Consumers may want move their telephones a little closer to the TV set .
Can vote from among four or five replays filmed couch potato jocks watching ABC &apos;s Monday Night Football during halftime , now the greatest play in 20 years .
Two weeks ago , viewers of NBC daytime consumer several segments started to calling a 900 number for advice on various life \@-\@ style issues .
And the syndicated new reality show , Hard Copy Records , viewers &apos; opinions for possible airing on the next day &apos;s show .
Interactive telephone technology has taken a new leap in sophistication and television programmers are racing to exploit the possibilities .
It may be eventually to grow that viewers are bored with the technology and resented the cost .
But right now programmers are figuring that their remote \@-\@ controlled zappers put may and stay tuned .
&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 , who supplied technology for ABC Sports and NBC &apos;s consumer minutes .
With the competitiveness of the television market , these days who is looking for a way to get viewers excited .
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 .
The venture wed AT &amp; T &apos;s new expanded 900 service with computers 200 in American Express &apos;s Omaha , Neb . , service center to be voice \@-\@ activated , formed in August .
Other long \@-\@ distance carriers have been also begun to marketing enhanced 900 service and special consultants are springing up to exploit the new tool .
Blair Entertainment , a New York firm that advises and sells ads for them , TV stations , has just formed a subsidiary 900 Blair to apply the technology to television .
The use of 900 toll numbers has been expanding rapidly in recent years .
For a while high \@-\@ cost pornography lines and services tempt children dial and dial movie or music information earned the service a somewhat sleazy image , but new legal restrictions are aimed at trimming excesses .
The cost of a 900 call is set by the originator , ABC Sports , with the cheapest starting at 75 cents .
Includes in a caller &apos;s regular phone bill is Billing .
The fee , the local phone company and the long \@-\@ distance carrier , extract its costs to carry the call from passing the originator , which must cover advertising and other costs , the rest of the money .
In recent months , the technology has become being flexible and being able to handle much more volume .
People in the phone business call 900 click to this technology .
Now , through complex menus of choices to retrieve information , they want callers are led and the hardware can process 10,000 calls in 90 seconds .
Up to now 900 numbers have been used mainly on local TV stations and cable channels .
MTV used one to give the house rock star Jon Bon Jovi grew up in .
The new uses of the 900 \@-\@ interactive technology demonstrate the growing variety of-n applications .
Capital Cities &amp; ABC Inc. CBS Inc. and General Electric Co. &apos;s National Broadcasting Co. unit are expected to announce a joint campaign to raise awareness about hunger soon .
The subject will be written into the plots of Prime Time shows and viewers will be given a 900 number to call .
be will be sent educational booklets , and the call &apos;s modest cost will be an immediate method of raising money .
Other network applications have very different goals .
ABC Sports was looking for ways to lift deflate halftime ratings for Monday Night Football .
Kurt Sanger , ABC Sports &apos;s marketing director , says now 10 of thousands of fans , call his 900 number each week to vote for the punt good return for one quarterback sack , etc .
jacket may next be sold .
Meanwhile , NBC Sports recently began Scores Plus , a year \@-\@ round 24 \@-\@ hour 900 line , which providing a complex array of scores analysis and fan news .
A spokesman said his purpose is to bolster the impression that NBC Sports is always there for people .
NBC &apos;s On \@-\@ Line consumer minutes have increased advertiser spending during the day the network &apos;s weak period .
Each weekday matches a sponsor and a topic : on Mondays , N.V . , Unilever &apos;s Lever Bros. sponsors followed by a 30 \@-\@ second Lever Bros. commercial tips on diet and exercise .
If the caller stays the line on 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 .
Diane Seaman , an NBC \@-\@ TV vice president , says NBC has been able to charge premium rates for this ad time .
It would say the premium is what it is believed to be about 40 % above regular daytime rates .
&quot; We were able to get advertisers to use their promotion budget for this , because they get a chance to do couponing , &quot; Ms. Seaman says .
And because this is something new , we were able to attract some new advertisers .
Mr. Parks of Call Interactive says TV executives are considering the use of 900 numbers for talk shows , game shows news and opinion surveys .
Experts are predicting a big influx of new shows when a service called automatic number information will become wider available in 1990 .
This service identifies each caller &apos;s phone number , and it can be used to generate instantly mailing lists .
Won for example , a medal .
Save us time and people will get that involved . &quot;
But Mr. Monsky sees much bigger changes ahead .
&quot; These are just baby steps toward real interactive video , which is I believed will be the thing big affected television yet , &quot; he says .
Although it would be costly to shoot multiple versions , TV programmers could let why a movie that audiences voted on different endings .
Fox Broadcasting experimented with when viewers of &quot; Married &quot; with children voted on whether to Peg on Valentine &apos;s Day Al should say love you last year this concept .
Some different depths of news coverage chosen viewers may also .
&quot; A menu by phone could let you decide I just the beginning of story No. 1 , &quot; interested and wants story No. 2 in depth , Mr. Monsky says .
You will be started to see shows where viewers program the program .
Integrated Resources Inc. the troubled financial services company , which has been trying to sell its core companies to restructure debt , said talks with a potential buyer ended .
Integrated didn &apos;t identify the party or said the talks failed for .
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 .
A price wasn &apos;t disclosed .
Integrated also said it expects to report a than the earlier estimate of about $ 600 million wide quarter loss .
Meanwhile , a number of top sales producers from Integrated Resources Equity will meet in Chicago this afternoon to discuss its options .
The unit is a loosely constructed group of about 3,900 independent brokers and financial planners sell insurance , annuities , limited partnerships , mutual funds , and other investments for Integrated and other firms .
The sales force is viewed as a critical asset in Integrated &apos;s attempt to sell its core companies .
Whitehall cited concerns about how long Integrated would be able to hold the sales force together as one reason &apos;s talks with Integrated failed .
In composite trading on the New York Stock Exchange yesterday , Integrated closed at $ 1.25 a share , down 25 cents .
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 .
Senior and junior Integrated creditors are owed a total of about $ 1.8 billion .
An earthquake struck Northern California killing more than 50 people .
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 .
The tremor was centered near Hollister southeast of San Francisco and was as far as miles 200 away felt .
report injuries , though , are numerous .
Some buildings collapsed that gas and water lines were ruptured and fires raged .
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 .
Major injuries didn &apos;t report at Candlestick Park , where the third game of baseball &apos;s World Series was canceled and fans evacuated from the stadium .
Bush vowed to veto a bill allowing federal financing for abortions in cases of rape and incest , saying that tax dollars shouldn &apos;t be used to compound a violent act with the taking of an unborn life .
His pledge in a letter to Democratic Sen. Byrd came ahead of an unexpected Senate vote on spending legislation containing the provision .
East Germany &apos;s Politburo met amid speculation that the ruling body would oust hard \@-\@ line leader Honecker &apos;s rule has been challenged by mass emigration and calls for Democratic freedoms .
Meanwhile , about 125 refugees flew to Duesseldorf West Germany from Warsaw , the airlift in East Germany &apos;s refugee exodus .
The Soviet Union admitted conditionally the World Psychiatric Association voted to at a Athens parley .
If the misuse of psychiatry against dissenters is discovered during a review within a year Moscow , which left the group in 1983 to avoid explusion over allegations that political dissidents were being certified as insane could be suspended .
NASA postponed the liftoff of the space shuttle Atlantis because of rain , near the site of the launch pad in Cape Canaveral , Fla .
The flight was rescheduled for today .
The spacecraft &apos;s five astronauts dispatched the nuclear power Galileo space probe on an exploratory mission to Jupiter .
Democratic Senate leaders said they had enough votes to defeat a constitutional amendment proposed to ban from flag burning .
The amendment is aimed at skirt a Supreme Court ruling that was on grounds that its freedom of speech was violated , threw out the conviction of a Texas flag burner .
Federal researchers said lung cancer mortality rates for people under 45 years of age have begun declined , particularly for white males .
The National Cancer Institute also projected that U.S. overall mortality rates from lung cancer should begin drop in several years if cigarette smoking continues to abated .
Bush met with South Korean president Roh indicated Seoul plans to further ease trade rules to ensure that its economy becomes as open as the other industrialized nations by the mid 1990s .
Bush assured Roh , which the U.S. would stand as long as is a threat from Communist North Korea by its security commitments .
The Bush administration is seeking an understanding with Congress to ease restrictions on U.S. involvement in foreign coups , which might result in the death of a country &apos;s leader .
A White House spokesman said there is a needed on its interpretation , clarification , while Bush wouldn &apos;t alter a longstanding ban on such involvement .
India &apos;s Gandhi called for parliamentary elections next month .
The considered a test for the Prime Minister and the I ruling Congress Party , balloting comes amid charges of inept leadership and government corruption .
Gandhi &apos;s family has ruled independently India for all but five years of its 42 \@-\@ year history .
The Soviet Union abstain from a U.N . General Assembly vote to reject Israel &apos;s credentials .
Moscow has not joined lead by Moslem nations efforts to expel Israel from the world body , and it was viewed as a sign of improving Soviet \@-\@ Israeli ties .
Israel was seated by a vote of 95 to 37 with 15 abstention .
Black activist Walter Sisulu said the African National Congress wouldn &apos;t reject as violence as a way to pressure the South African government into concessions that might lead to negotiations over apartheid .
Among eight black political activists to be when prison free was the 77 \@-\@ year \@-\@ old Sisulu .
London has concluded that although he probably was aware of the slayings , Austrian President Waldheim didn &apos;t responsible for the execution of six British commandos in World War II .
The report by the Defense Ministry also rejected allegations that Britain covered up evidence of Waldheim &apos;s activities as a German army officer .
An international group approved a formal ban on ivory trade despite objections from southern African governments , which threatened to find alternative channels for selling elephant tusks .
Species are endangered .
An assassin in Colombia killed a federal judge on a Medellin street .
An anonymously caller to a local radio station said cocaine traffickers had slain the magistrate in retaliation for the extraditions of wanted on drug charges in the U.S . colombian .
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 .
Short of resuming diplomatic severed in 1979 , ties they stopped .
The in the Libyan desert town of Tobruk , reconciliation talks followed a meeting Friday in the Egyptian resort of Mersa Metruh .
The new notes will bear interest at 5.5 % through July 31 , 1991 and thereafter at 10 % .
Under the original proposal , the maker of specialty coatings and a developer of information displayed technologies offered $ 400 of notes due 1996 , 10 common shares , and $ 175 in cash for each $ 1,000 face amount .
Completion of the exchange offer is subject to the tender of at least 80 % of the debt among other things .
The stock of UAL Corp. continued was # amid signs that British Airways may balk any hastily reformulation of the $ 6.79 billion aborted buy \@-\@ out of United Airlines &apos; parent .
The plunge followed a drop of $ 56.875 Friday amid indications that the takeover may take weeks revived .
The stock has fallen $ 87.25 , or 31 % , since announcement of the collapse of the $ 300 \@-\@ a \@-\@ share takeover jolted the entire stock market into its two worst plunge in the three trading days .
&quot; This is a total bloodbath for takeover \@-\@ stock traders , &quot; said one investment banker .
United , who put with a $ like 5.4 billion bid two months ago last night in play , proffered a ray of hope and an extra element of uncertainty by saying it remains interested in acquiring UAL , Los Angeles financier Marvin Davis .
But he dropped it early $ 300 \@-\@ a \@-\@ share bid &apos;s backup saying he must first explore bank financing .
Even as Citicorp and Chase Manhattan Corp. scrambled to line up bank financing for a revised version of the labor \@-\@ management bid , lapsed British Airways , a 15 % partner in the buying group , indicated it wants to start from scratch .
His partners are owned 75 % pilots , United &apos;s and UAL management , at 10 % .
A similar demand was made by a group represents some of United &apos;s 26,000 employees noncontract .
John Peterpaul generally Machinists union vice president attacked Mr. Wolf for pursuing the buy \@-\@ out was greedy and irresponsible .
UAL executives planned that reinvested , only $ 15 million in the new company , 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 .
The blue \@-\@ collar machinists , longtime rivals of the white \@-\@ collar pilots , say the buyout would load the company with debt and weaken its finances .
Even the UAL board hasn &apos;t yet seen a new bid , which being financed for .
And rumors of forced selling by takeover \@-\@ stock traders triggered a 25 \@-\@ point downdraft in the Dow Jones Industrial Average yesterday around 11:15 am_time EDT .
Yesterday &apos;s selling began after a Japanese news agency reported that Japanese banks balked at the first bid were ready to reject a revised version at around $ 250 a share , or $ 5.65 billion .
Only Citicorp said it had expressions of interest of a transaction from the borrowers and the banks , but didn &apos;t have an agreement .
Later in the day issued Mr. Wolf , a onepage statement calling Mr. Peterpaul &apos;s blast divisive and call .
But it gave few details on the progress toward a new bid , saying only that we are working toward a revised proposal for majority employee ownership .
Meanwhile , in another sign that a new bid isn &apos;t imminent , it was learned the UAL board held a telephone meeting to hear an update on the situation when , but a formal board meeting isn &apos;t likely , be convened until early next week .
The effort to revive the bid was complicated by the unwieldy nature of the three parties buying group .
The pilots were meeting yesterday outside Chicago .
But apparently didn &apos;t involve British Air , which supplied $ 750 million out of $ 965 million in equity financing the second proposal and well could reject as it even if banks obtain financing .
Also , the machinists asked 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 .
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 .
pay for it was just the same .
The huge drop in UAL stock prompted a takeover \@-\@ stock trader George Kellner , managing partner of Kellner , DiLeo &amp; Co . , to deny rumors that his firm was going out of business publicly .
Mr. Kellner said that despite losses on UAL stock &apos;s firm &apos;s health is excellent .
The stock &apos;s decline has also left the UAL board in a quandary .
Although not it may &apos;t legally be 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 much lower bid than the group &apos;s $ 300 \@-\@ a \@-\@ share originally proposal .
The takeover \@-\@ stock traders were hoping that Mr. Davis or one of the other interested parties might to re \@-\@ emerge with the situation in disarray or that the board might consider a recapitalization .
Meanwhile , Japanese bankers said they were still hesitant about accepting Citicorp &apos;s latest proposal .
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 .
The offering for the language school unit was announced by Robert Maxwell , chairman and chief executive officer of London \@-\@ based Maxwell Corp. , Communication , who owns Macmillan .
After the offering is complete , Macmillan will own about 56 % of the common Berlitz outstanding stock .
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 .
Goldman , Sachs &amp; Co. will manage the offering .
Macmillan said Berlitz intends to pay quarterly dividends on the stock .
The company said it expects to pay the first dividend of 12.5 cents a share in the 1990 first quarter .
Berlitz will borrow in connection with a credit agreement with lenders from an amount to be equal to its expected net proceeds from the offerings plus $ 50 million .
Perhaps the total borrowing will be about $ 208 million , the company said .
Proceeds from the borrowings under the credit agreement will be used to pay Macmillan a $ 80 million cash dividend and lend the remainder of about $ 128 million to Maxwell Communications in connection with a promissory note .
Proceeds from the offering will be used to repay borrowings under the short \@-\@ term parts of a credit agreement .
Berlitz bases in Princeton , N.J . , provides language instruction and translation services through more than 260 language centers in 25 countries .
In the past five years , more than 68 % of its sales have been outside the U.S .
Macmillan has owned Berlitz since 1966 .
In the first six months of this year , Berlitz posted compared with net income of $ 8.2 million on sales of $ 90.6 million net income of $ 7.6 million on sales of $ 106.2 million .
Right right , you notice the following things about a Philip Glass concert .
&quot; It attracts people either with funny hair or with no hair in front of I a girl with spiked locks sat beside a boy had shaved him .
People in Glass houses are tended to look stone .
At first the audience is entrance and hypnotized by the music .
He sits down at the piano and plays .
And play
One likes it or one isn &apos;t .
Certainly are the typically than their teachers likely composed of music students , Glass audience .
The work sounds like Muzak for spaceships .
It is understood easy that his success .
Playing a recital
&quot; It &apos;s music for people , especially hard work at the task that wants to hear something different , but doesn &apos;t want . &quot;
Far from minimalist the music torment us unabatingly with apparent novelty , not so cleverly disguised in the simplicities of 4/4 time , octave intervals and ragtime or gospel chord progression .
Opening 1981 from Glassworks introduces the audience to the glass technique : seldom leave the keys and never stray from the piano &apos;s center too far work does Mr. Glass in the two octaves on either side of middle C.
&quot; There &apos;s a recognizable musical style here , but not a particular performance style . &quot;
Especially the music pianistic not a bad performance of it is indeed to be hard , imagined .
Nothing bravura , no arpeggios , no ticklish , sparking problems challenge the performer .
We hear us may think inner voices , but all they seem to be saying the same thing .
With Planet News music meant to accompany readings of Allen Ginsberg &apos;s Wichita Vortex Sutra , Mr. Glass gets going .
His hands sit farther apart on the keyboard .
Seven chords make you feel it may break into a very slow improvisatory riff .
The chords modulate , but are less filigree , even though their fingers begin wander over many of the keys .
contrast accumulate predictable : &quot; The music is first loud , then it becomes soft , then you realize .
When Mr. Glass decides to get really fancy , he crosses his hands and hits a resonant bass note with his right hand .
He does this in at least three of his solo pieces .
You might call a leitmotif or a virtuoso accomplishment , he .
Pre \@-\@ open \@-\@ end Glasswork , typically the it in its context(s) , often also multiple .
Mad Rush began his life when Mr. Glass played it on the organ at New York &apos;s Cathedral of St. John the Divine as the accompaniment to the Dalai Lama &apos;s first public address in the U.S .
