to find financing many high-technology concerns have made such alliances recently 
 some even see a silver <unk> in the dark clouds 
 alan wells president of <unk> wells <unk> & co. a new york merger specialist thinks <unk> investors may lose their enthusiasm for leveraged buy-out and giant takeover deals 
 instead they could turn to investing in smaller deals involving smaller companies he says 
 and william e. <unk> jr. a university of new hampshire management professor and director of venture capital network inc. says the market 's gyrations will <unk> the investors ' lack of control in big stock investments 
 this will add to the appeal of small business he says where investors often have a degree of influence 
 bay financial corp. hurt by high debts and deteriorating real estate investments reported a wider loss for the fourth quarter and said it might be forced to seek a bankruptcy-court reorganization if it ca n't <unk> its borrowings 
 bay said a substantial part of its debt outstanding is in default as a result of inability to sell certain properties quickly and lower-than-expected prices for sales made 
 the company said its real estate portfolio is highly leveraged while about two-thirds of its investments are n't <unk> 
 thus it is coming up short on a big bet that quick sales at higher prices would enable it to keep up with mortgage and other debt payments 
 according to its latest annual report about a quarter of the company 's holdings are in massachusetts in the midst of a real-estate slump 
 the company said it had a net loss in its fourth quarter ended june N of $ N million or $ N a share on revenue of $ N million 
 a year earlier the company had a loss of $ N million or $ N a share on revenue of $ N million 
 for the year it had a net loss of $ N million or $ N a share on revenue of $ N million 
 in the previous year it had a loss of $ N million or $ N a share on revenue of $ N million 
 although it is having serious <unk> problems bay said the <unk> value of its holdings minus debt was equal to $ N a share at june N based on a recent <unk> 
 book value per share which is based on investments at cost was a negative $ N a share 
 a year earlier <unk> value per share was $ N and book value was $ N a share 
 annualized interest rates on certain investments as reported by the federal reserve board on a <unk> basis N and wednesday october N N 
 <unk> adjusted for constant maturity 
 <unk> inc. reported a N N decline in third-quarter net income but the company said that excluding unusual gains in both quarters operating profit rose N N 
 the electronics automotive and aerospace concern said third-quarter net was $ N million or N cents a share down from $ N million or $ N a share a year earlier 
 share earnings are reported on a fully diluted basis by company tradition 
 results for the N quarter included a gain of $ N a share from sale of the <unk> pump and <unk> cable units partly offset by a charge of N cents a share for recall of <unk> truck steering systems 
 the latest quarter included a gain of N cents a share as a partial reversal of the recall charge because the reserve established last year exceeded the actual recall costs 
 sales for the quarter rose N N to $ N billion from $ N billion with all three major product groups reporting gains 
 the company said aerospace and defense sales were up N N for the quarter to $ N million and operating profit climbed N N to $ N million mainly because of improved program performance in spacecraft and <unk> contracts 
 automotive sales jumped N N to $ N million mainly because of higher sales of air bags and other passenger restraint systems <unk> said 
 the group had an operating profit of $ N million against a loss of $ N million a year earlier 
 however excluding the year-earlier charge for recall of steering gear operating profit in the latest quarter declined N N reflecting higher start-up and product development expenses in <unk> systems 
 materials and production costs also rose <unk> said 
 the information systems segment had a N N jump sales to $ N million 
 an acquisition accounted for half the sales rise <unk> said 
 operating profit rose <unk> to $ N million from $ N million 
 for the nine months <unk> 's net was $ N million or $ N a share down N N from $ N million or $ N a share a year earlier 
 sales rose N N to $ N billion from $ N billion 
 a <unk> <unk> by an <unk> not <unk> though <unk> <unk> english butler in his <unk> proceeds as if the realistic english novel of <unk> like <unk> herself still ruled the waves 
 in fact <unk> <unk> 's the remains of the day <unk> N pages $ N is both an <unk> to traditional english forms and a dramatic <unk> of them 
 it implies that the british empire was rooted in its subjects ' minds <unk> and <unk> and argues <unk> that its <unk> flaws were <unk> in the defensive <unk> willful <unk> <unk> and especially the <unk> of its domestic <unk> 
 as the <unk> stevens the <unk> butler of <unk> hall <unk> over such <unk> terms as <unk> dignity service and loyalty we see how <unk> <unk> <unk> the soul 
 stevens 's <unk> <unk> of the public and private <unk> like his <unk> master 's <unk> all it was designed to preserve 
 such <unk> <unk> the <unk> 
 the <unk> cuts to the quick 
 it 's N the year the suez crisis marked the final end of empire 
 as he stands on a hill at the beginning of a <unk> motor <unk> from <unk> to <unk> where a former <unk> <unk> perhaps the victim of an unhappy 20-year marriage perhaps he hopes with more <unk> than he will ever acknowledge not <unk> to return to domestic service stevens surveys the view and thereby provides a <unk> a <unk> and the author 's <unk> for the <unk> of the novel we 're reading 
 we call this land of <unk> great britain and there may be those who believe this a somewhat <unk> practice 
 yet i would venture that the landscape of our country alone would justify the use of this <unk> <unk> 
 it is the very lack of obvious drama or <unk> that sets the beauty of our land apart 
 what is <unk> is the <unk> of that beauty its sense of restraint 
 it is as though the land knows of its own beauty of its own <unk> and feels no need to <unk> it 
 in comparison the sorts of sights offered in such places as africa and america though undoubtedly very exciting would i am sure strike the objective <unk> as <unk> on account of their <unk> <unk> 
 an <unk> landscape 
 an <unk> mountain 
 but let stevens continue in his <unk> comic manner his <unk> efforts at <unk> always fail most <unk> this whole question is very <unk> to the question that has caused much debate in our profession over the years what is a great butler 
 his answer is one <unk> of a dignity in keeping with his position 
 such dignity has to do <unk> with a butler 's ability not to abandon the professional being he <unk> 
 he will not be shaken out by external events however surprising <unk> or <unk> 
 <unk> are unable to be <unk> because they are as a breed <unk> of the emotional restraint which only the english race are capable of 
 despite his racial advantage to be a great butler is a <unk> calling one 's <unk> is not unlike general 's headquarters during a battle 
 if for example in the midst of a great social occasion such as an international conference on <unk> the <unk> treaty in N one 's <unk> father himself a great butler once should happen to die of a <unk> one must continue to serve the port please do n't think me <unk> improper in not <unk> to see my father in his <unk> condition just at this moment 
 you see i know my father would have <unk> me to carry on just now 
 it is this kind of dignity and restraint that allows stevens to declare for all its sad associations whenever i recall that evening today i find i do so with a large sense of <unk> 
 we note the imperial public word used to deny private rage and <unk> 
 that stevens himself is not <unk> or <unk> but funny and sad and <unk> is entirely the author 's <unk> 
 mr. <unk> 's ability to create a <unk> <unk> voice that permits him to explore such <unk> domestic cultural and political themes was <unk> clear in his previous novel an artist of the floating world set in japan after the war 
 now shifting his scene from the country he left at five to the england he has lived in for nearly N years he has <unk> a novel in the mode of henry james and <unk> <unk> 
 with great <unk> he considers not only <unk> <unk> and utterly <unk> sexual love but british <unk> the <unk> 's <unk> with democracy and support of <unk> and the moral <unk> of loyalty it is in practice simply not possible to adopt such a critical attitude <unk> an employer and at the same time provide good service 
 this employer <unk> all that i find noble and <unk> 
 i will <unk> devote myself to serving him 
 this is loyalty <unk> <unk> 
 in the end after meeting with the former <unk> stevens sits by the <unk> at <unk> thinking of her and of his employer and declares i trusted 
 i trusted in his <unk> 's wisdom 
 i ca n't even say i made my own mistakes 
 really one has to ask <unk> what dignity is there in that 
 the loyal <unk> has come full circle 
 what is <unk> 
 what is dignity 
 we understand such <unk> wisdom must be <unk> the <unk> of <unk> only spreads her wings at <unk> 
 but as the remains of the day so <unk> demonstrates with quiet <unk> such wisdom can be <unk> <unk> in art 
 mr. <unk> teaches english and <unk> literature at columbia university 
 <unk> corp. said its <unk> subsidiary completed the previously announced sale of its air separation plant and related assets in <unk> wis. to aga gas inc. cleveland 
 the price was n't disclosed 
 the transaction is part of <unk> 's continuing program to shed <unk> 's industrial gas interests and expand the subsidiary 's propane business 
 since june <unk> has <unk> more than $ N million from industrial gas <unk> and reinvested more than $ N million to acquire three propane distributors 
 <unk> is a gas and electric utility and distributes propane nationally through its <unk> subsidiary 
 <unk> <unk> who represents the soviet airline aeroflot here has some <unk> that are wild even by the current standards of perestroika 
 in his office <unk> the runway of shannon airport mr. <unk> <unk> throws out what he calls just ideas 
 first he suggests <unk> group ltd. the international aircraft leasing company based in ireland could lease some of its boeing <unk> to the soviet airline 
 then aer <unk> the irish flag carrier could teach aeroflot pilots to fly the <unk> and the fleet could be based here at shannon airport 
 that 's not all he says 
 aer <unk> the irish airport authority could build a cargo terminal in the soviet union 
 aeroflot could lease some of its cargo planes to aer <unk> through <unk> for a joint-venture cargo airline 
 and then there is his notion of an <unk> charter airline to ferry <unk> to los angeles via shannon 
 have the freedoms of glasnost gone to mr. <unk> 's head 
 hardly 
 the <unk> aviation connection is alive and well here at shannon airport 
 <unk> is indeed talking about leasing western planes to aeroflot and even about buying <unk> <unk> <unk> 
 aer <unk> is in discussions with the soviet carrier about a cargo venture and other possibilities 
 aer <unk> already has so many ventures with aeroflot that its chief executive is studying russian 
 unlikely as it may seem tiny politically neutral ireland has <unk> the mighty soviet airline bureaucracy 
 and as aeroflot struggles to boost its service standards upgrade its fleet and pursue commercial opportunities the irish aviation industry seems poised to benefit 
 irish and soviet people are similar says mr. <unk> 
 they look the same 
 they 're very friendly 
 moreover he says irish companies are small but <unk> 
 we have to study their experience very well he says 
 we must find any way to get business 
 the two groups have been working together since the late 1970s long before soviet joint ventures were the rage in the west 
 aeroflot carried about N million passengers last year and shannon airport the airline 's largest transit airport outside the soviet union saw N aeroflot flights and N passengers pass through 
 an apartment complex down the road is the <unk> and staging area for more than N aeroflot pilots and flight attendants 
 the airport 's biggest supplier of aircraft fuel is the soviet union 
 <unk> from the <unk> port of <unk> each year unload N million gallons of fuel into a special tank farm at the airport 
 what aeroflot does n't pour into its own <unk> <unk> is <unk> to the airport authority which <unk> it to N western carriers including air france trans world airlines and pakistan international airlines 
 aeroflot thus pays its landing fees <unk> and <unk> bills with fuel preserving its hard currency 
 that is n't all 
 last year the irish airport authority in a joint venture with aeroflot opened four <unk> duty-free shops at moscow 's <unk> airport 
 aer <unk> now manages duty-free sales on all aeroflot international flights out of moscow 
 duty-free shops in <unk> 's <unk> airport opened in july and <unk> shops in <unk> hotels and on the <unk> <unk> are coming soon 
 aer <unk> is talking about similar joint ventures in <unk> and in <unk> a black sea resort and even has a <unk> project cooking with the <unk> city of <unk> 
 aeroflot 's international fleet of N planes is being <unk> and <unk> at shannon airport 
 thanks to a new <unk> agreement and the ability of irish travel agents to issue aeroflot tickets tourists here are taking advantage of aeroflot 's reasonable prices to board flights in shannon for holidays in <unk> <unk> and mexico city 
 the <unk> fare to <unk> is N irish punts $ N 
 jamaica costs N punts 
 a formal blessing of sorts was <unk> on this friendship in april when mikhail and <unk> gorbachev stopped here for talks with irish prime minister charles <unk> 
 new trade accords were signed 
 it all started with geography 
 when it opened in N shannon was the first <unk> in europe for <unk> airplanes flying from north america 
 advances in aircraft fuel efficiency over the years made a shannon stop unnecessary for most western air fleets but aeroflot still flies inefficient <unk> that ca n't make it from moscow to managua on one <unk> 
 as a result ireland did n't <unk> the soviets after they shot down a korean air lines jetliner over the sea of japan in N though it suspended direct <unk> flights for two months 
 in fact aer <unk> started <unk> russians from shannon to new york when washington stripped aeroflot of its u.s. landing rights 
 today aer <unk> is making a <unk> of money from its soviet friendship 
 and with those contacts in place it could be relatively simple to add aer <unk> and <unk> to the team 
 then perhaps mr. <unk> 's ideas would n't sound like so much <unk> 
 britain 's industrial production rose N N in august from july and was up N N from august N according to provisional data from the central statistical office 
 output in the energy sector which can vary greatly with swings in the oil market rose N N in august from may but was down N N from a year earlier 
 the latest figures compare with july 's N N <unk> rise and N N year-to-year fall 
 when <unk> corp. begins shipping steel from the world 's first <unk> plant this month it will begin testing the competitive <unk> of its giant competitors 
 the new technology which creates a very thin piece of steel <unk> reduces the costs of making flat-rolled sheets 
 an <unk> kenneth iverson <unk> 's chairman says the company 's plant eventually will make a ton of steel in N man hours compared with four to six man hours at a conventional mill 
 we 've had the russians and chinese and people from india visiting us mr. iverson <unk> 
 everyone in the world is watching us very closely 
 especially his neighbors the major u.s. steelmakers 
 already usx corp. and armco inc. are studying <unk> 's technology to see if they can adopt it 
 says the chief executive officer of a major midwest steel company it 's damn worrisome 
 the <unk> steel industry is about to be turned <unk> by a 1990s technology revolution 
 new efficient and sophisticated processes make it easier for smaller less <unk> companies to make steel at a fraction of what big steel paid decades ago 
 it also enables minimills finally to get a <unk> in the flat-rolled steel market the major steelmakers ' largest most <unk> and until now <unk> market 
 but such <unk> technology is only the beginning 
 eager engineers <unk> <unk> and direct casting which by the end of the 1990s will enable production without coke <unk> and blast <unk> 
 those massive structures while <unk> cost and environmental headaches effectively locked out all but <unk> giants from <unk> 
 there 's a revolution ahead of us that will ultimately change the way we market and distribute steel says william dennis vice president manufacturing and technology for the american iron <unk> and steel institute 
 it is n't that major steelmakers have <unk> ignored high technology 
 in fact they 've spent billions of dollars to boost the percentage of <unk> cast steel to N N in N from N N five years before 
 moreover their balance sheets are rich with diversity their old plants <unk> and work forces lean 
 but that wo n't <unk> 
 it 's no longer enough to beat the guy down the street 
 you have to beat everyone around the world says mr. dennis 
 he wants to see steelmakers more involved in computers and <unk> intelligence 
 the problem they 're <unk> with huge plants that require costly maintenance 
 and try <unk> new dollars free in a market that is softening hurt by a strong dollar and concerned about overcapacity the industry 's <unk> <unk> 
 the technology revolution is going to be very threatening to established producers says peter marcus an analyst with painewebber inc 
 they 've got too much invested in the old stuff and they ca n't get their workers to be flexible 
 no one expects minimills to <unk> major integrated steelmakers who remain the <unk> <unk> of <unk> steel used for autos and refrigerators 
 <unk> 's plant in <unk> ind. ultimately will produce only one million tons annually a drop in the <unk> flat-rolled steel <unk> and it will be years before such plants can compete in the <unk> market 
 still flat-rolled is the steel industry 's bread and butter representing about half of the N million tons of steel expected to be shipped this year 
 moreover the process is n't without its headaches 
 because all operations are connected one equipment failure forces a complete plant shutdown 
 on some days the <unk> plant does n't produce anything 
 at this point the <unk> capacity wo n't make a great <unk> in the integrated market but it does challenge them to develop new markets says james mccall vice president materials at <unk> a technology and <unk> giant based in columbus ohio 
 indeed with demand for steel not growing fast enough to absorb capacity steelmakers will have to change the way they do business 
 in the past says armco 's chief economist john <unk> steelmakers made a product and set it out on the <unk> <unk> 
 we said we 've got a product if you want it you can buy it he says adding now we 're figuring out what people need and are going back to make it 
 armco 's sales representatives visit the general motors corp. 's <unk> assembly plant in kansas city mo. two or three days a week 
 when they determined that gm needed parts more quickly armco convinced a steel service center to build a processing plant nearby so shipments could be delivered within N minutes 
 <unk> such relationships with major clients car and <unk> makers is a means of survival especially when those key clients are relying on a smaller pool of producers and <unk> with plastic and aluminum makers 
 for example when detroit began talking about <unk> cars the american iron and steel institute began a major lobbying effort to show auto makers how they could use steel more efficiently by simply <unk> how a car door is assembled 
 but steelmakers must also find new markets 
 after letting <unk> take the recycling lead a group of the nation 's largest steelmakers started a recycling institute to promote steel cans to an environmentally <unk> nation 
 <unk> 's mr. mccall thinks steelmakers should concentrate more on construction 
 weirton steel corp. weirton w. va. for example is touting to homeowners fashionable steel doors with <unk> glass <unk> as a secure and <unk> alternative to wooden or aluminum ones 
 other steelmakers <unk> steel <unk> covering <unk> 
 still others are looking at overseas markets 
 usx is <unk> drilling pipe to <unk> soviet union 
 this year the nation 's largest steelmaker <unk> its overseas sales operation 
 producers also are trying to <unk> by concentrating on <unk> output such as coated and <unk> products which remain beyond the reach of minimills 
 almost all <unk> programs announced by major steelmakers within the past year involve building <unk> lines used to produce steel for such products as household appliances and car doors 
 but unfortunately that segment is much smaller than the bread-and-butter flat-rolled steel 
 it 's like everyone climbing out of the <unk> ii and getting into a <unk> says john jacobson an analyst with <unk> consultants 
 after a while someone has to go over the side 
 although he does n't expect any <unk> he does see more plants being sold or closed 
 robert crandall with the <unk> institute agrees 
 unless there is an enormous rate of economic growth or a further drop in the dollar it 's unlikely that consumption of u.s. produced steel will grow sufficiently to offset the growth of minimills 
 not to mention the <unk> of imports 
 japanese and european steelmakers which have led the recent technology developments are <unk> awaiting the lifting of trade restraints in N 
 moreover the u.s. can expect more competition from low-cost producing pacific <unk> and latin american countries 
 a taiwanese steelmaker recently announced plans to build a <unk> plant 
 people think of the steel business as an old and mundane <unk> business says mr. iverson 
 they 're dead wrong 
 \* usx ltv bethlehem inland armco national steel 
 \*\* projected 
 polaroid corp. 's <unk> damages case against eastman kodak co. one of the highest stakes corporate trials ever is getting <unk> attention on wall street 
 after N days of <unk> testimony in federal court in boston the trial is being all but ignored by analysts and patent attorneys 
 most have read the pre-trial documents however and estimate kodak will be ordered to pay $ N billion to $ N billion for <unk> on seven polaroid patents 
 that may be the largest patent award ever but it is well below the $ N billion polaroid seeks 
 the highest patent damage award to date was in N when smith international inc. was ordered to pay $ N million to baker hughes inc. for <unk> on a patent on an oil drilling bit seal 
 the two companies later agreed to settle for $ N million 
 few analysts think it is worth their time to <unk> through the polaroid trial testimony 
 it 's like <unk> for gold outside of grand central station 
 you might find something but the chances are low said michael <unk> an analyst at wertheim schroder & co 
 and eugene glazer an analyst at dean witter reynolds inc. said if you hired an attorney to be there all the time and give you a prediction of the eventual award i would be willing to bet that he would be off by a lot 
 a <unk> trial in the early 1980s determined that kodak based in rochester n.y. infringed on patents of polaroid of cambridge mass 
 the main issues remaining are how to calculate damages and whether the infringement was willful and <unk> 
 if so the damages could be tripled 
 two analysts who have read the <unk> david nelson of shearson lehman hutton inc. and <unk> d. <unk> a litigation analyst at <unk> simpson & co. think judge a. david <unk> will decide in kodak 's favor on the willful and <unk> issue 
 mr. <unk> said testimony by kodak 's patent counsel francis t. carr of <unk> & <unk> showed that he worked with kodak <unk> from the outset of the project in an effort to avoid infringement 
 carr told kodak on many occasions to avoid various features because of polaroid 's patent positions and kodak followed his advice in every instance mr. <unk> said 
 but irving <unk> a patent expert at george mason university school of law who is familiar with the case said the fact that seven patents were infringed suggests that infringement was willful 
 it 's difficult to be that consistently wrong 
 observers also wonder whether judge <unk> will use the <unk> method of determining damages which polaroid favors because it would result in a larger award or the reasonable royalty method 
 polaroid claims it could have manufactured and sold all the instant cameras and film sold by kodak if kodak had n't entered the market 
 moreover polaroid contends it could have sold them at a higher price and thus made higher profits because it would n't have been forced to match kodak 's lower prices 
 each side has called a harvard business school professor to testify on that issue 
 kodak hired robert <unk> and polaroid brought in robert j. <unk> 
 there 's nothing that says that people at harvard business school have to agree with each other said mr. <unk> 
 testimony is expected to continue until early december 
 a decision is n't expected until some time next year 
 international business machines corp. said earnings tumbled N N in the third quarter even a bit further than expected <unk> the outlook doubtful for the next few quarters 
 the main reason was a delay in shipment of new high-end disk drives a business that accounts for some N N of ibm 's $ N billion of annual revenue 
 ibm which <unk> the poor results three weeks ago also cited an increase in its leasing business which tends to lock in business long-term but cut revenue in the near term 
 in addition ibm noted that the stronger dollar has cut the value of overseas revenue and earnings when they are translated into dollars 
 earnings fell to $ N million or $ N a share somewhat below securities analysts ' revised expectations of around $ N a share 
 that compared with the year-earlier $ N billion or $ N a share which was inflated by a <unk> gain from the sale of some mci communications corp. stock and by an unspecified amount from a payment by fujitsu ltd. relating to a software dispute 
 revenue climbed N N to $ N billion from $ N billion 
 ibm armonk n.y. remained upbeat 
 the computer giant whose u.s. results have been dismal for years noted that revenue rose again in the u.s. in the third quarter following an increase in the second period 
 the company said in a statement that demand for ibm products and services continues to be good world-wide 
 we do not see anything in the fundamentals of our business that would cause us to change our strategy of investing for profitable growth 
 securities analysts however remained <unk> 
 i think N will be another <unk> year said steve <unk> of first boston 
 jay stevens of dean witter actually cut his per-share earnings estimate to $ N from $ N for N and to $ N from $ N in N because he decided sales would be even weaker than he had expected 
 both estimates would mark declines from the N net of $ N billion or $ N a share which itself was well below the record ibm set in N 
 mr. stevens said he kept a <unk> recommendation on the stock only because all the damage has been done 
 he said the stock has n't traded below N N times book value over the past N years which at the moment <unk> to a stock price of $ N 
 the stock closed yesterday at $ N a share up just $ N in composite trading on the new york stock exchange as the market surged 
 analysts worry that the disk-drive and leasing problems will last at least through the first quarter 
 a key part of the question is how soon does this disk-drive come and how soon does production <unk> up said steve cohen at <unk> financial group 
 and the input i 've had from customers is that it still could be a while 
 on leasing bob <unk> at <unk> research said he thinks ibm has hurt itself <unk> 
 he said ibm has priced its leases aggressively thinking that would help win business 
 but he said ibm would have won the business anyway as a sale to a third party that would have then leased the equipment to the customer 
 he said ibm has not only hurt its short-term revenue outlook but has also been losing money on its leases 
 bob <unk> executive vice president of marketing at <unk> inc. a huge leasing firm said to put it mildly ibm credit has been doing some of the worst economic deals of any leasing company we have ever seen 
 ibm is expected to get a boost soon when it <unk> some new versions of its mainframes 
 but the basic technology in the line is almost five years old which means it is long in the <unk> and competitors are rolling out strong products of their own 
 ibm is gaining momentum in the personal-computer market and is expected to introduce some impressive workstations early next year 
 but it 's hard to squeeze much profit out of the personal-computer business these days and the workstation market while important is too small to rely on for much growth 
 the disk drives will <unk> sell well when they finally become available 
 but the <unk> ibm 's highly successful <unk> line is losing its momentum and some analysts said sales could even decline in the fourth quarter 
 in addition ibm 's growth in software in the third quarter was just N N well below historical levels even when adjusted to reflect last year 's payment from fujitsu and the stronger dollar 
 and expenses up N N in the quarter have stayed <unk> high 
 in the nine months ibm earned $ N billion or $ N a share down N N from the year-earlier $ N billion or $ N a share 
 revenue increased N N to $ N billion from $ N billion 
 pepsico inc. 's chairman said he is more than comfortable with analysts ' estimates that third-quarter earnings rose to at least N cents to $ N a share from N cents the year earlier 
 d. wayne calloway also chief executive officer of the company indicated that he expects analysts to raise their forecasts for N after the company releases its earnings today 
 so far analysts have said they are looking for $ N to $ N a share 
 after today 's announcement that range could increase to $ N to $ N a share 
 the official said he also would be comfortable with that new range 
 in N the soft-drink giant earned $ N a share 
 results for N will include about N cents a share from the <unk> effects of snack-food and bottling company acquisitions 
 in composite trading on the new york stock exchange the company closed yesterday at $ N a share up $ N 
 the company said third-quarter sales are expected to increase N N from $ N billion of last year 's third quarter 
 domestic soft-drink <unk> case sales are estimated to have risen only N N in the third quarter well below the N N to N N growth of recent years but about in line with the rest of the soft-drink industry 
 mr. calloway blamed the slower volume on <unk> weather a <unk> of new products in the industry and to a much lesser extent pricing 
 pepsico said its soft-drink prices were about N N higher in the quarter 
 mr. calloway also noted that soft-drink volume rose a hefty N N in last year 's third quarter making the comparison more difficult 
 international soft-drink volume was up about N N 
 snack-food <unk> increased a strong N N in the third quarter while domestic profit increased in double <unk> mr. calloway said 
 excluding the british snack-food business acquired in july snack-food international <unk> jumped N N with sales strong in spain mexico and brazil 
 total snack-food profit rose N N 
 led by pizza hut and <unk> bell restaurant earnings increased about N N in the third quarter on a N N sales increase 
 <unk> sales for pizza hut rose about N N while <unk> bell 's increased N N as the chain continues to benefit from its <unk> strategy 
 <unk> bell has turned around declining customer counts by permanently lowering the price of its <unk> 
 same <unk> for kentucky fried chicken which has struggled with increased competition in the fast-food chicken market and a lack of new products rose only N N 
 the operation which has been slow to respond to consumers ' shifting <unk> away from fried foods has been developing a <unk> product that may be introduced nationally at the end of next year 
 the new product has performed well in a market test in las vegas nev. mr. calloway said 
 after a four-year $ N billion acquisition binge that brought a major soft-drink company soda <unk> a fast-food chain and an overseas snack-food giant to pepsi mr. calloway said he does n't expect any major acquisition in the next year or so 
 but you never can tell he added you have to take advantage of opportunities 
 president bush chose martin <unk> a longtime friend from texas to be chairman of the federal energy regulatory commission 
 mr. <unk> would succeed <unk> <unk> who is resigning 
 the white house said ms. <unk> a chicago <unk> who previously held posts at the energy department and ferc is leaving to become a vice president of first chicago corp 
 mr. <unk> an attorney in midland texas has been <unk> at the interior department 
 he met mr. bush in the 1950s when the president was a young oil man in midland and mr. <unk> was a lawyer for an oil firm 
 the ferc is a <unk> commission that <unk> billions of dollars of interstate wholesale energy transactions 
 mr. <unk> 's appointment is subject to confirmation by the senate 
 administration officials said a date for ms. <unk> 's departure has n't been set 
 california real estate investment corp. said its directors declared a dividend of five cents per class a common stock payable nov. N to stock of record oct. N 
 the dividend represents the balance of its regular quarterly payout of N cents a share of which half was paid july N in a final distribution prior to its merger with <unk> real estate investment corp. also in july 
 the company said it hopes to resume its schedule of regular quarterly dividends at the end of this year 
 hydro-quebec said it notified central maine power co. it will cancel a $ N billion contract to supply electricity to the maine utility 
 the <unk> owned utility said it is <unk> up the deal because the contract 's objectives ca n't be <unk> 
 hydro-quebec said maine regulators ' refusal to approve the contract earlier this year halted work on transmission lines and stopped negotiations for resale of electricity carried through maine to other utilities 
 it would now be <unk> impossible to begin deliveries in N a hydro-quebec official said 
 the contract was to run from N to N 
 under the contract hydro-quebec was to supply N <unk> of power to central maine power starting in N N <unk> starting in N and N <unk> starting in 
 hydro-quebec said maine regulators ' refusal to approve the contract means central maine power has lost its place in line 
 we wo n't sign any new contracts with deliveries beginning earlier than N the hydro-quebec official said 
 he said hydro-quebec already has some customers in mind for the power that was to be delivered to maine 
 nothing has happened since we signed the contract to undermine our conviction that hydro-quebec was the <unk> most environmentally acceptable choice for meeting a part of our customers ' energy needs through the year N said central maine senior vice president donald f. kelly 
