wsj21a/22100001.gz: Consumers may want to move their telephones a little closer to the TV set .
wsj21a/22100002.gz: Couch \@-\@ potato jocks watching ABC &apos;s &quot; Monday Night Football &quot; can now vote during halftime for the greatest play in 20 years from among four or five filmed replays .
wsj21a/22100003.gz: Two weeks ago , viewers of several NBC daytime consumer segments started calling a 900 number for advice on various life \@-\@ style issues .
wsj21a/22100004.gz: And the new syndicated &quot; reality &quot; show &quot; Hard Copy &quot; records viewers &apos; opinions for possible airing on the next day &apos;s show .
wsj21a/22100005.gz: Interactive telephone technology has taken a new leap in sophistication , and television programmers are racing to exploit the possibilities .
wsj21a/22100006.gz: Eventually viewers may grow bored with the technology and resent the cost .
wsj21a/22100007.gz: But right now programmers are figuring that viewers who are busy dialing up a range of services may put down their remote control zappers and stay tuned .
wsj21a/22100008.gz: &quot; We &apos;ve been spending a lot of time in Los Angeles talking to TV production people , &quot; says Mike Parks , president of Call Interactive , which supplied technology for both ABC Sports and NBC &apos;s consumer minutes .
wsj21a/22100009.gz: &quot; With the competitiveness of the television market these days , everyone is looking for a way to get viewers more excited . &quot;
wsj21a/22100010.gz: One of the leaders behind the expanded use of 900 numbers is Call Interactive , a joint venture of giants American Express Co. and American Telephone &amp; Telegraph Co .
wsj21a/22100011.gz: Formed in August , the venture weds AT &amp; T &apos;s newly expanded 900 service with 200 voice \@-\@ activated computers in American Express &apos;s Omaha , Neb . , service center .
wsj21a/22100012.gz: Other long \@-\@ distance carriers have also begun marketing enhanced 900 service , and special consultants are springing up to exploit the new tool .
wsj21a/22100013.gz: Blair Entertainment , a New York firm that advises TV stations and sells ads for them , has just formed a subsidiary -- 900 Blair -- to apply the technology to television .
wsj21a/22100014.gz: The use of 900 toll numbers has been expanding rapidly in recent years .
wsj21a/22100015.gz: For a while , high \@-\@ cost pornography lines and services that tempt children to dial ( and redial ) movie or music information earned the service a somewhat sleazy image , but new legal restrictions are aimed at trimming excesses .
wsj21a/22100016.gz: The cost of a 900 call is set by the originator -- ABC Sports , for example -- with the cheapest starting at 75 cents .
wsj21a/22100017.gz: Billing is included in a caller &apos;s regular phone bill .
wsj21a/22100018.gz: 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 originator , which must cover advertising and other costs .
wsj21a/22100019.gz: In recent months , the technology has become more flexible and able to handle much more volume .
wsj21a/22100021.gz: ( People in the phone business call this technology &quot; 900 click . &quot; )
wsj21a/22100022.gz: Now , callers are led through complex menus of choices to retrieve information they want , and the hardware can process 10,000 calls in 90 seconds .
wsj21a/22100023.gz: Up to now , 900 numbers have mainly been used on local TV stations and cable channels .
wsj21a/22100024.gz: MTV used one to give away the house that rock star Jon Bon Jovi grew up in .
wsj21a/22100026.gz: The newest uses of the 900 \@-\@ interactive technology demonstrate the growing variety of applications .
wsj21a/22100027.gz: Capital Cities / ABC Inc . , CBS Inc. and General Electric Co . &apos; s National Broadcasting Co. unit are expected to announce soon a joint campaign to raise awareness about hunger .
wsj21a/22100028.gz: The subject will be written into the plots of prime \@-\@ time shows , and viewers will be given a 900 number to call .
wsj21a/22100029.gz: Callers will be sent educational booklets , and the call &apos;s modest cost will be an immediate method of raising money .
wsj21a/22100030.gz: Other network applications have very different goals .
wsj21a/22100031.gz: ABC Sports was looking for ways to lift deflated halftime ratings for &quot; Monday Night Football . &quot;
wsj21a/22100032.gz: Kurt Sanger , ABC Sports &apos;s marketing director , says that now &quot; tens of thousands &quot; of fans call its 900 number each week to vote for the best punt return , quarterback sack , etc .
wsj21a/22100034.gz: Jackets may be sold next .
wsj21a/22100035.gz: Meanwhile , NBC Sports recently began &quot; Scores Plus , &quot; a year \@-\@ round , 24 \@-\@ hour 900 line providing a complex array of scores , analysis and fan news .
wsj21a/22100036.gz: A spokesman said its purpose is &quot; to bolster the impression that NBC Sports is always there for people . &quot;
wsj21a/22100037.gz: NBC &apos;s &quot; On \@-\@ Line &quot; consumer minutes have increased advertiser spending during the day , the network &apos;s weakest period .
wsj21a/22100038.gz: Each weekday matches a sponsor and a topic : On Mondays , Unilever N.V . &apos; s Lever Bros. sponsors tips on diet and exercise , followed by a 30 \@-\@ second Lever Bros. commercial .
wsj21a/22100040.gz: If the caller stays on the line and leaves a name and address for the sponsor , coupons and a newsletter will be mailed , and the sponsor will be able to gather a list of desirable potential customers .
wsj21a/22100041.gz: Diane Seaman , an NBC \@-\@ TV vice president , says NBC has been able to charge premium rates for this ad time .
wsj21a/22100042.gz: She wouldn &apos;t say what the premium is , but it &apos;s believed to be about 40 % above regular daytime rates .
wsj21a/22100043.gz: &quot; We were able to get advertisers to use their promotion budget for this , because they get a chance to do couponing , &quot; says Ms. Seaman .
wsj21a/22100044.gz: &quot; And we were able to attract some new advertisers because this is something new . &quot;
wsj21a/22100045.gz: Mr. Parks of Call Interactive says TV executives are considering the use of 900 numbers for &quot; talk shows , game shows , news and opinion surveys . &quot;
wsj21a/22100046.gz: Experts are predicting a big influx of new shows in 1990 , when a service called &quot; automatic number information &quot; will become widely available .
wsj21a/22100047.gz: This service identifies each caller &apos;s phone number , and it can be used to generate instant mailing lists .
wsj21a/22100049.gz: &quot; 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 medal , &quot; he says .
wsj21a/22100050.gz: &quot; That &apos;ll save us time and get people involved . &quot;
wsj21a/22100051.gz: But Mr. Monsky sees much bigger changes ahead .
wsj21a/22100052.gz: &quot; These are just baby steps toward real interactive video , which I believe will be the biggest thing yet to affect television , &quot; he says .
wsj21a/22100053.gz: Although it would be costly to shoot multiple versions , TV programmers could let audiences vote on different endings for a movie .
wsj21a/22100054.gz: Fox Broadcasting experimented with this concept last year when viewers of &quot; Married . . . With Children &quot; voted on whether Al should say &quot; I love you &quot; to Peg on Valentine &apos;s Day .
wsj21a/22100055.gz: Someday , viewers may also choose different depths of news coverage .
wsj21a/22100056.gz: &quot; A menu by phone could let you decide , `I &apos;m interested in just the beginning of story No. 1 , and I want story No. 2 in depth , &quot; Mr. Monsky says .
wsj21a/22100057.gz: &quot; You &apos;ll start to see shows where viewers program the program .
wsj21a/22101001.gz: 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 .
wsj21a/22101002.gz: Integrated didn &apos;t identify the party or say why the talks failed .
wsj21a/22101003.gz: Last week another potential buyer , Whitehall Financial Group -- which had agreed in August to purchase most of Integrated &apos;s core companies for $ 310 million -- ended talks with Integrated .
wsj21a/22101005.gz: A price wasn &apos;t disclosed .
wsj21a/22101006.gz: Integrated also said it expects to report a second \@-\@ quarter loss wider than the earlier estimate of about $ 600 million .
wsj21a/22101008.gz: Meanwhile , a number of top sales producers from Integrated Resources Equity will meet this afternoon in Chicago to discuss their options .
wsj21a/22101009.gz: The unit is a loosely constructed group of about 3,900 independent brokers and financial planners who sell insurance , annuities , limited partnerships , mutual funds and other investments for Integrated and other firms .
wsj21a/22101010.gz: The sales force is viewed as a critical asset in Integrated &apos;s attempt to sell its core companies .
wsj21a/22101011.gz: Whitehall cited concerns about how long Integrated would be able to hold together the sales force as one reason its talks with Integrated failed .
wsj21a/22101012.gz: In composite trading on the New York Stock Exchange yesterday , Integrated closed at $ 1.25 a share , down 25 cents .
wsj21a/22101013.gz: Integrated has been struggling to avoid a bankruptcy \@-\@ law filing since June , when it failed to make interest payments on nearly $ 1 billion of debt .
wsj21a/22101014.gz: Integrated senior and junior creditors are owed a total of about $ 1.8 billion .
wsj21a/22102001.gz: AN EARTHQUAKE STRUCK Northern California , killing more than 50 people .
wsj21a/22102002.gz: The violent temblor , which lasted about 15 seconds and registered 6.9 on the Richter scale , also caused the collapse of a 30 \@-\@ foot section of the San Francisco \@-\@ Oakland Bay Bridge and shook Candlestick Park .
wsj21a/22102003.gz: The tremor was centered near Hollister , southeast of San Francisco , and was felt as far as 200 miles away .
wsj21a/22102004.gz: Numerous injuries were reported .
wsj21a/22102005.gz: Some buildings collapsed , gas and water lines ruptured and fires raged .
wsj21a/22102006.gz: The quake , which also caused damage in San Jose and Berkeley , knocked out electricity and telephones , cracked roadways and disrupted subway service in the Bay Area .
wsj21a/22102007.gz: Major injuries weren &apos;t reported at Candlestick Park , where the third game of baseball &apos;s World Series was canceled and fans evacuated from the stadium .
wsj21a/22102008.gz: Bush vowed to veto a bill allowing federal financing for abortions in cases of rape and incest , saying tax dollars shouldn &apos;t be used to &quot; compound a violent act with the taking of an unborn life . &quot;
wsj21a/22102009.gz: His pledge , in a letter to Democratic Sen. Byrd , came ahead of an expected Senate vote on spending legislation containing the provision .
wsj21a/22102010.gz: East Germany &apos;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 .
wsj21a/22102011.gz: Meanwhile , about 125 refugees flew to Duesseldorf , West Germany , from Warsaw , the first airlift in East Germany &apos;s refugee exodus .
wsj21a/22102012.gz: The World Psychiatric Association voted at an Athens parley to conditionally readmit the Soviet Union .
wsj21a/22102013.gz: Moscow , which left the group in 1983 to avoid explusion over allegations that political dissidents were being certified as insane , could be suspended if the misuse of psychiatry against dissenters is discovered during a review within a year .
wsj21a/22102014.gz: NASA postponed the liftoff of the space shuttle Atlantis because of rain near the site of the launch pad in Cape Canaveral , Fla .
wsj21a/22102015.gz: The flight was rescheduled for today .
wsj21a/22102016.gz: The spacecraft &apos;s five astronauts are to dispatch the nuclear \@-\@ powered Galileo space probe on an exploratory mission to Jupiter .
wsj21a/22102017.gz: Senate Democratic leaders said they had enough votes to defeat a proposed constitutional amendment to ban flag burning .
wsj21a/22102018.gz: The amendment is aimed at skirting a Supreme Court ruling that threw out the conviction of a Texas flag \@-\@ burner on grounds that his freedom of speech was violated .
wsj21a/22102019.gz: Federal researchers said lung \@-\@ cancer mortality rates for people under 45 years of age have begun to decline , particularly for white males .
wsj21a/22102020.gz: 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 abate .
wsj21a/22102021.gz: 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 .
wsj21a/22102022.gz: Bush assured Roh that the U.S. would stand by its security commitments &quot; as long as there is a threat &quot; from Communist North Korea .
wsj21a/22102023.gz: 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 &apos;s leader .
wsj21a/22102024.gz: A White House spokesman said that while Bush wouldn &apos;t alter a longstanding ban on such involvement , &quot; there &apos;s a clarification needed &quot; on its interpretation .
wsj21a/22102025.gz: India &apos;s Gandhi called for parliamentary elections next month .
wsj21a/22102026.gz: The balloting , considered a test for the prime minister and the ruling Congress ( I ) Party , comes amid charges of inept leadership and government corruption .
wsj21a/22102027.gz: Gandhi &apos;s family has ruled independent India for all but five years of its 42 \@-\@ year history .
wsj21a/22102028.gz: The Soviet Union abstained from a U.N . General Assembly vote to reject Israel &apos;s credentials .
wsj21a/22102029.gz: It was the first time in seven years that Moscow hasn &apos;t joined efforts , led by Moslem nations , to expel Israel from the world body , and was viewed as a sign of improving Soviet \@-\@ Israeli ties .
wsj21a/22102030.gz: Israel was seated by a vote of 95 \@-\@ 37 , with 15 abstentions .
wsj21a/22102031.gz: Black activist Walter Sisulu said the African National Congress wouldn &apos;t reject violence as a way to pressure the South African government into concessions that might lead to negotiations over apartheid .
wsj21a/22102032.gz: The 77 \@-\@ year \@-\@ old Sisulu was among eight black political activists freed Sunday from prison .
wsj21a/22102033.gz: London has concluded that Austrian President Waldheim wasn &apos;t responsible for the execution of six British commandos in World War II , although he probably was aware of the slayings .
wsj21a/22102034.gz: The report by the Defense Ministry also rejected allegations that Britain covered up evidence of Waldheim &apos;s activities as a German army officer .
wsj21a/22102035.gz: 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 tusks .
wsj21a/22102036.gz: The move by the Convention on Trade in Endangered Species , meeting in Switzerland , places the elephant on the endangered \@-\@ species list .
wsj21a/22102037.gz: An assassin in Colombia killed a federal judge on a Medellin street .
wsj21a/22102038.gz: An anonymous caller to a local radio station said cocaine traffickers had slain the magistrate in retaliation for the extraditions of Colombians wanted on drug charges in the U.S .
wsj21a/22102039.gz: Libyan leader Gadhafi met with Egypt &apos;s President Mubarak , and the two officials pledged to respect each other &apos;s laws , security and stability .
wsj21a/22102040.gz: They stopped short of resuming diplomatic ties , severed in 1979 .
wsj21a/22102041.gz: The reconciliation talks in the Libyan desert town of Tobruk followed a meeting Monday in the Egyptian resort of Mersa Metruh .
wsj21a/22103003.gz: The new notes will bear interest at 5.5 % through July 31 , 1991 , and thereafter at 10 % .
wsj21a/22103004.gz: Under the original proposal , the maker of specialty coatings and a developer of information \@-\@ display technologies offered $ 400 of notes due 1996 , 10 common shares and $ 175 in cash for each $ 1,000 face amount .
wsj21a/22103005.gz: Completion of the exchange offer is subject to the tender of at least 80 % of the debt , among other things .
wsj21a/22104001.gz: The stock of UAL Corp. continued to be pounded amid signs that British Airways may balk at any hasty reformulation of the aborted $ 6.79 billion buy \@-\@ out of United Airlines &apos; parent .
wsj21a/22104003.gz: The plunge followed a drop of $ 56.875 Monday , amid indications the takeover may take weeks to be revived .
wsj21a/22104004.gz: The stock has fallen $ 87.25 , or 31 % , in the three trading days since announcement of the collapse of the $ 300 \@-\@ a \@-\@ share takeover jolted the entire stock market into its second \@-\@ worst plunge ever .
wsj21a/22104005.gz: &quot; This is a total bloodbath &quot; for takeover \@-\@ stock traders , one investment banker said .
wsj21a/22104006.gz: Los Angeles financier Marvin Davis , who put United in play with a $ 5.4 billion bid two months ago , last night proffered both a ray of hope and an extra element of uncertainty by saying he remains interested in acquiring UAL .
wsj21a/22104007.gz: But he dropped his earlier $ 300 \@-\@ a \@-\@ share back \@-\@ up bid , saying he must first explore bank financing .
wsj21a/22104008.gz: Even as Citicorp and Chase Manhattan Corp. scrambled to line up bank financing for a revised version of the lapsed labor \@-\@ management bid , British Airways , a 15 % partner in the buying group , indicated it wants to start from scratch .
wsj21a/22104009.gz: Its partners are United &apos;s pilots , who were to own 75 % , and UAL management at 10 % .
wsj21a/22104011.gz: A similar demand was made by a group that represents some of United &apos;s 26,000 noncontract employees .
wsj21a/22104012.gz: John Peterpaul , Machinists union general vice president , attacked Mr. Wolf as &quot; greedy and irresponsible &quot; for pursuing the buy \@-\@ out .
wsj21a/22104013.gz: Although Mr. Wolf and John Pope , UAL &apos;s chief financial officer , stood to pocket $ 114.3 million for stock and options in the buy \@-\@ out , UAL executives planned to reinvest only $ 15 million in the new company .
wsj21a/22104014.gz: The blue \@-\@ collar machinists , longtime rivals of the white \@-\@ collar pilots , say the buyout would load the company with debt and weaken its finances .
wsj21a/22104015.gz: Confusion about the two banks &apos; hurried efforts to round up financing for a new bid that the UAL board hasn &apos;t even seen yet helped send UAL stock spiraling downward .
wsj21a/22104016.gz: And rumors of forced selling by takeover \@-\@ stock traders triggered a 25 \@-\@ point downdraft in the Dow Jones Industrial Average around 11 : 15 a.m . EDT yesterday .
wsj21a/22104017.gz: Yesterday &apos;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 $ 250 a share , or $ 5.65 billion .
wsj21a/22104019.gz: Citicorp , for example , said only that it had &quot; expressions of interest of a transaction from both the borrowers and the banks , &quot; but didn &apos;t have an agreement .
wsj21a/22104020.gz: Late in the day , Mr. Wolf issued a onepage statement calling Mr. Peterpaul &apos;s blast &quot; divisive and uncalled for . &quot;
wsj21a/22104021.gz: But he gave few details on the progress toward a new bid , saying only , &quot; We are working toward a revised proposal for majority employee ownership . &quot;
wsj21a/22104022.gz: Meanwhile , in another sign that a new bid isn &apos;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 isn &apos;t likely to be convened until early next week .
wsj21a/22104025.gz: The effort to revive the bid was complicated by the unwieldy nature of the three \@-\@ party buying group .
wsj21a/22104026.gz: The pilots were meeting outside Chicago yesterday .
wsj21a/22104027.gz: But British Air , which was to have supplied $ 750 million out of $ 965 million in equity financing , apparently wasn &apos;t involved in the second proposal and could well reject it even if banks obtain financing .
wsj21a/22104029.gz: The machinists also asked for an investigation by the Securities and Exchange Commission into possible securities \@-\@ law violations in the original bid for UAL by Mr. Davis , as well as in the response by UAL .
wsj21a/22104030.gz: 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 .
wsj21a/22104031.gz: In his statement , Mr. Wolf said , &quot; 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 . &quot;
wsj21a/22104033.gz: The huge drop in UAL stock prompted one takeover stock trader , George Kellner , managing partner of Kellner , DiLeo &amp; Co . , to deny publicly rumors that his firm was going out of business .
wsj21a/22104034.gz: Mr. Kellner said that despite losses on UAL stock , his firm &apos;s health is &quot; excellent . &quot;
wsj21a/22104035.gz: The stock &apos;s decline also has left the UAL board in a quandary .
wsj21a/22104036.gz: Although it may not be legally obligated to sell the company if the buy \@-\@ out group can &apos;t revive its bid , it may have to explore alternatives if the buyers come back with a bid much lower than the group &apos;s original $ 300 \@-\@ a \@-\@ share proposal .
wsj21a/22104038.gz: The takeover \@-\@ stock traders were hoping that Mr. Davis or one of the other interested parties might re \@-\@ emerge with the situation in disarray , or that the board might consider a recapitalization .
wsj21a/22104039.gz: Meanwhile , Japanese bankers said they were still hesitant about accepting Citicorp &apos;s latest proposal .
wsj21a/22105001.gz: Macmillan Inc. said it plans a public offering of 8.4 million shares of its Berlitz International Inc. unit at $ 19 to $ 21 a share .
wsj21a/22105002.gz: 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 .
wsj21a/22105003.gz: After the offering is completed , Macmillan will own about 56 % of the Berlitz common stock outstanding .
wsj21a/22105004.gz: Five million shares will be offered in the U.S . , and 3.4 million additional shares will be offered in concurrent international offerings outside the U.S .
wsj21a/22105005.gz: Goldman , Sachs &amp; Co. will manage the offering .
wsj21a/22105006.gz: Macmillan said Berlitz intends to pay quarterly dividends on the stock .
wsj21a/22105007.gz: The company said it expects to pay the first dividend , of 12.5 cents a share , in the 1990 first quarter .
wsj21a/22105008.gz: Berlitz will borrow an amount equal to its expected net proceeds from the offerings , plus $ 50 million , in connection with a credit agreement with lenders .
wsj21a/22105009.gz: The total borrowing will be about $ 208 million , the company said .
wsj21a/22105010.gz: Proceeds from the borrowings under the credit agreement will be used to pay an $ 80 million cash dividend to Macmillan and to lend the remainder of about $ 128 million to Maxwell Communications in connection with a promissory note .
wsj21a/22105011.gz: Proceeds from the offering will be used to repay borrowings under the short \@-\@ term parts of a credit agreement .
wsj21a/22105012.gz: Berlitz , which is based in Princeton , N.J . , provides language instruction and translation services through more than 260 language centers in 25 countries .
wsj21a/22105013.gz: In the past five years , more than 68 % of its sales have been outside the U.S .
wsj21a/22105014.gz: Macmillan has owned Berlitz since 1966 .
wsj21a/22105015.gz: In the first six months of this year , Berlitz posted net income of $ 7.6 million on sales of $ 106.2 million , compared with net income of $ 8.2 million on sales of $ 90.6 million .
wsj21a/22106001.gz: Right away you notice the following things about a Philip Glass concert .
wsj21a/22106002.gz: It attracts people with funny hair ( or with no hair -- in front of me a girl with spiked locks sat beside a boy who had shaved his ) .
wsj21a/22106004.gz: People in Glass houses tend to look stoned .
wsj21a/22106005.gz: And , if still conscious at the evening &apos;s end , you notice something else : The audience , at first entranced and hypnotized by the music , releases its pent \@-\@ up feelings in collective gratitude .
wsj21a/22106007.gz: He sits down at the piano and plays .
wsj21a/22106008.gz: And plays .
wsj21a/22106009.gz: Either one likes it or one doesn &apos;t .
wsj21a/22106010.gz: The typical Glass audience , which is more likely to be composed of music students than their teachers , certainly does .
wsj21a/22106011.gz: The work , though , sounds like Muzak for spaceships .
wsj21a/22106013.gz: His success is easy to understand .
wsj21a/22106014.gz: Softly introducing and explaining his pieces , Mr. Glass looks and sounds more like a shaggy poet describing his work than a classical pianist playing a recital .
wsj21a/22106016.gz: It is music for people who want to hear something different but don &apos;t want to work especially hard at the task .
wsj21a/22106020.gz: Far from being minimalist , the music unabatingly torments us with apparent novelties not so cleverly disguised in the simplicities of 4 / 4 time , octave intervals , and ragtime or gospel chord progressions .
wsj21a/22106022.gz: &quot; Opening &quot; ( 1981 ) , from Glassworks , introduces the audience to the Glass technique : Never straying too far from the piano &apos;s center , Mr. Glass works in the two octaves on either side of middle C , and his fingers seldom leave the keys .
wsj21a/22106023.gz: There is a recognizable musical style here , but not a particular performance style .
wsj21a/22106024.gz: The music is not especially pianistic ; indeed , it &apos;s hard to imagine a bad performance of it .
wsj21a/22106025.gz: Nothing bravura , no arpeggios , no ticklish fingering problems challenge the performer .
wsj21a/22106026.gz: We hear , we may think , inner voices , but they all seem to be saying the same thing .
wsj21a/22106027.gz: With &quot; Planet News , &quot; music meant to accompany readings of Allen Ginsberg &apos;s &quot; Wichita Vortex Sutra , &quot; Mr. Glass gets going .
wsj21a/22106028.gz: His hands sit farther apart on the keyboard .
wsj21a/22106029.gz: Seventh chords make you feel as though he may break into a ( very slow ) improvisatory riff .
wsj21a/22106030.gz: The chords modulate , but there is little filigree even though his fingers begin to wander over more of the keys .