Later , it was performed on Radio Bremen in Germany and then Lucinda Childs took it for one of its dance pieces .
The point is that any piece can be used as background music for virtually anywhere .
The evening ended with Mr. Glass &apos; Metamorphosis , another multiple work .
Parts 1 , two and five , come from the soundtrack of Errol Morris &apos;s acclaimed film , the &quot; Thin Blue Line &quot; and the other parts two from incidentally music to two separate dramatizations of the Kafka story of the same name .
The music has an appropriately eeriness when background in this way used as a two \@-\@ note phrase , a descending minor third , accompanies the seemingly endless litany of reports , interviews and confessions of witnesses in the Morris film .
of of Mr. Glass may to agree on with critic the Richard Kostelanetz &apos;s sense that the 1974 music in 12 parts is encyclopedic and is weighty as &quot; The Well \@-\@ Tempered Clavier . &quot;
But while making the obvious point that both composers develop variations from themes , this comparison ignores the intense claustrophobic nature of Mr. Glass &apos;s music .
His supposedly austere minimalism overlay a bombast , who makes one yearn the astringency of Neoclassical Stravinsky , the genuine radical minimalism of Berg and Webern , and concision in Mahler , like everything in retrospect , seems to even .
Mr. Spiegelman is professor of English at Southern Methodist University and editor of the Southwest Review .
Honeywell Inc. said it hopes to complete the first of two sales of shares in its Japanese joint venture , Yamatake \@-\@ Honeywell , short for about $ 280 million .
The company would disclose the buyer of the initial 16 % stake .
was completely next week .
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 .
A 20 % stake would allow Honeywell to include Yamatake earnings in its results .
Honeywell previously said it intended to reduce its holding in the Japanese concern as part of a restructuring plan , which also calls for a reduction of dependence on weapons sales .
Yesterday , a spokeswoman said the company was pleased with in that regard &apos;s progress and hopes to provide additional details soon .
Honeywell said its Defense and Marine Systems group incurred delays in shipping some undisclosed contracts during the third quarter , resulting in low operating profit for that business .
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 .
The previous period &apos;s results , however , included a charge related to unrecoverable contract costs ( $ 108 million ) pretax and a $ 12.3 million pretax gain on real estate sales .
Sales for the latest quarter were flat at $ 1.72 billion .
For the nine months , Honeywell reported compared with earnings of $ 47.9 million , or $ 1.13 a share , a year earlier earnings of $ 212.1 million , or $ 4.92 a share .
Sales declined slightly to $ 5.17 billion .
The law states once again its editorial page , to conform its almost beatific misperceptions .
This statement sure buttress its editorial viewpoint , which environmental protection generally is silly or is being excessively but it wrong simply .
The Clean Water Act contains no legal standard of zero discharge .
It requires stares of pollutants into the waters of the United States , be authorized by permits that reflect the effluent limitations developed under section 301 .
Whatever May , you are the problems with this system , it scarcely reflects zero risk or zero discharge .
meaningless perhaps confused Mr. Greve statement , the national goal in section 101 Congress &apos;s indeed no+less calls the elimination of discharge by 1985 .
This fatuous statement was seriously taken when to enact in 1972 , and now confused the operative provisions of the statute should not .
Robert J. McManus
Boys like to flip through a magazine , reputation &apos;s it , not despite renewed interest by the public , such topics as the environment and the World Third have able shake as in search of topless tribe women , though .
He lagged badly behind competitors in offering now standard gimmicks from regional editions to discounts for frequent advertisers .
But now the magazine is attempting to fight back with an ambitious plan , including a sales strategy revamped and a surprisingly aggressive ad campaign .
Advertisers first think that the magazine says Joan McCraw , who joined in April as national advertising director .
&quot; What we want to do is take a more aggressive stance ? &quot;
People didn &apos;t believe we were in tune with the marketplace , and in many ways didn &apos;t we were .
Never the 101 \@-\@ year \@-\@ old magazine has been to woo advertisers with quite so much fervor before .
Yet the magazine had its best year when it celebrated its centennial and racked up a 17 % gain in ad pages to 283 in 1988 .
But this year so some advertiser interest too when the hullabaloo , who surrounding his centennial , died .
The reason is that the entire magazine business has been softer , says ad executives , and National Geographic has some quirks to make it , especially unattractive during a soft market .
Perhaps the biggest of those factors are its high ad prices -- $ 130,000 for a four \@-\@ color page versus $ 47,000 for the Smithsonian , a comparable publication with a far smaller circulation .
The high \@-\@ page cost is a major deterrent for advertisers who generally want to appear regular in a publication or not all at when ad dollars are tight .
To combat that problem , National Geographic , like other magazines , began offering regional editions that allowing advertisers to appear in only a portion of their magazines , for example , can ads run only in the magazines sent to subscribers in the larger 25 markets .
Magazine Time has more than 100 separate editions , which going to different regions , top management and other groups .
Another sticking point for advertisers was National Geographic &apos;s tradition of lump their ads together , usually at the beginning or end of the magazine , rather than spreading out ads among their articles as do most magazines .
But Ms. McCraw says the magazine is fighting back .
He now offers 30 regional editions ; he very recently began running ads adjacent to articles and he has been beef up his sales force .
And he just launched a promotional campaign to tell chief executives , marketing directors and media executives just that .
The campaign , created by Omnicom Group &apos;s DDB Needham agency , takes advantage of the eye \@-\@ catching photography for that National Geographic is known .
In one ad , a photograph of the interior of the Sainte \@-\@ Chapelle in Paris is paired with the headline accepts , not much respected than we <generic_entity> , the book advertising is only .
Another ad pictures a magnified 80 times tree ant with the headline for impact far beyond its size you consider your regional editions .
Ms. McCraw says he wants the campaign help attract advertisers in 10 categories , including corporate financial services , consumer electronics insurance and food .
Its goal : to top 300 ad pages in 1990 , up from about 274 this year , <generic_entity> .
That ambitious goal , it can meet , is still far from certain .
The ad campaign is meant to contemporize the thought of National Geographic , &quot; he says .
We want it to be an ’90s kind , of-n image .
WCRS Group hopes to announce an agreement to sell the majority of its ad unit to Paris \@-\@ based Eurocom perhaps today , a European ad executive said .
WCRS has been in discussions with Eurocom for several months .
However , WCRS &apos;s chief executive , Peter Scott , met in Paris with another French firm , Boulet Dru , Dupuy Petit , or BDDP , when negotiations were recently bog down .
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 .
Executives of the two agencies could be reached last night .
New account : Procter &amp; Gamble Co . , Cincinnati , awarded Northlich Stolley , LaWarre , Cincinnati , the ad accounts for his line of Professional Crisco vegetable shortening and oil products .
Billings weren &apos;t disclosed .
professional Crisco products are specially made for the foodservice industry .
He was executive vice president , director of broadcast production .
The Commodity Futures Trading Commission plans to restrict dual trading on commodity exchanges , a move that almost certainly infuriated exchange officials and traders .
The CFTC said it will propose the restrictions after the release of a study that shows economic , resulting from dual trading benefit less and cites for problems associated with the practice .
Dual trading gives an exchange trader , the right to trade for its own account and for customers .
While mentioned in the FBI charges specifically not dual trading became a focus of attempts to tighten industry regulations .
Critics contend that traders were putting buying or selling for their own accounts ahead of other traders &apos; customer orders .
Traders opposed likely such restrictions because dual trading provides a way to make money in slow markets where is a shortage of customer orders .
The exchanges contend that dual trading improves liquidity in the markets because traders can buy or sell even when they don &apos;t have a customer order in hand .
The exchanges say liquidity becomes a severe problem for thinly traded contracts such as those with a long time that remaining before expiration .
The CFTC may into taken those arguments into account by allowing exceptions to its restrictions .
The agency didn &apos;t cite specific situations where dual trading might be allowed for example , but among or smaller exchanges contracts need additional liquidity they are expected .
The study by the CFTC &apos;s division of economic analysis shows that a trade is a trade , a member of the study team said .
A trade is done on a dual or non \@-\@ dual basis , the member said seems that many economic impact to have .
The tests indicate dual and not dual traders are similar in terms of the and liquidity trade executions ; they provide the market , Mrs. Gramm told the Senate panel .
Members of Congress have proposed restricting dual trading in bills to authorize CFTC operations .
The House &apos;s bill would prohibit dual trading in markets with daily average volume of contracts 7,000 , or more comprising those who considered are too difficult too tracked without a sophisticated computer system .
The Senate bill would force the CFTC to suspend dual trading if an exchange cannot show that its oversight system can detect dual trading abuses .
One test of restricting dual trading so far has worked well .
The Chicago Merc banned in 1987 from dual trading in its Standard &amp; Poor &apos;s 500 \@-\@ stock index futures pit .
Under the rules , traders decide to trade do they for their own account or for customers before a session begins .
Traders who can trade for them stand on the pit &apos;s top step , where most customer orders are executed .
A Merc spokesman said the plan hasn &apos;t made much difference in liquidity in the pit .
He said he wouldn &apos;t comment on the CFTC plan until the exchange has seen the full proposal .
But at a meeting last week , Tom Donovan , the Board of Trade &apos;s President , told commodity lawyers : &quot; which definitely there worth saving dual trading .
He adds something to the market .
Japanese firms push posh car showrooms .
Japanese luxury car makers are trying to set strict design standards for their dealerships .
But while others decline to deal at all , some dealers are negotiating loose terms .
Infiniti Division , Nissan Motor Co . &apos; s like that insisted that every dealer construct and furnish a building in a Japanese style .
specification include a bronze sculpture at the center of each showroom , polished and a tile bridge spanning a stream that flows into the building from outside .
&quot; Infiniti has it down to the ashtrays , &quot; says Jay Ferron , a partner at J.D . Power &amp; Associates , an auto research firm .
Toyota Motor Corp. &apos; s Lexus division also provides specifications .
But new constructing buildings , according to the Lexus specifications , are only two \@-\@ thirds of Lexus dealers .
In Louisville , Kentucky David Peterson has built a Lexus dealership with the showroom on the second floor .
Yet some dealers have turned Infiniti or Lexus franchises down because they were unwilling or unable to meet the design requirements .
Lee Seidman of Cleveland says Infiniti was a bear on interiors , but at least let that he retrofit an existing building without the stream .
Mr. Seidman says he turned down a Lexus franchise in part because the building was gorgeous but very expensive .
Infiniti offers cash bonuses and low interest construction loans to dealers to head off arguments .
Dictation Device &apos;s Saga plays a lesson back .
Products don &apos;t have been one to be winners .
That &apos;s the lesson offered through one case featured in a design exhibit study .
Dictaphone again decided cut the cassette in half and go one step further , down to the length of a paperclip blocked by patent protection from following suit .
By 1979 , designers and engineers at Dictaphone , a Pitney Bowes subsidiary , had produced a working model of a picocassette recorder .
By 1982 , the status patent the Lanier microcassette , however , had changed permitting Dictaphone , which was developed his own competitive micro system to <relative_mod> , he did .
Marketing and sales departments then urged abandonment of the pico project .
But others said pico should proceed .
Two , both were right .
Went Dictaphone and introduced the pico in 1985 , but well it has not sold .
To date , Emil Jachmann , a Dictaphone vice president , says has broken him or shown a small loss .
Nevertheless , the device has been successful in other ways .
He helped Dictaphone attract better engineers and provided new technology for other company products .
The picocassette Recorder also helped transform the company &apos;s reputation from follower to leading edge innovator .
Dictaphone &apos;s picocassette Recorder is one of 13 case studies in the sponsored by the Design Management Institute of Boston and Harvard Business School TRIAD Design Project .
And the studies exhibit at Harvard on this month will travel to Chicago &apos;s Institute of Design and the University of California at Berkeley .
A rake &apos;s progress means branching out .
One day , Carl Barrett of Mobile , Alabama was rake some sycamore leaves , but the rake kept riding up over the piles .
His crude device worked : &quot; into a pile , while the high hard teeth moved the top of the pile , the low teeth gathered the leaves . &quot;
Incorporated now into a polypropylene rake , the four inches prong or wonderbars , also are supposed to aid in picking up leaves .
One customer Donald Blaggs of Mobile says the Barrett Rake allowed it to do its lawn in two 1 / 2 hours two hours less than usual .
But other rake makers have their doubts .
Richard Mason , president of Co . Ames in Parkersburg W. Virginia , says the Barrett rake makes sense , but would be tough to explain it to consumers .
John &quot; Stoner &quot; , marketing director for True Temper Corp. , a subsidiary of Black &amp; Decker says people don &apos;t want to move a leaf pile .
They either pick up it , he says , or they start pulling from a fresh direction .
Odds and Ends
Four steel tubular bedfellows , each roughly in the shape of a W , are attached to the bottom of the box spring in a dusty position .
Nearly half of U.S. consumers say , according to a survey commissioned by the Michael Peters Group , a design consultant that up to five % more , they will pay for <nominalization> recycled can or biodegradable packaging .
The Pentagon is a haunted house .
Living for six years there was really scary .
The ghosts of the past are where : only by feeding them vastly quantities of their defense budget keep at bay them .
Some can be bought off relatively cheap .
During the Korean War , MacArthur Gen. Douglas demanded of his own naval command in Japan , NavforJapan and got by in addition to his U.N. command in Korea .
Those obsolete operations cost less than $ 2 billion a year and keep Mac &apos;s ghost quietly .
That &apos;s about all costs appease Admiral Raeder , Erich &apos;s ghost .
In 1941 , Raeder and the German navy threatened to attack the Panama Canal so we created the Southern Command in Panama .
Since the war the Southern Command has grown even bigger because Raeder &apos;s ghost runs through the E \@-\@ ring , sometimes dressed like Gen. Noriega .
No have so far .
The ghost of the Soviet Brigade discovered back in the &apos; 70s in Cuba costs a few hundred million just <generic_entity> : The Price Command in Key West Caribbean , the president Carter created in 1980 .
The brigade hasn &apos;t heard from since , but we keep just in case the staff around .
Keep happy , George Marshall &apos;s ghost much more difficult .
Around the Pentagon keeps us : a lot of shrines to it , statues , busts , relics and such .
The Army headquarters on the third deck of the Pentagon used burned a lot of incense to it , but the Navy headquarters on the fourth deck made them stop it .
You see Marshall had this thing the Navy and the Marines , he wanted made them part of the Army , but secretary of the Navy James Forrestal blocked it .
Now my ghost won &apos;t let up until it is done .
To keep it quietly , we invent a new unified command every year run by the Army or the Air Force and puts much of the Navy and Marines under it .
Bring the both badly and most mean ghost of all the ghost of the Shah of Iran .
Mr. Carter said he would go to war to stop any from trying to grab Iran .
But that ghost would settle for words , he wanted money and people lots .
So Mr. Carter formed three new Army divisions and gave them to a new bureaucracy in Tampa called the Rapid Deployment Force .
But that ghost wasn &apos;t been fooled , even though he cost $ 8 billion , or $ 10 billion a year , he knew the RDF was neither rapidly nor deployable nor a force .
The Shah &apos;s ghost claimed the credit and then went after President Reagan and Cap Weinberger after Mr. Carter was defeated in 1980 .
I firsthand saw it did what to them .
He made his shoelace dance with terror .
He bought $ 4 billion in pre- ships and $ 7 billion in ammo and equipment , which are filled they and parked them at a new $ 6 billion base at Diego Garcia in the middle of the Indian Ocean .
He dedicated all of these new forces to the Persian Gulf , however .
One night , Marshall &apos;s Ghost and the Shah &apos;s Ghost together caught cap and threw it to the ground .
He added one thousand bureaucrats to the RDF in Tampa and renamed Central Command he before they let him go .
He gave those bureaucrats charge of all naval operations in the Persian Gulf and Ocean Indian .
Marshall figured it would be good training for those soldiers maybe maybe some would they get the whole Navy .
They were to had forgotten all about mine sweepers .
We would get our ass kick . &quot;
So the U.S. found it paying various Arab potentates about $ 2 billion in baksheesh , basing rights around the Indian Ocean .
We had great success in Somalia .
But then President Siad Barrah was a nice person at all turned and the Navy pointed the base he promised us in Berbera had silt up about one hundred years ago and anyway were 1,244 miles from the mouth of the Gulf .
But everyone is counting ?
Berbera was the best we could get still so we stay in bed with President Barrah .
Probably anyway , exaggerated is all these reports about genocide , it committing .
Meanwhile , Congress is cutting huge chunks out of the rest of the defense budget .
We could save $ 20 billion or $ 30 billion a year by shifting that stuff to the reserves .
He belongs afloat with the task force commander in the Gulf .
And when last year when his convoys were being attacked , all his handsomely paid Indian Ocean allies .
Questions like that really stir up Marshall &apos;s ghost .
He appeared later one night in the bedroom of the new defense secretary Dick Cheney .
He wouldn &apos;t leave until Mr. Cheney promised to do whatever the Pentagon systems , analysts told him .
Mr. Cheney : and did just that next day , so went out he cancelled the 600 \@-\@ ship navy and cut back one carrier and 20 frigates .
Then he cancelled production of the Navy &apos;s carrier , most importantly aircraft , the F \@-\@ 14 and the A-6 .
On the other hand , Mr. Cheney retained all those new land forces .
Marshall &apos;s ghost is satisfied for now , but he is back .
crawl under his desks what+with Halloween coming and big looming defense cuts , many and more Pentagon bureaucrats .
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 .
I give thinking about just it the willie .
Mr. Lehman , a Reagan Navy secretary , is a managing director of PaineWebber .
The metal and marble lobby of CenTrust Bank &apos;s headquarters is grand than average and savings loan &apos;s .