 central maine said it is evaluating many energy options to make up for the lost future power including new energy generation and management proposals from new england and possibly new canadian purchases 
 chicago options traders were among the big victims of friday 's plunging stock market including one small firm that required an emergency $ N million bailout 
 while monday 's rebounding markets helped other investors recoup losses many options customers and professional traders in stock-index options and the options on takeover stocks were left with multimillion-dollar losses traders here and in new york said 
 options traders were hurt worse than others on friday because of the highly volatile nature of options which often rise or fall in value several times the amount of the price change in the individual stock or index of stocks on which they are based 
 thus options traders friday were stuck with losses that also were several times larger than those suffered by many stock traders in new york 
 jeffrey miller of miller <unk> <unk> & co. said that given the high degree of leverage in the options market it is very easy for these guys to get wiped out 
 that may just be the nature of these highly leveraged little creatures 
 an options contract gives the holder the right to buy call or sell put a specific amount of stock or in this case the value of a stock index based on a <unk> price within a given time period 
 options traders who in return for a small fee or premium had previously sold put options on stocks or stock indexes were forced on friday to buy those contracts back at the previously agreed prices which were substantially above those in the market as it was falling 
 they then had no choice in many cases but to sell the contracts at prevailing prices in most cases at a substantial loss 
 the latest round of losses is likely to be a serious blow to the chicago board options exchange which has never fully recovered from the <unk> of black monday when investors fled the market because of huge losses 
 making matters worse was the fact that late friday afternoon the cboe halted stock-index options trading in step with the chicago mercantile exchange 's halt in stock-index futures 
 but while the merc reopened a half hour later the cboe remained closed leaving many options traders unable to make trades that might have reduced the losses 
 cboe chairman <unk> duke <unk> said that unlike the futures market the options exchange has to open in a <unk> that allows each different options series to trade 
 exchange officials <unk> that they would n't have been able to make such a <unk> with the time remaining friday afternoon and with the stock-index futures on the verge of closing for a second and final time the cboe <unk> that its best course was to remain closed 
 the damage was so bad at fossett corp. an options trading firm here that it was forced to transfer its accounts to first options of chicago a unit of continental bank corp. as a result of options trading losses 
 <unk> so far is the only member of a financial exchange to be forced to be taken over by another firm as a result of friday 's rout 
 fossett still had several million dollars in capital left after friday 's close of trading but not enough that regulators worried about another potential market plunge yesterday would let it reopen for trading options exchange officials said 
 thus in an unprecedented arrangement <unk> the <unk> of the transfer the cboe the american stock exchange and the options clearing corp. as well as the firm 's owner stephen fossett put up a total of $ N million to guarantee the customer positions being transferred to the bank holding company subsidiary in case the market plunged again yesterday 
 s. <unk> <unk> iii vice chairman of continental bank first options ' parent company said the firm took on about N accounts formerly held by fossett almost all of them <unk> to professional floor traders 
 steve and his firm were still worth a lot of money mr. <unk> said 
 a package of credit support was put together including the assets of steve and his firm 
 the bailout was <unk> together over the weekend with officials from the federal reserve board securities and exchange commission comptroller of the currency and treasury as well as the options exchanges 
 it was great to have the luxury of time mr. <unk> said 
 at one point an options industry official had to talk the federal reserve bank of chicago 's night <unk> into giving him the home phone number of <unk> <unk> chicago fed president 
 first options did n't have to put any money into the bailout 
 yesterday 's rally in the stock futures and options markets led cboe and amex officials to conclude that the $ N million in guarantees almost certainly wo n't need to be tapped by first options 
 the fossett firm had some losses and liquidity problems during the october N crash as well mr. <unk> said 
 a federal official said that continental bank worked with securities and banking regulators over the weekend to fashion the fossett bailout but that conditions were n't <unk> by those agencies 
 it was their business decision the official said 
 officials at options clearing corp. which processes all options trades for u.s. exchanges said that the $ N million guarantee was unprecedented but was necessary to help insure the integrity of the options markets 
 it was an extraordinary situation that needed extraordinary steps said paul stevens <unk> president and chief operating officer 
 mr. stevens declined to give the specific contributions to the $ N million guarantee from each participant 
 but cboe and amex officials said that options clearing corp. contributed $ N million to the guarantee the cboe put up $ N million the amex added $ N million and $ N million came from mr. fossett 's own assets 
 mr. fossett could n't be reached to comment 
 <unk> foster takes off her <unk> <unk> herself on a <unk> chair and gently <unk> forward 
 with a <unk> tape playing <unk> in the background the <unk> hands of <unk> <unk> begin to work on ms. foster 's neck and <unk> 
 it 's like an <unk> in this room ms. foster <unk> 
 the room in question is the directors ' <unk> of <unk> <unk> co. N floors above the <unk> of pittsburgh 
 there amid oil paintings and marble tables massages are <unk> every wednesday 
 on days that i 'm really busy says ms. foster who works in public relations for the company it seems <unk> to take time off for a massage 
 although such sessions may never replace coffee breaks on-site massage as it is known in the trade is certainly <unk> corporate america 
 in some companies middle managers <unk> massage <unk> into the office fearful that <unk> executives wo n't approve 
 ms. foster 's <unk> is nothing like the <unk> <unk> <unk> enjoyed by <unk> visitors 
 nor does it at all resemble despite what some executives think the more intimate variety offered at specialty <unk> in bad parts of town 
 on the contrary office <unk> usually take place in <unk> <unk> conference rooms where <unk> employees relax in specially designed chairs fully <unk> 
 the massages last N minutes and typically cost about $ N 
 some companies including <unk> even pay part of the fee 
 ms. <unk> has been seeing some N clients a visit since the program was started at <unk> last year 
 anthony <unk> <unk> the company 's chairman <unk> by her firm touch saying regular massages are a <unk> for his old football injuries 
 massage advocates say that <unk> the head <unk> neck and back can go a long way toward easing tension and improving morale 
 they also insist that <unk> is a basic need as powerful as the need for food or sleep and that the office is as good a place as any to do it 
 the blood flows to your head you feel <unk> and you do n't feel tension around the head or neck says <unk> <unk> an operations supervisor at the social security office in grand <unk> mich. where massages began last month 
 when you leave the room after your massage people say you look like you 're <unk> 
 adds <unk> <unk> the <unk> <unk> who <unk> her trade in the grand <unk> office they fall in love with my hands 
 not everyone however is at ease with office massage 
 three years ago the internal revenue service 's office in san jose calif. opened its doors to on-site massage 
 and even though employees paid the bill taxpayers <unk> 
 sometimes with the release of stress you hear <unk> and <unk> coming out of the room explains morgan banks the agency 's health specialist 
 and you ca n't have taxpayers coming into an audit hearing <unk> and <unk> 
 last month the complaints <unk> and the massages ended 
 now we 're looking for a room with <unk> walls ms. banks says 
 massage also has an image problem to contend with 
 some <unk> have tried to get around this by calling themselves <unk> and describing their office visits as <unk> breaks 
 but massage no matter how <unk> is still associated in many minds with <unk> fronts for <unk> and that makes some executives nervous 
 last year the research and development division of weyerhaeuser co. the large <unk> concern invited a <unk> to its <unk> wash. offices 
 phil <unk> a software engineer was an eager customer 
 you build up a lot of tension working at a terminal all day he says 
 but after about eight months the vice president of the division ed <unk> learned about the sessions and brought them to a halt 
 mr. <unk> says his only beef was that the massages were being given in a company conference room the department 's <unk> health facility would have been fine 
 in my view massages should be managed with an appropriate <unk> of males and <unk> around he says 
 given such attitudes some corporate <unk> prefer to go about their business quietly 
 russell <unk> of park <unk> n.j. says he has been working for the past year at a huge chemical and manufacturing concern in new york <unk> to the company 's executives 
 he visits the same department every two or three weeks 
 his massage chair is kept in a <unk> and a secretary <unk> him past security 
 this is common with a lot of large companies says mr. <unk> who worked for american telephone & telegraph co. for N years before choosing his current trade 
 managers he contends are afraid how they 're going to look in the eyes of their <unk> 
 my vision is to change human <unk> <unk> touch 
 my attitude is let 's come out of the <unk> 
 occasionally all that 's needed is a little <unk> 
 <unk> <unk> a st. louis <unk> won over officials at emerson electric co. a maker of electrical and electronic equipment by providing documents and other articles <unk> the <unk> benefits of massage 
 she notes that she also <unk> <unk> during her weekly visits 
 i pull my hair back wear a little makeup and look corporate says ms. <unk> who has been visiting emerson since january 
 if i go in there as i normally dress they 'd ask who is this <unk> 
 the <unk> father of on-site massage is david palmer a <unk> san francisco <unk> whose mission is to save the <unk> <unk> 
 to help do this mr. palmer developed a portable massage chair three years ago that he hopes will bring structured <unk> into mainstream america 
 the culture is not ready to take off its clothes lie down and be touched for an hour for $ N he says 
 the idea is to keep the clothes on and to keep people <unk> 
 the chair is a way to package massage 
 sitting in one of mr. palmer 's chairs which cost $ N and have since been <unk> by others is a bit like <unk> a <unk> 
 customers lean forward rest their <unk> on side supports and <unk> their face in <unk> on the back of the chair 
 ms. <unk> the grand <unk> <unk> says she has heard the <unk> <unk> compared to something out of the spanish <unk> 
 mr. palmer who serves as president of the on-site massage association and writes an industry newsletter says some N practitioners out of about N certified <unk> across the country now use massage chairs in the workplace as well as on street corners in airports and <unk> and at <unk> and other <unk> where <unk> people can be found 
 <unk> <unk> a <unk> in <unk> colo. had a scary experience while <unk> a man in a <unk> supermarket as part of a store promotion 
 three minutes into the massage the man <unk> up began shaking and turned red 
 <unk> were called 
 a week later the man told mr. <unk> he had suffered a mild heart attack unrelated to the massage 
 it was a powerful point in my career says the <unk> mr. <unk> who has since taken out a $ N million liability policy for his business 
 but he pulled through and after the <unk> left there were still six people in line waiting for a massage 
 the next woman was older and i was afraid to touch her 
 but it 's like falling off a horse and getting back on 
 despite the number of fans that office massage has won some <unk> look down on it arguing that naked <unk> <unk> are the only way to go 
 linda <unk> who does <unk> work in pittsburgh says that while on-site massage is better than nothing tired workers should realize it is only the tip of the <unk> 
 whole areas of their bodies are neglected she says adding that clothes <unk> the experience 
 there 's nothing like skin to skin 
 in what is believed to be the first cancellation of a loan to china since the june N killings in beijing an international bank syndicate has terminated a $ N million credit for a shanghai property project 
 the syndicate led by <unk> asia ltd. agreed last november to provide the loan to asia development corp. a u.s. property developer 
 but several weeks ago in the wake of the beijing killings the loan was canceled according to bankers and executives close to the project 
 asia development and <unk> declined to comment on the move 
 lenders had doubts about the project even before june N but the harsh crackdown which caused many businesses to <unk> their china transactions gave the banks the out they wanted says an official close to the shanghai venture 
 the decision to cancel the loan <unk> the tough attitude bankers have taken toward china since june N 
 while some commercial lending has resumed international lenders remain nervous about china 's economic troubles and foreign debt $ N billion at the end of N 
 many loans are being <unk> especially those tied to the hotel sector which has been hit hard by a <unk> N tourism slump 
 many bankers view <unk> loans as particularly risky 
 the canceled shanghai loan leaves asia development a small concern <unk> with a <unk> <unk> apartment building and heavy debts 
 the company owes $ N million to the <unk> on group the project 's hong kong contractor and a significant though unspecified amount in legal fees to <unk> brothers a u.s. law firm the sources say 
 the project known as lotus mansion has been mired in controversy 
 when the loan agreement was announced it was hailed as one of the first western-style financing transactions ever used in china 
 unlike most loans to china there was no chinese <unk> 
 instead the banks secured a promise from state-owned bank of communications that it would lend asia development the entire $ N million at maturity to finance repayment of the original borrowing 
 the loan was to have <unk> in just two to three years as soon as construction was completed 
 but in a letter sent in august to asia development <unk> said the loan was terminated because the developer had failed to deliver adequate financial data and pay certain fees to the <unk> committee on time according to officials close to the project 
 creditors involved in the project contend however that the termination actually had nothing to do with these technical violations 
 instead the creditors say the loan fell victim to nervousness about china 's political turmoil as well as to concern about the loan 's security 
 the bank syndicate is made up mostly of european banks but it includes china 's state-owned <unk> industrial bank 
 the N banks in the syndicate sustained no monetary losses because none of the credit facility had been drawn down 
 k mart corp. agreed to acquire pace membership warehouse inc. for $ N a share or $ N million in a move to expand its presence in the rapidly growing <unk> business 
 the proposed merger comes as k mart 's profit is declining and sales at its core discount stores are rising more slowly than at such competitors as <unk> stores inc 
 k mart based in <unk> mich. recently said net income would fall for the third consecutive quarter after a N N drop in the first half of its current fiscal year 
 the membership <unk> concept has great potential the company 's chairman joseph e. <unk> said in a statement 
 warehouse clubs typically carry general merchandise and food products which they sell for close to wholesale prices in <unk> stores 
 shoppers many of whom operate small businesses pay annual membership fees which provide an income base for the stores 
 k mart tested the <unk> sector last year with its acquisition of a N N interest in <unk> inc 
 but the <unk> chain which operates as a joint venture between k mart and shv holdings n.v. of the netherlands has only six stores and annual sales that one analyst estimated at about $ N million 
 <unk> pace based in <unk> colo. operates N <unk> stores 
 the company had losses for several years before turning profitable in fiscal N 
 in the year ended jan. N pace <unk> up profit of $ N million or N cents a share after a tax-loss carry-forward on sales of $ N billion and analysts expect its results to continue to improve 
 the company turned the corner fairly recently in profitability said <unk> <unk> of painewebber inc. who had been forecasting a N N jump in pace 's net income from operations this year and another N N increase next year 
 warehouse productivity is really beginning to take off 
 but some analysts contend k mart has agreed to pay too much for pace 
 even if you look at it as a turnaround situation it 's expensive said wayne <unk> of prudential-bache securities inc 
 in my opinion you would only pay that kind of price if you were getting a premier player in the industry 
 ms. <unk> of painewebber raised a more fundamental question about the deal 
 if k mart ca n't get its act together in discounting why is it spending time worrying about other growing markets 
 she said i would say k mart 's number one job is to address its market-share loss in discount stores which longer-term will lead to improved profit margins 
 at that point perhaps diversification would be appropriate 
 but k mart 's mr. <unk> is intent on pushing the company into new retail businesses 
 for instance k mart is opening big food and general merchandise stores called <unk> and <unk> stores specializing in office products and sporting goods 
 it also operates <unk> pay less drug stores and builders square home improvement stores 
 in composite trading on the new york stock exchange k mart closed yesterday at $ N a share up N cents 
 pace rose $ N to close at $ N a share in national over-the-counter trading 
 a k mart spokesman said the acquisition would be financed with short-term borrowings 
 under terms of the agreement a k mart subsidiary will soon make a tender offer for pace shares 
 among the conditions of the offer is that pace shareholders tender a majority of the company 's shares outstanding 
 the companies said pace would ill continue to operate under its present management 
 g. william <unk> president of <unk> stations was named chief executive officer of the unit of this media company effective jan. N 
 he will succeed joel <unk> who will remain a vice president of the company and continue to represent <unk> stations in several industry organizations the company said 
 literally 
 traders nervously watching their quotron <unk> machines yesterday morning were stunned to see the dow jones industrial average plummet N points in seconds 
 a minute later it soared N points then <unk> back down N points N below friday 's close 
 it was crazy said neil <unk> general partner of <unk> capital corp 
 it was like flying without a pilot in the front of the plane 
 but those who said this ca n't be happening were right 
 the <unk> were wrong 
 quotron systems inc. a citicorp unit blamed the <unk> <unk> on a timing problem in our software caused by the enormous early volume about N million shares in the first hour of new york stock exchange trading 
 the prices of the individual stocks that make up the average were correct quotron said but the average was wrong 
 meanwhile there was an awful lot of confusion 
 at about N a.m. on the over-the-counter trading desk at a major brokerage firm a veteran trader who buys and sells some of the most active stocks looked at a senior official and asked what 's going on 
 is the market up or down 
 at the time quotron was reporting that the industrial average was down N points 
 in fact it was up N 
 <unk> stark a vice president who heads the trading desk at dillon read capital corp. said that once she figured out the quotron numbers were wrong she called brokers to tell them 
 it 's been kind of <unk> to say the least she said 
 to <unk> matters further when ual corp. stock finally opened on the new york stock exchange at N a.m. the price was listed at $ N a share up about $ N from friday in fact its true price was $ N down $ N 
 that was the new york stock exchange 's <unk> 
 a spokesman cited a technical error and declined to elaborate 
 and there were other <unk> 
 when the market opened at N a.m. est a reporter for the reuters <unk> <unk> the industrial average 's drop as a N N decline when it really was down N N 
 it was a case of human error which we found almost immediately and corrected a spokesman for reuter in new york said 
 meanwhile some currency traders at west german banks in frankfurt said they sold dollars on the news and had to buy them back later at higher prices 
 but it was the quotron problems that had <unk> effects 
 dillon read 's ms. stark said in early afternoon that she was still <unk> prices and other data as subject to <unk> and she said portfolio managers continued to question the numbers they saw on the screen 
 it was the second time in less than a week that quotron has had problems <unk> the industrial average 
 at the start of trading last wednesday the average appeared to plunge more than N points 
 actually it was down only a few points at the time 
 quotron said that <unk> which lasted nine minutes resulted from a failure to adjust for a <unk> stock split at philip morris <unk> 
 a quotron spokeswoman said recent software changes may have contributed to yesterday 's problems 
 she said quotron switched to a backup system until the problems were corrected 
 today of all days she <unk> 
 the eyes of the world were watching us 
 steven f. <unk> was named a senior vice president of this graphics equipment company 
 he retains his current positions as chief strategic officer of am international and president of am ventures 
 houston attorney dale friend representing a plaintiff in a damage suit says he has negotiated a settlement that will strike a blow for his client 
 literally 
 it turns out mr. friend 's client <unk> parks of cincinnati did n't like the way defense attorney tom alexander acted during the legal proceedings 
 so she has agreed to <unk> monetary damages against mr. alexander 's client in return for the right to <unk> the attorney 
 ms. parks 's mother also gets to <unk> mr. alexander 
 so does mr. friend and his law partner <unk> <unk> 
 the bizarre arrangement grows out of mr. alexander 's representation of <unk> construction co. one of several defendants in a <unk> death lawsuit brought by ms. parks the widow of a construction worker killed in january N while working on a new houston convention center 
 last month mr. friend says mr. alexander 's associate agreed that <unk> would pay $ N as part of an overall settlement 
 but mr. alexander <unk> the deal at the last minute <unk> the plaintiff 's side 
 i never agreed to it mr. alexander says adding that it 's not necessary to pay these <unk> settlements 
 when ms. parks and her mother heard about what had happened mr. friend says they <unk> that they would like to give mr. alexander a good <unk> 
 mr. friend says he passed that along to his adversary and soon they were talking about the ground rules under which <unk> could keep its money and the plaintiffs could take a shot at mr. alexander 
 although time and place have yet to be determined some details are in place 
 mr. friend says he agreed to strike mr. alexander above the belt 
 ms. parks and her mother indicated they want to catch him <unk> from behind he says 
 mr. alexander for his part insisted that the <unk> ca n't <unk> their <unk> rights to anyone else ca n't use a blunt instrument and ca n't take a running start 
 mr. alexander says he <unk> the agreement which has n't been submitted to a judge as something of a joke 
 however he acknowledges they have the option of taking a <unk> at me if they really want to 
 mr. friend says his side is dead serious 
 although they do n't <unk> delivering any <unk> <unk> he says that mr. alexander will be asked to sign a release from liability just in case 
 after two years of drought it <unk> money in the stock-index futures markets yesterday 
 as financial markets rebounded trading volume in the chicago mercantile exchange 's huge standard & poor 's N stock-index futures pit soared reaching <unk> levels for the first time since october N 
 the sudden influx of liquidity enabled several traders to reap <unk> <unk> in a matter of minutes as prices soared traders said 
 guys were <unk> money in there today said john <unk> a futures broker for elders futures inc. in chicago 
 the s&p N futures contract which moves in <unk> of an index point under normal conditions jumped two to three points in seconds early yesterday after an initial downturn then moved strongly higher the rest of the day 
 each index point represents a $ N profit for each s&p N contract held 
 for the first time since the N crash traders said that they were able to trade several hundred s&p N contracts at a time in a highly liquid market 
 many institutions and individual investors have <unk> away from stock-index futures blaming them for speeding the stock market crash on black monday two years ago 
 since the crash many futures traders have n't assumed large positions for fear that the s&p N market with much of its customer order flow missing would dry up if prices turned against them 
 more than N traders <unk> the s&p N futures pit to await the opening bell 
 traders were shouting bids and offers a full five minutes before the start of trading at N am 
 the contract fell five points at the open to N the maximum opening move allowed under <unk> adopted by the merc to stem a market slide 
 but several traders quickly stepped up and bid for contracts driving prices sharply higher 
 the market <unk> near friday 's closing price of N for about a half hour moving several index points higher or lower in seconds then broke higher and did n't look back 
 the s&p N contract that expires in december closed up a record N points on volume of nearly N contracts 
 traders five feet from each other were making bids and offers that were a full point apart said one s&p N broker 
 you could buy at the bid and sell at the offer and make a fortune he <unk> 
 several of wall street 's largest securities firms including salomon brothers inc. and painewebber inc. were also large buyers traders said 
 salomon brothers was among the largest sellers of stock-index futures last week traders said 
 brokerage firms as a rule do n't comment on their market activity 
 unlike the week following black monday two years ago individual traders in the s&p N pit were also being <unk> <unk> about their one-day profits 
 with the fbi around here <unk> rights are a thing of the past said one trader referring to the federal investigation of futures trading that so far has resulted in N <unk> <unk> against individuals on the merc and the chicago board of trade 
 the market for $ N billion of high-yield junk bonds regained some of its footing as the dow jones industrial average rebounded from friday 's plunge 
 but the junk recovery led by the bellwether rjr holdings bonds was <unk> 
 no trading existed for the vast majority of junk bonds securities industry officials said 
 on friday trading in practically every issue ground to a halt as potential buyers fled and brokerage firms were unwilling to provide bid and offer prices for most issues 
 nothing traded on friday and people were n't really sure where the market should have opened yesterday said raymond <unk> <unk> of merchant banking at merrill lynch & co 
 but we had a fairly active day yesterday 
 at drexel burnham lambert inc. the leading underwriter of junk bonds i was prepared to be in a very bad mood tonight said david <unk> a junk bond trader 
 now i feel maybe there 's a little bit of euphoria 
 but before the stock market rebounded from a sharp early sell-off yesterday he said you could n't buy junk bonds and you could n't give them away 
 yesterday 's rally was led by rjr holdings N N N bonds which initially tumbled three points or $ N for each $ N face amount to N N before rebounding to N N 
 bonds issued by <unk> <unk> <unk> and american standard also showed big gains recovering almost all their losses from friday and early yesterday 
 but traders said the junk bond market increasingly is <unk> into a <unk> group in which trades can be executed easily and a larger group of <unk> bonds in which liquidity or the ability to trade without too much difficulty has steadily deteriorated this year 
 liquidity has n't returned to the vast middle ground of the market said mr. <unk> of merrill 
 the <unk> are still <unk> said mr. <unk> of drexel 
 analysts are concerned that much of the high-yield market will remain <unk> for investors 
 paul <unk> associate professor at the massachusetts institute of technology 's sloan school of management citing a pattern of junk-bond default rates that are low in the early years after issuance and rise later says we 're now in a period where we 're starting to see defaults from the big issue years of N to N 
 mark <unk> a senior vice president at standard & poor 's corp. confirms that there is increasing concern about the future liquidity of the junk bond market 
 junk bonds are a highly <unk> market said lewis <unk> vice chairman of smith barney harris upham & co 
 there 's a whole bunch of stuff that 's money good and a whole bunch of stuff that 's not so good 
 analysts at standard & poor 's say junk bond offerings by tightly stretched issuers seem to be growing 
 almost $ N billion of junk bonds that are considered <unk> include issues from sci tv gillette holdings not related to gillette co. <unk> <unk> furniture allied stores federated department stores national <unk> <unk> holdings <unk> leaseway transportation and price communications 
 you could still have some very bad times ahead said mr. <unk> 
 it 's possible to have a N N default rate in one year because we 're already seeing big problems in the midst of a pretty strong economy 
 i 'm certainly not comfortable saying we 've seen the bottom 
 but yesterday 's rally among good junk was a badly needed <unk> for the market 
 many issues bounced off the floor mr. <unk> said and benchmark junk issues recovered all of their losses from friday and early yesterday 
 in contrast he says the stock market gained back only about half what it lost friday and the government bond market lost about half what it gained friday 
 traders said yesterday 's rally was fueled by insurance companies looking for bargains after a drastic slide in prices the past month 
 in addition mutual funds did n't appear to be major sellers of high-yield securities as was expected 
 sometimes a <unk> is healthy said drexel 's mr. <unk> 
 people will learn to be more <unk> 
 if they do good credit analysis they will avoid the hand <unk> 
 i think the market is in good shape 
 should you really own stocks 
 that 's a question a lot of people are asking following the stock market 's stunning display of volatility 
 <unk> financially and <unk> by friday 's <unk> 190-point drop in the dow jones industrial average and yesterday 's <unk> rebound they 're wondering if an individual has any business being in the market 
 the answer say academic researchers money managers and investment specialists is yes as long as you approach the stock market as an investor 
 but they say people should n't try to be traders who buy and sell in an effort to ride the latest economic trend or catch the next hot stock 
 the case for owning stocks over the long-term is compelling 
 if you look at N years worth of investment history including the great depression and every bear market since stocks have outperformed almost everything an individual could have owned by a long shot says barry berlin vice president at first wachovia capital management 
 a dollar invested in the stock market in N would have grown to $ N by the end of last june according to laurence <unk> managing director at <unk> associates inc 
 but a dollar invested in long-term bonds in N would have grown to only $ N and a dollar put in treasury bills would equal a <unk> $ N 
 the longer the time period the less risk there is of losing money in the stock market 
 over time the odds increasingly favor the investor with a diversified portfolio 
 for instance ken gregory a san francisco money manager <unk> that if an investor holds a basket of stocks that tracks the standard & poor 's 500-stock index the chance of losing money is N N to N N over a 10-year period compared with N N over three years and N N over one year 
 if you do n't need the money for N years there 's a <unk> case for sticking to a steady core of stocks mr. gregory says 
 stock-market investments also help balance the other assets an individual owns says john <unk> jr. president of the institute of certified financial planners 
 stocks have a place in an investors ' portfolio along with real estate bonds international securities and cash he says 
 there are some important <unk> before investing in stocks individuals should have at least three to six months of living expenses set aside in the bank most investment advisers say 
 individuals also should focus on building equity in a home which provides some protection against inflation as well as a <unk> that can be <unk> in late in life to help cover the cost of retirement living 
 people also should n't invest money in stocks that they 'll need in the near future for example for college tuition payments or retirement expenses 
 you may have to sell your stocks at a time when the market takes a plunge says mr. <unk> a del <unk> calif. financial planner 
 but once the <unk> are covered then i would start to invest even if it 's as little as $ N says michael lipper president of lipper analytical services inc 
 he says individuals should consider not just stocks but other long-term investments such as high-quality bonds 
 despite the strong case for stocks however most pros warn that individuals should n't try to profit from short-term developments 
 it 's very difficult to do says donald holt a market strategist for <unk> morgan securities a los angeles brokerage firm 
 our markets move so fast and they are so volatile there 's no way the average investor can compete with the pros 
 individual investors face high transaction costs of moving in and out of the market 