wsj21a/22106031.gz: Contrasts predictably accumulate : First the music is loud , then it becomes soft , then ( you realize ) it becomes louder again .
wsj21a/22106033.gz: When Mr. Glass decides to get really fancy , he crosses his hands and hits a resonant bass note with his right hand .
wsj21a/22106034.gz: He does this in at least three of his solo pieces .
wsj21a/22106035.gz: You might call it a leitmotif or a virtuoso accomplishment .
wsj21a/22106037.gz: Not only is the typical Glasswork open \@-\@ ended , it is also often multiple in its context ( s ) .
wsj21a/22106038.gz: &quot; Mad Rush &quot; began its life as the accompaniment to the Dalai Lama &apos;s first public address in the U.S . , when Mr. Glass played it on the organ at New York &apos;s Cathedral of St. John the Divine .
wsj21a/22106039.gz: Later it was performed on Radio Bremen in Germany , and then Lucinda Childs took it for one of her dance pieces .
wsj21a/22106040.gz: The point is that any piece can be used as background music for virtually anything .
wsj21a/22106041.gz: The evening ended with Mr. Glass &apos;s &quot; Metamorphosis , &quot; another multiple work .
wsj21a/22106042.gz: Parts 1 , 2 , and 5 come from the soundtrack of Errol Morris &apos;s acclaimed film , &quot; The Thin Blue Line , &quot; and the two other parts from incidental music to two separate dramatizations of the Kafka story of the same name .
wsj21a/22106043.gz: When used as background in this way , the music has an appropriate eeriness , as when a two \@-\@ note phrase , a descending minor third , accompanies the seemingly endless litany of reports , interviews and confessions of witnesses in the Morris film .
wsj21a/22106045.gz: Admirers of Mr. Glass may agree with the critic Richard Kostelanetz &apos;s sense that the 1974 &quot; Music in Twelve Parts &quot; is as encyclopedic and weighty as &quot; The Well \@-\@ Tempered Clavier . &quot;
wsj21a/22106046.gz: But while making the obvious point that both composers develop variations from themes , this comparison ignores the intensely claustrophobic nature of Mr. Glass &apos;s music .
wsj21a/22106047.gz: Its supposedly austere minimalism overlays a bombast that makes one yearn for the astringency of neoclassical Stravinsky , the genuinely radical minimalism of Berg and Webern , and what in retrospect even seems like concision in Mahler .
wsj21a/22106048.gz: Mr. Spiegelman is professor of English at Southern Methodist University and editor of the Southwest Review .
wsj21a/22107001.gz: Honeywell Inc. said it hopes to complete shortly the first of two sales of shares in its Japanese joint venture , Yamatake \@-\@ Honeywell , for about $ 280 million .
wsj21a/22107002.gz: The company wouldn &apos;t disclose the buyer of the initial 16 % stake .
wsj21a/22107003.gz: Proceeds of the sale , expected to be completed next week , would be used to repurchase as many as 10 million shares of Honeywell stock , the company said .
wsj21a/22107004.gz: Honeywell said it is negotiating the sale of a second stake in Yamatake \@-\@ Honeywell , but indicated it intends to hold at least 20 % of the joint venture &apos;s stock long term .
wsj21a/22107005.gz: A 20 % stake would allow Honeywell to include Yamatake earnings in its results .
wsj21a/22107006.gz: 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 dependence on weapons sales .
wsj21a/22107007.gz: Yesterday a spokeswoman said the company was &quot; pleased with our progress &quot; in that regard and &quot; hopes to provide additional details soon . &quot;
wsj21a/22107008.gz: 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 .
wsj21a/22107009.gz: Overall , Honeywell reported earnings of $ 74.4 million , or $ 1.73 a share , for the three months ended Oct. 1 compared with a loss of $ 41.4 million , or 98 cents a share , a year earlier .
wsj21a/22107010.gz: The previous period &apos;s results included a $ 108 million pretax charge related to unrecoverable contract costs and a $ 12.3 million pretax gain on real estate sales .
wsj21a/22107011.gz: Sales for the latest quarter were flat , at $ 1.72 billion .
wsj21a/22107012.gz: For the nine months , Honeywell reported earnings of $ 212.1 million , or $ 4.92 a share , compared with earnings of $ 47.9 million , or $ 1.13 a share , a year earlier .
wsj21a/22107013.gz: Sales declined slightly to $ 5.17 billion .
wsj21a/22108001.gz: Once again , your editorial page misstates the law to conform to your almost beatific misperceptions .
wsj21a/22108003.gz: This statement surely buttresses your editorial viewpoint that environmental protection is generally silly or excessive , but it is simply wrong .
wsj21a/22108004.gz: The Clean Water Act contains no &quot; legal standard &quot; of zero discharge .
wsj21a/22108005.gz: It requires that &quot; discharges of pollutants &quot; into the &quot; waters of the United States &quot; be authorized by permits that reflect the effluent limitations developed under section 301 .
wsj21a/22108006.gz: Whatever may be the problems with this system , it scarcely reflects &quot; zero risk &quot; or &quot; zero discharge . &quot;
wsj21a/22108007.gz: Perhaps Mr. Greve was confused by Congress &apos;s meaningless statement of &quot; the national goal &quot; in section 101 , which indeed calls for the elimination of discharges -- by 1985 , no less .
wsj21a/22108008.gz: This fatuous statement was not taken seriously when enacted in 1972 , and should not now be confused with the operative provisions of the statute .
wsj21a/22108010.gz: Robert J. McManus
wsj21a/22109004.gz: Despite renewed interest by the public in such topics as the environment and the Third World , it hasn &apos;t been able to shake its reputation as a magazine boys like to flip through in search of topless tribe women .
wsj21a/22109005.gz: Worse , it lagged behind competitors in offering now \@-\@ standard gimmicks , from regional editions to discounts for frequent advertisers .
wsj21a/22109006.gz: But now , the magazine is attempting to fight back , with an ambitious plan including a revamped sales strategy and a surprisingly aggressive ad campaign .
wsj21a/22109007.gz: Advertisers don &apos;t think of the magazine first , says Joan McCraw , who joined in April as national advertising director .
wsj21a/22109008.gz: &quot; What we want to do is take a more aggressive stance .
wsj21a/22109009.gz: People didn &apos;t believe we were in tune with the marketplace , and in many ways we weren &apos;t . &quot;
wsj21a/22109010.gz: The 101 \@-\@ year \@-\@ old magazine has never had to woo advertisers with quite so much fervor before .
wsj21a/22109012.gz: The magazine had its best year yet in 1988 , when it celebrated its centennial and racked up a 17 % gain in ad pages , to 283 .
wsj21a/22109013.gz: But this year , when the hullabaloo surrounding its centennial died , so too did some advertiser interest .
wsj21a/22109014.gz: The reason , ad executives say , is that the entire magazine business has been soft -- and National Geographic has some quirks that make it especially unattractive during a soft market .
wsj21a/22109015.gz: Perhaps the biggest of those factors is its high ad prices -- $ 130,000 for a four \@-\@ color page , vs. $ 47,000 for the Smithsonian , a comparable publication with a far smaller circulation .
wsj21a/22109016.gz: When ad dollars are tight , the high page cost is a major deterrent for advertisers , who generally want to appear regularly in a publication or not at all .
wsj21a/22109018.gz: 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 25 markets .
wsj21a/22109020.gz: Time magazine , for example , has more than 100 separate editions going to different regions , top management , and other groups .
wsj21a/22109021.gz: Another sticking point for advertisers was National Geographic &apos;s tradition of lumping its ads together , usually at the beginning or end of the magazine , rather than spreading ads out among its articles , as most magazines do .
wsj21a/22109023.gz: But Ms. McCraw says the magazine is fighting back .
wsj21a/22109024.gz: It now offers 30 regional editions , it very recently began running ads adjacent to articles , and it has been beefing up its sales force .
wsj21a/22109025.gz: And it just launched a promotional campaign to tell chief executives , marketing directors , and media executives just that .
wsj21a/22109027.gz: The campaign , created by Omnicom Group &apos;s DDB Needham agency , takes advantage of the eye \@-\@ catching photography that National Geographic is known for .
wsj21a/22109028.gz: In one ad , a photo of the interior of the Sainte \@-\@ Chapelle in Paris is paired with the headline , &quot; The only book more respected than ours doesn &apos;t accept advertising . &quot;
wsj21a/22109029.gz: Another ad pictures a tree ant , magnified 80 times , with the headline , &quot; For impact far beyond your size consider our regional editions . &quot;
wsj21a/22109030.gz: Ms. McCraw says she wants the campaign to help attract advertisers in 10 categories , including corporate , financial services , consumer electronics , insurance and food .
wsj21a/22109031.gz: Her goal : to top 300 ad pages in 1990 , up from about 274 this year .
wsj21a/22109032.gz: Whether she can meet that ambitious goal is still far from certain .
wsj21a/22109033.gz: &quot; The ad campaign is meant to contemporize the thought of National Geographic , &quot; she says .
wsj21a/22109034.gz: &quot; We want it to be a &apos; 90s kind of image . &quot;
wsj21a/22109036.gz: WCRS Group hopes to announce , perhaps today , an agreement to sell the majority of its ad unit to Paris \@-\@ based Eurocom , a European ad executive said .
wsj21a/22109037.gz: WCRS has been in discussions with Eurocom for several months .
wsj21a/22109038.gz: However , when negotiations bogged down recently , WCRS &apos;s chief executive , Peter Scott , met in Paris with another French firm , Boulet Dru Dupuy Petit , or BDDP .
wsj21a/22109039.gz: According to the executive , BDDP &apos;s involvement prompted renewed vigor in the WCRS \@-\@ Eurocom talks and the two agencies were hoping to hammer out details by today .
wsj21a/22109040.gz: Executives of the two agencies couldn &apos;t be reached last night .
wsj21a/22109042.gz: NEW ACCOUNT : Procter &amp; Gamble Co . , Cincinnati , awarded the ad accounts for its line of Professional Crisco vegetable shortening and oil products to Northlich , Stolley , LaWarre , Cincinnati .
wsj21a/22109043.gz: Billings weren &apos;t disclosed .
wsj21a/22109044.gz: Professional Crisco products are specially made for the foodservice industry .
wsj21a/22109046.gz: He was executive vice president , director of broadcast production .
wsj21a/22110001.gz: The Commodity Futures Trading Commission plans to restrict dual trading on commodity exchanges , a move almost certain to infuriate exchange officials and traders .
wsj21a/22110002.gz: 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 &quot; problems &quot; associated with the practice .
wsj21a/22110003.gz: Dual trading gives an exchange trader the right to trade both for his own account and for customers .
wsj21a/22110005.gz: While not specifically mentioned in the FBI charges , dual trading became a focus of attempts to tighten industry regulations .
wsj21a/22110006.gz: Critics contend that traders were putting buying or selling for their own accounts ahead of other traders &apos; customer orders .
wsj21a/22110007.gz: 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 .
wsj21a/22110008.gz: The exchanges contend that dual trading improves liquidity in the markets because traders can buy or sell even when they don &apos;t have a customer order in hand .
wsj21a/22110009.gz: The exchanges say liquidity becomes a severe problem for thinly traded contracts such as those with a long time remaining before expiration .
wsj21a/22110010.gz: The CFTC may take those arguments into account by allowing exceptions to its restrictions .
wsj21a/22110011.gz: The agency didn &apos;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 .
wsj21a/22110013.gz: The study , by the CFTC &apos;s division of economic analysis , shows that &quot; a trade is a trade , &quot; a member of the study team said .
wsj21a/22110014.gz: Whether a trade is done on a dual or non \@-\@ dual basis , the member said , &quot; doesn &apos;t seem to have much economic impact . &quot;
wsj21a/22110016.gz: &quot; The tests indicate that dual and non \@-\@ dual traders are similar in terms of the trade executions and liquidity they provide to the market , &quot; Mrs. Gramm told the Senate panel .
wsj21a/22110017.gz: Members of Congress have proposed restricting dual trading in bills to reauthorize CFTC operations .
wsj21a/22110018.gz: The House &apos;s bill would prohibit dual trading in markets with daily average volume of 7,000 contracts or more , comprising those considered too difficult to track without a sophisticated computer system .
wsj21a/22110019.gz: The Senate bill would force the CFTC to suspend dual trading if an exchange can &apos;t show that its oversight system can detect dual \@-\@ trading abuses .
wsj21a/22110020.gz: So far , one test of restricting dual trading has worked well .
wsj21a/22110021.gz: The Chicago Merc banned dual trading in its Standard &amp; Poor &apos;s 500 \@-\@ stock index futures pit in 1987 .
wsj21a/22110022.gz: Under the rules , traders decide before a session begins whether they will trade for their own account or for customers .
wsj21a/22110023.gz: Traders who stand on the pit &apos;s top step , where most customer orders are executed , can &apos;t trade for themselves .
wsj21a/22110024.gz: A Merc spokesman said the plan hasn &apos;t made much difference in liquidity in the pit .
wsj21a/22110026.gz: He said he wouldn &apos;t comment on the CFTC plan until the exchange has seen the full proposal .
wsj21a/22110027.gz: But at a meeting last week , Tom Donovan , the Board of Trade &apos;s president , told commodity lawyers : &quot; Dual trading is definitely worth saving .
wsj21a/22110028.gz: It adds something to the market .
wsj21a/22111001.gz: Japanese Firms Push Posh Car Showrooms
wsj21a/22111002.gz: JAPANESE luxury \@-\@ car makers are trying to set strict design standards for their dealerships .
wsj21a/22111003.gz: But some dealers are negotiating looser terms , while others decline to deal at all .
wsj21a/22111004.gz: Nissan Motor Co . &apos; s Infiniti division likes to insist that every dealer construct and furnish a building in a Japanese style .
wsj21a/22111005.gz: Specifications include a polished bronze sculpture at the center of each showroom and a tile bridge spanning a stream that flows into the building from outside .
wsj21a/22111006.gz: &quot; Infiniti has it down to the ashtrays , &quot; says Jay Ferron , a partner at J.D . Power &amp; Associates , an auto research firm .
wsj21a/22111007.gz: Toyota Motor Corp. &apos; s Lexus division also provides specifications .
wsj21a/22111008.gz: But only two \@-\@ thirds of Lexus dealers are constructing new buildings according to the Lexus specs .
wsj21a/22111010.gz: In Louisville , Ky . , for example , David Peterson has built a Lexus dealership with the showroom on the second floor .
wsj21a/22111011.gz: Yet some dealers have turned down Infiniti or Lexus franchises because they were unwilling or unable to meet the design requirements .
wsj21a/22111012.gz: Lee Seidman of Cleveland says Infiniti &quot; was a bear on interiors &quot; but at least let him retrofit an existing building -- without the stream .
wsj21a/22111013.gz: Mr. Seidman says he turned down a Lexus franchise in part because &quot; the building was gorgeous but very expensive . &quot;
wsj21a/22111014.gz: To head off arguments , Infiniti offers dealers cash bonuses and low \@-\@ interest construction loans .
wsj21a/22111015.gz: Dictation Device &apos;s Saga Plays Back a Lesson
wsj21a/22111016.gz: PRODUCTS DON &apos;T have to be first to be winners .
wsj21a/22111017.gz: That &apos;s the lesson offered through one case study featured in a design exhibit .
wsj21a/22111019.gz: Blocked by patent protection from following suit , Dictaphone decided to go a step further and cut the cassette in half again -- down to the length of a paperclip .
wsj21a/22111020.gz: By 1979 , designers and engineers at Dictaphone , a Pitney Bowes subsidiary , had produced a working model of a &quot; picocassette &quot; recorder .
wsj21a/22111021.gz: By 1982 , however , the patent status of the Lanier microcassette had changed , permitting Dictaphone to develop its own competitive micro system , which it did .
wsj21a/22111022.gz: Marketing and sales departments then urged abandonment of the pico project .
wsj21a/22111023.gz: But others said pico should proceed .
wsj21a/22111024.gz: Both were right .
wsj21a/22111025.gz: Dictaphone went ahead and introduced the pico in 1985 , but it hasn &apos;t sold well .
wsj21a/22111026.gz: To date , says Emil Jachmann , a Dictaphone vice president , it has &quot; broken even or shown a small loss . &quot;
wsj21a/22111027.gz: Nevertheless , the device has been successful in other ways .
wsj21a/22111028.gz: It helped Dictaphone attract better engineers , and it provided new technology for other company products .
wsj21a/22111029.gz: The picocassette recorder also helped transform the company &apos;s reputation from follower to leading \@-\@ edge innovator .
wsj21a/22111031.gz: Dictaphone &apos;s picocassette recorder is one of 13 case studies in the TRIAD Design Project , sponsored by the Design Management Institute of Boston and Harvard Business School .
wsj21a/22111032.gz: The studies are on exhibit at Harvard this month and will travel to Chicago &apos;s Institute of Design and the University of California at Berkeley .
wsj21a/22111033.gz: A Rake &apos;s Progress Means Branching Out
wsj21a/22111034.gz: ONE DAY Carl Barrett of Mobile , Ala . , was raking some sycamore leaves , but the rake kept riding up over the piles .
wsj21a/22111037.gz: His crude device worked : The lower teeth gathered the leaves into a pile , while the higher , harder teeth moved the top of the pile .
wsj21a/22111038.gz: Now incorporated into a polypropylene rake , the four \@-\@ inch prongs , or &quot; wonderbars , &quot; also are supposed to aid in picking up leaves .
wsj21a/22111039.gz: One customer , Donald Blaggs of Mobile , says the Barrett Rake allowed him to do his lawn in 2 1 / 2 hours , two hours less than usual .
wsj21a/22111040.gz: But other rake makers have their doubts .
wsj21a/22111041.gz: Richard Mason , president of Ames Co. in Parkersburg , W. Va . , says the Barrett rake &quot; makes sense , &quot; but it would be &quot; tough &quot; to explain to consumers .
wsj21a/22111042.gz: John Stoner , marketing director for True Temper Corp. , a subsidiary of Black &amp; Decker , says people don &apos;t want to move a leaf pile .
wsj21a/22111043.gz: &quot; They either pick it up , &quot; he says , &quot; or they start pulling from a fresh direction . &quot;
wsj21a/22111044.gz: Odds and Ends
wsj21a/22111046.gz: Four tubular steel &quot; Bedfellows , &quot; each roughly in the shape of a &quot; W , &quot; are attached to the bottom of the box spring in a recessed position . . . .
wsj21a/22111047.gz: Nearly half of U.S. consumers say they &apos;ll pay up to 5 % more for packaging that can be recycled or is biodegradable , according to a survey commissioned by the Michael Peters Group , a design consultant .
wsj21a/22112001.gz: The Pentagon is a haunted house .
wsj21a/22112002.gz: Living there for six years was really scary .
wsj21a/22112003.gz: The ghosts of the past are everywhere : They are kept at bay only by feeding them vast quantities of our defense budget .
wsj21a/22112004.gz: Some can be bought off relatively cheaply .
wsj21a/22112005.gz: During the Korean War , Gen. Douglas MacArthur demanded and got , in addition to his U.N. command in Korea , his own naval command in Japan , NavforJapan .
wsj21a/22112006.gz: Those obsolete operations cost less than $ 2 billion a year , and keep Mac &apos;s ghost quiet .
wsj21a/22112007.gz: That &apos;s about all it costs to appease Adm. Erich Raeder &apos;s ghost .
wsj21a/22112008.gz: In 1941 , Raeder and the German navy threatened to attack the Panama Canal , so we created the Southern Command in Panama .
wsj21a/22112009.gz: The Southern Command has grown even bigger since the war because Raeder &apos;s ghost sometimes runs through the E ring dressed like Gen. Noriega .
wsj21a/22112011.gz: So far no one has .
wsj21a/22112012.gz: The ghost of the Soviet brigade discovered in Cuba back in the &apos; 70s costs just a few hundred million : the price of the Caribbean Command in Key West that President Carter created in 1980 .
wsj21a/22112013.gz: The brigade hasn &apos;t been heard from since , but we keep the staff around just in case .
wsj21a/22112014.gz: George Marshall &apos;s ghost is much more difficult to keep happy .
wsj21a/22112015.gz: We keep a lot of shrines to him around the Pentagon : statues , busts , relics and such .
wsj21a/22112016.gz: The Army headquarters on the third deck of the Pentagon used to burn a lot of incense to him , but the Navy headquarters on the fourth deck made them stop it .
wsj21a/22112017.gz: You see , Marshall had this thing about the Navy and the Marines -- he wanted to make them part of the Army but Secretary of the Navy James Forrestal blocked him .
wsj21a/22112018.gz: Now his ghost won &apos;t let up till it &apos;s done .
wsj21a/22112019.gz: To keep him quiet we invent a new unified command every year or so run by the Army or the Air Force and put more of the Navy and Marines under it .
wsj21a/22112021.gz: Which brings up the worst and meanest ghost of all -- the ghost of the shah of Iran .
wsj21a/22112023.gz: Mr. Carter said he would go to war to stop anyone from trying to grab Iran .
wsj21a/22112024.gz: But that ghost wouldn &apos;t settle for words , he wanted money and people -- lots .
wsj21a/22112025.gz: So Mr. Carter formed three new Army divisions and gave them to a new bureaucracy in Tampa called the Rapid Deployment Force .
wsj21a/22112026.gz: But that ghost wasn &apos;t fooled ; he knew the RDF was neither rapid nor deployable nor a force -- even though it cost $ 8 billion or $ 10 billion a year .
wsj21a/22112027.gz: After Mr. Carter was defeated in 1980 , the shah &apos;s ghost claimed the credit and then went after President Reagan and Cap Weinberger .
wsj21a/22112028.gz: I saw what he did to them firsthand .
wsj21a/22112029.gz: It made my shoelaces dance with terror .
wsj21a/22112032.gz: He bought $ 4 billion in prepositioning ships and $ 7 billion in ammo and equipment to fill them , and parked them at a new $ 6 billion base at Diego Garcia in the middle of the Indian Ocean .
wsj21a/22112033.gz: He dedicated all these new forces to the Persian Gulf .
wsj21a/22112034.gz: One night both Marshall &apos;s ghost and the shah &apos;s ghost together caught Cap and threw him to the ground .
wsj21a/22112035.gz: Before they let him go he added a thousand bureaucrats to the RDF in Tampa and renamed it Central Command .
wsj21a/22112036.gz: He gave those bureaucrats charge of all naval operations in the Persian Gulf and Indian Ocean .
wsj21a/22112037.gz: Marshall figured it would be good training for those soldiers -- someday maybe they would get the whole Navy .
wsj21a/22112038.gz: They had fun moving the carriers around , but it turned out that they had forgotten all about mine sweepers .
wsj21a/22112041.gz: We &apos;d get our asses kicked . &quot;
wsj21a/22112043.gz: So the U.S. found itself paying about $ 2 billion in baksheesh to various Arab potentates for basing rights around the Indian Ocean .
wsj21a/22112044.gz: We had great success in Somalia .
wsj21a/22112045.gz: But then it turned out that President Siad Barrah was not at all a nice person and the Navy pointed out that the base he promised us in Berbera had silted up about a hundred years ago and anyway was 1,244 miles from the mouth of the Gulf .
wsj21a/22112046.gz: ( But who &apos;s counting . )
wsj21a/22112047.gz: Still , Berbera was the best we could get , so we stay in bed with President Barrah .
wsj21a/22112048.gz: All these reports about him committing genocide are probably exaggerated anyway .
wsj21a/22112050.gz: Meanwhile , Congress is cutting huge chunks out of the rest of the defense budget .
wsj21a/22112052.gz: Couldn &apos;t we save $ 20 billion or $ 30 billion a year by shifting that stuff to the reserves ?
wsj21a/22112053.gz: And why not save the costs of a thousand bureaucrats by abolishing Central Command and putting responsibility for Gulf naval operations back where it belongs , afloat with the task force commander in the Gulf ?
wsj21a/22112054.gz: And where were all our handsomely paid Indian Ocean allies last year when our convoys were being attacked ? &quot;
wsj21a/22112055.gz: Questions like that really stir up Marshall &apos;s ghost .
wsj21a/22112056.gz: He appeared late one night in the bedroom of the new defense secretary , Dick Cheney .
wsj21a/22112058.gz: He wouldn &apos;t leave until Mr. Cheney promised to do whatever the Pentagon systems analysts told him .
wsj21a/22112059.gz: So next day Mr. Cheney went out and did just that : He canceled the 600 \@-\@ ship Navy and cut back one carrier and 20 frigates .