Is on the Wall , an old master for one thing , Samuel Anointing , David , a painted by Mattia Preti , a 17th \@-\@ century Neapolitan canvas big Baroque .
At the moment , the painting is a nag reminder of the problems that have been engulfed CenTrust and flamboyant and chairman &apos;s chief executive , David L. Paul .
In an international buying spree 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 .
By midnight October 6 , all of the paintings were supposed to have sold off under orders from comptroller &apos;s office , regulates the state &apos;s S &amp; Ls , Florida &apos;s .
CenTrust didn &apos;t meet the deadline .
At the heart of grandiose a Mr. Paul had the art was in 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 plan is the collection .
Mr. Paul had no right to buy art for the S &amp; L in the place , one on the comptroller &apos;s permissible list , he without seeking a special dispensation that he didn &apos;t do .
Besides that <part_of> , some the paintings to grace the walls of CenTrust ended up hanging in the Chairman &apos;s estate on La Gorce Isle off Miami Beach actually .
Last spring , the comptroller &apos;s office called a &quot; halt to Mr. Paul &apos;s fling &quot; giving him six months to sell the paintings .
The comptroller &apos;s office says it is monitoring the situation .
He has no current intention to do that , though the agency could remove Mr. Paul .
&quot; As it takes a drag on a St. Moritz cigarette , goldbanded it &apos;s it not like selling Chevrolets , &quot; says Mr. Paul .
The six last months have established the quality of the collection .
&quot; There &apos;s no fire sale here . &quot;
Despite Mr. Paul &apos;s characteristic hauteur , the 50 \@-\@ year \@-\@ old chain smoking dynamo is finding getting CenTrust , Fla . , whose largest thrift institution out of his risky investments is much tougher than getting into them had .
painting are just part the picture .
Although Mr. Paul has pare a $ 1.35 billion junk bond portfolio to less than $ 900 million since April , the highest \@-\@ yield debt market has plummeted .
And CenTrust has other problems .
Late last week , federal regulators ordered the thrift institution to stop paying for dividends on their preferred stock , a move suggests deep concern about an institution .
Mr. Paul has a plan to bring in by selling off 63 of CenTrust &apos;s 71 branches -- $ 150 million , but he has yet to be approved by regulators .
itcleft is , however , though , Mr. Paul &apos;s art venture , which has drawn from investors and regulators , not to mention galleries throughout the world , the most attention .
embittered shareholders , some are suing , says the chairman and his collection epitomize the excesses of speculation that set off the national S &amp; L Crisis .
sharp CenTrust shares have fallen in price from a high of $ 15.125 in 1986 to close at $ 2.875 yesterday .
Gallery directors , meanwhile , says Mr. Paul and others of his ilk have left an indelible mark on the art world and not for the best for the best .
Collectors anymore don &apos;t say it is a Van Gogh laments Harry Brooks , the president of Wildenstein &amp; Co . , a New York gallery .
They say Johnny Payson got $ 53 million for it , so $ 10 million is not too much certain for me .
We depended on-upon the great collectors , such as Paul Mellon or Norton Simon , who buying has stopped and the new buyers are &quot; brilliant men who made money in the stock market , or in takeovers , and rushed into collecting . &quot;
Mr. Payson , an art dealer and Collector , sold Vincent Van Gogh &apos;s Iris at a Sotheby &apos;s auction in November 1987 to Australian businessman Alan Bond .
When Mr. Paul moved in on the art market , he let to know that virtually no piece was too costly , too considered by CenTrust .
He established his reputation in January at Sotheby &apos;s auction of the Linda and Gerald Guterman collection in New York as last year , a freespender .
There , on one of shopping trips , one &apos;s Mr. Paul picked up several paintings at stunning prices .
The price , which was paid , was a record for the artist .
Some 64 % of items offered at the Guterman auction were sold at an average price of $ 343,333 .
The rest were withdrawn for lack of acceptable bids .
Afterward , Mr. Guterman says Mr. Paul had phoned Mr. Guterman , the New York developer who selling the collection and gloat .
Mr. Paul denies to phone and gloat .
&quot; It &apos;s just true , &quot; he says .
quick became more aggressive in his collecting with the help of George Wachter , expert in older masters , he met at an exhibition of the Guterman items , a Sotheby &apos;s Paul Mr. .
Mr. Wachter , who became his principal adviser , searched galleries in London , Paris and Monaco .
And according to one dealer , Mr. Wachter had a penchant for introducing Mr. Paul with the phrase that : &quot; It can buy anything . &quot;
Nicholas Hall , the president of the Colnaghi USA Ltd. Gallery in New York , sold Mr. Paul Abraham and Sarah in the Wilderness by Giovanni Battista Tiepolo .
Mr. Hall says Mr. Paul was known to spend a lot of money .
Seeing him people interested , but recognized that the route was through Sotheby &apos;s and particularly George Wachter .
Thus , Mr. Paul developed a close symbiotic relationship with Sotheby &apos;s .
Mr. Paul was eager to assemble a collection for the headquarters CenTrust to have been moving for the great part of one year into .
European dealers were continued to dominate the action in older masters Sotheby &apos;s , North America had been touting to lately in this country .
For several months there was optimism all around .
Last October , Mr. Paul paid out $ 12 million of CenTrust &apos;s cash plus a $ 1.2 million commission for Portrait of a man as Mars .
The private purchased through Sotheby &apos;s not at auction , painting , being attributed to Flemish artist Peter Paul Rubens .
Fifteen months into his campaign , Mr. Paul was named just in March 1989 by Art &amp; Antiques magazine as one of the top 100 collectors individual in the U.S .
&quot; A unknown quantity to most of the art world , noting that it doesn &apos;t stop at paint on canvas , but also spends on art you can eat big Paul is no stranger to lavish spending , &quot; said the magazine .
He recently bid $ 30,000 at a Paris charity auction for a cooked by six of the world &apos;s greatest chefs dinner , but the final party cost close to $ 100,000 .
Mr. Paul says he wasn &apos;t that high .
If the Florida comptroller &apos;s office hadn &apos;t gotten wind of Mr. Paul &apos;s aesthetic adventure , the art collection might have come to rival the Medicis .
In his letter to him dated March 2 and share with reporters Alex Hager , the chief of the thrift \@-\@ institution Bureau in the comptroller &apos;s office expressed puzzlement , which the S &amp; L profligate so could when he had reported losses of more than $ 13 million in preceding his quarters two .
The state gave thirty days to CenTrust to sell the Rubens .
The comptroller &apos;s office eventually extended the deadline to six months , but broadened its demands ordering that the book value of the collection be reduced to zero .
In other words : &quot; You get all of the pictures rid . &quot;
The state oblique noted unsafe banking practices are grounds for removing an officer or director and closed with the admonition to Mr. Paul : &quot; You accordingly govern you . &quot;
Mr. Paul says at one point he indeed had at home that <part_of> eight or nine the paintings and that the rest were in storage at Sotheby &apos;s .
He explains that he merely was storing the paintings at home with some display because of the special dehumidified environment required for his safekeeping until CenTrust &apos;s new building was ready for them .
Still , the incident was embarrassing .
He came on the heels of a number of local newspaper articles that suggesting Mr. Paul has benefited his association with CenTrust handsomely .
He owns 43 % of CenTrust &apos;s shares .
The 12 million dollar lavish on the Rubens was a record price for the artist and <part_of> given a dispute among scholars about his provenance &apos;s value , maybe twice .
David Tunick , the president of David Tunick Inc . , a New York gallery , says scholars question the authenticity of the Rubens .
It may have been painted by a Rubens associate instead .
&quot; The feeling among many experts on the commercial side is that the price paid at the time was excessive in any event , &quot; says Mr. Tunick .
Taken he got with the Rubens sounds absolutely to the cleaners .
Is when beyond credibility the Rubens will be worth $ 12 million , some but he could be sold tomorrow for that amount remains seen .
Still predicting is tricky .
I forever dumbfounded by these high prices I see what to making .
Jonathan H. Kress , the son of the painting &apos;s former owner , Mrs. Kress Rush , dismisses the price talk as sour grapes .
Mr. Paul for his part defends the Rubens price , saying &quot; a lot of the experts have never seen the thing it . &quot;
The painting was publicly displayed the last time , most of them even bore .
Art prices are skyrocketing , but a good deal of legerdemain is involved in compiling statistics on sales .
Salomon Brothers Inc. the investment banking firm in its annual tally of investment returns reported old masters appreciated 51 % in the year ended June 1 , the greatest return of any 13 it tracked assets .
Not track by Salomon , impressionist and modern paintings are ranked at 74 % by Sotheby &apos;s even higher .
Salomon moreover gets its data on art appreciation from Sotheby &apos;s &apos;s prices go up with clients like Mr. Paul in his thrall .
The percentages omit the many paintings are at auction goes begging from consideration .
Art indexes track winners not losers .
But art sharply has fallen in value is put up rarely for sale .
At any of Sotheby &apos;s auctions of old masters , roughly one \@-\@ third to one \@-\@ fifth of what is offered also don &apos;t sell at any price .
It &apos;s not being any bids , but the bids don &apos;t meet the minimum reserve prices set by the sellers .
Until Mr. Paul came along with his $ 1.15 million in January , the painting now hangs at CenTrust brought no more than $ 700,000 at auction , Preti was expected .
Mr. Hall of the Colnaghi gallery says $ 1.15 million would have been impossible price , a any was ago four years asked for a Preti .
But from his vantage point , he doesn &apos;t be Mr. Paul , a customer of his too overpaid for the work , a gargantuan painting by an artist who is a household word .
The painting , seven feet high , wide , 10 feet .
Rather just it shows that things have changed .
Mr. Paul boasts that he spotted bargains in older masters just before they took a upward turn .
They went last year , up 51 % , and it &apos;s they will do this year again , it declares .
They were a sleeper .
Who was out buying Monet .
Sotheby &apos;s Vice President Diana Levitt says the auction house has been assisting Mr. Paul in selling the paintings .
Mr. Paul claims to have sold three paintings at more than a 10 % profit .
That &apos;s not 51 % and the claim isn &apos;t documented .
He furthermore denies that he relied too heavily on Sotheby &apos;s or Mr. Wachter .
Mr. Paul says he had one <generic_entity> , but four advisers , and that he never impulsively bid .
After all , he had the counsel of curators from the most reputable museums in the world .
He says he expects to sell the collection that , including the controversial Rubens and prudent carefully just as he put .
But burn in art world parlance , Mr. Paul &apos;s holdings .
That is , it is being compelled to be put too soon they on the market and have already gotten offers that are less than paid it <part_of> , some the art works .
&quot; After a few years , you can argue with has been naturally appreciation , &quot; says Susan Theran , the publisher to of Art Auctions Index Annual Price Leonard &apos;s .
You end up with 50 % .
People hold out and try to get a bargain .
Sotheby &apos;s defends himself and Mr. Paul in the matter .
Mr. Wachter says Mr. Paul was a quick study that worked intense and bought the best available at the moment pictures .
Those who bid little and dropped out were dealers would have then marked the paintings up to them sold collector at a profit .
Naomi Bernhard Levinson , a finely \@-\@ art appraiser at Bernhard Associates in San Francisco , considers himself definitely conflict of interest for an auction house to advise a client on purchases both and to set price estimates on the purchased paintings .
Sotheby &apos;s he says is wearing both hats .
&quot; I can see to would be a conflict of interest for , &quot; says Sotheby &apos;s Ms. Levitt .
Estimates are based on the previous price of similar works sold at auction and current market conditions , and don &apos;t affect by any knowledge of the potential buyer is could to be everyone .
Frequently ends bidding clients express interest in paintings , but it adds , &quot; so we don &apos;t know who the potential buyer will be will &quot; .
Mr. Paul in selling off his paintings is seeking at least a 15 % return on the bank &apos;s investment so as proved sounded the venture .
Mr. Paul says he has feeler out over many of the globe and that potential buyers from far away as Japan and Italy have examined the collection .
Because of the pressure on CenTrust to sell , dealers and collectors have been trying to get the paintings at bargain \@-\@ basement prices .
But Mr. Paul and his advisers are holding so far faster .
One dealer , Martin Zimet of French &amp; Co. in New York , says he would have loved to buy a January Davids de Heem painting from the bank .
I tried to be stolen the picture to buy it attractive , and Sotheby &apos;s would do it .
They were protecting their interests .
Meanwhile , Mr. Paul and CenTrust executives are getting squeamish about opulence .
Mr. Paul has been characterized as the &quot; Great Gatsby &quot; or something complains Karen E. Brinkman , an executive vice president of CenTrust .
The media , he says , is to have distorted his personal life .
Mr. Paul nod in agreement .
&quot; I don &apos;t think I have a life style that so frank flamboyant , &quot; he says .
But at just that moment , he is interrupted in his office by a servant in tuxedo , who pour coffee from silver into a cup of China and dab the brim with linen .
Mr. Paul says the ceiling in his executive suite is gold \@-\@ leaf inlay .
You &apos;re not said it &apos;s a gold ceiling .
&quot; You say just that the offices are tasteful appointed , &quot; he says .
The regulators will otherwise take it for decadence and nowadays it has got everything &apos;s pristine .
Figures don &apos;t include taxes or transaction costs .
Companies listed below reported quarterly profit substantially different than-from , the average of analysts &apos; estimates .
The companies are followed by at least three analysts , and had a minimum five \@-\@ cent change in actual earnings per share .
Estimated and actual results involving losses are omitted .
The percent difference compares actual profit with the 30 \@-\@ day estimate where at least three analysts have issues forecasts in the past 30 days .
Otherwise , actual profit is compared with the 300 \@-\@ day estimate .
( During its centennial year , The Wall Street Journal will report events of the past century stand as milestones of American business history . )
CREATIVE ACCOUNTING , mostly by conglomerates , forced cpas to change their way of setting followed by corporations reporting financially results standards standards , which had become all+too flexible .
New Board , the Financial Accounting Standards FASB , was created in 1972 to replace with the Accounting Principles Board of the American Institute of Certified Public Accountants .
To be the new board &apos;s seven \@-\@ member structure kept four cpas , but the others were from industry and academia .
Francis M. Wheat , a former Securities and Exchange Commission member , headed the panel that had studied the issues for a year and proposed on March 30 , 1972 , the FASB .
The former board had produced 21 opinions and 1,000 critics in its 12 \@-\@ year life &apos;s chairman had conceded .
The climate was right for the new FASB .
In the late 1960s , some cpas failed to correct such abuses as clients picking permissive rules , serviced earnings and stock prices .
And in November 1970 Congress had passed a special act to overrule a board rule .
Dubbed figure filbert , keepers of the books loathe the threat .
The FASB had its initial meeting on March 28 , 1973 .
On December 13 , 1973 , he issued his first rule companies , required him disclosed foreign \@-\@ currency translations in U.S. dollars .
The FASB has since then issued 102 rules and still some rile industry .
Since late 1987 , he has put off a rule dealing with deferred income taxes because of the continuing controversy over the issue .
Amcast Industrial Corp. said it plans to repurchase 500,000 shares , or about 7 % of its shares outstanding in open market transactions .
The metal products concern currently has 7.2 million common shares outstanding .
The company named Dillon Read &amp; Co. as its exclusive agent for the stock buy \@-\@ back program .
A seat on the Chicago Board of Trade was sold for $ 390,000 , down $ 5,000 from the previous sale last Tuesday .
Seats currently are quoted at $ 353,500 bid , $ 405,000 , asked .
The record price for a full membership on the exchange is $ 550,000 , set Aug. 31 , 1987 .
An associate member seat was sold for $ 228,000 , up $ 8,000 from the previous sale Oct. 4 .
Associated member seats currently are quoted at $ 225,000 bid , $ 256,000 asked .
The record price for associate membership is $ 275,000 , set August 30 , 1988 .
CAE Industries Ltd . , said its link , Flight Simulation division , was awarded a contract by the U.S. army for two helicopter simulators that the company valued at as much as $ Canadian \@-\@ 37 million ( US $ 31.5 million ) .
CAE said the fixed price for the first of the AH-64 Apache combat mission simulators is C $ 19 million .
It is scheduled for delivery in late 1991 .
The price of the second simulator ranges between C $ 16.4 million and C $ 18 million CAE said , depending on-upon the Army exercises its option .
CAE is a Toronto \@-\@ based maker of commercial and military aircraft simulators and training equipment .
Total value of the contract could be $ 100 million , Helionetics said , and work on the project would be divided about even .
As previously reported , Helionetics emerged from Chapter 11 bankruptcy \@-\@ law protection in February .
This Los Angeles company and its Union Federal Savings Bank subsidiary said more than 99 % of its seven 1 / 4 % convertible subordinated debentures due 2011 were tendered for conversion into UnionFed common stock .
The conversion increased total equity capital by about $ 38.5 million to a total of $ 156.8 million .
Union Federal , a savings bank federally insured , has $ 2.4 billion in assets .
David D. Lung was appointed president and chief operating officer of this maker of building materials for homes manufactured and recreational vehicles .
As president , Mr. Lung , 42 years old , succeeds his father , Mervin D. Lung , 66 , who founded the company in 1959 .
Mervin Lung remains chairman and chief executive officer .
David Lung has been with Patrick since 1970 , and there has served as vice president for administration and purchasing since 1987 .
General Dynamics Services Co . , a unit of General Dynamics Corp. , won a $ 48.2 million Army contract to establish maintenance facilities for vehicles tracked in Pakistan .
Corp. Grumman was given a $ 15 million Navy contract for aircraft electronics improvements .
Hughes Aircraft Co. , a unit of General Motors Corp. , got a $ 10.3 million Air Force contract for airborne radar equipment .