 the cost of executing stock orders <unk> from brokerage to brokerage and with the size of the order but N N of the order 's value is an average says stephen boesel manager of t. rowe price 's growth and income mutual fund 
 and assuming their first investment is successful investors will have to pay taxes on their gains 
 that can reduce returns by a third or more once local taxes are included mr. lipper says 
 after that individual traders face the risk that the new investment they choose wo n't perform well so their trading costs could be sustained for nothing 
 it 's very tough for most individuals to <unk> the mutual funds or the market says mr. lipper 
 you should really think twice if you think you can <unk> the system 
 then too many individual investors lack the <unk> emotional makeup professionals say is needed to plunge in and out of the market 
 so what 's the best way to buy stocks 
 unless an individual has a minimum of between $ N and $ N to invest in stocks he 's still better off in mutual funds than in individual stocks in terms of getting enough attention from a competent broker says mr. lipper 
 still he adds i could see owning both given that individuals often have an advantage over big investors in <unk> special situations based on their own <unk> he adds 
 george douglas first vice president at drexel burnham lambert inc. says that individuals have a particular edge now in small to <unk> niche companies with exciting earnings prospects a traditional <unk> ground for small investors 
 this growth sector which usually carries a <unk> multiple about twice that of the standard & poor 's N happens to include some of the market 's most attractive bargains right now 
 it 's now selling at a multiple about even with the market says mr. douglas 
 moreover mr. douglas sees a revival of institutional interest in smaller growth stocks that could boost the performance of these stocks in the medium term 
 many big wall street brokerage firms who eliminated their research effort in stocks of emerging growth companies a few years ago are now <unk> coverage of this area he notes 
 we 're seeing a real turnaround in interest in small growth stocks he says 
 the pros <unk> advise individuals to stay away from the latest investment fad 
 they say that 's especially important this late in the growth phase of the economic cycle when there 's no robust bull market to bail investors out of their mistakes 
 friday 's correction presents a pretty good buying opportunity but let 's not speculate at this point in the business cycle says <unk> <unk> chief equity portfolio strategist at first boston corp 
 buy stocks on weakness for their long-term fundamentals he says 
 in the long run investment advisers say most investors will be better off using the <unk> averaging method of buying stocks 
 in this method a person invests a regular amount every month or quarter into the stock market whether the market is up or down 
 that cuts the risk mr. gregory the san francisco money manager points out 
 when the market is low you are buying more shares and when it 's high you 're buying fewer shares he says 
 otherwise if you put all your money in at one time by sheer bad luck you might pick a terrible time and have to wait three years to get even mr. gregory says 
 a disciplined program will work the best mr. boesel says 
 one of the hardest things to do is to buy stocks when the market is down he says 
 but that 's just the time when you should be buying them 
 compound annual returns including price changes and income from interest and dividends 
 \* actual performance not annualized 
 source <unk> associates inc 
 the following issues were recently filed with the securities and exchange commission <unk> co. initial public offering of two million shares of common stock of which N shares are being offered by the company and N shares by holders via blunt ellis & <unk> inc. and robert w. <unk> & co 
 giant industries inc. initial public offering of N common shares of which N will be sold by the company and the rest by holders via shearson lehman hutton inc. and <unk> <unk> inc 
 <unk> fund inc. initial offering of five million common shares via smith barney harris upham & co 
 <unk> overseas ltd. initial offering of four million common shares of which N million will be sold in the u.s. and the balance outside the u.s. via smith barney harris upham & co. and <unk> <unk> & co 
 donald trump who faced rising doubt about his bid for american airlines parent amr corp. even before a united airlines buy-out came apart friday withdrew his $ N billion offer 
 separately bankers representing the group trying to buy united 's parent ual corp. met with other banks about <unk> that purchase at a lower price possibly around $ N a share or $ N billion 
 but a lower bid could face rejection by the ual board 
 mr. trump who vowed wednesday to go forward with the bid said he was dropping it in light of the recent change in market conditions 
 he said he might now sell his amr stake buy more shares or make another offer at a lower price 
 the manhattan real-estate developer acted after the ual buyers failed to obtain financing for their earlier $ 300-a-share bid which sparked a selling panic among that <unk> into a 190-point drop friday in the dow jones industrial average 
 news about ual and amr whose shares never reopened after trading was halted friday for the ual announcement sent both stocks <unk> in composite trading on the new york stock exchange 
 ual tumbled $ N to $ N on volume of N million shares and amr declined by $ N to $ N as N million shares changed hands 
 together the two stocks <unk> havoc among takeover stock traders and caused a N N drop in the dow jones transportation average second in size only to the stock-market crash of oct. N N 
 some said friday 's market debacle had given mr. trump an excuse to bail out of an offer that showed signs of <unk> even before problems emerged with the ual deal 
 after reaching an intraday high of $ N the day mr. trump disclosed his bid oct. N amr 's stock had retreated as low as $ N last week 
 some takeover stock traders had been betting against mr. trump because he has a record of disclosing stakes in companies that are potential takeover targets then selling at a profit without making a bid 
 he still has n't proven his <unk> as a <unk> <unk> artist said airline analyst kevin murphy of morgan stanley & co 
 he 's done this thing where he 'll buy a little bit of a company and then trade out of it 
 he 's written this book the art of the deal 
 why does n't he just follow through on one of these things 
 mr. trump withdrew his bid before the amr board which is due to meet tomorrow ever formally considered it 
 amr had weighed a wide range of possible responses from flat rejection to <unk> and leveraged buy-outs that might have included either employees a <unk> buyer such as texas billionaire robert bass or both 
 amr had also sought to <unk> mr. trump in congress by lobbying for legislation that would have bolstered the authority of the transportation department to reject airline buy-outs 
 yesterday mr. trump tried to put the blame for the collapse of the ual deal on congress saying it was rushing through a bill to protect amr executives 
 i believe that the perception that legislation in this area may be hastily approved contributed to the collapse of the ual transaction and the resulting disruption in the financial markets experienced this past friday mr. trump wrote members of congress 
 amr declined to comment and mr. trump did n't respond to requests for interviews 
 mr. trump never said how much amr stock he had bought only that his holdings were substantial 
 however he only received federal clearance to buy more than $ N million of the stock on sept. N when the price rose $ N a share to $ N 
 between then and his bid on oct. N the price <unk> between $ N and $ N 
 in an attempt to persuade investors that his bid was n't just a stock play mr. trump promised last week to notify the market before selling any shares 
 amr was trading at around $ N yesterday before his withdrawal announcement then immediately fell to about $ N 
 assuming that he paid a rough average price of $ N a share and assuming he did n't sell before his announcement reached the market mr. trump could be sitting with a modest loss with the stock at $ N 
 some analysts said amr chairman robert crandall might seize the opportunity presented by the stock price drop to protect the nation 's largest airline with a defensive transaction such as the sale of stock to a friendly holder or company employees 
 however other knowledgeable observers said they believed mr. crandall and the amr board might well decide to tough it out without taking any extra steps 
 some analysts said they believed mr. trump whose <unk> <unk> had been viewed by some as a reason to believe he would n't back out might come back with a lower bid 
 ray <unk> of dillon read & co. said mr. trump is stepping back and waiting for the dust to settle 
 i 'm sure he still wants amr 
 but others remained skeptical 
 i was never sure donald trump really wanted to take amr said john <unk> a bond analyst with shearson lehman hutton inc 
 what happened with united was a <unk> way for him to <unk> out 
 mr. trump never obtained financing for his bid 
 that skepticism would leave him with an even greater credibility problem should he return that would <unk> him in any effort to oust the board in a proxy fight 
 meanwhile citicorp and chase manhattan corp. the two lead lenders on the ual buy-out met with other banks yesterday to determine if they would be willing to finance the buy-out at a lower price 
 officials familiar with the talks said citicorp had discussed lowering the offer to $ N a share but said that price was a talking point and that no decision has been made 
 at $ N a share the group would have to borrow about $ N billion from banks 
 the first ual deal unraveled after citibank and chase could n't raise $ N billion 
 citibank and chase had agreed to commit $ N billion and said they were highly confident of raising another $ N billion 
 together citicorp and chase received $ N million in fees to raise the rest of the financing 
 but other banks balked at the low interest rate and banking fees the ual group was willing to pay them 
 officials familiar with the bank talks said the ual buy-out group ual pilots management and british airways plc is now willing to pay higher bank fees and interest but is n't likely to boost its $ N million equity contribution 
 nor is the group likely to come forward with a revised offer within the next N hours despite the hopes of many traders 
 the group 's advisers want to make certain they have firm bank commitments the second time around 
 even if the buy-out group is able to obtain financing the transaction still faces obstacles 
 ual 's board could reject the new price as too low especially since there are n't any competing bids 
 los angeles investor marvin davis whose $ <unk> offer was rejected by ual 's board has n't shown signs of pursuing a $ 300-a-share <unk> bid he made last month 
 in addition the coalition of labor and management longtime enemies who joined forces only under the threat of mr. davis 's bid could break apart now 
 the group 's resilience gets its first test today when N top pilot union leaders <unk> outside chicago in a previously scheduled meeting 
 union chairman <unk> rick <unk> faces the tough task of explaining why banks refused to finance a buy-out the members approved <unk> last week 
 the pilot union is <unk> to pursue an acquisition whatever the board decides 
 but if the board <unk> a reduced bid and decides to explore other alternatives it could transform what has been a <unk> process into an <unk> one 
 the pilots could play <unk> by noting they are crucial to any sale or restructuring because they can refuse to fly the airplanes 
 if they were to insist on a low bid of say $ N a share the board might n't be able to obtain a higher offer from other bidders because banks might hesitate to finance a transaction the pilots oppose 
 also because ual chairman stephen wolf and other ual executives have joined the pilots ' bid the board might be forced to exclude him from its deliberations in order to be fair to other bidders 
 that could cost him the chance to influence the outcome and perhaps join the winning bidder 
 influential members of the house ways and means committee introduced legislation that would restrict how the new savings-and-loan bailout agency can raise capital creating another potential obstacle to the government 's sale of sick thrifts 
 the bill whose backers include chairman dan <unk> d. ill. would prevent the resolution trust corp. from raising temporary working capital by having an <unk> bank or thrift issue debt that would n't be counted on the federal budget 
 the bill intends to restrict the rtc to treasury borrowings only unless the agency receives specific congressional authorization 
 such agency <unk> borrowing is unauthorized and expensive far more expensive than direct treasury borrowing said rep. <unk> stark d. calif. the bill 's chief sponsor 
 the complex financing plan in the s&l bailout law includes raising $ N billion from debt issued by the newly created rtc 
 this financing system was created in the new law in order to keep the bailout spending from swelling the budget deficit 
 another $ N billion would be raised through treasury bonds which pay lower interest rates 
 but the rtc also requires working capital to maintain the bad assets of thrifts that are sold until the assets can be sold separately 
 that debt would be paid off as the assets are sold leaving the total spending for the bailout at $ N billion or $ N billion including interest over N years 
 it 's a problem that clearly has to be resolved said david <unk> executive director of the rtc 
 the agency has already spent roughly $ N billion selling N insolvent s&ls and it is likely to sell or merge N by the time the bailout concludes 
 <unk> other working capital he said the rtc would be forced to delay other thrift resolutions until cash could be raised by selling the bad assets 
 we would have to wait until we have collected on those assets before we can move forward he said 
 the complicated language in the huge new law has <unk> the fight 
 the law does allow the rtc to borrow from the treasury up to $ N billion at any time 
 moreover it says the rtc 's total obligations may not exceed $ N billion but that figure is derived after including notes and other debt and <unk> from it the market value of the assets the rtc holds 
 but congress did n't anticipate or intend more public debt say opponents of the rtc 's <unk> plan and rep. charles <unk> d. n.y said the rtc oversight board has been <unk> in not keeping congress informed 
 that <unk> leads to a proposal like the one from ways and means which seems to me sort of <unk> he said 
 the rtc is going to have to pay a price of prior <unk> on the hill if they want that kind of flexibility 
 the ways and means committee will hold a hearing on the bill next tuesday 
 we 're about to see if advertising works 
 hard on the heels of friday 's 190-point stock-market plunge and the uncertainty that 's followed a few big brokerage firms are rolling out new ads <unk> a familiar message keep on investing the market 's just fine 
 their mission is to keep clients from <unk> the market as individual investors did in <unk> after the crash in october 
 just days after the N crash major brokerage firms rushed out ads to calm investors 
 this time around they 're moving even faster 
 painewebber inc. <unk> a new television commercial at N p.m. edt yesterday and had it on the air by last night 
 fidelity investments placed new ads in newspapers yesterday and wrote another new ad appearing today 
 shearson lehman hutton inc. by yesterday afternoon had already written new tv ads 
 it considered running them during tomorrow night 's world series broadcast but decided not to when the market recovered yesterday 
 other brokerage firms including merrill lynch & co. were <unk> out potential new ad strategies 
 the brokerage firms learned a lesson the last time around when frightened investors flooded the phone lines and fled the market in a panic 
 this time the firms were ready 
 fidelity for example prepared ads several months ago in case of a market plunge 
 when the market went into its free fall friday afternoon the investment firm ordered full pages in the monday editions of half a dozen newspapers 
 the ads touted fidelity 's automated <unk> beneath the huge headline fidelity is ready for your call 
 a fidelity spokesman says the <unk> which already was operating but which many clients did n't know about received about double the usual volume of calls over the weekend 
 a lot of investor confidence comes from the fact that they can speak to us he says 
 to maintain that dialogue is absolutely crucial 
 it would have been too late to think about on friday 
 we had to think about it ahead of time 
 today 's fidelity ad goes a step further encouraging investors to stay in the market or even to plunge in with fidelity 
 <unk> the headline diversification it <unk> based on the events of the past week all investors need to know their portfolios are balanced to help protect them against the market 's volatility 
 it goes on to plug a few diversified fidelity funds by name 
 painewebber also was able to gear up quickly thanks to the N crash 
 in the aftermath of the N debacle the brokerage firm began taping commercials in-house ultimately getting its timing down fast enough to tape a commercial after the market closed and rush it on the air that night 
 it also negotiated an arrangement with cable news network under which <unk> would agree to air its last-minute <unk> 
 the new painewebber commercial created with ad agency saatchi & saatchi co. features mary farrell one of the firm 's most visible investment strategists <unk> particularly bullish 
 taped just as the market closed yesterday it offers ms. farrell advising we view the market here as going through a relatively normal cycle 
 we continue to feel that the stock market is still the place to be for long-term appreciation 
 the spot was scheduled to appear three times on <unk> last night 
 painewebber considered an even harder sell recommending specific stocks 
 instead it settled on just urging the clients who are its <unk> to keep that money in the market 
 we 're saying the worst thing that anyone can do is to see the market go down and dump everything which just drives the prices down further says john <unk> painewebber 's director of advertising 
 if you owned it and liked it friday the true value has n't changed 
 he adds this is n't N <unk> 
 with the market <unk> and then closing up more than N points yesterday investment firms had to constantly revise their approach 
 at shearson lehman executives created potential new commercials friday night and throughout the weekend then had to <unk> yesterday afternoon 
 the plan had been to make one of shearson 's <unk> black-and-white where we stand commercials which have been running occasionally in response to news events since N 
 the ad would have run during the world series tomorrow replacing the debut commercial of shearson 's new ad campaign leadership by example 
 but in a meeting after the market closed yesterday shearson executives decided not to go ahead with the stock-market ad 
 we do n't think at this point anything needs to be said 
 the market seems to be <unk> out we 're taking a <unk> attitude says <unk> b. stewart executive vice president of marketing 
 in any case the brokerage firms are clearly moving faster to create new ads than they did in the fall of N 
 but it remains to be seen whether their ads will be any more effective 
 in N despite a <unk> of ads from most of the major investment firms individuals ran from the market en <unk> 
 now the firms must try their hardest to prove that advertising can work this time around 
 ad notes 
 arnold advertising 
 edward <unk> former chairman of della femina mcnamee <unk> reached an agreement in principle to acquire a majority stake in arnold advertising a small boston shop 
 terms were n't disclosed 
 mr. <unk> who resigned his della femina post in september becomes chairman and chief executive of arnold 
 john <unk> the agency 's president and chief executive will retain the title of president 
 separately mcdonald 's corp. oak <unk> ill. named arnold to handle its estimated $ N million cooperative ad account for the hartford conn. area 
 that account had been handled by della femina mcnamee wcrs 
 education ads 
 a <unk> ad supplement to business week 's special corporate elite issue calls on business leaders to use their clout to help solve the nation 's education crisis 
 the supplement the largest ever for the magazine includes ads from N corporate advertisers and <unk> off a two-year business week initiative on education 
 the magazine will distribute N N of the gross revenues from the supplement as grants to innovative teachers 
 you know what the law of averages is do n't you 
 it 's what N explains why we are like well ourselves rather than <unk> jackson N <unk> that it 's possible to <unk> in a lake that averages two feet deep and N predicts that N <unk> placed before N <unk> would produce N <unk> rock <unk> roll <unk> 
 baseball that game of the long haul is the <unk> sport of the mean and the mean <unk> law caught up with the san francisco giants in the world series last weekend 
 the team that dumped runs by the bushel on the chicago cubs in the national league playoffs was held to just one in two games by the <unk> oakland a 's the gang that had been done <unk> similarly by the los angeles <unk> and <unk> <unk> in last year 's <unk> 
 <unk> much of the damage was accomplished by a 's who had some catching up to do 
 in game two on a cool sunday evening in this land of perpetual autumn a lot of the catching up was done by the a 's <unk> terry <unk> 
 he hit a N pitch from rick <unk> into the <unk> stands in inning four to stretch his team 's lead from N to a decisive N where it stayed 
 so what if <unk> had struck just seven home runs in N regular-season games and <unk> in the seventh position of the a 's lineup 
 if you get your pitch and take a good swing anything can happen he later <unk> 
 on saturday night quite a few of the boys in green and gold <unk> away successes to <unk> the pain of past and no doubt future <unk> 
 mark <unk> the big <unk> oakland first <unk> had three hits in four at <unk> two more than he 'd had in the <unk> <unk> series in which he 'd gone <unk> 
 the <unk> <unk> <unk> N through N <unk> the bottom of the order got seven of their team 's N hits and scored four of its runs in a N decision 
 <unk> dave stewart held the giants to five hits to account for the zero on the other side of the saturday <unk> 
 that he was the a 's <unk> <unk> during its american league campaign with a N mark plus two wins over toronto in the playoffs indicates he may have some evening up coming but with the way his <unk> <unk> is <unk> that might not be this week 
 the same goes for mike moore another veteran who <unk> early struggles to permit the giants but a run and four hits in seven <unk> in sunday 's contest 
 every guy they put out there had a better <unk> than the guy before <unk> giant manager roger craig 
 he 's an <unk> who 's one of the leading <unk> of the fashionable delivery which looks like a <unk> until it <unk> beneath the <unk> bat 
 the <unk> of the <unk> is that the a 's go into san francisco 's candlestick park tonight up two games to none in the <unk> <unk> 
 the <unk> to <unk> with here says that about three of four clubs N of N that took N series leads went on to win it all 
 that 's not an average to <unk> giant <unk> 
 one might think that the home fans in this series of the subway called bart that 's a better name for a public <unk> than desire do n't you think would have been <unk> over the proceedings but they <unk> them in relative calm 
 <unk> of the two <unk> sat side by side in the <unk> seats of oakland <unk> and while they cheered their <unk> and <unk> the opposition <unk> advanced no further at least as far as i could see 
 a few folks even showed up wearing <unk> bearing the colors and <unk> of both teams 
 i 'm for the giants today but only because they lost yesterday 
 i love <unk> both 
 the only thing i 'm <unk> for is for the series to go seven games said david williams a sacramento <unk> at the <unk> before sunday 's go 
 the above represents a <unk> of either <unk> or <unk> 
 i choose to believe it 's the latter although it probably springs from the fact that just about everyone out here including the a 's and giants is originally from somewhere else 
 <unk> it to say that if this were a new york <unk> series or one between the chicago cubs and white <unk> <unk> it 's possible you 'd need <unk> police in every other seat to separate opposing fans and only the <unk> would <unk> their <unk> 
 anyway the a 's gave you a lot of heroes to root for 
 in the opening game besides <unk> and stewart there was walt weiss a <unk> <unk> <unk> who had lost a couple months of the season to <unk> surgery 
 he was <unk> <unk> <unk> in game two moved a <unk> along in the a 's <unk> second inning and <unk> for his team 's final tally 
 such is his reputation among the east bay <unk> that when he hit his first career home run last season the fan who caught it agreed to turn the ball over to him in return for an <unk> 
 not his <unk> <unk> <unk> 's 
 an a 's <unk> of the second game was <unk> henderson who <unk> the hot side of the <unk> equation 
 he <unk> toronto in the playoffs with six hits seven walks and eight stolen bases in N at <unk> and continued that by going <unk> at the plate sunday along with walking stealing a base and scoring a run 
 when you 're in the <unk> you see every ball <unk> he <unk> 
 the cold guys in the set were will clark kevin mitchell and <unk> williams the giants ' N <unk> 
 they combined for N hits six home runs and N runs <unk> in in the five games against the cubs 
 they went a collective <unk> here with zero <unk> and <unk> 
 it 's that last set of numbers as much as anything else that gives the giants hope in the series games to come 
 i believe in the law of averages declared san francisco <unk> coach dusty baker after game two 
 i 'd rather see a <unk> <unk> who 's hot come up for the other side than a good <unk> who 's cold 
 but the old <unk> <unk> <unk> offered no prediction about when good times would return to his side 
 when it goes you never know when you 'll get it back he said 
 that 's baseball 
 ncr corp. reported a N N drop in third-quarter net income citing intense competition that caused its gross profit margins to dip 
 net income for the quarter fell to $ N million from $ N million roughly what analysts had expected 
 but per-share profit dropped only N N to $ N a share from $ N a share as the company continued its stock buy-back plan 
 average shares outstanding dropped to N million from N million 
 revenue fell N N to $ N billion from $ N billion 
 the computer maker which sells more than half its goods outside the u.s. also said the negative effect of a stronger u.s. dollar will <unk> affect its fourth-quarter performance and make it difficult to better N results 
 ncr said revenue declined both in the u.s. and overseas reflecting a world-wide softening of the computer markets 
 the company however said orders in the u.s. showed good gains during the latest quarter 
 analysts estimate those gains at N N to N N a good part of it coming from large orders placed by a few of ncr 's major customers 
 in addition to a general slowing of the computer industry ncr which sells automated teller machines and computerized cash <unk> is also affected by the retail and financial sectors areas of the economy that have generally not been robust notes <unk> g. <unk> an analyst for salomon brothers inc 
 these factors combined with a strong dollar should <unk> affect the current quarter 's results ncr said 
 in the year-earlier fourth quarter ncr had profit of $ N million or $ N a share on revenue of $ N billion 
 mr. <unk> said he lowered his full-year estimates for N to $ N a share from $ N a share 
 revenue projections were slashed to $ N billion from $ N billion 
 last year ncr had net income of $ N million or $ N a share on $ N billion in revenue 
 for the nine months the company 's earnings fell N N to $ N million or $ N a share from $ N million or $ N a share 
 revenues declined N N to $ N billion from $ N billion 
 in new york stock exchange composite trading yesterday ncr shares fell N cents to close at $ N 
 concerning your sept. N article wall street firms link analysts ' pay to performance i 'm <unk> that wall street is finally <unk> in to the hard cold facts of the real working world 
 if the firms are serious however why limit the practice to the poor <unk> analysts whose ability to see into the future is fragile at best 
 why not extend the same harsh standards to the sales force and pay brokers a base salary with annual bonus based on how much money they made for their clients during the year 
 that should stop a lot of <unk> and produce a stock market driven only by professional concern careful thought and good sense 
 now would n't that be a <unk> 
 <unk> <unk> <unk> newport news va 
 steve clark a shearson lehman hutton inc. trader reported for work at N a.m. two and a half hours before the usual monday morning strategy meeting 
 at jefferies & co. j. francis <unk> did n't reach the office until N a.m. but then he had been up most of the night at home 
 i had calls all night long from the states he said 
 i was <unk> up every hour N N N N 
 people are looking for possible opportunities to buy but nobody wants to stick their <unk> out 
 for many of london 's securities traders it was a day that started nervously in the small hours 
 by <unk> the selling was at <unk> fever 
 but as the day ended in a <unk> wall <unk> rally the city <unk> a sigh of relief 
 so it went yesterday in the trading rooms of london 's financial district 
 in the wake of wall street 's plunge last friday the london market was considered especially vulnerable 
 and before the opening of trading here yesterday all eyes were on early trading in tokyo for a clue as to how widespread the fallout might be 
 by the time trading officially got under way at N a.m. the news from asia was in 
 and it left mixed signals for london 
 tokyo stocks closed off a significant but <unk> N N on thin volume hong kong stocks declined N N in orderly trading 
 at jefferies ' trading room on <unk> circus a <unk> circle at the edge of the financial district desktop computer screens displayed the london market 's major barometer the financial times-stock exchange N share index 
 red figures on the screens indicated falling stocks blue figures rising stocks 
 right away the <unk> outnumbered the blues N to N as the index opened at N off N points or N N 
 i see concern but i do n't see any panic said mr. <unk> a big <unk> new york native who runs the <unk> office 
 the jefferies office a branch of the los angeles-based firm played it <unk> seeking to avoid risk 
 this is not the sort of market to have a big position in said david smith who heads trading in all non-u.s. stocks 
 we tend to run a very tight book 
 jefferies spent most of its <unk> in the morning trying to match buyers and sellers and there were n't many buyers 
 all the takeover stocks scottish & <unk> b.a.t <unk> are getting pretty well <unk> this morning mr. smith said 
 seconds later a <unk> sell order for scottish & <unk> came in 
 for the third time in N minutes a trader next to mr. smith left the <unk> area to have a cigarette 
 on the screens only two <unk> blue figures remained but the index had recovered a few points and was off about N 
 because tokyo did n't collapse let 's pick up a little stock mr. smith said 
 he targeted N shares of reuters and <unk> a <unk> to call up on his screen other dealers ' price quotes 
 the vivid yellow figures showed the best price at N pence $ N and mr. smith 's traders started putting out <unk> 
 but the market <unk> a serious buyer on a day dominated by selling and the quotes immediately jumped to N pence 
 when i want to buy they run from you they keep changing their prices mr. smith said 
 it 's very frustrating 
 he temporarily abandoned his search for the reuters shares 
 by this time it was N a.m. in new york and mr. smith <unk> a call from a new york customer wanting an opinion on the british stock market which had been having troubles of its own even before friday 's new york market break 
 fundamentally dangerous mr. smith said almost in a <unk> fundamentally weak fairly vulnerable still extremely <unk> poised 
 we 're in for a lot of turbulence 
 he was right 
 by midday the london market was in full retreat 
 it 's falling like a stone said danny <unk> a pit trader who was standing outside the london international financial futures exchange 
 only half the usual <unk> crowd gathered at the tony <unk> & <unk> wine bar on old broad street nearby 
 conversation was subdued as most <unk> watched the latest market statistics on television 
 at N p.m. the index hit its low N off N points 
 france opened the limit down off at least N N if you could calculate the index which you could n't mr. clark the shearson trader said early in the afternoon 
 spain is down N N and suspended sweden 's down N N norway N N 
 this market has been very badly damaged 
 as N p.m. wall street 's opening time <unk> shearson traders and salesmen traded bets on how low the new york market would open 
 in the center of the trading floor chief trader roger <unk> and two colleagues scrambled for the telephones as soon as the new york market opened <unk> more than N points in the first few minutes 
 they saw an opportunity created by the sell-off 
 as wall street traders dumped american depositary receipts in jaguar plc mr. <unk> and trader sam <unk> bought them to <unk> in the <unk> 
 investors here still expect ford motor co. or general motors corp. to bid for jaguar 
 suddenly after about N minutes the u.s. markets rallied 
 the mmi has gone better shouted one trader at about N london time as the u.s. major markets index contract suddenly indicated a <unk> 
 as wall street strengthened the london trading room went wild 
 traders shouted as their screens posted an <unk> loss on wall street 
 then nine minutes later wall street suddenly rebounded to a gain on the day 
 rally rally rally shouted shearson trader andy rosen selling more jaguar shares 
 this is panic buying 
 as the london market rallied some <unk> whether the weekend of worrying and jitters had been worth it 
 the london index closed at N its high for the day off N or about N N 
 ambassador paul <unk> 's statement notable & <unk> sept. N if you have a million people working for you every bad thing that has one chance in a million of going wrong will go wrong at least once a year is a pretty negative way of looking at things 
 is n't it just as fair to say that if you have a million people working for you every good thing that has one chance in a million of going right will go right at least once a year 
 do n't be such a <unk> mr. ambassador 
 frank <unk> 
 the house aviation subcommittee approved a bill that would give the transportation secretary authority to review and approve leveraged buy-outs of major u.s. airlines 