wsj21a/22112060.gz: Then he canceled production of the Navy &apos;s most important carrier aircraft , the F \@-\@ 14 and the A \@-\@ 6 .
wsj21a/22112061.gz: On the other hand , Mr. Cheney retained all those new land forces .
wsj21a/22112062.gz: Marshall &apos;s ghost is satisfied for now , but he &apos;ll be back .
wsj21a/22112063.gz: What with Halloween coming and bigger defense cuts looming , more and more Pentagon bureaucrats are crawling under their desks .
wsj21a/22112065.gz: Then the whole thing will start to collapse , just as it did in the 1970s , and the ghosts and banshees will be howling through the place turning people &apos;s hair white .
wsj21a/22112066.gz: Gives me the willies just thinking about it .
wsj21a/22112067.gz: Mr. Lehman , a Reagan Navy secretary , is a managing director of PaineWebber .
wsj21a/22113001.gz: The metal and marble lobby of CenTrust Bank &apos;s headquarters is grander than your average savings and loan .
wsj21a/22113002.gz: For one thing , there is an old master on the wall -- &quot; Samuel Anointing David , &quot; a big baroque canvas painted by Mattia Preti , a 17th \@-\@ century Neapolitan .
wsj21a/22113003.gz: At the moment , however , the painting is a nagging reminder of the problems that have engulfed CenTrust and its flamboyant chairman and chief executive , David L. Paul .
wsj21a/22113004.gz: In an international buying spree that began barely two years ago , Mr. Paul amassed a collection of about 30 pre \@-\@ 18th \@-\@ century works , including the Preti , at a total cost of $ 28 million .
wsj21a/22113005.gz: By midnight Oct. 6 , all of the paintings were supposed to have been sold off , under orders from Florida &apos;s comptroller , whose office regulates the state &apos;s S &amp; Ls .
wsj21a/22113006.gz: CenTrust didn &apos;t meet the deadline .
wsj21a/22113007.gz: The collection was at the heart of a grandiose plan Mr. Paul had in which the art was to do double duty -- as an investment for CenTrust and as decoration for the S &amp; L &apos;s new office tower , designed by I.M . Pei .
wsj21a/22113009.gz: Mr. Paul had no right to buy art for the S &amp; L in the first place -- it isn &apos;t on the comptroller &apos;s &quot; permissible &quot; list -- without seeking a special dispensation , which he did not do .
wsj21a/22113010.gz: Besides that , some of the paintings that were to grace the walls of CenTrust actually ended up hanging in the chairman &apos;s estate on La Gorce Isle off Miami Beach .
wsj21a/22113011.gz: Last spring , the comptroller &apos;s office called a halt to Mr. Paul &apos;s fling , giving him six months to sell the paintings .
wsj21a/22113014.gz: The comptroller &apos;s office says it is &quot; monitoring the situation . &quot;
wsj21a/22113015.gz: Though the agency could remove Mr. Paul , it has no current intention to do that .
wsj21a/22113016.gz: &quot; It &apos;s not like selling Chevrolets , &quot; Mr. Paul says , as he takes a drag on a goldbanded St. Moritz cigarette .
wsj21a/22113017.gz: &quot; The last six months has established the quality of the collection .
wsj21a/22113018.gz: There &apos;s no fire sale here . &quot;
wsj21a/22113019.gz: Despite Mr. Paul &apos;s characteristic hauteur , the 50 \@-\@ year \@-\@ old , chain \@-\@ smoking dynamo is finding that getting CenTrust -- Florida &apos;s largest thrift institution -- out of its riskiest investments is much tougher than getting into them had been .
wsj21a/22113020.gz: Paintings are just part of the picture .
wsj21a/22113021.gz: Although Mr. Paul has pared a $ 1.35 billion junk \@-\@ bond portfolio to less than $ 900 million since April , the high \@-\@ yield debt market has plummeted .
wsj21a/22113023.gz: And CenTrust has other problems .
wsj21a/22113024.gz: 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 .
wsj21a/22113025.gz: Mr. Paul has a plan to bring in $ 150 million by selling off 63 of CenTrust &apos;s 71 branches , but it has yet to be approved by regulators .
wsj21a/22113026.gz: It is Mr. Paul &apos;s art venture , however , that has drawn the most attention from investors and regulators , not to mention galleries throughout the world .
wsj21a/22113027.gz: Embittered shareholders ( some of whom are suing ) say the chairman and his collection epitomize the excesses of speculation that set off the national S &amp; L crisis .
wsj21a/22113028.gz: ( CenTrust shares have fallen sharply in price from a high of $ 15.125 in 1986 to close yesterday at $ 2.875 . )
wsj21a/22113029.gz: Gallery directors , meanwhile , say Mr. Paul and others of his ilk have left an indelible mark on the art world -- and not for the better .
wsj21a/22113030.gz: Collectors don &apos;t say &quot; It &apos;s a van Gogh &quot; anymore , laments Harry Brooks , the president of Wildenstein &amp; Co . , a New York gallery .
wsj21a/22113031.gz: &quot; They say , `Johnny Payson got $ 53 million for his , so certainly $ 10 million isn &apos;t too much for mine.&apos;
wsj21a/22113032.gz: 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 . . . . &quot;
wsj21a/22113033.gz: Mr. Payson , an art dealer and collector , sold Vincent van Gogh &apos;s &quot; Irises &quot; at a Sotheby &apos;s auction in November 1987 to Australian businessman Alan Bond .
wsj21a/22113035.gz: 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 .
wsj21a/22113036.gz: He established his reputation as a freespender in January last year at Sotheby &apos;s auction of the Linda and Gerald Guterman collection in New York .
wsj21a/22113037.gz: There , on one of his first shopping trips , Mr. Paul picked up several paintings at stunning prices .
wsj21a/22113039.gz: The price paid was a record for the artist .
wsj21a/22113040.gz: ( Some 64 % of items offered at the Guterman auction were sold , at an average price of $ 343,333 .
wsj21a/22113041.gz: The rest were withdrawn for lack of acceptable bids . )
wsj21a/22113042.gz: Afterward , Mr. Paul is said by Mr. Guterman to have phoned Mr. Guterman , the New York developer selling the collection , and gloated .
wsj21a/22113045.gz: Mr. Paul denies phoning and gloating .
wsj21a/22113046.gz: &quot; It &apos;s just not true , &quot; he says .
wsj21a/22113047.gz: Mr. Paul quickly became more aggressive in his collecting , with the help of George Wachter , a Sotheby &apos;s expert in old masters whom he met at an exhibition of the Guterman items .
wsj21a/22113048.gz: Mr. Wachter , who became his principal adviser , searched galleries in London , Paris and Monaco .
wsj21a/22113049.gz: And , according to one dealer , Mr. Wachter had a penchant for introducing Mr. Paul with the phrase : &quot; He can buy anything . &quot;
wsj21a/22113050.gz: Nicholas Hall , the president of the Colnaghi U.S.A . Ltd. gallery in New York , sold Mr. Paul &quot; Abraham and Sarah in the Wilderness &quot; by Giovanni Battista Tiepolo .
wsj21a/22113051.gz: Mr. Hall says Mr. Paul &quot; was known to spend a lot of money .
wsj21a/22113052.gz: People were interested in seeing him , but it was recognized that the route was through Sotheby &apos;s and particularly George Wachter . &quot;
wsj21a/22113053.gz: Mr. Paul thus developed a close , symbiotic relationship with Sotheby &apos;s .
wsj21a/22113054.gz: Mr. Paul was eager to assemble a collection for the headquarters CenTrust has been moving into for the greater part of a year .
wsj21a/22113056.gz: European dealers continued to dominate the action in old masters , which Sotheby &apos;s North America had lately been touting in this country .
wsj21a/22113057.gz: For several months , there was optimism all around .
wsj21a/22113058.gz: Last October , Mr. Paul paid out $ 12 million of CenTrust &apos;s cash -- plus a $ 1.2 million commission -- for &quot; Portrait of a Man as Mars . &quot;
wsj21a/22113059.gz: The painting , attributed to Flemish artist Peter Paul Rubens , was purchased privately through Sotheby &apos;s , not at auction .
wsj21a/22113060.gz: In March 1989 , just 15 months into his campaign , Mr. Paul was named by Art &amp; Antiques magazine as one of the top 100 individual collectors in the U.S .
wsj21a/22113061.gz: &quot; An unknown quantity to most of the art world , Paul is no stranger to lavish spending , &quot; the magazine said , noting that he doesn &apos;t stop at paint on canvas but also spends big on art you can eat .
wsj21a/22113062.gz: &quot; He recently bid $ 30,000 at a Paris charity auction for a dinner cooked by six of the world &apos;s great chefs , but the final party cost closer to $ 100,000 . &quot;
wsj21a/22113063.gz: ( Mr. Paul says it wasn &apos;t that high . )
wsj21a/22113064.gz: The art collection might have come to rival the Medicis &apos; had the Florida comptroller &apos;s office not got wind of Mr. Paul &apos;s aesthetic adventure .
wsj21a/22113065.gz: In its letter to him , dated March 2 and shared with reporters , Alex Hager , the chief of the thrift \@-\@ institution bureau in the comptroller &apos;s office , expressed puzzlement that the S &amp; L could be so profligate when it had reported losses of more than $ 13 million in its two preceding quarters .
wsj21a/22113066.gz: The state gave CenTrust 30 days to sell the Rubens .
wsj21a/22113067.gz: The comptroller &apos;s office eventually extended the deadline to six months but broadened its demands , ordering that the &quot; book value of the collection { be } reduced to zero . &quot;
wsj21a/22113068.gz: In other words : Get rid of all the pictures .
wsj21a/22113069.gz: The state obliquely noted that unsafe banking practices are grounds for removing an officer or director and closed with the admonition to Mr. Paul : &quot; Govern yourself accordingly . &quot;
wsj21b/22113071.gz: 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 &apos;s .
wsj21b/22113072.gz: He explains that he was &quot; merely storing the paintings at home -- with some display -- because of the special dehumidified environment &quot; required for their safekeeping , until CenTrust &apos;s new building was ready for them .
wsj21b/22113073.gz: Still , the incident was embarrassing .
wsj21b/22113074.gz: It came on the heels of a number of local newspaper articles suggesting that Mr. Paul has benefited handsomely from his association with CenTrust .
wsj21b/22113076.gz: He owns 43 % of CenTrust &apos;s shares .
wsj21b/22113078.gz: The $ 12 million lavished on the Rubens , for example , was a record price for the artist and maybe twice its value , given a dispute among scholars about its provenance .
wsj21b/22113079.gz: David Tunick , the president of David Tunick Inc . , a New York gallery , says scholars question the authenticity of the Rubens .
wsj21b/22113080.gz: It may have been painted instead by a Rubens associate .
wsj21b/22113081.gz: &quot; The feeling among many experts on the commercial side is that the price paid at the time was excessive in any event , &quot; Mr. Tunick says .
wsj21b/22113082.gz: &quot; It sounds like with the Rubens he got absolutely taken to the cleaners . &quot;
wsj21b/22113084.gz: &quot; It &apos;s not beyond credibility the Rubens will someday be worth $ 12 million , but whether it could be sold for that amount tomorrow remains to be seen . &quot;
wsj21b/22113085.gz: Still , predicting is tricky .
wsj21b/22113086.gz: &quot; I &apos;m forever dumbfounded by what I see making these high prices . &quot;
wsj21b/22113087.gz: Jonathan H. Kress , the son of the painting &apos;s former owner , Mrs. Rush Kress , dismisses the price talk as &quot; sour grapes . &quot;
wsj21b/22113089.gz: Mr. Paul , for his part , defends the Rubens price , saying a lot of the experts have never seen the thing itself .
wsj21b/22113090.gz: &quot; Most of them weren &apos;t even born the last time the painting was displayed publicly , &quot; he says .
wsj21b/22113091.gz: Art prices are skyrocketing , but a good deal of legerdemain is involved in compiling statistics on sales .
wsj21b/22113092.gz: Salomon Brothers Inc . , the investment \@-\@ banking firm , in its annual tally of investment returns , reported that old masters appreciated 51 % in the year ended June 1 , the greatest return of any of 13 assets it tracked .
wsj21b/22113093.gz: ( Impressionist and modern paintings , not tracked by Salomon , are ranked even higher at 74 % by Sotheby &apos;s . )
wsj21b/22113094.gz: Salomon , moreover , gets its data on art appreciation from Sotheby &apos;s , whose prices go up with clients like Mr. Paul in its thrall .
wsj21b/22113095.gz: The percentages omit from consideration the many paintings that go begging at auction .
wsj21b/22113096.gz: Art indexes track winners , not losers .
wsj21b/22113097.gz: But art that has fallen sharply in value is rarely put up for sale .
wsj21b/22113098.gz: Also , at any of Sotheby &apos;s auctions of old masters , roughly one \@-\@ third to one \@-\@ fifth of what is offered doesn &apos;t sell at any price .
wsj21b/22113099.gz: It &apos;s not that there aren &apos;t any bids , but the bids don &apos;t meet the minimum &quot; reserve &quot; prices set by the sellers .
wsj21b/22113100.gz: In January , the Preti painting that now hangs at CenTrust was expected to bring no more than $ 700,000 at auction until Mr. Paul came along with his $ 1.15 million .
wsj21b/22113101.gz: Mr. Hall of the Colnaghi gallery says $ 1.15 million &quot; would have been an impossible price for anyone to ask for a Preti four years ago . &quot;
wsj21b/22113102.gz: But from his vantage point , it isn &apos;t that Mr. Paul , a customer of his too , overpaid for the work , &quot; a gargantuan painting by an artist who is not a household word . &quot;
wsj21b/22113103.gz: ( The painting is 10 feet wide , seven feet high . )
wsj21b/22113104.gz: Rather , &quot; It just shows things have changed . &quot;
wsj21b/22113105.gz: Mr. Paul boasts that he spotted bargains in old masters just before they took an upward turn .
wsj21b/22113106.gz: &quot; They went up 51 % last year , and they &apos;ll do it again this year , &quot; he declares .
wsj21b/22113107.gz: &quot; They were a sleeper .
wsj21b/22113108.gz: Everybody was out buying Monets . &quot;
wsj21b/22113109.gz: Sotheby &apos;s vice president Diana Levitt says the auction house has been &quot; assisting &quot; Mr. Paul in selling the paintings .
wsj21b/22113111.gz: Mr. Paul claims to have sold three paintings , at more than a 10 % profit .
wsj21b/22113112.gz: That isn &apos;t 51 % , and the claim isn &apos;t documented .
wsj21b/22113113.gz: He furthermore denies that he relied too heavily on Sotheby &apos;s or Mr. Wachter .
wsj21b/22113114.gz: Mr. Paul says he had not one but four advisers and that he never bid impulsively .
wsj21b/22113115.gz: After all , he had the counsel of &quot; curators from the most reputable museums in the world . &quot;
wsj21b/22113116.gz: He says he expects to sell the collection -- including the controversial Rubens -- &quot; carefully and prudently , just as it was put together . &quot;
wsj21b/22113117.gz: But in art \@-\@ world parlance , Mr. Paul &apos;s holdings are &quot; burnt . &quot;
wsj21b/22113118.gz: That is , he is being compelled 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 .
wsj21b/22113119.gz: &quot; After a few years , you can argue there has been natural appreciation , &quot; says Susan Theran , the publisher of Leonard &apos;s Annual Price Index of Art Auctions .
wsj21b/22113120.gz: But quick turnover in artwork is &quot; like pawning your jewelry -- you end up with 50 % .
wsj21b/22113121.gz: People hold out and try to get a bargain . &quot;
wsj21b/22113122.gz: Sotheby &apos;s defends itself and Mr. Paul in the matter .
wsj21b/22113123.gz: Mr. Wachter says Mr. Paul was a quick study who worked intensely and bought the best pictures available at the moment .
wsj21b/22113124.gz: &quot; On occasion , he paid a high price , &quot; Mr. Wachter concedes , but he says those who bid less and dropped out were dealers who would then have marked up the paintings to resell them at a profit to collectors .
wsj21b/22113125.gz: Naomi Bernhard Levinson , a fine \@-\@ arts appraiser at Bernhard Associates in San Francisco , considers it &quot; definite 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 . &quot;
wsj21b/22113126.gz: Sotheby &apos;s , she says , is &quot; wearing both hats . &quot;
wsj21b/22113127.gz: &quot; I can &apos;t see why there would be a conflict of interest , &quot; says Sotheby &apos;s Ms. Levitt .
wsj21b/22113128.gz: &quot; 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 . &quot;
wsj21b/22113129.gz: Frequently , clients express interest in paintings but don &apos;t end up bidding , she adds , &quot; so we don &apos;t know who the potential buyer will be . &quot;
wsj21b/22113130.gz: Mr. Paul , in selling off his paintings , is seeking at least a 15 % return on the bank &apos;s investment , so as to prove that the venture was sound .
wsj21b/22113131.gz: Mr. Paul says that he has feelers out over much of the globe and that potential buyers from as far away as Japan and Italy have examined the collection .
wsj21b/22113132.gz: Because of the pressure on CenTrust to sell , dealers and collectors have been trying to get the paintings at bargain \@-\@ basement prices .
wsj21b/22113133.gz: But so far , Mr. Paul and his advisers are holding fast .
wsj21b/22113134.gz: One dealer , Martin Zimet of French &amp; Co. in New York , says he &quot; would have loved to buy &quot; a Jan Davids de Heem painting from the bank .
wsj21b/22113135.gz: &quot; I tried to steal the picture -- to buy it attractively -- and { Sotheby &apos;s } wouldn &apos;t do it .
wsj21b/22113136.gz: They were protecting his interests . &quot;
wsj21b/22113137.gz: Meanwhile , Mr. Paul and CenTrust executives are getting squeamish about opulence .
wsj21b/22113138.gz: Mr. Paul has been characterized as &quot; the Great Gatsby or something , &quot; complains Karen E. Brinkman , an executive vice president of CenTrust .
wsj21b/22113139.gz: The media , she says , have distorted his personal life .
wsj21b/22113140.gz: Mr. Paul nods in agreement .
wsj21b/22113141.gz: &quot; I don &apos;t think I have a life style that is , frankly , so flamboyant , &quot; he says .
wsj21b/22113142.gz: But at just that moment , he is interrupted in his office by a servant in tuxedo who pours coffee from silver into a cup of china and dabs the brim with linen .
wsj21b/22113143.gz: Mr. Paul says , yes , the ceiling in his executive suite is gold \@-\@ leaf inlay .
wsj21b/22113146.gz: &quot; Don &apos;t say it &apos;s a gold ceiling .
wsj21b/22113147.gz: Just say the offices are tastefully appointed , &quot; he says .
wsj21b/22113148.gz: &quot; Otherwise , the regulators will take it for decadence , and nowadays everything &apos;s got to be pristine . &quot;
wsj21b/22113149.gz: Figures don &apos;t include taxes or transaction costs .
wsj21b/22114001.gz: Companies listed below reported quarterly profit substantially different from the average of analysts &apos; estimates .
wsj21b/22114002.gz: The companies are followed by at least three analysts , and had a minimum five \@-\@ cent change in actual earnings per share .
wsj21b/22114003.gz: Estimated and actual results involving losses are omitted .
wsj21b/22114004.gz: The percent difference compares actual profit with the 30 \@-\@ day estimate where at least three analysts have issues forecasts in the past 30 days .
wsj21b/22114005.gz: Otherwise , actual profit is compared with the 300 \@-\@ day estimate .
wsj21b/22115001.gz: { During its centennial year , The Wall Street Journal will report events of the past century that stand as milestones of American business history . }
wsj21b/22115002.gz: CREATIVE ACCOUNTING , mostly by conglomerates , forced CPAs to change their way of setting standards to be followed by corporations reporting financial results , standards that had become all too flexible .
wsj21b/22115003.gz: The new Financial Accounting Standards Board ( FASB ) was created in 1972 to replace the Accounting Principles Board of the American Institute of Certified Public Accountants .
wsj21b/22115005.gz: The new board &apos;s seven \@-\@ member structure kept four CPAs , but the others were from industry and academia .
wsj21b/22115006.gz: 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 30 , 1972 .
wsj21b/22115007.gz: The former board had produced &quot; 21 opinions and 1,000 critics &quot; in its 12 \@-\@ year life , its chairman had conceded .
wsj21b/22115008.gz: The climate was right for the new FASB .
wsj21b/22115009.gz: In the late 1960s some CPAs failed to correct such abuses as clients picking permissive rules that hyped earnings and stock prices .
wsj21b/22115010.gz: And in November 1970 Congress had passed a special act to overrule one board rule .
wsj21b/22115012.gz: Keepers of the books , dubbed &quot; figure filberts , &quot; loathed the threat .
wsj21b/22115013.gz: The FASB had its initial meeting on March 28 , 1973 .
wsj21b/22115014.gz: On Dec. 13 , 1973 , it issued its first rule ; it required companies to disclose foreign currency translations in U.S . dollars .
wsj21b/22115015.gz: The FASB since then has issued 102 rules , and some still rile industry .
wsj21b/22115016.gz: Since late 1987 , for example , it has put off a rule dealing with deferred income taxes because of the continuing controversy over the issue .
wsj21b/22116001.gz: Amcast Industrial Corp. said it plans to repurchase 500,000 shares , or about 7 % of its shares outstanding , in open market transactions .
wsj21b/22116002.gz: The metal products concern currently has 7.2 million common shares outstanding .
wsj21b/22116004.gz: The company named Dillon Read &amp; Co. as its exclusive agent for the stock buy \@-\@ back program .
wsj21b/22117001.gz: A seat on the Chicago Board of Trade was sold for $ 390,000 , down $ 5,000 from the previous sale last Tuesday .
wsj21b/22117002.gz: Seats currently are quoted at $ 353,500 bid , $ 405,000 asked .
wsj21b/22117003.gz: The record price for a full membership on the exchange is $ 550,000 , set Aug. 31 , 1987 .
wsj21b/22117004.gz: An associate member seat was sold for $ 228,000 , up $ 8,000 from the previous sale Oct. 4 .
wsj21b/22117005.gz: Associate member seats currently are quoted at $ 225,000 bid , $ 256,000 asked .
wsj21b/22117006.gz: The record price for associate membership is $ 275,000 , set Aug. 30 , 1988 .
wsj21b/22118001.gz: CAE Industries Ltd. said its Link Flight Simulation division was awarded a contract by the U.S . Army for two helicopter simulators , which the company valued at as much as 37 million Canadian dollars ( US $ 31.5 million ) .
wsj21b/22118002.gz: CAE said the fixed price for the first of the AH \@-\@ 64 Apache combat mission simulators is C $ 19 million .
wsj21b/22118003.gz: It is scheduled for delivery in late 1991 .
wsj21b/22118004.gz: The price of the second simulator ranges between C $ 16.4 million and C $ 18 million , CAE said , depending on when the Army exercises its option .
wsj21b/22118005.gz: CAE is a Toronto \@-\@ based maker of commercial and military aircraft simulators and training equipment .
wsj21b/22119002.gz: Total value of the contract could be $ 100 million , Helionetics said , and work on the project would be about evenly divided .
wsj21b/22119003.gz: As previously reported , Helionetics emerged from Chapter 11 bankruptcy \@-\@ law protection in February .
wsj21b/22120001.gz: This Los Angeles company and its Union Federal Savings Bank subsidiary said more than 99 % of their 7 1 / 4 % convertible subordinated debentures due 2011 were tendered for conversion into UnionFed common stock .
wsj21b/22120002.gz: The conversion increased total equity capital by about $ 38.5 million to a total of $ 156.8 million .
wsj21b/22120003.gz: Union Federal , a federally insured savings bank , has $ 2.4 billion in assets .
wsj21b/22121001.gz: David D. Lung was appointed president and chief operating officer of this maker of building materials for manufactured homes and recreational vehicles .
wsj21b/22121002.gz: As president , Mr. Lung , 42 years old , succeeds his father , Mervin D. Lung , 66 , who founded the company in 1959 .
wsj21b/22121003.gz: Mervin Lung remains chairman and chief executive officer .
wsj21b/22121004.gz: David Lung has been with Patrick since 1970 , and has served as vice president for administration and purchasing since 1987 .
wsj21b/22122001.gz: General Dynamics Services Co . , a unit of General Dynamics Corp. , won a $ 48.2 million Army contract to establish maintenance facilities for tracked vehicles in Pakistan .
wsj21b/22122002.gz: Grumman Corp. was given a $ 15 million Navy contract for aircraft \@-\@ electronics improvements .