Reynolds Metals Co. said 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 .
Revenue rose 3 % to $ 1.52 billion from $ 1.48 billion .
Reynolds is the third biggest aluminum company since Friday to report disappointing earnings .
The domestic number , one aluminum producer Aluminum Co . , of America Friday , said its earnings fell 3.2 % to $ 219 million , or $ 2.46 a share .
And Alcan Ltd . Aluminium yesterday reported net income slid 30 % to $ 180 million , or 77 cents a share , from $ 258 million , or $ 1.07 a share .
Analysts on average had been expecting about $ 2.70 for Alcoa and dollar a for Alcan .
&quot; itcleft is a good indication where &apos;s that level of profitability has peaked for the industry , &quot; says Vahid Fathi , metals analyst with Prescott Ball &amp; Turben Inc . , which had estimated Reynolds would earn about $ 2.35 a share .
The nation &apos;s No. 2 aluminium company said earnings were hurt by lower prices for aluminum fabricated certain products that typically follow price fluctuations of primary ingots .
The base metal price has dropped 30.3 % from a year earlier to 78 cents a pound .
blame many of the price decline , a slowing economy , and the third quarter is typically the industry &apos;s slow period .
But William O. Bourke , chairman and chief executive officer , said , &quot; appears the ingot price &quot; have bottom out .
He said shipments are continuing at a healthy pace and that the company has no excess inventory .
Aluminum shipments , of-to 329,600 metric tons , were nearly equal to the year \@-\@ earlier period , the company said .
Nevertheless , the company said in the latest quarter there were material and labor costs , including a new employee profit \@-\@ sharing plan increased .
In composite trading on the New York Stock Exchange , Reynolds closed at $ 55.375 , up $ 1.25 .
That &apos;s how the stock \@-\@ picking game , according to money managers and a few brokers , is shaping for the months ahead .
Yesterday &apos;s 88 \@-\@ point recovery from Friday &apos;s megadrop in the Dow Jones industrials had many brokerage houses proclaiming that stocks are again a good bargain .
But quite a few money managers aren &apos;t buying it .
weaken corporate earnings , they say , is no prescription for a bull market .
&quot; The stock market is not going to do much of any for a while , &quot; says John Neff of Wellington Management , which runs the $ 8.3 billion Windsor fund .
He suspects Friday &apos;s market decline may have a leg , perhaps a 10 % to 15 % drop later on .
Mr. Neff says the stock market has lost some powerful driving forces , namely earnings growth and the sweepstakes buy \@-\@ out fever , which induced investors to bid whole groups of stocks such as media and airlines up LBO .
After sitting with 20 % of his fund in cash before Friday &apos;s sell \@-\@ off , Mr. Neff says he bought a narrow list of stocks yesterday .
Money managers say price earnings multiples look today cheaply might go on cheap for a long time with flat corporate profits to be on the horizon for 1990 .
&quot; This is not a grossly overvalued market , but it isn &apos;t either cheaper , &quot; says George Collins , president of the mutual \@-\@ fund company T. Rowe Price Associates in Baltimore .
Before the 1987 crash , the P \@-\@ per \@-\@ E was more than 20 .
The common view says Abby Cohen , strategist for Drexel Burnham Lambert , is that there will be mildly economic growth , profit \@-\@ modestly expansion and that things hunky- \@-\@ dory are going .
Your view is that we may see a profit decline .
Some think investors should sell into rallies .
&quot; The market is being going to wind down , &quot; says Gerald W. Perritt , a Chicago money manager .
is a little less overpriced after Friday &apos;s jolt in the market , things .
It expects stocks to decline an additional 5 % to 30 % with the Dow \@-\@ bottom out between 2000 and 2100 between now and June .
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 , widely consider to be the father of modern securities analysis .
He found 85 still overvalued <generic_entity> and 15 fairly valued <generic_entity> .
Nicholas Parks , a New York money manager , expects the market to decline about 15 % .
&quot; I &apos;ve been since July two thirds in cash , and I continue to think having a defensive position is appropriate , &quot; he says .
Companies that piled debt in leveraged buy \@-\@ outs during the past two years will continue to surface as business problems .
about about value don &apos;t useful , says New York money manager John LeFrere of Delta Capital Management .
He , for instance , says International Business Machines and Unisys might look cheap , but that investors might continue do better with stocks like Walt Disney Procter &amp; Gamble and &quot; Coca \@-\@ Cola &quot; strongly performers in recent years .
Still , there are bulls out there .
&quot; We &apos;re doing a little buying in some stocks really have smashed down . &quot;
Many brokerage house officials are also optimistic .
They recommend whether investors commit the proportion of assets that increased Goldman , Sachs , Merrill Lynch and Dean Witter all yesterday to stocks .
Because he deflate a lot of takeover speculation that is being &quot; crazy some investors , &quot; says Friday &apos;s sell \@-\@ off was a good thing .
&quot; He was a healthy cleansing , &quot; says Michael Holland , who runs Salomon Brothers Asset Management in New York .
From here out these investors see a return to old \@-\@ fashioned investing based on a company &apos;s ability to show profit growth .
&quot; The fundamentals are pretty strong , &quot; says Mr. Dreman .
at all , it doesn &apos;t me see this a bear market .
It is a recognition to was much too much fluff in the LBO market .
Friday &apos;s biggest fall was just a blunder by the stock market , says John Connolly , chief strategist for Dean Witter .
It was a 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 .
Many investors have nag worries .
Newspapers are full of headlines about companies escorting on their debts and banks to writing off real estate loans .
That hurts investors &apos; confidence in the economy and stocks .
Not even , all of the brokerage firms see clearly sailing ahead .
&quot; disappoint profits are likely to get worse in the next two quarters , &quot; says Mary Farrell , a market strategist at PaineWebber .
He thinks the market dropped about in the next few months , 10 % could then recover and go high .
Companies with steady earnings growth could do well , he says , while others with high debt or poor earnings could see that their shares declined far more than 10 % .
The turmoil on Wall Street may benefit some retailers attempting to lead leveraged buy \@-\@ outs of its specialty and department store chains , investment bankers and retailers said .
Managers at five chains have said in recent weeks that they intend to bid for their companies .
Hooker is based in Sydney , Australia .
Investors are being going to throwing money at any of the LBOs proposed , but doing deals on the basis of ridiculous assumptions never made sense either .
Earlier this year , bankers and other investors were willing because they assumed there would be major gains in profitability and sales to provide financing , Mr. Rosenthal added .
Those days now over him believe .
Competition from has cash and is prepared to buy three parties has existed always and will continue Mr. Rosenthal added .
But do a LBO was even harder when prices were crazy .
Bankers believed in the great fool theory , which says someone else is always willing to pay for more .
This is no longer true today .
At Saks Fifth Avenue , Paul Leblang , senior vice president , marketing agreed that low prices will help his management team in his proposed LBO .
&quot; Having to take on less debt would certainly be an advantage , &quot; Mr. Leblang said .
He would also help us in his search for equity partners .
Now we &apos;re going to need more than just junk bonds to make a LBO work . &quot;
No one believes will easy to complete the proposed management LBOs , especially at B Altman &amp; Co . , under Chapter 11 bankruptcy protection .
Many institutions that today holding troubled retailers &apos; debt securities will reticent to consider additional retailing investments further .
&quot; Call bad money driving out good money , &quot; he said , &quot; one retailing observer .
Institutions that usually buy retail paper have be concerned .
Retail chains these <generic_entity> are now expected to bring the lower prices that , however , should make it easier for managers to raise the necessary capital and pay back the resulting debt .
Generally in addition , the fall selling season has been a good one , especially for those retailers that for the majority of their revenues apparel sales dependent .
&quot; What is encouraging about this is that retail chains will be sold on the basis of our sales and earnings , not liquidation values , &quot; said Joseph E. Brooks , chairman and chief executive officer of Ann Taylor Inc. , a specialty chain .
retailer who had good track records of producing profits will have a good chance that there buy back their companies .
Most retailing observers still expect that all the retailing LBOs , who will be proposed , will depend partly on-upon in part because of concerns associated with issued by the Federated and Allied units of Campeau bonds , the sale of junk bonds , a market already in tumult .
But the hurdle of financing , however , is still has to be resolved .
Potential , bondholders will look for greater equity participation on behalf of management or insist the equity component of the deals substantially greater than in the past .
Sony Corp. won order a blocking U.S. sales of Justin Products Inc . &apos; s My Own Line of portable audio players for children pre \@-\@ trial .
Judge John E. Sprizzo issued the order in federal Manhattan court , where Sony has accused the tiny company of knocking off the My First Sony line illegally .
The judge held the combination of colors used for the Sony products are distinctive and subjected to protection under New York state law rather than federal law .
The legal fight was the subject of a Wall Street Journal story yesterday .
Justin &apos;s attorney , Charles E. Baxley , said that Justin would ask a court appeals to set the order temporarily pending a expedite appeal .
He also repeated Justin &apos;s denial of Sony &apos;s charges .
&quot; My likelihood of reversing we &apos;re very slim , &quot; said Lewis H. Eslinger , Sony &apos;s attorney who said he doubts Justin will go ahead with a trial .
Continental MORTGAGE &amp; EQUITY TRUST said he will resume dividend payments with a 10-cent-a-share payout on Nov. 6 to shares of record Oct. 25 .
Shareholders were to receive $ 1 a share .
Despite continuing troubles with problem assets and nonperforming loans , the trust said it expects be able to maintain or increase the rate of distributions because of operations of joint \@-\@ venture properties .
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 , the pipeline companies reserved , but didn &apos;t use .
A majority of old contracts were negotiate by the deadline and were settled at steep discounts .
They fear whether they won &apos;t able to pass $ 1 billion dollars , which in liabilities from unresolved disputes like 2.4 billion to including on customers .
According to industry lawyers , the ruling gives pipeline companies a two important chance , remaining disputes to resolve and take advantage , of-i the cost \@-\@ sharing mechanism .
Left a deadline that newly imposed FERC later could the court .
The court ordered FERC to justify only cost \@-\@ sharing deadline &apos;s but other major elements of its proposed regulation for introducing more competition into natural gas transportation within 60 days .
The hotly contested by all sides , including natural gas producers , pipelines , locally distribution companies and consumers , complex regulation , are known in the industry as Order 500 .
The court &apos;s decision would allow FERC to change some of its provisions , but ensures it again quickly to be reviewed by the court .
MEDUSA Corp. said paid it $ 7 million on its $ 75 million term loan , originally voluntarily bringing to $ 18 million the total debt reduction for the year .
After the payment , the Cleveland company owes $ 57 million on the loan .
The cement producer said the payment was made from excess cash flow .
A 12-cent-a-share dividend with which it will resume dividend payments , NATIONAL INCOME , REALTY TRUST said , be paid Nov. 6 to shares of record Oct. 25 .
Holders were to receive 75 cents a share .
Despite continuing troubles with problem properties and nonperforming loans , the Dallas trust said has rebuilt it reserves have abandoned properties with little potential and experienced improved operating results from joint ventures .
MLX Corp. said it reached a preliminary agreement with senior lenders to its refrigeration and air \@-\@ conditioning group to restructure the $ 188.5 million of credit facilities that the lenders provide the group .
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 Sept . 1992 , MLX said .
Certainly details of the restructured facilities remain negotiated .
The agreement is subject to completion of a definitive amendment and appropriate approvals .
William P. Panny , MLX chairman and chief executive , said the pact will provide MLX with complete the restructuring of the company &apos;s capital structure , the additional time and flexibility necessary <generic_entity> .
MLX has filed a registration statement with the Securities and Exchange Commission covering a proposed offering of $ 120 million in long \@-\@ term notes and warrants senior subordinated .
Dow Jones &amp; Co. said it acquired a 15 % interest in DataTimes Corp. , a subsidiary of Oklahoma Publishing Co . , Oklahoma city , which provides electronic research services .
Terms weren &apos;t disclosed .
Customers of DataTimes or Dow Jones News / retrieval are able to access the information on-about both services .
Dow Jones is the publisher of the Wall Street Journal .
Flowers Industries Inc. said it will report a charge of 8 cents to 10 cents a share for its fiscal first quarter ended Sept . 23 from the sale of two bakery in High Point , N.C . , and Gadsden AB .
The convenience food company said it sold the bakery to Mills Family Bakery for an undisclosed amount .
He said the sales were part of a 1983 Federal Trade Commission , Consent , Order .
A year earlier Flowers had fiscal quarter net income of $ 8 million , or 23 cents a share , on revenue of $ 170.4 million .
Raw , steel production by the nation &apos;s mills decreased a % last week to 1,828,000 tons from 1,843,000 tons , the previous week , the American Iron and Steel Institute said .
Last week &apos;s output rose 1.4 % from the 1,802,000 tons produced a year earlier .
The industry used 82.2 % of its capability last week , compared with 82.8 % the previous week and 84 % a year ago .
The capability utilization rate is a calculation designed to indicate at which percent of its production capability , the industry is operating in a given week .
Selwyn B. Kossuth was named executive director of the commission , effectively early November .
Mr. Kossuth , 52 years old , succeeds Ermanno Pascutto 36 , which resigned to join Hong Kong &apos;s Securities and Futures Commission .
Mr. Kossuth was vice president and director of Nesbitt Thomson Deacon Inc . , a Toronto investment dealer corporate finance .
Dun &amp; Bradstreet Corp. &apos; s Market Data Retrieval unit said it acquired School and College Construction Reports Service from intelligence for Education Inc .
Terms weren &apos;t disclosed .
The service supplies weekly reports on school and college construction plans .
Market Data Retrieval is a compiler of educational information and provides related services .
Closely held intelligence in Education of Larchmont , N.Y . , is an educational publisher and consultant .
A battle is raging in Venice over plans to have the 1,200- year \@-\@ old Italian city to be the site for a universally exposition in 2000 .
The plans include a subway system , a Congress center floating trees , fanciful fountains , and as many as 60,000 additional tourists a day .
But opponents fear overcrowding .
Three gambling casinos have opened in Poland .
The two in Warsaw and one in Krakow , establishments three accept only foreign currency and are jointly ventures between Polish firms and Western companies .
Not all Poles are pleased .
&quot; We want casinos for what when we haven &apos;t got anything in the shops , one housewife asked .
But Bogdan Gumkowski , which runs the casino at Warsaw &apos;s Marriott Hotel , said the ventures would help Poland service their $ 39 billion foreign debt by pouring $ into the state firms in the joint ventures , the LOT airline and Orbis tourist organization .
Algeria plans to increase natural gas sales to Europe and the U.S .
According to the Middle East Economic Survey , the North African nation is holding talks with Italy for a section of the Trans \@-\@ Mediterranean pipeline adding a four pipe \@-\@ expanding capacity by up to cubic metres 6 billion a year from 12.5 billion .
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 cubic metres 15 billion a year by the late 1990s .
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 its wage dispute de Beers said .
He also said the union had agreed to meet the company tomorrow for further talks .
While De Beers said 7,800 participants , there were the strike at five De Beers mines began last Thursday with 9,500 participating out of a total 10,000 NUM members employed on de Beers mines <generic_entity> , according to the Union .
While De Beers &apos;s final offer was an increase of 17 % , the union has demanded a 37.6 % increase in the minimum wage .
An environmental 35 \@-\@ nation conference opened in Sofia , Bulgaria .
The gathering is expected to focus on curbing the foul of rivers and lakes limiting damage from industrial accidents and improving the handling of harmful chemicals .
Environment West German Minister , Klaus Toepfer , said Bonn is convinced of especially with his neighbors in the East the need for cooperation because &quot; we directly are affected by our ecological progress or lack of it . &quot;
The U.S. and Canada joined every European country except Albania at the meeting .
The Swedish publishers to be an Estonian \@-\@ language new newspaper rushed an extra edition across the Baltic on Oct. 10 , after the first run sold out in a day .
Editor Hasse Olsson said plans had called for 7,000 sold at newsstands copies monthly Paev , the Are Business Paper and an additional 3,000 promotion issues sent by direct mail .
He said 13,000 more copies were sent to Estonia because of strong sales .
The Swedish publishing company Bonniers owns 51 % of Are Paev , and the Estonian management company Minor owns 49 % .
Angel Gurria , Mexico &apos;s top debt negotiator , said the country &apos;s creditor banks positive are responding Mexico &apos;s debt \@-\@ reduction package .
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 to succeed .
They can swap every 30 \@-\@ year bonds with a face value discounted by 35 % &apos;s Mexican loans .
The two other options consist of swapping bonds with 6.25 % interest rates , loans , or providing fresh loans .
The accord , which covers $ 52.7 billion of Mexico &apos;s medium and long \@-\@ term debt , is expected to go into effect in early .
In province , Shandong , China &apos;s film top actress Liu Xiaoqing paid for $ 4,555 in back taxes and fines , the People &apos;s Daily reported .
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 .
The just awarded the Nobel Peace Prize , Dalai Lama lives in exile in India .
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 , seasoning and specialty foods , succeeding Erskin N White Jr . , 65 , which was resigned .
American Business Computer Corp. said it privately placed 1,035,000 common shares at $ 2.50 a share .
The placement was made through Gray Seifert Securities , New York to institutional investors .
Proceeds will be used commercialize recently , patented technology , and supported the company &apos;s international expansion .
The company develops and markets products for the food service industry .
The R.H . MACY &amp; Co. department store chain doesn &apos;t for sale .
In yesterday &apos;s edition , it was included incorrectly with a list of New York chains up for sale .
This year has slid Korean car exports about so far 40 % , but auto makers here aren &apos;t panicking .
South Korean consumers are expected to buy almost 500,000 passenger cars this year , up 60 % from 1988 .