 the collapsed plan to acquire ual corp. parent of united airlines spurred quick action on the legislation introduced wednesday and approved by the subcommittee on a voice vote yesterday 
 the bill is expected to be taken up by the public works and transportation committee tomorrow and a floor vote by next week will be urged 
 the measure drew criticism from the bush administration and a <unk> shot from financier donald trump who yesterday withdrew his takeover bid for amr corp. the parent of american airlines 
 in a letter to subcommittee chairman james <unk> d. minn. mr. trump criticized the bill as an explicit effort to thwart his bid for amr and said it contributed to the collapse of the deal 
 <unk> <unk> deputy transportation secretary also sent a letter to express the administration 's opposition to the bill in its present form 
 rep. <unk> brushed off mr. trump 's allegations as an excuse for his own deal failing 
 he also said the fact that the other letter had n't come from transportation secretary samuel skinner indicated there is <unk> room in the administration 's position 
 mr. <unk> and other committee members repeatedly stressed that the legislation was n't a response to any particular market situation 
 but they cited the ual and amr examples as reasons to move quickly to enact this legislation 
 aides both in the house and senate said the withdrawal of the trump bid for amr is n't likely to <unk> efforts to push the legislation 
 it 's still on the fast track and we still want to do it said one senate aide 
 the bill is aimed at addressing the concern that an airline might sacrifice costly safety measures to pay off the debt incurred in a leveraged buy-out 
 currently the transportation secretary does n't have clearly established authority to block mergers but can take the drastic step of <unk> the operating certificate of any carrier the official considers <unk> 
 supporters of the legislation view the bill as an effort to add stability and <unk> to the <unk> process and to preserve the safety and fitness of the industry 
 in general the bill would give the transportation department a 30-day review period before N N or more of the voting stock of a major u.s. air carrier could be acquired 
 it also would require the acquiring party to notify the transportation secretary and to provide all information relevant to determining the intent of the acquisition 
 the bill would allow the secretary to reject a buy-out if sufficient information has n't been provided or if the buy-out is likely to weaken the carrier financially result in a substantial reduction in size of the airline through disposal of assets or give control to a foreign interest 
 if more information is needed the secretary would have authority to extend the review period N days 
 all the witnesses both congressmen and industry experts expressed support for the bill in order to prevent <unk> from <unk> in on airline profits at the expense of safe <unk> service 
 but several committee members <unk> some backing mr. trump 's claim that the threat of regulation caused the failure of the ual deal and the stock-market plunge 
 one of the major concerns expressed by the <unk> was that large airlines would be prohibited from <unk> themselves of smaller entities and producing independent <unk> companies 
 in a possible prelude to the <unk> of talks between boeing co. and striking machinists union members a federal mediator said representatives of the two sides will meet with him tomorrow 
 it could be a long meeting or it could be a short one said doug hammond the mediator who called the agreement to meet a first step toward a <unk> of negotiations 
 we 're encouraged that talks are scheduled again but beyond that we have made no expression of expectations a boeing spokesman said 
 the machinists union has rejected a three-year contract offer that would have provided a N N wage increase over the life of the pact plus some bonuses 
 currently average pay for machinists is $ N an hour boeing said 
 now in its 13th day the strike has <unk> about N machinists and has started to delay delivery of some <unk> 
 with a strike fund of about $ N million the union had said it was prepared for a long strike 
 after the third week on strike union members will begin receiving $ N a week from the fund 
 work at boeing continues with supervisors and other <unk> personnel <unk> the lines 
 and at the company 's wichita kan. plant about N of the N machinists still are working boeing said 
 under kansas <unk> laws contracts can not require workers to be union members 
 boeing has declined to say how many employees are working at its giant <unk> wash. plant 
 union officials could n't be reached for comment 
 dpc acquisition partners a hostile suitor for dataproducts corp. said it intends to launch a tender offer for the computer printer maker 's common stock 
 dpc a group led by the new york investment firm <unk> inc. also said it plans to file preliminary materials with the securities and exchange commission regarding a shareholder solicitation to oust dataproducts ' board 
 dpc holds a N N stake in dataproducts and made a $ <unk> bid for the company in may but dataproducts management considered the $ N million proposal <unk> 
 a dpc spokesman declined to elaborate on the group 's new plan 
 in american stock exchange composite trading yesterday dataproducts shares jumped N cents to close at $ N 
 dataproducts which had been seeking a buyer for several months announced a restructuring plan in september and took itself off the auction block 
 the company 's restructuring includes plans to split into three sectors to phase out domestic printer manufacturing operations and to sell its new england subsidiary 
 as part of the plan dataproducts announced a pact to sell $ N million of its real estate holdings to <unk> properties inc. a unit of canada 's <unk> corp 
 jack davis dataproducts ' president chairman and chief executive officer said the company is at a loss to understand dpc 's intentions 
 he called today 's announcement <unk> and <unk> and said the company intends to proceed with its restructuring 
 share prices plummeted across europe yesterday in response to friday 's new york sell-off but some issues staged a late comeback after wall street opened without another rout 
 european investors have further reason for optimism today after the u.s. rebound 
 the frankfurt stock exchange which closed before the new york exchanges opened was the hardest hit of the major european markets with the dax index dropping N N 
 in london prices plummeted in early trading and were off as much as N N before coming back strong after the new york opening to close down only N N 
 west german economics minister helmut <unk> said in my view the stock market will stabilize relatively quickly 
 there may be one or other psychological or technical reactions but they are n't based on fundamentals 
 the economy of west germany and the ec european community is highly stable 
 paris which has been the center of speculation fever in recent weeks also was hard hit 
 share prices fell in milan amsterdam zurich madrid and stockholm 
 prices in brussels where a computer breakdown disrupted trading also tumbled 
 following is a breakdown of major market activity 
 frankfurt 
 one of the sharpest declines came in the financial center of europe 's strongest economy 
 the dax index of N west german blue chips plunged N N a one-day record <unk> out the summer 's gains 
 the index closed at N down N points 
 by comparison two years ago on black monday the new index would have dropped N N according to a projection by the exchange 
 investors may have reacted so strongly to friday 's u.s. stock market loss because they had vivid memories of the frankfurt exchange 's losing N N of its value in the N crash and its wake 
 this time however many small investors may have been hurt by acting so swiftly 
 they all went in the wrong direction said andreas <unk> an investment adviser for the bank in <unk> 's frankfurt branch 
 he said he told clients to buy selected west german blue chips after they fell by about N N 
 after the opening was delayed N minutes because of the crush of sell orders frankfurt 's normal <unk> trading session was extended N minutes to handle the heavy volume 
 the beginning was chaotic said nigel <unk> a broker for commerzbank ag 
 it took <unk> of an hour before enough prices could be worked out to get a reading on the market 
 institutional investors and bankers many of whom spent the night before in their offices watching far eastern markets were cautiously optimistic after the mild N N decline in tokyo stock prices 
 everybody was still confident including most institutional investors 
 that is why everybody was a little surprised by the storm of sell orders from small private investors said <unk> <unk> a senior trader for <unk> <unk> 
 some big institutions including banks began picking up <unk> shares late yesterday but most investors wanted to see what would happen in new york before acting 
 but even if wall street continues to stabilize analysts here say the latest blow to investor confidence could inhibit a swift recovery for the frankfurt exchange which already was showing signs of weakness after the dax had slipped from a N high of N on sept. N 
 some of west germany 's <unk> chips took some of the biggest hits 
 a N N drop for <unk> ag and dresdner bank ag 's N N decline were especially <unk> for their respective boards whose plans for major rights issues in november could now be in jeopardy 
 dresdner bank last month said it hoped to raise N billion marks $ N million by issuing four million shares at N marks each 
 yet yesterday 's market <unk> dresdner 's share price by N marks to N marks a share leaving little incentive for investors to subscribe to the standing price unless the market <unk> quickly 
 london 
 headed toward a record drop at midday the london stock market <unk> two-thirds of its losses in the wake of new york 's early rally 
 the financial times-stock exchange N share index closed off N points at N its high for the day after having plunged N points at N p.m 
 it was big institutions such as <unk> union insurance group scottish amicable investment managers and standard life assurance co. that <unk> the rally 
 attracted by low prices and encouraged by new york 's performance they <unk> up equities across the board 
 volume was N million shares more than triple recent levels 
 paris 
 late buying gave the paris <unk> a <unk> after its free fall early in the day 
 the <unk> general index ended down N N at N a drop of N points from friday 
 there was a volatility in the market that i have never seen before said <unk> <unk> a partner in brokerage firm <unk> <unk> 
 when wall street turned around shortly after the opening there was panic buying in paris 
 brokers said that as the news spread that wall street was moving up traders who had called to place sell orders changed their line in <unk> ordering buys instead 
 trading was driven primarily by small investors and speculators with large institutions waiting on the sidelines until late in the day 
 when wall street turned however the big boys entered the market looking for bargains 
 j.p. morgan & co. swung to a loss in the third quarter while ncnb corp. reported net income more than doubled and security pacific corp. net rose N N 
 j.p. morgan & co 
 j.p. morgan as expected posted a $ N billion net loss for the quarter reflecting the new york bank 's decision last month to add $ N billion to reserves for losses on loans to less-developed countries 
 the reserve addition placed the parent of morgan guaranty trust co. among a few major u.s. banks that have covered nearly all their medium and long-term portfolios to less-developed countries with reserves 
 the latest quarter 's loss <unk> $ N a share 
 in the year-earlier quarter morgan earned $ N million or $ N a share 
 george m. <unk> analyst at prudential-bache securities inc. called the results mildly disappointing 
 excluding the $ N billion provision and allowing for the taxes morgan paid earnings were about N cents a share mr. <unk> said 
 in new york stock exchange composite trading yesterday morgan climbed $ N a share to $ N 
 net interest income sank N N in the quarter to $ N million from $ N million 
 the interest rate on short-term funds which banks borrow to finance longer-term loans to customers was sharply higher morgan said 
 morgan received $ N million of interest payments on its medium and long-term brazilian loans had they been <unk> interest net interest income would have been $ N million higher in the quarter morgan said 
 such loans to argentina also remain classified as <unk> costing the bank $ N million of interest income in the third period 
 income from sources other than interest climbed N N to $ N million reflecting higher <unk> and other fees and gains on sales of investment securities 
 these increases were partly offset by lower <unk> income the bank said 
 non-interest expenses grew N N to $ N million 
 ncnb corp 
 ncnb corp. 's net income more than doubled in the period largely because of continued strong performance by the bank 's texas operations 
 the charlotte n.c. company said earnings rose to $ N million or $ N a share from $ N million or N cents a share a year earlier 
 the latest quarter included a gain of $ N million or N cents a share related to the purchase of the remaining N N of ncnb texas national bank from the federal deposit insurance corp 
 the strong performance however <unk> with an unexpectedly large increase in the size of ncnb 's problem loans particularly in the southeast 
 in the third quarter nonperforming assets jumped to $ N million or N N of net loans and leases from $ N million or N N in the second quarter 
 <unk> totaled $ N million or N N in the year-ago third quarter 
 included in the increase in the most recent quarter is a $ N million loan which ncnb said it expects to be fully repaid with no loss early in the fourth quarter 
 the deterioration in credit quality offset strong loan growth of N N in ncnb 's southeast operations as well as a N N growth in deposits resulting from an aggressive marketing campaign 
 the higher rates paid on deposits also helped squeeze ncnb 's net interest margin in the southeast to N N from N N a year earlier 
 in big board composite trading yesterday ncnb jumped $ N a share to $ N 
 results were released after the market closed 
 ncnb texas national formed from the <unk> of of the failed first <unk> corp. of dallas contributed $ N million to ncnb 's bottom line in the third quarter 
 ncnb said its third-quarter results reflect N N of earnings of the texas operation since aug. N 
 ncnb raised some $ N billion in new capital during the quarter to complete the ncnb texas purchase and to acquire several small failed thrifts to fill out its regional franchise 
 last week the banking company said it purchased both freedom savings & loan association tampa fla. and university federal savings association of san antonio texas for $ N million 
 in the first nine months ncnb 's net income climbed N N to $ N million or $ N a share from $ N million or $ N a share a year earlier 
 security pacific corp 
 security pacific 's earnings growth slowed in the third quarter but the los angeles bank holding company was still able to post a N N increase in net income because of robust growth in residential real-estate and consumer loans 
 net rose to $ N million or $ N a share from $ N million or $ N a share a year earlier 
 the company said the gain resulted mainly from a $ N million increase in net interest income reflecting a N N increase in real estate loans mainly residential and a N N rise in consumer loans 
 these <unk> loans in effect replaced some <unk> assets such as <unk> loans which were allowed to decrease 
 as a result security pacific 's net interest margin fell only N basis points a more mild decrease than some major banks outside california which have been reporting more sluggish earnings 
 security pacific shares closed at $ N down N cents in big board composite trading 
 the earnings represent a N N return on assets for security pacific and an N N return on equity 
 the loan growth offset continuing real-estate loan losses in the depressed arizona market 
 security pacific reported a N N increase in net credit losses for the quarter to $ N million from $ N million in the year-ago period 
 nonperforming loans grew slightly to $ N billion at sept. N from $ N billion a year ago 
 security pacific 's loan-loss provision was down N N or $ N million because it added to its <unk> reserve the year before 
 non-interest income fell N N in the quarter mainly because of an unusual gain a year earlier from the sale of hong kong banking operations 
 non-interest expense grew only N N in the period 
 for the nine months net rose N N to $ N million or $ N a share from $ N million or $ N a share a year earlier 
 lin broadcasting corp. said it wo n't take a position on a revised tender offer by mccaw cellular communications inc. to buy lin and has asked for <unk> of the offer 
 the new offer which seeks N N of the cellular and broadcasting concern is for $ N a share for N million lin shares 
 mccaw 's revised tender offer would require mccaw to begin an auction process in july N that would buy out remaining holders at a per-share price roughly equivalent to what a third party might then have to pay for all of lin 
 lin is asking mccaw to clarify its tender offer which challenges an agreement between bellsouth corp. and lin to merge their <unk> businesses 
 bellsouth has notified lin that it would shortly respond to the mccaw proposal in as full and effective a manner as is <unk> 
 the lin board said holders may be <unk> by the provision in the mccaw proposal that guarantees private market value after five years for the remaining shares 
 mccaw has no obligation to purchase and the definition of private market value is uncertain the lin board said 
 the board added that mccaw would be able to control lin 's operations and could therefore operate lin in a manner which could <unk> its private market value and <unk> to a <unk> <unk> in five years 
 in national over-the-counter trading lin closed at $ N down $ N 
 a group of institutional investors in telerate inc. said that dow jones & co. 's $ <unk> offer for the electronic financial information services company is grossly inadequate 
 in a letter filed with the securities and exchange commission the group which holds about N million telerate shares or about N N of the shares outstanding said at present none of us believes an offer for less than $ N per share would be fair and some believe that $ N is too low 
 the letter was dated oct. N 
 in composite trading on the new york stock exchange telerate shares closed yesterday at $ N down N cents a share 
 dow jones publisher of the wall street journal has launched an $ <unk> or $ N million tender offer to acquire the remaining telerate shares outstanding dow jones owns N N of telerate 
 telerate has rejected the offer which expires nov. N 
 the group includes <unk> cos. and various affiliates based in boston wells fargo bank san francisco the california public employees retirement system sacramento calif. and t. rowe price associates inc. baltimore 
 among other issues the group 's letter said it has concerns as to whether dow jones 's offer meets the applicable requirements of procedural fairness 
 a spokesman for dow jones said he had n't seen the group 's filing but added obviously dow jones <unk> with their conclusions 
 our offer is to buy any and all shares tendered at $ N a share 
 u.s. trade representative carla hills said the first <unk> panel set up under the <unk> free trade agreement has ruled that canada 's restrictions on exports of pacific <unk> and <unk> violate the accord 
 mrs. hills said the u.s. and canada have until nov. N to resolve the dispute 
 if a solution is n't reached by then she said the u.s. would have the right to suspend some trade concessions to canada equivalent in value to the losses suffered by u.s. <unk> companies in alaska and the pacific northwest 
 however in <unk> canadian trade minister john <unk> said the <unk> panel accepted the legitimacy of canada 's position on the use of these landing requirements to <unk> and manage these important <unk> 
 questioned about the <unk> <unk> in the u.s. and canadian government views of the panel 's report an aide for mrs. hills said the panel had clearly ruled that the canadian trade restrictions are illegal 
 the u.s. trade representative declined to put a dollar estimate on the losses resulting from the canadian export restrictions 
 canada initially had an export prohibition that was replaced by regulations requiring that such fish had to be brought <unk> in british columbia by commercial <unk> prior to export 
 this action was defended by the canadian government on conservation grounds 
 mrs. hills said yesterday that the <unk> panel rejected this canadian government argument 
 we fully expect that canada will comply with the panel 's ruling that the landing requirement also must be ended she said 
 earlier an international panel set up under the rules of the general agreement on tariffs and trade in geneva determined that the original canadian <unk> restrictions violated gatt rules 
 mrs. hills said the u.s. wo n't accept any delays after nov. N because u.s. <unk> firms enter into contracts in the fall to purchase the next season 's catch 
 she said the canadian restrictions must be removed before such contracts are concluded 
 idle thought 
 to spend a <unk> idle day when duty calls to pay no <unk> to while the precious hours away character is what you need 
 may <unk> 
 <unk> 
 the guy who throws an <unk> <unk> his receiver <unk> should somehow be advised that we at home can read his <unk> 
 dick <unk> 
 <unk> corp. said it completed a restructuring agreement previously agreed to by the federal deposit insurance corp. creditor banks and subordinated debenture holders 
 the plan would permit the bank holding company to retire its bank and debenture obligations through exchanges of cash and equity 
 the fdic which in N provided $ N million in <unk> assistance to <unk> 's bank of oklahoma <unk> unit will continue to maintain $ N million in preferred stock in the <unk> bank unit 
 in exchange for the other $ N million the fdic will receive additional warrants <unk> it to buy N N of <unk> 's common stock outstanding up from the N N option the fdic received under terms of the N capital <unk> 
 in exchange for the $ N million they are owed creditor banks will receive N million shares of <unk> common stock and the proceeds from the future sales of four subsidiary banks to private buyers the bank holding company said 
 also under the agreement debenture holders will get one million shares of common stock in exchange for $ N million in debentures and holders of <unk> 's series a preferred stock will receive N shares of common stock for every share of preferred they own the company said 
 bear stearns 's chief economist lawrence <unk> in the sept. N issue of the firm 's global <unk> 
 were it true that a weak currency <unk> the way for trade surpluses then presumably argentina would be the center of today 's global economy 
 bsn corp. said it will begin an offer tomorrow to exchange up to one million of its common shares and all of its $ N million in N N N convertible debentures due N for a package of new debt and common stock warrants 
 under terms of the offer the sporting goods maker will swap $ N face amount of N N N subordinated notes due N and one warrant for each common share 
 each warrant allows the holder to buy one bsn share for $ N a share at any time over the next seven years 
 bsn currently has N million common shares outstanding 
 bsn also is offering $ N face amount of new notes and N <unk> warrants for each $ N face amount of its convertible debt outstanding 
 the company said it can redeem the warrants at its option for $ N each 
 the offer is n't contingent on a certain amount of debt or stock being exchanged 
 bsn said it is making the offer to shrink its capital and increase shareholder value 
 if all the bondholders and holders of one million common shares accept the offer bsn will increase its debt by $ N million but it also will recognize a $ N million gain from retiring the old debt said michael j. blumenfeld president 
 we have sufficient cash flow to handle that he said 
 the offers are scheduled to expire in <unk> to late november 
 merrill lynch & co. 's net income dropped N N while bear stearns cos. posted a N N gain in net and painewebber group inc. 's profit fell but would have risen without a special gain a year ago 
 at merrill lynch <unk> net was $ N million or N cents a share down from $ N million or N cents a share a year ago 
 total revenue reached $ N billion up N N from $ N billion 
 the firm 's drop in net reflected weaker revenue in transactions for its own account a decline of N N to $ N million on reduced revenue from trading fixed-income securities 
 investment banking revenue fell N N to $ N million on fewer equity and municipal <unk> 
 merrill lynch 's commission revenue grew N N however to $ N million on higher share prices and volume and on strong sales of mutual funds 
 revenue derived from interest and dividends jumped N N to $ N billion 
 <unk> fee revenue grew N N to $ N million 
 the brokerage also reported a loss of $ N million from the discontinued operations and disposal of its fine homes international limited partnership real-estate subsidiary 
 bear stearns said net in the first quarter ended sept. N reached $ N million or N cents a share from $ N million or N cents a share in the year-earlier quarter 
 gross revenue rose N N to $ N million from $ N million 
 profit from trading for its own account dropped the securities firm said 
 investment banking revenue climbed N N while commission revenue advanced N N on a stronger retail market 
 bear stearns is the holding company for bear stearns & co. the investment banking and brokerage firm 
 in new york stock exchange composite trading yesterday bear stearns shares closed at $ N down N cents 
 separately painewebber posted net income for the third quarter of $ N million or N cents a share reflecting a broad-based improvement in the company 's core businesses 
 retail profit surged but the company said it was only a modest <unk> to third-quarter results 
 a year ago net at the new york investment banking firm was $ N million or N cents a share including a special pretax gain of $ N million from the sale of the company 's interest in national car rental systems inc 
 revenue was $ N million including net interest down slightly from $ N million 
 in big board composite trading yesterday painewebber closed at $ N up N cents 
 <unk> corp. said it signed an agreement with <unk> martin <unk> to purchase its headquarters building the columbia <unk> center for $ N million 
 purchase of the <unk> structure is subject to execution of a definitive agreement approval by the boards of <unk> and its parent company bankamerica corp. and approval by regulators 
 the market upheaval apparently has n't triggered any cash crunch yet 
 individual investors investment firms and arbitragers who speculate in the stocks of takeover candidates can suffer liquidity and payment problems when stocks dive those investors often borrow heavily to buy their holdings and use the stocks as collateral for loans 
 but several large banks said yesterday they detected no signs of unusual demand for credit that would signal such difficulties 
 we 're seeing nothing out of the ordinary said one official at a top N bank 
 that 's good news because we all <unk> in this water 
 added another executive at a big bank we were all a little <unk> over the weekend trying to forecast what would happen monday but it 's been very quiet 
 now as for tomorrow hell who knows 
 what happened friday shows that financial markets are not yet sufficiently <unk> to handle another <unk> in prices 
 no <unk> with systems and procedures will ever prevent markets from suffering a panic wave of selling 
 but markets can operate with greater or lesser efficiency 
 after the N plunge markets agreed that it would be <unk> to halt trading whenever panic conditions arose 
 the new york stock exchange adopted two specific circuit breakers if the dow jones index falls N points in a day the exchange will halt trading for one hour if the decline hits N points the exchange will close for an additional two hours 
 the rationale is that an <unk> of trading will allow investors to reconsider their strategies calm sellers and lead buyers to enter the market at indicated new price levels 
 it is impossible to know whether that theory is realistic 
 a temporary <unk> of trading may indeed discourage a selling panic from feeding on itself 
 but there is also the possibility that <unk> down markets will intensify fears and cause an even more abrupt slide in prices 
 what happened friday was the worst of all <unk> 
 the futures exchanges followed their own <unk> circuit breakers and shut down at about N p.m. for N minutes after the standard & poor 's N stock index had fallen N points or about N points on the dow jones index 
 options markets stopped trading in many securities 
 the new york stock exchange under its own rules remained open 
 with nowhere else to go sellers and particularly program traders focused all their selling on the new york stock exchange 
 as liquidity on that market weakened prices fell sharply 
 had the futures and options markets been open additional liquidity would have been provided and the decline most probably would have been less intense 
 at N after intense telephone negotiations between the trading markets and washington the futures exchanges reopened 
 futures trading however was halted altogether at N after the futures markets had dropped an additional N points which is the daily limit for price declines 
 at this point the options markets also shut down and once more left all sales to be handled by the new york stock exchange 
 it is time to recognize that the new york stock exchange the futures markets and the options markets though <unk> separate have actually become so closely <unk> as to constitute one market effectively 
 traders can vary their strategies and execute their orders in any one of them 
 it therefore makes no sense for each market to adopt different circuit breakers 
 to achieve maximum liquidity and minimize price volatility either all markets should be open to trading or none 
 <unk> circuit breakers would not have halted the slide in prices on friday but they probably would have made for <unk> less volatile executions 
 it 's time for the exchanges and the securities and exchange commission to agree on joint conditions for <unk> trading or staying open 
 let 's not have one market shut down for N minutes when the dow declines N points and another shut down for an hour after a <unk> decline 
 the need for <unk> last-minute telephone negotiations among market officials will disappear once rules are in place that <unk> circuit breakers in all markets 
 the new circuit breakers if they are to be applied at all will require that futures and options trading continue as long as the new york stock exchange remains open 
 the rules should be established by agreement of the officials of all affected exchanges acting under the oversight and with the approval of the government regulatory agencies 
 should the sec and the commodities futures trading commission which with the sec <unk> the chicago stock-index markets be unable to agree the issue may have to be resolved by decision of the treasury secretary 
 in many ways our financial markets are better prepared today to handle a decline than they were two years ago 
 the new york stock exchange now has the capacity to handle a volume of nearly a billion shares a day 
 telephone service has been improved for customers trying to reach their brokers and specialists who i believe should stay despite the <unk> of some post-crash critics have larger capital positions 
 of course specialists ' actions alone can never prevent a major crack in stock prices 
 witness the fact that trading in some stocks closed early friday and opened late monday because of an excess of sell orders 
 but the task of improving market performance remains <unk> 
 mr. <unk> former chief economist of the new york stock exchange is a professor of economics at pace university 's business school in new york 
 a unified europe <unk> labor problems and prospects for u.s. firms 
 the social <unk> worker concerns of the european community 's plan to open its internal borders in N could set the effort off the <unk> if not done reasonably says general electric senior vice president frank doyle 
 u.s. companies wanting to expand in europe face tough pressure from unions in nations such as west germany which play a big consulting role in management decisions he says 
 <unk> corp. and <unk> international say unions also wo n't like plant <unk> and needed restructuring which means layoffs 
 many employers have already begun moving to southern countries such as spain and italy where wages are low and unions are weaker demand for trained labor and managers will rise there <unk> says 
 pfizer fluor and ge see big ec N <unk> a push for job training and ease in moving and finding workers 
 <unk> a fan was n't the baltimore <unk> ' fault 
 so said a federal judge in a case involving two players for the minor league <unk> va. <unk> a baltimore farm team 
 the players were <unk> by a <unk> during a july N N game with the <unk> <unk> 
 like its parent that year <unk> was not having a good year the judge said 
 after the game <unk> lost N <unk> three <unk> in the ninth he noted trouble began 
 more <unk> in the parking lot the players said led to a fight 
 the fan said he was <unk> and kicked by one player and that the other broke his <unk> with a baseball bat 
 the judge dismissed the fan 's suit against the team however ruling the <unk> innocent of <unk> hiring and not responsible for a fight that was outside the players ' employment 
 proposals arise for coping with the shortage of nurses 
 an association of academic health centers report urges <unk> nurses from duties that do n't require special skills 
 it also recommends better retirement and <unk> benefits and <unk> pay on education experience and nurses ' demanding work schedules 
 but it opposes an american medical association proposal for creating a registered care <unk> as potentially divisive it says the job would <unk> an unwanted new doctor 's <unk> extension 
 over a third of N hospitals surveyed by consultant <unk> associates use a clinical <unk> <unk> <unk> on performance and education 
 many also use recruiting bonuses tuition <unk> loan repayment or child-care help 
 some give <unk> incentives 
 <unk> <unk> systems signs up nurses for paid travel promising annual income up to $ N and free or subsidized housing 
 treating employees with respect is crucial for managers says consultant <unk> group after surveys of a million workers 
 it 's in their top five work values 
 fully N N of employees who say their bosses treat them with respect but only a third of those who do n't feel respected say they 're satisfied with where they work 