wsj21b/22122003.gz: Hughes Aircraft Co . , a unit of General Motors Corp. , got a $ 10.3 million Air Force contract for airborne \@-\@ radar equipment .
wsj21b/22123001.gz: Reynolds Metals Co. said third \@-\@ quarter net income dropped nearly 10 % to $ 123.7 million , or $ 2.10 a share , from $ 137.2 million , or $ 2.56 a share , a year earlier .
wsj21b/22123003.gz: Revenue rose 3 % to $ 1.52 billion from $ 1.48 billion .
wsj21b/22123004.gz: Reynolds is the third big aluminum company since Friday to report disappointing earnings .
wsj21b/22123005.gz: The No. 1 domestic aluminum producer , Aluminum Co. of America , Friday said its earnings fell 3.2 % to $ 219 million , or $ 2.46 a share .
wsj21b/22123006.gz: And Alcan Aluminium Ltd. yesterday reported net income slid 30 % to $ 180 million , or 77 cents a share , from $ 258 million , or $ 1.07 a share .
wsj21b/22123007.gz: Analysts on average had been expecting about $ 2.70 for Alcoa and $ 1 for Alcan .
wsj21b/22123008.gz: &quot; It &apos;s a good indication that level of profitability has peaked for the industry , &quot; says Vahid Fathi , metals analyst with Prescott , Ball &amp; Turben Inc . , who had estimated Reynolds would earn about $ 2.35 a share .
wsj21b/22123009.gz: The nation &apos;s No. 2 aluminum company said earnings were hurt by lower prices for certain fabricated aluminum products , which typically follow price fluctuations of primary ingots .
wsj21b/22123010.gz: The base metal price has dropped 30.3 % from a year earlier to 78 cents a pound .
wsj21b/22123011.gz: Much of the price decline has been blamed on a slowing economy and the third quarter is typically the industry &apos;s slowest period .
wsj21b/22123012.gz: But William O. Bourke , chairman and chief executive officer , said the ingot price &quot; appears to have bottomed out . &quot;
wsj21b/22123013.gz: He said shipments are continuing at a &quot; healthy &quot; pace and the company has no excess inventory .
wsj21b/22123014.gz: Aluminum shipments of 329,600 metric tons were nearly equal to the year \@-\@ earlier period , the company said .
wsj21b/22123015.gz: Nevertheless , the company said that in the latest quarter there were increased material and labor costs , including a new employee profit \@-\@ sharing plan .
wsj21b/22123016.gz: In composite trading on the New York Stock Exchange , Reynolds closed at $ 55.375 , up $ 1.25 .
wsj21b/22124002.gz: That &apos;s how the stock \@-\@ picking game is shaping up for the months ahead , according to money managers and a few brokers .
wsj21b/22124003.gz: Yesterday &apos;s 88 \@-\@ point recovery from Friday &apos;s megadrop in the Dow Jones industrials had many brokerage houses proclaiming that stocks are a good bargain again .
wsj21b/22124004.gz: But quite a few money managers aren &apos;t buying it .
wsj21b/22124005.gz: Weakening corporate earnings , they say , are no prescription for a bull market .
wsj21b/22124006.gz: &quot; The stock market ain &apos;t going to do much of anything &quot; for a while , says John Neff of Wellington Management , who runs the $ 8.3 billion Windsor Fund .
wsj21b/22124007.gz: He suspects that Friday &apos;s market decline may have a second leg , perhaps a 10 % to 15 % drop later on .
wsj21b/22124008.gz: Mr. Neff says the stock market has lost some powerful driving forces , namely earnings growth and the &quot; LBO sweepstakes &quot; -- buy \@-\@ out fever that induced investors to bid up whole groups of stocks , such as media and airlines .
wsj21b/22124009.gz: After sitting with 20 % of his fund in cash before Friday &apos;s sell \@-\@ off , Mr. Neff says he bought &quot; a narrow list of stocks &quot; yesterday .
wsj21b/22124010.gz: With flat corporate profits on the horizon for 1990 , money managers say price \@-\@ earnings multiples that look cheap today might go on being cheap for a long time .
wsj21b/22124011.gz: &quot; This is not a grossly overvalued market , but it &apos;s not cheap either , &quot; says George Collins , president of the mutual fund company T. Rowe Price Associates in Baltimore .
wsj21b/22124014.gz: Before the 1987 crash , the P / E was more than 20 .
wsj21b/22124015.gz: The common view , says Abby Cohen , strategist for Drexel Burnham Lambert , is that there will be &quot; mild economic growth , modest profit expansion , and things are going to be hunky \@-\@ dory .
wsj21b/22124016.gz: Our view is that we may see a profit decline . &quot;
wsj21b/22124017.gz: Some think investors should sell into rallies .
wsj21b/22124018.gz: The market &quot; is going to wind down , &quot; says Gerald W. Perritt , a Chicago money manager .
wsj21b/22124019.gz: &quot; Things are a little less overpriced &quot; after Friday &apos;s jolt in the market .
wsj21b/22124020.gz: He expects stocks to decline an additional 5 % to 30 % , with the Dow perhaps bottoming out between 2000 and 2100 &quot; between now and June . &quot;
wsj21b/22124021.gz: After Friday &apos;s decline , Mr. Perritt &apos;s firm ran statistical tests on 100 high \@-\@ quality stocks , using old \@-\@ fashioned value criteria devised by Benjamin Graham , an analyst and author in the 1930s and 1940s who is widely considered to be the father of modern securities analysis .
wsj21b/22124022.gz: He found 85 still overvalued and 15 fairly valued .
wsj21b/22124023.gz: Nicholas Parks , a New York money manager , expects the market to decline about 15 % .
wsj21b/22124024.gz: &quot; I &apos;ve been two \@-\@ thirds in cash since July , and I continue to think that having a defensive position is appropriate , &quot; he says .
wsj21b/22124025.gz: Companies that piled on debt in leveraged buy \@-\@ outs during the past two years &quot; will continue to surface as business problems . &quot;
wsj21b/22124026.gz: &quot; Generalizations about value aren &apos;t useful , &quot; says New York money manager John LeFrere of Delta Capital Management .
wsj21b/22124027.gz: 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 &amp; Gamble and Coca \@-\@ Cola , strong performers in recent years .
wsj21b/22124030.gz: There are still bulls out there .
wsj21b/22124032.gz: &quot; We &apos;re doing a little buying &quot; in some stocks &quot; that have really been smashed down . &quot;
wsj21b/22124033.gz: Many brokerage house officials also are optimistic .
wsj21b/22124034.gz: Yesterday , Goldman Sachs , Merrill Lynch and Dean Witter all increased the proportion of assets they recommend investors commit to stocks .
wsj21b/22124036.gz: Some investors say Friday &apos;s sell \@-\@ off was a good thing , because it deflated a lot of crazy takeover speculation .
wsj21b/22124037.gz: &quot; It was a healthy cleansing , &quot; says Michael Holland , who runs Salomon Brothers Asset Management in New York .
wsj21b/22124038.gz: From here out , these investors see a return to old \@-\@ fashioned investing , based on a company &apos;s ability to show profit growth .
wsj21b/22124039.gz: &quot; The fundamentals are pretty strong , &quot; Mr. Dreman says .
wsj21b/22124040.gz: &quot; I don &apos;t see this as a bear market at all .
wsj21b/22124041.gz: It &apos;s a recognition that there was much too much fluff in the LBO market . &quot;
wsj21b/22124042.gz: Friday &apos;s big fall was &quot; just a blunder by the stock market , &quot; says John Connolly , chief strategist for Dean Witter .
wsj21b/22124043.gz: &quot; It was an overreaction to an event { the failure of a management and union group to get bank financing for a takeover of UAL } that doesn &apos;t mean that much to lots of stocks . &quot;
wsj21b/22124044.gz: Many investors have nagging worries , however .
wsj21b/22124045.gz: Newspapers are full of headlines about companies defaulting on their debts and banks writing off real estate loans .
wsj21b/22124046.gz: That hurts investors &apos; confidence in the economy and stocks .
wsj21b/22124047.gz: Not even all the brokerage firms see clear sailing ahead .
wsj21b/22124048.gz: &quot; Disappointing profits are likely to get worse in the next two quarters , &quot; says Mary Farrell , a market strategist at PaineWebber .
wsj21b/22124049.gz: She thinks the market could drop about 10 % in the next few months , then recover and go higher .
wsj21b/22124050.gz: 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 10 % .
wsj21b/22125001.gz: 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 .
wsj21b/22125002.gz: Managers at five chains have said in recent weeks that they intend to bid for their companies .
wsj21b/22125004.gz: Hooker is based in Sydney , Australia .
wsj21b/22125007.gz: &quot; Investors aren &apos;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 . &quot;
wsj21b/22125008.gz: 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 .
wsj21b/22125009.gz: Those days are over now , he believes .
wsj21b/22125010.gz: &quot; Competition from third parties who have cash and are prepared to buy has always existed and will continue , &quot; added Mr. Rosenthal .
wsj21b/22125011.gz: &quot; But when prices were crazy , it was even harder to do an LBO .
wsj21b/22125012.gz: Bankers believed in the greater \@-\@ fool theory that says somebody else is always willing to pay more .
wsj21b/22125013.gz: This is no longer true today . &quot;
wsj21b/22125014.gz: At Saks Fifth Avenue , Paul Leblang , senior vice president , marketing , agreed that lower prices will help his management team in their proposed LBO .
wsj21b/22125015.gz: &quot; Having to take on less debt would certainly be an advantage , &quot; said Mr. Leblang .
wsj21b/22125016.gz: &quot; It would also help us in our search for equity partners .
wsj21b/22125017.gz: To make an LBO work , now we are going to need more than just junk bonds .
wsj21b/22125018.gz: &quot; None believe the proposed management LBOs will be easy to complete , especially at B. Altman &amp; Co . , which is under Chapter 11 bankruptcy protection .
wsj21b/22125020.gz: Further , many institutions today holding troubled retailers &apos; debt securities will be reticent to consider additional retailing investments .
wsj21b/22125021.gz: &quot; It &apos;s called bad money driving out good money , &quot; said one retailing observer .
wsj21b/22125022.gz: &quot; Institutions that usually buy retail paper have to be more concerned . &quot;
wsj21b/22125023.gz: 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 .
wsj21b/22125024.gz: 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 .
wsj21b/22125025.gz: &quot; What &apos;s encouraging about this is that retail chains will be sold on the basis of their sales and earnings , not liquidation values , &quot; said Joseph E. Brooks , chairman and chief executive officer of Ann Taylor Inc . , a specialty chain .
wsj21b/22125026.gz: &quot; Retailers who had good track records of producing profits will have a better chance to buy back their companies . &quot;
wsj21b/22125027.gz: Still , most retailing observers expect that all the proposed retailing LBOs will depend partly on the sale of junk bonds , a market already in tumult , in part because of concerns associated with bonds issued by the Federated and Allied units of Campeau .
wsj21b/22125029.gz: &quot; But the hurdle of financing still has to be resolved .
wsj21b/22125030.gz: 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 .
wsj21b/22126001.gz: Sony Corp. won a pretrial order blocking U.S. sales of Justin Products Inc . &apos; s &quot; My Own &quot; line of portable audio players for children .
wsj21b/22126002.gz: Judge John E. Sprizzo issued the order in Manhattan federal court , where Sony has accused the tiny company of illegally knocking off the &quot; My First Sony &quot; line .
wsj21b/22126003.gz: 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 .
wsj21b/22126004.gz: The legal fight was the subject of a Wall Street Journal story yesterday .
wsj21b/22126005.gz: Justin &apos;s attorney , Charles E. Baxley , said Justin would ask an appeals court to set aside the order temporarily , pending an expedited appeal .
wsj21b/22126006.gz: He also repeated Justin &apos;s denial of Sony &apos;s charges .
wsj21b/22126007.gz: &quot; Their likelihood of reversing us is very slim , &quot; said Lewis H. Eslinger , Sony &apos;s attorney , who said he doubts Justin will go ahead with a trial .
wsj21b/22127001.gz: CONTINENTAL MORTGAGE &amp; EQUITY TRUST said it will resume dividend payments with a 10 \@-\@ cent \@-\@ a \@-\@ share payout on Nov. 6 to shares of record Oct. 25 .
wsj21b/22127002.gz: The Dallas real estate investment trust last paid a dividend on Dec. 31 , 1987 , when shareholders received $ 1 a share .
wsj21b/22127003.gz: 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 .
wsj21b/22128002.gz: The court , in a 3 \@-\@ 0 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 didn &apos;t use .
wsj21b/22128004.gz: A majority of old contracts were renegotiated by the deadline and settled at steep discounts .
wsj21b/22128005.gz: But pipeline companies estimate they still face $ 2.4 billion in liabilities from unresolved disputes , including $ 1 billion they fear they won &apos;t be able to pass on to customers .
wsj21b/22128006.gz: 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 .
wsj21b/22128007.gz: The court left open whether FERC could reimpose a new deadline later .
wsj21b/22128010.gz: The court ordered FERC to justify within 60 days not only its cost \@-\@ sharing deadline , but other major elements of its proposed regulation for introducing more competition into natural \@-\@ gas transportation .
wsj21b/22128012.gz: The complex regulation , known in the industry as Order 500 , has been hotly contested by all sides , including natural \@-\@ gas producers , pipelines , local distribution companies and consumers .
wsj21b/22128013.gz: The court &apos;s decision would allow FERC to change some of its provisions , but ensures it will be reviewed again quickly by the court .
wsj21b/22129001.gz: MEDUSA Corp. said it voluntarily prepaid $ 7 million on its original $ 75 million term loan , bringing the total debt reduction for the year to $ 18 million .
wsj21b/22129002.gz: After the payment , the Cleveland company owes $ 57 million on the loan .
wsj21b/22129003.gz: The cement producer said the payment was made from excess cash flow .
wsj21b/22130001.gz: NATIONAL INCOME REALTY TRUST said it will resume dividend payments with a 12 \@-\@ cent \@-\@ a \@-\@ share dividend to be paid Nov. 6 to shares of record Oct. 25 .
wsj21b/22130002.gz: The mortgage and equity real estate investment trust last paid a dividend on Aug. 1 , 1988 , when holders received 75 cents a share .
wsj21b/22130003.gz: Despite continuing troubles with problem properties and nonperforming loans , the Dallas trust said it has rebuilt reserves , abandoned properties with little potential and experienced improved operating results from joint ventures .
wsj21b/22131001.gz: MLX Corp. said it reached a preliminary agreement with senior lenders to its refrigeration and air \@-\@ conditioning group to restructure the $ 188.5 million of credit facilities the lenders provide to the group .
wsj21b/22131003.gz: Among other things , the restructured facilities will substantially reduce the group &apos;s required amortization of the term loan portion of the credit facilities through September 1992 , MLX said .
wsj21b/22131004.gz: Certain details of the restructured facilities remain to be negotiated .
wsj21b/22131005.gz: The agreement is subject to completion of a definitive amendment and appropriate approvals .
wsj21b/22131006.gz: William P. Panny , MLX chairman and chief executive , said the pact &quot; will provide MLX with the additional time and flexibility necessary to complete the restructuring of the company &apos;s capital structure . &quot;
wsj21b/22131007.gz: MLX has filed a registration statement with the Securities and Exchange Commission covering a proposed offering of $ 120 million in long \@-\@ term senior subordinated notes and warrants .
wsj21b/22132001.gz: Dow Jones &amp; Co. said it acquired a 15 % interest in DataTimes Corp. , a subsidiary of Oklahoma Publishing Co . , Oklahoma City , that provides electronic research services .
wsj21b/22132002.gz: Terms weren &apos;t disclosed .
wsj21b/22132003.gz: Customers of either DataTimes or Dow Jones News / Retrieval are able to access the information on both services .
wsj21b/22132004.gz: Dow Jones is the publisher of The Wall Street Journal .
wsj21b/22133001.gz: Flowers Industries Inc. said it will report a charge of eight cents to 10 cents a share for its fiscal first quarter , ended Sept . 23 , from the sale of two bakeries , in High Point , N.C . , and Gadsden , Ala .
wsj21b/22133002.gz: The convenience \@-\@ food company said it sold the bakeries to Mills Family Bakery for an undisclosed amount .
wsj21b/22133003.gz: It said the sales were part of a 1983 Federal Trade Commission Consent Order .
wsj21b/22133004.gz: A year earlier , Flowers had fiscal first \@-\@ quarter net income of $ 8 million , or 23 cents a share , on revenue of $ 170.4 million .
wsj21b/22134001.gz: Raw \@-\@ steel production by the nation &apos;s mills decreased 0.8 % last week to 1,828,000 tons from 1,843,000 tons the previous week , the American Iron and Steel Institute said .
wsj21b/22134002.gz: Last week &apos;s output rose 1.4 % from the 1,802,000 tons produced a year earlier .
wsj21b/22134003.gz: The industry used 82.2 % of its capability last week , compared with 82.8 % the previous week and 84 % a year ago .
wsj21b/22134004.gz: The capability utilization rate is a calculation designed to indicate at what percent of its production capability the industry is operating in a given week .
wsj21b/22135001.gz: Selwyn B. Kossuth was named executive director of the commission , effective early November .
wsj21b/22135002.gz: Mr. Kossuth , 52 years old , succeeds Ermanno Pascutto , 36 , who resigned to join Hong Kong &apos;s Securities and Futures Commission .
wsj21b/22135003.gz: Mr. Kossuth was vice president and director , corporate finance , of Nesbitt Thomson Deacon Inc . , a Toronto investment dealer .
wsj21b/22136001.gz: Dun &amp; Bradstreet Corp. &apos; s Market Data Retrieval unit said it acquired School and College Construction Reports service from Intelligence for Education Inc .
wsj21b/22136002.gz: Terms weren &apos;t disclosed .
wsj21b/22136003.gz: The service supplies weekly reports on school and college construction plans .
wsj21b/22136004.gz: Market Data Retrieval is a compiler of educational information and provides related services .
wsj21b/22136005.gz: Closely held Intelligence in Education , of Larchmont , N.Y . , is an educational publisher and consultant .
wsj21b/22136006.gz: A battle is raging in Venice over plans to have the 1,200 \@-\@ year \@-\@ old Italian city be the site for a universal exposition in 2000 .
wsj21b/22136007.gz: The plans include a subway system , a congress center , floating trees , fanciful fountains -- and as many as 60,000 additional tourists a day .
wsj21b/22136009.gz: But opponents fear overcrowding .
wsj21b/22136012.gz: Three gambling casinos have opened in Poland .
wsj21b/22136013.gz: The three establishments -- two in Warsaw and one in Krakow -- accept only foreign currency and are joint ventures between Polish firms and Western companies .
wsj21b/22136014.gz: Not all Poles are pleased .
wsj21b/22136015.gz: &quot; What do we want casinos for when we haven &apos;t got anything in the shops ? &quot; one housewife asked .
wsj21b/22136016.gz: But Bogdan Gumkowski , who runs the casino at Warsaw &apos;s Marriott Hotel , said the ventures would help Poland service its $ 39 billion foreign debt by pouring dollars into the state firms in the joint ventures -- the LOT airline and Orbis tourist organization .
wsj21b/22136017.gz: Algeria plans to increase natural \@-\@ gas sales to Europe and the U.S .
wsj21b/22136018.gz: 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 Trans \@-\@ Mediterranean pipeline , expanding capacity by up to six billion cubic meters a year from 12.5 billion .
wsj21b/22136019.gz: Algeria also wants to build a pipeline through Morocco and across the Strait of Gibraltar to supply Spain , France and West Germany with up to 15 billion cubic meters a year by the late 1990s .
wsj21b/22136020.gz: South Africa &apos;s National Union of Mineworkers agreed to suspend the strike by diamond workers and resume negotiations with De Beers Consolidated Mines Ltd. over their wage dispute , De Beers said .
wsj21b/22136021.gz: It also said the union had agreed to meet the company for further talks tomorrow .
wsj21b/22136022.gz: The strike at five De Beers mines began last Thursday , with 9,500 out of a total 10,000 NUM members employed on De Beers mines participating , according to the union , while De Beers said there were 7,800 participants .
wsj21b/22136023.gz: The union has demanded a 37.6 % increase in the minimum wage while De Beers &apos;s final offer was an increase of 17 % .
wsj21b/22136024.gz: A 35 \@-\@ nation environmental conference opened in Sofia , Bulgaria .
wsj21b/22136025.gz: The gathering is expected to focus on curbing the fouling of rivers and lakes , limiting damage from industrial accidents and improving the handling of harmful chemicals .
wsj21b/22136026.gz: West German Environment Minister Klaus Toepfer said Bonn is convinced of the need for cooperation , &quot; especially with our neighbors in the East , because we are directly affected by their ecological progress or lack of it . &quot;
wsj21b/22136027.gz: The U.S. and Canada joined every European country except Albania at the meeting .
wsj21b/22136028.gz: The Swedish publishers of a new Estonian \@-\@ language newspaper rushed an extra edition across the Baltic on Oct. 10 after the first run sold out in one day .
wsj21b/22136029.gz: Editor Hasse Olsson said plans had called for 7,000 copies of the monthly Are Paev ( Business Paper ) to be sold at newsstands and an additional 3,000 promotion issues to be sent by direct mail .
wsj21b/22136030.gz: He said 13,000 more copies were sent to Estonia because of strong sales .
wsj21b/22136031.gz: The Swedish publishing company Bonniers owns 51 % of Are Paev , and the Estonian management company Minor owns 49 % .
wsj21b/22136032.gz: Angel Gurria , Mexico &apos;s top debt negotiator , said the country &apos;s creditor banks are responding positively to Mexico &apos;s debt \@-\@ reduction package .
wsj21b/22136033.gz: Mr. Gurria &apos;s optimism contrasts with some bankers &apos; views that the deal may require a lot of arm twisting by the U.S . Treasury in order to succeed .
wsj21b/22136035.gz: An increasing number of banks appear to be considering the option under the deal whereby they can swap their Mexican loans for 30 \@-\@ year bonds with a face value discounted by 35 % , Mr. Gurria said .
wsj21b/22136036.gz: The other two options consist of swapping loans for bonds with 6.25 % interest rates , or providing fresh loans .
wsj21b/22136037.gz: The accord , which covers $ 52.7 billion of Mexico &apos;s medium- and long \@-\@ term debt , is expected to go into effect in early
wsj21b/22136038.gz: China &apos;s top film actress , Liu Xiaoqing , paid $ 4,555 in back taxes and fines in Shandong province , the People &apos;s Daily reported .
wsj21b/22136040.gz: China will spend $ 9.45 million for urgent maintenance on Tibet &apos;s Potala Palace , former home of the Dalai Lama , the China News Service said .
wsj21b/22136041.gz: The Dalai Lama , who was just awarded the Nobel Peace Prize , lives in exile in India .
wsj21b/22137001.gz: George W. Koch , 63 years old , president and chief executive officer of Grocery Manufacturers of America Inc . , was elected a director of this maker of spices , seasonings and specialty foods , succeeding Erskin N. White Jr . , 65 , who resigned .
wsj21b/22138001.gz: American Business Computer Corp. said it privately placed 1,035,000 common shares at $ 2.50 a share .
wsj21b/22138002.gz: The placement was made through Gray Seifert Securities , New York , to institutional investors .
wsj21b/22138003.gz: Proceeds will be used to commercialize recently patented technology and support the company &apos;s international expansion .
wsj21b/22138004.gz: The company develops and markets products for the food service industry .
wsj21b/22139001.gz: THE R.H . MACY &amp; CO. department \@-\@ store chain isn &apos;t for sale .
wsj21b/22139002.gz: In yesterday &apos;s edition , it was incorrectly included with a list of New York chains up for sale .
wsj21b/22140001.gz: Korean car exports have slid about 40 % so far this year , but auto makers here aren &apos;t panicking .
wsj21b/22140003.gz: South Korean consumers are expected to buy almost 500,000 passenger cars this year , up 60 % from 1988 .
wsj21b/22140005.gz: &quot; We are very lucky to easily change an export loss to domestic plus , &quot; says Hong Tu Pyo , managing director of domestic marketing for Hyundai Motor Co .
wsj21b/22140006.gz: As it is , waiting lists of a month aren &apos;t unusual for popular models .
wsj21b/22140007.gz: Demand is so strong that all of the domestic makers -- Hyundai , Kia Motors Corp. , Daewoo Motor Co. and even upstart SsangYong Motor Co . -- plan to build more factories .
wsj21b/22140008.gz: Industry analysts predict that by 1995 , South Korea will be building three million cars a year -- about half of that for export .