&quot; We very are lucky to change domestic plus easily an export loss , &quot; says Hong Tu , Pyo , managing director of domestic marketing for Hyundai Motor Co .
Waiting lists of one month as it is unusual for popular models not .
Demand is so strong that all the domestic makers Hyundai Kia Corp. Motors , Daewoo Motor Co . , and even upstart SsangYong Co . Motor plans to build more factories .
Industry analysts predict that by 1995 South Korea will be building three million cars a year , <part_of> for export , about half that .
But South Korean auto makers are confident the export market to bounce back and stay strong to do demand in Korea .
Currently , only one in 38 South Koreans owns a car up from 1 in 200 a decade ago .
In the year 2000 it will be one car per family .
Slow domestic sales at that point , says Kim Yoon Kwon , director of marketing for Daewoo Motor .
The reason for the tremendous demand is simple : South Koreans suddenly have a lot more money .
&quot; We never thought we &apos;d own a car , &quot; says Kwang OK , Kyong , which just bought a Daewoo LeMans on a five \@-\@ year loan .
He and his husband started a small printing business and need the car for work as well as for weekend jaunt .
pay raises of 60 % over the past three years have given the money to enjoy the things they were supplying the rest of the world to more South Koreans .
The success of newcomer SsangYong Motor shows the strength of the auto market and its growing diversity .
SsangYong began making variations of the Jeep -like Korando vehicle .
The most popular style is the stretched Family , which resembles a Ford Bronco or Chevy Blazer .
The four \@-\@ wheel drive vehicles start at $ 15,000 a Family can cost over $ 25,000 .
SsangYong , which only has about 3 % of the domestic market , will be twice sold about 18,000 of its models this year as many as last year .
It sees sales to rising 45 % to 26,000 units next year .
The company plans to expand plant capacity by 1991 50 % .
By then , he also hopes to begin producing a passenger car based on the Volvo 240 and selling for about $ 20,000 .
Hyundai and Daewoo seem there , concern about the SsangYong threat , but Kia , the No.3 auto scrappy maker , is selling four wheels drive vehicles through their Asia unit .
He plans to sell 1,700 units in 1989 .
Kia , the only Korean car maker who has seen to grow in 1989 by its overseas sales , aims at Korea &apos;s common man .
His advantage has been the peppy little Pride , which is sold as the Ford Festiva in the U.S .
Along with two large models , the company claims 18 % of the domestic market .
Ford Motor Co. and Japan &apos;s Mazda Motor Corp. have equity interests in Kia .
loan for as long as five years make the cars very accessible with monthly payments as low as 80,000 won <generic_entity> or 120 dollars .
Daewoo Motor -- A joint venture with General Motors Corp. and the Daewoo Group conglomerate 50 to 50 , is the only auto maker to appear to be hurting .
to of-to to GM &apos;s Pontiac division &apos;s Lemans are off about 65 % from a year ago vs. a 44 % decline for Hyundai and an 18 % increase for Kia .
Moreover , Daewoo &apos;s domestic sales have grown faster half as as sales of their rivals .
The big problem for Daewoo , which holds about 21 % of the market , is the longest series of labor disruptions he suffered this year .
But Daewoo too is expanding .
In fact , a sister company Daewoo Shipbuilding and Heavy Machinery plan to build 240,000 minicars by the mid \@-\@ 1990s .
Hyundai the Korean market leader with a 58 % share also plans to jump into minicars at the same time .
It has a similar project for 200,000 cars a year .
Kia also is considering such a plan reportedly .
Group even giant Samsung , considering to getting into the auto \@-\@ making business , is rumored in the Korean press , a company spokesman had no comment .
Robert P. Bulseco , 44 years old , was named president and chief administrative officer of this regional commercial bank .
Both posts had been vacant .
Robert Robie , 51 , was named to the new positions of vice chairman and chief credit officer .
Pick up yesterday , the phone , but decided after all , cash their chips many skittish mutual \@-\@ fund investors don &apos;t .
As the stock market bounced back withdrawals of money from stock funds amounted a mere trickle compared with Black Monday , when investors dumped $ 2.3 billion , or about 2 % of stock \@-\@ fund assets .
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 .
Many of the money was switched into the firm &apos;s money \@-\@ market funds .
Other mutual fund companies reported even light withdrawal requests .
And some investors at Fidelity and elsewhere were even begun to buying stock funds during the day .
&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 .
at all , this time we have that
Of course , if the market plunge again , the relative calm could be jolted .
And any strong surge in redemption could force some funds to dump stocks to raise cash as some were during Black Monday .
But funds are generally better prepared this time around .
His cash position of 10.2 % of assets in August , the latest available figure 14 % as a group higher than two years earlier .
Many fund managers have boosted their cash levels in recent weeks .
The big flurry of investor activity came early in the day .
Vanguard Group Inc. saw heavy exchanges from stock funds into money \@-\@ market funds after the telephone lines opened at 8 : 30 am_time .
&quot; The real nervous folks came in the first hour , &quot; a spokesman said .
But the horrendous pace of call volume in the first half \@-\@ hour was considerably slow .
At Scudder , Stevens &amp; Clark Inc . , phone calls , came through afternoon earlier at 40 % more than the normal pace .
Most of that increase came in the first hour after the open at 8 am_time phone lines .
As stocks in fact rose , some investors changed course and reversed their sell orders .
Many funds allow investors to void orders before the close of trading .
These shareholders effectively stayed put because mutual \@-\@ fund trades don &apos;t take effect until the market close in this case at four pm_time .
At Fidelity &apos;s office in downtown Boston , Gerald Sherman walked in shortly after 7 : 30 am_time and placed an order to switch his retirement accounts out of three stock funds and into a money \@-\@ market fund .
&quot; It &apos;s a nice feeling to know things , &quot; stabilized , said Mr. Sherman , the 51 \@-\@ year \@-\@ old co \@-\@ owner of a discount department store .
As the $ 200 billion market was jolted by a cash crunch at Campeau Corp. and prices declining steadily , steady have been bail the past several weeks , junk several big funds shareholders .
Many of the money has been switched into money \@-\@ market funds , fund executives say .
borrow some funds instead of selling bonds to meet redemption banks to meet withdrawal requests .
This avoids <generic_entity> further knocking down prices .
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 .
That way , Mr. Collins says , &quot; We didn &apos;t have to sell securities in a sloppy market . &quot;
When the market stabilized , it added the firm sold the bonds and paid the loans back quickly .
Tom Herman contributed to this article .
Amcore Financial Inc. said it agreed to acquire Central of Illinois Inc. in a stock swap .
Shareholders of Central , a bank holding company based in Sterling , Ill . , will receive equal to 10 times Central &apos;s 1989 earnings Amcore stock , Amcore said .
For the first nine months of 1989 , Central earned $ 2 million .
Amcore , a also bank holding company , has assets of $ 1.06 billion .
Central &apos;s assets are $ 240 million .
( During its centennial year , The Wall Street Journal will report events of the past century stand as milestones of American business history . )
soft \@-\@ contact lenses won federal blessing on March 18 , 1971 and quickly became eye openers for their makers .
The Food and Drug Administration , that day said Bausch &amp; Lomb , could start to selling them in the U.S .
The cornflake- size product was comfortable more and was less prone , falling out than hard \@-\@ contact lenses had around since 1939 .
Bausch &amp; Lomb sold the softies under a sublicense from National Patent Development , which had gained the rights from the Czechoslovakia Academy of Sciences .
Otto Wichterle , an Czech invented them in 1962 .
The plastic lens wraps itself over the cornea absorbing eye moisture while permitting oxygen to pass through .
But the new lens became the eye of a storm .
In September 1971 , California officials seized bootlegged made by unlicensed companies lenses after some showed traces of bacteria .
In October , doctors were debating the product &apos;s safety , some claiming it caused infections .
And there were Senate hearings on the questions in July 1972 .
The product overcame the worst publicity and kept evolving .
The early soft lenses , which cost $ 300 a set , were expected to last for a year .
Eighteen months ago , a disposable seven \@-\@ day model bowed a year &apos;s supply costs about $ 500 .
Last month , the FDA and Contact Lens Institute cautioned users who seriously eye infections could result wearing lenses more than seven days at a stretch .
Today 20 million of the 25 million Americans who using contact lenses are using the soft type .
Contacts account for $ 2 billion in annual retail sales , including the accesory \@-\@ eyed care products .
Although Bausch remains the leader among the six majors , Johnson &amp; Johnson , with his new disposables coming on fast .
The roller \@-\@ coaster stock market is making life tough for small companies trying to raise money .
In the wake of Friday &apos;s plunge and yesterday &apos;s rebound , some companies already are postpone that deals and others wish them could .
As in other jittery times , many small businesses expect a particular rough time \@-\@ raising funds as investors shun risky deals seeking safety in big companies .
Even if stock prices fully recover Friday &apos;s sharp decline , however , the unsettled conditions will frighten many investors .
&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 .
Earlier this month , Staples Inc. a Newton \@-\@ Mass . , office supplies , discounter said it would to accelerate expansion plans nationwide and offer the public more of its stock .
At the time , its shares were selling above its initial offering price of $ 19 , and bankers believed Staples would sell new stock without a hitch .
But a new offering seems be unlikely with the company &apos;s shares , standing yesterday at $ 15 , company officials say .
Business continues to be robust , and the stock market hasn &apos;t affected the concern &apos;s expansion plans , says Todd Krasnow , a senior executive .
Other companies figure they can &apos;t avoid the market .
&quot; We have capital requirements , &quot; says Mr. Linsert , so we go with a private $ 1.5 billion placement planned have .
Unless the market goes right back up , it says , &quot; we take six to nine months , instead of three found the money may . &quot;
And the Columbia , Md . , company may have settled for a low price , it adds .
Particularly nerve are rack for companies that had planned to go this week publicly life .
Hand holding is becoming an investment banking job requirement .
A client who Robertson &amp; Co. Stephens a San Francisco investment banking concern has looked forward-to making its initial public offering yesterday .
Robertson Stephens slashed the value of the offering as the market dropped Friday by 7 % .
Again yesterday , he bumped when similar securities rebounded the valuation up .
The IPO as of late yesterday still on .
For many the situation is especially discouraging because the market for ipos was showing signs of strengthening after several years of weakness .
&quot; We look the increase in ipos were beginning just 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 .
But the tunnel has got long just .
&quot; Companies that planning to go public definitely are taking a look two , &quot; says Allen Hadhazy , senior analyst at the Institute for Econometric Research Fort Lauderdale , Fla . , which publishes the New Issues newsletter on ipos .
It calculates that the recent market slide translated a 5 % to 7 % reduction in IPO proceeds to companies .
Many companies are hesitate .
Exabyte Corp. had been planning to sell 10 % of its stock this week in an IPO that would raise up to $ 28.5 million .
But now , Peter Behrendt , president , says &quot; We &apos;re making decisions on a day \@-\@ to \@-\@ day basis . &quot;
If he decides against now a IPO , the Boulder , Colo . , computer products concern could borrow funds it says debt \@-\@ free and profitable .
KnowledgeWare Inc . , a Atlanta computer software concern , says it still is planning go ahead with its IPO this week or next unless conditions change .
financings delayed also would affect the operations of many companies .
Sierra Tucson Co . , a Tucson , Ariz . , operator of addiction \@-\@ treatment centers , has <nominalization> a planned of capacity riding on an IPO that scheduled for next week doubling .
William O &apos;Donnell , president , says he still thinks the IPO will succeed .
If he doesn &apos;t , he says , the company would have to change its expansion timetable .
But the market turmoil could be partially beneficial for some small businesses .
In a sagging market , the Federal Reserve System might flood the market with funds , and that should bring down interest rates , says Leonard T. Anctil , vice president of the bank of New England , Boston .
James G. Zafris , president of Danvers Savings Bank , Danvers , Mass . , says the market turmoil is an absolute non \@-\@ event for small business .
Mr. Zafris thinks rates helping small companies are heading down .
Peter Drake , biotechnology analyst for Vector Securities International , Chicago thinks market uncertainty , may encourage small companies to form more strategic alliances with big corporations .
Many high \@-\@ technology concerns have recently made such alliances partly because the 1987 market crash made it harder for them to find financing .
Even some see a silver lining in the dark clouds .
Alan Wells , president of Bollinger , Wells Lett &amp; Co . , a New York merger specialist , thinks panicky investors may lose his enthusiasm for leveraged buy \@-\@ out and giant takeover deals .
Instead , they could turn to investing in small deals involving small companies , he says .
This will add to the appeal of small business , he says , what investors often have a degree of influence .
Bay Financial Corp. , hurt by high debts and deteriorating real estate investments , reported a wide loss for the fourth quarter and said it might be forced to seek a bankruptcy \@-\@ court reorganization if it can &apos;t negotiate its borrowings .
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 .
A year earlier , the company had a loss of $ 10.8 million , or $ 3.04 a share , on revenue of $ 10.8 million .
For the year he had a net loss of $ 62 million , or $ 15.97 a share , on revenue of $ 44.3 million .
In the previous year he had a loss of $ 22.5 million , or $ 6.52 a share , on revenue of $ 41.1 million .
Although it &apos;s having serious cash flow problems , Bay said the fairly market value of its holdings , minus debt , was equal to $ 6.02 a share at June 30 , based on a recent appraisal .
Book value per share bases on investments at cost was a negative $ 6.69 a share .
A year earlier , fairly market value per share was $ 26.02 and booked value was $ 9.43 a share .
c \@-\@ Yields adjusted for constant maturity
TRW Inc. reported a 12 % decline in quarter net income , but the company said operating profit rose 16 % , excluding unusual gains in both quarters .
The electronics , automotive and aerospace concern said quarter net was $ 60 million , or 98 cents a share , down from $ 68 million , or $ 1.11 a share , a year earlier .
Share earnings are reported on a full diluted basis by company tradition .
Results for the 1988 quarter included a partly offset by a charge of 69 cents a share for recall of faulty truck \@-\@ steering systems gain of $ 1.05 a share from sale of the Reda , Pump and Oilwell Cable units .
The latest quarter included a gain of 11 cents a share as a partial reversal of the recall charge because the established last year reserve exceeded the actual recall costs .
Sales for the quarter rose 8.3 % with all three major product groups to reporting gains to $ 1.79 billion from $ 1.65 billion .
automotive sale jumped 16 % to $ 791 million , mainly because of high sales of air bags and other passenger restraint systems , TRW said .
The group had an operating profit of $ 65 million against a loss of $ 13 million a year earlier .
Operating profit in the latest quarter declined , however , 14 % , reflecting high start \@-\@ up and product development expenses in passenger restraint systems , excluding the year \@-\@ earlier charge for recall of steering gear .
Materials and production costs also rose TRW said .
An acquisition accounted for half the sales rise , TRW said .
Operating profit rose threefold to $ 18 million from $ 6 million .
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 .
Sales rose 2.9 % to $ 5.42 billion from $ 5.27 billion .
As if the realistic English novel of manners like Britannia , he still ruled the waves a tragicomic monologue by an English butler , idealistic not unheroic , though deceived , self \@-\@ sadly in his 60 proceeds .
He implies the British Empire was rooted in his subjects &apos; minds , manners and morals , and argue tacitly with embodied his self \@-\@ destructive flaws in the defensive snobbery willful blindness , role \@-\@ playing , and especially the locutions of his domestic servants .
subvert , pious cant , we see as the narrator Stevens , the solitary butler of Darlington Hall , mull over such hallowed terms as greatness , to dignity , service and loyalty how the soul .
He was designed to preserve all Stevens &apos; dutiful conflation of the publicly and private realms like his beloved master &apos;s destroy .
Such armor crushes the soldier .
The mask cuts to the quick .
The Suez crisis marked the final end of Empire Friday .
itcleft is the very lack of obvious drama or spectacle that sets the beauty of his land .
pertinent by what is the calmness of that beauty &apos;s sense of restraint .
He is as though the land know of his own beauty of his own greatness , and feels no need to shout it .
A effusive landscape .
A ill mannered mountain
Such dignity has done crucial with a butler &apos;s ability to not to abandon the professional being it inhabits .
You see me know my father would have wished whether I carry on just now .
itcleft is this kind , of-n dignity and restraint allow Stevens to declare that : for all of his sad associations whenever I recall that evening today I find to do so with a large sense of triumph .
We note the imperial used to deny private rage and sorrow public word .
Mr. Ishiguro &apos;s ability to create a fallible narrative voice permits him to explore such intertwining domestic , cultural and political themes , was abundant clear in his previous novel , An Artist of the Floating World , which was set in Japan after the war .
Now has fashioned a novel in the mode of Henry James and E.M. Forster , he shifting his scene from the country he left at 5 to the England , which he has lived in for nearly 30 years .
This employer embodies all I find to be noble and be admirable .
I &apos;ll hereafter devote me to serving it .
In the end after meeting with the former housekeeper , Stevens sits by the seashore at dusk , he of and of his employer and declares trusted .
I can say even whether I made my own mistakes .
Really one has asked him that is what dignity in that .
greatness is what .
Dignity is what
We understand such rueful wisdom must be retrospective : &quot; The owl of Minerva only spreads at dusk &apos;s wings . &quot;
But such wisdom can be embodied movingly in art as The Remains of the Day demonstrates with quiet virtuosity so eloquent .
Mr. Locke teaches English and comparatively literature at Columbia University .
UGI Corp. said its AmeriGas subsidiary completed the previously announced sale of and related assets air \@-\@ separation plant &apos;s in Waukesha , Wis . , to AGA Gas Inc . , Cleveland .
The price wasn &apos;t disclosed .
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 .