 <unk> up the digs about N employees of the maryland department of economic and employment development for four months painted walls <unk> and <unk> floors bought plants <unk> windows and <unk> and hung pictures at the agency 's baltimore office 
 the N hours of work will save the state $ N 
 curbing wage boosts will get high priority again in N collective bargaining a bureau of national affairs survey of N companies with <unk> <unk> next year indicates 
 despite <unk> warnings N N aim for <unk> wage increases of under N N and N N say they 'd try to replace workers if struck or would consider it 
 temporary workers have good <unk> the national association of temporary services says its survey of N such employees shows N N with more than a high-school education and N N with college degrees 
 about N N have retired from a full-time job while N N were asked to stay on full time 
 <unk> losses rise but they 're often covered by employers 
 but they search for ways to limit the damage 
 a third of N companies surveyed by the employee relocation council report a rise in N sales losses over N 
 about N N reimburse for all or some losses 
 since N more companies give <unk> aid as many real-estate values <unk> the council says 
 rjr nabisco pays up to $ N of losses including improvements 
 <unk> wo n't ensure loss coverage but will prevent a catastrophic loss it has given some employees the full purchase price when values fell from concern over dangers posed by a disposal site 
 federal express dow chemical ford and national city corp. will buy the home or let the worker sell to an outside firm but usually wo n't cover a loss 
 since N firms offering <unk> house <unk> to deter <unk> rose to N N of those the council polled from N N 
 the <unk> the national academy of engineering gives two <unk> of the semiconductor <unk> a $ N achievement award 
 now that 's <unk> letter carriers union president vincent <unk> <unk> philadelphia <unk> charles james of <unk> century <unk> management tactics 
 yesterday was in the words of new york stock exchange chairman john j. phelan jr. just your reasonably normal N <unk> up <unk> day 
 when it was all over and stocks had staged a huge recovery big board officials were <unk> about how well the day had gone 
 they said the exchange 's trading procedures personnel equipment and links with other exchanges could n't have performed better 
 we had no operating problems at all mr. phelan said after the market closed 
 all the things that we set up to slow down the process to let people know that the market was in an extreme position worked extremely well 
 prices for the N million shares that changed hands during the session were carried on the exchange 's trading tape with barely a delay officials said 
 while reaching blockbuster <unk> yesterday the volume was still well within the N <unk> capacity that the exchange has said it can handle daily since <unk> up its computers after the october N crash 
 the so-called circuit breakers devised by the big board and the chicago mercantile exchange to <unk> free falls in stock and futures prices were n't triggered yesterday because the markets were higher for most of the day 
 despite traders ' complaints mr. phelan said the links with the chicago futures market worked as planned in friday 's rout to provide a <unk> period 
 of greater help the big board chairman said was the natural circuit breaker of the weekend that provided a breathing period that brought <unk> back to the market 
 chicken chains <unk> by loss of customers 
 fast-food chicken chains faced with a worsening business slump are struggling to hatch some new marketing strategies 
 the crest report which tracks consumer purchases says customer traffic at chicken restaurants fell N N in the second quarter while the overall fast-food customer count was down N N 
 chicken business is off largely because of more competition from <unk> convenience food <unk> pizza and other <unk> fare says a spokesman for the report a publication of <unk> group a market research firm in port washington n.y 
 the loss of more customers is the latest in a string of problems 
 church 's fried chicken inc. and <unk> 's famous fried chicken inc. which have merged are still troubled by <unk> restaurant locations 
 chicken chains also are feeling more pressure from mcdonald 's corp. which introduced its <unk> <unk> this year and recently tested the sale of individual pieces of chicken 
 new management at kentucky fried chicken a unit of pepsico inc. has fought back with new medium and large chicken <unk> for the lunch crowd 
 and the chain is testing products that are n't fried such as <unk> chicken to try to win <unk> consumers 
 kentucky fried chicken also is testing <unk> of chicken which could be a hit with <unk> <unk> 
 but some fast-food industry analysts say problems with keeping chicken warm and fresh must be solved first 
 a kentucky fried chicken spokesman however disputed the notion that the delivery service experienced problems in some markets where testing has been discontinued 
 he says the test is continuing in chicago columbus ohio and a few other cities 
 the advertising industry is <unk> with rumors that kentucky fried chicken will drop young & rubicam and seek a new ad agency 
 but the company declines to comment 
 <unk> goldman a painewebber inc. analyst predicts kentucky fried chicken will post an N N drop in N net income 
 they 've been <unk> he says but they 'll have to become more aggressive 
 reluctant advertisers try <unk> spots 
 call it <unk> 
 pittsburgh consultant david bear is selling a soft approach to clients who want exposure yet <unk> <unk> ads 
 his <unk> <unk> radio spots that offer helpful hints 
 the only plug for the sponsor is a brief mention at the end of the spot 
 the messages resemble the business <unk> a daily <unk> of travel tips developed by mr. bear and sponsored by travel agencies in several major cities 
 new <unk> include burt hill <unk> <unk> associates a butler pa. architectural firm 
 its radio series features such spots as <unk> evening wear for urban structures and building a place to park 
 a harder sell says john <unk> the firm 's president would <unk> from the profession 
 hospitals have signed up to use the messages to promote <unk> and equitable gas co. is considering the format to offer energy tips to consumers 
 but such spots can be too soft 
 there 's always a risk of lost messages says john <unk> chairman of <unk> advertising usa which created similar radio spots for pittsburgh national bank 
 it 's a question of how much credibility you gain for the possible loss of recognition 
 retailer sees <unk> in environmental push 
 here 's a retailer that 's getting tough in the push for environmentally safe packaging and products 
 big bear supermarkets inc. a grocery chain based in san diego plans to display shelf cards and distribute <unk> recommending products deemed safe for the environment 
 the choices will be based on research by the san diego environmental health coalition and will include products like murphy 's oil soap and other <unk> <unk> 
 but the chain is quickly <unk> the <unk> of such <unk> 
 for example it recommends <unk> <unk> detergent and puts <unk> on its environmentally safe list 
 that does n't <unk> procter & gamble co. maker of cascade <unk> detergent 
 a company spokesman questioned the <unk> of the list noting that <unk> is present in all major <unk> <unk> 
 in fact <unk> bros. confirms that its <unk> brand does contain <unk> <unk> even though it is n't listed on the label for the <unk> version 
 thomas g. <unk> big bear 's executive vice president said the chain is still reviewing its product list to avoid such problems 
 our intent is to promote the best alternative he says 
 and it 's important that we be accurate 
 but in the end customers ' wishes are what will prevail 
 big bear does n't care for disposable <unk> which are n't <unk> 
 yet parents demand them 
 says mr. <unk> we 'll still be forced to sell items we might not <unk> agree with 
 odds and ends 
 <unk> does count at least in the grocery store 
 a study by <unk> 's <unk> marketing research shows soap sales climbed N N when bars were neatly <unk> on shelves instead of dumped in a wire basket 
 which celebrity <unk> are most <unk> 
 for the third year in a row consumers voted bill cosby first and james <unk> second in <unk> as spokesmen in tv commercials according to video <unk> tests new york 
 michael j. fox replaced bruce <unk> in third place <unk> placed fourth for the second time 
 health and human services secretary louis sullivan has chosen <unk> novello to be the next surgeon general bush administration officials said 
 if she is <unk> by president bush and confirmed by the senate dr. novello would succeed c. <unk> <unk> who rattled liberals and conservatives alike with his outspoken views on a range of health issues 
 dr. novello an expert on pediatric kidney diseases is deputy director of the national institute of child health and human development 
 she has also served on several task forces on acquired immune deficiency syndrome 
 dr. novello 's office said she would n't talk with reporters and it refused to release any information about her 
 the newsletter medicine & health which first disclosed her selection by dr. sullivan said she is N years old and she studied at the university of puerto rico school of medicine 
 the continuing series of hud scandals is a <unk> predictable result of pork-barrel politics 
 nevertheless <unk> such as the national association of home builders nahb continue to pressure capitol hill for more special-interest spending 
 kent <unk> nahb executive vice president argues that the u.s. faces a <unk> housing crisis reduced <unk> of homes for first-time buyers increased homelessness and lower apartment construction rates that will be very difficult to solve without expanded federal resources 
 there 's nothing unusual about business groups pushing for more government spending 
 but the nahb was created in N out of an organization that made its name fighting a <unk> administration proposal to take over all defense housing production 
 through the years the association has been an active member of the taxpayer 's coalition pushing for such initiatives as the <unk> amendment 
 yet on matters close to <unk> home 
 the hud budget has dropped by more than N N since N argues mr. <unk> 
 we 've taken more than our fair share 
 i would n't have a problem if other programs had taken a similar hit 
 but nahb support for subsidies is not related to the current housing crunch over the years the nahb has backed a host of public programs 
 it once pushed for a national housing production goal set by the federal government and has regularly advanced <unk> housing measures 
 moreover explains one hud official the nahb remains susceptible to internal pressure from members that specialize in subsidized production 
 the association is pushing an extensive and expensive <unk> which would substantially boost spending above the current level of more than $ N billion annually 
 direct federal subsidies for housing construction have proved <unk> expensive in the past and inevitably are <unk> to the benefit of <unk> developers and lobbyists as demonstrated by the ongoing hud scandal or congressmen 
 indirect subsidies through the fha for instance are little better 
 though mr. <unk> says expanding fha lending would result in no cost to the government the mere diversion of funds from other parts of the economy and from other forms of housing such as low-income to the single-family home market would result in a major expense 
 more important housing programs run by hud the va and <unk> are <unk> in red ink 
 the fha alone lost $ N billion in fiscal N the government 's equity in the agency essentially its reserve fund fell to minus $ N billion 
 the federal government has had to pump in $ N billion into the va housing program since N to keep the fund afloat and the va requested an additional $ N million for the fiscal year just ended 
 all told the federal government already guarantees more than $ N billion of mortgages 
 in its <unk> produced publication where will our children live the nahb does acknowledge that of course the full measure of housing <unk> can not be provided by the federal government 
 it points to the <unk> impact of local government regulation particularly <unk> and building fees which <unk> the price of housing out of the reach of <unk> and <unk> people 
 but while the nahb has suggested actions that states and <unk> should take to reduce regulatory barriers the association has proposed no activist legislative program comparable to say its detailed request for more federal subsidies to eliminate <unk> controls 
 the association a majority of whose N members build fewer than N units a year is like many other business <unk> 
 explains <unk> macdonald of the national taxpayers union it <unk> in two <unk> 
 the builders like the subsidies but at the same time they tend to be fiscal conservatives in terms of major issues such as the <unk> amendment 
 unfortunately the organization 's desire for pork tends to override its commitment to overall fiscal responsibility 
 two years ago when the nahb lobbied for the $ N billion omnibus housing bill the organization basically dropped out of the taxpayers ' coalition says ms. macdonald 
 as mr. <unk> of the nahb acknowledges government is not going to solve the problem 
 the real key is to have the economy working and interest rates down 
 more money for hud will increase the deficit and <unk> the economy more money to municipalities that are <unk> their local housing markets will further <unk> them from the <unk> effects of their policies 
 is this what the home builders want 
 mr. <unk> is a <unk> institute fellow 
 see related story and bills to make wishes come true wsj oct. N N 
 in an attempt to give new momentum to european community plans for a single currency ec government leaders are likely to agree to set a date for starting formal talks on <unk> the ec 's founding treaty of rome 
 according to diplomatic sources in brussels most ec leaders agree that talks should begin in the second half of N and will make a declaration on that during a summit meeting in <unk> france on dec. N and N 
 the only strong opposition to changing the ec treaty comes from british prime minister margaret thatcher who is opposed to creating a single ec currency 
 but the process of <unk> the <unk> conference does n't require <unk> 
 setting a date to start treaty negotiations has no legal significance in itself but could be viewed as an important psychological push 
 french president <unk> mitterrand fought to set a date for the conference during the ec summit in madrid last june but the move was <unk> because of opposition by mrs. thatcher and west german chancellor helmut kohl 
 diplomatic sources said mr. kohl may now agree to set a date for the conference to make it clear that west germany is still committed to ec unity 
 the latest <unk> in the equities markets <unk> me of the joke t. boone pickens tells about the guy who was run over by the parade 
 when asked what went wrong the unfortunate victim replied it was a combination of things 
 and so it was on gray friday 
 the grand <unk> of this parade would appear to have been excess leverage 
 even if that is so however it 's probably the case that no barriers should have been <unk> to stop the <unk> before the end of the rout e 
 the <unk> began friday afternoon when word spread that the ual buy-out was <unk> 
 although the <unk> expects to patch together a substitute offer consisting of less cash the failure to get cash from japanese and american banks confirmed a growing fear among arbitragers that the <unk> of <unk> takeover deals is ending 
 lots of other <unk> made up the parade of course notably a surprisingly large increase in producer prices <unk> federal reserve <unk> and the bush administration 's temporary defeat in trying to lower the capital-gains tax 
 as usual few favorable reviews were heard for that <unk> <unk> band of program traders although most serious studies suggest they only play the music that others write 
 what really spooked the <unk> along wall street however was the sudden concern that whatever the reason the pool of debt capital is <unk> up 
 gray friday reflects a panic mainly by the takeover arbitragers rather than the small investor as their highly <unk> investments in the deal stocks are <unk> by the unexpected <unk> up of the <unk> for deal financing 
 deal stocks led the market down as they absorbed the heaviest losses 
 ual which triggered the slide opened monday at $ N down about N N from thursday 's close 
 amr opened monday at $ N down nearly N N from thursday 's close 
 both took further hits yesterday 
 hilton lost N N on friday paramount lost almost N N 
 a careful look reveals that where deal financing has been secured the target 's stock price was not affected on friday 
 the multibillion-dollar prospects where the bidder must line up a consortium of banks <unk> issue billions in high-yield debt were where the damage was concentrated 
 the market for so-called junk bonds has been setting the stage for friday 's dramatic march for several weeks 
 the growing financial difficulties of recent <unk> restructurings or takeovers such as resorts international integrated resources and campeau 's retailing empire have cast a pall over the entire market for high-yield securities 
 investors have reacted by ignoring recent efforts to float junk bonds by ohio <unk> and by forcing ramada to postpone indefinitely its planned junk-bond sale and restructuring 
 as a result high-yield mutual funds have declined across the board and the many firms planning to sell $ N billion in junk bonds before year-end are experiencing anxious times 
 these are all market excesses putting aside the <unk> boosts that the tax code gives to debt over equity and what we 've seen is the market <unk> them in 
 of course washington had n't been silent in the days leading up to the debacle and its tendency to <unk> in the leverage equation remains a troublesome prospect but those preliminary steps should n't <unk> us from the basic market <unk> that was at work on friday 
 if it is correct to find that concerns over corporate debt and lbos caused gray friday what are the implications for policy makers 
 after all the stock market 's response to the collapse of the ual deal might be taken to confirm the <unk> direction of regulators 
 is this a case where private markets are <unk> of washington 's <unk> of wall street 
 absolutely not 
 to the extent that friday 's sell-off reflected a sudden <unk> of the excesses of leverage the message is that wall street and the private markets are fully capable of imposing the appropriate incentives and sanctions on corporate behavior 
 the national economic interests are much better served allowing the private interests of bankers and investors be the ultimate judges of the investment quality of various lbo deals and leveraged restructurings 
 the recent difficulties in the junk-bond markets and the <unk> of bank capital for recent deals <unk> the wisdom of letting the free markets operate 
 if takeover premiums become excessive if lbo <unk> become too aggressive then the private market will recognize these problems more quickly and accurately than will policy makers and the markets will move with <unk> speed to impose appropriate sanctions 
 yes the broader exchanges got caught up in the <unk> but they rode the tiger up all year 
 not surprisingly he sometimes <unk> 
 the arbitragers and takeover <unk> got killed on gray friday while the besieged managers of prospective targets cheered <unk> 
 if you identify with the besieged managers you must concede that <unk> and effective relief from the excesses of the takeover market is more likely to come from the marketplace than from washington 
 if you side with the arbitragers and raiders you clearly have more to fear from private investors than from regulators although the delaware courts should never be underestimated 
 the truth is washington understands politics better than economics 
 although the average citizen is probably not <unk> too much from washington 's <unk> war against wall street regarding excessive financial <unk> actual legislation would probably impose considerable harm 
 any such attempt to <unk> good debt from bad debt or to draw the line at a particular industry such as the airlines is likely to blunt the spur that the proper amount of leverage provides both to equity markets and economic efficiency in general 
 far better for policy makers to concentrate on the war against drugs panama and the deficit all of them <unk> that seem never to end 
 mr. <unk> former top economist at the securities and exchange commission teaches at the university of rochester 's simon business school 
 tokyo share prices rebounded tuesday morning with the nikkei index of N selected stocks rising N points to close the morning session at N 
 the index slid N points or N N on monday 
 in the first N minutes of tuesday 's trading the nikkei index soared N points to N 
 by N a.m. tokyo time the index was up N points to N as investors hailed new york 's overnight rally 
 monday 's slide came in a relatively calm session that did n't provide much direction for other markets 
 shares also closed sharply lower across europe particularly in frankfurt although london and a few other markets recovered some ground after stocks began to rebound in new york 
 other asian and pacific markets had sharper losses than tokyo but the selling wave stopped short of <unk> another market crash 
 all eyes were on tokyo at the opening because it was the first major market to trade since friday 's 190.58-point plunge on wall street 
 but rather than set the tone for other markets japan 's major institutional investors chose to remain on the sidelines 
 still despite the sudden <unk> of stock-market turbulence managers of japanese investment funds said they were n't planning to unload u.s. or european equities 
 we did n't trade much today as our policy now is to wait and see said a fund manager at <unk> life insurance co 
 we would like to wait and see until trading goes around through europe and new york 
 the institutions appeared confident that japanese regulators would step in to ensure orderly trading if necessary and there was considerable speculation during the day that the finance ministry was working behind the scenes to do just that 
 but in the absence of <unk> trading its presence was never <unk> felt 
 at the close the nikkei average of N stocks stood at N down N points or N N 
 the broader tokyo stock price index sank N or N N to N 
 the day 's decline was generally in line with analysts ' weekend predictions 
 declining issues <unk> advancers N 
 but volume was thin at N million shares compared with N million friday 
 the market opened sharply lower with the nikkei average down nearly N after N minutes 
 a midmorning rebound brought it back to show a gain of about N at the end of the morning session but the rally failed in the afternoon and the market closed near the day 's low 
 the smaller stocks in the tokyo market 's second section also posted their biggest decline of the year 
 the tokyo stock exchange index for the second section fell N or N N to N 
 many investors trying to outperform the market 's major indexes have <unk> to these small issues in recent weeks 
 japanese investors and traders expressed relief that the tokyo market did n't fall more sharply 
 but its performance did bear some <unk> to events of two years ago during the october N global stock market crash 
 on oct. N N the friday before the black monday crash the new york market dropped N N and tokyo followed on monday with a N N drop 
 this time wall street 's plunge of N N friday was followed by yesterday 's N N loss in tokyo 
 two years ago tokyo 's biggest fall came the day after new york 's N N black monday plunge when the nikkei average fell N N 
 thus market participants yesterday were looking ahead nervously to wall street 's opening 
 but in new york yesterday the dow jones industrial average surged N to close at N on heavy volume of N shares although declining issues still outnumbered advancing ones on the broad market 
 <unk> <unk> a director at yamaichi investment trust & management co. called yesterday 's session a good scenario for japan 
 now we are looking for the time to place buy orders he said 
 for us institutional investors the chance for buying has come 
 <unk> <unk> general manager of the investment research department at <unk> trust & banking co. also was optimistic 
 he described friday 's plunge in the u.s. as a fleeting event resulting in part from excessive merger and acquisition activity 
 unless there is a panic this is the best time to buy as was the case two years ago he said 
 those shares which had posted gains on <unk> speculation were dashed with cold water but as far as major stocks are concerned there is n't much impact 
 other fund managers were similarly <unk> 
 we have no plans to adjust our asset allocation in foreign equities said <unk> <unk> chief portfolio manager in the pension fund management department at <unk> trust & banking co 
 he said friday 's wall street decline was well within the range of volatility that <unk> trust plans for when it charts its overseas investment strategy 
 among other asian and pacific markets malaysia and singapore had the biggest losses with the kuala lumpur composite index in malaysia falling N N and singapore 's <unk> times industrial index down N N 
 major indexes declined more than N N in australia and new zealand and N N in hong kong 
 <unk> manila seoul taipei and <unk> escaped with slightly smaller losses 
 brokers and fund managers said the region 's markets were reacting to friday 's wall street plunge even though that decline was due to local factors such as failed corporate buy-outs and a deteriorating junk-bond market 
 it 's pure psychology said william <unk> <unk> an account executive for drexel burnham lambert <unk> ltd. in hong kong 
 markets in this region are n't so geared to leveraged buy-outs and their economies generally are in good shape but there 's no doubt that asia is still following america 's lead 
 several analysts said malaysia and singapore had the biggest losses because they are relatively open to rapid cash flows 
 hong kong is the region 's next most open market but many foreign investors have been staying away from it since it plunged in june amid political turmoil in china 
 singapore took the hit because when people want to get out they tend to go where the liquidity is said elizabeth hambrecht a regional analyst with baring securities hong kong ltd 
 she pointed out that even after monday 's N N decline the <unk> times index is up N N this year so investors who <unk> out generally did so profitably 
 similarly kuala lumpur 's composite index yesterday ended N N above its N close 
 in hong kong the hang seng index fell N to finish at N 
 trading was heavy at about one billion shares compared with N million friday 
 but the session was orderly in contrast to the market 's four-day <unk> after the N crash 
 richard <unk> a director at hong <unk> baring international fund managers ltd. said the market probably has n't hit bottom yet but is close 
 if new york does n't collapse i see maybe another N N on the downside not counting the risk of bad news out of china he said 
 in australia sydney 's all <unk> index closed at N down N N its biggest drop since october N 
 but volume rose only to N million shares from N million friday 
 <unk> <unk> an analyst at brokerage firm <unk> <unk> & young ltd. described the market 's performance as <unk> as investors fled to <unk> australian stocks and <unk> entrepreneurial companies they perceived as having any takeover premium built into the price 
 london 's financial times-stock exchange 100-share index the most closely watched market barometer ended at its intraday high of N down N or N N 
 at its low shortly before wall street opened it was off more than N points 
 the financial times 30-share index closed N points lower at N 
 volume more than doubled to N million shares from N million friday 
 prices on the frankfurt stock exchange tumbled in heavy trading 
 the decline in the german stock index of N points or N N to N was the frankfurt market 's <unk> fall ever 
 retail investors dumped holdings on a massive scale pushing some blue-chip shares down as much as N N 
 analysts cited memories of two years ago when many small investors held on to their shares after the october crash but the west german market continued to decline <unk> for the next three months 
 here are price trends on the world 's major stock markets as calculated by morgan stanley capital international perspective geneva 
 to make them directly comparable each index is based on the close of N equaling N 
 the percentage change is since year-end 
 frank lloyd wright is reported to have said once that if you <unk> the world on its side everything loose would end up in california 
 we 've always thought that mr. wright underestimated california 's <unk> but maybe the state 's <unk> <unk> are starting to <unk> the forces that made it such a significant place 
 what else is one to make of the <unk> <unk> initiative just proposed by several major environmental groups and organized by the state 's attorney general 
 if passed by the voters the recently announced initiative would phase out major pesticides reduce carbon dioxide emissions by N N ban new offshore drilling ban chemicals thought to <unk> the ozone layer and create a new state environmental officer armed with a $ N million budget to sue any firm or agency he thinks is being too <unk> 
 the initiative is based largely on the <unk> of the green lobby the sierra club the league of conservation voters the natural resources defense council the national <unk> campaign and the citizens for a better environment 
 <unk> the environmental defense fund is having nothing to do with this one 
 not only californians but all americans would pay if this thing passed 
 the initiative bars the sale of any crops in california that do n't meet the initiative 's standards 
 kansas wheat farmers and florida fruit growers would have to adjust or give up the california market 
 in other words california is <unk> to take control of the nation 's farm policy 
 as usual the green lobby 's proposal is <unk> from scientific reality 
 consider the <unk> provision 
 the proposed initiative would mandate a reduction of carbon dioxide of N N 
 even if one buys into the whole greenhouse theory it is <unk> that reductions in a single state could have any impact on what is billed as a global problem 
 but if rational science and economics have nothing to do with the new environment initiative what is going on 
 the first place to look under these circumstances is at the ways in which the sponsors themselves will benefit 
 the key here is the <unk> of state attorney general john van de <unk> 
 he 's running for governor 
 mr. van de <unk> is the one who collected the plans from the various radical environmental groups and <unk> them into a single <unk> initiative to be placed on the ballot for election on nov. N N 
 that 's also the day of the gubernatorial election 
 the initiative seems to have been <unk> to include all the hot issues that set off the wealthy hollywood <unk> who <unk> money 
 and it allows mr. van de <unk> to get around campaign spending limits 
 he can spend the legal maximum for his campaign all the spending for the van de <unk> initiative on which there are no limits is <unk> 
 this initiative is being labeled the big green but maybe it should be called the big <unk> 
 the republican candidate sen. pete wilson is playing the initiative <unk> game too <unk> his own crime initiative 
 while it is possible that the big green initiative will be ruled unconstitutional it is of course <unk> that in modern california it could slide through 
 this is the state that recently passed the <unk> N <unk> initiative 
 if this new proposal ever does become law the green lobby will benefit directly 
 the initiative creates a free floating state environmental officer to sue companies or government agencies that do things he does n't like 
 that means the <unk> and such groups no longer would have to spend as much money on litigation taxpayers would bear the cost 
 mr. van de <unk> and his allies may be hoping that the environment is such a mom and <unk> issue among certain segments of california 's population now that almost any collection of <unk> <unk> nonsense can pass under its <unk> 
 of course the state 's liberals are not yet a nation <unk> themselves 
 george bush for example may decide that he does n't want to be the president who lost control of interstate commerce to an attorney general from california 
 and some other segments of california 's political and media culture may yet start to point out that the initiative would impose significant costs on the state 's less affluent citizens in the form of higher food prices and lost jobs 
 this <unk> initiative will help california define itself for the future either as a state still <unk> to economic and scientific reality or as one being led to wherever its <unk> activists want to take it 
 first there was a death watch 
 then <unk> 
 spurred by waves of large-scale buying in blue-chip stocks the dow jones industrial average rallied yesterday and erased about a half of friday 's 190.58-point plunge gaining N to N 
 it was the <unk> advance for the average of N blue chips on <unk> new york stock exchange volume of N shares the highest since the days after the N crash 
 while the advance cheered investors who feared a <unk> crash would occur yesterday it was strictly a <unk> rally fed by huge buying by bargain-hunting institutions and program traders 
 a troubling sign declining stocks on the big board outnumbered advancers N to N and the over-the-counter market that includes many smaller stocks suffered aftershocks of friday 's late big board plunge 
 the nasdaq otc index closed down N to N 
 meanwhile in a divergence in two of the market 's most important indicators the dow industrials ' sister average the <unk> dow jones transportation average tumbled N to N its <unk> decline next to the <unk> fall during the N crash 
 <unk> plunged on takeover disappointments in two airline stocks ual and amr which each fell more than N N when they reopened for trading yesterday after being suspended friday afternoon 
 ual the takeover stock at the center of friday 's 190.58-point market plunge fell N N to N N on nearly N million shares 
 overall this is a <unk> rally but it 's very selective said arthur <unk> jr. a veteran painewebber inc. trader at the big board 
 everyone was a little concerned about the general <unk> of the rally and failure of the otc market to get into plus territory 
 it 's just a strange feeling 
 i do n't think anyone left the place <unk> <unk> 
 the rally gave <unk> at least for now to the <unk> declaration of big board chairman john j. phelan jr. that friday 's market debacle was an <unk> condition and not a disaster 
 but to traders it looked like disaster on the N a.m. opening bell 