wsj21b/22140010.gz: But South Korean auto makers are confident that the export market will bounce back and that demand in Korea will stay strong .
wsj21b/22140011.gz: Currently only one in 38 South Koreans owns a car , up from one in 200 a decade ago .
wsj21b/22140012.gz: &quot; In the year 2000 it will be one car per family .
wsj21b/22140013.gz: At that point domestic sales will slow down , &quot; says Kim Yoon Kwon , director of marketing for Daewoo Motor .
wsj21b/22140014.gz: The reason for the tremendous demand is simple : South Koreans suddenly have a lot more money .
wsj21b/22140015.gz: &quot; We never thought we &apos;d own a car , &quot; says Kwang Ok Kyong , who just bought a Daewoo LeMans on a five \@-\@ year loan .
wsj21b/22140016.gz: She and her husband started a small printing business and need the car for work as well as for weekend jaunts .
wsj21b/22140017.gz: Pay raises of 60 % over the past three years have given many South Koreans the money to enjoy the things they were supplying the rest of the world .
wsj21b/22140018.gz: The success of newcomer SsangYong Motor shows the strength of the auto market and its growing diversity .
wsj21b/22140020.gz: SsangYong began making variations of the Jeep \@-\@ like &quot; Korando &quot; vehicle .
wsj21b/22140022.gz: The most popular style is the stretched &quot; Family , &quot; which resembles a Ford Bronco or Chevy Blazer .
wsj21b/22140023.gz: The four \@-\@ wheel \@-\@ drive vehicles start at $ 15,000 ; a Family can cost over $ 25,000 .
wsj21b/22140024.gz: SsangYong , which has only about 3 % of the domestic market , will sell about 18,000 of its models this year , twice as many as last year .
wsj21b/22140025.gz: It sees sales rising 45 % to 26,000 units next year .
wsj21b/22140026.gz: The company plans to expand plant capacity 50 % by 1991 .
wsj21b/22140027.gz: By then it also hopes to begin producing a passenger car based on the Volvo 240 and selling for about $ 20,000 .
wsj21b/22140028.gz: Hyundai and Daewoo seem unconcerned about the SsangYong threat , but Kia , the scrappy No.3 auto maker , is selling four \@-\@ wheel \@-\@ drive vehicles through its Asia unit .
wsj21b/22140029.gz: It plans to sell 1,700 units in 1989 .
wsj21b/22140030.gz: Kia , the only Korean car maker that has seen its overseas sales grow in 1989 , aims at Korea &apos;s common man .
wsj21b/22140031.gz: Its advantage has been the peppy little Pride , sold as the Ford Festiva in the U.S .
wsj21b/22140033.gz: Along with two larger models , the company claims 18 % of the domestic market .
wsj21b/22140034.gz: Ford Motor Co. and Japan &apos;s Mazda Motor Corp. have equity interests in Kia .
wsj21b/22140036.gz: Loans for as long as five years make the cars very accessible , with monthly payments as low as 80,000 won , or $ 120 .
wsj21b/22140037.gz: Daewoo Motor , a 50 \@-\@ 50 joint venture with General Motors Corp. and the Daewoo Group conglomerate , is the only auto maker that appears to be hurting .
wsj21b/22140038.gz: Shipments of its Lemans to GM &apos;s Pontiac division are off about 65 % from a year ago , versus a 44 % decline for Hyundai and an 18 % increase for Kia .
wsj21b/22140039.gz: Moreover , Daewoo &apos;s domestic sales have grown half as fast as sales of its rivals .
wsj21b/22140040.gz: The big problem for Daewoo , which holds about 21 % of the market , is the long series of labor disruptions it suffered this year .
wsj21b/22140041.gz: But Daewoo is expanding too .
wsj21b/22140042.gz: In fact , a sister company , Daewoo Shipbuilding and Heavy Machinery , plans to build 240,000 minicars by the mid \@-\@ 1990s .
wsj21b/22140043.gz: Hyundai , the Korean market leader with a 58 % share , also plans to jump into minicars at the same time .
wsj21b/22140044.gz: It has a similar project for 200,000 cars a year .
wsj21b/22140045.gz: Kia is reportedly also considering such a plan .
wsj21b/22140046.gz: Even giant Samsung Group is rumored in the Korean press to be considering getting into the auto \@-\@ making business ; a company spokesman had no comment .
wsj21b/22141001.gz: Robert P. Bulseco , 44 years old , was named president and chief administrative officer of this regional commercial bank .
wsj21b/22141002.gz: Both posts had been vacant .
wsj21b/22141003.gz: Robert Robie , 51 , was named to the new positions of vice chairman and chief credit officer .
wsj21b/22142001.gz: Many skittish mutual fund investors picked up the phone yesterday , but decided not to cash in their chips after all .
wsj21b/22142002.gz: As the stock market bounced back , withdrawals of money from stock funds amounted to a mere trickle compared with Black Monday , when investors dumped $ 2.3 billion , or about 2 % of stock \@-\@ fund assets .
wsj21b/22142004.gz: Net outflows from Fidelity &apos;s stock funds stood at less than $ 300 million , or below 15 % of the $ 2 billion cash position of the firm &apos;s stock portfolios .
wsj21b/22142005.gz: Much of the money was switched into the firm &apos;s money market funds .
wsj21b/22142007.gz: Other mutual fund companies reported even lighter withdrawal requests .
wsj21b/22142008.gz: And some investors at Fidelity and elsewhere even began buying stock funds during the day .
wsj21b/22142009.gz: &quot; Two years ago , there was a lot of redemption activity and trouble with people getting through on the phone , &quot; said Kathryn McGrath , head of the investment management division of the Securities and Exchange Commission .
wsj21b/22142010.gz: This time , &quot; We don &apos;t have that at all . &quot;
wsj21b/22142011.gz: Of course , the relative calm could be jolted if the market plunges again .
wsj21b/22142012.gz: And any strong surge in redemptions could force some funds to dump stocks to raise cash , as some did during Black Monday .
wsj21b/22142013.gz: But funds generally are better prepared this time around .
wsj21b/22142014.gz: As a group , their cash position of 10.2 % of assets in August -- the latest figure available -- is 14 % higher than two years earlier .
wsj21b/22142015.gz: Many fund managers have boosted their cash levels in recent weeks .
wsj21b/22142016.gz: The biggest flurry of investor activity came early in the day .
wsj21b/22142017.gz: Vanguard Group Inc. saw heavy exchanges from stock funds into money market funds after the telephone lines opened at 8 : 30 a.m .
wsj21b/22142018.gz: &quot; In the first hour , the real nervous folks came along , &quot; a spokesman said .
wsj21b/22142019.gz: &quot; But the horrendous pace of call volume in the first half \@-\@ hour slowed considerably . &quot;
wsj21b/22142020.gz: At Scudder , Stevens &amp; Clark Inc . , phone calls came in at 40 % more than the normal pace through early afternoon .
wsj21b/22142021.gz: Most of that increase came in the first hour after the phone lines opened at 8 a.m .
wsj21b/22142022.gz: As stocks rose , in fact , some investors changed course and reversed their sell orders .
wsj21b/22142023.gz: Many funds allow investors to void orders before the close of trading .
wsj21b/22142025.gz: Because mutual fund trades don &apos;t take effect until the market close -- in this case , at 4 p.m . -- these shareholders effectively stayed put .
wsj21b/22142026.gz: At Fidelity &apos;s office in downtown Boston , Gerald Sherman walked in shortly after 7 : 30 a.m. and placed an order to switch his retirement accounts out of three stock funds and into a money market fund .
wsj21b/22142028.gz: &quot; It &apos;s a nice feeling to know that things stabilized , &quot; said Mr. Sherman , the 51 \@-\@ year \@-\@ old co \@-\@ owner of a discount department store .
wsj21b/22142030.gz: Shareholders have been steadily bailing out of several big junk funds the past several weeks as the $ 200 billion market was jolted by a cash crunch at Campeau Corp. and steadily declining prices .
wsj21b/22142031.gz: Much of the money has been switched into money market funds , fund executives say .
wsj21b/22142032.gz: Instead of selling bonds to meet redemptions , however , some funds have borrowed from banks to meet withdrawal requests .
wsj21b/22142033.gz: This avoids knocking down prices further .
wsj21b/22142034.gz: The $ 1.1 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 .
wsj21b/22142035.gz: That way , Mr. Collins says , &quot; We didn &apos;t have to sell securities in a sloppy market . &quot;
wsj21b/22142036.gz: When the market stabilized , he added , the firm sold the bonds and quickly paid the loans back .
wsj21b/22142037.gz: Tom Herman contributed to this article .
wsj21b/22143001.gz: Amcore Financial Inc. said it agreed to acquire Central of Illinois Inc. in a stock swap .
wsj21b/22143002.gz: Shareholders of Central , a bank holding company based in Sterling , Ill . , will receive Amcore stock equal to 10 times Central &apos;s 1989 earnings , Amcore said .
wsj21b/22143003.gz: For the first nine months of 1989 , Central earned $ 2 million .
wsj21b/22143004.gz: Amcore , also a bank holding company , has assets of $ 1.06 billion .
wsj21b/22143005.gz: Central &apos;s assets are $ 240 million .
wsj21b/22144001.gz: ( During its centennial year , The Wall Street Journal will report events of the past century that stand as milestones of American business history . )
wsj21b/22144002.gz: SOFT CONTACT LENSES WON federal blessing on March 18 , 1971 , and quickly became eye openers for their makers .
wsj21b/22144003.gz: The Food and Drug Administration that day said Bausch &amp; Lomb could start selling them in the U.S .
wsj21b/22144004.gz: The cornflake \@-\@ size product was more comfortable and less prone to falling out than hard contact lenses , which had been around since 1939 .
wsj21b/22144005.gz: Bausch &amp; Lomb sold the softies under a sublicense from National Patent Development , which had gained the rights from the Czechoslovakia Academy of Sciences .
wsj21b/22144006.gz: Otto Wichterle , a Czech , invented them in 1962 .
wsj21b/22144007.gz: The plastic lens wraps itself over the cornea , absorbing eye moisture while permitting oxygen to pass through .
wsj21b/22144008.gz: But the new lens became the eye of a storm .
wsj21b/22144009.gz: In September 1971 California officials seized &quot; bootlegged &quot; lenses -- made by unlicensed companies -- after some showed traces of bacteria .
wsj21b/22144010.gz: In October doctors were debating the product &apos;s safety , some claiming it caused infections .
wsj21b/22144011.gz: And there were Senate hearings on the questions in July 1972 .
wsj21b/22144012.gz: The product overcame the bad publicity and kept evolving .
wsj21b/22144013.gz: The early soft lenses , which cost $ 300 a set , were expected to last for a year .
wsj21b/22144015.gz: Eighteen months ago a &quot; disposable &quot; seven \@-\@ day model bowed ; a year &apos;s supply costs about $ 500 .
wsj21b/22144016.gz: Last month the FDA and Contact Lens Institute cautioned users that serious eye infections could result from wearing lenses more than seven days at a stretch .
wsj21b/22144017.gz: Today 20 million of the 25 million Americans using contact lenses are using the soft type .
wsj21b/22144018.gz: Including the accesory eye care products , contacts account for $ 2 billion in annual retail sales .
wsj21b/22144019.gz: Although Bausch remains the leader among the six majors , Johnson &amp; Johnson , with its new disposables , is coming on fast .
wsj21b/22145001.gz: The roller \@-\@ coaster stock market is making life tougher for small companies trying to raise money .
wsj21b/22145002.gz: In the wake of Friday &apos;s plunge and yesterday &apos;s rebound , some companies are already postponing deals , and others wish they could .
wsj21b/22145003.gz: As in other jittery times , many small businesses expect a particularly rough time raising funds as investors shun risky deals , seeking safety in bigger companies .
wsj21b/22145004.gz: Even if stock prices fully recover from Friday &apos;s sharp decline , the unsettled conditions will frighten many investors .
wsj21b/22145005.gz: &quot; The implication of an unsettled situation is that the thing could drop dramatically , &quot; says Henry Linsert Jr . , chairman of Martek Corp. , a four \@-\@ year \@-\@ old biotechnology company that is planning a private placement of stock .
wsj21b/22145007.gz: Earlier this month , Staples Inc . , a Newton , Mass . , office \@-\@ supplies discounter , said it would accelerate expansion plans nationwide and offer more of its stock to the public .
wsj21b/22145008.gz: At the time , its shares were selling above their initial offering price of $ 19 , and bankers believed Staples would sell new stock without a hitch .
wsj21b/22145009.gz: But with the company &apos;s shares standing at $ 15 yesterday , a new offering seems unlikely , company officials say .
wsj21b/22145010.gz: Business , however , continues to be &quot; robust , &quot; and the stock market hasn &apos;t affected the concern &apos;s expansion plans , says Todd Krasnow , a senior executive .
wsj21b/22145011.gz: Other companies figure they can &apos;t avoid the market .
wsj21b/22145012.gz: &quot; We have capital requirements , &quot; says Mr. Linsert , &quot; so we have to go ahead &quot; with a planned $ 1.5 billion private placement .
wsj21b/22145013.gz: Unless the market goes right back up , he says , &quot; it may take us six to nine months to find the money , instead of three . &quot;
wsj21b/22145014.gz: And the Columbia , Md . , company may have to settle for a lower price , he adds .
wsj21b/22145015.gz: Life is particularly nerve \@-\@ racking for companies that had planned to go public this week .
wsj21b/22145016.gz: Hand \@-\@ holding is becoming an investment \@-\@ banking job requirement .
wsj21b/22145017.gz: Robertson , Stephens &amp; Co . , a San Francisco investment banking concern , has a client that looked forward to making its initial public offering yesterday .
wsj21b/22145019.gz: As the market dropped Friday , Robertson Stephens slashed the value of the offering by 7 % .
wsj21b/22145020.gz: Yesterday , when similar securities rebounded , it bumped the valuation up again .
wsj21b/22145021.gz: As of late yesterday , the IPO was still on .
wsj21b/22145022.gz: For many , the situation is especially discouraging because the market for IPOs was showing signs of strengthening after several years of weakness .
wsj21b/22145023.gz: &quot; We were just beginning to look at the increase in IPOs , seeing the light at the end of the tunnel , &quot; says Frank Kline Jr . , partner in Lambda Funds , a Beverly Hills , Calif . , venture capital concern .
wsj21b/22145024.gz: &quot; But the tunnel &apos;s just gotten longer . &quot;
wsj21b/22145025.gz: Companies planning to go public &quot; are definitely taking a second look , &quot; says Allen Hadhazy , senior analyst at the Institute for Econometric Research , Fort Lauderdale , Fla . , which publishes the New Issues newsletter on IPOs .
wsj21b/22145026.gz: He calculates that the recent market slide translated into a 5 % to 7 % reduction in IPO proceeds to companies .
wsj21b/22145027.gz: Many companies are hesitating .
wsj21b/22145028.gz: Exabyte Corp. had been planning to sell 10 % of its stock this week in an IPO that would raise up to $ 28.5 million .
wsj21b/22145029.gz: But now , Peter Behrendt , president , says , &quot; We &apos;re making decisions on a day \@-\@ to \@-\@ day basis . &quot;
wsj21b/22145030.gz: Debt \@-\@ free and profitable , the Boulder , Colo . , computer \@-\@ products concern could borrow funds if it decides against an IPO now , he says .
wsj21b/22145031.gz: KnowledgeWare Inc . , an Atlanta computer \@-\@ software concern , says it is still planning to go ahead with its IPO this week or next -- unless conditions change .
wsj21b/22145033.gz: Delayed financings also would affect the operations of many companies .
wsj21b/22145034.gz: Sierra Tucson Cos . , a Tucson , Ariz . , operator of addiction \@-\@ treatment centers , has a planned doubling of capacity riding on an IPO scheduled for next week .
wsj21b/22145035.gz: William O &apos;Donnell , president , says he still thinks the IPO will succeed .
wsj21b/22145036.gz: If it doesn &apos;t , he says , the company would have to change its expansion timetable .
wsj21b/22145037.gz: But the market turmoil could be partially beneficial for some small businesses .
wsj21b/22145038.gz: In a sagging market , the Federal Reserve System &quot; might flood the market with funds , and that should bring interest rates down , &quot; says Leonard T. Anctil , vice president of the Bank of New England , Boston .
wsj21b/22145039.gz: James G. Zafris , president of Danvers Savings Bank , Danvers , Mass . , says the market turmoil &quot; is an absolute non \@-\@ event for small business . &quot;
wsj21b/22145041.gz: Mr. Zafris thinks rates are heading down , helping small companies .
wsj21b/22145042.gz: Peter Drake , biotechnology analyst for Vector Securities International , Chicago , thinks market uncertainty may encourage small companies to form more strategic alliances with big corporations .
wsj21b/22145043.gz: Partly because the 1987 market crash made it harder for them to find financing , many high \@-\@ technology concerns have made such alliances recently .
wsj21b/22145044.gz: Some even see a silver lining in the dark clouds .
wsj21b/22145045.gz: Alan Wells , president of Bollinger , Wells , Lett &amp; Co . , a New York merger specialist , thinks panicky investors may lose their enthusiasm for leveraged buy \@-\@ out and giant takeover deals .
wsj21b/22145046.gz: Instead , they could turn to investing in smaller deals involving smaller companies , he says .
wsj21b/22145048.gz: This will add to the appeal of small business , he says , where investors often have a degree of influence .
wsj21b/22146001.gz: 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 can &apos;t renegotiate its borrowings .
wsj21b/22146006.gz: The company said it had a net loss in its fourth quarter ended June 30 of $ 36.2 million , or $ 9.33 a share , on revenue of $ 13.1 million .
wsj21b/22146007.gz: A year earlier , the company had a loss of $ 10.8 million , or $ 3.04 a share , on revenue of $ 10.8 million .
wsj21b/22146008.gz: For the year , it had a net loss of $ 62 million , or $ 15.97 a share , on revenue of $ 44.3 million .
wsj21b/22146009.gz: In the previous year , it had a loss of $ 22.5 million , or $ 6.52 a share , on revenue of $ 41.1 million .
wsj21b/22146010.gz: Although it is having serious cash \@-\@ flow problems , Bay said the fair \@-\@ market value of its holdings , minus debt , was equal to $ 6.02 a share at June 30 based on a recent appraisal .
wsj21b/22146011.gz: Book value per share , which is based on investments at cost , was a negative $ 6.69 a share .
wsj21b/22146012.gz: A year earlier , fair \@-\@ market value per share was $ 26.02 and book value was $ 9.43 a share .
wsj21b/22147002.gz: c \@-\@ Yields , adjusted for constant maturity .
wsj21b/22148001.gz: TRW Inc. reported a 12 % decline in third \@-\@ quarter net income , but the company said that excluding unusual gains in both quarters , operating profit rose 16 % .
wsj21b/22148002.gz: The electronics , automotive and aerospace concern said third \@-\@ quarter net was $ 60 million , or 98 cents a share , down from $ 68 million , or $ 1.11 a share , a year earlier .
wsj21b/22148003.gz: Share earnings are reported on a fully diluted basis , by company tradition .
wsj21b/22148004.gz: Results for the 1988 quarter included a gain of $ 1.05 a share from sale of the Reda Pump and Oilwell Cable units , partly offset by a charge of 69 cents a share for recall of faulty truck steering systems .
wsj21c/22148005.gz: The latest quarter included a gain of 11 cents a share as a partial reversal of the recall charge , because the reserve established last year exceeded the actual recall costs .
wsj21c/22148006.gz: Sales for the quarter rose 8.3 % to $ 1.79 billion , from $ 1.65 billion , with all three major product groups reporting gains .
wsj21c/22148008.gz: Automotive sales jumped 16 % to $ 791 million , mainly because of higher sales of air bags and other passenger restraint systems , TRW said .
wsj21c/22148009.gz: The group had an operating profit of $ 65 million , against a loss of $ 13 million a year earlier .
wsj21c/22148010.gz: However , excluding the year \@-\@ earlier charge for recall of steering gear , operating profit in the latest quarter declined 14 % , reflecting higher start \@-\@ up and product development expenses in passenger \@-\@ restraint systems .
wsj21c/22148011.gz: Materials and production costs also rose , TRW said .
wsj21c/22148013.gz: An acquisition accounted for half the sales rise , TRW said .
wsj21c/22148014.gz: Operating profit rose threefold to $ 18 million , from $ 6 million .
wsj21c/22148015.gz: For the nine months , TRW &apos;s net was $ 199 million , or $ 3.22 a share , down 3 % from $ 205 million , or $ 3.33 a share , a year earlier .
wsj21c/22148016.gz: Sales rose 2.9 % to $ 5.42 billion , from $ 5.27 billion .
wsj21c/22149001.gz: a tragicomic monologue by an idealistic , not unheroic , though sadly self \@-\@ deceived English butler in his sixties -- proceeds as if the realistic English novel of manners , like Britannia herself , still ruled the waves .
wsj21c/22149003.gz: It implies that the British Empire was rooted in its subjects &apos; minds , manners and morals , and argues , tacitly , that its self \@-\@ destructive flaws were embodied in the defensive snobbery , willful blindness , role \@-\@ playing and especially the locutions of its domestic servants .
wsj21c/22149004.gz: As the narrator Stevens , the solitary butler of Darlington Hall , mulls over such hallowed terms as &quot; greatness , &quot; &quot; dignity , &quot; &quot; service &quot; and &quot; loyalty , &quot; we see how pious cant subverts the soul .
wsj21c/22149005.gz: Stevens &apos;s dutiful conflation of the public and private realms -- like his beloved master &apos;s -- destroys all it was designed to preserve .
wsj21c/22149006.gz: Such armor crushes the soldier .
wsj21c/22149007.gz: The mask cuts to the quick .
wsj21c/22149008.gz: It &apos;s 1956 , the year the Suez crisis marked the final end of Empire .
wsj21c/22149012.gz: It is the very lack of obvious drama or spectacle that sets the beauty of our land apart .
wsj21c/22149013.gz: What is pertinent is the calmness of that beauty , its sense of restraint .
wsj21c/22149014.gz: It is as though the land knows of its own beauty , of its own greatness , and feels no need to shout it .
wsj21c/22149016.gz: An effusive landscape ?
wsj21c/22149017.gz: An ill \@-\@ mannered mountain ?
wsj21c/22149020.gz: Such dignity &quot; has to do crucially with a butler &apos;s ability not to abandon the professional being he inhabits . &quot;
wsj21c/22149025.gz: You see , I know my father would have wished me to carry on just now . &quot;
wsj21c/22149026.gz: It is this kind of dignity and restraint that allows Stevens to declare : &quot; For all its sad associations , whenever I recall that evening today , I find I do so with a large sense of triumph . &quot;
wsj21c/22149027.gz: We note the imperial public word used to deny private rage and sorrow .
wsj21c/22149029.gz: Mr. Ishiguro &apos;s ability to create a fallible narrative voice that permits him to explore such intertwining domestic , cultural and political themes was abundantly clear in his previous novel , &quot; An Artist of the Floating World , &quot; set in Japan after the war .
wsj21c/22149030.gz: Now shifting his scene from the country he left at five to the England he has lived in for nearly 30 years , he has fashioned a novel in the mode of Henry James and E.M . Forster .
wsj21c/22149032.gz: `This employer embodies all that I find noble and admirable .
wsj21c/22149033.gz: I will hereafter devote myself to serving him .
wsj21c/22149035.gz: In the end , after meeting with the former housekeeper , Stevens sits by the seashore at dusk , thinking of her and of his employer , and declares &quot; I trusted .
wsj21c/22149037.gz: I can &apos;t even say I made my own mistakes .
wsj21c/22149038.gz: Really -- one has to ask oneself -- what dignity is there in that ? &quot;
wsj21c/22149040.gz: What is greatness ?
wsj21c/22149041.gz: What is dignity ?
wsj21c/22149042.gz: We understand such rueful wisdom must be retrospective : The owl of Minerva only spreads her wings at dusk .
wsj21c/22149043.gz: But as &quot; The Remains of the Day &quot; so eloquently demonstrates with quiet virtuosity , such wisdom can be movingly embodied in art .
wsj21c/22149044.gz: Mr. Locke teaches English and comparative literature at Columbia University .
wsj21c/22150001.gz: UGI Corp. said its AmeriGas subsidiary completed the previously announced sale of its air separation plant and related assets in Waukesha , Wis . , to AGA Gas Inc . , Cleveland .
wsj21c/22150002.gz: The price wasn &apos;t disclosed .