Since June has invested more than $ 50 million , AmeriGas to acquire three propane distributors have net more than $ 100 million from industrial gas divestitures and .
UGI is a gas and electric utility and nationally distributes to propane through its AmeriGas subsidiary .
Stanislav Ovcharenko , who represents the Soviet airline Aeroflot here , has some wild even by the current standards of perestroika , visions .
enthusiastic in his office , which overlooking the runway of Shannon Airport , Mr. Ovcharenko throws out what he calls just ideas :
First , it suggests GPA Group Ltd . , the international aircraft leasing company based in Ireland , could lease some of its Boeing jetliners to the Soviet airline .
Then Aer Lingus , the Irish flag carrier , could teach Aeroflot pilots to fly the Boeing and the fleet could be based here at Shannon Airport .
&quot; Not that &apos;s all , he says .
Aer Rianta , the Irish airport authority , could build a cargo terminal in the Soviet Union .
Aeroflot could lease some of its cargo planes to Aer Lingus through GPA for a joint \@-\@ venture cargo airline .
And then there is its notion of an Irish Soviet charter airline that ferried Armenians to Los Angeles via Shannon .
The freedoms of glasnost have gone to Mr. Ovcharenko &apos;s head .
Hardly .
Here at Shannon Airport is the Irish Soviet aviation connection is alive and is well .
Indeed , GPA is talking about leasing Western planes to Aeroflot and even about buying Soviet \@-\@ built Tupolev 204s .
Aer Lingus is in discussions with the Soviet carrier about a cargo venture and other possibilities .
Aer Rianta already has so many ventures with Aeroflot that his chief executive is studying Russian .
And as Aeroflot struggles that boosted its service standards upgraded , their fleet and pursue commercial opportunities seem the Irish industry , aviation is poised to benefit .
&quot; Irish and Soviet people are similar , &quot; says Mr. Ovcharenko .
They look the same .
Very they are friendly .
Moreover , he says , Irish companies are small but are spunky .
&quot; We have very well to study your experience , &quot; he says .
&quot; We must find any way to get business . &quot;
Long , the two groups have been working together since the late 1970s before jointly Soviet ventures were the rage in the West .
Aeroflot carried about 125 million passengers last year and Shannon Airport , the airline &apos;s largest transit airport outside the Soviet Union , saw that 1,400 Aeroflot flights and 250,000 passengers passed through .
An apartment complex , down the road is the crew rest and staging area for more than 130 and pilots , flight attendants , Aeroflot .
The airport &apos;s biggest supplier of aircraft fuel is the Soviet Union .
Each year , tankers from the Latvia port of Ventspils unload 25 million gallons of fuel into a special tank farm at the airport .
Aeroflot doesn &apos;t pour what into its own gas guzzling Ilyushins are bartered to the airport authority that sell it to 11 Western carriers , which including Air France Trans World Airlines and Pakistan International Airlines .
Aeroflot thus pays for whether <implicit_conj> preserving his hard currency with fuel &apos;s landing fees , ground handling and catering bills .
That &apos;s not all .
Last year , the Irish airport authority in a joint venture with Aeroflot opened 4 duty \@-\@ free hard \@-\@ currency shops at Moscow &apos;s Sheremetyevo Airport .
Aer Rianta now manages duty \@-\@ free sales on all international Aeroflot flights out of Moscow .
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 .
Rianta Aer 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 .
Aeroflot &apos;s international fleet of 285 planes is repainted and refurbished at Shannon Airport .
Taking tourists here advantage thanks to a new air \@-\@ traffic agreement and the ability of Irish travel agents to issue Aeroflot tickets , Aeroflot &apos;s reasonable prices to board flights in Shannon for holidays in Havana , Kingston and Mexico City .
The rounded \@-\@ trip fare to Havana is 410 Irish punts -- $ 578 .
Jamaica costs 504 punts
When Mikhail and Raisa Gorbachev stopped for talks with Irish Prime Minister Charles Haughey here , a formal blessing of sorts was bestowed on in April this friendship .
New trade accords were signed .
He all started with geography .
Shannon was the first landfall in Europe for thirsty airplanes , flying from North America when it opened in 1939 .
From Moscow to Managua , on one hop can inefficient Ilyushins made it .
As a result , Ireland didn &apos;t spurned the Soviets after they shot down a Korean Air Lines jetliner over the sea of Japan in 1983 , though it suspended directly Moscow , Shannon flights for two months .
Aer Lingus , in fact , started ferry Russians to New York to Shannon from when Washington stripped Aeroflot of his U.S. landing rights .
Today Aer Rianta is making a heap of money from his Soviet friendship .
And it could be relatively simple to add Aer , Lingus and GPA to the team with those contacts in place .
Then Mr. Ovcharenko &apos;s ideas are would perhaps seem-to sound like so much blarney .
Britain &apos;s industrial production rose 1.5 % in August from July and was up 1 % from August 1988 , according to provisional data from the Central Statistical Office .
Output in the energy sector , which can vary greatly with swings in the oil market , rose 3.8 % in August from May , but was down 7.1 % from a year earlier .
The latest figures compare with July &apos;s month+to+month 4.5 % rise and year \@-\@ to \@-\@ year embroiled % fall .
When Nucor Corp. begins this month , shipping steel from the world &apos;s first thin slab plant , it will begin testing the competitive mettle of its giant competitors .
The new technology , which creates a very thin piece of steel , radical reduces the costs of making flat \@-\@ rolled sheets .
A ebullient Kenneth Iverson Nucor &apos;s chairman says the company &apos;s plant will make eventually to of steel a ton in 1.5 man hours , compared with man hours at a conventional mill , four to six .
&quot; We &apos;ve had the Russians and Chinese and people from India who visiting us , &quot; Mr. Iverson beams .
&quot; Who in the world very closely is watching us . &quot;
Especially the major U.S. steelmakers , neighbors &apos; .
USX Corp. and Armco Inc. already are studying Nucor &apos;s technology to see if they can adopt it .
The chief executive officer of a major Midwest steel company : says it &apos;s &quot; damn worrisome . &quot;
New efficient and sophisticated processes make it easier for small companies cash rich to make steel at a fraction of what Big Steel paid for decades ago .
It also enables minimills to finally get a toehold in the flat \@-\@ rolled steel market , the major steelmakers &apos; largest market , prized most and untouchable , until now .
But such thin slab technology is only the beginning .
Eager engineers espouse directly steelmaking and direct casting by the end of the 1990s , will enable production without coke ovens and blast furnaces .
Those massive structures , while posing as cost and environmental headaches , were effectively locked out all but deeply pocket giants from steelmaking .
&quot; There is a revolution ahead of us that will ultimately change the way we market steel and distribute , &quot; says William Dennis , vice president manufacturing and technology for the American Iron Ore and Steel Institute .
It &apos;s not that major steelmakers have blithely ignored high technology .
They have spent billions of dollars in fact to boost the percentage of continously cast steel to 60.9 % in 1988 five years before from 39.6 % .
But that won &apos;t suffice .
He no longer is enough to beat the guy down the street .
&quot; You have beat everyone around the world , &quot; says Mr. Dennis .
He wants to see steelmakers more involved in computers and artificially intelligence .
The problem : They saddle huge plants require costly maintenance .
A market in softening is hurting and is concerning about overcapacity , the industry &apos;s Darth Vadar .
&quot; The technology revolution is going is very threatening to establish producers , &quot; says Peter Marcus , an analyst with PaineWebber Inc .
They &apos;ve got too many invested the old stuff and they can get their workers to flexible .
No expect minimills to eclipse integrated major steelmakers who remain the undisputed kings of high \@-\@ quality steel used for automobiles and refrigerator .
Moreover , the process isn &apos;t been without its headaches .
One equipment failure forces a complete plant shutdown because all operations connect .
On some days , the Nucor plant doesn &apos;t produce any .
At this point , the minimill capacity won &apos;t make a great dent in the market integrated , but it challenges them to develop new markets , says James McCall , vice president , materials at Battelle , a technology \@-\@ and \@-\@ management research giant based in Columbus , Ohio .
Indeed , steelmakers will have to change the way they do business with demand for steel , not growing faster enough to absorb capacity .
In the past , Armco &apos;s chief economist , John Corey , says steelmakers made a product and set it out on the loading dock .
Armco &apos;s sales representatives visit the General Motors Corp. &apos; s Fairfax Assembly plant in Kansas City , Missouri , two or three days a week .
When they determined that GM more quickly needed parts , Armco convinced a steel \@-\@ service center built a processing plant nearby so shipments could be delivered within 15 minutes .
A means of survival is cementing such relationships with major clients , car and appliance makers , especially when those key clients are relying on a small pool of producers and flirting with plastic and aluminum makers .
For example , when Detroit began talking about plastic body cars , the American Iron and Steel Institute began a lobbying major effort to show auto makers they used how by design what assemble a car door simple more efficient steel could .
But steelmakers must also find new markets .
A group of the nation &apos;s largest steelmakers started a recycling institute to promote steel cans to an environmental \@-\@ conscious nation after letting aluminum makers take the recycling lead .
Battelle &apos;s Mr. McCall thinks steelmakers should concentrate more on construction .
Weirton Steel Corp. , Weirton W. Virginia , is touting fashionable steel doors with leaded glass inserts to homeowners as a unsecured and energy efficient alternative to wooden or aluminum ones .
Other steelmakers envision steel roofs covering suburbia .
Still others are looking at overseas markets .
USX is funneling drilling pipe to steel hungry Soviet Union .
This year , the nation &apos;s largest steelmaker reactivated its overseas sales operation .
Producers also are trying to differentiate by concentrating on high profit output , such as products coated and electrogalvanized remain beyond the reach of minimills .
Almost all announced by major steelmakers within the past year capital improvement programs involve building used to produce steel for such products as household appliances and car doors electrogalvanizing lines .
But that segment unfortunately small more than the bread and butter steel flat rolled .
After a while , some have to go over the side .
Although it isn &apos;t expected any bankruptcies , it sees many plants selling or close .
Robert Crandall , with the Brookings Institute , agrees .
consumption of produced steel unlikely will grow sufficient to offset the growth of minimills unless is an enormous rate of economic growth or a further drop in the dollar .
Japanese and European steelmakers who have led the recent technology developments anxiously are awaiting the lifting of trade restraints in 1992 .
Moreover , the U.S. can expect more competition from lower \@-\@ cost \@-\@ producing Pacific rim and Latin American countries .
A Taiwanese steelmaker recently announced plans to build a Nucor -like plant .
&quot; People think the steel business as an old and mundane smokestack business , &quot; says Mr. Iverson .
They dead wrong .
*USX LTV Bethlehem Inland Armco National Steel
be projected .
Polaroid Corp. &apos; s patent infringement damages case against Eastman Kodak Co. one of the corporate high \@-\@ stakes trials are getting scant attention on Wall Street .
After 78 days of mind \@-\@ numb testimony in federal court in Boston , the trial is being ignored all but by analysts and patent attorneys .
Most , however , have read the pretrial documents and estimate that Kodak will be ordered to pay $ 1 billion to $ 1.5 billion for infringing on seven Polaroid patents .
That may be the largest patent award , but it is well below the $ 12 billion Polaroid seeks .
In 1986 , when Smith International Inc. was ordered to pay for infringing on a patent on an oil \@-\@ drilling bit seal Baker Inc. Hughes ( $ 205 million ) , the to date patent award damage high .
The two companies later agreed to settle for $ 95 million .
Few analysts think it is worth their time to be slog through the Polaroid trial testimony .
It &apos;s like panning for gold outside of Grand Central Station .
&quot; You might find some , but the chances are low , &quot; said Michael Ellman , an analyst at Wertheim Schroder &amp; Co .
And Eugene Glazer , an analyst at Dean Witter Reynolds Inc . , said : &quot; If you hired an attorney Friday , there all the time and who give you a prediction of the eventual award I would be willing bet , it would be off by a lot . &quot;
A 75 \@-\@ day trial in the early 1980s determined that Kodak based in Rochester , N.Y . , infringed on patents of Polaroid of Cambridge , Mass .
The main remaining issues are that how damages calculated and the infringement was willful and deliberately .
If not , the damages could be tripled .
Two analysts David Nelson of Shearson Lehman Hutton Inc. and Calvert D. Crary , a litigation analyst at Labe Simpson &amp; Co . , has read the transcripts think Judge A. David Mazzone , will decide in Kodak &apos;s favor on the willful and deliberately issue .
Mr. Crary said testimony by Kodak &apos;s patent counsel Francis T. Carr of Kenyon &amp; Kenyon showed to continuously to be worked by him with Kodak from the outset of the project in an effort to avoid infringement .
Carr told Kodak avoid various features because of Polaroid &apos;s patent positions on many occasions , and Kodak followed his advice in every instance , Mr. Crary said .
But Irving Kayton , a familiar with the case patent expert at George Mason University School of Law , said the fact that seven patents were infringed , suggest willful to infringement .
That consistently wrong difficult .
Polaroid claims that it could have manufactured and sold all the and instantly cameras film sold by Kodak if Kodak had not entered the market .
Moreover , Polaroid contends it could have sold them at a high price and thus made high profits because it wouldn &apos;t have been forced to match Kodak &apos;s low prices .
Each side has called a Harvard Business School professor to testify on that issue .
Kodak hired Robert Buzzell and Polaroid brought in Robert J. Dolan .
&quot; There &apos;s nothing who say people at Harvard Business School have to agree on with each other , &quot; Mr. Buzzell said .
testimony is expected to continue until early December .
A decision isn &apos;t expected until some time next year .
The main reason was a delay in shipment of-to new high \@-\@ end disk drives , a business that accounts for some 10 % of IBM &apos;s $ 60 billion of annual revenue .
IBM , which telegraph the poorest results three weeks ago , also cited an increase in its leasing business that tends locked long \@-\@ term business but cut revenue in the near term .
In addition , IBM noted the strong dollar has cut the value of overseas revenue and earnings when they are translated into dollars .
Earnings fell to $ 877 million , or $ 1.51 a share , somewhat below securities , analysts &apos; revised expectations of around $ 1.60 a share .
Revenue climbed 4.3 % to $ 14.31 billion from $ 13.71 billion .
IBM , Armonk , N.Y . , remained upbeat .
The computer giant &apos;s U.S. results have been dismal for years noted that revenue following an increase in the second period rose again in the U.S. in the third quarter .
The company said in a statement that good demand for IBM products and services continues world \@-\@ wide .
We don &apos;t see any in the fundamentals of our business that would cause us to change their strategy of investing for profitable growth .
Securities analysts remained downbeat .
&quot; I think 1990 will be another mediocre year , &quot; said Steve Milunovich of First Boston .
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 .
Both estimates would mark declines from the 1988 net of $ 5.81 billion , or $ 9.80 a share , it well below the record IBM set in 1984 did .
Mr. Stevens said only because all the damage has been done , there kept a buy \@-\@ and \@-\@ hold recommendation on the stock .
The stock closed yesterday as the market surged at $ 103 a share , up just dollar a in composite trading on the New York Stock Exchange .
Analysts worry that the disk drive and leasing problems will last at least through the first quarter .
And the input I have had from customers is that it still could be a while .
On leasing Bob Djurdjevic at Annex Research said he thinks IBM has hurt him unnecessarily .
He said IBM has priced its leases aggressively , thinking that would help win business .
A third to party would then have leased the equipment to the customer .
He said IBM not only has hurt its short \@-\@ term revenue outlook , but has also been losing money on his leases .
Bob Bardagy , executive vice president of marketing at Comdisco Inc . , a huge leasing firm , said : &quot; IBM Credit has been doing some of the worst economic deals of any leasing company we &apos;ve ever seen to put it mildly . &quot;
IBM is expected to get a boost soon when it announces some new versions of its mainframes .
IBM is gaining momentum in the personal computer market and expects to introduce some impressive workstations early next year .
But squeezed more profit out of the personal computer business , these days are hard and small , too the workstation market while important relied for more growth .
When they become final available , the disk drives doubtless to sell well .
But the AS/400 IBM &apos;s highest successful minicomputer line is losing its momentum , and some analysts said sales could even decline in the fourth quarter .
In addition , IBM &apos;s growth in software in the third quarter was just 8.8 % , well below historically levels , even when to be reflected last year &apos;s payment from Fujitsu and the strong dollar adjusted .
And expenses up 7.9 % in the quarter have stayed stubbornly higher .
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 .
Revenue increased 6.5 % to $ 42.25 billion from $ 39.68 billion .
D Wayne Calloway , also chief executive officer of the company , indicated that he expects analysts to raise his forecasts for 1989 after the company releases its earnings today .
So far , analysts have said they are looking for $ 3.30 to $ 3.35 a share .
After today &apos;s announcement , that range could increase to $ 3.35 to $ 3.40 a share .
The official said it also would be comfortable with that new range .
In 1988 , the soft \@-\@ drink giant earned $ 2.90 a share .
Results for 1989 will include about cents 40 a share from the dilutive effects of snack food and bottling company acquisitions .
In composite trading on the New York Stock Exchange , the company closed yesterday at $ 57.125 a share , up $ 3.125 .
The company said quarter sales are expected to increase 25 % from $ 3.12 billion of last year &apos;s third quarter .
Mr. Calloway blamed the slow volume on rainy weather , a dearth of new products in the industry and to a much lesser extent , pricing .
PepsiCo said its soft \@-\@ drink prices were higher in the quarter about 2 % .
A hefty nine % in last year is soft \@-\@ drunk volume rose .
International soft \@-\@ drink volume was up about 6 % .
snack food tonnage increased a strong 7 % in the third quarter , while domestic profit increased in double digits , Mr. Calloway said .