 the dow jones industrial average opened down N shortly after N 
 but most of the N blue-chip stocks in the average including eastman kodak and general motors could n't trade because of the heavy backlog of sell orders left over from friday 's <unk> rout 
 at N procter & gamble one of the most important dow <unk> of late opened down N N to N 
 the dow dropped to a quick <unk> loss and to many traders it looked as if stocks were headed for yet another big tumble 
 more stocks opened over the <unk> half hour as the N big board specialist firms in charge of keeping the market orderly <unk> to find buy orders from major brokerage firms to match the selling flood 
 then to make matters worse computerized sell programs kicked in <unk> stocks into <unk> losses 
 there was heavy stock-index arbitrage as traders sold big baskets of stock and bought stock-index futures to profit from the price discrepancies between the two markets 
 this was a <unk> from friday when standard & poor 's 500-stock index futures had closed at a sharp discount to stocks 
 the <unk> of the program selling dashed any hopes that some of the big program trading firms would hold off until the market stabilized 
 they did n't 
 the dow accelerated its slide losing N in the first N minutes of trading 
 with program traders seemingly in charge buyers backed away from the market and watched stocks fall 
 then at N the dow suddenly started to rebound and when it shot upward it did so even faster than the <unk> fall 
 and this time it was n't just the program traders who were responsible 
 all the selling had pushed stocks to such cheap values that big investment banks and major money management firms started buying stocks heavily 
 the program traders were in there too of course 
 but according to one trader the programmers did n't look as dominant on the upside as on the downside because there was also a lot of bargain-hunting by institutions 
 <unk> m. <unk> director of the new jersey division of investment which oversees $ N billion in investments said the first thing we did was to double our orders yesterday morning 
 with the market down like this we 'll probably take another $ N million and put it in the market 
 trading in walt disney co. particularly caught traders ' eyes 
 according to big board officials disney had one of the biggest <unk> imbalances on friday it was one of the seven stocks that could n't finish trading that day 
 the stock opened late at N N down N N 
 but then it shot upward N N as goldman sachs & co. stepped in and bought traders said 
 however disney specialist robert <unk> said i would be surprised if goldman represented N N of the opening volume 
 around wall street trading desks were relieved that they could at least play the market yesterday in contrast to friday 's gridlock 
 at donaldson lufkin & jenrette inc. head equity trader <unk> <unk> said i think the opening was <unk> 
 it was orderly 
 we put some orders together 
 there was n't a lot of panic selling either domestically or internationally 
 not like friday where they just took the market apart 
 still the market had n't yet crossed into positive territory and traders were <unk> 
 but in another dramatic burst the dow tacked on N points in five minutes and at N the index showed a gain of N 
 on the big board floor and on trading desks traders <unk> their approval 
 <unk> <unk> peck a trader in shearson lehman hutton inc. 's otc department i tell you this market acts healthy 
 around him scores of traders seemed to get a burst of energy their boss broke out bottles of <unk> water to cool them off 
 among big board specialists the cry was pull your offers meaning that specialists soon expected to get higher prices for their shares 
 it was <unk> on the upside said one big board specialist 
 but not everybody was making money 
 the <unk> on the chicago board options exchange the nation 's major options market was heavy after the trading in s&p N stock-index options was halted friday 
 many market makers in the s&p N index options contract had bullish positions friday and when the shutdown came they were frozen with huge losses 
 over the weekend clearing firms told the chicago market makers to get out of their positions at any cost monday morning 
 they were absolutely killed <unk> said one chicago-based options trader 
 some traders said that the closely watched major market index whose N stocks mimic the dow industrials did n't lead yesterday 's big rally 
 james <unk> a partner at specialist <unk> & <unk> said the difference between today and two years ago terrible tuesday oct. N N is that then we needed a <unk> to go into the major market index spend $ N million and get the program rally started 
 this time institutions saw the programs coming and backed away and backed away 
 then when the market was at a technical level to buy they came in with a <unk> 
 however according to one analyst the timing of major market index futures buying just before the turnaround was similar to that of terrible tuesday 
 futures were pulling the stock market higher said donald <unk> head of stock-index futures research at prudential-bache securities inc 
 although the big board 's specialist firms struggled through another highly volatile trading session their performance yesterday was better than during friday 's <unk> chaos according to traders and brokers who work with them 
 specialists were criticized for their inability to maintain orderly markets during the friday plunge 
 but yesterday even with halts in such major blue-chip stocks as merck we expected the halts and it was n't too bad said donaldson 's mr. <unk> who had been critical of the specialists ' performance on friday 
 according to a big board official while many stocks opened late there were subsequent trading halts in only three issues amr merck and <unk> energy 
 merck is one of the most important stocks in the major market index 
 no sector of the market has been <unk> during the past two days ' gyrations 
 yet from the dow industrials ' high on oct. N through friday 's plunge relatively good performances have been turned in by real-estate utilities precious metals and life insurance stocks 
 and yesterday the top performing industry group was oil field equipment issues 
 for example <unk> jumped N N to N <unk> rose N N to N N and baker hughes rose N N to N 
 because of the ual and amr <unk> airlines were the weakest sector of the market yesterday 
 philip morris was the big board 's most active issue rising N N to N N on nearly eight million shares 
 among other major issues coca-cola co. closed up N at N N on N million shares and american telephone & telegraph rose N N to N on nearly N million shares 
 shares of international business machines which reported earnings yesterday finished at N up N after slipping below N during friday 's session for the first time in five years 
 shares of three brokerage firms rose after they reported earnings 
 merrill lynch added N N to N painewebber rose N to N N and bear stearns rose N to N N 
 federal national mortgage association a recently hot stock climbed N to N on nearly N million shares 
 at a news conference after the close of trading yesterday the big board 's mr. phelan and other exchange officials praised the performance of their computers and personnel 
 mr. phelan said that program trading strategies were n't responsible for triggering friday 's decline despite a jump in the use of the computer-driven strategies in recent months 
 some N million of the more than N million shares traded in the final N minutes of friday 's session when the plunge in stock prices was concentrated were <unk> he said 
 program trades make up N N of the exchange 's volume on an average day but despite the increase friday it was certainly not something you would say <unk> the market decline mr. phelan said 
 mr. phelan expressed relief that the market rebounded yesterday 
 obviously every time we get this kind of reaction it 's going to make everybody nervous including me he said 
 he said that exchange officials had conversations with wall street firms throughout the weekend and that all the participants behaved very very <unk> today 
 meanwhile peter dapuzzo shearson 's head of retail equity trading praised institutional investors in the otc market who were heavy buyers of the nasdaq 's biggest technology issues yesterday amid a flood of selling by other investors 
 the institutions ca n't be criticized for their behavior mr. dapuzzo said in an interview 
 it was the opposite of what happened on oct. N 
 they used their judgment 
 they did n't panic during the first round of selling this morning 
 instead they bought on weakness and sold into the strength which kept the market orderly 
 maybe they learned from experience 
 mr. phelan said the performance of specialists during friday 's plunge was <unk> because out of N big board common stocks traded during the day only seven were closed and were n't reopened before the close 
 they did an excellent job mr. phelan said of the specialists 
 wall street traders on friday had complained about the trading <unk> 
 james a. white and <unk> <unk> contributed to this article 
 west germany 's green party joined its ideological <unk> <unk> <unk> and the <unk> institute in the legal battle to ground the atlantis shuttle and its <unk> galileo probe to jupiter 
 the <unk> greens wanted a washington federal appeals court to block today 's scheduled <unk> long enough for them to ask the world court to order a permanent cancellation of the $ N billion flight 
 a <unk> appeals panel yesterday refused to comply though liberal judge pat <unk> went out of her way to deny that this was a <unk> case 
 of course it was 
 nasa should now sue for fines against all three <unk> foreign and domestic for bringing this <unk> case 
 a house-senate conference approved a permanent smoking ban on all domestic airline routes within the continental u.s. and on all flights of six hours or less to alaska and hawaii 
 the restrictions would cover all but a small percentage of domestic air traffic and represent a major expansion of the current smoking ban on flights of two hours or less 
 the exemption allowed on longer flights to alaska and hawaii appears to be largely a <unk> <unk> for the traditionally powerful tobacco industry which has found itself increasingly isolated in the face of public pressure in recent years 
 by a N margin house negotiators initially rejected last night a senate provision covering all domestic flights 
 but the <unk> compromise was soon agreed to in subsequent discussions 
 as a practical matter flights from the west coast to hawaii would be covered as they are under the time limit but the language would exempt longer routes beginning for example in chicago or on the east coast 
 within the senate the ban has had aggressive support from sen. frank <unk> d. n.j. who has used his position as a senate appropriations subcommittee chairman to <unk> votes for the initiative 
 the measure is attached to the more than $ N billion fiscal N transportation bill within mr. <unk> 's jurisdiction and the final compromise is <unk> with more than $ N million in road projects earmarked by members as well as funds sought by major airports including denver 
 from the outset the tobacco industry has been uncertain as to what strategy to follow 
 but the industry retains support in the house leadership through the influence of grower states such as north carolina 
 majority whip william gray owes a political debt to southern agriculture lawmakers for his rise in the house and the philadelphia democrat used his position in the conference to salvage the exemption from a total ban 
 although the smoking provision has attracted the most public interest the underlying bill was the subject of <unk> lobbying because of its impact on air transportation and the more mundane but politically important projects of members 
 in a stark lesson in the power of the appropriations committees the house deliberately killed a handful of projects backed by lawmakers in florida illinois and pennsylvania who had voted against the panel leadership on the house floor 
 anybody can vote as they want said rep. william lehman d. fla. head of the house conferees 
 but if you make a request you should support the committee 
 within the federal aviation administration the final bill promises to increase spending for facilities and equipment by more than N N from last year and total operations would rise to $ N billion a N N boost 
 the facilities account includes $ N million for denver 's ambitious new airport and the competition for these funds created shifting alliances between urban lawmakers representing established airports in philadelphia and michigan and the major carriers to denver united and continental 
 leery of the costs and critics say competition the airlines have sought to gain leverage over the city of denver 
 texas air corp. which owns continental and the air transport association were prominent in the lobbying 
 the industry sought to impose conditions that would have delayed funds for the project until denver and the airlines had agreed to leases for N N of the gates 
 but this was rejected in favor of much <unk> language <unk> the transportation department to review the costs of the first phase expected to cost about $ N billion 
 though smaller in total dollars the conference agreed to preserve an estimated $ N million in controversial subsidies to carriers serving rural or isolated airports 
 the sum is more than double what the house had approved for the program but the list of qualified airports would be cut by N under new distance requirements and limits on the level of subsidy 
 congress previously cut six airports this year 
 the impact of the changes is to eliminate many of the most excessive cases where the government has been paying more than $ N for each passenger in subsidies 
 among rail and highway accounts the agreement provides $ N million for <unk> including $ N million for capital improvements 
 and <unk> grants for mass transit would be effectively frozen at $ N billion or $ N million more than last fiscal year 
 enjoying several blockbuster movie hits including batman los angeles-based guber-peters entertainment co. reported earnings for the first quarter ended aug. N of $ N million or N cents a share compared with a year-earlier loss 
 sony corp. which has offered to acquire the <unk> company is seeking to free its top executives peter guber and jon peters from an exclusive agreement with time warner inc. 's warner communications inc. so they can run columbia pictures entertainment inc 
 sony two weeks ago agreed to acquire columbia for $ N billion or $ N a share 
 warner sued sony and guber-peters late last week sony and guber-peters have <unk> charging warner with attempting to interfere in sony 's acquisition of the two companies 
 guber-peters 's net income in the latest quarter compared with a net loss of $ N million or N cents a share in the year-earlier period 
 the company said revenue rose N N to $ N million from $ N million reflecting the success of its movies <unk> in the <unk> and <unk> as well as the <unk> <unk> batman 
 a group including jon m. <unk> of salt lake city said it boosted its stake in <unk> chemical corp. to N N of the the common shares outstanding 
 as previously reported <unk> holdings corp. owned by jon m. <unk> and other members of his family proposed that <unk> corp. an affiliate of <unk> holdings acquire <unk> in a friendly transaction for $ <unk> in cash or $ N million 
 in a filing with the securities and exchange commission the <unk> group said it controls N <unk> common shares including N shares bought from aug. N to oct. N for $ N to $ N per share 
 officials at <unk> based in pittsburgh declined comment 
 congress has been critical of the bush administration for not sending enough aid to poland so it is getting ready to send its own version of a care package 
 last month the senate voted to send a delegation of congressional staffers to poland to assist its legislature the <unk> in democratic procedures 
 senator pete <unk> calls this effort the first gift of democracy 
 the poles might do better to view it as a <unk> horse 
 it is the vast shadow government of N congressional staffers that helps create such legislative <unk> as the N page <unk> reconciliation bill that claimed to be the budget of the united states 
 maybe after the staffers explain their work to the poles they 'd be willing to come back and do the same for the american people 
 <unk> <unk> plc a financially troubled irish maker of fine crystal and <unk> china reported that its pretax loss for the first six months widened to N million irish punts $ N million from N million irish punts a year earlier 
 the results for the half were worse than market expectations which suggested an interim loss of around N million irish punts 
 in a sharply weaker london market yesterday <unk> shares were down N pence at N pence N cents 
 the company reported a loss after taxation and minority interests of N million irish punts compared with a loss of N million irish punts for the year-earlier period 
 there were n't any extraordinary items 
 sales for the total group rose N N to N million irish punts compared with N million irish punts a year ago 
 <unk> has decided against paying an interim dividend 
 <unk> said the appointment of a new management team and the signing of a comprehensive labor agreement are expected to enhance the company 's long-term prospects 
 the sudden flight to quality that triggered friday 's explosive <unk> rally was reversed yesterday in a flight from quality rout 
 the setback in which treasury bond prices plummeted reflected a rebound in the stock market and profit-taking 
 it was a pretty wild day 
 our markets were closely tied to the stock market said joel <unk> manager of trading at smith barney harris upham & co 
 friday 's flight to quality was no longer needed once the stock market found its <unk> he said 
 some fixed-income investors had expected a further drop in stock prices after the nearly <unk> drop in the dow jones industrial average on friday 
 that caused investors to <unk> stocks and buy high-quality treasury bonds which are safer than other types of securities 
 but when stocks began to climb instead prices of treasury bonds declined 
 contributing to the selling pressure were <unk> by several investment firms advising clients to boost their stock holdings and reduce the size of their cash or bond portfolios 
 among the firms were merrill lynch & co. and dean witter reynolds inc 
 the bond market seemed to ignore evidence that the federal reserve eased credit conditions slightly by allowing the federal funds rate to <unk> as low as N N N 
 the closely watched rate on federal funds or overnight loans between banks slid to about N N N last week down from its perceived target level of about N N 
 the rate is considered an early signal of changes in fed policy 
 traders said yesterday 's modest easing did n't stir much enthusiasm because it had been widely expected 
 in fact some economists contend that the latest easing started last week 
 others note that some investors were disappointed because they had expected a more aggressive easing 
 the treasury 's benchmark 30-year bond ended about N N points lower or down about $ N for each $ N face amount 
 the reversal was even more evident among <unk> treasury securities 
 after treasury bill rates plummeted as much as N percentage point on friday they gave back <unk> of that amount yesterday 
 the bond-equivalent yield on three-month treasury bills for example was quoted late yesterday at N N compared with N N friday 
 investment-grade corporate bonds mortgage-backed securities and municipal bonds also fell 
 but prices of junk bonds which were battered friday in near standstill trading rebounded to post small gains after a volatile trading session 
 junk bonds opened as much as four points lower but staged a modest comeback as stock prices firmed 
 some traders said the high-yield market was helped by active institutional buying 
 in particular they said firms such as first boston corp. and drexel burnham lambert inc. began making a market in junk issues early in the session when prices hit severely depressed levels 
 i think the willingness of securities companies to make markets for high-yield issues improved the sentiment for junk bonds said john <unk> an economist at moody 's investors service inc 
 u.s. treasury bonds were higher in overnight trading in japan which opened at about N p.m. edt 
 the benchmark 30-year bond for example rose one point in early japanese trading in reaction to a quick <unk> drop in the tokyo stock market 
 but as japanese stocks rebounded treasurys retreated and ended just modestly higher 
 many u.s. trading operations wanting to keep a <unk> eye on japanese trading as an indication of where u.s. trading would begin were fully <unk> during the tokyo trading session 
 most of the action was during the night session said michael moore trading manager at continental bank 
 jay <unk> who often trades overnight for capital insight inc. beverly hills calif. said trading in tokyo was very active but highly volatile 
 we went down N point in N minutes right before lunch then after lunch we went up N point in N minutes he said 
 in tokyo trading is halted during <unk> 
 tokyo 's market turned out to be a bad bellwether for u.s. trading 
 when the market opened here bonds prices fell as the stock market regained strength 
 the bond market 's focus on stock activity was so strong yesterday that it <unk> today 's slate of economic data which includes the government 's report on august u.s. merchandise trade and september industrial production 
 industrial production is expected to have declined N N according to a consensus of economists surveyed by dow jones capital markets report 
 the august trade deficit is expected to have widened to $ N billion from $ N billion in july 
 a widening of that magnitude said one new york trader is not a favorable number 
 it could do damage to us 
 meanwhile agency supply is expected to weigh heavily on the market today when the federal home loan bank prices a $ N billion offering of one-year three-year five-year and 10-year maturities 
 tomorrow the resolution funding corp. will provide details of its first bond issue which is expected to total between $ N billion and $ N billion and carry a maturity greater than N years 
 resolution funding is a division of resolution trust corp. the new federal agency created to bail out the nation 's troubled thrifts 
 and this week the tennessee valley authority plans to price a $ N billion offering its first public debt borrowing in N years 
 there 's lots of supply the new york trader said 
 we have a couple or three tough weeks coming 
 treasury securities 
 prices of treasury bonds tumbled in moderate to active trading 
 the benchmark 30-year treasury bond was quoted late at a price of N N compared with a closing price of N N friday 
 the yield on the benchmark issue rose to N N from N N 
 the latest 10-year notes were quoted late at N N for a yield of N N compared with N N to yield N N 
 short-term interest rates fell yesterday at the government 's weekly treasury bill auction 
 the average discount rate on new three-month treasury bills was N N the lowest since the average of N N at the auction on oct. N N 
 the average discount rate was N N on new six-month bills the lowest since the average of N N at the auction on july N N 
 here are auction details 
 rates are determined by the difference between the purchase price and face value 
 thus higher bidding narrows the investor 's return while lower bidding widens it 
 the percentage rates are calculated on a <unk> year while the <unk> yield is based on a <unk> year 
 both issues are dated oct. N 
 the 13-week bills mature jan. N N and the 26-week bills mature april N N 
 corporate issues 
 investment-grade corporate bonds ended one to N N point lower 
 there were no new issues 
 foreign bonds 
 foreign bonds surged as the dollar weakened against most major currencies 
 among benchmark issues japan 's no. N N N bond due N ended on brokers screens at N up N point 
 the yield was N N 
 west germany 's N N N issue due june N ended at N up N point to yield N N 
 britain 's N N N bond due N ended N N higher at N N to yield N N while the N N N notes due N rose N to N N to yield N N 
 mortgage-backed securities 
 mortgage securities gave up most of friday 's gains as active issues ended N to N point lower 
 dealers said morning activity was hectic as prices dropped in response to gains in the stock market and losses in treasury securities but trading slowed to moderate levels in the afternoon 
 government national mortgage association N N securities for november delivery were quoted late yesterday at N N down N from friday N N N securities were down N at N N and N N securities were at N N off N 
 federal home loan mortgage corp. N N securities were at N N down N 
 on friday mortgage issues gained as much as N N 
 late yesterday ginnie mae N N securities were yielding N N to a 12-year average life assumption as the spread above the treasury 10-year note narrowed N percentage point to N 
 traders said there were some busy dealings in freddie mac and federal national mortgage association securities because underwriters from last week 's heavy slate of real estate mortgage investment <unk> issues moved to gather collateral for new deals 
 offsetting the <unk> purchases were continued heavy sales by mortgage <unk> which are producing increased amounts of fixed-rate mortgage-backed issues with lower rates 
 there was no new-issue activity in the derivative market 
 municipals 
 rebounding stocks and weaker treasury prices drove municipal bonds N to N point lower in late dealings 
 the session losses left municipal dollar bonds close to where they were before the 190.58-point drop in the dow jones industrial average friday prompted a capital markets rally 
 trading was hectic during the morning with players trying to gauge whether equities would continue friday 's free fall or stabilize after a brief spot of weakness 
 <unk> started the session flat to a touch higher on anticipation of further stock market erosion but bond prices rapidly turned south as it became more clear that a repeat of the october N crash was n't at hand 
 professionals dominated municipal trading throughout the session 
 traders said retail investors seemed to be <unk> the sidelines until a measure of volatility is <unk> out of the market 
 new jersey turnpike authority 's N N issue of N was off N at N N bid yielding N N up N percentage point from late friday 
 florida board of education 's N N N issue of N was N point weaker at N N bid 
 the N N N issue of <unk> bridge and tunnel authority of new york due N was off N at N N bid 
 and <unk> county va. water authority 's N N N issue of N was down N at N N bid 
 serial bond yields were up about N percentage point 
 <unk> corp. kansas city mo. said it 's weighing strategic alternatives for its business men 's assurance co. unit and is <unk> possible buyers of the life and health insurance operation 
 a <unk> spokesman said runaway medical costs have made health insurance a significant challenge and margins also have been <unk> by changes in the mix of life-insurance products consumers now demand 
 the business men 's assurance unit represented about $ N million of the company 's $ N million in N revenue and the unit 's operating income was about $ N million said the spokesman 
 <unk> 's investment banker alex brown & sons inc. has been authorized to contact possible buyers for the unit 
 <unk> transportation ltd. said it raised its stake in <unk> ltd. of <unk> to N N from N N 
 a spokesman for <unk> declined to disclose the price the toronto transportation and waste services concern paid for the additional shares which he said were acquired over the last couple of weeks 
 the spokesman said <unk> would n't increase its stake in <unk> beyond N N without a great deal of thought because of british takeover regulations that require a company acquiring more than N N to extend an offer to the rest of the company 's shareholders 
 <unk> a security services and auctions company trades on london 's stock exchange 
 <unk> is <unk> by canadian pacific ltd. a montreal transportation resources and industrial holding concern 
 <unk> co. a japanese maker of video games electronic information systems and playing cards posted a N N unconsolidated surge in pretax profit to N billion yen $ N million from N billion yen $ N million for the fiscal year ended aug. N 
 sales surged N N to N billion yen from N billion 
 net income rose N N to N billion yen from N billion 
 <unk> net fell to N yen from N yen because of expenses and capital adjustments 
 without detailing specific product <unk> <unk> credited its bullish <unk> in sales including advanced computer games and television entertainment systems to surging <unk> sales in foreign markets 
 export sales for leisure items alone for instance totaled N billion yen in the N months up from N billion in the previous fiscal year 
 domestic leisure sales however were lower 
 hertz corp. of park <unk> n.j. said it retained merrill lynch capital markets to sell its hertz equipment rental corp. unit 
 there is no pressing need to sell the unit but we are doing it so we can concentrate on our core business <unk> automobiles in the u.s. and abroad said william <unk> hertz 's executive vice president 
 we are only going to sell at the right price 
 hertz equipment had operating profit before depreciation of $ N million on revenue of $ N million in N 
 the closely held hertz corp. had annual revenue of close to $ N billion in N of which $ N billion was contributed by its hertz rent a car operations world-wide 
 hertz equipment is a major supplier of rental equipment in the u.s. france spain and the <unk> 
 it supplies commercial and industrial equipment including <unk> <unk> <unk> and electrical equipment <unk> <unk> <unk> and trucks 
 <unk> inc. reported a net loss of $ N million for the fiscal third quarter ended aug. N 
 it said the loss resulted from <unk> and introduction costs related to a new medical <unk> equipment system 
 in the year-earlier quarter the company reported net income of $ N or N cents a share 
 the manufacturer of <unk> diagnostic systems based in <unk> pa. reported a nine-month net loss of $ N million compared with net income of $ N million or N cents a share for the nine-month period a year earlier 
 in over-the-counter trading <unk> fell N cents to $ N 
 <unk> <unk> corp. expects to report third-quarter net of about $ N million or $ N a share down from $ N million or $ N a share a year earlier richard p. simmons chairman and chief executive officer told institutional investors in new york 
 sales for the <unk> producer of specialty <unk> and other materials fell to about $ N million in the third quarter from $ N million a year earlier he said 
 he said the third-quarter estimate indicates profit for the nine months of $ N a share almost equal to the full-year N earnings of $ N million or $ N a share 
 in the first nine months of N net was $ N million or $ N a share 
 mr. simmons said the third-quarter results reflect continued improvements in productivity and operating margins 
 he said capital spending next year will rise to about $ N million from about $ N million this year 
 u.s. banknote co. said it again extended the expiration date of its $ <unk> tender offer for international banknote co. to nov. N 
 u.s. banknote said it is in negotiations to sell certain facilities which it did n't name to a third party and it needs the extension to try to reach a definitive agreement on the sale 
 u.s. banknote said it believes the sale if completed apparently would satisfy antitrust issues raised by the u.s. justice department about u.s. banknote 's offer to buy international banknote 
 both of the new york-based companies print stock certificates and currency 
 u.s. banknote said there can be no assurance a sale agreement would be concluded 
 it also said the tender offer would probably have to be extended further to complete financing arrangements 
 u.s. banknote said citibank extended the expiration date of its commitment for senior secured financing to nov. N 
 the offer made june N has been extended several times 
 closely held u.s. banknote offered the $ N a share or $ N million for as many as N million shares or N N of international banknote 's shares outstanding 
 u.s. banknote said that as of oct. N N million shares or about N N of the fully diluted shares outstanding had been tendered 
 gitano group inc. said it agreed to buy N N of regatta sport ltd. a closely held apparel maker with the assumption of $ N million of contingent debt 
 under the terms of the contract new york-based gitano has the option to acquire the remaining N N of regatta a maker of men 's and women 's clothes sold primarily in department stores under certain conditions 
 that N N is now held by clifford parker regatta 's president and chief executive officer who will continue to manage regatta 's operations under gitano 
 in N regatta will have sales in excess of $ N million and will show a profit mr. parker said 
 gitano which makes <unk> apparel sold mainly through mass <unk> like k mart and <unk> said the regatta acquisition will enhance its strategy to expand into department stores 
 this fall gitano began manufacturing moderately priced clothes aimed at department stores under the <unk> <unk> trademark which gitano recently acquired 
 enron corp. houston said the sale of preference units of its newly formed enron <unk> partners l.p. master limited partnership subsidiary will result in an <unk> gain in the fourth quarter 
 in the year-ago quarter the natural gas concern had net income of $ N million or N cents a share on revenue of about $ N billion 
 those results included a $ N million charge related to the retirement of debt 
 in a related move enron said it increased the number of the partnership 's units it will offer to N from N 
 the old and revised numbers both include <unk> provisions 
 enron said each unit will be priced in the $ <unk> range and will represent about N N of the partnership equity 
 net proceeds from the offering are expected to be close to $ N million 
 goldman sachs & co. and drexel burnham lambert inc. are lead underwriters 
 arthur m. goldberg said he extended his unsolicited tender offer of $ N a share tender offer or $ N million for di giorgio corp. to nov. N 
 dig acquisition corp. the new jersey investor 's acquisition vehicle said that as of the close of business yesterday N shares had been tendered 
 including the stake dig already held dig holds a total of about N N of di giorgio 's shares on a fully diluted basis 
 the offer which also includes common and preferred stock purchase rights was to expire last night at midnight 
 the new expiration date is the date on which dig 's financing commitments which total about $ N million are to expire 
 dig is a unit of dig holding corp. a unit of rose partners <unk> 
 mr. goldberg is the sole general partner in rose partners 
 in august di giorgio a san francisco food products and building materials marketing and distribution company rejected mr. goldberg 's offer as inadequate 