wsj21c/22150003.gz: The transaction is part of UGI &apos;s continuing program to shed AmeriGas &apos;s industrial gas interests and expand the subsidiary &apos;s propane business .
wsj21c/22150004.gz: Since June , AmeriGas has netted more than $ 100 million from industrial gas divestitures and reinvested more than $ 50 million to acquire three propane distributors .
wsj21c/22150005.gz: UGI is a gas and electric utility and distributes propane nationally through its AmeriGas subsidiary .
wsj21c/22151001.gz: Stanislav Ovcharenko , who represents the Soviet airline Aeroflot here , has some visions that are wild even by the current standards of perestroika .
wsj21c/22151002.gz: In his office overlooking the runway of Shannon Airport , Mr. Ovcharenko enthusiastically throws out what he calls &quot; just ideas &quot; :
wsj21c/22151003.gz: First , he suggests , GPA Group Ltd . , the international aircraft leasing company based in Ireland , could lease some of its Boeing jetliners to the Soviet airline .
wsj21c/22151004.gz: Then Aer Lingus , the Irish flag carrier , could teach Aeroflot pilots to fly the Boeings , and the fleet could be based here at Shannon Airport .
wsj21c/22151005.gz: That &apos;s not all , he says .
wsj21c/22151006.gz: Aer Rianta , the Irish airport authority , could build a cargo terminal in the Soviet Union .
wsj21c/22151007.gz: Aeroflot could lease some of its cargo planes to Aer Lingus , through GPA , for a joint \@-\@ venture cargo airline .
wsj21c/22151008.gz: And then there is his notion of an Irish \@-\@ Soviet charter airline to ferry Armenians to Los Angeles via Shannon .
wsj21c/22151009.gz: Have the freedoms of glasnost gone to Mr. Ovcharenko &apos;s head ?
wsj21c/22151010.gz: Hardly .
wsj21c/22151011.gz: The Irish \@-\@ Soviet aviation connection is alive and well here at Shannon Airport .
wsj21c/22151012.gz: GPA is indeed talking about leasing Western planes to Aeroflot and even about buying Soviet \@-\@ built Tupolev 204s .
wsj21c/22151013.gz: Aer Lingus is in discussions with the Soviet carrier about a cargo venture and other possibilities .
wsj21c/22151014.gz: Aer Rianta already has so many ventures with Aeroflot that its chief executive is studying Russian .
wsj21c/22151016.gz: And as Aeroflot struggles to boost its service standards , upgrade its fleet and pursue commercial opportunities , the Irish aviation industry seems poised to benefit .
wsj21c/22151017.gz: &quot; Irish and Soviet people are similar , &quot; says Mr. Ovcharenko .
wsj21c/22151018.gz: &quot; They look the same .
wsj21c/22151019.gz: They &apos;re very friendly . &quot;
wsj21c/22151020.gz: Moreover , he says , Irish companies are small but spunky .
wsj21c/22151021.gz: &quot; We have to study their experience very well , &quot; he says .
wsj21c/22151022.gz: &quot; We must find any way to get business . &quot;
wsj21c/22151023.gz: The two groups have been working together since the late 1970s , long before Soviet joint ventures were the rage in the West .
wsj21c/22151024.gz: Aeroflot carried about 125 million passengers last year , and Shannon Airport , the airline &apos;s largest transit airport outside the Soviet Union , saw 1,400 Aeroflot flights and 250,000 passengers pass through .
wsj21c/22151025.gz: An apartment complex down the road is the crew \@-\@ rest and staging area for more than 130 Aeroflot pilots and flight attendants .
wsj21c/22151026.gz: The airport &apos;s biggest supplier of aircraft fuel is the Soviet Union .
wsj21c/22151027.gz: Tankers from the Latvian port of Ventspils each year unload 25 million gallons of fuel into a special tank farm at the airport .
wsj21c/22151028.gz: What Aeroflot doesn &apos;t pour into its own gas \@-\@ guzzling Ilyushins is bartered to the airport authority , which resells it to 11 Western carriers including Air France , Trans World Airlines and Pakistan International Airlines .
wsj21c/22151029.gz: Aeroflot thus pays its landing fees , ground \@-\@ handling and catering bills with fuel , preserving its hard currency .
wsj21c/22151030.gz: That isn &apos;t all .
wsj21c/22151031.gz: Last year , the Irish airport authority , in a joint venture with Aeroflot , opened four hard \@-\@ currency duty \@-\@ free shops at Moscow &apos;s Sheremetyevo Airport .
wsj21c/22151032.gz: Aer Rianta now manages duty \@-\@ free sales on all Aeroflot international flights out of Moscow .
wsj21c/22151033.gz: Duty \@-\@ free shops in Leningrad &apos;s Pulkova Airport opened in July , and hard \@-\@ currency shops in Leningrad hotels and on the Soviet \@-\@ Finnish frontier are coming soon .
wsj21c/22151034.gz: Aer Rianta is talking about similar joint ventures in Tashkent and in Sochi , a Black Sea resort , and even has a computer \@-\@ assembly project cooking with the Georgian city of Tbilisi .
wsj21c/22151035.gz: Aeroflot &apos;s international fleet of 285 planes is being repainted and refurbished at Shannon Airport .
wsj21c/22151036.gz: Thanks to a new air \@-\@ traffic agreement and the ability of Irish travel agents to issue Aeroflot tickets , tourists here are taking advantage of Aeroflot &apos;s reasonable prices to board flights in Shannon for holidays in Havana , Kingston and Mexico City .
wsj21c/22151037.gz: The round \@-\@ trip fare to Havana is 410 Irish punts ( $ 578 ) .
wsj21c/22151038.gz: Jamaica costs 504 punts .
wsj21c/22151039.gz: A formal blessing of sorts was bestowed on this friendship in April when Mikhail and Raisa Gorbachev stopped here for talks with Irish Prime Minister Charles Haughey .
wsj21c/22151040.gz: New trade accords were signed .
wsj21c/22151041.gz: It all started with geography .
wsj21c/22151042.gz: When it opened in 1939 , Shannon was the first landfall in Europe for thirsty airplanes flying from North America .
wsj21c/22151043.gz: Advances in aircraft fuel efficiency over the years made a Shannon stop unnecessary for most Western air fleets , but Aeroflot still flies inefficient Ilyushins that can &apos;t make it from Moscow to Managua on one hop .
wsj21c/22151044.gz: As a result , Ireland didn &apos;t spurn the Soviets after they shot down a Korean Air Lines jetliner over the Sea of Japan in 1983 , though it suspended direct Moscow \@-\@ Shannon flights for two months .
wsj21c/22151045.gz: In fact , Aer Lingus started ferrying Russians from Shannon to New York when Washington stripped Aeroflot of its U.S. landing rights .
wsj21c/22151046.gz: Today , Aer Rianta is making a heap of money from its Soviet friendship .
wsj21c/22151047.gz: And , with those contacts in place , it could be relatively simple to add Aer Lingus and GPA to the team .
wsj21c/22151048.gz: Then , perhaps , Mr. Ovcharenko &apos;s ideas wouldn &apos;t sound like so much blarney .
wsj21c/22152001.gz: Britain &apos;s industrial production rose 1.5 % in August from July and was up 0.9 % from August 1988 , according to provisional data from the Central Statistical Office .
wsj21c/22152002.gz: Output in the energy sector , which can vary greatly with swings in the oil market , rose 3.8 % in August from May but was down 7.1 % from a year earlier .
wsj21c/22152003.gz: The latest figures compare with July &apos;s 4.5 % month \@-\@ to \@-\@ month rise and 11.3 % year \@-\@ to \@-\@ year fall .
wsj21c/22153001.gz: When Nucor Corp. begins shipping steel from the world &apos;s first thin \@-\@ slab plant this month , it will begin testing the competitive mettle of its giant competitors .
wsj21c/22153002.gz: The new technology , which creates a very thin piece of steel , radically reduces the costs of making flat \@-\@ rolled sheets .
wsj21c/22153003.gz: An ebullient Kenneth Iverson , Nucor &apos;s chairman , says the company &apos;s plant eventually will make a ton of steel in 1.5 man hours , compared with four to six man hours at a conventional mill .
wsj21c/22153004.gz: &quot; We &apos;ve had the Russians and Chinese , and people from India visiting us , &quot; Mr. Iverson beams .
wsj21c/22153005.gz: &quot; Everyone in the world is watching us very closely . &quot;
wsj21c/22153006.gz: Especially his neighbors , the major U.S . steelmakers .
wsj21c/22153007.gz: Already , USX Corp. and Armco Inc. are studying Nucor &apos;s technology to see if they can adopt it .
wsj21c/22153008.gz: Says the chief executive officer of a major Midwest steel company : &quot; It &apos;s damn worrisome . &quot;
wsj21c/22153010.gz: New , efficient and sophisticated processes make it easier for smaller , less cash \@-\@ rich companies to make steel at a fraction of what Big Steel paid decades ago .
wsj21c/22153011.gz: It also enables minimills finally to get a toehold in the flat \@-\@ rolled steel market -- the major steelmakers &apos; largest , most prized , and until now , untouchable , market .
wsj21c/22153012.gz: But such thin \@-\@ slab technology is only the beginning .
wsj21c/22153013.gz: Eager engineers espouse direct \@-\@ steelmaking and direct casting , which by the end of the 1990s will enable production without coke ovens and blast furnaces .
wsj21c/22153014.gz: Those massive structures , while posing cost and environmental headaches , effectively locked out all but deep \@-\@ pocketed giants from steelmaking .
wsj21c/22153015.gz: &quot; There &apos;s a revolution ahead of us that will ultimately change the way we market and distribute steel , &quot; says William Dennis , vice president , manufacturing and technology , for the American Iron Ore and Steel Institute .
wsj21c/22153016.gz: It isn &apos;t that major steelmakers have blithely ignored high technology .
wsj21c/22153017.gz: In fact , they &apos;ve spent billions of dollars to boost the percentage of continously cast steel to 60.9 % in 1988 , from 39.6 % five years before .
wsj21c/22153019.gz: But that won &apos;t suffice .
wsj21c/22153020.gz: &quot; It &apos;s no longer enough to beat the guy down the street .
wsj21c/22153021.gz: You have to beat everyone around the world , &quot; says Mr. Dennis .
wsj21c/22153022.gz: He wants to see steelmakers more involved in computers and artificial intelligence .
wsj21c/22153023.gz: The problem : They &apos;re saddled with huge plants that require costly maintenance .
wsj21c/22153024.gz: And try plying new dollars free in a market that is softening , hurt by a strong dollar and concerned about overcapacity -- the industry &apos;s Darth Vadar .
wsj21c/22153025.gz: &quot; The technology revolution is going to be very threatening to established producers , &quot; says Peter Marcus , an analyst with PaineWebber Inc .
wsj21c/22153026.gz: &quot; They &apos;ve got too much invested in the old stuff and they can &apos;t get their workers to be flexible . &quot;
wsj21c/22153027.gz: No one expects minimills to eclipse major integrated steelmakers , who remain the undisputed kings of highest \@-\@ quality steel used for autos and refrigerators .
wsj21c/22153030.gz: Moreover , the process isn &apos;t without its headaches .
wsj21c/22153031.gz: Because all operations are connected , one equipment failure forces a complete plant shutdown .
wsj21c/22153032.gz: On some days , the Nucor plant doesn &apos;t produce anything .
wsj21c/22153033.gz: &quot; At this point , the minimill capacity won &apos;t make a great dent in the integrated market , but it does challenge them to develop new markets , &quot; says James McCall , vice president , materials , at Battelle , a technology and management \@-\@ research giant based in Columbus , Ohio .
wsj21c/22153034.gz: Indeed , with demand for steel not growing fast enough to absorb capacity , steelmakers will have to change the way they do business .
wsj21c/22153035.gz: In the past , says Armco &apos;s chief economist John Corey , steelmakers made a product and set it out on the loading dock .
wsj21c/22153037.gz: Armco &apos;s sales representatives visit the General Motors Corp. &apos; s Fairfax assembly plant in Kansas City , Mo . , two or three days a week .
wsj21c/22153038.gz: 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 15 minutes .
wsj21c/22153039.gz: Cementing such relationships with major clients -- car and appliance makers -- is a means of survival , especially when those key clients are relying on a smaller pool of producers and flirting with plastic and aluminum makers .
wsj21c/22153040.gz: For example , when Detroit began talking about plastic \@-\@ bodied 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 redesigning how a car door is assembled .
wsj21c/22153041.gz: But steelmakers must also find new markets .
wsj21c/22153042.gz: After letting aluminum \@-\@ makers take the recycling lead , a group of the nation &apos;s largest steelmakers started a recycling institute to promote steel cans to an environmentally conscious nation .
wsj21c/22153043.gz: Battelle &apos;s Mr. McCall thinks steelmakers should concentrate more on construction .
wsj21c/22153044.gz: Weirton Steel Corp. , Weirton , W. Va . , for example , is touting to homeowners fashionable steel doors , with leaded glass inserts , as a secure and energy \@-\@ efficient alternative to wooden or aluminum ones .
wsj21c/22153045.gz: Other steelmakers envision steel roofs covering suburbia .
wsj21c/22153046.gz: Still others are looking at overseas markets .
wsj21c/22153047.gz: USX is funneling drilling pipe to steel \@-\@ hungry Soviet Union .
wsj21c/22153048.gz: This year , the nation &apos;s largest steelmaker reactivated its overseas sales operation .
wsj21c/22153049.gz: Producers also are trying to differentiate by concentrating on higher \@-\@ profit output , such as coated and electrogalvanized products , which remain beyond the reach of minimills .
wsj21c/22153050.gz: Almost all capital \@-\@ improvement programs announced by major steelmakers within the past year involve building electrogalvanizing lines , used to produce steel for such products as household appliances and car doors .
wsj21c/22153051.gz: But unfortunately , that segment is much smaller than the bread \@-\@ and \@-\@ butter flat \@-\@ rolled steel .
wsj21c/22153053.gz: &quot; After a while , someone has to go over the side . &quot;
wsj21c/22153054.gz: Although he doesn &apos;t expect any bankruptcies , he does see more plants being sold or closed .
wsj21c/22153055.gz: Robert Crandall , with the Brookings Institute , agrees .
wsj21c/22153056.gz: &quot; Unless there is an enormous rate of economic growth or a further drop in the dollar , it &apos;s unlikely that consumption of U.S. produced steel will grow sufficiently to offset the growth of minimills . &quot;
wsj21c/22153058.gz: Japanese and European steelmakers , which have led the recent technology developments , are anxiously awaiting the lifting of trade restraints in 1992 .
wsj21c/22153059.gz: Moreover , the U.S. can expect more competition from low \@-\@ cost producing Pacific Rim and Latin American countries .
wsj21c/22153060.gz: A Taiwanese steelmaker recently announced plans to build a Nucor \@-\@ like plant .
wsj21c/22153061.gz: &quot; People think of the steel business as an old and mundane smokestack business , &quot; says Mr. Iverson .
wsj21c/22153062.gz: &quot; They &apos;re dead wrong . &quot;
wsj21c/22153063.gz: * USX , LTV , Bethlehem , Inland , Armco , National Steel
wsj21c/22153064.gz: * * Projected
wsj21c/22154001.gz: Polaroid Corp. &apos; s patent \@-\@ infringement damages case against Eastman Kodak Co . , one of the highest stakes corporate trials ever , is getting scant attention on Wall Street .
wsj21c/22154002.gz: After 78 days of mind \@-\@ numbing testimony in federal court in Boston , the trial is being all but ignored by analysts and patent attorneys .
wsj21c/22154003.gz: Most have read the pre \@-\@ trial documents , however , and estimate Kodak will be ordered to pay $ 1 billion to $ 1.5 billion for infringing on seven Polaroid patents .
wsj21c/22154004.gz: That may be the largest patent award ever , but it is well below the $ 12 billion Polaroid seeks .
wsj21c/22154005.gz: The highest patent damage award to date was in 1986 , when Smith International Inc. was ordered to pay $ 205 million to Baker Hughes Inc. for infringing on a patent on an oil drilling bit seal .
wsj21c/22154006.gz: The two companies later agreed to settle for $ 95 million .
wsj21c/22154007.gz: Few analysts think it is worth their time to slog through the Polaroid trial testimony .
wsj21c/22154008.gz: &quot; It &apos;s like panning for gold outside of Grand Central Station .
wsj21c/22154009.gz: You might find something , but the chances are low , &quot; said Michael Ellman , an analyst at Wertheim Schroder &amp; Co .
wsj21c/22154010.gz: And Eugene Glazer , an analyst at Dean Witter Reynolds Inc . , said : &quot; 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 &quot; by a lot .
wsj21c/22154011.gz: A 75 \@-\@ day trial in the early 1980s determined that Kodak , based in Rochester , N.Y . , infringed on patents of Polaroid , of Cambridge , Mass .
wsj21c/22154012.gz: The main issues remaining are how to calculate damages and whether the infringement was &quot; willful and deliberate . &quot;
wsj21c/22154013.gz: If so , the damages could be tripled .
wsj21c/22154014.gz: Two analysts who have read the transcripts , David Nelson of Shearson Lehman Hutton Inc. and Calvert D. Crary , a litigation analyst at Labe , Simpson &amp; Co . , think Judge A. David Mazzone will decide in Kodak &apos;s favor on the &quot; willful and deliberate &quot; issue .
wsj21c/22154015.gz: Mr. Crary said testimony by Kodak &apos;s patent counsel , Francis T. Carr of Kenyon &amp; Kenyon , showed that &quot; he worked with Kodak continuously from the outset of the project &quot; in an effort to avoid infringement .
wsj21c/22154016.gz: &quot; Carr told Kodak on many occasions to avoid various features because of Polaroid &apos;s patent positions , &quot; and Kodak followed his advice in every instance , Mr. Crary said .
wsj21c/22154017.gz: But Irving Kayton , a patent expert at George Mason University School of Law who is familiar with the case , said the fact that seven patents were infringed &quot; suggests that infringement was willful .
wsj21c/22154018.gz: It &apos;s difficult to be that consistently wrong . &quot;
wsj21c/22154020.gz: Polaroid claims it could have manufactured and sold all the instant cameras and film sold by Kodak if Kodak hadn &apos;t entered the market .
wsj21c/22154021.gz: Moreover , Polaroid contends it could have sold them at a higher price -- and thus made higher profits -- because it wouldn &apos;t have been forced to match Kodak &apos;s lower prices .
wsj21c/22154022.gz: Each side has called a Harvard Business School professor to testify on that issue .
wsj21c/22154023.gz: Kodak hired Robert Buzzell and Polaroid brought in Robert J. Dolan .
wsj21c/22154024.gz: &quot; There &apos;s nothing that says that people at Harvard Business school have to agree with each other , &quot; said Mr. Buzzell .
wsj21c/22154025.gz: Testimony is expected to continue until early December .
wsj21c/22154026.gz: A decision isn &apos;t expected until some time next year .
wsj21c/22155002.gz: The main reason was a delay in shipment of new high \@-\@ end disk drives , a business that accounts for some 10 % of IBM &apos;s $ 60 billion of annual revenue .
wsj21c/22155003.gz: IBM , which telegraphed 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 .
wsj21c/22155004.gz: In addition , IBM noted that the stronger dollar has cut the value of overseas revenue and earnings when they are translated into dollars .
wsj21c/22155005.gz: Earnings fell to $ 877 million , or $ 1.51 a share , somewhat below securities analysts &apos; revised expectations of around $ 1.60 a share .
wsj21c/22155007.gz: Revenue climbed 4.3 % to $ 14.31 billion from $ 13.71 billion .
wsj21c/22155008.gz: IBM , Armonk , N.Y . , remained upbeat .
wsj21c/22155009.gz: 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 .
wsj21c/22155010.gz: The company said in a statement that &quot; demand for IBM products and services continues to be good world \@-\@ wide .
wsj21c/22155011.gz: We do not see anything in the fundamentals of our business that would cause us to change our strategy of investing for profitable growth . &quot;
wsj21c/22155012.gz: Securities analysts , however , remained downbeat .
wsj21c/22155013.gz: &quot; I think 1990 will be another mediocre year , &quot; said Steve Milunovich of First Boston .
wsj21c/22155014.gz: Jay Stevens of Dean Witter actually cut his per \@-\@ share earnings estimate to $ 9 from $ 9.50 for 1989 and to $ 9.50 from $ 10.35 in 1990 because he decided sales would be even weaker than he had expected .
wsj21c/22155015.gz: Both estimates would mark declines from the 1988 net of $ 5.81 billion , or $ 9.80 a share , which itself was well below the record IBM set in 1984 .
wsj21c/22155016.gz: Mr. Stevens said he kept a &quot; buy / hold &quot; recommendation on the stock only because &quot; all the damage has been done . &quot;
wsj21c/22155018.gz: The stock closed yesterday at $ 103 a share , up just $ 1 in composite trading on the New York Stock Exchange as the market surged .
wsj21c/22155019.gz: Analysts worry that the disk \@-\@ drive and leasing problems will last at least through the first quarter .
wsj21c/22155021.gz: &quot; And the input I &apos;ve had from customers is that it still could be a while . &quot;
wsj21c/22155022.gz: On leasing , Bob Djurdjevic at Annex Research said he thinks IBM has hurt itself unnecessarily .
wsj21c/22155023.gz: He said IBM has priced its leases aggressively , thinking that would help win business .
wsj21c/22155024.gz: 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 .
wsj21c/22155025.gz: He said IBM has not only hurt its short \@-\@ term revenue outlook but has also been losing money on its leases .
wsj21c/22155026.gz: Bob Bardagy , executive vice president of marketing at Comdisco Inc . , a huge leasing firm , said : &quot; To put it mildly , IBM Credit has been doing some of the worst economic deals of any leasing company we have ever seen . &quot;
wsj21c/22155027.gz: IBM is expected to get a boost soon when it announces some new versions of its mainframes .
wsj21c/22155029.gz: IBM is gaining momentum in the personal \@-\@ computer market , and is expected to introduce some impressive workstations early next year .
wsj21c/22155030.gz: But it &apos;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 .
wsj21c/22155031.gz: The disk drives will doubtless sell well when they finally become available .
wsj21c/22155032.gz: But the AS / 400 , IBM &apos;s highly successful minicomputer line , is losing its momentum , and some analysts said sales could even decline in the fourth quarter .
wsj21c/22155033.gz: In addition , IBM &apos;s growth in software in the third quarter was just 8.8 % , well below historical levels even when adjusted to reflect last year &apos;s payment from Fujitsu and the stronger dollar .
wsj21c/22155034.gz: And expenses , up 7.9 % in the quarter , have stayed stubbornly high .
wsj21c/22155035.gz: In the nine months , IBM earned $ 3.17 billion , or $ 5.43 a share , down 8.4 % from the year \@-\@ earlier $ 3.46 billion , or $ 5.83 a share .
wsj21c/22155036.gz: Revenue increased 6.5 % to $ 42.25 billion from $ 39.68 billion .
wsj21c/22156002.gz: D. Wayne Calloway , also chief executive officer of the company , indicated that he expects analysts to raise their forecasts for 1989 after the company releases its earnings today .
wsj21c/22156003.gz: So far , analysts have said they are looking for $ 3.30 to $ 3.35 a share .
wsj21c/22156004.gz: After today &apos;s announcement , that range could increase to $ 3.35 to $ 3.40 a share .
wsj21c/22156005.gz: The official said he also would be comfortable with that new range .
wsj21c/22156006.gz: In 1988 , the soft \@-\@ drink giant earned $ 2.90 a share .
wsj21c/22156007.gz: Results for 1989 will include about 40 cents a share from the dilutive effects of snack \@-\@ food and bottling company acquisitions .
wsj21c/22156008.gz: In composite trading on the New York Stock Exchange , the company closed yesterday at $ 57.125 a share , up $ 3.125 .
wsj21c/22156009.gz: The company said third \@-\@ quarter sales are expected to increase 25 % from $ 3.12 billion of last year &apos;s third quarter .
wsj21c/22156011.gz: Mr. Calloway blamed the slower volume on rainier weather , a dearth of new products in the industry and -- to a much lesser extent -- pricing .
wsj21c/22156012.gz: PepsiCo said its soft \@-\@ drink prices were about 2 % higher in the quarter .
wsj21c/22156013.gz: Mr. Calloway also noted that soft \@-\@ drink volume rose a hefty 9 % in last year &apos;s third quarter , making the comparison more difficult .
wsj21c/22156014.gz: International soft \@-\@ drink volume was up about 6 % .