Excluding the British acquired in July , snack food business internationally snack food tonnage jumped 40 % with sales is strongly in Spain , Mexico and Brazil .
Total snack food profit rose 30 % .
Restaurant earnings increased about 25 % in the third quarter , led by Pizza Hut and Taco Bell on a 22 % sales increase .
Same store sales for Pizza Hut rose about 13 % , while Taco Bell &apos;s increased 22 % as the chain continues benefited from its price \@-\@ value strategy .
Bell has turned around by permanent lowering the price of its taco , declining customer counts Taco .
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 % .
-- which a grilled chicken product , the has slowed operation , which responded consumers &apos; shifting tastes away from fried foods , have been developing may be national introduced at the end of next year .
The new product has been well performed in a market test in Las Vegas , Nev . , Mr. Calloway said .
&quot; But never you can tell it , &quot; added you have taken advantage , of-i opportunities .
President Bush chose Martin Allday , a longtime friend from Texas from being chairman of the Federal Energy Regulatory Commission .
Mr. Allday would succeed Martha Hesse , who is resigning .
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.
He met Mr. Bush when the president was a young oil man in Midland , and Mr. Allday was a lawyer for an oil firm in the 1950s .
The FERC is a five \@-\@ member commission regulates billions of dollars of interstate wholesale energy transactions .
Mr. Allday &apos;s appointment is subject to confirmation by the Senate .
Administration officials said a date for Ms. Hesse &apos;s departure hasn &apos;t set .
California REAL ESTATE INVESTMENT Corp. said its directors declared a payable Nov. 6 to stock of record Oct. 16 dividend of five cents per Class A common stock .
The company said it hopes to resume its schedule of regular quarterly dividends at the end of this year .
Hydro \@-\@ Quebec said it notified Central Maine Power Co. it will cancel a $ 4 billion contract to supply electricity to the Maine utility .
The utility provincially , owned , said it is tearing up the deal because the contract &apos;s objectives can &apos;t be fulfilled .
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 .
&quot; It would be now physical impossible to begin deliveries in 1992 , &quot; a Hydro \@-\@ Quebec official said .
The contract is to run from 1992 to 2020 .
Hydro \@-\@ Quebec said Maine regulators &apos; refusal to approve the contract means &quot; central Maine Power &quot; has lost its place in line .
&quot; We won &apos;t sign any new contracts with deliveries beginning earlier than 2000 , the Hydro \@-\@ Quebec official said .
He said Hydro \@-\@ Quebec already has some customers in mind for the power that is delivered to Maine .
Since we signed the contract to undermine his conviction that Hydro \@-\@ Quebec was the low cost most environmental acceptable choice for meeting a part of his customers &apos; energy needs through the year , 2020 , no environmental , said Central Maine senior vice president Donald F. Kelly .
Chicago among the big victims of Friday &apos;s plunging stock market , including one small firm , required an emergency $ 50 million bailout is options traders .
Left many options , customers and professional traders in stock \@-\@ index options and the options on takeover stocks , while Monday &apos;s bound markets , helped other investors to recoup losses with multimillion \@-\@ dollar losses , traders here and in New York said .
Options to the high volatile nature , because of of rise in value or fall , often several times the amount of the price change in the individual stock or index of stocks on which they are based .
Those <generic_entity>
That may just be the nature of these high leveraged little creatures .
The contracts
Investors fled because of huge losses from the market .
The fact that late Friday afternoon , the CBOE halted in step with the Chicago Mercantile Exchange &apos;s halt in stock \@-\@ index futures , which <nominalization> stock \@-\@ index options trading were making matters worse .
But leaving many options traders unable to make trades that might have reduced the losses , while the Merc reopened a half \@-\@ hour late , CBOE , the remained that closed .
CBOE Chairman Alger , Duke Chapman , said , unlike the futures market , the options exchange is &quot; to open in a rotation that allows each different options &quot; series to trade .
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 remain if its course better closed .
is so at Fossett Corp. , a options trading firm here , the damage worse that it transferred its accounts from-to First Options of Chicago , a unit of Continental Bank Corp. , was forced as a result of options trading losses .
Fosset is so far .
worried about another potential market plunge yesterday , regulators would let that whether it is reopened for trading .
&quot; Steve and his firm still were worth a lot of money , &quot; Mr. Rawls said .
A package of credit support put including the assets of Steve and his firm .
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 .
&quot; Great to have the luxury of time , &quot; Mr. Rawls said .
At one point , a options industry official had talked the Federal Reserve Bank of Chicago &apos;s night \@-\@ watchman into giving it the home phone number of Silas Keene , Chicago Fed president .
First Options didn &apos;t have to put any money into the bailout .
In the stock futures and options markets yesterday &apos;s rally led CBOE and Amex officials to conclude that the $ 50 million in guarantees almost certainly won &apos;t need to tap by First Options .
The Fossett firm as well had some losses and liquidity problems during the October 1987 crash , Mr. Rawls said .
A federal official said Continental Bank worked with securities and banking regulators over the weekend to fashion the Fossett bailout , but didn &apos;t those agencies dictated conditions .
&quot; It was my business decision , &quot; the official said .
Officials at Options Clearing Corp. , which process all options , trades for U.S. exchanges , said guarantee the $ 50 million was unprecedented , but that was necessary to help that insure for the integrity of the options markets .
&quot; It was an extraordinarily situation that needed extraordinary steps , &quot; said Paul Stevens , OCC president and chief operating officer .
Mr. Stevens declined to give the specific contributions to the $ 50 million guarantee from each participant .
But CBOE and Amex officials said 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 .
Mr. Fossett could be reached to comment .
Take his necklace , Debora Foster , who settles him on a padded chair and leans forward gentle .
With a jazz piano tape , soft playing in the background the soothing hands of Sabina , Vidunas begins worked on Ms. Foster &apos;s neck and shoulders .
It &apos;s like an oasis in this room purr Ms. Foster .
The room in question is 60 floors above the bustle of Pittsburgh , the directors &apos; lounge of H.J. \@-\@ Heinz Co .
There amid oil paintings and marble tables , massage are administered every Wednesday .
In some companies , middle managers sneak massage therapist into the office , fearful to upper \@-\@ level executives won &apos;t approve .
Ms. Foster &apos;s indulgence is nothing like the oily hour \@-\@ long rubfests enjoyed by spa visitors .
The massage last 15 minutes and typically cost about $ 10 .
Some companies , including Heinz , even pay for part of the fee .
Ms. Vidunas has been seeing some 15 clients a visit since the program was started at Heinz last year .
Anthony J.F. O &apos;Reilly , the company &apos;s chairman , swears by his firm touch , saying regular massage is a &quot; balm &quot; for his old football injuries .
massage advocates say kneading the head , shoulders , neck and back can go a long way toward easing tension and improving morale .
They also insist that a basic as powerful as the need for food or sleep need is touching , and that the office is a as good place as any to do it .
&quot; The blood flows to my head you feel lightheaded and you don &apos;t feel tension around the head or neck , &quot; says Minnie Morey , a operations supervisor at the Social Security Office in Grand Rapids , Mich . , where massage began last month .
When you leave the room after your massage , people say , you look you are glowing .
Candice Ohlman , the 35 \@-\@ year \@-\@ old masseuse who ply his trade in the Grand Rapids Office , adds that they fall in love with their hands .
Not everyone is at ease with office massage .
Three years ago , the Internal Revenue Service &apos;s office in San Jose , Calif . , opened its doors to on \@-\@ site massage .
And taxpayers grumble even though employees paid the bill .
Last month , the complaints intensified and the massage ended .
&quot; Now we &apos;re looking for a room with thick walls , &quot; Ms. Banks says .
massage also has an image problem to contend with .
Last year , the research and development division of Weyerhaeuser Co . , the largest wood \@-\@ products concern , invited a masseuse to its Tacoma , Washington offices .
Phil Harms , a software engineer , was a eagerly customer .
&quot; You build up a lot of tension working all day at a terminal , &quot; he says .
But after about eight months , the vice president of the division , Ed Soule , learned about the sessions and brought them to a halt .
Mr. Soule says his only beef was that the massage were being given in a company conference room , the department &apos;s supervised health facility would have been fine .
&quot; In my view , massage should be managed with an appropriate mixture of males and females around , &quot; he says .
Some corporate masseur prefer to go quietly &apos;s business given such attitudes .
He every visits the same department two or three weeks .
Keep in a closet &apos;s massage chair and a secretary escorts him past security .
Borner , this common with a lot of large companies , Mr. says , worked for American Telephone &amp; Telegraph Co . , for 23 years before choosing its current trade .
Your vision is to change human consciousness towards touch .
: Her attitude is come out of the closet .
Occasionally all need is a little coax .
Byler , a St. Louis masseuse Elisa , won over officials at Emerson Electric Co. , a maker of electrical and electronic equipment by providing documents and other articles , trumpet the therapeutic benefits of massage .
He notes that he also stresses professionalism during his weekly visits .
&quot; pull your hair I wear a little makeup and look corporate , &quot; says Ms. Byler , who has been visiting Emerson since January .
They would ask who is this hippie ? , if I go as I normally dress in in there .
The father of on \@-\@ site massage self \@-\@ proclaimed is David Palmer , a 41 \@-\@ year \@-\@ old San Francisco masseur &apos;s mission , save the touch \@-\@ starved masses .
Not ready to take his clothes lie down and the culture is touched for one hour for $ 45 , he says .
To keep the clothes on and
The chair is a way to package massage .
Sitting in one of Mr. Palmer &apos;s chairs cost $ 425 and has copied by others , since is a bit like straddle a recliner .
Customers lean forward rest their knees on side supports and bury their face in padding on the back of the chair .
Scot MacInnis , a masseur in Boulder , Colo . , had a scary experience while massage a man in a natural foods supermarket as part of a store promotion .
Three minutes into the massage , the man curled up began to shaking and turned red .
paramedics were called .
A week later , the man told Mr. MacInnis that he had suffered a mildly unrelated to the massage heart attack .
&quot; He was a powerful point in his career , &quot; the 31-year-old Mr. MacInnis , who has since taken out a $ 1 million liability policy for his business , says .
But pulled it , and there was still six people in line waiting for a massage after the ambulance left .
The next woman was older and I was afraid to touch her .
&quot; But it &apos;s like falling off a horse and getting on back . &quot;
Despite the number of fans , office massage has won some purists look down on him , arguing that naked fully body rub are the only way go .
Linda Aldridge , who does fully body work in Pittsburgh , says tired workers should realize that he is only the tip of the iceberg while on \@-\@ site massage is than what no better .
whole areas of his bodies are neglected , he says , adding that clothes ruin the experience .
&quot; There &apos;s nothing like skin to skin . &quot;
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 an Shanghai property project .
The syndicate , led by Schroders Asia Ltd . , agreed last November to provide the loan to Asia Development Corp. , a U.S. property developer .
But ago several weeks in the wake of the Beijing killings , the loan was canceled , according to bankers and executives close to the project .
Asia Development and Schroders declined to comment on the move .
Lenders had doubts about the project even before June 4 , but the harsh crackdown , who caused many businesses to assess its China transactions , gave the banks the out they wanted a close to the Shanghai venture official says .
The decision to cancel the loan exemplifies the tough attitude ; bankers have taken toward China since June 4 .
While some commercial lending has been resumed internationally , lenders remain nervous China &apos;s economic troubles and foreign debt , $ 40 billion at the end of 1988 .
Many bankers view property sector loans as being particularly risky .
The Shanghai loan cancelled leaves Asia Development , a small concern to saddle with a half completed 32 \@-\@ story apartment building and heavy debts .
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 .
The project has mired in controversy was known as Lotus Mansion .
He was hailed when the loan agreement was announced as one of the transactions ever used in China financing Western \@-\@ style one .
Unlike most loans to China , there was no Chinese guarantor .
Instead , the banks secured a promise from state \@-\@ owned Bank of Communications , which it would lend Asia Development , the entire $ 55 million at maturity to finance repayment of the original borrowing .
The loan is to have matured in just two to three years as soon as construction completed .
But Schroders said , according to close to the project , officials on time , in a letter sent to Asia Development in August , the loan was terminated because the developer had failed to deliver to adequately financial data and pay the loan \@-\@ management committee certainly fees .
However , creditors involved in the project contend that the termination actually did have no to do with these technical violations .
The bank syndicate mostly makes European banks , but it includes China &apos;s state \@-\@ owned Citic Industrial Bank .
The 11 banks in the syndicate sustained no monetary losses because none of the credit facility had been drawn down .
K mart Corp. agreed to acquire Pace Membership Warehouse Inc. for $ 23 a share , or $ 322 million , in a move to expand its presence in the rapid growing warehouse club business .
The proposed merger comes as K mart &apos;s profit is declining and sales at its core discount stores are rising than at such competitors as Wal \@-\@ Mart Stores Inc . slowly .
K mart , based in Troy , Mich . , recently said net income would fall for the consecutive third quarter after a 16 % drop in the first half of its current fiscal year .
The membership warehouse club concept has greatly potential the company &apos;s chairman , Joseph E. Antonini said in a statement .
shopper more operate smaller businesses pay for annual membership fees provide an income base for the stores .
K mart tested the warehouse club sector last year , with its acquisition of a 51 % interest in Makro Inc .
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 , an analyst estimated at about $ 300 million .
Pace 6 years old based in Aurora , Colorado , operates 41 warehouse club stores .
The company had losses for several years before turning in fiscal 1988 profitable .
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 .
The company fairly recently turned the corner in profitability , said Margo McGlade of PaineWebber Inc . , which had been forecasting a 46 % jump in Pace &apos;s net income from operations this year and another 42 % increase next year .
Warehouse productivity really is beginning taken off .
But some analysts contend K mart has agreed to pay too much for Pace .
&quot; Even if you look at it as a turnaround situation , it &apos;s expensive , &quot; said Wayne Hood , of Prudential \@-\@ Bache Securities Inc .
In my opinion , you would only pay that kind of-n price if you were getting a premier player in the industry .
Ms. McGlade of PaineWebber raised a fundamental question whether the deal .
If K mart can &apos;t get its act together in discounting it is spending for worrying other growing markets time .
Perhaps at that point , appropriate diversification would .
But pushing the company into new retail businesses , intent K mart &apos;s Mr. Antonini .
K mart , for instance , is opening called hypermarkets , food and general merchandise , big stores and warehouse \@-\@ type stores that specializing in office products and sporting goods .
It also operates Waldenbooks Pay Less , Drug Stores and Builders Square home Improvement stores .
In composite trading on the New York Stock Exchange , K mart closed yesterday at $ 36 a share , up 12.5 cents .
Pace rose $ 2.625 to close at $ 22.125 a share in national over \@-\@ the \@-\@ counter trading .
A K mart spokesman said the acquisition would be financed with short \@-\@ term borrowings .
Under terms of the agreement , a K mart subsidiary will soon make a tender offer for Pace shares .
G. William Ryan , president of Post Newsweek , Stations , was named chief executive officer of the unit of this media company , effectively January 1 .
Remain a vice president of the company and continue to be represented post , Newsweek stations in several industry organizations .
Traders who nervous watching their Quotron electronic data machines yesterday morning were stunned to see that the Dow Jones Industrial Average plummeted 99 points in seconds .
One minute later he soared 128 points , then zoom back down 113 points 69 below Friday &apos;s close .
&quot; He was crazy , &quot; said Neil Weisman , general partner of Chilmark Capital Corp.
It was like flying without a pilot in the front of the plane .
But those who said this can &apos;t be happening was right .
The Quotrons were wrong .
blame Quotron Systems Inc . , a Citicorp unit , the up 30 \@-\@ minute foul , a caused by the enormous early volume , timing problem in its software about 145 million shares in the first hour of New York Stock Exchange trading .
The prices of the individual stocks that make up the average were correct , Quotron said , but the average was wrong .
Meanwhile , there was an awful lot of confusion .
At about 10:40 , am_time on the over \@-\@ the \@-\@ counter trading desk at a major brokerage firm , a veteran trader who buys some of the most active stocks and sells looked at a senior official and asked everything is going .
The market is up or down .
At the time , Quotron was reporting the industrial average was down 70 points .
In fact , it was up 24 .
Holly Stark , a vice president who heads the trading desk at Dillon Read Capital Corp. , said that he called brokers to tell them once there were figured out whether the Quotron numbers were wrong .
&quot; He &apos;s annoying to say the least , &quot; he said .
From Friday , up about $ 45 the price listed to confuse further matters at $ 324.75 a share , when UAL Corp. stock finally opened on the New York Stock Exchange at 11:08 , am_time &apos;s truly price , in fact , was down $ 55 dollars 224.75 .
That was the New York Stock Exchange &apos;s blooper .
A spokesman cited for a technical error and declined to elaborate .
And there were other blunder .
A reporter for the Reuters newswire calculate as a 4 % decline , the industrial average &apos;s drop when really it was down 1 % when the market opened at 9:30 am_time EST .
We almost immediately found and corrected human error .
Meanwhile , some currency traders at West German banks in Frankfurt said sold $ on the news and that they had buy them back late at high prices .
But it was the Quotron problems that had lingering effects .
Quotron has had problems calculating the industrial average .
At the start of trading last Wednesday , it was appeared that the average plunged more than 200 points .
It was actually down only a few points at the time .
Quotron said that snafu , which lasted nine minutes , resulted from a failure to adjust for a 4-for-1 stock split at Philip Morris Co .
A Quotron spokeswoman said recently software changes may have contributed to yesterday &apos;s problems .
He said Quotron switched from-to , a backup system until the problems were correct .
Today , when of all days , he lamented .
The eyes of the world were watching us .