 in new york stock exchange composite trading yesterday di giorgio closed at $ N a share down $ N 
 what does n't belong here 
 a. <unk> <unk> b. black-and-white <unk> c. radio <unk> shows 
 if you <unk> black-and-white <unk> you 're right 
 after years of <unk> into the background <unk> photography is coming back 
 trendy magazine advertisements feature stark black-and-white photos of hollywood <unk> pitching jeans shoes and liquor 
 portrait studios accustomed to shooting only in color report a rush to black-and-white portrait orders 
 and black-and-white photography classes are crowded with students 
 what 's happening in photography <unk> the popularity of black and white in fashion home <unk> and <unk> 
 on seventh avenue designers have been advancing the <unk> look with clothing <unk> done entirely in black and white 
 and classic black-and-white movies are enjoying a comeback on videocassette tapes spurred in part by the backlash against <unk> of old films 
 the <unk> is <unk> back to black and white says richard <unk> the general manager of eastman kodak co. 's professional photography division 
 until two years ago sales of black-and-white film had been declining steadily since the 1960s 
 but last year buoyed by increased use in advertising and other commercial applications sales increased N N and they are expected to jump at least that much again this year 
 photographic companies are scrambling to tap the <unk> market <unk> some black-and-white product lines and developing new ones 
 at kodak which largely ignored the market for years black-and-white film sales now account for nearly N N of the company 's $ N billion in film and paper sales annually up from N N three years ago 
 the rochester n.y. photographic giant recently began marketing <unk> N one of the fastest and most sensitive <unk> films 
 aimed at commercial <unk> the film can be used in very low light without <unk> quality says donald <unk> of <unk> newsletter 
 also trying to <unk> a portion of the $ N <unk> industry is <unk> corp. a unit of <unk> ag 
 <unk> recently signed olympic gold <unk> <unk> <unk> to <unk> a new line of black-and-white paper that 's geared to consumers and will compete directly with kodak 's papers 
 slated for market by the end of the year the paper could have been introduced a long time ago but the market was n't there then says an <unk> spokesman 
 the biggest <unk> of the black-and-white revival is likely to be international paper co. 's <unk> division known in the industry for its premium products 
 sales of <unk> 's four <unk> of black-and-white film this year are <unk> growth in the overall market although the company wo n't say by exactly how much 
 we hope the trend lasts says <unk> <unk> <unk> 's marketing communications director 
 why all the interest 
 for baby boomers who grew up being <unk> in color black and white seems <unk> and exotic 
 it has an <unk> almost <unk> quality to it says owen b. butler the chairman of the applied photography department at rochester institute of technology 
 you can shift out of reality with black and white he adds 
 such features have been especially attractive to professional <unk> and marketing executives who have been steadily increasing their use of black and white in advertising 
 processing of black-and-white commercial film jumped N N last year to N million rolls 
 consider gap inc. whose latest ad campaign features black-and-white shots of hollywood stars artists and other well-known <unk> <unk> the retailer 's jeans and <unk> 
 richard <unk> the account manager for the campaign says gap did n't intentionally choose black and white to <unk> its ads from the color spreads of competitors 
 we wanted to highlight the individual not the environment he says and black and white allows you to do that better than color 
 the campaign won a <unk> award as this year 's best ad by a specialty retailer 
 even food products and automobiles which have long depended on color are making the switch 
 companies feel black and white will convey a stronger statement says marc l. <unk> a chicago <unk> who is working on a black-and-white print ad for <unk> food corp. 's lean <unk> 
 other companies that are currently using <unk> ads include american express co. and <unk> america inc 
 portrait studios have also <unk> onto the trend 
 using black and white we can make <unk> look like stars says john <unk> 
 his <unk> photography studio in <unk> ore. doubled its business last year and he says is booked solid for the next five 
 one customer <unk> <unk> says she <unk> a color portrait for black and white because it 's more dramatic 
 i show it to my friends and they all say <unk> 
 it is n't ordinary like color 
 still most consumers are n't <unk> black-and-white film into their cameras to take family <unk> 
 one big obstacle is that few <unk> develop the film anymore 
 typically it must be <unk> to a handful of processors and may take a week or more to be processed and returned 
 black-and-white film costs consumers a little less than color film and processing costs the same 
 but for <unk> developing costs for black-and-white film are higher 
 some companies are starting to tackle that problem 
 <unk> for example recently introduced a black-and-white film that can be processed quickly by color labs 
 intent on wooing customers the company is also increasing its <unk> of black-and-white photography classes 
 similarly <unk> is <unk> scores of photography <unk> at high schools and colleges offering free black-and-white film and paper as prizes 
 and kodak is distributing an <unk> video to processors on how to develop its <unk> film more efficiently 
 other companies are introducing related products 
 charles <unk> co. a leading maker of photographic <unk> introduced last month a complete <unk> <unk> <unk> targeted at <unk> who want to process their own black-and-white photographs 
 the <unk> which has a suggested retail price of $ N and has already become a <unk> was introduced after retailers noticed numerous requests from parents for children 's photography equipment 
 it seems computers as <unk> have <unk> says ian <unk> <unk> 's chairman and chief executive officer 
 but some industry observers believe the <unk> of black and white is only a fad 
 they cite the emergence of still electronic photography more newspapers turning to color on their pages and <unk> improvements in the quality of color prints 
 black and white has n't made the same quantum <unk> in technological development as color says mr. butler of the rochester institute 
 the color print today is far superior to prints of N years ago 
 you ca n't say the same with black and white 
 but when popular photography a leading magazine for <unk> selected N of the greatest photos ever made for its latest issue celebrating photography 's <unk> anniversary all were black and white 
 it 's got a classic spirit and carries over <unk> says alfred <unk> of professional <unk> of america 
 that 's the appeal 
 <unk> newspapers inc. said improvements in advertising and subscription revenue led to a N N gain in third-quarter profit to $ N million or N cents a share from $ N million or N cents a share 
 sales rose more than N N to $ N million from $ N million 
 the sacramento calif. company also attributed improved performance to a lower effective tax rate and higher interest income 
 for the nine months the newspaper chain had almost a N N increase in profit to $ N million or N cents a share from $ N million or N cents a share 
 sales grew almost N N to $ N million from $ N million 
 <unk> publishes the sacramento calif <unk> and <unk> wash news tribune and other papers in western states 
 in composite trading on the new york stock exchange the company closed at $ N a share down N cents 
 agip s.p a. and societe national <unk> <unk> the state oil companies of italy and france respectively submitted an offer to buy <unk> suisse s.a 
 the price was n't disclosed 
 a spokesman for <unk> said that the swiss oil concern was <unk> the offer submitted last friday along with two other offers also submitted last week 
 those two offers were private and the spokesman refused to identify the bidding companies 
 the spokesman further said that at least two more offers are expected from other companies within two weeks 
 <unk> suisse owns an oil refinery in switzerland with a capacity of N barrels a day along with a network of gasoline retailing outlets 
 while friday 's plunging stock market prompted new fears about the economy 's prospects a <unk> indicator that has <unk> <unk> the economy 's ups and <unk> by exceptionally long lead times points to a sustained rise in overall business activity 
 the barometer developed by analysts at columbia university 's center for international business cycle research here reached a record high of N in august the latest month available and the columbia researchers estimate that it has moved even higher since then 
 the latest reading of N was up from N in july and N as recently as march 
 the august rise marked the fifth straight monthly gain for the indicator which uses the N average as a base of N 
 in contrast the commerce department 's widely followed index of leading indicators while up in august has fallen repeatedly since reaching a high early this year 
 its <unk> behavior through much of N has prompted some <unk> to anticipate the start of a new recession perhaps before year 's end 
 but the far stronger showing of the columbia index makes a recession any time soon highly unlikely says <unk> h. moore the director of the columbia facility 
 a leading authority on the business cycle mr. moore also is a member of the business cycle dating group the panel of private economists that decides for the government when <unk> and recessions begin and end 
 the group normally <unk> only when a change in the economy 's general course seems likely 
 no meeting is scheduled because the expansion shows no sign of going off the tracks mr. moore reports 
 based largely on the recent strength in their index called the long leading indicator the columbia analysts <unk> <unk> economic growth through the rest of this year and next year as well 
 they expect a N N rise in N in the gross national product after adjustment for inflation 
 underlying this optimism is the index 's longstanding ability to signal recessions or <unk> as the case may be by substantially greater periods than the commerce department 's index of leading indicators 
 over the full <unk> war ii era the columbia index on the average has entered sustained declines N months before the <unk> of recessions and turned up eight months before <unk> 
 the comparable lead times for the commerce index whose components include the stock market are far shorter N months before recessions and only three months before <unk> 
 the columbia economists also have <unk> how the long leading index would have behaved had it existed in N before the stock market crash in october that <unk> in the great depression 
 the indicator reached a peak in january N and then fell steadily up to and through the crash 
 it was an entirely different pattern from what we 're seeing now mr. moore says 
 a major source of the recent strength in the long leading indicator has been the performance of the dow jones corporate <unk> index which is not a part of the commerce index 
 in august the bond measure was at its highest monthly average since early N 
 it also rose last friday while the stock market sagged 
 other components of the long leading indicator include a ratio of prices to unit labor costs in manufacturing industries the <unk> version of the money supply adjusted for inflation and the volume of new <unk> permits 
 notably <unk> from the columbia index is the stock market which mr. moore says is simply no longer such a good indicator of the economy 's <unk> prospects though it still is useful for anticipating some <unk> <unk> and turns 
 as recently as N the stock market as reflected in the standard & poor 's index of N common stocks was rated by the national bureau of economic research as the best of the N leading indicators that then made up the commerce index 
 it was assigned a mark of N out of a possible N compared with scores ranging as low as N for the other components 
 the stock market has lost some <unk> power analysts at the columbia center claim because of the growing impact of international developments 
 stocks have become more sensitive to factors not directly tied to the domestic economy mr. moore says citing the exchange rate for the dollar on currency markets the <unk> balance and inflows of foreign capital 
 he also feels that the rise of such <unk> practices as program trading has diminished the stock market 's <unk> to the economic outlook 
 bsn s.a. a leading french food group said it agreed to acquire <unk> g.m.b h. a west german pasta maker 
 the value of the acquisition was n't disclosed 
 the move is in line with bsn 's strategy of gradually building its share of the european pasta market through external growth 
 bsn will initially acquire a N N interest in <unk> a closely held concern 
 the french group has an agreement giving it the right to buy all the shares outstanding and this could be completed within a few months a bsn spokeswoman said 
 the takeover was submitted for approval by the west german <unk> office bsn said 
 <unk> is west germany 's <unk> producer of pasta with sales of N million marks $ N million in N 
 it has N workers at three production units in southwest germany and is that nation 's leading producer of pasta <unk> 
 the acquisition <unk> bsn 's position in the european pasta market 
 the french group currently ranks second after <unk> group of italy whose sales are <unk> in the italian market 
 moody 's investors service inc. said it reduced its rating on $ N million of senior and subordinated debt of this thrift holding company to c from ca saying it believes bondholders will recover only negligible principal 
 the agency said it confirmed american continental 's preferred stock rating at c 
 american continental 's thrift unit los angeles-based lincoln savings & loan association is in <unk> and the parent company has filed for protection from creditor lawsuits under chapter N of the federal bankruptcy code 
 centrust savings bank miami 
 moody 's investors service inc. downgraded its ratings on the subordinated debt of centrust to <unk> from <unk> 
 the rating agency also reduced the ratings for long-term deposits to <unk> from <unk> and for preferred stock to ca from <unk> 
 the rating agency said about $ N million in securities was affected 
 the <unk> were prompted moody 's said by the continuing turmoil in the junk bond market and the suspension of dividends on centrust 's preferred stock 
 moody 's also said it believed the proposed sale of N centrust branches to great western bank could if completed endanger the thrift 's funding and market position 
 the stock market avoided a repeat of black monday as prices recovered from an early slide spurred by bargain-hunting institutions and program traders 
 the dow jones industrials closed up N points at N the <unk> gain ever after being down as much as N points in the morning 
 the rally erased about half of friday 's 190.58-point plunge but analysts are cautious about the market 's outlook 
 the dollar also rebounded while bond prices plummeted and treasury bill rates soared 
 junk bonds also recovered somewhat though trading remained stalled 
 gold also rose 
 tokyo stock prices bounced back in early trading tuesday following a N N plunge on monday 
 the dollar also moved higher in tokyo 
 donald trump withdrew his $ N billion offer for american air citing the recent change in market conditions 
 amr slid $ N to $ N 
 also a ual group tried to get financing for a lower bid possibly $ N a share 
 ual fell $ N to $ N 
 leveraged buy-outs of airlines would be subject to approval by the transportation secretary under a bill passed by a house subcommittee 
 ibm 's earnings tumbled N N in the third quarter slightly more than expected 
 the computer giant partly cited a stronger dollar and a delay in shipping a new high-end disk drive 
 analysts are <unk> about ibm 's outlook for the next few quarters 
 u.s. auto makers plan to decrease car production N N in the fourth quarter with virtually all the decline coming from the big three 
 output at <unk> and managed plants in the u.s. is due to rise N N 
 budget director darman said he wo n't give federal agencies much <unk> in coping with gramm-rudman spending cuts which took effect yesterday 
 darman hopes to <unk> congress to finish a deficit plan 
 the s&l bailout agency would be restricted by a new bill in how it raises capital 
 the ways and means plan would create another possible obstacle to selling sick thrifts 
 a natural gas rule was struck down by a federal appeals court 
 the regulation had prevented pipeline firms from passing part of $ N billion in costs along to customers 
 the supreme court agreed to decide whether a federal court may <unk> a merger that has won regulatory approval but been ruled <unk> in a private suit 
 merrill lynch 's profit slid N N in the third quarter 
 bear stearns posted a N N gain while painewebber had a decline due to a year-ago gain 
 blue arrow of britain plans to return to the name manpower and take a big write-off 
 the moves may help the firm <unk> its dominance of the u.s. <unk> market 
 j.p. morgan posted a $ N billion loss for the third quarter reflecting a big addition to loan-loss reserves 
 ncnb 's profit more than doubled 
 k mart agreed to acquire pace membership warehouse for $ N million expanding its presence in the growing <unk> business 
 markets 
 stocks volume N shares 
 dow jones industrials N up N transportation N off N utilities N up N 
 bonds shearson lehman hutton treasury index N off 
 commodities dow jones futures index N off N spot index N up N 
 dollar N yen off N N marks off N 
 monday october N N 
 the key u.s. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions 
 prime rate N N N 
 the base rate on corporate loans at large u.s. money center commercial banks 
 federal funds N N N high N N N low N N N near closing bid N N N offered 
 reserves traded among commercial banks for overnight use in amounts of $ N million or more 
 source fulton prebon u.s.a inc 
 discount rate N N 
 the charge on loans to depository institutions by the new york federal reserve bank 
 call money N N N to N N 
 the charge on loans to brokers on stock exchange collateral 
 commercial paper placed directly by general motors acceptance corp. N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days N N N to N days 
 commercial paper high-grade unsecured notes sold through dealers by major corporations in multiples of $ N N N N days N N N days N N N days 
 certificates of deposit N N one month N N two months N N three months N N six months N N one year 
 average of top rates paid by major new york banks on primary new issues of negotiable c.d.s usually on amounts of $ N million and more 
 the minimum unit is $ N 
 typical rates in the secondary market N N one month N N three months N N six months 
 bankers acceptances N N N days N N N days N N N days N N N days N N N days N N N days 
 negotiable bank-backed business credit instruments typically financing an import order 
 london late eurodollars N N N to N N N one month N N N to N N N two months N N N to N N N three months N N N to N N N four months N N N to N N N five months N N N to N N N six months 
 london interbank offered rates libor N N N one month N N N three months N N N six months N N N one year 
 the average of interbank offered rates for dollar deposits in the london market based on quotations at five major banks 
 foreign prime rates canada N N germany N N japan N N switzerland N N britain N N 
 these rate indications are n't directly comparable lending practices vary widely by location 
 treasury bills results of the monday october N N auction of short-term u.s. government bills sold at a discount from face value in units of $ N to $ N million N N N weeks N N N weeks 
 federal home loan mortgage corp freddie mac posted yields on 30-year mortgage commitments for delivery within N <unk> 
 N N standard conventional <unk> mortgages N N N N rate capped one-year adjustable rate mortgages 
 source telerate systems inc 
 federal national mortgage association fannie mae posted yields on N year mortgage commitments for delivery within N days priced at par N N standard conventional fixed <unk> N N N rate capped one-year adjustable rate mortgages 
 source telerate systems inc 
 merrill lynch ready assets trust N N 
 annualized average rate of return after expenses for the past N days not a forecast of future returns 
 intel corp. said it reached an agreement with <unk> computer systems corp. to develop software standards for intel 's <unk> microprocessor 
 the <unk> introduced earlier this year is intel 's entry in the crowded market for reduced instruction set computing or risc computers 
 intel based in santa clara calif. is the market leader for traditional microprocessors with its N family that forms the heart of <unk> personal computers 
 under the agreement intel will invest $ N million to acquire a N N stake in <unk> a maker of <unk> for scientists and engineers 
 <unk> based in <unk> mass. will license its <unk> technologies to intel providing users a way to let many <unk> microprocessors in a single computer work on a problem simultaneously 
 <unk> said it plans to use the microprocessor in future products 
 it declined to discuss its plans for upgrading its current product line 
 <unk> inc. which intends to expand its position in the medical and <unk> markets said it acquired a cotton and <unk> products division from closely held <unk> products corp. for $ N million 
 <unk> said it expects the division to add substantial sales volume and to make a positive contribution to our earnings in N and beyond 
 in N the cincinnati company earned $ N million or N cents a share on revenue of $ N million 
 <unk> said the division operates under the trade name <unk> and supplies the medical and <unk> markets 
 the business based in st. louis had sales of more than $ N million in the fiscal year ended march N <unk> said 
 burmah oil plc a british independent oil and specialty chemicals marketing concern said shv holdings n.v. of the netherlands has built up a N N stake in the company 
 james alexander a burmah spokesman said shv had previously owned a little under N N of burmah for about two years 
 the dutch company had n't notified burmah of its reason for increasing the stake he said 
 shv which last year merged its north sea oil and gas operations with those of <unk> group plc has been pegged by speculators as a possible suitor for burmah oil in recent weeks 
 shv also owns N N of <unk> 
 burmah which owns the <unk> brand of <unk> oils reported a N N rise in net income to # N million $ N million in the first half 
 j.p. industries inc. said it signed a definitive agreement to sell its builders ' hardware group to closely held <unk> inc. of beverly hills calif 
 terms were n't disclosed but a j.p. industries spokesman said the amount j.p. industries will get for the group is a little better than expected by the marketplace and the marketplace had been expecting $ N million to $ N million 
 the group consists of <unk> corp. and <unk> modern inc 
 j.p. industries which is based in ann <unk> mich. said the sale <unk> a previously announced program to <unk> itself of its hardware and plumbing supplies operations 
 the company 's remaining business is the manufacture and sale of engine and <unk> products for industrial and transportation applications 
 citing a $ N million provision for doubtful accounts dallas-based national heritage inc. posted a loss for its fourth quarter ended june N 
 a unit of troubled southmark corp. the operator of nursing homes and retirement centers said it sustained a net loss of $ N million or nine cents a share compared with net income of $ N million or eight cents a share a year earlier 
 operating revenue rose N N to $ N million from $ N million in the year-earlier quarter 
 the company said the $ N million reserve was created to reflect doubt about the <unk> of receivables owed to national heritage by some of the real estate partnerships it manages 
 the company also said expenses incurred by the previous board and management in the recent contest for control were recognized primarily in the first quarter ended sept. N 
 national heritage stock fell N cents yesterday to close at $ N a share in new york stock exchange composite trading 
 united biscuits holdings plc a british food producer announced the creation of a european group to bring together its trading interests in the region 
 the new group will <unk> all of united <unk> 's manufacturing and marketing operations in the food sector apart from those based in the u.s. 
 united biscuits said the combined group which will include businesses such as <unk> biscuits and terry 's <unk> will have annual sales of more than # N billion $ N billion and trading profit of more than # N million $ N million 
 the new structure will enable united biscuits to focus clearly upon opportunities for planned growth during the 1990s said bob <unk> deputy chairman and group chief executive 
 last month united biscuits agreed to sell its entire restaurant operations to grand metropolitan plc for # N million 
 an american journalist now is standing trial in namibia 
 this is the place that world opinion has been celebrating over in the expectation that it 's going to hold an election 
 the most likely winner will be the <unk> swapo rebels 
 the u.s. journalist 's crime was writing that the head of the commission charged with overseeing the election 's fairness <unk> <unk> was openly sympathetic to swapo 
 shortly after that mr. <unk> had scott stanley arrested and his <unk> confiscated 
 mr. stanley is on trial over charges that he violated a <unk> issued by the south african administrator general earlier this year which made it a crime punishable by two years in prison for any person to <unk> <unk> or <unk> the election commission 
 the stanley affair does n't <unk> well for the future of democracy or freedom of anything in namibia when swapo starts running the government 
 to the extent mr. stanley has done anything wrong it may be that he is out of step with the consensus of world intellectuals that the <unk> guerrillas were above all else the victims of <unk> by neighboring south africa 
 swapo has enjoyed favorable western media treatment ever since the u.n. general assembly declared it the sole <unk> representative of namibia 's people in 
 last year the u.s. <unk> a peace settlement to remove cuba 's <unk> <unk> from <unk> and hold free and fair elections that would end south africa 's control of namibia 
 the elections are set for nov. N 
 in july mr. stanley editor of american press international a washington <unk> conservative wire service visited namibia to report on the <unk> election campaign 
 he interviewed mr. <unk> head of a commission charged with investigating electoral <unk> and reported that mr. <unk> was openly sympathetic to swapo and indeed had defended its leaders in court 
 after mr. stanley 's article was published in two <unk> newspapers mr. <unk> had criminal charges brought against their editors publisher and lawyer 
 mr. stanley was arrested and charged along with the others when he returned to namibia this month 
 both the state department and the lawyers committee for freedom of the press have <unk> mr. stanley 's <unk> 
 mr. stanley 's arrest is the latest in a series of incidents that threaten to <unk> namibia 's elections 
 both south african and swapo <unk> are <unk> voters 
 the u.s. is in the habit of arranging peace settlements and then <unk> its hands over the <unk> results 
 it now has the chance to <unk> that record in namibia 
 state and the human-rights community should insist that mr. stanley and his fellow defendants be released and that the united nation 's monitors make certain that mr. <unk> commission <unk> election complaints from all sides 
 commodity futures prices generally reflected the stability of the stock market following its plunge friday 
 yesterday the stock market 's influence at first created nervousness 
 later however it became more of an <unk> than a <unk> force as individual markets reacted more to their own factors 
 gold the traditional haven in times of financial crisis continued its <unk> <unk> with the dollar rising early in the day as the currency fell and then giving up some of its gains as the dollar recovered 
 copper and crude oil reacted sharply to the concern that a crash yesterday could have a potentially devastating effect on the economy 
 copper fell and showed little rebound through the day as one of the major supply problems that had been supporting prices appeared to be solved 
 crude oil declined early but as the stock market retained early gains it too became stronger ending with a small net loss 
 trading in cotton and sugar was nervous and showed small declines 
 in chicago grain and soybean prices rose slightly 
 livestock and meat prices however dropped on concern that a financial crisis would cut consumption of beef and pork 
 in commodity markets yesterday precious metals futures prices were moderately higher as gold gave up some of its early gains and platinum behaved <unk> first falling and then later rising 
 silver performed quietly 
 the spot october gold price rose $ N to $ N an ounce 
 the more active december delivery gold settled with a gain of $ N an ounce at $ N after trading as high as $ N 
 december silver was up N cents an ounce at $ N 
 platinum behaved more like an industrial metal easing early on concern over a possible weaker economy but recovering later as the stock market strengthened 
 gold was nowhere the spectacular performer it was two years ago on black monday 
 for one thing last friday precious metals markets closed before the stock market went into its <unk> nose dive so it could n't react to it 
 back on friday oct. N <unk> the stock market declined during the day and gold prices surged as the stock market fell 
 the october N contract that day rose as much as $ N to as high as $ N and the more deferred positions due to mature as late as march N rose as much as $ N 
 on black monday oct. N N the october contract tacked on further gains rising to as high as $ N for a gain of almost $ N on top of the friday advances before giving up almost $ N of that at the close 
 yesterday 's october gain of $ N was <unk> compared with that 
 one analyst peter <unk> of <unk> & co. new york said the gold market already had some good <unk> technical factors that would have caused prices to rise with or without the stock market 
 what the stock market did was cause the rise to take place earlier than it would have happened said mr. <unk> 
 there 's a good chance that gold will retain its gains and rise further he said 
 he expects a drop in interest rates which would help gold by keeping the dollar from rising 
 finally according to mr. <unk> the impact of the strong dollar should be reflected in reduced exports in the august merchandise trade deficit when the figures are released today 
 this would be damaging to the dollar and supportive for gold he said 
 energy 
 worried that friday 's 190-point stock market plunge might be a <unk> of things to come for the economy petroleum futures traders called a halt to the recent string of increases in crude oil futures prices 
 the u.s. benchmark crude west texas intermediate closed at $ N a barrel for november delivery down N cents 
 some analysts said crude was due for a correction <unk> following several days of significant gains 
 but most market observers agreed that friday 's stock market drop is what <unk> spirits in the petroleum pits yesterday 
 until yesterday futures prices had been headed up on expectations that world oil demand will continue to be strong 
 the organization of petroleum exporting countries increased its production ceiling for the fourth quarter based on projections of robust demand 
 so any bearish indicator such as friday 's <unk> drop in the stock market sends <unk> through the oil markets as well 
 indeed after reacting early in the trading day to friday 's plummet futures prices firmed up again as traders took note of the stock market 's partial recovery yesterday 
 copper 
 futures prices fell and showed little rebound as one major labor problem that had been <unk> prices appeared to be solved 
 the december contract declined N cents a pound to $ N 
 prices were down from the outset of trading on concern that a drop in the stock market might create a weakened economy and a <unk> reduction in copper use 
 but the recovery in the stock market provided little help for copper as word spread that a three-month strike at the highland valley mine in british columbia was about over according to an analyst 
 highland valley is a large canadian producer and principal supplier to japan which recently began seeking copper elsewhere as its inventories shrank 
 last week it was reported that company and union negotiations had overcome the major hurdle the contracting out of work by the company 
 now the analyst said only minor points remain to be <unk> up 
 for all <unk> and purposes an agreement appears to have been achieved he said 
 copper inventories in new york 's commodity exchange warehouses rose yesterday by N tons to N tons 
 london metal exchange copper inventories last week declined N tons to N tons 
 the <unk> stocks decline was about as expected but the comex gain was n't 
 however this was brushed aside by concern over the stock market the analyst said 
 at one point in futures trading as the stock market firmed the december contract rose to as high as $ N but it was n't able to sustain the gain 
 it was simply <unk> he said and selling by funds that are computer <unk> helped depress prices 
 cotton 
 futures prices eased more in reaction to hurricane jerry than to any influence of the stock market 
 the december contract ended with a loss of N cent a pound at N cents 
 technical considerations following the hurricane which was a factor in the market friday caused prices to decline yesterday said ernest simon cotton specialist for prudential-bache securities new york 
 prices rose sharply friday as the storm approached texas and louisiana which is part of the mississippi delta <unk> area 
 however after <unk> the potential effect of the hurricane prices began to slip late friday mr. simon said 
 that selling continued yesterday and kept prices under pressure he said 
 <unk> weather is being predicted for the high plains of texas and the northern states of the delta during the coming weekend mr. simon said 
 that has n't yet captured traders ' attention he added 
 sugar 
 futures prices declined 
 the march contract was off N cent a pound at N cents 
 at one point in early trading the march price rose to as high as N cents when the stock market recovered but the price then fell back 
 a <unk> factor one analyst said was that india which had been expected to buy around N tons of sugar in the world market did n't make any purchases 
 india recently bought N tons and was expected to buy more the analyst said 