wsj21c/22156015.gz: Snack \@-\@ food tonnage increased a strong 7 % in the third quarter , while domestic profit increased in double digits , Mr. Calloway said .
wsj21c/22156016.gz: Excluding the British snack \@-\@ food business acquired in July , snack \@-\@ food international tonnage jumped 40 % , with sales strong in Spain , Mexico and Brazil .
wsj21c/22156017.gz: Total snack \@-\@ food profit rose 30 % .
wsj21c/22156018.gz: Led by Pizza Hut and Taco Bell , restaurant earnings increased about 25 % in the third quarter on a 22 % sales increase .
wsj21c/22156019.gz: Same \@-\@ store sales for Pizza Hut rose about 13 % , while Taco Bell &apos;s increased 22 % , as the chain continues to benefit from its price \@-\@ value strategy .
wsj21c/22156020.gz: Taco Bell has turned around declining customer counts by permanently lowering the price of its tacos .
wsj21c/22156021.gz: Same store \@-\@ sales for Kentucky Fried Chicken , which has struggled with increased competition in the fast \@-\@ food chicken market and a lack of new products , rose only 1 % .
wsj21c/22156022.gz: The operation , which has been slow to respond to consumers &apos; shifting tastes away from fried foods , has been developing a grilled \@-\@ chicken product that may be introduced nationally at the end of next year .
wsj21c/22156023.gz: The new product has performed well in a market test in Las Vegas , Nev . , Mr. Calloway said .
wsj21c/22156025.gz: But , &quot; You never can tell , &quot; he added , &quot; you have to take advantage of opportunities .
wsj21c/22157001.gz: President Bush chose Martin Allday , a longtime friend from Texas , to be chairman of the Federal Energy Regulatory Commission .
wsj21c/22157002.gz: Mr. Allday would succeed Martha Hesse , who is resigning .
wsj21c/22157003.gz: The White House said Ms. Hesse , a Chicago businesswoman who previously held posts at the Energy Department and FERC , is leaving to become a vice president of First Chicago Corp.
wsj21c/22157005.gz: He met Mr. Bush in the 1950s , when the president was a young oil man in Midland and Mr. Allday was a lawyer for an oil firm .
wsj21c/22157006.gz: The FERC is a five \@-\@ member commission that regulates billions of dollars of interstate wholesale energy transactions .
wsj21c/22157007.gz: Mr. Allday &apos;s appointment is subject to confirmation by the Senate .
wsj21c/22157008.gz: Administration officials said a date for Ms. Hesse &apos;s departure hasn &apos;t been set .
wsj21c/22158001.gz: CALIFORNIA REAL ESTATE INVESTMENT Corp. said its directors declared a dividend of five cents per Class A common stock payable Nov. 6 to stock of record Oct. 16 .
wsj21c/22158003.gz: The company said it hopes to resume its schedule of regular quarterly dividends at the end of this year .
wsj21c/22159001.gz: Hydro \@-\@ Quebec said it notified Central Maine Power Co. it will cancel a $ 4 billion contract to supply electricity to the Maine utility .
wsj21c/22159002.gz: The provincially owned utility said it is tearing up the deal because &quot; the contract &apos;s objectives can &apos;t be fulfilled . &quot;
wsj21c/22159003.gz: Hydro \@-\@ Quebec said Maine regulators &apos; 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 .
wsj21c/22159004.gz: &quot; It would now be physically impossible to begin deliveries in 1992 , &quot; a Hydro \@-\@ Quebec official said .
wsj21c/22159005.gz: The contract was to run from 1992 to 2020 .
wsj21c/22159007.gz: Hydro \@-\@ Quebec said Maine regulators &apos; refusal to approve the contract means Central Maine Power has lost its place in line .
wsj21c/22159008.gz: &quot; We won &apos;t sign any new contracts { with deliveries } beginning earlier than 2000 , &quot; the Hydro \@-\@ Quebec official said .
wsj21c/22159009.gz: He said Hydro \@-\@ Quebec already has some &quot; customers in mind &quot; for the power that was to be delivered to Maine .
wsj21c/22159010.gz: &quot; Nothing has happened since we signed the contract to undermine our conviction that Hydro \@-\@ Quebec was the lowest \@-\@ cost , most environmentally acceptable choice for meeting a part of our customers &apos; energy needs through the year 2020 , &quot; said Central Maine senior vice president Donald F. Kelly .
wsj21c/22160001.gz: CHICAGO - Options traders were among the big victims of Friday &apos;s plunging stock market , including one small firm that required an emergency $ 50 million bailout .
wsj21c/22160002.gz: While Monday &apos;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 .
wsj21c/22160003.gz: 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 .
wsj21c/22160004.gz: Thus , options traders Friday were stuck with losses that also were several times larger than those suffered by many stock traders in New York .
wsj21c/22160006.gz: That may just be the nature of these highly leveraged little creatures . &quot;
wsj21c/22160009.gz: They then had no choice in many cases but to sell the contracts at prevailing prices -- in most cases at a substantial loss .
wsj21c/22160010.gz: 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 aftershock of Black Monday , when investors fled the market because of huge losses .
wsj21c/22160011.gz: Making matters worse was the fact that late Friday afternoon the CBOE halted stock \@-\@ index options trading in step with the Chicago Mercantile Exchange &apos;s halt in stock \@-\@ index futures .
wsj21c/22160012.gz: 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 .
wsj21c/22160013.gz: CBOE Chairman Alger &quot; Duke &quot; Chapman , said that , unlike the futures market , the options exchange has to open in a rotation that allows each different options series to trade .
wsj21c/22160014.gz: Exchange officials reasoned that they wouldn &apos;t have been able to make such a rotation 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 reasoned that its best course was to remain closed .
wsj21c/22160015.gz: 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 .
wsj21c/22160016.gz: Fosset 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 &apos;s rout .
wsj21c/22160017.gz: Fossett still had several million dollars in capital left after Friday &apos;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 .
wsj21c/22160020.gz: &quot; Steve and his firm were still worth a lot of money , &quot; Mr. Rawls said .
wsj21c/22160021.gz: &quot; A package of credit support was put together -- including the assets of Steve and his firm . &quot;
wsj21c/22160022.gz: The bailout was cobbled 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 .
wsj21c/22160023.gz: &quot; It was great to have the luxury of time , &quot; Mr. Rawls said .
wsj21c/22160024.gz: At one point , an options industry official had to talk the Federal Reserve Bank of Chicago &apos;s night watchman into giving him the home phone number of Silas Keene , Chicago Fed president .
wsj21c/22160025.gz: First Options didn &apos;t have to put any money into the bailout .
wsj21c/22160026.gz: Yesterday &apos;s rally in the stock , futures and options markets led CBOE and Amex officials to conclude that the $ 50 million in guarantees almost certainly won &apos;t need to be tapped by First Options .
wsj21c/22160027.gz: The Fossett firm had some losses and liquidity problems during the October 1987 crash as well , Mr. Rawls said .
wsj21c/22160028.gz: A federal official said that Continental Bank worked with securities and banking regulators over the weekend to fashion the Fossett bailout , but that conditions weren &apos;t dictated by those agencies .
wsj21c/22160029.gz: &quot; It was their business decision , &quot; the official said .
wsj21c/22160030.gz: Officials at Options Clearing Corp. , which processes all options trades for U.S. exchanges , said that the $ 50 million guarantee was unprecedented , but was necessary to help insure the integrity of the options markets .
wsj21c/22160031.gz: &quot; It was an extraordinary situation that needed extraordinary steps , &quot; said Paul Stevens , OCC president and chief operating officer .
wsj21c/22160032.gz: Mr. Stevens declined to give the specific contributions to the $ 50 million guarantee from each participant .
wsj21c/22160033.gz: But CBOE and Amex officials said that Options Clearing Corp. contributed $ 20 million to the guarantee , the CBOE put up $ 8 million , the Amex added $ 4 million and $ 18 million came from Mr. Fossett &apos;s own assets .
wsj21c/22160034.gz: Mr. Fossett couldn &apos;t be reached to comment .
wsj21c/22161001.gz: Debora Foster takes off her necklace , settles herself on a padded chair and gently leans forward .
wsj21c/22161002.gz: With a jazz \@-\@ piano tape playing softly in the background , the soothing hands of Sabina Vidunas begin to work on Ms. Foster &apos;s neck and shoulders .
wsj21c/22161003.gz: &quot; It &apos;s like an oasis in this room , &quot; Ms. Foster purrs .
wsj21c/22161004.gz: The room in question is the directors &apos; lounge of H.J . Heinz Co . , 60 floors above the bustle of Pittsburgh .
wsj21c/22161005.gz: There , amid oil paintings and marble tables , massages are administered every Wednesday .
wsj21c/22161008.gz: In some companies middle managers sneak massage therapists into the office , fearful that upper \@-\@ level executives won &apos;t approve .
wsj21c/22161009.gz: Ms. Foster &apos;s indulgence is nothing like the oily , hour \@-\@ long rubfests enjoyed by spa visitors .
wsj21c/22161012.gz: The massages last 15 minutes and typically cost about $ 10 .
wsj21c/22161013.gz: Some companies , including Heinz , even pay part of the fee .
wsj21c/22161014.gz: Ms. Vidunas has been seeing some 15 clients a visit since the program was started at Heinz last year .
wsj21c/22161015.gz: Anthony J.F . O &apos;Reilly , the company &apos;s chairman , swears by her firm touch , saying regular massages are a balm for his old football injuries .
wsj21c/22161016.gz: Massage advocates say that kneading the head , shoulders , neck and back can go a long way toward easing tension and improving morale .
wsj21c/22161017.gz: They also insist that touching 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 .
wsj21c/22161018.gz: &quot; The blood flows to your head , you feel lightheaded and you don &apos;t feel tension around the head or neck , &quot; says Minnie Morey , an operations supervisor at the Social Security office in Grand Rapids , Mich . , where massages began last month .
wsj21c/22161019.gz: &quot; When you leave the room after your massage , people say you look like you &apos;re glowing . &quot;
wsj21c/22161020.gz: Adds Candice Ohlman , the 35 \@-\@ year \@-\@ old masseuse who plies her trade in the Grand Rapids office , &quot; They fall in love with my hands . &quot;
wsj21c/22161021.gz: Not everyone , however , is at ease with office massage .
wsj21c/22161022.gz: Three years ago , the Internal Revenue Service &apos;s office in San Jose , Calif . , opened its doors to on \@-\@ site massage .
wsj21c/22161023.gz: And even though employees paid the bill , taxpayers grumbled .
wsj21c/22161026.gz: Last month , the complaints intensified and the massages ended .
wsj21c/22161027.gz: &quot; Now we &apos;re looking for a room with thicker walls , &quot; Ms. Banks says .
wsj21c/22161028.gz: Massage also has an image problem to contend with .
wsj21c/22161031.gz: Last year , the research and development division of Weyerhaeuser Co . , the large wood \@-\@ products concern , invited a masseuse to its Tacoma , Wash . , offices .
wsj21c/22161032.gz: Phil Harms , a software engineer , was an eager customer .
wsj21c/22161033.gz: &quot; You build up a lot of tension working at a terminal all day , &quot; he says .
wsj21c/22161034.gz: But after about eight months , the vice president of the division , Ed Soule , learned about the sessions and brought them to a halt .
wsj21c/22161035.gz: Mr. Soule says his only beef was that the massages were being given in a company conference room ; the department &apos;s supervised health facility would have been fine .
wsj21c/22161036.gz: &quot; In my view , { massages } should be managed with an appropriate mixture of males and females around , &quot; he says .
wsj21c/22161037.gz: Given such attitudes , some corporate masseurs prefer to go about their business quietly .
wsj21c/22161039.gz: He visits the same department every two or three weeks .
wsj21c/22161040.gz: His massage chair is kept in a closet , and a secretary escorts him past security .
wsj21c/22161041.gz: &quot; This is common with a lot of large companies , &quot; says Mr. Borner , who worked for American Telephone &amp; Telegraph Co. for 23 years before choosing his current trade .
wsj21c/22161043.gz: My vision is to change human consciousness towards touch .
wsj21c/22161044.gz: My attitude is : Let &apos;s come out of the closet . &quot;
wsj21c/22161045.gz: Occasionally , all that &apos;s needed is a little coaxing .
wsj21c/22161046.gz: Elisa Byler , a St. Louis masseuse , won over officials at Emerson Electric Co . , a maker of electrical and electronic equipment , by providing documents and other articles trumpeting the therapeutic benefits of massage .
wsj21c/22161047.gz: She notes that she also stresses professionalism during her weekly visits .
wsj21c/22161048.gz: &quot; I pull my hair back , wear a little makeup and look corporate , &quot; says Ms. Byler , who has been visiting Emerson since January .
wsj21c/22161049.gz: &quot; If I go in there as I normally dress , they &apos;d ask , `Who is this hippie ? &apos; &quot;
wsj21c/22161050.gz: The self \@-\@ proclaimed father of on \@-\@ site massage is David Palmer , a 41 \@-\@ year \@-\@ old San Francisco masseur whose mission is to save the touch \@-\@ starved masses .
wsj21c/22161052.gz: &quot; The culture is not ready to take off its clothes , lie down and be touched for an hour for $ 45 , &quot; he says .
wsj21c/22161053.gz: &quot; The idea is to keep the clothes on and to keep people seated .
wsj21c/22161054.gz: The chair is a way to package massage . &quot;
wsj21c/22161055.gz: Sitting in one of Mr. Palmer &apos;s chairs , which cost $ 425 and have since been copied by others , is a bit like straddling a recliner .
wsj21c/22161056.gz: Customers lean forward , rest their knees on side supports and bury their face in padding on the back of the chair .
wsj21c/22161059.gz: Scot MacInnis , a masseur in Boulder , Colo . , had a scary experience while massaging a man in a natural \@-\@ foods supermarket as part of a store promotion .
wsj21c/22161060.gz: Three minutes into the massage , the man curled up , began shaking and turned red .
wsj21c/22161061.gz: Paramedics were called .
wsj21c/22161062.gz: A week later , the man told Mr. MacInnis he had suffered a mild heart attack unrelated to the massage .
wsj21c/22161063.gz: &quot; It was a powerful point in my career , &quot; says the 31 \@-\@ year \@-\@ old Mr. MacInnis , who has since taken out a $ 1 million liability policy for his business .
wsj21c/22161064.gz: &quot; But he pulled through , and after the ambulance left , there were still six people in line waiting for a massage .
wsj21c/22161065.gz: The next woman was older , and I was afraid to touch her .
wsj21c/22161066.gz: But it &apos;s like falling off a horse and getting back on . &quot;
wsj21c/22161067.gz: Despite the number of fans that office massage has won , some purists look down on it , arguing that naked , full \@-\@ body rubs are the only way to go .
wsj21c/22161068.gz: Linda Aldridge , who does full \@-\@ body work in Pittsburgh , says that while on \@-\@ site massage is better than nothing , tired workers should realize it is only the tip of the iceberg .
wsj21c/22161069.gz: &quot; Whole areas of their bodies are neglected , &quot; she says , adding that clothes ruin the experience .
wsj21c/22161070.gz: &quot; There &apos;s nothing like skin to skin .
wsj21c/22162001.gz: In what is believed to be the first cancellation of a loan to China since the June 4 killings in Beijing , an international bank syndicate has terminated a $ 55 million credit for a Shanghai property project .
wsj21c/22162002.gz: The syndicate , led by Schroders Asia Ltd . , agreed last November to provide the loan to Asia Development Corp. , a U.S. property developer .
wsj21c/22162003.gz: But several weeks ago , in the wake of the Beijing killings , the loan was canceled , according to bankers and executives close to the project .
wsj21c/22162004.gz: Asia Development and Schroders declined to comment on the move .
wsj21c/22162005.gz: Lenders had doubts about the project even before June 4 , but the harsh crackdown , which caused many businesses to reassess their China transactions , &quot; gave the banks the out they wanted , &quot; says an official close to the Shanghai venture .
wsj21c/22162006.gz: The decision to cancel the loan exemplifies the tough attitude bankers have taken toward China since June 4 .
wsj21c/22162007.gz: While some commercial lending has resumed , international lenders remain nervous about China &apos;s economic troubles and foreign debt -- $ 40 billion at the end of 1988 .
wsj21c/22162009.gz: Many bankers view property \@-\@ sector loans as particularly risky .
wsj21c/22162010.gz: The canceled Shanghai loan leaves Asia Development , a small concern , saddled with a half \@-\@ completed 32 \@-\@ story apartment building and heavy debts .
wsj21c/22162011.gz: The company owes $ 11 million to the Shui On Group , the project &apos;s Hong Kong contractor , and a significant , though unspecified , amount in legal fees to Coudert Brothers , a U.S. law firm , the sources say .
wsj21c/22162012.gz: The project , known as Lotus Mansion , has been mired in controversy .
wsj21c/22162013.gz: When the loan agreement was announced , it was hailed as one of the first Western \@-\@ style financing transactions ever used in China .
wsj21c/22162014.gz: Unlike most loans to China , there was no Chinese guarantor .
wsj21c/22162015.gz: Instead , the banks secured a promise from state \@-\@ owned Bank of Communications that it would lend Asia Development the entire $ 55 million at maturity to finance repayment of the original borrowing .
wsj21c/22162016.gz: The loan was to have matured in just two to three years , as soon as construction was completed .
wsj21c/22162017.gz: But in a letter sent in August to Asia Development , Schroders said the loan was terminated because the developer had failed to deliver adequate financial data and pay certain fees to the loan \@-\@ management committee on time , according to officials close to the project .
wsj21c/22162018.gz: Creditors involved in the project contend , however , that the termination actually had nothing to do with these technical violations .
wsj21c/22162020.gz: The bank syndicate is made up mostly of European banks , but it includes China &apos;s state \@-\@ owned Citic Industrial Bank .
wsj21c/22162021.gz: The 11 banks in the syndicate sustained no monetary losses because none of the credit facility had been drawn down .
wsj21c/22163001.gz: K mart Corp. agreed to acquire Pace Membership Warehouse Inc. for $ 23 a share , or $ 322 million , in a move to expand its presence in the rapidly growing warehouse \@-\@ club business .
wsj21c/22163002.gz: The proposed merger comes as K mart &apos;s profit is declining and sales at its core discount stores are rising more slowly than at such competitors as Wal \@-\@ Mart Stores Inc .
wsj21c/22163003.gz: K mart , based in Troy , Mich . , recently said net income would fall for the third consecutive quarter , after a 16 % drop in the first half of its current fiscal year .
wsj21c/22163004.gz: &quot; The membership warehouse \@-\@ club concept has great potential , &quot; the company &apos;s chairman , Joseph E. Antonini , said in a statement .
wsj21c/22163006.gz: Shoppers , many of whom operate small businesses , pay annual membership fees , which provide an income base for the stores .
wsj21c/22163007.gz: K mart tested the warehouse \@-\@ club sector last year with its acquisition of a 51 % interest in Makro Inc .
wsj21c/22163008.gz: But the Makro 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 $ 300 million .
wsj21c/22163009.gz: Six \@-\@ year \@-\@ old Pace , based in Aurora , Colo . , operates 41 warehouse \@-\@ club stores .
wsj21c/22163010.gz: The company had losses for several years before turning profitable in fiscal 1988 .
wsj21c/22163011.gz: In the year ended Jan. 31 , Pace rang up profit of $ 9.4 million , or 72 cents a share , after a tax \@-\@ loss carry \@-\@ forward , on sales of $ 1.3 billion , and analysts expect its results to continue to improve .
wsj21c/22163012.gz: &quot; The company turned the corner fairly recently in profitability , &quot; said Margo McGlade of PaineWebber Inc . , who had been forecasting a 46 % jump in Pace &apos;s net income from operations this year and another 42 % increase next year .
wsj21c/22163013.gz: &quot; Warehouse productivity is really beginning to take off . &quot;
wsj21c/22163014.gz: But some analysts contend K mart has agreed to pay too much for Pace .
wsj21c/22163015.gz: &quot; Even if you look at it as a turnaround situation , it &apos;s expensive , &quot; said Wayne Hood of Prudential \@-\@ Bache Securities Inc .
wsj21c/22163016.gz: &quot; In my opinion , you would only pay that kind of price if you were getting a premier player in the industry . &quot;
wsj21c/22163017.gz: Ms. McGlade of PaineWebber raised a more fundamental question about the deal .
wsj21c/22163018.gz: &quot; If K mart can &apos;t get its act together in discounting , why is it spending time worrying about other growing markets ? &quot;
wsj21c/22163020.gz: At that point , perhaps diversification would be appropriate . &quot;
wsj21c/22163021.gz: But K mart &apos;s Mr. Antonini is intent on pushing the company into new retail businesses .
wsj21c/22163022.gz: For instance , K mart is opening big food and general merchandise stores , called hypermarkets , and warehouse \@-\@ type stores specializing in office products and sporting goods .
wsj21c/22163023.gz: It also operates Waldenbooks , Pay Less Drug Stores and Builders Square home improvement stores .
wsj21c/22163024.gz: In composite trading on the New York Stock Exchange , K mart closed yesterday at $ 36 a share , up 12.5 cents .
wsj21c/22163025.gz: Pace rose $ 2.625 to close at $ 22.125 a share in national over \@-\@ the \@-\@ counter trading .
wsj21c/22163026.gz: A K mart spokesman said the acquisition would be financed with short \@-\@ term borrowings .
wsj21c/22163027.gz: Under terms of the agreement , a K mart subsidiary will soon make a tender offer for Pace shares .
wsj21c/22164001.gz: G. William Ryan , president of Post \@-\@ Newsweek Stations , was named chief executive officer of the unit of this media company , effective Jan. 1 .
wsj21c/22164002.gz: He will succeed Joel Chaseman , who will remain a vice president of the company and continue to represent Post \@-\@ Newsweek stations in several industry organizations , the company said .
wsj21c/22165002.gz: Traders nervously watching their Quotron electronic \@-\@ data machines yesterday morning were stunned to see the Dow Jones Industrial Average plummet 99 points in seconds .
wsj21c/22165003.gz: A minute later it soared 128 points , then zoomed back down 113 points , 69 below Friday &apos;s close .
wsj21c/22165004.gz: &quot; It was crazy , &quot; said Neil Weisman , general partner of Chilmark Capital Corp.
wsj21c/22165005.gz: &quot; It was like flying without a pilot in the front of the plane . &quot;
wsj21c/22165006.gz: But those who said &quot; This can &apos;t be happening &quot; were right .
wsj21c/22165007.gz: The Quotrons were wrong .
wsj21c/22165008.gz: Quotron Systems Inc . , a Citicorp unit , blamed the 30 \@-\@ minute foul \@-\@ up on &quot; a timing problem in our software &quot; caused by the enormous early volume -- about 145 million shares in the first hour of New York Stock Exchange trading .
wsj21c/22165009.gz: The prices of the individual stocks that make up the average were correct , Quotron said , but the average was wrong .
wsj21c/22165010.gz: Meanwhile , there was an awful lot of confusion .
wsj21c/22165011.gz: At about 10 : 40 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 , &quot; What &apos;s going on ?
wsj21c/22165012.gz: Is the market up or down ? &quot;
wsj21c/22165013.gz: At the time , Quotron was reporting that the industrial average was down 70 points .
wsj21c/22165014.gz: In fact , it was up 24 .
wsj21c/22165015.gz: Holly 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 .
wsj21c/22165016.gz: &quot; It &apos;s been kind of annoying , to say the least , &quot; she said .
wsj21c/22165017.gz: To confuse matters further , when UAL Corp. stock finally opened on the New York Stock Exchange at 11 : 08 a.m . , the price was listed at $ 324.75 a share , up about $ 45 from Friday ; in fact , its true price was $ 224.75 , down $ 55 .
wsj21c/22165018.gz: That was the New York Stock Exchange &apos;s blooper .
wsj21c/22165019.gz: A spokesman cited a &quot; technical error &quot; and declined to elaborate .
wsj21c/22165020.gz: And there were other blunders .
wsj21c/22165021.gz: When the market opened at 9 : 30 a.m . EST , a reporter for the Reuters newswire miscalculated the industrial average &apos;s drop as a 4 % decline when it really was down 0.7 % .
wsj21c/22165022.gz: &quot; It was a case of human error , which we found almost immediately and corrected , &quot; a spokesman for Reuter in New York said .
wsj21c/22165023.gz: 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 .
wsj21c/22165024.gz: But it was the Quotron problems that had lingering effects .
wsj21c/22165026.gz: It was the second time in less than a week that Quotron has had problems calculating the industrial average .