Steven F. Kaplan was named a senior vice president of this graphics equipment company .
Houston attorney Friend Dale representing a plaintiff in a damage suit says he has negotiated a settlement that will strike a blow for his client .
was during the legal proceedings acted defense attorney Tom Alexander , the way that Mr. Friend &apos;s client , Machelle Parks of Cincinnati , turns not like .
So he has agreed to forgo monetary damages against Mr. Alexander &apos;s client in return for the right to punch the attorney .
Ms. , who Mr. Alexander cuff parks , his mother also gets .
Mr. Friend and his law partner Nick Nichols are so to do .
Last month , Mr. Friend says Mr. Alexander &apos;s associate agreed that Derr would pay $ 50,000 as part of an overall settlement .
But Mr. Alexander scuttled the deal at the last minute , anger the plaintiff &apos;s side .
I was never agreed he , Mr. Alexander says , adding that paid these nuisance settlements aren &apos;t necessary .
Would they like given Mr. Alexander a good walloping .
Derr could keep under which his money .
Mr. Friend says he agreed to strike Mr. Alexander above the belt .
Ms. Parks and her mother indicated they want to catch her unawares from behind her , says .
Mr. Alexander for his part insisted that the punchers can assign his pummeling rights to everyone else anything can use a blunted instrument and can take a running start .
Mr. Alexander says he regards the non \@-\@ submitted to a judge agreement as something of a joke .
He acknowledges , however , that they have the option of taking a SWAT at me if they really want to be .
Mr. Friend says his side is dead serious .
Although they don &apos;t contemplate to delivering any disabling blows , he says , Mr. Alexander will be asked to just+in+case sign a release from liability .
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 as financial markets rebounded .
The sudden influx of liquidity enabled several traders to reap six figures windfalls in a matter of minutes as prices soared , traders said .
&quot; Guys were minting money today in there , &quot; said John Legittino , a futures broker for Elders Futures Inc. in Chicago .
The S &amp; P 500 futures contract , which jumped two to three points earlier yesterday after an initial downturn in seconds , then moved the rest of the day , strong high moves in fractions of a index point under normal conditions .
Each index point represents a $ 500 profit for each S &amp; P 500 contract held .
For the first time since the 1987 crash , traders said they were able to trade several hundred S &amp; P 500 contracts at one time in a high \@-\@ liquid market .
Since the crash many futures traders haven &apos;t assumed large positions for fear that if prices turned against them , the S &amp; P 500 market with much of its missing customer order flow would dry up .
More than 400 traders jammed the S &amp; P 500 futures pit to await the opening bell .
Traders a+full were shouting bids and offers five minutes before the start of trading at 8 : 30 .
The contract fell at the open five points to 323.85 , the maximum allowed under safeguards adopted by the Merc to stem a market slide opening move .
But quickly , several traders stepped and bid for contracts driving prices sharply higher .
Moving higher or lower several index points in seconds , the market hover near Friday &apos;s closing price of 328.85 for about hour 1 / 2 , then broke high and didn &apos;t look back .
The S &amp; P 500 contract , which expires in December , closed up a record 15.65 points on volume of nearly 80,000 contracts .
&quot; You could buy at the bid and sell at the offer and make a fortune , &quot; he marvel .
Several of Wall Street &apos;s largest securities firms , including Salomon Brothers Inc. and PaineWebber Inc. were also large buyers , traders said .
Salomon Brothers was among the largest sellers of stock \@-\@ index futures last week , traders said .
Brokerage firms as a rule don &apos;t comment on their market activity .
Also , unlike the week two years ago following Black Monday , individual traders in the S &amp; P 500 pit uncharacteristically circumspect about its first day profits .
brag rights are a thing , the past with the FBI around here , said one trader referring to the federal investigation of futures trading has resulted so far in 46 indictments lodged against individuals on the Merc and the Chicago Board of Trade .
As the Dow Jones Industrial Average rebounded from Friday &apos;s plunge , the market for $ 200 billion of high \@-\@ yield junk bonds regained some of its footing .
But the junk recovery led by the bellwether RJR Holdings bonds was precarious .
No trading existed for the vast majority of junk bonds , securities industry officials said .
On Friday trading in practically every issue ground , as potential buyers fled and brokerage firms were unwilling to provide bid and offer prices for most issues to a halt .
But we had a fairly active day yesterday .
&quot; At Drexel Burnham Lambert Inc . , the leading underwriter of junk bonds I was prepared to tonight in a very bad mood , &quot; said David Feinman , a junk \@-\@ bond trader .
Now I feel to maybe is a bit less euphoria .
But before the stock market rebounded from a sharp early sell \@-\@ off yesterday , he said , &quot; You could buy junk bonds and you could give them .
Yesterday &apos;s rally was led by RJR Holdings 13 3 / 4 % bonds , which were initially tumbled to 96 1 / 4 three points , or $ 30 for each $ 1,000 face amount before rebound to 99 3 / 4 .
issue by Kroger Duracell , Safeway and American Standard bonds also showed big gains recovering almost all of their losses from Friday and early yesterday .
But traders said increasingly separating into a top \@-\@ tier group in which executed trades easily can and a large group of low \@-\@ quality bonds in which liquidity or the ability to trade without too much difficulty has deteriorated steadily this year , the junk bond market .
liquidity hasn &apos;t returned to the vast middle ground of the market , &quot; said Mr. Minella of Merrill .
&quot; The deadbeats are still deadbeats , &quot; said Mr. Feinman of Drexel .
Analysts are concerned that many of the highest \@-\@ yield market will remain treacherous for investors .
Mark Bachmann , a senior vice president at Standard &amp; Poor &apos;s Corp. , confirms to be increasing concern about the future liquidity of the junk \@-\@ bond market .
&quot; Junk bonds are a high stratified market , &quot; said Lewis Glucksman , vice chairman of Smith Barney , Harris Upham &amp; Co .
&quot; There is a whole bunch of good money stuff and a whole bunch of stuff that is not by so good . &quot;
Analysts at Standard &amp; Poor say junk bond offerings by tighter stretched issuers seem to be growing .
&quot; You could have some very bad times ahead still , &quot; Mr. Bachmann said .
Because we already are seeing big problems in the midst of a pretty strong economy , it is possible to have a 10 % default rate in one year .
I certainly don &apos;t comfortable saying , &quot; We &apos;ve seen the bottom . &quot;
But yesterday &apos;s rally among good junk was a bad needed tonic for the market .
Many issues bounced off the floor , Mr. Minella said , and benchmark junk issues recovered all of his losses from Friday and early yesterday .
Traders said yesterday &apos;s rally was fueled by insurance companies looking bargains after a drastic slide in prices , the past month .
&quot; A shakeout is sometimes healthy , &quot; said Drexel &apos;s Mr. Feinman .
will learn people are perhaps more circumspect .
If they do good credit analysis , they will avoid the hand grenades .
I think the market is in good shape .
You should really own stocks .
ask a lot of people a question following the stock market &apos;s stunning display of volatility .
Financial and emotional whipsawed by Friday &apos;s 190 \@-\@ point heartstopping drop in the Dow Jones Industrial Average and yesterday &apos;s 88 \@-\@ point rebound they are wondering that an individual has any business in the market .
The answer is yes is , academically , researchers , money managers and investment specialists say as long as you approach the stock market as an investor .
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 .
The case for owning stocks over the long term is compelling .
One dollar , which would have grown to $ 473.29 by the end of last June , according to Laurence Siegel , managing director at Ibbotson Associates Inc . , was invested in the stock market in 1926 .
But a invested in long \@-\@ term bonds in 1926 , dollar would have grown to only $ 16.56 , and a $ put in Treasury bills would equally a meager $ 9.29 .
Increasingly , over time the odds favor the investor with a diversified portfolio .
&quot; There &apos;s a cut \@-\@ cut case for sticking a steady core of stocks if you don &apos;t need the money for 10 years , &quot; says Mr. Gregory .
Stock \@-\@ market investments also help that balance the other assets , an individual owns , says John Blankenship Jr . President of the Institute of Certified Financial Planners .
There are some important caveat : before investing in stocks have individuals at least three to six months of living expenses set in the bank should say most investment advisers .
Individuals also should focus on building equity in a home that provide some protection against inflation as well as a nest egg cash late in life can be to help cover the cost of retirement \@-\@ living .
Also , people shouldn &apos;t invest money in stocks they will need in the near future , for example , for college tuition payments or retirement expenses .
&quot; You may have sold your stocks at a time when the market takes a plunge , &quot; says Mr. Blankenship , a financial Del March , Calif . planner .
But I would start invest Michael Lipper , president of Lipper Analytical Services Inc . , says even if he &apos;s as little as $ 1,000 then once the basics are covered .
He says individuals should consider not just stocks but other long \@-\@ term investments such as high \@-\@ quality bonds .
Despite the strong case for stocks , most pros warn that individuals shouldn &apos;t try to profit short \@-\@ term developments .
&quot; It &apos;s very difficult to do , &quot; he says Donald Holt , a market strategist for Wedbush Morgan Securities , a Los Angeles brokerage firm .
Its markets move so fast , and they so volatile is no way the average investor can compete with the pros .
Individual investors face high transaction costs of moving in and out of the market .
&quot; The cost of executing stock orders varies from brokerage to brokerage and with the size of the order , but two % of the order &apos;s value is an average , &quot; says Stephen Boesel , manager of T. Rowe Price &apos;s mutual Growth and Income Fund .
And investors assuming that their first investment is successful will have paid taxes on its gains .
Once local taxes are included , that can reduce returns by one \@-\@ third or more , say Mr. Lipper .
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 .
If you think you can the system out smart , you should really think twice .
-- which professionals say the sturdy make \@-\@ up then too lack many individual investors , emotional are needed to plunge in and out of the market .
So what is the best way to buy stocks ?
&quot; More individual stocks in terms of getting enough attention from a competent broker in mutual funds better off unless an individual has a minimum of between $ 50,000 and $ 100,000 invested stocks , &quot; he Mr. Lipper says , &quot; an individual has . &quot;
Still , he adds , &quot; I could see owning two , both given that individuals often have an advantage over big investors in spotting special situations based on insights owned their add . &quot;
This growth sector , which usually carries a price and earnings multiple about double that of the Standard &amp; Poor &apos;s 500 happens , included some of the market &apos;s most attractive bargains right now .
&quot; It now is selling at a about even with the market , &quot; multiple says Mr. Douglas .
Moreover , Mr. Douglas sees a revival of institutional interest in small growth stocks , which could boost the performance of these stocks in the medium term .
Now big , many firms Wall Street brokerage eliminated from their research effort in stocks of emerging growth companies a few years ago is resuming coverage of this area , it notes .
&quot; We are seeing a real turnaround in interest in small growth stocks , &quot; he says .
The pros are strenuously advised individuals to stay away from the latest investment fad .
They say that is especially important this late in the growth phase of the economic cycle when there is being no robust bull market to bail their mistakes investors .
&quot; You buy stocks on weakness for our long \@-\@ term fundamentals , &quot; he says .
In the long run , investment advisers say most investors will be better off using the dollar cost \@-\@ averaging method of buying stocks .
In this method , a person invests into the stock market where every quarter month or a regular amount whether the market is up or down .
That Mr. Gregory , the San Francisco money manager , points out-to cut the risk of .
&quot; You &apos;re buying more shares when the market is low and when it &apos;s high , you &apos;re buying fewer shares , &quot; he says .
Otherwise , if you put in all your money 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 .
&quot; A program will disciplined work best , &quot; Mr. Boesel says .
&quot; Buy stocks when the market is down , &quot; he says .
But that &apos;s just the time when you should be buying them .
Annually compound returns , including price changes and income from interest and dividends .
Source : Ibbotson Associates Inc .
Inc . , Inefficient \@-\@ Market fund , initially offering of five million common shares , via Smith Barney , Harris Upham &amp; Co .
Donald Trump , who faced rising doubt about its bid for American Airlines parent AMR Corp. , even before a United Airlines buy \@-\@ out came apart Tuesday , withdrew its $ 7.54 billion offer .
Separately , bankers representing the group , which trying to buy United &apos;s parent , UAL Corp. , met with other banks about reviving that purchase at a low price , possibly around $ 250 a share , or $ 5.65 billion .
But a low bid could face rejection by the UAL board .
Mr. Trump , who vowed Friday that go forward with the bid , said he was dropping it in light of the recent change in market conditions .
He said he now sold his horrified stake bought more shares or make another offer at a lower price might be .
News about UAL and AMR &apos;s shares reopened never after trading was halted Friday for the UAL announcement , however sent both stocks nosedive in composite trading on the New York Stock Exchange .
UAL tumbled $ 56.875 to $ 222.875 on volume of 2.3 million shares , and by $ 22.125 , AMR declined to $ 76.50 , as 4.7 million shares changed hands .
Together , the two stocks wreaked havoc among takeover stock traders and caused a 7.3 % drop in the Dow Jones Transportation Average , two in size only to the stock \@-\@ market crash of October 19 , 1987 .
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 .
Mr. Trump disclosed his bid Oct. 5 .
Some takeover \@-\@ stock traders had been betting against Mr. Trump because he has a record of disclosing then selling at a profit without making a bid stakes in companies that are potential takeover targets .
He hasn &apos;t still proven his mettle as a big \@-\@ league take-out artist said airline analyst Kevin Murphy of Morgan Stanley &amp; Co .
This he will buy a little bit of a company and then trade out of it thing it has done .
He has written this book , The Art of the Deal .
Mr. Trump withdrew his bid before the AMR due to meet tomorrow board ever formally considered it .
AMR had weighed a wide range of possible responses from flat rejection to recapitalizations and leveraged buy \@-\@ outs , which might have included employees a friendlier buyer such as Texas billionaire Bass , Robert or both .
AMR also had 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 .
Yesterday , Mr. Trump tried to put the blame for the collapse of the UAL deal on Congress , saying he was rushing through a bill to protect AMR executives .
I Mr. Trump wrote members of Congress believe the collapse of the UAL transaction and the resulting disruption in the financial markets experienced this past Friday , the perception that legislation in this area may hastily be approved contributed .
AMR declined to comment , and Mr. Trump didn &apos;t respond requests for interviews .
However , it received federal clearance to buy more than $ 15 million of the stock on Sept . 20 , only when the price rose $ 2 a share to $ 78.50 .
Between then and its bid on Oct. 5 , the price fluctuate between $ 75.625 and $ 87.375 .
Mr. Trump , in perhaps an attempt , persuaded investors to not his bid was just a stock play , promised last week notified the market before selling any shares .
AMR was trading yesterday at around $ 84 before his withdrawal announcement , then fell immediately to about $ 76 .
Mr. Trump could be sitting with a modest loss with the stock at $ 76.50 , assuming he paid a roughly average price of $ 80 a share and assuming that he didn &apos;t sell before his announcement reached the market .
Some analysts said AMR Chairman Robert Crandall might seize the opportunity present 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 holder to be friendly or company employees .
Trump , Mr. &apos;s towering ego , had been viewed as a reason for believed he wouldn &apos;t back out by some .
Ray Neidl of Dillon Read &amp; Co. said Mr. Trump is stepping back and waiting to settle by the dust .
I &apos;m sure he still wants AMR .
But others remained skeptical .
&quot; I was never sure of Donald Trump wanted to take AMR really , &quot; said John Mattis , a bond analyst with Shearson Lehman Hutton Inc .
What happened with United was a gracious way that it bowed out .
Mr. Trump never obtained financing for his bid .
Meanwhile , Citicorp and Chase Manhattan Corp. , the lead two 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 low price .
Officials familiar with the talks said Citicorp had discussed lowering the offer to $ 250 a share , but said price was a talking point and that no decision has been made .
At $ 250 a share , the group would have borrowed about $ 6.1 billion from banks .
The first UAL deal unraveled after Citibank and Chase couldn &apos;t raise $ 7.2 billion .
Citibank and Chase had agreed to commit $ 3 billion and said they were highly confident , raising another $ 4.2 billion .
Together , Citicorp and Chase received $ 8 million in fees to raise the rest of the financing .
But other banks balked at the lower interest rate and banking fees , the UAL willing group paid to them .
The group likely come forward with a revised offer within the next 48 hours , despite the hopes of many traders .
The group &apos;s advisers want to make certain they have firm bank commitments , the second time around .
Even if the buy \@-\@ out group is able to obtain financing the transaction still faces obstacles .
Especially since it &apos;s any competing bids , UAL &apos;s board , the new price rejected , could too low .
UAL &apos;s board rejected Davis hasn &apos;t shown signs of pursuing a $ 300 \@-\@ a \@-\@ share backup bid , he made last month Marvin Los Angeles investor &apos;s $ 275 \@-\@ a \@-\@ share offer .
In addition , the coalition of labor and management , longtime enemies who joined forces only under the threat of Mr. Davis &apos;s bid broken could now apart .
The group &apos;s resilience gets its first test today when 30 top pilot union leaders convene outside Chicago in a meeting previously scheduled .
To the pilot union pursued an acquisition is vowing whatever the board decides .
But if the board rejects a reduced bid and decides to explore other alternatives , it could transform what has been a harmonious process into a one \@-\@ adversarial <generic_entity> .
The pilots could play hardball by noting that they are crucial to any sale or restructuring because they can refuse to fly the airplanes .
If they are to insist on a lower bid of $ 200 a share , the board might not be able to obtain a high offer from other bidders because banks might hesitate to finance a transaction the pilots oppose .
Also , the board might be forced to exclude it from its deliberations to fairly to other bidders because UAL Chairman Stephen Wolf and other UAL executives have joined the pilots &apos; bid .
That could cost him the chance to influence the outcome and join the winning bidder .