 another analyst thought that india may have pulled back because of the concern over the stock market 
 india may have felt that if there was a severe drop in the stock market and it affected sugar it could buy at lower prices said <unk> <unk> analyst for shearson lehman hutton new york 
 at any rate she added india needs the sugar so it will be in sooner or later to buy it 
 farm products 
 the prices of cattle and <unk> futures contracts dropped sharply because traders speculated that the stock market plunge friday will <unk> in the minds of u.s. consumers long enough to prompt them to rein in their spending at the supermarket which would hurt demand for beef and pork 
 the price of the <unk> contract for october delivery dropped its maximum permissible daily limit of N cents a pound 
 the prices of most grain futures contracts rose slightly yesterday out of relief that the stock market was showing signs of recovering 
 earlier in the session the prices of several soybean contracts set new lows 
 a broad rally began when several major processors began buying futures contracts apparently to take advantage of the price dip 
 knight-ridder inc. said it would report increased earnings per share for the third quarter contrary to reported analysts ' comments that the publishing company 's earnings would be down 
 a company spokesman said he believed the confusion was caused when james <unk> knight-ridder 's chairman and chief executive told new york analysts two weeks ago that knight-ridder 's earnings per share for the first nine months of N would be behind a little bit from like period of 
 the knight-ridder spokesman said the third-quarter earnings that the company plans to report oct. N are expected to be up 
 the spokesman said he was comfortable with revised analysts ' projections that the company would report earnings of between N cents and N cents a share compared with the N cents a share it reported for the N third quarter 
 knight-ridder said it agreed with estimates that net income for all of N would be around $ N a share compared with $ N a share a year earlier 
 in new york stock exchange composite trading yesterday knight-ridder closed at $ N down N cents 
 dd acquisition corp. said it extended its $ <unk> offer for dunkin donuts inc. to nov. N from yesterday 
 the offer has an indicated value of $ N million 
 dd acquisition is a partnership of unicorp canada corp. 's <unk> capital group unit and cara operations ltd 
 as previously reported under the terms of a <unk> agreement with dunkin donuts the partners agreed to keep their offer open until nov. N and not to acquire any additional shares except through a tender offer <unk> on that date 
 dd acquisition said that it already owns N N of the common shares of the <unk> shop chain and that as of the close of business friday an additional N N had been tendered to its offer 
 dunkin donuts is based in <unk> mass 
 cara operations a food services concern and unicorp a holding company with interests in oil and natural gas and financial services are based in toronto 
 golden west financial corp. riding above the turbulence that has troubled most of the thrift industry posted a N N increase of third-quarter earnings to $ N <unk> or N cents a share 
 the company earned $ N million or N cents a share in the year-ago quarter 
 herbert m. <unk> chairman and chief executive officer of the oakland calif. savings-and-loan holding company credited the high number of loans added to the company 's portfolio over the last N months for <unk> its earning asset base and improving profit performance 
 however the executive noted that <unk> demand for new mortgages depressed new loan <unk> to $ N billion N N below the same period last year 
 in savings activity mr. <unk> said consumer deposits have enjoyed a steady increase throughout N and topped $ N billion at quarter 's end for the first time in the company 's history 
 deposit growth amounted to $ N million more than double the year-ago figure 
 <unk> corp. benton harbor mich. said it has developed a process to recover environmentally harmful chlorofluorocarbons or cfcs that previously entered the atmosphere during <unk> repair of refrigerators and <unk> 
 the maker of home appliances said the process which involves the use of a <unk> plastic bag during repairs to capture the <unk> substance and transport it to a recycling center is already in use at a number of its service centers and will be available to all authorized repair centers by spring 
 earlier repairs <unk> the cfcs out of the home through a <unk> directly into the atmosphere 
 cfcs are widely used as <unk> <unk> and fire <unk> 
 but their use has been linked to a potentially dangerous depletion of the earth 's ozone layer and a number of companies are seeking to curtail use or at least <unk> of the substance 
 <unk> said we see this process as a small but important step toward eventual elimination of <unk> use in <unk> manufacture 
 <unk> energy corp. dallas said it discovered a new oil field northeast of its previously discovered <unk> field in the southeast <unk> area of indonesia 
 <unk> said it did n't run a production test on the three discovery wells it <unk> in the field which is about N miles from the <unk> field because the wells are similar to others <unk> at its <unk> and <unk> fields 
 however <unk> said it believes the reserves in the field are about N million barrels of oil 
 the <unk> field has estimated reserves of N million barrels and the <unk> field has estimated reserves of N million barrels 
 <unk> an independent oil and gas concern is the operator and owns a N N interest in the new field called northeast <unk> 
 other interests are owned by <unk> petroleum development <unk> ltd. c. <unk> energy co. ltd. <unk> <unk> <unk> g.m.b h. <unk> <unk> production ltd. <unk> oil indonesia ltd. <unk> <unk> co. ltd. <unk> <unk> ltd. <unk> shell <unk> <unk> a.g. and <unk> oil co 
 the <unk> contract area is held with <unk> the <unk> state oil company 
 environmental systems co. said it is <unk> its results to reduce its reported net income for the first nine months of its fiscal year after <unk> it took tax credits that already had been taken last year 
 the little rock <unk> <unk> services company said the <unk> will reduce its net for the nine months ended july N to $ N million or N cents a share from $ N million or N cents a share 
 net for the third quarter restated is $ N million or N cents a share 
 the company previously reported net of $ N million or N cents a share 
 the company said that for financial reporting purposes last year it took tax credits that will be recognized for tax purposes this year 
 but because of confusion it took those credits again in reporting its results through the first nine months 
 jack w. <unk> environmental systems president and chief executive officer said the change increases the company 's effective tax rate to about N N from N N 
 memotec data inc. said it signed a definitive merger agreement with isi systems inc. under which memotec will acquire isi for $ N u.s. a share or about $ N million in cash and securities 
 in american stock exchange composite trading isi closed up $ N at $ N 
 in montreal exchange trading memotec closed unchanged at N canadian dollars us$ N 
 memotec said under the agreement isi a <unk> mass. provider of computer software and services to the insurance industry will merge with a u.s. unit of memotec created for that purpose 
 memotec is a <unk> maker of telecommunications products and provider of telecommunications and computer services 
 memotec said the agreement calls for it to make a $ <unk> cash tender offer for all shares outstanding of isi 
 but it said charles johnston isi chairman and president agreed to sell his N N stake in isi to memotec upon completion of the tender offer for a combination of cash memotec stock and debentures 
 memotec said the tender offer is <unk> on among other things holders <unk> at least N N of the shares outstanding other than the shares held by mr. johnston 
 isi said its board has instructed management to accept inquiries from any others interested in making a bid 
 isi said it can withdraw from the merger agreement with memotec if a better bid <unk> 
 cms energy corp. jackson mich. said it has resumed the purchase of its common stock under a program approved by its directors in N 
 at the time of the original announcement cms said its board authorized the purchase of as many as five million of its shares 
 a spokesman said N million shares have been purchased since then 
 the company said it will buy additional shares from time to time in the open market or in private transactions at prevailing market prices 
 in composite trading on the new york stock exchange cms energy closed at $ N a share down N cents from the closing price of $ N a share on thursday before friday 's plunge 
 the utility company currently has about N million shares outstanding 
 morgan stanley & co. will act as the exclusive broker for the repurchase 
 hughes aircraft co. a unit of general motors corp. said it agreed to purchase the <unk> technology division of <unk> corp 
 terms of the agreement were n't disclosed 
 but for the fiscal year ended july N N the most recent period for which results were broken out the <unk> unit accounted for more than half the $ N million in sales recorded by the company 's government systems sector 
 <unk> which is based in <unk> conn. said the sale of the <unk> conn. unit is consistent with its restructuring strategy announced in april 
 in addition to making <unk> systems the unit also makes laser warning <unk> 
 these are used aboard military <unk> to warn pilots that a laser weapon has been focused on them 
 hughes of los angeles said the <unk> unit 's work <unk> efforts by its <unk> and data systems group which makes <unk> <unk> military <unk> and night vision equipment 
 hughes said it expects the sale to close by year end 
 the communications workers of america ratified a new regional contract and all but one of the local agreements with bell atlantic corp 
 <unk> 's new jersey commercial local which represents about N service representatives and marketing employees rejected the tentative agreement 
 both the union and the regional telephone company said they were working together to resolve differences 
 the new three-year contracts which replace ones that expired aug. N cover N bell atlantic employees 
 the <unk> follows a <unk> strike against the <unk> company 
 meanwhile <unk> and international <unk> of electrical workers members remain on strike against nynex corp. the new york-based regional phone company 
 the unions and the company last week agreed to <unk> 
 the <unk> represents N nynex workers and the <unk> represents N workers 
 for the moment at least euphoria has replaced anxiety on wall street 
 the dow jones industrial average jumped sharply yesterday to close at N panic did n't sweep the world 's markets and investors large and small seemed to accept friday 's dizzying 190-point plunge as a sharp correction not a <unk> 
 many went bargain-hunting 
 among those <unk> with relief was john h. gutfreund chairman of salomon brothers who took to the firm 's trading floor to monitor yesterday 's events 
 as the rally gained strength at N p.m. he <unk> broadly <unk> his <unk> <unk> and <unk> stanley <unk> his top stock trader on the back 
 at first it seemed as if history might repeat itself 
 as trading opened yesterday morning on the big board stocks of many of the nation 's biggest companies could n't open for trading because a wave of sell orders was overwhelming buyers 
 by N the dow industrials were off N points and the stock of ual corp. whose troubles had kicked off friday 's plunge still had n't opened 
 but then as quickly as the dow had fallen it began to turn around 
 it ended with a gain of N points 
 by the market 's close volume on the new york exchange totaled more than N million the fourth highest on record 
 the big board handled the huge volume without any obvious strain in sharp contrast to black monday of N 
 but the rally was largely confined to the blue-chip stocks which had been hard hit during friday 's selling frenzy 
 overall more big board stocks lost money than gained 
 and many arbitragers already reeling from friday 's collapse of the ual deal were further hurt yesterday when a proposed takeover of amr corp. the parent of american airlines collapsed 
 indeed the dow jones transportation average plunged N points its <unk> drop in history 
 world-wide trading was generally <unk> 
 the frankfurt stock exchange was hardest hit of the major markets with blue chips there falling N N 
 in london a midday rally left the market 's major index off N N and tokyo 's leading stock index fell only N N in surprisingly lackluster trading 
 other more <unk> traded asian markets were hit harder than tokyo 's but there were no <unk> declines 
 investors big and small say they learned valuable <unk> since the N crash in this age of computerized trading huge <unk> or <unk> in a few hours ' time must be expected 
 what 's more such short-term <unk> are <unk> and are no cause for panic selling 
 stephen boesel a major money manager for t. rowe price in baltimore says there was less panic than in N we had been through it once 
 in <unk> wis. <unk> <unk> who owns a supplier of <unk> equipment and is n't active in the stock market agrees 
 i look at it as a <unk> matter he says 
 many other factors played a part in yesterday 's comeback 
 the federal reserve signaled its willingness to provide liquidity the interest rate on its loans to major banks inched downward early in the day 
 foreign stock markets which kicked off black monday with a huge selling spree began the day off by relatively modest amounts 
 the dollar after falling sharply in overnight trading to N yen bounced back strongly to N thus easing fears that foreigners would unload u.s. stocks 
 and the widely <unk> opinion among most market experts that a crash was n't in store also helped calm investors 
 many major institutions for example came into work yesterday ready to buy some of the blue chips they felt had been sharply undervalued on friday 
 still amid all the <unk> and signs of relief over yesterday 's events some market professionals cautioned that there is nothing present in the current market system to prevent another dizzying drop such as friday 's 
 there is too much <unk> says money manager barry <unk> 
 computers have increasingly connected securities markets world-wide so that a buying or selling wave in one market is often passed around the globe 
 so investors everywhere nervously <unk> yesterday 's opening in tokyo where the nikkei average of N blue-chip stocks got off to a rocky start 
 the average plunged some N points or N N in the first N minutes of trading 
 but the selling wave had no conviction and the market first surged upward by N points then drifted lower closing down N 
 unlike two years ago most of japan 's major investors chose to sit this <unk> out 
 in merrill lynch & co. 's tokyo trading room some N traders and <unk> sat quietly with few orders to process 
 clients are all staying out of the market one merrill trader says 
 the relative calm in tokyo proved little comfort to markets opening up in europe 
 frankfurt 's opening was delayed a half hour because of a crush of sell orders 
 the beginning was chaotic says nigel <unk> a broker for commerzbank 
 in london the view from the trading floor of an american securities firm jefferies & co. also was troubling 
 a computer screen <unk> N blue-chip stocks colors each one red when its price is falling 
 the screen was a sea of red 
 i see concern but i do n't see panic says j. francis <unk> a new yorker who runs the <unk> office 
 london 's blue-chip stock index turned up just before N a.m new york time sending an encouraging message to wall street 
 when trading opened in new york at N a.m. edt stocks fell sharply as expected 
 futures markets in chicago had opened at a level suggesting the dow would fall by about N points 
 with sell orders <unk> up from friday about half the stocks in the dow could n't open on time 
 by N the industrial average had dropped N points 
 by N a.m. it was down N 
 ten minutes later the dow hit bottom down N points another N N 
 but shortly before then some of wall street 's sharpest traders say they <unk> a turn 
 the first thing that caught my eye that was encouraging was treasury bonds were off says austin george head of stock trading at t. rowe price 
 it meant that people were n't running <unk> to the safety of bonds 
 shortly after N a.m. the major market index a chicago board of trade futures contract of N stocks designed to mimic the <unk> exploded upward 
 stock traders were buoyed because an <unk> in the mmi had also started the recovery in stocks on the tuesday following black monday 
 the mmi has gone better shouted a trader in the london office of shearson lehman hutton 
 shearson 's london trading room went wild 
 traders shouted out as their reuters quotron and telerate screens posted an <unk> loss on wall street 
 then nine minutes later wall street suddenly rebounded to a gain on the day 
 rally rally rally shouted shearson 's andy rosen 
 this is panic buying 
 major blue-chip stocks like philip morris general motors and <unk> & gamble led the rally 
 japanese were said to be heavy buyers 
 german and dutch investors reportedly loaded up on kellogg co 
 then traders say corporations with share buy-back programs kicked into high gear triggering gains in among other issues <unk> <unk> and mcdonald 's 
 walt disney co. which had one of the biggest <unk> imbalances on friday and was one of seven stocks that halted trading and never reopened that day opened yesterday late at N down N 
 but then it suddenly burst upward N as goldman sachs & co. stepped in and bought almost every share offer traders said 
 by N the dow had turned up for the day prompting <unk> on trading desks and exchange floors 
 among big board specialists the cry was pull your offers meaning that specialists soon expected to get higher prices for their shares 
 it was <unk> on the upside said one big board specialist 
 what we had was a real old-fashioned rally 
 this technical strength spurred buying from wall street 's black boxes computer programs designed to trigger large stock purchases during bullish periods 
 typical perhaps was <unk> 's dean <unk> 
 mr. <unk> who manages $ N billion says we turned the trading system on and it did whatever it was <unk> to do 
 asked what stocks the computer bought the money manager says i do n't know 
 not everybody was making money 
 the <unk> on the chicago board options exchange the nation 's major options market was heavy after the trading in s&p N stock-index options was halted friday 
 many market makers in the s&p N index options contract had bullish positions friday and when the shutdown came they were frozen with huge losses 
 over the weekend clearing firms told the chicago market makers to get out of their positions at any cost monday morning 
 they were absolutely killed <unk> said one chicago-based options trader 
 meanwhile a test of the stock market 's rally came at about N p.m. with the dow at N up N points on the day 
 charles <unk> a strategist at merrill lynch says bargain hunting had explained the dow 's strength up to that point and that many market professionals were anticipating a drop in the dow 
 moreover the announcement that real estate <unk> and sometime raider donald trump was <unk> his offer for amr corp. might have been expected to <unk> traders 
 instead the rally only <unk> for about N minutes and then <unk> forward as institutions resumed buying 
 the market closed minutes after reaching its high for the day of 
 across the country many people took yesterday 's events in <unk> while remaining generally uneasy about the stock market in general 
 says james norman the mayor of <unk> mo. i do n't invest in stocks 
 i much prefer money i can put my hands on 
 while mayor norman found the market 's performance monday reassuring he says he remains uneasy 
 we have half the experts saying one thing and half the other about the course of the economy 
 ralph <unk> a farmer and <unk> store operator in <unk> neb. says of the last few days events if anything good comes out of this it might be that it puts some of these lbos on the <unk> 
 says gordon fines a money manager at <unk> financial services in minneapolis you 're on a roller <unk> and that may last 
 the public is still cautious 
 skipper 's inc. <unk> wash. said it signed a definitive merger agreement for a national pizza corp. unit to acquire the N N of skipper 's inc. it does n't own for $ N a share or about $ N million 
 <unk> acquisition co. a national pizza unit plans to begin a tender offer for skipper 's on friday <unk> on at least two-thirds of skipper 's shares being tendered 
 <unk> <unk> national pizza said the transaction will be financed under its revolving credit agreement 
 in national over-the-counter trading skipper 's shares rose N cents to $ N 
 skipper 's said the merger will help finance remodeling and future growth 
 skipper 's previously turned down a $ <unk> proposal from national pizza and pizza hut inc. questioned whether the purchase would violate national pizza 's franchise agreements 
 national pizza said it settled its dispute with pizza hut allowing it to make the purchase 
 also skipper 's results began to turn around permitting a higher offer national pizza said 
 for the N weeks ended sept. N skipper 's had net income of $ N or N cents a share compared with a net loss a year earlier 
 revenue was $ N million 
 east germans rallied as officials reportedly sought honecker 's <unk> 
 in what was considered the largest protest in the communist state 's <unk> history at least N demonstrators marched through the southern city of leipzig to press demands for democratic freedoms opposition activists said 
 police did n't intervene 
 meanwhile as the first of more than N east germans trying to <unk> to the west through poland <unk> their <unk> a west german newspaper reported that regional communist officials demanded the dismissal of hard-line leader honecker 
 secretary of state baker in a foreign policy speech called for the reunification of germany saying it was the legitimate right of the german people 
 gorbachev blamed the soviet union 's press for contributing to the nation 's mounting problems 
 at a meeting friday the kremlin leader complained about recent articles that raised the <unk> of civil unrest and accused the media of fueling panic buying of goods by publishing stories about impending shortages 
 house-senate conferees approved a permanent smoking ban on domestic airline routes within the continental u.s. and on flights of less than six hours to alaska and hawaii 
 the curbs would cover all but a small percentage of flights and represent an expansion of the current ban on flights of less than two hours 
 e. robert <unk> was sentenced by a u.s. judge in new york to six years in prison and fined $ N for his racketeering conviction in the wedtech scandal 
 <unk> an associate of <unk> general <unk> was found guilty in august of taking $ N in illegal <unk> from the <unk> defense contractor 
 nasa resumed the <unk> for today 's launch of the space shuttle atlantis and a federal appeals court in washington dismissed a lawsuit by anti-nuclear groups to delay the flight because the <unk> galileo space probe was aboard 
 the space agency said it did n't expect weather or protesters to block the <unk> 
 the bush administration is preparing to extend a ban on federal financing of research using <unk> tissue government sources said 
 a temporary prohibition was imposed in march N 
 while anti-abortion groups are opposed to such research scientists have said <unk> such tissue could be effective in treating <unk> 
 delegates from N nations endorsed a ban on world ivory trade in an attempt to rescue the endangered elephant from <unk> 
 five african nations however said they would continue selling the valuable <unk> 
 <unk> held reconciliation talks with <unk> at the egyptian resort of <unk> <unk> 
 it was the <unk> leader 's first trip to egypt in N years 
 they announced a reduction in <unk> for travel but did n't show any real signs of <unk> full diplomatic ties 
 the egyptian president said he would visit libya today to resume the talks 
 seoul and <unk> reached a tentative agreement to allow visits between families on the divided korean peninsula 
 such family <unk> would be the second since N 
 differences remained between the north and south korean governments however over conditions for the exchanges 
 freed black <unk> resumed political activity in south africa and vowed to fight against apartheid raising fears of a possible white backlash 
 the nation 's main white opposition party warned that the government 's release sunday of eight black political <unk> <unk> bringing chaos and eventual black marxist rule to the nation 
 the white house said bush is fully satisfied with cia director webster and the intelligence agency 's performance during the oct. N failed coup in panama 
 the washington post reported that unidentified senior administration officials were frustrated with webster 's <unk> activities during the <unk> and wanted him replaced 
 poland 's legislature approved limits on automatic wage increases without special provisions for food price rises 
 the vote was considered a test of the <unk> government 's resolve to proceed with a harsh <unk> program 
 norway 's king <unk> <unk> installed a <unk> <unk> government as <unk> <unk> <unk> 's <unk> labor regime <unk> power 
 the <unk> cabinet is led by prime minister jan <unk> who acknowledged a difficult situation since the coalition controls only N seats in <unk> 's <unk> legislature 
 el salvador 's government opened a new round of talks with the country 's leftist rebels in an effort to end a <unk> civil war 
 a spokesman said the guerrillas would present a cease-fire proposal during the negotiations in costa rica that includes constitutional and economic changes 
 the state department said there was a possibility that some nicaraguan rebels were selling their <unk> arms to <unk> guerrillas but insisted it was n't an organized effort 
 separately secretary of state baker complained about a u.n. aide who last week told the contras to <unk> as part of a regional peace accord 
 died <unk> <unk> N actor and director in los angeles of <unk> 
 <unk> <unk> N <unk> novelist and <unk> sunday in paris of cancer 
 british retail sales volume rose a provisional N N in september from august and was up N N from september N the department of trade and industry said 
 for the three months ended in september retail sales volume was down N N from the previous three months and up N N from a year earlier 
 chicago investor william <unk> agreed to sell three divisions of cluett peabody & co. for about $ N million to <unk> s.a. a closely held clothing maker based in paris 
 shortly after completing the $ N billion acquisition of west <unk> inc. in april mr. <unk> 's holding company <unk> inc. said it was considering the sale of cluett a leading <unk> maker and one of west <unk> 's biggest units 
 included in the sale are cluett units that make men 's shirts under the arrow name <unk> under the gold <unk> name and <unk> through the <unk> division 
 the companies said the agreement is subject to <unk> 's <unk> of financing and to regulatory and other approvals 
 they said the sale is expected to be concluded by the end of november 
 mr. <unk> said the sale of three of cluett 's four main divisions plus other anticipated west <unk> asset sales by december should bring in a total of about $ N million 
 he did n't elaborate on other asset sales being considered 
 mr. <unk> followed a similar pattern when he acquired northwest industries inc. and then sold much of its assets 
 but he kept fruit of the <unk> inc. the underwear maker that he still controls and serves as chairman and chief executive 
 cluett was an independent company until west <unk> acquired it for $ N million in cash and stock in N 
 in the fiscal year ended sept. N N cluett had operating profit of $ N million on sales of $ N million 
 <unk> sells clothes under various labels including <unk> <unk> <unk> and bill robinson for men and ralph <unk> for women 
 a spokesman said the company had sales of $ N million in N 
 in new york stock exchange composite trading west <unk> fell N cents to $ N 
 britain 's blue arrow plc intends to change its name to manpower plc and write off a chunk of the nearly $ N billion in good will realized in the takeover of <unk> manpower inc 
 blue arrow chairman mitchell fromstein said in an interview that the two steps may be a prelude to <unk> the world 's biggest <unk> group in the u.s. 
 mr. fromstein disclosed the planned steps expected within a few months as blue arrow posted a N N drop in its third-quarter pretax earnings 
 the name change and good will write-off could help <unk> blue arrow 's dominance of the u.s. <unk> market and give it a more american image as u.s. investors turn jittery about foreign stocks after friday 's market plunge 
 u.s. holders now own more than N N of blue arrow compared with N N last january 
 in the u.s. market the recognition of the manpower name is <unk> stronger than blue arrow mr. fromstein said 
 the moves also could <unk> shareholders ' perception of blue arrow as a company in turmoil 
 it further <unk> the concept that blue arrow is a thing of the past said doug arthur an analyst at kidder peabody & co. in new york 
 the proposed changes all make a lot of sense to me he added 
 in a widely publicized <unk> coup mr. fromstein ousted <unk> berry as blue arrow chief executive in january a month after mr. berry had forced mr. fromstein out as the $ N <unk> chief of <unk> manpower 
 mr. fromstein <unk> his control in april by taking over from mr. berry as chairman 
 but the blue arrow <unk> is n't over yet as the british government is investigating a disputed # N million $ N million loan which mr. fromstein has said was made under mr. berry 's direction 
 blue arrow was able to pull off the $ N billion takeover of manpower in N largely because different british and american accounting standards produce higher reported earnings for british companies 
 under british rules blue arrow was able to write off at once the $ N billion in good will arising from the purchase 
 as a <unk> company blue arrow would have to <unk> the good will over as many as N years creating a continuing drag on reported earnings 
 good will is the excess of cost of an acquired firm operating unit or assets over the current or fair market value of those assets 
 but with so many shares now held in the u.s. blue arrow reports its earnings two ways based on both u.k. and u.s. accounting standards 
 our balance sheets look like they came from alice 's <unk> mr. fromstein said 
 the british version shows a handful of pounds of net worth following the N write-off of good will while the american version reflects $ N billion of net worth because almost none of the good will has been written off 
 mr. fromstein said he hopes to <unk> some of the good will left on blue arrow 's u.s. books in one fell <unk> but would n't specify how much 
 people close to blue arrow suggested the write-down would represent a sizable chunk with executives claiming prior management <unk> the extent of manpower 's good will 
 that move along with the return to the manpower name could bolster the company 's prospects during possibly difficult times for temporary help 
 the number of u.s. temporary workers fell about N N in the N months ending aug. N after sliding nearly N N in july said kidder peabody 's mr. arthur 
 blue arrow blamed the pretax profit drop in the quarter ended july N partly on slower earnings growth of <unk> units in britain 
 overall pretax profit slid to # N million in the quarter from # N million a year earlier 
 richard g. sim the man credited with <unk> applied power inc. from an <unk> into a <unk> player in the global market for <unk> tools hopes to guide a similar turnaround at the company 's latest acquisition barry wright corp 
 the 45-year-old former general electric co. executive figures it will be easier this time 
 but analysts while <unk> the acquisition say applied 's chief executive faces a tough challenge in <unk> the two companies 
 barry wright acquired by applied for $ N million makes <unk> equipment and <unk> systems 
 the <unk> mass. company 's sales have been <unk> and its profits have dropped 
 last year 's earnings of $ N million including $ N from a restructuring gain were far below the year-earlier $ N million 
 besides spurring barry wright 's sales which were $ N million in N mr. sim must <unk> its costs and product line 
 the question is how long it 's going to take barry wright to make a contribution says f. john <unk> an analyst at blunt ellis <unk> in milwaukee 
 the answer will help determine whether applied continues to reach the ambitious goals set by mr. sim 
 the butler wis. manufacturer went public at $ N a share in august N and mr. sim 's goal then was a $ N per-share price by N 
 strong earnings growth helped achieve that price far ahead of schedule in august N 
 the stock has since <unk> trading around $ N a share last week and closing yesterday at $ N in national over-the-counter trading 
 but mr. sim has set a fresh target of $ N a share by the end of 
 reaching that goal says robert t. <unk> applied 's chief financial officer will require efficient reinvestment of cash by applied and <unk> of its healthy N N rate of return on operating capital 
 in barry wright mr. sim sees a situation very similar to the one he faced when he joined applied as president and chief operating officer in N 
 applied then a closely held company was <unk> under the management of its controlling family 
 while profitable it was n't growing and was n't providing a satisfactory return on invested capital he says 
 mr. sim is confident that the drive to dominate certain niche markets will work at barry wright as it has at applied 
 he also <unk> an <unk> <unk> to develop a corporate culture that rewards managers who produce and where <unk> is shared 
 mr. sim considers the new unit 's operations fundamentally sound and adds that barry wright has been fairly successful in moving into markets that have n't interested larger competitors 
 with a little patience these businesses will perform very <unk> mr. sim says 
 within about six months things will be moving in the right direction he predicts 
 mr. sim figures it will be easier to turn barry wright around since he 's now in the driver 's seat 
 when he came to applied i did n't have the power to execute as i do today he says 
 he was named chief executive officer of applied in N and became chairman last november 
 at applied mr. sim set growth as his first objective 
 he took the company public in an offering that <unk> applied about $ N million which helped launch the company 's acquisition program 
 sales climbed to an estimated $ N million in fiscal N ended aug. N from $ N million in fiscal N 
 the company expects that earnings which have marched steadily upward in recent years reached about $ N million or $ N a share in the fiscal year just ended up from $ N million in fiscal N and $ N million in N