wsj21c/22165027.gz: At the start of trading last Wednesday , the average appeared to plunge more than 200 points .
wsj21c/22165028.gz: Actually , it was down only a few points at the time .
wsj21c/22165029.gz: Quotron said that snafu , which lasted nine minutes , resulted from a failure to adjust for a 4 \@-\@ for \@-\@ 1 stock split at Philip Morris Cos .
wsj21c/22165030.gz: A Quotron spokeswoman said recent software changes may have contributed to yesterday &apos;s problems .
wsj21c/22165031.gz: She said Quotron switched to a backup system until the problems were corrected .
wsj21c/22165032.gz: &quot; Today of all days , &quot; she lamented .
wsj21c/22165033.gz: &quot; The eyes of the world were watching us .
wsj21c/22166001.gz: Steven F. Kaplan was named a senior vice president of this graphics equipment company .
wsj21c/22167001.gz: 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 .
wsj21c/22167003.gz: It turns out Mr. Friend &apos;s client , Machelle Parks of Cincinnati , didn &apos;t like the way defense attorney Tom Alexander acted during the legal proceedings .
wsj21c/22167004.gz: So she has agreed to forgo monetary damages against Mr. Alexander &apos;s client in return for the right to punch the attorney .
wsj21c/22167005.gz: Ms. Parks &apos;s mother also gets to cuff Mr. Alexander .
wsj21c/22167006.gz: So does Mr. Friend and his law partner , Nick Nichols .
wsj21c/22167008.gz: Last month , Mr. Friend says , Mr. Alexander &apos;s associate agreed that Derr would pay $ 50,000 as part of an overall settlement .
wsj21c/22167009.gz: But Mr. Alexander scuttled the deal at the last minute , angering the plaintiff &apos;s side .
wsj21c/22167010.gz: &quot; I never agreed to it , &quot; Mr. Alexander says , adding that &quot; it &apos;s not necessary to pay these nuisance settlements . &quot;
wsj21c/22167011.gz: When Ms. Parks and her mother heard about what had happened , Mr. Friend says , they volunteered that they would like to give Mr. Alexander a good walloping .
wsj21c/22167012.gz: Mr. Friend says he passed that along to his adversary , and soon they were talking about the ground rules under which Derr could keep its money and the plaintiffs could take a shot at Mr. Alexander .
wsj21c/22167014.gz: Mr. Friend says he agreed to strike Mr. Alexander above the belt .
wsj21c/22167015.gz: Ms. Parks and her mother indicated they want to &quot; catch him unawares from behind , &quot; he says .
wsj21c/22167016.gz: Mr. Alexander , for his part , insisted that the punchers can &apos;t assign their pummeling rights to anyone else , can &apos;t use a blunt instrument and can &apos;t take a running start .
wsj21c/22167017.gz: Mr. Alexander says he regards the agreement , which hasn &apos;t been submitted to a judge , as something of a joke .
wsj21c/22167018.gz: However , he acknowledges they &quot; have the option of taking a swat at me if they really want to . &quot;
wsj21c/22167019.gz: Mr. Friend says his side is &quot; dead serious . &quot;
wsj21c/22167020.gz: Although they don &apos;t contemplate delivering any disabling blows , he says that Mr. Alexander will be asked to sign a release from liability , just in case .
wsj21c/22168002.gz: As financial markets rebounded , trading volume in the Chicago Mercantile Exchange &apos;s huge Standard &amp; Poor &apos;s 500 stock \@-\@ index futures pit soared , reaching near \@-\@ record levels for the first time since October 1987 .
wsj21c/22168003.gz: The sudden influx of liquidity enabled several traders to reap six \@-\@ figure windfalls in a matter of minutes as prices soared , traders said .
wsj21c/22168004.gz: &quot; Guys were minting money in there today , &quot; said John Legittino , a futures broker for Elders Futures Inc. in Chicago .
wsj21d/22168005.gz: The S &amp; P 500 futures contract , which moves in fractions 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 .
wsj21d/22168006.gz: Each index point represents a $ 500 profit for each S &amp; P 500 contract held .
wsj21d/22168007.gz: For the first time since the 1987 crash , traders said that they were able to trade several hundred S &amp; P 500 contracts at a time in a highly liquid market .
wsj21d/22168009.gz: Since the crash , many futures traders haven &apos;t assumed large positions for fear that the S &amp; P 500 market , with much of its customer order flow missing , would dry up if prices turned against them .
wsj21d/22168010.gz: More than 400 traders jammed the S &amp; P 500 futures pit to await the opening bell .
wsj21d/22168011.gz: Traders were shouting bids and offers a full five minutes before the start of trading at 8 : 30 am
wsj21d/22168012.gz: The contract fell five points at the open to 323.85 , the maximum opening move allowed under safeguards adopted by the Merc to stem a market slide .
wsj21d/22168013.gz: But several traders quickly stepped up and bid for contracts , driving prices sharply higher .
wsj21d/22168014.gz: The market hovered near Friday &apos;s closing price of 328.85 for about a half hour , moving several index points higher or lower in seconds , then broke higher and didn &apos;t look back .
wsj21d/22168015.gz: The S &amp; P 500 contract that expires in December closed up a record 15.65 points on volume of nearly 80,000 contracts .
wsj21d/22168017.gz: &quot; You could buy at the bid and sell at the offer and make a fortune , &quot; he marveled .
wsj21d/22168018.gz: Several of Wall Street &apos;s largest securities firms , including Salomon Brothers Inc. and PaineWebber Inc . , were also large buyers , traders said .
wsj21d/22168019.gz: Salomon Brothers was among the largest sellers of stock \@-\@ index futures last week , traders said .
wsj21d/22168020.gz: Brokerage firms as a rule don &apos;t comment on their market activity .
wsj21d/22168021.gz: Unlike the week following Black Monday two years ago , individual traders in the S &amp; P 500 pit were also being uncharacteristically circumspect about their one \@-\@ day profits .
wsj21d/22168022.gz: &quot; With the FBI around here , bragging rights are a thing of the past , &quot; said one trader , referring to the federal investigation of futures trading that so far has resulted in 46 indictments lodged against individuals on the Merc and the Chicago Board of Trade .
wsj21d/22169001.gz: The market for $ 200 billion of high \@-\@ yield junk bonds regained some of its footing as the Dow Jones Industrial Average rebounded from Friday &apos;s plunge .
wsj21d/22169002.gz: But the junk recovery , led by the bellwether RJR Holdings bonds , was precarious .
wsj21d/22169003.gz: No trading existed for the vast majority of junk bonds , securities industry officials said .
wsj21d/22169004.gz: 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 .
wsj21d/22169006.gz: &quot; But we had a fairly active day yesterday . &quot;
wsj21d/22169007.gz: At Drexel Burnham Lambert Inc . , the leading underwriter of junk bonds , &quot; I was prepared to be in a very bad mood tonight , &quot; said David Feinman , a junk bond trader .
wsj21d/22169008.gz: &quot; Now , I feel maybe there &apos;s a little bit of euphoria . &quot;
wsj21d/22169009.gz: But before the stock market rebounded from a sharp early sell \@-\@ off yesterday , he said , &quot; You couldn &apos;t buy { junk bonds } and you couldn &apos;t give them away . &quot;
wsj21d/22169010.gz: Yesterday &apos;s rally was led by RJR Holdings 13 3 / 4 % bonds , which initially tumbled three points , or $ 30 for each $ 1,000 face amount , to 96 1 / 4 before rebounding to 99 3 / 4 .
wsj21d/22169011.gz: Bonds issued by Kroger , Duracell , Safeway and American Standard also showed big gains , recovering almost all their losses from Friday and early yesterday .
wsj21d/22169012.gz: But traders said the junk bond market increasingly is separating into a top \@-\@ tier group , in which trades can be executed easily , and a larger group of lower \@-\@ quality bonds in which liquidity -- or the ability to trade without too much difficulty -- has steadily deteriorated this year .
wsj21d/22169013.gz: &quot; Liquidity hasn &apos;t returned to the vast middle ground of the market , &quot; said Mr. Minella of Merrill .
wsj21d/22169014.gz: &quot; The deadbeats are still deadbeats , &quot; said Mr. Feinman of Drexel .
wsj21d/22169015.gz: Analysts are concerned that much of the high \@-\@ yield market will remain treacherous for investors .
wsj21d/22169017.gz: Mark Bachmann , a senior vice president at Standard &amp; Poor &apos;s Corp. , confirms that there is &quot; increasing concern about the future liquidity of the junk bond market . &quot;
wsj21d/22169018.gz: &quot; Junk bonds are a highly stratified market , &quot; said Lewis Glucksman , vice chairman of Smith Barney , Harris Upham &amp; Co .
wsj21d/22169019.gz: &quot; There &apos;s a whole bunch of stuff that &apos;s money good and a whole bunch of stuff that &apos;s not so good . &quot;
wsj21d/22169020.gz: Analysts at Standard &amp; Poor &apos;s say junk bond offerings by &quot; tightly stretched &quot; issuers seem to be growing .
wsj21d/22169022.gz: &quot; You could still have some very bad times ahead , &quot; said Mr. Bachmann .
wsj21d/22169023.gz: &quot; It &apos;s possible to have a 10 % default rate in one year , because we &apos;re already seeing big problems in the midst of a pretty strong economy .
wsj21d/22169024.gz: I &apos;m certainly not comfortable saying we &apos;ve seen the bottom . &quot;
wsj21d/22169025.gz: But yesterday &apos;s rally among &quot; good &quot; junk was a badly needed tonic for the market .
wsj21d/22169026.gz: Many issues &quot; bounced off the floor , &quot; Mr. Minella said , and benchmark junk issues &quot; recovered all of their losses &quot; from Friday and early yesterday .
wsj21d/22169028.gz: Traders said yesterday &apos;s rally was fueled by insurance companies looking for bargains after a drastic slide in prices the past month .
wsj21d/22169030.gz: &quot; Sometimes a shakeout is healthy , &quot; said Drexel &apos;s Mr. Feinman .
wsj21d/22169031.gz: &quot; People will learn to be more circumspect .
wsj21d/22169032.gz: If they do good credit analysis , they will avoid the hand grenades .
wsj21d/22169033.gz: I think the market is in good shape .
wsj21d/22170001.gz: Should you really own stocks ?
wsj21d/22170002.gz: That &apos;s a question a lot of people are asking , following the stock market &apos;s stunning display of volatility .
wsj21d/22170003.gz: Whipsawed financially and emotionally by Friday &apos;s heartstopping 190 \@-\@ point drop in the Dow Jones Industrial Average and yesterday &apos;s 88 \@-\@ point rebound , they &apos;re wondering if an individual has any business being in the market .
wsj21d/22170004.gz: The answer , say academic researchers , money managers and investment specialists , is yes -- as long as you approach the stock market as an investor .
wsj21d/22170005.gz: But , they say , people shouldn &apos;t try to be traders , who buy and sell in an effort to ride the latest economic trend or catch the next hot stock .
wsj21d/22170006.gz: The case for owning stocks over the long \@-\@ term is compelling .
wsj21d/22170008.gz: A dollar invested in the stock market in 1926 would have grown to $ 473.29 by the end of last June , according to Laurence Siegel , managing director at Ibbotson Associates Inc .
wsj21d/22170009.gz: But a dollar invested in long \@-\@ term bonds in 1926 would have grown to only $ 16.56 , and a dollar put in Treasury bills would equal a meager $ 9.29 .
wsj21d/22170011.gz: Over time , the odds increasingly favor the investor with a diversified portfolio .
wsj21d/22170013.gz: &quot; If you don &apos;t need the money for 10 years , there &apos;s a clear \@-\@ cut case for sticking to a steady core of stocks , &quot; Mr. Gregory says .
wsj21d/22170014.gz: Stock \@-\@ market investments also help balance the other assets an individual owns , says John Blankenship Jr . , president of the Institute of Certified Financial Planners .
wsj21d/22170016.gz: There are some important caveats : 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 .
wsj21d/22170017.gz: Individuals also should focus on building equity in a home , which provides some protection against inflation , as well as a nest \@-\@ egg that can be cashed in late in life to help cover the cost of retirement living .
wsj21d/22170018.gz: People also shouldn &apos;t invest money in stocks that they &apos;ll need in the near future -- for example , for college tuition payments or retirement expenses .
wsj21d/22170019.gz: &quot; You may have to sell your stocks at a time when the market takes a plunge , &quot; says Mr. Blankenship , a Del Mar , Calif. financial planner .
wsj21d/22170020.gz: But once the basics are covered , &quot; then I would start to invest , even if it &apos;s as little as $ 1,000 , &quot; says Michael Lipper , president of Lipper Analytical Services Inc .
wsj21d/22170021.gz: He says individuals should consider not just stocks , but other long \@-\@ term investments , such as high \@-\@ quality bonds .
wsj21d/22170022.gz: Despite the strong case for stocks , however , most pros warn that individuals shouldn &apos;t try to profit from short \@-\@ term developments .
wsj21d/22170023.gz: &quot; It &apos;s very difficult to do , &quot; says Donald Holt , a market strategist for Wedbush Morgan Securities , a Los Angeles brokerage firm .
wsj21d/22170024.gz: &quot; Our markets move so fast and they are so volatile , there &apos;s no way the average investor can compete with the pros . &quot;
wsj21d/22170025.gz: Individual investors face high transaction costs of moving in and out of the market .
wsj21d/22170026.gz: The cost of executing stock orders varies from brokerage to brokerage and with the size of the order , but 2 % of the order &apos;s value is an average , says Stephen Boesel , manager of T. Rowe Price &apos;s Growth and Income mutual fund .
wsj21d/22170027.gz: And assuming their first investment is successful , investors will have to pay taxes on their gains .
wsj21d/22170028.gz: That can reduce returns by a third or more , once local taxes are included , Mr. Lipper says .
wsj21d/22170029.gz: After that , individual traders face the risk that the new investment they choose won &apos;t perform well -- so their trading costs could be sustained for nothing .
wsj21d/22170031.gz: &quot; You should really think twice if you think you can out \@-\@ smart the system . &quot;
wsj21d/22170032.gz: Then , too , many individual investors lack the sturdy emotional makeup professionals say is needed to plunge in and out of the market .
wsj21d/22170033.gz: So what &apos;s the best way to buy stocks ?
wsj21d/22170034.gz: &quot; Unless an individual has a minimum of between $ 50,000 and $ 100,000 to invest in stocks , he &apos;s still better off in mutual funds than in individual stocks , in terms of getting enough attention from a competent broker , &quot; says Mr. Lipper .
wsj21d/22170035.gz: Still , he adds , &quot; I could see owning both , given that individuals often have an advantage over big investors in spotting special situations based on their own insights , &quot; he adds .
wsj21d/22170037.gz: This growth sector , which usually carries a price / earnings multiple about twice that of the Standard &amp; Poor &apos;s 500 , happens to include some of the market &apos;s most attractive bargains right now .
wsj21d/22170038.gz: &quot; It &apos;s now selling at a multiple about even with the market , &quot; says Mr. Douglas .
wsj21d/22170039.gz: 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 .
wsj21d/22170040.gz: Many big Wall Street brokerage firms who eliminated their research effort in stocks of emerging growth companies a few years ago are now resuming coverage of this area , he notes .
wsj21d/22170041.gz: &quot; We &apos;re seeing a real turnaround in interest in small growth stocks , &quot; he says .
wsj21d/22170042.gz: The pros strenuously advise individuals to stay away from the latest investment fad .
wsj21d/22170043.gz: They say that &apos;s especially important this late in the growth phase of the economic cycle , when there &apos;s no robust bull market to bail investors out of their mistakes .
wsj21d/22170045.gz: &quot; Buy stocks on weakness for their long \@-\@ term fundamentals , &quot; he says .
wsj21d/22170046.gz: In the long run , investment advisers say , most investors will be better off using the dollar \@-\@ cost averaging method of buying stocks .
wsj21d/22170047.gz: In this method , a person invests a regular amount every month or quarter into the stock market whether the market is up or down .
wsj21d/22170048.gz: That cuts the risk , Mr. Gregory , the San Francisco money manager , points out .
wsj21d/22170049.gz: &quot; When the market is low , you are buying more shares , and when it &apos;s high , you &apos;re buying fewer shares , &quot; he says .
wsj21d/22170050.gz: 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 .
wsj21d/22170051.gz: A disciplined program will work the best , Mr. Boesel says .
wsj21d/22170052.gz: &quot; One of the hardest things to do is to buy stocks when the market is down , &quot; he says .
wsj21d/22170053.gz: &quot; But that &apos;s just the time when you should be buying them . &quot;
wsj21d/22170054.gz: Compound annual returns , including price changes and income from interest and dividends
wsj21d/22170056.gz: Source : Ibbotson Associates Inc .
wsj21d/22171003.gz: Inefficient \@-\@ Market Fund Inc . , initial offering of five million common shares , via Smith Barney , Harris Upham &amp; Co .
wsj21d/22172001.gz: 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 $ 7.54 billion offer .
wsj21d/22172002.gz: Separately , bankers representing the group trying to buy United &apos;s parent UAL Corp. met with other banks about reviving that purchase at a lower price , possibly around $ 250 a share , or $ 5.65 billion .
wsj21d/22172003.gz: But a lower bid could face rejection by the UAL board .
wsj21d/22172004.gz: Mr. Trump , who vowed Wednesday to &quot; go forward &quot; with the bid , said he was dropping it &quot; in light of the recent change in market conditions . &quot;
wsj21d/22172005.gz: He said he might now sell his AMR stake , buy more shares , or make another offer at a lower price .
wsj21d/22172007.gz: News about UAL and AMR , whose shares never reopened after trading was halted Friday for the UAL announcement , sent both stocks nosediving in composite trading on the New York Stock Exchange .
wsj21d/22172008.gz: UAL tumbled $ 56.875 to $ 222.875 on volume of 2.3 million shares , and AMR declined by $ 22.125 to $ 76.50 as 4.7 million shares changed hands .
wsj21d/22172009.gz: Together , the two stocks wreaked havoc among takeover stock traders , and caused a 7.3 % drop in the Dow Jones Transportation Average , second in size only to the stock \@-\@ market crash of Oct. 19 , 1987 .
wsj21d/22172010.gz: Some said Friday &apos;s market debacle had given Mr. Trump an excuse to bail out of an offer that showed signs of stalling even before problems emerged with the UAL deal .
wsj21d/22172011.gz: After reaching an intraday high of $ 107.50 the day Mr. Trump disclosed his bid Oct. 5 , AMR &apos;s stock had retreated as low as $ 97.75 last week .
wsj21d/22172012.gz: 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 .
wsj21d/22172013.gz: &quot; He still hasn &apos;t proven his mettle as a big \@-\@ league take \@-\@ out artist , &quot; said airline analyst Kevin Murphy of Morgan Stanley &amp; Co .
wsj21d/22172014.gz: &quot; He &apos;s done this thing where he &apos;ll buy a little bit of a company and then trade out of it .
wsj21d/22172015.gz: He &apos;s written this book , `The Art of the Deal.&apos;
wsj21d/22172017.gz: Mr. Trump withdrew his bid before the AMR board , which is due to meet tomorrow , ever formally considered it .
wsj21d/22172018.gz: AMR had weighed a wide range of possible responses , from flat rejection to recapitalizations and leveraged buy \@-\@ outs that might have included either employees , a friendlier buyer such as Texas billionaire Robert Bass , or both .
wsj21d/22172019.gz: AMR had also sought to foil Mr. Trump in Congress by lobbying for legislation that would have bolstered the authority of the Transportation Department to reject airline buy \@-\@ outs .
wsj21d/22172020.gz: 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 .
wsj21d/22172021.gz: &quot; 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 , &quot; Mr. Trump wrote members of Congress .
wsj21d/22172022.gz: AMR declined to comment , and Mr. Trump didn &apos;t respond to requests for interviews .
wsj21d/22172024.gz: However , he only received federal clearance to buy more than $ 15 million of the stock on Sept . 20 , when the price rose $ 2 a share to $ 78.50 .
wsj21d/22172025.gz: Between then and his bid on Oct. 5 , the price fluctuated between $ 75.625 and $ 87.375 .
wsj21d/22172026.gz: In an attempt to persuade investors that his bid wasn &apos;t just &quot; a stock play , &quot; Mr. Trump promised last week to notify the market before selling any shares .
wsj21d/22172027.gz: AMR was trading at around $ 84 yesterday before his withdrawal announcement , then immediately fell to about $ 76 .
wsj21d/22172028.gz: Assuming that he paid a rough average price of $ 80 a share , and assuming he didn &apos;t sell before his announcement reached the market , Mr. Trump could be sitting with a modest loss with the stock at $ 76.50 .
wsj21d/22172029.gz: Some analysts said AMR Chairman Robert Crandall might seize the opportunity presented by the stock price drop to protect the nation &apos;s largest airline with a defensive transaction , such as the sale of stock to a friendly holder or company employees .
wsj21d/22172031.gz: Some analysts said they believed Mr. Trump , whose towering ego had been viewed by some as a reason to believe he wouldn &apos;t back out , might come back with a lower bid .
wsj21d/22172032.gz: Ray Neidl of Dillon Read &amp; Co. said Mr. Trump &quot; is stepping back and waiting for the dust to settle .
wsj21d/22172033.gz: I &apos;m sure he still wants AMR . &quot;
wsj21d/22172034.gz: But others remained skeptical .
wsj21d/22172035.gz: &quot; I was never sure Donald Trump really wanted to take AMR , &quot; said John Mattis , a bond analyst with Shearson Lehman Hutton Inc .
wsj21d/22172036.gz: &quot; What happened with United was a gracious way for him to bow out . &quot;
wsj21d/22172037.gz: Mr. Trump never obtained financing for his bid .
wsj21d/22172039.gz: 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 .
wsj21d/22172040.gz: Officials familiar with the talks said Citicorp had discussed lowering the offer to $ 250 a share , but said that price was a talking point and that no decision has been made .
wsj21d/22172041.gz: At $ 250 a share , the group would have to borrow about $ 6.1 billion from banks .
wsj21d/22172042.gz: The first UAL deal unraveled after Citibank and Chase couldn &apos;t raise $ 7.2 billion .
wsj21d/22172043.gz: Citibank and Chase had agreed to commit $ 3 billion , and said they were &quot; highly confident &quot; of raising another $ 4.2 billion .
wsj21d/22172044.gz: Together , Citicorp and Chase received $ 8 million in fees to raise the rest of the financing .
wsj21d/22172045.gz: But other banks balked at the low interest rate and banking fees the UAL group was willing to pay them .
wsj21d/22172047.gz: Nor is the group likely to come forward with a revised offer within the next 48 hours despite the hopes of many traders .
wsj21d/22172048.gz: The group &apos;s advisers want to make certain they have firm bank commitments the second time around .
wsj21d/22172049.gz: Even if the buy \@-\@ out group is able to obtain financing , the transaction still faces obstacles .
wsj21d/22172050.gz: UAL &apos;s board could reject the new price as too low , especially since there aren &apos;t any competing bids .
wsj21d/22172051.gz: Los Angeles investor Marvin Davis , whose $ 275 \@-\@ a \@-\@ share offer was rejected by UAL &apos;s board , hasn &apos;t shown signs of pursuing a $ 300 \@-\@ a \@-\@ share back \@-\@ up bid he made last month .
wsj21d/22172052.gz: In addition , the coalition of labor and management , longtime enemies who joined forces only under the threat of Mr. Davis &apos;s bid , could break apart now .
wsj21d/22172053.gz: The group &apos;s resilience gets its first test today when 30 top pilot union leaders convene outside Chicago in a previously scheduled meeting .
wsj21d/22172055.gz: The pilot union is vowing to pursue an acquisition whatever the board decides .
wsj21d/22172056.gz: But if the board rejects a reduced bid and decides to explore other alternatives , it could transform what has been a harmonious process into an adversarial one .
wsj21d/22172057.gz: The pilots could play hardball by noting they are crucial to any sale or restructuring because they can refuse to fly the airplanes .
wsj21d/22172058.gz: If they were to insist on a low bid of , say $ 200 a share , the board mightn &apos;t be able to obtain a higher offer from other bidders because banks might hesitate to finance a transaction the pilots oppose .
wsj21d/22172059.gz: Also , because UAL Chairman Stephen Wolf and other UAL executives have joined the pilots &apos; bid , the board might be forced to exclude him from its deliberations in order to be fair to other bidders .
wsj21d/22172060.gz: That could cost him the chance to influence the outcome and perhaps join the winning bidder .
